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Income Taxes
 12 Months Ended
Feb. 28, 2022
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The difference between the amount of the provision for (recovery of) income taxes and the amount computed by multiplying income (loss) before income taxes by the statutory Canadian tax rate is reconciled as follows:
 For the Years Ended
 February 28, 2022February 28, 2021February 29, 2020
Statutory Canadian tax rate26.5 %26.5 %26.5 %
Expected provision for (recovery of) income taxes$5 $(295)$(39)
Differences in income taxes resulting from:
Valuation allowance(9)205 41 
Investment tax credits7 (41)(10)
Change in unrecognized income tax benefits(2)(48)(12)
Foreign tax rate differences3 3 3 
Non-deductible permanent differences3 13 15 
Goodwill impairment — 158 6 
Other differences— (4)1 
Withholding tax on unremitted earnings— — (1)
$7 $(9)$4 
 For the Years Ended
 February 28, 2022February 28, 2021February 29, 2020
Income (loss) before income taxes:
Canadian$133 $(383)$15 
Foreign(114)(730)(163)
$19 $(1,113)$(148)
The provision for (recovery of) income taxes consists of the following:
 For the Years Ended
 February 28, 2022February 28, 2021February 29, 2020
Current
Canadian$(1)$(2)$2 
Foreign8 (7)3 
Deferred
Foreign— — (1)
$7 $(9)$4 
Deferred income tax assets and liabilities consist of the following temporary differences:
 As at
 February 28, 2022February 28, 2021
Assets
Property, plant, equipment and intangibles assets$262 $240 
Non-deductible reserves44 59 
Minimum taxes207 206 
Debentures (note 6)
37 94 
Research and development379 390 
Tax loss carryforwards441 414 
Other104 82 
Deferred income tax assets1,474 1,485 
Valuation allowance1,367 1,360 
Deferred income tax assets net of valuation allowance107 125 
Liabilities
Property, plant, equipment and intangibles assets(107)(125)
Deferred income tax liabilities(107)(125)
Net deferred income tax asset (liability)$— $— 
The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will be realized.
In evaluating the need for a valuation allowance, the Company noted that there had been three years of cumulative losses, including fiscal 2022. In fiscal 2022, the Company saw an increase in the deferred tax valuation allowance of $7 million (February 28, 2021 - increase of $137 million). As a result, the deferred tax valuation allowance had an ending balance of $1,367 million (February 28, 2021 - $1,360 million). This accounting treatment has no effect on the Company’s ability to utilize deferred tax assets to reduce future cash tax payments. The Company will continue to assess the likelihood that the deferred tax assets will be realizable at each reporting period and the valuation allowance will be adjusted accordingly.
The Company’s total unrecognized income tax benefits as at February 28, 2022 and February 28, 2021 were $20 million and $24 million, respectively. A reconciliation of the beginning and ending amount of unrecognized income tax benefits that, if recognized, would affect the Company’s effective income tax rate is as follows:
For the Years Ended
February 28, 2022February 28, 2021February 29, 2020
Unrecognized income tax benefits, opening balance$24 $72 $84 
Increase for income tax positions of prior years— — 2 
Increase for income tax positions of current year— 2 1 
Settlement of tax positions(4)(50)(15)
Unrecognized income tax benefits, ending balance$20 $24 $72 
As at February 28, 2022, $20 million of the unrecognized tax benefits have been netted against deferred income taxes and nil has been recorded within income taxes payable on the Company’s consolidated balance sheets.
A summary of open tax years by major jurisdiction is presented below:
Jurisdiction
Canada (1)
Fiscal 2016 - 2022
United States (2)
Fiscal 2019 - 2022
United Kingdom
Fiscal 2021 - 2022
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(1)    Includes federal as well as provincial jurisdictions, as applicable.
(2)     Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2018 through fiscal 2022.
The Company is subject to ongoing examination by tax authorities in the jurisdictions in which it operates. The Company regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income taxes, as well as the provisions for indirect and other taxes and related penalties and interest. The Company believes it is reasonably possible that approximately nil of its gross unrecognized income tax benefits will be realized in the next twelve months. While the final resolution of these audits is uncertain, the Company believes the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position, liquidity or results of operations.
The Company recognizes interest and penalties related to unrecognized income tax benefits as interest expense that is netted and reported within investment income, net. The amount of interest accrued as at February 28, 2022 was approximately $3 million (February 28, 2021 - approximately $3 million). The amount of penalties accrued as at February 28, 2022 was nil (February 28, 2021 - nil).
As at February 28, 2022, the Company has the following net operating loss carryforwards and tax credits, which are scheduled to expire in the following years:
Year of ExpiryNet Operating Losses
Research and Development Tax Credits (1)
Minimum Taxes
2029$10 $— $1 
2030— — 109 
20311 12 72 
203228 1 22 
203388 133 — 
203496 124 — 
203592 52 3 
2036355 40 — 
2037492 23 — 
2038199 17 — 
203913 14 — 
2040— 13 — 
2041— 8 — 
204212 8 — 
Indefinite321 21 — 
$1,707 $466 $207 
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(1)    Includes federal, provincial and state balances.