The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use in pricing the asset or liability, such as inherent risk, non-performance risk and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value into three levels:

•Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are carried at amounts that approximate their fair values (Level 2 measurement) due to their short maturities.

In determining the fair value of investments held, the Company primarily relies on an independent third-party valuator for the fair valuation of securities. The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers. Fair values for all investment categories provided by the independent third-party valuator that are in excess of 0.5% from the fair values determined by the Company are communicated to the independent third-party valuator for consideration of reasonableness. The independent third-party valuator considers the information provided by the Company before determining whether a change in their original pricing is warranted.

When the Company concludes that there is a significant financing component included within a contract with a customer due to timing differences between the fulfillment of certain performance obligations and the receipt of payment for those performance obligations, the Company determines the present value of the future consideration utilizing the discount rate that would be reflected in a separate financing transaction between the customer and the Company at contract inception based upon the credit characteristics of the customer receiving financing in the contract.

For a description of how the fair value of the Debentures (as defined in Note 5) was determined, see the “Convertible debentures” accounting policies in Note 1 to the Annual Financial Statements. The Debentures are classified as Level 3.

Upon the occurrence of certain events, the Company re-measures the fair value of non-marketable equity investments for which it utilizes the measurement alternative, and long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period.

Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence. The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3.

During the second quarter of fiscal 2024, the Company exited certain leased facilities. The Company recorded a non-cash, pre-tax and after-tax impairment charge of $1 million related to the operating lease right-of-use (“ROU”) assets for those facilities (three and six months ended August 31, 2022 - $4 million). The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment, using Level 2 inputs. The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate. The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available.


	Cost Basis (1)		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Investments		Restricted Cash and Cash Equivalents
Bank balances	$	52	$	—	$	—	$	52	$	50	$	—	$	—	$	2
Other investments	29		6		—		35		—		—		35		—
	81		6		—		87		50		—		35		2
Level 1:

Equity securities	10		—		(10)		—		—		—		—		—


Level 2:
Term deposits and certificates of deposits	31		—		—		31		9		—		—		22
Bearer deposit notes	115		—		—		115		115		—		—		—
Commercial paper	129		—		—		129		123		6		—		—
Non-U.S. promissory notes	93		—		—		93		58		35		—		—


Non-U.S. treasury bills/notes	40		—		—		40		40		—		—		—
U.S. treasury bills/notes	19		—		—		19		15		—		—		4
Corporate notes/bonds	5		—		—		5		5		—		—		—
	432		—		—		432		365		41		—		26





	$	523	$	6	$	(10)	$	519	$	415	$	41	$	35	$	28


	Cost Basis (1)		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Investments		Restricted Cash and Cash Equivalents
Bank balances	$	89	$	—	$	—	$	89	$	87	$	—	$	—	$	2
Other investments	26		2		—		28		—		—		28		—
	115		2		—		117		87		—		28		2
Level 1:
Equity securities	10		—		(10)		—		—		—		—		—

Level 2:
Term deposits, and certificates of deposits	33		—		—		33		8		—		—		25
Bearer deposit notes	82		—		—		82		82		—		—		—
Commercial paper	159		—		—		159		108		51		—		—
Non-U.S. promissory notes	45		—		—		45		—		45		—		—

Non-U.S. government sponsored enterprise notes	30		—		—		30		10		20		—		—


Corporate notes/bonds	15		—		—		15		—		15		—		—
	364		—		—		364		208		131		—		25
Level 3:

Other investments	2		4		—		6		—		—		6		—

	$	491	$	6	$	(10)	$	487	$	295	$	131	$	34	$	27

As at August 31, 2023, the Company had non-marketable equity investments without readily determinable fair value of $35 million (February 28, 2023 - $34 million). As of August 31, 2023, the Company has recorded a cumulative impairment of $3 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 28, 2023 - $3 million).

The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit. These letters of credit support certain leasing arrangements entered into in the ordinary course of business. The letters of credit are for terms ranging from one month to two years. The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued; however, the Company can continue to invest the funds and receive investment income thereon.

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at August 31, 2023 and February 28, 2023 from the consolidated balance sheets to the consolidated statements of cash flows:


	As at
	August 31, 2023		February 28, 2023
Cash and cash equivalents	$	415	$	295
Restricted cash and cash equivalents	28		27
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows	$	443	$	322