Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Debt Securities by Investment Classification

The following tables summarize debt securities by significant investment classification:



	As at December 31, 2022
	Carrying Value
	Cash Equivalents	Marketable Securities	Equity and Other Investments	Fair Value
	$	$	$	$
Level 1:
U.S. term deposits	—	600,000	—	608,337
U.S. federal bonds and agency securities	27,944	740,978	—	769,318
Canadian federal bonds and agency securities	202,488	546,943	—	750,252
Corporate bonds and commercial paper	201,513	—	—	201,644
Repurchase agreements	99,000	—	—	99,023
	530,945	1,887,921	—	2,428,574
Level 2:
Corporate bonds and commercial paper	—	1,515,701	—	1,517,667
Level 3:
Convertible notes in private companies	—	—	220,992	220,992
	530,945	3,403,622	220,992	4,167,233



	As at December 31, 2021
	Carrying Value
	Cash Equivalents	Marketable Securities	Equity and Other Investments	Fair Value
	$	$	$	$
Level 1:
Corporate bonds and commercial paper	267,953	—	—	268,090
U.S. term deposits	—	900,000	—	901,689
U.S. federal bonds and agency securities	—	680,436	—	681,629
Canadian federal bonds and agency securities	50,138	1,215,646	—	1,268,139
	318,091	2,796,082	—	3,119,547
Level 2:
Corporate bonds and commercial paper	—	2,469,019	—	2,475,051
Level 3:
Convertible notes in private companies	—	—	205,878	205,878
	318,091	5,265,101	205,878	5,800,476

Schedule of Equity and Other Investments

Equity investments with readily determinable fair values are comprised of:



	December 31, 2022			December 31, 2021
	Level 1	Level 3	Total	Level 1	Level 3	Total
	$	$	$	$	$	$
Affirm Holdings, Inc.	196,278	—	196,278	2,041,126	—	2,041,126
Global-E Online Ltd.	400,222	50,900	451,122	741,775	423,387	1,165,162
Other	568	—	568	—	—	—
	597,068	50,900	647,968	2,782,901	423,387	3,206,288

Adjustments related to equity and other investments with readily determinable fair values for the years ended December 31, 2022 and 2021 were as follows:


	Years ended
		December 31, 2022	December 31, 2021
		$	$
Balance, beginning of the year		3,206,288	—

Adjustments related to equity and other investments with readily determinable fair values:
Investments received not tied to services(1)		105,268	—
Investments received as non-cash consideration in exchange for services		29,577	—
Purchases of equity and other investments		67	40
Sale of equity and other investments		(3,082)	—
Net unrealized (losses) gains		(2,690,150)	2,855,718
Transfers from measurement alternative (2)(3)		—	350,530

Balance, end of the year		647,968	3,206,288

(1) During the year ended December 31, 2022, certain private investments were acquired by third-party investors resulting in the deemed sale of equity and other investments in the year and the receipt of shares in certain public companies. Any resulting realized gains or losses were presented as "net realized gain on equity and other investments" in the consolidated statement of operations and comprehensive (loss) income.

(2) Effective January 13, 2021, the Company's investment in Affirm no longer qualified for the use of the measurement alternative as the fair value of the investment became readily determinable.

(3) Effective May 12, 2021, the Company's investment in Global-E no longer qualified for the use of the measurement alternative as the fair value of the investment became readily determinable.

Schedule of Equity Investments without Readily Determinable Fair Values

The carrying value of equity investments in private companies without readily determinable fair values are:


	December 31, 2022	December 31, 2021
	$	$
Total initial value	1,359,950	539,221
Cumulative gross unrealized gains	59,023	38,880
Cumulative gross unrealized losses and impairment	(334,473)	(34,722)
Total carrying value of equity and other investments without readily determinable fair values (1)	1,084,500	543,379

(1) As at December 31, 2022, three investments in private companies represent $879,998 (December 31, 2021 - $348,278) of the total carrying value of equity and other investments without readily determinable fair values.

Adjustments related to equity and other investments without readily determinable fair values for the years ended December 31, 2022 and 2021 were as follows:


	Years ended
		December 31, 2022	December 31, 2021
		$	$
Balance, beginning of the year		543,379	173,454





Adjustments related to equity and other investments without readily determinable fair values:
Purchases of equity and other investments		598,585	450,193
Investments received as non-cash consideration in exchange for services		243,624	268,058
Gross unrealized gains		20,143	36,926
Sales of equity and other investments(1)		(13,480)	—
Transfers to readily determinable fair values (2)(3)		—	(350,530)

Gross unrealized losses and impairments(4)		(307,751)	(34,722)

Balance, end of the year		1,084,500	543,379

(1) During the year ended December 31, 2022, certain private investments were acquired by third-party investors resulting in the deemed sale of equity and other investments in the year. Any resulting realized gains or losses were presented as "net realized gain on equity and other investments" in the consolidated statement of operations and comprehensive (loss) income.

(2) Effective January 13, 2021, the Company's investment in Affirm no longer qualified for the use of the measurement alternative as the fair value of the investment became readily determinable.

(3) Effective May 12, 2021, the Company's investment in Global-E no longer qualified for the use of the measurement alternative as the fair value of the investment became readily determinable.

(4) The Company applied certain valuation methods based on information available, including the market approach and option pricing models in order to quantify the level of impairment. This required the Company to develop certain key assumptions, including revenue growth rates, revenue multiples based on market comparables and a discount for lack of marketability. Non-public information, made available to the Company from investee companies, was supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The fair values of outstanding derivative instruments were as follows:


	December 31, 2022	December 31, 2021
	$	$
Level 2:
Foreign exchange forward contracts and options assets (classified in other current assets)	1,484	1,824
Foreign exchange forward contract liabilities (classified in accounts payable and accrued liabilities)	15,548	5,926

Unrealized gains and unrealized losses related to changes in the fair value of foreign exchange forward contracts and options designated as cash flow hedges were as follows:


	December 31, 2022	December 31, 2021
	$	$
Unrealized gains	1,189	1,215
Unrealized losses	(15,350)	(4,936)
Total net unrealized losses	(14,161)	(3,721)

Realized losses and realized gains related to the maturity of foreign exchange forward contracts and options designated as cash flow hedges were as follows:


	Years ended
		December 31, 2022	December 31, 2021
		$	$
Realized (losses) gains in cost of revenues		(864)	1,001
Realized (losses) gains in operating expenses		(22,348)	21,851
		(23,212)	22,852

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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