XML 69 R38.htm IDEA: XBRL DOCUMENT v3.21.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Taxes [Abstract]  
Schedule of Company's effective income tax rate reconciliation
The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the Company’s effective income tax rate is detailed as follows for each of the years in the three-year period ended December 31, 2020:
202020192018
 %%%
Combined Canadian federal and provincial income tax rate27.8 28.4 28.4 
Foreign earnings/losses taxed at higher income tax rates— 0.2 0.4 
Foreign earnings/losses taxed at lower income tax rates(4.3)(4.8)(5.1)
Prior period adjustments(0.5)0.5 (3.4)
(Nontaxable income) nondeductible expenses(1.9)1.1 3.9 
Impact of other differences1.6 (2.3)(0.7)
Nontaxable dividend— — (8.6)
Canadian deferred tax assets (recognized) not recognized(1.8)4.3 2.5 
Recognition of deferred tax assets(0.2)(1.3)— 
Proposed tax assessment (1)
— 2.2 — 
Effective income tax rate20.7 28.3 17.4 
(1)    Proposed tax assessment refers to a $2.3 million proposed state income tax assessment and the related interest expense recorded in the second quarter of 2019 which resulted from the denial of the utilization of certain net operating losses generated in tax years 2000-2006.
Schedule of major components of income tax expense (benefit)
The major components of income tax expense (benefit) are outlined below for each of the years in the three-year period ended December 31, 2020:
202020192018
 $$$
Current income tax expense25,595 17,195 934 
Deferred tax expense (benefit)
Recognition of US deferred tax assets(153)(701)(182)
US temporary differences(6,605)3,988 10,427 
Canadian deferred tax assets (recognized) not recognized(1,660)2,474 1,297 
Recognition of Canadian deferred tax assets— (22)— 
Canadian temporary differences1,674 (5,678)(1,548)
Temporary differences in other jurisdictions270 (946)(1,126)
Total deferred income tax (benefit) expense(6,474)(885)8,868 
Total tax expense for the year19,121 16,310 9,802 
Schedule of income tax expense (benefit) relating to components of other comprehensive income (loss)
The amount of income taxes relating to components of OCI for each of the years in the three-year period ended December 31, 2020 is outlined below:
Amount before
income tax		Deferred
income taxes		Amount net of
income taxes
 $$$
For the year ended December 31, 2020
Deferred tax benefit on remeasurement of defined benefit liability (696)216 (480)
Deferred tax benefit on change in fair value of interest rate swap agreements designated as cash flow hedges(2,685)658 (2,027)
Deferred tax expense on foreign exchange related impacts arising from intercompany settlements2,117 (281)1,836 
Deferred tax expense on gain arising from hedge of a net investment in foreign operations6,488 (764)5,724 
5,224 (171)5,053 
For the year ended December 31, 2019
Deferred tax expense on remeasurement of defined benefit liability762 (173)589 
Deferred tax benefit on change in fair value of interest rate swap agreements designated as cash flow hedges(3,416)359 (3,057)
Deferred tax expense on gain arising from hedge of a net investment in foreign operations10,280 (45)10,235 
7,626 141 7,767 
For the year ended December 31, 2018
Deferred tax expense on remeasurement of defined benefit liability3,016 (730)2,286 
Deferred tax benefit on change in fair value of interest rate swap agreements designated as cash flow hedges970 463 1,433 
3,986 (267)3,719 
Schedule of recognized deferred tax assets and liabilities
The amount of recognized deferred tax assets and liabilities is outlined below as of December 31, 2020:
Deferred tax
assets		Deferred tax
liabilities		Net
 $$$
As of December 31, 2020
Tax credits, losses, carryforwards and other tax deductions10,465 — 10,465 
Property, plant and equipment15,882 (52,956)(37,074)
Pension and other post-retirement benefits4,231 — 4,231 
Share-based payments11,929 — 11,929 
Accounts payable and accrued liabilities8,945 — 8,945 
Goodwill and other intangibles7,083 (23,121)(16,038)
Trade and other receivables1,152 — 1,152 
Inventories1,530 — 1,530 
Lease liabilities9,616 — 9,616 
Other2,481 (1,668)813 
Deferred tax assets and liabilities73,314 (77,745)(4,431)
Presented in the consolidated balance sheets as:
December 31,
2020
 $
Deferred tax assets29,677 
Deferred tax liabilities(34,108)
(4,431)
The amount of recognized deferred tax assets and liabilities is outlined below as of December 31, 2019:
Deferred tax
assets		Deferred tax
liabilities		Net
 $$$
As of December 31, 2019
Tax credits, losses, carryforwards and other tax deductions11,638 — 11,638 
Property, plant and equipment16,020 (52,871)(36,851)
Pension and other post-retirement benefits3,966 — 3,966 
Share-based payments1,766 — 1,766 
Accounts payable and accrued liabilities6,022 — 6,022 
Goodwill and other intangibles7,028 (22,893)(15,865)
Trade and other receivables688 — 688 
Inventories1,918 — 1,918 
Lease liabilities9,832 — 9,832 
Other863 (908)(45)
Deferred tax assets and liabilities59,741 (76,672)(16,931)
Presented in the consolidated balance sheets as:
December 31,
2019
 $
Deferred tax assets29,738 
Deferred tax liabilities(46,669)
(16,931)
Schedule of changes in deferred tax assets and liabilities
The following table outlines the changes in the deferred tax assets and liabilities during the year ended December 31, 2019:
Balance January 1, 2019Recognized in
earnings (with
translation
adjustments)		Recognized in
contributed
surplus		Recognized in
OCI		Recognized in deficitBalance reclassified to other current assetsBalance December 31,
2019
 $$$$$$$
Deferred tax assets    
Tax credits, losses, carryforwards and other tax deductions11,147 2,503 — — — (2,012)11,638 
Property, plant and equipment13,910 2,110 — — — — 16,020 
Pension and other post-retirement benefits3,798 333 — (165)— — 3,966 
Share-based payments2,508 (728)(17)— 3 — 1,766 
Accounts payable and accrued liabilities5,659 363 — — — — 6,022 
Goodwill and other intangibles6,998 30 — — — — 7,028 
Trade and other receivables633 55 — — — — 688 
Inventories2,262 (344)— — — — 1,918 
Lease liabilities— 9,832 — — — — 9,832 
Other5 903 — (45)— — 863 
46,920 15,057 (17)(210)3 (2,012)59,741 
Deferred tax liabilities
Property, plant and equipment(38,290)(14,581)— — — — (52,871)
Goodwill and other intangibles(25,343)2,450 — — — — (22,893)
Other(539)(726)— 357 — — (908)
(64,172)(12,857)— 357 — — (76,672)
Deferred tax assets and liabilities(17,252)2,200 (17)147 3 (2,012)(16,931)
Impact due to foreign exchange rates(1,315)— (6)— 
Total recognized885 (17)141 3 
The following table outlines the changes in the deferred tax assets and liabilities during the year ended December 31, 2020:
Balance January 1, 2020Recognized in
earnings (with
translation
adjustments)		Recognized in
contributed
surplus		Recognized in
OCI		Balance December 31,
2020
 $$$$$
Deferred tax assets    
Tax credits, losses, carryforwards and other tax deductions11,638 (892)— (281)10,465 
Property, plant and equipment16,020 (138)— — 15,882 
Pension and other post-retirement benefits3,966 30 — 235 4,231 
Share-based payments1,766 4,857 5,306 — 11,929 
Accounts payable and accrued liabilities6,022 2,923 — — 8,945 
Goodwill and other intangibles7,028 55 — — 7,083 
Trade and other receivables688 464 — — 1,152 
Inventories1,918 (388)— — 1,530 
Lease liabilities9,832 (216)— — 9,616 
Other863 1,722 — (104)2,481 
59,741 8,417 5,306 (150)73,314 
Deferred tax liabilities
Property, plant and equipment(52,871)(85)— — (52,956)
Goodwill and other intangibles(22,893)(228)— — (23,121)
Other(908)(760)— — (1,668)
(76,672)(1,073)— — (77,745)
Deferred tax assets and liabilities(16,931)7,344 5,306 (150)(4,431)
Impact due to foreign exchange rates(870)— (21)
Total recognized6,474 5,306 (171)
Schedule of deductible temporary differences and unused tax losses for which no deferred tax asset is recognized
Deductible temporary differences and unused tax losses for which no deferred tax asset is recognized in the consolidated balance sheets are as follows:
December 31,
2020		December 31,
2019
 $$
Tax losses, carryforwards and other tax deductions47,829 51,134 
Share-based payments7,231 3,457 
55,060 54,591 
Schedule of expiration dates relating to unused tax credits
The following table presents the amounts and expiration dates relating to unused tax credits in Canada for which no asset is recognized in the consolidated balance sheets as of December 31:
20202019
 $$
2020— 541 
2021209 204 
2022476 466 
2023236 230 
2024222 217 
2025376 367 
2026288 281 
2027262 256 
2028305 298 
2029243 237 
2030221 216 
2031324 316 
2032194 190 
2033238 233 
2034211 206 
2035560 547 
2036367 359 
2037266 260 
2038666 651 
2039266 651 
2040266 — 
Total tax credits derecognized6,196 6,726 
Schedule of expiration dates of operating losses carried forward
The following table presents the year of expiration of the Company’s operating losses carried forward in Canada as of December 31, 2020:
 Deferred tax assets not recognized
 FederalProvincial
 $$
20265,311 5,311 
2029602 602 
20302,675 2,675 
20311,607 1,607 
20373,766 3,766 
20385,251 5,251 
203911,122 11,122 
30,334 30,334