INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

The components of (Loss) Income before provision for (recovery of) income taxes were as follows:

The components of Provision for (recovery of) income taxes were as follows:

The reasons for this difference and the related tax effects are as follows:



	2015			2014 (Restated)			2013
(Loss) Income before provision for (recovery of) income taxes	$	(155.3	)	$	1,053.6		$	(1,314.4	)
Expected Canadian statutory rate	26.9		%	26.9		%	26.9		%
Expected (recovery) provision for of income taxes	(41.8		)	283.4			(353.6		)
Non-deductible amounts:
Share-based compensation	4.4			19.8			13.1
Merger and acquisition costs	3.1			—			1.1
Adjustments to tax attributes	(87.1		)	(32.3		)	(3.0		)
Non-taxable gain on disposal of investments	—			(50.1		)	—
Changes in enacted income tax rates	—			29.6			6.6
Canadian dollar foreign exchange gain for Canadian tax purposes	173.6			22.8			0.6
Change in valuation allowance related to foreign tax credits and net operating losses	114.0			17.4			70.2
Change in valuation allowance on Canadian deferred tax assets and tax rate changes	229.4			255.2			143.9
Pharma fee	15.9			3.5			—
Change in uncertain tax positions	(0.1		)	(1.8		)	—
Foreign tax rate differences	(350.0		)	(502.8		)	(407.6		)
Withholding taxes on foreign income	6.7			3.7			3.4
Taxable foreign income	441.4			269.0			55.4
Tax benefit on intra-entity transfers	(374.9		)	(147.3		)	(5.7		)
Other	(2.1		)	4.1			24.8
	$	132.5		$	174.2		$	(450.8	)

The tax effect of major items recorded as deferred tax assets and liabilities is as follows:



	2015			2014 (Restated)
Deferred tax assets:
Tax loss carryforwards	$	1,439.7		$	964.5
Tax credit carryforwards	294.8			234.9
Scientific Research and Experimental Development pool	50.7			58.2
Research and development tax credits	134.4			90.5
Provisions	594.2			369.9
Plant, equipment and technology	—			2.8
Deferred revenue	13.1			13.5
Deferred financing and share issue costs	525.3			209.4
Share-based compensation	67.9			49.8
Other	—			38.2
Total deferred tax assets	3,120.1			2,031.7
Less valuation allowance	(1,366.6		)	(859.2		)
Net deferred tax assets	1,753.5			1,172.5
Deferred tax liabilities:
Intangible assets	4,711.4			520.0
Outside basis differences	2,607.0			2,636.6
Plant, equipment and technology	16.2			—
Prepaid expenses	95.7			0.6
Other	69.6			—
Total deferred tax liabilities	7,499.9			3,157.2
Net deferred income taxes	$	(5,746.4	)	$	(1,984.7	)

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:



	2015			2014			2013
Balance, beginning of year	$	345.0		$	247.5		$	128.0
Acquisition of B&L	—			—			52.2
Acquisition of Salix	15.4			—			—
Additions based on tax positions related to the current year	4.6			143.0			60.7
Additions for tax positions of prior years	23.3			12.8			19.4
Reductions for tax positions of prior years	(39.3		)	(50.2		)	(10.8		)
Lapse of statute of limitations	(5.0		)	(8.1		)	(2.0		)
Balance, end of year	$	344.0		$	345.0		$	247.5