Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31, 2017 $		December 31, 2016 $
Deferred tax assets:
Vessels and equipment	5,377		40,928
Tax losses carried forward ⁽¹⁾	193,501		276,291
Other	29,355		17,075
Total deferred tax assets	228,233		334,294
Deferred tax liabilities:
Vessels and equipment	9,053		5,974
Provisions	5,153		—
Other	8,417		13,317
Total deferred tax liabilities	22,623		19,291
Net deferred tax assets	205,610		315,003
Valuation allowance	(202,513	)	(290,015	)
Net deferred tax assets	3,097		24,988

(1) Substantially all of the Company’s net operating loss carryforwards of $979.2 million relate primarily to its Norwegian, U.K., Spanish, and Luxembourg subsidiaries and, to a lesser extent, to its Australian ship-owning subsidiaries. These net operating loss carryforwards are available to offset future taxable income in the respective jurisdictions, and can be carried forward indefinitely, except for losses which arose during 2017 in Luxembourg, which losses can be carried forward for 17 years. The Company also has $30.2 million in disallowed finance costs that relate to its Spanish subsidiaries and are available to offset future taxable income in Spain and can also be carried forward indefinitely.

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows:



	Year Ended December 31, 2017 $		Year Ended December 31, 2016 $		Year Ended December 31, 2015 $
Current	(11,997	)	(14,424	)	(10,440	)
Deferred	(235	)	(10,044	)	27,207
Income tax (expense) recovery	(12,232	)	(24,468	)	16,767

Reconciliations of Income Tax Rates and Actual Tax Charge

Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows:



	Year Ended December 31, 2017 $		Year Ended December 31, 2016 $	Year Ended December 31, 2015 $
Net (loss) income before taxes	(516,840	)	111,132	388,693
Net (loss) income not subject to taxes	(297,688	)	57,862	252,604
Net (loss) income subject to taxes	(219,152	)	53,270	136,089
At applicable statutory tax rates	(51,471	)	5,996	32,750
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions	64,164		18,198	(49,789	)
Other	(461	)	274	272
Tax expense (recovery) related to the year	12,232		24,468	(16,767	)

Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities

The following is a roll-forward of the Company’s unrecognized tax benefits, recorded in other long-term liabilities, from January 1, 2015 to December 31, 2017:



	Year Ended December 31, 2017 $		Year Ended December 31, 2016 $		Year Ended December 31, 2015 $
Balance of unrecognized tax benefits as at January 1	19,492		18,390		20,335
Increases for positions related to the current year	2,631		6,422		4,578
Changes for positions taken in prior years	3,475		(3,729	)	(2,965	)
Decreases related to statute of limitations	(1,562	)	(1,591	)	(3,558	)
Increase due to acquisition of TIL	8,528		—		—
Decrease due to deconsolidation of Teekay Offshore	(1,503	)	—		—
Balance of unrecognized tax benefits as at December 31	31,061		19,492		18,390