Note 16 - Income Tax

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

16.  Income tax

Income tax differs from the amounts that would be obtained by applying the statutory rate to the respective year’s earnings before tax. Differences result from the following items:

	2013			2012			2011
Income tax expense using combined statutory rate of 26.5% (2012 - 26.5%, 2011 - 28.3%)	$	18,622		$	16,754		$	9,351
Permanent differences		4,125			3,327			4,434
Tax effect of flow through entities		(2,156	)		(3,663	)		(3,462	)
Goodwill or other investment impairment charge		-			676			874
Impact of changes in foreign exchange rates		(518	)		1,546			(679	)
Adjustments to tax liabilities for prior periods		925			721			762
Effects of changes in enacted tax rates		250			(14	)		52
Changes in liability for unrecognized tax benefits		181			352			(342	)
Stock-based compensation		2,791			128			(386	)
Foreign, state and provincial tax rate differential		(4,285	)		(946	)		(6,728	)
Tax on preferred shares		880			-			-
Other taxes		1,906			93			2,046
Change in valuation allowances		(97	)		2,033			(49,745	)
Provision for (recovery of) income taxes as reported	$	22,624		$	21,007		$	(43,823	)

Earnings before income tax by jurisdiction comprise the following:

	2013		2012		2011
Canada	$	1,977	$	22,438	$	33,331
United States		4,613		9,811		(20,662	)
Australia		33,061		25,800		21,791
Foreign		30,613		5,175		(1,358	)
Total	$	70,264	$	63,224	$	33,102

Income tax expense (recovery) comprises the following:

	2013			2012			2011
Current
Canada	$	11,137		$	5,771		$	4,630
United States		3,008			18,139			8,839
Australia		11,088			8,526			7,206
Foreign		11,860			4,729			3,708
		37,093			37,165			24,383
Deferred
Canada		(7,627	)		364			(275	)
United States		(2,435	)		(14,500	)		(67,279	)
Australia		(1,079	)		(743	)		(729	)
Foreign		(3,328	)		(1,279	)		77
		(14,469	)		(16,158	)		(68,206	)
Total	$	22,624		$	21,007		$	(43,823	)

The significant components of deferred income tax are as follows:

	2013			2012
Deferred income tax assets
Loss carry-forwards	$	91,957		$	88,318
Expenses not currently deductible		23,467			17,255
Stock-based compensation		3,956			3,317
Basis differences of partnerships and other entities		14,173			15,685
Allowance for doubtful accounts		4,580			3,324
Inventory and other reserves		2,554			1,611
		140,687			129,510
Less: valuation allowance		(14,120	)		(11,911	)
		126,567			117,599
Deferred income tax liabilities
Depreciation and amortization		31,165			33,751
Unrealized foreign exchange gains		-			932
Prepaid and other expenses deducted for tax purposes		1,427			875
		32,592			35,558
Net deferred income tax asset	$	93,975		$	82,041

From 2008 to 2011, the Company recognized valuation allowances with respect to deferred income tax assets in its CRE operations, primarily in the United States, due to a history of operating losses.  During the fourth quarter of 2011, the Company completed a reorganization of certain operations in the United States. As a result, a valuation allowance in the amount of $48,351 related to the United States CRE operations was reversed as of December 31, 2011.  The recoverability of deferred income tax assets is dependent on generating sufficient taxable income before the 20 year loss carry-forward limitation. Although realization is not assured, the Company believes it is more likely than not that the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced.

The Company has gross operating loss carry-forwards as follows:

	Loss carry forward				Gross losses not recognized				Net
	2013		2012		2013		2012		2013		2012
Canada	$	72,526	$	53,866	$	2,438	$	4,228	$	70,088	$	49,638
United States		164,414		172,155		4,099		4,098		160,315		168,057
Australia		304		889		-		-		304		889
Foreign		46,901		43,578		41,412		40,413		5,489		3,165

The Company has gross capital loss carry-forwards as follows:

	Loss carry forward				Gross losses not recognized				Net
	2013		2012		2013		2012		2013		2012
Canada	$	939	$	1,224	$	939	$	1,224	$	-	$	-
United States		4,197		1,068		4,197		1,068		-		-
Australia		8,123		9,455		8,123		9,455		-		-

These amounts above are available to reduce future federal and provincial income taxes in their respective jurisdictions.  Net operating loss carry-forward balances attributable to the United States and Canada expire over the next 14 to 20 years.  Net operating loss carry-forward balances attributable to Australia are carried forward indefinitely subject to certain continuity of ownership conditions.

Cumulative unremitted earnings of US and foreign subsidiaries approximated $186,121 as at December 31, 2013 (2012 - $149,249).  Income tax is not provided on the unremitted earnings of US and foreign subsidiaries because it has been the practice and is the intention of the Company to reinvest these earnings indefinitely in these subsidiaries.

A reconciliation of the beginning and ending amounts of the liability for unrecognized tax benefits is as follows:

Balance, December 31, 2011	$	7,602
Increases based on tax positions related to 2012		1,093
Reduction for lapses in applicable statutes of limitations		(781)
Balance, December 31, 2012		7,914
Increases based on tax positions related to 2013		384
Increases for tax positions of prior periods		562
Reduction for lapses in applicable statutes of limitations		(840)
Balance, December 31, 2013	$	8,020

Of the $8,020 (2012 - $7,914) in gross unrecognized tax benefits, $8,226, (2012 - $7,914) would affect the Company’s effective tax rate if recognized.  For the year ended December 31, 2013, an expense of $29 in interest and penalties related to provisions for income tax was recorded in income tax expense (2012 - recovery of $38; 2011 - recovery of $238).  As at December 31, 2013, the Company had accrued $151 (2012 - $122) for potential income tax related interest and penalties.

Within the next twelve months, the Company believes it is reasonably possible that $1,500 of unrecognized tax benefits associated with uncertain tax positions may be reduced due to lapses in statutes of limitations.

The Company’s significant tax jurisdictions include the United States, Canada and Australia.  The number of years with open tax audits varies depending on the tax jurisdictions.  Generally, income tax returns filed with the Canada Revenue Agency and related provinces are open for three to four years and income tax returns filed with the U.S. Internal Revenue Service and related states are open for three to five years.  Tax returns in Australia are generally open for four years.

The Canada Revenue Agency commenced an examination of the Company’s Canadian income tax return for the years 2010 and 2011 that is anticipated to be completed by the end of 2014.  There have not been any proposed adjustments.

The Company does not currently expect any other material impact on earnings to result from the resolution of matters related to open taxation years, other than noted above.  Actual settlements may differ from the amounts accrued.  The Company has, as part of its analysis, made its current estimates based on facts and circumstances known to date and cannot predict changes in facts and circumstances that may affect its current estimates.