INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Disclosure of movement in components of deferred tax assets and liabilities

The movements of the components of the deferred tax assets and deferred tax liabilities are as follows:

($ millions)	Balance at December 31, 2018		Recognized in Earnings		Recognized in Other Comprehensive Income		Acquisition	Equity		Other		Balance at December 31, 2019
Deferred income tax assets
Derivative financial instruments	(18	)	5		—		—	—		—		(13	)
Employee benefits	9		(1	)	1		—	—		—		9
Share-based payments	26		(2	)	—		—	—		—		24
Provisions	156		29		—		20	—		—		205
Benefit of loss carryforwards	153		256		—		13	—		(22	)	400
Other deductible temporary differences	68		(39	)	—		2	(3	)	—		28
Deferred income tax liabilities
Property, plant and equipment	1,660		301		—		136	—		8		2,105
Intangible assets	118		(14	)	—		180	—		—		284
Investments in equity accounted investees	1,262		(155	)	—		—	—		—		1,107
Taxable limited partnership income deferral	122		(46	)	—		—	—		—		76
Other taxable temporary differences	6		(12	)	—		—	—		(7	)	(13	)
Total deferred tax liabilities	2,774		(174	)	(1	)	281	3		23		2,906

($ millions)	Balance at December 31, 2017	Recognized in Earnings		Recognized in Other Comprehensive Income		Acquisition		Equity		Other		Balance at December 31, 2018
Deferred income tax assets
Derivative financial instruments	11	(29	)	—		—		—		—		(18	)
Employee benefits	7	—		2		—		—		—		9
Share-based payments	21	5		—		—		—		—		26
Provisions	153	3		—		—		—		—		156
Benefit of loss carryforwards	180	(33	)	—		(7	)	—		13		153
Other deductible temporary differences	56	16		—		—		(4	)	—		68
Deferred income tax liabilities
Property, plant and equipment	1,361	299		—		—		—		—		1,660
Intangible assets	198	(80	)	—		—		—		—		118
Investments in equity accounted investees	1,173	89		—		—		—		—		1,262
Taxable limited partnership income deferral	56	66		—		—		—		—		122
Other taxable temporary differences	16	(18	)	—		—		—		8		6
Total deferred tax liabilities	2,376	394		(2	)	7		4		(5	)	2,774

Disclosure of reconciliation of effective tax rate

Pembina's consolidated statutory tax rate for the year ended December 31, 2019 was 26.7 percent (2018: 27.0 percent).

Reconciliation of Effective Tax Rate

For the years ended December 31
($ millions, except as noted)	2019		2018
Earnings before income tax	1,528		1,742
Statutory tax rate	26.7	%	27.0	%
Income tax at statutory rate	408		470
Tax rate changes and foreign rate differential	(359	)	(16	)
Changes in estimate and other	(16	)	9
Permanent items	3		1
Income tax expense	36		464

Disclosure of income tax expense

Income Tax Expense

For the years ended December 31
($ millions)	2019		2018
Current tax expense	210		70
Deferred tax expense
Origination and reversal of temporary differences	393		368
Tax rate changes on deferred tax balances	(345	)	(1	)
(Increase) decrease in tax loss carry forward	(222	)	27
Total deferred tax (recovery) expense	(174	)	394
Total income tax expense	36		464

Disclosure of deferred tax items recovered directly in equity

Deferred Tax Items Recovered Directly in Equity

For the years ended December 31
($ millions)	2019		2018
Share issue costs	(3	)	(4	)
Other comprehensive income (loss)	1		2
Deferred tax items recovered directly in equity	(2	)	(2	)