Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Summary of the Major Components of the Company's Income Tax Expense

The following is a summary of the major components of the Company’s income tax expense:



(in millions of Canadian dollars)	2015		2014			2013
Current income tax expense	$	373	$	208		$	38
Deferred income tax expense
Origination and reversal of temporary differences	105		317			183
Effect of tax rate increases	23		—			7
Effect of hedge of net investment in foreign subsidiaries	100		42			29
Other	6		(5		)	(7		)
Total deferred income tax expense	234		354			212
Total income taxes	$	607	$	562		$	250
Income before income tax expense
Canada	$	1,099	$	1,269		$	1,019
Foreign	860		769			106
Total income before income tax expense	$	1,959	$	2,038		$	1,125
Income tax expense
Current
Canada	$	173	$	50		$	4
Foreign	200		158			34
Total current income tax expense	373		208			38
Deferred
Canada	163		292			256
Foreign	71		62			(44		)
Total deferred income tax expense	234		354			212
Total income taxes	$	607	$	562		$	250

Components of Deferred Income Tax Assets and Liabilities

The items comprising the deferred income tax assets and liabilities are as follows:



(in millions of Canadian dollars)	2015		2014
Deferred income tax assets
Restructuring liability	$	3	$	7
Amount related to tax losses carried forward	16		28
Liabilities carrying value in excess of tax basis	89		214
Future environmental remediation costs	33		32
Tax credits carried forward including minimum tax	—		20
Other	69		69
Total deferred income tax assets	210		370
Deferred income tax liabilities
Properties carrying value in excess of tax basis	3,553		3,052
Other	48		35
Total deferred income tax liabilities	3,601		3,087
Total net deferred income tax liabilities	$	3,391	$	2,717

Expected Income Tax Expense Reconciled To Income Tax Expense

Expected income tax expense at statutory rates is reconciled to income tax expense as follows:



(in millions of Canadian dollars, except percentage)	2015			2014			2013
Statutory federal and provincial income tax rate (Canada)	26.47		%	26.31		%	26.32		%
Expected income tax expense at Canadian enacted statutory tax rates	$	519		$	536		$	296
Increase (decrease) in taxes resulting from:
(Gains) / losses not subject to tax	28			(5		)	(6		)
Canadian tax rate differentials	1			(1		)	(1		)
Foreign tax rate differentials	39			36			(36		)
Effect of tax rate increases	23			—			7
Other	(3		)	(4		)	(10		)
Income tax expense	$	607		$	562		$	250

Reconciliation of Uncertain Tax Positions In Relation To Unrecognized Tax Benefits for Canada and the United States

The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for Canada and the United States for the year ended December 31, 2015:



(in millions of Canadian dollars)	2015			2014			2013
Unrecognized tax benefits at January 1	$	17		$	16		$	19
Increase in unrecognized:
Tax benefits related to the current year	4			2			4
Dispositions:
Gross uncertain tax benefits related to prior years	(6		)	(1		)	(7		)
Unrecognized tax benefits at December 31	$	15		$	17		$	16