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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of Income Tax Rate
[a]
The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following:
 
    
2021
    2020  
Canadian statutory income tax rate
  
 
26.5
    26.5
Tax on repatriation of foreign earnings
  
 
2.9
 
    4.4  
Net effect of losses not benefited
  
 
1.8
 
    8.1  
Re-measurement
of deferred tax assets [i]
  
 
1.5
 
    —    
Foreign exchange
re-measurement
[ii]
  
 
1.2
 
    3.4  
Impairment of investments
[note 2]
  
 
—  
 
    8.6  
Manufacturing and processing profits deduction
  
 
(0.2
    (0.1
Valuation allowance on deferred tax assets
  
 
(0.7
    0.6  
Earnings of equity accounted investees
  
 
(1.3
    (3.6
Reserve for uncertain tax positions
  
 
(2.5
    (4.0
Research and development tax credits
  
 
(3.4
    (3.7
Foreign rate differentials
  
 
(3.9
    (7.3
Others
  
 
(1.6
    (0.2
    
 
 
   
 
 
 
Effective income tax rate
  
 
20.3
    32.7
    
 
 
   
 
 
 
 
[i]
Re-measurement
of deferred tax assets of a China subsidiary
.
[ii]
Includes foreign exchange gains reported on U.S. dollar denominated assets for Mexican tax purposes that are not recognized for GAAP purposes and losses related to the
re-measurement
of financial statement balances of foreign subsidiaries, primarily in Mexico, that are maintained in a currency other than their functional currency.
Details of Income before Income Taxes by Jurisdiction
[b]
The details of income before income taxes by jurisdiction are as follows:
 
    
        2021        
             2020          
Canadian
  
$
220
 
   $ 93  
Foreign
  
 
1,728
  
     913  
    
 
 
    
 
 
 
    
$
  1,948
 
   $   1,006  
    
 
 
    
 
 
 
Details of Income Tax Provision
[c]
The details of the income tax provision are as follows:
 
    
        2021        
            2020          
Current
                
Canadian
  
$
63
 
  $ 10  
Foreign
  
 
408
 
    302  
    
 
 
   
 
 
 
    
 
471
 
    312  
    
 
 
   
 
 
 
Deferred
                
Canadian
  
 
(4
    17  
Foreign
  
 
(72
    —    
    
 
 
   
 
 
 
    
 
(76
    17  
    
 
 
   
 
 
 
    
$
395
 
  $ 329  
    
 
 
   
 
 
 
Summary of Deferred Income Taxes Provided on Temporary Differences
[d]
Deferred income taxes have been provided on temporary differences, which consist of the following:
 
    
       2021       
            2020          
Tax on undistributed foreign earnings
  
$
43
 
  $ 23  
Re-measurement
of deferred tax assets
  
 
28
 
    —    
Liabilities currently not deductible for tax
  
 
5
 
    (2
Change in valuation allowance on deferred tax assets
  
 
(13
    6  
Net tax losses benefited
  
 
(22
    (38
Tax depreciation (less than) in excess of book depreciation
  
 
(30
    50  
Book amortization in excess of tax amortization
  
 
(58
    (17
Others
  
 
(29
    (5
    
 
 
   
 
 
 
    
$
(76
  $ 17  
    
 
 
   
 
 
 
Summary of Deferred Tax Assets and Liabilities
[e]
Deferred tax assets and liabilities consist of the following temporary differences:
 
    
2021
     2020  
Assets
                 
Tax benefit of loss carryforwards
  
$
766
 
   $ 735  
Operating lease liabilities
  
 
409
 
     469  
Liabilities currently not deductible for tax
  
 
219
 
     259  
Tax credit carryforwards
  
 
84
 
     64  
Unrealized loss on foreign exchange hedges and retirement liabilities
  
 
59
 
     87  
Others
  
 
30
 
     46  
    
 
 
    
 
 
 
    
1,567
     1,660  
Valuation allowance against tax benefit of loss carryforwards
  
 
(586
     (569
Other valuation allowance
  
 
(125
     (206
    
 
 
    
 
 
 
    
$
856
 
   $ 885  
    
 
 
    
 
 
 
Liabilities
                 
Operating lease
right-of-use
assets
  
 
415
 
     470  
Tax depreciation in excess of book depreciation
  
 
228
 
     239  
Tax on undistributed foreign earnings
  
 
206
 
     163  
Unrealized gain on remeasurement of investments
  
 
12
 
     11  
Unrealized gain on foreign exchange hedges and retirement liabilities
  
 
11
 
     17  
Other assets book value in excess of tax values
  
 
3
 
     65  
    
 
 
    
 
 
 
    
 
875
 
     965  
    
 
 
    
 
 
 
Net deferred tax liabilities
  
$
(19
   $ (80
    
 
 
    
 
 
 
Net Deferred Tax Liabilities Presented on Consolidated Balance Sheet
The net deferred tax liabilities are presented on the consolidated balance sheet in the following categories:
 
    
2021
     2020  
Long-term deferred tax assets
  
$
421
 
   $ 372  
Long-term deferred tax liabilities
  
 
(440
     (452
    
 
 
    
 
 
 
    
$
(19
   $ (80
    
 
 
    
 
 
 
Summary of Changes in Gross Unrecognized Tax Benefits
[i]
As at December 31, 2021 and 2020, the Company’s gross unrecognized tax benefits were $142 million and $182 million, respectively [excluding interest and penalties], of which $126 million and $165 million, respectively, if recognized, would affect the Company’s effective tax rate. The gross unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate due primarily to the impact of the valuation allowance on deferred tax assets. A summary of the changes in gross unrecognized tax benefits is as follows:
    
2021
     2020  
Balance, beginning of year
  
$
182
 
   $ 192  
Increase based on tax positions related to current year
  
 
11
 
     27  
Increase based on tax positions of prior years
  
 
2
 
     —    
Increase related to acquisitions
  
 
—  
 
     11  
Settlements
  
 
(5
     (1
Foreign currency translation
  
 
(5
     5  
Statute expirations
  
 
(43
     (52
    
 
 
    
 
 
 
    
$
142
 
   $ 182