income taxes (Tables)

12 Months Ended

Dec. 31, 2019

income taxes

Expense composition

Years ended December 31 (millions)	2019			2018
Current income tax expense
For the current reporting period	$	416	$	483
Adjustments recognized in the current period for income taxes of prior periods		(63)		(5)
		353		478
Deferred income tax expense
Arising from the origination and reversal of temporary differences		193		75
Revaluation of deferred income tax liability to reflect future income tax rates		(124)		—
Adjustments recognized in the current period for income taxes of prior periods		46		(1)
		115		74
	$	468	$	552

Rate reconciliations

Years ended December 31 ($ in millions)	2019				2018
Income taxes computed at applicable statutory rates	$	604	26.9	%	$	586	27.0	%
Revaluation of deferred income tax liability to reflect future income tax rates		(124)	(5.5)			—	—
Adjustments recognized in the current period for income taxes of prior periods		(17)	(0.8)			(6)	(0.3)
Other		5	0.2			(28)	(1.3)
Income tax expense per Consolidated statements of income and other comprehensive income	$	468	20.8	%	$	552	25.4	%

Temporary differences

	Property, plant				Property, plant				Net pension
	and equipment					and equipment			and share-				Losses
	(owned) and intangible		Intangible		(leased), net		Contract		based		Provisions not		available to				Net deferred
	assets subject		assets with		of lease		assets and		compensation		currently		be carried				income tax
	to amortization		indefinite lives		liabilities		liabilities		amounts		deductible		forward 1		Other		liability
As at January 1, 2018 2	$	1,221	$	1,561	$	—	$	441	$	(120)	$	(140)	$	(7)	$	(20)	$	2,936
Deferred income tax expense recognized in
Net income		(11)		78		(1)		55		(20)		(10)		1		(18)		74
Other comprehensive income		—		—		—		—		119		—		—		(6)		113
Deferred income taxes charged directly to owners’ equity and other (Note 18(c))		(6)		79		—		—		—		(54)		—		1		20
As at December 31, 2018 3	$	1,204	$	1,718	$	(1)	$	496	$	(21)	$	(204)	$	(6)	$	(43)	$	3,143
As at January 1, 2019	$	1,204	$	1,718	$	(1)	$	496	$	(21)	$	(204)	$	(6)	$	(43)	$	3,143
IFRS 16, Leases transitional amount (Note2(c))		—		—		(82)		—		—		15		—		14		(53)
As adjusted		1,204		1,718		(83)		496		(21)		(189)		(6)		(29)		3,090
Deferred income tax expense recognized in
Net income		332		(110)		6		(78)		(9)		(23)		(5)		2		115
Other comprehensive income		—		—		—		—		(110)		—		—		32		(78)
Deferred income taxes charged directly to owners’ equity and other (Note 18(b))		70		—		—		—		—		—		—		1		71
As at December 31, 2019 4	$	1,606	$	1,608	$	(77)	$	418	$	(140)	$	(212)	$	(11)	$	6	$	3,198

(1) We expect to be able to utilize our non-capital losses prior to expiry.

(2) Deferred tax liability of $2,941, net of deferred tax asset of $5 (included in Other long-term assets).

(3) Deferred tax liability of $3,148, net of deferred tax asset of $5 (included in Other long-term assets).

(4) Deferred tax liability of $3,204, net of deferred tax asset of $6 (included in Other long-term assets).