Income and other taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Components of income tax expense

Income tax (expense) recovery:

For the years ended December 31	2021		2020
Current tax (expense) recovery:
Current period before undernoted items	$	(115,629)	$	(27,759)
Adjustments to prior years	(138)		2,563
	(115,767)		(25,196)
Deferred tax recovery (expense):
Origination and reversal of temporary differences	4,360		89,301
Adjustments to prior years	(235)		(1,067)
Changes in tax rates	3,630		(5,031)
Other	(2,415)		4,098
	5,340		87,301
Total income tax (expense) recovery	$	(110,427)	$	62,105

Reconciliation of accounting profit multiplied by applicable tax rates

Income tax (expense) recovery differs from the amounts that would be obtained by applying the Canadian statutory income tax rate to net income (loss) before income taxes as follows:

For the years ended December 31	2021			2020
Income (loss) before income taxes	$	666,338		$	(187,432)
Deduct earnings of associate	(97,743)			(29,577)
	568,595			(217,009)
Canadian statutory tax rate	24.5		%	25.6		%
Income tax recovery (expense) calculated at Canadian statutory tax rate	(139,306)			55,554
Decrease (increase) in income tax expense resulting from:
Impact of income and losses taxed in foreign jurisdictions	(24,313)			3,771
Utilization of unrecognized loss carryforwards and temporary differences	7,008			7,013
Impact of tax rate changes and tax settlements	43,515			(5,031)
Impact of foreign exchange	(3,198)			3,748
Other business taxes	(3,691)			(3,081)
Impact of recovery items (expenses) not taxable (deductible) for tax purposes	8,377			(5,461)
Adjustments to prior years	(373)			1,496
Other	1,554			4,096
Total income tax (expense) recovery	$	(110,427)		$	62,105

Effect of temporary difference, unused tax losses and unused tax credits and analysis of change in deferred income tax liabilities

The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets is as follows:

As at			Dec 31, 2021						Dec 31, 2020
	Net		Deferred tax assets		Deferred tax liabilities		Net		Deferred tax assets		Deferred tax liabilities
Property, plant and equipment (owned)	$	(427,001)	$	(253,108)	$	(173,893)	$	(448,533)	$	(262,020)	$	(186,513)
Right-of-use assets	(35,571)		(28,047)		(7,524)		(43,386)		(35,297)		(8,089)
Repatriation taxes	(106,339)		—		(106,339)		(102,370)		—		(102,370)
Other	(13,467)		(270)		(13,197)		(15,205)		—		(15,205)
	(582,378)		(281,425)		(300,953)		(609,494)		(297,317)		(312,177)
Non-capital loss carryforwards	370,642		329,405		41,237		391,132		339,396		51,736
Lease obligations	48,481		37,153		11,328		56,894		44,455		12,439
Share-based compensation	14,063		1,832		12,231		14,669		1,758		12,911
Other	34,656		11,204		23,452		70,931		49,232		21,699
	467,842		379,594		88,248		533,626		434,841		98,785
Net deferred income tax assets (liabilities)	$	(114,536)	$	98,169	$	(212,705)	$	(75,868)	$	137,524	$	(213,392)

As at December 31, 2021, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in the United States. These loss carryforwards expire as follows:

	Dec 31 2021
	Gross amount		Tax effect
Expire
Losses generated in 2015 (expires 2035)	$	294,774	$	67,798
Losses generated in 2016 (expires 2036)	432,581		99,494
Losses generated in 2017 (expires 2037)	234,941		54,036
	962,296		221,328
No expiry
Losses generated in 2019	255,244		58,706
Losses generated in 2020	160,058		36,813
Total non-capital loss carryforwards	$	1,377,598	$	316,847

Analysis of the change in deferred income tax assets and liabilities:

			2021						2020
	Net		Deferred tax assets		Deferred tax liabilities		Net		Deferred tax assets		Deferred tax liabilities
Balance, January 1	$	(75,868)	$	137,524	$	(213,392)	$	(161,206)	$	111,614	$	(272,820)
Deferred income tax recovery included in net income	5,340		(592)		5,932		87,301		28,243		59,058
Deferred income tax recovery (expense) included in other comprehensive income	(42,919)		(38,763)		(4,156)		(2,325)		(2,333)		8
Other	(1,089)		—		(1,089)		362		—		362
Balance, December 31	$	(114,536)	$	98,169	$	(212,705)	$	(75,868)	$	137,524	$	(213,392)