Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rates

For the three months ended September 30, 2022, the Company recorded income tax expense of $2.3 million (2021 — $4.4 million). For the three months ended September 30, 2022, the Company's effective tax rate differs from the combined Canadian federal and provincial statutory income tax rate due to the following factors:

	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
(In thousands of U.S. Dollars, except rates)	Amount			Rate			Amount			Rate
Income tax benefit at combined statutory rates	$	1,434		26.5%			$	514		26.5%
Adjustments resulting from:
Change of valuation allowance		(4,264	)	(78.8%)				(4,270	)	(219.9%)
Shortfall tax benefits related to share-based compensation		(2	)		—			(4	)	(0.2%)
Changes to tax reserves		(176	)	(3.3%)				(215	)	(11.1%)
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments		(102	)	(1.9%)				454			23.4	%
Other non-deductible/non-taxable items		762			14.1	%		(881	)	(45.4%)
Income tax expense	$	(2,348	)	(43.4%)			$	(4,402	)	(226.7%)

For the nine months ended September 30, 2022, the Company recorded income tax expense of $8.1 million (2021 — $9.4 million). For the nine months ended September 30, 2022, the Company's effective tax rate differs from the combined Canadian federal and provincial statutory income tax rate due to the following factors:

	Nine Months Ended					Nine Months Ended
	September 30, 2022					September 30, 2021
(In thousands of U.S. Dollars, except rates)	Amount			Rate		Amount			Rate
Income tax benefit at combined statutory rates	$	4,205		26.5%		$	3,588		26.5%
Adjustments resulting from:
Change of valuation allowance		(14,699	)	(92.6%)			(14,248	)	(105.2%)
(Shortfall) excess tax benefits related to share-based compensation		(154	)	(1.0%)			709		5.2%
Changes to tax reserves		(587	)	(3.7%)			1,234		9.1%
Gain on sale of Maoyan investment not taxable		—			—		1,367		10.1%
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		—			—		(547	)	(4.0%)
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments		2,395		15.1%			(246	)	(1.8%)
Other non-deductible/non-taxable items		749		4.7%			(1,273	)	(9.4%)
Income tax expense	$	(8,091	)	(51.0%)		$	(9,416	)	(69.5%)

For the nine months ended September 30, 2022, the Company recorded an additional $14.7 million (2021 — $14.2 million) valuation allowance against deferred tax assets in jurisdictions where management cannot reliably forecast that sufficient future tax liabilities will arise in specific jurisdictions, which includes the impact of the COVID-19 pandemic. Accordingly, the tax benefit associated with the current period losses in these jurisdictions is not ultimately reflected in the Company's Condensed Consolidated Statements of Operations.

Income Tax Expense in Other Comprehensive Loss

For the three and nine months ended September 30, 2022 and 2021, the Income Tax Expense related to the components of Other Comprehensive Loss is as follows:

	Three Months Ended							Nine Months Ended
		September 30,						September 30,
(In thousands of U.S. Dollars)		2022			2021			2022				2021
Unrealized change in cash flow hedging instruments		$	411		$	199			$	488			$	42
Realized change in cash flow hedging instruments			(19	)		82				(44	)			358
Reclassification of unrealized change in ineffective cash flow hedging instruments			—			7				—				83
Defined benefit and postretirement benefit plans			(12	)		(12	)			(36	)			(37	)
		$	380		$	276			$	408			$	446