The Company’s effective tax rate differs from the statutory tax rate and varies from year to year primarily as a result of permanent differences, investment and other tax credits, the provision for income taxes at different rates in foreign and other provincial jurisdictions, enacted statutory tax rate increases or decreases in the year, changes due to foreign exchange, changes in the Company’s valuation allowance based on the Company’s recoverability assessments of deferred tax assets, and favorable or unfavorable resolution of various tax examinations. During the quarter ended September 30, 2019, there was no change in the Company’s estimates of the recoverability of its deferred tax assets based on an analysis of both positive and negative evidence including projected future earnings as necessary.

As at September 30, 2019, the Company had net deferred income tax assets after valuation allowance of $29.7 million (December 31, 2018 — $31.3 million), which consists of a gross deferred income tax asset of $29.9 million (December 31, 2018 — $31.5 million), against which the Company is carrying a $0.2 million valuation allowance (December 31, 2018 — $0.2 million).

For the quarter ended September 30, 2019, the Company recorded a provision for income taxes of $3.0 million. Included in the provision for income taxes was a recovery of $0.7 million related to its provision for uncertain tax positions and there were no amounts recognized related to its provision for tax shortfalls related to stock-based compensation costs recognized in the period.

In 2018, the Company finalised its accounting related to changes in the U.S. Tax Act. Among other things, the Company has finalised provisional estimates and tax calculations, which included an evaluation of recent interpretations and new guidance issued. No adjustments were recognised during the year ended December 31, 2018, and the provisional re-measurement effect on deferred taxes recorded in the 2017 year reflects the total effect of the changes in the U.S. Tax Act.

The Company has not provided for taxes on cumulative earnings of non-Canadian affiliates and associated companies that have been reinvested indefinitely. Taxes are provided for earnings of non-Canadian affiliates and associated companies when the Company determines that such earnings are no longer indefinitely reinvested.

Cash held outside of North America as at September 30, 2019 was $84.2 million (December 31, 2018 — $121.9 million), of which $63.5 million was held in the People’s Republic of China (“PRC”) (December 31, 2018 — $54.7 million). The Company's intent is to permanently reinvest these amounts outside of Canada and the Company does not currently anticipate that it will need funds generated from foreign operations to fund North American operations. In the event funds from foreign operations are needed to fund operations in North America and if withholding taxes have not already been previously provided, the Company would be required to accrue and pay these additional withholding tax amounts on repatriation of funds from China to Canada. The Company currently estimates this amount to be $10.2 million (December 31, 2018 — $8.4 million).

The income tax (expense) benefit included in the Company’s other comprehensive income are related to the following items:

	Three Months Ended							Nine Months Ended
		September 30,						September 30,
		2019			2018			2019			2018
Unrealized change in cash flow hedging instruments		$	(84	)	$	(132	)	$	(266	)	$	309
Realized change in cash flow hedging instruments upon settlement			138			12			42			99
		$	54		$	(120	)	$	(224	)	$	408