15. Income taxes


	Year Ended December 31
	2015		2014		2013
Current income tax expense	$	5.3	$	3.8	$	8.6
Deferred tax benefit		(35.7)		(35.2)		(41.4)
Total income tax benefit, net	$	(30.4)	$	(31.4)	$	(32.8)

The following is a reconciliation of the income taxes calculated at the Canadian enacted statutory rate of 26% at December 31, 2015, 2014 and 2013, respectively, to the provision for income taxes in the consolidated statements of operations:


	Year ended December 31,
	2015		2014		2013
Computed income taxes at Canadian statutory rate	$	(29.8)	$	(47.5)	$	(14.7)
Decreases resulting from:
Operating countries with different income tax rates		(4.9)		(19.2)		(5.3)
	$	(34.7)	$	(66.7)	$	(20.0)
Change in valuation allowance		6.6		40.5		12.1
		(28.1)		(26.2)		(7.9)

Dividend withholding tax and other cash taxes		1.1		0.8		3.7
Foreign exchange		(7.0)		(7.4)		(9.9)
Changes in tax rates		2.1		(5.8)		(2.8)
Federal stimulus grant		—		—		(18.9)
Production tax credits		(3.6)		(0.3)		(4.4)
Changes in estimates of tax basis of equity method investments		(6.3)		(4.1)		23.0
Capital gain on intercompany notes		2.1		—		—
Goodwill impairment		14.8		33.9		13.6
Capital loss recognized on tax restructuring		—		(10.2)		—
Intra-period allocations from the Wind projects		(5.0)		(15.8)		(30.9)
Other		(0.5)		3.7		1.7
		(2.3)		(5.2)		(24.9)
	$	(30.4)	$	(31.4)	$	(32.8)

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below:


	2015		2014
Deferred tax assets:
Loss carryforwards	$	238.4	$	340.3
Other accrued liabilities		0.1		0.4
Finance and share issuance costs		1.7		6.2
Tax credits		4.7		—
Disallowed interest carryforward		—		3.4
Derivative instruments		15.1		22.3
Other long-term notes		5.2		—
Other		9.8		10.3
Total deferred tax assets		275.0		382.9
Valuation allowance		(175.2)		(168.6)
		99.8		214.3
Deferred tax liabilities:
Intangible assets		(79.0)		(75.0)
Property, plant and equipment		(106.5)		(208.9)
Other long-term investments		—		(22.8)
Total deferred tax liabilities		(185.5)		(306.7)
Net deferred tax liability	$	(85.7)	$	(92.4)

The following table summarizes the net deferred tax position as of December 31, 2015 and 2014:


	2015		2014
Long-term deferred tax liabilities	$	(85.7)	$	(92.4)
Net deferred tax liability	$	(85.7)	$	(92.4)

As of December 31, 2015, we have recorded a valuation allowance of $175.2 million. This amount is comprised primarily of provisions against available Canadian and U.S. net operating loss carryforwards. In assessing the recoverability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax asset will be realized. The ultimate realization of the deferred tax assets is dependent upon projected future taxable income in the United States and in Canada and available tax planning strategies.

In 2011, the IRS began an examination of our federal income tax returns for the tax years ended December 31, 2007 and 2009. On April 2, 2012, the IRS issued various Notices of Proposed Adjustments. The principal area of the proposed adjustments pertain to the classification of U.S. real property in the calculation of the gain related to our 2009 conversion from the previous Income Participating Security structure to our current traditional common share structure. On September 14, 2014, we entered into a settlement agreement with the IRS resulting in a $3.6 million increase to our taxable income for the 2009 tax year. This increase in taxable income was offset against our current year taxable losses for the 2009 tax year and therefore resulted in no cash taxes.

Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitation has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. As of December 31, 2015, we have not recorded any tax benefits related to uncertain tax positions.

As of December 31, 2015, we had the following net operating loss carryforwards that are scheduled to expire in the following years:


2027	$	45.3
2028		92.0
2029		70.0
2030		25.8
2031		13.4
2032		26.3
2033		150.2
2034		166.7
	$	589.7