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Income taxes | 12 Months Ended
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Dec. 31, 2019
Income taxes | 4. Income taxes
millions of Canadian dollars |  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Current income tax expense (a) |  |  | 140 |  |  |  | (14 | ) |  |  | (58 | )
Deferred income tax expense (a) |  |  | (294 | ) |  |  | 773 |  |  |  | 150 |
Total income tax expense (a) |  |  | (154 | ) |  |  | 759 |  |  |  | 92 |
Statutory corporate tax rate (percent) |  |  | 26.0 |  |  |  | 26.9 |  |  |  | 26.9 |
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Disposals (b) |  |  | (0.6 | ) |  |  | (0.3 | ) |  |  | (5.3 | )
Enacted tax rate change (a) |  |  | (31.9 | ) |  |  | - |  |  |  | 0.9 |
Other (c) |  |  | (1.0 | ) |  |  | (1.9 | ) |  |  | (6.6 | )
Effective income tax rate |  |  | (7.5 | ) |  |  | 24.7 |  |  |  | 15.9 |
(a) | On June 28, 2019 the Alberta government enacted a 4 percent decrease in the provincial tax rate, from 12 percent to 8 percent by 2022. On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent.
(b) | 2017 disposals we re primarily associated with the sale of surplus property in Ontario.
(c) | Other decreases in 2017 and 2018 were primarily related to prior year adjustments and re-assessments.
Deferred income taxes are based on differences between the accounting and tax values of assets and liabilities. These differences in value are re-measured at each year-end using the tax rates and tax laws expected to apply when those differences are realized or settled in the future. Components of deferred income tax liabilities and asset s as at December 31 were:
millions of Canadian dollars |  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Depreciation and amortization |  |  | 5,164 |  |  |  | 5,726 |  |  |  | 5,564 |
Successful drilling and land acquisitions |  |  | 750 |  |  |  | 856 |  |  |  | 762 |
Pension and benefits |  |  | (469 | ) |  |  | (336 | ) |  |  | (422 | )
Asset retirement obligation |  |  | (336 | ) |  |  | (381 | ) |  |  | (376 | )
Capitalized interest |  |  | 117 |  |  |  | 121 |  |  |  | 118 |
LIFO inventory valuation |  |  | (276 | ) |  |  | (107 | ) |  |  | (318 | )
Tax loss carryforwards |  |  | (141 | ) |  |  | (658 | ) |  |  | (936 | )
Other |  |  | (161 | ) |  |  | (150 | ) |  |  | (196 | )
Net deferred income tax liabilities |  |  | 4,648 |  |  |  | 5,071 |  |  |  | 4,196 |
Unrecognized tax benefits Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in unrecognized tax benefits:
millions of Canadian dollars |  |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |
Balance as of January 1 |  |  | 36 |  |  |  | 78 |  |  |  | 106 |
Additions for prior years’ tax positions |  |  | 1 |  |  |  | 9 |  |  |  | 2 |
Reductions for prior years’ tax positions |  |  | - |  |  |  | (2 | ) |  |  | - |
Reductions due to lapse of the statute of limitations |  |  | - |  |  |  | - |  |  |  | - |
Settlements with tax authorities |  |  | (2 | ) |  |  | (49 | ) |  |  | (30 | )
Balance as of December 31 |  |  | 35 |  |  |  | 36 |  |  |  | 78 |
The unrecognized tax benefit balances shown above are predominately related to tax positions that would reduce the company’s effective tax rate if the positions are favourably resolved. Unfavourable resolution of these tax positions generally would not increase the effective tax rate. The 2019, 2018 and 2017 changes in unrecognized tax benefits did not have a material effect on the company’s net income or cash flow. The company’s tax filings from 2015 to 2019 are subject to examination by the tax authorities. Tax filings from 2003 to 2014 have open objections and therefore are also subject to examination by the tax authorities. The Canada Revenue Agency has made certain adjustments to the company’s filings. Management has evaluated these adjustments and is formally disputing those matters to which the company disagrees. Many of these outstanding matters will not be resolved until after 2020. The impact on unrecognized tax benefits and the company’s effective income tax rate from these matters is not expected to be material. Resolution of the related tax positions could take many years to complete. It is difficult to predict the timing of resolution for tax positions since such timing is not entirely within the control of the company. The company classifies interest on income tax related balances as interest expense or interest income and classifies tax related penalties as operating expense.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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