XML 63 R30.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Income Tax Expense (Benefit)

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 were 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.

Components of Deferred Income Tax Liabilities and Assets

Components of deferred income tax liabilities and assets 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

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

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration