Income taxes (Tables)

12 Months Ended

Dec. 31, 2017


	2017		2016
Current income tax expense
Expense for the year	$	25.1	$	35.5
Adjustment in respect of prior years		(5.6)		5.4
Current income tax expense	$	19.5		40.9
Deferred income tax expense (recovery)
Origination and reversal of temporary differences in the current year		15.7		15.3
Impact of U.S. Tax Reform		7.1		—
Impact of changes in tax rate		(0.9)		(0.8)
Change in (reversal of) unrecognized deductible temporary differences		0.1		(4.4)
Adjustments in respect of prior years		0.6		(4.3)
Other		(0.8)		(1.0)
Deferred income tax expense		21.8		4.8
Total	$	41.3	$	45.7

Reconciliation of the provision for income taxes


	2017		2016
Net income before income taxes	$	236.0	$	167.9
Statutory tax rate		26.6%		26.6%
Tax expense at statutory rate		62.8		44.7
Reconciling items:
Change in (reversal of) unrecognized deductible temporary differences		0.1		(4.4)
Income/expenses not (taxed) deductible		(3.0)		(1.9)
Differences in foreign statutory tax rates		(20.9)		4.8
Differences due to changing future tax rates		(0.9)		(0.8)
Impact of U.S. Tax Reform		7.1		—
Foreign withholding tax		1.4		1.8
Temporary differences subject to initial recognition exemption		(5.2)		0.5
Other		(0.1)		1.0
Net income tax expense	$	41.3	$	45.7

Schedule of income tax (expense) recovery recognized in other comprehensive income (loss)


		2017						2016
						After						After
		Before		Tax		Tax		Before		Tax		Tax
		Tax Gain		Expense		Gain		Tax Loss		Expense		Loss
Change in market value
of available-for-sale investments	$	47.1	$	(6.3)	$	40.8	$	46.0	$	(3.7)	$	42.3
Cumulative translation adjustment		77.2		—		77.2		21.3		—		21.3
Other comprehensive loss	$	124.3	$	(6.3)	$	118.0	$	67.3	$	(3.7)	$	63.6
Deferred tax	$	—	$	(6.3)	$	-	$	—	$	(3.7)	$	—

Schedule of components of deferred income tax assets and liabilities


	2017		2016
Deferred income tax assets:
Deductible temporary differences relating to:
Royalty, stream and working interests	$	5.6	$	10.7
Non-capital loss carry-forwards		9.5		11.2
Other		(0.6)		(0.6)
	$	14.5	$	21.3

Deferred income tax liabilities:
Taxable temporary differences relating to:
Share issue and debt issue costs	$	(7.1)	$	(9.7)
Royalty, stream and working interests		71.1		54.2
Non-capital loss carry-forwards		(5.6)		(4.4)
Investments		5.8		(0.1)
Other		(3.9)		(2.5)
	$	60.3	$	37.5
Deferred income tax liabilities, net	$	45.8	$	16.2

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

The analysis of deferred tax assets and deferred tax liabilities is as follows:


	2017		2016
Deferred income tax assets:
Deferred income tax asset to be recovered within 12 months	$	0.1	$	0.1
Deferred income tax asset to be recovered after more than 12 months		14.4		21.2
	$	14.5	$	21.3
Deferred income tax liabilities:
Deferred income tax liability to be settled within 12 months		0.9		1.2
Deferred income tax liability to be settled after more than 12 months		59.4		36.3
	$	60.3	$	37.5
Deferred income tax liabilities, net	$	45.8	$	16.2

Schedule of movement in net deferred taxes


		2017		2016
Balance, beginning of year	$	16.2	$	17.1
Recognized in profit/loss		21.8		4.8
Recognized in other comprehensive income		6.3		3.7
Recognized in equity		—		(10.0)
Other		1.5		0.6
Deferred income tax liabilities, net	$	45.8	$	16.2

Schedule of non-capital losses


Country	Type	Amount		Expiry Date
Canada	Non-Capital Losses	$	55.9	2028-2037