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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Disclosure Of Income Tax Expense Continuing Operations [Abstract] |
Income Taxes |
10. INCOME TAXES
A) Income Tax Expense (Recovery)
For the years ended December 31, | 2024 |  | 2023 |  |  |  |
Current Tax |  |  |  |  |  |  |
Canada | 1,141 |  | 1,041 |  |  |  |
United States | 9 |  | (109) |  |  |  |
Asia Pacific | 214 |  | 224 |  |  |  |
Other International | 39 |  | 25 |  |  |  |
Total Current Tax Expense (Recovery) | 1,403 |  | 1,181 |  |  |  |
Deferred Tax Expense (Recovery) | (474) |  | (250) |  |  |  |
| 929 |  | 931 |  |  |  |
The following table reconciles income taxes calculated at the consolidated combined federal and provincial Canadian statutory rate with the recorded income taxes:
For the years ended December 31, | 2024 |  | 2023 |  |  |  |
Earnings (Loss) Before Income Tax | 4,071 |  | 5,040 |  |  |  |
Canadian Statutory Rate (percent) | 23.7 |  |  | 23.7 |  |  |  |  |
Expected Income Tax Expense (Recovery) | 965 |  | 1,194 |  |  |  |
Effect on Taxes Resulting From: |  |  |  |  |  |  |
Statutory and Other Rate Differences | (34) |  | (38) |  |  |  |
Non-Taxable Capital (Gains) Losses | 45 |  | (15) |  |  |  |
Non-Recognition of Capital (Gains) Losses | 45 |  | (30) |  |  |  |
Adjustments Arising From Prior Year Tax Filings | (31) |  | (16) |  |  |  |
Recognition of U.S. Tax Basis | (77) |  | (115) |  |  |  |
Other | 16 |  | (49) |  |  |  |
Total Tax Expense (Recovery) | 929 |  | 931 |  |  |  |
Effective Tax Rate (percent) | 22.8 |  |  | 18.5 |  |  |  |  |
In June 2024, the Global Minimum Tax Act was enacted in Canada to implement the new global minimum tax framework (“Pillar Two”), which is to be applied retroactively to fiscal periods beginning on or after December 31, 2023. The Company is subject to Pillar Two and has applied the mandatory temporary exemption of IAS 12, “Income Taxes” and in turn, has not recognized the impacts of Pillar Two in the deferred income tax calculation. For the year ended December 31, 2024, Pillar Two taxes did not have a material impact on net earnings. The Company is not expecting a material impact from jurisdictions where we operate that have not enacted Pillar Two legislation. B) Deferred Income Tax Assets and Liabilities The breakdown of deferred income tax assets and deferred income tax liabilities, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
As at December 31, 2024 | 2024 |  | 2023 |  |  |  |
Deferred Income Tax Assets |  |  |  |  |  |  |
Deferred Income Tax Assets to be Settled Within Twelve Months | (29) |  | (315) |  |  |  |
Deferred Income Tax Assets to be Settled After More Than Twelve Months | (1,269) |  | (1,174) |  |  |  |
| (1,298) |  | (1,489) |  |  |  |
Deferred Income Tax Liabilities |  |  |  |  |  |  |
Deferred Income Tax Liabilities to be Settled Within Twelve Months | 68 |  | 138 |  |  |  |
Deferred Income Tax Liabilities to be Settled After More Than Twelve Months | 4,211 |  | 4,843 |  |  |  |
| 4,279 |  | 4,981 |  |  |  |
Net Deferred Income Tax Liability | 2,981 |  | 3,492 |  |  |  |
The deferred income tax assets and liabilities to be settled within twelve months represents Management’s estimate of the timing of the reversal of temporary differences and may not correlate to the current income tax expense of the subsequent year. The movement in deferred income tax assets and liabilities, without taking into consideration the offsetting of balances within the same tax jurisdiction, was:
Deferred Income Tax Assets | Unused Tax Losses |  | Other |  | Total
As at December 31, 2022 | (156) |  | (622) |  | (778)
Charged (Credited) to Earnings | (777) |  | 54 |  | (723)
Charged (Credited) to Other Comprehensive Income | 19 |  | (7) |  | 12
As at December 31, 2023 | (914) |  | (575) |  | (1,489)
Charged (Credited) to Earnings | 242 |  | (9) |  | 233
Charged (Credited) to Other Comprehensive Income | (66) |  | 24 |  | (42)
As at December 31, 2024 | (738) |  | (560) |  | (1,298)
Deferred Income Tax Liabilities | PP&E |  | Other |  | Total
As at December 31, 2022 | 4,460 |  | 55 |  | 4,515
Charged (Credited) to Earnings | 495 |  | (22) |  | 473
Charged (Credited) to Other Comprehensive Income | (7) |  | — |  | (7)
As at December 31, 2023 | 4,948 |  | 33 |  | 4,981
Charged (Credited) to Earnings | (716) |  | 9 |  | (707)
Charged (Credited) to Other Comprehensive Income | 5 |  | — |  | 5
As at December 31, 2024 | 4,237 |  | 42 |  | 4,279
Net Deferred Income Tax Liabilities | Total
As at December 31, 2022 | 3,737
Charged (Credited) to Earnings | (250)
Charged (Credited) to Other Comprehensive Income | 5
As at December 31, 2023 | 3,492
Charged (Credited) to Earnings | (474)
Charged (Credited) to Other Comprehensive Income | (37)
As at December 31, 2024 | 2,981
The deferred income tax asset of $1.1 billion as at December 31, 2024 (December 31, 2023 – $696 million) represents net deductible temporary differences in the U.S. jurisdiction, which have been fully recognized, as the probability of realization is expected due to forecasted taxable income. No deferred tax liability was recognized as at December 31, 2024, or December 31, 2023, on temporary differences associated with investments in subsidiaries and joint arrangements where the Company can control the timing of the reversal of the temporary difference and the reversal is not probable in the foreseeable future. C) Tax Pools The approximate amounts of tax pools available, including tax losses, are:
As at December 31, | 2024 |  | 2023 |  |  |  |
Canada | 10,086 |  | 8,547 |  |  |  |
United States | 9,905 |  | 8,058 |  |  |  |
Asia Pacific | 351 |  | 347 |  |  |  |
| 20,342 |  | 16,952 |  |  |  |
As at December 31, 2024, the above tax pools included $197 million (December 31, 2023 – $126 million) of Canadian federal non-capital losses and $3.0 billion (December 31, 2023 – $3.7 billion) of U.S. net operating losses. These losses expire no earlier than 2043. As at December 31, 2024, the Company had Canadian net capital losses totaling $85 million (December 31, 2023 – $59 million), which are available for carry forward to reduce future capital gains. The Company has not recognized $362 million (December 31, 2023 – $141 million) of deductible temporary differences associated with unrealized foreign exchange losses on its U.S. denominated debt.

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