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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Schedule of Deferred Income Taxes | Deferred income taxes are provided for temporary differences. The significant components of deferred income tax assets and liabilities consist of the following.
(in millions) | 2016 |  | 2015 |
Gross deferred income tax assets |  |
Tax loss and credit carryforwards | $ | 675 |  | $ | 387 |
Regulatory liabilities | 292 |  | 210 |
Employee future benefits | 155 |  | 116 |
Fair value of long-term debt adjustment | 88 |  | — |
Unrealized foreign exchange losses on long-term debt | 56 |  | 65 |
Other | 57 |  | 58 |
| 1,323 |  | 836 |
Deferred income tax assets valuation allowance | (56 | ) | (73 | )
Net deferred income tax assets | $ | 1,267 |  | $ | 763 |
Gross deferred income tax liabilities |  |
Utility capital assets | $ | (4,213 | ) | $ | (2,575 | )
Regulatory assets | (242 | ) | (201 | )
Intangible assets | (75 | ) | (37 | )
| (4,530 | ) | (2,813 | )
Net deferred income tax liability | $ | (3,263 | ) | $ | (2,050 | )
Schedule of Unrecognized Tax Benefits | The following table summarizes the change in unrecognized tax benefits during 2016 and 2015.
(in millions) | 2016 |  | 2015 |
Total unrecognized tax benefits, beginning of year | $ | 13 |  | $ | 11 |
Additions related to the current year | 10 |  | 1 |
Adjustments related to prior years | — |  | 1 |
Total unrecognized tax benefits, end of year | $ | 23 |  | $ | 13 |
Schedule of Components of Income Tax Expense | The components of the income tax expense were as follows.
(in millions) | 2016 |  | 2015 |
Canadian |  |
Earnings before income taxes | $ | 357 |  | $ | 544 |
Current income taxes | 66 |  | 59 |
Deferred income taxes | 54 |  | 113 |
Less: regulatory adjustments | (77 | ) | (100 | )
| (23 | ) | 13 |
Total Canadian | $ | 43 |  | $ | 72 |
Foreign |  |
Earnings before income taxes | $ | 501 |  | $ | 519 |
Current income taxes | (19 | ) | — |
Deferred income taxes | 121 |  | 151 |
Total Foreign | $ | 102 |  | $ | 151 |
Income tax expense | $ | 145 |  | $ | 223 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of consolidated statutory taxes to consolidated effective taxes.
(in millions, except as noted) | 2016 |  | 2015 |
Earnings before income taxes | $ | 858 |  | 1,063 |
Combined Canadian federal and provincial statutory income tax rate | 28.0 | % | 27.5 | %
Statutory income tax rate applied to earnings before income taxes | $ | 240 |  | $ | 292 |
Difference between Canadian statutory income tax rate and rates applicable to foreign subsidiaries | (28 | ) | (7 | )
Difference in Canadian provincial statutory income tax rates applicable to subsidiaries in different Canadian jurisdictions | (4 | ) | (4 | )
Items capitalized for accounting purposes but expensed for income tax purposes | (40 | ) | (39 | )
Difference between gain on sale of assets for accounting and amounts calculated for tax purposes | — |  | (18 | )
Change in tax rates and legislation | (6 | ) | 13 |
Difference between capital cost allowance and amounts claimed for accounting purposes | (25 | ) | (15 | )
Other | 8 |  | 1 |
Income tax expense | $ | 145 |  | $ | 223 |
Effective tax rate | 16.9 | % | 21.0 | %
Summary of Operating Loss Carryforwards | As at December 31, 2016, the Corporation had the following tax carryforward amounts.
(in millions) | Expiring Year | Amount |
Canadian |  |
Capital loss | n/a | $ | 76 |
Non-capital loss | 2025-2036 | 244 |
Other tax credits | 2026-2035 | 2 |
|  | 322 |
Unrecognized in the consolidated financial statements |  | (76 | )
|  | $ | 246 |
Foreign |  |
Capital loss | 2020-2021 | $ | 3 |
Federal and state net operating loss | 2031-2036 | 862 |
Other tax credits | 2032-2036 | 126 |
|  | 991 |
Unrecognized in the consolidated financial statements |  | (2 | )
|  | $ | 989 |
Total tax carryforwards |  | $ | 1,235 |
Summary of Tax Carryforward Amounts | As at December 31, 2016, the Corporation had the following tax carryforward amounts.
(in millions) | Expiring Year | Amount |
Canadian |  |
Capital loss | n/a | $ | 76 |
Non-capital loss | 2025-2036 | 244 |
Other tax credits | 2026-2035 | 2 |
|  | 322 |
Unrecognized in the consolidated financial statements |  | (76 | )
|  | $ | 246 |
Foreign |  |
Capital loss | 2020-2021 | $ | 3 |
Federal and state net operating loss | 2031-2036 | 862 |
Other tax credits | 2032-2036 | 126 |
|  | 991 |
Unrecognized in the consolidated financial statements |  | (2 | )
|  | $ | 989 |
Total tax carryforwards |  | $ | 1,235 |

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