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Income taxes | 12 Months Ended
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Dec. 31, 2021
Income taxes |
Income taxes | 9. Income taxes The expense for the year can be reconciled to income before income taxes as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 31, |  | 2021 |  | 2020 |  | 2019 |
Earnings before income tax | ​ | $ | 205,232 | ​ | $ | 235,888 | ​ | $ | 190,763 | ​
Statutory federal and provincial tax rate in British Columbia, Canada | ​ |  | 27.00 | % |  | 27.00 | % |  | 27.00 | %
Expected income tax expense | ​ | $ | 55,413 | ​ | $ | 63,690 | ​ | $ | 51,506 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-deductible expenses | ​ |  | 7,854 | ​ |  | 4,732 | ​ |  | 3,705 | ​
Adjustment to prior year provision to statutory tax returns | ​ |  | (1,826) | ​ |  | (865) | ​ |  | 4 | ​
Changes in the valuation of deferred tax assets | ​ |  | (355) | ​ |  | (2,027) | ​ |  | (550) | ​
Different tax rates of subsidiaries operating in foreign jurisdictions | ​ |  | (6,257) | ​ |  | (12,016) | ​ |  | (11,818) | ​
U.S. tax reform impacts | ​ |  | 3,584 | ​ |  | 17,105 | ​ |  | 6,949 | ​
Change in enacted tax rates | ​ |  | 121 | ​ |  | 391 | ​ |  | (1,016) | ​
Derecognition of deferred tax asset from purchase price adjustment | ​ |  | 947 | ​ |  | — | ​ |  | — | ​
Unrecognized tax benefits | ​ |  | (474) | ​ |  | 817 | ​ |  | (2,347) | ​
Benefits of deductible stock options vested and exercised | ​ |  | (2,121) | ​ |  | (4,070) | ​ |  | (1,780) | ​
Deductions for tax purposes in excess of accounting expenses | ​ |  | (2,709) | ​ | ​ | (1,831) | ​ | ​ | (287) | ​
Other | ​ |  | (799) | ​ |  | (396) | ​ |  | (2,743) | ​
​ | ​ | $ | 53,378 | ​ | $ | 65,530 | ​ | $ | 41,623 | ​
​ The income tax expense (recovery) consists of: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 31, |  | 2021 |  | 2020 |  | 2019
Canadian: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current tax expense | ​ | $ | 21,664 | ​ | $ | 27,766 | ​ | $ | 19,752
Deferred tax expense | ​ |  | 5,639 | ​ |  | 3,970 | ​ |  | 3,346
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Foreign: | ​ |  |  | ​ |  |  | ​ |  |
Current tax expense before application of operating loss carryforwards | ​ |  | 30,093 | ​ |  | 30,280 | ​ |  | 24,815
Tax benefit of operating loss carryforwards | ​ |  | (2,238) | ​ |  | (1,668) | ​ |  | (11,770)
Total current tax expense | ​ |  | 27,855 | ​ |  | 28,612 | ​ |  | 13,045
Deferred tax expense before adjustment | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
to opening valuation allowance | ​ |  | (1,781) | ​ |  | 6,127 | ​ |  | 5,727
Adjustment to opening valuation allowance | ​ |  | 1 | ​ |  | (945) | ​ |  | (247)
Total deferred tax (recovery) expense | ​ |  | (1,780) | ​ |  | 5,182 | ​ |  | 5,480
​ | ​ | $ | 53,378 | ​ | $ | 65,530 | ​ | $ | 41,623
​ The foreign provision for income taxes is based on foreign pre-tax earnings of $100,161,000, $117,212,000, and $108,714,000, in 2021, 2020, and 2019 respectively. The Company’s consolidated financial statements provide for any related tax liability on undistributed earnings that we intend to repatriate in the foreseeable future. As of December 31, 2021, income taxes have not been provided on a cumulative total of $685,650,000 of such earnings. The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be approximately $13,700,000. Earnings retained by subsidiaries and equity-accounted investments amount to approximately $702,650,000 (2020: $645,828,000; 2019: $500,430,000). The Company accrues withholding and other taxes that would become payable on the distribution of earnings only to the extent that either the Company does not control the relevant entity or it is expected that these earnings will be remitted in the foreseeable future. ​ 9. Income taxes (continued) The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
As at December 31, |  | 2021 |  | 2020
Deferred tax assets: |  | ​ |  |  | ​ |
Working capital | ​ | $ | 16,622 | ​ | $ | 13,185
Property, plant and equipment | ​ |  | 6,098 | ​ |  | 6,467
Share-based compensation | ​ |  | 5,661 | ​ |  | 5,606
Tax losses and tax credit carryforwards | ​ |  | 31,001 | ​ |  | 25,943
Lease liabilities | ​ | ​ | 28,769 | ​ | ​ | 29,393
Other | ​ |  | 7,336 | ​ |  | 8,848
​ | ​ |  | 95,487 | ​ |  | 89,442
Deferred tax liabilities: | ​ |  |  | ​ |  |
Property, plant and equipment | ​ | $ | (18,305) | ​ | $ | (16,838)
Goodwill | ​ |  | (7,382) | ​ |  | (2,255)
Intangible assets | ​ |  | (66,320) | ​ |  | (52,218)
Right-of-use assets | ​ | ​ | (25,606) | ​ | ​ | (26,206)
Long-term debt | ​ | ​ | (3,605) | ​ | ​ | (3,571)
Other | ​ |  | (5,932) | ​ |  | (7,165)
​ | ​ |  | (127,150) | ​ |  | (108,253)
Net deferred tax liabilities | ​ | $ | (31,663) | ​ | $ | (18,811)
​ | ​ | ​ | ​ | ​ | ​ | ​
Valuation allowance | ​ |  | (13,162) | ​ |  | (12,995)
​ | ​ | $ | (44,825) | ​ | $ | (31,806)
​ At December 31, 2021, the Company had non-capital loss carryforwards that are available to reduce taxable income in the future years. These non-capital loss carryforwards expire as follows: ​
​ | ​ | ​ | ​
2022 |  | $ | 3,330
2023 | ​ |  | 4,304
2024 | ​ |  | 189
2025 | ​ |  | 122
2026 and thereafter | ​ |  | 73,009
​ | ​ | $ | 80,954
​ The Company has capital loss carryforwards of approximately $82,211,000 (2020: $43,476,000) available to reduce future capital gains and interest deduction carryforwards of $2,454,000 (2020: $3,374,000), both of which carryforward indefinitely. Tax losses are denominated in the currency of the countries in which the respective subsidiaries are located and operate. Fluctuations in currency exchange rates could reduce the U.S. dollar equivalent value of these tax loss and tax credit carry forwards in future years. In assessing the realizability of our deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible and the loss carry forwards or tax credits can be utilized. Management considers projected future taxable income and tax planning strategies in making our assessment. ​ ​ 9. Income taxes (continued) Uncertain tax positions Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of the benefit to recognize in the financial statements. The tax position is measured as the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies unrecognized tax benefits that are not expected to result in the payment or receipt of cash within one year as non-current liabilities in the consolidated balance sheets. At December 31, 2021, the Company had gross unrecognized tax benefits of $18,859,000 (2020: $20,298,000). Of this total, $8,570,000 (2020: $9,248,000) represents the net amount of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate. Reconciliation of gross unrecognized tax benefits: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
As at December 31, |  | 2021 |  | 2020
Unrecognized tax benefits, beginning of year | ​ | $ | 20,298 | ​ | $ | 20,232
Increases - tax positions taken in prior period | ​ |  | 452 | ​ |  | 1,487
Increases - tax positions taken in current period | ​ |  | 1,077 | ​ |  | 558
Settlement and lapse of statute of limitations | ​ |  | (3,303) | ​ |  | (2,591)
Currency translation adjustment | ​ |  | 335 | ​ |  | 612
Unrecognized tax benefits, end of year | ​ | $ | 18,859 | ​ | $ | 20,298
​ Interest expense and penalties related to unrecognized tax benefits are recorded within the provision for income tax expense on the consolidated income statement. At December 31, 2021, the Company had accrued $3,896,000 (2020: $4,003,000) for interest and penalties. In the normal course of business, the Company is subject to audit by the Canadian federal and provincial taxing authorities, by the U.S. federal and various state taxing authorities and by the taxing authorities in various foreign jurisdictions. Tax years ranging from 2014 to 2021 remain subject to examination in Canada, the United States, Luxembourg, and the Netherlands. ​ The Canada Revenue Agency (“CRA”) is currently conducting an audit of the Company’s 2014, 2015, 2017, and 2018 taxation years. Management believes that the Company is in full compliance with Canadian tax laws. However, the CRA could challenge the manner in which the Company has filed its income tax returns and reported its income. In the event that the CRA challenges the manner in which the Company has filed its tax returns and reported its income, the Company will have the option to appeal any such decision. If the Company is not successful, however, the CRA audit could potentially result in additional income taxes, penalties and interest, which could have a material adverse effect on the Company.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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