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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Summary of income tax rate

		2011						2010						2009
Canadian statutory income tax rate (recovery)			28.3	%					31.0	%					(33.0)%
Manufacturing and processing profits deduction			(0.8	)					(0.6	)					(0.2)
Foreign rate differentials			(0.1	)					(4.2	)					(5.8)
Losses not benefited			9.5						3.3						28.3
Utilization of losses previously not benefited			(10.2	)					(9.4	)					(0.7)
Earnings of equity accounted investees			(1.6	)					(2.2	)					(3.0)
Goodwill impairment			—						—						7.3
Valuation allowance on deferred tax assets [i]			(6.5	)					(0.3	)					—
Other			(2.0	)					(1.4	)					2.1
Effective income tax rate			16.6	%					16.2	%					(5.0)%

[i] Accounting standards require that the Company assess whether valuation allowances should be established or maintained against its deferred tax assets, based on consideration of all available evidence, using a “more-likely-than-not” standard. The factors the Company uses to assess the likelihood of realization are its history of losses, forecast of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets.

The Company had valuation allowances against all of its deferred tax assets in the United States. The valuation allowances were required based on historical losses and uncertainty as to the timing of when the Company would be able to generate the necessary level of earnings to recover these deferred tax assets. Over the past two years, the Company’s United States operations have delivered sustained profits. Based on financial forecasts and the anticipated growth for the U.S. market, the Company released $78 million of the U.S. valuation allowances in the fourth quarter of 2011. As at December 31, 2011, the Company has remaining U.S. valuation allowances of $80 million, which relate to deferred tax assets with restrictions on their usability.

Details of income (loss) before income taxes by jurisdiction

		2011				2010				2009
Canadian		$	710			$	497			$	33
Foreign			507				700				(510	)
		$	1,217			$	1,197			$	(477	)

Details of the income tax provision (recovery)

		2011				2010				2009
Current
Canadian		$	115			$	73			$	(61	)
Foreign			163				138				49
			278				211				(12	)
Deferred
Canadian			7				11				27
Foreign			(83	)			(28	)			(39	)
			(76	)			(17	)			(12	)
		$	202			$	194			$	(24	)

Summary of deferred income taxes provided on temporary differences

		2011				2010				2009
Tax depreciation greater (less) than book depreciation		$	51			$	(13	)		$	(7	)
Book amortization in excess of tax amortization			—				(20	)			(9	)
Liabilities currently (not deductible) deductible for tax			(28	)			(27	)			14
Net tax losses (benefited) utilized			(37	)			48				(23	)
Change in valuation allowance on deferred tax assets			(78	)			(3	)			—
Other			16				(2	)			13
		$	(76	)		$	(17	)		$	(12	)

Summary of deferred tax assets and liabilities

		2011				2010
Assets
Tax benefit of loss carryforwards		$	527			$	486
Liabilities currently not deductible for tax			184				163
Tax credit carryforwards			73				72
Unrealized loss on cash flow hedges and retirement liabilities			51				9
Other			35				40
			870				770
Valuation allowance against tax benefit of loss carryforwards			(454	)			(444	)
Other valuation allowance			(103	)			(178	)
			313				148
Liabilities
Tax depreciation in excess of book depreciation			135				84
Other assets book value in excess of tax value			20				22
Unrealized gain on cash flow hedges and retirement liabilities			8				28
			163				134
Net deferred tax assets		$	150			$	14

Net deferred tax assets are presented on the Balance Sheet

		2011				2010
Current deferred tax assets		$	206			$	77
Current deferred tax liabilities			(44	)			(31	)
Long-term deferred tax assets			69				60
Long-term deferred tax liabilities			(81	)			(92	)
		$	150			$	14

Summary of the changes in gross unrecognized tax benefits

			0000000				0000000
		2011				2010
Balance, beginning of year		$	257			$	243
Additions based on tax positions related to current year			14				11
Additions based on tax positions of prior years			13				19
Settlements			(12	)			(19	)
Statute expirations			(16	)			(1	)
Foreign currency translation			(4	)			4
		$	252			$	257

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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.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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