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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Summary of Income Tax Rate |
[a] | The provision for income taxes differs from the expense that would be obtained by applying the Canadian statutory income tax rate as a result of the following:
|  | 2023 |  |  | 2022 |
Canadian statutory income tax rate |  |  | 26.5 | % |  |  | 26.5 | %
Tax on repatriation of foreign earnings |  |  | 3.6 |  |  |  | 5.3 |
Net effect of losses not benefited |  |  | 1.2 |  |  |  | 7.7 |
Non-taxable capital losses (gains) |  |  | 1.2 |  |  |  | (0.3 | )
Reserve for uncertain tax positions |  |  | 0.6 |  |  |  | 0.4 |
Earnings of equity accounted investees |  |  | (1.4 | ) |  |  | (1.6 | )
Foreign exchange re-measurement |  |  | (1.7 | ) |  |  | (0.6 | )
Deductible inflationary adjustments |  |  | (1.7 | ) |  |  | (3.3 | )
Valuation allowance on deferred tax assets |  |  | (3.0 | ) |  |  | (2.2 | )
Foreign rate differentials |  |  | (3.2 | ) |  |  | 0.6 |
Research and development tax credits |  |  | (4.1 | ) |  |  | (7.1 | )
Others |  |  | 1.9 |  |  |  | 1.6 |
Effective income tax rate |  |  | 19.9 | % |  |  | 27.0 | %
Details of Income (loss) before Income Taxes by Jurisdiction |
[b] | The details of income (loss) before income taxes by jurisdiction are as follows:
|  | 2023 |  |  | 2022 |
Canadian |  | $ | (184 | ) |  | $ | (57 | )
Foreign |  |  | 1,790 |  |  |  | 935 |
|  | $ | 1,606 |  |  | $ | 878 |
Details of Income Tax Provision |
[c] | The details of the income tax provision are as follows:
|  | 2023 |  |  | 2022 |
Current |  |  |  |  |  |  |  |
Canadian |  | $ | 24 |  |  | $ | 5 |
Foreign |  |  | 557 |  |  |  | 452 |
|  |  | 581 |  |  |  | 457 |
Deferred |  |  |  |  |  |  |  |
Canadian |  |  | (26 | ) |  |  | (25 | )
Foreign |  |  | (235 | ) |  |  | (195 | )
|  |  | (261 | ) |  |  | (220 | )
|  | $ | 320 |  |  | $ | 237 |
Summary of Deferred Income Taxes Provided on Temporary Differences |
[d] | Deferred income taxes have been provided on temporary differences, which consist of the following:
|  | 2023 |  |  | 2022 |
Tax depreciation in excess of (less than) book depreciation |  | $ | 33 |  |  | $ | (21 | )
Tax on undistributed foreign earnings |  |  | 4 |  |  |  | (34 | )
Re-measurement of deferred tax assets |  |  | (8 | ) |  |  | (7 | )
Net tax losses (benefit) utilization |  |  | (25 | ) |  |  | 10 |
Unrealized loss on remeasurement of investments |  |  | (26 | ) |  |  | (48 | )
Change in valuation allowance on deferred tax assets |  |  | (47 | ) |  |  | (19 | )
Net (increase) decrease in non-deductible liabilities |  |  | (63 | ) |  |  | 17 |
Book amortization in excess of tax amortization |  |  | (112 | ) |  |  | (89 | )
Others |  |  | (17 | ) |  |  | (29 | )
|  | $ | (261 | ) |  | $ | (220 | )
Summary of Deferred Tax Assets and Liabilities |
[e] | Deferred tax assets and liabilities consist of the following temporary differences:
|  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Tax benefit of loss carryforwards |  | $ | 892 |  |  | $ | 760 |
Liabilities currently not deductible for tax |  |  | 400 |  |  |  | 269 |
Operating lease liabilities |  |  | 399 |  |  |  | 367 |
Other assets tax value in excess of book value |  |  | 150 |  |  |  | 87 |
Tax credit carryforwards |  |  | 90 |  |  |  | 87 |
Unrealized losses on remeasurement of investments |  |  | 79 |  |  |  | 37 |
Unrealized loss on foreign exchange hedges and retirement liabilities |  |  | 44 |  |  |  | 70 |
Others |  |  | 29 |  |  |  | 29 |
|  |  | 2,083 |  |  |  | 1,706 |
Valuation allowance against tax benefit of loss carryforwards |  |  | (597 | ) |  |  | (579 | )
Other valuation allowance |  |  | (221 | ) |  |  | (198 | )
|  | $ | 1,265 |  |  | $ | 929 |
Liabilities |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | 403 |  |  |  | 372 |
Tax depreciation in excess of book depreciation |  |  | 232 |  |  |  | 186 |
Tax on undistributed foreign earnings |  |  | 171 |  |  |  | 171 |
Unrealized gain on foreign exchange hedges and retirement liabilities |  |  | 22 |  |  |  | 21 |
|  |  | 828 |  |  |  | 750 |
Net deferred tax assets |  | $ | 437 |  |  | $ | 179 |
Net Deferred Tax Assets Presented on Consolidated Balance Sheet | The net deferred tax assets are presented on the consolidated balance sheet in the following categories:
|  | 2023 |  |  | 2022 |
Long-term deferred tax assets |  | $ | 621 |  |  | $ | 491 |
Long-term deferred tax liabilities |  |  | (184 | ) |  |  | (312 | )
|  | $ | 437 |  |  | $ | 179 |
Summary of Changes in Gross Unrecognized Tax Benefits |
[i] | As at December 31, 2023 and 2022, the Company’s gross unrecognized tax benefits were $220 million and $142 million, respectively [excluding interest and penalties], of which $188 million and $135 million, respectively, if recognized, would affect the Company’s effective tax rate. The gross unrecognized tax benefits differ from the amount that would affect the Company’s effective tax rate due primarily to the impact of the valuation allowance on deferred tax assets. A summary of the changes in gross unrecognized tax benefits is as follows:
|  | 2023 |  |  | 2022 |
Balance, beginning of year |  | $ | 142 |  |  | $ | 142 |
Increase based on tax positions related to current year |  |  | 28 |  |  |  | 52 |
Decrease based on tax positions of prior years |  |  | — |  |  |  | (17 | )
Settlements |  |  | 1 |  |  |  | (10 | )
Foreign currency translation |  |  | 5 |  |  |  | (4 | )
Statute expirations |  |  | (14 | ) |  |  | (21 | )
Acquisitions [note 7] |  |  | 58 |  |  |  | — |
|  | $ | 220 |  |  | $ | 142 |

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