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Income Taxes (Tables)

12 Months Ended

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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