Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Effective Income Tax for Continuing Operations From Statutory Canadian Tax Rates

The effective income tax rate for continuing operations in the consolidated statements of income differs from statutory Canadian tax rates as a result of the following:


	For the year ended December 31
		2019		2018
		%		%

Income tax expense at statutory Canadian rates		27.0		27.1
Increase (decrease) resulting from:
Rate differential on foreign income		2.2		(3.1	)
Non-deductible expenses and non-taxable income		0.7		0.8
Unrecognized tax losses and temporary differences		0.6		2.0
Transition tax related to US tax reform		0.4		(4.4	)
Research and development and other tax credits		(1.0	)	(0.7	)
Other		(3.1	)	2.6

		26.8		24.3

Summary of Major Components of Current and Deferred Income Tax Expense (Recovery) from Continuing Operations

Major components of current income tax expense from continuing operations are as follows:


	For the year ended December 31
		2019	2018
		$	$

Ongoing operations		54.9	64.5
Transition tax related to US tax reform		1.1	(10.0	)

Total current income tax expense		56.0	54.5

Major components of deferred income tax expense from continuing operations are as follows:


	For the year ended December 31
		2019		2018
		$		$

Origination and reversal of timing differences		12.9		(1.9	)
Unrecognized tax losses and temporary differences		7.8		2.7
Change of tax rates		(1.0	)	(0.1	)
Recovery arising from previously unrecognized tax assets		(4.6	)	(0.2	)

Total deferred income tax expense		15.1		0.5

Schedule of Significant Components of the Company's Net Deferred Income Tax Assets (Liabilities) from Continuing Operations


Significant components of net deferred income tax assets (liabilities) are as follows:
	December 31 2019 $			December 31 2018 $

Deferred income tax assets (liabilities)

Lease liabilities		162.0			-
Differences in timing of taxability of revenue and deductibility of expenses		16.2			33.4
Loss and tax credit carryforwards		11.4			16.7
Employee defined benefit plan		8.5			7.7
Other		1.1			2.5
Carrying value of property and equipment in excess of tax cost		(22.7	)		(7.3	)
Carrying value of intangible assets in excess of tax cost		(90.1	)		(86.1	)
Lease assets		(127.7	)		-

		(41.3	)		(33.1	)

Schedule of Reconciliation of Net Deferred Tax Assets (Liabilities)

The following is a reconciliation of net deferred tax assets (liabilities):

	December 31 2019 $			December 31 2018 $

Balance, beginning of the year		(33.1	)		(31.4	)
Impact of IFRS 16 in 2019 and IFRS 15 and IFRS 9 in 2018		11.5			6.7

January 1, 2019		(21.6	)		(24.7	)
Discontinued operations		-			(8.6	)
Tax effect on other comprehensive (loss) income		4.0			2.0
Impact of foreign exchange		0.8			(2.3	)
Other		0.2			(0.1	)
Deferred taxes acquired through business combinations		(9.6	)		(0.7	)
Tax (expense) recovery during the year recognized in net income		(15.1	)		1.3

Balance, end of the year		(41.3	)		(33.1	)

Schedule of Loss Carryforwards

At December 31, 2019, all loss carryforwards and deductible temporary differences available to reduce the taxable income of Canadian, US, and foreign subsidiaries were recognized in the consolidated financial statements, except as noted below.

	December 31 2019 $		December 31 2018 $

Deductible temporary differences		9.2		13.0

Non-capital tax losses:
Expire (2020 to 2039)		37.8		27.4
Never expire		71.2		73.4
		109.0		100.8

Capital tax losses:
Never expire		6.8		9.3

		125.0		123.1