INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2023

The reconciliation of income taxes at Canadian statutory rates with the income tax expense is as follows:



		2023			2022
Earnings before income taxes	$	296.3		$	153.6
Canadian statutory income tax rates		26.53	%		26.54	%
Income taxes at Canadian statutory rates	$	78.6		$	40.8
Effect of differences in tax rates in other jurisdictions		(3.5)			(16.8)
Unrecognized tax benefits and tax benefits not previously recognized		1.4			2.2
(Non-taxable revenues) Non-deductible expenses		(2.8)			1.5
Tax impact on after-tax profit of equity accounted investees		(13.0)			(12.1)
Prior years' tax adjustments		0.5			(1.5)
Other		3.2			(10.5)
Income tax expense	$	64.4		$	3.6
Effective tax rate		22	%		2	%

Significant components of the provision for the income tax expense are as follows:



		2023		2022
Current income tax expense :
Current year	$	53.2	$	30.4
Prior years' tax adjustments		0.8		3.1
Deferred income tax (recovery) expense:
Tax benefit not previously recognized used to reduce the deferred tax expense		(2.2)		(4.1)
Change in income tax rates		—		(6.6)
Origination and reversal of temporary differences		12.6		(19.2)

Income tax expense	$	64.4	$	3.6

During the year ended March 31, 2023, movements in temporary differences are as follows:






															Foreign
	Balance												currency
	beginning		Recognized			Recognized			Recognized			Business			exchange			Balance
	of year		in income				in OCI		in equity	combinations			differences			end of year
Non-capital loss carryforwards	$	96.9		$	(3.3)		$	—		$	—		$	—		$	5.7	$	99.3

Unclaimed research & development expenditures	86.6			75.8			—			—			—			(0.1)		162.3
Capital loss carryforwards	4.4			4.9			—			—			—			—		9.3
Investment tax credits	(85.4)			3.3			—			—			—			—		(82.1)
Property, plant and equipment and right-of-use of assets	(86.2)			(23.8)			—			—			(2.8)			(7.0)		(119.8)
Intangible assets	(90.2)			(19.6)			—			—			—			(4.9)		(114.7)
Deferred revenues, contract assets and contract liabilities	1.2			(21.6)			—			—			1.5			(0.3)		(19.2)
Foreign currency exchange difference	2.6			(8.9)			4.2			—			—			(0.3)		(2.4)
Derivative financial assets and liabilities	(0.2)			5.0			5.7			—			(0.8)			(1.1)		8.6
Defined benefit obligation	27.2			0.2			(19.7)			—			—			—		7.7
Amounts not currently deductible	83.1			(4.7)			—			—			—			1.9		80.3
Other	(16.3)			(17.7)			—			—			—			0.5		(33.5)
Net deferred tax assets (liabilities)	$	23.7		$	(10.4)		$	(9.8)		$	—		$	(2.1)		$	(5.6)	$	(4.2)

During the year ended March 31, 2022, movements in temporary differences are as follows:






																	Foreign
	Balance															currency
	beginning		Recognized				Recognized			Recognized			Business			exchange				Balance
	of year			in income				in OCI		in equity			combinations			differences			end of year
Non-capital loss carryforwards	$	48.1			$	48.3		$	—		—			$	0.2		$	0.3		$	96.9
Unclaimed research & development expenditures	70.8				15.9			—			—			(0.1)			—			86.6
Capital loss carryforwards	1.1				1.0			—			—			2.3			—			4.4
Investment tax credits	(76.4)				(9.0)			—			—			—			—			(85.4)
Property, plant and equipment and right-of-use of assets	(75.2)				(6.5)			—			—			(4.6)			0.1			(86.2)
Intangible assets	(92.5)				8.3			—			—			(5.9)			(0.1)			(90.2)
Deferred revenues, contract assets and contract liabilities	1.5				(42.2)			—			—			41.6			0.3			1.2
Foreign currency exchange difference	(1.4)				9.2			(4.9)			—			—			(0.3)			2.6
Derivative financial assets and liabilities	(6.5)				6.2			0.6			—			—			(0.5)			(0.2)
Defined benefit obligation	57.2				4.3			(33.4)			—			—			(0.9)			27.2
Amounts not currently deductible	65.0				4.6			—			—			13.5			—			83.1
Other	(10.3)				(10.2)			—			3.7			—			0.5			(16.3)
Net deferred tax (liabilities) assets	$	(18.6)			$	29.9		$	(37.7)		$	3.7		$	47.0		$	(0.6)		$	23.7

The non-capital losses incurred in various jurisdictions expire as follows: