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INCOME TAXES | 12 Months Ended
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Mar. 31, 2024
Income Tax [Abstract] |
INCOME TAXES | INCOME TAXES Income tax expense The reconciliation of income taxes at Canadian statutory rates with the income tax (recovery) expense is as follows:
|  | 2024 |  | 2023
(Loss) earnings before income taxes | $ | (390.4) |  | $ | 292.4 |
Canadian statutory income tax rates |  | 26.50 | % |  | 26.53 | %
Income taxes at Canadian statutory rates | $ | (103.5) |  | $ | 77.6 |
Effect of differences in tax rates in other jurisdictions |  | 7.4 |  |  | (4.0) |
Non-deductible impairment of goodwill |  | 41.6 |  |  | — |
Unrecognized tax benefits |  | 18.3 |  |  | 0.9 |
Non-taxable revenues |  | (4.1) |  |  | (3.2) |
Tax impact on after-tax profit of equity accounted investees |  | (18.8) |  |  | (13.0) |
Prior years' tax adjustments |  | (14.4) |  |  | 1.1 |
Other |  | 0.7 |  |  | 3.2 |
Income tax (recovery) expense | $ | (72.8) |  | $ | 62.6 |
Effective tax rate |  | 19 | % |  | 21 | %
The Company's applicable tax rate corresponds to the combined Canadian tax rates applicable in the provinces where the Company operates. The decrease is due to a change in the allocation of income in the jurisdictions it operates. Significant components of the provision for the income tax (recovery) expense are as follows:
|  | 2024 |  | 2023
Current income tax expense : |  |  |  |
Current year | $ | 74.0 |  | $ | 49.9 |
Prior years' tax adjustments |  | 68.2 |  |  | 0.7 |
Deferred income tax (recovery) expense: |  |  |  |
Tax benefit not previously recognized used to reduce the deferred tax expense |  | 18.3 |  |  | (2.2) |
Origination and reversal of temporary differences |  | (233.3) |  |  | 14.2 |
Income tax (recovery) expense | $ | (72.8) |  | $ | 62.6 |
Tax court decision related to the Strategic Aerospace and Defence Initiative (SADI) program During the year ended March 31, 2024, a tax court decision rendered in May 2023 related to the SADI program resulted in a current income tax expense of $57.4 million and a deferred income tax recovery of $61.9 million. Deferred tax assets and liabilities During the year ended March 31, 2024, movements in temporary differences are as follows:
|  |  |  |  |  |  |  |  |  |  |  | Foreign |  |
| Balance |  |  |  |  | Disposal of |  |  | currency |  |
| beginning | Recognized | Recognized |  |  |  | discontinued |  | exchange |  | Balance
| of year | in income |  | in OCI |  |  |  | operations |  | differences | end of year
Non-capital loss carryforwards | $ | 98.2 |  |  | $ | 59.4 |  |  | $ | — |  |  |  |  |  | $ | (14.6) |  |  |  |  | $ | (0.5) |  |  | $ | 142.5 |
Unclaimed research & development expenditures | 162.3 |  |  | 13.5 |  |  | — |  |  |  |  |  | (13.7) |  |  |  |  | — |  |  | 162.1 |
Investment tax credits | (82.1) |  |  | 5.8 |  |  | — |  |  |  |  |  | 2.1 |  |  |  |  | 0.4 |  |  | (73.8) |
Property, plant and equipment and right-of-use of assets | (114.8) |  |  | (41.0) |  |  | — |  |  |  |  |  | 1.1 |  |  |  |  | 0.6 |  |  | (154.1) |
Intangible assets | (114.7) |  |  | 64.6 |  |  | — |  |  |  |  |  | 10.5 |  |  |  |  | 0.6 |  |  | (39.0) |
Amounts not currently deductible | 80.3 |  |  | 3.0 |  |  | — |  |  |  |  |  | (6.9) |  |  |  |  | 0.5 |  |  | 76.9 |
Government participation | (32.6) |  |  | 118.7 |  |  | — |  |  |  |  |  | 0.3 |  |  |  |  | — |  |  | 86.4 |
Other | (0.8) |  |  | 9.7 |  |  | (10.6) |  |  |  |  |  | (3.9) |  |  |  |  | 1.3 |  |  | (4.3) |
Net deferred tax assets (liabilities) | $ | (4.2) |  |  | $ | 233.7 |  |  | $ | (10.6) |  |  |  |  |  | $ | (25.1) |  |  |  |  | $ | 2.9 |  |  | $ | 196.7 |
For the year ended March 31, 2024, deferred tax recovery of $18.7 million has been recorded in net income from discontinued operations. During the year ended March 31, 2023, movements in temporary differences are as follows:
|  |  |  |  |  |  |  |  |  | Foreign |  |
| Balance |  |  |  |  |  | currency |  |
| beginning | Recognized | Recognized |  | Business | exchange |  | Balance
| of year | in income |  | in OCI |  | combinations | differences | end of year
Non-capital loss carryforwards | $ | 96.9 |  |  | $ | (4.4) |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 5.7 |  |  | $ | 98.2 |
Unclaimed research & development expenditures | 86.6 |  |  | 75.8 |  |  | — |  |  |  |  | — |  |  | (0.1) |  |  | 162.3 |
Investment tax credits | (85.4) |  |  | 3.3 |  |  | — |  |  |  |  | — |  |  | — |  |  | (82.1) |
Property, plant and equipment and right-of-use of assets | (82.7) |  |  | (22.9) |  |  | — |  |  |  |  | (2.8) |  |  | (6.4) |  |  | (114.8) |
Intangible assets | (90.2) |  |  | (19.7) |  |  | — |  |  |  |  | — |  |  | (4.8) |  |  | (114.7) |
Amounts not currently deductible | 83.1 |  |  | (4.7) |  |  | — |  |  |  |  | — |  |  | 1.9 |  |  | 80.3 |
Government participation | (24.0) |  |  | (8.6) |  |  | — |  |  |  |  | — |  |  | — |  |  | (32.6) |
Other | 39.4 |  |  | (29.2) |  |  | (9.8) |  |  |  |  | 0.7 |  |  | (1.9) |  |  | (0.8) |
Net deferred tax assets (liabilities) | $ | 23.7 |  |  | $ | (10.4) |  |  | $ | (9.8) |  |  |  |  | $ | (2.1) |  |  | $ | (5.6) |  |  | $ | (4.2) |
For the year ended March 31, 2023, deferred tax recovery of $1.6 million has been recorded in net income from discontinued operations. As at March 31, 2024, net deferred tax assets of $199.4 million (2023 – $81.5 million) were recognized in jurisdictions that incurred losses this fiscal year or the preceding fiscal year. Based upon the level of historical taxable income or projections for future taxable income, management believes it is probable that the Company will realize the benefits of these net deferred tax assets. As at March 31, 2024, a deferred income tax liability on taxable temporary differences of $3,065.5 million (2023 – $2,866.1 million) related to investments in subsidiaries and interests in joint ventures has not been recognized, because the Company controls the timing of the reversal of the temporary differences and believes it is probable that the temporary differences will not be reversed in the foreseeable future. The non-capital losses incurred in various jurisdictions expire as follows:
Expiry date | Unrecognized | Recognized
2025-2029 | $ | 28.8 |  | $ | 20.6 |
2030-2044 |  | 26.0 |  |  | 264.8 |
No expiry date |  | 140.4 |  |  | 290.0 |
| $ | 195.2 |  | $ | 575.4 |
As at March 31, 2024, the Company has $139.6 million (2023 – $115.5 million) of deductible temporary differences for which deferred tax assets have not been recognized. The Company also has $180.2 million (2023 – $19.9 million) of capital losses for which deferred tax assets have not been recognized with no expiry date. Pillar Two Pillar Two has been enacted or substantively enacted in certain jurisdictions in which the Company operates, effective for the Company’s group financial year beginning April 1, 2024. The determination of the minimum tax impact will require significant interpretation of each country's new legislation to determine the ultimate tax liability for the group of companies as a whole. Based on its preliminary assessment of the 15% minimum tax, the Company expects an increase in the effective income tax rate, however, it is not expected to have a material impact on the Company’s financial statements.

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- Definition Income Tax [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2023-01-01 -Section Disclosure -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=12&code=ifrs-tx-2023-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2023-03-23 + Details
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