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Note 12 - Income Tax | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
12. |  | Income tax
Income tax differs from the amounts that would be obtained by applying the statutory rate to the respective year’s earnings before tax. Differences result from the following items:
|  | 2016 |  | 2015
Income tax expense using combined statutory rate of 26.5% (2015 - 26.5%, 2014 - 26.5%) |  | $ | 21,632 |  |  | $ | 16,326 |
Permanent differences |  |  | 434 |  |  |  | 488 |
Tax effect of flow through entities |  |  | (243 | ) |  |  | (230 | )
Impact of changes in foreign exchange rates |  |  | - |  |  |  | (10 | )
Adjustments to tax liabilities for prior periods |  |  | (456 | ) |  |  | 1,393 |
Effects of changes in enacted tax rates |  |  | - |  |  |  | (42 | )
Changes in liability for unrecognized tax benefits |  |  | (156 | ) |  |  | (130 | )
Foreign, state and provincial tax rate differential |  |  | 5,699 |  |  |  | 3,750 |
Gain on disposition of preferred shares |  |  | - |  |  |  | 1,246 |
Other taxes |  |  | 477 |  |  |  | (161 | )
Change in valuation allowances |  |  | - |  |  |  | 782 |
Provision for income taxes as reported |  | $ | 27,387 |  |  | $ | 23,412 |
Earnings before income tax by jurisdiction comprise the following:
|  | 2016 |  | 2015
Canada |  | $ | 16,989 |  |  | $ | 8,590 |
United States |  |  | 64,641 |  |  |  | 53,020 |
Total |  | $ | 81,630 |  |  | $ | 61,610 |
Income tax expense (recovery) comprises the following:
|  | 2016 |  | 2015
Current |  |  |  |  |  |  |  |
Canada |  | $ | 3,689 |  |  | $ | 829 |
United States |  |  | 21,945 |  |  |  | 10,757 |
|  |  | 25,634 |  |  |  | 11,586 |
Deferred |  |  |  |  |  |  |  |
Canada |  |  | (317 | ) |  |  | 1,352 |
United States |  |  | 2,070 |  |  |  | 10,474 |
|  |  | 1,753 |  |  |  | 11,826 |
Total |  | $ | 27,387 |  |  | $ | 23,412 |
The significant components of deferred income tax are as follows:
|  | 2016 |  | 2015
Deferred income tax assets |  |  |  |  |  |  |  |
Loss carry-forwards |  | $ | 1,066 |  |  | $ | 6,071 |
Expenses not currently deductible |  |  | 18,120 |  |  |  | 13,245 |
Stock-based compensation |  |  | 2,956 |  |  |  | 2,420 |
Basis differences of partnerships and other entities |  |  | 1,047 |  |  |  | 925 |
Allowance for doubtful accounts |  |  | 3,457 |  |  |  | 2,967 |
Inventory and other reserves |  |  | 542 |  |  |  | 548 |
|  |  | 27,188 |  |  |  | 26,176 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 31,168 |  |  |  | 13,971 |
Prepaid and other expenses deducted for tax purposes |  |  | 1,942 |  |  |  | 1,782 |
|  |  | 33,110 |  |  |  | 15,753 |
Net deferred income tax asset (liability) before valuation allowance |  |  | (5,922 | ) |  |  | 10,423 |
Valuation allowance |  |  | 756 |  |  |  | 783 |
Net deferred income tax asset (liability) |  | $ | (6,678 | ) |  | $ | 9,640 |
The recoverability of deferred income tax assets is dependent on generating sufficient taxable income before the 20 year loss carry-forward limitation. Although realization is not assured, the Company believes it is more likely than not that the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. The Company has gross operating loss carry-forwards as follows:
|  | Loss carry forward |  | Gross losses not recognized |  | Net
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015
Canada |  | $ | 2,082 |  |  | $ | 3,234 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,082 |  |  | $ | 3,234 |
United States |  |  | 7,902 |  |  |  | 21,472 |  |  |  | 6,470 |  |  |  | 6,470 |  |  |  | 1,432 |  |  |  | 15,002 |
These amounts above are available to reduce future federal and provincial income taxes in their respective jurisdictions. Net operating loss carry-forward balances attributable to the United States and Canada expire over the next 6 to 20 years. Cumulative unremitted earnings of US and foreign subsidiaries approximated $297,631 as at December 31, 2016 (2015 - $267,899). Income tax is not provided on the unremitted earnings of US and foreign subsidiaries because it has been the practice and is the intention of the Company to reinvest these earnings indefinitely in these subsidiaries. A reconciliation of the beginning and ending amounts of the liability for unrecognized tax benefits is as follows:
Balance, December 31, 2014 |  | $ | 494 |
Reduction for lapses in applicable statutes of limitations |  |  | (202 | )
Balance, December 31, 2015 |  |  | 292 |
Increases based on tax positions related to 2016 |  |  | (144 | )
Balance, December 31, 2016 |  | $ | 148 |
Of the $148 (2015 - $292) in gross unrecognized tax benefits, $148, (2015 - $292) would affect the Company’s effective tax rate if recognized. For the year ended December 31, 2016, a recovery of $12 in interest and penalties related to provisions for income tax was recorded in income tax expense (2015 - recovery of $34). As at December 31, 2016, the Company had accrued $38 (2015 - $50) for potential income tax related interest and penalties. The Company’s significant tax jurisdictions include the United States and Canada. The number of years with open tax audits varies depending on the tax jurisdictions. Generally, income tax returns filed with the Canada Revenue Agency and related provinces are open for three to four years and income tax returns filed with the U.S. Internal Revenue Service and related states are open for three to five years. The Company does not currently expect any other material impact on earnings to result from the resolution of matters related to open taxation years, other than noted above. Actual settlements may differ from the amounts accrued. The Company has, as part of its analysis, made its current estimates based on facts and circumstances known to date and cannot predict changes in facts and circumstances that may affect its current estimates.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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