INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Reconciliation of accounting profit multiplied by applicable tax rates and average effective tax rate

The reasons for the difference and the related tax effects are as follows:


		2023			2022

Earnings before income taxes		$	564,183		$	566,428
Applicable statutory tax rate		26.5		%	26.5		%
Income taxes at applicable statutory rate		149,508			150,103

Increase (decrease) in income taxes resulting from:
	Effect of different tax rates and additional income taxes in other jurisdictions	(141,387)			(132,436)
	Income tax and other adjustments related to prior taxation years	(2,824)			321

	Recognition of previously de-recognized tax benefits related to tax losses and temporary differences	—			(9,938)
	Non-recognition of tax benefits related to tax losses and temporary differences	24,798			13,151
	Effect of non-deductible expenses and other	508			3,687
Total income tax expense		$	30,603		$	24,888
Average effective tax rate		5.4		%	4.4		%

Major components of tax expense (income)

The details of income tax expense are as follows:


		2023		2022

Current income taxes, includes a recovery of $2,848 (2022 - $1,283) relating to prior taxation years		$	20,456	$	25,039

Deferred income taxes:


	Origination and reversal of temporary differences	(14,645)		(4,968)
	Recognition of previously de-recognized tax benefits related to tax losses and temporary differences	—		(9,938)
	Non-recognition of tax benefits related to tax losses and temporary differences	24,768		13,151

	Adjustments relating to prior taxation years	24		1,604
		10,147		(151)
Total income tax expense		$	30,603	$	24,888

Disclosure of temporary difference, unused tax losses and unused tax credits

Significant components of the Company’s deferred income tax assets and liabilities relate to the following temporary differences and unused tax losses:


		December 31, 2023		January 1, 2023


Deferred income tax assets:
	Non-capital losses	$	119,187	$	111,792
	Non-deductible reserves and accruals	15,233		14,837
	Property, plant and equipment	17,470		16,063
	Lease liability	16,448		14,800
	Intangible assets	6,737		3,427
	Other items	10,202		10,189
		185,277		171,108
	Unrecognized deferred income tax assets	(130,425)		(105,658)
Deferred income tax assets		$	54,852	$	65,450

Deferred income tax liabilities:
	Right-of-use assets	$	(12,312)	$	(11,102)
	Property, plant and equipment	(36,687)		(38,348)

Deferred income tax liabilities		$	(48,999)	$	(49,450)
Deferred income taxes		$	5,853	$	16,000

The details of changes to deferred income tax assets and liabilities were as follows:


		2023		2022

Balance, beginning of fiscal year, net		$	16,000	$	17,726

Recognized in the statements of earnings:
	Non-capital losses	7,394		10,133
	Non-deductible reserves and accruals	396		(11,218)
	Property, plant and equipment	3,069		773
	Right of use assets and lease liability	438		24
	Intangible assets	3,310		888
	Other	14		2,459

	Unrecognized deferred income tax assets	(24,768)		(2,908)
		(10,147)		151

Business acquisitions		—		(1,754)
Other		—		(123)
Balance, end of fiscal year, net		$	5,853	$	16,000

Deferred income tax assets and liabilities are presented in the statement of financial position as follows:


	December 31, 2023		January 1, 2023


Deferred income tax assets	$	23,971	$	16,000
Deferred income tax liabilities	18,118		—
Deferred income taxes	$	5,853	$	16,000

19. INCOME TAXES (continued):