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Note 16 - IncomeTax | 12 Months Ended
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Dec. 31, 2011
Income Tax Disclosure [Text Block] |
16. | 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. These differences result from the following items:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Income tax expense using combined statutory rate of 28% (2010 - 31%, 2009 - 33%) |  | $ | 21,158 |  |  | $ | 23,909 |  |  | $ | 10,489 |
Permanent differences |  |  | 4,554 |  |  |  | 2,933 |  |  |  | 1,942 |
Tax effect of flow through entities |  |  | (3,462 | ) |  |  | (2,768 | ) |  |  | (796 | )
Goodwill or other investment impairment charge |  |  | 874 |  |  |  | - |  |  |  | 9,643 |
Impact of changes in foreign exchange rates |  |  | (679 | ) |  |  | (1,426 | ) |  |  | 4,718 |
Adjustments to tax liabilities for prior periods |  |  | 940 |  |  |  | 1,499 |  |  |  | (2,600 | )
Effects of changes in enacted tax rates |  |  | 52 |  |  |  | 2,049 |  |  |  | (854 | )
Changes in liability for unrecognized tax benefits |  |  | (342 | ) |  |  | (5,881 | ) |  |  | 1,418 |
Stock-based compensation |  |  | (386 | ) |  |  | (39 | ) |  |  | (37 | )
Foreign state and provincial tax rate differential |  |  | (1,763 | ) |  |  | (3,829 | ) |  |  | (2,795 | )
Withholding tax |  |  | 486 |  |  |  | 396 |  |  |  | 517 |
Other taxes |  |  | 901 |  |  |  | 678 |  |  |  | 453 |
Loss (earnings) from equity method investments |  |  | 605 |  |  |  | 1,348 |  |  |  | (321 | )
Non-taxable income |  |  | - |  |  |  | (1,398 | ) |  |  | - |
Change in valuation allowances |  |  | (49,745 | ) |  |  | 11,757 |  |  |  | 17,289 |
Provision for (recovery of) income taxes as reported |  | $ | (26,807 | ) |  | $ | 29,228 |  |  | $ | 39,066 |
Earnings before income tax by jurisdiction comprise the following:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Canada |  | $ | 33,331 |  |  | $ | 22,446 |  |  | $ | 30,112 |
United States |  |  | 21,172 |  |  |  | 32,508 |  |  |  | 5,680 |
Australia |  |  | 21,791 |  |  |  | 21,698 |  |  |  | 11,443 |
Foreign |  |  | (1,358 | ) |  |  | 476 |  |  |  | (15,448 | )
Total |  | $ | 74,936 |  |  | $ | 77,128 |  |  | $ | 31,787 |
The provision for (recovery of) income tax comprises the following:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current |  |  |  |  |  |  |  |  |
Canada |  | $ | 4,630 |  |  | $ | 4,758 |  |  | $ | 2,244 |
United States |  |  | 21,625 |  |  |  | 24,667 |  |  |  | 32,247 |
Australia |  |  | 7,206 |  |  |  | 6,795 |  |  |  | 3,365 |
Foreign |  |  | 3,708 |  |  |  | 448 |  |  |  | 1,795 |
|  |  | 37,169 |  |  |  | 36,668 |  |  |  | 39,651 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | (275 | ) |  |  | (5,441 | ) |  |  | 878 |
United States |  |  | (63,049 | ) |  |  | 29 |  |  |  | (576 | )
Australia |  |  | (729 | ) |  |  | (1,418 | ) |  |  | 269 |
Foreign |  |  | 77 |  |  |  | (610 | ) |  |  | (1,156 | )
|  |  | (63,976 | ) |  |  | (7,440 | ) |  |  | (585 | )
Total |  | $ | (26,807 | ) |  | $ | 29,228 |  |  | $ | 39,066 |
The significant components of deferred income tax are as follows:
|  | 2011 |  |  | 2010 |
Deferred income tax assets |  |  |  |  |  |
Loss carry-forwards |  | $ | 76,422 |  |  | $ | 68,074 |
Expenses not currently deductible |  |  | 15,179 |  |  |  | 12,966 |
Stock-based compensation |  |  | 4,084 |  |  |  | 3,940 |
Basis differences of partnerships and other entities |  |  | 11,316 |  |  |  | 1,093 |
Allowance for doubtful accounts |  |  | 4,752 |  |  |  | 4,751 |
Inventory and other reserves |  |  | 853 |  |  |  | 615 |
|  |  | 112,606 |  |  |  | 91,439 |
Less: Valuation allowance |  |  | (8,139 | ) |  |  | (55,624 | )
|  |  | 104,467 |  |  |  | 35,815 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 37,880 |  |  |  | 33,293 |
Unrealized foreign exchange gains |  |  | 168 |  |  |  | 518 |
Prepaid and other expenses deducted for tax purposes |  |  | 995 |  |  |  | 189 |
Financing fees |  |  | 112 |  |  |  | 269 |
|  |  | 39,155 |  |  |  | 34,269 |
Net deferred income tax asset |  | $ | 65,312 |  |  | $ | 1,546 |
Since 2008, the Company has recognized valuation allowances with respect to deferred income tax assets in its Commercial Real Estate operations, primarily in the United States, due to a history of operating losses. During the fourth quarter of 2011, the Company completed a reorganization of certain operations in the United States to improve administrative efficiency and achieve other benefits. This reorganization was previously not considered prudent or feasible as the acquisitions and/or consents of significant non-controlling interests were required to complete the reorganization, which acquisitions and consents were not completed until the fourth quarter of 2011. The reorganization provided objective evidence of projected future taxable income and pro forma historical taxable income that outweighs the negative evidence of historical operating losses. In addition, the projection of future taxable income results in the utilization of net operating losses well before the 20-year loss carry-forward limitation. As a result, a valuation allowance in the amount of $48,351 related to the United States Commercial Real Estate operations was reversed as of December 31, 2011. As at December 31, 2011, the Company had gross operating loss carry-forward balances in the United States, primarily in the Commercial Real Estate segment, of approximately $143,875 (2010 - $112,115) prior to a valuation allowance of $4,092 (2010 - $110,342). Also in the United States, the Company also had gross capital loss carry-forward balances which amounted to $692 (2010 - $10,446) as at December 31, 2011 prior to a valuation allowance of $692 (2010 - $10,446). As at December 31, 2011, the Company had gross Canadian operating loss carry-forward balances of approximately $52,353 (2010 - $55,246) prior to a valuation allowance of $2,857 (2010 - $1,145). These amounts are available to reduce future federal and provincial income taxes. Net operating loss carry-forward balances attributable to the United States and Canada expire over the next 14 to 20 years. The Company had gross foreign operating loss carry-forward balances as at December 31, 2011 of approximately $29,442 (2010 - $27,901), prior to a valuation allowance of $26,784 (2010 - $26,641). Foreign gross capital loss carry-forward balances in Australia amounted to $9,389 (2010 - $9,634) as at December 31, 2011 prior to a valuation allowance of $9,389 (2010 - $9,634). Cumulative unremitted earnings of US and foreign subsidiaries approximated $158,308 as at December 31, 2011 (2010 - $146,947). A reconciliation of the beginning and ending amounts of the liability for unrecognized tax benefits is as follows:
Balance, December 31, 2009 |  | $ | 14,390 |
Increases based on tax positions related to the current period |  |  | 944 |
Reduction for lapses in applicable statutes of limitations |  |  | (7,614) |
Balance, December 31, 2010 |  |  | 7,720 |
Increases based on tax positions related to the current period |  |  | 1,903 |
Decreases for tax positions of prior periods |  |  | (659) |
Reduction for lapses in applicable statutes of limitations |  |  | (1,362) |
Balance, December 31, 2011 |  | $ | 7,602 |
Of the $7,602 (2010 - $7,720) in gross unrecognized tax benefits, $7,602, (2010 - $7,720) would affect the Company’s effective tax rate if recognized. For the year ended December 31, 2011, a recovery of $238 in interest and penalties related to provisions for income tax was recorded in income tax expense (2010 - recovery of $994; 2009 - expense of $125). As at December 31, 2011, the Company had accrued $160 (2010 - $398) for potential income tax related interest and penalties. Within the next twelve months, the Company believes it is reasonably possible that $438 of unrecognized tax benefits associated with uncertain tax positions may be reduced due to lapses in statutes of limitations. The Company’s significant tax jurisdictions include the United States, Canada and Australia. 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. Tax returns in Australia are generally open for four 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 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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=6907707&loc=d3e32559-109319 Reference 6: 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=6907707&loc=d3e32639-109319 Reference 7: 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=6907707&loc=d3e32718-109319 Reference 8: 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=6881521&loc=d3e23780-122690 + Details
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