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Note 16 - Income Tax | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
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. Differences result from the following items:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Income tax expense using combined statutory rate of 26.5% (2012 - 26.5%, 2011 - 28.3%) |  | $ | 18,622 |  |  | $ | 16,754 |  |  | $ | 9,351 |
Permanent differences |  |  | 4,125 |  |  |  | 3,327 |  |  |  | 4,434 |
Tax effect of flow through entities |  |  | (2,156 | ) |  |  | (3,663 | ) |  |  | (3,462 | )
Goodwill or other investment impairment charge |  |  | - |  |  |  | 676 |  |  |  | 874 |
Impact of changes in foreign exchange rates |  |  | (518 | ) |  |  | 1,546 |  |  |  | (679 | )
Adjustments to tax liabilities for prior periods |  |  | 925 |  |  |  | 721 |  |  |  | 762 |
Effects of changes in enacted tax rates |  |  | 250 |  |  |  | (14 | ) |  |  | 52 |
Changes in liability for unrecognized tax benefits |  |  | 181 |  |  |  | 352 |  |  |  | (342 | )
Stock-based compensation |  |  | 2,791 |  |  |  | 128 |  |  |  | (386 | )
Foreign, state and provincial tax rate differential |  |  | (4,285 | ) |  |  | (946 | ) |  |  | (6,728 | )
Tax on preferred shares |  |  | 880 |  |  |  | - |  |  |  | - |
Other taxes |  |  | 1,906 |  |  |  | 93 |  |  |  | 2,046 |
Change in valuation allowances |  |  | (97 | ) |  |  | 2,033 |  |  |  | (49,745 | )
Provision for (recovery of) income taxes as reported |  | $ | 22,624 |  |  | $ | 21,007 |  |  | $ | (43,823 | )
Earnings before income tax by jurisdiction comprise the following:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Canada |  | $ | 1,977 |  |  | $ | 22,438 |  |  | $ | 33,331 |
United States |  |  | 4,613 |  |  |  | 9,811 |  |  |  | (20,662 | )
Australia |  |  | 33,061 |  |  |  | 25,800 |  |  |  | 21,791 |
Foreign |  |  | 30,613 |  |  |  | 5,175 |  |  |  | (1,358 | )
Total |  | $ | 70,264 |  |  | $ | 63,224 |  |  | $ | 33,102 |
Income tax expense (recovery) comprises the following:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current |  |  |  |  |  |  |  |  |
Canada |  | $ | 11,137 |  |  | $ | 5,771 |  |  | $ | 4,630 |
United States |  |  | 3,008 |  |  |  | 18,139 |  |  |  | 8,839 |
Australia |  |  | 11,088 |  |  |  | 8,526 |  |  |  | 7,206 |
Foreign |  |  | 11,860 |  |  |  | 4,729 |  |  |  | 3,708 |
|  |  | 37,093 |  |  |  | 37,165 |  |  |  | 24,383 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Canada |  |  | (7,627 | ) |  |  | 364 |  |  |  | (275 | )
United States |  |  | (2,435 | ) |  |  | (14,500 | ) |  |  | (67,279 | )
Australia |  |  | (1,079 | ) |  |  | (743 | ) |  |  | (729 | )
Foreign |  |  | (3,328 | ) |  |  | (1,279 | ) |  |  | 77 |
|  |  | (14,469 | ) |  |  | (16,158 | ) |  |  | (68,206 | )
Total |  | $ | 22,624 |  |  | $ | 21,007 |  |  | $ | (43,823 | )
The significant components of deferred income tax are as follows:
|  | 2013 |  |  | 2012 |
Deferred income tax assets |  |  |  |  |  |
Loss carry-forwards |  | $ | 91,957 |  |  | $ | 88,318 |
Expenses not currently deductible |  |  | 23,467 |  |  |  | 17,255 |
Stock-based compensation |  |  | 3,956 |  |  |  | 3,317 |
Basis differences of partnerships and other entities |  |  | 14,173 |  |  |  | 15,685 |
Allowance for doubtful accounts |  |  | 4,580 |  |  |  | 3,324 |
Inventory and other reserves |  |  | 2,554 |  |  |  | 1,611 |
|  |  | 140,687 |  |  |  | 129,510 |
Less: valuation allowance |  |  | (14,120 | ) |  |  | (11,911 | )
|  |  | 126,567 |  |  |  | 117,599 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 31,165 |  |  |  | 33,751 |
Unrealized foreign exchange gains |  |  | - |  |  |  | 932 |
Prepaid and other expenses deducted for tax purposes |  |  | 1,427 |  |  |  | 875 |
|  |  | 32,592 |  |  |  | 35,558 |
Net deferred income tax asset |  | $ | 93,975 |  |  | $ | 82,041 |
From 2008 to 2011, the Company recognized valuation allowances with respect to deferred income tax assets in its CRE 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. As a result, a valuation allowance in the amount of $48,351 related to the United States CRE operations was reversed as of December 31, 2011. 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 |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Canada |  | $ | 72,526 |  |  | $ | 53,866 |  |  | $ | 2,438 |  |  | $ | 4,228 |  |  | $ | 70,088 |  |  | $ | 49,638 |
United States |  |  | 164,414 |  |  |  | 172,155 |  |  |  | 4,099 |  |  |  | 4,098 |  |  |  | 160,315 |  |  |  | 168,057 |
Australia |  |  | 304 |  |  |  | 889 |  |  |  | - |  |  |  | - |  |  |  | 304 |  |  |  | 889 |
Foreign |  |  | 46,901 |  |  |  | 43,578 |  |  |  | 41,412 |  |  |  | 40,413 |  |  |  | 5,489 |  |  |  | 3,165 |
The Company has gross capital loss carry-forwards as follows:
|  | Loss carry forward |  |  | Gross losses not recognized |  |  | Net |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Canada |  | $ | 939 |  |  | $ | 1,224 |  |  | $ | 939 |  |  | $ | 1,224 |  |  | $ | - |  |  | $ | - |
United States |  |  | 4,197 |  |  |  | 1,068 |  |  |  | 4,197 |  |  |  | 1,068 |  |  |  | - |  |  |  | - |
Australia |  |  | 8,123 |  |  |  | 9,455 |  |  |  | 8,123 |  |  |  | 9,455 |  |  |  | - |  |  |  | - |
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 14 to 20 years. Net operating loss carry-forward balances attributable to Australia are carried forward indefinitely subject to certain continuity of ownership conditions. Cumulative unremitted earnings of US and foreign subsidiaries approximated $186,121 as at December 31, 2013 (2012 - $149,249). 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, 2011 |  | $ | 7,602 |
Increases based on tax positions related to 2012 |  |  | 1,093 |
Reduction for lapses in applicable statutes of limitations |  |  | (781) |
Balance, December 31, 2012 |  |  | 7,914 |
Increases based on tax positions related to 2013 |  |  | 384 |
Increases for tax positions of prior periods |  |  | 562 |
Reduction for lapses in applicable statutes of limitations |  |  | (840) |
Balance, December 31, 2013 |  | $ | 8,020 |
Of the $8,020 (2012 - $7,914) in gross unrecognized tax benefits, $8,226, (2012 - $7,914) would affect the Company’s effective tax rate if recognized. For the year ended December 31, 2013, an expense of $29 in interest and penalties related to provisions for income tax was recorded in income tax expense (2012 - recovery of $38; 2011 - recovery of $238). As at December 31, 2013, the Company had accrued $151 (2012 - $122) for potential income tax related interest and penalties. Within the next twelve months, the Company believes it is reasonably possible that $1,500 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 Canada Revenue Agency commenced an examination of the Company’s Canadian income tax return for the years 2010 and 2011 that is anticipated to be completed by the end of 2014. There have not been any proposed adjustments. 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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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 + Details
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