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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Summary of Components of Income Tax Expense

The components of income taxes were as follows:

Years ended December 31,

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current income taxes

 

$

72

 

 

$

39

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

(23

)

 

 

(8

)

 

 

 

 

 

 

 

Income taxes

 

$

49

 

 

$

31

 
Summary of Reconciliation of Income Taxes

The provision for income taxes differs from that which would be expected by applying Canadian statutory rates. A reconciliation of the difference is as follows:

Years ended December 31,

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

$

81

 

 

$

(52

)

Canadian statutory rate

 

 

23.4

%

 

 

23.5

%

Expected income tax provision

 

$

19

 

 

$

(12

)

Add (deduct):

 

 

 

 

 

 

Earnings taxed in foreign jurisdictions

 

 

22

 

 

 

2

 

Change in unrecognized deferred tax asset

 

 

15

 

 

 

16

 

Amounts not deductible (taxable) for tax purposes

 

 

7

 

 

 

(7

)

Impact of OCED Pillar Two current taxes

 

 

3

 

 

 

-

 

Exchange rate effects on tax basis

 

 

(16

)

 

 

17

 

Impairment of goodwill

 

 

-

 

 

 

15

 

Other

 

 

(1

)

 

 

-

 

Income taxes

 

$

49

 

 

$

31

 
Summary of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities arise from the following:

 

Accounting provisions and accruals

 

 

Tax losses

 

 

Long-term assets

 

 

Exchange rate effects on tax bases

 

 

Total1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

$

27

 

 

$

27

 

 

$

(69

)

 

$

(29

)

 

$

(44

)

Charged to net earnings

 

 

(14

)

 

 

3

 

 

 

15

 

 

 

19

 

 

 

23

 

Exchange differences

 

 

2

 

 

 

-

 

 

 

(2

)

 

 

(3

)

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

$

15

 

 

$

30

 

 

$

(56

)

 

$

(13

)

 

$

(24

)

1 Net deferred tax liabilities at December 31, 2024, of $24 million consist of liabilities of $48 million net of assets of $24 million.

 

Accounting provisions and accruals

 

 

Tax losses

 

 

Long-term assets

 

 

Exchange rate effects on tax bases

 

 

Total1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2023

 

$

3

 

 

$

42

 

 

$

(82

)

 

$

(12

)

 

$

(49

)

Charged to net loss

 

 

23

 

 

 

(15

)

 

 

16

 

 

 

(16

)

 

 

8

 

Exchange differences

 

 

1

 

 

 

-

 

 

 

(3

)

 

 

(1

)

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

$

27

 

 

$

27

 

 

$

(69

)

 

$

(29

)

 

$

(44

)

1 Net deferred tax liabilities at December 31, 2023, of $44 million consist of liabilities of $65 million net of assets of $21 million (January 1, 2023 – net deferred tax liabilities of $49 million consist of liabilities of $65 million net of assets of $16 million).
Summary of Deductible Temporary Differences of Income Tax Expenses

The deductible temporary differences consist of:

Years ended December 31,

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canadian:

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax losses

 

$

229

 

 

$

254

 

 

 

 

 

 

 

 

Restricted interest

 

 

39

 

 

 

-

 

 

 

 

 

 

 

 

Long-term assets

 

 

(2

)

 

 

1

 

 

 

 

 

 

 

 

Accounting provisions and other accruals

 

 

35

 

 

 

15

 

 

 

 

 

 

 

 

Foreign:

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax losses

 

 

646

 

 

 

688

 

 

 

 

 

 

 

 

Restricted interest

 

 

13

 

 

 

-

 

 

 

 

 

 

 

 

Long-term assets

 

 

(5

)

 

 

(41

)

 

 

 

 

 

 

 

Accounting provisions and other accruals

 

 

-

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total unrecognized deferred tax assets

 

$

955

 

 

$

915