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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:

		December 31,				December 31,
		2013				2012
		$				$
Deferred tax assets:
Vessels and equipment			73,750				58,825
Tax losses carried forward(1)			427,656				427,443
Other			32,012				64,194
Total deferred tax assets			533,418				550,462
Deferred tax liabilities:
Vessels and equipment			19,555				26,503
Long-term debt			22,008				33,764
Other			30,519				40,117
Total deferred tax liabilities			72,082				100,384
Net deferred tax assets			461,336				450,078
Valuation allowance			(442,504	)			(421,343	)
Net deferred tax assets			18,832				28,735

(1) Substantially all of the Company’s net operating loss carryforwards of $1.74 billion relate to its Australian ship-owning subsidiaries and its Norwegian subsidiaries. These net operating loss carryforwards are available to offset future taxable income in the respective jurisdictions, and can be carried forward indefinitely. The Company also has $20.8 million in disallowed finance costs that relate to its Spanish subsidiaries and are available to offset future finance costs and can be carried forward for 18 years.

Components of Provision for Income Taxes

The components of the provision for income taxes are as follows:

		Year Ended				Year Ended				Year Ended
		December 31,				December 31,				December 31,
		2013				2012				2011
		$				$				$
Current			2,742				9,167				(6,768	)
Deferred			(5,614	)			5,239				2,478
Income tax (expense) recovery			(2,872	)			14,406				(4,290	)

Reconciliations of Income Tax Rates and Actual Tax Charge

Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows:

		Year Ended				Year Ended				Year Ended
		December 31, 2013				December 31, 2012				December 31, 2011
		$				$				$
Net income (loss) before taxes			38,352				(325,522	)			(372,131	)
Net loss not subject to taxes			(267,665	)			(129,307	)			(341,473	)
Net income (loss) subject to taxes			306,017				(196,215	)			(30,658	)
At applicable statutory tax rates			12,719				(15,808	)			(8,987	)
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions			(8,173	)			(2,817	)			7,307
Other			(1,675	)			4,218				5,970
Income tax expense (recovery) related to the current year			2,872				(14,406	)			4,290

Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities

The following is a roll-forward of the Company’s unrecognized tax benefits, recorded in other long-term liabilities, from January 1, 2011 to December 31, 2013:

		Year ended				Year ended				Year ended
		December 31,				December 31,				December 31,
		2013				2012				2011
		$				$				$
Balance of unrecognized tax benefits - beginning of the year			29,364				39,804				45,302
Increases for positions related to the current year			1,141				4,560				3,308
Changes for positions taken in prior years			(1,284	)			(5,085	)			83
Decreases related to statute of limitations			(8,917	)			(9,915	)			(8,889	)
Balance of unrecognized tax benefits - end of the year			20,304				29,364				39,804

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

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-Section 50

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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