XML 78 R29.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes |
21. | Income Taxes
Teekay and a majority of its subsidiaries are not subject to income tax in the jurisdictions in which they are incorporated because they do not conduct business or operate in those jurisdictions. However, among others, the Company’s U.K. and Norwegian subsidiaries are subject to income taxes. The significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | December 31, |  |  | December 31, |
|  | 2015 |  |  | 2014 |
|  | $ |  |  | $ |
Deferred tax assets: |  |  |  |  |  |  |  |
Vessels and equipment |  |  | 43,289 |  |  |  | 43,268 |
Tax losses carried forward(1) |  |  | 310,019 |  |  |  | 360,547 |
Other |  |  | 22,141 |  |  |  | 28,973 |
Total deferred tax assets |  |  | 375,449 |  |  |  | 432,788 |
Deferred tax liabilities: |  |  |  |
Vessels and equipment |  |  | 10,577 |  |  |  | 12,514 |
Long-term debt |  |  | 3,218 |  |  |  | 2,295 |
Other |  |  | 15,090 |  |  |  | 19,954 |
Total deferred tax liabilities |  |  | 28,885 |  |  |  | 34,763 |
Net deferred tax assets |  |  | 346,564 |  |  |  | 398,025 |
Valuation allowance |  |  | (310,862 | ) |  |  | (385,431 | )
Net deferred tax assets |  |  | 35,702 |  |  |  | 12,594 |
Net deferred tax assets are presented in other non-current assets and other long term liabilities in the accompanying consolidated balance sheets.
(1) | Substantially all of the Company’s net operating loss carryforwards of $1.28 billion relate primarily to its Norwegian, U.K., and Spanish subsidiaries and, to a lesser extent, to its Australian ship-owning 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 $37.2 million in disallowed finance costs that relate to its Spanish subsidiaries and are available to offset future taxable income in Spain and can also be carried forward indefinitely.
The components of the provision for income taxes are as follows:
|  | Year Ended |  |  | Year Ended |  |  | Year Ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | $ |  |  | $ |  |  | $ |
Current |  |  | (10,440 | ) |  |  | (6,460 | ) |  |  | 2,742 |
Deferred |  |  | 27,207 |  |  |  | (3,713 | ) |  |  | (5,614 | )
Income tax recovery (expense) |  |  | 16,767 |  |  |  | (10,173 | ) |  |  | (2,872 | )
The Company operates in countries that have differing tax laws and rates. Consequently, a consolidated weighted average tax rate will vary from year to year according to the source of earnings or losses by country and the change in applicable tax rates. 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, 2015 |  |  | December 31, 2014 |  |  | December 31, 2013 |
|  | $ |  |  | $ |  |  | $ |
Net income before taxes |  |  | 388,693 |  |  |  | 134,175 |  |  |  | 38,352 |
Net income (loss) not subject to taxes |  |  | 252,604 |  |  |  | (80,454 | ) |  |  | (267,665 | )
Net income subject to taxes |  |  | 136,089 |  |  |  | 214,629 |  |  |  | 306,017 |
At applicable statutory tax rates |  |  | 32,750 |  |  |  | 39,382 |  |  |  | 12,719 |
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions |  |  | (49,789 | ) |  |  | (28,027 | ) |  |  | (8,173 | )
Other |  |  | 272 |  |  |  | (1,182 | ) |  |  | (1,674 | )
Tax (recovery) expense related to the current year |  |  | (16,767 | ) |  |  | 10,173 |  |  |  | 2,872 |
The following is a roll-forward of the Company’s unrecognized tax benefits, recorded in other long-term liabilities, from January 1, 2013 to December 31, 2015:
|  | Year ended |  |  | Year ended |  |  | Year ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | $ |  |  | $ |  |  | $ |
Balance of unrecognized tax benefits as at January 1 |  |  | 20,335 |  |  |  | 20,304 |  |  |  | 29,364 |
Increases for positions related to the current year |  |  | 4,578 |  |  |  | 3,643 |  |  |  | 1,141 |
Changes for positions taken in prior years |  |  | (2,965 | ) |  |  | 1,015 |  |  |  | (1,284 | )
Decreases related to statute of limitations |  |  | (3,558 | ) |  |  | (4,627 | ) |  |  | (8,917 | )
Balance of unrecognized tax benefits as at December 31 |  |  | 18,390 |  |  |  | 20,335 |  |  |  | 20,304 |
The majority of the net decrease for positions for the year ended December 31, 2015 relates to a potential tax on freight income becoming statute barred. The Company does not presently anticipate such uncertain tax positions will significantly increase or decrease in the next 12 months; however, actual developments could differ from those currently expected. The tax years 2010 through 2015 remain open to examination by some of the major jurisdictions in which the Company is subject to tax. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The interest and penalties on unrecognized tax benefits are included in the roll-forward schedule above and are approximately a reduction of $0.3 million in 2015, net of statute barred liabilities, and $1.6 million in 2014 and $7.2 million in 2013.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 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 2: 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 3: 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 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 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration