XML 44 R28.htm IDEA: XBRL DOCUMENT
v3.19.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
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, 2018 $ |  | December 31, 2017 $
Deferred tax assets: |  |  |
Vessels and equipment | 5,868 |  |  | 5,377 |
Tax losses carried forward and disallowed finance costs (1) | 155,910 |  |  | 193,501 |
Other | 10,545 |  |  | 29,355 |
Total deferred tax assets | 172,323 |  |  | 228,233 |
Deferred tax liabilities: |  |  |
Vessels and equipment | 18,037 |  |  | 9,053 |
Provisions | 5,588 |  |  | 5,153 |
Other | 2,060 |  |  | 8,417 |
Total deferred tax liabilities | 25,685 |  |  | 22,623 |
Net deferred tax assets | 146,638 |  |  | 205,610 |
Valuation allowance | (144,560 | ) |  | (202,513 | )
Net deferred tax assets | 2,078 |  |  | 3,097 |
(1) | Substantially all of the Company’s net operating loss carryforwards of $826.3 million relates primarily to its U.K., Spanish, Norwegian and Luxembourg subsidiaries and, to a lesser extent, to its Australian ship-owning subsidiaries. The Company had disallowed finance costs in Spain and Norway of approximately $23.6 million and $15.3 million, respectively, at December 31, 2018, which are available for 18 years and 10 years, respectively, from the year the costs are incurred for offset against future taxable income in Spain and Norway, respectively. The Company's tax losses in Luxembourg are available for offset against taxable future income in Luxembourg, either indefinitely for losses arising prior to 2017, or for 17 years for losses arising subsequent to 2016.
Deferred tax balances are presented in other non-current assets in the accompanying consolidated balance sheets. The components of the provision for income tax expense are as follows:
| Year Ended December 31, 2018 $ |  | Year Ended December 31, 2017 $ |  | Year Ended December 31, 2016 $
Current | (17,458 | ) |  | (11,997 | ) |  | (14,424 | )
Deferred | (2,266 | ) |  | (235 | ) |  | (10,044 | )
Income tax expense | (19,724 | ) |  | (12,232 | ) |  | (24,468 | )
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 December 31, 2018 $ |  | Year Ended December 31, 2017 $ |  | Year Ended December 31, 2016 $
Net (loss) income before taxes | (38,023 | ) |  | (516,840 | ) |  | 111,132 |
Net (loss) income not subject to taxes | (104,465 | ) |  | (297,688 | ) |  | 57,862 |
Net income (loss) subject to taxes | 66,442 |  |  | (219,152 | ) |  | 53,270 |
At applicable statutory tax rates | 15,177 |  |  | (51,471 | ) |  | 5,996 |
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions | 4,639 |  |  | 64,164 |  |  | 18,198 |
Other | (92 | ) |  | (461 | ) |  | 274 |
Tax expense related to the year | 19,724 |  |  | 12,232 |  |  | 24,468 |
The following is a roll-forward of the Company’s unrecognized tax benefits, recorded in other long-term liabilities, from January 1, 2016 to December 31, 2018:
| Year Ended December 31, 2018 $ |  | Year Ended December 31, 2017 $ |  | Year Ended December 31, 2016 $
Balance of unrecognized tax benefits as at January 1 | 31,061 |  |  | 19,492 |  |  | 18,390 |
Increases for positions related to the current year | 9,297 |  |  | 2,631 |  |  | 6,422 |
Changes for positions taken in prior years | 981 |  |  | 3,475 |  |  | (3,729 | )
Decreases related to statute of limitations | (783 | ) |  | (1,562 | ) |  | (1,591 | )
Increase due to acquisition of TIL | — |  |  | 8,528 |  |  | — |
Decrease due to deconsolidation of Teekay Offshore | — |  |  | (1,503 | ) |  | — |
Balance of unrecognized tax benefits as at December 31 | 40,556 |  |  | 31,061 |  |  | 19,492 |
The majority of the net increase for positions relates to the potential tax on freight income on an increased number of voyages for the year ended December 31, 2018. 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 2008 through 2018 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 an increase of $9.2 million in 2018, and an increase of $6.4 million in 2017 and an increase of $1.0 million in 2016.

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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration