Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rates

For the three months ended September 30, 2022, the Company recorded income tax expense of $2.3 million (2021 — $4.4 million). For the three months ended September 30, 2022, the Company's effective tax rate differs from the combined Canadian federal and provincial statutory income tax rate due to the following factors:


	Three Months Ended								Three Months Ended
	September 30, 2022								September 30, 2021
(In thousands of U.S. Dollars, except rates)	Amount				Rate				Amount				Rate
Income tax benefit at combined statutory rates	$	1,434			26.5%				$	514			26.5%
Adjustments resulting from:
Change of valuation allowance		(4,264	)		(78.8%)					(4,270	)		(219.9%)
Shortfall tax benefits related to share-based compensation		(2	)			—				(4	)		(0.2%)
Changes to tax reserves		(176	)		(3.3%)					(215	)		(11.1%)
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments		(102	)		(1.9%)					454				23.4	%
Other non-deductible/non-taxable items		762				14.1	%			(881	)		(45.4%)
Income tax expense	$	(2,348	)		(43.4%)				$	(4,402	)		(226.7%)

For the nine months ended September 30, 2022, the Company recorded income tax expense of $8.1 million (2021 — $9.4 million). For the nine months ended September 30, 2022, the Company's effective tax rate differs from the combined Canadian federal and provincial statutory income tax rate due to the following factors:


	Nine Months Ended								Nine Months Ended
	September 30, 2022								September 30, 2021
(In thousands of U.S. Dollars, except rates)	Amount				Rate				Amount				Rate
Income tax benefit at combined statutory rates	$	4,205			26.5%				$	3,588			26.5%
Adjustments resulting from:
Change of valuation allowance		(14,699	)		(92.6%)					(14,248	)		(105.2%)
(Shortfall) excess tax benefits related to share-based compensation		(154	)		(1.0%)					709			5.2%
Changes to tax reserves		(587	)		(3.7%)					1,234			9.1%
Gain on sale of Maoyan investment not taxable		—				—				1,367			10.1%
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		—				—				(547	)		(4.0%)
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments		2,395			15.1%					(246	)		(1.8%)
Other non-deductible/non-taxable items		749			4.7%					(1,273	)		(9.4%)
Income tax expense	$	(8,091	)		(51.0%)				$	(9,416	)		(69.5%)

For the nine months ended September 30, 2022, the Company recorded an additional $14.7 million (2021 — $14.2 million) valuation allowance against deferred tax assets in jurisdictions where management cannot reliably forecast that sufficient future tax liabilities will arise in specific jurisdictions, which includes the impact of the COVID-19 pandemic. Accordingly, the tax benefit associated with the current period losses in these jurisdictions is not ultimately reflected in the Company's Condensed Consolidated Statements of Operations.

Income Tax Expense in Other Comprehensive Loss

For the three and nine months ended September 30, 2022 and 2021, the Income Tax Expense related to the components of Other Comprehensive Loss is as follows:


	Three Months Ended									Nine Months Ended
		September 30,								September 30,
(In thousands of U.S. Dollars)		2022				2021				2022					2021
Unrealized change in cash flow hedging instruments		$	411			$	199				$	488				$	42
Realized change in cash flow hedging instruments			(19	)			82					(44	)				358
Reclassification of unrealized change in ineffective cash flow hedging instruments			—				7					—					83
Defined benefit and postretirement benefit plans			(12	)			(12	)				(36	)				(37	)
		$	380			$	276				$	408				$	446