Rogers 2009 Annual Report Download - page 95

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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 99
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The income tax effects of temporary differences that give rise to
signiļ¬cant portions of future income tax assets and liabilities are
as follows:
In assessing future income tax assets, management considers
whether it is more likely than not that some portion or all of the
future income tax assets will be realized. The ultimate realization
of future income tax assets is dependent upon the generation of
future taxable income during the years in which the temporary
differences are deductible. Management considers the scheduled
reversals of future income tax liabilities, the character of the future
income tax assets and available tax planning strategies in making
this assessment.
To the extent that management believes that the future income tax
assets do not meet the more likely than not recognition criterion, a
valuation allowance is recorded against the future income tax assets.
The valuation allowance at December 31, 2009, includes $44 million
of foreign future income tax assets and $8 million relating to capital
loss carryforwards.
Income tax expense varies from the amounts that would be
computed by applying the statutory income tax rate to income
before income taxes for the following reasons:
7. INCOME TAXES:
2009 2008
(Restated -
note 2(p)(i))
Future income tax assets:
Non-capital income tax loss carryforwards $ 148 $ 377
Capital loss carryforwards 31 37
Deductions relating to long-term debt and other transactions denominated in foreign currencies 42 39
Investments 813
Liability for stock-based compensation 47 81
Ontario harmonization credit 64 65
Other deductible differences 144 154
Total future income tax assets 484 766
Less valuation allowance 52 144
432 622
Future income tax liabilities:
PP&E and inventory (246) (126)
Goodwill and intangible assets (325) (367)
Other taxable differences (38) (22)
Total future income tax liabilities (609) (515)
Net future income tax asset (liability) (177) 107
Less current portion 220 451
Future income tax liabilities $ (397) $ (344)
2009 2008
Statutory income tax rate 32.3% 32.7%
Computed income tax expense $ 640 $ 466
Increase (decrease) in income taxes resulting from:
Change in valuation allowance (64) 19
Effect of tax rate changes (58) (33)
Ontario harmonization credit ā€“(65)
Impairment losses on goodwill and intangible assets not deductible for tax ā€“51
Other items (16) (14)
Income tax expense $ 502 $ 424