Air Canada 2014 Annual Report Download - page 116

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116116 2014 Annual Report
The income tax expense relating to components of Other comprehensive income is as follows:
2014 2013
Net gain on remeasurements on employee benefit liabilities $ 65 $ 521
Recognition of previously unrecognized deferred income tax assets (62) (525)
Tax rate changes on deferred income taxes (3) 4
INCOME TAX EXPENSE IN OTHER COMPREHENSIVE INCOME $ - $ -
DEFERRED INCOME TAX
Certain intangible assets with nominal tax cost and a carrying value of $185 have indefinite lives and
accordingly, the associated deferred income tax liability of $49 (2013 – $49) is not expected to reverse until the
assets are disposed of, become impaired or amortizable. In addition, the Corporation has other deferred income
tax liabilities in the amount of $45, against which a deferred income tax asset of similar amount has been
recognized. The recognized net deferred income tax liability of $49 is included in Other long-term liabilities.
Deferred income tax assets are recognized to the extent that the realization of the related tax benefit is
probable. The Corporation has unrecognized tax loss carryforwards and temporary differences for which no
deferred income tax assets could be recognized. However, the future tax deductions underlying these deferred
income tax assets remain available for use in the future to reduce taxable income. The following are the
unrecognized tax loss carryforwards and the temporary differences for which no deferred income tax assets
could be recognized:
2014 2013
Non-capital losses carryforwards $ 946 $ 1,402
Net capital losses carryforwards 2 2
Other deductible temporary differences 5,345 5,290
TOTAL UNRECOGNIZED TEMPORARY DIFFERENCES $ 6,293 $ 6,694
The following are the Federal non-capital tax losses expiry dates:
TAX LOSSES
2026 $ 2
2027 3
2028 507
2029 411
2030 11
2031 6
2032 1
2033 1
2034 4
NON-CAPITAL LOSSES CARRYFORWARDS $ 946
Cash income taxes recovered in 2014 by the Corporation were $1 (2013 – $5 recovered).