2016 Annual Report For Web 7.3MB

MMS
2016
Founded in 1978, Mitchell
Mill Systems manufactures
equipment for use in feed,
grain, pet food, fish food,
fertilizer, seed cleaning
and industrial facilities.
Additionally, Mitchell
fabricates its own line of
material handling
equipment and specialty
systems using light and heavy
gauge, mild and stainless
steel materials.
Change in fixed-income security yields
A decrease in corporate fixed-income security yields will increase plan
liabilities, although this will be partially offset by an increase in the
value of the plan’s fixed-income security holdings.
Life expectancy
The plan’s obligation is to provide benefits for the life of the member,
so increases in life expectancy will result in an increase in the plan’s
liability.
28. INCOME TAXES
The major components of income tax expense for the years ended
December 31, 2016 and 2015 are as follows:
CONSOLIDATED STATEMENTS OF INCOME
CURRENT TAX EXPENSE
2016
$
2015
$
Current income tax charge 11,122 4,722
DEFERRED TAX RECOVERY
Origination and reversal of temporary differences (260) (1,613)
INCOME TAX EXPENSE REPORTED IN THE
CONSOLIDATED STATEMENTS OF INCOME 10,862 3,109
The reconciliation between tax expense and the product of accounting
profit multiplied by the Company’s domestic tax rate for the years ended
December 31, 2016 and 2015 is as follows:
2016
$
2015
$
ACCOUNTING PROFIT (LOSS) BEFORE INCOME TAX 30,168 (22,120)
At the Company’s statutory income tax rate of 27%
[2015 – 26.80%]
8,145 (5,928)
Tax rate changes (481) (9)
Additional deductions allowed in a foreign jurisdiction (600) (259)
Tax losses not recognized as a deferred tax asset 1,413 1,984
Withholding tax on dividend — 1,652
Foreign rate differential 1,517 897
Non-deductible SAIP expense 536 608
State income tax, net of federal tax benefit 496 251
Unrealized foreign exchange loss (gain) (776) 3,519
Impairment of goodwill 18 —
Permanent differences and others 594 394
AT THE EFFECTIVE INCOME TAX RATE 36.09%
[2015 – (14.05%)] 10,862 3,109
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
2016
$
2015
$
DEFERRED TAX RELATED TO ITEMS CHARGED OR
CREDITED DIRECTLY TO OTHER COMPREHENSIVE
INCOME DURING THE PERIOD
Unrealized gain (loss) on derivatives 5,992 (4,047)
Defined benefit plan reserve 96 59
Exchange differences on translation of foreign operations (268) 1,895
INCOME TAX CREDITED DIRECTLY TO OTHER
COMPREHENSIVE INCOME 5,820 (2,093)
05 CONSOLIDATED FINANCIAL STATEMENTS
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 136