Income Taxes	6 Months Ended
Jun. 30, 2013
Income Taxes
Income Taxes	15. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. For the quarter ended June 30, 2013, the Company recorded an income tax benefit of $45.0 million related primarily to the impairment of long lived assets of the Velardeña Operations, resulting in an elimination of the net deferred tax liability in existence at that time. For the quarter ended June 30, 2012, the Company recorded a $1.2 million income tax benefit related primarily to Mexico net operating losses. Based on the limited history that the Company has with its Velardeña operations, an estimated effective tax rate is not used to report the year-to-date results. In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. As a result of the impairment of long lived assets of our Velardeña Operations as of June 30, 2013, the net deferred tax liabilities presented in previous periods no longer exist, thus necessitating the recognition of an income tax benefit described above. All net deferred tax assets of the Company are subject to a full valuation allowance as of June 30, 2013, as there is no assurance of utilization of these assets in the future. Thus, there are no deferred tax liabilities or deferred tax assets reported on the Consolidated Balance Sheet as of June 30, 2013. The net deferred tax liabilities of $47.1 million as of December 31, 2012 consist primarily of $63.7 million deferred tax liabilities, related to the basis differences of the long lived assets of our Velardeña Operations, and $16.3 million deferred tax assets related to Mexico net operating losses. The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. The Company had unrecognized tax benefits of $2.2 million and $2.5 million as of June 30, 2013 and December 31, 2012, respectively.

Income Taxes

6 Months Ended

Jun. 30, 2013

15. Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. For the quarter ended June 30, 2013, the Company recorded an income tax benefit of $45.0 million related primarily to the impairment of long lived assets of the Velardeña Operations, resulting in an elimination of the net deferred tax liability in existence at that time. For the quarter ended June 30, 2012, the Company recorded a $1.2 million income tax benefit related primarily to Mexico net operating losses. Based on the limited history that the Company has with its Velardeña operations, an estimated effective tax rate is not used to report the year-to-date results.

In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. As a result of the impairment of long lived assets of our Velardeña Operations as of June 30, 2013, the net deferred tax liabilities presented in previous periods no longer exist, thus necessitating the recognition of an income tax benefit described above. All net deferred tax assets of the Company are subject to a full valuation allowance as of June 30, 2013, as there is no assurance of utilization of these assets in the future. Thus, there are no deferred tax liabilities or deferred tax assets reported on the Consolidated Balance Sheet as of June 30, 2013. The net deferred tax liabilities of $47.1 million as of December 31, 2012 consist primarily of $63.7 million deferred tax liabilities, related to the basis differences of the long lived assets of our Velardeña Operations, and $16.3 million deferred tax assets related to Mexico net operating losses.

The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. The Company had unrecognized tax benefits of $2.2 million and $2.5 million as of June 30, 2013 and December 31, 2012, respectively.