Income and Mining Taxes

3 Months Ended

Mar. 31, 2012

Income and Mining Taxes [Abstract]

INCOME AND MINING TAXES

NOTE 9    INCOME AND MINING TAXES

During the first quarter of 2012, the Company recorded estimated income and mining tax expense of $343 resulting in an effective tax rate of 33%. Estimated income and miningtax expense during the first quarter of 2011 was $305 for an effective tax rate of 31%. The increase in the effective tax rate from2011 to 2012 is a result of valuation allowances recorded on our Canadian deferred tax assets generated in the quarter. Aside from the above mentioned valuation allowance, the effective tax rates in the first quarter of 2012 and 2011 are different from the United States statutory rate of 35% primarily due to the U.S. percentage depletion deduction.

The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company's business conducted within the country involved.

At March 31, 2012, the Company's total unrecognized tax benefit was $242 for uncertain income tax positions taken or expected to be taken on income tax returns. Of this, $45 represents the amount of unrecognized tax benefits that, if recognized, would affect the Company's effective income tax rate.

As a result of the statute of limitations that expire in the next 12 months in various jurisdictions, and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $25 to $30 in the next 12 months.

The Company's income and mining tax expense differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

		Three Months Ended March 31,
		2012				2011
Income before income and mining tax and other items				$	1,036			$	973
Tax on income at 35% statutory rate		35	%	$	363	35	%	$	341
Reconciling items:
	Percentage depletion	(7)			(74)	(6)			(55)
	Change in valuation allowance on deferred tax assets	3			33	-			-
	Other	2			21	2			19
Income and mining tax expense		33	%	$	343	31	%	$	305