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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income (loss) before income taxes were as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
United States	$	(242,562	)	$	(3,443	)	$	(38,372	)
Foreign	(566,117		)	122,927			246,617
Total	$	(808,679	)	$	119,484		$	208,245

For the years ended December 31, 2013, 2012, and 2011 the Company reported an income tax (provision) benefit of $158.1 million, $(70.8) million, and $(114.7) million, respectively.

The following table summarizes the components of the Company’s income tax provision from continuing operations for the three years ended December 31, 2013, 2012, and 2011 (in thousands):

The components of the consolidated income tax benefit (expense) from continuing operations were as follows:



	Years Ended December 31,
	2013			2012			2011
Current:
United States	$	4		$	(257	)	$	2,015
United States — State mining taxes	(714		)	(2,195		)	(409		)
United States — Foreign withholding tax	397			(736		)	(842		)
Argentina	(137		)	976			(1,219		)
Australia	(914		)	(1,760		)	(1,755		)
Mexico	(9,046		)	(7,814		)	(1,084		)
Bolivia	(6,716		)	(43,546		)	(59,660		)
Canada	(1,936		)	—			—
Deferred:
Argentina	8,062			—			—
Australia	(2		)	(223		)	(661		)
Bolivia	(4,222		)	(1,087		)	(207		)
Mexico	94,851			(10,579		)	(28,022		)
United States	78,489			(3,586		)	(22,902		)
Income tax benefit (expense)	$	158,116		$	(70,807	)	$	(114,746	)

Reconciliation of effective tax rate with the federal statutory tax rate

A reconciliation of the Company’s effective tax rate with the federal statutory tax rate for the periods indicated is as follows:



	Years Ended December 31
	2013			2012			2011
Tax benefit (expense) from continuing operations	$	283,038		$	(41,819	)	$	(72,886	)
State tax provision from continuing operations	2,245			(3,151		)	(11,009		)
Percentage depletion and related deductions	—			7,461			—
Change in valuation allowance	(106,802		)	(12,651		)	(6,032		)
Non-deductible imputed interest	(214		)	(525		)	(808		)
Uncertain tax positions	(5,209		)	(9,849		)	(1,279		)
U.S. and foreign non-deductible expenses	(2,383		)	(4,206		)	(10,648		)
Foreign exchange rates	13,937			(10,416		)	(4,440		)
Foreign inflation and indexing	2,937			712			(3,829		)
Foreign tax rate differences	(24,108		)	3,967			22,795
Foreign withholding and other foreign taxes	(100,331		)	(5,861		)	(23,246		)
Foreign tax credits and other, net	13,153			5,531			(3,364		)
Change in Mexico permanent reinvestment assertion	81,853			—			—
	$	158,116		$	(70,807	)	$	(114,746	)

Deferred tax assets and liabilities

As of December 31, 2013 and 2012, the significant components of the Company’s deferred tax assets and liabilities were as follows:



	Years Ended December 31
	2013			2012
Deferred tax liabilities:
Mineral properties	$	344,152		$	461,742
Mexican mining royalty tax	76,386			—
Foreign subsidiaries — unremitted earnings	182,464			247,000
Inventory	2,746			—
Property, plant and equipment, net	33,094			60,266
	$	638,842		$	769,008
Deferred tax assets:
Net operating loss carryforwards	130,170			99,323
Foreign subsidiaries — future tax credits	163,947			145,395
Royalty and other long-term debt	11,616			42,221
Capital loss carryforwards	34,930			35,315
Asset retirement obligation	18,589			8,623
Unrealized foreign currency loss and other	9,567			1,590
Accrued expenses	14,756			20,692
Tax credit carryforwards	23,585			22,811
Inventory	—			1,418
	407,160			377,388
Valuation allowance	(289,378		)	(182,576		)
	117,782			194,812
Net deferred tax liabilities	$	(521,060	)	$	(574,196	)

Recorded valuation allowances

The Company has evaluated the amount of taxable income and periods over which it must be earned to allow for realization of the deferred tax assets. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this decision. Based upon this analysis, the Company has recorded valuation allowances as follows:



	Years Ended December 31
	2013		2012
U.S.	$	236,653	$	132,790
Argentina	17,005		18,442
Canada	4,453		2,227
New Zealand	27,292		27,125
Other	3,975		1,992
	$	289,378	$	182,576

Reconciliation of the beginning and ending amount related to unrecognized tax benefits

A reconciliation of the beginning and ending amount related to unrecognized tax benefits is as follows (in thousands):



Unrecognized tax benefits at January 1, 2012	$	1,980
Gross increase to current period tax positions	9,227
Gross decrease to prior period tax positions	(696		)
Unrecognized tax benefits at December 31, 2012	$	10,511
Gross increase to current period tax positions	2,231
Gross increase to prior period tax positions	2,761
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statue of limitations	(32		)
Unrecognized tax benefits at December 31, 2013	$	15,471

Tax attribute carryforwards

The Company has the following tax attribute carryforwards as of December 31, 2013, by jurisdiction:



	U.S.	Argentina	Canada	Mexico	New Zealand	Other	Total
Regular net operating losses	226,985	21,061	7,203	4,170	97,470	6,641	363,530
Alternative minimum tax net operating losses	99,954	—	—	—	—	—	99,954
Capital losses	90,258	—	3,579	—	—	—	93,837
Alternative minimum tax credits	3,136	—	—	—	—	—	3,136
Foreign tax credits	19,494	—	—	—	—	—	19,494

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

+ References+ Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References+ Details