INCOME AND MINING TAXES

The components of Income (loss) before income taxes are below:



	Year ended December 31,
in thousands	2014			2013			2012
United States	$	(213,883	)	$	(242,562	)	$	(3,443	)
Foreign	(1,401,245		)	(566,117		)	122,927
Total	$	(1,615,128	)	$	(808,679	)	$	119,484

The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:



	Year ended December 31,
in thousands	2014			2013			2012
Current:
United States	$	904		$	4		$	(257	)
United States — State mining taxes	(879		)	(714		)	(2,195		)
United States — Foreign withholding tax	(6,250		)	397			(736		)
Argentina	(71		)	(137		)	976
Australia	—			(914		)	(1,760		)
Mexico	(1,124		)	(9,046		)	(7,814		)
Bolivia	(4,008		)	(6,716		)	(43,546		)
Canada	(145		)	(1,936		)	—
Deferred:
Argentina	24,478			8,062			—
Australia	(401		)	(2		)	(223		)
Bolivia	22,122			(4,222		)	(1,087		)
Canada	1,807			—			—
Mexico	417,068			94,851			(10,579		)
United States	5,743			78,489			(3,586		)
Income tax (expense) benefit	$	459,244		$	158,116		$	(70,807	)

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



	Year ended December 31,
in thousands	2014			2013			2012
Tax benefit (expense) from continuing operations	$	565,295		$	283,038		$	(41,819	)
State tax provision from continuing operations	20,253			2,245			(3,151		)
Percentage depletion and related deductions	—			—			7,461
Change in valuation allowance	(128,344		)	(106,802		)	(12,651		)
Non-deductible imputed interest	—			(214		)	(525		)
Uncertain tax positions	(4,425		)	(5,209		)	(9,849		)
U.S. and foreign non-deductible expenses	(4,892		)	(2,383		)	(4,206		)
Foreign exchange rates	23,672			13,937			(10,416		)
Foreign inflation and indexing	3,765			2,937			712
Foreign tax rate differences	(63,930		)	(24,108		)	3,967
Foreign withholding and other foreign taxes	91,882			(100,331		)	(5,861		)
Foreign tax credits and other, net	(44,032		)	13,153			5,531
Change in Mexico permanent reinvestment assertion	—			81,853			—
	$	459,244		$	158,116		$	(70,807	)

At December 31, 2014 and 2013, the significant components of the Company’s deferred tax assets and liabilities are below:



	Year ended December 31,
In thousands	2014			2013
Deferred tax liabilities:
Mineral properties	$	—		$	344,152
Mexican mining royalty tax	7,586			76,386
Foreign subsidiaries — unremitted earnings	45,249			182,464
Inventory	1,100			2,746
Property, plant, and equipment, net	—			33,094
	$	53,935		$	638,842
Deferred tax assets:
Net operating loss carryforwards	153,689			130,170
Mineral properties	70,510			—
Property, plant, and equipment	46,042			—
Foreign subsidiaries — future tax credits	—			163,947
Royalty and other long-term debt	5,863			11,616
Capital loss carryforwards	35,251			34,930
Asset retirement obligation	21,586			18,589
Unrealized foreign currency loss and other	8,213			9,567
Accrued expenses	14,773			14,756
Tax credit carryforwards	56,322			23,585
	412,249			407,160
Valuation allowance	(409,883		)	(289,378		)
	2,366			117,782
Net deferred tax liabilities	$	51,569		$	521,060

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 assessment. Based upon this analysis, the Company has recorded valuation allowances as follows:



	Year ended December 31,
In thousands	2014		2013
U.S.	$	305,534	$	236,653
Argentina	21,520		17,005
Canada	2,009		4,453
Bolivia	15,948		—
Mexico	33,189		—
New Zealand	28,710		27,292
Other	2,973		3,975
	$	409,883	$	289,378

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



Unrecognized tax benefits at January 1, 2013	$	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
Gross increase to current period tax positions	1,856
Gross increase to prior period tax positions	524
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statue of limitations	(1,767		)
Unrecognized tax benefits at December 31, 2014	$	16,084

At December 31, 2014, 2013, and 2012, $16.1 million, $14.3 million, and $10.3 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company's effective tax rate. The Company is not able to estimate the amount of change in the Company's gross unrecognized tax benefits within the next twelve months.

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and has recognized interest and penalties of $2.9 million, $4.1 million, and $2.5 million as of 2014, 2013, and 2012, respectively.

The Company files income tax returns in various U.S. federal and state jurisdictions, in all identified foreign jurisdictions and various others. The statute of limitations remains open from 2012 for the US federal jurisdiction and from 2005 for certain other foreign jurisdictions. During 2014, the U.S. Internal Revenue Service concluded its examination of the Company's 2009, 2010, and 2011 tax years.

In the fourth quarter of 2013, the Company made an assertion that earnings are permanently reinvested in its Coeur Mexicana mining operations entity which resulted in an income tax benefit of $81 million. Therefore, at December 31, 2014, no provision has been made for United States federal and state income taxes on the Company's outside tax basis differences in Mexico, which primarily relate to accumulated foreign earnings which have been reinvested and are expected to be reinvested outside the United States indefinitely.

During 2007, the Company incurred an ownership change which generally limits the availability of existing tax attributes, including net operating loss carryforwards to reduce future taxable income. The Company has the following tax attribute carryforwards at December 31, 2014, by jurisdiction (in thousands):



	U.S.	Argentina	Canada	Mexico	New Zealand	Other	Total
Regular net operating losses	245,683	16,588	1,633	49,747	102,535	22,952	439,138
Alternative minimum tax net operating losses	117,362	—	—	—	—	—	117,362
Capital losses	91,019	—	—	—	—	—	91,019
Alternative minimum tax credits	4,142	—	—	—	—	—	4,142
Foreign tax credits	52,181	—	—	—	—	—	52,181

The U.S. net operating losses expire from 2019 through 2034 and the Canada net operating losses will expire from 2029 through 2034. The Mexico net operating losses expire from 2017 to 2024, while the remaining net operating losses from the foreign jurisdictions have an indefinite carryforward period. The U.S. capital losses expire in 2015 while the Canada capital losses generally have an indefinite carryforward period. Alternative minimum tax credits do not expire and foreign tax credits expire if unused beginning in 2019.