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Income and Mining Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

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	)

Schedule of Effective Income Tax Rate Reconciliation

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	)

Schedule of Deferred Tax Assets and Liabilities

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

Summary of Valuation Allowance

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

Summary of Income Tax Contingencies

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

Summary of Tax Credit Carryforwards

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

- 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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