Income and Mining Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

INCOME AND MINING TAXES

INCOME AND MINING TAXES

    The following table summarizes the components of Income and mining tax (expense) benefit for the three and six months ended June 30, 2021 and 2020 by significant jurisdiction:

	Three months ended June 30,								Six months ended June 30,
	2021				2020				2021				2020
In thousands	Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit		Income (loss) before tax		Tax (expense) benefit
United States	$	29,647	$	(7,228)	$	12,546	$	827	$	21,116	$	(8,853)	$	1,540	$	91
Canada	(12,979)		—		(15,621)		217		(25,763)		—		(41,650)		232
Mexico	30,827		(8,112)		4,805		(3,888)		63,741		(19,273)		26,163		743
Other jurisdictions	(9)		—		(95)		—		3,238		—		(257)		29
	$	47,486	$	(15,340)	$	1,635	$	(2,844)	$	62,332	$	(28,126)	$	(14,204)	$	1,095

    During the second quarter of 2021, the Company reported estimated income and mining tax expense of approximately $15.3 million, resulting in an effective tax rate of 32.3%. This compares to income tax expense of 2.8 million for an effective tax rate of 173.9% during the second quarter of 2020. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates; (v) percentage depletion; (vi) the non-recognition of tax assets; and (vii) the impact of uncertain tax positions. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the section titled “Risk Factors” in the 2020 10-K.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The statute of limitations remains open from 2016 forward for the U.S. federal jurisdiction and from 2011 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next twelve 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 between $0.5 million and $1.5 million in the next twelve months.

    At June 30, 2021 and December 31, 2020, the Company had $0.3 million and $0.7 million of total gross unrecognized tax benefits, respectively, that, if recognized, would positively impact the Company’s effective income tax rate. The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At June 30, 2021 and December 31, 2020, the amount of accrued income-tax-related interest and penalties was $0.4 million and $1.1 million, respectively.