Income and Mining Taxes

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30, 2022 and 2021 by significant jurisdiction:

	Three months ended September 30,								Nine months ended September 30,
	2022				2021				2022				2021
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	$	(59,012)	$	(74)	$	(30,247)	$	4,078	$	(154,263)	$	(2,270)	$	(9,131)	$	(4,775)
Canada	(8,960)		—		(13,879)		—		(22,859)		(21)		(39,643)		—
Mexico	12,178		(1,809)		(4,138)		(10,478)		64,847		(12,788)		59,603		(29,751)
Other jurisdictions	233		—		(104)		—		158		—		3,135		—
	$	(55,561)	$	(1,883)	$	(48,368)	$	(6,400)	$	(112,117)	$	(15,079)	$	13,964	$	(34,526)

    During the third quarter of 2022, the Company reported estimated income and mining tax expense of approximately $1.9 million, resulting in an effective tax rate of 3.4%. This compares to income tax expense of $6.4 million for an effective tax rate of 13.2% during the third quarter of 2021. 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) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) mining taxes; (iv) the sale of non-core assets; (v) foreign exchange rates; (vi) the impact of uncertain tax positions; (vii) percentage depletion; and (viii) the non-recognition of tax assets. 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 2021 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 2018 forward for the U.S. federal jurisdiction and from 2016 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 by less than $0.1 million in the next twelve months.

    At September 30, 2022 and December 31, 2021, the Company had $0.0 million and $0.3 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 September 30, 2022 and December 31, 2021, the amount of accrued income-tax-related interest and penalties was $0.0 million and $0.4 million, respectively.