XML 214 R47.htm IDEA: XBRL DOCUMENT

INCOME TAXES (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Schedule of Components of Income Tax (Expense) Benefit

The components of income (loss) from continuing operations before income taxes were as follows:


	Years Ended December 31,
	2012			2011			2010
United States	$	(5,638	)	$	(38,781	)	$	(37,710	)
Foreign		122,927			246,617			(54,955	)

Total	$	117,289		$	207,836		$	(92,665	)

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


	Years Ended December 31,
	2012			2011			2010
Current:
United States – Alternative minimum tax	$	(257	)	$	2,015		$	(482	)
United States – Foreign withholding tax		(736	)		(842	)		(1,009	)
Argentina		976			(1,219	)		(7,094	)
Australia		(1,760	)		(1,755	)		(251	)
Mexico		(7,814	)		(1,084	)		(316	)
Bolivia		(43,546	)		(59,660	)		(20,268	)
Deferred:
Australia		(223	)		(661	)		(541	)
Bolivia		(1,087	)		(207	)		(1,388	)
Mexico		(10,579	)		(28,022	)		24,371
United States		(3,586	)		(22,902	)		16,459

Income tax benefit (expense)	$	(68,612	)	$	(114,337	)	$	9,481

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
	2012			2011			2010
Tax benefit (expense) from continuing operations	$	(41,051	)	$	(72,743	)	$	32,433
State tax provision from continuing operations		(956	)		(10,600	)		4,726
Percentage depletion and related deductions		7,461			—			3,093
Change in valuation allowance		(12,651	)		(6,032	)		2,734
Non-deductible imputed interest		(525	)		(808	)		(1,718	)
Uncertain tax positions		(9,849	)		(1,279	)		(299	)
U.S. and foreign non-deductible expenses		(4,206	)		(10,648	)		(9,052	)
Foreign exchange rates		(10,416	)		(4,440	)		(7,066	)
Foreign inflation and indexing		712			(3,829	)		(3,352	)
Foreign tax rate differences		3,967			22,795			(9,861	)
Foreign withholding and other foreign taxes		(5,861	)		(23,246	)		(2,986	)
Foreign tax credits and other, net		4,763			(3,507	)		829

	$	(68,612	)	$	(114,337	)	$	9,481

Deferred tax assets and liabilities

As of December 31, 2012 and 2011, the significant components of the Company’s deferred tax assets and liabilities were as follows:


	Years Ended December 31
	2012			2011
Deferred tax liabilities:
Mineral properties	$	461,742		$	453,818
Foreign subsidiaries – unremitted earnings		247,000			235,116
Property, plant and equipment, net		60,266			68,013

	$	769,008		$	756,947

Deferred tax assets:
Net operating loss carryforwards		99,323			128,073
Foreign subsidiaries – future tax credits		145,395			133,160
Royalty and other long-term debt		42,221			48,254
Capital loss carryforwards		35,315			35,562
Asset retirement obligation		8,623			9,638
Unrealized foreign currency loss and other		1,590			3,974
Accrued expenses		20,692			23,247
Tax credit carryforwards		22,811			11,987
Inventory		1,418			6,069

		377,388			399,964
Valuation allowance		(182,576	)		(168,511	)

		194,812			231,453

Net deferred tax liabilities	$	(574,196	)	$	(525,494	)

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
	2012		2011
U.S.	$	132,790	$	123,539
Argentina		18,442		10,739
Canada		2,227		5,390
New Zealand		27,125		27,026
Other		1,992		1,817

	$	182,576	$	168,511

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, 2011	$	1,076
Gross increase to current period tax positions		904
Gross decrease to prior period tax positions		—

Unrecognized tax benefits at December 31, 2011	$	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

Tax attribute carryforwards

The Company has the following tax attribute carryforwards as of December 31, 2012, by jurisdiction:


	U.S.		Argentina		Canada		Mexico		New Zealand		Other		Total
Regular net operating losses		133,640		18,598		4,243		31,305		96,875		6,640		291,301
Alternative minimum tax net operating losses		7,409		—		—		—		—		—		7,409
Capital losses		89,632		—		3,755		—		—		—		93,387
Alternative minimum tax credits		3,131		—		—		—		—		—		3,131
Foreign tax credits		19,680		—		—		—		—		—		19,680

Income tax provision from continuing operations

The following table summarizes the components of the Company’s income tax provision for the three and six months ended June 30, 2013 and 2012 (in thousands):


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
United States	$	(790	)	$	(388	)	$	(3,277	)	$	(3,525	)
Mexico		(15,798	)		(12,052	)		(19,471	)		(15,750	)
Bolivia		(4,556	)		(10,889	)		(8,884	)		(18,578	)
Other jurisdictions		(1,990	)		(533	)		(2,022	)		(1,445	)

Income tax provision from continuing operations	$	(23,134	)	$	(23,862	)	$	(33,654	)	$	(39,298	)

- 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.

+ References+ Details

- 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