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STOCKHOLDERS' EQUITY: | 12 Months Ended
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Dec. 31, 2013
STOCKHOLDERS' EQUITY: |
STOCKHOLDERS' EQUITY: | NOTE 14-STOCKHOLDERS’ EQUITY Delaware Court Decision Related to SCC Shareholder Derivative Lawsuit: On October 9, 2012 the Company received from AMC, its majority shareholder, $2,108.2 million in satisfaction of the judgment issued pursuant to the decision of the Court of Chancery of Delaware, which concluded that the Company paid an excessive price to AMC in the 2005 merger between the Company and Minera Mexico, S.A. de C.V. From the aforementioned sum received from AMC, the Company paid $316.2 million of legal fees and expenses to the plaintiff’s attorneys to satisfy the court ordered award of attorneys’ fees and expenses. The effect of this award was recorded in the Company’s 2012 results. The $2,108.2 million awarded to the Company was included in the capital accounts (additional paid-in capital) on the balance sheet. Additionally, the Company recorded an operating expense of $316.2 million in its 2012 results for the legal fees related to this award. Treasury Stock: Activity in treasury stock in the years 2013 and 2012 was as follows (in millions):
|  | 2013 |  | 2012 |
Southern Copper common shares |  |  |  |  |
Balance as of January 1, |  | $ | 729.8 |  | $ | 734.1 |
Purchase of shares |  | 281.4 |  | 147.3 |
Stock dividend distribution |  | — |  | (151.4 | )
Used for corporate purposes |  | (0.2 | ) | (0.2 | )
Balance as of December 31, |  | 1,011.0 |  | 729.8 |
Parent Company (Grupo Mexico) common shares |  |  |  |  |
Balance as of January 1, |  | 189.0 |  | 163.7 |
Other activity, including dividend, interest and currency translation effect |  | 16.6 |  | 25.3 |
Balance as of December 31, |  | 205.6 |  | 189.0 |
Treasury stock balance as of December 31, |  | $ | 1,216.6 |  | $ | 918.8 |
SCC shares of common stock in treasury: At December 31, 2013 and 2012, treasury stock holds 49,278,536 shares and 39,045,536 shares of SCC’s common stock with a cost of $1,011.0 million and $729.8 million, respectively. The shares of SCC’s common stock held in treasury are used for general corporate purposes. SCC share repurchase program: In 2008, the Company’s Board of Directors authorized a $500 million share repurchase program. On July 28, 2011, the Company’s Board of Directors authorized an increase of the share repurchase program to $1 billion and on October 17, 2013, the Company’s Board of Directors authorized an additional increase to $2 billion. Pursuant to this program, the Company purchased common stock as shown in the table below. These shares are available for general corporate purposes. The Company may purchase additional shares of its common stock from time to time, based on market conditions and other factors. This repurchase program has no expiration date and may be modified or discontinued at any time.
Period |  | Total Number of Shares |  | Average Price Paid per |  | Total Number of Shares Purchased as Part of Publicly |  | Maximum Number of Shares that May Yet Be Purchased Under the Plan |  | Total Cost ($ in |
From |  | To |  | Purchased |  | Share |  | Announced Plan |  | @ $28.71 (*) |  | millions) |
2008: |  |  |  | 28,510,150 |  | $ | 13.49 |  | 28,510,150 |  |  |  | $ | 384.7 |
2009: |  |  |  | 4,912,000 |  | 14.64 |  | 33,422,150 |  |  |  | 71.9 |
2010: |  |  |  | 15,600 |  | 29.69 |  | 33,437,750 |  |  |  | 0.5 |
2011: |  |  |  | 9,034,400 |  | 30.29 |  | 42,472,150 |  |  |  | 273.7 |
2012: |  |  |  | 4,442,336 |  | 33.17 |  | 46,914,486 |  |  |  | 147.3 |
2013: |  |  |  |  |  |  |  |  |  |  |  |  |
04/01/13 |  | 04/30/13 |  | 1,500 |  | 32.96 |  | 46,915,986 |  |  |  | 0.1 |
05/01/13 |  | 05/31/13 |  | 807,100 |  | 32.33 |  | 47,723,086 |  |  |  | 26.1 |
06/01/13 |  | 06/30/13 |  | 1,350,000 |  | 29.05 |  | 49,073,086 |  |  |  | 39.2 |
Total second quarter |  | 2,158,600 |  | 30.28 |  |  |  |  |  | 65.4 |
07/01/13 |  | 07/31/13 |  | 1,300,000 |  | 27.60 |  | 50,373,086 |  |  |  | 35.9 |
08/01/13 |  | 08/31/13 |  | 641,400 |  | 26.68 |  | 51,014,486 |  |  |  | 17.1 |
09/01/13 |  | 09/30/13 |  | 204,012 |  | 27.65 |  | 51,218,498 |  |  |  | 5.6 |
Total third quarter |  | 2,145,412 |  | 27.33 |  |  |  |  |  | 58.6 |
10/01/13 |  | 10/31/13 |  | 1,552,100 |  | 27.68 |  | 52,770,598 |  |  |  | 42.9 |
11/01/13 |  | 11/30/13 |  | 2,446,490 |  | 26.49 |  | 55,217,088 |  |  |  | 64.8 |
12/01/13 |  | 12/31/13 |  | 1,942,398 |  | 25.58 |  | 57,159,486 |  |  |  | 49.7 |
Total fourth quarter 2013 |  | 5,940,988 |  | 26.50 |  |  |  |  |  | 157.4 |
Total purchased |  | 57,159,486 |  | $ | 20.29 |  |  |  | 29,275,745 |  | $ | 1,159.5 |
(*) NYSE closing price of SCC common shares at December 31, 2013 As a result of the repurchase of shares of SCC’s common stock, Grupo Mexico’s direct and indirect ownership was 82.3% as of December 31, 2013 and 81.3% at December 31, 2012. Directors’ Stock Award Plan: The Company established a stock award compensation plan for certain directors who are not compensated as employees of the Company. Under this plan, participants will receive 1,200 shares of common stock upon election and 1,200 additional shares following each annual meeting of stockholders thereafter. 600,000 shares of Southern Copper common stock have been reserved for this plan. The fair value of the award is measured each year at the date of the grant. The activity of this plan for the years ended December 31, 2013 and 2012 was as follows:
|  | 2013 |  | 2012 |
Total SCC shares reserved for the plan |  | 600,000 |  | 600,000 |
Total shares granted at January 1, |  | (285,600 | ) | (271,200 | )
Granted in the period |  | (12,000 | ) | (14,400 | )
Total shares granted at December 31, |  | (297,600 | ) | (285,600 | )
Remaining shares reserved |  | 302,400 |  | 314,400 |
Parent Company common shares: At December 31, 2013 and 2012, there were in treasury 75,262,919 and 80,674,702 of Grupo Mexico’s common shares, respectively. Employee Stock Purchase Plan: In January 2007, the Company offered to eligible employees a stock purchase plan (the “Employee Stock Purchase Plan”) through a trust that acquires shares of Grupo Mexico stock for sale to its employees, employees of subsidiaries, and certain affiliated companies. The purchase price is established at the approximate fair market value on the grant date. Every two years employees will be able to acquire title to 50% of the shares paid in the previous two years. The employees will pay for shares purchased through monthly payroll deductions over the eight year period of the plan. At the end of the eight year period, the Company will grant the participant a bonus of 1 share for every 10 shares purchased by the employee. If Grupo Mexico pays dividends on shares during the eight year period, the participants will be entitled to receive the dividend in cash for all shares that have been fully purchased and paid as of the date that the dividend is paid. If the participant has only partially paid for shares, the entitled dividends will be used to reduce the remaining liability owed for purchased shares. In the case of voluntary or involuntary resignation/termination of the employee, the Company will pay to the employee the fair market sales price at the date of resignation/termination of the fully paid shares, net of costs and taxes. When the fair market sales value of the shares is higher than the purchase price, the Company will apply a deduction over the amount to be paid to the employee based on a decreasing schedule specified in the plan for each case. In case of retirement or death of the employee, the Company will render the buyer or his legal beneficiary, the fair market sales value as of the date of retirement or death of the shares effectively paid, net of costs and taxes. The stock based compensation expense for the years ended December 31, 2013, 2012 and 2011 and the remaining balance of the unrecognized compensation expense under the Employee Stock Purchase Plan, were as follows:
|  | 2013 |  | 2012 |  | 2011 |
Stock based compensation expense |  | $ | 2.1 |  | $ | 2.1 |  | $ | 2.1 |
Unrecognized compensation expense |  | $ | 2.1 |  | $ | 4.2 |  | $ | 6.3 |
The unrecognized compensation expense under this plan is expected to be recognized over the remaining one year period. The following table presents the stock award activity of the Employee Stock Purchase Plan for the years ended December 31, 2013 and 2012:
|  | Shares |  | Unit Weighted Average Grant Date Fair Value |
Outstanding shares at January 1, 2013 |  | 6,955,572 |  | $ | 1.16 |
Granted |  | — |  | — |
Exercised |  | (2,474,814 | ) | 1.16 |
Forfeited |  | (31,159 | ) | 1.16 |
Outstanding shares at December 31, 2013 |  | 4,449,599 |  | 1.16 |
Outstanding shares at January 1, 2012 |  | 7,270,341 |  | 1.16 |
Granted |  | — |  | — |
Exercised |  | (220,430 | ) | 1.16 |
Forfeited |  | (94,339 | ) | 1.16 |
Outstanding shares at December 31, 2012 |  | 6,955,572 |  | $ | 1.16 |
During 2010, the Company offered to eligible employees a new stock purchase plan (the “New Employee Stock Purchase Plan”) through a trust that acquires series B shares of Grupo Mexico stock for sale to its employees, employees of subsidiaries, and certain affiliated companies. The purchase price was established at 26.51 Mexican pesos (approximately $2.05) for the initial subscription. The terms of the New Employee Stock Purchase Plan are similar to the terms of the Employee Stock Purchase Plan. The stock based compensation expense for the years ended December 31, 2013, 2012 and 2011 and the remaining balance of the unrecognized compensation expense under the New Employee Stock Purchase Plan, were as follows:
|  | 2013 |  | 2012 |  | 2011 |
Stock based compensation expense |  | $ | 0.6 |  | $ | 0.6 |  | $ | 0.6 |
Unrecognized compensation expense |  | $ | 2.6 |  | $ | 3.2 |  | $ | 3.8 |
The unrecognized compensation expense under this plan is expected to be recognized over the remaining five year period. The following table presents the stock award activity of the New Employee Stock Purchase Plan for the years ended December 31, 2013 and 2012:
|  | Shares |  | Unit Weighted Average Grant Date Fair Value |
Outstanding shares at January 1, 2013 |  | 2,944,742 |  | $ | 2.05 |
Granted |  | 226,613 |  | 2.05 |
Exercised |  | (38,098 | ) | 2.05 |
Forfeited |  | (120,793 | ) | 2.05 |
Outstanding shares at December 31, 2013 |  | 3,012,464 |  | 2.05 |
Outstanding shares at January 1, 2012 |  | 3,807,146 |  | 2.05 |
Granted |  | — |  | — |
Exercised |  | (772,850 | ) | 2.05 |
Forfeited |  | (89,554 | ) | 2.05 |
Outstanding shares at December 31, 2012 |  | 2,944,742 |  | $ | 2.05 |
Executive Stock Purchase Plan: Grupo Mexico also offers a stock purchase plan for certain members of its executive management and the executive management of its subsidiaries and certain affiliated companies. Under this plan, participants will receive incentive cash bonuses which are used to purchase shares of Grupo Mexico which are deposited in a trust.

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- Definition The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Section B -Paragraph 7, 11A -Chapter 1 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 20: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 21: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 22: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 23: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 + Details
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