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INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES:

Components of the provision for income taxes

(in millions)		2016			2015			2014
U.S. federal and state:
Current		$	—		$	—		$	—
Deferred			(109.4	)		(143.0	)		(352.1	)
Uncertain tax positions			20.3			80.0			10.7
​	​	​	​	​	​	​	​	​	​	​
			(89.1	)		(63.0	)		(341.4	)
​	​	​	​	​	​	​	​	​	​	​
Foreign (Peru and Mexico):
Current			625.0			620.4			987.1
Deferred			(34.8	)		(92.5	)		108.9
​	​	​	​	​	​	​	​	​	​	​
			590.2			527.9			1,096.0
​	​	​	​	​	​	​	​	​	​	​
Total provision for income taxes		$	501.1		$	464.9		$	754.6
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

Schedule of source of income

(in millions)		2016			2015			2014
Earnings by location:
U.S.		$	(1.9	)	$	(2.1	)	$	(1.7	)
Foreign
Peru			(85.7	)		213.2			605.7
Mexico			1,343.6			978.1			1,464.6
​	​	​	​	​	​	​	​	​	​	​
			1,257.9			1,191.3			2,070.3
​	​	​	​	​	​	​	​	​	​	​
Earnings before taxes on income		$	1,256.0		$	1,189.2		$	2,068.6
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

Reconciliation of the statutory income tax rate to the effective tax rate

        The reconciliation of the statutory income tax rate to the effective tax rate for the three years ended December 31, 2016, is as follows (in percentage points):

		2016			2015			2014
Expected tax at U.S. statutory rate			35.0	%		35.0	%		35.0	%
Foreign tax at other than statutory rate, net of foreign tax credit benefit(1)			2.0			3.6			3.6
Percentage depletion			(2.7	)		(5.9	)		(5.2	)
Other permanent differences			—			0.7			0.1
Increase (decrease) in unrecognized tax benefits for uncertain tax positions			0.2			6.7			0.5
Repatriated foreign earnings			3.6			—			(0.4	)
Amounts (over) / under provided in prior years			(0.5	)		(2.2	)		2.2
Other			2.3			1.2			0.7
​	​	​	​	​	​	​	​	​	​	​
Effective income tax rate			39.9	%		39.1	%		36.5	%
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

(1)           Foreign tax at other than statutory rates, net of foreign tax credit benefit, also includes the effects of permanent differences in Peru and Mexico, that are determined at the local statutory rate.

Schedule of deferred tax assets and liabilities

		At December 31,
(in millions)		2016			2015
Assets:
Inventories		$	27.9		$	27.6
Capitalized exploration expenses			17.5			20.1
U.S. foreign tax credit carryforward, net of FIN 48 liability			284.2			187.4
U.S. tax effect of Peruvian deferred tax liability			162.6			171.2
Property, plant and equipment			1.2			—
Reserves			108.9			42.3
Mexican tax on consolidated dividends			13.6			5.5
Prepaids			11.1			0.4
Other			29.7			22.4
​	​	​	​	​	​	​	​
Total deferred tax assets			656.7			476.9
​	​	​	​	​	​	​	​
Liabilities:
Property, plant and equipment			—			(18.5	)
Deferred charges			(35.4	)		(38.1	)
Unremitted foreign earnings			(45.7	)		—
Other			(10.9	)		(2.1	)
​	​	​	​	​	​	​	​
Total deferred tax liabilities			(92.0	)		(58.7	)
​	​	​	​	​	​	​	​
Total net deferred tax assets / (liabilities)		$	564.7		$	418.2
​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​

Summary of expiry of foreign tax credits

Year		Amount
2019			9.9
2020			10.5
2021			11.7
2022			84.1
2023			69.2
2024			99.7
2025			189.5
2026			102.5
​	​	​	​	​
Total		$	577.1
​	​	​	​	​
​	​	​	​	​

Summary of income tax rate and dividend tax rate due to change in enacted tax law

Year		Income Tax Rate			Dividend Tax Rate
2015 - 2016			28	%		6.8	%

Year		Income Tax Rate			Dividend Tax Rate
2017 and later			29.5	%		5	%

Schedule of reconciliation of amount of unrecognized tax benefits

        The total amount of unrecognized tax benefits in 2016, 2015 and 2014, was as follows (in millions):

		2016			2015			2014
Unrecognized tax benefits, opening balance		$	400.0		$	319.4		$	221.2
Gross increases—tax positions in prior period			3.9			36.3			55.1
Gross increases—current-period tax positions			23.3			44.3			43.1
Decreases related to settlements with taxing authorities			(123.2	)		—			—
​	​	​	​	​	​	​	​	​	​	​
			(96.0	)		80.6			98.2
​	​	​	​	​	​	​	​	​	​	​
Unrecognized tax benefits, ending balance		$	304.0		$	400.0		$	319.4
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

Summary of tax years remaining open to examination and adjustment in major tax jurisdictions

Peru:		2011 and all subsequent years
U.S.:		2011 and all subsequent years
Mexico:		2011 and all subsequent years

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