XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

INCOME TAXES: | 9 Months Ended
--- | ---
Sep. 30, 2018
INCOME TAXES: |
INCOME TAXES: | NOTE 4 — INCOME TAXES: The income tax provision and the effective income tax rate for the nine months of 2018 and 2017 consisted of (in millions):
|  | 2018 |  | 2017 |
Statutory income tax provision |  | $ | 698.5 |  | $ | 473.0 |
GILTI tax |  | 15.2 |  | — |
Peruvian royalty |  | 6.7 |  | 0.5 |
Mexican royalty |  | 60.9 |  | 67.7 |
Peruvian special mining tax |  | 22.3 |  | 15.4 |
Total income tax provision |  | $ | 803.6 |  | $ | 556.6 |
Effective income tax rate |  | 39.2 | % | 35.7 | %
These provisions include income taxes for Peru, Mexico and the United States. In addition, a Mexican royalty tax, a portion of the Peruvian royalty tax and the Peruvian special mining tax are included in the income tax provision. The increase in the effective tax rate for the first nine months of 2018 from the same period in the prior year is primarily due to the Company no longer recording the benefit for 100% of the foreign tax credits generated annually, as well as the effect of the Global Intangible Low Taxed Income (GILTI). Both the GILTI provision and the reduced benefit to the Company for foreign tax credits are the result of the U.S. Tax Cuts and Jobs Act (the “Act”), enacted on December 22, 2017. The Act includes significant changes to existing U.S. tax laws and creates new complex tax provisions. Some of these provisions are still under legislative review and are subject to change. As of December 31, 2017, the Company recorded provisional impacts of the tax effects related to specific provisions and continues to evaluate and await further IRS guidance on other provisions. During the nine months ended September 30, 2018, no significant adjustments were made to the provisional amounts recorded at December 31, 2017. The Company has not fully completed its analysis of the Act and will continue to assess the impact of the final calculations during the fourth quarter of 2018. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Act. The Company has adopted SAB 118. Accordingly, the provisions of the Act deemed most relevant to the Company have been considered in preparation of its condensed consolidated financial statements. Peruvian royalty and special mining tax: The mining royalty charge is based on operating income margins with graduated rates ranging from 1% to 12% of operating profits, with a minimum royalty charge assessed at 1% of net sales. If the operating income margin is 10% or less, the royalty charge is 1% and for each 5% increment in the operating income margin, the royalty charge rate increases by 0.75%, up to a maximum of 12%. The minimum royalty charge assessed at 1% of net sales is recorded as cost of sales and those amounts assessed against operating income are included in the income tax provision. The Company has accrued $24.2 million and $15.4 million of royalty charge in the nine months of 2018 and 2017, respectively, of which $6.7 million and $0.5 million were included in income taxes in 2018 and 2017, respectively. The special mining tax is based on operating income and its rate ranges from 2% to 8.4%. It begins at 2% for operating income margin up to 10% and increases by 0.4% of operating income for each additional 5% of operating income until 85% of operating income is reached. The Company has accrued $22.3 million and $15.4 million of special mining tax as part of the income tax provision for the nine months of 2018 and 2017, respectively. Mexican mining royalty: Mexico has a mining royalty charge of 7.5% on earnings before taxes as defined by Mexican tax regulations and an additional royalty charge of 0.5% over gross income from sales of gold, silver and platinum. The Company has accrued $60.9 million and $67.7 million of royalty taxes as part of the income tax provision for the nine months of 2018 and 2017, respectively. Accounting for uncertainty in income taxes: In the nine months of 2018, there were no changes in the Company’s uncertain tax positions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration