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INCOME TAXES: | 9 Months Ended
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Sep. 30, 2019
INCOME TAXES: |
INCOME TAXES: | NOTE 5 — INCOME TAXES: ​ The income tax provision and the effective income tax rate for the nine months of 2019 and 2018 consisted of ($ in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 | ​
Statutory income tax provision | ​ | $ | 648.0 | ​ | $ | 698.5 | ​
GILTI Tax | ​ | ​ | — | ​ | ​ | 15.2 | ​
Peruvian royalty | ​ |  | 8.6 | ​ |  | 6.7 | ​
Mexican royalty | ​ |  | 47.6 | ​ |  | 60.9 | ​
Peruvian special mining tax | ​ |  | 25.8 | ​ |  | 22.3 | ​
Total income tax provision | ​ | $ | 730.0 | ​ | $ | 803.6 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Effective income tax rate | ​ | ​ | 38.2 | % | ​ | 39.2 | %
​ These provisions include income taxes for Peru, Mexico and the United States. In addition, the Mexican royalty, the Peruvian royalty and the Peruvian special mining tax are included in the income tax provision. The decrease in the 2019 effective income tax rate from the same period in 2018 was primarily attributed to reduced GILTI tax after additional regulation was issued by the IRS and lower mining tax in Mexico over the same period of 2018, offset by small increases in the Peruvian royalty and special mining tax. ​ Peruvian royalty and special mining tax: The Company has accrued $31.7 million and $24.2 million of royalty charge in the nine months of 2019 and 2018, respectively, of which $8.6 million and $6.7 million were included in income taxes in 2019 and 2018, respectively. ​ The Company has accrued $25.8 million and $22.3 million of special mining tax as part of the income tax provision for the nine months of 2019 and 2018, respectively. ​ Mexican mining royalty: The Company has accrued $47.6 million and $60.9 million of royalty taxes as part of the income tax provision for the nine months of 2019 and 2018, respectively. ​ ​ ​ Accounting for uncertainty in income taxes: ​ The amount of unrecognized tax benefits (UTB’s) that, if recognized, could affect the effective tax rate was $69.5 million at September 30, 2019, and $214.5 million at December 31, 2018. The change in the UTB’s relate entirely to U.S. income tax matters and the Company has no unrecognized Peruvian or Mexican tax benefits. The $145 million reduction during the nine-month 2019 period is due to the settlement with the Internal Revenue Service (IRS) of the examination of the 2011-2013 tax years. The change in the UTB’s had been anticipated by the Company, but because of the income tax accounting rules under ASC 740, the issues had to be effectively settled and the examination closed before the effect was final and reflected in the financial statements. The audit closing resulted in an immaterial tax benefit in the financial statements that was the result of the removal of the previous accrual of interest and penalty. The remaining reversal of uncertain tax positions was offset by changes in the deferred tax asset for foreign tax credits and valuation allowance. ​ The Internal Revenue Service field audit of 2014-2016 commenced during the nine months ended September 30, 2019 and with the closing of the 2011-2013 examination, the remaining years open to examination and adjustment in the United States are 2014 and all subsequent years. ​ Management does not expect that any of the open years will result in a cash payment within the upcoming twelve months ending September 30, 2020. The Company's reasonable expectations about future resolutions of uncertain items did not materially change during the nine months ended September 30, 2019.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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