XML 45 R36.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES:

Components of the provision for income taxes

​

​	​	​	​	​	​	​	​	​	​
(in millions)		2019			2018			2017
U.S. federal and state:	​	​	​	​	​	​	​	​	​
Current	​	$	—	​	$	2.6	​	$	—
Deferred	​		—	​		(13.0)	​		686.2
Uncertain tax positions	​		(1.3)	​		—	​		16.2
​	​		(1.3)	​		(10.4)	​		702.4
Foreign (Peru and Mexico):	​	​	​	​	​	​	​	​	​
Current	​		966.3	​		1,102.4	​		951.7
Deferred	​	​	(30.1)	​		(38.5)	​		(60.7)
Uncertain tax positions	​		10.4	​		—	​	​	—
​	​		946.6	​		1,063.9	​		891.0
Total provision for income taxes	​	$	945.3	​	$	1,053.5	​	$	1,593.4

Schedule of source of income

​

​	​	​	​	​	​	​	​	​	​
(in millions)		2019			2018			2017
Earnings by location:	​	​	​	​	​	​	​	​	​
U.S.	​	$	(1.9)	​	$	(2.3)	​	$	(1.5)
Foreign	​	​	​	​	​	​	​	​	​
Peru	​		513.0	​		441.8	​		284.6
Mexico	​		1,915.4	​		2,149.9	​		2,019.6
​	​		2,428.4	​		2,591.7	​		2,304.2
Earnings before taxes on income	​	$	2,426.5	​	$	2,589.4	​	$	2,302.7

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, 2019, is as follows (in percentage points):

​	​	​	​	​	​	​	​
​		2019		2018		2017
Expected tax at U.S. statutory rate		21.0	%	21.0	%	35.0	%
Foreign tax at other than statutory rate, net of foreign tax credit benefit (1)		14.0	​	13.9	​	0.6	​
Percentage depletion		(2.7)	​	(2.1)	​	(2.9)	​
Other permanent differences		0.1	​	0.4	​	5.2	​
Change in 2017 valuation allowance on U.S. deferred tax assets, foreign tax credits and U.S. tax effect on Peruvian deferred taxes	​	—	​	7.5	​	26.9	​
Additional valuation allowance on 2018 U.S. deferred tax assets, foreign tax credits and U.S. tax effect on Peruvian deferred taxes	​	10.1	​	1.0	​	—	​
Decrease in 2017 U.S. deferred tax asset due to tax rate changes	​	—	​	(0.2)	​	4.8	​
U.S. one time transition tax on accumulated foreign earnings	​	—	​	0.4	​	2.4	​
Increase (decrease) in unrecognized tax benefits for uncertain tax positions		(2.1)	​	—	​	0.7	​
Repatriated foreign earnings		—	​	—	​	(2.0)	​
Amounts (over) / under provided in prior years		(1.1)	​	(1.3)	​	(0.1)	​
Other		(0.3)	​	0.1	​	(1.4)	​
Effective income tax rate		39.0	%	40.7	%	69.2	%

(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)		2019			2018
Assets:	​	​	​	​	​	​
Inventories	​	$	55.7	​	$	61.5
Capitalized exploration expenses	​		14.0	​		11.1
U.S. foreign tax credit carryforward, net of FIN 48 liability	​		731.8	​		483.4
U.S. tax effect of Peruvian deferred tax liability	​		131.3	​		165.1
Provisions	​		145.0	​		155.0
Mexican tax on consolidated dividends	​	​	9.0	​	​	14.8
Deferred workers participation	​	​	24.7	​	​	27.0
Accrued salaries, wages and vacations	​	​	10.0	​	​	9.1
Sales price adjustment (PUI)	​	​	3.0	​	​	2.7
Social responsibility expenses	​	​	2.1	​	​	2.1
Deferred charges	​	​	14.5	​	​	6.1
Valuation allowance on U.S. deferred tax assets, foreign tax credits and U.S. tax effect on Peruvian deferred	​	​	(1,097.0)	​	​	(819.1)
Other	​		9.9	​		10.1
Total deferred tax assets	​		54.0	​		128.9
​	​	​	​	​	​	​
​	​	At December 31,
(in millions)		2019			2018
Liabilities:	​	​	​	​	​	​
Property, plant and equipment	​		(45.4)	​		(137.3)
Other	​		(3.0)	​		(0.4)
Total deferred tax liabilities	​		(48.4)	​		(137.7)
Total net deferred tax (liabilities) / assets	​	$	5.6	​	$	(8.8)

Summary of expiry of foreign tax credits

​

​	​	​	​
Year		Amount
2024	​		39.4
2025	​		102.0
2026	​	​	189.5
2027	​	​	105.6
2028	​	​	159.6
2030	​	​	194.1
Total	​	$	790.2

Schedule of reconciliation of amount of unrecognized tax benefits

The total amount of unrecognized tax benefits in 2019, 2018 and 2017, was as follows (in millions):

​

​	​	​	​	​	​	​	​	​	​
​		2019			2018			2017
Unrecognized tax benefits, opening balance	​	$	214.5	​	$	214.5	​	$	304.0
Gross increases—tax positions in prior period	​		(7.5)	​		—	​		(89.5)
Gross increases—current-period tax positions	​		(4.2)	​		—	​		—
Decreases related to settlements with taxing authorities	​		(144.4)	​		—	​		—
​	​		(156.1)	​		—	​		(89.5)
Unrecognized tax benefits, ending balance	​	$	58.4	​	$	214.5	​	$	214.5

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

​

​	​	​
Peru:		2014 and all subsequent years
U.S.:	​	2014 and all subsequent years
Mexico:	​	2014 and all subsequent years

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

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320

+ Details

Name:	us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319

+ Details

Name:	us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration