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INCOME TAXES: (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES:

Components of the provision for income taxes

​

​	​	​	​	​	​	​	​	​	​
(in millions)		2021			2020			2019
U.S. federal and state:	​	​	​	​	​	​	​	​	​
Current	​	$	—	​	$	—	​	$	—
Deferred	​		—	​		—	​		—
Uncertain tax positions	​		—	​		—	​		(1.3)
​	​		—	​		—	​		(1.3)
Foreign (Peru and Mexico):	​	​	​	​	​	​	​	​	​
Current	​		2,425.5	​		1,237.9	​		966.3
Deferred	​	​	(126.3)	​		(63.5)	​		(30.1)
Uncertain tax positions	​		—	​		—	​		10.4
​	​		2,299.2	​		1,174.4	​		946.6
Total provision for income taxes	​	$	2,299.2	​	$	1,174.4	​	$	945.3

Schedule of source of income

​

​	​	​	​	​	​	​	​	​	​
(in millions)		2021			2020			2019
Earnings by location:	​	​	​	​	​	​	​	​	​
U.S.	​	$	(32.4)	​	$	(15.3)	​	$	(1.9)
Foreign	​	​	​	​	​	​	​	​	​
Peru	​		1,962.8	​		723.9	​		513.0
Mexico	​		3,766.4	​		2,037.2	​		1,915.4
​	​		5,729.2	​		2,761.1	​		2,428.4
Earnings before taxes on income	​	$	5,696.8	​	$	2,745.8	​	$	2,426.5

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, 2021, is as follows (in percentage points):

​	​	​	​	​	​	​	​
​		2021		2020		2019
Expected tax at U.S. statutory rate		21.0	%	21.0	%	21.0	%
Foreign tax at other than statutory rate, net of foreign tax credit benefit (1)		13.8	​	13.7	​	14.0	​
Percentage depletion		(1.8)	​	(2.2)	​	(2.7)	​
Other permanent differences		(0.3)	​	0.1	​	0.1	​
Additional valuation allowance on U.S. deferred tax assets, foreign tax credits and U.S. tax effect on Peruvian deferred taxes	​	8.4	​	8.9	​	10.1	​
Increase (decrease) in unrecognized tax benefits for uncertain tax positions		(0.5)	​	(0.1)	​	(2.1)	​
Amounts (over) / under provided in prior years		—	​	(0.1)	​	(1.1)	​
Other		(0.2)	​	1.5	​	(0.3)	​
Effective income tax rate		40.4	%	42.8	%	39.0	%

(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)		2021			2020
Assets:	​	​	​	​	​	​
Inventories	​	$	78.0	​	$	62.4
Capitalized exploration expenses	​		12.5	​		13.0
U.S. foreign tax credit carryforward, net of FIN 48 liability	​		1,479.2	​		974.1
U.S. tax effect of Peruvian deferred tax liability	​		75.0	​		111.2
Provisions	​		284.5	​		169.5
Property, plant and equipment	​	​	9.5	​	​	—
Deferred workers participation	​	​	11.1	​	​	37.8
Accrued salaries, wages and vacations	​	​	8.2	​	​	8.5
Sales price adjustment (PUI)	​	​	2.6	​	​	(5.8)
Social responsibility expenses	​	​	5.1	​	​	4.3
Deferred charges	​	​	31.6	​	​	41.8
Valuation allowance on U.S. deferred tax assets, foreign tax credits and U.S. tax effect on Peruvian deferred	​	​	(1,820.0)	​	​	(1,343.2)
Accrued royalty and special mining tax	​	​	23.3	​	​	18.3
Other	​		5.5	​		1.2
Total deferred tax assets	​		206.1	​		93.1
​	​	​	​	​	​	​
​	​	At December 31,
(in millions)		2021			2020
Liabilities:	​	​	​	​	​	​
Property, plant and equipment	​		—	​		(17.2)
Other	​		(8.2)	​		(5.3)
Total deferred tax liabilities	​		(8.2)	​		(22.5)
Total net deferred tax (liabilities) / assets	​	$	197.9	​	$	70.6

Summary of expiry of foreign tax credits

​

​	​	​	​
Year		Amount
2024	​		73.1
2025	​	​	174.0
2026	​	​	96.2
2027	​	​	—
2028	​	​	175.0
2029	​	​	219.9
2030	​	​	247.6
2031	​	​	479.2
Total	​	$	1,465.0

Schedule of reconciliation of amount of unrecognized tax benefits

The total amount of unrecognized tax benefits in 2021, 2020 and 2019, was as follows (in millions):

​

​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Unrecognized tax benefits, opening balance	​	$	66.1	​	$	58.4	​	$	214.5
Gross decreases—tax positions in prior period	​		(10.9)	​		—	​		(7.5)
Gross increases—current-period tax positions	​		—	​		7.7	​		—
Gross decreases—current-period tax positions	​	​	(1.1)	​	​	—	​	​	(4.2)
Decreases related to settlements with taxing authorities	​		(54.1)	​		—	​		(144.4)
​	​		(66.1)	​		7.7	​		(156.1)
Unrecognized tax benefits, ending balance	​	$	—	​	$	66.1	​	$	58.4

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

​

​	​	​
Peru:		2016 and all subsequent years
U.S.:	​	2017 and all subsequent years
Mexico:	​	2016 and all subsequent years

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