Income And Mining Tax Expense (Tables)

12 Months Ended

Dec. 31, 2012

Fiscal Year Ended December 31,						Six Months Ended December 31,			Fiscal Year Ended June 30,
	2012			2011			2010			2010
Current income taxes
South Africa		(72.4	)		(108.3	)		(39.0	)		(67.7	)
Ghana		(170.6	)		(180.5	)		(73.4	)		(98.6	)
Australia		(64.1	)		(35.9	)		—			(16.5	)
Peru		(104.7	)		(111.7	)		(47.1	)		(51.2	)

Current income and mining taxes		(411.8	)		(436.4	)		(159.5	)		(234.0	)

Deferred income taxes
South Africa		149.6			(70.1	)		44.9			(58.6	)
Ghana		(36.8	)		(12.0	)		4.5			(28.1	)
Australia		(4.8	)		(51.3	)		(22.9	)		(12.3	)
Peru		11.9			17.8			(0.8	)		(25.4	)

Deferred income and mining taxes		119.9			(115.6	)		25.7			(124.4	)

Total income and mining taxes		(291.9	)		(552.0	)		(133.8	)		(358.4	)

Pre-Tax Income Before Impairment of Equity Investee and Share of Equity Investee's Share of Losses

The Company’s pre-tax income before impairment of equity investee and share of equity investees’ share of losses comprise:


	Fiscal Year Ended December 31,				Six Months Ended December 31,			Fiscal Year Ended June 30,
	2012		2011		2010			2010
South Africa		113.9		378.5		(221.0	)		192.0
Ghana		441.6		624.9		216.8			343.1
Australia		156.5		258.8		77.3			55.7
Peru		259.6		241.1		139.4			164.6
British Virgin Islands		24.5		4.5		(17.7	)		96.0

		996.1		1,507.8		194.8			851.4

Major Items Causing Income Tax Provision to Differ from South African Mining Statutory Rate

Fiscal Year Ended December 31,						Six Months Ended December 31,			Fiscal Year Ended June 30,
	2012			2011			2010			2010
South African mining tax on mining income, an income tax, is determined on a formula basis which takes into account the profit and revenue from mining operations during the period. Non-mining income is taxed at a standard rate. Deferred tax is provided at the estimated effective mining tax rate on temporary differences. The applicable tax rates are:
South Africa:
Mining statutory rate		34.0	%		43.0	%		43.0	%		43.0	%
Non-mining income standard tax rate		28.0	%		35.0	%		35.0	%		35.0	%
Non-mining companies		28.0	%		28.0	%		28.0	%		28.0	%
Ghana		35.0	%		25.0	%		25.0	%		25.0	%
Australia		30.0	%		30.0	%		30.0	%		30.0	%
Peru		30.0	%		30.0	%		35.6	%		35.6	%
Major items causing the Group’s income tax provision to differ from the South African mining statutory rate were:
Tax on income before tax, impairment of investment in equity investee and share of equity investees’ profits/(losses) at South African mining statutory rate		(338.7	)		(648.4	)		(83.7	)		(366.1	)
Rate adjustment to reflect company tax rates		17.8			239.2			74.3			62.7
South African mining tax formula rate adjustment		34.5			11.9			10.4			16.6
Valuation allowance raised against deferred tax assets		—			—			—			(8.3	)
Reversal of valuation allowance previously raised against deferred tax assets³		58.2			22.0			10.3			0.1
Non taxable income/non deductible expenditure¹		(116.1	)		(199.0	)		(197.6	)		27.4
South African capital gains tax		—			—			—			(23.9	)
Royalties²		—			—			—			(71.6	)
Deferred tax adjustment on changes in tax rates at the South African and Ghanaian operations (2011: Peruvian operation and for six months ended December 31, 2010: South African operations)		73.7			9.1			61.3			—
Other		(21.3	)		13.2			(8.8	)		4.7

Income and mining tax expense		(291.9	)		(552.0	)		(133.8	)		(358.4	)

The $116.1 million (fiscal year ended December 31, 2011: $199.0 million, six months ended December 31, 2010: $197.6 million) non-deductible expenditure comprises mainly $23.8 million (fiscal year ended December 31, 2011: $24.5 million, six months ended December 31, 2010: $11.6 million) share-based-compensation, $nil million (fiscal year ended December 31, 2011: $nil million, six months ended December 31, 2010: $128.0 million) empowerment transaction costs and $74.4 million (fiscal year ended December 31, 2011: $92.8 million, six months ended December 31, 2010: $25.9 million) exploration, feasibility and evaluation costs. There are no other individually significant amounts included in this line item.

The classification of royalty expense at the Group’s operations requires judgement, particularly at the Groups’ South African and Ghanian operations, where the percentages to be applied in calculating royalties are influenced by the expenses incurred in generating those product sales (and therefore the profitability of the operations). In light of the continued increase in royalties at the Group’s international operations, and the fact that changes to the calculation of royalties in Ghana, representing the largest component of consolidated royalty expense, changed to a predetermined 5% of product sales (regardless of the operating margin), Gold Fields changed the classification of royalty expense in its consolidated financial statements from a component of “income and mining taxes” to “other expenses” in its consolidated statements of operations starting with the six months ended December 31, 2010. Given the change in circumstances, Gold Fields considered it appropriate to change the presentation on a prospective basis.

During fiscal year ended December 31, 2012, the Group reversed a portion of the valuation allowance against unredeemed capital expenditure and net operating losses to the extent that there is sufficient future taxable income. In making this determination, the Group analyzed, amongst other things, the recent history of earnings and cashflows, forecasts of future earnings, the nature and timing of future deductions and benefits represented by deferred tax assets and the cumulative earnings for the last three years.

No provision is made for the income tax effect that may arise on the remittance of unremitted earnings by certain foreign subsidiaries. It is management’s intention that these earnings will be permanently re-invested into future capital expansion projects, maintenance capital and ongoing working capital funding requirements. In the event that the Group repatriated these earnings, income taxes and withholding taxes may be incurred. The determination of such taxes is subject to various complex calculations and accordingly, the Group has determined that it is impractical to estimate the amount of deferred tax liability on such unremitted earnings.

The Group does not have any uncertain tax benefits which will more likely than not result in changes to tax liabilities.

Deferred Income and Mining Tax Liabilities and Assets


	December 31, 2012			December 31, 2011
Deferred income and mining tax liabilities and assets on the balance sheet as of December 31, 2012 and 2011 relate to the following:
Deferred income and mining tax liabilities
Mining assets		1,608.0			1,803.8
Investments held by environmental trust funds		45.3			77.3
Inventory		15.3			9.3
Other		13.1			45.8

Gross deferred income and mining tax liabilities		1,681.7			1,936.2

Provisions, including rehabilitation accruals		(144.6	)		(149.0	)
Tax losses		(183.0	)		(278.1	)
Unredeemed capital expenditure		(782.9	)		(630.0	)
Other		—			(3.7	)

Gross deferred income and mining tax assets		(1,110.5	)		(1,060.8	)
Valuation allowance for deferred tax assets		324.4			152.4

Total deferred income and mining tax assets		(786.1	)		(908.4	)

Total deferred income and mining tax liabilities		895.6			1,027.8
Less: short term portion of deferred income and mining tax (included in accounts payable and provisions)		(17.9	)		(8.4	)

Long-term portion of deferred income and mining tax liabilities		877.7			1,019.4

Classified as:
Long-term liabilities		(901.8	)		(1,019.4)
Long-term assets		24.1			—

Valuation Allowance for Deferred Tax Assets

The valuation allowance relates primarily to net operating loss carry-forwards for the entities below, except for Living Gold (Pty) Limited, and GFI Joint Venture Holdings, or GFIJVH, which also include unredeemed capital expenditure.


	December 31, 2012		December 31, 2011
Orogen Investments SA (Luxembourg)		37.9		39.2
Gold Fields Arctic Platinum Oy		28.8		30.3
Living Gold (Pty) Limited		4.8		3.9
Gold Fields Operations		—		33.2
GFI Joint Venture Holdings		252.3		44.6
Other		0.6		1.2

		324.4		152.4

Unredeemed Capital Expenditure and Tax Loss Carry Forwards

As at December 31, 2012 and December 31, 2011 the Group had unredeemed capital expenditure and tax loss carry forwards available for deduction against future mining income at its operations as follows:


	December 31, 2012		December 31, 2011
Unredeemed capital expenditure:
Gold Fields Operations		724.3		608.4
GFI Joint Venture Holdings		1,885.4		1,049.4

		2,609.7		1,657.8

Estimated Capital Allowances

The estimated capital allowances do not have an expiration date. Gold Fields La Cima, or La Cima, currently has no tax losses available for utilization against future profits.


	December 31, 2012		December 31, 2011
Calculated tax losses:
Gold Fields Operations		404.9		484.4
GFI Joint Venture Holdings		—		12.6
Gold Fields Group Services (Pty) Limited		15.2		10.0
Golden Oils (Pty) Limited		—		1.2
Agrihold (Pty) Limited		2.1		1.9
Golden Hytec Farming (Pty) Limited		—		1.1
Living Gold (Pty) Limited		17.1		14.1

		439.3		525.3

Tax Years Open for Assessments


Tax years open for assessments
South Africa ⁽¹⁾		2001 - 2011
Ghana ⁽²⁾		All years open
Australia ⁽³⁾		2002 - 2011
Peru ⁽⁴⁾		2005 - 2011

Notes:

(1)

The South African Tax legislation allows the Revenue Authorities to reopen assessments issued for a period of up to 3 years after the assessments were issued.

(2)

The Ghanaian Tax Authorities have the right to examine and, if necessary, amend the income tax determined by the relevant Group entity for any year without limitation to the years which may be reassessed.

(3)

The Australian Tax Authorities have the right to examine and, if necessary, amend the income tax determined by the relevant Group entity in the last four years, as from the date the tax returns have been filed.

(4)

The Peruvian Tax Authorities have the right to examine and, if necessary, amend the income tax determined by the relevant Group entity in the last four years, as from the date the tax returns have been filed.

- 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+ Details

- Definition

Tabular disclosure of other tax carryforwards available to reduce future taxable income including descriptions, amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

+ References+ Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References+ Details