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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Disclosure of income tax [Abstract] |
Components of income tax expense | Components of Income Tax Expense
|  | 2017 |  |  | 2016 |
Current tax expense (recovery) |  |  |  |  |  |
Recognized in profit or loss in current year |  | $ | 66,345 |  |  | $ | 44,751 |
Adjustments recognized in the current year with respect to prior years |  | (3,468 | ) |  | (720 | )
|  | 62,877 |  |  | 44,031 |
Deferred tax expense (recovery) |  |  |  |  |  |
Deferred tax (recovery) expense recognized in the current year |  | (898 | ) |  | 27,942 |
Adjustments recognized in the current year with respect to prior years |  | (1,539 | ) |  | 1,124 |
Adjustments to deferred tax attributable to changes in tax rates and laws |  | — |  |  | 1,302 |
Increase in deferred tax liabilities due to tax impact of reversals of mineral properties, plant, and equipment impairments (Note 10,11) |  | 17,770 |  |  | — |
Recognition of previously unrecognized deferred tax assets |  | (10,275 | ) |  | — |
Benefit from previously unrecognized losses, and other temporary differences |  | (6,487 | ) |  | (7,861 | )
Increase in deferred tax liabilities due to tax impact of net realizable value (charge) reversal to inventory (Note 21) |  | (2,414 | ) |  | 7,908 |
|  | (3,843 | ) |  | 30,415 |
Income tax expense |  | $ | 59,034 |  |  | $ | 74,446 |
Reconciliation of effective income tax rate | Reconciliation of Effective Income Tax Rate
|  | 2017 |  |  | 2016 |
Earnings before taxes and non-controlling interest |  | $ | 182,485 |  |  | $ | 176,271 |
Statutory Canadian income tax rate |  | 26.00 | % |  | 26.00 | %
Income tax expense based on above rates |  | $ | 47,446 |  |  | $ | 45,830 |
Increase (decrease) due to: |  |  |  |
Non-deductible expenditures |  | 4,618 |  |  | 5,082 |
Foreign tax rate differences |  | 3,644 |  |  | 9,729 |
Change in net deferred tax assets not recognized: |  |  |  |
- Argentina exploration expenditures |  | 2,051 |  |  | 1,794 |
- Other deferred tax assets |  | (10,752 | ) |  | (14,406 | )
Non-taxable portion of net earnings of affiliates |  | (4,055 | ) |  | (4,852 | )
Changes to temporary differences |  | — |  |  | 1,429 |
Tax on sale of royalty |  | 1,400 |  |  | — |
Effect of other taxes paid (mining and withholding) |  | 20,065 |  |  | 13,678 |
Effect of foreign exchange on tax expense |  | (3,928 | ) |  | 10,462 |
Non-taxable impact of foreign exchange |  | 2,937 |  |  | 3,861 |
Change in current tax expense estimated for prior years |  | (3,503 | ) |  | — |
Other |  | (889 | ) |  | 1,839 |
Income tax expense |  | $ | 59,034 |  |  | $ | 74,446 |
Effective income tax rate |  | 32.35 | % |  | 42.23 | %
Analysis of deferred tax assets and liabilities | The following is the analysis of the deferred tax assets (liabilities) presented in the consolidated financial statements:
|  | 2017 |  |  | 2016 |
Net deferred tax liability, beginning of year |  | $ | (169,136 | ) |  | $ | (138,397 | )
Recognized in net earnings for the year |  | 3,843 |  |  | (30,415 | )
Reduction due to Mexican de-consolidation payments applied to current tax |  | (3,231 | ) |  | (383 | )
Other |  | (25 | ) |  | 59 |
Net deferred liability, end of year |  | $ | (168,549 | ) |  | $ | (169,136 | )
Deferred tax assets |  | 2,679 |  |  | 1,727 |
Deferred tax liabilities |  | (171,228 | ) |  | (170,863 | )
Net deferred tax liability |  | $ | (168,549 | ) |  | $ | (169,136 | )
Components of deferred tax assets and liabilities | The deferred tax assets (liabilities) are comprised of the various temporary differences as detailed below:
|  | 2017 |  |  | 2016 |
Deferred tax assets (liabilities) arising from: |  |  |  |  |  |
Closure and decommissioning costs |  | $ | 7,019 |  |  | $ | 7,133 |
Tax losses and mining tax credits |  | 24,014 |  |  | 26,646 |
Deductible Mexican mining taxes |  | 2,792 |  |  | 2,344 |
Tax credit resulting from Mexican de-consolidation |  | 1,385 |  |  | 4,790 |
Accounts payable and accrued liabilities |  | 3,047 |  |  | 2,373 |
Trade and other receivables |  | 21,527 |  |  | 10,526 |
Provision for doubtful debts and inventory adjustments |  | (14,517 | ) |  | (16,261 | )
Mineral properties, plant, and equipment |  | (186,641 | ) |  | (192,046 | )
Estimated sales provisions |  | (28,726 | ) |  | (14,907 | )
Other temporary differences and provisions |  | 1,551 |  |  | 266 |
Net deferred tax liability |  | $ | (168,549 | ) |  | $ | (169,136 | )
Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognised | Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognized are attributable to the following:
|  | 2017 |  |  | 2016 |
Tax loss (revenue in nature) |  | $ | 165,180 |  |  | $ | 171,077 |
Net tax loss (capital in nature) |  | 15,423 |  |  | 18,759 |
Resource pools and other tax credits |  | 18,609 |  |  | 20,116 |
Financing fees |  | 1,464 |  |  | 1,803 |
Mineral properties, plant, and equipment |  | 20,441 |  |  | 34,268 |
Closure and decommissioning costs |  | 42,484 |  |  | 34,809 |
Exploration and other expenses not currently deductible |  | 54,672 |  |  | 62,503 |
Intercompany debt |  | 8,061 |  |  | 34,769 |
Doubtful debt and inventory |  | 16,602 |  |  | 13,997 |
Deferred income and estimated sales |  | — |  |  | 924 |
Deductible Mexican mining taxes |  | 77 |  |  | 335 |
Payroll and vacation accruals |  | 2,015 |  |  | 3,174 |
Other temporary differences |  | 2,601 |  |  | 2,532 |
|  | $ | 347,629 |  |  | $ | 399,066 |
Schedule of operating loss carryforwards | Included in the above amounts are operating losses, which if not utilized will expire as follows:
At December 31, 2017,
|  | Canada |  | US |  | Peru |  | Mexico |  | Barbados |  | Argentina |  |  | Total |
2018 |  | — |  |  | 120 |  |  | — |  |  | — |  |  | 6 |  |  | 50 |  |  | 176 |
2019 |  | — |  |  | 86 |  |  | — |  |  | — |  |  | 4 |  |  | 90 |  |  | 180 |
2020 – and after |  | 122,853 |  |  | 13,289 |  |  | — |  |  | 20,925 |  |  | 93 |  |  | 7,664 |  |  | 164,824 |
Total tax losses |  | $ | 122,853 |  |  | $ | 13,495 |  |  | $ | — |  |  | $ | 20,925 |  |  | $ | 103 |  |  | $ | 7,804 |  |  | 165,180 |
At December 31, 2016, |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Canada |  | US |  | Peru |  | Mexico |  | Barbados |  | Argentina |  |  | Total |
2017 |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
2018 |  | — |  |  | 120 |  |  | — |  |  | — |  |  | 6 |  |  | 7 |  |  | 133 |
2019 – and after |  | 116,009 |  |  | 13,642 |  |  | 39,057 |  |  | 2,160 |  |  | 47 |  |  | 24 |  |  | 170,939 |
Total tax losses |  | $ | 116,009 |  |  | $ | 13,762 |  |  | $ | 39,057 |  |  | $ | 2,160 |  |  | $ | 58 |  |  | $ | 31 |  |  | $ | 171,077 |

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