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INCOME TAXES | 12 Months Ended
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Jun. 30, 2019
INCOME TAXES |
INCOME TAXES | 9. INCOME TAXES For financial reporting purposes, Income (loss) before income taxes includes the following components:
|  | Fiscal Year Ended June 30,
|  | 2019 |  | 2018 |  | 2017
|  | (Amounts in thousands)
United States |  | $ | (3,776) |  | $ | (39,662) |  | $ | 15,253
Foreign |  |  | 110,353 |  |  | (64,917) |  |  | 103,613
|  | $ | 106,577 |  | $ | (104,579) |  | $ | 118,866
The Company’s Income tax expense consisted of:
|  | Fiscal Year Ended June 30,
|  | 2019 |  | 2018 |  | 2017
|  | (Amounts in thousands)
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (6,974) |  | $ | 24,621 |  | $ | 13,975
State |  |  | (13) |  |  | 253 |  |  | 308
Foreign |  |  | 26,230 |  |  | 22,741 |  |  | 10,602
|  | $ | 19,243 |  | $ | 47,615 |  | $ | 24,885
Deferred and others: |  |  |  |  |  |  |  |  |
Federal |  | $ | 916 |  | $ | (2,253) |  | $ | (1,443)
State |  |  | 17 |  |  | (223) |  |  | (18)
Foreign |  |  | (2,678) |  |  | (30,367) |  |  | 3,017
|  | $ | (1,745) |  | $ | (32,843) |  | $ | 1,556
Total income tax expense |  | $ | 17,498 |  | $ | 14,772 |  | $ | 26,441
The provision for income taxes for the fiscal years ended June 30, 2019, 2018 and 2017, differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to pre‑tax income (net of non‑controlling interest in income of consolidated subsidiary and loss from equity investment) from operations as a result of the following differences:
|  | Fiscal Year Ended June 30,
|  | 2019 |  | 2018 |  | 2017
|  | (Amounts in thousands)
Total expense computed by applying federal rates |  | $ | 22,381 |  | $ | (29,343) |  | $ | 41,603
State and provincial income taxes, net of federal benefit |  |  | 135 |  |  | (104) |  |  | 78
Excess depletion |  |  | (867) |  |  | (1,440) |  |  | (1,517)
Estimates for uncertain tax positions |  |  | 3,180 |  |  | 8,574 |  |  | 2,870
Statutory tax attributable to non-controlling interest |  |  | 1,013 |  |  | 1,736 |  |  | 3,162
Effect of foreign earnings |  |  | (6,921) |  |  | 1,230 |  |  | 3,046
Effect of foreign earnings indefinitely reinvested |  |  | — |  |  | (19,004) |  |  | (22,922)
Realized foreign exchange gains |  |  | — |  |  | 18,330 |  |  | —
Unrealized foreign exchange gains |  |  | (38) |  |  | (1,610) |  |  | (746)
Effects of US income tax reform |  |  | — |  |  | 30,675 |  |  | —
Changes in estimates |  |  | (1,538) |  |  | (70) |  |  | (3,676)
Valuation allowance |  |  | (47) |  |  | 6,337 |  |  | 4,374
Other |  |  | 200 |  |  | (539) |  |  | 169
|  | $ | 17,498 |  | $ | 14,772 |  | $ | 26,441
The current year effective tax rate includes the impact of changes in estimates primarily due to the Company’s analysis of the Tax Cuts and Jobs Act, partially offset by the effect of the newly enacted global intangible low-taxed income (“GILTI”) tax regime. The tax effects of temporary differences and carryforwards, which give rise to our deferred tax assets and liabilities at June 30, 2019 and 2018, are as follows:
|  | 2019 |  | 2018
|  | (Amounts in thousands)
Deferred tax assets: |  |  |  |  |  |
Stock-based compensation |  | $ | 1,118 |  | $ | 805
Net operating losses |  |  | 56 |  |  | 1,933
Foreign tax credits |  |  | 11,125 |  |  | 11,172
Other |  |  | 7,960 |  |  | 7,346
Total deferred tax assets |  |  | 20,259 |  |  | 21,256
Valuation allowance |  |  | (12,764) |  |  | (12,811)
Net deferred tax assets |  | $ | 7,495 |  | $ | 8,445
Deferred tax liabilities: |  |  |  |  |  |
Mineral property basis |  | $ | (74,360) |  | $ | (74,274)
Unrealized foreign exchange gains |  |  | (582) |  |  | (664)
2019 Notes |  |  | — |  |  | (2,631)
Investment in Peak Gold joint venture |  |  | (4,353) |  |  | (4,359)
Other |  |  | (150) |  |  | (213)
Total deferred tax liabilities |  |  | (79,445) |  |  | (82,141)
Total net deferred taxes |  | $ | (71,950) |  | $ | (73,696)
The Company reviews the measurement of its deferred tax assets at each balance sheet date. The Company’s analysis indicates a cumulative three-years of historical losses in the U.S., primarily as the result of fiscal year 2018 impairments of certain non-producing assets. Considering all available positive and negative evidence, including but not limited to recent earnings history and forecasted future results, the Company believes it is more likely-than-not that all net deferred tax assets not currently burdened with a valuation allowance will be fully realized. As of June 30, 2019, and 2018, the Company recorded a valuation allowance of $12.8 million. The valuation allowance remaining at June 30, 2019 is attributable to US foreign tax credits and capital loss carryforwards in non‑US subsidiaries. At June 30, 2019 and 2018, the Company had $0.2 million and $7.1 million of net operating loss carry forwards, respectively. The decrease in the net operating loss carry forwards is primarily attributable to the utilization of net operating losses by non‑U.S. subsidiaries. The majority of the tax loss carry forwards are in jurisdictions that allow a twenty-year carry forward period. As a result, these losses do not begin to expire until the 2038 tax year, and the Company anticipates the losses will be fully utilized. As of June 30, 2019, and 2018, the Company had $36.5 million and $36.3 million of unrecognized tax benefits, respectively. If recognized, these unrecognized tax benefits would positively impact the Company’s effective income tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | 2019 |  | 2018 |  | 2017
|  | (Amounts in thousands)
Total gross unrecognized tax benefits at beginning of year |  | $ | 36,346 |  | $ | 28,542 |  | $ | 26,960
Additions / Reductions for tax positions of current year |  |  | 1,709 |  |  | 1,624 |  |  | 1,394
Additions / Reductions for tax positions of prior years |  |  | (912) |  |  | 6,180 |  |  | 188
Reductions due to settlements with taxing authorities |  |  | (596) |  |  | — |  |  | —
Reductions due to lapse of statute of limitations |  |  | — |  |  | — |  |  | —
Total amount of gross unrecognized tax benefits at end of year |  | $ | 36,547 |  | $ | 36,346 |  | $ | 28,542
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non‑U.S. income tax examinations by tax authorities for fiscal years before 2014. As a result of (i) statutes of limitation that will begin to expire within the next 12 months in various jurisdictions, (ii) possible settlements of audit‑related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, and (iii) additional accrual of exposure and interest on existing items, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will not decrease in the next 12 months. The Company’s continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At June 30, 2019 and 2018, the amount of accrued income‑tax‑related interest and penalties was $12.6 million and $9.8 million, respectively. The gross unrecognized tax benefits reflected in the tabular reconciliation do not include interest and penalties and are not reduced by advanced deposits of $12.6 million made to taxing authorities.

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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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