XML 46 R16.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income and Mining Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME AND MINING TAXES | INCOME AND MINING TAXES The components of Income (loss) before income taxes are below:
| Year ended December 31,
In thousands | 2016 |  | 2015 |  | 2014
United States | $ | (13,112 | ) |  | $ | (43,924 | ) |  | $ | (213,883 | )
Foreign | 14,225 |  |  | (349,522 | ) |  | (1,401,245 | )
Total | $ | 1,113 |  |  | $ | (393,446 | ) |  | $ | (1,615,128 | )
The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:
| Year ended December 31,
In thousands | 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |  |  |  |
United States | $ | — |  |  | $ | 49 |  |  | $ | 904 |
United States — State mining taxes | (7,826 | ) |  | (4,305 | ) |  | (879 | )
United States — Foreign withholding tax | (4,263 | ) |  | — |  |  | (6,250 | )
Argentina | 10 |  |  | 715 |  |  | (71 | )
Australia | 14 |  |  | 130 |  |  | — |
Bolivia | 6,252 |  |  | (5,154 | ) |  | (4,008 | )
Canada | (1,841 | ) |  | (516 | ) |  | (145 | )
Mexico | (9,581 | ) |  | (476 | ) |  | (10,122 | )
Deferred: |  |  |  |  |
United States | 15,556 |  |  | 1,778 |  |  | 5,743 |
United States — State mining taxes | 748 |  |  | 1,952 |  |  | — |
Argentina | 115 |  |  | (1,197 | ) |  | 24,478 |
Australia | (1,638 | ) |  | 3,223 |  |  | (401 | )
Bolivia | — |  |  | — |  |  | 22,122 |
Canada | 1,338 |  |  | 2,875 |  |  | 2,662 |
Mexico | 55,383 |  |  | 27,189 |  |  | 394,221 |
New Zealand | (28 | ) |  | — |  |  | — |
Income tax (expense) benefit | $ | 54,239 |  |  | $ | 26,263 |  |  | $ | 428,254 |
The Company’s effective tax rate is impacted by recurring items, such as foreign exchange rates on deferred tax balances, uncertain tax positions, and the full valuation allowance on the deferred tax assets relating to losses in the United States and certain foreign jurisdictions. During the year ended December 31, 2016, the Company completed a legal entity reorganization to integrate recent acquisitions resulting in a valuation allowance release of $40.8 million and recorded a $15.0 million deferred tax benefit related to unremitted earnings. In addition, the Company's consolidated effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in our consolidated effective tax rate. A reconciliation of the Company’s effective tax rate with the federal statutory tax rate for the periods indicated is below:
| Year ended December 31,
In thousands | 2016 |  | 2015 |  | 2014
Income and mining tax (expense) benefit at statutory rate | $ | (390 | ) |  | $ | 137,706 |  |  | $ | 565,295 |
State tax provision from continuing operations | 336 |  |  | (2,075 | ) |  | 20,253 |
Change in valuation allowance | 61,146 |  |  | (101,027 | ) |  | (151,191 | )
Percentage depletion | 983 |  |  | — |  |  | — |
Uncertain tax positions | (4,619 | ) |  | (1,947 | ) |  | (4,425 | )
U.S. and foreign non-deductible expenses | (5,764 | ) |  | 1,365 |  |  | (4,892 | )
Mineral interest related | — |  |  | (19,310 | ) |  | — |
Foreign exchange rates | 19,701 |  |  | 22,350 |  |  | 23,672 |
Foreign inflation and indexing | 2,794 |  |  | 1,117 |  |  | 3,765 |
Foreign tax rate differences | 413 |  |  | (15,980 | ) |  | (63,930 | )
Foreign withholding and other taxes | (13,478 | ) |  | 8,140 |  |  | 82,884 |
Foreign tax credits and other, net | 102 |  |  | (4,076 | ) |  | (43,177 | )
Legal entity reorganization | (6,985 | ) |  | — |  |  | — |
Income and mining tax (expense) benefit | $ | 54,239 |  |  | $ | 26,263 |  |  | $ | 428,254 |
At December 31, 2016 and 2015, the significant components of the Company’s deferred tax assets and liabilities are below:
| Year ended December 31,
In thousands | 2016 |  | 2015
Deferred tax liabilities: |  |  |  |  |
Mexican mining tax | $ | — |  |  | $ | 15,451 |
Mineral properties | 69,799 |  |  | — |
Foreign subsidiaries — unremitted earnings | 1,302 |  |  | 12,999 |
Inventory | 4,426 |  |  | 2,353 |
Royalty and other long-term debt | 8,685 |  |  | 1,648 |
| $ | 84,212 |  |  | $ | 32,451 |
Deferred tax assets: |  |  |  |  |
Net operating loss carryforwards | 202,756 |  |  | 203,958 |
Mineral properties | — |  |  | 34,966 |
Property, plant, and equipment | 87,978 |  |  | 6,980 |
Mexico Mining Tax | 6,359 |  |  | — |
Capital loss carryforwards | 6,770 |  |  | 3,938 |
Asset retirement obligation | 25,255 |  |  | 21,480 |
Unrealized foreign currency loss and other | 7,413 |  |  | 8,424 |
Accrued expenses | 17,713 |  |  | 17,905 |
Tax credit carryforwards | 31,272 |  |  | 26,439 |
| 385,516 |  |  | 324,090 |
Valuation allowance | (375,911 | ) |  | (436,829 | )
| 9,605 |  |  | (112,739 | )
Net deferred tax liabilities | $ | 74,607 |  |  | $ | 145,190 |
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the section titled “Risk Factors” included in Item 1A. Based upon this analysis, the Company has recorded valuation allowances as follows:
| Year ended December 31,
In thousands | 2016 |  | 2015
U.S. | $ | 292,446 |  |  | $ | 292,677 |
Argentina | 6,197 |  |  | 8,376 |
Canada | 1,296 |  |  | 1,718 |
Bolivia | 37,372 |  |  | 45,177 |
Mexico | 13,033 |  |  | 63,373 |
New Zealand | 23,717 |  |  | 25,508 |
Other | 1,850 |  |  | — |
| $ | 375,911 |  |  | $ | 436,829 |
The Company has the following tax attribute carryforwards at December 31, 2016, by jurisdiction:
In thousands | U.S. |  | Argentina |  | Bolivia |  | Canada |  | Mexico |  | New Zealand |  | Other |  | Total
Regular net operating losses | $ | 330,469 |  |  | $ | 11,621 |  |  | $ | 63,005 |  |  | $ | 2,301 |  |  | $ | 91,383 |  |  | $ | 85,258 |  |  | $ | 63 |  |  | $ | 584,100 |
Alternative minimum tax net operating losses | 184,386 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 184,386 |
Capital losses | 19,315 |  |  | — |  |  | — |  |  | 79 |  |  | — |  |  | — |  |  | — |  |  | 19,394 |
Alternative minimum tax credits | 3,173 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,173 |
Foreign tax credits | 24,161 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,161 |
The U.S. net operating losses expire from 2019 through 2036; the Argentina net operating losses will expire from 2017 to 2021; the Bolivia net operating losses will expire from 2018 to 2020; the Canada net operating losses will expire from 2029 through 2036; and the Mexico net operating losses expire from 2017 to 2026. The remaining net operating losses from the foreign jurisdictions have an indefinite carryforward period. The majority of the U.S. capital losses will expire from 2020 and 2021. Alternative minimum tax credits do not expire and foreign tax credits expire if unused beginning in 2019. The Company intends to indefinitely reinvest earnings from Mexican operations. For the years 2016 and 2015, the Company had no unremitted earnings from this jurisdiction. A reconciliation of the beginning and ending amount related to unrecognized tax benefits is below (in thousands):
Unrecognized tax benefits at January 1, 2014 | $ | 16,084 |
Gross increase to current period tax positions | 1,030 |
Gross increase to prior period tax positions | 810 |
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | — |
Unrecognized tax benefits at December 31, 2015 | $ | 17,924 |
Gross increase to current period tax positions | 1,336 |
Gross increase to prior period tax positions | 4,854 |
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | (704 | )
Unrecognized tax benefits at December 31, 2016 | $ | 23,410 |
At December 31, 2016, 2015, and 2014, $19.6 million, $17.9 million, and $16.1 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company's effective tax rate. The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved. The Company files income tax returns in various U.S. federal and state jurisdictions, in all identified foreign jurisdictions, and various others. The statute of limitations remains open from 2012 for the US federal jurisdiction and from 2008 for certain other foreign jurisdictions. During 2014, the U.S. Internal Revenue Service concluded its examination of the Company's 2009, 2010, and 2011 tax years. As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions with respect to which none of these issues are individually significant, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $1.5 million and $2.5 million in the next 12 months. The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of $8.7 million, $9.2 million, and $6.9 million at December 31, 2016, 2015, and 2014, respectively.

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 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration