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Income and Mining Taxes | 12 Months Ended
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Dec. 31, 2017
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 | 2017 |  | 2016 |  | 2015
United States | $ | 10,099 |  |  | $ | (13,299 | ) |  | $ | (44,101 | )
Foreign | 29,824 |  |  | 2,487 |  |  | (272,785 | )
Total | $ | 39,923 |  |  | $ | (10,812 | ) |  | $ | (316,886 | )
The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:
| Year ended December 31,
In thousands | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |  |  |  |
United States | $ | 1,428 |  |  | $ | — |  |  | $ | 49 |
United States — State mining taxes | (6,016 | ) |  | (7,826 | ) |  | (4,305 | )
United States — Foreign withholding tax | (8,466 | ) |  | (1,838 | ) |  | — |
Argentina | 55 |  |  | 10 |  |  | 715 |
Australia | — |  |  | 14 |  |  | 130 |
Canada | 876 |  |  | (1,841 | ) |  | (516 | )
Mexico | (30,763 | ) |  | (9,581 | ) |  | (476 | )
Deferred: |  |  |  |  |
United States | 6,367 |  |  | (1,610 | ) |  | (564 | )
United States — State mining taxes | 1,052 |  |  | 748 |  |  | 1,952 |
Argentina | 1,531 |  |  | 115 |  |  | (1,197 | )
Australia | — |  |  | (1,638 | ) |  | 3,223 |
Canada | 104 |  |  | 1,338 |  |  | 2,875 |
Mexico | 4,805 |  |  | 55,383 |  |  | 27,189 |
New Zealand | 29 |  |  | (27 | ) |  | — |
Income tax (expense) benefit | $ | (28,998 | ) |  | $ | 33,247 |  |  | $ | 29,075 |
The Company’s effective tax rate is impacted by recurring items, such as foreign exchange rates on deferred tax balances, mining tax expense, full valuation allowance on the deferred tax assets relating to losses in the United States and certain foreign jurisdictions, and uncertain tax positions. 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. 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 | 2017 |  | 2016 |  | 2015
Income and mining tax (expense) benefit at statutory rate | $ | (14,037 | ) |  | $ | 3,718 |  |  | $ | 110,848 |
State tax provision from continuing operations | 26 |  |  | 336 |  |  | (2,075 | )
Change in valuation allowance | 86,712 |  |  | 40,517 |  |  | (70,457 | )
Effect of tax legislation | (88,174 | ) |  | — |  |  | — |
Percentage depletion | 703 |  |  | 983 |  |  | — |
Uncertain tax positions | 2,596 |  |  | (8,829 | ) |  | 170 |
U.S. and foreign permanent differences | 2,348 |  |  | (2,652 | ) |  | (3,376 | )
Mineral interest related | — |  |  | — |  |  | (18,318 | )
Foreign exchange rates | (14,180 | ) |  | 19,701 |  |  | 21,461 |
Foreign inflation and indexing | (2,346 | ) |  | (670 | ) |  | 1,117 |
Foreign tax rate differences | 2,929 |  |  | 120 |  |  | (14,062 | )
Mining, foreign withholding, and other taxes | (11,274 | ) |  | (11,052 | ) |  | 8,141 |
Other, net | 5,699 |  |  | — |  |  | (4,374 | )
Legal entity reorganization | — |  |  | (8,925 | ) |  | — |
Income and mining tax (expense) benefit | $ | (28,998 | ) |  | $ | 33,247 |  |  | $ | 29,075 |
At December 31, 2017 and 2016, the significant components of the Company’s deferred tax assets and liabilities are below:
| Year ended December 31,
In thousands | 2017 |  | 2016
Deferred tax liabilities: |  |  |  |  |
Mineral properties | $ | 143,773 |  |  | $ | 60,199 |
Unrealized foreign currency loss and other | 1,748 |  |  | — |
Inventory | 8,258 |  |  | 4,629 |
Royalty and other long-term debt | — |  |  | 8,685 |
| $ | 153,779 |  |  | $ | 73,513 |
Deferred tax assets: |  |  |  |  |
Net operating loss carryforwards | $ | 155,512 |  |  | $ | 186,005 |
Property, plant, and equipment | 60,286 |  |  | 60,828 |
Mining Royalty Tax | 11,797 |  |  | 6,359 |
Capital loss carryforwards | 19,881 |  |  | 6,770 |
Asset retirement obligation | 25,309 |  |  | 26,951 |
Foreign subsidiaries - unremitted earnings | 1,842 |  |  | 3,685 |
Unrealized foreign currency loss and other | 218 |  |  | 7,413 |
Accrued expenses | 13,512 |  |  | 15,193 |
Tax credit carryforwards | 45,277 |  |  | 29,227 |
| 333,634 |  |  | 342,431 |
Valuation allowance | (282,868 | ) |  | (338,539 | )
| 50,766 |  |  | 3,892 |
Net deferred tax liabilities | $ | 103,013 |  |  | $ | 69,621 |
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 | 2017 |  | 2016
U.S. | $ | 235,395 |  |  | $ | 292,446 |
Argentina | 3,914 |  |  | 6,197 |
Canada | 2,455 |  |  | 1,296 |
Mexico | 17,087 |  |  | 13,033 |
New Zealand | 23,792 |  |  | 23,717 |
Other | 225 |  |  | 1,850 |
| $ | 282,868 |  |  | $ | 338,539 |
The Company has the following tax attribute carryforwards at December 31, 2017, by jurisdiction:
In thousands | U.S. |  | Canada |  | Mexico |  | New Zealand |  | Other |  | Total
Regular net operating losses | $ | 369,973 |  |  | $ | 39,833 |  |  | $ | 56,958 |  |  | $ | 86,165 |  |  | $ | 12,436 |  |  | $ | 565,365 |
Expiration years | 2019-2037 |  | 2029-2036 |  | 2017-2026 |  | Indefinite |  | 2017-2021 |  |
Alternative minimum tax net operating losses | 179,882 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 179,882 |
Capital losses | 72,772 |  |  | 14,018 |  |  | — |  |  | — |  |  | — |  |  | 86,790 |
Alternative minimum tax credits | 1,654 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,654 |
Foreign tax credits | 41,730 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 41,730 |
The majority of the U.S. capital losses will expire from 2020 through 2022. 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. A reconciliation of the beginning and ending amount related to unrecognized tax benefits is below (in thousands):
Unrecognized tax benefits at December 31, 2015 | $ | 2,131 |
Gross increase to current period tax positions | 239 |
Gross increase to prior period tax positions | 5,187 |
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | (400 | )
Unrecognized tax benefits at December 31, 2016 | $ | 7,157 |
Gross increase to current period tax positions | 202 |
Gross increase to prior period tax positions | 316 |
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | (2,351 | )
Unrecognized tax benefits at December 31, 2017 | $ | 5,324 |
At December 31, 2017, 2016, and 2015, $4.3 million, $5.1 million, and $1.2 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 2014 for the US federal jurisdiction and from 2008 for certain other foreign jurisdictions. 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 $4.8 million, $5.5 million, and $0.7 million at December 31, 2017, 2016, and 2015, respectively. On December 22, 2017, the United States (“U.S.”) enacted significant changes to U.S. tax law following the passage and signing of H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” which makes widespread changes to the Internal Revenue Code, including, among other items, a reduction in the federal corporate tax rate to 21%, effective January 1, 2018. The Company is subject to the provisions of the Financial Accounting Standards Board (“FASB”) ASC 740-10, Income Taxes, which requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The carrying value of our U.S. deferred taxes is determined by the enacted U.S. corporate income tax rate. Consequently, the reduction in the U.S. corporate income tax rate impacts the carrying value of our deferred tax assets. Under the new corporate income tax rate of 21%, the U.S. net deferred tax asset position will decrease as will the related valuation allowance. The net effect of the tax reform enactment on the financial statements is minimal. While there are certain aspects of the new tax law that will not impact the Company based on its tax attributes, such as the one-time transition tax on unremitted foreign earnings; there are other aspects of the law, which could have a positive impact on the Company’s future U.S. income tax expense, including the elimination of the U.S. corporate alternative minimum tax. However, uncertainty regarding the impact of tax reform remains, as a result of factors including future regulatory and rulemaking processes, the prospects of additional corrective or supplemental legislation, potential trade or other litigation, and other factors.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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