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Note 3 - Income Taxes | 9 Months Ended
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Sep. 30, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 3. Income Taxes Major components of our income tax (benefit) provision for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | — |  |  | $ | 4,123 |  |  | $ | (12,797 | ) |  | $ | 4,122 |
Foreign |  |  | (3,959 | ) |  |  | 5,773 |  |  |  | 17,491 |  |  |  | 8,416 |
Total current income tax (benefit) provision |  |  | (3,959 | ) |  |  | 9,896 |  |  |  | 4,694 |  |  |  | 12,538 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | 1,980 |  |  |  | (5,723 | ) |  |  | (13,958 | ) |  |  | 3,642 |
Foreign |  |  | (3,422 | ) |  |  | 5,280 |  |  |  | (9,113 | ) |  |  | 6,423 |
Total deferred income tax (benefit) provision |  |  | (1,442 | ) |  |  | (443 | ) |  |  | (23,071 | ) |  |  | 10,065 |
Total income tax (benefit) provision |  | $ | (5,401 | ) |  | $ | 9,453 |  |  | $ | (18,377 | ) |  | $ | 22,603 |
As of September 30, 2017, we have a net deferred tax asset in the U.S. of $44.7 million and a net deferred tax liability in Canada of $122.7 million, for a consolidated worldwide net deferred tax liability of $78.0 million. Our ability to utilize our deferred tax assets depends on future taxable income generated from operations. In the first quarter of 2017, we received consent from the Internal Revenue Service to permit us to take a different income tax position relating to the timing of deductions for the #4 Shaft development costs at Lucky Friday. This tax accounting method change substantially revised the timing of deductions for these costs for regular tax and Alternative Minimum Tax ("AMT") relative to our projected life of mine and projected taxable income. These timing changes caused us to revise our assessment of the ability to generate sufficient future taxable income to realize our deferred tax assets, resulting in a valuation allowance release of approximately $15 million. At September 30, 2017 and December 31, 2016, the balances of the valuation allowances on our deferred tax assets were $72 million and $100 million, respectively, primarily for net operating losses and tax credit carryforwards. The amount of the deferred tax asset considered recoverable, however, could be reduced in the near term if estimates of future taxable income are reduced. The current income tax provisions for the three and nine months ended September 30, 2017 and 2016 vary from the amounts that would have resulted from applying the statutory income tax rate to pre-tax income due primarily to the impact of the change in accounting method treatment of the #4 Shaft development costs described above, the impact of taxation in foreign jurisdictions, and the Company's status as an indefinite AMT taxpayer. We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate ("AETR") for the full fiscal year to “ordinary” pretax income or loss (excluding unusual or infrequently occurring discrete items) for the reporting period. We have determined that since small changes in estimated annual “ordinary” pre-tax income would result in significant changes in the estimated AETR, the AETR method would not provide a reliable estimate for the fiscal three - and nine -month periods ended September 30, 2017. Therefore, we have used a discrete effective tax rate method to calculate taxes for the fiscal three - and nine -month periods ended September 30, 2017.

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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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