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INCOME AND MINING TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME AND MINING TAXES | INCOME AND MINING TAXES The following tables represent the major components of Income before taxes and Income and mining tax benefit (expense) recognized in the Consolidated Statements of Operations (in thousands):
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Income before income and mining taxes components: |  |  |  |  |  |  |  |  |
United States |  | $ | 138,230 |  |  | $ | 119,654 |  |  | $ | 61,198 |
Canada |  |  | 26,752 |  |  |  | 26,207 |  |  |  | 71,537 |
Turkey |  |  | 186,971 |  |  |  | 41,385 |  |  |  | — |
Other Foreign |  |  | 62,805 |  |  |  | 14,545 |  |  |  | 3,922 |
Total income before incomes taxes |  | $ | 414,758 |  |  | $ | 201,791 |  |  | $ | 136,657 |
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current income tax provision: |  |  |  |  |  |  |  |
United States | $ | 15,603 |  |  | $ | 13,945 |  |  | $ | 6,003 |
Canada |  | 27,672 |  |  |  | 5,720 |  |  |  | 18,367 |
Turkey |  | 49,851 |  |  |  | 1,805 |  |  |  | — |
Other Foreign |  | 23,328 |  |  |  | 1,074 |  |  |  | 426 |
Total current income tax provision |  | 116,454 |  |  |  | 22,544 |  |  |  | 24,796 |
Deferred income tax provision (benefit): |  |  |  |  |  |  |  |
United States |  | 13,288 |  |  |  | 8,265 |  |  |  | 7,145 |
Canada |  | (230) |  |  |  | 765 |  |  |  | 520 |
Turkey |  | (131,456) |  |  |  | 19,205 |  |  |  | — |
Other foreign |  | (12,172) |  |  |  | (7,576) |  |  |  | 2,978 |
Total deferred income tax provision (benefit) |  | (130,570) |  |  |  | 20,659 |  |  |  | 10,643 |
Total income tax provision (benefit) | $ | (14,116) |  |  | $ | 43,203 |  |  | $ | 35,439 |
Income and mining tax expense differs from the amount that would be computed by applying the Canadian statutory rate of 27%, 27%, and 27% for the years ended December 31, 2021, 2020 and 2019, respectively, to income before income and mining taxes. The reasons for the differences are as follows (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Income before income and mining taxes |  | $ | 414,758 |  | $ | 201,791 |  | $ | 136,657
Statutory tax rate |  |  | 27 | % |  |  | 27 | % |  |  | 27 | %
Expected income and mining tax expense |  |  | 111,985 |  |  | 54,484 |  |  | 36,897
Increase (decrease) attributable to: |  |  |  |  |  |  |  |  |
Non-taxable items |  |  | (4,379) |  |  | (22,236) |  |  | (7,518)
Foreign exchange and inflation |  |  | (124,946) |  |  | (676) |  |  | 1,650
Differences in foreign and future tax rates |  |  | 738 |  |  | (10,641) |  |  | (8,699)
Investment incentive tax credits |  |  | (14,082) |  |  | 1,983 |  |  | —
Mining taxes and overseas withholding tax |  |  | 17,528 |  |  | 17,006 |  |  | 10,207
Expired losses |  |  | 1,455 |  |  | 1,129 |  |  | 738
Change in estimates in respect of prior years |  |  | (2,046) |  |  | (1,616) |  |  | (2,316)
Changes in recognition of deferred tax assets |  |  | 1,086 |  |  | 3,550 |  |  | 4,074
Other |  |  | (1,455) |  |  | 220 |  |  | 406
Total income and mining tax expense |  | $ | (14,116) |  | $ | 43,203 |  | $ | 35,439
The significant components of Deferred income tax assets and Deferred income tax liabilities were (in thousands):
| December 31,
| 2021 |  | 2020
Deferred income tax assets |  |  |  |  |
Deductible temporary differences relating to: |  |  |  |  |
Marketable securities | $ | 634 |  |  | $ | — |
Inventories |  | — |  |  |  | 3,245
Reclamation liabilities |  | 27,608 |  |  | 20,117
Lease liabilities |  | 23,895 |  |  | 24,307
Deductibility of other taxes |  | 9,299 |  |  | 10,770
S tock-based compensation |  | 7,247 |  |  | 11,410
Other items |  | 16,595 |  |  | 7,873
|  | 85,278 |  |  | 77,722
Investment incentive tax credits (1) |  | 46,354 |  |  |  | 168,447 |
Tax loss carryforwards |  | 25,395 |  |  |  | 22,597 |
Less: Valuation allowance |  | (38,496) |  |  |  | (37,410) |
Total deferred income tax assets | $ | 118,531 |  |  | $ | 231,356 |
Deferred income tax liabilities |  |  |  |  |
Taxable temporary differences relating to: |  |  |  |  |
Marketable securities | $ | (270) |  |  | $ | (2,041) |
Inventories |  | (17,768) |  |  |  | (47,484) |
Mineral properties, plant and equipment |  | (365,793) |  |  |  | (566,922) |
Convertible notes |  | (359) |  |  |  | (414) |
Mineral tax |  | (38,452) |  |  |  | (39,575) |
Foreign withholding tax |  | (17,080) |  |  |  | (32,875) |
Other items |  | (9,096) |  |  |  | — |
Total deferred income tax liabilities | $ | (448,818) |  |  | $ | (689,311) |
Balance sheet presentation |  |  |  |  |
Deferred income tax assets | $ | 8,501 |  |  | $ | 15,072 |
Deferred income tax liabilities |  | (338,788) |  |  |  | (473,027) |
Deferred income tax liabilities, net | $ | (330,287) |  |  | $ | (457,955) |
(1)The Company receives investment incentive tax credits for qualifying capital expenditures at Çöpler. The application of these tax credits, which are denominated in Turkish Lira, reduced income and mining tax expense and cash tax payments for the year ended December 31, 2021 and are expected to offset future cash tax payments. Reviews of eligible expenditures for tax credits by local tax authorities occur periodically and can result in adjustments to the recognition of investment incentive tax credits. As of December 31, 2021 and 2020, an aggregate deferred tax liability of $10.7 million and $14.1 million, respectively, for temporary differences of $35.6 million and $47.0 million, respectively, related to investments in subsidiaries was not recognized as the Company controls the dividend policy of its subsidiaries (i.e., the Company controls the timing of reversal of the related taxable temporary differences and is satisfied that they will not reverse in the foreseeable future). Valuation of deferred tax assets The Company recognizes tax benefits on losses or other deductible amounts generated in countries where it determines that it is more likely than not that taxable profits will be available to be utilized against those temporary differences. The Company's deferred tax valuation allowance related primarily to tax losses in foreign jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance due to insufficient positive taxable income to utilize available tax losses. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurs. During 2021, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance consisted of a $1.1 million increase related to reclamation liabilities with no future tax benefit and the generation of losses. Tax loss carryforwards As of December 31, 2021, the Company had the following estimated tax operating losses available to reduce future taxable income, including both losses for which deferred tax assets are utilized to offset applicable deferred tax liabilities and losses for which deferred tax assets are not recognized as listed in the table above. Losses expire at various dates and amounts between 2022 and 2041. There were no operating losses generated in Turkey.
| December 31, 2021 |  | Expiration Year
Mexico | $ | 34,695 |  |  | 2022 - 2031
Canada | $ | 42,632 |  |  | 2040 - 2041
U.S.A. | $ | 7,797 |  |  | Indefinite
Argentina | $ | 5,146 |  |  | 2026
Unrecognized tax benefits The Company records uncertain tax positions on the basis on a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the “more-likely-than-not” recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company determined that no liability for unrecognized tax benefits for uncertain tax positions was required as of December 31, 2021. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for previously recognized tax benefits within the next twelve months. If the Company were to record an unrecognized tax benefit, the Company will recognize applicable interest and penalties related to income tax matters in income and mining tax expense. The Company files income tax returns in the U.S. federal jurisdiction, Canada, Turkey, Argentina and various state, provincial and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-US income tax examinations for years before 2016. The Company is currently litigating with Turkey for the years 2016 through 2020 related to withholding tax on distributions from its Turkish operation.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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