XML 60 R23.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income and other taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Taxes [Abstract] |
Income and other taxes | Income and other taxes: a) Income tax expense:
For the years ended December 31 | 2017 |  | 2016 |
Current tax recovery (expense): |  |
Current period before undernoted items | $ | (85,287 | ) | $ | (44,743 | )
Impact of Argentina gas settlement | — |  | (7,800 | )
Adjustments to prior years | (217 | ) | (2,134 | )
| (85,504 | ) | (54,677 | )
Deferred tax recovery (expense): |  |
Origination and reversal of temporary differences | 23,310 |  | 82,838 |
Impact of Argentina gas settlement | — |  | (3,575 | )
Derecognition of non-capital loss carryforwards | — |  | (17,861 | )
Adjustments to prior years | 200 |  | 1,667 |
Change in U.S. tax rate | (36,567 | ) | — |
Change in other jurisdictions tax rates | 734 |  | — |
Other | 2,039 |  | 887 |
| (10,284 | ) | 63,956 |
Total income tax recovery (expense) | $ | (95,788 | ) | $ | 9,279 |
b) Reconciliation of the effective tax rate: The Company operates in several tax jurisdictions and therefore its income is subject to various rates of taxation. Income tax expense differs from the amounts that would be obtained by applying the Canadian statutory income tax rate to net income (loss) before income taxes as follows:
For the years ended December 31 | 2017 |  | 2016 |
Income (loss) before income taxes | $ | 470,885 |  | $ | (37,504 | )
Deduct earnings of associate | (75,995 | ) | (19,930 | )
| 394,890 |  | (57,434 | )
Canadian statutory tax rate | 26.5 | % | 26.5 | %
Income tax recovery (expense) calculated at Canadian statutory tax rate | (104,646 | ) | 15,220 |
Increase (decrease) in income tax recovery resulting from: |  |
Impact of income and losses taxed in foreign jurisdictions | 30,223 |  | 34,857 |
Derecognition of non-capital loss carryforwards | — |  | (17,861 | )
Unrecognised loss carryforwards and temporary differences | 20,468 |  | (6,468 | )
Impact of tax rate changes in the U.S. | (36,567 | ) | — |
Impact of tax rate changes in other jurisdictions | 734 |  | — |
Impact of foreign exchange | 3,104 |  | (4,332 | )
Other business taxes | (4,105 | ) | (5,404 | )
Adjustments to prior years | (17 | ) | (467 | )
Other | (4,982 | ) | (6,266 | )
Total income tax recovery (expense) | $ | (95,788 | ) | $ | 9,279 |
c) Net deferred income tax liabilities: (i) The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets are as follows:
As at |  | Dec 31 2017 |  |  |  | Dec 31 2016 |
| Net |  | Deferred tax assets |  | Deferred tax liabilities |  |  | Net |  | Deferred tax assets |  | Deferred tax liabilities |
Property, plant and equipment | $ | (403,705 | ) | $ | (189,368 | ) | $ | (214,337 | ) |  | $ | (419,982 | ) | $ | (197,931 | ) | $ | (222,051 | )
Repatriation taxes | (87,239 | ) | — |  | (87,239 | ) |  | (85,364 | ) | — |  | (85,364 | )
Other | (11,670 | ) | (3,740 | ) | (7,930 | ) |  | (19,956 | ) | (4,981 | ) | (14,975 | )
| (502,614 | ) | (193,108 | ) | (309,506 | ) |  | (525,302 | ) | (202,912 | ) | (322,390 | )
Non-capital loss carryforwards | 244,576 |  | 244,576 |  | — |  |  | 280,931 |  | 280,931 |  | — |
Share-based compensation | 19,920 |  | 2,946 |  | 16,974 |  |  | 8,590 |  | 935 |  | 7,655 |
Other | 74,027 |  | 47,927 |  | 26,100 |  |  | 82,142 |  | 58,387 |  | 23,755 |
| 338,523 |  | 295,449 |  | 43,074 |  |  | 371,663 |  | 340,253 |  | 31,410 |
Net deferred income tax assets (liabilities) | $ | (164,091 | ) | $ | 102,341 |  | $ | (266,432 | ) |  | $ | (153,639 | ) | $ | 137,341 |  | $ | (290,980 | )
The Company recognizes deferred income tax assets to the extent that it is probable that the benefit of these assets will be realized. As at December 31, 2017, the Company had $110 million (2016 - $153 million) of unrecognized non-capital loss carryforwards in Egypt that expire in 2020 and 2021 and $384 million (2016 - $ 415 million) of deductible temporary differences in the United States that have not been recognized. (ii) Analysis of the change in deferred income tax assets and liabilities:
|  |  | 2017 |  |  |  |  | 2016 |
| Net |  | Deferred tax assets |  | Deferred tax liabilities |  |  | Net |  | Deferred tax assets |  | Deferred tax liabilities |
Balance, January 1 | $ | (153,639 | ) | $ | 137,341 |  | $ | (290,980 | ) |  | $ | (223,757 | ) | $ | 61,881 |  | $ | (285,638 | )
Deferred income tax recovery (expense) included in net income (loss) | (10,284 | ) | (34,517 | ) | 24,233 |  |  | 63,956 |  | 69,110 |  | (5,154 | )
Impact of U.S. tax rate change in other comprehensive income | (8,621 | ) | (8,621 | ) | — |  |  | — |  | — |  | — |
Deferred income tax recovery (expense) included in other comprehensive income (loss) | 9,295 |  | 8,398 |  | 897 |  |  | 6,597 |  | 6,364 |  | 233 |
Other | (842 | ) | (260 | ) | (582 | ) |  | (435 | ) | (14 | ) | (421 | )
Balance, December 31 | $ | (164,091 | ) | $ | 102,341 |  | $ | (266,432 | ) |  | $ | (153,639 | ) | $ | 137,341 |  | $ | (290,980 | )

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2017-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=12&date=2017-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2017-03-09 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Income Taxes [Abstract] + References No definition available. + Details
Name: | mx_IncomeTaxesAbstract
Namespace Prefix: | mx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration