XML 46 R18.htm IDEA: XBRL DOCUMENT
v3.6.0.2

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2016
INCOME TAXES. |
INCOME TAXES | NOTE 10 INCOME TAXES The Company’s deferred income tax benefit (expense) consisted of:
|  | 2016 |  | 2015 |  | 2014
United States |  | $ | 515 |  | $ | (442) |  | $ | 215
Foreign |  |  | 3,234 |  |  | 25,002 |  |  | 106,955
Deferred tax benefit |  | $ | 3,749 |  | $ | 24,560 |  | $ | 107,170
The Company’s net income (loss) before tax consisted of:
|  | 2016 |  | 2015 |  | 2014
United States |  | $ | (13,959) |  | $ | (19,935) |  | $ | (21,436)
Foreign |  |  | 31,265 |  |  | (25,075) |  |  | (397,677)
Net income (loss) before tax |  | $ | 17,306 |  | $ | (45,010) |  | $ | (419,113)
A reconciliation of the tax provision for 2016, 2015 and 2014 at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statements is computed as follows:
Expected tax benefit at |  | 2016 |  | 2015 |  | 2014
Income (loss) before income taxes |  | $ | 17,306 |  | $ | (45,010) |  |  | (419,113)
Statutory tax rate |  |  | 34% |  |  | 34% |  |  | 34%
US Federal and State tax benefit at statutory rate |  |  | 5,884 |  |  | (15,303) |  | $ | (142,498)
Reconciling items: |  |  |  |  |  |  |  |  |
Equity pickup in MSC |  |  | (4,533) |  |  | (821) |  |  | 1,850
Impairment of MSC |  |  | — |  |  | 4,004 |  |  | 7,407
Revisions to prior year estimates |  |  | (828) |  |  | 906 |  |  | 8,330
Adjustment for foreign tax rates |  |  | (501) |  |  | (1,230) |  |  | (1,803)
Other permanent differences |  |  | 818 |  |  | (15,694) |  |  | (14,760)
Unrealized foreign exchange rate (loss)/gain |  |  | 5,972 |  |  | 9,389 |  |  | 19,444
NOL expired |  |  | 586 |  |  | 1,215 |  |  | 10,268
Valuation allowance |  |  | (11,147) |  |  | (7,026) |  |  | 4,592
Tax benefit |  |  | (3,749) |  |  | (24,560) |  | $ | (107,170)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as at December 31, 2016 and 2015 respectively are presented below:
|  | 2016 |  | 2015 |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss carryforward |  |  | 96,312 |  |  | 105,555 |
Mineral Properties |  |  | 14,195 |  |  | 11,842 |
Other temporary differences |  |  | 1,114 |  |  | 5,371 |
Total gross deferred tax assets |  |  | 111,621 |  |  | 122,768 |
Less: valuation allowance |  |  | (111,621) |  |  | (122,768) |
Net deferred tax assets |  | $ | — |  | $ | — |
Deferred tax liabilities: |  |  |  |  |  |  |
Acquired mineral property interests |  |  | (23,655) |  |  | (26,899) |
Total deferred tax liabilities |  | $ | (23,655) |  | $ | (26,899) |
Total net deferred tax liability |  | $ | (23,655) |  | $ | (26,899) |
The Company reviews the measurement of its deferred tax assets at each balance sheet date. On the basis of available information at December 31, 2016, the Company has provided a valuation allowance for certain of its deferred assets where the Company believes it is more likely than not that some portion or all of such assets will be realized. The change in valuation allowance of approximately $11.1 million primarily reflects a decrease of net operating loss carryforwards. The table below summarizes changes to the valuation allowance:
For the year ended December 31, |  | Balance at beginning of period |  | Additions(a) |  | Deductions(b) |  | Balance at end of period
2016 |  | $ | 122,768 |  | $ | 1,430 |  | $ | (12,577) |  | $ | 111,621
2015 |  |  | 129,794 |  |  | 6,873 |  |  | (13,899) |  |  | 122,768
2014 |  |  | 125,202 |  |  | 11,514 |  |  | (6,922) |  |  | 129,794
| (a) |  | The additions to valuation allowance mainly results from the Company and its subsidiaries incurring losses and exploration expenses for tax purposes which do not meet the more-likely-than-not criterion for recognition of deferred tax assets.
| (b) |  | The reductions to valuation allowance mainly results from expiration of the Company's tax attributes and foreign exchange reductions of tax attributes in Mexico and Argentina.
The deferred tax liability related to the Minera Andes acquisition was $16.3 million as at December 31, 2016 (2015 - $19.8 million). As at December 31, 2016 and 2015, the Company did not have any income-tax related accrued interest and tax penalties. The following table summarizes the Company’s losses that can be applied against future taxable profit:
Country |  | Type of Loss |  | Amount |  | Expiry Period
United States(a) |  | Non-operating losses |  | $ | 160,900 |  | 2017-2036
Mexico |  | Non-operating losses |  |  | 31,810 |  | 2017-2026
Canada |  | Non-operating losses |  |  | 19,055 |  | 2017-2036
Argentina |  | Non-operating losses |  |  | 79,807 |  | 2017-2021
| (a) |  | The losses in the United States and Argentina are part of multiple consolidating groups, and therefore, may be restricted in use to specific projects.
The Company or its subsidiaries file income tax returns in Canada, the United States, Mexico, and Argentina. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: United States: 2013 to 2016 Canada: 2009 to 2016 Mexico: 2012 to 2016 Argentina: 2012 to 2016

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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration