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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 15. Income Taxes The Company's provision for income taxes for the year ended December 31, 2012, consists of a deferred tax benefit of $20,147. The Company has not recognized a current income tax expense or benefit due to overall loss positions. The deferred income tax benefit being recognized at December 31, 2012, relates primarily to the unrealized loss and underling basis difference in the Company’s investment in Midas Gold shares (Note 4). For the year ended December 31, 2011, the Company recognized a deferred tax expense related to the unrealized gain and underlying basis difference in its investment in Midas Gold. Tax Expense Income tax expense consists of the following:
|  |  |  | Years ended December 31,
|  |  | 2012 |  | 2011 |  | 2010
Current income tax expense (benefit) |  |  |  |  |  |  |  |
| U.S. |  | $ | - |  | $ | - |  | $ | -
| Canada |  |  | - |  |  | - |  |  | -
| Other Foreign |  |  | - |  |  | - |  |  | -
|  |  |  | - |  |  | - |  |  | -
Deferred income tax expense (benefit) |  |  |  |  |  |  |  |
| U.S. |  |  | (20,147) |  |  | 35,522 |  |  | -
| Canada |  |  | - |  |  | - |  |  | -
| Other Foreign |  |  | - |  |  | - |  |  | -
|  |  |  | (20,147) |  |  | 35,522 |  |  | -
Total tax expense (benefit) | $ | (20,147) |  | $ | 35,522 |  | $ | -
Source of Income The Company's U.S. and foreign source income is as follows:
|  |  | Years ended December 31,
|  | 2012 |  | 2011 |  | 2010
U.S. |  | $ | (52,448) |  | $ | 109,895 |  | $ | (2,469)
Canada |  |  | (11,962) |  |  | (985) |  |  | (5,057)
Other Foreign |  |  | (26,393) |  |  | (21,842) |  |  | (12,494)
|  | $ | (90,803) |  | $ | 87,068 |  | $ | (20,020)
Rate Reconciliation A reconciliation of the combined income taxes at the statutory rates and the Company’s effective income tax (benefit)/expense is as follows:
|  |  | Years ended December 31,
|  |  | 2012 |  | 2011 |  | 2010
Income taxed at statutory rates |  | $ (34,860) |  | $ 33,846 |  | $ (7,008)
Increase (decrease) in taxes from: |  |  |  |  |  |
| Stock-based compensation |  | 147 |  | 113 |  | 98
| Debt discount interest |  | - |  | (2) |  | (182)
| Meals and entertainment |  | 3 |  | 5 |  | 3
| Other adjustments |  | 6 |  | 77 |  | 60
| Adjustment due to capital transactions |  | (733) |  | 89 |  | -
| Imputed interest |  | 24 |  | 82 |  | 108
| Realized fx gain (loss) on intercompany balances |  | (3) |  | - |  | (1)
| Prior year provision to actual adjustments |  | (40) |  | 987 |  | 1,829
| Differences in tax rates |  | 3,905 |  | 1,930 |  | 630
| Effect of foreign exchange |  | (340) |  | 603 |  | (755)
| Change in effective tax rate |  | (333) |  | (764) |  | 209
| Expiration of NOLs |  | 70 |  | 1,526 |  | -
| Change in valuation allowance |  | 12,007 |  | (2,970) |  | 5,009
Income tax (benefit)/expense |  | $ (20,147) |  | $ 35,522 |  | $ -
Deferred Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities as at December 31 are as follows:
| December 31,
| 2012 |  | 2011 |  | 2010
Deferred income tax assets |  |  |  |  |
Excess tax basis over book basis of property, plant and equipment | $ 8,001 |  | $ 6,011 |  | $ 6,495
Marketable securities | 62 |  | - |  | -
Operating loss carryforwards | 37,635 |  | 26,772 |  | 20,945
Capital loss carryforwards | 2,630 |  | 2,645 |  | 2,773
Other | 3,219 |  | 2,023 |  | 1,407
Unrealized foreign exchange on loans | 217 |  | 676 |  | 864
Total future tax assets | 51,764 |  | 38,127 |  | 32,484
Valuation allowance for future tax assets | (41,817) |  | (29,291) |  | (31,886)
| 9,947 |  | 8,836 |  | 598
Deferred income tax liabilities |  |  |  |  |
Marketable securities | - |  | 14,092 |  | 116
Other investments | 24,839 |  | 29,784 |  |
Amayapampa disposal consideration | 482 |  | 482 |  | 482
| 25,321 |  | 44,358 |  | 598
Total Deferred Taxes | $ (15,374) |  | $ (35,522) |  | $ -
Valuation Allowance on Canadian and Foreign Tax Assets We establish a valuation allowance against the future income tax assets if, based on available information, it is more likely than not that all of the assets will not be realized. The valuation allowance of $41,817 and $29,291 at December 31, 2012 and 2011, respectively, relates mainly to net operating loss carryforwards, in Canada and other foreign tax jurisdictions, where the utilization of such attributes is not more likely than not. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. Loss Carryforwards The Corporation has available income tax losses of $77,280, which may be carried forward and applied against future taxable income when earned. The losses expire as follows:
|  | Noncapital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Canada (1) |  | U.S. |  | Mexico |  | Barbados |  | Indonesia |  | Total
2012 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | -
2013 |  |  | - |  |  | - |  |  | (282) |  |  | - |  |  | (383) |  |  | (665)
2014 |  |  | (725) |  |  | - |  |  | (124) |  |  | - |  |  | (211) |  |  | (1,060)
2015 |  |  | (889) |  |  | - |  |  | (322) |  |  | (9) |  |  | (385) |  |  | (1,605)
2016 |  |  | - |  |  | - |  |  | (125) |  |  | (8) |  |  | (7) |  |  | (140)
2017 |  |  | - |  |  | - |  |  | (533) |  |  | (12) |  |  | - |  |  | (545)
2018 |  |  | - |  |  | - |  |  | (6,230) |  |  | (84) |  |  | - |  |  | (6,314)
2019 |  |  | - |  |  | (519) |  |  | (1,138) |  |  | (63) |  |  | - |  |  | (1,720)
2020 |  |  | - |  |  | (783) |  |  | (2,505) |  |  | (28) |  |  | - |  |  | (3,316)
2021 |  |  | - |  |  | (779) |  |  | (8,735) |  |  | (50) |  |  | - |  |  | (9,564)
2022 |  |  | - |  |  | (748) |  |  | (3,856) |  |  | - |  |  | - |  |  | (4,604)
2023 |  |  | - |  |  | (691) |  |  | - |  |  | - |  |  | - |  |  | (691)
2024 |  |  | - |  |  | (2,082) |  |  | - |  |  | - |  |  | - |  |  | (2,082)
2025 |  |  | - |  |  | (2,362) |  |  | - |  |  | - |  |  | - |  |  | (2,362)
2026 |  |  | (1,027) |  |  | (1,213) |  |  | - |  |  | - |  |  | - |  |  | (2,240)
2027 |  |  | (847) |  |  | (1,700) |  |  | - |  |  | - |  |  | - |  |  | (2,547)
2028 |  |  | (5,245) |  |  | (1,719) |  |  | - |  |  | - |  |  | - |  |  | (6,964)
2029 |  |  | (4,022) |  |  | (1,971) |  |  | - |  |  | - |  |  | - |  |  | (5,993)
2030 |  |  | (5,032) |  |  | (1,836) |  |  | - |  |  | - |  |  | - |  |  | (6,868)
2031 |  |  | (3,806) |  |  | (3,408) |  |  | - |  |  | - |  |  | - |  |  | (7,214)
2032 |  |  | (8,473) |  |  | (2,313) |  |  |  |  |  |  |  |  |  |  |  | (10,786)
|  | $ | (30,066) |  | $ | (22,124) |  | $ | (23,850) |  | $ | (254) |  | $ | (986) |  | $ | (77,280)
(1) Canadian capital loss carryforwards of $21,039 and Australian NOLs of $59,761, which do not expire and are therefore not included above. Of the total Canadian net operating loss, $13,721 relates to an equity component for share-issuance cost deduction for which no tax benefit for financial reporting purposes in the income statement will be recognized. Accounting for uncertainty in taxes ASC 740 guidance requires that the Company evaluate all income tax positions taken, and recognize a liability for any uncertain tax positions that are not more likely than not to be sustained by the tax authorities. As of December 31, 2012, the Company believes it has no liability for unrecognized tax positions. If the Company were to determine there were any uncertain tax positions, the Company would recognize the liability and related interest and penalties within income tax expense. Tax statute of limitations The Company files income tax returns in Canada, U.S. federal and state jurisdictions and other foreign jurisdictions. There are currently no tax examinations underway for these jurisdictions. Furthermore, the Company is no longer subject tax Canadian tax examinations by the Canadian Revenue Authority for years ended on or before December 31, 2001 or U.S. federal income tax examinations by the Internal Revenue Service for years ended on or before December 31, 2009. Some U.S. state and other foreign jurisdictions are still subject for tax examination for years ended on or before December 31, 2008. Although certain tax years are closed under the statute of limitations, tax authorities can still adjust losses being carried forward into open years.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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=6907707&loc=d3e32537-109319 Reference 7: 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=6907707&loc=d3e32639-109319 Reference 8: 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=6907707&loc=d3e32559-109319 + Details
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