INCOME TAXES

The components of income (loss) before income taxes were as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
United States	$	(242,562	)	$	(3,443	)	$	(38,372	)
Foreign	(566,117		)	122,927			246,617
Total	$	(808,679	)	$	119,484		$	208,245

For the years ended December 31, 2013, 2012, and 2011 the Company reported an income tax (provision) benefit of $158.1 million, $(70.8) million, and $(114.7) million, respectively.

The following table summarizes the components of the Company’s income tax provision from continuing operations for the three years ended December 31, 2013, 2012, and 2011 (in thousands):

The components of the consolidated income tax benefit (expense) from continuing operations were as follows:



	Years Ended December 31,
	2013			2012			2011
Current:
United States	$	4		$	(257	)	$	2,015
United States — State mining taxes	(714		)	(2,195		)	(409		)
United States — Foreign withholding tax	397			(736		)	(842		)
Argentina	(137		)	976			(1,219		)
Australia	(914		)	(1,760		)	(1,755		)
Mexico	(9,046		)	(7,814		)	(1,084		)
Bolivia	(6,716		)	(43,546		)	(59,660		)
Canada	(1,936		)	—			—
Deferred:
Argentina	8,062			—			—
Australia	(2		)	(223		)	(661		)
Bolivia	(4,222		)	(1,087		)	(207		)
Mexico	94,851			(10,579		)	(28,022		)
United States	78,489			(3,586		)	(22,902		)
Income tax benefit (expense)	$	158,116		$	(70,807	)	$	(114,746	)

A reconciliation of the Company’s effective tax rate with the federal statutory tax rate for the periods indicated is as follows:



	Years Ended December 31
	2013			2012			2011
Tax benefit (expense) from continuing operations	$	283,038		$	(41,819	)	$	(72,886	)
State tax provision from continuing operations	2,245			(3,151		)	(11,009		)
Percentage depletion and related deductions	—			7,461			—
Change in valuation allowance	(106,802		)	(12,651		)	(6,032		)
Non-deductible imputed interest	(214		)	(525		)	(808		)
Uncertain tax positions	(5,209		)	(9,849		)	(1,279		)
U.S. and foreign non-deductible expenses	(2,383		)	(4,206		)	(10,648		)
Foreign exchange rates	13,937			(10,416		)	(4,440		)
Foreign inflation and indexing	2,937			712			(3,829		)
Foreign tax rate differences	(24,108		)	3,967			22,795
Foreign withholding and other foreign taxes	(100,331		)	(5,861		)	(23,246		)
Foreign tax credits and other, net	13,153			5,531			(3,364		)
Change in Mexico permanent reinvestment assertion	81,853			—			—
	$	158,116		$	(70,807	)	$	(114,746	)

As of December 31, 2013 and 2012, the significant components of the Company’s deferred tax assets and liabilities were as follows:



	Years Ended December 31
	2013			2012
Deferred tax liabilities:
Mineral properties	$	344,152		$	461,742
Mexican mining royalty tax	76,386			—
Foreign subsidiaries — unremitted earnings	182,464			247,000
Inventory	2,746			—
Property, plant and equipment, net	33,094			60,266
	$	638,842		$	769,008
Deferred tax assets:
Net operating loss carryforwards	130,170			99,323
Foreign subsidiaries — future tax credits	163,947			145,395
Royalty and other long-term debt	11,616			42,221
Capital loss carryforwards	34,930			35,315
Asset retirement obligation	18,589			8,623
Unrealized foreign currency loss and other	9,567			1,590
Accrued expenses	14,756			20,692
Tax credit carryforwards	23,585			22,811
Inventory	—			1,418
	407,160			377,388
Valuation allowance	(289,378		)	(182,576		)
	117,782			194,812
Net deferred tax liabilities	$	(521,060	)	$	(574,196	)

The Company has evaluated the amount of taxable income and periods over which it must be earned to allow for realization of the deferred tax assets. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this decision. Based upon this analysis, the Company has recorded valuation allowances as follows:



	Years Ended December 31
	2013		2012
U.S.	$	236,653	$	132,790
Argentina	17,005		18,442
Canada	4,453		2,227
New Zealand	27,292		27,125
Other	3,975		1,992
	$	289,378	$	182,576

A reconciliation of the beginning and ending amount related to unrecognized tax benefits is as follows (in thousands):



Unrecognized tax benefits at January 1, 2012	$	1,980
Gross increase to current period tax positions	9,227
Gross decrease to prior period tax positions	(696		)
Unrecognized tax benefits at December 31, 2012	$	10,511
Gross increase to current period tax positions	2,231
Gross increase to prior period tax positions	2,761
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statue of limitations	(32		)
Unrecognized tax benefits at December 31, 2013	$	15,471

At December 31, 2013, 2012, and 2011, $14.3 million, $10.3 million, and $1.1 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company's effective tax rate. The Company is not able to estimate the amount of change in the Company's gross unrecognized tax benefits within the next twelve months.

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and has recognized interest and penalties of $3.8 million, $2.5 million, and $0.4 million as of 2013, 2012, and 2011, respectively.

The Company files income tax returns in various U.S. federal and state jurisdictions, in all identified foreign jurisdictions and various others. The statute of limitations remains open from 2009 for the US federal jurisdiction and from 2004 for certain other foreign jurisdictions.

In the fourth quarter of 2013, the Company made an assertion that earnings are permanently reinvested in its Coeur Mexicana mining operations entity which results in an income tax benefit in the current year of $81 million. Therefore, at December 31, 2013, no provision has been made for United States federal and state income taxes on the Company's outside tax basis differences in Mexico, which primarily relate to accumulated foreign earnings which have been reinvested and are expected to be reinvested outside the United States indefinitely.

During 2007, the Company incurred an ownership change which generally limits the availability of existing tax attributes, including net operating loss carryforwards to reduce future taxable income. The Company has the following tax attribute carryforwards as of December 31, 2013, by jurisdiction:



	U.S.	Argentina	Canada	Mexico	New Zealand	Other	Total
Regular net operating losses	226,985	21,061	7,203	4,170	97,470	6,641	363,530
Alternative minimum tax net operating losses	99,954	—	—	—	—	—	99,954
Capital losses	90,258	—	3,579	—	—	—	93,837
Alternative minimum tax credits	3,136	—	—	—	—	—	3,136
Foreign tax credits	19,494	—	—	—	—	—	19,494

The U.S. net operating losses expire from 2019 through 2033 and the Canada net operating losses will expire from 2029 through 2033. The Mexico net operating losses expire from 2017 to 2023, while the remaining net operating losses from the foreign jurisdictions have an indefinite carryforward period. The U.S. capital losses expire in 2015 while the Canada capital losses generally have an indefinite carryforward period. Alternative minimum tax credits do not expire and foreign tax credits expire if unused beginning in 2019.