INCOME AND MINING TAXES

The components of Income (loss) before income taxes are below:



	Year ended December 31,
In thousands	2015			2014			2013
United States	$	(43,924	)	$	(213,883	)	$	(242,562	)
Foreign	(349,522		)	(1,401,245		)	(566,117		)
Total	$	(393,446	)	$	(1,615,128	)	$	(808,679	)

The components of the consolidated Income and mining tax (expense) benefit from continuing operations are below:



	Year ended December 31,
In thousands	2015			2014			2013
Current:
United States	$	49		$	904		$	4
United States — State mining taxes	(4,305		)	(879		)	(714		)
United States — Foreign withholding tax	—			(6,250		)	397
Argentina	715			(71		)	(137		)
Australia	130			—			(914		)
Mexico	(476		)	(10,122		)	(9,046		)
Bolivia	(5,154		)	(4,008		)	(6,716		)
Canada	(516		)	(145		)	(1,936		)
Deferred:
Argentina	(1,197		)	24,478			8,062
Australia	3,223			(401		)	(2		)
Bolivia	—			22,122			(4,222		)
Canada	2,875			2,662			—
Mexico	27,189			394,221			94,851
United States	1,778			5,743			78,489
United States — State mining taxes	1,952			—			—
Income tax (expense) benefit	$	26,263		$	428,254		$	158,116

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



	Year ended December 31,
In thousands	2015			2014			2013
Income and mining tax benefit (expense) at statutory rate	$	137,706		$	565,295		$	283,038
State tax provision from continuing operations	(2,075		)	20,253			2,245
Change in valuation allowance	(101,027		)	(151,191		)	(106,802		)
Non-deductible imputed interest	—			—			(214		)
Uncertain tax positions	(1,947		)	(4,425		)	(5,209		)
U.S. and foreign non-deductible expenses	1,365			(4,892		)	(2,383		)
Mineral interest related	(19,310		)	—			—
Foreign exchange rates	22,350			23,672			13,937
Foreign inflation and indexing	1,117			3,765			2,937
Foreign tax rate differences	(15,980		)	(63,930		)	(24,108		)
Foreign withholding and other taxes	8,140			82,884			(100,331		)
Foreign tax credits and other, net	(4,076		)	(43,177		)	13,153
Mexico permanent reinvestment assertion	—			—			81,853
Income and mining tax benefit (expense)	$	26,263		$	428,254		$	158,116

At December 31, 2015 and 2014, the significant components of the Company’s deferred tax assets and liabilities are below:



	Year ended December 31,
In thousands	2015			2014
Deferred tax liabilities:
Mexican mining tax	$	15,451		$	8,065
Foreign subsidiaries — unremitted earnings	12,999			45,249
Inventory	2,353			3,135
Royalty and other long-term debt	1,648			—
	$	32,451		$	56,449
Deferred tax assets:
Net operating loss carryforwards	203,958			153,701
Mineral properties	34,966			46,006
Property, plant, and equipment	6,980			38,091
Royalty and other long-term debt	—			5,863
Capital loss carryforwards	3,938			35,251
Asset retirement obligation	21,480			21,586
Unrealized foreign currency loss and other	8,424			8,213
Accrued expenses	17,905			9,365
Tax credit carryforwards	26,439			56,322
	324,090			374,398
Valuation allowance	(436,829		)	(391,510		)
	(112,739		)	(17,112		)
Net deferred tax liabilities	$	145,190		$	73,561

The Company reviews the measurement of its deferred tax assets at each balance sheet date. All available evidence, both positive and negative, is considered in determining whether, based upon the weight of the evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Based upon this analysis, the Company has recorded valuation allowances as follows:



	Year ended December 31,
In thousands	2015		2014
U.S.	$	292,677	$	305,534
Argentina	8,376		21,520
Canada	1,718		2,009
Bolivia	45,177		15,948
Mexico	63,373		14,816
New Zealand	25,508		28,710
Other	—		2,973
	$	436,829	$	391,510

The Company has the following tax attribute carryforwards at December 31, 2015, by jurisdiction:



In thousands	U.S.	Argentina	Bolivia	Canada	Mexico	New Zealand	Other	Total
Regular net operating losses	320,511	12,210	55,019	2,182	108,191	91,096	68	589,277
Alternative minimum tax net operating losses	187,376	—	—	—	—	—	—	187,376
Capital losses	11,195	—	—	—	—	—	—	11,195
Alternative minimum tax credits	3,173	—	—	—	—	—	—	3,173
Foreign tax credits	19,898	—	—	—	—	—	—	19,898

The U.S. net operating losses expire from 2019 through 2035 and the Canada net operating losses will expire from 2029 through 2035. The Mexico net operating losses expire from 2017 to 2035, while the remaining net operating losses from the foreign jurisdictions have an indefinite carryforward period. The majority of the U.S. capital losses expired in 2015. Alternative minimum tax credits do not expire and foreign tax credits expire if unused beginning in 2019.

The Company intends to indefinitely reinvest earnings from certain foreign operations. For the years 2015 and 2014, the Company had no unremitted earnings from these specific foreign operations.

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



Unrecognized tax benefits at January 1, 2014	$	15,471
Gross increase to current period tax positions	1,856
Gross increase to prior period tax positions	524
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	(1,767		)
Unrecognized tax benefits at December 31, 2014	$	16,084
Gross increase to current period tax positions	1,030
Gross increase to prior period tax positions	810
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	—
Unrecognized tax benefits at December 31, 2015	$	17,924

At December 31, 2015, 2014, and 2013, $17.9 million, $16.1 million, and $14.3 million, respectively, of these gross unrecognized benefits would, if recognized, decrease the Company's effective tax rate.

The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.

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 2012 for the US federal jurisdiction and from 2008 for certain other foreign jurisdictions. During 2014, the U.S. Internal Revenue Service concluded its examination of the Company's 2009, 2010, and 2011 tax years. As a result of statutes of limitations that will begin to expire within the next 12 months in various jurisdictions and possible settlement of audit-related issues with taxing authorities in various jurisdictions with respect to which none of these issues are individually significant, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $0.5 million and $1.0 million in the next 12 months.

The Company classifies interest and penalties associated with uncertain tax positions as a component of income tax expense and recognized interest and penalties of $9.2 million, $6.9 million, and $4.1 million at December 31, 2015, 2014, and 2013, respectively.