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Income and Mining Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

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



	Year ended December 31,
In thousands	2018			2017		2016
United States	$	(50,522	)	$	10,099	$	(13,299	)
Foreign	(15,213		)	29,824		2,487
Total	$	(65,735	)	$	39,923	$	(10,812	)

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



	Year ended December 31,
In thousands	2018			2017			2016
Current:
United States	$	1,188		$	1,428		$	—
United States — State mining taxes	(3,208		)	(6,016		)	(7,826		)
United States — Foreign withholding tax	(5,617		)	(8,466		)	(1,838		)
Canada	378			876			(1,841		)
Mexico	(26,021		)	(30,763		)	(9,581		)
Other	67			55			24
Deferred:
United States	23,322			6,367			(1,610		)
United States — State mining taxes	1,134			1,052			748
Canada	16,057			104			1,338
Mexico	9,929			4,805			55,383
Other	(449		)	1,560			(1,550		)
Income tax (expense) benefit	$	16,780		$	(28,998	)	$	33,247

Schedule of Effective Income Tax Rate Reconciliation

The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:



	Year ended December 31,
In thousands	2018			2017			2016
Income and mining tax (expense) benefit at statutory rate	$	14,052		$	(14,037	)	$	3,718
State tax provision from continuing operations	2,284			26			336
Change in valuation allowance	2,471			86,712			40,517
Effect of tax legislation	—			(88,174		)	—
Percentage depletion	89			703			983
Uncertain tax positions	1,830			2,596			(8,829		)
U.S. and foreign permanent differences	3,314			2,348			(2,652		)
Foreign exchange rates	(3,973		)	(14,180		)	19,701
Foreign inflation and indexing	(2,374		)	(2,346		)	(670		)
Foreign tax rate differences	(24		)	2,929			120
Mining, foreign withholding, and other taxes	(3,857		)	(11,274		)	(11,052		)
Other, net	2,968			5,699			—
Legal entity reorganization	—			—			(8,925		)
Income and mining tax (expense) benefit	$	16,780		$	(28,998	)	$	33,247

Schedule of Deferred Tax Assets and Liabilities

At December 31, 2018 and 2017, the significant components of the Company’s deferred tax assets and liabilities are below:



	Year ended December 31,
In thousands	2018			2017
Deferred tax liabilities:
Mineral properties	$	118,852		$	102,573
Unrealized foreign currency loss and other	—			1,748
Inventory	4,513			8,258
Foreign subsidiaries - unremitted earnings	7			—
	$	123,372		$	112,579
Deferred tax assets:
Net operating loss carryforwards	$	189,840		$	155,512
Property, plant, and equipment	7,779			19,086
Mining Royalty Tax	8,980			11,797
Capital loss carryforwards	23,003			19,881
Asset retirement obligation	27,980			25,309
Foreign subsidiaries - unremitted earnings	—			1,842
Unrealized foreign currency loss and other	8,387			218
Royalty and other long-term debt	3,821			—
Accrued expenses	14,247			13,512
Tax credit carryforwards	33,897			45,277
	317,934			292,434
Valuation allowance	(272,839		)	(282,868		)
	45,095			9,566
Net deferred tax liabilities	$	78,277		$	103,013

Summary of Valuation Allowance

Based upon this analysis, the Company has recorded valuation allowances as follows:



	Year ended December 31,
In thousands	2018		2017
U.S.	$	223,444	$	235,395
Canada	7,661		2,455
Mexico	17,606		17,087
New Zealand	22,482		23,792
Other	1,646		4,139
	$	272,839	$	282,868

Summary of Tax Credit Carryforwards

The Company has the following tax attribute carryforwards at December 31, 2018, by jurisdiction:



In thousands	U.S.		Canada		Mexico		New Zealand		Other		Total
Regular net operating losses	$	423,572	$	82,383	$	58,688	$	82,378	$	3,915	$	650,936
Expiration years	2019-2038		2029-2037		2019-2027		Indefinite		2019-2022
Capital losses	87,431		—		—		—		—		87,431
Alternative minimum tax credits	793		—		—		—		—		793
Foreign tax credits	30,358		—		—		—		—		30,358

Summary of Income Tax Contingencies

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



Unrecognized tax benefits at December 31, 2016	$	7,157
Gross increase to current period tax positions	202
Gross increase to prior period tax positions	316
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	(2,351		)
Unrecognized tax benefits at December 31, 2017	$	5,324
Gross increase to current period tax positions	—
Gross increase to prior period tax positions	37
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations	(1,585		)
Unrecognized tax benefits at December 31, 2018	$	3,776