0 billion senior notes issued in august 2011

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Unformatted text preview: me and mining taxes Kinross is subject to tax in various jurisdictions including Canada, the United States, Brazil, Chile, Ecuador, the Russian Federation, Mauritania, and Ghana. For continuing operations, in 2012 the Company recorded a tax provision of $261.5 million on a loss before taxes of $2,292.1 million, compared with a tax provision of $496.8 million on a loss before taxes of $1,536.0 million in 2011. Kinross' combined federal and provincial statutory tax rate was 26.5% for 2012. Excluding the impact of a remeasurement of the deferred tax liability for 2012, in the amount of $116.5 million, as a result of the increase in the Ghanaian corporate income tax rate from 25% to 35% and the Chilean corporate income tax rate from 17% to 20%, and the impairment charges for 2012 and 2011, the Company’s effective tax rate was 37.8% compared with 35.6% for 2011. Excluding the impact of these items, the increase in the Company’s effective tax rate compared with 201 1 was largely due to differences in the level of income in the Com pany’s operating jurisdictions from one year to the next . There are a number of factors that can significantly impact the Company's effective tax rate including the geographic distribution of income, varying rates in different jurisdictions, the non-recognition of tax assets, mining allowance, foreign currency exchange rate movements, and changes in tax laws and the impact of specific transactions and assessments. Due to the number of factors that can potentially impact the effective tax rate and the sensitivity of the tax provision to these factors, as discussed above, it is expected that the Company's effective tax rate will fluctuate in future periods. MDA32 KINROSS GOLD 2012 ANNUAL REPORT 6. LIQUIDITY AND CAPITAL RESOURCES The following table summarizes Kinross’ cash flow activity: Years ended December 31, (in millions) 2012 2012 vs 2011 2011 % Change (b) Change Cash flow: Of continuing operations provided from $ operating activities (a) Of co...
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