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Segment Reporting | 12 Months Ended
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Dec. 31, 2013
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s reportable operating segments include the Palmarejo, San Bartolomé, Rochester, Kensington, and Martha mines, as well as La Preciosa and Coeur Capital. All operating segments are engaged in the discovery and mining of gold and silver and generate the majority of their revenues from the sale of these precious metals with the exception of Coeur Capital, which holds the Endeavor silver stream and other precious metals royalties. Other includes the Joaquin project, corporate headquarters, elimination of intersegment transactions and other items necessary to reconcile to consolidated amounts. Revenues from silver sales were $394.5 million, $549.7 million and $662.6 million in 2013, 2012, and 2011, respectively. Revenues from gold sales were $351.5 million, $345.8 million and $358.6 million in 2013, 2012, and 2011, respectively. Financial information relating to the Company’s segments is as follows (in thousands):
Year ended December 31, 2013 | Palmarejo Mine |  | San Bartolomé Mine |  | Kensington Mine |  | Rochester Mine |  | Martha Mine |  | La Preciosa |  | Coeur Capital |  | Other |  | Total
Sales of metals | $ | 324,040 |  |  | $ | 141,721 |  |  | $ | 148,769 |  |  | $ | 119,254 |  |  | $ | (661 | ) |  | $ | — |  |  | $ | 12,871 |  |  | $ | — |  |  | $ | 745,994 |
Production costs applicable to sales | (188,572 | ) |  | (86,827 | ) |  | (104,575 | ) |  | (77,869 | ) |  | — |  |  | — |  |  | (5,818 | ) |  | (2 | ) |  | (463,663 | )
Amortization | (134,240 | ) |  | (19,565 | ) |  | (63,216 | ) |  | (10,571 | ) |  | (438 | ) |  | (24 | ) |  | (3,755 | ) |  | (1,070 | ) |  | (232,879 | )
Gross profit (loss) | 1,228 |  |  | 35,329 |  |  | (19,022 | ) |  | 30,814 |  |  | (1,099 | ) |  | (24 | ) |  | 3,298 |  |  | (1,072 | ) |  | 49,452 |
Exploration expense | 7,161 |  |  | 111 |  |  | 4,199 |  |  | 2,653 |  |  | 4,485 |  |  | 80 |  |  | 2,069 |  |  | 1,602 |  |  | 22,360 |
Write-downs | 642,094 |  |  | — |  |  | 130,694 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 205 |  |  | 772,993 |
Other operating expenses | — |  |  | 5,743 |  |  | 269 |  |  | 34,584 |  |  | 2,650 |  |  | 3,237 |  |  | 1,397 |  |  | 51,378 |  |  | 99,258 |
OPERATING INCOME (LOSS) | (648,027 | ) |  | 29,475 |  |  | (154,184 | ) |  | (6,423 | ) |  | (8,234 | ) |  | (3,341 | ) |  | (168 | ) |  | (54,257 | ) |  | (845,159 | )
Interest and other income, net | 906 |  |  | 2,582 |  |  | (187 | ) |  | (318 | ) |  | 865 |  |  | 15 |  |  | (19,474 | ) |  | 10,626 |  |  | (4,985 | )
Interest expense, net | (15,123 | ) |  | (74 | ) |  | (424 | ) |  | (20 | ) |  | (1 | ) |  | — |  |  | — |  |  | (25,661 | ) |  | (41,303 | )
Fair value adjustments, net | 76,218 |  |  | — |  |  | 7,480 |  |  | 416 |  |  | — |  |  | — |  |  | — |  |  | (1,346 | ) |  | 82,768 |
Income tax (provision) benefit | 107,748 |  |  | (10,938 | ) |  | (1 | ) |  | (2,332 | ) |  | (137 | ) |  | (20,856 | ) |  | 2,179 |  |  | 82,453 |  |  | 158,116 |
Net income (loss) | $ | (478,278 | ) |  | $ | 21,045 |  |  | $ | (147,316 | ) |  | $ | (8,677 | ) |  | $ | (7,507 | ) |  | $ | (24,182 | ) |  | $ | (17,463 | ) |  | $ | 11,815 |  |  | $ | (650,563 | )
Segment assets(1) | $ | 1,164,852 |  |  | $ | 289,272 |  |  | $ | 343,144 |  |  | $ | 176,789 |  |  | $ | 6,168 |  |  | $ | 410,335 |  |  | $ | 62,678 |  |  | $ | 105,581 |  |  | $ | 2,558,819 |
Capital expenditures | $ | 33,730 |  |  | $ | 11,568 |  |  | $ | 21,404 |  |  | $ | 29,406 |  |  | $ | 10 |  |  | $ | 1,122 |  |  | $ | — |  |  | $ | 3,573 |  |  | $ | 100,813 |
(1) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties
Year ended December 31, 2012 | Palmarejo Mine |  | San Bartolomé Mine |  | Kensington Mine |  | Rochester Mine |  | Martha Mine |  | Coeur Capital |  | Other |  | Total
Sales of metals | $ | 442,098 |  |  | $ | 178,005 |  |  | $ | 110,987 |  |  | $ | 132,392 |  |  | $ | 13,162 |  |  | $ | 18,848 |  |  | $ | — |  |  | $ | 895,492 |
Production costs applicable to sales | (197,478 | ) |  | (71,428 | ) |  | (87,089 | ) |  | (72,061 | ) |  | (17,682 | ) |  | (8,824 | ) |  | — |  |  | (454,562 | )
Amortization | (146,595 | ) |  | (16,709 | ) |  | (41,645 | ) |  | (8,065 | ) |  | (692 | ) |  | (4,632 | ) |  | (519 | ) |  | (218,857 | )
Gross profit (loss) | 98,025 |  |  | 89,868 |  |  | (17,747 | ) |  | 52,266 |  |  | (5,212 | ) |  | 5,392 |  |  | (519 | ) |  | 222,073 |
Exploration expense | 7,575 |  |  | 159 |  |  | 3,283 |  |  | 3,591 |  |  | 8,648 |  |  | 1,056 |  |  | 1,958 |  |  | 26,270 |
Write-downs | — |  |  | — |  |  | — |  |  | — |  |  | 5,825 |  |  | — |  |  | — |  |  | 5,825 |
Other operating expenses | 11 |  |  | 80 |  |  | 74 |  |  | 1,401 |  |  | 2,108 |  |  | (736 | ) |  | 31,300 |  |  | 34,238 |
OPERATING INCOME (LOSS) | 90,439 |  |  | 89,629 |  |  | (21,104 | ) |  | 47,274 |  |  | (21,793 | ) |  | 5,072 |  |  | (33,777 | ) |  | 155,740 |
Interest and other income, net | 4,017 |  |  | 9,719 |  |  | (77 | ) |  | 358 |  |  | (1,153 | ) |  | (77 | ) |  | 1,649 |  |  | 14,436 |
Interest expense, net | (18,938 | ) |  | (72 | ) |  | (2,972 | ) |  | (26 | ) |  | (3 | ) |  | — |  |  | (4,158 | ) |  | (26,169 | )
Loss on debt extinguishment | — |  |  | — |  |  | (1,036 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,036 | )
Fair value adjustments, net | (31,054 | ) |  | — |  |  | 4,089 |  |  | — |  |  | — |  |  | — |  |  | 3,478 |  |  | (23,487 | )
Income tax (provision) benefit | (18,066 | ) |  | (44,632 | ) |  | — |  |  | (2,195 | ) |  | 976 |  |  | (327 | ) |  | (6,563 | ) |  | (70,807 | )
Net income (loss) | $ | 26,398 |  |  | $ | 54,644 |  |  | $ | (21,100 | ) |  | $ | 45,411 |  |  | $ | (21,973 | ) |  | $ | 4,668 |  |  | $ | (39,371 | ) |  | $ | 48,677 |
Segment assets(1) | $ | 1,905,269 |  |  | $ | 302,922 |  |  | $ | 508,658 |  |  | $ | 104,373 |  |  | $ | 9,813 |  |  | $ | 32,656 |  |  | $ | 110,365 |  |  | $ | 2,974,056 |
Capital expenditures | $ | 38,456 |  |  | $ | 25,672 |  |  | $ | 36,994 |  |  | $ | 11,794 |  |  | $ | 1,193 |  |  | $ | — |  |  | $ | 1,532 |  |  | $ | 115,641 |
(1) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties
Year ended December 31, 2011 | Palmarejo Mine |  | San Bartolomé Mine |  | Kensington Mine |  | Rochester Mine |  | Martha Mine |  | Coeur Capital |  | Other |  | Total
Sales of metals | $ | 513,097 |  |  | $ | 267,502 |  |  | $ | 151,186 |  |  | $ | 57,331 |  |  | $ | 13,347 |  |  | $ | 18,737 |  |  | $ | — |  |  | $ | 1,021,200 |
Production costs applicable to sales | (186,201 | ) |  | (79,679 | ) |  | (101,672 | ) |  | (27,848 | ) |  | (15,513 | ) |  | (8,634 | ) |  | — |  |  | (419,547 | )
Amortization | (159,264 | ) |  | (22,410 | ) |  | (35,839 | ) |  | (2,824 | ) |  | (556 | ) |  | (3,155 | ) |  | (452 | ) |  | (224,500 | )
Gross profit (loss) | 167,632 |  |  | 165,413 |  |  | 13,675 |  |  | 26,659 |  |  | (2,722 | ) |  | 6,948 |  |  | (452 | ) |  | 377,153 |
Exploration expense | 6,863 |  |  | 248 |  |  | 1,102 |  |  | 1,989 |  |  | 6,367 |  |  | 662 |  |  | 1,897 |  |  | 19,128 |
Other operating expenses | 949 |  |  | 342 |  |  | 317 |  |  | 19,931 |  |  | 156 |  |  | (1 | ) |  | 29,126 |  |  | 50,820 |
OPERATING INCOME (LOSS) | 159,820 |  |  | 164,823 |  |  | 12,256 |  |  | 4,739 |  |  | (9,245 | ) |  | 6,287 |  |  | (31,475 | ) |  | 307,205 |
Interest and other income, net | (9,099 | ) |  | 156 |  |  | 4 |  |  | 57 |  |  | (544 | ) |  | 1,108 |  |  | 1,708 |  |  | (6,610 | )
Interest expense, net | (23,453 | ) |  | (45 | ) |  | (4,889 | ) |  | (21 | ) |  | (458 | ) |  | — |  |  | (5,908 | ) |  | (34,774 | )
Loss on debt extinguishment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,526 | ) |  | (5,526 | )
Fair value adjustments, net | (40,046 | ) |  | — |  |  | (8,438 | ) |  | — |  |  | — |  |  | — |  |  | (3,566 | ) |  | (52,050 | )
Income tax (provision) benefit | (28,023 | ) |  | (59,867 | ) |  | (31 | ) |  | (409 | ) |  | (1,219 | ) |  | — |  |  | (25,197 | ) |  | (114,746 | )
Net income (loss) | $ | 59,199 |  |  | $ | 105,067 |  |  | $ | (1,098 | ) |  | $ | 4,366 |  |  | $ | (11,466 | ) |  | $ | 7,395 |  |  | $ | (69,964 | ) |  | $ | 93,499 |
Segment assets(1) | $ | 2,029,769 |  |  | $ | 276,423 |  |  | $ | 507,891 |  |  | $ | 76,852 |  |  | $ | 19,717 |  |  | $ | 36,349 |  |  | $ | 16,129 |  |  | $ | 2,963,130 |
Capital expenditures | $ | 36,976 |  |  | $ | 17,731 |  |  | $ | 34,013 |  |  | $ | 27,217 |  |  | $ | 3,426 |  |  | $ | 59 |  |  | $ | 566 |  |  | $ | 119,988 |
(1) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties
| As of December 31,
(in thousands) | 2013 |  | 2012 |  | 2011
Assets |  |  |  |  |
Total assets for reportable segments | $ | 2,558,819 |  |  | $ | 2,974,056 |  |  | $ | 2,963,130 |
Cash and cash equivalents | 206,690 |  |  | 125,440 |  |  | 175,012 |
Short term investments | — |  |  | 999 |  |  | 20,254 |
Other assets | 120,469 |  |  | 120,906 |  |  | 106,045 |
Total consolidated assets | $ | 2,885,978 |  |  | $ | 3,221,401 |  |  | $ | 3,264,441 |
Geographic Information
| As of December 31,
(in thousands) | 2013 |  | 2012 |  | 2011
Long Lived Assets |  |  |  |  |
United States | $ | 384,626 |  |  | $ | 608,051 |  |  | $ | 515,096 |
Australia | 25,668 |  |  | 29,408 |  |  | 33,999 |
Argentina | 94,705 |  |  | 1,705 |  |  | 5,213 |
Bolivia | 235,085 |  |  | 240,905 |  |  | 230,956 |
Mexico | 1,487,228 |  |  | 1,795,677 |  |  | 1,903,374 |
Other Foreign Countries | 10,462 |  |  | 65 |  |  | 65 |
Total | $ | 2,237,774 |  |  | $ | 2,675,811 |  |  | $ | 2,688,703 |
| Twelve months ended December 31,
(in thousands) | 2013 |  | 2012 |  | 2011
Revenues |  |  |  |  |
United States | $ | 268,023 |  |  | $ | 243,379 |  |  | $ | 208,517 |
Mexico | 324,040 |  |  | 442,098 |  |  | 513,097 |
Bolivia | 141,721 |  |  | 178,005 |  |  | 267,502 |
Australia | 12,871 |  |  | 18,848 |  |  | 18,737 |
Argentina | (661 | ) |  | 13,162 |  |  | 13,347 |
Total | $ | 745,994 |  |  | $ | 895,492 |  |  | $ | 1,021,200 |
The Company markets its doré to bullion trading houses, market makers and members of the London Bullion Market Association, industrial companies and other financial institutions. The Company has eight trading counterparties and the sales of metals to these companies amounted to approximately 72%, 91%, and 82% of total metal sales for the years ended December 31, 2013, 2012, and 2011, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and the availability of alternative trading counterparties. The Company currently has five trading counterparties for its silver and gold concentrates and the sales to these companies amounted to approximately 28%, 9%, and 18% of total metal sales for the years ended December 31, 2013, 2012, and 2011, respectively. The loss of any one smelting and refining client may have a material adverse effect if alternate smelters and refiners are not available. The Company believes there is sufficient global capacity available to address the loss of any one smelter. The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years December 31, 2013, 2012, and 2011 (in millions):
|  | Year Ended December 31, |  |
Customer |  | 2013 |  | 2012 |  | 2011 |  | Segments reporting revenue
Auramet |  | $ | 111.7 |  |  | $ | 94.6 |  |  | $ | 50.8 |  |  | Palmarejo, San Bartolomé, Kensington, Rochester
Toronto-Dominion Bank |  | 106.7 |  |  | 65.8 |  |  | — |  |  | Palmarejo, Rochester
INTL Commodities |  | 84.6 |  |  | 58.0 |  |  | 112.6 |  |  | Palmarejo, San Bartolomé, Rochester
China Gold |  | 81.5 |  |  | 43.8 |  |  | 108.9 |  |  | Kensington
Valcambi |  | 77.2 |  |  | 414.4 |  |  | 385.5 |  |  | Palmarejo, San Bartolomé
Mitsui |  | 70.3 |  |  | 65.6 |  |  | 105.1 |  |  | Palmarejo, Rochester

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -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 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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