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Fair Value Measurements | 12 Months Ended
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Dec. 31, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS
| Year ended December 31,
In thousands | 2016 |  | 2015 |  | 2014
Palmarejo royalty obligation embedded derivative | $ | (5,866 | ) |  | $ | 3,101 |  |  | $ | (2,001 | )
Rochester net smelter returns (“NSR”) royalty obligation | (4,133 | ) |  | 818 |  |  | 3,653 |
Silver and gold options | (1,582 | ) |  | 1,283 |  |  | 1,058 |
Foreign exchange contracts | — |  |  | — |  |  | 908 |
Fair value adjustments, net | $ | (11,581 | ) |  | $ | 5,202 |  |  | $ | 3,618 |
Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3). The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
| Fair Value at December 31, 2016
In thousands | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Equity securities | $ | 4,488 |  |  | $ | 4,209 |  |  | $ | — |  |  | $ | 279 |
Liabilities: |  |  |  |  |  |  |
Rochester NSR royalty obligation | 9,287 |  |  | — |  |  | — |  |  | 9,287 |
Other derivative instruments, net | 762 |  |  | — |  |  | 762 |  |  | — |
| $ | 10,049 |  |  | $ | — |  |  | $ | 762 |  |  | $ | 9,287 |
| Fair Value at December 31, 2015
In thousands | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Equity securities | $ | 2,766 |  |  | $ | 2,756 |  |  | $ | — |  |  | $ | 10 |
Liabilities: |  |  |  |  |  |  |
Palmarejo royalty obligation embedded derivative | $ | 4,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,957 |
Rochester NSR royalty obligation | 9,593 |  |  | — |  |  | — |  |  | 9,593 |
Other derivative instruments, net | 508 |  |  | — |  |  | 508 |  |  | — |
| $ | 15,058 |  |  | $ | — |  |  | $ | 508 |  |  | $ | 14,550 |
The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices. Such instruments are classified within Level 1 of the fair value hierarchy. Quoted market prices are not available for certain equity securities; these securities are valued using pricing models, which require the use of observable and unobservable inputs, and are classified within Level 3 of the fair value hierarchy. The Company’s silver and gold options and other derivative instruments, net, which relate to concentrate and certain doré sales contracts and foreign exchange contracts, are valued using pricing models, which require inputs that are derived from observable market data, including contractual terms, forward market prices, yield curves, credit spreads, and other unobservable inputs. The model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. The fair value of the Palmarejo royalty obligation embedded derivative and Rochester NSR royalty obligation were estimated based on observable market data including contractual terms, forward silver and gold prices, yield curves, and credit spreads, as well as the Company’s current mine plan which is considered a significant unobservable input. Therefore, the Company has classified these obligations as Level 3 financial liabilities. Based on current mine plans, 1.7 years was used to estimate the fair value of the Rochester NSR royalty obligation at December 31, 2016. At December 31, 2016, there was no Palmarejo royalty obligation or related embedded derivative as a result of the satisfaction of the minimum ounce obligation in the third quarter of 2016. No assets or liabilities were transferred between fair value levels in the year ended December 31, 2016. The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the years ended December 31, 2016, and 2015:
| Year ended December 31, 2016
In thousands | Balance at the beginning of the period |  | Revaluation |  | Settlements |  | Balance at the end of the period
Assets: |  |  |  |  |  |  |
Equity securities | $ | 10 |  |  | $ | 272 |  |  | $ | (3 | ) |  | $ | 279 |
Liabilities: |  |  |  |  |  |  |
Palmarejo royalty obligation embedded derivative | $ | 4,957 |  |  | $ | 5,866 |  |  | $ | (10,823 | ) |  | $ | — |
Rochester NSR royalty obligation | $ | 9,593 |  |  | $ | 4,133 |  |  | $ | (4,439 | ) |  | $ | 9,287 |
| Year ended December 31, 2015
In thousands | Balance at the beginning of the period |  | Revaluation |  | Settlements |  | Balance at the end of the period
Assets: |  |  |  |  |  |  |
Equity securities | $ | 1,379 |  |  | $ | (983 | ) |  | $ | (386 | ) |  | $ | 10 |
Liabilities: |  |  |  |  |  |  |
Palmarejo royalty obligation embedded derivative | $ | 21,912 |  |  | $ | (3,101 | ) |  | $ | (13,854 | ) |  | $ | 4,957 |
Rochester NSR royalty obligation | $ | 15,370 |  |  | $ | (818 | ) |  | $ | (4,959 | ) |  | $ | 9,593 |
During 2016, Coeur recorded write-downs related to Mining properties totaling $4.4 million ($3.9 million net of tax). The operator of the Endeavor mine in Australia, on which the Company has a 100% silver stream, announced in early 2016 a significant curtailment of production due to low lead and zinc prices. As a result, Coeur recorded a $2.5 million write-down of the mineral interest associated with the Endeavor silver stream within the Coeur Capital segment at March 31, 2016. In April 2016, Coeur sold its tiered NSR royalty on the El Gallo mine to the operator, a subsidiary of McEwen Mining Inc., for total consideration of approximately $6.3 million, including $1 million in contingent consideration. In anticipation of this sale, the Company recorded a $1.9 million write-down of the mineral interest within the Coeur Capital segment at March 31, 2016. During 2015, Coeur recorded write-downs related to Property, plant, and equipment and Mining properties totaling $313.3 million ($276.5 million net of tax). The fair values of Property, plant, and equipment and Mining properties were estimated using a discounted cash flow approach. The discounted cash flow model used significant unobservable inputs and is therefore classified within Level 3 for the fair value hierarchy. The following table sets forth the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements:
Description | Valuation technique | Unobservable input | Range / Weighted Average
Property, plant, and equipment and Mining properties | Discounted cash flow | Discount rate | 7.50% - 11.00%
|  | Long-term silver price | $17.50
|  | Long-term gold price | $1,200
During 2014, Coeur recorded write-downs related to Property, plant, and equipment and Mining properties totaling $1,472.7 million ($1,021.8 million net of tax). The fair values of Property, plant, and equipment and Mining properties were estimated using a discounted cash flow approach. The discounted cash flow model used significant unobservable inputs and is therefore classified within Level 3 for the fair value hierarchy. The following table sets forth the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company's non-recurring Level 3 fair value measurements:
Description | Valuation technique | Unobservable input | Range / Weighted Average
Property, plant, and equipment and Mining properties | Discounted cash flow | Discount rate | 8.00% - 10.75%
|  | Long-term silver price | $19.00
|  | Long-term gold price | $1,275
The fair value of financial assets and liabilities carried at book value in the financial statements at December 31, 2016 and December 31, 2015 is presented in the following table:
| December 31, 2016
In thousands | Book Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Liabilities: |  |  |  |  |  |  |  |  |
7.875% Senior Notes due 2021(1) | $ | 175,991 |  |  | $ | 184,373 |  |  | $ | — |  |  | $ | 184,373 |  |  | $ | — |
(1) | Net of unamortized debt issuance costs and premium received of $2.0 million.
The fair values of 7.875% Senior Notes due 2021 (the “Senior Notes”) outstanding were estimated using quoted market prices.
| December 31, 2015
In thousands | Book Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Liabilities: |  |  |  |  |  |  |  |  |
3.25% Convertible Senior Notes due 2028 | $ | 712 |  |  | $ | 693 |  |  | $ | — |  |  | $ | 693 |  |  | $ | — |
Senior Notes(1) | 373,433 |  |  | 227,487 |  |  | — |  |  | 227,487 |  |  | — |
Term Loan due 2020(2) | 94,489 |  |  | 99,500 |  |  | — |  |  | 99,500 |  |  | — |
San Bartolomé Lines of Credit | 4,571 |  |  | 4,571 |  |  | — |  |  | 4,571 |  |  | — |
Palmarejo gold production royalty obligation | 15,207 |  |  | 15,580 |  |  | — |  |  | — |  |  | 15,580 |
(1) | Net of unamortized debt issuance costs and premium received of $5.3 million.
(2) | Net of unamortized debt issuance costs of $5.0 million.
The fair values of the Senior Notes outstanding were estimated using quoted market prices. The fair value of the Term Loan due 2020 (the “Term Loan”) approximates book value (excluding unamortized debt issuance costs) as the liability is secured, has a variable interest rate, and lacks significant credit concerns. The fair value of the San Bartolomé line of credit approximates book value due to the short-term nature of the liability and absence of significant interest rate or credit concerns. The fair value of the Palmarejo gold production royalty obligation is estimated based on observable market data including contractual terms, forward silver and gold prices, yield curves, and credit spreads, as well as the Company’s current mine plan which is considered a significant unobservable input.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
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