XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Segment Reporting | 12 Months Ended
--- | ---
Dec. 31, 2016
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s operating segments include Palmarejo, Rochester, Kensington, Wharf, San Bartolomé mines, 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 primarily holds the Endeavor silver stream. Other includes the La Preciosa project, Joaquin project, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. Financial information relating to the Company’s segments is as follows (in thousands):
Year ended December 31, 2016 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | San Bartolomé |  | Coeur Capital |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metal sales | $ | 141,273 |  |  | $ | 139,945 |  |  | $ | 146,593 |  |  | $ | 136,678 |  |  | $ | 93,880 |  |  | $ | 4,128 |  |  | $ | — |  |  | $ | 662,497 |
Royalties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,280 |  |  | — |  |  | 3,280 |
| 141,273 |  |  | 139,945 |  |  | 146,593 |  |  | 136,678 |  |  | 93,880 |  |  | 7,408 |  |  | — |  |  | 665,777 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 80,820 |  |  | 89,726 |  |  | 96,731 |  |  | 66,379 |  |  | 74,166 |  |  | 1,719 |  |  | — |  |  | 409,541 |
Amortization | 36,599 |  |  | 21,838 |  |  | 34,787 |  |  | 20,621 |  |  | 6,633 |  |  | 1,117 |  |  | 1,566 |  |  | 123,161 |
Exploration | 5,063 |  |  | 841 |  |  | 3,487 |  |  | 2 |  |  | — |  |  | 1,797 |  |  | 1,740 |  |  | 12,930 |
Write-downs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,446 |  |  | — |  |  | 4,446 |
Other operating expenses | 1,213 |  |  | 2,801 |  |  | 1,038 |  |  | 2,238 |  |  | 2,909 |  |  | 226 |  |  | 36,170 |  |  | 46,595 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (Loss) on debt extinguishments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,365 | ) |  | (21,365 | )
Fair value adjustments, net | (5,814 | ) |  | (4,133 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,634 | ) |  | (11,581 | )
Interest expense, net | (1,187 | ) |  | (664 | ) |  | (128 | ) |  | (69 | ) |  | (24 | ) |  | (34 | ) |  | (34,814 | ) |  | (36,920 | )
Other, net | (12,125 | ) |  | (3,859 | ) |  | (25 | ) |  | 17 |  |  | 1,590 |  |  | 6,014 |  |  | 10,263 |  |  | 1,875 |
Income and mining tax (expense) benefit | 45,085 |  |  | (2,785 | ) |  | — |  |  | (4,293 | ) |  | 6,252 |  |  | (2,504 | ) |  | 12,484 |  |  | 54,239 |
Net income (loss) | $ | 43,537 |  |  | $ | 13,298 |  |  | $ | 10,397 |  |  | $ | 43,093 |  |  | $ | 17,990 |  |  | $ | 1,579 |  |  | $ | (74,542 | ) |  | $ | 55,352 |
Segment assets(2) | $ | 436,642 |  |  | $ | 219,009 |  |  | $ | 199,232 |  |  | $ | 105,901 |  |  | $ | 76,317 |  |  | $ | 9,285 |  |  | $ | 75,652 |  |  | $ | 1,122,038 |
Capital expenditures | $ | 35,810 |  |  | $ | 16,446 |  |  | $ | 36,826 |  |  | $ | 4,812 |  |  | $ | 6,631 |  |  | $ | — |  |  | $ | 488 |  |  | $ | 101,013 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interest
Year ended December 31, 2015 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | San Bartolomé |  | Coeur Capital |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metal sales | $ | 169,133 |  |  | $ | 143,930 |  |  | $ | 148,710 |  |  | $ | 84,052 |  |  | $ | 84,679 |  |  | $ | 8,732 |  |  | $ | — |  |  | $ | 639,236 |
Royalties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,850 |  |  | — |  |  | 6,850 |
| 169,133 |  |  | 143,930 |  |  | 148,710 |  |  | 84,052 |  |  | 84,679 |  |  | 15,582 |  |  | — |  |  | 646,086 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 138,476 |  |  | 103,994 |  |  | 105,640 |  |  | 52,197 |  |  | 75,827 |  |  | 3,520 |  |  | — |  |  | 479,654 |
Amortization | 32,423 |  |  | 23,906 |  |  | 42,240 |  |  | 16,378 |  |  | 17,798 |  |  | 9,010 |  |  | 1,996 |  |  | 143,751 |
Exploration | 4,533 |  |  | 1,324 |  |  | 2,596 |  |  | 134 |  |  | 126 |  |  | (124 | ) |  | 3,058 |  |  | 11,647 |
Write-downs | 224,507 |  |  | — |  |  | — |  |  | — |  |  | 66,712 |  |  | 22,118 |  |  | — |  |  | 313,337 |
Other operating expenses | 1,293 |  |  | 2,948 |  |  | 1,301 |  |  | 1,717 |  |  | 1,787 |  |  | 33 |  |  | 41,548 |  |  | 50,627 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (Loss) on debt extinguishments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,916 |  |  | 15,916 |
Fair value adjustments, net | 3,160 |  |  | 818 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,224 |  |  | 5,202 |
Interest expense, net | (4,269 | ) |  | (748 | ) |  | (218 | ) |  | — |  |  | (725 | ) |  | — |  |  | (39,743 | ) |  | (45,703 | )
Other, net | (10,968 | ) |  | (13 | ) |  | 7 |  |  | 143 |  |  | 1,557 |  |  | (3,182 | ) |  | (3,475 | ) |  | (15,931 | )
Income and mining tax (expense) benefit | 37,597 |  |  | (1,497 | ) |  | — |  |  | (857 | ) |  | (5,154 | ) |  | 5,542 |  |  | (9,368 | ) |  | 26,263 |
Net income (loss) | $ | (206,579 | ) |  | $ | 10,318 |  |  | $ | (3,278 | ) |  | $ | 12,912 |  |  | $ | (81,893 | ) |  | $ | (16,615 | ) |  | $ | (82,048 | ) |  | $ | (367,183 | )
Segment assets(2) | $ | 406,648 |  |  | $ | 190,714 |  |  | $ | 197,873 |  |  | $ | 113,305 |  |  | $ | 91,141 |  |  | $ | 27,892 |  |  | $ | 75,737 |  |  | $ | 1,103,310 |
Capital expenditures | $ | 35,991 |  |  | $ | 25,330 |  |  | $ | 23,834 |  |  | $ | 3,211 |  |  | $ | 6,220 |  |  | $ | — |  |  | $ | 607 |  |  | $ | 95,193 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Year ended December 31, 2014 | Palmarejo |  | Rochester |  | Kensington |  | San Bartolomé |  | Coeur Capital |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Metal sales | $ | 244,003 |  |  | $ | 123,768 |  |  | $ | 136,960 |  |  | $ | 117,749 |  |  | $ | 10,046 |  |  | $ | — |  |  | $ | 632,526 |
Royalties | — |  |  | — |  |  | — |  |  | — |  |  | 3,216 |  |  | — |  |  | 3,216 |
| 244,003 |  |  | 123,768 |  |  | 136,960 |  |  | 117,749 |  |  | 13,262 |  |  | — |  |  | 635,742 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 187,276 |  |  | 91,462 |  |  | 105,342 |  |  | 89,659 |  |  | 4,206 |  |  | — |  |  | 477,945 |
Amortization | 69,431 |  |  | 20,790 |  |  | 43,619 |  |  | 19,423 |  |  | 7,015 |  |  | 2,158 |  |  | 162,436 |
Exploration | 6,671 |  |  | 2,636 |  |  | 8,005 |  |  | 120 |  |  | 515 |  |  | 3,793 |  |  | 21,740 |
Write-downs | 784,038 |  |  | — |  |  | 107,832 |  |  | 118,754 |  |  | 6,202 |  |  | 455,895 |  |  | 1,472,721 |
Other operating expenses | 620 |  |  | 2,813 |  |  | 796 |  |  | (251 | ) |  | 938 |  |  | 61,966 |  |  | 66,882 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | (1,847 | ) |  | 3,653 |  |  | — |  |  | — |  |  | — |  |  | 1,812 |  |  | 3,618 |
Interest expense, net | (9,320 | ) |  | (679 | ) |  | (214 | ) |  | (52 | ) |  | (1 | ) |  | (37,280 | ) |  | (47,546 | )
Other, net | 131 |  |  | 105 |  |  | (22 | ) |  | 2,461 |  |  | (7,141 | ) |  | (752 | ) |  | (5,218 | )
Income and mining tax (expense) benefit | 251,840 |  |  | (2,224 | ) |  | — |  |  | 18,114 |  |  | 2,067 |  |  | 158,457 |  |  | 428,254 |
Net income (loss) | $ | (563,229 | ) |  | $ | 6,922 |  |  | $ | (128,870 | ) |  | $ | (89,433 | ) |  | $ | (10,689 | ) |  | $ | (401,575 | ) |  | $ | (1,186,874 | )
Segment assets(2) | $ | 332,369 |  |  | $ | 196,765 |  |  | $ | 215,973 |  |  | $ | 188,616 |  |  | $ | 59,848 |  |  | $ | 81,688 |  |  | $ | 1,075,259 |
Capital expenditures | $ | 26,084 |  |  | $ | 11,898 |  |  | $ | 16,220 |  |  | $ | 7,937 |  |  | $ | — |  |  | $ | 2,105 |  |  | $ | 64,244 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Assets | December 31, 2016 |  | December 31, 2015
Total assets for reportable segments | $ | 1,122,038 |  |  | $ | 1,103,310 |
Cash and cash equivalents | 162,182 |  |  | 200,714 |
Other assets | 34,689 |  |  | 28,465 |
Total consolidated assets | $ | 1,318,909 |  |  | $ | 1,332,489 |
Geographic Information
Long-Lived Assets | December 31, 2016 |  | December 31, 2015
Mexico | $ | 397,697 |  |  | $ | 390,694 |
United States | 338,897 |  |  | 336,210 |
Bolivia | 31,539 |  |  | 35,201 |
Australia | 2,983 |  |  | 5,952 |
Argentina | 10,228 |  |  | 10,871 |
Other | 5,564 |  |  | 9,058 |
Total | $ | 786,908 |  |  | $ | 787,986 |
Revenue | Year ended December 31,
2016 |  | 2015 |  | 2014
United States | $ | 423,216 |  |  | $ | 376,692 |  |  | $ | 260,728 |
Mexico | 142,198 |  |  | 171,911 |  |  | 245,493 |
Bolivia | 93,880 |  |  | 84,679 |  |  | 117,749 |
Australia | 4,128 |  |  | 8,732 |  |  | 10,046 |
Other | 2,355 |  |  | 4,072 |  |  | 1,726 |
Total | $ | 665,777 |  |  | $ | 646,086 |  |  | $ | 635,742 |
The Company's doré, as well as the concentrate produced by the Wharf mine, is refined into gold and silver bullion according to benchmark standards set by the LBMA, which regulates the acceptable requirements for bullion traded in the London precious metals markets. The Company sells its silver and gold bullion to multi-national banks, bullion trading houses, and refiners across the globe. The Company has eleven trading counterparties at December 31, 2016. The Company's sales of doré and concentrate product produced by the Wharf mine amounted to approximately 77%, 74%, and 63% of total metal sales for the years ended December 31, 2016, 2015, and 2014, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and availability of alternative trading counterparties. The Company's concentrate produced by the Kensington mine is sold to smelters under purchase and sale agreements, and the smelters pay the Company for the gold and silver recovered from the concentrates. The concentrate was sold to two smelters at December 31, 2016. The Company's sales of concentrate produced by the Kensington mine amounted to approximately 23%, 26%, and 37% of total metal sales for the years ended December 31, 2016, 2015, and 2014, respectively. While the loss of a smelter may have a material adverse effect if alternate smelters are not available or if the failure to engage a new smelter results in a delay in the sale or purchase of Kensington concentrate, the Company believes that there is sufficient global capacity available to address the loss of a 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, 2016, 2015, and 2014 (in millions):
|  | Year ended December 31, |  |
Customer |  | 2016 |  | 2015 |  | 2014 |  | Segments reporting revenue
China National Gold |  | $ | 126.6 |  |  | $ | 126.2 |  |  | $ | 86.8 |  |  | Kensington
Ohio Precious Metals |  | 98.4 |  |  | 37.3 |  |  | 8.3 |  |  | Palmarejo, San Bartolomé,
Republic Metal Corporation |  | 93.3 |  |  | 47.7 |  |  | 4.0 |  |  | Palmarejo, San Bartolomé, Wharf
INTL Commodities |  | 76.7 |  |  | 33.1 |  |  | 22.4 |  |  | Palmarejo, San Bartolomé, Rochester, Wharf
Asahi (formerly Johnson Matthey) |  | 62.6 |  |  | 84.2 |  |  | 71.8 |  |  | Wharf, Rochester, San Bartolomé
Standard Bank |  | 29.0 |  |  | 34.7 |  |  | 87.5 |  |  | Palmarejo, Rochester
TD Securities |  | 15.5 |  |  | 81.3 |  |  | 106.7 |  |  | Palmarejo, Rochester
Mitsui & Co. |  | — |  |  | 137.7 |  |  | 133.8 |  |  | Palmarejo, Rochester

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 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=51669610&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 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: 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=51669610&loc=d3e9054-108599 Reference 11: 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=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration