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Segment Reporting | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s operating segments include the Palmarejo complex, and the Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip mine is engaged in the discovery, mining, and production of silver, zinc and lead. Silvertip commenced commercial production in September 2018. Other includes the Sterling/Crown project and La Preciosa project, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. The Company determined that the disposition in the first quarter of 2018 of Empresa Minera Manquiri S.A., a Bolivian Sociedad anonima (“Manquiri”), which operates the San Bartolomé mine, represented a strategic shift to a North America-focused mining portfolio and had significant effect on the entity's results and operations; therefore, the results of operations are presented as discontinued operations in Other for all periods presented. Financial information relating to the Company’s segments is as follows (in thousands):
Year ended December 31, 2019 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip (3) |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 141,669 |  |  | $ | 50,225 |  |  | $ | 181,111 |  |  | $ | 120,342 |  |  | $ | — |  |  | $ | — |  |  | $ | 493,347 |
Silver sales | 111,032 |  |  | 61,799 |  |  | — |  |  | 1,072 |  |  | 17,575 |  |  | — |  |  | 191,478 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | 12,806 |  |  | — |  |  | 12,806 |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | 13,871 |  |  | — |  |  | 13,871 |
Metal sales | 252,701 |  |  | 112,024 |  |  | 181,111 |  |  | 121,414 |  |  | 44,252 |  |  | — |  |  | 711,502 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 141,927 |  |  | 100,205 |  |  | 119,602 |  |  | 80,689 |  |  | 108,758 |  |  | — |  |  | 551,181 |
Amortization | 59,379 |  |  | 18,041 |  |  | 50,592 |  |  | 12,280 |  |  | 36,738 |  |  | 1,846 |  |  | 178,876 |
Exploration | 5,658 |  |  | 657 |  |  | 5,588 |  |  | 272 |  |  | 2,469 |  |  | 7,883 |  |  | 22,527 |
Write-downs | — |  |  | — |  |  | — |  |  | — |  |  | 250,814 |  |  | — |  |  | 250,814 |
Other operating expenses | 4,591 |  |  | 4,572 |  |  | 1,248 |  |  | 2,832 |  |  | 1,216 |  |  | 38,455 |  |  | 52,914 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Loss on debt extinguishment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,281 | ) |  | (1,281 | )
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,030 |  |  | 16,030 |
Interest expense, net | (444 | ) |  | (1,015 | ) |  | (1,333 | ) |  | (100 | ) |  | (1,137 | ) |  | (20,742 | ) |  | (24,771 | )
Other, net | (4,798 | ) |  | (378 | ) |  | (704 | ) |  | 89 |  |  | (557 | ) |  | 3,155 |  |  | (3,193 | )
Income and mining tax (expense) benefit | (14,257 | ) |  | (709 | ) |  | — |  |  | (3,041 | ) |  | 32,084 |  |  | (2,948 | ) |  | 11,129 |
Income (loss) from continuing operations | $ | 21,647 |  |  | $ | (13,553 | ) |  | $ | 2,044 |  |  | $ | 22,289 |  |  | $ | (325,353 | ) |  | $ | (53,970 | ) |  | $ | (346,896 | )
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,693 |  |  | $ | 5,693 |
Segment assets(2) | $ | 319,292 |  |  | $ | 284,878 |  |  | $ | 194,076 |  |  | $ | 84,765 |  |  | $ | 164,125 |  |  | $ | 168,647 |  |  | $ | 1,215,783 |
Capital expenditures | $ | 32,658 |  |  | $ | 22,592 |  |  | $ | 23,513 |  |  | $ | 2,220 |  |  | $ | 17,504 |  |  | $ | 1,285 |  |  | $ | 99,772 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests (3) Subsequent to the end of the period covered by this Report, the Company made the decision to temporarily suspend mining and processing activities at Silvertip as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges. The Company plans to (i) double its exploration investment in 2020 to potentially further expand the mineralized material and extend the mine life, and (ii) pursue a mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow
Year ended December 31, 2018 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 131,758 |  |  | $ | 66,556 |  |  | $ | 132,924 |  |  | $ | 95,770 |  |  | — |  |  | $ | — |  |  | $ | 427,008 |
Silver sales | 113,998 |  |  | 75,252 |  |  | — |  |  | 746 |  |  | 3,157 |  |  | — |  |  | 193,153 |
Zinc sales | — |  |  | — |  |  | — |  |  | — |  |  | 3,612 |  |  | — |  |  | 3,612 |
Lead sales | — |  |  | — |  |  | — |  |  | — |  |  | 2,131 |  |  | — |  |  | 2,131 |
Metal sales | 245,756 |  |  | 141,808 |  |  | 132,924 |  |  | 96,516 |  |  | 8,900 |  |  | — |  |  | 625,904 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 120,088 |  |  | 105,677 |  |  | 112,364 |  |  | 67,201 |  |  | 35,620 |  |  | — |  |  | 440,950 |
Amortization | 60,744 |  |  | 20,909 |  |  | 29,508 |  |  | 11,072 |  |  | 5,235 |  |  | 1,005 |  |  | 128,473 |
Exploration | 10,516 |  |  | 332 |  |  | 5,871 |  |  | 104 |  |  | 2,748 |  |  | 5,826 |  |  | 25,397 |
Other operating expenses | 3,043 |  |  | 7,071 |  |  | 1,721 |  |  | 2,686 |  |  | 303 |  |  | 36,564 |  |  | 51,388 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value adjustments, net | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,638 |  |  | 3,638 |
Interest expense, net | (2,137 | ) |  | (466 | ) |  | (973 | ) |  | (40 | ) |  | (766 | ) |  | (19,982 | ) |  | (24,364 | )
Other, net | (8,308 | ) |  | (1,211 | ) |  | 2,795 |  |  | (834 | ) |  | (370 | ) |  | (16,777 | ) |  | (24,705 | )
Income and mining tax (expense) benefit | (15,724 | ) |  | (874 | ) |  | — |  |  | (1,063 | ) |  | 16,057 |  |  | 18,384 |  |  | 16,780 |
Income (loss) from continuing operations | $ | 25,196 |  |  | $ | 5,268 |  |  | $ | (14,718 | ) |  | $ | 13,516 |  |  | $ | (20,085 | ) |  | $ | (58,132 | ) |  | $ | (48,955 | )
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 550 |  |  | $ | 550 |
Segment assets(2) | $ | 363,024 |  |  | $ | 269,903 |  |  | $ | 224,460 |  |  | $ | 102,246 |  |  | 415,998 |  |  | $ | 175,040 |  |  | $ | 1,550,671 |
Capital expenditures | $ | 29,425 |  |  | $ | 9,919 |  |  | $ | 44,738 |  |  | $ | 3,382 |  |  | 52,932 |  |  | $ | 391 |  |  | $ | 140,787 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Year ended December 31, 2017 | Palmarejo |  | Rochester |  | Kensington |  | Wharf |  | Silvertip |  | Other |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Gold sales | $ | 146,187 |  |  | $ | 68,964 |  |  | $ | 154,469 |  |  | $ | 124,629 |  |  | — |  |  | $ | — |  |  | $ | 494,249 |
Silver sales | 128,622 |  |  | 83,716 |  |  | — |  |  | 1,272 |  |  | — |  |  | 1,739 |  |  | 215,349 |
Metal sales | 274,809 |  |  | 152,680 |  |  | 154,469 |  |  | 125,901 |  |  | — |  |  | 1,739 |  |  | 709,598 |
Costs and Expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Costs applicable to sales(1) | 146,176 |  |  | 107,921 |  |  | 116,096 |  |  | 69,322 |  |  | — |  |  | 745 |  |  | 440,260 |
Amortization | 73,744 |  |  | 22,306 |  |  | 36,022 |  |  | 13,012 |  |  | — |  |  | 1,465 |  |  | 146,549 |
Exploration | 11,924 |  |  | 1,352 |  |  | 8,604 |  |  | 320 |  |  | — |  |  | 8,111 |  |  | 30,311 |
Other operating expenses | 1,263 |  |  | 3,394 |  |  | 1,412 |  |  | 2,468 |  |  | 153 |  |  | 43,862 |  |  | 52,552 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |
Loss on debt extinguishment | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (9,342 | ) |  | (9,342 | )
Fair value adjustments, net | — |  |  | (864 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (864 | )
Interest expense, net | (487 | ) |  | (496 | ) |  | (413 | ) |  | (66 | ) |  | (2,212 | ) |  | (12,766 | ) |  | (16,440 | )
Other, net | (851 | ) |  | 2,193 |  |  | (922 | ) |  | 172 |  |  | 1,142 |  |  | 24,909 |  |  | 26,643 |
Income and mining tax (expense) benefit | (24,330 | ) |  | (1,028 | ) |  | — |  |  | (3,936 | ) |  | (932 | ) |  | 1,228 |  |  | (28,998 | )
Income (loss) from continuing operations | $ | 16,034 |  |  | $ | 17,512 |  |  | $ | (9,000 | ) |  | $ | 36,949 |  |  | $ | (2,155 | ) |  | $ | (48,415 | ) |  | $ | 10,925 |
Income (loss) from discontinued operations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | (12,244 | ) |  | $ | (12,244 | )
Segment assets(2) | $ | 377,621 |  |  | $ | 239,223 |  |  | $ | 212,588 |  |  | $ | 104,010 |  |  | 339,369 |  |  | $ | 71,742 |  |  | $ | 1,344,553 |
Capital expenditures | $ | 29,902 |  |  | $ | 40,874 |  |  | $ | 36,248 |  |  | $ | 8,844 |  |  | 17,684 |  |  | $ | 3,182 |  |  | $ | 136,734 |
(1) Excludes amortization (2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Assets | December 31, 2019 |  | December 31, 2018
Total assets for reportable segments | $ | 1,215,783 |  |  | $ | 1,550,671 |
Cash and cash equivalents | 55,645 |  |  | 115,081 |
Other assets | 107,208 |  |  | 46,748 |
Total consolidated assets | $ | 1,378,636 |  |  | $ | 1,712,500 |
Geographic Information
Long-Lived Assets | December 31, 2019 |  | December 31, 2018
United States | $ | 494,286 |  |  | $ | 515,649 |
Mexico | 312,168 |  |  | 342,007 |
Canada | 146,804 |  |  | 404,185 |
Other | 7,486 |  |  | 8,177 |
Total | $ | 960,744 |  |  | $ | 1,270,018 |
Revenue | Year ended December 31,
2019 |  | 2018 |  | 2017
United States | $ | 414,548 |  |  | $ | 371,248 |  |  | $ | 433,050 |
Mexico | 252,701 |  |  | 245,756 |  |  | 274,809 |
Canada | 44,253 |  |  | 8,900 |  |  | — |
Australia | — |  |  | — |  |  | 1,739 |
Total | $ | 711,502 |  |  | $ | 625,904 |  |  | $ | 709,598 |
The Company's doré, as well as the concentrate product 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 then sells its gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe. The Company had eight trading counterparties at December 31, 2019. The Company's sales of doré or concentrate product produced by the Palmarejo, Rochester, and Wharf mines amounted to approximately 68%, 77%, and 78% of total metal sales for the years ended December 31, 2019, 2018, and 2017, respectively. In November 2018, one of the refiners of the Company’s doré, RMC, a U.S.-based precious metals refiner, filed for protection under Chapter 11 of the United States Bankruptcy Code. See Note 5 -- Receivables for additional detail. The Company's gold concentrate product from the Kensington mine and the zinc and lead concentrates from the Silvertip mine are sold under a variety of agreements with smelters and traders, and the smelters and traders pay the Company for the metals recovered from the concentrates. The Company’s sales of concentrate produced by the Kensington and Silvertip mines amounted to approximately 32%, 23%, and 22% of total metal sales for the years ended December 31, 2019, 2018, and 2017, respectively. The Company believes that the loss of any one smelter, refiner, trader or third-party customer would not materially adversely affect the Company due to the liquidity of the markets and current availability of alternative trading counterparties. The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years December 31, 2019, 2018, and 2017 (in millions):
| Year ended December 31, |
Customer | 2019 |  | 2018 |  | 2017 | Segments reporting revenue
Asahi | $ | 341.0 |  |  | $ | 213.0 |  |  | $ | 124.1 |  | Palmarejo, Wharf, Rochester
Ocean Partners | 149.7 |  |  | 74.8 |  |  | — |  | Silvertip, Kensington
Techemet Metal Trading | 9.4 |  |  | 83.3 |  |  | 104.8 |  | Rochester, Wharf
RMC | — |  |  | 71.7 |  |  | 132.4 |  | Palmarejo, Rochester
China National Gold | — |  |  | 54.1 |  |  | 137.5 |  | Kensington

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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