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Note 11 - Business Segments and Significant Customers | 12 Months Ended
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Dec. 31, 2012
Segment Reporting Disclosure [Text Block] | Note 11: Business Segments and Significant Customers We discover, acquire, develop, produce, and market concentrates and doré containing silver, gold, lead and zinc. Our products consist of both metal concentrates, which we sell to custom smelters, and unrefined bullion bars (doré), which may be sold as doré or further refined before sale to precious metals traders. We are currently organized and managed by two segments, which represent our operating units: the Greens Creek unit and the Lucky Friday unit. General corporate activities not associated with operating units and their various exploration activities, as well as discontinued operations and idle properties, are presented as “other.” Interest expense, interest income and income taxes are considered general corporate items, and are not allocated to our segments. Sales of metal concentrates and metal products are made principally to custom smelters and metals traders. The percentage of sales contributed by each segment is reflected in the following table:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Greens Creek |  |  | 100.0 | % |  |  | 71.8 | % |  |  | 74.8 | %
Lucky Friday |  |  | — |  |  |  | 28.2 | % |  |  | 25.2 | %
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The tables below present information about reportable segments as of and for the years ended December 31, 2012, 2011 and 2010 (in thousands).
|  | 2012 |  |  | 2011 |  |  | 2010 |
Net sales to unaffiliated customers: |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 320,895 |  |  | $ | 342,906 |  |  | $ | 313,318 |
Lucky Friday |  |  | 248 |  |  |  | 134,728 |  |  |  | 105,495 |
|  | $ | 321,143 |  |  | $ | 477,634 |  |  | $ | 418,813 |
Income (loss) from operations: |  |  |  |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 138,245 |  |  | $ | 181,116 |  |  | $ | 138,973 |
Lucky Friday |  |  | (25,179 | ) |  |  | 75,608 |  |  |  | 48,639 |
Other |  |  | (75,200 | ) |  |  | (59,079 | ) |  |  | (239,167 | )
|  | $ | 37,866 |  |  | $ | 197,645 |  |  | $ | (51,555 | )
Capital additions (including non-cash additions): |  |  |  |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 62,184 |  |  | $ | 41,657 |  |  | $ | 18,280 |
Lucky Friday |  |  | 55,998 |  |  |  | 60,454 |  |  |  | 54,370 |
Other |  |  | 11,760 |  |  |  | 35,274 |  |  |  | 2,089 |
|  | $ | 129,942 |  |  | $ | 137,385 |  |  | $ | 74,739 |
Depreciation, depletion and amortization: |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 43,522 |  |  | $ | 41,013 |  |  | $ | 51,671 |
Lucky Friday |  |  | — |  |  |  | 6,053 |  |  |  | 8,340 |
|  | $ | 43,522 |  |  | $ | 47,066 |  |  | $ | 60,011 |
Other significant non-cash items: |  |  |  |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 4,037 |  |  | $ | 2,326 |  |  | $ | 17,829 |
Lucky Friday |  |  | 92 |  |  |  | 14 |  |  |  | 5,053 |
Other |  |  | 33,922 |  |  |  | 31,470 |  |  |  | 57,651 |
|  | $ | 38,051 |  |  | $ | 33,810 |  |  | $ | 80,533 |
Identifiable assets: |  |  |  |  |  |  |  |  |  |  |  |
Greens Creek |  | $ | 741,666 |  |  | $ | 729,289 |  |  | $ | 740,573 |
Lucky Friday |  |  | 226,196 |  |  |  | 213,285 |  |  |  | 170,928 |
Other |  |  | 410,428 |  |  |  | 453,516 |  |  |  | 470,992 |
|  | $ | 1,378,290 |  |  | $ | 1,396,090 |  |  | $ | 1,382,493 |
The reductions in sales, income (loss) from operations,and depreciation, depletion, and amortization at the Lucky Friday segment for 2012 compared to 2011 and 2010 are due to the temporary suspension of production at the Lucky Friday mine during 2012. At the end of 2011, MSHA began a special impact inspection at the Lucky Friday mine which resulted in an order to remove built-up cementitious material from the Silver Shaft. In response, we submitted a plan to MSHA and received approval to remove the material, and this work commenced in the first quarter of 2012. In addition, the plan included removal of unused utilities, construction of a water ring to prevent ice from forming in the winter, the installation of a metal brattice, repair of shaft steel, and installation of a new power cable, all of which should improve the shaft's functionality and possibly improve the shaft's hoisting capacity. The Silver Shaft work was completed in early 2013, and limited production at the Lucky Friday has recommenced. We anticipate a ramp-up in mine output during the year, as additional productions areas of the mine come on line, until we return to full production levels in mid-2013. However, the timing of resuming full production levels may vary from our current estimates. The smelter contracts related to treatment of Lucky Friday concentrates have been suspended during the care-and-maintenance period based on force majeure. Once the Silver Shaft work was completed down to the 4900 foot level, we commenced work on a haulage way bypassing an area at the 5900 level impacted by a rock burst in December 2011, and the bypass was completed in early 2013. In addition to work on the Silver Shaft, other significant surface and underground capital programs have been planned, including restart of the #4 Shaft sinking in early 2013 and surface infrastructure and mill upgrades. During 2012, we incurred $25.3 million in non-capitalized expenses, including $6.3 million in depreciation, depletion, and amortization, which is reported in Lucky Friday suspension-related costs on the Consolidated Statements of Operations and Comprehensive Income. The following is sales information by geographic area based on the location of smelters (for concentrate shipments) and the location of parent companies (for doré sales to metals traders) for the years ended December 31, 2012, 2011 and 2010 (in thousands):
|  | 2012 |  |  | 2011 |  |  | 2010 |
United States |  | $ | 25,438 |  |  | $ | 24,409 |  |  | $ | 24,708 |
Canada |  |  | 34,441 |  |  |  | 240,569 |  |  |  | 124,862 |
Mexico |  |  | — |  |  |  | — |  |  |  | 16,258 |
Japan |  |  | 70,371 |  |  |  | 60,963 |  |  |  | 62,740 |
Korea |  |  | 120,106 |  |  |  | 92,919 |  |  |  | 94,114 |
China |  |  | 72,133 |  |  |  | 51,635 |  |  |  | 73,257 |
Belgium |  |  | — |  |  |  | — |  |  |  | 25,907 |
Total, excluding gains/losses on forward contracts |  | $ | 322,489 |  |  | $ | 470,495 |  |  | $ | 421,846 |
Sales of products for 2012 also include a net loss of $1.3 million on financially-settled forward contracts for lead and zinc contained in our concentrate sales. 2011 sales included a net gain of $7.1 million and 2010 sales included a net loss of $3.0 million on the contracts. See Note 10 for more information. The following are our long-lived assets by geographic area as of December 31, 2012 and 2011 (in thousands):
|  | 2012 |  |  | 2011 |
United States |  | $ | 996,405 |  |  | $ | 923,040 |
Canada |  |  | 198 |  |  |  | 99 |
Mexico |  |  | 56 |  |  |  | 73 |
|  | $ | 996,659 |  |  | $ | 923,212 |
Sales from continuing operations to significant metals customers as a percentage of total sales were as follows for the years ended December 31, 2012, 2011 and 2010:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Teck Metals Ltd. |  |  | 10.7 | % |  |  | 51.1 | % |  |  | 29.6 | %
Korea Zinc |  |  | 37.2 | % |  |  | 18.4 | % |  |  | 20.7 | %
Trafigura AG |  |  | 22.4 | % |  |  | 12.4 | % |  |  | 17.4 | %
MS Zinc |  |  | 12.3 | % |  |  | 6.9 | % |  |  | 7.0 | %

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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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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 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 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 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=6534315&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 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: 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 8: 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 Reference 9: 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 10: 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 11: 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 12: 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 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=6534315&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 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: 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 + Details
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