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Note 2 - Revision of Previously Issued Financial Statements | 9 Months Ended
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Sep. 30, 2018
Notes to Financial Statements |
Accounting Changes and Error Corrections [Text Block] | Note 2. Revision of Previously Issued Financial Statements for Immaterial Misstatements In the third quarter of 2018, we determined accumulated DDA and DDA expense at Casa Berardi, a business unit within our Hecla Quebec Inc. subsidiary, were understated for the periods from June 1, 2013 through June 30, 2018 as a result of errors in calculation from the date of acquisition of Casa Berardi as noted below:
| i. | understatement of DDA by approximately $35.5 million in the aggregate over 5 1/2 years. The error in calculation resulted from the foreign exchange translation of accumulated DDA and DDA expense from Canadian dollars (“CAD”) to U.S. dollars (“USD”), which was incorrectly set up in the financial reporting system to use the average exchange rate for the respective reporting period, when the historical exchange rate should have been used. The CAD to USD exchange rate at June 1, 2013 was 0.9646 and has subsequently weakened over the intervening periods, resulting in an understatement of accumulated DDA and DDA expense during the periods from June 1, 2013 to June 30, 2018. The adjustments in the third quarter of 2018 to record the cumulative amounts related to this understatement for prior periods through June 30, 2018 were:
Condensed Consolidated Balance Sheet (Unaudited) |  | (in millions) |
Credit - Accumulated DDA (recorded within properties, plants, equipment and mineral interests, net) |  | $ | (36.2 | )
Debit - Inventories: concentrates, doré, and stockpiled ore |  |  | 1.1 |
Debit - Accumulated deficit |  |  | 30.3 |
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) |  |  |  |
Debit - DDA expense |  |  | 5.0 |
Credit - Net foreign exchange gain (loss) |  |  | (0.2 | )
Net increase to net loss for the nine months ended September 30, 2018 |  |  | (4.8 | )
| ii. | overstatement of DDA of approximately $14.2 million in the aggregate over 5 1/2 years related to the accelerated conversion of costs from the mineral interest asset, which represents the value of the undeveloped mineral interest and is not depletable, to the mineral properties asset, which represents the value of proven and probable reserves and is depletable. The error in calculation arose from the incorrect use of fair value information available on the per ounce value at the date of acquisition and resulted in the overstatement of the proven and probable reserves asset, which is subject to depletion, and an understatement of the undeveloped mineral interest asset, both of which are categories reported within properties, plants, equipment and mineral interests, net on the balance sheet. The overstatement of the conversions to the proven and probable reserves asset during the periods from January 1, 2014 through June 30, 2018 resulted in overstatements of accumulated DDA and DDA expense in each of these periods. The adjustments in the third quarter of 2018 to record the cumulative amounts related to this overstatement for prior periods through June 30, 2018 were:
Condensed Consolidated Balance Sheet (Unaudited) |  | (in millions) |
Debit - Accumulated DDA (recorded within properties, plants, equipment and mineral interests, net) |  | $ | 14.2 |
Credit - Deferred tax liability |  |  | (3.8 | )
Credit - Accumulated deficit |  |  | (7.7 | )
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) |  |  |  |
Credit - DDA expense |  |  | (3.7 | )
Debit - Income tax provision (benefit) |  |  | 1.0 |
Net decrease to net loss for the nine months ended September 30, 2018 |  |  | 2.7 |
We assessed the materiality of the effect of the errors on our prior quarterly and annual financial statements, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin ("SAB") No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded the errors were not material to any of our previously issued financial statements. Consequently, we will correct these errors prospectively and revise our financial statements when the consolidated balance sheets, statements of operations and comprehensive income and cash flows for such prior periods are included in future filings (the "Revisions"). The Revisions had no net impact on our sales or net cash provided by operating activities for any period presented. The following tables present a summary of the impact, by financial statement line item, of the Revisions for the three months ended March 31, 2017, June 30, 2017 and September 30, 2017, the six months ended June 30, 2017, the nine months ended September 30, 2017, as of and for the year ended December 31, 2017, and for the year ended December 31, 2016:
|  | Three Months Ended September 30, 2017 |
(in thousands, except per share amounts) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 28,844 |  |  | $ | 674 |  |  | $ | 29,518 |
Total cost of sales |  |  | 97,202 |  |  |  | 674 |  |  |  | 97,876 |
Gross profit |  |  | 43,637 |  |  |  | (674 | ) |  |  | 42,963 |
Income (loss) from operations |  |  | 20,942 |  |  |  | (674 | ) |  |  | 20,268 |
Foreign exchange (loss) gain |  |  | (4,764 | ) |  |  | (153 | ) |  |  | (4,917 | )
Total other (expense) income |  |  | (24,931 | ) |  |  | (153 | ) |  |  | (25,084 | )
(Loss) income before income taxes |  |  | (3,989 | ) |  |  | (827 | ) |  |  | (4,816 | )
Income tax benefit (provision) |  |  | 5,401 |  |  |  | (271 | ) |  |  | 5,130 |
Net income |  | $ | 1,412 |  |  | $ | (1,098 | ) |  | $ | 314 |
Income applicable to common shareholders |  | $ | 1,274 |  |  | $ | (1,098 | ) |  | $ | 176 |
Comprehensive income |  |  | 9,048 |  |  |  | (1,098 | ) |  |  | 7,950 |
Basic income per common share after preferred dividends |  | $ | — |  |  | $ | — |  |  | $ | — |
Diluted income per common share after preferred dividends |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Nine Months Ended September 30, 2017 |
(in thousands, except per share amounts) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 83,365 |  |  | $ | 3,621 |  |  | $ | 86,986 |
Total cost of sales |  |  | 307,902 |  |  |  | 3,621 |  |  |  | 311,523 |
Gross profit |  |  | 109,760 |  |  |  | (3,621 | ) |  |  | 106,139 |
Income (loss) from operations |  |  | 40,788 |  |  |  | (3,621 | ) |  |  | 37,167 |
Foreign exchange (loss) gain |  |  | (10,909 | ) |  |  | 651 |  |  |  | (10,258 | )
Total other (expense) income |  |  | (54,935 | ) |  |  | 651 |  |  |  | (54,284 | )
(Loss) income before income taxes |  |  | (14,147 | ) |  |  | (2,970 | ) |  |  | (17,117 | )
Income tax benefit (provision) |  |  | 18,377 |  |  |  | (813 | ) |  |  | 17,564 |
Net income |  | $ | 4,230 |  |  | $ | (3,783 | ) |  | $ | 447 |
Income applicable to common shareholders |  | $ | 3,816 |  |  | $ | (3,783 | ) |  | $ | 33 |
Comprehensive income |  |  | 17,948 |  |  |  | (3,783 | ) |  |  | 14,165 |
Basic income per common share after preferred dividends |  | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | — |
Diluted income per common share after preferred dividends |  | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | — |
Condensed Consolidated Statements of Cash Flows (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 4,230 |  |  | $ | (3,783 | ) |  | $ | 447 |
Depreciation, depletion and amortization |  |  | 87,634 |  |  |  | 3,621 |  |  |  | 91,255 |
Foreign exchange loss (gain) |  |  | 11,171 |  |  |  | (651 | ) |  |  | 10,520 |
Deferred income taxes |  |  | (24,280 | ) |  |  | 813 |  |  |  | (23,467 | )
Cash provided by operating activities |  | $ | 74,115 |  |  | $ | — |  |  | $ | 74,115 |
|  | As of and for the Year Ended December 31, 2017 |
(in thousands) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |
Inventories: Concentrate, doré, and stockpiled ore |  | $ | 28,455 |  |  | $ | 911 |  |  | $ | 29,366 |
Total current assets |  |  | 320,325 |  |  |  | 911 |  |  |  | 321,236 |
Properties, plants, equipment and mineral interests, net |  |  | 2,020,021 |  |  |  | (20,710 | ) |  |  | 1,999,311 |
Total assets |  |  | 2,364,957 |  |  |  | (19,799 | ) |  |  | 2,345,158 |
Deferred tax liability |  |  | 121,546 |  |  |  | 2,806 |  |  |  | 124,352 |
Total liabilities |  |  | 881,075 |  |  |  | 2,806 |  |  |  | 883,881 |
Accumulated deficit |  |  | (195,484 | ) |  |  | (22,605 | ) |  |  | (218,089 | )
Total shareholders' equity |  |  | 1,483,882 |  |  |  | (22,605 | ) |  |  | 1,461,277 |
Total liabilities and shareholders' equity |  |  | 2,364,957 |  |  |  | (19,799 | ) |  |  | 2,345,158 |
Consolidated Statements of Operation and Comprehensive (Loss) Income |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 116,062 |  |  | $ | 4,537 |  |  | $ | 120,599 |
Total cost of sales |  |  | 420,789 |  |  |  | 4,537 |  |  |  | 425,326 |
Gross profit |  |  | 156,986 |  |  |  | (4,537 | ) |  |  | 152,449 |
Income (loss) from operations |  |  | 64,643 |  |  |  | (4,537 | ) |  |  | 60,106 |
Foreign exchange (loss) gain |  |  | (10,300 | ) |  |  | 620 |  |  |  | (9,680 | )
Total other (expense) income |  |  | (68,283 | ) |  |  | 620 |  |  |  | (67,663 | )
(Loss) income before income taxes |  |  | (3,640 | ) |  |  | (3,917 | ) |  |  | (7,557 | )
Income tax (provision) benefit |  |  | (19,879 | ) |  |  | (1,084 | ) |  |  | (20,963 | )
Net (loss) income |  | $ | (23,519 | ) |  | $ | (5,001 | ) |  | $ | (28,520 | )
(Loss) income applicable to common shareholders |  | $ | (24,071 | ) |  | $ | (5,001 | ) |  | $ | (29,072 | )
Comprehensive income (loss) |  |  | (12,290 | ) |  |  | (5,001 | ) |  |  | (17,291 | )
Basic (loss) income per common share after preferred dividends |  | $ | (0.06 | ) |  | $ | (0.01 | ) |  | $ | (0.07 | )
Diluted (loss) income per common share after preferred dividends |  | $ | (0.06 | ) |  | $ | (0.01 | ) |  | $ | (0.07 | )
Condensed Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income |  | $ | (23,519 | ) |  | $ | (5,001 | ) |  | $ | (28,520 | )
Depreciation, depletion and amortization |  |  | 121,930 |  |  |  | 4,537 |  |  |  | 126,467 |
Foreign exchange loss (gain) |  |  | 10,828 |  |  |  | (620 | ) |  |  | 10,208 |
Deferred income taxes |  |  | 18,308 |  |  |  | 1,084 |  |  |  | 19,392 |
Cash provided by operating activities |  | $ | 115,878 |  |  | $ | — |  |  | $ | 115,878 |
|  | Three Months Ended March 31, 2017 |
(in thousands) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 28,952 |  |  | $ | 1,483 |  |  | $ | 30,435 |
Total cost of sales |  |  | 107,628 |  |  |  | 1,483 |  |  |  | 109,111 |
Gross profit |  |  | 34,916 |  |  |  | (1,483 | ) |  |  | 33,433 |
Income from operations |  |  | 15,871 |  |  |  | (1,483 | ) |  |  | 14,388 |
Foreign exchange gain (loss) |  |  | (2,262 | ) |  |  | 2 |  |  |  | (2,260 | )
Total other expense |  |  | (18,108 | ) |  |  | 2 |  |  |  | (18,106 | )
Income (loss) before income taxes |  |  | (2,237 | ) |  |  | (1,481 | ) |  |  | (3,718 | )
Income tax (provision) benefit |  |  | 29,071 |  |  |  | (271 | ) |  |  | 28,800 |
Net income |  | $ | 26,834 |  |  | $ | (1,752 | ) |  | $ | 25,082 |
Income applicable to common shareholders |  | $ | 26,696 |  |  | $ | (1,752 | ) |  | $ | 24,944 |
Comprehensive income |  |  | 30,038 |  |  |  | (1,752 | ) |  |  | 28,286 |
Basic income per common share after preferred dividends |  | $ | 0.07 |  |  | $ | — |  |  | $ | 0.07 |
Diluted income per common share after preferred dividends |  | $ | 0.07 |  |  | $ | — |  |  | $ | 0.07 |
Condensed Consolidated Statements of Cash Flows (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 26,834 |  |  | $ | (1,752 | ) |  | $ | 25,082 |
Depreciation, depletion and amortization |  |  | 29,590 |  |  |  | 1,483 |  |  |  | 31,073 |
Foreign exchange (gain) loss |  |  | 506 |  |  |  | (2 | ) |  |  | 504 |
Deferred income taxes |  |  | (21,234 | ) |  |  | 271 |  |  |  | (20,963 | )
Cash provided by operating activities |  | $ | 38,285 |  |  | $ | — |  |  | $ | 38,285 |
|  | Three Months Ended June 30, 2017 |
(in thousands) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 25,569 |  |  | $ | 1,464 |  |  | $ | 27,033 |
Total cost of sales |  |  | 103,072 |  |  |  | 1,464 |  |  |  | 104,536 |
Gross profit |  |  | 31,207 |  |  |  | (1,464 | ) |  |  | 29,743 |
Income from operations |  |  | 3,975 |  |  |  | (1,464 | ) |  |  | 2,511 |
Foreign exchange gain (loss) |  |  | (3,883 | ) |  |  | 803 |  |  |  | (3,080 | )
Total other income (expense) |  |  | (11,896 | ) |  |  | 803 |  |  |  | (11,093 | )
Income (loss) before income taxes |  |  | (7,921 | ) |  |  | (661 | ) |  |  | (8,582 | )
Income tax (provision) benefit |  |  | (16,095 | ) |  |  | (271 | ) |  |  | (16,366 | )
Net income (loss) |  | $ | (24,016 | ) |  | $ | (932 | ) |  | $ | (24,948 | )
Income (loss) applicable to common shareholders |  | $ | (24,154 | ) |  | $ | (932 | ) |  | $ | (25,086 | )
Comprehensive income (loss) |  |  | (21,138 | ) |  |  | (932 | ) |  |  | (22,070 | )
Basic income (loss) per common share after preferred dividends |  | $ | (0.06 | ) |  | $ | — |  |  | $ | (0.06 | )
Diluted income (loss) per common share after preferred dividends |  | $ | (0.06 | ) |  | $ | — |  |  | $ | (0.06 | )
|  | Six Months Ended June 30, 2017 |
(in thousands) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 54,521 |  |  | $ | 2,947 |  |  | $ | 57,468 |
Total cost of sales |  |  | 210,700 |  |  |  | 2,947 |  |  |  | 213,647 |
Gross profit |  |  | 66,123 |  |  |  | (2,947 | ) |  |  | 63,176 |
Income from operations |  |  | 19,846 |  |  |  | (2,947 | ) |  |  | 16,899 |
Foreign exchange gain (loss) |  |  | (6,145 | ) |  |  | 805 |  |  |  | (5,340 | )
Total other income (expense) |  |  | (30,004 | ) |  |  | 805 |  |  |  | (29,199 | )
Income (loss) before income taxes |  |  | (10,158 | ) |  |  | (2,142 | ) |  |  | (12,300 | )
Income tax (provision) benefit |  |  | 12,976 |  |  |  | (542 | ) |  |  | 12,434 |
Net income (loss) |  | $ | 2,818 |  |  | $ | (2,684 | ) |  | $ | 134 |
Income (loss) applicable to common shareholders |  | $ | 2,542 |  |  | $ | (2,684 | ) |  | $ | (142 | )
Comprehensive income (loss) |  |  | 8,900 |  |  |  | (2,684 | ) |  |  | 6,216 |
Basic income (loss) per common share after preferred dividends |  | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | — |
Diluted income (loss) per common share after preferred dividends |  | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | — |
Condensed Consolidated Statements of Cash Flows (Unaudited) |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 2,818 |  |  | $ | (2,684 | ) |  | $ | 134 |
Depreciation, depletion and amortization |  |  | 56,908 |  |  |  | 2,947 |  |  |  | 59,855 |
Foreign exchange (gain) loss |  |  | 5,201 |  |  |  | (805 | ) |  |  | 4,396 |
Deferred income taxes |  |  | (22,113 | ) |  |  | 542 |  |  |  | (21,571 | )
Cash provided by operating activities |  | $ | 45,821 |  |  | $ | — |  |  | $ | 45,821 |
|  | For the Year Ended December 31, 2016 |
(in thousands) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Consolidated Statements of Operation and Comprehensive (Loss) Income |  |  |  |  |  |  |  |  |  |  |  |
Depreciation, depletion and amortization |  | $ | 116,126 |  |  | $ | 7,505 |  |  | $ | 123,631 |
Total cost of sales |  |  | 454,451 |  |  |  | 7,505 |  |  |  | 461,956 |
Gross profit |  |  | 191,506 |  |  |  | (7,505 | ) |  |  | 184,001 |
Income (loss) from operations |  |  | 116,944 |  |  |  | (7,505 | ) |  |  | 109,439 |
Foreign exchange (loss) gain |  |  | (2,926 | ) |  |  | 189 |  |  |  | (2,737 | )
Total other (expense) income |  |  | (19,969 | ) |  |  | 189 |  |  |  | (19,780 | )
(Loss) income before income taxes |  |  | 96,975 |  |  |  | (7,316 | ) |  |  | 89,659 |
Income tax (provision) benefit |  |  | (27,428 | ) |  |  | (662 | ) |  |  | (28,090 | )
Net (loss) income |  | $ | 69,547 |  |  | $ | (7,978 | ) |  | $ | 61,569 |
(Loss) income applicable to common shareholders |  | $ | 68,995 |  |  | $ | (7,978 | ) |  | $ | 61,017 |
Comprehensive income (loss) |  |  | 67,576 |  |  |  | (7,978 | ) |  |  | 59,598 |
Basic (loss) income per common share after preferred dividends |  | $ | 0.18 |  |  | $ | (0.02 | ) |  | $ | 0.16 |
Diluted (loss) income per common share after preferred dividends |  | $ | 0.18 |  |  | $ | (0.02 | ) |  | $ | 0.16 |
Condensed Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) income |  | $ | 69,547 |  |  | $ | (7,978 | ) |  | $ | 61,569 |
Depreciation, depletion and amortization |  |  | 117,413 |  |  |  | 7,505 |  |  |  | 124,918 |
Foreign exchange loss (gain) |  |  | 4,649 |  |  |  | (189 | ) |  |  | 4,460 |
Deferred income taxes |  |  | 2,112 |  |  |  | 662 |  |  |  | 2,774 |
Cash provided by operating activities |  | $ | 225,328 |  |  | $ | — |  |  | $ | 225,328 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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