Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-making group is comprised of the Chief Executive Officer, Chief Financial Officer, and the Chief Operating Officer.

The operating segments are managed separately because each segment represents a distinct use of company resources and a separate contribution to the Company’s cash flows. The Company’s reportable operating segments include the Palmarejo, San Bartolomé, Martha, Rochester, Kensington and Endeavor mining properties and the Joaquin exploration property. All operating segments are engaged in the discovery and/or mining of gold and silver and generate the majority of their revenues from the sale of these precious metal concentrates and/or refined precious metals. Through September 2012, the Martha mine sold precious metal concentrates, typically under long-term contracts, to trading partners located in the United States and Switzerland. The Company ceased active mining operations at the Martha mine in September of 2012. The Kensington mine sells precious metals and concentrates, typically under long-term contracts to smelters in China and Germany. Refined gold and silver produced by the Rochester, Palmarejo, and San Bartolomé mines are principally sold on a spot basis to precious metals trading banks such as International Commodities, Mitsui, Mitsubishi, Standard Bank, TD Securities, Valcambi and Auramet. Concentrates produced at the Endeavor mine are sold to Nyrstar (formerly Zinifex), an Australian smelter. The Company’s exploration programs, other than the Joaquin project, are reported in its other segment. The other segment also includes the corporate headquarters, elimination of intersegment transactions and other items necessary to reconcile to consolidated amounts. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies above. The Company evaluates performance and allocates resources based on profit or loss before interest, income taxes, depreciation and amortization, unusual and infrequent items and extraordinary items.    

Financial information relating to the Company’s segments is as follows (in thousands):

Three months ended March 31, 2013	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Joaquin			Other			Total
Sales of metals	$	57,426		$	33,141		$	39,274		$	39,474		$	(501	)	$	2,983		$	—		$	—		$	171,797
Productions costs applicable to sales	(26,718		)	(15,678		)	(23,565		)	(21,502		)	—			(1,321		)	—			—			(88,784		)
Depreciation and depletion	(28,950		)	(4,756		)	(13,386		)	(2,181		)	(117		)	(824		)	—			(222		)	(50,436		)
Gross profit (loss)	1,758			12,707			2,323			15,791			(618		)	838			—			(222		)	32,577
Exploration expense	1,980			53			672			484			2,995			—			—			657			6,841
Loss on impairment	—			—			—			—			119			—			—			—			119
Other operating expenses	—			3,721			76			144			1,045			—			11			9,714			14,711
OPERATING INCOME (LOSS)	(222		)	8,933			1,575			15,163			(4,777		)	838			(11		)	(10,593		)	10,906
Interest and other income, net	1,941			605			130			57			908			(13		)	(14		)	206			3,820
Interest expense, net	(3,738		)	(32		)	(259		)	(5		)	(15		)	—			15			(5,698		)	(9,732		)
Fair value adjustments, net	14,429			—			4,227			—			—			—			—			(860		)	17,796
Income tax expense	(3,534		)	(4,328		)	—			—			73			—			—			(2,731		)	(10,520		)
Net income (loss)	$	8,876		$	5,178		$	5,673		$	15,215		$	(3,811	)	$	825		$	(10	)	$	(19,676	)	$	12,270
Segment assets (A)	$	1,900,071		$	303,761		$	498,762		$	114,381		$	8,304		$	93,770		$	31,054		$	13,561		$	2,963,664
Capital expenditures (B)	$	5,314		$	457		$	3,330		$	3,299		$	—		$	—		$	—		$	427		$	12,827

A. Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties

B. Balance represents cash flow amounts 

Three months ended March 31, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Joaquin		Other			Total
Sales of metals	$	123,722		$	41,376		$	10,377		$	18,758		$	3,618		$	6,713		$	—	$	—		$	204,564
Productions costs applicable to sales	(45,860		)	(13,608		)	(17,090		)	(9,565		)	(3,694		)	(2,737		)	—		—			(92,554		)
Depreciation and depletion	(37,769		)	(4,219		)	(6,605		)	(1,642		)	(596		)	(1,644		)	—		(117		)	(52,592		)
Gross profit (loss)	40,093			23,549			(13,318		)	7,551			(672		)	2,332			—		(117		)	59,418
Exploration expense	1,320			70			222			709			3,412			—			—		834			6,567
Other operating expenses	—			5			19			1,341			197			—			—		7,102			8,664
OPERATING INCOME (LOSS)	38,773			23,474			(13,559		)	5,501			(4,281		)	2,332			—		(8,053		)	44,187
Interest and other income, net	4,581			95			—			49			(75		)	—			—		357			5,007
Interest expense	(4,810		)	—			(892		)	(8		)	—			—			—		(960		)	(6,670		)
Fair value adjustments, net	(25,611		)	—			(551		)	—			—			—			—		3,049			(23,113		)
Income tax benefit (expense)	(3,544		)	(7,689		)	—			—			(201		)	—			—		(4,002		)	(15,436		)
Net income (loss)	$	9,389		$	15,880		$	(15,002	)	$	5,542		$	(4,557	)	$	2,332		$	—	$	(9,609	)	$	3,975
Segment assets (A)	$	2,008,004		$	285,276		$	504,082		$	90,072		$	24,183		$	36,372		$	—	$	17,104		$	2,965,093
Capital expenditures (B)	$	7,170		$	10,207		$	10,878		$	2,639		$	659		$	—		$	—	$	94		$	31,647

A. Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties

B. Balance represents cash flow amounts 

	March 31, 2013		December 31, 2012
Assets
Total assets for reportable segments	$	2,963,664	$	2,974,056
Cash and cash equivalents	331,311		125,440
Short term investments	1,498		999
Other assets	127,209		120,906
Total consolidated assets	$	3,423,682	$	3,221,401

Geographic Information

	March 31, 2013		December 31, 2012
Long Lived Assets:
United States	$	505,593	$	514,663
Australia	28,584		29,408
Chile	21		24
Argentina	95,053		95,134
Bolivia	237,157		240,905
Mexico	1,771,240		1,795,677
Total	$	2,637,648	$	2,675,811

	Three months ended March 31,
	2013			2012
Revenues:
United States	$	78,748		$	29,135
Mexico	57,426			123,722
Bolivia	33,141			41,376
Australia	2,983			6,713
Argentina	(501		)	3,618
Total	$	171,797		$	204,564