Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Fair Value Adjustments to Comprehensive income (Loss)

The following table presents the components of Fair value adjustments, net:



	Three months ended September 30,					Nine months ended September 30,
In thousands	2015		2014			2015		2014
Palmarejo royalty obligation embedded derivative	$	2,983	$	8,736		$	1,823	$	(6,560	)
Rochester net smelter royalty (NSR) royalty obligation	1,752		4,345			596		1,835
Silver and gold options	1,051		3,081			1,238		213
Foreign exchange contracts	—		(57		)	—		901
Fair value adjustments, net	$	5,786	$	16,105		$	3,657	$	(3,611	)

Financial assets and liabilities measured at fair value on recurring basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



	Fair Value at September 30, 2015
In thousands	Total		Level 1		Level 2		Level 3
Assets:
Equity securities	$	3,213	$	3,124	$	—	$	89
Liabilities:
Palmarejo royalty obligation embedded derivative	$	9,024	$	—	$	—	$	9,024
Rochester NSR royalty obligation	10,940		—		—		10,940
Other derivative instruments, net	431		—		431		—
	$	20,395	$	—	$	431	$	19,964



	Fair Value at December 31, 2014
In thousands	Total		Level 1		Level 2		Level 3
Assets:
Equity securities	$	5,982	$	4,603	$	—	$	1,379
Silver and gold options	3,882		—		3,882		—
	$	9,864	$	4,603	$	3,882	$	1,379
Liabilities:
Palmarejo royalty obligation embedded derivative	$	21,912	$	—	$	—	$	21,912
Rochester NSR royalty obligation	15,370		—		—		15,370
Silver and gold options	1,039		—		1,039		—
Other derivative instruments, net	805		—		805		—
	$	39,126	$	—	$	1,844	$	37,282

Changes in the fair value of the Company's Level 3 financial liabilities

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the three and nine months ended September 30, 2015:



	Three months ended September 30, 2015
In thousands	Balance at the beginning of the period		Revaluation			Settlements			Balance at the end of the period
Assets:
Equity securities	$	89	$	—		$	—		$	89
Liabilities:
Palmarejo royalty obligation embedded derivative	$	15,281	$	(2,983	)	$	(3,274	)	$	9,024
Rochester NSR royalty obligation	13,905		(1,752		)	(1,213		)	10,940



	Nine months ended September 30, 2015
In thousands	Balance at the beginning of the period		Revaluation			Settlements			Balance at the end of the period
Assets:
Equity securities	$	1,379	$	(904	)	$	(386	)	$	89
Liabilities:
Palmarejo royalty obligation embedded derivative	$	21,912	$	(1,823	)	$	(11,065	)	$	9,024
Rochester NSR royalty obligation	15,370		(596		)	(3,834		)	10,940

Financial Assets and Liabilities not Measured at Fair Value

The fair value of financial assets and liabilities carried at book value in the financial statements at September 30, 2015 and December 31, 2014 is presented in the following table:



	September 30, 2015
In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3
Liabilities:
3.25% Convertible Senior Notes due 2028	$	712	$	696	$	—	$	696	$	—
7.875% Senior Notes due 2021⁽¹⁾	426,533		260,016		—		260,016		—
Term Loan due 2020⁽²⁾	94,557		99,750		—		99,750		—
San Bartolomé Lines of Credit	9,142		9,142		—		9,142		—
Palmarejo gold production royalty obligation	20,258		20,991		—		—		20,991

⁽¹⁾Net of unamortized debt issuance costs and premium received of $6.4 million.

⁽²⁾Net of unamortized debt issuance costs of $5.2 million.



	December 31, 2014
In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3
Liabilities:
3.25% Convertible Senior Notes due 2028	$	5,334	$	4,979	$	—	$	4,979	$	—
7.875% Senior Notes due 2021⁽¹⁾	427,603		343,305		—		343,305		—
San Bartolomé Lines of Credit	14,785		14,785		—		14,785		—
Palmarejo gold production royalty obligation	34,047		38,290		—		—		38,290