Segment Reporting

6 Months Ended

Jun. 30, 2019

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. Other includes the Sterling/Crown Block and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

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



Three months ended June 30, 2019	Palmarejo			Rochester			Kensington			Wharf			Silvertip			Other			Total
Revenue
Gold sales	$	33,916		$	11,195		$	45,161		$	20,054		$	—		$	—		$	110,326
Silver sales	25,406			14,257			—			189			5,111			—			44,963
Zinc sales	—			—			—			—			2,604			—			2,604
Lead sales	—			—			—			—			4,230			—			4,230
Metal sales	59,322			25,452			45,161			20,243			11,945			—			162,123
Costs and Expenses
Costs applicable to sales⁽¹⁾	36,496			24,693			29,133			15,466			26,160			—			131,948
Amortization	14,212			3,963			12,537			2,225			9,878			389			43,204
Exploration	1,140			96			2,024			—			670			1,789			5,719
Other operating expenses	1,769			1,346			410			753			386			7,420			12,084
Other income (expense)
Fair value adjustments, net	—			—			—			—			—			(5,296		)	(5,296		)
Interest expense, net	(112		)	(170		)	(310		)	(28		)	(390		)	(5,815		)	(6,825		)
Other, net	(574		)	43			(16		)	239			(33		)	984			643
Income and mining tax (expense) benefit	(345		)	(814		)	—			(304		)	7,589			(580		)	5,546
Income (loss) from continuing operations	$	4,674		$	(5,587	)	$	731		$	1,706		$	(17,983	)	$	(20,305	)	$	(36,764	)
Income (loss) from discontinued operations	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Segment assets⁽²⁾	$	357,415		$	274,406		$	214,096		$	104,070		$	415,333		$	170,145		$	1,535,465
Capital expenditures	$	7,566		$	2,772		$	4,875		$	171		$	5,020		$	345		$	20,749

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests



Three months ended June 30, 2018	Palmarejo			Rochester			Kensington			Wharf			Silvertip			Other			Total
Revenue
Gold sales	$	36,258		$	15,599		$	35,735		$	29,621		$	—		$	—		$	117,213
Silver sales	34,486			18,069			—			219			—			—			52,774
Metal sales	$	70,744		$	33,668		$	35,735		$	29,840		$	—		$	—		$	169,987
Costs and Expenses
Costs applicable to sales⁽¹⁾	30,310			24,451			34,227			19,258			—			—			108,246
Amortization	14,633			4,793			6,441			3,353			—			239			29,459
Exploration	3,198			212			1,395			—			106			1,518			6,429
Other operating expenses	750			903			327			688			5			8,597			11,270
Other income (expense)
Fair value adjustments, net	—			—			—			—			—			(2,462		)	(2,462		)
Interest expense, net	(147		)	(125		)	(231		)	(11		)	(246		)	(5,258		)	(6,018		)
Other, net	755			466			(33		)	64			60			(768		)	544
Income and mining tax (expense) benefit	(3,646		)	(463		)	—			(1,036		)	943			485			(3,717		)
Income (loss) from continuing operations	$	18,815		$	3,187		$	(6,919	)	$	5,558		$	646		$	(18,357	)	$	2,930
Income (loss) from discontinued operations	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Segment assets⁽²⁾	$	373,310		$	253,638		$	215,753		$	99,878		390,155			$	115,170		$	1,447,904
Capital expenditures	$	9,479		$	669		$	10,708		$	1,162		19,045			$	102		$	41,165

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests



Six months ended June 30, 2019	Palmarejo			Rochester			Kensington			Wharf			Silvertip			Other			Total
Revenue
Gold sales	$	65,516		$	22,248		$	85,447		$	43,879		$	—		$	—		$	217,090
Silver sales	47,031			29,574			—			406			8,066			—			85,077
Zinc sales	—			—			—			—			8,238			—			8,238
Lead sales	—			—			—			—			6,588			—			6,588
Metal sales	112,547			51,822			85,447			44,285			22,892			—			316,993
Costs and Expenses
Costs applicable to sales⁽¹⁾	69,740			47,147			61,308			32,858			52,545			—			263,598
Amortization	28,740			8,000			24,264			4,906			18,304			866			85,080
Exploration	2,150			186			2,505			—			731			3,861			9,433
Other operating expenses	2,471			2,308			681			1,417			627			18,488			25,992
Other income (expense)
Fair value adjustments, net	—			—			—			—			—			3,824			3,824
Interest expense, net	(248		)	(312		)	(539		)	(49		)	(587		)	(11,544		)	(13,279		)
Other, net	(1,614		)	16			(3		)	325			(221		)	2,200			703
Income and mining tax (expense) benefit	946			(670		)	—			(477		)	17,340			(2,935		)	14,204
Income (loss) from continuing operations	$	8,530		$	(6,785	)	$	(3,853	)	$	4,903		$	(32,783	)	$	(31,670	)	$	(61,658	)
Income (loss) from discontinued operations	$	—		$	—		$	—		$	—		$	—		$	5,693		$	5,693
Segment assets⁽²⁾	$	357,415		$	274,406		$	214,096		$	104,070		$	415,333		$	170,145		$	1,535,465
Capital expenditures	$	16,242		$	7,417		$	14,231		$	602		$	9,097		$	598		$	48,187

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests



Six months ended June 30, 2018	Palmarejo			Rochester			Kensington			Wharf			Silvertip			Other			Total
Revenue
Gold sales	$	72,327		$	30,455		$	72,035		$	52,870		—			$	—		$	227,687
Silver sales	68,454			36,710			—			403			—			—			105,567
Metal sales	140,781			67,165			72,035			53,273			—			—			333,254
Costs and Expenses
Costs applicable to sales⁽¹⁾	61,406			48,756			62,857			34,567			—			—			207,586
Amortization	30,958			9,624			13,158			6,010			—			486			60,236
Exploration	7,168			245			2,985			10			106			2,598			13,112
Other operating expenses	1,481			1,787			648			1,353			25			19,005			24,299
Other income (expense)
Fair value adjustments, net	—			—			—			—			—			2,192			2,192
Interest expense, net	(266		)	(223		)	(474		)	(23		)	(656		)	(10,341		)	(11,983		)
Other, net	(1,389		)	426			(70		)	43			422			1,625			1,057
Income and mining tax (expense) benefit	(16,089		)	(834		)	—			(1,675		)	1,778			1,154			(15,666		)
Income (loss) from continuing operations	$	22,024		$	6,122		$	(8,157	)	$	9,678		$	1,413		$	(27,459	)	$	3,621
Income (loss) from discontinued operations	$	—		$	—		$	—		$	—		—			$	550		$	550
Segment assets⁽²⁾	$	373,310		$	253,638		$	215,753		$	99,878		390,155			$	115,170		$	1,447,904
Capital expenditures	$	18,772		$	3,302		$	22,072		$	1,506		37,674			$	184		$	83,510

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests



Assets	June 30, 2019		December 31, 2018
Total assets for reportable segments	$	1,535,465	$	1,550,671
Cash and cash equivalents	37,907		115,081
Other assets	103,858		46,748
Total consolidated assets	$	1,677,230	$	1,712,500

Geographic Information



Long-Lived Assets	June 30, 2019		December 31, 2018
Mexico	$	332,113	$	342,007
United States	506,981		515,649
Canada	397,825		404,185
Other	7,846		8,177
Total	$	1,244,765	$	1,270,018



Revenue	Three Months Ended June 30,				Six Months Ended June 30,
Revenue	2019		2018		2019		2018
United States	$	90,855	$	99,243	$	181,554	$	192,473
Mexico	59,322		70,744		112,547		140,781
Canada	11,946		—		22,892		—
Total	$	162,123	$	169,987	$	316,993	$	333,254