XML 41 R28.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Summary of Contract Liability
The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.
The following table presents a roll forward of the Franco-Nevada contract liability balance:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2022202120222021
Opening Balance$7,742 $8,775 $8,150 $9,376 
Revenue Recognized(167)(307)(575)(908)
Closing Balance$7,575 $8,468 $7,575 $8,468 
In December 2021, the Company received a $15.0 million prepayment (the “December 2021 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 17). In March 2022, the Company exercised an option to receive a $10.0 million prepayment (the “March 2022 Prepayment). The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer. The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.
The following table presents a roll forward of the Amended Sales Contract liability balance:
Three Months Ended September 30,Nine Months Ended September 30,
In thousands2022202120222021
Opening Balance$25,012 $15,004 $15,016 $15,003 
Additions361 95 10,811 15,096 
Revenue Recognized(10,000)(7,500)(10,454)(22,500)
Closing Balance$15,373 $7,599 $15,373 $7,599