Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 20 — 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, the Chief Operating Officer and the President of South American Operations.

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. As of July 30, 2009, the Company completed the sale of its interest in the Broken Hill mine (See Note 6). As of August 9, 2010, the Company completed the sale of its Cerro Bayo mine (See Note 6). 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. The Martha mine sells precious metal concentrates, typically under long-term contracts, to smelters located in Mexico. 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 Standard Bank, Mitsubishi, Auramet and Mitsui. Concentrates produced at the Endeavor mine are sold to Nyrstar (formerly Zinifex), an Australia smelter. The Company’s exploration programs 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.

Revenues from silver sales were $662.6 million, $356.9 million and $238.4 million in 2011, 2010, and 2009, respectively. Revenues from gold sales were $358.6 million, $158.5 million and $61.9 million in 2011, 2010, and 2009, respectively.

Financial information relating to the Company’s segments is as follows:

	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other(3)			Total
Year Ended December 31, 2011
Sales of metals	$	513,097		$	267,502		$	151,186		$	57,331		$	13,347		$	18,737		$	—		$	1,021,200
Productions costs applicable to sales		(186,201	)		(79,679	)		(101,672	)		(28,257	)		(15,513	)		(8,634	)		—			(419,956	)
Depreciation and depletion		(159,264	)		(22,410	)		(35,839	)		(2,824	)		(556	)		(3,148	)		(459	)		(224,500	)
Gross profit (loss)		167,632			165,413			13,675			26,250			(2,722	)		6,955			(459	)		376,744
Exploration expense		6,863			248			1,102			1,989			6,367			—			2,559			19,128
Other operating expenses		949			342			317			19,931			156			(1	)		29,126			50,820
OPERATING INCOME (LOSS)		159,820			164,823			12,256			4,330			(9,245	)		6,956			(32,144	)		306,796
Interest and other income		(9,099	)		156			4			57			(544	)		—			2,815			(6,610	)
Interest expense		(23,453	)		(45	)		(4,889	)		(21	)		(458	)		—			(5,908	)		(34,774	)
Loss on debt extinguishment		—			—			—			—			—			—			(5,526	)		(5,526	)
Fair value adjustments, net		(40,046	)		—			(8,438	)		—			—			—			(3,566	)		(52,050	)
Income tax benefit (expense)		(28,023	)		(59,867	)		(31	)		—			(1,219	)		—			(25,197	)		(114,337	)
Income (loss) from continuing operations		59,199			105,067			(1,098	)		4,366			(11,466	)		6,956			(69,525	)		93,499
Loss from discontinued operations		—			—			—			—			—			—			—			—
Loss on sale of net assets of discontinued operations		—			—			—			—			—			—			—			—
Net income (loss)	$	59,199		$	105,067		$	(1,098	)	$	4,366		$	(11,466	)	$	6,956		$	(69,525	)	$	93,499
Segment assets(1)	$	2,029,769		$	276,423		$	507,891		$	76,852		$	19,717		$	35,686		$	16,792		$	2,963,130
Capital expenditures(2)	$	36,976		$	17,731		$	34,013		$	27,217		$	3,426		$	—		$	625		$	119,988

	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other(3)			Total
Year Ended December 31, 2010
Sales of metals	$	230,024		$	142,989		$	23,628		$	54,323		$	53,875		$	10,618		$	—		$	515,457
Productions costs applicable to sales		(127,658	)		(60,023	)		(14,043	)		(24,760	)		(27,040	)		(4,112	)		—			(257,636	)
Depreciation and depletion		(91,505	)		(19,650	)		(17,487	)		(1,890	)		(8,525	)		(1,989	)		(573	)		(141,619	)
Gross profit (loss)		10,861			63,316			(7,902	)		27,673			18,310			4,517			(573	)		116,202
Exploration expense		4,658			9			659			190			5,791			—			2,942			14,249
Other operating expenses		352			—			170			1,544			—			—			24,987			27,053
OPERATING INCOME (LOSS)		5,851			63,307			(8,731	)		25,939			12,519			4,517			(28,502	)		74,900
Interest and other income		914			(373	)		(26	)		681			(3,974	)		—			3,549			771
Interest expense		(21,567	)		(325	)		(1,591	)		—			(90	)		—			(7,369	)		(30,942	)
Loss on debt extinguishment		—			—			—			—			—			—			(20,300	)		(20,300	)
Fair value adjustments, net		(98,707	)		—			(13,783	)		—			—			—			(4,604	)		(117,094	)
Income tax benefit (expense)		16,901			(21,655	)		(8	)		—			(8,523	)		—			22,766			9,481
Income (loss) from continuing operations		(96,608	)		40,954			(24,139	)		26,620			(68	)		4,517			(34,460	)		(83,184	)
Loss from discontinued operations		—			—			—			—			—			—			(6,029	)		(6,029	)
Loss on sale of net assets of discontinued operations		—			—			—			—			—			—			(2,095	)		(2,095	)
Net income (loss)	$	(96,608	)	$	40,954		$	(24,139	)	$	26,620		$	(68	)	$	4,517		$	(42,584	)	$	(91,308	)
Segment assets(1)	$	2,119,367		$	260,653		$	512,401		$	29,734		$	21,290		$	39,530		$	17,414		$	3,000,389
Capital expenditures(2)	$	54,226		$	6,159		$	92,730		$	2,349		$	100		$	—		$	430		$	155,994

	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other(3)			Total
Year Ended December 31, 2009
Sales of metals	$	90,560		$	113,701		$	—		$	45,472		$	44,820		$	5,808		$	—		$	300,361
Productions costs applicable to sales		(66,262	)		(80,878	)		—			(24,206	)		(17,896	)		(2,069	)		—			(191,311	)
Depreciation and depletion		(52,043	)		(18,510	)		—			(1,852	)		(7,410	)		(1,269	)		(292	)		(81,376	)
Gross profit (loss)		(27,745	)		14,313			—			19,414			19,514			2,470			(292	)		27,674
Exploration expense		5,615			34			297			—			3,119			—			3,991			13,056
Other operating expenses		968			—			39			912			—			—			21,619			23,538
OPERATING INCOME (LOSS)		(34,328	)		14,279			(336	)		18,502			16,395			2,470			(25,902	)		(8,920	)
Interest and other income		1,075			1,075			3			(168	)		(1,953	)		—			1,616			1,648
Interest expense		(14,213	)		(125	)		(16	)		—			(401	)		—			(3,347	)		(18,102	)
Loss on debt extinguishment		—			—			—			—			—			—			31,528			31,528
Fair value adjustments, net		(78,148	)		—			(965	)		—			—			—			(3,114	)		(82,227	)
Income tax benefit (expense)		45,063			(8,894	)		5			—			(6,284	)		—			3,181			33,071
Income (loss) from continuing operations		(80,551	)		6,335			(1,309	)		18,334			7,757			2,470			3,962			(43,002	)
Loss from discontinued operations		—			—			—			—			—			—			(9,601	)		(9,601	)
Loss on sale of net assets of discontinued operations		—			—			—			—			—			—			25,537			25,537
Net income (loss)	$	(80,551	)	$	6,335		$	(1,309	)	$	18,334		$	7,757		$	2,470		$	19,898		$	(27,066	)
Segment assets(1)	$	2,129,024		$	276,926		$	397,457		$	31,232		$	33,024		$	39,852		$	46,948		$	2,954,463
Capital expenditures(2)	$	162,697		$	11,091		$	41,289		$	310		$	1,575		$	—		$	1,273		$	218,235

(1) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties

(2) Balances represent cash flow amounts

(3) Includes discontinued operations

	2011		2010		2009
Assets
Total assets for reportable segments	$	2,963,130	$	3,000,389	$	2,954,463
Cash and cash equivalents		175,012		66,118		22,782
Short-term investments		20,254		—		—
Other assets		106,045		91,020		76,790
Total consolidated assets	$	3,264,441	$	3,157,527	$	3,054,035

Geographic Information

	As of December 31,
	2011		2010		2009
Long Lived Assets:
United States and other	$	515,096	$	488,104	$	401,320
Australia		33,999		37,147		39,136
Chile		65		14		25,628
Argentina		5,213		1,882		12,392
Bolivia		230,956		234,306		248,667
Mexico		1,903,375		2,028,864		2,051,950
Total	$	2,688,704	$	2,790,317	$	2,779,093

	Twelve Months Ended December 31,
	2011		2010		2009
Revenues:
United States	$	208,517	$	77,951	$	45,473
Australia		18,737		10,618		5,807
Argentina		13,347		53,875		44,820
Bolivia		267,502		142,988		113,701
Mexico		513,097		230,025		90,560
Total	$	1,021,200	$	515,457	$	300,361