SEGMENT REPORTING

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 19 – SEGMENT REPORTING

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 La Preciosa 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, Japan, 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 La Preciosa 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 June 30, 2013	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			La Preciosa			Other			Total
Sales of metals	$	86,217		$	49,236		$	30,851		$	34,903		$	(161	)	$	3,479		$	—		$	—		$	204,525
Productions costs applicable to sales		(55,218	)		(32,815	)		(30,154	)		(23,054	)		—			(1,683	)		—			—			(142,924	)
Depreciation and depletion		(35,557	)		(4,941	)		(13,261	)		(2,324	)		(113	)		(1,220	)		(2	)		(235	)		(57,653	)
Gross profit		(4,558	)		11,480			(12,564	)		9,525			(274	)		576			(2	)		(235	)		3,948
Exploration expense		3,189			27			563			512			603			—			690			1,190			6,774
Loss on impairment		—			—			—			—			86			—			—			—			86
Other operating expenses		—			—			134			34,177			861			—			—			12,873			48,045
OPERATING INCOME		(7,747	)		11,453			(13,261	)		(25,164	)		(1,824	)		576			(692	)		(14,298	)		(50,957	)
Interest and other income, net		(428	)		683			150			—			(177	)		—			(11	)		(16,990	)		(16,773	)
Interest expense, net		(4,190	)		(14	)		(95	)		(5	)		(1	)		—			—			(6,625	)		(10,930	)
Fair value adjustments, net		61,066			—			6,350			—			—			—			—			(662	)		66,754
Income tax expense		(17,282	)		(4,506	)		—			—			(117	)		85			—			(1,314	)		(23,134	)
Net income	$	31,419		$	7,616		$	(6,856	)	$	(25,169	)	$	(2,119	)	$	661		$	(703	)	$	(39,889	)	$	(35,040	)
Segment assets (A)	$	1,860,240		$	286,325		$	485,215		$	122,917		$	6,757		$	30,226		$	409,458		$	103,464		$	3,304,602
Capital expenditures (B)	$	9,166		$	3,159		$	7,406		$	6,596		$	10		$	—		$	735		$	129		$	27,201

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

B. Balance represents cash flow amounts

Three months ended June 30, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
Sales of metals	$	136,365		$	53,383		$	21,124		$	34,153		$	4,149		$	5,232		$	—		$	254,406
Productions costs applicable to sales		(62,538	)		(22,773	)		(16,106	)		(20,751	)		(7,102	)		(2,553	)		—			(131,823	)
Depreciation and depletion		(42,748	)		(4,070	)		(9,719	)		(2,060	)		(704	)		(1,592	)		(131	)		(61,024	)
Gross profit		31,079			26,540			(4,701	)		11,342			(3,657	)		1,087			(131	)		61,559
Exploration expense		1,624			(70	)		274			1,135			2,763			—			579			6,305
Loss on impairment		—			—			—			—			4,813			—			—
Other operating expenses		—			25			16			692			81			—			8,053			8,867
OPERATING INCOME		29,455			26,585			(4,991	)		9,515			(11,314	)		1,087			(8,763	)		41,574
Interest and other income, net		(4,720	)		631			—			239			(494	)		—			1,123			(3,221	)
Interest expense		(5,672	)		(36	)		(901	)		(7	)		(1	)		—			(940	)		(7,557	)
Fair value adjustments, net		14,105			—			2,187			—			—			—			(253	)		16,039
Income tax benefit (expense)		(11,967	)		(10,889	)		—			—			(28	)		—			(978	)		(23,862	)
Net income	$	21,201		$	16,291		$	(3,705	)	$	9,747		$	(11,837	)	$	1,087		$	(9,811	)	$	22,973
Segment assets (A)	$	1,954,084		$	289,428		$	518,611		$	94,677		$	13,070		$	33,228		$	16,654		$	2,919,752
Capital expenditures (B)	$	11,174		$	7,800		$	9,324		$	2,946		$	529		$	—		$	465		$	32,238

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

B. Balance represents cash flow amounts

Six months ended June 30, 2013	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			La Preciosa			Other			Total
Sales of metals	$	143,643		$	82,377		$	70,126		$	74,377		$	(662	)	$	6,461					$	—		$	376,322
Productions costs applicable to sales		(81,937	)		(48,494	)		(53,718	)		(44,557	)		—			(3,003	)		—			1			(231,708	)
Depreciation and depletion		(64,507	)		(9,696	)		(26,647	)		(4,505	)		(229	)		(2,044	)		(2	)		(459	)		(108,089	)
Gross profit		(2,801	)		24,187			(10,239	)		25,315			(891	)		1,414			(2	)		(458	)		36,525
Exploration expense		5,170			79			1,235			996			1,587			—			690			3,858			13,615
Loss on impairment		—			—			—			—			205			—			—			—			205
Other operating expenses		—			3,722			210			34,321			1,906			—			—			22,598			62,757
OPERATING INCOME		(7,971	)		20,386			(11,684	)		(10,002	)		(4,589	)		1,414			(692	)		(26,914	)		(40,052	)
Interest and other income, net		1,514			1,288			281			57			746			—			(11	)		(16,827	)		(12,952	)
Interest expense, net		(7,928	)		(46	)		(354	)		(11	)		—			—			—			(12,323	)		(20,662	)
Fair value adjustments, net		75,494			—			10,577			—			—			—			—			(1,521	)		84,550
Income tax expense		(20,816	)		(8,834	)		(1	)		—			(44	)		84			—			(4,043	)		(33,654	)
Net income	$	40,293		$	12,794		$	(1,181	)	$	(9,956	)	$	(3,887	)	$	1,498		$	(703	)	$	(61,628	)	$	(22,770	)
Segment assets (A)	$	1,860,240		$	286,325		$	485,215		$	122,917		$	6,757		$	30,226		$	409,458		$	103,464		$	3,304,602
Capital expenditures (B)	$	14,480		$	3,616		$	10,736		$	9,894		$	10		$	—		$	735		$	557		$	40,028

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

B. Balance represents cash flow amounts

Six months ended June 30, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
Sales of metals	$	260,087		$	94,759		$	31,500		$	52,911		$	7,767		$	11,946		$	—		$	458,970
Productions costs applicable to sales		(108,397	)		(36,381	)		(33,197	)		(30,317	)		(10,795	)		(5,290	)		—			(224,377	)
Depreciation and depletion		(80,517	)		(8,289	)		(16,324	)		(3,702	)		(1,300	)		(3,236	)		(248	)		(113,616	)
Gross profit		71,173			50,089			(18,021	)		18,892			(4,328	)		3,420			(248	)		120,977
Exploration expense		2,945			—			496			1,844			6,174			—			1,413			12,872
Loss on impairment		—			—			—			—			4,813			—			—			4,813
Other operating expenses		—			30			35			2,033			279			—			15,154			17,531
OPERATING INCOME		68,228			50,059			(18,552	)		15,015			(15,594	)		3,420			(16,815	)		85,761
Interest and other income, net		(139	)		726			—			288			(570	)		—			1,481			1,786
Interest expense, net		(10,481	)		(36	)		(1,793	)		(15	)		(1	)		—			(1,901	)		(14,227	)
Fair value adjustments, net		(11,505	)		—			1,636			—			—			—			2,795			(7,074	)
Income tax expense		(15,511	)		(18,578	)		—			—			(239	)		—			(4,970	)		(39,298	)
Net income	$	30,592		$	32,171		$	(18,709	)	$	15,288		$	(16,404	)	$	3,420		$	(19,410	)	$	26,948
Segment assets (A)	$	1,954,084		$	289,428		$	518,611		$	94,677		$	13,070		$	33,228		$	16,654		$	2,919,752
Capital expenditures (B)	$	18,344		$	18,007		$	20,202		$	5,585		$	1,188		$	—		$	559		$	63,885

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

B. Balance represents cash flow amounts

	June 30, 2013		December 31, 2012
Assets
Total assets for reportable segments	$	3,304,602	$	2,974,056
Cash and cash equivalents		249,531		125,440
Short term investments		—		999
Other assets		112,583		120,906
Total consolidated assets	$	3,666,716	$	3,221,401

Geographic Information

	June 30, 2013		December 31, 2012
Long Lived Assets:
United States	$	503,105	$	514,687
Australia		27,364		29,408
Argentina		94,964		95,134
Bolivia		235,781		240,905
Mexico		2,156,808		1,795,677
Total	$	3,018,022	$	2,675,811

	Three months ended June 30,					Six months ended June 30,
	2013			2012		2013			2012
Revenues:
United States	$	65,754		$	55,277	$	144,502		$	84,411
Mexico		86,217			136,365		143,643			260,087
Bolivia		49,236			53,383		82,377			94,759
Australia		3,479			5,232		6,462			11,946
Argentina		(161	)		4,149		(662	)		7,767
Total	$	204,525		$	254,406	$	376,322		$	458,970

NOTE 22 – 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. 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 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 Other segment includes the Joaquin project, 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 $549.7 million, $662.6 million and $356.9 million in 2012, 2011, and 2010, respectively. Revenues from gold sales were $345.8 million, $358.6 million and $158.5 million in 2012, 2011, and 2010, respectively.

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

Year ended December 31, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
Sales of metals	$	442,098		$	178,005		$	110,987		$	132,392		$	13,162		$	18,848		$	—		$	895,492
Productions costs applicable to sales		(197,478	)		(71,428	)		(87,089	)		(74,256	)		(17,682	)		(8,824	)		—			(456,757	)
Depreciation and depletion		(146,595	)		(16,709	)		(41,645	)		(8,065	)		(692	)		(4,591	)		(560	)		(218,857	)
Gross profit (loss)		98,025			89,868			(17,747	)		50,071			(5,212	)		5,433			(560	)		219,878
Exploration expense		7,575			159			3,283			3,591			8,648			—			3,014			26,270
Loss on impairment		—			—			—			—			5,825			—			—			5,825
Other operating expenses		11			80			74			1,401			2,108			—			30,564			34,238
OPERATING INCOME (LOSS)		90,439			89,629			(21,104	)		45,079			(21,793	)		5,433			(34,138	)		153,545
Interest and other income, net		4,017			9,719			(77	)		358			(1,153	)		—			1,572			14,436
Interest expense, net		(18,938	)		(72	)		(2,972	)		(26	)		(3	)		—			(4,158	)		(26,169	)
Loss on debt extinguishment		—			—			(1,036	)		—			—			—			—			(1,036	)
Fair value adjustments, net		(31,054	)		—			4,089			—			—			—			3,478			(23,487	)
Income tax expense		(18,066	)		(44,632	)		—			—			976			409			(7,299	)		(68,612	)
Net income (loss)	$	26,398		$	54,644		$	(21,100	)	$	45,411		$	(21,973	)	$	5,842		$	(40,545	)	$	48,677
Segment assets (A)	$	1,905,269		$	302,922		$	508,658		$	104,373		$	9,813		$	31,479		$	111,542		$	2,974,056
Capital expenditures (B)	$	38,456		$	25,672		$	36,994		$	11,794		$	1,193		$	—		$	1,532		$	115,641

Year ended December 31, 2011	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
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, net		(9,099	)		156			4			57			(544	)		—			2,816			(6,610	)
Interest expense, net		(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 expense		(28,023	)		(59,867	)		(31	)		—			(1,219	)		—			(25,197	)		(114,337	)
Net income (loss)	$	59,199		$	105,067		$	(1,098	)	$	4,366		$	(11,466	)	$	6,956		$	(69,525	)	$	93,499
Segment assets (A)	$	2,029,769		$	276,423		$	507,891		$	76,852		$	19,717		$	35,686		$	16,792		$	2,963,130
Capital expenditures (B)	$	36,976		$	17,731		$	34,013		$	27,217		$	3,426		$	—		$	625		$	119,988

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

(B) Balance represents cash flow amounts

Year ended December 31, 2010	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
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, net		914			(373	)		(26	)		681			(3,974	)		—			3,549			771
Interest expense, net		(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 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 (A)	$	2,119,367		$	260,653		$	512,401		$	29,734		$	21,290		$	39,530		$	17,414		$	3,000,389
Capital expenditures (B)	$	54,226		$	6,159		$	92,730		$	2,349		$	100		$	—		$	430		$	155,994

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

(B) Balance represents cash flow amounts

	2012		2011		2010
Assets
Total assets for reportable segments	$	2,974,056	$	2,963,130	$	3,000,389
Cash and cash equivalents		125,440		175,012		66,118
Short term investments		999		20,254		—
Other assets		120,906		106,045		91,020
Total consolidated assets	$	3,221,401	$	3,264,441	$	3,157,527

Geographic Information

	As of December 31,
	2012		2011		2010
Long Lived Assets:
United States	$	608,051	$	515,096	$	488,104
Australia		29,408		33,999		37,147
Chile		65		65		14
Argentina		1,705		5,213		1,882
Bolivia		240,905		230,956		234,306
Mexico		1,795,677		1,903,374		2,028,864
Total	$	2,675,811	$	2,688,703	$	2,790,317

	Twelve months ended December 31,
	2012		2011		2010
Revenues:
United States	$	243,379	$	208,517	$	77,951
Mexico		442,098		513,097		230,025
Bolivia		178,005		267,502		142,988
Australia		18,848		18,737		10,618
Argentina		13,162		13,347		53,875
Total	$	895,492	$	1,021,200	$	515,457