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Note 2 - Revision of Previously Issued Financial Statements
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
Note
2.
Revision of Previously Issued Financial Statements for Immaterial Misstatements
 
In the
third
quarter of
2018,
we determined accumulated DDA and DDA expense at Casa Berardi, a business unit within our Hecla Quebec Inc. subsidiary, were understated for the periods from
June 1, 2013
through
June 30, 2018
as a result of errors in calculation from the date of acquisition of Casa Berardi as noted below:
 
 
i.
understatement of DDA by approximately
$35.5
million in the aggregate over
5
1/2
years. The error in calculation resulted from the foreign exchange translation of accumulated DDA and DDA expense from Canadian dollars (“CAD”) to U.S. dollars (“USD”), which was incorrectly set up in the financial reporting system to use the average exchange rate for the respective reporting period, when the historical exchange rate should have been used. The CAD to USD exchange rate at
June 1, 2013
was
0.9646
and has subsequently weakened over the intervening periods, resulting in an understatement of accumulated DDA and DDA expense during the periods from
June 1, 2013
to
June 30, 2018.
The adjustments in the
third
quarter of
2018
to record the cumulative amounts related to this understatement for prior periods through 
June 30, 2018
were:
 
Condensed Consolidated Balance Sheet (Unaudited)
  
(in millions)
  
Credit - Accumulated DDA (recorded within properties, plants, equipment and mineral interests, net)
   $
(36.2
)
Debit - Inventories: concentrates, doré, and stockpiled ore
    
1.1
  
Debit - Accumulated deficit
    
30.3
  
         
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)
  
 
 
 
Debit - DDA expense
    
5.0
  
Credit - Net foreign exchange gain (loss)
    
(0.2
)
Net increase to net loss for the nine months ended September 30, 2018
    
(4.8
)
 
 
ii.
overstatement of DDA of approximately
$14.2
million in the aggregate over
5
1/2
years related to the accelerated conversion of costs from the mineral interest asset, which represents the value of the undeveloped mineral interest and is
not
depletable, to the mineral properties asset, which represents the value of proven and probable reserves and is depletable. The error in calculation arose from the incorrect use of fair value information available on the per ounce value at the date of acquisition and resulted in the overstatement of the proven and probable reserves asset, which is subject to depletion, and an understatement of the undeveloped mineral interest asset, both of which are categories reported within properties, plants, equipment and mineral interests, net on the balance sheet. The overstatement of the conversions to the proven and probable reserves asset during the periods from
January 1, 2014
through
June 30, 2018
resulted in overstatements of accumulated DDA and DDA expense in each of these periods. The adjustments in the
third
quarter of
2018
to record the cumulative amounts related to this overstatement for prior periods through 
June 30, 2018
were:
 
Condensed Consolidated Balance Sheet (Unaudited)
  
(in millions)
  
Debit - Accumulated DDA (recorded within properties, plants, equipment and mineral interests, net)
   $
14.2
  
Credit - Deferred tax liability
    
(3.8
)
Credit - Accumulated deficit
    
(7.7
)
         
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)
  
 
 
 
Credit - DDA expense
    
(3.7
)
Debit - Income tax provision (benefit)
    
1.0
  
Net decrease to net loss for the nine months ended September 30, 2018
    
2.7
  
 
 
We assessed the materiality of the effect of the errors on our prior quarterly and annual financial statements, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin ("SAB")
No.
99,
“Materiality,” and SAB
No.
108,
“Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded the errors were
not
material to any of our previously issued financial statements. Consequently, we will correct these errors prospectively and revise our financial statements when the consolidated balance sheets, statements of operations and comprehensive income and cash flows for such prior periods are included in future filings (the "Revisions"). The Revisions had
no
net impact on our sales or net cash provided by operating activities for any period presented.
 
The following tables present a summary of the impact, by financial statement line item, of the Revisions for the
three
months ended
March 31, 2017, 
June 30, 2017
and
September 30, 2017,
the
six
months ended
June 30, 2017,
the 
nine
months ended
September 30, 2017,
as of and for the year ended
December 31, 2017,
and for the year ended
December 31, 2016: 
 
   
Three Months Ended September 30, 2017
  
(in thousands, except per share amounts)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
28,844
     $
674
     $
29,518
  
Total cost of sales
    
97,202
      
674
      
97,876
  
Gross profit
    
43,637
      
(674
)
    
42,963
  
Income (loss) from operations
  
 
20,942
    
 
(674
)
  
 
20,268
  
Foreign exchange (loss) gain
    
(4,764
)
    
(153
)
    
(4,917
)
Total other (expense) income
    
(24,931
)
    
(153
)
    
(25,084
)
(Loss) income before income taxes
  
 
(3,989
)
  
 
(827
)
  
 
(4,816
)
Income tax benefit (provision)
    
5,401
      
(271
)
    
5,130
  
Net income
   $
1,412
     $
(1,098
)
   $
314
  
Income applicable to common shareholders
  
$
1,274
    
$
(1,098
)
  
$
176
  
Comprehensive income
    
9,048
      
(1,098
)
    
7,950
  
Basic income per common share after preferred dividends
  
$
—
    
$
—
    
$
—
  
Diluted income per common share after preferred dividends
  
$
—
    
$
—
    
$
—
  
 
 
   
Nine Months Ended September 30, 2017
  
(in thousands, except per share amounts)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
83,365
     $
3,621
     $
86,986
  
Total cost of sales
    
307,902
      
3,621
      
311,523
  
Gross profit
    
109,760
      
(3,621
)
    
106,139
  
Income (loss) from operations
  
 
40,788
    
 
(3,621
)
  
 
37,167
  
Foreign exchange (loss) gain
    
(10,909
)
    
651
      
(10,258
)
Total other (expense) income
    
(54,935
)
    
651
      
(54,284
)
(Loss) income before income taxes
  
 
(14,147
)
  
 
(2,970
)
  
 
(17,117
)
Income tax benefit (provision)
    
18,377
      
(813
)
    
17,564
  
Net income
   $
4,230
     $
(3,783
)
   $
447
  
Income applicable to common shareholders
  
$
3,816
    
$
(3,783
)
  
$
33
  
Comprehensive income
    
17,948
      
(3,783
)
    
14,165
  
Basic income per common share after preferred dividends
  
$
0.01
    
$
(0.01
)
  
$
—
  
Diluted income per common share after preferred dividends
  
$
0.01
    
$
(0.01
)
  
$
—
  
                         
Condensed Consolidated Statements of Cash Flows (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
4,230
     $
(3,783
)
   $
447
  
Depreciation, depletion and amortization
    
87,634
      
3,621
      
91,255
  
Foreign exchange loss (gain)
    
11,171
      
(651
)
    
10,520
  
Deferred income taxes
    
(24,280
)
    
813
      
(23,467
)
Cash provided by operating activities
  
$
74,115
    
$
—
    
$
74,115
  
 
 
   
As of and for the Year Ended December 31, 2017
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Balance Sheet
  
 
 
 
  
 
 
 
  
 
 
 
Inventories: Concentrate, doré, and stockpiled ore
   $
28,455
     $
911
     $
29,366
  
Total current assets
    
320,325
      
911
      
321,236
  
Properties, plants, equipment and mineral interests, net
    
2,020,021
      
(20,710
)
    
1,999,311
  
Total assets
  
 
2,364,957
    
 
(19,799
)
  
 
2,345,158
  
Deferred tax liability
    
121,546
      
2,806
      
124,352
  
Total liabilities
    
881,075
      
2,806
      
883,881
  
Accumulated deficit
    
(195,484
)
    
(22,605
)
    
(218,089
)
Total shareholders' equity
    
1,483,882
      
(22,605
)
    
1,461,277
  
Total liabilities and shareholders' equity
  
 
2,364,957
    
 
(19,799
)
  
 
2,345,158
  
                         
Consolidated Statements of Operation and Comprehensive (Loss) Income
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
116,062
     $
4,537
     $
120,599
  
Total cost of sales
    
420,789
      
4,537
      
425,326
  
Gross profit
    
156,986
      
(4,537
)
    
152,449
  
Income (loss) from operations
  
 
64,643
    
 
(4,537
)
  
 
60,106
  
Foreign exchange (loss) gain
    
(10,300
)
    
620
      
(9,680
)
Total other (expense) income
    
(68,283
)
    
620
      
(67,663
)
(Loss) income before income taxes
  
 
(3,640
)
  
 
(3,917
)
  
 
(7,557
)
Income tax (provision) benefit
    
(19,879
)
    
(1,084
)
    
(20,963
)
Net (loss) income
   $
(23,519
)
   $
(5,001
)
   $
(28,520
)
(Loss) income applicable to common shareholders
  
$
(24,071
)
  
$
(5,001
)
  
$
(29,072
)
Comprehensive income (loss)
    
(12,290
)
    
(5,001
)
    
(17,291
)
Basic (loss) income per common share after preferred dividends
  
$
(0.06
)
  
$
(0.01
)
  
$
(0.07
)
Diluted (loss) income per common share after preferred dividends
  
$
(0.06
)
  
$
(0.01
)
  
$
(0.07
)
                         
Condensed Consolidated Statements of Cash Flows
  
 
 
 
  
 
 
 
  
 
 
 
Net (loss) income
   $
(23,519
)
   $
(5,001
)
   $
(28,520
)
Depreciation, depletion and amortization
    
121,930
      
4,537
      
126,467
  
Foreign exchange loss (gain)
    
10,828
      
(620
)
    
10,208
  
Deferred income taxes
    
18,308
      
1,084
      
19,392
  
Cash provided by operating activities
  
$
115,878
    
$
—
    
$
115,878
  
 
 
 
   
Three Months Ended March 31, 2017
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
28,952
     $
1,483
     $
30,435
  
Total cost of sales
    
107,628
      
1,483
      
109,111
  
Gross profit
    
34,916
      
(1,483
)
    
33,433
  
Income from operations
  
 
15,871
    
 
(1,483
)
  
 
14,388
  
Foreign exchange gain (loss)
    
(2,262
)
    
2
      
(2,260
)
Total other expense
    
(18,108
)
    
2
      
(18,106
)
Income (loss) before income taxes
  
 
(2,237
)
  
 
(1,481
)
  
 
(3,718
)
Income tax (provision) benefit
    
29,071
      
(271
)
    
28,800
  
Net income
   $
26,834
     $
(1,752
)
   $
25,082
  
Income applicable to common shareholders
  
$
26,696
    
$
(1,752
)
  
$
24,944
  
Comprehensive income
    
30,038
      
(1,752
)
    
28,286
  
Basic income per common share after preferred dividends
  
$
0.07
    
$
—
    
$
0.07
  
Diluted income per common share after preferred dividends
  
$
0.07
    
$
—
    
$
0.07
  
                         
Condensed Consolidated Statements of Cash Flows (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
26,834
     $
(1,752
)
   $
25,082
  
Depreciation, depletion and amortization
    
29,590
      
1,483
      
31,073
  
Foreign exchange (gain) loss
    
506
      
(2
)
    
504
  
Deferred income taxes
    
(21,234
)
    
271
      
(20,963
)
Cash provided by operating activities
  
$
38,285
    
$
—
    
$
38,285
  
 
 
   
Three Months Ended June 30, 2017
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
25,569
     $
1,464
     $
27,033
  
Total cost of sales
    
103,072
      
1,464
      
104,536
  
Gross profit
    
31,207
      
(1,464
)
    
29,743
  
Income from operations
  
 
3,975
    
 
(1,464
)
  
 
2,511
  
Foreign exchange gain (loss)
    
(3,883
)
    
803
      
(3,080
)
Total other income (expense)
    
(11,896
)
    
803
      
(11,093
)
Income (loss) before income taxes
  
 
(7,921
)
  
 
(661
)
  
 
(8,582
)
Income tax (provision) benefit
    
(16,095
)
    
(271
)
    
(16,366
)
Net income (loss)
   $
(24,016
)
   $
(932
)
   $
(24,948
)
Income (loss) applicable to common shareholders
  
$
(24,154
)
  
$
(932
)
  
$
(25,086
)
Comprehensive income (loss)
    
(21,138
)
    
(932
)
    
(22,070
)
Basic income (loss) per common share after preferred dividends
  
$
(0.06
)
  
$
—
    
$
(0.06
)
Diluted income (loss) per common share after preferred dividends
  
$
(0.06
)
  
$
—
    
$
(0.06
)
 
 
   
Six Months Ended June 30, 2017
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Condensed Consolidated Statements of Operation and Comprehensive Income (Loss) (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
54,521
     $
2,947
     $
57,468
  
Total cost of sales
    
210,700
      
2,947
      
213,647
  
Gross profit
    
66,123
      
(2,947
)
    
63,176
  
Income from operations
  
 
19,846
    
 
(2,947
)
  
 
16,899
  
Foreign exchange gain (loss)
    
(6,145
)
    
805
      
(5,340
)
Total other income (expense)
    
(30,004
)
    
805
      
(29,199
)
Income (loss) before income taxes
  
 
(10,158
)
  
 
(2,142
)
  
 
(12,300
)
Income tax (provision) benefit
    
12,976
      
(542
)
    
12,434
  
Net income (loss)
   $
2,818
     $
(2,684
)
   $
134
  
Income (loss) applicable to common shareholders
  
$
2,542
    
$
(2,684
)
  
$
(142
)
Comprehensive income (loss)
    
8,900
      
(2,684
)
    
6,216
  
Basic income (loss) per common share after preferred dividends
  
$
0.01
    
$
(0.01
)
  
$
—
  
Diluted income (loss) per common share after preferred dividends
  
$
0.01
    
$
(0.01
)
  
$
—
  
                         
Condensed Consolidated Statements of Cash Flows (Unaudited)
  
 
 
 
  
 
 
 
  
 
 
 
Net income
   $
2,818
     $
(2,684
)
   $
134
  
Depreciation, depletion and amortization
    
56,908
      
2,947
      
59,855
  
Foreign exchange (gain) loss
    
5,201
      
(805
)
    
4,396
  
Deferred income taxes
    
(22,113
)
    
542
      
(21,571
)
Cash provided by operating activities
  
$
45,821
    
$
—
    
$
45,821
  
 
 
   
For the Year Ended December 31, 2016
  
(in thousands)
  
As Previously
Reported
    
Adjustment
    
As Revised
  
Consolidated Statements of Operation and Comprehensive (Loss) Income
  
 
 
 
  
 
 
 
  
 
 
 
Depreciation, depletion and amortization
   $
116,126
     $
7,505
     $
123,631
  
Total cost of sales
    
454,451
      
7,505
      
461,956
  
Gross profit
    
191,506
      
(7,505
)
    
184,001
  
Income (loss) from operations
  
 
116,944
    
 
(7,505
)
  
 
109,439
  
Foreign exchange (loss) gain
    
(2,926
)
    
189
      
(2,737
)
Total other (expense) income
    
(19,969
)
    
189
      
(19,780
)
(Loss) income before income taxes
  
 
96,975
    
 
(7,316
)
  
 
89,659
  
Income tax (provision) benefit
    
(27,428
)
    
(662
)
    
(28,090
)
Net (loss) income
   $
69,547
     $
(7,978
)
   $
61,569
  
(Loss) income applicable to common shareholders
  
$
68,995
    
$
(7,978
)
  
$
61,017
  
Comprehensive income (loss)
    
67,576
      
(7,978
)
    
59,598
  
Basic (loss) income per common share after preferred dividends
  
$
0.18
    
$
(0.02
)
  
$
0.16
  
Diluted (loss) income per common share after preferred dividends
  
$
0.18
    
$
(0.02
)
  
$
0.16
  
                         
Condensed Consolidated Statements of Cash Flows
  
 
 
 
  
 
 
 
  
 
 
 
Net (loss) income
   $
69,547
     $
(7,978
)
   $
61,569
  
Depreciation, depletion and amortization
    
117,413
      
7,505
      
124,918
  
Foreign exchange loss (gain)
    
4,649
      
(189
)
    
4,460
  
Deferred income taxes
    
2,112
      
662
      
2,774
  
Cash provided by operating activities
  
$
225,328
    
$
—
    
$
225,328