Guarantor Subsidiaries [Text Block] | Note 14. Guarantor Subsidiaries Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries (the "Guarantors") of the Notes (see Note 9 The unaudited interim condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited interim consolidated financial statements set forth elsewhere in this Form 10-Q. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and Non-Guarantors are reflected in the intercompany eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla's subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties. Examples of such eliminations include the following: • Investments in subsidiaries • Capital contributions • Debt. • Dividends. • Deferred taxes Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture. Unaudited Interim Condensed Consolidating Balance Sheets As of June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 127,412 $ 55,906 $ 8,256 $ — $ 191,574 Other current assets 4,098 47,343 37,628 18,441 107,510 Properties, plants, and equipment - net 1,686 1,115,038 746,716 — 1,863,440 Intercompany receivable (payable) 460,184 (130,949 ) (378,844 ) 49,609 — Investments in subsidiaries 1,367,122 — — (1,367,122 ) — Other non-current assets 2,975 198,256 2,913 (74,400 ) 129,744 Total assets $ 1,963,477 $ 1,285,594 $ 416,669 $ (1,373,472 ) $ 2,292,268 Liabilities and Stockholders' Equity Current liabilities $ 12,179 $ 76,371 $ 20,696 $ (53 ) $ 109,193 Long-term debt 499,104 11,190 1,269 — 511,563 Non-current portion of accrued reclamation — 42,326 28,392 — 70,718 Non-current deferred tax liability — 6,296 137,717 (6,297 ) 137,716 Other non-current liabilities 40,620 10,847 37 — 51,504 Stockholders' equity 1,411,574 1,138,564 228,558 (1,367,122 ) 1,411,574 Total liabilities and stockholders' equity $ 1,963,477 $ 1,285,594 $ 416,669 $ (1,373,472 ) $ 2,292,268 As of December 31, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 146,885 $ 33,824 $ 28,956 $ — $ 209,665 Other current assets 7,115 48,981 23,165 27,433 106,694 Properties, plants, and equipment - net 1,572 1,079,658 750,334 — 1,831,564 Intercompany receivable (payable) 470,306 (123,671 ) (392,880 ) 46,245 — Investments in subsidiaries 1,317,969 — — (1,317,969 ) — Other non-current assets 8,644 189,014 4,620 (88,137 ) 114,141 Total assets $ 1,952,491 $ 1,227,806 $ 414,195 $ (1,332,428 ) $ 2,262,064 Liabilities and Stockholders' Equity Current liabilities $ 14,143 $ 54,918 $ 21,996 $ (72 ) $ 90,985 Long-term debt 498,479 10,597 3,053 — 512,129 Non-current portion of accrued reclamation — 43,314 12,305 — 55,619 Non-current deferred tax liability — 14,387 153,300 (14,387 ) 153,300 Other non-current liabilities 42,895 11,126 (964 ) — 53,057 Stockholders' equity 1,396,974 1,093,464 224,505 (1,317,969 ) 1,396,974 Total liabilities and stockholders' equity $ 1,952,491 $ 1,227,806 $ 414,195 $ (1,332,428 ) $ 2,262,064 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,081 $ 67,531 $ 35,585 $ — $ 104,197 Cost of sales — (41,512 ) (26,055 ) — (67,567 ) Depreciation, depletion, amortization — (16,452 ) (10,714 ) — (27,166 ) General and administrative (4,373 ) (3,392 ) (531 ) — (8,296 ) Exploration and pre-development (122 ) (1,445 ) (4,643 ) — (6,210 ) Loss on derivative contracts (887 ) — — — (887 ) Acquisition costs (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries (738 ) — — 738 — Other (expense) income (19,573 ) 3,499 (22,544 ) 19,895 (18,723 ) Income (loss) before income taxes (26,667 ) 8,137 (28,902 ) 20,633 (26,799 ) (Provision) benefit from income taxes — (1,956 ) 21,983 (19,895 ) 132 Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (26,805 ) 6,181 (6,919 ) 738 (26,805 ) Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Changes in comprehensive income (loss) (1,156 ) 183 (1,264 ) 1,081 (1,156 ) Comprehensive income (loss) $ (27,823 ) $ 6,364 $ (8,183 ) $ 1,819 $ (27,823 ) Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,393 $ 154,465 $ 67,431 $ — $ 223,289 Cost of sales — (92,949 ) (48,583 ) — (141,532 ) Depreciation, depletion, amortization — (33,063 ) (19,357 ) — (52,420 ) General and administrative (8,815 ) (7,285 ) (916 ) — (17,016 ) Exploration and pre-development (339 ) (2,579 ) (8,428 ) — (11,346 ) Loss on derivative contracts 4,905 — — — 4,905 Acquisition costs (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries 39,304 — — (39,304 ) — Other (expense) income (48,508 ) 7,066 8,462 16,439 (16,541 ) Income (loss) before income taxes (14,115 ) 25,563 (1,391 ) (22,865 ) (12,808 ) (Provision) benefit from income taxes — (6,902 ) 22,034 (16,439 ) (1,307 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (14,391 ) 18,661 20,643 (39,304 ) (14,391 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Changes in comprehensive income (loss) 780 (11 ) 787 (776 ) 780 Comprehensive income (loss) $ (13,335 ) $ 18,650 $ 21,430 $ (40,080 ) $ (13,335 ) Three Months Ended June 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (3,454 ) $ 82,665 $ 38,291 $ — $ 117,502 Cost of sales — (43,217 ) (27,822 ) — (71,039 ) Depreciation, depletion, amortization — (19,280 ) (8,455 ) — (27,735 ) General and administrative (4,529 ) (3,221 ) (409 ) — (8,159 ) Exploration and pre-development (8 ) (1,784 ) (1,785 ) — (3,577 ) Gain on derivative contracts (11,601 ) — — — (11,601 ) Equity in earnings of subsidiaries (81,189 ) — — 81,189 — Other (expense) income 86,382 870 (25,955 ) (76,112 ) (14,815 ) Income (loss) before income taxes (14,399 ) 16,033 (26,135 ) 5,077 (19,424 ) (Provision) benefit from income taxes — (4,722 ) (66,365 ) 76,112 5,025 Net income (loss) (14,399 ) 11,311 (92,500 ) 81,189 (14,399 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (14,537 ) 11,311 (92,500 ) 81,189 (14,537 ) Net income (loss) (14,399 ) 11,311 (92,500 ) 81,189 (14,399 ) Changes in comprehensive income (loss) (2,188 ) 168 (1,096 ) 928 (2,188 ) Comprehensive income (loss) $ (16,587 ) $ 11,479 $ (93,596 ) $ 82,117 $ (16,587 ) Six Months Ended June 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (3,473 ) $ 166,375 $ 80,387 $ — $ 243,289 Cost of sales — (93,150 ) (55,630 ) — (148,780 ) Depreciation, depletion, amortization — (36,501 ) (17,037 ) — (53,538 ) General and administrative (9,159 ) (6,229 ) (712 ) — (16,100 ) Exploration and pre-development (52 ) (2,742 ) (5,352 ) — (8,146 ) Gain on derivative contracts (2,149 ) — — — (2,149 ) Equity in earnings of subsidiaries (63,486 ) — — 63,486 — Other (expense) income 75,561 1,278 (16,000 ) (79,415 ) (18,576 ) Income (loss) before income taxes (2,758 ) 29,031 (14,344 ) (15,929 ) (4,000 ) (Provision) benefit from income taxes — (7,608 ) (70,565 ) 79,415 1,242 Net income (loss) (2,758 ) 21,423 (84,909 ) 63,486 (2,758 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (3,034 ) 21,423 (84,909 ) 63,486 (3,034 ) Net income (loss) (2,758 ) 21,423 (84,909 ) 63,486 (2,758 ) Changes in comprehensive income (loss) (838 ) 225 220 (445 ) (838 ) Comprehensive income (loss) $ (3,596 ) $ 21,648 $ (84,689 ) $ 63,041 $ (3,596 ) Unaudited Interim Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 31,482 $ 49,275 $ 7,355 $ (35,939 ) $ 52,173 Cash flows from investing activities: — Additions to properties, plants, and equipment (436 ) (40,963 ) (16,873 ) (58,272 ) Acquisition of Revett, net of cash acquired (809 ) — — — (809 ) Other investing activities, net 61 267 (1,122 ) — (794 ) Cash flows from financing activities: Dividends paid to stockholders (2,126 ) — — — (2,126 ) Payments on debt — (4,349 ) (591 ) — (4,940 ) Other financing activity (47,645 ) 17,852 (7,210 ) 35,939 (1,064 ) Effect of exchange rate changes on cash — — (2,259 ) — (2,259 ) Changes in cash and cash equivalents (19,473 ) 22,082 (20,700 ) — (18,091 ) Beginning cash and cash equivalents 146,885 33,824 28,956 209,665 Ending cash and cash equivalents $ 127,412 $ 55,906 $ 8,256 $ — $ 191,574 Six Months Ended June 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 14,846 $ 46,829 $ (6,220 ) $ 1,574 $ 57,029 Cash flows from investing activities: — Additions to properties, plants, and equipment (736 ) (32,891 ) (23,834 ) — (57,461 ) Other investing activities, net — 238 4,334 — 4,572 Cash flows from financing activities: Dividends paid to stockholders (1,991 ) — — — (1,991 ) Payments on debt — (4,525 ) — — (4,525 ) Other financing activity 21,984 (11,021 ) 2,645 (1,574 ) 12,034 Effect of exchange rate changes on cash — — 250 — 250 Changes in cash and cash equivalents 34,103 (1,370 ) (22,825 ) — 9,908 Beginning cash and cash equivalents 126,271 40,009 45,895 — 212,175 Ending cash and cash equivalents $ 160,374 $ 38,639 $ 23,070 $ — $ 222,083 |