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. Condensed Consolidating Balance Sheets As of September 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 123,585 $ 45,082 $ 5,787 $ — $ 174,454 Other current assets 5,486 56,780 34,870 19,573 116,709 Properties, plants, and equipment - net 1,522 1,131,491 745,164 — 1,878,177 Intercompany receivable (payable) 459,203 (141,131 ) (364,154 ) 46,082 — Investments in subsidiaries 1,373,915 — — (1,373,915 ) — Other non-current assets 2,339 183,590 2,272 (72,328 ) 115,873 Total assets $ 1,966,050 $ 1,275,812 $ 423,939 $ (1,380,588 ) $ 2,285,213 Liabilities and Shareholders' Equity Current liabilities $ 21,123 $ 84,121 $ 22,112 $ (1,740 ) $ 125,616 Long-term debt 499,417 10,343 1,006 — 510,766 Non-current portion of accrued reclamation — 42,708 28,114 — 70,822 Non-current deferred tax liability — 5,211 125,475 (4,933 ) 125,753 Other non-current liabilities 43,739 6,765 (19 ) — 50,485 Shareholders' equity 1,401,771 1,126,664 247,251 (1,373,915 ) 1,401,771 Total liabilities and shareholders' equity $ 1,966,050 $ 1,275,812 $ 423,939 $ (1,380,588 ) $ 2,285,213 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 Condensed Consolidating Statements of Operations Three Months Ended September 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 4,663 $ 63,604 $ 36,674 $ — $ 104,941 Cost of sales — (53,375 ) (25,898 ) — (79,273 ) Depreciation, depletion, amortization — (16,669 ) (11,560 ) — (28,229 ) General and administrative (4,965 ) (4,131 ) (365 ) — (9,461 ) Exploration and pre-development (210 ) (2,800 ) (4,226 ) — (7,236 ) Gain/(loss) on derivative contracts 3,347 — — — 3,347 Acquisition costs 1,538 (1,553 ) — — (15 ) Equity in loss of subsidiaries (11,300 ) — — 11,300 — Other (expense) income (2,963 ) 3,289 21,549 (21,339 ) 536 Income (loss) before income taxes (9,890 ) (11,635 ) 16,174 (10,039 ) (15,390 ) (Provision) benefit from income taxes — 1,606 (17,444 ) 21,338 5,500 Net income (loss) (9,890 ) (10,029 ) (1,270 ) 11,299 (9,890 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common shareholders (10,028 ) (10,029 ) (1,270 ) 11,299 (10,028 ) Net income (loss) (9,890 ) (10,029 ) (1,270 ) 11,299 (9,890 ) Changes in comprehensive income (loss) (390 ) (5 ) (302 ) 306 (391 ) Comprehensive income (loss) $ (10,280 ) $ (10,034 ) $ (1,572 ) $ 11,605 $ (10,281 ) Nine Months Ended September 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 6,056 $ 218,069 $ 104,105 $ — $ 328,230 Cost of sales — (146,324 ) (74,481 ) — (220,805 ) Depreciation, depletion, amortization — (49,732 ) (30,917 ) — (80,649 ) General and administrative (13,780 ) (11,416 ) (1,281 ) — (26,477 ) Exploration and pre-development (549 ) (5,379 ) (12,654 ) — (18,582 ) Gain/(loss) on derivative contracts 8,252 — — — 8,252 Acquisition costs (517 ) (1,645 ) — — (2,162 ) Equity in earnings of subsidiaries 28,005 — — (28,005 ) — Other (expense) income (51,472 ) 10,355 30,011 (4,899 ) (16,005 ) Income (loss) before income taxes (24,005 ) 13,928 14,783 (32,904 ) (28,198 ) (Provision) benefit from income taxes — (5,296 ) 4,590 4,899 4,193 Net income (loss) (24,005 ) 8,632 19,373 (28,005 ) (24,005 ) Preferred stock dividends (414 ) — — — (414 ) Income (loss) applicable to common shareholders (24,419 ) 8,632 19,373 (28,005 ) (24,419 ) Net income (loss) (24,005 ) 8,632 19,373 (28,005 ) (24,005 ) Changes in comprehensive income (loss) 390 (15 ) 485 (470 ) 390 Comprehensive income (loss) $ (23,615 ) $ 8,617 $ 19,858 $ (28,475 ) $ (23,615 ) Three Months Ended September 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,444 $ 94,202 $ 39,861 $ — $ 135,507 Cost of sales — (57,995 ) (28,685 ) — (86,680 ) Depreciation, depletion, amortization — (17,205 ) (9,599 ) — (26,804 ) General and administrative (4,048 ) (3,590 ) (246 ) — (7,884 ) Exploration and pre-development (4 ) (3,085 ) (3,099 ) — (6,188 ) Gain on derivative contracts (411 ) — — — (411 ) Equity in earnings of subsidiaries 96,349 — — (96,349 ) — Other expense (89,654 ) 3,503 14,450 68,017 (3,684 ) Income (loss) before income taxes 3,676 15,830 12,682 (28,332 ) 3,856 (Provision) benefit from income taxes — (2,878 ) 70,715 (68,017 ) (180 ) Net income (loss) 3,676 12,952 83,397 (96,349 ) 3,676 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common shareholders 3,538 12,952 83,397 (96,349 ) 3,538 Net income (loss) 3,676 12,952 83,397 (96,349 ) 3,676 Changes in comprehensive income (loss) 2,276 78 2,229 (2,307 ) 2,276 Comprehensive income (loss) $ 5,952 $ 13,030 $ 85,626 $ (98,656 ) $ 5,952 Nine Months Ended September 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (2,029 ) $ 260,577 $ 120,248 $ — $ 378,796 Cost of sales — (151,145 ) (84,315 ) — (235,460 ) Depreciation, depletion, amortization — (53,706 ) (26,636 ) — (80,342 ) General and administrative (13,207 ) (9,819 ) (958 ) — (23,984 ) Exploration and pre-development (56 ) (5,826 ) (8,451 ) — (14,333 ) Gain/(loss) on derivative contracts (2,560 ) — — — (2,560 ) Equity in earnings of subsidiaries 32,864 — — (32,864 ) — Other (expense) income (14,093 ) 4,781 (1,550 ) (11,398 ) (22,260 ) Income (loss) before income taxes 919 44,862 (1,662 ) (44,262 ) (143 ) (Provision) benefit from income taxes — (10,486 ) 150 11,398 1,062 Net income (loss) 919 34,376 (1,512 ) (32,864 ) 919 Preferred stock dividends (414 ) — — — (414 ) Income (loss) applicable to common shareholders 505 34,376 (1,512 ) (32,864 ) 505 Net income (loss) 919 34,376 (1,512 ) (32,864 ) 919 Changes in comprehensive income (loss) 1,438 303 2,449 (2,752 ) 1,438 Comprehensive income (loss) $ 2,357 $ 34,679 $ 937 $ (35,616 ) $ 2,357 Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated Cash flows from operating activities $ 11,043 $ 63,831 $ 32,258 $ (28,164 ) $ 78,968 Cash flows from investing activities: Additions to properties, plants, and equipment (436 ) (69,930 ) (25,033 ) (95,399 ) Acquisition of Revett, net of cash acquired (809 ) — — — (809 ) Other investing activities, net 61 172 (903 ) — (670 ) Cash flows from financing activities: Dividends paid to shareholders (3,210 ) — — — (3,210 ) Proceeds from (payments on) debt — (7,109 ) (940 ) (8,049 ) Other financing activity, net (29,949 ) 24,294 (24,507 ) 28,164 (1,998 ) Effect of exchange rates on cash — — (4,044 ) — (4,044 ) Changes in cash and cash equivalents (23,300 ) 11,258 (23,169 ) — (35,211 ) Beginning cash and cash equivalents 146,885 33,824 28,956 — 209,665 Ending cash and cash equivalents $ 123,585 $ 45,082 $ 5,787 $ — $ 174,454 Nine Months Ended September 30, 2014 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 37,533 $ 32,896 $ 20,307 $ (31,968 ) $ 58,768 Cash flows from investing activities: Additions to properties, plants, and equipment (1,057 ) (58,472 ) (31,168 ) — (90,697 ) Other investing activities, net — 358 3,843 — 4,201 Cash flows from financing activities: Dividends paid to shareholders (3,043 ) — — — (3,043 ) Proceeds from (payments on) debt — (6,878 ) (15 ) — (6,893 ) Other financing activity, net (7,965 ) 40,292 (14,322 ) 31,968 49,973 Effect of exchange rates on cash — — (2,124 ) — (2,124 ) Changes in cash and cash equivalents 25,468 8,196 (23,479 ) — 10,185 Beginning cash and cash equivalents 126,271 40,009 45,895 — 212,175 Ending cash and cash equivalents $ 151,739 $ 48,205 $ 22,416 $ — $ 222,360 |