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 Senior 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 and its subsidiaries and among the 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. Effective December 31, 2015, Hecla Limited (our wholly owned subsidiary) sold 100% of its ownership of Hecla Alaska LLC (its wholly owned subsidiary) to Hecla Mining Company for consideration totaling approximately $240.8 million. The consideration consisted of satisfaction of inter-company debt between Hecla Limited and Hecla Mining Company and an obligation by Hecla Mining Company, under certain circumstances, to fund a limited amount of the capital requirements of Hecla Limited for up to five years. Hecla Alaska LLC owns a 29.7331% interest in the joint venture which owns the Greens Creek mine. Unaudited Interim Condensed Consolidating Balance Sheets As of June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 Other current assets 41,498 95,009 43,534 (12,519 ) 167,522 Properties, plants, and equipment - net 2,266 1,167,053 756,839 — 1,926,158 Intercompany receivable (payable) 553,020 (342,822 ) (329,269 ) 119,071 — Investments in subsidiaries 1,247,747 — — (1,247,747 ) — Other non-current assets 2,518 177,907 5,206 (152,114 ) 33,517 Total assets $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 Liabilities and Stockholders' Equity Current liabilities $ 21,820 $ 82,221 $ 50,845 $ (25,098 ) $ 129,788 Long-term debt 500,354 5,079 2,237 — 507,670 Non-current portion of accrued reclamation — 43,381 29,638 — 73,019 Non-current deferred tax liability — 13,293 134,584 (20,464 ) 127,413 Other non-current liabilities 47,685 5,937 (380 ) — 53,242 Stockholders' equity 1,379,678 970,956 276,791 (1,247,747 ) 1,379,678 Total liabilities and stockholders' equity $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 As of December 31, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 94,167 $ 42,692 $ 18,350 $ — $ 155,209 Other current assets 15,972 58,453 32,273 7,626 114,324 Properties, plants, and equipment - net 2,281 1,147,770 746,760 — 1,896,811 Intercompany receivable (payable) 540,665 (301,291 ) (332,553 ) 93,179 — Investments in subsidiaries 1,252,191 — — (1,252,191 ) — Other non-current assets 2,200 165,080 1,781 (113,480 ) 55,581 Total assets $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 Liabilities and Stockholders' Equity Current liabilities $ 21,087 $ 84,559 $ 30,636 $ (9,198 ) $ 127,084 Long-term debt 499,729 6,128 3,183 — 509,040 Non-current portion of accrued reclamation — 45,494 29,055 — 74,549 Non-current deferred tax liability — 3,264 119,836 (3,477 ) 119,623 Other non-current liabilities 47,734 5,834 (865 ) — 52,703 Stockholders' equity 1,338,926 967,425 284,766 (1,252,191 ) 1,338,926 Total liabilities and stockholders' equity $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (5,659 ) $ 87,992 $ 88,969 $ — $ 171,302 Cost of sales — (47,203 ) (35,750 ) — (82,953 ) Depreciation, depletion, amortization — (15,238 ) (14,659 ) — (29,897 ) General and administrative (6,474 ) (3,679 ) (206 ) — (10,359 ) Exploration and pre-development (113 ) (1,360 ) (2,410 ) — (3,883 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 37,111 — — (37,111 ) — Other (expense) income (349 ) 2,623 (8,732 ) (1,732 ) (8,190 ) Income (loss) before income taxes 24,116 23,127 27,212 (38,843 ) 35,612 (Provision) benefit from income taxes — (8,386 ) (4,842 ) 1,732 (11,496 ) Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders 23,978 14,741 22,370 (37,111 ) 23,978 Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Changes in comprehensive income (loss) 1,239 — 1,193 (1,193 ) 1,239 Comprehensive income (loss) $ 25,355 $ 14,741 $ 23,563 $ (38,304 ) $ 25,355 Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (11,794 ) $ 169,261 $ 144,852 $ — $ 302,319 Cost of sales — (93,956 ) (63,317 ) — (157,273 ) Depreciation, depletion, amortization — (31,844 ) (23,928 ) — (55,772 ) General and administrative (11,714 ) (8,202 ) (657 ) — (20,573 ) Exploration and pre-development (158 ) (2,647 ) (4,432 ) — (7,237 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 16,120 — — (16,120 ) — Other (expense) income 31,444 6,959 (44,250 ) (18,561 ) (24,408 ) Income (loss) before income taxes 23,498 39,563 8,268 (34,681 ) 36,648 (Provision) benefit from income taxes — (13,219 ) (18,492 ) 18,561 (13,150 ) Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders 23,222 26,344 (10,224 ) (16,120 ) 23,222 Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Changes in comprehensive income (loss) 2,304 8 2,253 (2,261 ) 2,304 Comprehensive income (loss) $ 25,802 $ 26,352 $ (7,971 ) $ (18,381 ) $ 25,802 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 ) Acquisition costs (887 ) — — — (887 ) Loss on derivative contracts (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 ) 1,082 (1,155 ) Comprehensive income (loss) $ (27,823 ) $ 6,364 $ (8,183 ) $ 1,820 $ (27,822 ) 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 ) Gain 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 (775 ) 781 Comprehensive income (loss) $ (13,335 ) $ 18,650 $ 21,430 $ (40,079 ) $ (13,334 ) Unaudited Interim Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 22,190 $ (8,639 ) $ 40,815 $ 31,772 $ 86,138 Cash flows from investing activities: Additions to properties, plants, and equipment (40 ) (43,677 ) (33,243 ) (76,960 ) Other investing activities, net (15,248 ) 317 (3,900 ) — (18,831 ) Cash flows from financing activities: Dividends paid to stockholders (2,190 ) — — (2,190 ) Payments on debt (1,339 ) (3,836 ) (520 ) (5,695 ) Other financing activity (4,948 ) 36,863 (5,385 ) (31,772 ) 4,654 Effect of exchange rate changes on cash — — 1,288 — 1,288 Changes in cash and cash equivalents 8,321 (18,972 ) (945 ) — (11,596 ) Beginning cash and cash equivalents 94,167 42,692 18,350 — 155,209 Ending cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 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 |