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. Condensed Consolidating Balance Sheets As of September 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 109,756 $ 39,255 $ 18,833 $ — $ 167,844 Other current assets 51,486 58,839 46,082 (14,250 ) 142,157 Properties, plants, and equipment - net 2,226 1,255,019 765,864 — 2,023,109 Intercompany receivable (payable) 477,706 (322,988 ) (325,799 ) 171,081 — Investments in subsidiaries 1,359,813 — — (1,359,813 ) — Other non-current assets 1,896 190,705 8,245 (170,277 ) 30,569 Total assets $ 2,002,883 $ 1,220,830 $ 513,225 $ (1,373,259 ) $ 2,363,679 Liabilities and Stockholders' Equity Current liabilities $ (6,626 ) $ 84,493 $ 57,908 $ (628 ) $ 135,147 Long-term debt 500,666 4,019 2,513 — 507,198 Non-current portion of accrued reclamation — 55,512 28,086 — 83,598 Non-current deferred tax liability — 15,258 121,973 (12,846 ) 124,385 Other non-current liabilities 46,860 4,856 (376 ) 28 51,368 Shareholders' equity 1,461,983 1,056,692 303,121 (1,359,813 ) 1,461,983 Total liabilities and stockholders' equity $ 2,002,883 $ 1,220,830 $ 513,225 $ (1,373,259 ) $ 2,363,679 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 Condensed Consolidating Statements of Operations Three Months Ended September 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Revenues $ (4,072 ) $ 116,016 $ 67,449 $ — $ 179,393 Cost of sales — (62,376 ) (31,685 ) — (94,061 ) Depreciation, depletion, amortization — (15,504 ) (11,143 ) — (26,647 ) General and administrative (5,355 ) (5,469 ) (331 ) — (11,155 ) Exploration and pre-development (33 ) (1,343 ) (3,033 ) — (4,409 ) Gain/(loss) on derivative contracts 7 — — — 7 Acquisition costs (1,766 ) 1 — — (1,765 ) Equity in earnings of subsidiaries 52,606 — — (52,606 ) — Other (expense) income (15,597 ) 1,187 1,211 7,078 (6,121 ) Income (loss) before income taxes 25,790 32,512 22,468 (45,528 ) 35,242 (Provision) benefit from income taxes — (8,994 ) 6,621 (7,080 ) (9,453 ) Net income (loss) 25,790 23,518 29,089 (52,608 ) 25,789 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common shareholders 25,652 23,518 29,089 (52,608 ) 25,651 Net income (loss) 25,790 23,518 29,089 (52,608 ) 25,789 Changes in comprehensive income (loss) (615 ) — 985 (985 ) (615 ) Comprehensive income (loss) $ 25,175 $ 23,518 $ 30,074 $ (53,593 ) $ 25,174 Nine Months Ended September 30, 2016 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Revenues $ (15,866 ) $ 285,277 $ 212,301 $ — $ 481,712 Cost of sales — (156,333 ) (95,002 ) — (251,335 ) Depreciation, depletion, amortization — (47,348 ) (35,071 ) — (82,419 ) General and administrative (17,069 ) (13,671 ) (988 ) — (31,728 ) Exploration and pre-development (191 ) (3,990 ) (7,465 ) — (11,646 ) Gain/(loss) on derivative contracts — — — — — Acquisition costs (2,160 ) (7 ) — — (2,167 ) Equity in earnings of subsidiaries 68,727 — — (68,727 ) — Other (expense) income 15,844 8,147 (43,039 ) (11,481 ) (30,529 ) Income (loss) before income taxes 49,285 72,075 30,736 (80,208 ) 71,888 (Provision) benefit from income taxes — (22,213 ) (11,871 ) 11,481 (22,603 ) Net income (loss) 49,285 49,862 18,865 (68,727 ) 49,285 Preferred stock dividends (414 ) — — — (414 ) Income (loss) applicable to common shareholders 48,871 49,862 18,865 (68,727 ) 48,871 Net income (loss) 49,285 49,862 18,865 (68,727 ) 49,285 Changes in comprehensive income (loss) 1,689 8 3,238 (3,246 ) 1,689 Comprehensive income (loss) $ 50,974 $ 49,870 $ 22,103 $ (71,973 ) $ 50,974 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 on derivative contracts 3,347 — — — 3,347 Acquisition costs 1,538 (1,553 ) — — (15 ) Equity in earnings of subsidiaries (11,299 ) — — 11,299 — Other expense (2,964 ) 3,289 21,549 (21,338 ) 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) (391 ) (4 ) (302 ) 306 (391 ) Comprehensive income (loss) $ (10,281 ) $ (10,033 ) $ (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 ) Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2016 Parent Guarantors Non - Guarantors Eliminations Consolidated Cash flows from operating activities $ 14,525 $ 51,599 $ 61,710 $ 45,280 $ 173,114 Cash flows from investing activities: Additions to properties, plants, and equipment (348 ) (71,265 ) (48,623 ) — (120,236 ) Acquisition of Mines Management, net of cash acquired (3,931 ) — — (3,931 ) Other investing activities, net (24,696 ) (816 ) (3,647 ) — (29,159 ) Cash flows from financing activities: Dividends paid to shareholders (3,296 ) — — — (3,296 ) Proceeds from (payments on) debt — (7,477 ) (658 ) — (8,135 ) Other financing activity, net 33,335 24,522 (8,926 ) (45,280 ) 3,651 Effect of exchange rates on cash — — 627 — 627 Changes in cash and cash equivalents 15,589 (3,437 ) 483 — 12,635 Beginning cash and cash equivalents 94,167 42,692 18,350 — 155,209 Ending cash and cash equivalents $ 109,756 $ 39,255 $ 18,833 $ — $ 167,844 Nine Months Ended September 30, 2015 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) 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 |