Guarantor Subsidiaries [Text Block] | Note 14. Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3 10 X 1934, Note 9 100% April 12, 2013, January 3, 2014. March 5, 2018. 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 report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries 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 third • Investments in subsidiaries • Capital contributions not not • Debt. • Dividends. • Deferred taxes may not Separate financial statements of the Guarantors are not 1 2 3 4 5 Unaudited Interim Condensed Consolidating Balance Sheets As of March 31, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 3,401 $ 3,269 $ 5,127 $ — $ 11,797 Other current assets 6,359 61,293 64,732 (74 ) 132,310 Properties, plants, and equipment - net 1,913 1,792,578 714,490 — 2,508,981 Intercompany receivable (payable) 162,575 (342,867 ) (182,748 ) 363,040 — Investments in subsidiaries 1,554,448 — — (1,554,448 ) — Other non-current assets 278,379 23,540 (115,696 ) (144,706 ) 41,517 Total assets $ 2,007,075 $ 1,537,813 $ 485,905 $ (1,336,188 ) $ 2,694,605 Liabilities and Stockholders' Equity Current liabilities $ (247,045 ) $ 118,535 $ 49,545 $ 225,786 $ 146,821 Long-term debt 533,723 19,682 3,584 — 556,989 Non-current portion of accrued reclamation — 90,083 14,103 — 104,186 Non-current deferred tax liability — 71,173 95,778 (7,526 ) 159,425 Other non-current liabilities 49,827 5,871 916 — 56,614 Stockholders' equity 1,670,570 1,232,469 321,979 (1,554,448 ) 1,670,570 Total liabilities and stockholders' equity $ 2,007,075 $ 1,537,813 $ 485,905 $ (1,336,188 ) $ 2,694,605 As of December 31, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 6,265 $ 8,661 $ 12,463 $ — $ 27,389 Other current assets 6,388 69,574 60,868 (69 ) 136,761 Properties, plants, and equipment - net 1,913 1,795,994 722,097 — 2,520,004 Intercompany receivable (payable) 171,905 (222,815 ) (171,834 ) 222,744 — Investments in subsidiaries 1,577,564 — — (1,577,564 ) — Other non-current assets 276,641 9,030 (122,969 ) (142,912 ) 19,790 Total assets $ 2,040,676 $ 1,660,444 $ 500,625 $ (1,497,801 ) $ 2,703,944 Liabilities and Stockholders' Equity Current liabilities $ (234,133 ) $ 118,863 $ 45,922 $ 205,542 $ 136,194 Long-term debt 532,799 141,870 1,989 (135,988 ) 540,670 Non-current portion of accrued reclamation — 94,602 10,377 — 104,979 Non-current deferred tax liability — 64,639 98,689 10,209 173,537 Other non-current liabilities 51,047 5,659 895 — 57,601 Stockholders' equity 1,690,963 1,234,811 342,753 (1,577,564 ) 1,690,963 Total liabilities and stockholders' equity $ 2,040,676 $ 1,660,444 $ 500,625 $ (1,497,801 ) $ 2,703,944 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended March 31, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (2,477 ) $ 102,432 $ 52,662 $ — $ 152,617 Cost of sales (461 ) (66,869 ) (43,056 ) — (110,386 ) Depreciation, depletion, amortization — (20,872 ) (17,915 ) — (38,787 ) General and administrative (4,393 ) (5,111 ) (455 ) — (9,959 ) Exploration and pre-development (16 ) (1,544 ) (3,698 ) — (5,258 ) Research and development — (353 ) (50 ) — (403 ) Loss on derivative contracts (1,799 ) — — — (1,799 ) Acquisition costs 42 (55 ) — — (13 ) Equity in earnings of subsidiaries (22,433 ) — — 22,433 — Other (expense) income 6,004 (5,730 ) (12,642 ) (6,393 ) (18,761 ) (Loss) income before income taxes (25,533 ) 1,898 (25,154 ) 16,040 (32,749 ) (Provision) benefit from income taxes — (3,916 ) 4,739 6,393 7,216 Net (loss) income (25,533 ) (2,018 ) (20,415 ) 22,433 (25,533 ) Preferred stock dividends (138 ) — — — (138 ) (Loss) income applicable to common stockholders (25,671 ) (2,018 ) (20,415 ) 22,433 (25,671 ) Net (loss) income (25,533 ) (2,018 ) (20,415 ) 22,433 (25,533 ) Changes in comprehensive (loss) income 4,259 — — — 4,259 Comprehensive (loss) income $ (21,274 ) $ (2,018 ) $ (20,415 ) $ 22,433 $ (21,274 ) Three Months Ended March 31, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 615 $ 70,211 $ 68,883 $ — $ 139,709 Cost of sales 475 (34,701 ) (38,643 ) — (72,869 ) Depreciation, depletion, amortization — (11,260 ) (16,794 ) — (28,054 ) General and administrative (3,833 ) (3,448 ) (454 ) — (7,735 ) Exploration and pre-development (55 ) (1,939 ) (6,371 ) — (8,365 ) Research and development — (482 ) (954 ) — (1,436 ) Gain on derivative contracts 4,007 — — — 4,007 Acquisition costs (2,360 ) — (147 ) — (2,507 ) Equity in earnings of subsidiaries 17,768 — — (17,768 ) — Other (expense) income (8,377 ) (6,794 ) 6,917 (5,488 ) (13,742 ) Income (loss) before income taxes 8,240 11,587 12,437 (23,256 ) 9,008 (Provision) benefit from income taxes — (5,488 ) (768 ) 5,488 (768 ) Net income (loss) 8,240 6,099 11,669 (17,768 ) 8,240 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders 8,102 6,099 11,669 (17,768 ) 8,102 Net income (loss) 8,240 6,099 11,669 (17,768 ) 8,240 Changes in comprehensive income (loss) (2,104 ) — 38 (38 ) (2,104 ) Comprehensive income (loss) $ 6,136 $ 6,099 $ 11,707 $ (17,806 ) $ 6,136 Unaudited Interim Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (38,879 ) $ 36,481 $ (17,553 ) $ 39,981 $ 20,030 Cash flows from investing activities: Additions to properties, plants, and equipment — (25,401 ) (7,670 ) — (33,071 ) Other investing activities, net 23,116 (1 ) 2 (23,116 ) 1 Cash flows from financing activities: Dividends paid to stockholders (1,348 ) — — — (1,348 ) Borrowings on debt 58,000 — — — 58,000 Payments on debt (58,000 ) (746 ) (515 ) — (59,261 ) Other financing activity 14,247 (15,725 ) 18,305 (16,865 ) (38 ) Effect of exchange rate changes on cash — — 95 — 95 Changes in cash, cash equivalents and restricted cash and cash equivalents (2,864 ) (5,392 ) (7,336 ) — (15,592 ) Beginning cash, cash equivalents and restricted cash and cash equivalents 6,265 9,686 12,463 — 28,414 Ending cash, cash equivalents and restricted cash and cash equivalents $ 3,401 $ 4,294 $ 5,127 $ — $ 12,822 Three Months Ended March 31, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 21,183 $ 18,747 $ 13,396 $ (36,943 ) $ 16,383 Cash flows from investing activities: Additions to properties, plants, and equipment — (8,082 ) (9,553 ) — (17,635 ) Other investing activities, net (16,260 ) 151 — 15,579 (530 ) Cash flows from financing activities: Dividends paid to stockholders (1,136 ) — — — (1,136 ) Payments on debt — (644 ) (678 ) — (1,322 ) Other financing activity (1,186 ) (20,118 ) (1,285 ) 21,364 (1,225 ) Effect of exchange rate changes on cash — — 876 — 876 Changes in cash, cash equivalents and restricted cash and cash equivalents 33,625 (9,946 ) 2,756 — 26,435 Beginning cash, cash equivalents and restricted cash and cash equivalents 103,878 32,048 51,213 — 187,139 Ending cash, cash equivalents and restricted cash and cash equivalents $ 137,503 $ 22,102 $ 53,969 $ — $ 213,574 |