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 June 30, 2019, third 2019 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 June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 14 $ 2,107 $ 7,313 $ — $ 9,434 Other current assets 12,108 62,222 61,728 (74 ) 135,984 Properties, plants, equipment and mineral interests, net 1,913 1,785,072 698,884 — 2,485,869 Intercompany receivable (payable) 152,061 (364,163 ) (199,609 ) 411,711 — Investments in subsidiaries 1,506,079 — — (1,506,079 ) — Other non-current assets 286,460 22,798 (117,873 ) (151,959 ) 39,426 Total assets $ 1,958,635 $ 1,508,036 $ 450,443 $ (1,246,401 ) $ 2,670,713 Liabilities and Stockholders' Equity Current liabilities $ (314,607 ) $ 122,102 $ 44,741 $ 265,617 $ 117,853 Long-term debt 586,667 18,226 2,197 — 607,090 Non-current portion of accrued reclamation — 89,209 14,573 — 103,782 Non-current deferred tax liability — 66,781 87,496 (5,939 ) 148,338 Other non-current liabilities 47,347 6,116 959 — 54,422 Stockholders' equity 1,639,228 1,205,602 300,477 (1,506,079 ) 1,639,228 Total liabilities and stockholders' equity $ 1,958,635 $ 1,508,036 $ 450,443 $ (1,246,401 ) $ 2,670,713 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, equipment and mineral interests, 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 June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,292 $ 76,213 $ 56,667 $ — $ 134,172 Cost of sales (257 ) (58,994 ) (45,687 ) — (104,938 ) Depreciation, depletion, amortization — (29,068 ) (20,409 ) — (49,477 ) General and administrative (4,766 ) (3,738 ) (414 ) — (8,918 ) Exploration and pre-development (3 ) (2,097 ) (3,044 ) — (5,144 ) Research and development — (153 ) (5 ) — (158 ) Gain on derivative contracts 3,798 — — — 3,798 Acquisition costs (163 ) (81 ) (153 ) — (397 ) Equity in earnings of subsidiaries (48,370 ) — — 48,370 — Other expense 1,939 (6,091 ) (20,058 ) (2,439 ) (26,649 ) Income (loss) before income taxes (46,530 ) (24,009 ) (33,103 ) 45,931 (57,711 ) (Provision) benefit from income taxes (2 ) (2,859 ) 11,601 2,439 11,179 Net income (loss) (46,532 ) (26,868 ) (21,502 ) 48,370 (46,532 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (46,670 ) (26,868 ) (21,502 ) 48,370 (46,670 ) Net income (loss) (46,532 ) (26,868 ) (21,502 ) 48,370 (46,532 ) Changes in comprehensive income (loss) 3,540 — — — 3,540 Comprehensive income (loss) $ (42,992 ) $ (26,868 ) $ (21,502 ) $ 48,370 $ (42,992 ) Six Months Ended June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (1,185 ) $ 178,645 $ 109,329 $ — $ 286,789 Cost of sales (718 ) (125,863 ) (88,743 ) — (215,324 ) Depreciation, depletion, amortization — (49,940 ) (38,324 ) — (88,264 ) General and administrative (9,159 ) (8,849 ) (869 ) — (18,877 ) Exploration and pre-development (19 ) (3,641 ) (6,742 ) — (10,402 ) Research and development — (506 ) (55 ) — (561 ) Loss on derivative contracts 1,999 — — — 1,999 Acquisition costs (121 ) (136 ) (153 ) — (410 ) Equity in earnings of subsidiaries (70,803 ) — — 70,803 — Other expense 7,943 (11,821 ) (32,700 ) (8,832 ) (45,410 ) Income (loss) before income taxes (72,063 ) (22,111 ) (58,257 ) 61,971 (90,460 ) (Provision) benefit from income taxes (2 ) (6,775 ) 16,340 8,832 18,395 Net income (loss) (72,065 ) (28,886 ) (41,917 ) 70,803 (72,065 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (72,341 ) (28,886 ) (41,917 ) 70,803 (72,341 ) Net income (loss) (72,065 ) (28,886 ) (41,917 ) 70,803 (72,065 ) Changes in comprehensive income (loss) 7,799 — — — 7,799 Comprehensive income (loss) $ (64,266 ) $ (28,886 ) $ (41,917 ) $ 70,803 $ (64,266 ) Three Months Ended June 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 2,697 $ 75,197 $ 69,365 $ — $ 147,259 Cost of sales (73 ) (37,489 ) (42,878 ) — (80,440 ) Depreciation, depletion, amortization — (11,996 ) (19,821 ) — (31,817 ) General and administrative (4,615 ) (4,602 ) (570 ) — (9,787 ) Exploration and pre-development (72 ) (3,064 ) (6,117 ) — (9,253 ) Research and development — (1,579 ) (758 ) — (2,337 ) Gain on derivative contracts 16,804 — — — 16,804 Acquisition costs (940 ) (68 ) (2 ) — (1,010 ) Foreign exchange gain (loss) (5,731 ) (74 ) 8,281 — 2,476 Suspension costs — (6,801 ) — — (6,801 ) Equity in earnings of subsidiaries 5,745 — — (5,745 ) — Other (expense) income (1,741 ) (1,616 ) (5,522 ) (3,714 ) (12,593 ) Income (loss) before income taxes 12,074 7,908 1,978 (9,459 ) 12,501 (Provision) benefit from income taxes — (3,715 ) (426 ) 3,714 (427 ) Net income (loss) 12,074 4,193 1,552 (5,745 ) 12,074 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders 11,936 4,193 1,552 (5,745 ) 11,936 Net income (loss) 12,074 4,193 1,552 (5,745 ) 12,074 Changes in comprehensive income (loss) (5,162 ) — — — (5,162 ) Comprehensive income (loss) $ 6,912 $ 4,193 $ 1,552 $ (5,745 ) $ 6,912 Six Months Ended June 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 3,312 $ 145,408 $ 138,248 $ — $ 286,968 Cost of sales 402 (72,190 ) (81,521 ) — (153,309 ) Depreciation, depletion, amortization — (23,256 ) (36,615 ) — (59,871 ) General and administrative (8,448 ) (8,050 ) (1,024 ) — (17,522 ) Exploration and pre-development (127 ) (5,003 ) (12,488 ) — (17,618 ) Research and development — (2,061 ) (1,712 ) — (3,773 ) Loss on derivative contracts 20,811 — — — 20,811 Acquisition costs (3,300 ) (68 ) (149 ) — (3,517 ) Foreign exchange gain (loss) (14,435 ) (74 ) 19,577 — 5,068 Suspension costs — (11,818 ) — — (11,818 ) Equity in earnings of subsidiaries 23,513 — — (23,513 ) — Other (expense) income (1,414 ) (3,393 ) (9,901 ) (9,202 ) (23,910 ) Income (loss) before income taxes 20,314 19,495 14,415 (32,715 ) 21,509 (Provision) benefit from income taxes — (9,203 ) (1,194 ) 9,202 (1,195 ) Net income (loss) 20,314 10,292 13,221 (23,513 ) 20,314 Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders 20,038 10,292 13,221 (23,513 ) 20,038 Net income (loss) 20,314 10,292 13,221 (23,513 ) 20,314 Changes in comprehensive income (loss) (7,267 ) — 38 (38 ) (7,267 ) Comprehensive income (loss) $ 13,048 $ 10,292 $ 13,259 $ (23,551 ) $ 13,048 Unaudited Interim Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (168,393 ) $ 2,714 $ 12,414 $ 137,550 $ 8,713 Cash flows from investing activities: Additions to properties, plants, and equipment — (52,144 ) (19,101 ) (71,245 ) Other investing activities, net 71,485 17 (99 ) (71,485 ) (82 ) Cash flows from financing activities: Dividends paid to stockholders (2,706 ) — — (2,706 ) Issuance of debt 170,000 — — 170,000 Payments on debt (118,000 ) (2,475 ) (902 ) (121,377 ) Other financing activity 41,363 20,906 2,106 (66,065 ) (1,690 ) Effect of exchange rate changes on cash — — 432 432 Changes in cash, cash equivalents and restricted cash and cash equivalents (6,251 ) (6,554 ) (5,150 ) — (17,955 ) 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 $ 14 $ 3,132 $ 7,313 $ — $ 10,459 Six Months Ended June 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 27,981 $ 60,805 $ 2,166 $ (43,934 ) $ 47,018 Cash flows from investing activities: Additions to properties, plants, and equipment — (25,454 ) (17,850 ) — (43,304 ) Other investing activities, net 6,294 44 420 21,359 28,117 Cash flows from financing activities: Dividends paid to stockholders (2,276 ) — — — (2,276 ) Borrowings on debt 31,024 — — — 31,024 Payments on debt — (1,393 ) (2,369 ) — (3,762 ) Other financing activity (3,544 ) (40,658 ) 18,930 22,575 (2,697 ) Effect of exchange rate changes on cash — — (532 ) — (532 ) Changes in cash, cash equivalents and restricted cash and cash equivalents 59,479 (6,656 ) 765 — 53,588 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 $ 163,357 $ 25,392 $ 51,978 $ — $ 240,727 |