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 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 condensed 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 two may not Separate financial statements of the Guarantors are not 1 2 3 4 5 Unaudited Interim Condensed Consolidating Balance Sheets As of September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 18,983 $ 9,608 $ 4,404 $ — $ 32,995 Other current assets 7,031 113,542 25,430 (72 ) 145,931 Properties, plants, equipment and mineral interests - net 1,913 2,438,137 15,461 — 2,455,511 Intercompany receivable (payable) 143,248 (709,012 ) 149,616 416,148 — Investments in subsidiaries 1,499,318 — — (1,499,318 ) — Other non-current assets 284,380 25,380 (120,645 ) (150,374 ) 38,741 Total assets $ 1,954,873 $ 1,877,655 $ 74,266 $ (1,233,616 ) $ 2,673,178 Liabilities and Stockholders' Equity Current liabilities $ (298,754 ) $ 165,564 $ 10,704 $ 268,329 $ 145,843 Long-term debt 584,618 19,159 876 — 604,653 Non-current portion of accrued reclamation — 95,674 8,147 — 103,821 Non-current deferred tax liability — 146,069 — (2,627 ) 143,442 Other non-current liabilities 52,365 5,393 1,017 — 58,775 Shareholders' equity 1,616,644 1,445,796 53,522 (1,499,318 ) 1,616,644 Total liabilities and stockholders' equity $ 1,954,873 $ 1,877,655 $ 74,266 $ (1,233,616 ) $ 2,673,178 As of December 31, 2018 Parent Guarantors Non- Guarantors Eliminations Consolidated Revised Revised (in thousands) Assets Cash and cash equivalents $ 6,266 $ 17,233 $ 3,890 $ — $ 27,389 Other current assets 6,388 105,900 24,542 (69 ) 136,761 Properties, plants, equipment and mineral interests, net 1,913 2,503,467 14,624 — 2,520,004 Intercompany receivable (payable) 171,908 (546,374 ) 152,031 222,435 — Investments in subsidiaries 1,577,869 — — (1,577,869 ) — Other non-current assets 276,641 10,906 (124,845 ) (142,912 ) 19,790 Total assets $ 2,040,985 $ 2,091,132 $ 70,242 $ (1,498,415 ) $ 2,703,944 Liabilities and Stockholders' Equity Current liabilities $ (233,824 ) $ 157,640 $ 7,145 $ 205,233 $ 136,194 Long-term debt 532,799 143,858 1 (135,988 ) 540,670 Non-current portion of accrued reclamation — 100,445 4,534 — 104,979 Non-current deferred tax liability — 163,328 — 10,209 173,537 Other non-current liabilities 51,047 5,641 913 — 57,601 Stockholders' equity 1,690,963 1,520,220 57,649 (1,577,869 ) 1,690,963 Total liabilities and stockholders' equity $ 2,040,985 $ 2,091,132 $ 70,242 $ (1,498,415 ) $ 2,703,944 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,049 $ 144,999 $ 15,484 $ — $ 161,532 Cost of sales (472 ) (85,829 ) (9,577 ) — (95,878 ) Depreciation, depletion, amortization — (47,448 ) (3,326 ) — (50,774 ) General and administrative (2,951 ) (4,722 ) (305 ) — (7,978 ) Exploration and pre-development (3 ) (4,315 ) (1,371 ) — (5,689 ) Research and development — 37 (90 ) — (53 ) Loss on derivative contracts (4,718 ) — — — (4,718 ) Foreign exchange gain (loss) (3,201 ) 5,129 (1,155 ) — 773 Lucky Friday suspension-related costs — (3,722 ) — — (3,722 ) Acquisition costs (100 ) (83 ) — — (183 ) Equity in earnings of subsidiaries (6,761 ) — — 6,761 — Other (expense) income (2,359 ) (9,930 ) 1,606 (3,757 ) (14,440 ) Income (loss) before income taxes (19,516 ) (5,884 ) 1,266 3,004 (21,130 ) (Provision) benefit from income taxes — (625 ) (1,518 ) 3,757 1,614 Net income (loss) (19,516 ) (6,509 ) (252 ) 6,761 (19,516 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common shareholders (19,654 ) (6,509 ) (252 ) 6,761 (19,654 ) Net income (loss) (19,516 ) (6,509 ) (252 ) 6,761 (19,516 ) Changes in comprehensive income (loss) (3,288 ) — — — (3,288 ) Comprehensive income (loss) $ (22,804 ) $ (6,509 ) $ (252 ) $ 6,761 $ (22,804 ) Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (136 ) $ 409,339 $ 39,118 $ — $ 448,321 Cost of sales (1,190 ) (280,397 ) (29,615 ) — (311,202 ) Depreciation, depletion, amortization — (132,104 ) (6,934 ) — (139,038 ) General and administrative (12,110 ) (13,571 ) (1,174 ) — (26,855 ) Exploration and pre-development (22 ) (10,645 ) (5,424 ) — (16,091 ) Research and development — (521 ) (93 ) — (614 ) Loss on derivative contracts (2,719 ) — — — (2,719 ) Foreign exchange gain (loss) 7,820 (14,636 ) 75 — (6,741 ) Lucky Friday suspension-related costs — (8,766 ) — — (8,766 ) Acquisition costs (221 ) (219 ) (153 ) — (593 ) Equity in earnings of subsidiaries (77,563 ) — — 77,563 — Other (expense) income (5,438 ) (31,573 ) 2,308 (12,589 ) (47,292 ) Income (loss) before income taxes (91,579 ) (83,093 ) (1,892 ) 64,974 (111,590 ) (Provision) benefit from income taxes (2 ) 6,864 558 12,589 20,009 Net income (loss) (91,581 ) (76,229 ) (1,334 ) 77,563 (91,581 ) Preferred stock dividends (414 ) — — — (414 ) Income (loss) applicable to common shareholders (91,995 ) (76,229 ) (1,334 ) 77,563 (91,995 ) Net income (loss) (91,581 ) (76,229 ) (1,334 ) 77,563 (91,581 ) Changes in comprehensive income (loss) 4,511 — — — 4,511 Comprehensive income (loss) $ (87,070 ) $ (76,229 ) $ (1,334 ) $ 77,563 $ (87,070 ) Three Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revised Revised (in thousands) Revenues $ 5,020 $ 124,497 $ 14,132 $ — $ 143,649 Cost of sales (157 ) (80,876 ) (12,576 ) — (93,609 ) Depreciation, depletion, amortization — (41,669 ) (1,795 ) — (43,464 ) General and administrative (4,802 ) (5,082 ) (443 ) — (10,327 ) Exploration and pre-development (1 ) (11,227 ) (2,378 ) — (13,606 ) Research and development — (732 ) (537 ) — (1,269 ) Gain on derivative contracts 19,460 — — — 19,460 Foreign exchange gain (loss) 4,640 (7,629 ) 777 — (2,212 ) Lucky Friday suspension costs — (6,519 ) — — (6,519 ) Acquisition costs (5,741 ) (386 ) (12 ) — (6,139 ) Equity in earnings of subsidiaries (54,618 ) — — 54,618 — Other expense 13,016 (4,756 ) (262 ) (19,825 ) (11,827 ) Income (loss) before income taxes (23,183 ) (34,379 ) (3,094 ) 34,793 (25,863 ) (Provision) benefit from income taxes (1 ) (17,530 ) 385 19,825 2,679 Net income (loss) (23,184 ) (51,909 ) (2,709 ) 54,618 (23,184 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common shareholders (23,322 ) (51,909 ) (2,709 ) 54,618 (23,322 ) Net income (loss) (23,184 ) (51,909 ) (2,709 ) 54,618 (23,184 ) Changes in comprehensive income (loss) 3,746 — — — 3,746 Comprehensive income (loss) $ (19,438 ) $ (51,909 ) $ (2,709 ) $ 54,618 $ (19,438 ) Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revised Revised (in thousands) Revenues $ 8,332 $ 381,556 $ 40,729 $ — $ 430,617 Cost of sales 245 (219,497 ) (27,666 ) — (246,918 ) Depreciation, depletion, amortization — (99,749 ) (3,586 ) — (103,335 ) General and administrative (13,250 ) (13,247 ) (1,352 ) — (27,849 ) Exploration and pre-development (128 ) (22,571 ) (8,525 ) — (31,224 ) Research and development — (3,702 ) (1,340 ) — (5,042 ) Gain/(loss) on derivative contracts 40,271 — — — 40,271 Foreign exchange gain (loss) (9,795 ) 12,230 421 — 2,856 Lucky Friday suspension costs — (18,337 ) — — (18,337 ) Acquisition costs (9,041 ) (454 ) (161 ) — (9,656 ) Equity in earnings of subsidiaries (31,105 ) — — 31,105 — Other (expense) income 11,602 (19,034 ) 722 (29,027 ) (35,737 ) Income (loss) before income taxes (2,869 ) (2,805 ) (758 ) 2,078 (4,354 ) (Provision) benefit from income taxes (1 ) (26,348 ) (1,194 ) 29,027 1,484 Net income (loss) (2,870 ) (29,153 ) (1,952 ) 31,105 (2,870 ) Preferred stock dividends (414 ) — — — (414 ) Income (loss) applicable to common shareholders (3,284 ) (29,153 ) (1,952 ) 31,105 (3,284 ) Net income (loss) (2,870 ) (29,153 ) (1,952 ) 31,105 (2,870 ) Changes in comprehensive income (loss) (3,520 ) 38 — (38 ) (3,520 ) Comprehensive income (loss) $ (6,390 ) $ (29,115 ) $ (1,952 ) $ 31,067 $ (6,390 ) Unaudited Interim Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (140,110 ) $ 92,042 $ (15,242 ) $ 126,919 $ 63,609 Cash flows from investing activities: Additions to properties, plants, equipment and mineral interests — (56,329 ) (41,009 ) — (97,338 ) Other investing activities, net 72,128 42 1,415 (72,128 ) 1,457 Cash flows from financing activities: Dividends paid to shareholders (4,070 ) — — — (4,070 ) Borrowings on debt 245,000 — — — 245,000 Payments on debt (195,000 ) (4,965 ) (519 ) — (200,484 ) Other financing activity, net 34,769 (38,672 ) 55,869 (54,791 ) (2,825 ) Effect of exchange rates on cash — 257 — — 257 Changes in cash, cash equivalents and restricted cash and cash equivalents 12,717 (7,625 ) 514 — 5,606 Beginning cash, cash equivalents and restricted cash and cash equivalents 6,266 18,258 3,890 — 28,414 Ending cash, cash equivalents and restricted cash and cash equivalents $ 18,983 $ 10,633 $ 4,404 $ — $ 34,020 Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revised Revised (in thousands) Cash flows from operating activities $ (29,868 ) $ 88,853 $ (40,161 ) $ 56,386 $ 75,210 Cash flows from investing activities: Additions to properties, plants, equipment and mineral interests 20,710 (101,147 ) (2,848 ) — (83,285 ) Acquisitions of other companies, net of cash acquired (139,326 ) — — (139,326 ) Other investing activities, net (398,101 ) 4,309 — 431,815 38,023 Cash flows from financing activities: Dividends paid to shareholders (3,607 ) — — — (3,607 ) Borrowings on debt 78,024 — — — 78,024 Payments on debt (47,000 ) (41,028 ) — — (88,028 ) Other financing activity, net 443,372 26,051 16,709 (488,201 ) (2,069 ) Effect of exchange rates on cash — (215 ) — (215 ) Changes in cash, cash equivalents and restricted cash and cash equivalents (75,796 ) (23,177 ) (26,300 ) — (125,273 ) Beginning cash, cash equivalents and restricted cash and cash equivalents 103,877 46,619 36,643 — 187,139 Ending cash, cash equivalents and restricted cash and cash equivalents $ 28,081 $ 23,442 $ 10,343 $ — $ 61,866 |