Guarantor Subsidiaries [Text Block] | Note 16: Presented below are Hecla’s condensed consolidating financial statements as required by Rule 3 10 X 1934, Note 6 April 12, 2013, January 3, 2014. The condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the 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 Condensed Consolidating Balance Sheets As of December 31, 2019 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 33,750 $ 15,357 $ 13,345 $ — $ 62,452 Other current assets 9,725 89,722 17,299 (74 ) 116,672 Properties, plants, and equipment - net 1,913 2,410,458 11,327 — 2,423,698 Intercompany receivable (payable) (28,381 ) (579,830 ) 216,632 391,579 — Investments in subsidiaries 1,636,802 — — (1,636,802 ) — Other non-current assets 289,422 24,325 (121,981 ) (157,280 ) 34,486 Total assets $ 1,943,231 $ 1,960,032 $ 136,622 $ (1,402,577 ) $ 2,637,308 Liabilities and Stockholders' Equity Current liabilities $ (309,293 ) $ 155,441 $ 8,334 $ 262,492 $ 116,974 Long-term debt 504,729 17,271 761 — 522,761 Non-current portion of accrued reclamation — 96,389 7,404 — 103,793 Non-current deferred tax liability — 166,549 — (28,267 ) 138,282 Other non-current liabilities 55,372 6,577 1,126 — 63,075 Stockholders' equity 1,692,423 1,517,805 118,997 (1,636,802 ) 1,692,423 Total liabilities and stockholders' equity $ 1,943,231 $ 1,960,032 $ 136,622 $ (1,402,577 ) $ 2,637,308 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, and equipment - 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 Condensed Consolidating Statements of Operations Year Ended December 31, 2019 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Revenues $ (1,282 ) $ 618,241 $ 56,307 $ — $ 673,266 Cost of sales (1,948 ) (407,353 ) (41,048 ) — (450,349 ) Depreciation, depletion, and amortization — (189,746 ) (9,772 ) — (199,518 ) General and administrative (16,830 ) (17,350 ) (1,652 ) — (35,832 ) Exploration and pre-development (22 ) (13,191 ) (5,856 ) — (19,069 ) Research and development — (533 ) (2 ) — (535 ) Loss on derivative contracts (3,971 ) — — — (3,971 ) Acquisition costs (271 ) (221 ) (153 ) — (645 ) Equity in earnings of subsidiaries (76,385 ) — — 76,385 — Other (expense) income 1,186 (73,750 ) 2,161 (16,602 ) (87,005 ) (Loss) income before income taxes (99,523 ) (83,903 ) (15 ) 59,783 (123,658 ) (Provision) benefit from income taxes (34 ) 7,941 (408 ) 16,602 24,101 Net (loss) income (99,557 ) (75,962 ) (423 ) 76,385 (99,557 ) Preferred stock dividends (552 ) — — — (552 ) (Loss) income applicable to common stockholders (100,109 ) (75,962 ) (423 ) 76,385 (100,109 ) Net (loss) income (99,557 ) (75,962 ) (423 ) 76,385 (99,557 ) Changes in comprehensive (loss) income 5,159 — — — 5,159 Comprehensive (loss) income $ (94,398 ) $ (75,962 ) $ (423 ) $ 76,385 $ (94,398 ) F- 49 Table of Contents Year Ended December 31, 2018 Parent Guarantors Non- Guarantors Eliminations Consolidated Revised Revised (in thousands) Revenues $ 8,084 $ 508,830 $ 50,223 $ — $ 567,137 Cost of sales (446 ) (316,132 ) (37,416 ) — (353,994 ) Depreciation, depletion, and amortization — (129,442 ) (4,602 ) — (134,044 ) General and administrative (18,760 ) (15,963 ) (1,819 ) — (36,542 ) Exploration and pre-development (130 ) (30,332 ) (10,120 ) — (40,582 ) Research and development — (4,094 ) (1,347 ) — (5,441 ) Gain on derivative contracts 40,253 — — — 40,253 Acquisition costs (9,445 ) (344 ) (256 ) — (10,045 ) Equity in earnings of subsidiaries (47,226 ) — — 47,226 — Other (expense) income 513 (16,347 ) 3,258 (47,430 ) (60,006 ) (Loss) income before income taxes (27,157 ) (3,824 ) (2,079 ) (204 ) (33,264 ) (Provision) benefit from income taxes 595 (37,999 ) (3,325 ) 47,430 6,701 Net (loss) income (26,562 ) (41,823 ) (5,404 ) 47,226 (26,563 ) Preferred stock dividends (552 ) — — — (552 ) (Loss) income applicable to common stockholders (27,114 ) (41,823 ) (5,404 ) 47,226 (27,115 ) Net (loss) income (26,562 ) (41,823 ) (5,404 ) 47,226 (26,563 ) Changes in comprehensive (loss) income (17,807 ) 38 — (38 ) (17,807 ) Comprehensive (loss) income $ (44,369 ) $ (41,785 ) $ (5,404 ) $ 47,188 $ (44,370 ) Year Ended December 31, 2017 Parent Guarantors Non- Guarantors Eliminations Consolidated Revised Revised (in thousands) Revenues $ (5,983 ) $ 498,000 $ 85,758 $ — $ 577,775 Cost of sales 1,098 (284,344 ) (21,481 ) — (304,727 ) Depreciation, depletion, and amortization — (117,906 ) (2,693 ) — (120,599 ) General and administrative (17,693 ) (15,889 ) (2,029 ) — (35,611 ) Exploration and pre-development (459 ) (19,892 ) (8,607 ) — (28,958 ) Research and development — (3,276 ) — — (3,276 ) Loss on derivative contracts (21,250 ) — — — (21,250 ) Acquisition costs (24 ) — (1 ) — (25 ) Equity in earnings of subsidiaries (187,574 ) — — 187,574 — Other (expense) income 203,365 (80,035 ) 8,298 (202,514 ) (70,886 ) (Loss) income before income taxes (28,520 ) (23,342 ) 59,245 (14,940 ) (7,557 ) (Provision) benefit from income taxes — (205,569 ) (17,908 ) 202,514 (20,963 ) Net (loss) income (28,520 ) (228,911 ) 41,337 187,574 (28,520 ) Preferred stock dividends (552 ) — — — (552 ) (Loss) income applicable to common stockholders (29,072 ) (228,911 ) 41,337 187,574 (29,072 ) Net (loss) income (28,520 ) (228,911 ) 41,337 187,574 (28,520 ) Changes in comprehensive (loss) income 11,229 252 1,303 (1,555 ) 11,229 Comprehensive (loss) income $ (17,291 ) $ (228,659 ) $ 42,640 $ 186,019 $ (17,291 ) Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2019 Parent Guarantors Non- Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (162,380 ) $ 158,854 $ 17,183 $ 107,209 $ 120,866 Cash flows from investing activities: Additions to properties, plants, and equipment — (116,386 ) (5,035 ) — (121,421 ) Other investing activities, net (58,933 ) 139 1,415 58,933 1,554 Cash flows from financing activities: Dividends paid to stockholders (5,466 ) — — — (5,466 ) Borrowings under debt arrangements 279,500 — — — 279,500 Repayments of debt (279,500 ) (7,157 ) (286,657 ) Other financing activity 254,263 (38,201 ) (4,108 ) (166,142 ) 45,812 Effect of exchange rate changes on cash — 875 — — 875 Changes in cash, cash equivalents and restricted cash and cash equivalents 27,484 (1,876 ) 9,455 — 35,063 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 $ 33,750 $ 16,382 $ 13,345 $ — $ 63,477 Year Ended December 31, 2018 Parent Guarantors Non- Guarantors Eliminations Consolidated Revised Revised (in thousands) Cash flows from operating activities $ (222 ) $ 91,999 $ 296,081 $ (293,637 ) $ 94,221 Cash flows from investing activities: — Additions to properties, plants, and equipment — (130,110 ) (6,823 ) — (136,933 ) Purchase of other companies, net of cash acquired (139,326 ) — — (139,326 ) Other investing activities, net (209,525 ) 6,789 — 242,448 39,712 Cash flows from financing activities: Dividends paid to stockholders (4,945 ) — — — (4,945 ) Borrowings under debt arrangements 102,024 — — — 102,024 Repayments of debt (106,036 ) (7,339 ) — — (113,375 ) Other financing activity 260,418 11,816 (322,011 ) 51,189 1,412 Effect of exchange rate changes on cash — (1,515 ) — — (1,515 ) Changes in cash, cash equivalents and restricted cash and cash equivalents (97,612 ) (28,360 ) (32,753 ) — (158,725 ) Beginning cash, cash equivalents and restricted cash and cash equivalents 103,878 46,618 36,643 — 187,139 Ending cash, cash equivalents and restricted cash and cash equivalents $ 6,266 $ 18,258 $ 3,890 $ — $ 28,414 Year Ended December 31, 2017 Parent Guarantors Non-Guarantors Eliminations Consolidated Revised Revised (in thousands) Cash flows from operating activities $ (139,900 ) $ (43,279 ) $ 65,260 $ 233,797 $ 115,878 Cash flows from investing activities: — Additions to properties, plants, and equipment — (85,534 ) (12,504 ) (98,038 ) Other investing activities 154,723 7,901 218 (161,367 ) 1,475 Cash flows from financing activities: — — — Dividends paid to stockholders (4,528 ) — — (4,528 ) Repayments of debt — (6,986 ) — (6,986 ) Other financing activity (19,692 ) 134,178 (35,790 ) (72,430 ) 6,266 Effect of exchange rates on cash — 1,095 — — 1,095 Changes in cash, cash equivalents and restricted cash and cash equivalents (9,397 ) 7,375 17,184 — 15,162 Beginning cash, cash equivalents and restricted cash and cash equivalents 113,275 39,243 19,459 — 171,977 Ending cash, cash equivalents and restricted cash and cash equivalents $ 103,878 $ 46,618 $ 36,643 $ — $ 187,139 |