Goldcorp 6-K Current report (foreign)

Third Quarter Report – 2018

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Third Quarter Report – 2018

Exhibit 99.2

CondensedInterimConsolidatedStatementsOf (Loss) Earnings

(In millions of United States dollars, except for per share amounts – Unaudited)

		Three Months Ended September 30						Nine Months Ended September 30
	Note	2018			2017			2018			2017
Revenues	3	$	621		$	866		$	2,260		$	2,570
Mine operating costs
Production costs	4		(424	)		(459	)		(1,330	)		(1,435	)
Depreciation and depletion	9(d)		(227	)		(250	)		(734	)		(735	)
			(651	)		(709	)		(2,064	)		(2,170	)
(Loss) earnings from mine operations			(30	)		157			196			400
Exploration, evaluation and project costs	9(a)		(24	)		(19	)		(63	)		(40	)
Share of net earnings related to associates and joint venture	10		13			27			60			128
Corporate administration	4(a)		(21	)		(40	)		(101	)		(112	)
Reversal of impairment of mining interests, net			—			—			—			3
Restructuring costs			—			(1	)		—			(4	)
(Loss) earnings from operations, associates and joint venture			(62	)		124			92			375
Gain on derivatives, net			1			—			2			5
Loss on disposition of mining interest, net of transaction costs	3(e)		—			—			—			(6	)
Finance costs			(29	)		(31	)		(85	)		(104	)
Other income (expense), net	5		5			(1	)		2			22
(Loss) earnings before taxes			(85	)		92			11			292
Income tax (expense) recovery	6		(16	)		19			(176	)		124
Net (loss) earnings		$	(101	)	$	111		$	(165	)	$	416
Net (loss) earnings per share
Basic	7(a)	$	(0.12	)	$	0.13		$	(0.19	)	$	0.48
Diluted	7(a)		(0.12	)		0.13			(0.19	)		0.48

The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.

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Third Quarter Report – 2018

CondensedInterim ConsolidatedStatementsOfComprehensive (Loss) Income

(In millions of United States dollars – Unaudited)

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Net (loss) earnings	$	(101	)	$	111		$	(165	)	$	416
Other comprehensive loss, net of tax
Items that may be reclassified subsequently to net (loss) earnings:
Unrealized gains (losses)
Equity securities (note 2)		—			6			—			(14	)
Derivatives designated as cash flow hedges		3			(4	)		12			20
Reclassification of realized gains (losses)
Equity securities		—			(7	)		—			(15	)
Derivatives designated as cash flow hedges recognized in net (loss) earnings		1			—			(3	)		—
Derivatives designated as cash flow hedges recorded as property, plant and equipment		(1	)		—			(3	)		—
		3			(5	)		6			(9	)
Items that will not be reclassified subsequently to net (loss) earnings:
Remeasurement of defined benefit pension plans		—			3			—			—
Decrease in equity securities, net (note 2)		(8	)		—			(70	)		—
		(8	)		3			(70	)		—
Total other comprehensive loss, net of tax		(5	)		(2	)		(64	)		(9	)
Total comprehensive (loss) income	$	(106	)	$	109		$	(229	)	$	407

The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements. 

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Third Quarter Report – 2018

CondensedInterim ConsolidatedStatementsOfCashFlows

(In millions of United States dollars – Unaudited)

		Three Months Ended September 30						Nine Months Ended September 30
	Note	2018			2017			2018			2017
Operating activities
Net (loss) earnings		$	(101	)	$	111		$	(165	)	$	416
Adjustments for:
Reclamation expenditures			(6	)		(9	)		(20	)		(17	)
Items not affecting cash:
Depreciation and depletion	9(d)		227			250			734			735
Share of net earnings related to associates and joint venture	10		(13	)		(27	)		(60	)		(128	)
Reversal of impairment of mining interests, net			—			—			—			(3	)
Share-based compensation			6			5			20			22
Unrealized losses (gains) on derivatives, net			5			—			5			(5	)
Loss on disposition of mining interest, net of transaction costs	3(e)		—			—			—			6
Revision of estimates and accretion of closure cost obligations			5			7			18			16
Deferred income tax (recovery) expense	6		(8	)		(89	)		95			(311	)
Other			15			10			52			12
Increase (decrease) in working capital	8		63			57			(57	)		(43	)
Net cash provided by operating activities			193			315			622			700
Investing activities
Acquisition of mining interests	3(d)		—			—			—			(266	)
Expenditures on mining interests	9(b)		(293	)		(265	)		(866	)		(666	)
Return of capital investment in associate	10		—			—			82			43
Proceeds from dispositions of mining interest, net of transaction costs	3(e)		—			29			—			271
Interest paid	9(b)		(14	)		(12	)		(42	)		(27	)
(Purchases) proceeds from sale/maturity of short-term investments and equity securities, net	8		(17	)		9			(30	)		(31	)
Settlement of deferred payment obligation			(5	)		—			(21	)		—
Other			1			—			(5	)		(66	)
Net cash used in investing activities			(328	)		(239	)		(882	)		(742	)
Financing activities
Proceeds from issuance of term loans, net of borrowing costs	11(c)(ii)		—			—			400			—
Debt repayments	11(c)(ii)		—			—			(500	)		—
Draw down of credit facility, net	11(c)(ii)		160			16			350			70
Finance lease payments			(2	)		(2	)		(6	)		(5	)
Dividends paid to shareholders	7(b)		(16	)		(15	)		(45	)		(46	)
Common shares issued			—			—			—			1
Net cash provided by (used in) financing activities			142			(1	)		199			20
Effect of exchange rate changes on cash and cash equivalents			—			—			—			—
Increase (decrease) in cash and cash equivalents			7			75			(61	)		(22	)
Cash and cash equivalents, beginning of the period			118			80			186			157
Cash and cash equivalents reclassified as held for sale at the beginning of the period			—			—			—			20
Cash and cash equivalents, end of the period	8	$	125		$	155		$	125		$	155

Supplemental cash flow information (note 8)

The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.

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Third Quarter Report – 2018

CondensedInterim Consolidated Balance Sheets

(In millions of United States dollars – Unaudited)

	Note	At September 30 2018			At December31 2017
Assets
Current assets
Cash and cash equivalents	8	$	125		$	186
Short-term investments			41			48
Accounts receivable			75			146
Inventories			384			441
Sales and indirect taxes recoverable			238			250
Income taxes receivable			12			24
Other			39			48
			914			1,143
Mining interests
Owned by subsidiaries and joint operation	9		17,506			17,311
Investments in associates and joint venture	10		2,655			2,736
			20,161			20,047
Equity securities			223			178
Deferred income taxes			102			112
Inventories			—			16
Other			219			189
Total assets		$	21,619		$	21,685
Liabilities
Current liabilities
Accounts payable and accrued liabilities		$	578		$	574
Debt	11(c)(ii)		400			499
Income taxes payable			65			98
Provisions and other			61			84
			1,104			1,255
Deferred income taxes			3,153			3,063
Debt			2,336			1,984
Deferred payment obligation			163			182
Provisions			594			610
Finance lease obligations			233			242
Income taxes payable			50			122
Other			56			43
Total liabilities			7,689			7,501
Shareholders' equity
Common shares, stock options and restricted share units			18,288			18,261
Accumulated other comprehensive (loss) income			(87	)		23
Deficit			(4,271	)		(4,100	)
			13,930			14,184
Total liabilities and shareholders' equity		$	21,619		$	21,685

Commitments and contingencies (notes 11(c)(ii) and 12)

The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

CondensedInterim ConsolidatedStatementsOf Changes In Equity

(In millions of United States dollars, shares in thousands – Unaudited)

		Common Shares
	Shares issued, fully paid with no par value			Amount			Stock options and restricted share units				Accumulated other comprehensive loss				Deficit			Total
At January 1, 2018			867,346		$	17,930		$	331			$	23		$	(4,100	)	$	14,184
Impact of adopting IFRS 9 on January 1, 2018 (note 2)			—			—			—				(46	)		46			—
At January 1, 2018 (restated)			867,346			17,930			331				(23	)		(4,054	)		14,184
Total comprehensive loss
Net loss			—			—			—				—			(165	)		(165	)
Other comprehensive loss			—			—			—				(64	)		—			(64	)
			—			—			—				(64	)		(165	)		(229	)
Stock options exercised and restricted share units vested			1,557			26			(26	)			—			—			—
Share-based compensation			—			—			20				—			—			20
Dividends (note 7(b))			626			7			—				—			(52	)		(45	)
At September 30, 2018			869,529		$	17,963		$	325			$	(87	)	$	(4,271	)	$	13,930

		Common Shares
	Shares issued, fully paid with no par value			Amount			Stock options and restricted share units				Accumulated other comprehensive income				Deficit			Total
At January 1, 2017			853,812		$	17,733		$	331			$	41		$	(4,690	)	$	13,415
Total comprehensive income
Net earnings			—			—			—				—			416			416
Other comprehensive loss			—			—			—				(9	)		—			(9	)
			—			—			—				(9	)		416			407
Acquisition of Exeter Resource Corporation (note 3(d))			11,255			156			2				—			2			160
Stock options exercised and restricted share units vested			1,605			31			(30	)			—			—			1
Share-based compensation			—			—			22				—			—			22
Dividends (note 7(b))			444			6			—				—			(52	)		(46	)
At September 30, 2017			867,116		$	17,926		$	325			$	32		$	(4,324	)	$	13,959

The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements. 

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018AND 2017

1. DESCRIPTIONOF BUSINESS AND NATURE OF OPERATIONS

Goldcorp Inc. is the ultimate parent company of its consolidated group ("Goldcorp" or "the Company"). The Company is incorporated and domiciled in Canada, and its head office is at Suite 3400 – 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.

The Company is a gold producer engaged in the acquisition, exploration, development, operation and reclamation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The Company’s current sources of operating cash flows are primarily from the sale of gold, silver, zinc, copper and lead.

The Company’s principal producing mining properties are comprised of the Éléonore, Musselwhite, Porcupine and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine (40% interest) in the Dominican Republic. At September 30, 2018, the Company's significant projects include the Borden, Century and Coffee projects in Canada, and the NuevaUnión (50% interest) and Norte Abierto (50% interest) projects in Chile.

2. BASIS OF PREPARATION

These unaudited Condensed Interim Consolidated Financial Statements include the accounts of Goldcorp Inc., the ultimate parent company of its consolidated group, and its subsidiaries and are prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). Certain disclosures included in the Annual Financial Statements prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the IASB have been condensed or omitted. Accordingly, these unaudited Condensed Interim Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year ended December 31, 2017.

The Company’s interim results are not necessarily indicative of its results for a full year. All amounts are expressed in US dollars, unless otherwise noted.

The accounting policies applied in the preparation of these unaudited Condensed Interim Consolidated Financial Statements are consistent with those applied and disclosed in the Company’s audited Consolidated Financial Statements for the year ended December 31, 2017, except for the following:

Financial instruments

On January, 1 2018, the Company adopted IFRS 9 – Financial Instruments ("IFRS 9") which replaced IAS 39 – Financial Instruments: Recognition and Measurement. IFRS 9 provides a revised model for recognition and measurement of financial instruments and a single, forward-looking 'expected loss' impairment model. IFRS 9 also includes significant changes to hedge accounting. The standard is effective for annual periods beginning on or after January 1, 2018. The Company adopted the standard using the retrospective approach outlined in the standard, except for hedge accounting, which was applied prospectively. IFRS 9 did not impact the Company's classification and measurement of financial assets and liabilities except for equity securities as described below. The standard also had negligible impact on the carrying amounts of our financial instruments at the transition date.

The following summarizes the significant changes in IFRS 9 compared to the current standard:

• IFRS 9 uses a single approach to determine whether a financial asset is classified and measured at amortized cost or fair value. The classification and measurement of financial assets is based on the Company's business models for managing its financial assets and whether the contractual cash flows represent solely payments for principal and interest. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9. The change did not impact the carrying amounts of any of our financial assets on the transition date. The Company designated its equity securities as financial assets at fair value through other comprehensive income ("FVTOCI"), where they will be recorded initially at fair value. Subsequent changes in fair value will be recognized in other comprehensive income only and will not be transferred into earnings (loss) upon disposition. As a result of this change, the Company reclassified $46 million of impairment losses recognized in prior years on certain equity securities which continue to be owned by the Company as at January 1, 2018 from opening deficit to accumulated other comprehensive income on January 1, 2018. As a result of adopting IFRS 9, the net change in fair value of the equity securities, including realized and unrealized gains and losses, if any, is now presented as an item that will not be reclassified subsequently to net earnings in the Consolidated Statements of Comprehensive Income. Realized gains and losses on securities derecognized prior to January 1, 2018 have not been restated in prior year comparatives.

• The adoption of the new "expected credit loss" impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had a negligible impact on the carrying amounts of our financial assets on the transition date given the Company transacts exclusively with large international financial institutions and other organizations with strong credit ratings and the negligible historical level of customer default.

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

• The new general hedge accounting requirements retain the three types of hedge accounting mechanisms previously available under IAS 39. Under IFRS 9 however, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. As a result, certain of the Company's hedging strategies and hedging instruments that did not qualify for hedge accounting previously, primarily the hedging of forecasted concentrate sales, are now eligible for hedge accounting. In addition, the effectiveness test has been replaced with the principle of an "economic relationship". Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity's risk management activities have also been introduced. As a result, subsequent to the adoption of IFRS 9, the Company hedged a certain percentage of its forecasted zinc and lead concentrate sales and designated these contracts as hedges for accounting purposes. These contracts were entered into during the nine months ended September 30, 2018. The Company did not designate its economic hedges that existed as at January 1, 2018 as hedges for accounting purposes.

The Company has also adopted a narrow scope amendment to IFRS 7 - Financial Instruments - Disclosures. As a result of applying the amendment, the Company will add disclosure relating to its risk management strategies for which hedge accounting is applied in its consolidated financial statements for the year ended December 31, 2018.

Revenue recognition

On January 1, 2018, the Company adopted IFRS 15 – Revenue from Contracts with Customers ("IFRS 15") which supersedes IAS 18 – Revenue ("IAS 18"). IFRS 15 establishes a single five-step model framework for determining the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The standard is effective for annual periods beginning on or after January 1, 2018. The Company adopted the standard on January 1, 2018 using the full retrospective approach without applying any practical expedients.

IFRS 15 requires entities to recognize revenue when ‘control’ of goods or services transfers to the customer whereas the previous standard, IAS 18, required entities to recognize revenue when the ‘risks and rewards’ of the goods or services transfer to the customer. The Company concluded that there is no change in the timing of revenue recognition of its bullion, doré and concentrate sales under IFRS 15 as compared to the previous standard as the point of transfer of risks and rewards of goods and services and transfer of control occur at the same time. As such, no adjustment was required to the Company's financial statements.

Additionally, IFRS 15 requires entities to apportion the transaction price attributable to contracts from customers to distinct performance obligations on a relative standalone selling price basis. In accordance with the terms of certain of the Company's concentrate agreements, the Company must contract for and pay the shipping and insurance costs necessary to bring the goods to the named destination. Therefore, a portion of the revenue earned under these contracts, representing the obligation to fulfill the shipping and insurance services that occur after the transfer of control, is deferred and recognized over time as the obligations are fulfilled. The impact of this change was insignificant to the Company’s financial statements.

IFRS 15 requires that variable consideration should only be recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company concluded that the adjustments relating to the final assay results for the quantity and quality of concentrate sold and the retroactive pricing adjustment for the new annual pricing terms are not significant and does not constrain the recognition of revenue.

Additional disclosures have been presented in notes 3 and 11 as a result of adopting IFRS 9 and 15.

Other narrow scope amendments/interpretations

The Company has adopted narrow scope amendments/interpretations to IFRIC 22 - Foreign Currency Transactions and Advance Consideration, IFRS 2 - Share Based Payments and IAS 1 - Presentation of Financial Statements, which did not have an impact on the Company's unaudited Condensed Interim Consolidated Financial Statements.

Changes in accounting policies not yet effective:

Leases

In January 2016, the IASB issued IFRS 16 – Leases ("IFRS 16") which replaces IAS 17 – Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract on the basis of whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 at the date it becomes effective and has selected the modified retrospective transition

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied. The Company will also elect to account for leases with lease terms that end within 12 months of the date of initial application as short term leases whereby the Company will recognize the lease payments as an expense over the lease term.

Upon the adoption of IFRS 16, the Company anticipates it will record a significant balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

During the third quarter of 2018, the Company continued to make progress on its implementation of IFRS 16, substantially completing the initial identification and assessment of arrangements that may contain leases that qualify for recognition under IFRS 16. These include land easements and service contracts, including certain of the Company’s drilling, repair and maintenance and blasting contracts that contain embedded leases for property, plant and equipment. In addition, the Company commenced work to value the right of use assets and lease liabilities in arrangements determined to be or contain leases and initiated design and configuration of the system the Company is implementing to account for leases under the new standard.

At this time, it is not possible for the Company to make reasonable quantitative estimates of the effects of the new standard. The Company expects the time frame to develop and implement the accounting policies, estimates and processes (including the information technology systems) will continue through the fourth quarter of 2018.

Significant judgements and estimates

The Company’s management makes judgements in its process of applying the Company’s accounting policies in the preparation of its unaudited Condensed Interim Consolidated Financial Statements. In addition, the preparation of the financial data requires that the Company’s management makes assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

In preparing the Company’s unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2018, the Company applied the critical judgements and estimates disclosed in notes 5 and 6 of its Audited Consolidated Financial Statements for the year ended December 31, 2017, and the following critical judgments in applying accounting policies:

(a) Revenue recognition as a result of adopting IFRS 15

Determination of performance obligations

The Company applied judgement to determine if a good or service that is promised to a customer is distinct based on whether the customer can benefit from the good or service on its own or together with other readily available resources and whether the good or service is separately identifiable. Based on these criteria, the Company determined the primary performance obligation relating to its sales contracts is the delivery of the bullion, doré and concentrates. Shipping and insurance services arranged by the Company for its concentrate sales customers that occur after the transfer of control are also considered to be performance obligations.

Transfer of control

Judgement is required to determine when transfer of control occurs relating to the sale of the Company's bullion, doré and concentrate to its customers. Management based its assessment on a number of indicators of control, which include, but are not limited to whether the Company has present right of payment, and whether the physical possession of the goods, significant risks and rewards and legal title have been transferred to the customer.

Variable consideration

Variable consideration should only be recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company identified two variable components in the sales proceeds it receives from its concentrate sales. They include (i) adjustments to the final sales price based on differences between the original and final assay results relating to the quantity and quality of concentrate shipments and (ii) retroactive pricing adjustments based on new annual pricing terms. The Company applied judgement to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low.

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

Based on the Company's proficiency in its assaying process, evidenced by the insignificant amount of historical adjustments from the initial to final assays, the Company concluded the variability in consideration caused by assaying results is negligible. Therefore, the Company does not expect a significant amount of reversal in revenue related to assaying differences.

3. SEGMENT INFORMATION

Operating results of operating segments are reviewed by the Company's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. The Company considers each individual operating mine site as a reportable operating segment for financial reporting purposes except for Alumbrera and Leagold as their financial results do not meet the quantitative threshold required for segment disclosure purposes and are included in Other. The operating results presented below include the results of Leagold up to May 24, 2018, the date on which the Company ceased to have significant influence over Leagold and no longer recognized Leagold as an investment in associate (note 10(b)). Subsequent to May 24, 2018, the Company’s investment in Leagold is accounted for as an equity security.

Assets in Other also include the Company's 100% interest in the Coffee Project, the Company's 50% interests in the NuevaUnión and the Norte Abierto projects, corporate assets and the Company's closed and inactive mines. Liabilities in Other include the Company's debt, its deferred payment obligation related to the acquisition of the Norte Abierto project, asset retirement obligations for closed and inactive mines and certain current and deferred income taxes payable.

Significant information relating to the Company’s reportable operating segments is summarized in the tables below:

	Revenues (a)(b)						Production costs						Depreciation and depletion						Earnings (loss) fromoperations, associates and joint venture (b)(c)						Expenditures on mining interests
Three Months Ended September 30	2018			2017			2018			2017			2018			2017			2018			2017			2018			2017
Éléonore	$	103		$	95		$	63		$	59		$	43		$	33		$	(5	)	$	—		$	21		$	25
Musselwhite		55			72			37			33			10			11			7			25			20			11
Porcupine		71			89			44			54			24			32			—			(4	)		38			24
Red Lake		64			49			44			37			13			18			4			(6	)		16			18
Peñasquito		193			395			175			198			73			77			(58	)		118			132			151
Cerro Negro		135			166			63			75			58			72			8			15			19			20
Pueblo Viejo		129			128			60			49			27			9			43			70			22			15
Other (e)		26			42			8			60			7			9			(29	)		(70	)		48			25
Attributable segment total		776			1,036			494			565			255			261			(30	)		148			316			289
Excluding attributable amounts from associates and joint venture		(155	)		(170	)		(70	)		(106	)		(28	)		(11	)		(32	)		(24	)		(23	)		(24	)
Consolidated total	$	621		$	866		$	424		$	459		$	227		$	250		$	(62	)	$	124		$	293		$	265

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

	Revenues (a)(b)						Production costs						Depreciation and depletion						Earnings (loss) fromoperations, associates and joint venture (b)(c)						Expenditures on mining interests
Nine Months Ended September 30	2018			2017			2018			2017			2018			2017			2018			2017			2018			2017
Éléonore	$	302		$	269		$	201		$	181		$	120		$	97		$	(22	)	$	(13	)	$	52		$	83
Musselwhite		203			210			113			109			34			31			52			63			62			36
Porcupine		245			241			143			155			78			86			18			(12	)		99			74
Red Lake		209			189			145			132			48			62			7			(9	)		57			55
Peñasquito		808			1,086			522			564			238			216			41			302			411			304
Cerro Negro		493			436			204			194			199			190			71			44			61			58
Pueblo Viejo		387			403			164			144			78			29			145			230			44			34
Other (e)		114			296			81			249			23			62			(93	)		(98	)		131			61
Attributable segment total		2,761			3,130			1,573			1,728			818			773			219			507			917			705
Excluding attributable amounts from associates and joint venture		(501	)		(560	)		(243	)		(293	)		(84	)		(38	)		(127	)		(132	)		(51	)		(39	)
Consolidated total	$	2,260		$	2,570		$	1,330		$	1,435		$	734		$	735		$	92		$	375		$	866		$	666

At September 30, 2018	Assets		Liabilities		Net Assets
Éléonore	$	2,702	$	274	$	2,428
Musselwhite		596		135		461
Porcupine		1,001		178		823
Red Lake		1,726		85		1,641
Peñasquito		8,542		2,947		5,595
Cerro Negro		3,042		689		2,353
Pueblo Viejo		1,704		—		1,704
Other		2,306		3,381		(1,075	)
Total	$	21,619	$	7,689	$	13,930

At December 31, 2017	Assets		Liabilities		Net Assets
Éléonore	$	2,735	$	273	$	2,462
Musselwhite		546		153		393
Porcupine		990		196		794
Red Lake		1,731		88		1,643
Peñasquito		8,370		3,089		5,281
Cerro Negro		3,285		531		2,754
Pueblo Viejo		1,746		—		1,746
Other (d)		2,282		3,171		(889	)
Total	$	21,685	$	7,501	$	14,184

(a) The Company’s principal product is gold bullion which is sold primarily in the London spot market. Metal concentrate, containing both gold and by-product metals, is produced at Peñasquito and Alumbrera and is sold to third party smelters and traders. The Company’s consolidated revenues (excluding attributable share of revenues from Pueblo Viejo and Alumbrera) for the three and nine months ended September 30, 2018 were derived from the following:

	Three Months Ended September 30								Nine Months Ended September 30
	2018				2017				2018				2017
Gold	$	477	77	%	$	628	73	%	$	1,685	75	%	$	1,916	75	%
Zinc		62	10	%		117	14	%		277	12	%		296	12	%
Silver		60	10	%		90	10	%		226	10	%		282	11	%
Lead		22	3	%		30	3	%		68	3	%		66	2	%
Copper		—	0	%		1	—	%		4	0	%		10	—	%
	$	621	100	%	$	866	100	%	$	2,260	100	%	$	2,570	100	%

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

Certain of the Company's mines (including the Company's associates) supplemented their gold revenues with the sale of other metals as shown in the table below:

Three Months Ended September 30		Peñasquito(1)		Cerro Negro		Pueblo Viejo		Other
Gold	2018	$	60	$	123	$	120	$	16
	2017	$	172	$	151	$	121	$	14
Zinc	2018		62		—		—		—
	2017		117		—		—		—
Silver	2018		49		12		9		—
	2017		75		15		7		1
Lead	2018		22		—		—		—
	2017		30		—		—		—
Copper	2018		—		—		—		9
	2017		1		—		—		12
Molybdenum	2018		—		—		—		1
	2017		—		—		—		—
Total	2018	$	193	$	135	$	129	$	26
	2017	$	395	$	166	$	128	$	27

Nine Months Ended September 30		Peñasquito(1)		Cerro Negro		Pueblo Viejo		Other
Gold	2018	$	281	$	446	$	358	$	49
	2017	$	509	$	395	$	381	$	115
Zinc	2018		277		—		—		—
	2017		296		—		—		—
Silver	2018		178		47		26		—
	2017		205		41		22		38
Lead	2018		68		—		—		—
	2017		66		—		—		—
Copper	2018		4		—		3		36
	2017		10		—		—		60
Molybdenum	2018		—		—		—		3
	2017		—		—		—		3
Total	2018	$	808	$	493	$	387	$	88
	2017	$	1,086	$	436	$	403	$	216

⁽¹⁾ For the three and nine months ended September 30, 2018 and 2017, the portion of Peñasquito's revenue related to provisional pricing adjustments on concentrate sales was not significant.

(b) Intersegment sales and transfers are eliminated in the above information reported to the Company’s CODM. For the three and nine months ended September 30, 2018, intersegment purchases included $129 million and $384 million, respectively, of gold and silver ounces purchased from Pueblo Viejo (three and nine months ended September 30, 2017 – $128 million and $403 million, respectively) and revenues related to the sale of these ounces to external third parties were $129 million and $384 million, respectively (three and nine months ended September 30, 2017 – $128 million and $403 million, respectively).

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

(c) A reconciliation of attributable segment total (loss) earnings from operations, associates and joint venture to the Company's (loss) earnings before taxes per the Condensed Interim Consolidated Statements of (Loss) Earnings is as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Attributable segment total earnings from operations, associates and joint venture	$	(30	)	$	148		$	219		$	507
Adjustment to account for Pueblo Viejo, NuevaUnión, Leagold and Alumbrera on an equity method basis		(32	)		(24	)		(127	)		(132	)
Gain on derivatives, net		1			—			2			5
Loss on disposition of mining interest, net of transaction costs		—			—			—			(6	)
Finance costs		(29	)		(31	)		(85	)		(104	)
Other income (expense), net		5			(1	)		2			22
(Loss) earnings before taxes	$	(85	)	$	92		$	11		$	292

(d) In June 2017, the Company completed the acquisition of a 50% interest in the Cerro Casale Project, which was executed in multiple steps and resulted in Barrick Gold Corporation (“Barrick”) and Goldcorp owning 50% of the project and subsequently forming a 50/50 joint operation with Barrick. The Company also acquired 100% of the issued and outstanding shares of Exeter and its Caspiche Project. The Company contributed the Caspiche Project into the joint operation with Barrick, which resulted in a 50% interest held by each of Barrick and Goldcorp in the combined Norte Abierto project. See note 7(a) of the Company’s December 31, 2017 audited consolidated financial statements for further detail.

(e) On April 27, 2017, the Company completed the sale of Los Filos to Leagold and received total consideration of $348 million including working capital adjustments. See notes 8(a) and (b) of the Company’s December 31, 2017 audited consolidated financial statements for further detail.

4. PRODUCTION COSTS

	Three Months Ended September 30					Nine Months Ended September 30
	2018		2017			2018		2017
Raw materials and consumables	$	154	$	193		$	513	$	631
Salaries and employee benefits (a)		115		118			366		364
Contractors		80		99			251		308
Royalties		12		19			45		60
Transportation costs		9		12			35		35
Maintenance costs		5		11			25		27
Change in inventories		35		(5	)		58		(41	)
Other (b)		14		12			37		51
	$	424	$	459		$	1,330	$	1,435

(a) Salaries and employee benefits exclude $15 million and $45 million of salaries and employee benefits included in corporate administration in the Condensed Interim Consolidated Statements of (Loss) Earnings for three and nine months ended September 30, 2018, respectively (three and nine months ended September 30, 2017 – $16 million and $44 million, respectively).

(b) Other included a write down of prior period costs of $12 million relating to Peñasquito oxide heap leach inventories recognized during the nine months ended September 30, 2017.

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

5. OTHER INCOME (EXPENSE), NET

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Foreign exchange (loss) gain	$	(1	)	$	(11	)	$	(21	)	$	6
Finance income		9			10			28			29
Gains on sale of investments		—			8			—			16
Other (note 10(b))		(3	)		(8	)		(5	)		(29	)
	$	5		$	(1	)	$	2		$	22

6. INCOME TAXES

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018		2017
Current income tax expense	$	24		$	70		$	81	$	187
Deferred income tax (recovery) expense		(8	)		(89	)		95		(311	)
Income tax expense (recovery)	$	16		$	(19	)	$	176	$	(124	)

The income tax rate for the three months ended September 30, 2018 was negative 19% (three months ended September 30, 2017 – negative 21%). The underlying effective tax rate for ordinary income for the three months ended September 30, 2018 was 32% (three months ended September 30, 2017 – 23%) after adjusting (loss) earnings before taxes and income tax expense (recovery) primarily for:

(a) the impact to (loss) earnings for non-deductible share based compensation expense of $6 million (three months ended September 30, 2017 – $5 million), $13 million of after-tax income related to associates and joint venture (primarily Pueblo Viejo) that are not subject to further income tax in the accounts of the Company (three months ended September 30, 2017 – $27 million), and $1 million of non-cash foreign exchange losses which is not subject to income tax (three months ended September 30, 2017 – $10 million); and

(b) the impact of changes in foreign exchange rates on deferred tax balances, current tax balances and intra-group financing arrangements, and tax rate differences resulted in a $31 million income tax expense (three months ended September 30, 2017 – $53 million income tax recovery), and other items resulted in a $14 million income tax expense for the three months ended September 30, 2018 (three months ended September 30, 2017 – $16 million income tax expense).

The income tax rate for the nine months ended September 30, 2018 was 1,600% (nine months ended September 30, 2017 – negative 42%). The underlying effective tax rate for ordinary income for the nine months ended September 30, 2018 was 38% (nine months ended September 30, 2017 – 35%) after adjusting (loss) earnings before taxes and income tax expense (recovery) primarily for:

(a) the impact to (loss) earnings for non-deductible share based compensation expense of $20 million (nine months ended September 30, 2017 – $22 million), $60 million of after-tax income related to associates and joint venture (primarily Pueblo Viejo and Alumbrera) that are not subject to further income tax in the accounts of the Company (nine months ended September 30, 2017 – $128 million), $13 million of gain on the dilution of the Leagold equity investment which is not subject to income tax (nine months ended September 30, 2017 – $nil), $21 million of non-cash foreign exchange losses which is not subject to income tax (nine months ended September 30, 2017 – gain of $6 million), and $3 million loss on disposition of mining interest net of an impairment reversal for the nine months ended September 30, 2017; and

(b) the impact of changes in foreign exchange rates on deferred tax balances, current tax balances and intra-group financing arrangements, and tax rate differences resulted in a $166 million income tax expense (nine months ended September 30, 2017 – $179 million income tax recovery), and other items resulted in a $18 million income tax expense for the nine months ended September 30, 2018 (nine months ended September 30, 2017 – $9 million of income tax recovery).

7. PER SHARE INFORMATION

(a) Net (loss) earnings per share

Net loss per share for the three and nine months ended September 30, 2018 was calculated based on basic and diluted net loss of $(101) million and $(165) million, respectively. Net earnings for the three and nine months ended September 30, 2017 was based on

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

basic and diluted net earnings of $111 million and $416 million, respectively. The weighted average number of shares outstanding used in the calculation was based on the following:

	Three Months Ended September 30				Nine Months Ended September 30
(in millions)	2018		2017		2018		2017
Basic weighted average number of shares outstanding		869		866		869		859
Effect of dilutive stock options and restricted share units		—		3		—		3
Diluted weighted average number of shares outstanding		869		869		869		862

The outstanding equity instruments that could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted net loss per share for the three and nine months ended September 30, 2018 because they were anti-dilutive, comprised 8 million stock options and RSUs (three and nine months ended September 30, 2017– 7 million stock options).

(b) Dividends declared

During the three and nine months ended September 30, 2018, the Company declared dividends of $0.02 per share and $0.06 per share for total dividends of $18 million and $52 million, respectively (three and nine months ended September 30, 2017 – $0.02 per share and $0.06 per share for total dividends of $17 million and $52 million, respectively).

During the three and nine months ended September 30, 2018, the Company issued $2 million and $7 million, respectively (three and nine months ended September 30, 2017 – $2 million and $6 million, respectively) in common shares under the Company's Dividend Reinvestment Plan.

8. SUPPLEMENTAL CASH FLOW INFORMATION

(a) Cash and cash equivalents are comprised of the following:

	At September 30 2018		At December31 2017
Cash	$	79	$	184
Money market investments		46		2
	$	125	$	186

(b) The following table summarizes the increase (decrease) in working capital during the three months and nine months ended September 30:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Accounts receivable decrease (increase)	$	30		$	3		$	78		$	(34	)
Inventories decrease (increase)		20			(5	)		35			(34	)
Sales and indirect taxes recoverable increase		(40	)		(35	)		(8	)		(60	)
Accounts payable and accrued liabilities increase (decrease)		58			81			(40	)		73
Income taxes payable increase (decrease), net of income taxes receivable		4			25			(105	)		22
Other		(9	)		(12	)		(17	)		(10	)
Increase (decrease) in working capital	$	63		$	57		$	(57	)	$	(43	)

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

(c) The following table summarizes cash received and paid included in the Company's operating and investing activities during the three months and nine months ended September 30:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Operating activities include the following cash received (paid):
Interest received	$	7		$	1		$	23		$	26
Interest paid		(14	)		(21	)		(50	)		(67	)
Income taxes refunded		—			—			1			9
Income taxes paid		(21	)		(52	)		(183	)		(161	)
Investing activities include the following cash (paid) received:
Net (purchases) proceeds from sale/maturity of short-term investments and equity securities
Purchases of short-term investments	$	(8	)	$	—		$	(61	)	$	(43	)
Proceeds from maturity of short-term investments		8			3			68			46
Purchases of equity securities		(17	)		(5	)		(39	)		(58	)
Proceeds from sale of equity securities		—			11			2			24
	$	(17	)	$	9		$	(30	)	$	(31	)

9. MINING INTERESTS – OWNED BY SUBSIDIARIES AND JOINT OPERATION

	Mining properties
	Depletable			Non-depletable
	Reserves and resources			Reserves and resources			Exploration potential			Plant and equipment(e)			Total
Cost
At January 1, 2018	$	13,296		$	5,832		$	5,258		$	6,738		$	31,124
Expenditures on mining interests (a)(b)(c)		402			211			—			300			913
Transfers and other movements		12			1			—			(233	)		(220	)
At September 30, 2018		13,710			6,044			5,258			6,805			31,817
Accumulated depreciation and depletion
At January 1, 2018		(5,350	)		(2,769	)		(2,343	)		(3,351	)		(13,813	)
Depreciation and depletion (d)		(468	)		—			—			(236	)		(704	)
Transfers and other movements		10			—			—			196			206
At September 30, 2018		(5,808	)		(2,769	)		(2,343	)		(3,391	)		(14,311	)
Carrying amount – At September 30, 2018	$	7,902		$	3,275		$	2,915		$	3,414		$	17,506

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

	Mining properties
	Depletable			Non-depletable
	Reserves and resources			Reserves and resources			Exploration potential			Plant and equipment(e)			Total
Cost
At January 1, 2017	$	12,875		$	4,670		$	7,225		$	6,550		$	31,320
Acquisition of mining interest		—			529			—			2			531
Expenditures on mining interests		458			170			—			469			1,097
Removal of fully depreciated/depleted assets and disposals		(1,469	)		(1	)		(2	)		(295	)		(1,767	)
Transfers and other movements		1,432			464			(1,965	)		12			(57	)
At December 31, 2017		13,296			5,832			5,258			6,738			31,124
Accumulated depreciation and depletion and impairment
At January 1, 2017		(5,848	)		(2,510	)		(2,263	)		(3,134	)		(13,755	)
Depreciation and depletion		(654	)		—			—			(354	)		(1,008	)
Impairment reversal, net		(294	)		(259	)		(80	)		(136	)		(769	)
Removal of fully depreciated/depleted assets and disposals		1,463			—			—			275			1,738
Transfers and other movements		(17	)		—			—			(2	)		(19	)
At December 31, 2017		(5,350	)		(2,769	)		(2,343	)		(3,351	)		(13,813	)
Carrying amount – At December 31, 2017	$	7,946		$	3,063		$	2,915		$	3,387		$	17,311

A summary by property of the carrying amount of mining interests owned by subsidiaries and joint operation is as follows:

	Mining properties
	Depletable		Non-depletable
	Reserves and resources		Reserves and resources		Exploration potential		Plant and equipment(e)		At September 30 2018		At December31 2017
Éléonore	$	1,557	$	85	$	—	$	878	$	2,520	$	2,596
Musselwhite		324		17		28		161		530		507
Porcupine		360		510		—		138		1,008		977
Red Lake		524		491		198		216		1,429		1,396
Coffee		—		491		—		1		492		434
Peñasquito		3,879		1,045		1,859		1,285		8,068		7,852
Cerro Negro		1,258		56		830		637		2,781		2,911
Norte Abierto		—		580		—		2		582		548
Corporate and other		—		—		—		96		96		90
	$	7,902	$	3,275	$	2,915	$	3,414	$	17,506	$	17,311

(a) Exploration, evaluation and project costs incurred by the Company during the three months and nine months ended September 30 were as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Total exploration, evaluation and project expenditures	$	41		$	32		$	110		$	81
Less: amounts capitalized to mining interests		(17	)		(13	)		(47	)		(41	)
Total exploration, evaluation and project costs recognized in the Condensed Interim Consolidated Statements of (Loss) Earnings	$	24		$	19		$	63		$	40

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Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

(b) Expenditures on mining interests include finance lease additions, capitalized borrowing costs and deposits on mining interests, and are net of investment tax credits and exclude capitalized reclamation and closure costs. The following is a reconciliation of total capitalized expenditures on mining interests to expenditures on mining interests in the Condensed Interim Consolidated Statements of Cash Flows:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Capitalized expenditures on mining interests including associates and joint venture	$	332		$	302		$	940		$	755
Interest paid		(14	)		(12	)		(42	)		(27	)
(Increase) decrease in accrued expenditures		(25	)		(25	)		(32	)		(62	)
Expenditures on mining interests per Condensed Interim Consolidated Statements of Cash Flows	$	293		$	265		$	866		$	666

(c) Expenditures on mining interests include capitalized borrowing costs incurred during the three months and nine months ended September 30 as detailed below:

	Three Months Ended September 30				Nine Months Ended September 30
	2018		2017		2018		2017
Red Lake - Cochenour	$	6	$	6	$	18	$	17
Norte Abierto Project		5		6		14		6
Peñasquito - Pyrite Leach Project		3		1		9		3
Porcupine - Borden Project		2		3		5		3
Other		1		2		4		2
	$	17	$	18	$	50	$	31

(d) A reconciliation of total depreciation and depletion for the three months and nine months ended September 30 to depreciation and depletion recognized in the Condensed Interim Consolidated Statements of (Loss) Earnings is as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Total depreciation and depletion	$	209		$	256		$	704		$	738
Less: amounts capitalized to mining interests		(6	)		(1	)		(8	)		(4	)
Changes in amounts allocated to ending inventories		24			(5	)		38			1
Total depreciation and depletion recognized in the Condensed Interim Consolidated Statements of (Loss) Earnings	$	227		$	250		$	734		$	735

(e) At September 30, 2018, assets not yet ready for intended use, and therefore not yet being depreciated, included in the carrying amount of plant and equipment amounted to $660 million (December 31, 2017 – $512 million).

GOLDCORP    |  18

Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

10. MINING INTERESTS – INVESTMENTS IN ASSOCIATES AND JOINT VENTURE

At September 30, 2018, the Company had a 40% interest in Pueblo Viejo, a 50% interest in NuevaUnión and a 37.5% interest in Alumbrera (included in "Other"). These investments are accounted for using the equity method and are included in mining interests in the Company’s Condensed Interim Consolidated Balance Sheet. The Company adjusts each associate and joint venture’s financial results, where appropriate, to give effect to uniform accounting policies.

The following table summarizes the change in the carrying amount of the Company's investments in associates and joint venture:

	Pueblo Viejo(a)			NuevaUnión			Other (b)			Total
At January 1, 2018	$	1,746		$	919		$	71		$	2,736
Company’s share of net earnings of associates and joint venture		33			(1	)		(2	)		30
Capital investment		—			27			6			33
Return of capital investment		(82	)		—			—			(82	)
Reclassification of investment in associate (note 10(b))		—			—			(69	)		(69	)
Other		7			—			—			7
At September 30, 2018	$	1,704		$	945		$	6		$	2,655
At January 1, 2017	$	1,123		$	884		$	—		$	2,007
Company’s share of net earnings of associates and joint venture		142			2			—			144
Acquisition of interest in Leagold		—			—			71			71
Capital investment		—			33			—			33
Return of capital investment		(65	)		—			—			(65	)
Reversal of impairment		557			—			—			557
Other		(11	)		—			—			(11	)
At December 31, 2017	$	1,746		$	919		$	71		$	2,736

(a) At September 30, 2018, the carrying amount of the Company's share of shareholder loans to Pueblo Viejo was $513 million (December 31, 2017 – $506 million), which is included in the Company's investments in associates and joint venture and is being accreted to the face value over the term of the loans. Included in other current assets of the Company was a total of $2 million (December 31, 2017 – $4 million) in interest receivable relating to the shareholder loan.

(b) Upon the dilution of the Company’s interest in Leagold on May 24, 2018, the Company measured the remaining interest in Leagold at fair value and recognized a gain of $13 million in the Condensed Interim Consolidated Statement of (Loss) Earnings in Other Income (Expense). Subsequent to May 24, 2018, the Company began accounting for its investment in Leagold as an equity security at FVTOCI.

(c) During the three and nine months ended September 30, 2018, the Company recognized a reduction of $nil and $30 million, respectively (three and nine months ended September 30, 2017 – $nil and $33 million, respectively) in the Company’s provision to fund its share of Alumbrera’s reclamation and closure costs obligations which has been classified as Share of Net Earnings Related to Associates and Joint Venture in the Condensed Interim Consolidated Statements of (Loss) Earnings. The reduction in the provision reflects the expectation that Alumbrera will be able to fund its reclamation costs using operating cash flows. At September 30, 2018, the balance of the provision was $nil (December 31, 2017 – $30 million).

GOLDCORP    |  19

Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

11. FINANCIAL INSTRUMENTS AND RELATED RISKS

(a) Financial assets and liabilities by categories

At September 30, 2018	Amortized cost			FVTOCI (1)		Fair value through profit or loss ("FVTPL")		Effective hedging instruments		Total
Financial assets
Cash and cash equivalents	$	125		$	—	$	—	$	—	$	125
Short-term investments		41			—		—		—		41
Accounts receivable arising from sales of metal		—			—		33		—		33
Equity securities (2)		—			223		—		—		223
Derivative assets designated as hedging instruments		—			—		—		10		10
Derivative assets not designated as hedging instruments		—			—		2		—		2
Other current and non-current financial assets		34			—		—		—		34
Total financial assets	$	200		$	223	$	35	$	10	$	468
Financial liabilities
Debt	$	(2,736	)	$	—	$	—	$	—	$	(2,736	)
Deferred payment obligation		(168	)		—		—		—		(168	)
Accounts payable and accrued liabilities		(552	)		—		—		—		(552	)
Other current and non-current financial liabilities		(249	)		—		—		—		(249	)
Total financial liabilities	$	(3,705	)	$	—	$	—	$	—	$	(3,705	)

(1) Investments in equity securities were designated as FVTOCI upon initial recognition as the management of the equity securities portfolio is not considered to be part of the Company's core operations. As such, the financial results of the portfolio should not be reflected in the Company's net earnings. Securities in the portfolio are disposed of when they no longer meet the Company's long term investment strategy. During the three and nine months ended September 30, 2018, the Company recognized a cumulative gain (loss) of $nil (three and nine months ended September 30, 2017 – gain of $8 million and $16 million, respectively) on the sale of its equity securities.

(2) Includes the Company’s investment in Leagold. Subsequent to May 24, 2018, the Company ceased to have significant influence over Leagold and no longer recognizes it as an investment in associate.

At December 31, 2017	Amortized cost			FVTOCI		FVTPL			Effective hedging instruments		Total
Financial assets
Cash and cash equivalents	$	186		$	—	$	—		$	—	$	186
Short-term investments		48			—		—			—		48
Accounts receivable arising from sales of metal		3			—		110			—		113
Equity securities		—			178		—			—		178
Derivative assets designated as hedging instruments		—			—		—			2		2
Derivative assets not designated as hedging instruments		—			—		1			—		1
Other current and non-current financial assets		30			—		—			—		30
Total financial assets	$	267		$	178	$	111		$	2	$	558
Financial liabilities
Debt	$	(2,483	)	$	—	$	—		$	—	$	(2,483	)
Deferred payment obligation		(182	)		—		—			—		(182	)
Accounts payable and accrued liabilities		(547	)		—		—			—		(547	)
Derivative liabilities designated not designated as hedging instruments		—			—		(2	)		—		(2	)
Other current and non-current financial liabilities		(257	)		—		—			—		(257	)
Total financial liabilities	$	(3,469	)	$	—	$	(2	)	$	—	$	(3,471	)

GOLDCORP    |  20

Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

(b) Fair value information

(i) Fair value measurements of financial assets and liabilities measured at fair value

The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Condensed Interim Consolidated Balance Sheets at fair value on a recurring basis were categorized as follows:

	At September 30, 2018				At December 31, 2017
	Level 1		Level 2		Level 1		Level 2
Cash and cash equivalents	$	125	$	—	$	186	$	—
Accounts receivable arising from sales of metal concentrates		—		33		—		110
Equity securities		223		—		178		—
Derivative assets designated as cash flow hedges		—		10		—		2
Derivative assets not designated as cash flow hedges		—		2		—		1
Derivative liabilities not designated as cash flow hedges		—		—		—		(2	)

At September 30, 2018, there were no financial assets and liabilities measured and recognized at fair value on a non-recurring basis.

There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2018. At September 30, 2018, there were no financial assets or liabilities measured and recognized in the Condensed Interim Consolidated Balance Sheets at fair value that would be categorized as Level 3 in the fair value hierarchy.

(ii) Valuation methodologies used in the measurement of fair value for Level 2 financial assets and liabilities

Accounts receivable arising from sales of metal concentrates:

The Company’s metal concentrate sales contracts are subject to provisional pricing with the final selling price adjusted at the end of the quotational period. At the end of each reporting period, the Company’s accounts receivable relating to these contracts are marked-to-market based on quoted forward prices for which there exists an active commodity market.

Derivative assets and liabilities:

The Company's derivative assets and liabilities were comprised of investments in warrants and foreign currency and commodity forward contracts. The fair values of the warrants are calculated using an option pricing model which utilizes a combination of quoted prices and market-derived inputs, including volatility estimates. Foreign currency and metal forward contracts are valued using a combination of quoted prices and market-derived inputs including credit spreads.

(iii) Fair values of financial assets and liabilities not already measured at fair value

At September 30, 2018, the fair values of the Company's notes payable and deferred payment obligation, as compared to the carrying amounts, were as follows:

	Level	Input	Carrying amount (1)		Fair value
$1.0 billion notes	1	Closing price	$	1,005	$	1,032
$1.5 billion notes	1	Closing price		995		998
Deferred payment obligation	2	4.75% (2)		168		168

(1) Includes accrued interest payable.

(2) Represents the Company's current rate of borrowing for instruments of a similar term.

At September 30, 2018, the carrying amounts of the Company's short-term investments, other current financial assets, accounts payable and accrued liabilities, term loans, and other current financial liabilities were considered to be reasonable approximations of their fair values due to the short-term nature of these instruments.

(c) Financial instruments and related risks

The Company manages its exposure to financial risks, including currency risk, liquidity risk, credit risk, interest rate risk and price risk, in accordance with its Financial Risk Management Policy. The Company's exposures to financial risks and how the Company manages each of those risks are described in note 26(e) to the Company's Consolidated Financial Statements for the year ended December 31, 2017. There were no significant changes to the Company's exposures to those risks or to the Company's management of its exposures during the three and nine months ended September 30, 2018 except as noted below.

GOLDCORP    |  21

Third Quarter Report – 2018

(In millions of United States dollars, except where noted)

(i) Market risk

Currency risk

Currency risk is the risk that the fair values or future cash flows of the Company’s financial instrument will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations may affect the costs that the Company incurs in its operations. Gold, silver, copper, lead and zinc are sold in US dollars and the Company’s costs are incurred principally in US dollars, Canadian dollars, Mexican pesos and Argentinean pesos. The appreciation or depreciation of non-US dollar currencies against the US dollar can increase or decrease the cost of metal production and capital expenditures in US dollar terms. The Company also holds cash and cash equivalents that are denominated in non-US dollar currencies which are subject to currency risk. Accounts receivable and other current and non-current assets denominated in non-US dollar currencies relate to goods and services taxes, income taxes, value-added taxes and insurance receivables. The Company is further exposed to currency risk through non-monetary assets and liabilities and the tax bases of assets, liabilities and losses of entities whose taxable profit or tax loss are denominated in non-US currencies. Changes in exchange rates give rise to temporary differences resulting in a deferred tax liability or asset with the resulting deferred tax charged or credited to income tax expense.

During the three and nine months ended September 30, 2018, the Company recognized a net foreign exchange loss of $1 million and $21 million, respectively (three and nine months ended September 30, 2017 – loss of $11 million and gain of $6 million, respectively), and a net foreign exchange loss of $23 million and $215 million, respectively in income tax expense on income taxes receivable (payable) and deferred income taxes (three and nine months ended September 30, 2017 – gain of $24 million and $87 million, respectively).

Based on the Company’s net foreign currency exposures at September 30, 2018, depreciation or appreciation of applicable foreign currencies against the US dollar would have resulted in the following increase or decrease in the Company's net loss:

At September 30, 2018	Possible exposure (1)	Impact on net loss excluding foreign currency exchange exposure related to taxes		Impact on net loss from foreign currency exchange exposure related to taxes
Canadian dollar	10%	$	12	$	105
Mexican peso	10%		9		57
Argentine peso (2)	25%		1		40

(1) Possible exposure is based on management’s best estimate of the reasonably possible fluctuation of the foreign exchange rates in the next twelve months.

(2) The Argentine pesos devalued significantly since the beginning of 2018. As a result, the Company has increased the possible exposure used to estimate the potential impact of the depreciation or appreciation of the Argentine peso to the Company’s net loss in the table above to 25% as compared to the 15% used in the Company’s audited Consolidated Financial Statements for the year ended December 31, 2017.

(ii) Liquidity risk

During the three and nine months ended September 30, 2018, the Company generated cash flows from operations, one of the Company's main sources of liquidity, of $193 million and $622 million, respectively (three and nine months ended September 30, 2017 – $315 million and $700 million, respectively). At September 30, 2018, Goldcorp held cash and cash equivalents of $125 million (December 31, 2017 – $186 million) and short-term investments of $41 million (December 31, 2017 – $48 million). At September 30, 2018, the Company's working capital, defined as current assets less current liabilities, was negative $190 million (December 31, 2017 – negative $112 million), which was primarily due to the Company’s one-year non-revolving term loan agreements, totaling $400 million that are due on March 14, 2019. The Company intends to repay the term loans using cash flow from operations, draws on its credit facility, and/or other short-term bank facilities in March 2019.

On March 14, 2018, the Company entered into three one-year non-revolving term loan agreements, totaling $400 million. The term loans bear interest at LIBOR plus 0.65%, reset monthly, and are repayable before March 14, 2019 without penalty. The proceeds from the term loans were used to repay the $500 million 2.125% note that was due on March 15, 2018.

On June 29, 2018, the Company completed the extension of its $3.0 billion credit facility term by one year to June 30, 2023. The unsecured, floating rate facility bears interest at LIBOR plus 140 basis points when drawn and 20 basis points on the undrawn amount, based on Goldcorp’s current bond ratings, and is intended to be used for liquidity and general corporate purposes. At September 30, 2018, the balance outstanding on the revolving credit facility was $350 million (December 31, 2017 – $nil) with $2.65 billion available for the Company's use (December 31, 2017 – $3.0 billion).

Certain of the Company's borrowings are subject to various financial and general covenants with which the Company was in compliance at September 30, 2018.

At September 30, 2018, the Company had letters of credit outstanding in the amount of $421 million (December 31, 2017 – $420 million) of which $325 million (December 31, 2017 – $323 million) represented guarantees for reclamation obligations. The

GOLDCORP    |  22

��

Third Quarter Report – 2018

Company's capital commitments for the next twelve months amounted to $343 million at September 30, 2018, including the Company's funding obligation for the Norte Abierto project for the next twelve months.

12. CONTINGENCIES

Due to the size, complexity and nature of the Company’s operations, various legal, tax, environmental and regulatory matters are outstanding from time to time. By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events. While the outcomes of these matters are uncertain, based upon the information currently available and except as noted in note 30(a) of the Company’s audited consolidated financial statements and described below, the Company does not believe that these matters in aggregate will have a material adverse effect on its consolidated financial position, cash flows or results of operations. In the event that management’s estimate of the future resolution of these matters changes, the Company will recognize the effects of these changes in its consolidated financial statements in the appropriate period relative to when such changes occur. There were no significant changes to the Company’s contingencies disclosed in note 30 of its audited consolidated financial statements for the year ended December 31, 2017 except as noted below:

(a) Tax disputes with Mexican Tax Authority

During 2016, the Company received reassessment notices from the Mexican Tax Authority for two of its Mexican subsidiaries primarily related to a reduction in the amount of deductible interest paid on related party debt by those subsidiaries during their 2008 and 2009 fiscal years, and the disallowance of certain intra company fees and expenses. The 2008 fiscal year notices reassess an additional $11 million of income tax, interest, and penalties. The 2009 fiscal year notices reassess an additional $95 million of income tax, interest and penalties relating to the reduction in the amount of intra group interest payments. The Company disputes the positions taken by the Mexican Tax Authority for the 2008 and 2009 fiscal years, believes it has filed its tax returns and paid applicable taxes in compliance with Mexican income tax laws and has substantial defenses to these assessments. The Company is involved in discussions with the Mexican Tax Authority in an attempt to resolve the dispute.

The Company is also reviewing observation letters received from the Mexican Tax Authority for fiscal years 2010, 2013-2015 relating to additional matters associated with the Company’s operations in Mexico. The Company believes that its tax positions are valid and is in the process of submitting responses to the Mexican Tax Authority on the observation letters in order to clarify and defend its tax positions. The Company is also involved in discussions with the Mexican Tax Authority regarding certain items raised in the observation letters in order to resolve these matters prior to any reassessment.  

The outcome of the 2008 -2009 fiscal year reassessments and any potential reassessments for the Company’s Mexican subsidiaries’ 2010 through 2017 fiscal years is not readily determinable but could have a material impact on the Company. The Company intends to vigorously defend its tax filing positions. No amounts have been recorded for any potential liability arising from these matters.

GOLDCORP    |  23

CORPORATE OFFICE	STOCK EXCHANGE LISTING
Park Place	Toronto Stock Exchange: G
Suite 3400 – 666 Burrard Street	New York Stock Exchange: GG
Vancouver, BC V6C 2X8 Canada
Tel:      (604) 696-3000	TRANSFER AGENT
Fax:     (604) 696-3001
www.goldcorp.com	AST Trust Company (Canada)
	1066 West Hastings Street, Suite 1600
TORONTO OFFICE	Vancouver, BC V6E 3X1 Canada
	Toll free in Canada and the US: (800) 387-0825
Suite 3201 – 130 Adelaide Street West	Outside of Canada and the US: (416) 682-3860
Toronto, ON M5H 3P5 Canada	inquiries@canstockta.com
Tel:      (416) 865-0326	www.canstockta.com
Fax:     (416) 359-9787
	AUDITORS
MEXICO OFFICE
	Deloitte LLP
Ave. Paseo de las Palmas 405 – Mezzanine	Vancouver, BC
Col. Lomas de Chapultepec 11000, Ciudad de Mexico, Mexico
Edif. Torre Optima 1	INVESTOR RELATIONS
Tel:      52 (55) 5201-9600
	Shawn Campbell
GUATEMALA OFFICE	Toll free:    (800) 567-6223
	Email:        info@goldcorp.com
5ta avenida 5-55 zona 14 Europlaza
Torre 1 Nivel 6 oficina 601	REGULATORY FILINGS
Guatemala City
Guatemala, 01014	The Company’s filings with the Ontario Securities Commission
Tel:      (502) 2329-2600	can be accessed on SEDAR at www.sedar.com.
ARGENTINA OFFICE	The Company’s filings with the US Securities and
	Exchange Commission can be accessed on EDGAR
Avda. Leandro N. Alem 855, Piso 27	at www.sec.gov.
C1001AAD Capital Federal
Buenos Aires, Argentina
Tel:      54 114 323 7000
CHILE OFFICE
Avenida Apoquindo 4501, Oficina
703 Las Condes, Santiago, Chile
Tel: 56 2 2898 9300