Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-making group is comprised of the Chief Executive Officer, Chief Financial Officer, and the Chief Operating Officer.

The operating segments are managed separately because each segment represents a distinct use of company resources and a separate contribution to the Company’s cash flows. The Company’s reportable operating segments include the Palmarejo, San Bartolomé, Martha, Rochester, Kensington and Endeavor mining properties. All operating segments are engaged in the discovery and/or mining of gold and silver and generate the majority of their revenues from the sale of these precious metal concentrates and/or refined precious metals. The Martha mine sells precious metal concentrates, typically under long-term contracts, to trading partners located in the United States and Switzerland. The Kensington mine sells precious metals and concentrates, typically under long-term contracts to smelters in China and Germany. Refined gold and silver produced by the Rochester, Palmarejo, and San Bartolomé mines are principally sold on a spot basis to precious metals trading banks such as International Commodities, Mitsui, Mitsubishi, Standard Bank, TD Securities, Valcambi and Auramet. Concentrates produced at the Endeavor mine are sold to Nyrstar (formerly Zinifex), an Australian smelter. The Company’s exploration programs are reported in its other segment. The other segment also includes the corporate headquarters, elimination of intersegment transactions and other items necessary to reconcile to consolidated amounts. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies above. The Company evaluates performance and allocates resources based on profit or loss before interest, income taxes, depreciation and amortization, unusual and infrequent items and extraordinary items.

Revenues from silver sales were $139.3 million and $112.5 million in the three months ended March 31, 2012 and 2011, respectively. Revenues from gold sales were $65.3 million and $87.1 million in the three months ended March 31, 2012 and 2011, respectively.

Financial information relating to the Company’s segments is as follows (in thousands):

Three months ended March 31, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
Sales of metals	$	123,722		$	41,376		$	10,377		$	18,758		$	3,618		$	6,713		$	—		$	204,564
Productions costs applicable to sales	(45,860		)	(13,608		)	(17,090		)	(9,565		)	(3,694		)	(2,737		)	—			(92,554		)
Depreciation and depletion	(37,769		)	(4,219		)	(6,605		)	(1,642		)	(596		)	(1,644		)	(117		)	(52,592		)
Gross profit (loss)	40,093			23,549			(13,318		)	7,551			(672		)	2,332			(117		)	59,418
Exploration expense	1,320			70			222			709			3,412			—			834			6,567
Other operating expenses	—			5			19			1,341			197			—			7,102			8,664
OPERATING INCOME (LOSS)	38,773			23,474			(13,559		)	5,501			(4,281		)	2,332			(8,053		)	44,187
Interest and other income	4,581			95			—			49			(75		)	—			357			5,007
Interest expense	(4,810		)	—			(892		)	(8		)	—			—			(960		)	(6,670		)
Fair value adjustments, net	(25,611		)	—			(551		)	—			—			—			3,049			(23,113		)
Income tax benefit (expense)	(3,544		)	(7,689		)	—			—			(201		)	—			(4,002		)	(15,436		)
Net income (loss)	$	9,389		$	15,880		$	(15,002	)	$	5,542		$	(4,557	)	$	2,332		$	(9,609	)	$	3,975
Segment assets (A)	$	2,008,004		$	285,276		$	504,082		$	90,072		$	24,183		$	36,372		$	17,104		$	2,965,093
Capital expenditures (B)	$	7,170		$	10,207		$	10,878		$	2,639		$	659		$	—		$	94		$	31,647

Three months ended March 31, 2011	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Martha Mine			Endeavor Mine			Other			Total
Sales of metals	$	88,165		$	46,321		$	48,110		$	14,262		$	(314	)	$	3,080		$	—		$	199,624
Productions costs applicable to sales	(37,369		)	(14,118		)	(32,920		)	(7,357		)	390			(1,100		)	—			(92,474		)
Depreciation and depletion	(33,675		)	(5,143		)	(9,365		)	(514		)	(592		)	(619		)	(133		)	(50,041		)
Gross profit (loss)	17,121			27,060			5,825			6,391			(516		)	1,361			(133		)	57,109
Exploration expense	636			4			46			21			1,296			—			759			2,762
Other operating expenses	—			38			20			3,536			—			—			12,211			15,805
OPERATING INCOME (LOSS)	16,485			27,018			5,759			2,834			(1,812		)	1,361			(13,103		)	38,542
Interest and other income	1,289			607			1			46			(311		)	—			302			1,934
Interest expense	(5,703		)	(34		)	(1,247		)	—			(345		)	—			(1,975		)	(9,304		)
Loss on debt extinguishment	—			—			—			—			—			—			(467		)	(467		)
Fair value adjustments, net	(6,343		)	—			(698		)	—			—			—			1,739			(5,302		)
Income tax benefit (expense)	(3,776		)	(10,037		)	(20		)	—			41			—			853			(12,939		)
Net income (loss)	$	1,952		$	17,554		$	3,795		$	2,880		$	(2,427	)	$	1,361		$	(12,651	)	$	12,464
Segment assets (A)	$	2,106,197		$	269,158		$	503,321		$	27,049		$	17,571		$	39,093		$	23,506		$	2,985,895
Capital expenditures (B)	$	5,081		$	3,536		$	5,369		$	1,668		$	251		$	—		$	13		$	15,918

(A) Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties

(B) Balance represents cash flow amounts 

	March 31, 2012		December 31, 2011
Assets
Total assets for reportable segments	$	2,965,093	$	2,963,130
Cash and cash equivalents	151,883		175,012
Short term investments	1,316		20,254
Other assets	108,201		106,045
Total consolidated assets	$	3,226,493	$	3,264,441

Geographic Information

	March 31, 2012		December 31, 2011
Long Lived Assets:
United States	$	520,403	$	515,096
Australia	32,355		33,999
Chile	65		65
Argentina	5,336		5,213
Bolivia	237,069		230,956
Mexico	1,873,705		1,903,375
Total	$	2,668,933	$	2,688,704

	Three months ended March 31,
	2012		2011
Revenues:
United States	$	29,135	$	62,372
Mexico	123,722		88,165
Bolivia	41,376		46,321
Australia	6,713		3,080
Argentina	3,618		(314		)
Total	$	204,564	$	199,624