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Segment Reporting
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
The Company’s reportable operating segments include the Palmarejo, San Bartolomé, Rochester, Kensington, and Martha mines, as well as La Preciosa and Coeur Capital. All operating segments are engaged in the discovery and mining of gold and silver and generate the majority of their revenues from the sale of these precious metals with the exception of Coeur Capital, which holds the Endeavor silver stream and other precious metals royalties. Other includes the Joaquin project, corporate headquarters, elimination of intersegment transactions and other items necessary to reconcile to consolidated amounts.
Revenues from silver sales were $394.5 million, $549.7 million and $662.6 million in 2013, 2012, and 2011, respectively. Revenues from gold sales were $351.5 million, $345.8 million and $358.6 million in 2013, 2012, and 2011, respectively.
Financial information relating to the Company’s segments is as follows (in thousands):
Year ended December 31, 2013
Palmarejo
Mine
 
San Bartolomé
Mine
 
Kensington
Mine
 
Rochester
Mine
 
Martha
Mine
 
La Preciosa
 
Coeur Capital
 
Other
 
Total
Sales of metals
$
324,040

 
$
141,721

 
$
148,769

 
$
119,254

 
$
(661
)
 
$
—

 
$
12,871

 
$
—

 
$
745,994

Production costs applicable to sales
(188,572
)
 
(86,827
)
 
(104,575
)
 
(77,869
)
 
—

 
—

 
(5,818
)
 
(2
)
 
(463,663
)
Amortization
(134,240
)
 
(19,565
)
 
(63,216
)
 
(10,571
)
 
(438
)
 
(24
)
 
(3,755
)
 
(1,070
)
 
(232,879
)
Gross profit (loss)
1,228

 
35,329

 
(19,022
)
 
30,814

 
(1,099
)
 
(24
)
 
3,298

 
(1,072
)
 
49,452

Exploration expense
7,161

 
111

 
4,199

 
2,653

 
4,485

 
80

 
2,069

 
1,602

 
22,360

Write-downs
642,094

 
—

 
130,694

 
—

 
—

 
—

 
—

 
205

 
772,993

Other operating expenses
—

 
5,743

 
269

 
34,584

 
2,650

 
3,237

 
1,397

 
51,378

 
99,258

OPERATING INCOME (LOSS)
(648,027
)
 
29,475

 
(154,184
)
 
(6,423
)
 
(8,234
)
 
(3,341
)
 
(168
)
 
(54,257
)
 
(845,159
)
Interest and other income, net
906

 
2,582

 
(187
)
 
(318
)
 
865

 
15

 
(19,474
)
 
10,626

 
(4,985
)
Interest expense, net
(15,123
)
 
(74
)
 
(424
)
 
(20
)
 
(1
)
 
—

 
—

 
(25,661
)
 
(41,303
)
Fair value adjustments, net
76,218

 
—

 
7,480

 
416

 
—

 
—

 
—

 
(1,346
)
 
82,768

Income tax (provision) benefit
107,748

 
(10,938
)
 
(1
)
 
(2,332
)
 
(137
)
 
(20,856
)
 
2,179

 
82,453

 
158,116

Net income (loss)
$
(478,278
)
 
$
21,045

 
$
(147,316
)
 
$
(8,677
)
 
$
(7,507
)
 
$
(24,182
)
 
$
(17,463
)
 
$
11,815

 
$
(650,563
)
Segment assets(1)
$
1,164,852

 
$
289,272

 
$
343,144

 
$
176,789

 
$
6,168

 
$
410,335

 
$
62,678

 
$
105,581

 
$
2,558,819

Capital expenditures
$
33,730

 
$
11,568

 
$
21,404

 
$
29,406

 
$
10

 
$
1,122

 
$
—

 
$
3,573

 
$
100,813


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


Year ended December 31, 2012
Palmarejo
Mine
 
San Bartolomé
Mine
 
Kensington
Mine
 
Rochester
Mine
 
Martha
Mine
 
Coeur Capital
 
Other
 
Total
Sales of metals
$
442,098

 
$
178,005

 
$
110,987

 
$
132,392

 
$
13,162

 
$
18,848

 
$
—

 
$
895,492

Production costs applicable to sales
(197,478
)
 
(71,428
)
 
(87,089
)
 
(72,061
)
 
(17,682
)
 
(8,824
)
 
—

 
(454,562
)
Amortization
(146,595
)
 
(16,709
)
 
(41,645
)
 
(8,065
)
 
(692
)
 
(4,632
)
 
(519
)
 
(218,857
)
Gross profit (loss)
98,025

 
89,868

 
(17,747
)
 
52,266

 
(5,212
)
 
5,392

 
(519
)
 
222,073

Exploration expense
7,575

 
159

 
3,283

 
3,591

 
8,648

 
1,056

 
1,958

 
26,270

Write-downs
—

 
—

 
—

 
—

 
5,825

 
—

 
—

 
5,825

Other operating expenses
11

 
80

 
74

 
1,401

 
2,108

 
(736
)
 
31,300

 
34,238

OPERATING INCOME (LOSS)
90,439

 
89,629

 
(21,104
)
 
47,274

 
(21,793
)
 
5,072

 
(33,777
)
 
155,740

Interest and other income, net
4,017

 
9,719

 
(77
)
 
358

 
(1,153
)
 
(77
)
 
1,649

 
14,436

Interest expense, net
(18,938
)
 
(72
)
 
(2,972
)
 
(26
)
 
(3
)
 
—

 
(4,158
)
 
(26,169
)
Loss on debt extinguishment
—

 
—

 
(1,036
)
 
—

 
—

 
—

 
—

 
(1,036
)
Fair value adjustments, net
(31,054
)
 
—

 
4,089

 
—

 
—

 
—

 
3,478

 
(23,487
)
Income tax (provision) benefit
(18,066
)
 
(44,632
)
 
—

 
(2,195
)
 
976

 
(327
)
 
(6,563
)
 
(70,807
)
Net income (loss)
$
26,398

 
$
54,644

 
$
(21,100
)
 
$
45,411

 
$
(21,973
)
 
$
4,668

 
$
(39,371
)
 
$
48,677

Segment assets(1)
$
1,905,269

 
$
302,922

 
$
508,658

 
$
104,373

 
$
9,813

 
$
32,656

 
$
110,365

 
$
2,974,056

Capital expenditures
$
38,456

 
$
25,672

 
$
36,994

 
$
11,794

 
$
1,193

 
$
—

 
$
1,532

 
$
115,641

(1)     Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties 
Year ended December 31, 2011
Palmarejo
Mine
 
San Bartolomé
Mine
 
Kensington
Mine
 
Rochester
Mine
 
Martha
Mine
 
Coeur Capital
 
Other
 
Total
Sales of metals
$
513,097

 
$
267,502

 
$
151,186

 
$
57,331

 
$
13,347

 
$
18,737

 
$
—

 
$
1,021,200

Production costs applicable to sales
(186,201
)
 
(79,679
)
 
(101,672
)
 
(27,848
)
 
(15,513
)
 
(8,634
)
 
—

 
(419,547
)
Amortization
(159,264
)
 
(22,410
)
 
(35,839
)
 
(2,824
)
 
(556
)
 
(3,155
)
 
(452
)
 
(224,500
)
Gross profit (loss)
167,632

 
165,413

 
13,675

 
26,659

 
(2,722
)
 
6,948

 
(452
)
 
377,153

Exploration expense
6,863

 
248

 
1,102

 
1,989

 
6,367

 
662

 
1,897

 
19,128

Other operating expenses
949

 
342

 
317

 
19,931

 
156

 
(1
)
 
29,126

 
50,820

OPERATING INCOME (LOSS)
159,820

 
164,823

 
12,256

 
4,739

 
(9,245
)
 
6,287

 
(31,475
)
 
307,205

Interest and other income, net
(9,099
)
 
156

 
4

 
57

 
(544
)
 
1,108

 
1,708

 
(6,610
)
Interest expense, net
(23,453
)
 
(45
)
 
(4,889
)
 
(21
)
 
(458
)
 
—

 
(5,908
)
 
(34,774
)
Loss on debt extinguishment
—

 
—

 
—

 
—

 
—

 
—

 
(5,526
)
 
(5,526
)
Fair value adjustments, net
(40,046
)
 
—

 
(8,438
)
 
—

 
—

 
—

 
(3,566
)
 
(52,050
)
Income tax (provision) benefit
(28,023
)
 
(59,867
)
 
(31
)
 
(409
)
 
(1,219
)
 
—

 
(25,197
)
 
(114,746
)
Net income (loss)
$
59,199

 
$
105,067

 
$
(1,098
)
 
$
4,366

 
$
(11,466
)
 
$
7,395

 
$
(69,964
)
 
$
93,499

Segment assets(1)
$
2,029,769

 
$
276,423

 
$
507,891

 
$
76,852

 
$
19,717

 
$
36,349

 
$
16,129

 
$
2,963,130

Capital expenditures
$
36,976

 
$
17,731

 
$
34,013

 
$
27,217

 
$
3,426

 
$
59

 
$
566

 
$
119,988

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

 
As of December 31,
(in thousands)
2013

2012

2011
Assets
 
 
 
 
 
Total assets for reportable segments
$
2,558,819

 
$
2,974,056

 
$
2,963,130

Cash and cash equivalents
206,690

 
125,440

 
175,012

Short term investments
—

 
999

 
20,254

Other assets
120,469

 
120,906

 
106,045

Total consolidated assets
$
2,885,978

 
$
3,221,401

 
$
3,264,441



Geographic Information
 
As of December 31,
(in thousands)
2013

2012

2011
Long Lived Assets
 
 
 
 
 
United States
$
384,626

 
$
608,051

 
$
515,096

Australia
25,668

 
29,408

 
33,999

Argentina
94,705

 
1,705

 
5,213

Bolivia
235,085

 
240,905

 
230,956

Mexico
1,487,228

 
1,795,677

 
1,903,374

Other Foreign Countries
10,462

 
65

 
65

Total
$
2,237,774

 
$
2,675,811

 
$
2,688,703

 

 
Twelve months ended December 31,
(in thousands)
2013
 
2012
 
2011
Revenues
 
 
 
 
 
United States
$
268,023

 
$
243,379

 
$
208,517

Mexico
324,040

 
442,098

 
513,097

Bolivia
141,721

 
178,005

 
267,502

Australia
12,871

 
18,848

 
18,737

Argentina
(661
)
 
13,162

 
13,347

Total
$
745,994

 
$
895,492

 
$
1,021,200

The Company markets its doré to bullion trading houses, market makers and members of the London Bullion Market Association, industrial companies and other financial institutions. The Company has eight trading counterparties and the sales of metals to these companies amounted to approximately 72%, 91%, and 82% of total metal sales for the years ended December 31, 2013, 2012, and 2011, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and the availability of alternative trading counterparties.
The Company currently has five trading counterparties for its silver and gold concentrates and the sales to these companies amounted to approximately 28%, 9%, and 18% of total metal sales for the years ended December 31, 2013, 2012, and 2011, respectively. The loss of any one smelting and refining client may have a material adverse effect if alternate smelters and refiners are not available. The Company believes there is sufficient global capacity available to address the loss of any one smelter.
The following table indicates customers that represent 10% or more of total sales of metal for at least one of the years December 31, 2013, 2012, and 2011 (in millions):
 
 
Year Ended December 31,
 
 
Customer
 
2013
 
2012
 
2011
 
Segments reporting revenue
Auramet
 
$
111.7

 
$
94.6

 
$
50.8

 
Palmarejo, San Bartolomé, Kensington, Rochester
Toronto-Dominion Bank
 
106.7

 
65.8

 
—

 
Palmarejo, Rochester
INTL Commodities
 
84.6

 
58.0

 
112.6

 
Palmarejo, San Bartolomé, Rochester
China Gold
 
81.5

 
43.8

 
108.9

 
Kensington
Valcambi
 
77.2

 
414.4

 
385.5

 
Palmarejo, San Bartolomé
Mitsui
 
70.3

 
65.6

 
105.1

 
Palmarejo, Rochester