Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company’s operating segments include the Palmarejo, San Bartolomé, Rochester, and Kensington mines, 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, Martha mine, corporate headquarters, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.

Revenues from silver sales were $328.5 million, $394.5 million and $549.7 million in 2014, 2013, and 2012, respectively. Revenues from gold sales were $304.0 million, $351.5 million and $345.8 million in 2014, 2013, and 2012, respectively.

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

Year ended December 31, 2014	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			La Preciosa			Coeur Capital			Other			Total
Revenue
Metal sales	$	244,003		$	117,749		$	136,960		$	123,768		$	—		$	10,046		$	—		$	632,526
Royalties	—			—			—			—			—			3,216			—			3,216
	244,003			117,749			136,960			123,768			—			13,262			—			635,742
Costs and Expenses
Costs applicable to sales(1)	187,276			89,659			105,342			91,462			—			4,206			—			477,945
Amortization	69,431			19,423			43,619			20,790			84			7,015			2,074			162,436
Exploration	6,671			120			8,005			2,636			236			515			3,557			21,740
Write-downs	784,038			118,754			107,832			—			372,466			6,202			83,429			1,472,721
Other operating expense (income)	620			(251		)	796			2,813			13,961			938			48,005			66,882
Other income (expense)
Interest income and other, net	131			2,461			(22		)	105			(523		)	(7,141		)	(229		)	(5,218		)
Interest expense, net	(9,320		)	(52		)	(214		)	(679		)	—			(1		)	(37,280		)	(47,546		)
Fair value adjustments, net	(1,847		)	—			—			3,653			—			—			1,812			3,618
Income and mining tax (expense) benefit	283,685			18,114			—			(2,224		)	132,151			1,212			26,306			459,244
Net income (loss)	$	(531,384	)	$	(89,433	)	$	(128,870	)	$	6,922		$	(255,119	)	$	(11,544	)	$	(146,456	)	$	(1,155,884	)
Segment assets(2)	$	341,367		$	188,616		$	215,973		$	196,765		$	39,701		$	59,848		$	41,987		$	1,084,257
Capital expenditures	$	26,084		$	7,937		$	16,220		$	11,898		$	255		$	—		$	1,850		$	64,244

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant, and equipment, and mineral interests

Year ended December 31, 2013	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			La Preciosa			Coeur Capital			Other			Total
Revenue
Metal sales	$	324,040		$	141,721		$	148,769		$	119,254		$	—		$	12,871		$	(661	)	$	745,994
Royalties	—			—			—			—			—			—			—			—
	324,040			141,721			148,769			119,254			—			12,871			(661		)	745,994
Costs and Expenses
Costs applicable to sales(1)	188,572			86,827			104,575			77,869			—			5,820			—			463,663
Amortization	133,535			19,103			62,750			8,890			24			3,755			1,507			229,564
Exploration	7,161			111			4,199			2,653			80			2,069			6,087			22,360
Write-downs	642,094			—			130,694			—			—			—			205			772,993
Other operating expense (income)	705			6,205			735			36,265			3,237			1,397			54,029			102,573
Other income (expense)
Interest income and other, net	906			2,582			(187		)	(318		)	15			(19,474		)	11,491			(4,985		)
Interest expense, net	(15,123		)	(74		)	(424		)	(20		)	—			—			(25,662		)	(41,303		)
Fair value adjustments, net	76,218			—			7,480			416			—			—			(1,346		)	82,768
Income and mining tax (expense) benefit	107,748			(10,938		)	(1		)	(2,332		)	(20,856		)	2,179			82,316			158,116
Net income (loss)	$	(478,278	)	$	21,045		$	(147,316	)	$	(8,677	)	$	(24,182	)	$	(17,465	)	$	4,310		$	(650,563	)
Segment assets(2)	$	1,164,852		$	289,272		$	343,144		$	176,789		$	410,335		$	62,678		$	111,749		$	2,558,819
Capital expenditures	$	33,730		$	11,568		$	21,404		$	29,406		$	1,122		$	—		$	3,583		$	100,813

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant, and equipment, and mineral interests

Year ended December 31, 2012	Palmarejo Mine			San Bartolomé Mine			Kensington Mine			Rochester Mine			Coeur Capital			Other			Total
Revenue
Metal sales	$	442,098		$	178,005		$	110,987		$	132,392		$	18,848		$	13,162		$	895,492
Royalties	—			—			—			—			—			—			—
	442,098			178,005			110,987			132,392			18,848			13,162			895,492
Costs and Expenses
Costs applicable to sales(1)	197,478			71,428			87,089			72,061			8,824			17,682			454,562
Amortization	145,945			16,624			41,241			6,784			4,632			806			216,032
Exploration	7,575			159			3,283			3,591			1,056			10,606			26,270
Write-downs	—			—			—			—			—			5,825			5,825
Other operating expense (income)	661			165			478			2,682			(736		)	33,813			37,063
Other income (expense)
Interest income and other, net	4,017			9,719			(77		)	358			(77		)	496			14,436
Interest expense, net	(18,938		)	(72		)	(2,972		)	(26		)	—			(4,161		)	(26,169		)
Loss on debt extinguishment	—			—			(1,036		)	—			—			—			(1,036		)
Fair value adjustments, net	(31,054		)	—			4,089			—			—			3,478			(23,487		)
Income and mining tax (expense) benefit	(18,066		)	(44,632		)	—			(2,195		)	(327		)	(5,587		)	(70,807		)
Net income (loss)	$	26,398		$	54,644		$	(21,100	)	$	45,411		$	4,668		$	(61,344	)	$	48,677
Segment assets(2)	$	1,905,269		$	302,922		$	508,658		$	104,373		$	32,656		$	120,178		$	2,974,056
Capital expenditures	$	38,456		$	25,672		$	36,994		$	11,794		$	—		$	2,725		$	115,641

(1) Excludes amortization

(2) Segment assets include receivables, prepaids, inventories, property, plant, and equipment, and mineral interests

In thousands	December 31, 2014		December 31, 2013
Assets
Total assets for reportable segments	$	1,084,257	$	2,558,819
Cash and cash equivalents	270,861		206,690
Other assets	100,300		120,469
Total consolidated assets	$	1,455,418	$	2,885,978

Geographic Information

In thousands	December 31, 2014		December 31, 2013
Long Lived Assets
Mexico	$	298,101	$	1,487,228
United States	275,594		384,626
Bolivia	107,960		235,085
Australia	21,362		25,668
Argentina	10,970		94,705
Other	15,116		10,462
Total	$	729,103	$	2,237,774

	Year ended December 31,
In thousands	2014		2013			2012
Revenue
United States	$	260,728	$	268,023		$	243,379
Mexico	245,493		324,040			442,098
Bolivia	117,749		141,721			178,005
Australia	10,046		12,871			18,848
Other	$	1,726	$	(661	)	$	13,162
Total	$	635,742	$	745,994		$	895,492

The Company's doré is refined into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets. The Company then sells its silver and gold bullion to multi-national banks, bullion trading houses, and refiners across the globe. The Company has seven bullion trading counterparties and the sales of metals to these companies amounted to approximately 63%, 72%, and 91% of total metal sales for the years ended December 31, 2014, 2013, and 2012, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to sufficient liquidity of the markets and ample alternative trading counterparties.

The Company's concentrates are sold to smelters under purchase and sale agreements, and the smelters pay the Company for the gold or silver recovered from the concentrates. The Company currently has seven smelting and refining customers for its concentrates, and the sales to these companies amounted to approximately 37%, 28%, and 9% of total metal sales for the years ended December 31, 2014, 2013, and 2012, respectively. The loss of any one smelting and refining client may have a material adverse effect on sales if alternate smelters and refiners are not available. The Company believes sufficient global capacity exists in case of 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, 2014, 2013, and 2012 (in millions):

	Years Ended December 31,
Customer	2014		2013		2012		Segments reporting revenue
Mitsui & Co.	$	133.8	$	70.3	$	65.6	Palmarejo, Rochester
TD Securities	106.7		106.7		65.8		Palmarejo, Rochester
Standard Bank	87.5		69.0		72.3		Palmarejo, Rochester
China National Gold	86.8		81.5		43.8		Kensington
Johnson Matthey	71.8		66.4		1.7		San Bartolomé
Valcambi	33.9		77.2		414.4		Palmarejo, San Bartolomé
INTL Commodities	22.4		84.6		58.0		Palmarejo, San Bartolomé, Rochester
Auramet	10.8		111.7		94.6		Palmarejo, San Bartolomé, Kensington, Rochester