Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Fair Value Adjustments to Comprehensive income (Loss)



	Three months ended June 30,					Six months ended June 30,
In thousands	2016			2015		2016			2015
Palmarejo royalty obligation embedded derivative	$	(878	)	$	385	$	(5,756	)	$	(1,160	)
Rochester net smelter returns ("NSR") royalty obligation	(2,687		)	1,137		(4,936		)	(1,155		)
Silver and gold options	(14		)	1,232		(1,582		)	185
Fair value adjustments, net	$	(3,579	)	$	2,754	$	(12,274	)	$	(2,130	)

Financial assets and liabilities measured at fair value on recurring basis

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



	Fair Value at June 30, 2016
In thousands	Total		Level 1		Level 2		Level 3
Assets:
Equity securities	$	11,250	$	11,243	$	—	$	7
Other derivative instruments, net	655		—		655		—
	$	11,905	$	11,243	$	655	$	7
Liabilities:
Palmarejo royalty obligation embedded derivative	$	3,317	$	—	$	—	$	3,317
Rochester NSR royalty obligation	12,559		—		—		12,559
	$	15,876	$	—	$	—	$	15,876



	Fair Value at December 31, 2015
In thousands	Total		Level 1		Level 2		Level 3
Assets:
Equity securities	$	2,766	$	2,756	$	—	$	10
Liabilities:
Palmarejo royalty obligation embedded derivative	$	4,957	$	—	$	—	$	4,957
Rochester NSR royalty obligation	9,593		—		—		9,593
Other derivative instruments, net	508		—		508		—
	$	15,058	$	—	$	508	$	14,550

Changes in the fair value of the Company's Level 3 financial liabilities

The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the three and six months ended June 30, 2016:



	Three Months Ended June 30, 2016
In thousands	Balance at the beginning of the period		Revaluation		Settlements			Balance at the end of the period
Assets:
Equity securities	$	7	$	—	$	—		$	7
Liabilities:
Palmarejo royalty obligation embedded derivative	$	6,827	$	878	$	(4,388	)	$	3,317
Rochester NSR royalty obligation	$	10,877	$	2,687	$	(1,005	)	$	12,559



	Six Months Ended June 30, 2016
In thousands	Balance at the beginning of the period		Revaluation		Settlements			Balance at the end of the period
Assets:
Equity securities	$	10	$	—	$	(3	)	$	7
Liabilities:
Palmarejo royalty obligation embedded derivative	$	4,957	$	5,756	$	(7,396	)	$	3,317
Rochester NSR royalty obligation	$	9,593	$	4,936	$	(1,970	)	$	12,559

Financial Assets and Liabilities not Measured at Fair Value

The fair value of financial assets and liabilities carried at book value in the financial statements at June 30, 2016 and December 31, 2015 is presented in the following table:



	June 30, 2016
In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3
Liabilities:
3.25% Convertible Senior Notes due 2028	$	712	$	706	$	—	$	706	$	—
7.875% Senior Notes due 2021⁽¹⁾	373,957		362,650		—		362,650		—
Term Loan due 2020⁽²⁾	94,545		94,545		—		94,545		—
Palmarejo gold production royalty obligation	4,108		4,144		—		—		4,144


(1)	Net of unamortized debt issuance costs and premium received of $4.8 million.


(2)	Net of unamortized debt issuance costs of $4.5 million.



	December 31, 2015
In thousands	Book Value		Fair Value		Level 1		Level 2		Level 3
Liabilities:
3.25% Convertible Senior Notes due 2028	$	712	$	693	$	—	$	693	$	—
7.875% Senior Notes due 2021⁽¹⁾	373,433		227,487		—		227,487		—
Term Loan due 2020⁽²⁾	94,489		99,500		—		99,500		—
San Bartolomé Lines of Credit	4,571		4,571		—		4,571		—
Palmarejo gold production royalty obligation	15,207		15,580		—		—		15,580


(1)	Net of unamortized debt issuance costs and premium received of $5.3 million.