Note

13.

Fair Value Measurement

The table below sets forth our assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category (in thousands).

Description	Balance at September 30, 2018		Balance at December 31, 2017		Input Hierarchy Level
Assets:
Cash and cash equivalents:
Money market funds and other bank deposits	$	60,856	$	186,107	Level 1
Available for sale securities:
Debt securities - municipal and corporate bonds		—		33,758	Level 2
Equity securities – mining industry		7,190		7,561	Level 1
Trade accounts receivable:
Receivables from provisional concentrate sales		12,947		14,805	Level 2
Restricted cash balances:
Certificates of deposit and other bank deposits		1,010		1,032	Level 1
Derivative contracts:
Foreign exchange contracts		1,760		4,943	Level 2
Metal forward contracts		282		—	Level 2
Total assets	$	84,045	$	248,206

Liabilities:
Derivative contracts:
Foreign exchange contracts	$	136	$	—	Level 2
Metal forward contracts		604		15,531	Level 2
Total liabilities	$	740	$	15,531

Cash and cash equivalents consist primarily of money market funds and are valued at cost, which approximates fair value, and a small portion consists of municipal bonds having maturities of less than

days, which are recorded at fair value.

Current available-for-sale securities consist of municipal and corporate bonds having maturities of more than

days, which are recorded at fair value.

Current and non-current restricted cash balances consist primarily of certificates of deposit, U.S. Treasury securities, and other deposits and are valued at cost, which approximates fair value.

Our non-current available for sale securities consist of marketable equity securities of companies in the mining industry which are valued using quoted market prices for each security.

Trade accounts receivable include amounts due to us for shipments of concentrates and doré sold to customers. Revenues and the corresponding accounts receivable for sales of metals products are recorded when title and risk of loss transfer to the customer (generally at the time of ship loading, or at the time of customer arrival for trucked products). Sales of concentrates are recorded using estimated forward prices for the anticipated month of settlement applied to our estimate of payable metal quantities contained in each shipment. Sales are recorded net of estimated treatment and refining charges, which are also impacted by changes in metals prices and quantities of contained metals. We estimate the prices at which sales of our concentrates will be settled due to the time elapsed between shipment and final settlement with the customer. Receivables for previously recorded concentrate sales are adjusted to reflect estimated forward metals prices at the end of each period until final settlement by the customer. We obtain the forward metals prices used each period from a pricing service. Changes in metals prices between shipment and final settlement result in changes to revenues previously recorded upon shipment. The embedded derivative contained in our concentrate sales is adjusted to fair market value through earnings each period prior to final settlement.

We use financially-settled forward contracts to manage exposure to changes in the exchange rate between the USD and CAD and MXN, and the impact on CAD- and MXN-denominated operating costs incurred at our Casa Berardi and San Sebastian units (see

Note

for more information). These contracts qualify for hedge accounting, with unrealized gains and losses related to the effective portion of the contracts included in accumulated other comprehensive loss, and unrealized gains and losses related to the ineffective portion of the contracts included in earnings each period. The fair value of each contract represents the present value of the difference between the forward exchange rate for the contract settlement period as of the measurement date and the contract settlement exchange rate.

We use financially-settled forward contracts to manage the exposure to changes in prices of silver, gold, zinc and lead contained in our concentrate shipments that have

not

reached final settlement. We also use financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead contained in our forecasted future concentrate shipments (see

Note

for more information). These contracts do

not

qualify for hedge accounting, and are marked-to-market through earnings each period. The fair value of each contract represents the present value of the difference between the forward metal price for the contract settlement period as of the measurement date and the contract settlement metal price.

Our Senior Notes, which were recorded at their carrying value of

$503.2

million, net of unamortized initial purchaser discount at

September

30,

2018

$3.3

million, had a fair value of

$511.4

million at

September

30,

2018.

Quoted market prices, which we consider to be Level

inputs, are utilized to estimate fair values of the Senior Notes. See

Note

for more information.