Obligations for Environmental, Reclamation and Closure Matters Mineral Reserves Business Combinations New Accounting Pronouncements Forward-Looking Statements ITEM 7A. quANTITATIvE AND quAlITATIvE DISCloSurES ABouT MArkET rISk 1. the application of the highest and best use of valuation premise concepts; 2. measuring the fair value of an instrument classified in shareholders’ equity; and 3. disclosures about fair value measurements. The most significant liability on our balance sheet is for accrued reclamation and closure costs. Of our $113.2 million total accrued reclamation and  closure cost balance as of December 31, 2012, approximately $70.8 million is fixed by the terms of the Coeur d’Alene Basin litigation settlement, with  much of the remaining balance subject to uncertainty. We have estimated our liabilities under appropriate accounting guidance, and on at least an  annual basis - and more frequently if warranted – management reviews our liabilities with our Audit Committee. However, the ranges of liability could  exceed the liabilities recognized. If substantial damages were awarded, claims were settled, or remediation costs incurred in excess of our accruals, our  financial results or condition could be materially adversely affected. Critical estimates are inherent in the process of determining our reserves. Our reserves are affected largely by our assessment of future metals  prices, as well as by engineering and geological estimates of ore grade, accessibility and production cost. Metals prices are estimated at long-term  averages, as described in  Item 2. Property Descriptions . Our assessment of reserves occurs at least annually, and periodically utilizes external audits. Reserves are a key component in valuation of our properties, plants and equipment. Our estimates of reserves, mineralized material, and other  resources at our operations are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets  depreciated over the estimated mine lives. Reserves, mineralized material, and other resources included in our mine plans are also a key component in  forecasts, with which we compare future cash flows to current asset values to ensure that carrying values are reported appropriately. Estimates of  reserves, mineralized material, and other resources also play a key role in the valuation of certain assets in the determination of the purchase price  allocations for acquisitions (see  Business Combinations  below). Reserves are a culmination of many estimates and are not guarantees that we will  recover the indicated quantities of metals. We are required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based  on their estimated fair values at acquisition date. The valuation of assets acquired and liabilities assumed requires management to make significant  estimates and assumptions, especially with respect to long-lived assets, including estimates of future metals prices and mineral reserves, as discussed  above. In some cases, we use third-party appraisers to determine the fair values and lives of property and other identifiable assets. In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05, which, among other  things, amended Subtopic 220 with respect to the presentation of other comprehensive income and its components in the financial statements. The  update amended Subtopic 220 so that a SEC filer may present other comprehensive income either in a single continuous statement or in two separate  but consecutive statements. The filer is also required to present on the face of the financial statements reclassification adjustments for items that are  reclassified from other comprehensive income to net income in the statements where the components of net income and the components of other  comprehensive income are presented. The amendments in this update apply to both annual and interim periods beginning after December 15, 2011,  with the exception of the amendment regarding presentation of reclassification adjustments, which has been deferred to a later date. Adoption of this  guidance did not have a material impact on our consolidated financial statements. In May 2011, the FASB issued ASU 2011-04, which amends Subtopic 820 to clarify the application of existing common fair value measurement and  disclosure requirements. ASU 2011-04 provides clarification for the following: The amendments in this update became effective for interim and annual periods beginning after December 15, 2011. Adoption of this guidance did  not have a material impact on our consolidated financial statements. In December of 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities, which enhances disclosure requirements  regarding an entity’s financial instruments and derivative instruments that are offset or subject to a master netting arrangement. This information about  offsetting and related netting arrangements will enable users of financial statements to understand the effect of those arrangements on the entity’s  financial position, including the effect of rights of setoff. The amendments are required for annual reporting periods beginning after January 1, 2013,  and interim periods within those annual periods. We are evaluating the impact of this guidance, but do not anticipate it will have a material impact on  our consolidated financial statements. The following discussion about our risk-management activities includes forward-looking statements that involve risk and uncertainties, as well as  summarizes the financial instruments held by us at December 31, 2012, which are sensitive to changes in interest rates and commodity prices and are  not held for trading purposes. Actual results could differ materially from those projected in the forward-looking statements. In the normal course of  business, we also face risks that are either non-financial or non-quantifiable (see  Part I, Item 1A. Risk Factors ). 32 [ HL:10-K ]   The foregoing discussion and analysis, as well as certain information contained elsewhere in this Form 10-K, contain forward-looking statements  within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,  and are intended to be covered by the safe harbor created thereby. See the discussion in  Special Note on Forward-Looking Statements  included prior  to  Part I, Item 1.