NoTE 6: CrEDIT FACIlITIES AND CApITAl lEASES Credit Facilities Capital Leases NoTE 7: CoMMITMENTS AND CoNTINgENCIES Rio Grande Silver Guaranty Our wholly-owned subsidiary, Rio Grande Silver Inc. (“Rio”), is party to a joint venture with Emerald Mining & Leasing, LLC (“EML”) and certain other  parties with respect to a land package in the Creede Mining District of Colorado that is adjacent to other land held by Rio. Rio holds a 70% interest in  the joint venture. In connection with the joint venture, we are required to guarantee certain environmental remediation-related obligations of EML to a  third party up to a maximum liability to us of $2.5 million. As of December 31, 2012, we have not been required to make any payments pursuant to the  guaranty. We may be required to make payments in the future, limited to the $2.5 million maximum liability, should EML fail to meet its obligations to  the third party. However, to the extent that any payments are made by us under the guaranty, EML, in addition to other parties, have jointly and  severally agreed to reimburse and indemnify us for any such payments. We have not recorded a liability relating to the guaranty as of December 31,  2012. Since 2009, we have entered into various lease agreements for equipment at our Greens Creek and Lucky Friday units, which we have determined to  be capital leases. At December 31, 2012, the total liability balance associated with capital leases, including purchase option amounts, was $17.5 million,  with $5.6 million of the liability classified as current and $11.9 million classified as non-current. At December 31, 2011, the total liability balance  associated with capital leases was $10.3 million, with $4.0 million of the liability classified as current and $6.3 million classified as non-current. The  annual maturities of capital lease commitments, including interest, as of December 31, 2012 are: We were in compliance with all covenants under the credit agreement as of December 31, 2012. We have not drawn funds on the current revolving  credit facility as of the filing date of this Form 10-K. The credit agreement includes various covenants and other limitations related to our various financial ratios and indebtedness and investments, as  well as other information and reporting requirements, including the following limitations: We have a $150 million senior secured revolving credit facility, which is collateralized by the shares of common stock held in our material subsidiaries  and by our joint venture interests in the Greens Creek mine, all of our rights and interests in the joint venture agreement, and all of our rights and  interests in the assets of the joint venture. This credit facility originated with a $60 million senior secured revolving credit agreement entered into in  October 2009 that has been amended several times to its current form. Amounts borrowed under the credit agreement are available for general  corporate purposes. The interest rate on outstanding loans under the agreement is between 3.00% and 3.75% above the LIBOR or an alternative base  rate plus an applicable margin of between 2.00% and 2.75%. We are required to pay a standby fee of between 0.825% and 1.05% per annum on  undrawn amounts under the revolving credit agreement. The credit facility is effective until August 1, 2015. In 2012, we incurred $0.5 million in interest  expense for the amortization of loan origination fees and $1.0 million in interest expense for commitment fees relating to the credit agreement.  We had no unrecognized tax benefits as of December 31, 2012 or December 31, 2011. Due to the net operating loss carryover provision, coupled  with the lack of any unrecognized tax benefits, we have not provided for any interest or penalties associated with any uncertain tax positions. If interest  and penalties were to be assessed, our policy is to charge interest to interest expense, and penalties to other operating expense. It is not anticipated  that there will be any significant changes to unrecognized tax benefits within the next 12 months. We file income tax returns in the U.S. federal jurisdiction, various state and foreign jurisdictions. We are no longer subject to income tax  examinations by U.S. federal and state tax authorities for years prior to 1996, or examinations by foreign tax authorities for years prior to 2006. We  currently have no tax years under examination. In addition, at December 31, 2012 and 2011 we had $19 million and $20 million, respectively, of additional federal net operating loss carryovers  relating to excess tax benefits from the exercise of employee stock options and the vesting of restricted stock awards. These amounts are not reflected  in our deferred tax asset for net operating loss carryovers. We recognize the excess tax benefits from the exercise of employee stock options and the  vesting of restricted stock awards in the period in which these tax benefits reduce income taxes payable, after net operating loss carryforwards are fully  utilized. As of December 31, 2012, for U.S. income tax purposes, we have federal and state net operating loss carryforwards of $146 million and $25 million,  respectively. These net operating loss carryforwards have a 20 year expiration period, the earliest of which could expire in 2020. We have foreign net  operating loss carryforwards of approximately $68 million, which expire between 2013 and 2032. We have approximately $25 million in alternative  minimum tax credit carryforwards which do not expire and are eligible to reduce future U.S. tax liabilities. Our utilization of U.S. net operating loss  carryforwards may be subject to annual limitations if there is a change in control as defined under Internal Revenue Code Section 382. y Leverage ratio (calculated as total debt divided by EBITDA) of not more than 3.0:1. y Interest coverage ratio (calculated as EBITDA divided by interest expense) of not less than 3.0:1. y Current ratio (calculated as current assets divided by current liabilities) of not less than 1.10:1. y Tangible net worth of greater than $500 million. Year ending December 31,  2013  $ 6,049 2014  5,821 2015  4,618 2016  1,931  Total  18,419 Less: imputed interest  (920) Net capital lease obligation  $ 17,499  [ HL:10-K ] F-15