Exhibit 99.3
 AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR
THE YEAR ENDED DECEMBER 31, 2009, INCLUDING A RECONCILIATION TO
UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
 Managements Responsibility for Financial Reporting
   -s- Charles Jeannes
    
    -s- Lindsay HallCharles Jeannes
    
    Lindsay HallPresident and Chief Executive Officer
    
    Executive Vice President and Chief Financial Officer
 
 Report of Independent Registered Chartered Accountants
       Internal ControlIntegrated Framework




---



##### 



Managements Report on Internal Control over Financial Reporting
  i.
    
    pertain to the maintenance of records that accurately and fairly reflect, in reasonable
detail, the transactions and dispositions of assets of Goldcorp;
 ii.
    
    provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that Goldcorp receipts and expenditures are made only in accordance with
authorizations of management and Goldcorps directors; and
 iii.
    
    provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of Goldcorp assets that could have a material effect on
Goldcorps financial statements.
   Internal Control  Integrated Framework
  -s- Charles Jeannes
    
    -s- Lindsay HallCharles Jeannes
    
    Lindsay HallPresident and Chief Executive Officer
    
    Executive Vice President and Chief Financial Officer




---



##### 



Report of Independent Registered Chartered Accountants
  Internal
ControlIntegrated Framework
    Internal Control
 Integrated Framework




---



##### 



Consolidated Statements of Earnings  Years Ended December 31
 Note
    
    2009
    
    
    2008
    
    
    2007Revenues
    
    22
    
    $
    2,723.6
    
    
    $
    2,419.6
    
    
    $
    2,206.8Operating expenses
    
    
    
    
    1,187.3
    
    
    
    1,164.2
    
    
    
    953.8Depreciation and depletion
    
    22
    
    
    526.2
    
    
    
    499.1
    
    
    
    465.1Earnings from mine operations
    
    
    
    
    1,010.1
    
    
    
    756.3
    
    
    
    787.9Corporate administration(1)
    
    
    
    
    137.6
    
    
    
    136.7
    
    
    
    132.9Exploration
    
    
    
    
    32.5
    
    
    
    66.5
    
    
    
    42.7Write-down of mining interests
    
    9(b) & (f)
    
    
    24.0
    
    
    
    47.1
    
    
    
    Earnings from operations
    
    22
    
    
    816.0
    
    
    
    506.0
    
    
    
    612.3Other income (expenses)Interest and other income (expenses)
    
    
    
    
    (19.1
    )
    
    
    28.3
    
    
    
    20.5Interest expense and finance fees
    
    11(b)
    
    
    (59.0
    )
    
    
    (7.2
    )
    
    
    (44.7
    )Share of earnings of equity investee
    
    
    
    
    
    
    
    
    3.9
    
    
    
    0.1Gain (loss) on non-hedge derivatives, net
    
    15(a)
    
    
    3.6
    
    
    
    (2.6
    )
    
    
    (23.5
    )Gain (loss) on securities, net
    
    15(a)
    
    
    50.2
    
    
    
    (105.9
    )
    
    
    5.5Gain on disposition of mining interests
    
    4(a), (b), (e) & (f)
    
    
    20.1
    
    
    
    2.6
    
    
    
    51.0Gain on disposition of Silver Wheaton shares
    
    4(d)
    
    
    
    
    
    
    292.5
    
    
    
    Dilution gains (loss), net
    
    17
    
    
    (0.3
    )
    
    
    2.2
    
    
    
    10.0Gain (loss) on foreign exchange
    
    15(b)
    
    
    (366.6
    )
    
    
    1,058.9
    
    
    
    (49.4
    )(371.1
    )
    
    
    1,272.7
    
    
    
    (30.5
    )Earnings from continuing operations before taxes and non-controlling
interests
    
    
    
    
    444.9
    
    
    
    1,778.7
    
    
    
    581.8Income and mining taxes
    
    12
    
    
    (206.7
    )
    
    
    (295.4
    )
    
    
    (160.3
    )Non-controlling interests
    
    17
    
    
    2.0
    
    
    
    (7.7
    )
    
    
    (46.1
    )Net earnings from continuing operations
    
    
    
    
    240.2
    
    
    
    1,475.6
    
    
    
    375.4Net earnings from discontinued operation
    
    6
    
    
    
    
    
    
    
    
    
    
    84.7Net earnings
    
    
    
    $
    240.2
    
    
    $
    1,475.6
    
    
    $
    460.1(1)Stock based compensation expense (non-cash item) included in
corporate administration
    
    18(b)
    
    $
    45.1
    
    
    $
    42.6
    
    
    $
    41.2Net earnings per share from continuing operationsBasic
    
    
    
    $
    0.33
    
    
    $
    2.07
    
    
    $
    0.53Diluted
    
    
    
    
    0.33
    
    
    
    2.06
    
    
    
    0.53Net earnings per shareBasic
    
    
    
    $
    0.33
    
    
    $
    2.07
    
    
    $
    0.65Diluted
    
    
    
    
    0.33
    
    
    
    2.06
    
    
    
    0.65Weighted-average number of shares outstanding(000s)
    
    18(d)Basic
    
    
    
    
    731,306
    
    
    
    711,862
    
    
    
    704,868Diluted
    
    
    
    
    734,564
    
    
    
    715,434
    
    
    
    708,720




---



##### 



Consolidated Balance Sheets  At December 31
 Note
    
    2009
    
    
    2008AssetsCash and cash equivalents
    
    15(b) & 21
    
    $
    874.6
    
    
    $
    262.3Marketable securities
    
    15(a)
    
    
    24.9
    
    
    
    8.6Accounts receivable
    
    15(b)
    
    
    232.6
    
    
    
    178.6Income and mining taxes receivable
    
    
    
    
    38.4
    
    
    
    15.6Future income and mining taxes
    
    12
    
    
    3.6
    
    
    
    3.3Inventories and stockpiled ore
    
    7
    
    
    349.4
    
    
    
    226.2Other
    
    8
    
    
    78.0
    
    
    
    66.2Current assets
    
    
    
    
    1,601.5
    
    
    
    760.8Mining interests
    
    9
    
    
    18,001.3
    
    
    
    17,055.2Deposits on mining interest expenditures
    
    
    
    
    86.9
    
    
    
    230.8Goodwill
    
    9
    
    
    761.8
    
    
    
    761.8Stockpiled ore
    
    7
    
    
    93.6
    
    
    
    92.6Investments
    
    15(a)
    
    
    390.3
    
    
    
    73.4Other
    
    10
    
    
    13.3
    
    
    
    26.9$
    20,948.7
    
    
    $
    19,001.5LiabilitiesAccounts payable and accrued liabilities
    
    
    
    $
    416.4
    
    
    $
    304.8Income and mining taxes payable
    
    
    
    
    182.6
    
    
    
    Current debt
    
    11
    
    
    16.7
    
    
    
    Future income and mining taxes
    
    12
    
    
    107.9
    
    
    
    181.5Current derivative liabilities
    
    15(a)
    
    
    11.4
    
    
    
    Current liabilities
    
    
    
    
    735.0
    
    
    
    486.3Income and mining taxes payable
    
    
    
    
    65.4
    
    
    
    28.0Long-term debt
    
    11
    
    
    719.0
    
    
    
    5.3Future income and mining taxes
    
    12
    
    
    3,575.2
    
    
    
    3,196.6Reclamation and closure cost obligations
    
    13
    
    
    282.0
    
    
    
    262.3Other
    
    
    
    
    27.8
    
    
    
    12.75,404.4
    
    
    
    3,991.2Non-controlling interests
    
    17
    
    
    51.1
    
    
    
    51.2Shareholders EquityCommon shares, share purchase warrants,
stock options, restricted share units and
equity component of convertible senior
notes
    
    
    
    
    12,908.9
    
    
    
    12,625.2Retained earnings
    
    
    
    
    2,345.5
    
    
    
    2,237.0Accumulated other comprehensive income
    
    19
    
    
    238.8
    
    
    
    96.92,584.3
    
    
    
    2,333.915,493.2
    
    
    
    14,959.1$
    20,948.7
    
    
    $
    19,001.5
 (notes 15(b) & 23)
  -S- Charles Jeannes
    
    -s- Ian TelferCharles Jeannes, Director
    
    Ian Telfer, Director




---



##### 



Consolidated Statements of Cash Flows  Years Ended December 31
 Note
    
    2009
    
    
    2008
    
    
    2007Operating ActivitiesNet earnings from continuing operations
    
    
    
    $
    240.2
    
    
    $
    1,475.6
    
    
    $
    375.4Reclamation expenditures
    
    13
    
    
    (26.5
    )
    
    
    (17.8
    )
    
    
    (12.0
    )Transaction costs on convertible senior notes expensed
    
    11(b)
    
    
    18.5
    
    
    
    
    
    
    
    Loss (gain) on securities, net
    
    15(a)
    
    
    (50.2
    )
    
    
    105.9
    
    
    
    (5.5
    )Items not affecting cashDepreciation and depletion
    
    22
    
    
    526.2
    
    
    
    499.1
    
    
    
    465.1Stock based compensation expense
    
    18(b)
    
    
    45.1
    
    
    
    42.6
    
    
    
    41.2Write-down of mining interests
    
    9(b) & (f)
    
    
    24.0
    
    
    
    47.1
    
    
    
    Accretion on convertible senior notes
    
    11(b)
    
    
    15.6
    
    
    
    
    
    
    
    Share of earnings of equity investee
    
    
    
    
    
    
    
    
    (3.9
    )
    
    
    (0.1
    )Unrealized loss (gain) on non-hedge derivatives, net
    
    15(a)
    
    
    3.3
    
    
    
    (7.6
    )
    
    
    3.6Gain on disposition of mining interests
    
    4(a), (b), (e) & (f)
    
    
    (20.1
    )
    
    
    (2.6
    )
    
    
    (51.0
    )Gain on disposition of Silver Wheaton shares
    
    4(d)
    
    
    
    
    
    
    (292.5
    )
    
    
    Dilution loss (gains)
    
    17
    
    
    0.3
    
    
    
    (2.2
    )
    
    
    (10.0
    )Future income and mining taxes
    
    12
    
    
    55.0
    
    
    
    157.3
    
    
    
    (43.3
    )Non-controlling interests
    
    17
    
    
    (2.0
    )
    
    
    7.7
    
    
    
    46.1Unrealized loss (gain) on foreign exchange and other
    
    
    
    
    350.8
    
    
    
    (1,075.5
    )
    
    
    55.2Change in non-cash working capital
    
    21
    
    
    90.0
    
    
    
    (67.2
    )
    
    
    (214.0
    )Cash provided by operating activities of continuing operations
    
    
    
    
    1,270.2
    
    
    
    866.0
    
    
    
    650.7Cash provided by operating activities of discontinued operation
    
    6
    
    
    
    
    
    
    
    
    
    
    73.2Investing ActivitiesAcquisitions, net of cash acquired
    
    4(c) & 4(e)
    
    
    
    
    
    
    (553.0
    )
    
    
    (204.9
    )Expenditures on mining interests
    
    22
    
    
    (1,015.0
    )
    
    
    (1,141.2
    )
    
    
    (871.4
    )Deposits on mining interest expenditures
    
    22
    
    
    (341.4
    )
    
    
    (230.8
    )
    
    
    Proceeds from disposition of mining interests, net
    
    4(a), (f) & (g)
    
    
    14.0
    
    
    
    
    
    
    
    216.9Proceeds from disposition of Silver Wheaton shares, net
    
    4(d)
    
    
    
    
    
    
    1,505.1
    
    
    
    Expenditures on silver interests
    
    
    
    
    
    
    
    
    
    
    
    
    (57.7
    )Purchases of securities
    
    
    
    
    (181.9
    )
    
    
    (20.4
    )
    
    
    (49.8
    )Proceeds from sales of securities
    
    15(a)
    
    
    65.2
    
    
    
    0.2
    
    
    
    42.5Decrease in restricted cash
    
    
    
    
    
    
    
    
    
    
    
    
    65.0Other
    
    
    
    
    0.4
    
    
    
    (1.6
    )
    
    
    1.8Cash used in investing activities of continuing operations
    
    
    
    
    (1,458.7
    )
    
    
    (441.7
    )
    
    
    (857.6
    )Cash used in investing activities of discontinued operation
    
    6
    
    
    
    
    
    
    
    
    
    
    (5.2
    )Financing ActivitiesDebt borrowings
    
    
    
    
    1,332.0
    
    
    
    206.1
    
    
    
    1,406.0Debt repayments
    
    
    
    
    (460.0
    )
    
    
    (845.0
    )
    
    
    (1,266.1
    )Transaction costs on convertible senior notes
    
    11(b)
    
    
    (22.7
    )
    
    
    
    
    
    
    Common shares issued, net
    
    
    
    
    79.1
    
    
    
    103.8
    
    
    
    70.0Shares issued by subsidiaries to non-controlling interests
    
    
    
    
    2.5
    
    
    
    3.9
    
    
    
    39.4Dividends paid to common shareholders
    
    
    
    
    (131.7
    )
    
    
    (128.7
    )
    
    
    (126.9
    )Cash provided by (used in) financing activities
    
    
    
    
    799.2
    
    
    
    (659.9
    )
    
    
    122.4Effect of exchange rate changes on cash and cash equivalents
    
    
    
    
    1.6
    
    
    
    (12.9
    )
    
    
    1.0Increase (decrease) in cash and cash equivalents
    
    
    
    
    612.3
    
    
    
    (248.5
    )
    
    
    (15.5
    )Cash and cash equivalents, beginning of year
    
    
    
    
    262.3
    
    
    
    510.8
    
    
    
    526.3Cash and cash equivalents, end of year
    
    
    
    $
    874.6
    
    
    $
    262.3
    
    
    $
    510.8
 (note 21)




---



##### 



Consolidated Statements Shareholders Equity
 Stock
    
    
    Equity
    
    
    
    
    
    
    AccumulatedShare
    
    
    Options and
    
    
    Component of
    
    
    
    
    
    
    OtherCommon Shares
    
    
    Purchase
    
    
    Restricted
    
    
    Convertible
    
    
    Retained
    
    
    ComprehensiveShares
    
    
    Amount
    
    
    Warrants
    
    
    Share Units
    
    
    Senior Notes
    
    
    Earnings
    
    
    Income
    
    
    TotalAt January 1, 2007 as adjusted
    
    
    703,525
    
    
    $
    11,663.5
    
    
    $
    42.1
    
    
    $
    120.2
    
    
    $
    
    
    
    $
    556.9
    
    
    $
    144.1
    
    
    $
    12,526.8Stock options exercised and restricted share
units issued and vested (note 18(b))
    
    
    4,812
    
    
    
    109.1
    
    
    
    
    
    
    
    (39.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    69.9Share purchase warrants exercised (note 18(a))
    
    
    14
    
    
    
    0.2
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Fair value of stock options and restricted
share units issued and vested (note 18(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34.6Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (126.9
    )
    
    
    
    
    
    
    (126.9
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    460.1
    
    
    
    
    
    
    
    460.1Other comprehensive income (note 15(a))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.0
    
    
    
    14.0At December 31, 2007
    
    
    708,351
    
    
    
    11,772.8
    
    
    
    42.0
    
    
    
    115.6
    
    
    
    
    
    
    
    890.1
    
    
    
    158.1
    
    
    
    12,978.6Stock options exercised and restricted share
units issued and vested (note 18(b))
    
    
    5,667
    
    
    
    152.2
    
    
    
    
    
    
    
    (48.4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103.8Fair value of stock options and restricted
share units issued and vested (note 18(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40.4Shares, options and warrants issued in
connection with the acquisition of Gold Eagle
(note 4(c))
    
    
    15,582
    
    
    
    536.6
    
    
    
    8.0
    
    
    
    6.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    550.6Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (128.7
    )
    
    
    
    
    
    
    (128.7
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,475.6
    
    
    
    
    
    
    
    1,475.6Other comprehensive loss (note 15(a))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (61.2
    )
    
    
    (61.2
    )At December 31, 2008
    
    
    729,600
    
    
    
    12,461.6
    
    
    
    50.0
    
    
    
    113.6
    
    
    
    
    
    
    
    2,237.0
    
    
    
    96.9
    
    
    
    14,959.1Stock options exercised and restricted share
units issued and vested (note 18(b))
    
    
    3,957
    
    
    
    118.2
    
    
    
    
    
    
    
    (37.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80.7Fair value of stock options and restricted
share units issued and vested (note 18(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48.1Equity component of convertible senior notes
issued, net of issue costs (note 11(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    154.9
    
    
    
    
    
    
    
    
    
    
    
    154.9Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (131.7
    )
    
    
    
    
    
    
    (131.7
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    240.2
    
    
    
    
    
    
    
    240.2Other comprehensive income (note 15(a))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141.9
    
    
    
    141.9At December 31, 2009
    
    
    733,557
    
    
    $
    12,579.8
    
    
    $
    50.0
    
    
    $
    124.2
    
    
    $
    154.9
    
    
    $
    2,345.5
    
    
    $
    238.8
    
    
    $
    15,493.2
 (note 18) (note 19)




---



##### 



Consolidated Statements of Comprehensive Income  Years Ended December 31
 2009
    
    
    2008
    
    
    2007Net earnings
    
    $
    240.2
    
    
    $
    1,475.6
    
    
    $
    460.1Other comprehensive income (loss):Gain (loss) on available-for-sale securities, net of tax expense of
$16.6 million (2008  $0.6 million; 2007  tax recovery of $7.8
million) (note 15(a))
    
    
    184.9
    
    
    
    (124.0
    )
    
    
    36.4Reclassification adjustment for losses (gains) included in earnings,
net of tax recovery of $nil (2008 - $nil; 2007 - $1.2 million) (note
15(a))
    
    
    (43.0
    )
    
    
    111.0
    
    
    
    (21.1
    )Adjustment arising from acquisition of Gold Eagle (note 4(c))
    
    
    
    
    
    
    (29.2
    )
    
    
    Adjustment arising from disposition of Silver Wheaton shares (note 4(d))
    
    
    
    
    
    
    (17.7
    )
    
    
    Non-controlling interests
    
    
    
    
    
    
    (1.3
    )
    
    
    (1.3
    )Other comprehensive income (loss)
    
    
    141.9
    
    
    
    (61.2
    )
    
    
    14.0Comprehensive income
    
    $
    382.1
    
    
    $
    1,414.4
    
    
    $
    474.1




---



##### 



Notes to the Consolidated Financial Statements  Years Ended December 31, 2009, 2008 and 2007
 1.
    
    DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS
   (note 4(e) )
 (note 4(d) ).
 (note 4(f) ) (note 15(a) )
 (note 4(c) ).
 (note 24(a) )
 (note 24(b) )




---



##### 



(note 24(c) ).
 2.
    
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  (a)
    
    Basis of presentation and principles of consolidation
  Ownership
    
    Basis of
    
    Operations andMining properties
    
    Location
    
    interest
    
    presentation
    
    development projects ownedRed Lake Gold Mines (Red Lake)
    
    Canada
    
    100%
    
    Consolidated
    
    Red Lake and Campbellcomplexes, and Cochenourproject (note 4(c))Porcupine Mines (Porcupine) (1)
    
    Canada
    
    100%
    
    Consolidated
    
    Porcupine mines and Hollinger projectMusselwhite Mine (Musselwhite) (1)
    
    Canada
    
    100%
    
    Consolidated
    
    Musselwhite mineLes Mines Opinaca Ltée (Éléonore)
    
    Canada
    
    100%
    
    Consolidated
    
    Éléonore projectTerrane Metals Corp. (Terrane)
    
    Canada
    
    65%
    
    Consolidated
    
    Mt Milligan project and certainother Canadian explorationinterestsSan Dimas Mines (San Dimas)
    
    Mexico
    
    100%
    
    Consolidated
    
    San Dimas minesLos Filos Mines (Los Filos)
    
    Mexico
    
    100%
    
    Consolidated, except
    
    Los Filos mines and El Limónfor El Limón which is
    
    project (note 24(c))accounted for usingthe equity methodMinas de la Alta Pimeria SA de CV (El Sauzal)
    
    Mexico
    
    100%
    
    Consolidated
    
    El Sauzal mineMinera Peñasquito SA de CV (Peñasquito)
    
    Mexico
    
    100%
    
    Consolidated
    
    Peñasquito and Noche Buena projectsMontana Exploradora de Guatemala SA
    
    Guatemala
    
    100%
    
    Consolidated
    
    Marlin mine(Marlin)Minera Alumbrera Ltd (Alumbrera)
    
    Argentina
    
    37.5%
    
    Proportionately
    
    Alumbrera mine,consolidated
    
    incorporated joint ventureMarigold Mining Company (Marigold)
    
    United States
    
    66.7%
    
    Proportionately
    
    Marigold mine, unincorporatedconsolidated
    
    joint ventureWharf Gold Mine (Wharf)
    
    United States
    
    100%
    
    Consolidated
    
    Wharf mineEntre Mares de Guatemala SA (Cerro Blanco)
    
    Guatemala
    
    100%
    
    Consolidated
    
    Cerro Blanco projectPueblo Viejo Dominicana Corporation
    
    Dominican
    
    40%
    
    Accounted for using
    
    Pueblo Viejo project(Pueblo Viejo)
    
    Republic
    
    
    
    the equity methodMinerales Entre Mares de Honduras SA
    
    Honduras
    
    100%
    
    Consolidated
    
    San Martin mine (in reclamation)(San Martin)
 (1)
    
    The results of Goldcorp include a 51% and 68% interest in
Porcupine and Musselwhite, respectively, which are proportionately
consolidated from May 12, 2006 to December 21, 2007, and 100% interests which
are consolidated thereafter (note 4(e)).  Consolidation of Variable Interest Entities




---



##### 



(b)
    
    Use of estimates
   (i)
    
    the recoverability of accounts receivable, income and
mining taxes receivable, other receivables and investments;(ii)
    
    the quantities of material on leach pads and in circuit
and of recoverable gold in this material used in determining the estimated
net realizable value of inventories;(iii)
    
    the economic recoverability of exploration costs
incurred and the probability of future economic benefits from development
costs incurred;(iv)
    
    the recoverable tonnes of ore from each mine, the point
at which operating levels intended by management are considered to be
reached and related depreciation and depletion of mining interests;(v)
    
    the proven and probable mineral reserves and resources
associated with mining properties, the expected economic lives of mining
properties, the future operating results and net cash flows from mining
properties and the recoverability of mining properties;(vi)
    
    the useful lives and related depreciation of plant and equipment;(vii)
    
    the future economic benefit of stripping costs incurred and capitalized during production;(viii)
    
    the fair values of reporting units with goodwill and the recoverability of goodwill;(ix)
    
    the expected costs of reclamation and closure cost
obligations and inputs used to determine the present value of such
obligations and the related accretion expense;(x)
    
    the inputs used in accounting for stock based
compensation expense;(xi)
    
    the inputs used in measuring the accrued pension benefit
obligation and accrued benefit liability;(xii)
    
    the provision for income and mining taxes including
expected periods of reversals of timing differences and composition of
future income and mining tax assets and liabilities; and(xiii)
    
    the fair values of assets and liabilities acquired in business
combinations.
 (c)
    
    Revenue recognition




---



##### 



(d)
    
    Investment in joint ventures
  (e)
    
    Investments in entities subject to significant influence
  (f)
    
    Cash and cash equivalents
  (g)
    
    Inventories and stockpiled ore
   (notes 4(f) and 9(d) )




---



##### 



(h)
    
    Mining interests
  Mining properties
  (a)
    
    Reserves  Reserves are classified as depletable mining properties in note 9
when operating levels intended by management have been reached. Prior to this, they are
classified as non-depletable mining properties.(b)
    
    Resources  Resources represent the property interests that are believed to
potentially contain economic mineralized material such as inferred material within
pits; measured, indicated, and inferred resources with insufficient drill spacing to
qualify as proven and probable reserves; and inferred resources in close proximity to
proven and probable reserves.(c)
    
    Exploration potential  Exploration potential represents the estimated
mineralized material contained within areas adjacent to existing reserves and
mineralization located within the immediate mine area; areas outside of immediate mine
areas that are not part of measured, indicated, or inferred resources; and greenfields
exploration potential that is not associated with any other production, development, or
exploration stage property.
  Recognition
  (a)
    
    Costs of direct acquisitions of production, development and exploration stage
properties;(b)
    
    Costs attributed to mining properties acquired in connection with business
combinations;(c)
    
    Expenditures related to the development of mining properties;(d)
    
    Expenditures related to economically recoverable exploration;(e)
    
    Borrowing costs incurred directly attributable to mining properties;(f)
    
    Certain costs incurred during production, net of proceeds from sales prior to
reaching operating levels intended by management; and(g)
    
    Estimates of reclamation and closure costs (note2(k))
 Acquisitions:
  Development expenditures:




---



##### 



Exploration expenditures
   
    
    Geology: there is sufficient geologic and economic certainty of converting a
residual mineral deposit into a proven and probable reserve at a development stage or
production stage mine, based on the known geology and metallurgy. There is a history
of conversion of resources to reserves at operating mines to support the likelihood of
conversion.
    
    Scoping: there is a scoping study or preliminary feasibility study that
demonstrates the additional resources will generate a positive commercial outcome.
Known metallurgy provides a basis for concluding there is a significant likelihood of
being able to recoup the incremental costs of extraction and production.
    
    Accessible facilities: the mining property can be processed economically at
accessible mining and processing facilities where applicable.
    
    Life of mine plans: an overall life of mine plan and economic model to support the
mine and the economic extraction of resources/reserves exists. A long-term life of
mine plan, and supporting geological model identifies the drilling and related
development work required to expand or further define the existing ore body.
    
    Authorizations: operating permits and feasible environmental programs exist or are
obtainable.
  
    
    It is probable that a future economic benefit will flow to the Company;
    
    The Company can obtain the benefit and controls access to it; and
    
    The transaction or event giving rise to the future economic benefit has already
occurred.
 Borrowing costs:
  Costs incurred during production:




---



##### 



Measurement
  Depletion:
   (i)
    
    A significant portion of plant/mill capacity is achieved;(ii)
    
    A significant portion of available funding is directed towards
operating activities;(iii)
    
    A pre-determined, reasonable period of time has passed; or(iv)
    
    A development project significant to the primary business objective of the
Company has been completed in terms of significant milestones being achieved.
  Impairment:
  Derecognition




---



##### 



Plant and equipment
  (i)
    
    Goodwill
   (j)
    
    Income and mining taxes
   (k)
    
    Reclamation and closure cost obligations




---



##### 



(l)
    
    Employee pension plansThe Company has various defined contribution and defined benefit pension plans that provide
pension benefits to most of its salaried and hourly employees. The Company does not provide
other post-employment benefits such as health care or life insurance.The Companys required contributions under its defined contribution pension plans are
charged to earnings in the year incurred.The Company accrues the costs and related obligations associated with its defined benefit
pension plans based on actuarial computations using the projected benefit obligation method
and managements best estimates of expected plan investment performance, salary escalation,
and other relevant factors. For the purpose of calculating the expected return on plan
assets, those assets are measured at fair value. Actuarial gains and losses are deferred and
cumulative balances in excess of 10% of the greater of the accrued benefit obligation and
the fair value of plan assets are amortized over the expected average remaining service life
of the plan participants (EARSL), which ranges from 4 to 25 years depending on the plan.
Past service costs arising from plan amendments are deferred and amortized on a
straight-line basis over EARSL.(m)
    
    Financial instrumentsAll financial assets and financial liabilities are recorded at fair value on initial
recognition. Transaction costs are expensed when they are incurred, unless they are directly
attributable to the acquisition or construction of qualifying assets, which are assets that
necessarily take a substantial period of preparation for their intended use or sale, in
which case they are added to the costs of those assets until such time as the assets are
substantially ready for their intended use or sale.Subsequent measurement of financial assets and liabilities depends on the classifications of
such assets and liabilities. Financial assets and liabilities classified as held-for-trading
are measured at fair value at the end of each period with the changes in fair values
recorded in earnings in the period they occur.A financial asset classified as available-for-sale is measured at fair value with
mark-to-market gains and losses recognized in other comprehensive income (OCI) until the
financial asset is derecognized or there is objective evidence that the asset is impaired
and the decline in fair value is other than temporary. Factors that contribute to an other
than temporary decline in fair value of an available-for-sale investment in equity
securities include a significant and prolonged decline in fair value below the cost of the
investment and significant changes with adverse effects that have taken place in the market,
economic and legal environments in which the issuer operates. When available-for-sale
financial assets are derecognized, the cumulative mark-to-market gains or losses previously
recognized in accumulated other comprehensive income (AOCI) are recognized in earnings for
the period. When there is objective evidence that an available-for-sale financial asset is
impaired and the decline in fair value is other than temporary, the cumulative loss that had
been previously recognized directly in OCI is reclassified from AOCI to earnings. Impairment
losses recognized in net earnings for available-for-sale investments in equity instruments
are not reversed.




---



##### 



Financial assets classified as loans and receivables and other financial liabilities are
measured at amortized cost using the effective interest rate method.
 (n)
    
    Non-controlling interestsNon-controlling interests represent the minority shareholders equity in the Companys less
than wholly-owned subsidiaries. Non-controlling interests are initially recorded at the
non-controlling interests share of book values of net assets of the related subsidiary on
acquisition by the Company. Subsequent to the acquisition date, adjustments are made to the
carrying amount of non-controlling interests for the minority shareholders share of changes
to the subsidiarys equity. When the subsidiary issues its own shares to outside investors,
the carrying amount of non-controlling interests is adjusted to reflect the change in the
minority shareholders relative interests in the subsidiary. The difference between the
adjustment to the carrying amount of non-controlling interests and the Companys share of
proceeds received is recorded in earnings as a dilution gain or loss.(o)
    
    Stock based compensationThe Company applies the fair value method of accounting for all stock option and restricted
share unit (RSU) awards. Under this method, the Company recognizes a stock based
compensation expense for all stock options and RSUs awarded to employees, officers and
directors based on the fair values of the options and RSUs on the date of grant. The fair
values of options and RSUs at the date of grant are expensed over the vesting periods of the
options and RSUs, respectively, with a corresponding increase to equity.The fair value of options is determined using the Black-Scholes option pricing model with
market related inputs as of the date of grant. The fair value of RSUs is the market value of
the underlying shares at the date of grant.(p)
    
    Earnings per shareEarnings per share calculations are based on the weighted average number of common shares
issued and outstanding during the period. Diluted earnings per share are calculated using
the treasury stock method, in which the assumed proceeds from the potential exercise of
those stock options, warrants and restricted share units whose average exercise price is
below the average market price of the underlying shares are used to purchase the Companys
common shares at their average market price for the period. The dilutive effect of
convertible senior notes are determined by adjusting the numerator for related interest
expensed during the period, net of tax, and the denominator for the additional weighted
average number of common shares on an if converted basis as at the later of the beginning
of the period and the date of issuance of the convertible senior notes.(q)
    
    Foreign currency translationThe measurement currency of the Company and its foreign operations is the US dollar and
therefore the operating results of the Companys foreign operations are translated using the
temporal method. Under this method, monetary assets and liabilities denominated in foreign
currencies are translated into US dollars at the exchange rates prevailing at the balance
sheet date, non-monetary assets denominated in foreign currencies and measured in other than
fair value are translated using the rates of exchange at the transaction dates, non-monetary
assets denominated in foreign currencies that are measured at fair value are translated
using the rates of exchange at the dates those fair values are determined and income
statement items denominated in foreign currencies are translated using the average monthly
exchange rates.Foreign exchange gains and losses are included in earnings other than foreign exchange gains
and losses from translating available-for-sale marketable securities and investments in
equity securities which are recognized in OCI as part of the total change in fair values of
the securities. Unrealized gains and losses due to movements in exchange rates on cash and
cash equivalent balances held in foreign currencies are shown separately on the Consolidated
Statements of Cash Flows.




---



##### 



3.
    
    CHANGES IN ACCOUNTING POLICIES
 Accounting policies implemented effective January 1, 2007
 Comprehensive Income Equity Financial
Instruments  Recognition and Measurement Financial Instruments  Disclosure and
Presentation Hedges
 Accounting policies implemented during 2008
 Financial Instruments  Disclosures Financial Instruments  Presentation Financial Instruments -
Disclosure and Presentation (note 15(b) ) Capital Disclosures (note 16)
 Inventories Inventories
 Income Statement
Presentation Of A Tax Loss Carryforward Recognized Following An Unrealized Gain Recorded In
Other Comprehensive Income
 Accounting policies implemented during 2009
 Goodwill and Intangible
Assets Goodwill and Other
Intangible Assets Research and Development Costs




---



##### 



Credit Risk and the Fair Value
of Financial Assets and Financial Liabilities
 Mining Exploration Costs Accounting by Mining Enterprises for
Exploration Costs
 Financial Instruments  Disclosures (note 15(a) and (b))
 Financial Instruments  Recognition and Measurement
 Accounting policies to be implemented effective January 1, 2010
 Business Combinations Consolidated Financial Statements Non-controlling
Interests Business Combinations Consolidated Financial Statements. (note 24(a) ) (note 24(b) )




---



##### 



Accounting policies to be implemented effective January 1, 2011
  Multiple deliverable revenue
arrangements
 4.
    
    ACQUISITION AND DISPOSITION OF MINING INTERESTS
 (a)
    
    During the fourth quarter of 2009, the Company sold certain mining interests for total
proceeds amounting to $20.1 million, comprising of C$15.0 million in cash ($14.0 million)
and $6.1 million in common shares of the acquirer which were classified as
available-for-sale on initial recognition. The Company recognized a pre-tax gain of $20.1
million ($15.1 million, net of tax).(b)
    
    During the fourth quarter of 2008, the Company sold certain mining interests in
exchange for reclamation and closure cost obligations assumed by the purchaser and
recognized a pre-tax gain of $2.6 million ($0.5 million, net of tax).(c)
    
    Acquisition of net assets of Gold Eagle Mines Ltd.On September 25, 2008, the Company acquired the net assets of Gold Eagle Mines Ltd. (Gold
Eagle) pursuant to a plan of arrangement. Gold Eagles 100% owned property in the Red Lake
camp is host to the Bruce Channel Discovery, a gold exploration project southwest of
Goldcorps Red Lake mine and contiguous to Goldcorps Cochenour gold project. The
acquisition secures control of eight kilometres of strike length along the prolific Red Lake
trend in Ontario, Canada.Upon closing of the transaction, Goldcorp paid $701.3 million in cash and issued 15.6
million common shares, 0.6 million stock options and 0.8 million share purchase warrants to
former Gold Eagle shareholders. The common shares were valued at the September 25, 2008
closing price of Goldcorps shares on the Toronto Stock Exchange (C$35.60), and the warrants
and options were valued at fair value on the date of acquisition using the Black-Scholes
option pricing model.




---



##### 



The transaction was accounted for as an asset purchase for accounting purposes with the
final purchase price allocated as follows:
 Purchase price:Cash paid
    
    $
    701.315.6 million common shares issued
    
    
    536.60.6 million stock options issued
    
    
    6.00.8 million share purchase warrants issued
    
    
    8.0Original cost of Gold Eagle shares owned prior to the closing of the transaction
    
    
    26.7Transaction costs
    
    
    8.2$
    1,286.8Net assets acquired:Cash and cash equivalents
    
    $
    148.3Non-cash working capital
    
    
    (2.5
    )Mining interests
    
    
    1,597.2Future income and mining taxes
    
    
    (456.2
    )$
    1,286.8
  (d)
    
    Disposition of Silver Wheaton sharesOn February 14, 2008, Goldcorp disposed of its 108 million common shares of Silver Wheaton
(48% interest) to a syndicate of underwriters at a price of C$14.50 per common share, for
gross proceeds of $1,571.0 million. The Company received net proceeds of $1,505.1 million
(gross proceeds of $1,571.0 million less transaction costs of $55.7 million and cash held by
Silver Wheaton of $10.2 million).After deducting the book value of the Silver Wheaton shares ($546.0 million) and transaction
costs ($55.7 million), the Company had excess consideration of $969.3 million on the sale of
its Silver Wheaton shares. The total gain recognized in earnings in the first quarter of
2008 of $292.5 million is comprised of the $279.4 million relating to the third party silver
arrangements between Silver Wheaton and Zinkgruvan, Yauliyacu and Stratoni and the
realization of $17.7 million of AOCI related to Silver Wheatons investments, offset by $4.6
million of other liabilities. The sale of the Silver Wheaton shares resulted in an income
tax liability for the Company of $155.9 million, which is payable in the first quarter of
2010 and was reclassified from future income taxes to current income taxes in the first
quarter of 2009.As a result of the Company having arrangements to sell silver to Silver Wheaton from its San
Dimas, Los Filos and Peñasquito mines at approximately $4 per ounce, the remaining $689.9
million of excess consideration was applied as a reduction to the carrying amounts of mining
properties and plant and equipment at San Dimas, Los Filos and Peñasquito ($479.4 million,
$26.5 million and $184.0 million, respectively). The consideration paid to Goldcorp by
Silver Wheaton for the San Dimas silver arrangement in 2004 and 2006, and the Peñasquito
silver arrangement in 2007, which were previously eliminated upon consolidation, were
applied as a reduction to mining properties and plant and equipment at San Dimas and
Peñasquito, respectively, as a result of the disposition of the Companys interest in Silver
Wheaton.The results of Silver Wheaton were consolidated prior to this disposition. As a result of
Goldcorps continuing cash flows with Silver Wheaton arising from the San Dimas, Los Filos
and Peñasquito silver arrangements, Silver Wheaton has not been classified as a discontinued
operation in these consolidated financial statements.




---



##### 



(e)
    
    Acquisition of 100% Interest in Porcupine and Musselwhite and Disposition of Interest
in La CoipaOn December 21, 2007, Goldcorp acquired Kinross Gold Corporations 49% interest in the
Porcupine gold mines in northeastern Ontario and 32% interest in the Musselwhite gold mine
in northwestern Ontario in exchange for Goldcorps 50% interest in the La Coipa gold/silver
mine (La Coipa) in Chile and $204.9 million in cash, net of cash and cash equivalents
acquired.The results of La Coipa were retroactively reclassified as a discontinued operation in the
2007 consolidated financial statements (note 6). A gain of $46.4 million was recognized on
the disposition in the fourth quarter of 2007.Goldcorps interests in Porcupine and Musselwhite are included in these consolidated
financial statements at 51% and 68%, respectively, from May 12, 2006 to December 21, 2007
and at 100% thereafter.The acquisition of the remaining interests in Porcupine and Musselwhite was accounted for as
a step purchase transaction, with the purchase price allocated as follows:
 Purchase price:Cash paid
    
    $
    206.550% interest in La Coipa
    
    
    100.0Transaction costs
    
    
    5.7$
    312.2Net assets acquired:Cash and cash equivalents
    
    $
    1.6Non-cash working capital
    
    
    10.3Mining interests
    
    
    345.8Other assets
    
    
    11.9Future income and mining taxes
    
    
    (7.7
    )Reclamation and closure cost obligations
    
    
    (46.1
    )Other liabilities
    
    
    (3.6
    )$
    312.2




---



##### 



(f)
    
    Disposition of Amapari and Peak MinesDuring April 2007, Goldcorp sold its Amapari and Peak mines to Peak Gold in exchange for
$200.0 million in cash and $100.0 million in common shares of Peak Gold, resulting in a
pre-tax gain of $40.2 million ($6.5 million, net of tax). Goldcorp owned approximately 22%
of Peak Gold on close of the transaction.
 Net assets sold:Cash and cash equivalents
    
    $
    6.1Non-cash working capital
    
    
    16.9Mining interests
    
    
    284.1Other assets
    
    
    7.3Future income and mining taxes
    
    
    (35.5
    )Reclamation and closure cost obligations
    
    
    (18.2
    )Other liabilities
    
    
    (1.9
    )$
    258.8Net proceeds:Cash
    
    $
    200.0Common shares of Peak Gold
    
    
    100.0Selling costs
    
    
    (1.0
    )$
    299.0
 (note 15(a) )
 (g)
    
    On February 1, 2007, a wholly owned subsidiary of Goldcorp disposed of other mining
interests for cash of $24.0 million and $2.0 million in common shares of the acquirer. The
proceeds received approximated the net book value of the mining interests sold. The common
 shares received by the Company were classified as available-for-sale on initial
recognition.
 5.
    
    BUSINESS COMBINATION
 Glamis Gold Ltd.




---



##### 



6.
    
    DISCONTINUED OPERATION
 (note 4(e) )
  2007Earnings from discontinued operationRevenues
    
    $
    128.8Earnings before other income and taxes
    
    
    56.6Interest and other income
    
    
    0.9Income and mining taxes
    
    
    (19.2
    )38.3Gain on disposition (net of tax  $nil)
    
    
    46.4$
    84.7Earnings per share from discontinued operationBasic and diluted
    
    $
    0.12Cash flows of discontinued operationOperating activities
    
    $
    73.2Investing activities
    
    
    (5.2
    )$
    68.0
 7.
    
    INVENTORIES AND STOCKPILED ORE
 At December 31
    
    2009
    
    
    2008Supplies
    
    $
    135.4
    
    
    $
    106.9Finished goods
    
    
    33.0
    
    
    
    15.0Work-in-process
    
    
    32.5
    
    
    
    25.1Heap leach ore
    
    
    142.1
    
    
    
    80.4Stockpiled ore
    
    
    100.0
    
    
    
    91.4443.0
    
    
    
    318.8Less: non-current heap leach and stockpiled ore
    
    
    (93.6
    )
    
    
    (92.6
    )$
    349.4
    
    
    $
    226.2
   Stockpiled ore




---



##### 



8.
    
    OTHER CURRENT ASSETS
 At December 31
    
    2009
    
    
    2008Current derivative asset (note 15(a))
    
    $
    8.1
    
    
    $
    Prepaid expenses and other
    
    
    23.7
    
    
    
    13.6Sales/indirect taxes recoverable
    
    
    46.2
    
    
    
    52.6$
    78.0
    
    
    $
    66.2
 9.
    
    MINING INTERESTS
 2009
    
    
    2008Accumulated
    
    
    
    
    
    
    
    
    
    
    Accumulateddepreciation
    
    
    Net book
    
    
    
    
    
    
    depreciation
    
    
    Net bookAt December 31
    
    Cost
    
    
    and depletion
    
    
    value
    
    
    Cost
    
    
    and depletion
    
    
    valueMining properties
    
    $
    16,614.3
    
    
    $
    (1,108.3
    )
    
    $
    15,506.0
    
    
    $
    15,865.3
    
    
    $
    (792.5
    )
    
    $
    15,072.8Plant and equipment
    
    
    3,120.0
    
    
    
    (624.7
    )
    
    
    2,495.3
    
    
    
    2,448.2
    
    
    
    (465.8
    )
    
    
    1,982.4$
    19,734.3
    
    
    $
    (1,733.0
    )
    
    $
    18,001.3
    
    
    $
    18,313.5
    
    
    $
    (1,258.3
    )
    
    $
    17,055.2
  Mining propertiesNon-
    
    
    
    
    
    
    Plant andDepletable
    
    
    depletable
    
    
    Total
    
    
    Equipment (g)
    
    
    2009
    
    
    2008Red Lake(a)
    
    $
    364.6
    
    
    $
    2,116.3
    
    
    $
    2,480.9
    
    
    $
    295.4
    
    
    $
    2,776.3
    
    
    $
    2,765.7Porcupine(b)
    
    
    111.0
    
    
    
    148.2
    
    
    
    259.2
    
    
    
    163.1
    
    
    
    422.3
    
    
    
    441.5Musselwhite
    
    
    90.0
    
    
    
    145.7
    
    
    
    235.7
    
    
    
    153.9
    
    
    
    389.6
    
    
    
    337.3Éléonore
    
    
    
    
    
    
    832.9
    
    
    
    832.9
    
    
    
    
    
    
    
    832.9
    
    
    
    805.3Terrane
    
    
    
    
    
    
    197.4
    
    
    
    197.4
    
    
    
    0.4
    
    
    
    197.8
    
    
    
    190.1San Dimas (note 4(d))
    
    
    29.0
    
    
    
    
    
    
    
    29.0
    
    
    
    6.7
    
    
    
    35.7
    
    
    
    18.9Los Filos (note 4(d))
    
    
    370.4
    
    
    
    169.1
    
    
    
    539.5
    
    
    
    193.4
    
    
    
    732.9
    
    
    
    723.5El Sauzal
    
    
    94.2
    
    
    
    82.1
    
    
    
    176.3
    
    
    
    13.2
    
    
    
    189.5
    
    
    
    272.4Peñasquito (c)(note 4(d))
    
    
    
    
    
    
    8,674.8
    
    
    
    8,674.8
    
    
    
    1,341.6
    
    
    
    10,016.4
    
    
    
    9,314.7Mexican exploration projects
    
    
    
    
    
    
    167.3
    
    
    
    167.3
    
    
    
    
    
    
    
    167.3
    
    
    
    167.3Marlin
    
    
    470.9
    
    
    
    233.4
    
    
    
    704.3
    
    
    
    58.9
    
    
    
    763.2
    
    
    
    802.3Alumbrera
    
    
    336.7
    
    
    
    
    
    
    
    336.7
    
    
    
    175.1
    
    
    
    511.8
    
    
    
    566.1Marigold
    
    
    51.8
    
    
    
    115.8
    
    
    
    167.6
    
    
    
    51.3
    
    
    
    218.9
    
    
    
    206.4Wharf
    
    
    7.4
    
    
    
    
    
    
    
    7.4
    
    
    
    7.2
    
    
    
    14.6
    
    
    
    21.5Cerro Blanco
    
    
    
    
    
    
    55.4
    
    
    
    55.4
    
    
    
    4.2
    
    
    
    59.6
    
    
    
    47.6Corporate and other (d)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28.6
    
    
    
    28.6
    
    
    
    22.7$
    1,926.0
    
    
    $
    12,938.4
    
    
    $
    14,864.4
    
    
    $
    2,493.0
    
    
    $
    17,357.4
    
    
    $
    16,703.3Investments accounted for using the
equity methodPueblo Viejo(e)
    
    
    
    
    
    
    587.1
    
    
    
    587.1
    
    
    
    
    
    
    
    587.1
    
    
    
    262.1El Limón (e)(f)
    
    
    
    
    
    
    54.5
    
    
    
    54.5
    
    
    
    2.3
    
    
    
    56.8
    
    
    
    89.8
    
    
    
    641.6
    
    
    
    641.6
    
    
    
    2.3
    
    
    
    643.9
    
    
    
    351.9$
    1,926.0
    
    
    $
    13,580.0
    
    
    $
    15,506.0
    
    
    $
    2,495.3
    
    
    $
    18,001.3
    
    
    $
    17,055.2




---



##### 



(note 22)
 At December 31
    
    2009
    
    
    2008Red Lake
    
    $
    404.4
    
    
    $
    404.4Peñasquito
    
    
    283.1
    
    
    
    283.1Los Filos
    
    
    74.3
    
    
    
    74.3$
    761.8
    
    
    $
    761.8
 (a)
    
    On September 25, 2008, the Company acquired the net assets of Gold Eagle pursuant to a
plan of arrangement. The mining interests of Gold Eagle are included in Red Lake (note
4(c)).(b)
    
    The Company recognized a $47.1 million before tax ($30.9 million after tax) write-down
of its mining interests at the Pamour open pit in Porcupine in the fourth quarter of 2008
as a result of a reduction in its proven and probable reserves by 1.4 million ounces of
gold as at December 31, 2008.(c)
    
    Included in the carrying amount is capitalized interest during the year ended December
31, 2009 of $nil (2008  $1.4 million; 2007  $10.9 million). Also included in the carrying
amount is the capitalized amount of $3.0 million relating to stock options vested during
the year ended December 31, 2009 (2008 and 2007  $nil) (note 18(b)).(d)
    
    Included in the net book value is San Martin which commenced reclamation activities in
October 2007.(e)
    
    The equity investments in these exploration/development stage properties have no
current operations. The carrying amounts represent the fair values of the properties at the
time they were acquired, plus subsequent expenditures which have been invested in property
development.(f)
    
    As a result of the transaction completed with Gleichen on February 24, 2010 (note
24(c)), the Company recognized a $24.0 million before tax ($17.3 million after tax)
write-down of its investment in the El Limón gold project during the fourth quarter of
2009. Of the $24.0 million, $33.3 million was applied against mining interests and the
offsetting $9.3 million was applied against the related future income tax liability.(g)
    
    At December 31, 2009, assets under construction and therefore not yet being
depreciated, included in the net book value of plant and equipment, amounted to $1,116.5
million (2008  $569.6 million).
 10.
    
    OTHER LONG-TERM ASSETS
 At December 31
    
    2009
    
    
    2008Reclamation deposits
    
    $
    3.0
    
    
    $
    4.8Sales/indirect taxes recoverable
    
    
    10.3
    
    
    
    11.3Other
    
    
    
    
    
    
    10.8$
    13.3
    
    
    $
    26.9




---



##### 



11.
    
    CURRENT AND LONG TERM DEBT
 At December 31
    
    2009
    
    
    2008Current debtC$40 million non-revolving term loan (a)
    
    $
    16.7
    
    
    $
    Long term debtC$40 million non-revolving term loan (a)
    
    $
    
    
    
    $
    5.3$862.5 million convertible senior notes (b)
    
    
    719.0
    
    
    
    $
    719.0
    
    
    $
    5.3
 (a)
    
    On July 8, 2008 Terrane entered into a credit agreement for an 18-month, non-revolving
term loan facility of up to C$40 million to further advance Terranes long lead-time
capital equipment procurement program in support of the construction of an open pit mine
and 60,000 tonnes per day processing plant at Terranes Mt. Milligan project. Under the
terms of the credit agreement, Goldcorp guaranteed the credit facility in exchange for a
one-time option to convert its equity interest in Terrane into a participating joint
venture interest in the Mt. Milligan project. The option expired unexercised on January 7,
2010. On January 7, 2010, the credit agreement was extended to May 7, 2010. During the
period from July 8, 2008 to December 31, 2009, Terrane drew down on the facility via 90 day
bankers acceptances and prime rate loans with weighted average annual effective interest
rates ranging from 1.1% to 4.1%. Interest incurred for the year ended December 31, 2009
amounted to $0.2 million (2008  $0.2 million). Terrane has a contractual right to continue
to roll over the short-term obligations for the term of the credit agreement and
accordingly the balance outstanding at December 31, 2008 was classified as a long-term
liability. The balance outstanding at December 31, 2009 with a weighted average annual
effective interest rate of 1.9% is classified as a current liability.(b)
    
    On June 5, 2009, the Company issued convertible senior notes (the notes or the
Companys notes) with an aggregate principal amount of $862.5 million. The notes are
unsecured and bear interest at an annual rate of 2.0% payable semi-annually in arrears on
February 1 and August 1 of each year, beginning on February 1, 2010, and mature on August
1, 2014.Holders of the notes may convert the notes at their option at any time during the period from
May 1, 2014 to the maturity date and at any time during the period from June 5, 2009 to May
1, 2014, subject to certain market and other conditions. The notes are convertible into the
Companys common shares at a conversion rate of 20.8407 common shares for every $1,000
principal amount of notes, subject to adjustment in certain events. Subject to satisfaction
of certain conditions, the Company may, upon conversion by the holder, elect to settle in
cash or a combination of cash and common shares. The notes are non-redeemable, except upon
occurrence of certain changes in Canadian withholding tax laws or a fundamental change.The notes are accounted for as compound financial instruments comprised of a liability and an
equity component. Of the total proceeds of $862.5 million, $703.4 million was allocated on
initial recognition to the liability component, representing the present value of the
Companys contractual obligation to make principal and interest payments using an annual
effective interest rate of 6.33%, being managements estimate of the interest rate available
on similar borrowings without the conversion feature at the time the notes were issued. The
remaining amount of $159.1 million was allocated on initial recognition to the equity
component, representing the value of the call options granting the holders the right to
convert into common shares of the Company. Total transaction costs of $22.7 million were
allocated in proportion to the allocation of proceeds. The amount allocated to the liability
component of $18.5 million was expensed on initial recognition and included in finance fees.The carrying amount of the liability is accreted to the face value of the notes over the term
of the notes. Accretion is included in interest expense during each period based on the
annual effective interest rate of 6.33% per annum. Interest expense for the year ended
December 31, 2009 amounted to $25.5 million, which includes $15.6 million of accretion.




---



##### 



(c)
    
    On May 18, 2007, the Company entered into a $1.5 billion revolving credit facility. The
revolving credit facility is unsecured and amounts drawn are required to be refinanced or
repaid on or by May 18, 2012. Effective June 1, 2009, amounts drawn incur interest at LIBOR
plus 0.25% to 0.70% per annum dependent upon the Companys debt ratings, increasing by an
additional 0.05% per annum if the total amount drawn under this facility exceeds $750
million. Undrawn amounts are subject to a 0.07% to 0.175% per annum commitment fee
dependent on the Companys debt ratings. There was no amount outstanding under this
facility at December 31, 2009 and 2008. A portion of the proceeds from issuance of the
notes on June 5, 2009 (note 11(b))was used to repay the outstanding balance of $355.0
million under this facility from draws made during the period from January 1, 2009 to June
5, 2009. There were no draws made under this facility subsequent to June 5, 2009.
 12.
    
    INCOME AND MINING TAXES
 Years ended December 31
    
    2009
    
    
    2008
    
    
    2007Current income and mining tax expense
    
    $
    278.7
    
    
    $
    138.1
    
    
    $
    203.6Future income and mining tax expense (recovery)
    
    
    (72.0
    )
    
    
    157.3
    
    
    
    (43.3
    )$
    206.7
    
    
    $
    295.4
    
    
    $
    160.3
  Years ended December 31
    
    2009
    
    
    2008
    
    
    2007Earnings from continuing operations before taxes and non-controlling interests
    
    $
    444.9
    
    
    $
    1,778.7
    
    
    $
    581.8Canadian federal and provincial income tax rates
    
    
    30.91
    %
    
    
    31.45
    %
    
    
    34.12
    %Income tax expense based on Canadian federal and provincial income tax rates
    
    
    137.5
    
    
    
    559.4
    
    
    
    198.5Increase (decrease) attributable to:Impact of foreign exchange on future income tax liabilities
    
    
    99.3
    
    
    
    (336.8
    )
    
    
    18.6Other impacts of foreign exchange
    
    
    46.9
    
    
    
    (72.3
    )
    
    
    Impact of change in tax rates on future income taxes (a)
    
    
    (13.9
    )
    
    
    
    
    
    
    (42.7
    )Provincial mining taxes
    
    
    39.2
    
    
    
    21.3
    
    
    
    28.0Mining taxes deduction
    
    
    (7.0
    )
    
    
    (4.3
    )
    
    
    (5.1
    )Resource allowance
    
    
    (16.4
    )
    
    
    (11.5
    )
    
    
    (8.1
    )Non-deductible expenditures
    
    
    22.5
    
    
    
    10.9
    
    
    
    12.4Use of Mexican flat tax credits(b)
    
    
    
    
    
    
    (37.8
    )
    
    
    Change in Mexican tax legislation (a)
    
    
    12.8
    
    
    
    
    
    
    
    Effects of different foreign statutory tax rates on earnings of subsidiaries
    
    
    (34.3
    )
    
    
    (28.4
    )
    
    
    (57.5
    )Impact of statutory tax rate versus actual rate
    
    
    (15.1
    )
    
    
    (4.6
    )
    
    
    (6.2
    )Non-taxable portion of realized capital gains
    
    
    (9.0
    )
    
    
    
    
    
    
    (1.8
    )Change in valuation allowance
    
    
    (28.5
    )
    
    
    10.0
    
    
    
    (8.0
    )Change in reserves for uncertain tax positions
    
    
    10.8
    
    
    
    6.9
    
    
    
    6.8Non-deductible asset write-down
    
    
    
    
    
    
    16.5
    
    
    
    Tax on disposition of Peak and Amapari mines
    
    
    
    
    
    
    
    
    
    
    33.5Tax on disposition of Silver Wheaton shares
    
    
    
    
    
    
    155.9
    
    
    
    Tax benefit of the harmonization of Ontario corporate income taxes with
Canadian federal income taxes
    
    
    (16.6
    )
    
    
    
    
    
    
    Other
    
    
    (21.5
    )
    
    
    10.2
    
    
    
    (8.1
    )$
    206.7
    
    
    $
    295.4
    
    
    $
    160.3




---



##### 



(a)
    
    The Mexican government approved its 2010 fiscal budget on December 15, 2009 which
included several significant changes to the Mexican income tax laws. The corporate income
tax rate is being increased from 28% to 30% for the period from January 1, 2010 through
December 31, 2012 and reduced to 29% in 2013 and back to 28% in 2014 and thereafter. As a
result, the Companys future income tax liabilities increased by $26.2 million in the
fourth quarter of 2009. In addition the Mexican government modified its consolidated tax
return rules such that the Company could only benefit from a maximum 5 year (formerly a
maximum 10 year) tax deferral of taxable income resulting from losses of companies within
the consolidated group reducing taxable income of other companies within the consolidated
group. Included with the changes to the consolidated tax return rules are provisions that
tax the Companys past consolidation benefits retroactively by estimating the tax benefits
of consolidation at December 31, 2009 and requiring the company to repay the benefits in
future years. This element of the changes to the consolidated tax return rules has
resulted in what the Company considers a double taxation of income earned by the
consolidated group. The Company has estimated that the income tax impact of this new
legislation at December 31, 2009 could potentially be $79.1 million, of which $7.9
million, $23.6 million, and $47.6 million would be payable evenly during the period 2013
to 2017, 2014 to 2018 and 2015 to 2019, respectively, without additional tax
restructuring. The Company has the ability and intends to execute a plan that is fully
within its control and solely at its discretion to merge two entities within the
consolidated group in 2013 which will reduce the estimated income tax impact to $12.8
million, of which $8.4 million and $4.4 million is payable evenly during the period 2015
to 2019 and 2018 to 2022, respectively. Accordingly, the Company has recorded an income
and mining taxes payable, classified as long-term, and a current income tax expense of
$12.8 million as at and for the year ended December 31, 2009. There is an expectation that
Mexico may publish technical corrections to certain aspects of the Tax Reform Bill in 2010
that could significantly reduce the amounts due from the Company as described above.
However, there is no assurance that Mexico will in fact publish such corrections, nor is
it clear what impact any corrections published will have on the Companys actual liability
under the new law. Although any ultimate outcome is uncertain, the Company intends to
contest the validity and effective date of the new legislation.The effective tax rate in 2009 also includes the impact of a reduction of future income tax
liabilities of $40.1 million resulting from Canadian provincial and federal income tax rate
reductions enacted in the fourth quarter of 2009.(b)
    
    Mexico introduced a flat tax (IETU tax) effective January 1, 2008 to replace the
previous asset tax as the minimum tax. The IETU tax is calculated on a cash flow basis,
with the tax base determined by reducing taxable revenue with specific deductions. In
general if deductions exceed revenues, a credit is granted which may be credited against
the IETU tax in the following years. Taxpayers first compute their income tax liability and
their IETU tax liability for a fiscal year. As the income tax liability may be credited
against the IETU tax liability, the IETU tax is payable only to the extent it exceeds the
income tax payable by a Mexican entity. During the year ended December 31, 2008, IETU tax
credits earned by a subsidiary reduced Mexican income taxes payable by the Company by $37.8
million. The ability to use IETU tax credits in the future to reduce income taxes was
eliminated with the Mexican tax law changes passed in 2009, effective 2010. No IETU tax
credits were used to reduce Mexican income taxes payable in 2009. In certain circumstances
IETU tax credits can be used to reduce income taxes in the year they are generated.




---



##### 



At December 31
    
    2009
    
    
    2008Future income and mining tax assetsUnused non-capital losses
    
    $
    36.5
    
    
    $
    95.9Investment tax credits
    
    
    24.4
    
    
    
    31.3Alternative minimum tax (AMT) credits
    
    
    7.5
    
    
    
    8.3Reclamation and closure cost obligations
    
    
    73.1
    
    
    
    67.0Mining interests
    
    
    1.7
    
    
    
    39.4Stock options
    
    
    13.7
    
    
    
    16.5Other
    
    
    25.8
    
    
    
    59.6Future income and mining tax assets
    
    
    182.7
    
    
    
    318.0Valuation allowance
    
    
    (8.9
    )
    
    
    (80.6
    )173.8
    
    
    
    237.4Future income and mining tax liabilitiesMining interests
    
    
    (3,701.6
    )
    
    
    (3,401.1
    )Other
    
    
    (151.7
    )
    
    
    (211.1
    )(3,853.3
    )
    
    
    (3,612.2
    )Future income and mining tax liabilities, net
    
    $
    (3,679.5
    )
    
    $
    (3,374.8
    )Presented on the Consolidated Balance Sheets as:Future income and mining tax assets  current
    
    $
    3.6
    
    
    $
    3.3Future income and mining tax liabilities  current
    
    
    (107.9
    )
    
    
    (181.5
    )Future income and mining tax liabilities  long-term
    
    
    (3,575.2
    )
    
    
    (3,196.6
    )Future income and mining tax liabilities, net
    
    $
    (3,679.5
    )
    
    $
    (3,374.8
    )
 Tax Loss Carryforwards, Investment Tax Credits, and AMT Credits
  Unused taxlossesand otherincome tax
    
    
    
    
    
    
    Valuationdeductions
    
    
    Future tax assets
    
    
    allowance
    
    
    Expiry datesUnused tax losses carryforwards:Canada
    
    $
    58.4
    
    
    $
    13.8
    
    
    $
    (0.6
    )
    
    2010 - 2029United States
    
    
    64.4
    
    
    
    21.9
    
    
    
    
    
    
    2013 - 2029Mexico
    
    
    2.9
    
    
    
    0.8
    
    
    
    (0.8
    )
    
    2010-2014125.7
    
    
    
    36.5
    
    
    
    (1.4
    )Investment tax credits:Canada
    
    
    24.4
    
    
    
    24.4
    
    
    
    
    
    
    2017 - 2029AMT credits:United States
    
    
    7.5
    
    
    
    7.5
    
    
    
    (7.5
    )
    
    No expiry dateTotal
    
    $
    157.6
    
    
    $
    68.4
    
    
    $
    (8.9
    )




---



##### 



13.
    
    RECLAMATION AND CLOSURE COST OBLIGATIONS
   2009
    
    
    2008Reclamation and closure cost obligations  beginning of year
    
    $
    284.5
    
    
    $
    267.7Reduction of liability on disposal of mining interests (note 4(b))
    
    
    
    
    
    
    (2.6
    )Reclamation expenditures
    
    
    (26.5
    )
    
    
    (17.8
    )Accretion expense, included in depreciation and depletion
    
    
    14.7
    
    
    
    13.8Revisions in estimates of required cash outflows and liabilities incurred
    
    
    33.8
    
    
    
    23.4Reclamation and closure cost obligations  end of year
    
    
    306.5
    
    
    
    284.5Less: current portion of reclamation and closure cost obligations,
included in accounts payable and accrued liabilities
    
    
    (24.5
    )
    
    
    (22.2
    )Long-term reclamation and closure cost obligations
    
    $
    282.0
    
    
    $
    262.3




---



##### 



14.
    
    EMPLOYEE PENSION PLANS
  Defined contribution pension plans
  Defined benefit pension plans
   2009
    
    
    2008Accrued benefit obligationBalance, beginning of year
    
    $
    24.1
    
    
    $
    29.7Benefit obligations assumed on acquisition of mining interests
    
    
    
    
    
    
    0.3Current service costs
    
    
    1.6
    
    
    
    1.8Past service costs
    
    
    
    
    
    
    1.6Interest costs
    
    
    1.5
    
    
    
    1.7Actuarial losses (gains), net
    
    
    2.6
    
    
    
    (9.8
    )Benefits paid
    
    
    (1.7
    )
    
    
    (1.2
    )Balance, end of year
    
    $
    28.1
    
    
    $
    24.1Fair value of plan assetsBalance, beginning of year
    
    $
    19.4
    
    
    $
    20.2Plan assets assumed on acquisition of mining interests
    
    
    
    
    
    
    0.3Actual return (loss) on plan assets, net
    
    
    1.8
    
    
    
    (2.6
    )Company contributions
    
    
    3.3
    
    
    
    2.7Benefits paid
    
    
    (1.7
    )
    
    
    (1.2
    )Balance, end of year
    
    $
    22.8
    
    
    $
    19.4Funded status  deficit
    
    
    (5.3
    )
    
    
    (4.7
    )Unrecognized net actuarial gains
    
    
    (2.9
    )
    
    
    (5.3
    )Unrecognized past service costs
    
    
    2.3
    
    
    
    2.7Accrued benefit liability at December 31(1)
    
    $
    (5.9
    )
    
    $
    (7.3
    )
 (1)
    
    Included in other long-term liabilities on the Consolidated Balance Sheets.




---



##### 



2009
    
    
    2008
    
    
    2007Costs arising in the yearCurrent service costs
    
    $
    1.6
    
    
    $
    1.8
    
    
    $
    1.3Interest costs
    
    
    1.5
    
    
    
    1.7
    
    
    
    1.1Actual loss (return) on plan assets, net
    
    
    (1.8
    )
    
    
    2.6
    
    
    
    (0.4
    )Actuarial losses (gains), net
    
    
    2.6
    
    
    
    (9.8
    )
    
    
    (0.7
    )Past service costs
    
    
    
    
    
    
    1.6
    
    
    
    0.6Costs arising in the year
    
    
    3.9
    
    
    
    (2.1
    )
    
    
    1.9Difference between costs arising in the period and costs recognized in the period in
respect of:Loss and return on plan assets
    
    
    0.6
    
    
    
    (4.0
    )
    
    
    (0.3
    )Actuarial losses and gains
    
    
    (2.9
    )
    
    
    9.8
    
    
    
    0.7Past service costs
    
    
    0.4
    
    
    
    (1.5
    )
    
    
    (0.6
    )Defined benefit pension expense recognized in earnings during the year (2)
    
    $
    2.0
    
    
    $
    2.2
    
    
    $
    1.7
 (2)
    
    Included in operating expenses in the Consolidated Statements of Earnings.
  2009
    
    2008
    
    2007Accrued benefit obligation:Discount rate
    
    5.7%  8%
    
    7.2%  8%
    
    5.5%  9%Rate of compensation increase
    
    4%  5%
    
    2%  11%
    
    4%  6%Defined benefit pension expense:Expected long-term rate of return on plan assets
    
    7.1%  8%
    
    7.1%  8%
    
    7.1%  9%Discount rate
    
    7.5%  8%
    
    5.5%  8%
    
    5%   9%
 Plan assets
   2009
    
    
    2008Equity securities
    
    
    44
    %
    
    
    43
    %Debt securities
    
    
    55
    %
    
    
    54
    %Cash and other investments
    
    
    1
    %
    
    
    3
    %
 Estimated future benefit payments
  2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015-2019Defined benefit plans
    
    
    1.5
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    1.5
    
    
    
    1.5
    
    
    
    9.6




---



##### 



15.
    
    FINANCIAL INSTRUMENTS
 (a)
    
    Financial assets and liabilities
  Classification of financial assets and liabilities
   (note 11(b) )
 Fair value measurements of financial assets and liabilities recognized in the balance sheet
 (note 3)




---



##### 



Level 1
    
    
    Level 2Cash and cash equivalents
    
    $
    874.6
    
    
    $
    Marketable securities
    
    
    24.9
    
    
    
    Accounts receivable arising from sales of metal concentrates
    
    
    
    
    
    
    123.0Investments in warrants
    
    
    2.1
    
    
    
    0.2Investments in equity securities
    
    
    388.0
    
    
    
    Current derivative assets (note 10 and 15(a))
    
    
    
    
    
    
    8.1Current derivative liabilities (note 15(a))
    
    
    
    
    
    
    (11.4
    )
  Fair values of financial assets and liabilities not already measured and recognized at fair
value in the balance sheet
 (note 11(a) )
 note 11(b)
 Marketable securities and investments
  At December 31
    
    2009
    
    
    2008Marketable securitiesMarketable securities  available-for-sale
    
    $
    24.9
    
    
    $
    8.6InvestmentsEquity securities  available-for-sale
    
    $
    388.0
    
    
    $
    72.2Warrants  held-for-trading
    
    
    2.3
    
    
    
    1.2$
    390.3
    
    
    $
    73.4




---



##### 



Years ended December 31
    
    2009
    
    
    2008
    
    
    2007Available-for-sale securitiesMarketable securities
    
    $
    16.3
    
    
    $
    (17.2
    )
    
    $
    11.8Investments in equity securities
    
    
    185.2
    
    
    
    (106.2
    )
    
    
    16.8$
    201.5
    
    
    $
    (123.4
    )
    
    
    28.6Future tax recovery (expense) in OCI
    
    
    (16.6
    )
    
    
    (0.6
    )
    
    
    7.8Mark-to-market gains (losses) in OCI
    
    
    184.9
    
    
    
    (124.0
    )
    
    
    36.4Reclassification adjustment for realized gains included in
net earnings, net of tax  $nil (2008 - $nil; 2007 - $1.2
million)
    
    
    (43.0
    )
    
    
    (0.2
    )
    
    
    (21.1
    )Reclassification adjustment for unrealized impairment losses
included in net earnings, net of tax  $nil
    
    
    
    
    
    
    111.2
    
    
    
    Adjustment arising from acquisition of Gold Eagle (note 4(c))
    
    
    
    
    
    
    (29.2
    )
    
    
    Adjustment arising from disposition of Silver Wheaton shares
(note 4(d))
    
    
    
    
    
    
    (17.7
    )
    
    
    Non-controlling interests
    
    
    
    
    
    
    (1.3
    )
    
    
    (1.3
    )$
    141.9
    
    
    $
    (61.2
    )
    
    
    14.0
 (note 4(f) )




---



##### 



2009
    
    
    2008
    
    
    2007Gains (losses)
    
    
    Gains (losses) in
    
    
    Losses in netWarrants  held for trading
    
    in net earnings
    
    
    net earnings
    
    
    earningsRealized gains (losses)
    
    $
    6.3
    
    
    $
    7.5
    
    
    $
    (5.6
    )Unrealized mark-to- market
gains (losses) on
outstanding warrants
and reversal of
mark-to-market losses
(gains) on exercised
warrants
    
    
    (13.7
    )
    
    
    (2.4
    )
    
    
    (10.0
    )$
    7.4
    
    
    $
    5.1
    
    
    
    (15.6
    )
 Derivative instruments
 (i) Foreign currency, heating oil and copper contracts
  1.
    
    Canadian dollar call options held to sell $12.0 million at 1.15 to the US dollar;2.
    
    Canadian dollar put options written to buy $12.0 million at 1.18 to the US
dollar;3.
    
    Mexican peso forward contracts to sell $48.0 million at 13.98 to the US dollar;4.
    
    Mexican peso call options held to sell $72.0 million at 13.33 to the US dollar;
and5.
    
    Mexican peso put options written to buy $72.0 million at 15.01 to the US dollar.
   1.
    
    Forward contracts to sell 11.6 million pounds at an average price of $2.95 per
pound;2.
    
    Options held to sell 15.9 million pounds at an average price of $2.79 per pound;
and3.
    
    Options written to buy 15.9 million pounds at an average price of $3.14 per
pound.




---



##### 



2009
    
    
    2008Current derivative assets, included in other current assets (note 10)Foreign currency contracts
    
    $
    6.6
    
    
    $
    Heating oil forward contracts
    
    
    0.2
    
    
    
    Copper contracts
    
    
    1.3
    
    
    
    8.1
    
    
    
    Current derivative liabilities
    
    
    
    
    
    
    Foreign currency contracts
    
    
    (1.2
    )
    
    
    Copper contracts
    
    
    (10.2
    )
    
    
    (11.4
    )
    
    
    $
    (3.3
    )
    
    $
    
 2009
    
    
    2008
    
    
    2007Realized gains (losses) on matured contracts
    
    $
    6.9
    
    
    $
    (10.2
    )
    
    $
    (19.9
    )Unrealized mark-to-market gains (losses) on
outstanding contracts and reversal of
mark-to-market losses (gains) on matured
contracts
    
    
    (3.3
    )
    
    
    7.6
    
    
    
    (3.6
    )Gain (loss) on non-hedge derivatives, net
    
    $
    3.6
    
    
    $
    (2.6
    )
    
    $
    (23.5
    )
 (ii) Embedded derivatives




---



##### 



(b)
    
    Financial instrument risk exposure
   Credit risk
    2009
    
    
    2008Cash and cash equivalents
    
    $
    874.6
    
    
    $
    262.3Accounts receivable
    
    
    232.6
    
    
    
    178.6Current derivative assets (note 15(a))
    
    
    8.1
    
    
    
    $
    1,115.3
    
    
    $
    440.9
 Liquidity risk




---



##### 



(note 11(c) ) (note 11(a) )
  2009
    
    
    2008Within 1
    
    
    2 to 3
    
    
    4 to 5
    
    
    Over 5year
    
    
    years
    
    
    years
    
    
    years
    
    
    Total
    
    
    TotalAccounts payable and accrued liabilities
    
    $
    382.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    382.0
    
    
    $
    282.6Current derivative liabilities (note 15(a))
    
    
    11.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11.4
    
    
    
    Debt re-payments (principal portion)
(notes 11(a)&(b))
    
    
    16.7
    
    
    
    
    
    
    
    862.5
    
    
    
    
    
    
    
    879.2
    
    
    
    5.3Interest payments on convertible senior
notes (note 11(b))
    
    
    19.9
    
    
    
    34.5
    
    
    
    34.5
    
    
    
    
    
    
    
    88.9
    
    
    
    Capital expenditure commitments
    
    
    132.6
    
    
    
    39.7
    
    
    
    
    
    
    
    
    
    
    
    172.3
    
    
    
    294.1Minimum rental and lease payments
    
    
    2.0
    
    
    
    3.3
    
    
    
    3.2
    
    
    
    3.0
    
    
    
    11.5
    
    
    
    11.4Reclamation and closure cost obligations
    
    
    24.5
    
    
    
    23.6
    
    
    
    17.8
    
    
    
    457.6
    
    
    
    523.5
    
    
    
    482.9$
    589.1
    
    
    $
    101.1
    
    
    $
    918.0
    
    
    $
    460.6
    
    
    $
    2,068.8
    
    
    $
    1,076.3
  (notes 24(a) and (b)) (note 11(c) ).
  Market Risk
 (i) Currency risk




---



##### 



Accountsreceivableand other
    
    
    Income and
    
    
    Accountscurrent and
    
    
    mining taxes
    
    
    payable and
    
    
    
    
    
    
    FutureCash and cash
    
    
    long-term
    
    
    receivable
    
    
    accrued
    
    
    Current
    
    
    income tax2009
    
    equivalents
    
    
    assets
    
    
    (payable)
    
    
    liabilities
    
    
    debt
    
    
    liabilitiesCanadian dollar
    
    $
    4.0
    
    
    $
    10.8
    
    
    $
    (167.5
    )
    
    $
    (152.0
    )
    
    $
    (16.7
    )
    
    $
    (1,216.9
    )Mexican peso
    
    
    9.5
    
    
    
    86.1
    
    
    
    3.2
    
    
    
    (128.9
    )
    
    
    
    
    
    
    (2,371.7
    )Argentinean peso
    
    
    1.0
    
    
    
    17.8
    
    
    
    (49.8
    )
    
    
    (55.5
    )
    
    
    
    
    
    
    (107.5
    )Guatemalan quetzal
    
    
    3.5
    
    
    
    12.1
    
    
    
    
    
    
    
    (23.3
    )
    
    
    
    
    
    
    (12.3
    )$
    18.0
    
    
    $
    126.8
    
    
    $
    (214.1
    )
    
    $
    (359.7
    )
    
    $
    (16.7
    )
    
    $
    (3,708.4
    )
 Accountsreceivable and
    
    
    Income and
    
    
    Accountsother current
    
    
    mining taxes
    
    
    payable and
    
    
    
    
    
    
    FutureCash and cash
    
    
    and long-term
    
    
    receivable
    
    
    accrued
    
    
    Long term
    
    
    income tax2008
    
    equivalents
    
    
    assets
    
    
    (payable)
    
    
    liabilities
    
    
    Debt
    
    
    liabilitiesCanadian dollar
    
    $
    4.7
    
    
    $
    13.9
    
    
    $
    (6.8
    )
    
    $
    (115.4
    )
    
    $
    (5.3
    )
    
    $
    (1,059.5
    )Mexican peso
    
    
    19.5
    
    
    
    87.8
    
    
    
    17.8
    
    
    
    (104.1
    )
    
    
    
    
    
    
    (2,174.3
    )Argentinean peso
    
    
    1.3
    
    
    
    34.4
    
    
    
    13.3
    
    
    
    (35.0
    )
    
    
    
    
    
    
    (139.3
    )Guatemalan quetzal
    
    
    1.2
    
    
    
    11.2
    
    
    
    
    
    
    
    (13.3
    )
    
    
    
    
    
    
    (4.6
    )$
    26.7
    
    
    $
    147.3
    
    
    $
    24.3
    
    
    $
    (267.8
    )
    
    $
    (5.3
    )
    
    $
    (3,377.7
    )
  (note 15(a) )
 (ii) Interest rate risk




---



##### 



(iii) Price risk
 (note 15(a) )
  16.
    
    MANAGEMENT OF CAPITAL
   At December 31
    
    2009
    
    
    2008Equity
    
    $
    15,493.2
    
    
    $
    14,959.1Current and long-term debt
    
    
    735.7
    
    
    
    5.316,228.9
    
    
    
    14,964.4Less: cash and cash equivalents
    
    
    (874.6
    )
    
    
    (262.3
    )$
    15,354.3
    
    
    $
    14,702.1




---



##### 



(note 15(b) )
 17.
    
    NON-CONTROLLING INTERESTS
 SilverWheaton(a)
    
    
    Terrane (b)
    
    
    TotalAt January 1, 2008
    
    $
    403.3
    
    
    $
    46.3
    
    
    $
    449.6Increase in non-controlling interests
    
    
    
    
    
    
    4.5
    
    
    
    4.5Share of net earnings
    
    
    7.3
    
    
    
    0.4
    
    
    
    7.7Disposition of Silver Wheaton shares (note 4(d))
    
    
    (410.6
    )
    
    
    
    
    
    
    (410.6
    )At December 31, 2008
    
    $
    
    
    
    $
    51.2
    
    
    $
    51.2Increase in non-controlling interests
    
    
    
    
    
    
    1.9
    
    
    
    1.9Share of net loss
    
    
    
    
    
    
    (2.0
    )
    
    
    (2.0
    )At December 31, 2009
    
    $
    
    
    
    $
    51.1
    
    
    $
    51.1
 (a)
    
    Silver WheatonAs a result of the acquisition of Wheaton River Minerals Ltd. (Wheaton) on February 14,
2005, Goldcorp acquired Wheatons 65% ownership of its subsidiary, Silver Wheaton. Following
various share issuances by Silver Wheaton, Goldcorps interest in Silver Wheaton declined to
49% at January 1, 2007.Additional share issuances by Silver Wheaton during 2007 from the exercise of stock options
and warrants outstanding decreased Goldcorps interest from 49% to 48% at December 31, 2007
and resulted in a dilution gain of $1.1 million recognized in earnings during the year ended
December 31, 2007. The Company continued to consolidate Silver Wheaton in 2007 as it
maintained control of Silver Wheaton due to the influence it exerted on the board of
directors.In the first quarter of 2008, prior to the disposition of Silver Wheaton shares on February
14, 2008 (note4(d)), stock options, warrants and RSUs held by non-controlling interests
were exercised and resulted in a 0.1% dilution in Goldcorps interest and a dilution gain of
$1.8 million. The non-controlling interests share of Silver Wheatons net earnings for 2008,
prior to Goldcorps disposition of its Silver Wheaton shares, amounted to $7.3 million (year
ended December 31, 2007  $47.0 million).Related party transactions:In the first quarter of 2008, prior to Goldcorps disposition of its Silver Wheaton shares,
Silver Wheaton purchased approximately 841,000 ounces (year ended December 31, 2007  6.9
million ounces) of silver from a Goldcorp subsidiary at a price of $3.95 per ounce for total
consideration of approximately $3.3 million (year ended December 31, 2007  $27.0 million).
Silver Wheaton also had an agreement with Goldcorp whereby the Company provided certain
management and administrative services at cost. During the year ended December 31, 2008,
total management fees paid to the Company were $0.1 million (2007  $0.2 million). This
agreement was cancelled during the third quarter of 2008.




---



##### 



(b)
    
    Terrane Metals Corp.On July 24, 2006, the Company disposed of its interest in the Mt Milligan and certain other
Canadian exploration interests to Terrane. In consideration for the exploration interests,
the Company received 240 million convertible Series A preferred shares at a price of C$0.50
per share. The preferred shares are convertible into common shares of Terrane at the option
of Goldcorp at any time without any further consideration. Upon acquisition, on an
as-converted basis, Goldcorp would own an 81% equity interest in Terranes issued and
outstanding shares. The preferred shares are not entitled to dividends, are non-transferable
without the prior written consent of Terrane, are non-redeemable, non-retractable, non-voting
and if not previously converted will be automatically converted into common shares on the
20th anniversary of their issuance.Following the issuance of common shares and common share purchase warrants in a private
placement on November 3, 2006, Goldcorps interest in Terrane declined to 77% at January 1,
2007.On June 21, 2007, Terrane closed a C$25 million public offering of 30.8 million common shares
at a price of C$0.65 per share and 6.25 million flow-through shares at a price of C$0.80 per
share. On July 23, 2007, Terrane closed a private placement of 5.6 million common shares at a
price of C$0.65 per share for gross proceeds of C$3.6 million. These transactions resulted in
a decrease in Goldcorps interest in Terrane from 77% to 68%. This dilution of the Companys
interest gave rise to an increase in non-controlling interests of $20.1 million and a
dilution gain of $8.9 million.During the third quarter of 2008, Terrane closed a private placement of 10.0 million flow
through common shares at a price of C$0.55 per share for gross proceeds of C$5.5 million. The
private placement in addition to issuances of common shares from exercises of stock options
outstanding resulted in a decrease in Goldcorps interest in Terrane from 68% to 66%. This
dilution of the Companys interest, in addition to the renouncement of the income tax
benefits relating to the flow through shares issued by Terrane in 2007, gave rise to an
increase in non-controlling interests of $4.5 million and a net dilution gain of $0.4
million.During the first quarter of 2009, Terrane renounced the income tax benefits relating to the
C$5.5 million flow through shares issued in the third quarter of 2008. The amount renounced
is reduced from Terranes share capital as share issue costs which resulted in a reversal of
previously recorded dilution gains of $0.7 million. During the fourth quarter of 2009,
Terrane issued 4.8 million common shares resulting from exercises of stock options and common
share purchase warrants outstanding. This resulted in a decrease in Goldcorps interest in
Terrane from 66% to 65% and gave rise to an increase in non-controlling interests of $1.9
million and a dilution gain of $0.4 million. The non-controlling interests share of
Terranes net loss during the year ended December 31, 2009 was $2.0 million (2008  share of
net earnings of $0.4 million; 2007  share of net loss of $0.9 million).
 18.
    
    SHAREHOLDERS EQUITY
  (a)
    
    Share purchase warrantsAt December 31, 2009 and 2008, the Company had a total of 9.2 million warrants outstanding.
Of the 9.2 million warrants outstanding, 8.4 million which were issued in 2006, entitle the
holders to purchase at any time one common share of Goldcorp at an exercise price of C$45.75
per share and expire on June 9, 2011. These warrants are trading on the Toronto Stock
Exchange (TSX) and New York Stock Exchange. The remaining 0.8 million warrants which were
issued by Goldcorp pursuant to the acquisition of Gold Eagle in 2008 (note4(c)), entitle
holders to purchase at any time one common share of Goldcorp at an exercise price of C$34.76
and expire on June 26, 2011.There were no warrants exercised during the years ended December 31, 2009 and 2008. Warrants
exercised during the year ended December 31, 2007 were nominal.




---



##### 



(b)
    
    Stock options and Restricted share unitsStock options:The Company has a 2005 Stock Option Plan which allows for up to 32.5 million stock options
(2008  32.5 million; 2007  12.5 million) with a maximum exercise period of five years (2008
  5 years; 2007  10 years) to be granted to employees and officers. Of the 14.1 million
stock options outstanding at December 31, 2009, 12.7 million relate to options granted under
the 2005 Stock Option Plan.The Company granted 5.0 million stock options during the year ended December 31, 2009 which
vest over three years, are exercisable at C$35.62 to C$39.36 per option, expire in 2014 and
have a total fair value of $49.9 million at the date of grant. The Company granted 4.5
million stock options during the year ended December 31, 2008, which vest over a period of
three years, are exercisable at C$39.77 per option, expire in 2013 and have a total fair
value of $49.4 million at the date of grant. The Company granted 3.9 million stock options
during the year ended December 31, 2007 which vest over a period of two years, are
exercisable at prices ranging from C$24.40 to C$25.71 per option, expire in 2017 and have a
total fair value of $22.7 million at the date of grant.The fair value of the stock options granted is calculated on the date of grant using the
Black-Scholes option pricing model with the following weighted average assumptions:
 Years ended December 31
    
    2009
    
    
    2008
    
    
    2007Expected life (years)
    
    
    2.7
    
    
    
    3.6
    
    
    
    3.0Expected volatility
    
    
    52
    %
    
    
    35
    %
    
    
    30
    %Expected dividend yield
    
    
    <1
    %
    
    
    <1
    %
    
    
    <1
    %Risk-free interest rate
    
    
    2.0
    %
    
    
    2.9
    %
    
    
    4.4
    %Stock options granted (millions)
    
    
    5.0
    
    
    
    4.5
    
    
    
    3.9Weighted average fair value per option
    
    $
    9.97
    
    
    $
    11.42
    
    
    $
    5.77
   WeightedAverageOptions
    
    
    ExerciseOutstanding
    
    
    Price(000s)
    
    
    (C$/option)At January 1, 2007
    
    
    15,199
    
    
    $
    19.16Granted
    
    
    3,939
    
    
    
    25.65Exercised
    
    
    (4,645
    )
    
    
    15.17Cancelled
    
    
    (468
    )
    
    
    24.44At December 31, 2007
    
    
    14,025
    
    
    $
    22.12Granted
    
    
    4,520
    
    
    
    39.77Issued on acquisition of Gold Eagle (note 4(c))
    
    
    569
    
    
    
    27.65Exercised
    
    
    (5,392
    )
    
    
    20.25Cancelled
    
    
    (451
    )
    
    
    31.78At December 31, 2008
    
    
    13,271
    
    
    $
    28.85Granted
    
    
    5,003
    
    
    
    35.73Exercised
    
    
    (3,664
    )
    
    
    24.20Cancelled
    
    
    (541
    )
    
    
    37.70At December 31, 2009
    
    
    14,069
    
    
    $
    32.16




---



##### 



Options Outstanding
    
    
    Options ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedWeighted
    
    
    Average
    
    
    Options
    
    
    Weighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    Outstanding
    
    
    Average
    
    
    RemainingOptions
    
    
    Exercise
    
    
    Contractual
    
    
    and
    
    
    Exercise
    
    
    ContractualOutstanding
    
    
    Price
    
    
    Life
    
    
    Exercisable
    
    
    Price
    
    
    LifeExercise Price (C$/option)
    
    (000s)
    
    
    (C$/option)
    
    
    (years)
    
    
    (000s)
    
    
    (C$/option)
    
    
    (years)$3.25
    
    
    5
    
    
    $
    3.25
    
    
    
    0.2
    
    
    
    5
    
    
    $
    3.25
    
    
    
    0.2$8.06 - $10.45
    
    
    152
    
    
    
    10.45
    
    
    
    0.4
    
    
    
    152
    
    
    
    10.45
    
    
    
    0.4$12.52 - $14.94
    
    
    180
    
    
    
    12.67
    
    
    
    1.2
    
    
    
    180
    
    
    
    12.67
    
    
    
    1.2$16.87 - $19.23
    
    
    1,973
    
    
    
    18.73
    
    
    
    5.0
    
    
    
    1,973
    
    
    
    18.73
    
    
    
    5.0$23.80 - $26.76
    
    
    1,807
    
    
    
    25.65
    
    
    
    6.0
    
    
    
    1,807
    
    
    
    25.65
    
    
    
    6.0$28.84 - $31.93
    
    
    1,045
    
    
    
    30.95
    
    
    
    6.4
    
    
    
    1,045
    
    
    
    30.95
    
    
    
    6.4$33.60 - $37.82
    
    
    5,075
    
    
    
    35.59
    
    
    
    4.5
    
    
    
    226
    
    
    
    33.86
    
    
    
    6.6$39.36 - $39.77
    
    
    3,832
    
    
    
    39.76
    
    
    
    3.4
    
    
    
    1,156
    
    
    
    39.77
    
    
    
    1.314,069
    
    
    $
    32.16
    
    
    
    4.5
    
    
    
    6,544
    
    
    $
    26.46
    
    
    
    4.7
      (note 9(c) )
 (c)
    
    Employee share purchase planIn July 2007, the Company introduced an Employee Share Purchase Plan which allows Goldcorp
employees in Canada to purchase the Companys common shares through payroll deductions.
Employees may contribute up to 6% of their eligible
earnings and the Company matches 50% of these contributions. Compensation expense,
representing the Companys contributions measured based on the market price of the underlying
common shares at the date of contribution, was $2.7 million during the year ended December
31, 2009 (2008  $2.5 million; 2007  $1.1 million).




---



##### 



(d)
    
    Diluted net earnings per shareDiluted net earnings per share is calculated based on the following weighted-average number
of shares outstanding for the years ended December 31:
 (in thousands)
    
    2009
    
    
    2008
    
    
    2007Basic weighted-average number of shares outstanding
    
    
    731,306
    
    
    
    711,862
    
    
    
    704,868Effect of dilutive securities:Stock options
    
    
    2,747
    
    
    
    3,164
    
    
    
    3,614Restricted share units
    
    
    406
    
    
    
    370
    
    
    
    238Share purchase warrants
    
    
    105
    
    
    
    38
    
    
    
    Diluted weighted-average number of shares outstanding
    
    
    734,564
    
    
    
    715,434
    
    
    
    708,720
  (in thousands)
    
    2009
    
    
    2008
    
    
    2007Stock options
    
    
    
    
    
    
    4,351
    
    
    
    2,958Share purchase warrants
    
    
    8,439
    
    
    
    8,439
    
    
    
    8,439
 (note 11(b) )
 2009Effect of convertible senior notes on diluted net earnings:Interest expensed during the period, net of tax
    
    
    22.3Effect of convertible senior notes on diluted weighted average
number of shares outstanding (in thousands)
    
    
    10,342
 19.
    
    ACCUMULATED OTHER COMPREHENSIVE INCOME
 At December 31
    
    2009
    
    
    2008Accumulated other comprehensive incomeUnrealized foreign exchange translation adjustment
    
    $
    101.9
    
    
    $
    101.9Mark-to-market gains (losses) on available-for-sale
marketable securities and investments, net of tax of
$17.3 million (2008 - $0.7 million) (note 15(a))
    
    
    136.9
    
    
    
    (5.0
    )$
    238.8
    
    
    $
    96.9




---



##### 



20.
    
    INTERESTS IN JOINT VENTURES
 (note 4(e) )
  Years ended December 31
    
    2009
    
    
    2008
    
    
    2007(1)(2)Proportionate Statements of Joint Venture EarningsRevenues
    
    $
    594.5
    
    
    $
    572.1
    
    
    $
    866.3Operating expenses
    
    
    (325.9
    )
    
    
    (336.9
    )
    
    
    (474.3
    )Depreciation and depletion
    
    
    (84.9
    )
    
    
    (85.7
    )
    
    
    (128.6
    )Exploration expense
    
    
    (2.7
    )
    
    
    (2.1
    )
    
    
    (4.1
    )Other income (expenses)
    
    
    (7.6
    )
    
    
    8.0
    
    
    
    12.3Income and mining taxes
    
    
    (47.9
    )
    
    
    (40.5
    )
    
    
    (69.6
    )Net earnings
    
    $
    125.5
    
    
    $
    114.9
    
    
    $
    202.0Proportionate Statements of Joint Venture Cash FlowsOperating activities
    
    $
    214.8
    
    
    $
    125.4
    
    
    $
    193.6Investing activities
    
    
    (41.9
    )
    
    
    (35.7
    )
    
    
    (85.5
    )Financing activities
    
    
    (154.2
    )
    
    
    (101.0
    )
    
    
    (295.4
    )Increase (decrease) in cash and cash equivalents
    
    $
    18.7
    
    
    $
    (11.3
    )
    
    $
    (187.3
    )
 At December 31
    
    2009
    
    
    2008Proportionate Joint Venture Balance SheetsCurrent assets
    
    $
    267.3
    
    
    $
    186.6Mining interests
    
    
    730.7
    
    
    
    772.5Other assets
    
    
    64.3
    
    
    
    69.1$
    1,062.3
    
    
    $
    1,028.2Current liabilities
    
    $
    115.1
    
    
    $
    40.8Long-term liabilities
    
    
    60.7
    
    
    
    60.7Future income and mining taxes
    
    
    147.9
    
    
    
    173.9Reclamation and closure cost obligations
    
    
    38.6
    
    
    
    35.8Goldcorps investment carrying value
    
    
    700.0
    
    
    
    717.0$
    1,062.3
    
    
    $
    1,028.2
 (1)
    
    Includes the Companys proportionate share of Porcupine and Musselwhites net earnings
and cash flows to December 21, 2007.(2)
    
    Excludes La Coipa, which has been reclassified as a discontinued operation (note 6).(3)
    
    Included in total capital commitments at December 31, 2009 (note 15(b))are $0.9
million relating to Alumbrera.




---



##### 



21.
    
    SUPPLEMENTAL CASH FLOW INFORMATION
 Years ended December 31
    
    Note
    
    2009
    
    
    2008
    
    
    2007Change in non-cash operating working capitalAccounts receivable
    
    
    
    $
    (53.3
    )
    
    $
    (52.8
    )
    
    $
    (71.0
    )Income and mining taxes receivable
    
    
    
    
    (33.2
    )
    
    
    0.2
    
    
    
    (1.6
    )Inventories and stockpiled ore
    
    
    
    
    (80.3
    )
    
    
    (36.5
    )
    
    
    (34.4
    )Accounts payable and accrued liabilities
    
    
    
    
    116.5
    
    
    
    15.5
    
    
    
    43.5Income and mining taxes payable
    
    
    
    
    141.3
    
    
    
    10.3
    
    
    
    (151.9
    )Other
    
    
    
    
    (1.0
    )
    
    
    (3.9
    )
    
    
    1.4$
    90.0
    
    
    $
    (67.2
    )
    
    $
    (214.0
    )Acquisitions, net of cash acquiredGold Eagle
    
    4(c)
    
    $
    
    
    
    $
    (553.0
    )
    
    $
    Porcupine and Musselwhite
    
    4(e)
    
    
    
    
    
    
    
    
    
    
    (204.9
    )$
    
    
    
    $
    (553.0
    )
    
    $
    (204.9
    )Non-cash investing and financing activitiesShares received on disposition of mining interests
    
    4(a) & (g)
    
    $
    6.1
    
    
    $
    
    
    
    $
    2.0Shares received on conversion of warrants
    
    
    
    
    13.2
    
    
    
    7.5
    
    
    
    Addition to mining interests under capital lease
    
    
    
    
    8.5
    
    
    
    
    
    
    
    Shares, options and warrants issued on acquisition of Gold Eagle
    
    4(c)
    
    
    
    
    
    
    550.6
    
    
    
    Disposition of original Gold Eagle shares
owned prior to the acquisition of Gold Eagle
    
    4(c)
    
    
    
    
    
    
    26.7
    
    
    
    Assumption of reclamation and closure cost obligations by purchaser
on disposition of mining interests
    
    4(b) & 13
    
    
    
    
    
    
    2.6
    
    
    
    Disposition of interest in La Coipa as partial consideration for
acquisition of full ownership interest in Porcupine and Musselwhite
    
    4(e)
    
    
    
    
    
    
    
    
    
    
    100.0Shares received on disposition of Amapari and Peak mines
    
    4(f)
    
    
    
    
    
    
    
    
    
    
    100.0Donation of marketable securities
    
    
    
    
    
    
    
    
    
    
    
    
    6.4Operating activities included the following cash payments:Income and mining taxes paid
    
    
    
    $
    93.1
    
    
    $
    152.3
    
    
    $
    286.4Interest paid
    
    
    
    
    2.5
    
    
    
    7.8
    
    
    
    54.4Cash and cash equivalents at December 31 is comprised of:Cash
    
    
    
    $
    136.1
    
    
    $
    130.7
    
    
    $
    116.9Short-term money market investments
    
    
    
    
    738.5
    
    
    
    131.6
    
    
    
    393.9$
    874.6
    
    
    $
    262.3
    
    
    $
    510.8




---



##### 



22.
    
    SEGMENTED INFORMATION
  Expendituresfor miningEarnings
    
    
    interestsDepreciation
    
    
    (loss) from
    
    
    (includingRevenues
    
    
    and depletion
    
    
    operations
    
    
    deposits)
    
    
    Total assetsAt December 31,Year ended December 31, 2009
    
    
    2009Red Lake
    
    $
    624.8
    
    
    $
    101.1
    
    
    $
    329.2
    
    
    $
    109.8
    
    
    $
    3,209.4Porcupine (1)
    
    
    310.2
    
    
    
    69.9
    
    
    
    88.7
    
    
    
    37.6
    
    
    
    468.3Musselwhite(1)
    
    
    225.5
    
    
    
    30.4
    
    
    
    52.1
    
    
    
    78.9
    
    
    
    411.9Éléonore
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    66.6
    
    
    
    904.4Terrane
    
    
    
    
    
    
    
    
    
    
    (5.0
    )
    
    
    7.9
    
    
    
    200.3San Dimas
    
    
    128.6
    
    
    
    6.1
    
    
    
    61.0
    
    
    
    22.1
    
    
    
    137.7Los Filos
    
    
    236.2
    
    
    
    45.7
    
    
    
    72.9
    
    
    
    72.8
    
    
    
    936.2El Sauzal
    
    
    198.7
    
    
    
    88.5
    
    
    
    66.1
    
    
    
    6.3
    
    
    
    268.8Peñasquito
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    521.8
    
    
    
    10,517.9Mexican exploration projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167.3Marlin
    
    
    331.8
    
    
    
    79.5
    
    
    
    136.9
    
    
    
    41.3
    
    
    
    884.8Alumbrera
    
    
    495.5
    
    
    
    70.1
    
    
    
    158.9
    
    
    
    12.6
    
    
    
    780.6Marigold
    
    
    99.0
    
    
    
    14.8
    
    
    
    22.0
    
    
    
    29.3
    
    
    
    281.8Wharf
    
    
    70.9
    
    
    
    7.6
    
    
    
    12.2
    
    
    
    1.6
    
    
    
    68.4Cerro Blanco
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12.1
    
    
    
    62.2Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    329.4
    
    
    
    587.1El Limón
    
    
    
    
    
    
    
    
    
    
    (24.0
    )
    
    
    0.3
    
    
    
    56.8Other(2)
    
    
    2.4
    
    
    
    12.5
    
    
    
    (155.0
    )
    
    
    6.0
    
    
    
    1,004.8Total
    
    $
    2,723.6
    
    
    $
    526.2
    
    
    $
    816.0
    
    
    $
    1,356.4
    
    
    $
    20,948.7
 At December 31,Year ended December 31, 2008
    
    
    2008Red Lake
    
    $
    535.8
    
    
    $
    95.4
    
    
    $
    231.5
    
    
    $
    99.6
    
    
    $
    3,202.2Porcupine (1)
    
    
    255.6
    
    
    
    63.9
    
    
    
    (34.2
    )
    
    
    46.2
    
    
    
    479.6Musselwhite(1)
    
    
    184.6
    
    
    
    25.8
    
    
    
    21.2
    
    
    
    31.2
    
    
    
    349.2Éléonore
    
    
    
    
    
    
    
    
    
    
    (2.3
    )
    
    
    99.0
    
    
    
    844.6Terrane
    
    
    
    
    
    
    
    
    
    
    (6.5
    )
    
    
    18.0
    
    
    
    194.2San Dimas
    
    
    92.6
    
    
    
    5.8
    
    
    
    30.0
    
    
    
    32.2
    
    
    
    94.0Los Filos
    
    
    189.2
    
    
    
    42.2
    
    
    
    58.3
    
    
    
    49.5
    
    
    
    896.2El Sauzal
    
    
    239.3
    
    
    
    100.4
    
    
    
    96.1
    
    
    
    8.4
    
    
    
    316.9Peñasquito
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    751.9
    
    
    
    9,911.4Mexican exploration projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167.3Marlin
    
    
    258.1
    
    
    
    61.6
    
    
    
    100.0
    
    
    
    35.3
    
    
    
    863.7Alumbrera
    
    
    490.7
    
    
    
    75.3
    
    
    
    135.3
    
    
    
    22.6
    
    
    
    778.5Marigold
    
    
    81.4
    
    
    
    10.4
    
    
    
    12.1
    
    
    
    14.6
    
    
    
    249.7Wharf
    
    
    57.2
    
    
    
    3.6
    
    
    
    19.7
    
    
    
    10.3
    
    
    
    65.5Cerro Blanco
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.5
    
    
    
    49.6Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    120.4
    
    
    
    262.1El Limón
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89.8Silver Wheaton (3)
    
    
    27.6
    
    
    
    2.0
    
    
    
    17.4
    
    
    
    
    
    
    
    Other(2)
    
    
    7.5
    
    
    
    12.7
    
    
    
    (172.6
    )
    
    
    22.3
    
    
    
    187.0Total
    
    $
    2,419.6
    
    
    $
    499.1
    
    
    $
    506.0
    
    
    $
    1,372.0
    
    
    $
    19,001.5




---



##### 



Expendituresfor miningEarnings
    
    
    interestsDepreciation
    
    
    (loss) from
    
    
    (includingRevenues
    
    
    and depletion
    
    
    operations
    
    
    deposits)
    
    
    Total assetsAt December 31,Year ended December 31, 2007
    
    
    2007Red Lake
    
    $
    503.4
    
    
    $
    89.2
    
    
    $
    213.1
    
    
    $
    101.2
    
    
    $
    1,617.4Porcupine(1)
    
    
    111.4
    
    
    
    28.7
    
    
    
    4.3
    
    
    
    29.5
    
    
    
    555.4Musselwhite(1)
    
    
    107.4
    
    
    
    18.6
    
    
    
    10.8
    
    
    
    26.0
    
    
    
    351.5Éléonore
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42.6
    
    
    
    749.6Terrane
    
    
    
    
    
    
    
    
    
    
    (7.4
    )
    
    
    15.0
    
    
    
    192.1San Dimas
    
    
    116.2
    
    
    
    36.9
    
    
    
    4.5
    
    
    
    62.5
    
    
    
    682.8Los Filos
    
    
    19.1
    
    
    
    1.8
    
    
    
    7.8
    
    
    
    83.4
    
    
    
    739.1El Sauzal
    
    
    217.8
    
    
    
    102.2
    
    
    
    73.6
    
    
    
    3.9
    
    
    
    373.9Peñasquito
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    403.0
    
    
    
    10,060.8Mexican exploration projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    166.8Marlin
    
    
    203.7
    
    
    
    56.4
    
    
    
    72.8
    
    
    
    26.7
    
    
    
    852.5Alumbrera
    
    
    598.3
    
    
    
    76.6
    
    
    
    238.7
    
    
    
    12.8
    
    
    
    835.9Marigold
    
    
    68.8
    
    
    
    9.0
    
    
    
    1.2
    
    
    
    10.5
    
    
    
    232.6Wharf
    
    
    42.7
    
    
    
    4.5
    
    
    
    14.2
    
    
    
    6.0
    
    
    
    40.4Cerro Blanco
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.0
    
    
    
    32.2Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34.8
    
    
    
    133.7El Limón
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89.8Silver Wheaton (3)
    
    
    175.4
    
    
    
    29.4
    
    
    
    84.8
    
    
    
    
    
    
    
    776.8Amapari (5)
    
    
    18.3
    
    
    
    0.4
    
    
    
    2.8
    
    
    
    1.1
    
    
    
    Peak (5)
    
    
    18.9
    
    
    
    0.1
    
    
    
    7.7
    
    
    
    9.2
    
    
    
    Other(2)(4)
    
    
    5.4
    
    
    
    11.3
    
    
    
    (116.6
    )
    
    
    2.2
    
    
    
    468.9Total
    
    $
    2,206.8
    
    
    $
    465.1
    
    
    $
    612.3
    
    
    $
    871.4
    
    
    $
    18,952.2
 (1)
    
    On December 21, 2007, the Company acquired the remaining 49% and 32% interest in
Porcupine and Musselwhite, respectively (note 4(e)), and as a result, the figures above
reflect Goldcorps 100% ownership subsequent to December 21, 2007.(2)
    
    Includes corporate activities and the results of San Martin which commenced
reclamation activities in October 2007.(3)
    
    In February 2008, the Company disposed of its remaining 48% interest in Silver
Wheaton (note 4(d)).(4)
    
    Includes the assets and results of the La Coipa discontinued operation (note 6).(5)
    
    In April 2007, the Company disposed of its Amapari and Peak mines (note 4(f)).(6)
    
    Intersegment sales and transfers are eliminated in the above financial
information reported to the Companys chief operating decision maker.
 23.
    
    CONTINGENCIES




---



##### 



24.
    
    SUBSEQUENT EVENTS
 (a)
    
    Acquisition of Canplats Resources CorporationOn November 16, 2009, Goldcorp entered into an agreement as amended on December 23, 2009 and
December 29, 2009 with Canplats to acquire all of the issued and outstanding common shares of
Canplats for consideration of C$4.60 per common share outstanding at the closing date. This
transaction completed on February 4, 2010 for total consideration paid by the Company of
C$295.6 million ($275.4 million) in cash. As a result of this transaction, Goldcorp now holds
a 100% interest in the Camino Rojo gold/silver project in Mexico. This project is located
approximately 50 kilometers southeast of Goldcorps Peñasquito project in Mexico. This
transaction will be accounted for as a business combination in accordance with Section 1582
(note 3). Management is in the process of determining the fair values of identifiable assets
and liabilities acquired. The resulting goodwill, if any, will be allocated to the Peñasquito
reporting unit. Total estimated transaction costs that will be expensed in 2010 relating to
the acquisition amount to $3.6 million.(b)
    
    Acquisition of subsidiary of New Gold Inc.On January 7, 2010, a subsidiary of New Gold exercised the right of first refusal pursuant to
the El Morro Shareholders Agreement. The right of first refusal came into effect on October
12, 2009 when Barrick Gold Corporation (Barrick) entered into an agreement with Xstrata to
acquire Xstratas 70% interest in Sociedad Contratual Minera El Morro, the owner of the El
Morro project. Also on January 7, 2010, Goldcorp entered into an agreement with New Gold
whereby Goldcorp agreed to loan $463.0 million to New Gold to fund the acquisition of
Xstratas 70% interest. Goldcorp also loaned $50.0 million to a New Gold subsidiary which was
paid to a different New Gold subsidiary in consideration of the internal assignment of the
acquisition agreement with Xstrata. The acquisition of Xstratas 70% interest by the New Gold
subsidiary was completed on February 16, 2010. Following this transaction, Goldcorp acquired
the New Gold subsidiary. As a result of these transactions, Goldcorp now holds a 70% interest
in the El Morro project with the remaining 30% held by New Gold.Goldcorp, as the project operator, has agreed to fund, through interest bearing loans, New
Golds share of development and construction costs until intended operating levels are
achieved. The amounts outstanding will be repaid to the Company during the production period
of the El Morro project. The acquisition of the New Gold subsidiary will be accounted for as
a business combination in accordance with Section 1582 (note 3). Management is in the process
of determining the fair values of identifiable assets and liabilities acquired. The El Morro
project is considered a separate reporting unit for the purpose of allocating goodwill. Total
estimated transaction costs that will be expensed in 2010 relating to the acquisition amount
to $4.7 million.On January 13, 2010, Goldcorp received a statement of claim filed by Barrick against
Goldcorp, New Gold and certain of New Golds subsidiaries, relating to the exercise of the
right of first refusal by a New Gold subsidiary in respect of the El Morro project. The
Companys management believes that Goldcorp has acted lawfully and appropriately in all
aspects of this transaction and intends to defend Goldcorp against Barricks claim.(c)
    
    Disposition of interest in the Morelos gold projectOn February 10, 2010, Goldcorp entered into an agreement with Gleichen for the sale of
Goldcorps 21.2% interest in the Morelos gold project in Mexico (El Limón) in exchange for
C$52.0 million in cash. This transaction was completed on February 24, 2010. As a result of
this transaction, the Company recognized a $17.3 million after tax ($24.0 million before tax)
write-down of its investment in El Limón during the fourth quarter of 2009 (note9(f)).




---



##### 



25.
    
    RECONCILIATION TO UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
  
 2009OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    
    USGAAP
    
    
    adjustment (a)
    
    
    adjustments
    
    
    
    GAAPRevenues
    
    $
    2,723.6
    
    
    $
    (495.5
    )
    
    $
    150.7
    
    (b)(j)
    
    $
    2,378.8Operating expenses
    
    
    1,187.3
    
    
    
    (266.5
    )
    
    
    212.0
    
    (b)(c)
    
    
    1,132.8Depreciation and depletion
    
    
    526.2
    
    
    
    (70.1
    )
    
    
    156.6
    
    (b)(j)
    
    
    612.7Corporate administration
    
    
    137.6
    
    
    
    
    
    
    
    0.6
    
    (d)
    
    
    138.2Exploration
    
    
    32.5
    
    
    
    
    
    
    
    44.7
    
    (e)
    
    
    77.2Write-down of mining interests
    
    
    24.0
    
    
    
    
    
    
    
    
    
    
    
    
    24.0Earnings from operations
    
    
    816.0
    
    
    
    (158.9
    )
    
    
    (263.2
    )
    
    
    
    393.9Other income (expenses)Interest income and other expenses
    
    
    (19.1
    )
    
    
    15.6
    
    
    
    (0.2
    )
    (f)
    
    
    (3.7
    )Interest expense and finance fees
    
    
    (59.0
    )
    
    
    
    
    
    
    16.6
    
    (g)
    
    
    (42.4
    )Gain on non-hedge derivatives, net
    
    
    3.6
    
    
    
    
    
    
    
    
    
    
    
    
    3.6Gain on securities, net
    
    
    50.2
    
    
    
    
    
    
    
    
    
    
    
    
    50.2Gain on disposition of mining interests
    
    
    20.1
    
    
    
    
    
    
    
    
    
    
    
    
    20.1Dilution loss, net
    
    
    (0.3
    )
    
    
    
    
    
    
    0.3
    
    (r)
    
    
    Loss on foreign exchange
    
    
    (366.6
    )
    
    
    (8.9
    )
    
    
    11.3
    
    
    
    
    (364.2
    )Mark-to-market gains on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    21.7
    
    (h)
    
    
    21.7Earnings from continuing operations before taxes
and non-controlling interests and share of earnings
of equity investees
    
    
    444.9
    
    
    
    (152.2
    )
    
    
    (213.5
    )
    
    
    
    79.2Income and mining taxes
    
    
    (206.7
    )
    
    
    48.6
    
    
    
    77.9
    
    (b)(c)
    
    
    (80.2
    )(e)(g)(j)(r)Non-controlling interests
    
    
    2.0
    
    
    
    
    
    
    
    
    
    
    
    
    2.0Share of earnings of equity investees
    
    
    
    
    
    
    103.6
    
    
    
    (3.2
    )
    (c)
    
    
    100.4Net earnings
    
    $
    240.2
    
    
    
    
    
    
    $
    (138.8
    )
    
    
    $
    101.4Other comprehensive income (loss)Gain on available-for-sale securities, net of tax
expense of $16.6 million
    
    
    184.9
    
    
    
    
    
    
    
    
    
    
    
    
    184.9Reclassification adjustment for gains included in
net earnings, net of tax of $nil
    
    
    (43.0
    )
    
    
    
    
    
    
    
    
    
    
    
    (43.0
    )Defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    1.3
    
    (i)
    
    
    1.3Comprehensive income
    
    $
    382.1
    
    
    
    
    
    
    $
    (137.5
    )
    
    
    $
    244.6Net earnings per shareBasic
    
    $
    0.33
    
    
    
    
    
    
    
    
    
    
    
    $
    0.14Diluted
    
    
    0.33
    
    
    
    
    
    
    
    
    
    
    
    
    0.14




---



##### 



2008OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    
    USGAAP
    
    
    adjustment (a)
    
    
    adjustments
    
    
    
    GAAPRevenues
    
    $
    2,419.6
    
    
    $
    (490.7
    )
    
    $
    41.8
    
    (b)(j)
    
    $
    1,970.7Operating expenses
    
    
    1,164.2
    
    
    
    (280.1
    )
    
    
    84.9
    
    (b)(c)
    
    
    969.0Depreciation and depletion
    
    
    499.1
    
    
    
    (75.3
    )
    
    
    36.5
    
    (b)(h)(j)
    
    
    460.3Corporate administration
    
    
    136.7
    
    
    
    
    
    
    
    12.7
    
    (d)
    
    
    149.4Exploration
    
    
    66.5
    
    
    
    
    
    
    
    105.2
    
    (e)
    
    
    171.7Write-down of mining interests
    
    
    47.1
    
    
    
    
    
    
    
    
    
    
    
    
    47.1Earnings from operations
    
    
    506.0
    
    
    
    (135.3
    )
    
    
    (197.5
    )
    
    
    
    173.2Other income (expenses)Interest and other income
    
    
    28.3
    
    
    
    4.4
    
    
    
    
    
    
    
    
    32.7Interest expense and finance fees
    
    
    (7.2
    )
    
    
    
    
    
    
    
    
    
    
    
    (7.2
    )Loss on non-hedge derivatives, net
    
    
    (2.6
    )
    
    
    
    
    
    
    
    
    
    
    
    (2.6
    )Loss on securities, net
    
    
    (105.9
    )
    
    
    
    
    
    
    0.9
    
    
    
    
    (105.0
    )Gain on disposition of mining interests
    
    
    2.6
    
    
    
    
    
    
    
    
    
    
    
    
    2.6Gain on disposition of Silver Wheaton shares
    
    
    292.5
    
    
    
    
    
    
    
    101.8
    
    (j)
    
    
    394.3Dilution gains
    
    
    2.2
    
    
    
    
    
    
    
    
    
    
    
    
    2.2Gain on foreign exchange
    
    
    1,058.9
    
    
    
    (11.9
    )
    
    
    (8.9
    )
    
    
    
    1,038.1Mark-to-market losses on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    (75.2
    )
    (h)
    
    
    (75.2
    )Earnings from continuing operations before taxes,
non-controlling interests and share of earnings of equity
investees
    
    
    1,774.8
    
    
    
    (142.8
    )
    
    
    (178.9
    )
    
    
    
    1,453.1Income and mining taxes
    
    
    (295.4
    )
    
    
    40.6
    
    
    
    50.0
    
    (b)(c)(e)(j)
    
    
    (204.8
    )Non-controlling interests
    
    
    (7.7
    )
    
    
    
    
    
    
    39.0
    
    (h)
    
    
    31.3Share of earnings of equity investees
    
    
    3.9
    
    
    
    102.2
    
    
    
    (103.3
    )
    (c)(e)
    
    
    2.8Net earnings
    
    $
    1,475.6
    
    
    
    
    
    
    $
    (193.2
    )
    
    
    $
    1,282.4Other comprehensive income (loss)Loss on available-for-sale securities, net of tax expense
of $0.6 million
    
    
    (124.0
    )
    
    
    
    
    
    
    
    
    
    
    
    (124.0
    )Reclassification adjustment for losses included in net
earnings, net of tax of $nil
    
    
    111.0
    
    
    
    
    
    
    
    
    
    
    
    
    111.0Adjustment arising from acquisition of Gold Eagle
    
    
    (29.2
    )
    
    
    
    
    
    
    
    
    
    
    
    (29.2
    )Adjustment arising from disposition of Silver Wheaton shares
    
    
    (17.7
    )
    
    
    
    
    
    
    
    
    
    
    
    (17.7
    )Defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    3.0
    
    (i)
    
    
    3.0Non-controlling interests
    
    
    (1.3
    )
    
    
    
    
    
    
    
    
    
    
    
    (1.3
    )Comprehensive income
    
    $
    1,414.4
    
    
    
    
    
    
    $
    (190.2
    )
    
    
    $
    1,224.2Net earnings per shareBasic
    
    $
    2.07
    
    
    
    
    
    
    
    
    
    
    
    $
    1.80Diluted
    
    
    2.06
    
    
    
    
    
    
    
    
    
    
    
    
    1.79




---



##### 



2007OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    
    USGAAP
    
    
    adjustment (a)
    
    
    adjustments
    
    
    
    GAAPRevenues
    
    $
    2,206.8
    
    
    $
    (598.3
    )
    
    $
    30.8
    
    (b)
    
    $
    1,639.3Operating expenses
    
    
    953.8
    
    
    
    (283.0
    )
    
    
    24.3
    
    (b)
    
    
    695.1Depreciation and depletion
    
    
    465.1
    
    
    
    (76.6
    )
    
    
    6.2
    
    (b)
    
    
    394.7Corporate administration
    
    
    132.9
    
    
    
    
    
    
    
    10.0
    
    (d)
    
    
    142.9Exploration
    
    
    42.7
    
    
    
    
    
    
    
    79.0
    
    (e)
    
    
    121.7Earnings from operations
    
    
    612.3
    
    
    
    (238.7
    )
    
    
    (88.7
    )
    
    
    
    284.9Other income (expenses)Interest and other income
    
    
    20.5
    
    
    
    (4.4
    )
    
    
    
    
    
    
    
    16.1Interest expense and finance fees
    
    
    (44.7
    )
    
    
    4.5
    
    
    
    
    
    
    
    
    (40.2
    )Loss on non-hedge derivatives, net
    
    
    (23.5
    )
    
    
    
    
    
    
    
    
    
    
    
    (23.5
    )Gain on securities, net
    
    
    5.5
    
    
    
    
    
    
    
    1.9
    
    (k)
    
    
    7.4Gain on disposition of mining interests
    
    
    51.0
    
    
    
    
    
    
    
    
    
    
    
    
    51.0Dilution gains
    
    
    10.0
    
    
    
    
    
    
    
    
    
    
    
    
    10.0Loss on foreign exchange
    
    
    (49.4
    )
    
    
    0.5
    
    
    
    
    
    
    
    
    (48.9
    )Mark-to-market losses on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    (178.0
    )
    (h)
    
    
    (178.0
    )Earnings from continuing operations before taxes,
non-controlling interests and share of earnings of
equity investees
    
    
    581.7
    
    
    
    (238.1
    )
    
    
    (264.8
    )
    
    
    
    78.8Income and mining taxes
    
    
    (160.3
    )
    
    
    71.7
    
    
    
    26.0
    
    (b)(e)
    
    
    (62.6
    )Non-controlling interests
    
    
    (46.1
    )
    
    
    
    
    
    
    110.8
    
    (h)
    
    
    64.7Gain on sale of equity investment
    
    
    
    
    
    
    46.4
    
    
    
    
    
    
    
    
    46.4Share of earnings of equity investees
    
    
    0.1
    
    
    
    204.7
    
    
    
    (9.0
    )
    (c)(e)
    
    
    195.8Net earnings from continuing operations
    
    
    375.4
    
    
    
    84.7
    
    
    
    (137.0
    )
    
    
    
    323.1Net earnings from discontinued operation
    
    
    84.7
    
    
    
    (84.7
    )
    
    
    
    
    
    
    
    Net earnings
    
    $
    460.1
    
    
    
    
    
    
    $
    (137.0
    )
    
    
    $
    323.1Other comprehensive income (loss)Gain on available-for-sale securities, net of tax
recovery of $7.8 million
    
    
    36.4
    
    
    
    
    
    
    
    
    
    
    
    
    36.4Transfer of securities held as available-for-sale
to held-for-trading
    
    
    
    
    
    
    
    
    
    
    (1.9
    )
    (k)
    
    
    (1.9
    )Reclassification adjustment for gains included in
net earnings, net of tax of $1.2 million
    
    
    (21.1
    )
    
    
    
    
    
    
    
    
    
    
    
    (21.1
    )Defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    (0.4
    )
    (i)
    
    
    (0.4
    )Non-controlling interests
    
    
    (1.3
    )
    
    
    
    
    
    
    1.0
    
    
    
    
    (0.3
    )Comprehensive income
    
    $
    474.1
    
    
    
    
    
    
    $
    (138.3
    )
    
    
    $
    335.8Net earnings per share Basic and diluted
    
    $
    0.65
    
    
    
    
    
    
    
    
    
    
    
    $
    0.46




---



##### 



2009Canadian
    
    
    Equity
    
    
    Other
    
    
    
    USGAAP
    
    
    adjustment (a)
    
    
    adjustments
    
    
    
    GAAPCurrent assets
    
    $
    1,601.5
    
    
    $
    (204.5
    )
    
    $
    40.4
    
    (b)(c)
    
    $
    1,437.4Mining interests
    
    
    18,001.3
    
    
    
    (511.8
    )
    
    
    559.3
    
    (b)(c)(e)(h)(j)
    
    
    18,048.8Goodwill
    
    
    761.8
    
    
    
    
    
    
    
    
    
    
    
    
    761.8Equity adjustment for incorporated joint venture interest
    
    
    
    
    
    
    485.4
    
    
    
    (34.6
    )
    (c)
    
    
    450.8Other non-current assets
    
    
    584.1
    
    
    
    (64.3
    )
    
    
    25.3
    
    (g)(r)
    
    
    545.1$
    20,948.7
    
    
    $
    (295.2
    )
    
    $
    590.4
    
    
    
    $
    21,243.9Current liabilities
    
    $
    735.0
    
    
    $
    (166.0
    )
    
    $
    
    
    
    
    $
    569.0Non-current derivative liabilities
    
    
    
    
    
    
    
    
    
    
    88.7
    
    (d)(h)
    
    
    88.7Future income and mining taxes
    
    
    3,575.2
    
    
    
    (106.7
    )
    
    
    (145.2
    )
    (b)(c)(e)(g)(i)(j)
    
    
    3,323.3Long-term debt
    
    
    719.0
    
    
    
    
    
    
    
    
    
    
    
    
    719.0Other non-current liabilities
    
    
    375.2
    
    
    
    (22.5
    )
    
    
    1,408.4
    
    (i)(j)
    
    
    1,761.15,404.4
    
    
    
    (295.2
    )
    
    
    1,351.9
    
    
    
    
    6,461.1Non-controlling interests
    
    
    51.1
    
    
    
    
    
    
    
    (51.1
    )
    (r)
    
    
    EquityShareholders equity
    
    
    15,493.2
    
    
    
    
    
    
    
    (761.2
    )
    
    
    
    14,732.0Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    50.8
    
    (r)
    
    
    50.815,493.2
    
    
    
    
    
    
    
    (710.4
    )
    
    
    
    14,782.8$
    20,948.7
    
    
    $
    (295.2
    )
    
    $
    590.4
    
    
    
    $
    21,243.9
 2008Canadian
    
    
    Equity
    
    
    Other
    
    
    
    USGAAP
    
    
    adjustment (a)
    
    
    adjustments
    
    
    
    GAAPCurrent assets
    
    $
    760.8
    
    
    $
    (151.0
    )
    
    $
    7.9
    
    (b)(c)
    
    $
    617.7Mining interests
    
    
    17,055.2
    
    
    
    (561.2
    )
    
    
    885.0
    
    (b)(c)(e)(j)
    
    
    17,379.0Goodwill
    
    
    761.8
    
    
    
    
    
    
    
    
    
    (j)
    
    
    761.8Equity adjustment for incorporated joint venture interest
    
    
    
    
    
    
    531.9
    
    
    
    (31.4
    )
    (c)
    
    
    500.5Other non-current assets
    
    
    423.7
    
    
    
    (66.4
    )
    
    
    
    
    
    
    
    357.3$
    19,001.5
    
    
    $
    (246.7
    )
    
    $
    861.5
    
    
    
    $
    19,616.3Current liabilities
    
    $
    486.3
    
    
    $
    (95.8
    )
    
    $
    1.1
    
    (f)
    
    $
    391.6Derivative liabilities
    
    
    
    
    
    
    
    
    
    
    125.2
    
    (d)(h)(j)
    
    
    125.2Future income and mining taxes
    
    
    3,196.6
    
    
    
    (130.0
    )
    
    
    (64.3
    )
    (b)(c)(e)(i)(j)
    
    
    3,002.3Long-term debt
    
    
    5.3
    
    
    
    
    
    
    
    
    
    
    
    
    5.3Other non-current liabilities
    
    
    303.0
    
    
    
    (20.9
    )
    
    
    1,437.3
    
    (i)(j)
    
    
    1,719.43,991.2
    
    
    
    (246.7
    )
    
    
    1,499.3
    
    
    
    
    5,243.8Non-controlling interests
    
    
    51.2
    
    
    
    
    
    
    
    (51.2
    )
    (h)(j)(r)
    
    
    EquityShareholders equity
    
    
    14,959.1
    
    
    
    
    
    
    
    (637.8
    )
    
    
    
    14,321.3Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    51.2
    
    (r)
    
    
    51.214,959.1
    
    
    
    
    
    
    
    (586.6
    )
    
    
    
    14,372.5$
    19,001.5
    
    
    $
    (246.7
    )
    
    $
    861.5
    
    
    
    $
    19,616.3




---



##### 



2009
    
    
    2008
    
    
    2007Shareholders equityIn accordance with Canadian GAAP
    
    $
    15,493.2
    
    
    $
    14,959.1
    
    
    $
    12,978.6US GAAP adjustments detailed below
    
    
    (761.2
    )
    
    
    (637.8
    )
    
    
    (495.1
    )In accordance with US GAAP
    
    $
    14,732.0
    
    
    $
    14,321.3
    
    
    $
    12,483.5Common shares, share purchase warrants and equity component of convertible senior notesIn accordance with Canadian GAAP
    
    $
    12,784.7
    
    
    $
    12,511.6
    
    
    $
    11,814.8Reversal of stock options exercised under Canadian GAAP (d)
    
    
    (48.8
    )
    
    
    (39.6
    )
    
    
    (26.2
    )Reclassification of stock options under US GAAP (d)
    
    
    119.1
    
    
    
    103.6
    
    
    
    56.9Issuance of flow-through shares (f)
    
    
    (1.1
    )
    
    
    (1.1
    )
    
    
    Renunciation of tax deductions on flow-through shares (f)
    
    
    2.6
    
    
    
    1.3
    
    
    
    1.3Reclassification of C$ share purchase warrants(h)
    
    
    711.6
    
    
    
    711.6
    
    
    
    719.6In accordance with US GAAP
    
    $
    13,568.1
    
    
    $
    13,287.4
    
    
    $
    12,566.4Accumulated other comprehensive incomeUnrealized foreign exchange translation adjustment:In accordance with Canadian GAAP
    
    $
    101.9
    
    
    $
    101.9
    
    
    $
    101.9Reversal of realization of cumulative translation adjustment (m)
    
    
    3.4
    
    
    
    3.4
    
    
    
    3.4In accordance with US GAAP
    
    
    105.3
    
    
    
    105.3
    
    
    
    105.3Unrealized mark-to- market gains (losses) on available-for-sale securities and investments:In accordance with Canadian GAAP
    
    
    136.9
    
    
    
    (5.0
    )
    
    
    73.4Classification of marketable securities as trading securities (k)
    
    
    
    
    
    
    
    
    
    
    (1.9
    )In accordance with US GAAP
    
    
    136.9
    
    
    
    (5.0
    )
    
    
    71.5Defined benefit pension liability in accordance with US GAAP (i)
    
    
    0.5
    
    
    
    1.8
    
    
    
    (1.2
    )Non-controlling interests:In accordance with Canadian GAAP
    
    
    
    
    
    
    
    
    
    
    (17.2
    )Non-controlling interests on marketable securities classified as trading securities (k)
    
    
    
    
    
    
    
    
    
    
    1.0In accordance with US GAAP
    
    
    
    
    
    
    
    
    
    
    (16.2
    )Total accumulated other comprehensive income in accordance with US GAAP
    
    $
    242.7
    
    
    $
    102.1
    
    
    $
    159.4Stock options and additional paid in capitalIn accordance with Canadian GAAP
    
    $
    124.2
    
    
    $
    113.6
    
    
    $
    115.6Reversal of stock options exercised under Canadian GAAP (d)
    
    
    48.8
    
    
    
    39.6
    
    
    
    26.2Reclassification of stock options under US GAAP(d)
    
    
    (89.7
    )
    
    
    (89.6
    )
    
    
    (100.3
    )Changes to contributed surplus (l)
    
    
    14.3
    
    
    
    14.3
    
    
    
    14.3In accordance with US GAAP
    
    $
    97.6
    
    
    $
    77.9
    
    
    $
    55.8Retained earnings (Accumulated deficit)In accordance with Canadian GAAP
    
    $
    2,345.5
    
    
    $
    2,237.0
    
    
    $
    890.1Adjustment for commencement of production and operation (b)
    
    
    (214.0
    )
    
    
    (57.3
    )
    
    
    0.3Expensing of deferred stripping costs (c)
    
    
    (36.3
    )
    
    
    (32.5
    )
    
    
    (24.4
    )Additional stock compensation expense (d)
    
    
    (46.2
    )
    
    
    (45.6
    )
    
    
    (32.9
    )Expensing of exploration costs (e)
    
    
    (274.6
    )
    
    
    (242.8
    )
    
    
    (69.1
    )Renunciation of tax deductions on flow-through shares(f)
    
    
    (1.5
    )
    
    
    (1.3
    )
    
    
    (1.3
    )Expensed transaction costs on convertible senior debt (g)
    
    
    11.9
    
    
    
    
    
    
    
    Mark-to-market loss on share purchase warrants (h)
    
    
    (1,058.5
    )
    
    
    (1,080.2
    )
    
    
    (1,044.0
    )Disposition of Silver Wheaton shares adjustment (j)
    
    
    103.6
    
    
    
    103.2
    
    
    
    Classification of marketable securities as trading securities (k)
    
    
    
    
    
    
    
    
    
    
    0.9Changes to contributed surplus (l)
    
    
    (14.3
    )
    
    
    (14.3
    )
    
    
    (14.3
    )Reversal of realization of cumulative translation adjustment(m)
    
    
    (3.4
    )
    
    
    (3.4
    )
    
    
    (3.4
    )Reclassification of dilution loss relating to non-controlling interests (r)
    
    
    0.3
    
    
    
    
    
    
    
    Realization of previously unrecognized future income tax assets relating to prior business
combinations (r)
    
    
    8.7
    
    
    
    
    
    
    
    Foreign exchange impact of US GAAP adjustments
    
    
    2.4
    
    
    
    (8.9
    )
    
    
    In accordance with US GAAP
    
    $
    823.6
    
    
    $
    853.9
    
    
    $
    (298.1
    )




---



##### 



2009
    
    
    2008
    
    
    2007Operating activitiesCash provided by operating activities of continuing operations
under Canadian GAAP
    
    $
    1,270.2
    
    
    $
    866.0
    
    
    $
    650.7Deferred stripping costs capitalized under Canadian GAAP (c)
    
    
    (0.6
    )
    
    
    (1.1
    )
    
    
    Exploration costs capitalized under Canadian GAAP (e)
    
    
    (44.7
    )
    
    
    (233.6
    )
    
    
    (79.0
    )Revenue recognition adjustment under US GAAP (b)
    
    
    (207.3
    )
    
    
    (64.1
    )
    
    
    (19.4
    )Incorporated joint venture equity adjustment (a)
    
    
    (182.3
    )
    
    
    (117.6
    )
    
    
    (46.0
    )Cash provided by operating activities under US GAAP
    
    
    835.3
    
    
    
    449.6
    
    
    
    506.3Investing activitiesCash used in investing activities of continuing operations under Canadian GAAP
    
    
    (1,458.7
    )
    
    
    (441.7
    )
    
    
    (857.6
    )Deferred stripping costs capitalized under Canadian GAAP (c)
    
    
    0.6
    
    
    
    1.1
    
    
    
    Exploration costs capitalized under Canadian GAAP (e)
    
    
    44.7
    
    
    
    233.6
    
    
    
    79.0Revenue recognition adjustment under US GAAP (b)
    
    
    207.3
    
    
    
    64.1
    
    
    
    19.4Incorporated joint venture equity adjustment (a)
    
    
    15.8
    
    
    
    29.6
    
    
    
    13.3Cash used in investing activities under US GAAP
    
    
    (1,190.3
    )
    
    
    (113.3
    )
    
    
    (745.9
    )Financing activitiesCash provided by (used in) financing activities under Canadian GAAP
    
    
    799.2
    
    
    
    (659.9
    )
    
    
    122.4Incorporated joint venture equity adjustment (a)
    
    
    154.2
    
    
    
    101.0
    
    
    
    295.4Cash provided by (used in) financing activities under US GAAP
    
    
    953.4
    
    
    
    (558.9
    )
    
    
    417.8Effect of exchange rate changes on cash and cash equivalents
    
    
    1.6
    
    
    
    (12.9
    )
    
    
    1.0Increase (decrease) in cash and cash equivalents under US GAAP
    
    
    600.0
    
    
    
    (235.5
    )
    
    
    179.2Cash and cash equivalents, beginning of year under US GAAP
    
    
    230.5
    
    
    
    466.0
    
    
    
    286.8Cash and cash equivalents, end of year under US GAAP
    
    $
    830.5
    
    
    $
    230.5
    
    
    $
    466.0
 Differences between Canadian and US GAAP as they affect the Companys consolidated financial
statements are as follows:
 (a)
    
    Joint venture interestsUnder Canadian GAAP, the Company proportionately consolidates its interest in the
incorporated joint venture of Alumbrera. The Companys interest in the La Coipa incorporated
joint venture was proportionately consolidated in 2006 but was reclassified as a discontinued
operation in 2007 as a result of its sale on December 21, 2007 (note4(e)). Under US GAAP,
the Company is required to equity account for these investments and records its proportionate
share of net earnings in share of earnings of equity investees. Goldcorps share of net
earnings from Alumbrera amounted to $103.6 million for the year ended December 31, 2009 (2008
  $102.2 million; 2007  $166.4 million). Goldcorps share of net earnings from La Coipa for
the year ended December 31, 2007 amounted to $38.3 million.Under Canadian GAAP, the Company proportionately consolidates its interest in the
unincorporated joint venture of Marigold, and proportionately consolidated its interests in
the Porcupine and Musselwhite unincorporated joint ventures up to December 21, 2007 when full
ownership interests were acquired (note4(e)). US GAAP allows interests in unincorporated
joint ventures in the natural resource industry to be accounted for by proportionate
consolidation.




---



##### 



(b)
    
    Operating levels intended by managementUnder Canadian GAAP, revenue recognition relating to the Companys mining operations begins
when operating levels intended by management are achieved. The Company uses specific criteria
to assess the point at which operating levels intended by management are achieved (note
2(h)). Under US GAAP, revenue recognition begins when saleable minerals are extracted
(produced) from an ore body, regardless of the level of production. However, revenue
recognition does not commence with the removal of de minimus saleable mineral material that
occurs in conjunction with the removal of overburden or waste material for the purpose of
obtaining access to an ore body. As at December 31, 2009 and for the year then ended, the
Canadian/US GAAP differences with respect to operating levels intended by management versus
commencement of production were as follows:
       (c)
    
    Deferred stripping costsUnder US GAAP, stripping costs incurred during the production phase of a mine are considered
costs of sales and included in operating expenses in the period they are incurred. Therefore
additions to the deferred stripping cost balance under Canadian GAAP are charged to earnings
for US GAAP purposes as gold is produced and sold. For the year ended December 31, 2009, this
Canadian/US GAAP difference impacted the Peñasquito project, and the Alumbrera, Los Filos,
and Wharf mines (2008 -
Peñasquito project and the Alumbrera and Los Filos mines; 2007  Alumbrera mine). For the
year ended December 31, 2009,




---



##### 



the net effect of expensing stripping costs for US GAAP
purposes, excluding the net effect relating to the Peñasquito project which is reflected in
the US GAAP adjustments under note 25(b), was to reduce net earnings by $3.8 million (2008 -
$8.1 million; 2007  $9.0 million), net of future income tax recovery of $0.2 million (2008 -
$0.4 million; 2007  $nil). Of the $3.8 million charged to earnings during the year ended
December 31, 2009, $3.2 million related to Alumbrera, which was recorded in share of earnings
of equity investees (2008  $8.1 million and $7.0 million, respectively).(d)
    
    Stock optionsThe accounting for share based compensation expense relating to stock options granted to
employees is similar under Canadian and US GAAP with the exception noted below.Stock options issued to employees of foreign operations, with an exercise price denominated
in a currency other than the US dollar, the Companys functional currency, or the local
currency of the foreign operation, are required under US GAAP to be classified as liabilities
and fair valued each period. For the year ended December 31, 2009, the net effect of
accounting for these stock options as non-current derivative liabilities was to reduce net
earnings by $0.6 million (2008  $12.7 million; 2007  $10.0 million). Non-current derivative
liabilities at December 31, 2009 relating to stock options issued to employees of foreign
operations totaled $16.8 million (December 31, 2008  $31.6 million), which was net of $15.5
million (2008  $46.7 million) reclassified to common shares relating to stock options
exercised during the year then ended. During the year ended December 31, 2009, stock options
and additional paid in capital was decreased by $0.1 million relating to the reversal of
share based compensation expense recognized on options issued to employees of foreign
operations under Canadian GAAP (2008  increased by $10.7 million relating to the
reclassification of $11.9 million from non-current derivative liabilities for the change in
status of certain employees, offset by the reversal of $1.2 million of share based
compensation expense recognized on options issued to employees of foreign operations under
Canadian GAAP; 2007  decreased by $3.7 million relating to the reversal of share based
compensation expense recognized on options issued to employees of foreign operations under
Canadian GAAP). The reversal of amounts reclassified to common shares on exercise of stock
options under Canadian GAAP during the year ended December 31, 2009 amounted to $9.2 million
(2008  $13.4 million; 2007  $17.7 million).The total intrinsic value of stock options outstanding and exercisable at December 31, 2009,
exclusive of options issued to employees of foreign operations, was $115.4 million and $80.0
million, respectively. The total intrinsic value of stock options exercised during the year
ended December 31, 2009 was $39.5 million.At December 31, 2009 there was $40.2 million of total unrecognized compensation costs related
to unvested stock options. These costs will be recognized over the weighted average period of
2.5 years. The following summarizes the changes in the Companys unvested stock options
during the year ended December 31, 2009:
 Number of
    
    
    WeightedStock Options
    
    
    Average GrantGranted
    
    
    Date Fair Value(000s)
    
    
    (US$/option)Unvested stock options at January 1, 2009
    
    
    6,366
    
    
    $
    9.84Granted
    
    
    5,003
    
    
    
    9.97Vested
    
    
    (3,465
    )
    
    
    8.52Forfeited
    
    
    (379
    )
    
    
    11.12Unvested stock options at December 31, 2009
    
    
    7,525
    
    
    $
    10.47
 (e)
    
    Exploration and development expenditures applicable to mining propertiesUnder Canadian GAAP, exploration costs incurred to the date of establishing that a property
is economically recoverable are charged to earnings. Further exploration and development
expenditures are capitalized and included in the carrying amount of




---



##### 



the related property.
Under US GAAP, exploration and development costs incurred until the completion of a final
feasibility study on the property are charged to earnings in the period they are incurred.
Under US GAAP, $44.7 million of such expenditures were expensed during the year ended
December 31, 2009, which resulted in a $31.8 million, net of tax of $12.9 million charge to
earnings (2008  $173.7 million, net of tax of $27.8 million; 2007  $53.0 million, net of
tax of $26.0 million) principally arising from mining expenditures incurred relating to the
Cochenour, Éléonore, Hollinger, Red Dot (included in Marigold), Cerro Blanco and certain
Terrane development projects. Of the $173.7 million and $53.0 million of exploration and
development costs expensed in 2008 and 2007, respectively, $96.3 million, net of tax of $32.1
million and $26.1 million, net of tax of $8.7 million, respectively, related to the Pueblo
Viejo development project which was recorded in share of earnings of equity investees. Pueblo
Viejo completed its final feasibility study on January 1, 2009.The Company incurred $61.2 million of drilling and related costs during the year ended
December 31, 2009 (2008  $63.5 million; 2007  $64.2 million) to convert mineral resources
to reserves or to provide greater definition of existing reserves at properties that are
either in the production or development stage that were capitalized. The Company acknowledges
that there is diversity in interpretation and application of accounting practice within the
mining industry with respect to the accounting treatment of such costs, in that some
companies expense as incurred, the drilling and related costs incurred to define and
delineate residual mineral deposits that have not been classified as proven and probable
reserves at a development stage or production stage mine.(f)
    
    Flow-through sharesUnder Canadian GAAP, total proceeds from the issuance of flow-through shares are recorded as
share capital upon receipt. Upon renouncement of income tax benefits, the estimated income
tax benefits are treated as a cost of issuing equity and share capital is reduced.Under US GAAP, total proceeds from the issuance of flow-through shares are allocated between
the offering of shares and the sale of tax benefits. The amount allocated to the offering of
 shares is based on the quoted price of the underlying shares. The remaining amount which is
allocated to the sale of tax benefits is recorded as a liability and is reversed when the tax
benefits are renounced. The difference between the amount originally recorded as a liability
and the estimated income tax benefits on date of renouncement is recognized as a gain or loss
in earnings. For US GAAP purposes, the net effect was to decrease net earnings for the year
ended December 31, 2009 by $0.2 million (2008 and 2007  $nil), increase share capital at
December 31, 2009 by $1.3 million (December 31, 2008  decrease by $1.1 million) and decrease
current liabilities by $1.1 million (December 31, 2008  increase by $1.1 million).(g)
    
    Convertible senior notesFor Canadian GAAP purposes, the Company has elected an accounting policy to expense
transaction costs incurred relating to financial assets and liabilities, unless they are
directly attributable to the acquisition or construction of qualifying assets (note2(m)).
Accordingly, the Company expensed the transaction costs allocated to the debt component of
the convertible senior notes issued on June 5, 2009 (note11(b)). Under US GAAP, debt issue
costs are capitalized as an asset, separate from the related debt, and amortized over the
term of the debt using the effective interest method. The impact of accounting for the
transaction costs relating to the debt component of the convertible senior notes under US
GAAP was to decrease finance fees by $16.6 million, decrease future income tax recovery by
$4.7 million and increase net earnings by $11.9 million for the year ended December 31, 2009
and increase other non-current assets by $16.6 million and increase future income tax
liability by $4.7 million as at December 31, 2009.
 (h)
    
    Share purchase warrantsFor Canadian GAAP purposes, all of the Companys share purchase warrants are classified and
accounted for as equity in the Companys consolidated financial statements. In 2006, an
interpretation of US GAAP, contained in the Financial Accounting




---



##### 



Standards Board (FASB)s
Accounting Standards Codification (ASC) 815  Derivatives and Hedging(ASC 815),required
that share purchase warrants with an exercise price denominated in a currency other than the
Companys functional currency be classified and accounted for as financial liabilities and
measured at fair value with changes in fair values included in net earnings. For the year
ended December 31, 2009, the net effect of reflecting the mark-to-market gain on these share
purchase warrants was to increase net earnings by $21.7 million (2008  $36.2 million
mark-to-market loss, net of non-controlling interests of $39.0 million; 2007  $66.2 million
mark-to-market loss, net of non-controlling interests of $111.8 million).On September 25, 2008, the Company acquired the net assets of Gold Eagle (notes4(c)and
18(a))for $1,286.8 million. As part of its purchase price, the Company issued 0.8 million
share purchase warrants with an exercise price of C$34.76 per share. The amount reclassified
to non-current derivative liabilities for these warrants was $8.0 million. The offsetting
$719.6 million reclassification of warrants from non-current derivative liabilities to common shares related to the early exercise of the five existing series of warrants in March 2006.Non-current derivative liabilities relating to share purchase warrants with C$ exercise
prices at December 31, 2009 was $71.9 million (December 31, 2008 -$93.6 million).(i)
    
    Defined benefit pension plansUS GAAP requires an employer to recognize the overfunded or underfunded status of a defined
benefit plan, other than a multi-employer plan, as an asset or liability, with changes in the
funded status recognized as other comprehensive income. For US GAAP purposes, the net effect
was to increase other comprehensive income for the year ended December 31, 2009 by $1.3
million (2008  increase by $3.0 million; 2007  decrease by $0.4 million), decrease other
long-term liabilities at December 31, 2009 by $0.6 million (December 31, 2008  increase by
$2.6 million), increase future income and mining tax liability at December 31, 2009 by $0.1
million (December 31, 2008  $0.8 million) and increase AOCI at December 31, 2009 by $0.5
million (December 31, 2008 -$1.8 million).For US GAAP purposes, the amounts recognized in AOCI (pre-tax) that have not been recognized
as components of defined benefit pension expense at December 31 were as follows:
 2009
    
    
    2008Actuarial gain, net
    
    $
    2.9
    
    
    $
    5.3Past service costs
    
    
    (2.3
    )
    
    
    (2.7
    )0.6
    
    
    
    2.6
  (j)
    
    Disposition of Silver Wheaton sharesOn February 14, 2008, the Company disposed of its remaining 48% interest in Silver Wheaton
(note4(d)). In addition to the amounts recognized for Canadian GAAP purposes, the Company
recorded additional accounting entries for US GAAP purposes to account for the disposition of
its interest in Silver Wheaton which decreased goodwill by $21.5 million, decreased
non-current derivative liabilities by $562.5 million and increased non-controlling interests
by $266.0 million. The $275.0 million net additional gain on disposition of its interest in
Silver Wheaton for US GAAP purposes was recognized as an additional $101.8 million gain in
the Companys 2008 consolidated statement of earnings and an additional $173.2 million of
excess consideration recorded in the Companys consolidated balance sheet.
 For Canadian GAAP purposes, the excess consideration arising on the disposition of the
Companys interest in Silver Wheaton and the consideration paid to Goldcorp by Silver Wheaton
for the San Dimas and Peñasquito silver arrangements have been applied as a reduction of
mining properties and plant and equipment carrying values at San Dimas, Los Filos and
Peñasquito.




---



##### 



For US GAAP purposes, these amounts are presented as deferred credit balances
(non-current liabilities) on the Companys consolidated balance sheet. As sales of silver are
made to Silver Wheaton under the terms of these silver arrangements, the deferred credit
balances are amortized to revenues on a per ounce basis. The 2008 comparative figures have
been reclassified to conform to the 2009 presentation.(k)
    
    Investments in securitiesUnder Canadian GAAP, upon adoption of the new Canadian accounting standards for financial
instruments on January 1, 2007 (note 3), the Companys investments in marketable and equity
securities were classified as available-for-sale. Prior to this, a Canadian/US GAAP
difference existed in the accounting for investments in marketable securities and equity
securities, which under US GAAP would have been classified as trading securities and
available-for-sale, respectively, and measured at fair value. The adjustment in 2007
represents the impact of the classification of marketable securities under US GAAP as trading
securities for the period prior to January 1, 2007.(l)
    
    Contributed surplusPrior to 2004 and under Canadian GAAP, the Company used $70.6 million of contributed surplus
to eliminate a deficit which is not permitted under US GAAP. Also prior to 2004, for US GAAP
purposes the Company reduced contributed surplus by $56.3 million resulting from the
amalgamation with another company.(m)
    
    Cumulative translation adjustmentPrior to April 1, 2005, the Canadian dollar was determined to be the functional currency of
the Companys Canadian operations and these operations were translated into US dollars with
the cumulative translation adjustment recorded in AOCI under both Canadian and US GAAP.Under US GAAP, a proportionate amount of the cumulative translation adjustment is not
recognized in earnings when there is a reduction in the Companys net investment in a
subsidiary as a result of dividend distributions.(n)
    
    Pro forma information on business combinationsUS GAAP requires disclosure of certain pro forma information for the period in which a
material business combination occurs. The following table presents the pro forma results of
operations for informational purposes, assuming that the Company had acquired the full
ownership interests in Porcupine and Musselwhite (note4(e))at the beginning of 2007.
 2007Revenues
    
    $
    1,796.9Net earnings
    
    
    323.2
  (o)
    
    Accounting for uncertainty in income taxesIn July 2006, the FASB issued an interpretation of ASC 740  Income Taxes(ASC 740) which
addresses the accounting for uncertainty in income taxes. This interpretation clarifies the
accounting for income taxes by prescribing a minimum recognition threshold that a tax
position is required to meet before being recognized in the financial statements. It also
provides guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosures, and transition.The Company adopted the provisions of ASC 740 with respect to the accounting for uncertainty
in income taxes on January 1, 2007. The adoption did not result in any adjustment to opening
retained earnings for purposes of US GAAP.




---



##### 



A reconciliation of the beginning and ending amount of the Companys unrecognized tax
benefits is as follows:
 2009
    
    
    2008
    
    
    2007Balance at January 1
    
    $
    98.9
    
    
    $
    105.7
    
    
    $
    129.1Additions based on tax positions taken during the current year
    
    
    36.6
    
    
    
    5.9
    
    
    
    20.4Additions for tax positions taken during prior years
    
    
    32.7
    
    
    
    2.4
    
    
    
    14.0Reductions for tax positions taken during prior years
    
    
    (10.7
    )
    
    
    (15.1
    )
    
    
    (57.8
    )Decreases relating to settlements with the tax authorities
    
    
    (3.8
    )
    
    
    
    
    
    
    Balance at December 31
    
    $
    153.7
    
    
    $
    98.9
    
    
    $
    105.7
    Canada
    
    2003 to 2009United States
    
    2002 to 2009Mexico
    
    2004 to 2009Honduras
    
    2003 to 2008Argentina
    
    2003 to 2009
 (p)
    
    United States accounting pronouncements adopted during 2007
  Transfers
and Receivables




---



##### 



(q)
    
    United States accounting pronouncements adopted during 2008
  Fair Value Measurements and Disclosures (ASC
820)
  Financial Instruments
 (r)
    
    United States accounting pronouncements adopted during 2009
    Business Combinations (ASC 805) Non-controlling Interests in Consolidated Financial Statements (ASC 810)
 Business Combinations (SFAS 141)




---



##### 



Debt




---



##### 



Investments  Equity Method and
Joint Ventures
   (s)
    
    United States accounting pronouncements proposed to be implemented effective January 1,
2011On December 17, 2009, the FASB issued a proposed Accounting Standard Update (ASU) which
addresses the impact of denominating the exercise price of a share based payment in the
currency of the market in which the underlying equity security trades. The ASU proposes an
exception to the liability classification which applies to an entitys share based payments
with exercise prices denominated in the currency of the market in which substantial portions
of the entitys equity securities trade. In the event that the proposed ASU is approved into
a final standard, the standard which would be effective for interim and annual periods
beginning on or after December 15, 2010 and applied prospectively, would result in a
reclassification of stock options issued by the Company to employees of its foreign
operations, with an exercise price denominated in other than US dollars or the local currency
of the foreign operation (note25(h))from non-current derivative liabilities to
shareholders equity. The Company plans to adopt IFRS effective January 1, 2011 which
requires that all stock based compensation awarded to employees be classified as equity.




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##### 



HEAD OFFICE 
Park Place 
Suite 3400  666 Burrard Street
Vancouver, BC V6C 2X8
Canada
Telephone: (604) 696-3000
Fax: (604) 696-3001
Website: goldcorp.comTORONTO OFFICE 
Suite 3201  130 Adelaide Street West 
Toronto, ON M5H 3P5
Canada 
Telephone: (416) 865-0326 
Fax: (416) 359-9787RENO OFFICE 
Suite 310  5190 Neil Road 
Reno, NV 89502 
United States
Telephone: (775) 827-4600
Fax: (775) 827-5044MEXICO OFFICE 
Avenida de las Palmas 425, Col. Lomas de Chapultepec 
Mexico, D.F. 11000
Telephone: (52) 55 5201-9600
    
    STOCK EXCHANGE LISTING 
Toronto Stock Exchange: G 
New York Stock Exchange: GGTRANSFER AGENT 
CIBC Mellon Trust Company 
Suite 1600
1066 West Hastings Street
Vancouver, BC V6E 3X1
Canada
Toll free in Canada and the US:
   (800) 387-0825
Outside of Canada and the US:
   (416) 643-5500
Email: inquiries@cibcmellon.comINVESTOR RELATIONS 
Jeff Wilhoit 
Vice President, Investor Relations
Toll free: (800) 567-6223
Email: info@goldcorp.comAUDITORS 
Deloitte & Touche LLP 
Vancouver, BC