Exhibit 99.3
 Audited
Consolidated Financial Statements of the Company for the year ended
December 31, 2010, 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; andiii.
    
    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
        
        2010
        
        
        2009
        
        
        2008Revenues
        
        26
        
        $
        3,799.8
        
        
        $
        2,723.6
        
        
        $
        2,419.6Operating expenses
        
        
        
        
        (1,478.4
        )
        
        
        (1,187.3
        )
        
        
        (1,164.2
        )Depreciation and depletion
        
        26
        
        
        (623.0
        )
        
        
        (526.2
        )
        
        
        (499.1
        )Earnings from mine
            operations
        
        
        
        
        1,698.4
        
        
        
        1,010.1
        
        
        
        756.3Corporate administration(1)
        
        
        
        
        (177.1
        )
        
        
        (133.1
        )
        
        
        (131.0
        )Exploration
        
        
        
        
        (51.8
        )
        
        
        (31.8
        )
        
        
        (65.7
        )Write-down of mining
            interests
        
        4(e) & 10(b)
        
        
        
        
        
        
        (24.0
        )
        
        
        (47.1
        )Earnings from operations
        
        26
        
        
        1,469.5
        
        
        
        821.2
        
        
        
        512.5Other income (expenses)Interest and other
            income (expenses)
        
        
        
        
        (46.3
        )
        
        
        (19.2
        )
        
        
        28.2Interest expense and
            finance fees
        
        
        
        
        (52.3
        )
        
        
        (59.0
        )
        
        
        (7.2
        )Share of earnings (losses) of
            equity investees
        
        
        
        
        (8.1
        )
        
        
        
        
        
        
        3.9Gains (losses) on
            non-hedge derivatives, net
        
        19(a)
        
        
        (61.8
        )
        
        
        3.6
        
        
        
        (2.6
        )Gains (losses) on
            securities, net
        
        12
        
        
        0.5
        
        
        
        50.2
        
        
        
        (105.9
        )Gains on dispositions
            of mining interests
        
        4(a), (b) & (e)
        
        
        780.5
        
        
        
        20.1
        
        
        
        2.6Gain on disposition
            of Silver Wheaton shares
        
        4(d)
        
        
        
        
        
        
        
        
        
        
        292.5Dilution gains, net
        
        
        
        
        
        
        
        
        
        
        
        
        1.7Gains (losses) on
            foreign exchange, net
        
        19(d)(iii)
        
        
        (355.4
        )
        
        
        (363.7
        )
        
        
        1,059.3257.1
        
        
        
        (368.0
        )
        
        
        1,272.5Earnings from continuing
            operations before taxes
        
        
        
        
        1,726.6
        
        
        
        453.2
        
        
        
        1,785.0Income and mining taxes
        
        16
        
        
        (346.0
        )
        
        
        (209.1
        )
        
        
        (303.9
        )Earnings from continuing
            operations
        
        
        
        
        1,380.6
        
        
        
        244.1
        
        
        
        1,481.1Earnings (loss) from
            discontinued operation, net of tax
        
        6
        
        
        185.5
        
        
        
        (5.9
        )
        
        
        2.2Net earnings
        
        
        
        $
        1,566.1
        
        
        $
        238.2
        
        
        $
        1,483.3Earnings from continuing
            operations attributable to:Shareholders of Goldcorp
            Inc.
        
        
        
        $
        1,380.5
        
        
        $
        244.1
        
        
        $
        1,473.8Non-controlling interests
        
        22
        
        
        0.1
        
        
        
        
        
        
        
        7.3$
        1,380.6
        
        
        $
        244.1
        
        
        $
        1,481.1Net earnings (loss) attributable
            to:Shareholders of Goldcorp
            Inc.
        
        
        
        $
        1,574.3
        
        
        $
        240.2
        
        
        $
        1,475.6Non-controlling interests
        
        22
        
        
        (8.2
        )
        
        
        (2.0
        )
        
        
        7.7$
        1,566.1
        
        
        $
        238.2
        
        
        $
        1,483.3(1)Stock based compensation expense (non-cash item) included in
            corporate administration
        
        21(b)
        
        $
        63.2
        
        
        $
        45.1
        
        
        $
        41.5Earnings from continuing
            operations per share
        
        21(d)Basic
        
        
        
        $
        1.88
        
        
        $
        0.33
        
        
        $
        2.07Diluted
        
        
        
        
        1.87
        
        
        
        0.33
        
        
        
        2.06Net earnings per
            share
        
        21(d)Basic
        
        
        
        $
        2.14
        
        
        $
        0.33
        
        
        $
        2.07Diluted
        
        
        
        
        2.13
        
        
        
        0.33
        
        
        
        2.06Weighted-average
            number of shares outstanding (000s)
        
        21(d)Basic
        
        
        
        
        735,337
        
        
        
        731,306
        
        
        
        711,862Diluted
        
        
        
        
        738,236
        
        
        
        734,564
        
        
        
        715,434




---



##### 



Consolidated Balance Sheets  At December 31
 Note
    
    2010
    
    
    2009AssetsCash and cash equivalents
    
    25
    
    $
    556.2
    
    
    $
    874.6Marketable securities
    
    
    
    
    39.9
    
    
    
    24.9Accounts receivable
    
    19(a)
    
    
    443.8
    
    
    
    278.8Income and mining taxes receivable
    
    
    
    
    36.9
    
    
    
    38.4Inventories and stockpiled ore
    
    7
    
    
    396.8
    
    
    
    349.4Notes receivable
    
    8
    
    
    64.1
    
    
    
    Other
    
    9
    
    
    84.1
    
    
    
    35.4Current assets
    
    
    
    
    1,621.8
    
    
    
    1,601.5Mining interests
    
    10
    
    
    25,316.3
    
    
    
    18,001.3Deposits on mining interest expenditures
    
    
    
    
    6.4
    
    
    
    86.9Goodwill
    
    11
    
    
    761.8
    
    
    
    761.8Stockpiled ore
    
    7
    
    
    82.3
    
    
    
    93.6Investments
    
    12
    
    
    930.6
    
    
    
    390.3Note receivable
    
    13
    
    
    47.5
    
    
    
    Other
    
    14
    
    
    42.4
    
    
    
    13.326
    
    $
    28,809.1
    
    
    $
    20,948.7LiabilitiesAccounts payable and accrued liabilities
    
    
    
    $
    586.5
    
    
    $
    416.4Income and mining taxes payable
    
    
    
    
    217.8
    
    
    
    182.6Current debt
    
    15
    
    
    
    
    
    
    16.7Future income and mining taxes payable
    
    16
    
    
    174.6
    
    
    
    107.9Current derivative liabilities
    
    19(a)
    
    
    55.1
    
    
    
    11.4Current liabilities
    
    
    
    
    1,034.0
    
    
    
    735.0Income and mining taxes payable
    
    
    
    
    125.1
    
    
    
    65.4Long-term debt
    
    15
    
    
    747.1
    
    
    
    719.0Future income and mining taxes payable
    
    16
    
    
    6,082.0
    
    
    
    3,575.2Non-current derivative liability
    
    19(a)
    
    
    95.4
    
    
    
    Reclamation and closure cost obligations
    
    17
    
    
    276.2
    
    
    
    282.0Other
    
    
    
    
    41.9
    
    
    
    27.88,401.7
    
    
    
    5,404.4EquityCommon shares, share purchase
warrants, stock options, restricted
share units and equity component of
convertible senior notes
    
    
    
    
    15,853.0
    
    
    
    12,908.9Retained earnings
    
    
    
    
    3,779.3
    
    
    
    2,345.5Accumulated other comprehensive income
    
    23
    
    
    561.9
    
    
    
    238.84,341.2
    
    
    
    2,584.3Shareholders equity
    
    
    
    
    20,194.2
    
    
    
    15,493.2Non-controlling interests
    
    22
    
    
    213.2
    
    
    
    51.120,407.4
    
    
    
    15,544.3$
    28,809.1
    
    
    $
    20,948.7
 (notes 4(a), 5(b), 19(d)(ii) & 27)
  -S- Charles Jeannes
    
    -s- Ian TelferCharles Jeannes, Director
    
    Ian Telfer, Director




---



##### 



Consolidated Statements of Cash Flows  Years Ended December 31
 Note
    
    2010
    
    
    2009
    
    
    2008Operating ActivitiesNet earnings from continuing operations
    
    
    
    $
    1,380.6
    
    
    $
    244.1
    
    
    $
    1,481.1Reclamation expenditures
    
    17
    
    
    (15.6
    )
    
    
    (26.5
    )
    
    
    (17.8
    )Transaction costs on convertible senior notes expensed
    
    15(b)
    
    
    
    
    
    
    18.5
    
    
    
    Loss (gain) on securities, net
    
    12
    
    
    (0.5
    )
    
    
    (50.2
    )
    
    
    105.9Gains on dispositions of mining interests
    
    4(a), (b) & (e)
    
    
    (780.5
    )
    
    
    (20.1
    )
    
    
    (2.6
    )Gain on disposition of Silver Wheaton shares
    
    4(d)
    
    
    
    
    
    
    
    
    
    
    (292.5
    )Current income tax expense on disposition of San Dimas Assets
    
    4(a)
    
    
    145.6
    
    
    
    
    
    
    
    Items not
affecting cashDepreciation and depletion
    
    26
    
    
    623.0
    
    
    
    526.2
    
    
    
    499.1Stock based compensation expense
    
    21(b)
    
    
    63.2
    
    
    
    45.1
    
    
    
    41.5Write-down of mining interests
    
    4(e) & 10(b)
    
    
    
    
    
    
    24.0
    
    
    
    47.1Accretion on Primero promissory and convertible notes receivable
    
    8 & 13
    
    
    (0.5
    )
    
    
    
    
    
    
    Accretion on convertible senior notes
    
    15(b)
    
    
    28.0
    
    
    
    15.6
    
    
    
    Share of losses (earnings) of equity investees
    
    
    
    
    8.1
    
    
    
    
    
    
    
    (3.9
    )Unrealized loss (gain) on non-hedge derivatives, net
    
    19(a)
    
    
    68.0
    
    
    
    3.3
    
    
    
    (7.6
    )Dilution gains, net
    
    
    
    
    
    
    
    
    
    
    
    
    (1.7
    )Future income and mining taxes
    
    16
    
    
    (163.0
    )
    
    
    57.4
    
    
    
    165.8Unrealized loss (gain) on foreign exchange and other
    
    
    
    
    362.0
    
    
    
    346.9
    
    
    
    (1,076.1
    )Change in non-cash working capital
    
    25
    
    
    68.9
    
    
    
    90.8
    
    
    
    (67.2
    )Cash provided by operating activities of continuing operations
    
    19(d)(ii)
    
    
    1,787.3
    
    
    
    1,275.1
    
    
    
    871.1Cash used in operating activities of discontinued operation
    
    
    
    
    (15.3
    )
    
    
    (4.9
    )
    
    
    (5.1
    )Investing ActivitiesAcquisitions, net of cash acquired
    
    25
    
    
    (1,317.5
    )
    
    
    
    
    
    
    (553.0
    )Investment in common shares of Tahoe
    
    10(g)
    
    
    (143.7
    )
    
    
    
    
    
    
    Repayment of capital invested in Pueblo Viejo
    
    10(k)
    
    
    192.0
    
    
    
    
    
    
    
    Expenditures on mining interests
    
    26
    
    
    (1,186.3
    )
    
    
    (1,007.1
    )
    
    
    (1,123.7
    )Deposits on mining interest expenditures
    
    26
    
    
    (42.0
    )
    
    
    (341.4
    )
    
    
    (230.8
    )Proceeds on dispositions of mining interests, net
    
    25
    
    
    476.7
    
    
    
    14.0
    
    
    
    Proceeds on disposition of Silver Wheaton shares, net
    
    4(d)
    
    
    
    
    
    
    
    
    
    
    1,505.1Income taxes paid on disposition of San Dimas Assets
    
    
    
    
    (57.9
    )
    
    
    
    
    
    
    Income taxes paid on disposition of Silver Wheaton shares
    
    4(d)
    
    
    (148.7
    )
    
    
    
    
    
    
    Purchases of securities
    
    
    
    
    (19.4
    )
    
    
    (181.9
    )
    
    
    (20.4
    )Proceeds from sales of securities
    
    
    
    
    
    
    
    
    65.2
    
    
    
    0.2Other
    
    
    
    
    (2.0
    )
    
    
    0.4
    
    
    
    (1.6
    )Cash used in investing activities of continuing operations
    
    
    
    
    (2,248.8
    )
    
    
    (1,450.8
    )
    
    
    (424.2
    )Cash provided by (used in) investing activities of discontinued operation
    
    
    
    
    170.0
    
    
    
    (7.9
    )
    
    
    (17.5
    )Financing ActivitiesDebt borrowings
    
    
    
    
    1,120.0
    
    
    
    1,323.4
    
    
    
    200.9Debt repayments
    
    
    
    
    (1,120.0
    )
    
    
    (460.0
    )
    
    
    (845.0
    )Transaction costs on convertible senior notes
    
    15(b)
    
    
    
    
    
    
    (22.7
    )
    
    
    Common shares issued, net
    
    
    
    
    95.8
    
    
    
    79.1
    
    
    
    103.8Dividends paid to common shareholders
    
    
    
    
    (154.4
    )
    
    
    (131.7
    )
    
    
    (128.7
    )Cash provided by (used in) financing activities of continuing operations
    
    
    
    
    (58.6
    )
    
    
    788.1
    
    
    
    (669.0
    )Cash provided by financing activities of discontinued operation
    
    
    
    
    49.5
    
    
    
    11.1
    
    
    
    9.1Effect of exchange rate changes
 on cash and cash equivalents
    
    
    
    
    (2.5
    )
    
    
    1.6
    
    
    
    (12.9
    )Increase (decrease) in cash and cash equivalents
    
    
    
    
    (318.4
    )
    
    
    612.3
    
    
    
    (248.5
    )Cash and cash equivalents, beginning of year
    
    
    
    
    874.6
    
    
    
    262.3
    
    
    
    510.8Cash and cash equivalents, end of year
    
    
    
    $
    556.2
    
    
    $
    874.6
    
    
    $
    262.3
 (note 25)




---



##### 



Consolidated Statements of Equity
 Stock
    
    
    Equity
    
    
    
    
    
    
    AccumulatedShare
    
    
    Options and
    
    
    Component of
    
    
    
    
    
    
    Other
    
    
    Attributable to
    
    
    Non-Common Shares
    
    
    Purchase
    
    
    Restricted
    
    
    Convertible
    
    
    Retained
    
    
    Comprehensive
    
    
    Shareholders of
    
    
    controllingShares
    
    
    Amount
    
    
    Warrants
    
    
    Share Units
    
    
    Senior Notes
    
    
    Earnings
    
    
    Income
    
    
    Goldcorp Inc.
    
    
    interests
    
    
    TotalAt January 1, 2008
    
    
    708,351
    
    
    $
    11,772.8
    
    
    $
    42.0
    
    
    $
    115.6
    
    
    $
    
    
    
    $
    890.1
    
    
    $
    158.1
    
    
    $
    12,978.6
    
    
    $
    449.6
    
    
    $
    13,428.2Stock options
exercised, and
restricted share
units issued and
vested
    
    
    5,667
    
    
    
    152.2
    
    
    
    
    
    
    
    (48.4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    103.8
    
    
    
    
    
    
    
    103.8Fair value of
stock options and
restricted share
units issued and
vested (note
21(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    550.6
    
    
    
    
    
    
    
    550.6Change in
ownership interest
in Terrane
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.5
    
    
    
    4.5Disposition of
Silver Wheaton
shares (note 4(d))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (411.9
    )
    
    
    (411.9
    )Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (128.7
    )
    
    
    
    
    
    
    (128.7
    )
    
    
    
    
    
    
    (128.7
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,475.6
    
    
    
    
    
    
    
    1,475.6
    
    
    
    7.7
    
    
    
    1,483.3Other
comprehensive
income (note
19(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (61.2
    )
    
    
    (61.2
    )
    
    
    1.3
    
    
    
    (59.9
    )At January 1, 2009
    
    
    729,600
    
    
    
    12,461.6
    
    
    
    50.0
    
    
    
    113.6
    
    
    
    
    
    
    
    2,237.0
    
    
    
    96.9
    
    
    
    14,959.1
    
    
    
    51.2
    
    
    
    15,010.3Stock options
exercised, and
restricted share
units issued and
vested
    
    
    3,957
    
    
    
    118.2
    
    
    
    
    
    
    
    (38.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    79.7
    
    
    
    
    
    
    
    79.7Fair value of
stock options and
restricted share
units issued and
vested (note
21(b))
    
    
    
    
    
    
    - -
    
    
    
    
    
    
    
    48.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48.1
    
    
    
    
    
    
    
    48.1Equity component
of convertible
senior notes
issued, net of
issue costs and
tax (note 15(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    155.9
    
    
    
    
    
    
    
    
    
    
    
    155.9
    
    
    
    
    
    
    
    155.9Change in
ownership interest
in Terrane (note
22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.9
    
    
    
    1.9Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (131.7
    )
    
    
    
    
    
    
    (131.7
    )
    
    
    
    
    
    
    (131.7
    )Net earnings (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    240.2
    
    
    
    
    
    
    
    240.2
    
    
    
    (2.0
    )
    
    
    238.2Other
comprehensive
income (note
19(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141.9
    
    
    
    141.9
    
    
    
    
    
    
    
    141.9




---



##### 



Consolidated
Statements of Equity  Continued
 Stock
    
    
    Equity
    
    
    
    
    
    
    AccumulatedShare
    
    
    Options and
    
    
    Component of
    
    
    
    
    
    
    Other
    
    
    Attributable to
    
    
    Non-Common Shares
    
    
    Purchase
    
    
    Restricted
    
    
    Convertible
    
    
    Retained
    
    
    Comprehensive
    
    
    Shareholders of
    
    
    controllingShares
    
    
    Amount
    
    
    Warrants
    
    
    Share Units
    
    
    Senior Notes
    
    
    Earnings
    
    
    Income
    
    
    Goldcorp Inc.
    
    
    interests
    
    
    TotalAt December 31, 2009
    
    
    733,557
    
    
    
    12,579.8
    
    
    
    50.0
    
    
    
    123.2
    
    
    
    155.9
    
    
    
    2,345.5
    
    
    
    238.8
    
    
    
    15,493.2
    
    
    
    51.1
    
    
    
    15,544.3Common shares
issued in
connection with
the acquisition of
the Cerro Negro
project(note
5(a))
    
    
    61,059
    
    
    
    2,785.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,785.3
    
    
    
    
    
    
    
    2,785.3Non-controlling
interest in
connection with
the acquisition of
the El Morro
project(note
5(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    213.1
    
    
    
    213.1Stock options
exercised, and
restricted share
units issued and vested
       
    
    3,758
    
    
    
    132.0
    
    
    
    
    
    
    
    (36.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    95.8
    
    
    
    
    
    
    
    95.8Fair value of
stock options and
restricted share
units issued and
vested(note
21(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    63.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    63.0
    
    
    
    
    
    
    
    63.0Change in
ownership interest
in Terrane(note 22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13.9
    
    
    
    
    
    
    
    13.9
    
    
    
    (42.8
    )
    
    
    (28.9
    )Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (154.4
    )
    
    
    
    
    
    
    (154.4
    )
    
    
    
    
    
    
    (154.4
    )Net earnings (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,574.3
    
    
    
    
    
    
    
    1,574.3
    
    
    
    (8.2
    )
    
    
    1,566.1Other
comprehensive
income(note
19(b))
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    323.1
    
    
    
    323.1
    
    
    
    
    
    
    
    323.1At December 31, 2010
    
    
    798,374
    
    
    $
    15,497.1
    
    
    $
    50.0
    
    
    $
    150.0
    
    
    $
    155.9
    
    
    $
    3,779.3
    
    
    $
    561.9
    
    
    $
    20,194.2
    
    
    $
    213.2
    
    
    $
    20,407.4
 (note 21)  (note 23)




---



##### 



Consolidated Statements of Comprehensive Income  Years Ended December
 2010
    
    
    2009
    
    
    2008Net earnings
    
    $
    1,566.1
    
    
    $
    238.2
    
    
    $
    1,483.3Other comprehensive income (loss), net of tax (note 19(b)):Unrealized gains (losses) on available-for-sale securities
    
    
    321.0
    
    
    
    184.9
    
    
    
    (124.0
    )Reclassification adjustment for losses (gains) included in net earnings
    
    
    2.1
    
    
    
    (43.0
    )
    
    
    111.0Adjustment arising from acquisition of Gold Eagle
    
    
    
    
    
    
    
    
    
    
    (29.2
    )Adjustment arising from disposition of Silver Wheaton shares
    
    
    
    
    
    
    
    
    
    
    (17.7
    )323.1
    
    
    
    141.9
    
    
    
    (59.9
    )Comprehensive income
    
    $
    1,889.2
    
    
    $
    380.1
    
    
    $
    1,423.4Attributable to:Shareholders of Goldcorp Inc.
    
    $
    1,897.4
    
    
    $
    382.1
    
    
    $
    1,414.4Non-controlling interests
    
    
    (8.2
    )
    
    
    (2.0
    )
    
    
    9.0$
    1,889.2
    
    
    $
    380.1
    
    
    $
    1,423.4




---



##### 



Notes to the Consolidated Financial Statements  Years Ended December 31, 2010, 2009 and 2008
 1.
    
    DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONSGoldcorp Inc. (Goldcorp or the Company) is a gold producer engaged in the operation,
exploration, development and acquisition of precious metal properties in Canada, the United
States, Mexico and Central and South America. The Companys current sources of operating cash
flows are primarily from the sale of gold, copper, silver, lead and zinc.At December 31, 2010, the Companys producing mining properties were comprised of the Red Lake,
Porcupine and Musselwhite gold mines in Canada; the Peñasquito gold/silver/lead/zinc and Los
Filos and El Sauzal gold mines in Mexico; the Marlin gold/silver mine in Guatemala; the
Alumbrera gold/copper mine (37.5% interest) in Argentina; and the Marigold (66.7% interest) and
Wharf gold mines in the United States.The Companys significant development projects at December 31, 2010 include the Cochenour (note
4(c)), Éléonore and Hollinger gold projects in Canada;
the Noche Buena and Camino Rojo (note5(c))
gold/silver projects in Mexico; the Cerro Blanco gold/silver project in Guatemala;
the Cerro Negro gold project in Argentina (note5(a)); the El Morro gold/copper project (70%
interest) in Chile (note5(b))and the Pueblo Viejo gold project (40% interest) in the Dominican
Republic. The Company also owns a 41.2% equity interest in Tahoe Resources Inc., a publicly
traded company engaged in silver exploration and development, including the Escobal silver
project it purchased from Goldcorp on June 8, 2010 (note4(b)), and a 36% equity interest in
Primero Mining Corp., a publicly traded company engaged in acquiring and developing precious
metal resource properties, including the San Dimas gold/silver mines in Mexico it purchased from
Goldcorp on August 6, 2010 (note4(a)).On February 14, 2008, Goldcorp disposed of its remaining 48% interest in Silver Wheaton Corp.
(Silver Wheaton) with continuing involvement represented by arrangements it entered into to
sell silver produced from its Los Filos and Peñasquito mines to Silver Wheaton (note4(d)).During the first quarter of 2008, the Companys 21% equity interest in Peak Gold Ltd. (Peak
Gold) was reduced to 18% upon exercise of special warrants. On June 30, 2008, Peak Gold
completed a business combination with Metallica Resources Inc. and New Gold Inc. (New Gold)
with the new combined company carrying on as New Gold. As a result, the Companys investment in
Peak Gold converted into a 7% ownership of New Gold. On October 13, 2009, the Company disposed
of its 7% interest in New Gold (note19(b)(ii)).On September 25, 2008, the Company acquired the net assets of Gold Eagle Mines Ltd. which
includes Cochenour, a gold exploration project southwest of Goldcorps Red Lake mines (note
4(c)).On February 4, 2010, the Company completed its acquisition of 100% of the outstanding common
shares of Canplats Resources Corporation (Canplats), the owner of a 100% interest in the
Camino Rojo gold/silver project in Mexico. This project is located approximately 50 kilometres
southeast of Goldcorps Peñasquito project in Mexico (note5(c)).On February 16, 2010, the Company acquired a 70% interest in Sociedad Contractual Minera El
Morro (SCM), the owner of the El Morro advanced stage gold/copper project located in
north-central Chile (the El Morro project), and associated loan receivable balances from a
subsidiary of New Gold. The remaining 30% interest in the El Morro project is held by New Gold
(note5(b)).On June 8, 2010, the Company completed the sale of its Escobal silver project in Guatemala
(Escobal) to Tahoe Resources Inc. (Tahoe) in exchange for cash and a 41.2% equity interest
in Tahoe (note4(b)).On August 6, 2010, the Company sold to Primero Mining Corp. (Primero), formerly named Mala
Noche Resources Corp., the assets and certain liabilities of the San Dimas gold/silver mines in
Mexico (San Dimas) and the associated silver purchase




---



##### 



agreement to sell silver produced at San Dimas to Silver Wheaton in
exchange for cash, a promissory note, a convertible promissory note and a 36% equity interest in
Primero (note4(a)).On September 1, 2010, the commissioning of the Peñasquito gold/silver/lead/zinc mine was
completed. Lead and zinc concentrates, with most of the gold and silver production designed to
report to the lead concentrate, are now routinely being produced and sold from both processing
lines at Peñasquito (note10(d)).Prior to disposition of its
interest on October 20, 2010, the Company held a 58.1% interest in
Terrane Metals Corp. (Terrane), a publicly traded company engaged in the development of the
Mt. Milligan gold/copper project in Canada. On October 20, 2010, the Company completed the sale
of its remaining 58.1% interest in Terrane to Thompson Creek Metals Inc. (Thompson Creek) in
exchange for cash and common shares of Thompson Creek, representing approximately 8% of Thompson
Creeks issued and outstanding common shares (note 6).On December 29, 2010,
the Companys scheme of arrangement involving Andean
Resources Limited (Andean) and its shareholders was
implemented and as a result Goldcorp acquired
all of the outstanding shares of Andean. The principal mining property of Andean is its 100%
indirectly owned Cerro Negro gold project, an advanced-stage, high-grade vein system in
Argentina (note5(a)).2.
    
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese consolidated financial statements have been prepared by the Company in accordance with
Canadian generally accepted accounting principles (Canadian GAAP) using the following
significant accounting policies.
 (a)
    
    Basis of presentation and principles of consolidationThese consolidated financial statements include the accounts of the Company and all of its
subsidiaries.The principal mining properties in which Goldcorp has interests and their geographic
locations at December 31, 2010, are listed below:
 Mining properties andDirect legal parent entity (operating
    
    
    
    Ownership
    
    Basis of
    
    development projects ownedsegment)(note 26)
    
    Location
    
    interest
    
    presentation
    
    (note 10)Red Lake Gold Mines Ontario Partnership (Red Lake)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Red Lake and Campbell
complexes, and Cochenour
project (note
4(c))Goldcorp Canada Ltd./Goldcorp Inc. (Porcupine)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Porcupine mines and Hollinger
projectGoldcorp Canada Ltd./Goldcorp Inc. (Musselwhite)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Musselwhite mineLes Mines Opinaca Ltée (Éléonore)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Éléonore projectMinera Peñasquito SA de CV and Camino Rojo S.A. de C.V.
(Peñasquito)
    
    Mexico
    
    
    100
    %
    
    Consolidated
    
    Peñasquito mine, and Noche
Buena and Camino Rojo (note 5(c))projectsDesarrollos Mineros San Luis S.A. de C.V. (Los Filos)
    
    Mexico
    
    
    100
    %
    
    Consolidated
    
    Los Filos minesMinas de la Alta Pimeria SA de CV (El Sauzal)
    
    Mexico
    
    
    100
    %
    
    Consolidated
    
    El Sauzal mineMontana Exploradora de Guatemala SA
(Marlin)
    
    Guatemala
    
    
    100
    %
    
    Consolidated
    
    Marlin mine (note 27(b))Entre Mares de Guatemala SA (Cerro Blanco)
    
    Guatemala
    
    
    100
    %
    
    Consolidated
    
    Cerro Blanco projectMinera Alumbrera Ltd. (Alumbrera)
    
    Argentina
    
    
    37.5
    %
    
    Proportionately
consolidated
    
    Alumbrera mine,
incorporated joint ventureOroplata SA (Cerro Negro)
    
    Argentina
    
    
    100
    %
    
    Consolidated
    
    Cerro Negro project(note 5(a))Marigold Mining Company (Marigold)
    
    United States
    
    
    66.7
    %
    
    Proportionately
consolidated
    
    Marigold mine, unincorporated
joint ventureWharf Resources (USA) Inc. (Wharf)
    
    United States
    
    
    100
    %
    
    Consolidated
    
    Wharf mine




---



##### 



Mining properties andDirect legal parent entity (operating
    
    
    
    Ownership
    
    Basis of
    
    development projects ownedsegment)(note 26)
    
    Location
    
    interest
    
    presentation
    
    (note 10)Sociedad Contractual Minera El Morro (El Morro)
    
    Chile
    
    
    70
    %
    
    Consolidated
    
    El Morro project(notes 5(b) & 16(d))Primero Mining Corp. (Primero)
    
    Mexico
    
    
    36
    %
    
    Accountedfor using theequity method
    
    San Dimas mines(note 4(a))Tahoe Resources Inc. (Tahoe)
    
    Guatemala
    
    
    41.2
    %
    
    Accountedfor using theequity method
    
    Escobal project(note 4(b))Pueblo Viejo Dominicana Corporation (Pueblo Viejo)
    
    Dominican
Republic
    
    
    40
    %
    
    Accountedfor using theequity method
    
    Pueblo Viejo project(notes 19(d)(ii) & 27(a))
 All adjustments necessary to present fairly the financial position of the Company at
December 31, 2010 and results of its operations and cash flows for all periods presented have
been made. Intercompany transactions and resulting balances with the Companys subsidiaries
have been eliminated. Intercompany transactions and resulting balances with the Companys
joint ventures have been eliminated to the extent of the Companys interests. Intercompany
transactions with the Companys equity method investees have been eliminated.Variable interest entities (VIEs), as defined by Accounting Guideline 15  Consolidation
of Variable Interest Entities,are consolidated by the primary beneficiary who absorbs the
majority of the entitys expected losses and/or expected residual returns. The Company has
determined that none of the entities in which it has interests, which are not already
consolidated as subsidiaries, qualify as VIEs.(b)
    
    Use of estimatesThe preparation of consolidated financial statements in conformity with Canadian GAAP
requires that the Companys management make estimates based on assumptions about future
events that affect the amounts reported in the consolidated financial statements and related
notes to the consolidated financial statements. Actual results may differ from those
estimates and assumptions. Estimates and assumptions are reviewed on an ongoing basis based
on historical experience and other factors that are considered to be relevant under the
circumstances. Revisions to estimates and assumptions are accounted for prospectively.Significant estimates and assumptions made in the preparation of these consolidated financial
statements include, but are not limited to:
 (i)
    
    the recoverability of accounts receivable, income and mining taxes receivable,
the Primero notes receivable (notes4(a)(ii)&4(a)(iii))and investments;(ii)
    
    the quantities of ore stacked on leach pads and in process, and of recoverable
gold in this material, used in determining the costs of inventories sold in operating
expenses and the estimated net realizable value of inventories on hand;(iii)
    
    the estimated net realizable value of stockpiled ore;(iv)
    
    the economic recoverability and probability of future economic benefits of
exploration and development costs incurred and capitalized to mining interests;(v)
    
    the recoverable proven and probable mineral reserves and resources, life of mine,
value for exploration potential mineral properties, future metal prices, future
operating results and net cash flows and recoverability of capitalized costs for mining
properties;(vi)
    
    the point at which operating levels intended by management are considered to be
reached, the recoverable proven and probable reserves, and the related depreciation and
depletion of each mining property;(vii)
    
    the useful lives and related depreciation of plant and equipment;(viii)
    
    the future economic benefit of stripping costs incurred and capitalized during
production as part of development costs for mining properties;(ix)
    
    the fair values of reporting units with goodwill and the recoverability of
goodwill;




---



##### 



(x)
    
    the expected shortfall ounces and fair value of the outstanding guarantee to
Silver Wheaton with respect to cumulative silver production at the San Dimas mine owned
by Primero (note4(a)(iv));(xi)
    
    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;(xii)
    
    the inputs used in determining the fair values of stock based compensation
granted and the related current period share-based compensation expense;(xiii)
    
    the inputs used in measuring the accrued pension benefit obligation and accrued
benefit liability;(xiv)
    
    the fair values of assets and liabilities acquired in business combinations; and(xv)
    
    the provision for current and future income and mining taxes including expected
periods of reversals of timing differences, recoverability of future income tax assets
including expectations of future taxable income, applicable tax strategies, and the
likelihood that tax positions taken will be sustained upon examination by applicable tax
authorities.
 (c)
    
    Business combinationsA business combination is defined as an acquisition of assets and liabilities that constitute
a business. A business is an integrated set of activities and assets that is capable of being
conducted and managed for the purpose of providing a return to the Company and its
shareholders in the form of dividends, lower costs or other economic benefits. A business
consists of inputs, including non-current assets, and processes, including operational
processes, that when applied to those inputs, have the ability to create outputs that provide
a return to the Company and its shareholders. A business also includes those assets and
liabilities that do not necessarily have all the inputs and processes required to produce
outputs, but can be integrated with the inputs and processes of the Company to create
outputs. When acquiring a set of activities or assets in the exploration and development
stage, which may not have outputs, the Company considers other factors to determine whether
the set of activities or assets is a business. Those factors include, but are not limited to,
whether the set of activities or assets:
 (i)
    
    has begun planned principal activities;(ii)
    
    has employees, intellectual property and other inputs and processes that could
be applied to those inputs;(iii)
    
    is pursuing a plan to produce outputs; and(iv)
    
    will be able to obtain access to customers that will purchase the outputs.
 Not all of the above factors need to be present for a particular integrated set of activities
or assets in the exploration and development stage to qualify as a business.Business combinations are accounted for using the acquisition method whereby identifiable
assets acquired and liabilities assumed, including contingent liabilities, are recorded at
100% of their acquisition-date fair values. The acquisition date is the date the Company
obtains control over the acquiree, which is generally the date that consideration is
transferred and the Company acquires the assets and assumes the liabilities of the acquiree.
The Company considers all relevant facts and circumstances in determining the acquisition
date.The consideration transferred in a business combination is measured at fair value, which is
calculated as the sum of the acquisition-date fair values of the assets transferred by the
Company, the liabilities, including contingent consideration, incurred and payable by the
Company to former owners of the acquiree and the equity interests issued by the Company. The
measurement date for equity interests issued by the Company is the acquisition date.
Acquisition-related costs, other than costs to issue debt or equity securities, of the
acquirer, including investment banking fees, legal fees, accounting fees, valuation fees, and
other professional or consulting fees are expensed as incurred. The costs to issue equity
securities of the Company as consideration for the acquisition are reduced from share capital
as share issue costs.




---



##### 



It generally requires time to obtain the information necessary to identify and measure the
following as of the acquisition date:
 (i)
    
    the identifiable assets acquired, liabilities assumed and any non-controlling
interest in the acquiree;(ii)
    
    the consideration transferred for the acquiree;(iii)
    
    in a business combination achieved in stages, the equity interest in the
acquiree previously held by the acquirer; and(iv)
    
    the resulting goodwill or gain on a bargain purchase.
 If the initial accounting for a business combination is incomplete by the end of the
reporting period in which the combination occurs, the Company reports in its financial
statements provisional amounts for the items for which the accounting is incomplete. During
the measurement period, the Company will retrospectively adjust the provisional amounts
recognized at the acquisition date to reflect new information obtained about facts and
circumstances that existed as of the acquisition date and, if known, would have affected the
measurement of the amounts recognized as of that date. During the measurement period, the
Company will also recognize additional assets or liabilities if new information is obtained
about facts and circumstances that existed as of the acquisition date and, if known, would
have resulted in the recognition of those assets and liabilities as of that date. The
measurement period ends as soon as the Company receives the information it was seeking about
facts and circumstances that existed as of the acquisition date or learns that more
information is not obtainable and shall not exceed one year from the acquisition date.Non-controlling interests are recorded at their proportionate share of fair value of
identifiable net assets acquired. The excess of (i) total consideration transferred by the
Company, measured at fair value, including contingent consideration, and (ii) the
non-controlling interest in the acquiree, over the acquisition-date fair value of net assets
acquired, is recorded as goodwill.(d)
    
    Revenue recognitionRevenue from the sale of metals is recognized when the significant risks and rewards of
ownership have passed. This is when persuasive evidence of an arrangement exists, title and
insurance risk passes to the buyer, collection is reasonably assured and the price is
reasonably determinable. In circumstances where title is retained to protect the financial
security interests of the Company, revenue is recognized when the significant risks and
rewards of ownership have passed.Revenues from metal concentrate sales are subject to adjustment upon final settlement of
metal prices, weights, and assays as of a date that is typically a few months after the
shipment date. The Company records adjustments to revenues monthly based on the quoted
forward prices for the expected settlement period. Adjustments for weights and assays are
recorded when results are determinable or on final settlement. Accounts receivable for metal
concentrate sales are therefore measured at fair value at the end of each period. Refining
and treatment charges are netted against revenues from metal concentrate sales.(e)
    
    Investment in joint venturesThe Company conducts a portion of its business through joint ventures under which the joint
venture participants are bound by contractual agreements establishing joint control over the
joint ventures. The Company records its proportionate share of assets, liabilities, revenues
and expenses of the joint ventures.(f)
    
    Investments in entities subject to significant influenceThe Company conducts a portion of its business through equity interests in entities on which
it exercises significant influence. These interests are recorded as investments accounted for
using the equity method. These investments are initially recorded at the consideration
amounts given up on the dates the equity interests were acquired. Thereafter, the Company
records additional funds invested including those to finance ongoing project development
activities and its share of the equity investees earnings or loss as an
increase or decrease to the carrying amounts of its investments. These investments are
included in mining interests on the Consolidated Balance Sheet.




---



##### 



(g)
    
    Cash and cash equivalents
 Cash and cash equivalents include cash and those short-term money market instruments that are
readily convertible to cash with original terms of three months or less.(h)
    
    Inventories and stockpiled oreFinished goods, work-in-process, heap leach ore and stockpiled ore are valued at the lower of
average production cost and net realizable value. Net realizable value is calculated as the
estimated price at the time of sale based on prevailing and long-term metal prices less
estimated future production costs to convert the inventories into saleable form.Ore extracted from the mines is stockpiled and subsequently processed into finished goods
(gold and by-products in doré or concentrate form). Production costs are included in
work-in-process inventory based on the current mining costs incurred up to the point prior to
the refining process, including applicable depreciation and depletion of mining interests,
and removed at the average production cost per recoverable ounce of gold. The average
production costs of finished goods represent the average costs of work-in-process inventories
incurred prior to the refining process, plus applicable refining costs and associated
royalties.The recovery of gold and by-products from certain oxide ores is achieved through the heap
leaching process at the Peñasquito, Los Filos, Marigold and Wharf mines. Under this method,
ore is stacked on leach pads where it is treated with a chemical solution which dissolves the
gold contained in the ore. The resulting pregnant solution is further processed in a plant
where the gold is recovered. Production costs are included in heap leach ore
inventory based on current mining and leaching costs, including applicable depreciation and
depletion of mining interests, and are removed from heap leach ore inventory as ounces of
gold are recovered at the average cost per recoverable ounce of gold on the leach pads.
Estimates of recoverable gold on the leach pads are calculated from the quantities of ore
placed on the leach pads (measured tonnes added to the leach pads), the grade of ore placed
on the leach pads (based on assay data), and a recovery percentage (based on ore type).Supplies are valued at the lower of average cost and replacement cost.(i)
    
    Mining interestsMining interests include mining properties and related plant and equipment.Mining propertiesMining properties are comprised of reserves, resources and exploration potential.
 Resources and exploration potential represent the value beyond proven and probable reserves.
The carrying amounts of resources and exploration potential are classified as non-depletable
mining properties in note 10. On an annual basis or when otherwise appropriate, carrying
amounts of mining properties are reclassified from non-depletable to depletable as a result
of the conversion into reserves. The carrying amounts of reserves are depletable when the
related mining property has reached operating levels intended by management.RecognitionCapitalized costs associated with mining properties include the following:
 (i)
    
    Costs of direct acquisitions of production, development and exploration stage
properties;(ii)
    
    Costs attributed to mining properties acquired in connection with business combinations;(iii)
    
    Expenditures related to the development of mining properties;(iv)
    
    Expenditures related to economically recoverable exploration;(v)
    
    Borrowing costs incurred that are directly attributable to mining properties and
qualifying plant and equipment;




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##### 



(vi)
    
    Certain costs incurred during production, net of proceeds from sales, prior to
reaching operating levels intended by management; and(vii)
    
    Estimates of reclamation and
closure costs (note2(l)).
 Acquisitions:The cost of acquiring a mining property either as an individual asset purchase or as part of
a business combination is capitalized and represents the propertys fair value at the date of
acquisition. Fair value is determined by estimating the value of the propertys reserves,
resources and exploration potential.Development expenditures:Drilling and related costs incurred to define and delineate a mineral deposit that has not
been classified as proven and probable reserves at a development stage or production stage
mine are capitalized as part of the carrying amount of the related property in the period
incurred, when management determines that there is sufficient
evidence that the expenditures
will result in a future economic benefit to the Company.Exploration expenditures:Drilling and related costs incurred on sites without an existing mine and on areas outside
the boundary of a known mineral deposit which contains proven and probable reserves are
exploration expenditures and are expensed as incurred to the date of establishing that costs
incurred are economically recoverable. Exploration expenditures incurred subsequent to the
establishment of economic recoverability are capitalized and included in the carrying amount
of the related property.Management uses the following criteria in its assessments of economic recoverability and
probability of future economic benefit:
 
    
    Geology: there is sufficient geologic and economic certainty of converting a mineral
deposit into a proven and probable reserve at a development stage or production stage
mine, based on known geology and metallurgy. There is a history of conversion of
resources to reserves at operating mines to support the likelihood of conversion.
    
    Scoping or feasibility: 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 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.
 Therefore prior to capitalizing exploration drilling, development and related costs,
management determines that the following conditions have been met:
 
    
    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.




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##### 



Borrowing costs:Borrowing costs incurred that are directly attributable to acquiring and developing mining
properties and constructing new facilities are capitalized and included in the carrying
amounts of related assets until mining properties and facilities are ready for their intended
use.Costs incurred during production:Capitalization of costs incurred ceases when the related mining property has reached
operating levels intended by management. Production costs incurred prior to this point are
capitalized and the proceeds from sales are offset against costs capitalized. See below for
determination of when operating levels intended by management is considered to be reached.Mine development costs incurred to maintain current production are included in earnings.
These costs include the development and access costs (tunneling) of production drifts to
develop the ore body in the current production cycle. For those areas being developed which
will be mined in future periods, the costs incurred are capitalized and depleted when the
related mining area is mined as compared to current production areas, where development costs
are included in operating expenses given that the short-term nature of these expenditures
matches the economic benefit of the ore being mined.In open pit mining operations, it is necessary to incur costs to remove overburden and other
mine waste materials in order to access the ore body (stripping costs). During the
development of a mine, stripping costs are capitalized and included in the carrying amount of
the related mining property and depleted over the productive life of the mine using the
unit-of-production method. During the production phase of a mine, stripping costs incurred to
provide access to sources of reserves that will be produced in future periods that would not
have otherwise been accessible are capitalized and included in the carrying amount of the
related mining property. Stripping costs incurred and capitalized during the production phase
are depleted using the unit-of-production method over the reserves that directly benefit from
the specific stripping activity. Costs incurred for regular waste removal that do not give
rise to future economic benefits are included in operating expenses.MeasurementMining properties are recorded at cost less accumulated depletion and impairment losses.Depletion:When a mining property reaches the operating levels intended by management, its capitalized
costs for reserves are depleted using the unit-of-production method, whereby the numerator is
the number of ounces produced and the denominator is the estimated recoverable ounces
contained in proven and probable reserves at the related mine.Operating levels intended by management are considered to be reached when operational
commissioning of major mine and plant components is completed, operating results are being
achieved consistently for a period of time and there are indicators that these operating
results will be continued. Other factors include one or more of the following:
 (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.
 Management reviews the estimated total recoverable ounces contained in proven and probable
reserves at each financial year end and when events and circumstances indicate that such a
review should be made. Changes to estimated total recoverable ounces contained in proven and
probable reserves are accounted for prospectively.




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##### 



Impairment:The Company reviews and evaluates its mining properties for impairment annually or when
events or changes in circumstances indicate that the related carrying amounts may not be
recoverable. Impairment is considered to exist if the total estimated future undiscounted net
cash flows of a mining property are less than the carrying amount. When it is determined that
a mining property is impaired, an impairment loss is recorded and calculated as the
difference between the discounted estimated future net cash flows and the carrying amount.
Future cash flows are estimated based on expected future production, metal prices, operating
costs and capital costs.DerecognitionUpon disposal or abandonment, the carrying amounts of mining properties and plant and
equipment and accumulated depreciation and depletion are removed from the accounts and any
associated gains or losses are recorded in earnings.Plant and equipmentPlant and equipment are recorded at cost less accumulated depreciation and impairment losses.
Plant and equipment are depreciated over the estimated useful lives of the related assets.
Assets under construction are depreciated when they are substantially complete and available
for their intended use, over their estimated useful lives. Repairs and maintenance of plant
and equipment are expensed as incurred. Costs incurred to enhance the service potential of
plant and equipment are capitalized and depreciated over the remaining useful life of the
improved asset.(j)
    
    GoodwillWhen multiple reporting units are acquired in one business combination, goodwill is allocated
to reporting units as of the date of the business combination, by determining estimates of
the fair value of each reporting unit and comparing this amount to the fair values of assets
and liabilities in the reporting unit. Goodwill is not amortized.The Company performs goodwill impairment tests at each financial year end and when events and
circumstances indicate that the carrying amounts may no longer be recoverable. In performing
the impairment tests, the Company estimates the fair values of its reporting units that
include goodwill and compares those fair values to the reporting units carrying amounts. If
a reporting units carrying amount exceeds its fair value, the Company compares the implied
fair value of the reporting units goodwill to the carrying amount, and any excess of the
carrying amount of goodwill over the implied fair value is charged to earnings.(k)
    
    Income and mining taxesThe Company uses the liability method of accounting for income and mining taxes. Under the
liability method, future tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and for unused tax losses and
other income tax deductions.In a business combination, the liability method requires the tax effects of such differences,
unused tax losses and other income tax deductions that exist at the acquisition date, or
arise as a result of the acquisition, to be recognized as identifiable future income tax
assets acquired and/or liabilities assumed and included in the allocation of the cost of the
purchase. In addition, a future income tax asset is recognized as an identifiable asset
acquired in the acquisition, when at the time of the business acquisition, the Company
considers it more likely than not that it will realize a future income tax asset of its own
or its subsidiaries that was previously unrecognized. Subsequent changes in recognized future income tax
assets are recorded in earnings.When assets are acquired in a transaction other than a business combination, the future
income tax assets and liabilities resulting from such differences are deducted from and added
to the cost of the assets, respectively.




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##### 



Future tax assets and liabilities are measured using enacted or substantively enacted tax
rates expected to apply when the related assets are realized or the liabilities are settled.
A valuation allowance is recorded against a future tax asset if the asset is not considered
to be more likely than not to be realized. The effect on future tax assets and liabilities
of a change in tax rates is recognized in earnings in the period in which the change is
substantively enacted. Future tax assets and liabilities are considered monetary assets.
Future tax balances denominated in other than United States dollars (US dollars) are
translated into US dollars using current exchange rates at the balance sheet date.(l)
    
    Reclamation and closure cost obligationsThe Company records a liability for the estimated future costs of reclamation and closure of
its operating and inactive mines, and development projects, discounted to net present value
using the Companys credit adjusted risk free interest rate.The estimated net present value of the Companys reclamation and closure cost obligations is
re-measured on an annual basis or when changes in circumstances occur and/or new material
information becomes available. Increases or decreases to the obligations arise due to changes
in legal or regulatory requirements, changes to the extent of environmental remediation
required and cost estimate changes. The net present value of the estimated impact of these
changes is recorded in the period in which the changes are identified and quantifiable. Changes
to the Companys reclamation and closure cost obligations relating to operating mines and
development projects are recorded with a corresponding increase to the carrying amounts of
related assets. Changes to the Companys reclamation and closure cost obligations related to
inactive mines are recorded directly in earnings as reclamation expense included in
depreciation and depletion.(m)
    
    Employee pension plans
 The Companys required contributions under its defined contribution pension plans are charged
to earnings in the period incurred.The Company accrues the costs and related obligations associated with its defined benefit
pension plans based on managements best estimates of expected plan investment performance,
salary escalation, and other relevant factors and actuarial computations using the projected
benefit method. 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.(n)
    
    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 changes in fair values recorded in
earnings in the period they occur. Financial assets and liabilities are classified as
held-for-trading when: (i) they are acquired or incurred principally for short-term profit
taking; (ii) they meet the definition of a derivative; or (iii) they have been designated as
held-for-trading on initial recognition. Contracts to buy or sell a non-financial item that
can be settled net in cash, which includes when the non-financial item is readily convertible
to cash, and has not been entered into and held for the purpose of receipt or delivery of the
non-financial item in accordance with the Companys expected purchase, sale or use meet the
definition of a non-financial derivative. Non-financial derivatives are classified as
held-for-trading.




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##### 



A financial asset is classified as available-for-sale when: (i) it is not classified as a
loan and receivable, a held-to-maturity investment or held-for-trading; or (ii) it is
designated as available-for-sale on initial recognition. 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 its fair value is other than
temporary. When available-for-sale financial assets are derecognized, the cumulative
mark-to-market gains or losses that had been previously recognized in
OCI are reclassified to earnings for the period. When there is objective evidence
that an available-for-sale financial asset is impaired and the
decline in its fair value is other
than temporary, the cumulative loss that had been previously recognized directly in OCI is
reclassified to earnings for the period. 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 method. The effective
interest method is a method of calculating the amortized cost of a financial asset or
financial liability and of allocating the effective interest income or interest expense over
the term of the financial asset or financial liability. The effective interest rate is the
rate that exactly discounts estimated future cash receipts or payments throughout the term of
the financial instrument to the net carrying amount of the financial asset or financial
liability, respectively.(o)
    
    Non-controlling interestsNon-controlling interests represent the minority shareholders interest in the Companys less
than wholly-owned subsidiaries. They are classified as a separate component of equity. On
initial recognition, non-controlling interests are measured at their proportionate share of
the acquisition-date fair value of identifiable net assets of the related subsidiary acquired
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. Changes in the Companys ownership interest in a subsidiary that do not
result in a loss of control are recorded as equity transactions.(p)
    
    Stock based compensationThe Company recognizes a stock based compensation expense for all stock options
and
restricted share units (RSUs) awarded to employees, officers and directors based on the
fair values of the stock options and RSUs at the date of grant. The fair values of stock options
and RSUs at the date of grant are expensed over the vesting periods
of the stock options and RSUs,
respectively, with a corresponding increase to equity. The fair value of stock options is
determined using the Black-Scholes option pricing model with market related inputs as of the
date of grant. Stock options with graded vesting schedules are accounted for as separate
grants with different vesting periods and fair values. The fair value of RSUs is the market
value of the underlying shares at the date of grant. Changes to the number of awards that
will eventually vest resulting from actual forfeitures of unvested stock options and RSUs are
accounted for prospectively.The Company recognizes a stock based compensation expense for performance share unit (PSU)
awards to eligible executives that are settled in cash, based on the current intrinsic values
of the PSUs. The current intrinsic values, measured as the value of the anticipated
settlement at the end of the associated performance periods based on the current quoted
market value of the underlying shares and applicable multiplier for current performance, are
expensed over the vesting period of the PSUs and recorded as a liability. The current
intrinsic values are re-measured at the end of each period, with resulting adjustments to the
accrued liability recorded as compensation cost or recovery in the period. The accrued
liability for PSUs that are forfeited are derecognized and recorded as a compensation cost
recovery in the period of forfeiture.(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




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##### 



liabilities denominated in
currencies other than the US dollar (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 at 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 except for 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
Statement of Cash Flows.(r)
    
    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 the Companys
convertible senior notes is 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.
 3.
    
    CHANGES IN ACCOUNTING POLICIES AND PRIMARY BASIS OF ACCOUNTINGAccounting policies implemented effective January 1, 2010In January 2009, the CICA issued Handbook Sections 1582  Business Combinations(Section
1582), 1601  Consolidated Financial Statements(Section 1601) and 1602  Non-controlling
Interests(Section 1602) which replace CICA Handbook Sections 1581  Business Combinations
(Section 1581) and 1600  Consolidated Financial Statements.Section 1582 establishes
standards for the accounting for business combinations that are equivalent to the business
combination accounting standards under International Financial Reporting Standards (IFRS).
Sections 1601 and 1602 establish standards for the preparation of consolidated financial
statements and the accounting for non-controlling interests in financial statements that are
equivalent to the standards under IFRS. Section 1582 is required for business combinations with
acquisition dates on or after January 1, 2011. Sections 1601 and 1602 are required for interim
and annual consolidated financial statements relating to the fiscal year beginning January 1,
2011. Earlier adoption of these sections is permitted, which requires that all three sections be
adopted at the same time. The Company early adopted these sections effective January 1, 2010.Under Section 1582, business combinations are accounted for using the acquisition method,
compared to the purchase method required under Section 1581. The significant changes that
result from applying the acquisition method of Section 1582 include: (i) the definition of a
business is broadened to include development stage entities, and therefore more acquisitions are
accounted for as business combinations rather than asset acquisitions; (ii) the measurement date
for equity interests issued by the acquirer is the acquisition date instead of a few days before
and after terms are agreed to and announced, which may significantly change the amount recorded
for the acquired business if share prices at the agreement and announcement date and the
acquisition date differ; (iii) all future adjustments to income tax estimates are recorded as
income tax expense or recovery, whereas under Section 1581, certain changes in income tax
estimates were recorded to goodwill; (iv) acquisition-related costs, other




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than costs to issue
debt or equity securities, of the acquirer, including investment banking fees, legal fees,
accounting fees, valuation fees, and other professional or consulting fees are expensed as
incurred, whereas under Section 1581, these costs were
capitalized as part of the cost of the business combination; (v) assets acquired and liabilities assumed are recorded at
100% of their fair values even if less than 100% is obtained, whereas under Section 1581, only
the controlling interests portion of assets and liabilities acquired were recorded at fair
value; and (vi) non-controlling interests are recorded at their proportionate share of the fair
value of identifiable net assets acquired, whereas under Section 1581, non-controlling interests
were recorded at their proportionate share of the carrying value of net assets acquired.
 Under Section 1602, non-controlling interests are measured at their proportionate share of the
fair value of identifiable net assets acquired on initial recognition. For presentation and
disclosure purposes, non-controlling interests are classified as a separate component of equity.
In addition, Section 1602 changes the manner in which increases and decreases in ownership
interests are accounted for. Changes in ownership interests in a subsidiary are recorded as
equity transactions and no gain or loss is recognized as long as the parent retains control of
the subsidiary. When a parent company deconsolidates a subsidiary but retains a non-controlling
interest, the non-controlling interest is re-measured at fair value on the date control is lost
and a gain or loss is recognized at that time. Under Section 1602, accumulated losses
attributable to non-controlling interests are no longer limited to the original carrying amount,
and therefore non-controlling interests could have a negative carrying amount. The provisions of
Section 1602 have been applied retrospectively with the exception of the accounting for changes
in the Companys ownership interests in a subsidiary over which control is maintained, the
accounting for a loss of control of a subsidiary and the attribution of net earnings and losses
and other comprehensive income and losses to non-controlling interests.
 Accounting policies implemented during 2009
 On January 1, 2009, the Company adopted CICA Handbook Section 3064  Goodwill and Intangible
Assets(Section 3064), which replaces CICA Handbook Sections 3062  Goodwill and Other
Intangible Assets(Section 3062) and 3450  Research and Development Costsfor fiscal years
beginning on or after October 1, 2008. Various changes were made to other sections of the CICA
Accounting Handbook for consistency purposes. Section 3064 establishes standards for the
recognition, measurement, presentation and disclosure of goodwill subsequent to its initial
recognition and intangible assets. Standards concerning goodwill are unchanged from the
standards included in Section 3062. The adoption of Section 3064 did not result in a material
impact on the Companys consolidated financial statements.
 Effective January 1, 2009, the Company adopted Emerging Issues Committee (EIC) Abstract 173 -
Credit Risk and the Fair Value of Financial Assets and Financial Liabilities(EIC-173) issued
by the CICA. EIC-173, which is applicable for periods ending on or after January 20, 2009 with
earlier adoption encouraged, provides guidance on how to take into account credit risk of an
entity and counterparty when determining the fair value of an entitys financial assets and
financial liabilities, including derivative instruments. The adoption of EIC-173 did not result
in a material impact on the Companys consolidated financial statements.
 In March 2009, the Company adopted EIC Abstract 174  Mining Exploration Costs(EIC-174)
issued by the CICA, which replaces EIC Abstract 126  Accounting by Mining Enterprises for
Exploration Costs(EIC-126) for financial statements issued after March 27, 2009, to provide
additional guidance for mining exploration enterprises on the capitalization of exploration
costs, when an assessment of impairment of these costs is required and conditions indicating
impairment. The adoption of EIC-174 did not result in a material impact on the Companys
consolidated financial statements.
 In June 2009, the
Company adopted the amendments made to CICA Handbook Section 3862 
Financial Instruments  Disclosures (Section 3862) to include
additional disclosure requirements about fair value measurements of financial instruments and to
enhance liquidity risk disclosure requirements for publicly accountable enterprises. The
additional disclosures are applicable to annual financial statements relating to fiscal years
ending after September 30, 2009 (notes19(c)and19(d)(ii)).
 On July 1, 2009, the
Company adopted the amendments made to CICA Handbook Section 3855 
Financial Instruments  Recognition and Measurement(Section 3855) to provide additional
guidance concerning the assessment of embedded derivatives upon reclassification of a financial
asset out of the held-for-trading category, amend the definition of loans and




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receivables, amend
the categories of financial assets into which debt instruments are required or permitted to be
classified, amend the impairment guidance for held-to-maturity debt instruments and require reversal of impairment
losses on available-for-sale debt instruments when conditions have changed. The additional
guidance on assessment of embedded derivatives is applicable for reclassifications made on or
after July 1, 2009. All other amendments are applicable as of January 1, 2009. The adoption of
these amendments did not result in a material impact on the Companys consolidated financial
statements.
 Accounting policies implemented during 2008
 On January 1, 2008, the Company adopted three new presentation and disclosure standards issued
by the CICA. Section 3862 and CICA Handbook Section 3863 
Financial Instruments  Presentationwhich replace CICA
Handbook Section 3861  Financial
Instruments  Disclosure and Presentation(Section 3861) for fiscal years beginning on or
after October 1, 2007, incorporate many of the disclosure requirements of Section 3861, but
place an increased emphasis on disclosure of risks, including both qualitative and quantitative
information about the risk exposures arising from financial instruments (note19(d)). CICA
Handbook Section 1535  Capital Disclosuresestablishes disclosure requirements about the
Companys objectives, policies and processes for managing capital, quantitative data about what
the Company regards as capital, whether the Company has complied with external capital
requirements and, if the entity has not complied, the consequences of such non-compliance (note
20).
 CICA Handbook Section 3031  Inventories(Section 3031) which replaces CICA Handbook Section
3030  Inventoriesfor fiscal years beginning on or after January 1, 2008, establishes standards
for the measurement and disclosure of inventories. The new standard provides more extensive
guidance on the determination of cost, including allocation of overhead, and requires impairment
testing. The adoption of Section 3031 effective January 1, 2008 did not result in a material
impact on the Companys consolidated financial statements.
 On July 1, 2008, the Company adopted EIC Abstract 172  Income Statement Presentation Of A Tax
Loss Carryforward Recognized Following An Unrealized Gain Recorded In Other Comprehensive Income
(EIC-172) issued by the CICA. EIC-172, which is applicable for periods ending on or after
September 30, 2008, requires that the tax benefit from the recognition of previously
unrecognized tax loss carryforwards, consequent to the recording of unrealized gains on
available-for-sale financial assets in OCI be recognized in earnings retrospectively. The
adoption of EIC-172 did not result in a material impact on the Companys consolidated financial
statements.




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Change in primary basis of accounting to be implemented effective January 1, 2011
 In February 2008, the Canadian Accounting Standards Board confirmed January 1, 2011 as the date
that IFRS will replace Canadian GAAP for publicly accountable enterprises, with a transition
date of January 1, 2010. Earlier adoption is permitted. The Company will issue its first IFRS
annual consolidated financial statements for the fiscal year ending December 31, 2011, with
restatement of comparative balance sheets as at December 31, 2010 and January 1, 2010 and
statement of earnings for the year ended December 31, 2010. During the year ending December 31,
2011, the Company will issue interim consolidated IFRS financial statements prepared in
accordance with IAS 34  Interim Financial Reportingfor the periods ending March 31, 2011,
June 30, 2011 and September 30, 2011, with restatement of comparative balance sheets as at
December 31, 2010 and January 1, 2010 and statements of earnings for the comparative periods
presented.
 4.
    
    ACQUISITION AND DISPOSITION OF MINING INTERESTS
 (a)
    
    Disposition of San Dimas and associated Silver Purchase Agreement with Silver WheatonOn August 6, 2010, the Company disposed of the assets and liabilities relating to San Dimas
(the San Dimas Assets), excluding certain non-operational assets, to Primero (note 1). In
connection with the sale of the San Dimas Assets, Primero assumed the Companys obligation to
sell to Silver Wheaton, and Silver Wheaton agreed to purchase from Primero, silver produced
from San Dimas, at a fixed price per ounce (the San Dimas Silver Wheaton Silver Purchase
Agreement).The Company recognized a
gain of $373.2 million ($407.9 million including future income tax
recovery of $180.3 million and net of current income tax expense of $145.6 million), net of selling
costs of $3.4 million, on the date of disposition, calculated as follows:
 Net assets sold and/or derecognized:Cash
    
    $
    0.5Other current assets
    
    
    13.8Mining interestsMining properties and related plant and equipment
    
    
    625.0Deferred excess consideration
    
    
    (415.0
    )Deferred credit
    
    
    (177.5
    )32.5Accounts payable and accrued liabilities
    
    
    (12.8
    )Reclamation and closure cost obligations
    
    
    (9.2
    )Other non-current liabilities
    
    
    (0.4
    )$
    24.4
 The net book value of mining interests derecognized on August 6, 2010 of $32.5 million
includes the unamortized portion of the excess consideration from the disposition of Silver
Wheaton shares in the first quarter of 2008 which was applied as a reduction to the carrying
amount of mining properties at San Dimas. This amount was $415.0 million on August 6, 2010.
The consideration paid to Goldcorp by Silver Wheaton for the San Dimas silver purchase
agreement in 2004 and 2006 which were previously eliminated upon consolidation were also
applied as a reduction to mining interests as a result of the disposition of the Companys
interest in Silver Wheaton in the first quarter of 2008. The unamortized portion of this
deferred credit on August 6, 2010 was $177.5 million (note4(d)).




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##### 



Proceeds and liabilities assumed on disposition:Cash
    
    $
    213.631,151,200 common shares of Primero (i)
    
    
    159.2Working capital adjustment receivable
    
    
    4.0$50.0 million 5-year promissory note (ii)
    
    
    52.6$60.0 million 1-year convertible promissory note (iii)Host note receivable
    
    
    58.4Compound embedded conversion feature
    
    
    1.3489.1Guarantee to Silver Wheaton of Primeros obligation to deliver and
sell to Silver Wheaton 215 million cumulative minimum ounces of
silver by October 15, 2031 (iv)
    
    
    (7.0
    )Obligation to deliver and sell to Silver Wheaton 1.5 million ounces
of silver during each of the four years ending August 5, 2014,
priced at the lesser of $4.04 per ounce, subject to annual
adjustment for inflation, and the prevailing market price (v)
    
    
    (81.1
    )$
    401.0
 (i)
    
    The fair value of the common shares received on the date of disposition is based
on the market price of the shares at the date of disposition of C$5.25 per share ($5.11
per share). The Companys resulting interest in Primero represents approximately 36% of
the issued and outstanding common shares of Primero on August 6, 2010, which has been
accounted for using the equity method and classified as a separate reporting unit and
reportable operating segment (notes10(e)&26(f)).(ii)
    
    The $50.0 million 5-year promissory note receivable from Primero (Primero
promissory note) will be repaid in four annual instalments of $5.0 million on December
31 of each year, beginning December 31, 2011, with the balance receivable on the
maturity date of August 5, 2015, subject to earlier repayments based on annual free cash
flows of Primero Empressa Minera, S.A. de C.V., a wholly-owned subsidiary of Primero.
Interest is receivable on December 31 of each year, calculated as 6% of the balance
outstanding, compounded monthly. The fair value of the Primero promissory note
receivable of $52.6 million on initial recognition was estimated as the present value of
the contractual payments of principal and interest, discounted using an annual effective
interest rate of 5.5% (LIBOR plus 4.5%), being managements estimate of the interest
rate that would be applicable for similar debt issued by Primero on the date the Primero
promissory note was issued (notes 8, 13 &19(c)(ii)).(iii)
    
    The $60.0 million 1-year convertible promissory note receivable from Primero
(Primero convertible note) can be converted by Goldcorp into common shares of Primero
at C$6.00 per share, at any time prior to the maturity date of August 5, 2011. The
Primero convertible note earns interest at 3% per annum, calculated on the balance
outstanding, compounded monthly, which is receivable at the maturity date. On the
maturity date, Primero has the option to convert the outstanding principal balance, at a
price calculated based on the current market price of the underlying shares (the
original maturity conversion price). In the event that Primero provides Goldcorp with
notice to convert the outstanding principal balance, the Company shall have the right to
extend the term of the note for another year. At the second maturity date, Primero shall
pay the outstanding balance in cash or shall have the option to convert the outstanding
principal balance, at a price equal to the greater of the original maturity conversion
price and a current conversion price calculated based on the current market price of the
underlying shares. In determining the number of common shares to be issued on
conversion, the US dollar principal amount to be converted will be converted into
Canadian dollars using a fixed exchange rate of C$1.05 to the US dollar.




---



##### 



The conversion features of the Primero convertible note has been accounted for as a single
compound embedded derivative separate from the host note receivable. The fair value of
the compound conversion feature on initial recognition was $1.3 million (note19(a)(ii)).The fair value of the Primero convertible host note receivable of $58.4 million on
initial recognition was estimated as the net present value of contractual payments of
principal and interest, discounted using an annual effective interest rate of 5.0% (LIBOR
plus 4.0%), being managements estimate of the interest rate that would be applicable for
similar debt issued by Primero on the date the Primero convertible note was issued (notes
8 &19(c)(ii)).(iv)
    
    Pursuant to the sale of the San Dimas Assets/San Dimas Silver Wheaton Silver
Purchase Agreement to Primero, Goldcorp has guaranteed to Silver Wheaton the delivery
and sale to Silver Wheaton of 215 million cumulative minimum ounces of silver produced
from San Dimas by October 15, 2031, priced at the lesser of $4.04 per ounce, subject to
a 1% annual increase, compounded annually, and the prevailing market price. The amount
of shortfall at October 15, 2031 is subject to a payment by Goldcorp of $0.50 per
shortfall ounce on October 15, 2031. The fair value of Goldcorps guarantee of $7.0
million on initial recognition was estimated based on the estimated payment for
shortfall ounces at October 15, 2031, discounted using Goldcorps after-tax weighted
average cost of capital. This amount is included in other non-current liabilities and
will be derecognized at the earlier of October 15, 2031 and when the cumulative minimum
delivery ounces requirement has been reached.(v)
    
    Pursuant to the sale of the San Dimas Assets/San Dimas Silver Wheaton Silver
Purchase Agreement to Primero, Goldcorp has agreed to deliver and sell to Silver Wheaton
1.5 million ounces of silver during each of the four contract years ending August 5, 2014,
priced at the lesser of $4.04 per ounce, subject to an annual adjustment for inflation,
and the prevailing market price. This contract meets the definition of a non-financial
derivative and is therefore classified as a financial liability held for trading and
measured at fair value at each balance sheet date. Its fair value of $81.1 million on
initial recognition was estimated as the difference between the forward market price of
silver for each of the four contract years ranging from $18.53 to $18.94 per ounce and
the fixed price of $4.04 per ounce, subject to an annual adjustment for inflation,
receivable from Silver Wheaton, multiplied by the remaining ounces to be delivered, and
discounted using the Companys after tax weighted average cost of capital (note
19(a)(iii)).
 In addition to the above liabilities assumed on disposition, Goldcorp has provided Silver
Wheaton and another third party, guarantees with respect to Primeros obligation to these
parties and for which Goldcorp has been indemnified by Primero. As at the date of
disposition and December 31, 2010, it was not considered likely that Goldcorp would be called
upon to honour its commitments under these guarantees. The fair values of these guarantees
were determined to be negligible at the date of disposition, and no amount is recognized on
the Consolidated Balance Sheet for these guarantees as at December 31, 2010.
 (b)
    
    Disposition of Escobal silver project
 On June 8, 2010, the Company completed the sale of Escobal to Tahoe (note 1). Tahoe is a
publicly traded company on the Toronto Stock Exchange, following the closing of its initial
public offering (IPO) on June 8, 2010. Under the terms of the transaction, Goldcorp
received a total of 47,766,000 common shares of Tahoe, representing 41.2% of Tahoes issued
and outstanding common shares (fully-diluted basis  40%) with a fair value of $270.9
million based on the IPO price of C$6.00 per common share and $224.6 million in cash, for
total consideration of $495.5 million. The Company recognized a gain of $484.1 million
($480.6 million net of tax), net of selling costs of $9.4 million, on the disposition of
Escobal. Goldcorp is entitled to appoint three of Tahoes eight board members and has the
right to maintain a 41.2% ownership interest. The Companys investment in Tahoe has been
accounted for using the equity method and classified as a separate reporting unit and
reportable operating segment (notes10(g)&26(g)).




---



##### 



(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 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 fair value of the common shares issued was measured using the
September 25, 2008 closing price of Goldcorps shares on the Toronto Stock Exchange
(C$35.60). The fair values of the options and warrants were measured 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
    
    $
    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
 At the date of acquisition, the cumulative mark-to-market gain on Gold Eagle shares owned by
the Company prior to the transaction and classified as available-for-sale investments of
$29.2 million was removed from accumulated other comprehensive
income (AOCI) and offset against the initial recognition amount of net
assets acquired. The assets and liabilities acquired have been assigned to and included in
the Red Lake reporting unit and reportable operating segment (notes10(a)&26(a)).
 (d)
    
    Disposition of Silver Wheaton sharesOn February 14, 2008, Goldcorp disposed of its remaining 48% interest in Silver Wheaton to a
syndicate of underwriters at a price of C$14.50 per common share held, for gross proceeds of
C$1,566.0 million ($1,571.0 million) and net proceeds of $1,505.1 million (gross proceeds of
$1,571.0 million less $55.7 million of transaction costs and cash held by Silver Wheaton of
$10.2 million).The excess of total consideration of $1,571.0 million over the carrying amount of the
Companys investment in Silver Wheaton of $546.0 million and transaction costs of $55.7
million was $969.3 million. The portion of the excess consideration which related to third
party silver arrangements between Silver Wheaton and Zinkgruvan, Yauliyacu and Stratoni of
$279.4 million and the $17.7 million in AOCI on the date of disposition relating to Silver
Wheaton was recognized in earnings, offset by $4.6 million in other liabilities for a total
gain of $292.5 million on disposition of Silver Wheaton shares. The disposition of Silver
Wheaton shares resulted in an income tax liability of C$156.5 million ($155.9 million) that
was paid in the first quarter of 2010.




---



##### 



As a result of the Company having arrangements to sell silver to Silver Wheaton from its
previously owned San Dimas mine (note4(a)), and the Los Filos and Peñasquito mines at a
fixed price of 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 also 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. At the date of
disposition, Goldcorp had continuing cash flows relating to Silver Wheaton arising from the
previously held San Dimas silver arrangement (note4(a)), and the Los Filos and Peñasquito
silver arrangements. Accordingly, Silver Wheaton has not been classified as a discontinued
operation in these consolidated financial statements.(e)
    
    Dispositions of other mining propertiesOn June 24, 2010, the Company disposed of an exploration project in Mexico in exchange for
C$1.5 million ($1.4 million) in cash and $0.6 million in common shares of the purchaser,
measured based on the market price of the underlying shares on the closing date of the
transaction and which were classified as available-for-sale on initial recognition. The
Company recognized a loss of $63.7 million ($48.1 million net of tax) on this disposition
(note10(f)).On May 3, 2010, the Company disposed of land relating to the Wharf mining property in
exchange for $3.0 million in cash and a $2.6 million promissory note included in other
non-current assets. The Company recognized a gain of $5.6 million ($3.7 million net of tax)
on this disposition (note10(i)).On February 24, 2010, the Company completed the sale of its 21.2% interest in the Morelos
gold project in Mexico (El Limón) in exchange for C$52.0 million ($49.3 million) in cash.
Total selling costs amounted to $1.9 million. The Company recognized a loss of $18.7 million
($8.2 million net of tax) on this disposition (notes10(l)). The Company recognized a $24.0
million write-down of its investment in El Limón during the fourth quarter of 2009, in
anticipation of the sales proceeds received on February 24, 2010.During the fourth quarter of 2009, the Company sold certain mining interests in exchange for
C$15.0 million ($14.0 million) in cash and $6.1 million in common shares of the purchaser,
which were classified as available-for-sale on initial recognition. The Company recognized a
gain of $20.1 million ($15.1 million net of tax) on this disposition.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 gain of
$2.6 million ($0.5 million net of tax).
 5.
    
    BUSINESS COMBINATIONS
 (a)
    
    Acquisition of 100% interest in Andean Resources LimitedOn December 29, 2010, the Companys scheme of arrangement involving
Andean and its shareholders (the Arrangement) was implemented and as a result, Goldcorp
acquired all of the outstanding shares of Andean (note 1). Under the terms of the
Arrangement, each common share of Andean was exchangeable for 0.14 common share of Goldcorp
or a cash payment of C$6.50 per common share. The holders of the Andean common shares had the
option to elect to receive cash or common shares or any combination of cash and common
shares, subject to an aggregate maximum cash consideration of C$1.0 billion ($974.8 million).
Based on election results of the former Andean shareholders, the total purchase price for the
acquisition amounted to C$3.6 billion ($3.6 billion), comprising of 61.1 million in common
shares of Goldcorp and C$766.6 million




---



##### 



($766.3 million) in cash. The value of the common shares issued
was measured based on the closing market price of Goldcorps shares trading on the Toronto
Stock Exchange on December 29, 2010, the acquisition date, of C$45.63 ($45.62) per common
share.This transaction has been accounted for as a business combination with Goldcorp as the
acquirer. The allocation of the purchase price has not been finalized as at the date these
consolidated financial statements were issued as management is in the process of determining
the fair values of identifiable assets acquired and liabilities assumed, measuring the
associated future income tax assets and liabilities, and determining the value of goodwill,
if any. A provisional allocation of the purchase price is as follows:
 Purchase price:Cash
    
    $
    766.361.1 million common shares issued
    
    
    2,785.3$
    3,551.6Net assets acquired:Cash and cash equivalents
    
    $
    245.9Other current assets
    
    
    18.8Mining interests
    
    
    5,057.1Current liabilities
    
    
    (32.5
    )Reclamation and closure cost obligations
    
    
    (0.5
    )Future income tax liabilities
    
    
    (1,737.2
    )$
    3,551.6
 Andeans principal mining property is its 100% indirectly owned Cerro Negro gold project
(the Cerro Negro project), an advanced-stage, high-grade vein system located in the Santa
Cruz province of Argentina. The Cerro Negro project has been classified as a separate
reporting unit and reportable operating segment (notes10(h)&26(d)).The net loss of Andean since December 29, 2010, the acquisition date, included in these
consolidated financial statements is $nil. Total transaction costs incurred relating to the
acquisition and included in other expenses for the year ended December 31, 2010 amounted to
$20.1 million.(b)
    
    Acquisition of 70% interest in Sociedad Contractual Minera El MorroOn February 16, 2010, the Company acquired Xstrata Copper Chile S.A.s (Xstratas) 70%
interest in SCM, the owner of the El Morro project, and associated loan receivable balances
held by Xstrata from a subsidiary of New Gold in exchange for total consideration of $513.0
million in cash (note 1).The New Gold subsidiary had completed its acquisition of Xstratas
70% interest in SCM and associated loan receivable balances on February 16, 2010, just prior
to the acquisition by the Company, pursuant to the exercise of its right of first refusal on
January 7, 2010. 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 SCM. 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 70% interest in SCM and loan receivable
balances held by Xstrata has been accounted for as a business combination, with Goldcorp as
the acquirer. The El Morro project has been classified as a separate reporting unit and
reportable operating segment (notes10(j)&26(e)).The allocation of the purchase price was finalized during the fourth quarter of 2010. The
significant differences between the final allocation and provisional allocation were
increases to the amounts allocated to mining interests and future income tax




---



##### 



liabilities by $38.6 million and $42.7 million, respectively, and a decrease to
non-controlling interest by $6.8 million. As part of its process to finalize the allocation
of the purchase price, the Company concluded that income taxes payable relating to the El
Morro project are denominated in US dollars, the Companys functional currency, and are
therefore not subject to foreign exchange gains or losses. Accordingly, during the fourth
quarter of 2010, the Company recorded an adjustment to reverse approximately $30.0 million of
net loss on foreign exchange previously recognized in 2010 on translation of the future
income tax liabilities relating to the El Morro project.The final allocation of the purchase price is as follows:
 Purchase price:Cash
    
    $
    513.0Net assets acquired:Cash and cash equivalents
    
    $
    1.7Mining interests
    
    
    1,145.6Current liabilities
    
    
    (0.8
    )Future income tax liabilities
    
    
    (419.1
    )Other non-current liabilities
    
    
    (1.3
    )Non-controlling interest
    
    
    (213.1
    )$
    513.0
 The amount assigned to non-controlling interest represents New Golds 30% interest in SCM
which was measured as New Golds proportionate share of the fair value of SCMs identifiable
net assets at the date of acquisition.Total transaction costs incurred relating to the acquisition and included in other expenses
during the year ended December 31, 2010 amounted to $6.0 million.The net earnings of SCM for the period from February 16, 2010, the acquisition date, to
December 31, 2010 included in these consolidated financial statements amounted to $0.3
million.On January 13, 2010, Goldcorp received a statement of claim filed by Barrick in the Ontario
Superior Court of Justice, 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. Among the relief requested by Barrick is that the El
Morro project be held in trust for the benefit of Barrick. Barrick subsequently filed a
motion to amend its claim to add various Xstrata entities as defendants. All parties have now
agreed to have all claims related to the acquisition of the Xstrata interest heard by the
Ontario courts, including the Supreme Court of Canada. Xstrata has filed a counterclaim
against Barrick seeking damages in an amount of at least $60 million. A tentative case
management schedule established as part of the parties
agreement contemplates a three-week
trial of the matter to be held in June or July 2011. Goldcorp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)
    
    Acquisition of Canplats Resources CorporationOn February 4, 2010, the Company completed the acquisition of all of the issued and
outstanding common shares of Canplats for consideration of C$4.80 per common share
outstanding at the closing date (note 1). The total consideration paid by the Company was
C$306.6 million ($289.0 million) in cash. As a result of this transaction, Goldcorp now holds
a 100% interest in the Camino Rojo gold/silver project in Mexico (the Camino Rojo project).
The Camino Rojo project is located approximately 50 kilometres southeast of Goldcorps
Peñasquito mine in Mexico. This transaction has been accounted for as a business combination,
with Goldcorp as the acquirer. The assets acquired and liabilities assumed have been assigned
to and included in the Peñasquito reporting unit and reportable operating segment (notes
10(d)&26(b)).




---



##### 



The allocation of the purchase price was finalized during the fourth quarter of 2010. The
final allocation of the purchase price is as follows:
 Purchase price:Cash
    
    $
    289.0Net assets acquired:Cash and cash equivalents
    
    $
    3.2Other current assets
    
    
    0.4Mining interests
    
    
    392.0Current liabilities
    
    
    (0.4
    )Future income tax liabilities
    
    
    (106.2
    )$
    289.0
 There was no difference between the final allocation and provisional allocation of the
purchase price. Total transaction costs incurred relating to this acquisition and included in
other expenses for the year ended December 31, 2010 amounted to $3.5 million.The net loss for the Camino Rojo project for the period from February 4, 2010, the
acquisition date, to December 31, 2010 included in these consolidated financial statements
was $nil.(d)
    
    Pro-forma information on business combinations (unaudited)The following table presents the impact to net earnings of the Company for the year ended
December 31, 2010 had the acquisitions of the Cerro Negro (note5(a)), El Morro (note5(b))
and Camino Rojo (note5(c))projects occurred on January 1, 2010:
 Goldcorps net earnings  as reported
    
    $
    1,566.1Pro-forma adjustments:Reversal of acquisition transaction costs incurred by Goldcorp
    
    
    29.6Foreign exchange gains on translation of future income taxes
arising from the acquisitions
    
    
    89.3Goldcorps net earnings  pro-forma
    
    $
    1,685.0




---



##### 



6.
    
    DISCONTINUED OPERATIONOn October 20, 2010, the Company sold its 58.1% interest in Terrane to Thompson Creek (note
1). The Company received C$0.90 in cash and 0.052 common share of Thompson Creek for each
Terrane share held, for total consideration of C$240.5 million ($235.9 million) in cash and 13.9
million common shares of Thompson Creek.Prior to disposition on October 20, 2010, Goldcorp held a 58.1% controlling interest
(fully-diluted basis  52.4%) in Terrane through its ownership of 240 million preferred shares,
27.3 million common shares and 13.6 common share purchase warrants. The financial position and
results of operations of Terrane have been consolidated with those of the Company until the date
of disposition. The Company recognized a gain of $259.1 million ($205.3 million net of tax) on
the date of disposition, calculated as follows:
 Net assets sold and derecognized:Cash
    
    $
    31.2Accounts receivable
    
    
    2.4Mining interests
    
    
    236.0Other non-current assets
    
    
    6.9Accounts payable and accrued liabilities
    
    
    (8.8
    )Future income tax liabilities
    
    
    (43.2
    )Non-controlling interests (note 22)
    
    
    (95.9
    )$
    128.6Net proceeds:Cash
    
    $
    235.913.9 million common shares of Thompson Creek
    
    
    153.7Fair value of 13.6 million Terrane common share purchase warrants retained
    
    
    0.9Selling costs
    
    
    (2.8
    )$
    387.7
 The Companys interest in Thompson Creek, received as partial consideration, represents
approximately 8% of the issued and outstanding common shares of Thompson Creek on the date of
disposition (fully-diluted basis  7%) and has been classified as available-for-sale on initial
recognition. The total fair value of the common shares received was $153.7 million based on the
market price of the shares on date of disposition.The Terrane common share purchase warrants (the Terrane warrants) held by Goldcorp on the date
of disposition were retained. The fair value of the Terrane warrants on the date of disposition
of $0.9 million, based on the trading price of similar Terrane warrants (note 22), is included
in the net proceeds of the disposition. Subsequent to October 20, 2010, the Terrane warrants are
accounted for as held-for-trading investments measured at fair value with changes in fair value
recognized in earnings. Upon exercise of the Terrane warrants, Goldcorp is entitled to receive
the amount of consideration that it would have received had it exercised the warrants
immediately before the closing of the acquisition of Terrane by Thompson Creek. The Terrane
warrants expire on April 15, 2011.




---



##### 



Upon disposition on October 20, 2010, the Company no longer has significant continuing
involvement in the operations of Terrane. Accordingly, the results of Terrane, which were
previously reported as a separate operating segment, have been reported as a discontinued
operation and presented separately in the Consolidated Statements of Earnings for both the
current and prior periods presented as follows:
 Years ended December 31
    
    2010
    
    
    2009
    
    
    2008Earnings (loss) from discontinued operation, net of taxCorporate administration
    
    $
    (14.8
    )
    
    $
    (4.5
    )
    
    $
    (5.7
    )Exploration costs
    
    
    (1.1
    )
    
    
    (0.7
    )
    
    
    (0.8
    )Other income
    
    
    0.2
    
    
    
    0.1
    
    
    
    0.1Gain on disposition
    
    
    259.1
    
    
    
    
    
    
    
    Dilution
gains (losses), net
    
    
    
    
    
    
    (0.3
    )
    
    
    0.5Losses on foreign exchange, net
    
    
    (5.9
    )
    
    
    (2.9
    )
    
    
    (0.4
    )Earnings (loss) before income taxes
    
    
    237.5
    
    
    
    (8.3
    )
    
    
    (6.3
    )Current income taxes on disposition
    
    
    (20.0
    )
    
    
    
    
    
    
    Future income tax recovery
    
    
    (32.0
    )
    
    
    2.4
    
    
    
    8.5$
    185.5
    
    
    $
    (5.9
    )
    
    $
    2.2Earnings (loss) from discontinued operation, net of tax, attributable to:Shareholders of Goldcorp Inc.
    
    $
    193.8
    
    
    $
    (3.9
    )
    
    $
    1.8Non-controlling interests
    
    
    (8.3
    )
    
    
    (2.0
    )
    
    
    0.4$
    185.5
    
    
    $
    (5.9
    )
    
    $
    2.2Earnings (loss) per share from discontinued operationBasic and diluted
    
    $
    0.26
    
    
    $
    (0.0
    )
    
    $
    (0.0
    )
 7.
    
    INVENTORIES AND STOCKPILED ORE
 At December 31
    
    2010
    
    
    2009Supplies
    
    $
    140.1
    
    
    $
    135.4Finished goods
    
    
    43.5
    
    
    
    33.0Work-in-process
    
    
    26.3
    
    
    
    32.5Heap leach ore
    
    
    181.9
    
    
    
    142.1Stockpiled ore
    
    
    87.3
    
    
    
    100.0479.1
    
    
    
    443.0Less: non-current heap leach and stockpiled ore
    
    
    (82.3
    )
    
    
    (93.6
    )$
    396.8
    
    
    $
    349.4
 The amount of inventories recognized as an expense during the year is included in operating
expenses in the Consolidated Statements of Earnings.
 Stockpiled ore
 The majority of the stockpiled ore is located at Alumbrera and is forecasted to be
drawn down throughout the remainder of Alumbreras mine life to 2017. The portion that is to be
processed over a period exceeding twelve months is classified as non-current.




---



##### 



8.
    
    CURRENT NOTES RECEIVABLE
 At December 31
    
    2010
    
    
    2009$60.0 million 1-year Primero convertible note (a)
    
    $
    59.1
    
    
    $
    $50.0 million 5-year Primero promissory note  principal payable in one year (note 13)
    
    
    5.0
    
    
    
    $
    64.1
    
    
    $
    
 (a)
    
    As partial consideration for the sale of the San Dimas Assets/San Dimas Silver Wheaton
Silver Purchase Agreement, the Company received a $60.0 million 1-year convertible
promissory note receivable from Primero (note 4(a)(iii)). This note receivable is measured
at amortized cost using the effective interest method. The amount recognized on initial
recognition date is accreted to the face value of the note over the term of the note using
an annual effective interest rate of 5.0%. Interest income for the period from August 6,
2010 to December 31, 2010 amounted to $1.4 million, including $0.7 million of accretion.
The accrued interest receivable at December 31, 2010 of $0.7 million is included in other
current assets (note 9).
 9.
    
    OTHER CURRENT ASSETS
 At December 31
    
    2010
    
    
    2009Prepaid expenses and other
    
    $
    27.4
    
    
    $
    23.7Future income and mining taxes receivable  classified as current (note 16)
    
    
    46.3
    
    
    
    3.6Current derivative assets (note 19(a))
    
    
    8.5
    
    
    
    8.1Accrued interest receivable (notes 8 & 13)
    
    
    1.9
    
    
    
    $
    84.1
    
    
    $
    35.4




---



##### 



10.
    
    MINING INTERESTS
 2010
    
    
    2009Accumulated
    
    
    
    
    
    
    
    
    
    
    Accumulateddepreciation
    
    
    Net book
    
    
    
    
    
    
    depreciationAt December 31
    
    Cost
    
    
    and depletion
    
    
    value
    
    
    Cost
    
    
    and depletion
    
    
    Net book valueMining properties
    
    $
    24,315.7
    
    
    $
    (1,539.0
    )
    
    $
    22,776.7
    
    
    $
    16,671.7
    
    
    $
    (1,127.1
    )
    
    $
    15,544.6Plant and equipment
    
    
    3,187.7
    
    
    
    (648.1
    )
    
    
    2,539.6
    
    
    
    3,062.6
    
    
    
    (605.9
    )
    
    
    2,456.7$
    27,503.4
    
    
    $
    (2,187.1
    )
    
    $
    25,316.3
    
    
    $
    19,734.3
    
    
    $
    (1,733.0
    )
    
    $
    18,001.3
 A summary by property of the net book value at December 31 is as follows:
 Mining properties (n)Non-
    
    
    
    
    
    
    Plant andDepletable
    
    
    depletable
    
    
    Total
    
    
    Equipment (m)
    
    
    2010
    
    
    2009Red Lake(a)
    
    $
    402.9
    
    
    $
    2,113.3
    
    
    $
    2,516.2
    
    
    $
    356.1
    
    
    $
    2,872.3
    
    
    $
    2,776.3Porcupine(b)
    
    
    163.6
    
    
    
    101.9
    
    
    
    265.5
    
    
    
    168.8
    
    
    
    434.3
    
    
    
    422.3Musselwhite
    
    
    110.2
    
    
    
    130.4
    
    
    
    240.6
    
    
    
    189.5
    
    
    
    430.1
    
    
    
    389.6Éléonore
    
    
    
    
    
    
    886.3
    
    
    
    886.3
    
    
    
    97.0
    
    
    
    983.3
    
    
    
    832.9Terrane (c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    197.8Peñasquito (d)
    
    
    2,915.5
    
    
    
    6,525.5
    
    
    
    9,441.0
    
    
    
    1,174.6
    
    
    
    10,615.6
    
    
    
    10,016.4San Dimas (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35.7Los Filos
    
    
    471.0
    
    
    
    77.4
    
    
    
    548.4
    
    
    
    167.9
    
    
    
    716.3
    
    
    
    732.9El Sauzal
    
    
    60.2
    
    
    
    55.6
    
    
    
    115.8
    
    
    
    15.5
    
    
    
    131.3
    
    
    
    189.5Mexican exploration projects (f)
    
    
    
    
    
    
    85.6
    
    
    
    85.6
    
    
    
    
    
    
    
    85.6
    
    
    
    167.3Marlin
    
    
    540.7
    
    
    
    113.6
    
    
    
    654.3
    
    
    
    82.5
    
    
    
    736.8
    
    
    
    763.2Cerro Blanco (g)
    
    
    
    
    
    
    76.6
    
    
    
    76.6
    
    
    
    7.2
    
    
    
    83.8
    
    
    
    59.6Alumbrera
    
    
    309.4
    
    
    
    
    
    
    
    309.4
    
    
    
    150.2
    
    
    
    459.6
    
    
    
    511.8Cerro Negro (h)
    
    
    
    
    
    
    5,033.5
    
    
    
    5,033.5
    
    
    
    23.7
    
    
    
    5,057.2
    
    
    
    Marigold
    
    
    84.6
    
    
    
    77.2
    
    
    
    161.8
    
    
    
    51.3
    
    
    
    213.1
    
    
    
    218.9Wharf (i)
    
    
    6.0
    
    
    
    
    
    
    
    6.0
    
    
    
    8.6
    
    
    
    14.6
    
    
    
    14.6El Morro (j)
    
    
    
    
    
    
    1,162.7
    
    
    
    1,162.7
    
    
    
    0.1
    
    
    
    1,162.8
    
    
    
    Corporate and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46.6
    
    
    
    46.6
    
    
    
    28.6$
    5,064.1
    
    
    $
    16,439.6
    
    
    
    21,503.7
    
    
    $
    2,539.6
    
    
    
    24,043.3
    
    
    
    17,357.4Investments accounted for using the equity
methodPrimero (e)
    
    
    
    
    
    
    
    
    
    
    155.7
    
    
    
    
    
    
    
    155.7
    
    
    
    Tahoe (g)
    
    
    
    
    
    
    
    
    
    
    409.9
    
    
    
    
    
    
    
    409.9
    
    
    
    Pueblo Viejo(k)
    
    
    
    
    
    
    
    
    
    
    707.4
    
    
    
    
    
    
    
    707.4
    
    
    
    587.1El Limón (l)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    56.81,273.0
    
    
    
    
    
    
    
    1,273.0
    
    
    
    643.9$
    22,776.7
    
    
    
    
    
    
    $
    25,316.3
    
    
    $
    18,001.3
 (a)
    
    Includes the mining interests acquired in the Gold Eagle asset acquisition completed on
September 25, 2008 (note 4(c)).(b)
    
    The Company recognized a $47.1 million 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)
    
    The Company sold its 58.1% interest in Terrane to Thompson Creek on October 20, 2010
(note 6).




---



##### 



(d)
    
    On September 1, 2010, the commissioning of Peñasquito was completed as operating levels
intended by management were considered to have been reached. Accordingly, amounts
capitalized associated with proven and probable reserves were reclassified from
non-depletable to depletable mining properties. Depreciation and depletion of capitalized
costs classified as depletable commenced effective September 1, 2010. In addition, proceeds
from sales of metals, including concentrate forms of metals, and costs incurred during
production have been included in earnings effective September 1, 2010.The carrying amount of the Peñasquito mining property is net of the deferred excess
consideration received on disposition of Silver Wheaton shares in the first quarter of 2008
relating to the Peñasquito silver purchase arrangement and the deferred consideration
received from Silver Wheaton in 2007 for the silver purchase arrangement (note 4(d)).During
the period from January 1, 2010 to September 1, 2010, the Company capitalized to the
Peñasquito mining property $0.6 million relating to stock options vested during the period
(years ended December 31, 2009 and 2008  $3.0 million and $nil, respectively) (note 21(b)).
The fair value assigned to the Camino Rojo project acquired from Canplats on February 4, 2010
has been included in the carrying amount of the Peñasquito mining property (notes 5(c) &
26(b)).(e)
    
    The Company sold the assets and liabilities relating to San Dimas to Primero on August
6, 2010 (note 4(a)). The net book value of the San Dimas mining interests were derecognized
on the date of disposition. As partial consideration for the disposition, the Company
received 31,151,200 common shares of Primero, representing 36% of the issued and
outstanding common shares of Primero on the date of disposition. The carrying amount of
Primero at December 31, 2010 includes the Companys share of net earnings of Primero for
the period from August 6, 2010 to December 31, 2010.(f)
    
    On June 24, 2010, the Company disposed of an exploration project in exchange for cash
and common shares of the acquirer (note 4(e)).(g)
    
    On June 8, 2010, the Company completed the sale of Escobal, which was previously
included in the Cerro Blanco mining property, to Tahoe in exchange for cash and common
shares of Tahoe, representing a 41.2% ownership interest in Tahoe at the date of
disposition (note 4(b)). On December 23, 2010, pursuant to a bought deal financing
completed by Tahoe, the Company purchased 10,285,692 additional common shares of Tahoe at
C$14.10 per common share for total consideration of C$145.0 million ($143.7 million) in
order to maintain its ownership interest of 41.2%. The carrying amount of Tahoe at December
31, 2010 includes the Companys share of net loss of Tahoe for the period from June 8, 2010
to December 31, 2010.(h)
    
    The Company acquired a 100% interest in the Cerro Negro project on December 29, 2010.
As at the date of these consolidated financial statements, the fair value assigned to the
Cerro Negro mining interest is provisional (note 5(a)).(i)
    
    On May 3, 2010, the Company disposed of land in exchange for cash and a promissory note
receivable (notes 4(e)).(j)
    
    The Company acquired a 70% interest in the El Morro project on February 16, 2010 (note
5(b)). The carrying amount represents 100% of the El Morro project mining interest which is
offset by non-controlling interest included in equity. Included in the carrying amount of
the El Morro mining property is capitalized interest incurred during the period from the
acquisition date, February 16, 2010, to December 31, 2010 in the amount of $1.4 million
(note 15(c)).(k)
    
    $192.0 million of the Companys investment in Dominicana Holdings Inc. (Dominicana),
the entity that indirectly owns the Pueblo Viejo project, was repaid by Dominicana on June
24, 2010, which has been accounted for as a reduction in the Companys investment balance
included in mining interests. During the year ended December 31, 2010, the Company
invested $312.3 million to finance development activities at Pueblo Viejo (note 26).(l)
    
    The El Limón project was disposed of on February 24, 2010 (note 4(e)).(m)
    
    At December 31, 2010, assets under construction and therefore not yet being
depreciated, included in the net book value of plant and equipment, amounted to $210.2
million (2009  $1,097.4 million).




---



##### 



(n)
    
    Certain of the mining properties in which the Company has interests are subject to
royalty arrangements based on their net smelter returns (NSRs), modified NSRs, net
profits interest (NPI) and/or net earnings. Royalties are expensed at the time of sale of
gold and other metals. For the year ended December 31, 2010, royalties included in
operating expenses amounted to $109.7 million (2009  $69.4 million; 2008  $67.2 million).
At December 31, 2010, the significant royalty arrangements of the Company were as follows:
 Producing mining properties:Peñasquito
    
    2% of NSRMarlin
    
    1% of NSRAlumbrera
    
    3% of modified NSR plus 20% YMAD royaltyMarigold
    
    5% of NSRDevelopment projects:Éléonore
    
    2  3% of NSRCerro Blanco
    
    1% of NSRCerro Negro
    
    3% of modified NSR and 1% of net earningsEl Morro
    
    2% of NSRPueblo Viejo
    
    3% of NSR; 0  25% NPI
 11.
    
    GOODWILL
 Goodwill arising from business combinations have been allocated to the Companys reporting
units and included in their respective operating segment assets (note 26)as follows:
 At December 31
    
    2010
    
    
    2009Red Lake
    
    $
    404.4
    
    
    $
    404.4Peñasquito
    
    
    283.1
    
    
    
    283.1Los Filos
    
    
    74.3
    
    
    
    74.3$
    761.8
    
    
    $
    761.8




---



##### 



12.
    
    INVESTMENTS
 At December 31
    
    2010
    
    
    2009Warrants  held for trading
    
    $
    6.6
    
    
    $
    2.3Equity securities  available-for-sale
    
    
    924.0
    
    
    
    388.0$
    930.6
    
    
    $
    390.3
 The Company has investments in warrants and equity securities in accordance with its long-term
investment plans. These investments are classified as non-current assets. Although the warrants
are held for long-term investment purposes, they are derivatives and therefore classified as
held-for-trading and measured at fair value with mark-to-market gains and losses recorded in
earnings in the period they occur. The equity securities are classified as available-for-sale
and measured at fair value with mark-to-market gains and losses recognized directly in OCI.The net gains (losses) on securities for the years ended December 31 were comprised of the
following:
 2010
    
    
    2009
    
    
    2008Net gains on warrants  held-for-trading (note 19(a))
    
    $
    2.6
    
    
    $
    7.4
    
    
    $
    5.1Realized gains on marketable securities and
investments in equity securities (notes 19(b)(ii) &
(iii))
    
    
    
    
    
    
    42.8
    
    
    
    0.2Unrealized impairment losses on investments in equity
securities (notes 19(b)(i), (ii) & (iii))
    
    
    (2.1
    )
    
    
    
    
    
    
    (111.2
    )$
    0.5
    
    
    $
    50.2
    
    
    $
    (105.9
    )
 13.
    
    NON-CURRENT NOTE RECEIVABLE
 At December 31
    
    2010
    
    
    2009$50.0 million 5-year Primero promissory note (a)
    
    $
    52.5
    
    
    $
    Less: principal payable in one year (note 8)
    
    
    (5.0
    )
    
    
    $
    47.5
    
    
    $
    
 (a)
    
    As partial consideration for the sale of the San Dimas Assets/San Dimas Silver Wheaton
Silver Purchase Agreement, the Company received a $50.0 million 5-year promissory note
receivable from Primero (note4(a)(ii)). This note receivable is measured at amortized cost
using the effective interest method. The amount recognized on initial recognition date is
accreted to the face value of the note over the term of the note using an annual effective
interest rate of 5.5%. Interest income for the period from August 6, 2010 to December 31,
2010 amounted to $1.1 million, net of $0.1 million of accretion. The accrued interest
receivable at December 31, 2010 of $1.2 million is included in other current assets (note
9).
 14.
    
    OTHER NON-CURRENT ASSETS
 At December 31
    
    2010
    
    
    2009Reclamation deposits
    
    $
    3.4
    
    
    $
    3.0Sales/indirect taxes recoverable
    
    
    16.9
    
    
    
    10.3Future income and mining taxes (note 16)
    
    
    2.3
    
    
    
    Non-current prepaid expenses, deposits, advances and other
    
    
    5.0
    
    
    
    Other
    
    
    14.8
    
    
    
    $
    42.4
    
    
    $
    13.3
 39




---



##### 



15.
    
    CURRENT AND LONG TERM DEBT
 At December 31
    
    2010
    
    
    2009Current debtC$40 million non-revolving term loan (a)
    
    $
    
    
    
    $
    16.7Long term debt$862.5 million convertible senior notes (b)
    
    
    747.1
    
    
    
    719.0
 (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 its long lead-time capital
equipment procurement program for the Mt. Milligan project. Under the terms of the credit
facility as amended on May 7, 2010, the Company guaranteed a 12-month, non-revolving term
credit facility of up to C$40 million. Upon disposition of the Companys interest in
Terrane on October 20, 2010, the Company no longer has any obligation under this credit
facility (note 6).Interest incurred and capitalized to the Terrane mining interest for the
period from January 1, 2010 to October 20, 2010, the date of disposition, was $0.2 million
(years ended 2009 and 2008  $0.2 million).(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 amount allocated to the equity
component of $4.2 million was recorded in equity as share issue costs, offset by $1.0 million
in future income tax asset recognized for the future tax benefit of the share issue costs.The carrying amount of the liability component 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, 2010 amounted to $45.3 million, which includes $28.0 million of accretion
(2009  $25.5 million and $15.6 million, respectively).(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, 2010 and 2009. Interest
incurred for the year ended December 31, 2010 amounted to $1.5 million (2009  $2.3 million;
2008  $6.7 million), of which $1.4 million has been capitalized to the El Morro project
since its acquisition on February 16, 2010 (note10(j)).
 16.
    
    INCOME AND MINING TAXES
 Years ended December 31
    
    2010
    
    
    2009
    
    
    2008Current income and mining tax expense
    
    $
    509.0
    
    
    $
    278.7
    
    
    $
    138.1Future income and mining tax expense (recovery)
    
    
    (163.0
    )
    
    
    (69.6
    )
    
    
    165.8$
    346.0
    
    
    $
    209.1
    
    
    $
    303.9
 Income tax expense differs from the amount that would result from applying the Canadian federal
and provincial income tax rates to earnings from continuing operations before taxes. These
differences result from the following items:
 Years ended December 31
    
    2010
    
    
    2009
    
    
    2008Earnings from continuing operations before taxes
    
    $
    1,726.6
    
    
    $
    453.2
    
    
    $
    1,785.0Canadian federal and provincial income tax rates
    
    
    28.96
    %
    
    
    30.91
    %
    
    
    31.45
    %Income tax expense based on Canadian federal and provincial income tax rates
    
    
    500.0
    
    
    
    140.1
    
    
    
    561.4Increase (decrease) attributable to:Impact of foreign exchange on future income tax liabilities
    
    
    103.1
    
    
    
    99.3
    
    
    
    (336.8
    )Other impacts of foreign exchange
    
    
    3.8
    
    
    
    45.9
    
    
    
    (72.3
    )Impact of change in tax rates on future income taxes (a)
    
    
    (1.0
    )
    
    
    (12.7
    )
    
    
    Tax benefit of the harmonization of Ontario corporate income taxes with
Canadian federal income taxes
    
    
    
    
    
    
    (16.6
    )
    
    
    Provincial mining taxes
    
    
    54.3
    
    
    
    39.2
    
    
    
    21.3Resource allowance
    
    
    (15.4
    )
    
    
    (16.4
    )
    
    
    (11.5
    )Non-deductible expenditures
    
    
    38.8
    
    
    
    22.5
    
    
    
    10.5Effects of different foreign statutory tax rates on earnings of subsidiaries
    
    
    (22.3
    )
    
    
    (34.3
    )
    
    
    (28.4
    )Impact of future income tax rate applied versus current statutory rate
    
    
    (17.2
    )
    
    
    (15.1
    )
    
    
    (4.6
    )Change in valuation allowance
    
    
    4.1
    
    
    
    (28.4
    )
    
    
    10.0Change in reserves for uncertain tax positions
    
    
    10.4
    
    
    
    10.8
    
    
    
    6.9Change in Mexican tax legislation (b)
    
    
    (12.8
    )
    
    
    12.8
    
    
    
    Use of Mexican flat tax credits(c)
    
    
    
    
    
    
    
    
    
    
    (37.8
    )Gain on sale of Escobal not subject to tax (note 4(b))
    
    
    (138.6
    )
    
    
    
    
    
    
    Tax on disposition of Silver Wheaton shares (note 4(d))
    
    
    
    
    
    
    
    
    
    
    155.9Non-taxable portion of gain on disposition of San Dimas (note 4(a))
    
    
    (146.6
    )
    
    
    
    
    
    
    Non-taxable portion of other realized capital gains
    
    
    
    
    
    
    (9.0
    )
    
    
    Non-deductible asset write-down
    
    
    
    
    
    
    
    
    
    
    16.5Other
    
    
    (14.6
    )
    
    
    (29.0
    )
    
    
    12.8$
    346.0
    
    
    $
    209.1
    
    
    $
    303.9
 (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 increased from 28% to 30% for the period from January 1, 2010 through December
31, 2012 and will be reduced to 29% in 2013 and back to 28% in 2014 and thereafter. The
change in tax rate increased the Companys future income tax liabilities by $26.2 million
in the fourth quarter of 2009.




---



##### 



The effective tax rate in 2009 also includes the impact of a reduction of future income tax
liabilities of $38.9 million resulting from Canadian provincial and federal income tax rate
reductions enacted in the fourth quarter of 2009.(b)
    
    In addition to changes to the corporate income tax rates discussed above, the Mexican
government announced in December 2009 that it had 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 in the consolidated group.
Included with changes to the consolidated tax return rules are provisions that tax the
Companys past consolidation benefits retroactively by estimating the tax benefits of the
Companys consolidated tax filing as at December 31, 2009 and requiring the Company to
repay those benefits in future years. The Company considered this element of the announced
tax law changes a double taxation and filed a lawsuit in 2010 against the Mexican
government on the basis that this retroactive tax increase was unconstitutional. The
Company was successful on certain of its arguments at the first level of court and the
Mexican government has appealed the lower level court decision on this matter. At December
31, 2009, the Company estimated that the income tax impact of the announced change to the
consolidated tax return rules was potentially $79.1 million, of which $7.9 million, $23.6
million, and $47.6 million would be payable evenly during the period from 2013 to 2017,
2014 to 2018 and 2015 to 2019, respectively, without additional tax restructuring. The
Company developed a plan that it intends to execute and is fully within its control and
solely at its discretion to merge two entities within the consolidated group in 2013 which
decreases the estimated tax impact to $12.8 million, of which $8.4 million and $4.4
million would be payable evenly during the period from 2015 to 2019 and 2018 to 2022,
respectively. Accordingly the Company recorded income and mining taxes payable in
non-current liabilities and a current income tax expense of $12.8 million as at and for
the year ended December 31, 2009.At December 31, 2010, management estimates the tax on the Companys past consolidation benefits
described above to be $74.7 million. A tax plan that the Company intends to execute and that is
solely at its discretion and fully within its control to merge two entities within the consolidated
group in 2013 decreases the tax impact to a nominal amount. In addition, in December 2010 the
Mexican tax authorities issued new rules that effectively allow the Company to defer repayment of
the tax benefits of consolidation noted above until such time as certain future events occur, which
are within the Companys control, such as deconsolidation of the Mexican consolidated tax filing
group. Accordingly, the $12.8 million of current income tax expense recorded in 2009 was reversed
during the fourth quarter of 2010.(c)
    
    Mexico introduced a flat tax (IETU tax) effective January 1, 2008 to replace the
previous asset tax as a 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. In certain circumstances IETU tax credits can be used to
reduce income taxes in the year that they are generated. 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.(d)
    
    On October 21, 2010, Chile increased the royalty rate for large mines from a 5% fixed
rate to a progressive tax regime with rates ranging from 5% to 14% depending on the mining
operating profit margin in a given taxation year. The mining operating profit margin is
defined as the taxable income of the operation divided by the gross mining revenue of the
operation. Mines with operating margins at 35% or below would still be subject to the 5%
mining tax rate. Mines with an operating profit margin of higher than 85% would be subject
to a 14% rate. Goldcorp believes that the D.L. 600 filing made at the time of
the El Morro acquisition should provide fiscal stability that would prevent the new
legislation from applying to the El Morro operations for the first 15 years of production.
However to obtain fiscal stability based on that application, New Gold must waive the
fiscal
 42




---



##### 



stability established by its existing D.L. 600 filing. The Company
understands that if New Gold
waives its existing D.L. 600 fiscal stability, both companies will be covered by the same
fiscal stability under the Goldcorp D.L. 600 application.
 The significant components of future income taxes are as follows:
 At December 31
    
    2010
    
    
    2009Future income and mining tax assetsUnused non-capital losses
    
    $
    46.5
    
    
    $
    36.5Investment tax credits
    
    
    16.9
    
    
    
    24.4Alternative minimum tax (AMT) credits
    
    
    7.3
    
    
    
    7.5Deductible temporary differences relating to:Reclamation and closure cost obligations
    
    
    70.4
    
    
    
    73.1Mining interests
    
    
    1.1
    
    
    
    1.7Stock options
    
    
    2.5
    
    
    
    13.7Other
    
    
    69.6
    
    
    
    25.8214.3
    
    
    
    182.7Valuation allowance
    
    
    (9.4
    )
    
    
    (8.9
    )204.9
    
    
    
    173.8Future income and mining tax liabilitiesTaxable temporary differences relating to:Mining interests
    
    
    (6,116.3
    )
    
    
    (3,701.6
    )Other
    
    
    (296.6
    )
    
    
    (151.7
    )(6,412.9
    )
    
    
    (3,853.3
    )Future income and mining tax liabilities, net
    
    $
    (6,208.0
    )
    
    $
    (3,679.5
    )Presented on the Consolidated Balance Sheets as:Future income and mining tax assets  included in other current assets (note 9)
    
    $
    46.3
    
    
    $
    3.6Future income and mining tax assets  included in other non-current assets (note 14)
    
    
    2.3
    
    
    
    Future income and mining tax liabilities  current
    
    
    (174.6
    )
    
    
    (107.9
    )Future income and mining tax liabilities  non-current
    
    
    (6,082.0
    )
    
    
    (3,575.2
    )Future income and mining tax liabilities, net
    
    $
    (6,208.0
    )
    
    $
    (3,679.5
    )
 43




---



##### 



Tax Loss Carryforwards, Investment Tax Credits, and AMT CreditsAt December 31, 2010, the Company had the following unused tax losses and other income tax
deductions for which it has recognized a future income tax asset:
 Unused taxlossesand otherincome tax
    
    
    Future tax
    
    
    Valuation
    
    
    Net future taxdeductions
    
    
    assets
    
    
    allowance
    
    
    assets
    
    
    Expiry datesTax loss carryforwards:Canada
    
    $
    14.8
    
    
    $
    3.7
    
    
    $
    (0.4
    )
    
    $
    3.3
    
    
    
    2012  2028United States
    
    
    64.6
    
    
    
    22.0
    
    
    
    
    
    
    
    22.0
    
    
    
    2011  2029Mexico
    
    
    5.8
    
    
    
    1.7
    
    
    
    (1.7
    )
    
    
    
    
    
    
    2011  2020Chile
    
    
    50.0
    
    
    
    19.1
    
    
    
    
    
    
    
    19.1
    
    
    No expiry date135.2
    
    
    
    46.5
    
    
    
    (2.1
    )
    
    
    44.4Investment tax credits:Canada
    
    
    16.9
    
    
    
    16.9
    
    
    
    
    
    
    
    16.9
    
    
    
    2017  2030AMT credits:United States
    
    
    7.3
    
    
    
    7.3
    
    
    
    (7.3
    )
    
    
    
    
    
    No expiry dateTotal
    
    $
    159.4
    
    
    $
    70.7
    
    
    $
    (9.4
    )
    
    $
    61.3
 17.
    
    RECLAMATION AND CLOSURE COST OBLIGATIONSThe following table summarizes the changes in the Companys reclamation and closure cost
obligations during the years ended December 31:
 2010
    
    
    2009Reclamation and closure cost obligations  beginning of year
    
    $
    306.5
    
    
    $
    284.5Revisions in estimates of required cash outflows and liabilities incurred
    
    
    (8.1
    )
    
    
    33.8Accretion expense, included in depreciation and depletion
    
    
    16.1
    
    
    
    14.7Reclamation expenditures
    
    
    (15.6
    )
    
    
    (26.5
    )Reclamation and closure cost obligations  end of year
    
    
    298.9
    
    
    
    306.5Less: current portion of reclamation and closure cost obligations, included
in accounts payable and accrued liabilities
    
    
    (22.7
    )
    
    
    (24.5
    )Non-current reclamation and closure cost obligations
    
    $
    276.2
    
    
    $
    282.0
 The Companys mining and exploration activities are subject to various governmental laws and
regulations relating to the protection of the environment. The Company has made, and intends to
make in the future, expenditures to comply with such laws and regulations. The present value of
the Companys reclamation and closure cost obligations at December 31, 2010 and 2009 were
calculated using a discount rate of 5%. The amounts relating to operating mines, inactive mines
and development projects are $232.8 million, $54.8 million and $11.3 million, respectively,
(2009  $232.9 million, $49.4 million and $24.2 million, respectively) reflecting cash outflows
for approximately the next 125 years (2009  100 years). Reclamation and closure activities
include land rehabilitation, demolition of buildings and mine facilities, ongoing care and
maintenance and other costs.The estimated undiscounted value of the Companys reclamation and closure
cost obligations at
December 31, 2010 was $511.7 million (2009  $523.5 million), calculated using an inflation rate
assumption of 2.0% (2009  2.0%).




---



##### 



18.
    
    EMPLOYEE PENSION PLANSThe Company has various defined contribution and defined benefit pension plans for its
employees. The Company has no other employee future benefit plans.Total cash payments for employee pension plans for the year ended December 31, 2010, consisting
of cash contributed by the Company to its funded defined benefit pension plans, cash payments
directly to beneficiaries of its unfunded defined benefit pension plans and cash contributed to
its defined contribution plans were $21.3 million (2009  $17.1 million; 2008  $14.5 million).Defined contribution pension plansThe Company has several defined contribution pension plans covering substantially all employees
in North America. Under these plans, the Company contributes either a fixed percentage of its
employees salaries or matches a percentage of its employees contributions. The Companys
employees are able to direct the contributions into a variety of investment funds offered by the
plans. The Companys expense related to these plans was $17.6 million for the year ended
December 31, 2010 (2009  $13.9 million; 2008  $11.8 million), included in operating expenses
and corporate administration in the Consolidated Statements of Earnings.Defined benefit pension plansThe Company has several defined benefit pension plans covering certain of its
Canadian and Mexican employees.The following table summarizes the changes in the Companys accrued benefit obligation and fair
value of plan assets during the years ended December 31 and the reconciliation of the Companys
accrued benefit obligation to the accrued benefit liability at December 31:
 2010
    
    
    2009Accrued benefit obligationBalance, beginning of year
    
    $
    28.1
    
    
    $
    24.1Benefit obligations related to San Dimas (note 4(a))
    
    
    (2.3
    )
    
    
    Current service costs
    
    
    1.5
    
    
    
    1.6Interest costs
    
    
    1.7
    
    
    
    1.5Actuarial losses, net
    
    
    2.8
    
    
    
    2.6Benefits paid
    
    
    (1.1
    )
    
    
    (1.7
    )Balance, end of year
    
    $
    30.7
    
    
    $
    28.1Fair value of plan assetsBalance, beginning of year
    
    $
    22.8
    
    
    $
    19.4Plan assets related to San Dimas (note 4(a))
    
    
    (1.8
    )
    
    
    Actual return on plan assets, net
    
    
    2.0
    
    
    
    1.8Company contributions
    
    
    3.2
    
    
    
    3.3Benefits paid
    
    
    (1.1
    )
    
    
    (1.7
    )Balance, end of year
    
    $
    25.1
    
    
    $
    22.8Funded status  deficit
    
    $
    (5.6
    )
    
    $
    (5.3
    )Unamortized net actuarial gains
    
    
    (0.5
    )
    
    
    (2.9
    )Unamortized past service costs
    
    
    1.7
    
    
    
    2.3Accrued benefit liability(1)
    
    $
    (4.4
    )
    
    $
    (5.9
    )
 (1)
    
    Included in other non-current liabilities on the Consolidated Balance Sheets.




---



##### 



The Companys Employee Benefits Committee maintains and establishes investment policies relating
to the Companys defined benefit and defined contribution pension plans. The Companys Board of
Directors approves these policies and any material changes to these policies. The composition of
the Companys defined benefit pension plan assets at December 31 is as follows:
 2010
    
    
    2009Equity securities
    
    
    49
    %
    
    
    44
    %Debt securities
    
    
    51
    %
    
    
    55
    %Cash and other investments
    
    
    
    
    
    
    1
    %
 The following table summarizes the components of the Companys defined benefit pension expense
included in operating expenses in the Consolidated Statements of Earnings for the years ended
December 31:
 2010
    
    
    2009
    
    
    2008Costs arising in the year:Current service costs
    
    $
    1.5
    
    
    $
    1.6
    
    
    $
    1.8Interest costs
    
    
    1.7
    
    
    
    1.5
    
    
    
    1.7Actual loss (return) on plan assets, net
    
    
    (2.0
    )
    
    
    (1.8
    )
    
    
    2.6Actuarial losses (gains), net
    
    
    2.8
    
    
    
    2.6
    
    
    
    (9.8
    )Past service costs
    
    
    
    
    
    
    
    
    
    
    1.64.0
    
    
    
    3.9
    
    
    
    (2.1
    )Difference between costs arising in the
period and costs recognized in the period
in respect of:Loss and return on plan assets
    
    
    0.7
    
    
    
    0.6
    
    
    
    (4.0
    )Actuarial losses and gains
    
    
    (3.0
    )
    
    
    (2.9
    )
    
    
    9.8Past service costs
    
    
    0.4
    
    
    
    0.4
    
    
    
    (1.5
    )Defined benefit pension expense
    
    $
    2.1
    
    
    $
    2.0
    
    
    $
    2.2
 The Company measures its accrued benefit obligation and fair value of plan assets for accounting
purposes as at December 31 of each year. The following table summarizes the assumptions used in
measuring the Companys accrued benefit obligation and defined benefit pension expense:
 2010
    
    
    2009
    
    
    2008Accrued benefit obligation at December 31:Discount rate
    
    
    5.0%  7.5
    %
    
    
    5.7%  8
    %
    
    
    7.2%  8
    %Rate of compensation increase
    
    
    3.5%  4.0
    %
    
    
    4%  5
    %
    
    
    2%  11
    %Defined benefit pension expense for the years ended December 31:Expected long-term rate of return on plan assets
    
    
    6.2%  7.5
    %
    
    
    7.1%  8
    %
    
    
    7.1%  8
    %Discount rate
    
    
    5.7%  7.5
    %
    
    
    7.5%  8
    %
    
    
    5.5%  8
    %
 The following table summarizes the expected future benefit payments relating to the Companys
defined benefit plans during the years ending December 31:
 2011
    
    $
    1.42012
    
    
    1.32013
    
    
    1.42014
    
    
    1.42015
    
    
    1.52016 - 2020
    
    
    8.3
 The most recent actuarial valuation of the Companys defined benefit pension plans for funding
purposes is as at December 31, 2010, and the next required valuation will be as at December 31,
2013.




---



##### 



19.
    
    FINANCIAL INSTRUMENTS
 (a)
    
    Financial assets and liabilities and non-financial derivative contracts classified as
held-for-tradingAt December 31, the Company had the following financial assets and liabilities classified as
held-for-trading:
 2010
    
    
    2009Cash and cash equivalents
    
    $
    556.2
    
    
    $
    874.6Current derivative assets (1)
    
    
    8.5
    
    
    
    8.1Investments in warrants (note 12)
    
    
    6.6
    
    
    
    2.3Current derivative liabilities
    
    
    (55.1
    )
    
    
    (11.4
    )Non-current derivative liability
    
    
    (95.4
    )
    
    
    
 In addition, accounts receivable arising from sales of metal concentrates have been
designated and classified as held-for-trading by the Company as follows:
 At December 31
    
    2010
    
    
    2009Accounts receivableArising from sales of metal concentrates  classified as held-for-trading
    
    $
    243.1
    
    
    $
    123.0Not arising from sales of metal concentrates  classified as loans and receivables
    
    
    200.7
    
    
    
    155.8$
    443.8
    
    
    $
    278.8
 Derivative assets and liabilitiesAt December 31, the Companys derivative assets and liabilities were as follows:
 2010
    
    
    2009Current derivative assets (1)Foreign currency contracts (i)
    
    $
    5.4
    
    
    $
    6.6Heating oil forward contracts (i)
    
    
    
    
    
    
    0.2Copper contracts (i)
    
    
    3.0
    
    
    
    1.3Compound convertible feature of the Primero convertible note (ii)
    
    
    0.1
    
    
    
    $
    8.5
    
    
    $
    8.1Current derivative liabilitiesForeign currency contracts (i)
    
    $
    (0.1
    )
    
    $
    (1.2
    )Copper contracts (i)
    
    
    (15.3
    )
    
    
    (10.2
    )Lead option contracts (i)
    
    
    (0.1
    )
    
    
    Zinc forward contracts (i)
    
    
    (0.2
    )
    
    
    Non-financial contract to sell silver to Silver Wheaton (iii)
    
    
    (39.4
    )
    
    
    $
    (55.1
    )
    
    $
    (11.4
    )Non-current derivative liabilityNon-financial contract to sell silver to Silver Wheaton (iii)
    
    $
    (95.4
    )
    
    $
    
 (1)
    
    Included in other current assets on the Consolidated Balance Sheets (note 9).




---



##### 



The net gains (losses) on non-hedge derivatives for the years ended December 31 were
comprised of the following:
 2010
    
    
    2009
    
    
    2008Realized gains (losses) on matured foreign currency, heating oil, copper, lead and
zinc contracts (i)
    
    $
    9.4
    
    
    $
    6.9
    
    
    $
    (10.2
    )Unrealized mark-to-market gains (losses) on outstanding foreign currency, copper,
lead and zinc contracts and reversal of mark-to-market losses (gains) on matured
contracts (i)
    
    
    (4.0
    )
    
    
    (3.3)
    
    
    
    7.6Unrealized mark-to-market loss on compound conversion feature of the Primero
convertible note (ii)
    
    
    (1.2
    )
    
    
    
    
    
    
    Net loss on non-financial contract to sell silver to Silver Wheaton (iii)
    
    
    (66.0
    )
    
    
    
    
    
    
    $
    (61.8
    )
    
    $
    3.6
    
    
    $
    (2.6
    )
 The net gains on warrants for the years ended December 31 were comprised of the following:
 2010
    
    
    2009
    
    
    2008Realized gains (losses)
    
    $
    
    
    
    $
    (6.3
    )
    
    $
    7.5Unrealized mark-to-market
gains (losses) on
outstanding warrants and
reversal of mark-to-market
losses (gains) on exercised
warrants
    
    
    2.6
    
    
    
    13.7
    
    
    
    (2.4
    )$
    2.6
    
    
    $
    7.4
    
    
    $
    5.1
 The net gain on warrants is included in net gains (losses) on securities in the Consolidated
Statements of Earnings (note 12).
 (i)
    
    Foreign currency, heating oil, copper, lead and zinc contractsDuring the year ended December 31, 2010, the Company entered into Canadian dollar and
Mexican peso contracts to purchase the respective foreign currencies at pre-determined US
dollar amounts, heating oil contracts that were cash settled by reference to the monthly
NYMEX heating oil commodity price, and copper/lead/zinc contracts that are cash settled
to manage its exposure to volatility in metal prices. These contracts meet the definition
of a derivative. At December 31, 2010, the Companys outstanding derivative contracts
which settle and/or expire over the next twelve months were as follows:Foreign currency:
 1.
    
    Canadian dollar forward contracts to sell $12.0 million at 1.06 to the US dollar;2.
    
    Canadian dollar call options held to sell $12.0 million at 1.06 to the US dollar;3.
    
    Canadian dollar put options written to buy $12.0 million at 1.08 to the US dollar; and4.
    
    Mexican peso forward contracts to sell $60.0 million at 13.38 to the US dollar.
 Copper:
 1.
    
    Forward contracts to sell 1.7 million pounds at an average price of $3.52 per pound;2.
    
    Options held to sell 35.4 million pounds at an average price of $3.50 per pound; and3.
    
    Options written to buy 35.4 million pounds at an average price of $4.26 per pound.
 Lead:
 1.
    
    Options held to sell 1.7 million pounds at an average price of $0.91 per pound; and2.
    
    Options written to buy 1.7 million pounds at an average price of $1.18 per pound.




---



##### 



Zinc:
 1.
    
    Forward contracts to sell 1.7 million pounds at an average price of $1.00 per pound.
 (ii)
    
    Compound conversion feature of the Primero convertible noteAt December 31, 2010, management estimates that the fair value of the compound conversion
feature of the Primero convertible note (note4(a)(iii))was $0.1 million, resulting in
an unrealized loss on non-hedge derivatives of $1.2 million during the period from August
6, 2010, the initial recognition date, to December 31, 2010.(iii)
    
    Non-financial derivative contract to sell silver to Silver WheatonAt December 31, 2010, management estimates that the fair value of the Companys
commitment to deliver 1.5 million ounces of silver to Silver Wheaton during each of the
four contract years ending August 5, 2014 at a fixed price per ounce (note4(a)(v))was
$134.8 million. The fair value was estimated as the difference between the forward market
price of silver for each of the four contract years as at December 31, 2010 ranging from
$30.96 to $31.75 per ounce and the fixed price of $4.04 per ounce, subject to an annual
adjustment for inflation, receivable from Silver Wheaton, multiplied by the remaining
ounces to be delivered, and discounted using the Companys after tax weighted average
cost of capital. Of the $134.8 million, $39.4 million is included in current derivative
liabilities with the remaining amount included in non-current derivative liabilities. The
Company recorded a net loss on non-hedge derivatives of $66.0 million during the period from
August 6, 2010, the initial recognition date, to December 31, 2010 relating to its
commitment, comprising of a realized loss of $3.2 million on ounces delivered during
the period and an unrealized loss of $62.8 million on remaining ounces to be delivered.
The remaining total ounces to be delivered by the Company as at December 31, 2010 were
5.4 million ounces.(iv)
    
    Other embedded derivativesFinancial instruments and non-financial contracts may contain embedded derivatives, which
are required to be accounted for separately at fair value as derivatives when the risks
and characteristics of the embedded derivatives are not closely related to those of their
host contract and the host contract is not carried at fair value. The Company regularly
assesses its financial instruments and non-financial contracts to ensure that any
embedded derivatives are accounted for in accordance with its policy. There are no
material embedded derivatives requiring separate accounting at December 31, 2010 and 2009
other than as disclosed above.




---



##### 



(b)
    
    Financial assets classified as available-for-saleAt December 31, 2010 and 2009, the Companys financial assets classified as
available-for-sale consisted of marketable securities and investments in equity securities
(note 12).The unrealized gains (losses) on available-for-sale marketable securities and investments in
equity securities included in other comprehensive income for the years ended December 31 were
as follows:
 2010
    
    
    2009
    
    
    2008Marketable securities
    
    $
    9.7
    
    
    $
    16.3
    
    
    $
    (17.2
    )Investments in equity securities
    
    
    354.8
    
    
    
    185.2
    
    
    
    (106.2
    )364.5
    
    
    
    201.5
    
    
    
    (123.4
    )Future tax expense in OCI
    
    
    (43.5
    )
    
    
    (16.6
    )
    
    
    (0.6
    )Unrealized gains (losses) on available-for-sale securities, net of tax
    
    
    321.0
    
    
    
    184.9
    
    
    
    (124.0
    )Reclassification adjustment for unrealized impairment losses included
in net earnings, net of tax of $nil (i)(ii)(iii)
    
    
    2.1
    
    
    
    
    
    
    
    111.2Reclassification adjustment for realized gains included in net
earnings, net of tax  $nil (ii)(iii)
    
    
    
    
    
    
    (43.0
    )
    
    
    (0.2
    )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
    )$
    323.1
    
    
    $
    141.9
    
    
    $
    (59.9
    )
 (i)
    
    During the fourth quarter of 2010, the Company determined that the decline in the
fair value of one investment in equity securities was other than temporary. The
significant and prolonged decline in the market price of the equity investees shares
below the Companys original cost provided evidence that the decline in fair value of
the Companys investment was other than temporary. Accordingly,
the Company reclassified the
cumulative mark-to-market loss relating to the investment that had
previously been recognized in OCI to earnings and recognized an impairment loss on
available-for-sale securities of $2.1 million for the year ended
December 31, 2010.(ii)
    
    Prior to disposition on October 13, 2009, the Company owned a 7% interest in New
Gold. The fair value of the Companys investment in New Gold declined during 2008 when
New Gold recorded a write-down of $156.9 million on its Amapari mine in its 2008 third
quarter results. While significant resources remained at the Amapari mine, the
additional capital resources required to maintain economic production levels and the
limited remaining oxide reserves justified the decision to place the mine on temporary
care and maintenance and mining was suspended as of January 2, 2009. In addition, New
Gold revised its development plan for the New Afton project with full production
expected for the second half of 2012 instead of the previous expectation of operations
commencing in late 2009 with full production in the second quarter of 2011. The adverse
changes that took place in the economic environment in which New Gold operates and the
continued decline in the market price of its shares below the Companys original cost
(market price per share at December 31, 2008 was C$1.77 compared with the Companys
original cost of C$6.70 per share) provided objective evidence that the decline in fair
value of the Companys investment was other than temporary. Accordingly, the Company
reclassified the cumulative mark-to-market loss that had previously been recognized in OCI
as at December 31, 2008 and recognized an impairment loss on available-for-sale
securities of $81.5 million in earnings during the fourth quarter of 2008. The Company
disposed of its investment in New Gold on October 13, 2009 for net proceeds of $65.2
million. During the period from January 1, 2009 to October 13, 2009, the fair value of
the Companys investment in New Gold increased. The cumulative
mark-to-market gains that had been recognized in OCI at October 13, 2009 amounted to $43.0 million.
This amount was
reclassified from OCI
to earnings upon de-recognition of the investment resulting in a
recognized gain on securities of $42.8 million, net of selling costs of $0.2 million
(note 12).




---



##### 



(iii)
    
    During the third quarter of 2008, the Company determined that the decline
in the fair value of one other investment in equity securities was other than
temporary. The adverse changes that took place in the economic and political
environment in which the equity investee operates and the continued decline in the
market price of the equity investees shares below the Companys original cost provided
evidence that the decline in fair value of the Companys investment was other than
temporary. Accordingly, the Company reclassified the cumulative
mark-to-market loss relating to the investment that had
previously been recognized in OCI to earnings and recognized an impairment loss on available-for-sale securities of
$29.7 million for the year ended December 31, 2008. Subsequent to December 31, 2008, the
fair value of this investment increased. At December 31, 2010,
the cumulative mark-to-market gain in AOCI relating to this investment was $1.7 million (2009
- $2.4 million).
 (c)
    
    Fair value information
 (i)
    
    Fair value measurements of financial assets and liabilities recognized on the
Consolidated Balance SheetThe categories of fair value hierarchy that reflect the significance of inputs used in
making fair value measurements are as follows:Level 1  quoted prices in active markets for identical assets or liabilities;Level 2  inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (i.e.: as prices) or indirectly (i.e.: derived
from prices); andLevel 3  inputs for the asset or liability that are not based on observable market
data.At December 31, 2010, the levels in the fair value hierarchy into which the Companys
financial assets and liabilities measured and recognized on the Consolidated Balance
Sheet at fair value are categorized are as follows:
 Level 1
    
    
    Level 2Cash and cash equivalents
    
    $
    556.2
    
    
    $
    Marketable securities
    
    
    39.9
    
    
    
    Accounts receivable arising from sales of metal concentrates (note 19(a))
    
    
    
    
    
    
    243.1Investments in warrants
    
    
    5.6
    
    
    
    1.0Investments in equity securities
    
    
    924.0
    
    
    
    Current derivative assets (notes 9 and 19(a))
    
    
    
    
    
    
    8.5Current derivative liabilities (note 19(a))
    
    
    
    
    
    
    (55.1
    )Non-current derivative liability (note 19(a))
    
    
    
    
    
    
    (95.4
    )
 At December 31, 2010, there were no financial assets or liabilities measured and
recognized on the Consolidated Balance Sheet at fair value that would be categorized as
level 3 in the fair value hierarchy above.(ii)
    
    Fair values of financial assets and liabilities not already measured and
recognized at fair value on the Consolidated Balance SheetAt December 31, 2010, the carrying amounts of accounts receivable not arising from sales
of metal concentrates and accounts payable and accrued liabilities are considered to be
reasonable approximations of their fair values due to the short-term nature of these
instruments.Convertible senior notes:The initial recognition amount of the liability component of the notes has been accreted
from June 5, 2009 to December 31, 2010 based on an annual effective interest rate of
6.33% (note15(b)). Management estimates the market interest rate on similar
borrowings without the conversion feature has decreased to approximately 3.2% per annum
as at December 31, 2010. Accordingly, the fair value of the liability component of the
notes has increased to $835.8 million, compared to a




---



##### 



carrying amount of $754.3 million, which includes $7.2 million of accrued interest payable
included in accounts payable and accrued liabilities at December 31, 2010.Primero promissory note:The initial recognition amount of the Primero promissory note has been accreted from
August 6, 2010 to December 31, 2010 based on an annual effective interest rate of 5.5%
(note4(a)(ii)). Management estimates the market interest rate on similar borrowings has
decreased to approximately 4.3% per annum as at December 31, 2010. Accordingly, the fair
value of the Primero promissory note has increased to $54.7 million, compared to a
carrying amount of $53.7 million, which includes $1.2 million of accrued interest
receivable at December 31, 2010 (notes 8, 9 & 13).Primero convertible note:The initial recognition amount of the Primero convertible note has been accreted from
August 6, 2010 to December 31, 2010 based on an annual effective interest rate of 5.0%
(note4(a)(iii)). Management estimates the market interest rate on similar borrowings has
decreased to approximately 3.8% per annum as at December 31, 2010. Accordingly, the fair
value of the Primero convertible note has increased to $60.5 million, compared to a
carrying amount of $59.8 million, which includes $0.7 million of accrued interest
receivable at December 31, 2010 (notes 8 & 9).
 (d)
    
    Financial instrument risk exposureThe Company manages its exposure to financial risks, including credit risk, liquidity risk,
currency risk, interest rate risk and price risk, in accordance with its Risk Management
Policy. The Companys Board of Directors oversees managements risk management practices by
setting trading parameters and reporting requirements. The Risk Management Policy provides a
framework for the Company to manage the risks it is exposed to in various markets and to
protect itself against adverse market movements. All transactions undertaken are to support
the Companys ongoing business. The Company does not acquire or issue derivative financial
instruments for trading or speculative purposes.The following describes the types of risks that the Company is exposed to and its objectives
and policies for managing those risk exposures:
 (i)
    
    Credit riskCredit risk is the risk that the counterparty to a financial instrument will cause a
financial loss for the Company by failing to discharge its obligations. To mitigate
exposure to credit risk on financial assets, the Company has established policies to
limit the concentration of credit risk, ensure counterparties demonstrate minimum
acceptable credit worthiness and ensure liquidity of available funds.The Companys maximum exposure to credit risk at December 31 is as follows:
 2010
    
    
    2009Cash and cash equivalents
    
    $
    556.2
    
    
    $
    874.6Accounts receivable
    
    
    443.8
    
    
    
    278.8Current derivative assets (note 19(a))
    
    
    8.5
    
    
    
    8.1Current notes receivable (note 8)
    
    
    64.1
    
    
    
    Accrued interest receivable (note 9)
    
    
    1.9
    
    
    
    Non-current notes receivable (note 13)
    
    
    47.5
    
    
    
    $
    1,122.0
    
    
    $
    1,161.5
 The Company closely monitors its financial assets and does not have any significant
concentration of credit risk. The Company invests its cash and cash equivalents in highly
rated corporations and government issuances in accordance with
its short-term investment policy and the credit risk associated with its money market
investments is considered to be low. The Company sells its products exclusively to large
international financial institutions and other organizations with strong




---



##### 



credit ratings. The historical level of customer defaults is negligible and, as a result,
the credit risk associated with accounts receivables at December 31, 2010 is considered
to be negligible. The Companys foreign currency, heating oil, copper, lead and zinc
contracts are entered into with large international financial institutions with strong
credit ratings. The coupon rates on the Primero promissory and convertible notes are
reflective of the associated credit risks of the instruments. The fair values recognized
on initial recognition for these instruments have been estimated
using discount rates
that management believes reflect their associated credit risks.(ii)
    
    Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in meeting
obligations associated with its financial liabilities that are settled by delivering cash
or another financial asset. The Company has in place a rigorous planning, budgeting and
forecasting process to help determine the funds required to support the Companys normal
operating requirements on an ongoing basis and its expansionary plans. The Company
ensures that sufficient committed loan facilities exist to meet its short-term business
requirements, taking into account its anticipated cash flows from operations and its
holdings of cash and cash equivalents. During the year ended December 31, 2010, the
Company generated operating cash flows from continuing activities of $1,787.3 million
(2009  $1,275.1 million; 2008  $871.1 million). At December 31, 2010, Goldcorp held
cash and cash equivalents of $556.2 million (2009  $874.6 million) and had working
capital of $587.8 million (2009  $866.5 million), which the Company defines as current
assets less current liabilities.Goldcorp entered into a $1.5 billion revolving credit facility on May 18, 2007. At
December 31, 2010, the full amount of this facility was available for future draws.In April 2010, Barrick, the project operator, and Goldcorp finalized the terms for $1.035
billion (100% basis) in project financing for Pueblo Viejo ($414.0 million  Goldcorps
share). The lending syndicate is comprised of international financial institutions
including two export credit agencies and a syndicate of commercial banks. The financing
amount is divided into three tranches consisting of $375.0 million, $400.0 million and
$260.0 million with terms of fifteen years, fifteen years and twelve years, respectively.
The $375.0 million tranche bears a fixed coupon rate of 4.02% for the entire fifteen
years. The $400.0 million tranche bears a coupon rate of LIBOR plus 3.25% pre-completion
and scales gradually to LIBOR plus 5.10% (inclusive of a political risk insurance
premium) for years thirteen to fifteen. The $260.0 million tranche bears a coupon rate of
LIBOR plus 3.25% pre-completion and scales gradually to LIBOR plus 4.85% (inclusive of
political risk insurance premium) for years eleven and twelve. Barrick and Goldcorp have
each provided a guarantee for their proportionate share of the loan. The guarantees will
terminate upon Pueblo Viejo meeting certain operating completion tests and are subject to
a carve-out for certain political risk events. In June 2010, the $400.0 million and
$260.0 million tranches, in addition to a portion of the $375.0 million tranche, were
drawn for a total amount received of $781.5 million ($312.6 million  Goldcorps share).
This amount is not included in the Companys commitments for future minimum payments
below as the Companys investment in Pueblo Viejo is accounted for using the equity
method. At December 31, 2010, there was $253.5 million available for future draws on the
$375.0 million tranche ($101.4 million  Goldcorps share).




---



##### 



In the normal course of business, the Company enters into contracts and performs
business activities that give rise to commitments for future minimum payments. The
following table summarizes the maturities of the Companys financial liabilities and
operating and capital commitments at December 31:
 2010Within 1
    
    
    2 to 3
    
    
    4 to 5
    
    
    Over 5year
    
    
    years
    
    
    years
    
    
    years
    
    
    Total
    
    
    2009Accounts payable and accrued liabilities (a)
    
    $
    556.6
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    556.6
    
    
    $
    382.0Current derivative liabilities (note 19(a))
    
    
    51.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.1
    
    
    
    11.4Principal payments on convertible senior notes (note
15(b))
    
    
    
    
    
    
    
    
    
    
    862.5
    
    
    
    
    
    
    
    862.5
    
    
    
    879.2Interest payments on convertible senior notes (note
15(b))
    
    
    17.3
    
    
    
    34.5
    
    
    
    17.2
    
    
    
    
    
    
    
    69.0
    
    
    
    88.9Non-financial derivative contract to sell silver to
Silver Wheaton (note 19(a)(iii))
    
    
    39.4
    
    
    
    78.7
    
    
    
    27.7
    
    
    
    
    
    
    
    145.8
    
    
    
    Reclamation and closure cost obligations (note 17)
    
    
    22.7
    
    
    
    43.1
    
    
    
    19.7
    
    
    
    426.2
    
    
    
    511.7
    
    
    
    523.5Capital expenditure commitments
    
    
    51.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.0
    
    
    
    172.3Minimum rental and lease payments
    
    
    2.3
    
    
    
    3.3
    
    
    
    3.4
    
    
    
    1.4
    
    
    
    10.4
    
    
    
    11.5$
    740.4
    
    
    $
    159.6
    
    
    $
    930.5
    
    
    $
    427.6
    
    
    $
    2,258.1
    
    
    $
    2,068.8
 (a)
    
    Excludes accrued interest on convertible senior notes and current
portion of reclamation and closure cost obligations which are disclosed separately
in the above table.
 At December 31, 2010, the Company had letters of credit outstanding and secured
deposits in the amount of $307.7 million (2009  $270.9 million).In the opinion of management, the working capital at December 31, 2010, together with
future cash flows from operations and available funding facilities, is sufficient to
support the Companys commitments. The Companys total planned capital expenditure for
2011 is $1.8 billion, 50% of which will be allocated to the Red Lake, Marlin and
Peñasquito mines and 50% to projects. The amount allocated to projects will focus on
commissioning Pueblo Viejo and developing the Cerro Negro, El Morro and Camino Rojo
projects acquired during 2010. The 2011 expenditures will be funded partly by available
cash balances, cash flows from operations, and available funding under the $1.5 billion
revolving credit facility and $1.035 billion project financing for Pueblo Viejo ($414.0
million  Goldcorps share).For the periods beyond 2011, the Companys cash flows from operations and available
funding under the Companys loan facilities are expected to sufficiently support further
expansions and growth. Peñasquito will be the main driver of the Companys gold
production growth expected in the next five years, with significant contributions from
Red Lake and Pueblo Viejo.(iii)
    
    Currency riskCurrency risk is the risk that the fair values or future cash flows of the Companys
financial instruments will fluctuate because of changes in foreign currency exchange
rates. Exchange rate fluctuations may affect the costs that the Company incurs in its
operations. Gold, silver, copper, lead and zinc are sold in US dollars and the Companys
costs are incurred principally in US dollars, Canadian dollars, Mexican pesos,
Argentinean pesos, Guatemalan quetzals and Chilean pesos. The
appreciation of foreign currencies against the US dollar can increase the costs of gold, silver, copper,
lead and zinc production and capital expenditures in US dollar terms. The Company also
holds cash and cash equivalents that are denominated in foreign currencies which
are subject to currency risk. Accounts receivable and other current and long-term assets
denominated in foreign currencies relate to goods and services taxes, value-added taxes and
insurance
receivables. At December 31, 2010, the Company had $5.8 billion of future income tax
liabilities which arose primarily from the acquisitions of Placer Dome Inc.s assets and
Glamis in 2006, Gold Eagle in the third quarter of 2008, and




---



##### 



Camino Rojo and Cerro Negro
in 2010 which are denominated in foreign currencies. Future income tax assets and liabilities are considered monetary and
translated each period end at current exchange rates, with the gain or loss recorded in
earnings for the period.The Company is exposed to currency risk through the following financial assets and
liabilities and future income tax liabilities denominated in foreign currencies at December 31:
 Accountsreceivableand other
    
    
    
    
    
    
    Accounts
    
    
    
    
    
    
    FutureCash and
    
    
    current and
    
    
    Income and
    
    
    payable and
    
    
    
    
    
    
    income taxcash
    
    
    long-term
    
    
    mining taxes
    
    
    accrued
    
    
    Current
    
    
    assets2010
    
    equivalents
    
    
    assets
    
    
    payable
    
    
    liabilities
    
    
    debt
    
    
    (liabilities)Canadian dollar
    
    $
    69.8
    
    
    $
    92.3
    
    
    $
    (71.6
    )
    
    $
    (216.0
    )
    
    $
    
    
    
    $
    (1,928.0
    )Mexican peso
    
    
    33.9
    
    
    
    86.9
    
    
    
    (184.8
    )
    
    
    (181.3
    )
    
    
    
    
    
    
    (2,022.8
    )Argentinean peso
    
    
    1.5
    
    
    
    33.1
    
    
    
    (46.6
    )
    
    
    (94.6
    )
    
    
    
    
    
    
    (1,830.0
    )Guatemalan quetzal
    
    
    4.9
    
    
    
    1.1
    
    
    
    (4.8
    )
    
    
    (29.2
    )
    
    
    
    
    
    
    25.3Chilean peso
    
    
    
    
    
    
    0.8
    
    
    
    (0.2
    )
    
    
    (5.4
    )
    
    
    
    
    
    
    $
    110.1
    
    
    $
    214.2
    
    
    $
    (308.0
    )
    
    $
    (526.5
    )
    
    $
    
    
    
    $
    (5,755.5
    )
 Accountsreceivable and
    
    
    Income and
    
    
    Accountsother current
    
    
    mining taxes
    
    
    payable and
    
    
    
    
    
    
    FutureCash and cash
    
    
    and long-term
    
    
    receivable
    
    
    accrued
    
    
    
    
    
    
    income tax2009
    
    equivalents
    
    
    assets
    
    
    (payable)
    
    
    liabilities
    
    
    Current 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
    )
 During the year ended December 31, 2010, the Company recognized a net loss of $355.4
million on foreign exchange (2009  net loss of $363.7 million; 2008  net gain of
$1,059.3 million). Of this amount, $362.6 million resulted from the translation of future
income taxes denominated in foreign currencies (2009  loss of $318.8
million; 2008  gain of $1,062.6 million). Based on the above net exposures at December
31, 2010, a 10% depreciation or appreciation of the above foreign currencies against the US
dollar would result in a $426.0 million increase or decrease in the Companys after-tax
net earnings, respectively.During the years ended December 31, 2010 and 2009, the Company entered into Canadian
dollar and Mexican peso forward and option contracts to purchase and sell the respective
foreign currencies at pre-determined US dollar amounts (note19(a)(i)). These contracts
were entered into to normalize operating expenses incurred by the Companys foreign
operations as expressed in US dollar terms. In accordance with its Risk Management
Policy, the Company may hedge up to 50% and 30% of its annual Canadian dollar and Mexican
peso operating expenditures over the next twelve months and subsequent thirteen to twenty
four months, respectively.(iv)
    
    Interest rate riskInterest rate risk is the risk that the fair values and future cash flows of the
Companys financial instruments will fluctuate because of changes in market interest
rates. The Company is exposed to interest rate risk on its outstanding revolving credit
facility (note15(c)), its share of the Pueblo Viejo project financing finalized during
the second quarter of 2010 and its cash and cash equivalents. In addition, the $50.0
million Primero promissory note and debt component of the $60.0
million Primero convertible note receivable are exposed to interest rate risk as a result
of the fixed interest rates earned (notes 8 & 13).




---



##### 



The Company monitors its exposure to interest rates and is comfortable with its
exposures given the relatively low US dollar rates. Interest incurred on the Companys
revolving credit facility during the year ended December 31, 2010 amounted to $1.5
million. A 10% change in the interest rate on the Companys revolving credit facility
would result in a nominal change in the Companys after-tax net earnings, respectively.
The average interest rate earned by the Company during the year ended December 31, 2010
on its cash and cash equivalents was 0.20% (2009  0.22%; 2008  2.68%). A 10% increase
or decrease in the interest earned from financial institutions on deposits held and money
market investments would result in a $0.1 million increase or decrease in the Companys
after-tax net earnings, respectively (2009 and 2008  nominal). A 10% decrease or
increase in the market interest rate for debt with similar terms and associated credit
risks to the Primero notes receivable would increase and decrease the fair values of these
notes receivable by $0.7 million, respectively.(v)
    
    Price riskPrice risk is the risk that the fair value or future cash flows of the Companys
financial instruments will fluctuate because of changes in market prices. Profitability
of the Company depends on metal prices for gold, silver, copper, lead and zinc. Metal
prices are affected by numerous factors such as the sale or purchase of gold and silver
by various central banks and financial institutions, interest rates, exchange rates,
inflation or deflation, fluctuations in the value of the US dollar and foreign
currencies, global and regional supply and demand, and the political and economic
conditions of major producing countries throughout the world. A 10% increase or decrease
in metal prices would result in a $322.0 million increase or decrease in the Companys
after-tax net earnings, respectively. The Company has a policy not to hedge gold sales.
In accordance with the Companys Risk Management Policy, the Company may hedge up to 50%
and 30% of its base metal sales volume over the next fifteen months and subsequent
sixteen to twenty seven months, respectively, to manage its exposure to fluctuations in
base metal prices (note19(a)(i)).The costs relating to the Companys production, development and exploration activities
vary depending on the market prices of certain mining consumables including diesel and
electricity. A 10% increase or decrease in diesel market prices would result in an $8.5
million decrease or increase in the Companys after-tax net earnings, respectively. The
Company does not intend to hedge against diesel price fluctuations in Mexico as the
government regulates the domestic market. The Company has entered into contracts to hedge
against diesel price fluctuations in Canada and the United States through NYMEX heating
oil contracts as a proxy for diesel. Electricity is regionally priced in Ontario, Canada
and Mexico and semi-regulated by the provincial and federal governments, respectively.
The regulation of electricity prices reduces the risk of price fluctuation and the
Company therefore does not contemplate entering into contracts to hedge against such
risk.
 20.
    
    MANAGEMENT OF CAPITALThe Companys objectives of capital management are to safeguard the entitys ability to
support the Companys normal operating requirements on an ongoing basis, continue the
development and exploration of its mineral properties and support any expansionary plans.The capital of the Company consists of items included in shareholders equity and debt, net of
cash and cash equivalents as follows:
 At December 31
    
    2010
    
    
    2009Shareholders equity
    
    $
    20,194.2
    
    
    $
    15,493.2Current and long-term debt
    
    
    747.1
    
    
    
    735.720,941.3
    
    
    
    16,228.9Less: cash and cash equivalents
    
    
    (556.2
    )
    
    
    (874.6
    )$
    20,385.1
    
    
    $
    15,354.3




---



##### 



The Company manages its capital structure and makes adjustments in light of changes in its
economic environment and the risk characteristics of the Companys assets. To effectively manage
the entitys capital requirements, the Company has in place a rigorous planning, budgeting and
forecasting process to help determine the funds required to ensure the Company has the
appropriate liquidity to meet its operating and growth objectives. The Company ensures that
there are sufficient committed loan facilities to meet its short-term business requirements,
taking into account its anticipated cash flows from operations and its holdings of cash and cash
equivalents.At December 31, 2010, the Company expects its capital resources and projected free cash flows
from continuing operations to support its normal operating requirements on an ongoing basis and
planned development and exploration of its mineral properties and other expansionary plans. At
December 31, 2010, there was no externally imposed capital requirement to which the Company is
subject, which the Company has not complied with.21.
    
    COMMON SHARES, SHARE PURCHASE WARRANTS, STOCK OPTIONS, RESTRICTED AND PERFORMANCE SHARE
UNITSAt December 31, 2010, the Company had unlimited authorized common shares and 798.4 million
common shares outstanding (2009  733.6 million). Refer to the Consolidated Statements of
Equity for movement in common shares.
 (a)
    
    Share purchase warrantsAt December 31, 2010 and 2009, the Company had a total of 9.2 million warrants outstanding.
Of the 9.2 million warrants outstanding, 8.4 million 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 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 three years ended December 31, 2010.(b)
    
    Stock options, restricted share units and performance share unitsStock options:Of the 15.7 million stock options outstanding at December 31, 2010, 15.0 million relate to
options granted under the Companys 2005 Stock Option Plan. The Companys 2005 Stock Option
Plan allows for the issuance of up to 32.5 million stock options with a maximum exercise
period of five years to employees and officers.The Company granted 6.0 million stock options during the year ended December 31, 2010 which
vest over three years, are exercisable at C$40.79 to C$45.51 per option, expire in 2015 and
have a total fair value of $80.7 million at the date of grant. The Company granted 5.0
million stock options during the year ended December 31, 2009, which vest over a period of
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 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
    
    2010
    
    
    2009
    
    
    2008Expected life (years)
    
    
    2.9
    
    
    
    2.7
    
    
    
    3.6Expected volatility
    
    
    50
    %
    
    
    52
    %
    
    
    35
    %Expected dividend yield
    
    
    <1
    %
    
    
    <1
    %
    
    
    <1
    %Risk-free interest rate
    
    
    1.9
    %
    
    
    2.0
    %
    
    
    2.9
    %Weighted average fair value per option
    
    $
    13.52
    
    
    $
    9.97
    
    
    $
    11.42
 The expected volatility assumptions are based on the historical and implied volatility of
Goldcorps Canadian dollar common share price on the TSX. The risk-free interest rate assumptions are
based on yield curves on Canadian government zero-coupon bonds with a remaining term equal
to the stock options expected life.The following table summarizes the changes in outstanding stock options during the years
ended December 31:
 WeightedAverageOptions
    
    
    ExerciseOutstanding
    
    
    Price(000s)
    
    
    (C$/option)At 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
    
    
    
    32.16Granted
    
    
    5,972
    
    
    
    44.48Exercised
    
    
    (3,524
    )
    
    
    28.24Cancelled
    
    
    (824
    )
    
    
    38.30At December 31, 2010
    
    
    15,693
    
    
    $
    37.41
 The following table summarizes information about the Companys stock options outstanding at
December 31, 2010:
 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)$12.55
    
    
    34
    
    
    $
    12.55
    
    
    
    1.1
    
    
    
    34
    
    
    $
    12.55
    
    
    
    1.1$16.87 - $19.23
    
    
    1,165
    
    
    
    18.63
    
    
    
    3.9
    
    
    
    1,165
    
    
    
    18.63
    
    
    
    3.9$24.40 - $26.76
    
    
    1,073
    
    
    
    25.62
    
    
    
    5.0
    
    
    
    1,073
    
    
    
    25.62
    
    
    
    5.0$28.84 - $31.93
    
    
    816
    
    
    
    30.97
    
    
    
    5.5
    
    
    
    816
    
    
    
    30.97
    
    
    
    5.5$34.39 - $37.82
    
    
    3,911
    
    
    
    35.67
    
    
    
    3.4
    
    
    
    985
    
    
    
    35.64
    
    
    
    3.5$39.36 - $40.79
    
    
    3,017
    
    
    
    39.77
    
    
    
    2.5
    
    
    
    1,756
    
    
    
    39.76
    
    
    
    2.4$44.50 - $45.51
    
    
    5,677
    
    
    
    44.51
    
    
    
    4.4
    
    
    
    15,693
    
    
    $
    37.41
    
    
    
    3.8
    
    
    
    5,829
    
    
    $
    30.85
    
    
    
    3.8




---



##### 



Restricted share units:The Company has an RSU Plan which allows for up to 4.2 million RSUs to be granted to
employees and directors that vest over a period of up to three years from the date of
issuance. Each RSU is exercisable into one common share for no additional consideration.The Company issued 311,500
RSUs during the year ended December 31, 2010 (2009  369,000;
2008  406,500) with a weighted average fair value of $43.30 per
RSU (2009  $30.89; 2008 
$40.10) and total fair value of $13.5 million (2009 
$11.4 million; 2008  $16.3 million)
at the date of issuance. At December 31, 2010, the Company had 0.5 million RSUs outstanding
(2009  0.4 million).Stock options and Restricted share units compensation expense:Total stock options and RSUs vested during the year ended December 31, 2010 and credited to
shareholders equity was $63.0 million (2009 
$48.1 million; 2008  $40.4 million). Of this
amount, $0.6 million (2009  $3.0 million; 2008  $nil) related to the development of
Peñasquito and was capitalized and included in the carrying amount of the mining property
(note10(d)). The remaining $62.4 million
(2009  $45.1 million; 2008  $40.4 million) was
recorded as stock based compensation expense and included in corporate administration. Total
stock based compensation expense recognized during the year ended December 31, 2008 of $41.5
million included $1.1 million for Silver Wheaton.Performance share units compensation expense:On July 28, 2010, the Company established a Performance Share Unit Plan (the PSU plan)
whereby PSUs will be issued to eligible executives as determined by the Companys Board of
Directors or the Companys Compensation Committee as directed by the Board. PSUs issued
under the PSU plan entitle the holder to a cash payment at the end of a three year
performance period equal to a target settlement ranging from 0% to 200% of the current
market value of the underlying Goldcorp shares, to be determined at the end of the
performance period based on the performance of the underlying Goldcorp shares.During August 2010, the Company issued 219,200 PSUs. Total stock-based compensation expense
recorded relating to PSUs and recognized as a liability for the year ended December 31, 2010
was $0.8 million.(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
$3.5 million during the year ended December 31, 2010 (2009
 $2.7 million; 2008  $2.5
million).(d)
    
    Earnings and net earnings per shareEarnings and net earnings per share for the years ended December 31 were calculated based on
the following:
 (in thousands)
    
    2010
    
    
    2009
    
    
    2008Basic weighted-average number of shares outstanding
    
    
    735,337
    
    
    
    731,306
    
    
    
    711,862Effect of dilutive securities:Stock options
    
    
    2,264
    
    
    
    2,747
    
    
    
    3,164Restricted share units
    
    
    478
    
    
    
    406
    
    
    
    370Share purchase warrants
    
    
    157
    
    
    
    105
    
    
    
    38Diluted weighted-average number of shares outstanding
    
    
    738,236
    
    
    
    734,564
    
    
    
    715,434




---



##### 



The following lists the securities excluded from the computation of diluted earnings and
net earnings per share for the years ended December 31 because the underlying exercise
prices exceeded the average market price of the underlying common
shares of C$43.13 (2009 
C$39.97; 2008  C$36.46):
 (in thousands)
    
    2010
    
    
    2009
    
    
    2008Stock options
    
    
    5,677
    
    
    
    
    
    
    
    4,351Share purchase warrants
    
    
    8,439
    
    
    
    8,439
    
    
    
    8,439
 The effect of outstanding convertible senior notes issued on June 5, 2009 (note15(b))was
anti-dilutive for the years ended December 31, 2010 and 2009 and therefore excluded from the
computation of diluted earnings and net earnings per share. In the event that the notes were
dilutive, the computation of diluted earnings and net earnings per share would have included
the following:
 2010
    
    
    2009Effect of convertible senior notes on
diluted earnings from continuing operations
and net earnings:Interest expense for the year, net of tax
    
    $
    39.8
    
    
    $
    22.3Effect of convertible senior notes on
diluted weighted average number of shares
outstanding (in thousands)
    
    
    17,975
    
    
    
    10,342
 22.
    
    NON-CONTROLLING INTERESTS
 El Morro
    
    
    Terrane
    
    
    TotalAt December 31, 2008
    
    $
    
    
    
    $
    51.2
    
    
    $
    51.2Impact of change in ownership interest
    
    
    
    
    
    
    1.9
    
    
    
    1.9Share of net loss (note 6)
    
    
    
    
    
    
    (2.0
    )
    
    
    (2.0
    )At December 31, 2009
    
    
    
    
    
    
    51.1
    
    
    
    51.1Acquisition of El Morro project(note 5(b))
    
    
    213.1
    
    
    
    
    
    
    
    213.1Impact of change in ownership interestPrior to disposition of remaining interest in Terrane(a)
    
    
    
    
    
    
    53.1
    
    
    
    53.1Disposition of remaining interest in Terrane(b)
    
    
    
    
    
    
    (95.9
    )
    
    
    (95.9
    )
    
    
    
    (42.8
    )
    
    
    (42.8
    )Share of net earnings (loss)(note 6)
    
    
    0.1
    
    
    
    (8.3
    )
    
    
    (8.2
    )At December 31, 2010
    
    $
    213.2
    
    
    $
    
    
    
    $
    213.2
 (a)
    
    The non-controlling interests balance at December 31, 2008 represents the minority
shareholders interest in Terrane. At December 31, 2008, the Company had a 66% controlling
interest in Terrane. Common shares issued during 2009 resulting from exercises of stock
options outstanding during the year reduced the Companys interest to 65%.On April 16, 2010, Terrane completed a bought-deal financing agreement with a syndicate of
underwriters for the sale of 63,637,000 Units which were sold to the public at a price of
C$1.10 per Unit for gross proceeds of C$70.0 million ($69.8 million). Each Unit consists of
one common share and one-half common share purchase warrant. Each whole warrant entitles the
holder to purchase one additional common share of Terrane at a price of C$1.50 per share for
a period of 12 months from closing. Concurrent with the issuance of Units to the
underwriters, 27,273,000 Units were issued at the same price on a non-brokered private
placement basis to Goldcorp for C$30.0 million ($29.9 million). These issuances resulted in
a decrease to Goldcorps interest in Terrane and gave rise to an increase in non-controlling
interests of $50.0 million. An adjustment was made to increase retained earnings directly by
$15.3 million to reflect the difference between the increase in non-controlling interests
and the Companys share of proceeds received. Issuances of common shares resulting from
exercises of stock options




---



##### 



outstanding during the period from January 1, 2010 to October 20,
2010 also gave rise to an increase in non-controlling interests of $3.1 million and a direct
decrease of $1.4 million to retained earnings.(b)
    
    On October 20, 2010, the Company disposed of its remaining 58.1% interest in Terrane
and derecognized the carrying amount of non-controlling interests on the date of
disposition (note 6).
 23.
    
    ACCUMULATED OTHER COMPREHENSIVE INCOME
 At December 31
    
    2010
    
    
    2009Unrealized foreign exchange translation adjustment
    
    $
    101.9
    
    
    $
    101.9Unrealized gains on available-for-sale securities, net of tax of $60.8 million
(2009 - $17.3 million) (note 19(b))
    
    
    460.0
    
    
    
    136.9$
    561.9
    
    
    $
    238.8
 Prior to April 1, 2005, the Canadian dollar was determined to be the measurement currency
of the Companys Canadian operations and these operations were translated into US dollars until
this date using the current rate method. Under this method, all assets and liabilities were
translated into US dollars at the exchange rate prevailing at the balance sheet date, all
revenue and expense items were translated at the average rate of exchange for the period and the
resulting translation adjustment was recorded as a foreign exchange translation adjustment
(FETA), a separate component of AOCI. The FETA balance at December 31, 2010 represents the
cumulative translation adjustment to April 1, 2005 and will remain in AOCI until the related
foreign operations are disposed of.




---



##### 



24.
    
    INTERESTS IN JOINT VENTURESThe Company conducts a portion of its business through joint ventures under which the
venturers are bound by contractual arrangements establishing joint control over the ventures.
The Company records its proportionate share of assets, liabilities,
revenues and expenses of the joint ventures. At December 31, 2010 and 2009, the Company
had two significant interests in joint ventures, Marigold and Alumbrera.The following condensed statements of earnings and cash flows for the years ended December 31
and balance sheets at December 31 detail the amounts relating to Goldcorps interests in
Marigold and Alumbrera that have been proportionately consolidated:
 Years ended December 31
    
    2010
    
    
    2009
    
    
    2008Proportionate Statements of Joint Venture EarningsRevenues
    
    $
    707.9
    
    
    $
    594.5
    
    
    $
    572.1Operating expenses
    
    
    (370.8
    )
    
    
    (325.9
    )
    
    
    (336.9
    )Depreciation and depletion
    
    
    (84.8
    )
    
    
    (84.9
    )
    
    
    (85.7
    )Exploration expense
    
    
    (3.3
    )
    
    
    (2.7
    )
    
    
    (2.1
    )Other income (expenses)
    
    
    (8.2
    )
    
    
    (7.6
    )
    
    
    8.0Income and mining taxes
    
    
    (59.7
    )
    
    
    (47.9
    )
    
    
    (40.5
    )Net earnings
    
    $
    181.1
    
    
    $
    125.5
    
    
    $
    114.9Proportionate Statements of Joint Venture Cash FlowsOperating activities
    
    $
    224.1
    
    
    $
    210.6
    
    
    $
    121.9Investing activities
    
    
    (33.2
    )
    
    
    (41.9
    )
    
    
    (35.7
    )Financing activities (a)
    
    
    (198.0
    )
    
    
    (150.0
    )
    
    
    (97.5
    )Increase (decrease) in cash and cash equivalents
    
    $
    (7.1
    )
    
    $
    18.7
    
    
    $
    (11.3
    )
 At December 31
    
    2010
    
    
    2009Proportionate Joint Venture Balance SheetsCurrent assets
    
    $
    302.7
    
    
    $
    267.3Mining interests
    
    
    672.7
    
    
    
    730.7Other non-current assets
    
    
    61.7
    
    
    
    64.3$
    1,037.1
    
    
    $
    1,062.3Current liabilities
    
    $
    121.6
    
    
    $
    115.1Non-current liabilities
    
    
    60.7
    
    
    
    60.7Future income and mining taxes
    
    
    150.7
    
    
    
    147.9Reclamation and closure cost obligations
    
    
    33.1
    
    
    
    38.6Goldcorps investment carrying value
    
    
    671.0
    
    
    
    700.0$
    1,037.1
    
    
    $
    1,062.3
 (a)
    
    Included in financing activities are dividends paid by Alumbrera to the Company in the
amount of $180.0 million for the year ended December 31, 2010 which have been eliminated
upon consolidation (2009  $154.2 million; 2008  $101.0 million).(b)
    
    Included in total capital commitments at December 31, 2010 (note 19(d)(ii))are $0.8
million (2009  $0.9 million) relating to Alumbrera.




---



##### 



25.
    
    SUPPLEMENTAL CASH FLOW INFORMATION
 Years ended December 31
    
    Note
    
    2010
    
    
    2009
    
    
    2008Change in non-cash operating working capitalAccounts receivable
    
    
    
    $
    (158.3
    )
    
    $
    (53.3
    )
    
    $
    (52.8
    )Income and mining taxes receivable
    
    
    
    
    1.5
    
    
    
    (33.2
    )
    
    
    0.2Inventories and stockpiled ore
    
    
    
    
    (56.5
    )
    
    
    (80.3
    )
    
    
    (36.5
    )Accounts payable and accrued liabilities
    
    
    
    
    135.9
    
    
    
    117.3
    
    
    
    15.5Income and mining taxes payable
    
    
    
    
    148.0
    
    
    
    141.3
    
    
    
    10.3Other
    
    
    
    
    (1.7
    )
    
    
    (1.0
    )
    
    
    (3.9
    )$
    68.9
    
    
    $
    90.8
    
    
    $
    (67.2
    )Acquisitions, net of cash and cash equivalents acquiredCerro Negro
    
    5(a)
    
    $
    (520.4
    )
    
    $
    
    
    
    $
    El Morro
    
    5(b)
    
    
    (511.3
    )
    
    
    
    
    
    
    Camino Rojo
    
    5(c)
    
    
    (285.8
    )
    
    
    
    
    
    
    Gold Eagle
    
    4(c)
    
    
    
    
    
    
    
    
    
    
    (553.0
    )$
    (1,317.5
    )
    
    $
    
    
    
    $
    (553.0
    )Proceeds on disposition of mining interests, netSan Dimas
    
    4(a)
    
    $
    209.7
    
    
    $
    
    
    
    $
    Escobal
    
    4(b)
    
    
    215.2
    
    
    
    
    
    
    
    Exploration project in Mexico
    
    4(e)
    
    
    1.4
    
    
    
    
    
    
    
    Land relating to Wharf
    
    4(e)
    
    
    3.0
    
    
    
    
    
    
    
    El Limón
    
    4(e)
    
    
    47.4
    
    
    
    
    
    
    
    Certain mining properties
    
    4(e)
    
    
    
    
    
    
    14.0
    
    
    
    $
    476.7
    
    
    $
    14.0
    
    
    $
    Non-cash investing and financing activitiesCommon shares issued on acquisition of Andean
    
    5(a)
    
    $
    2,785.3
    
    
    $
    
    
    
    $
    Thompson Creek common shares received on disposition of Terrane
    
    6
    
    
    153.7
    
    
    
    
    
    
    
    Fair value of Terrane share purchase warrants retained and included in proceeds on
disposition of Terrane
    
    6
    
    
    0.9
    
    
    
    
    
    
    
    Primero common shares received on disposition of San Dimas
    
    4(a)(i)
    
    
    159.2
    
    
    
    
    
    
    
    Primero promissory note received on disposition of San Dimas
    
    4(a)(ii)
    
    
    52.6
    
    
    
    
    
    
    
    Primero convertible note received on disposition of San Dimas
    
    4(a)(iii)
    
    
    59.7
    
    
    
    
    
    
    
    Working capital adjustment received on sale of San Dimas inventory to Primero
    
    4(a)
    
    
    4.0
    
    
    
    
    
    
    
    Tahoe common shares received on disposition of Escobal
    
    4(b)
    
    
    270.9
    
    
    
    
    
    
    
    Common shares received on disposition of certain Mexican exploration project
    
    4(e)
    
    
    0.6
    
    
    
    
    
    
    
    Promissory note received on disposition of certain land relating to Wharf
    
    4(e)
    
    
    2.6
    
    
    
    
    
    
    
    Common shares received on disposition of certain mining interests
    
    4(e)
    
    
    
    
    
    
    6.1
    
    
    
    Equity securities received on conversion of warrants held
    
    
    
    
    
    
    
    
    13.2
    
    
    
    7.5Addition to mining interests under capital lease
    
    
    
    
    
    
    
    
    8.5
    
    
    
    Shares, options and warrants issued on acquisition of Gold Eagle
    
    4(c)
    
    
    
    
    
    
    
    
    
    
    550.6Disposition of original Gold Eagle shares owned prior to the acquisition of Gold Eagle
    
    4(c)
    
    
    
    
    
    
    
    
    
    
    26.7Assumption of reclamation and closure cost obligations by purchaser on disposition of
mining interests
    
    4(e)
    
    
    
    
    
    
    
    
    
    
    2.6Operating activities included the following cash payments:Interest paid
    
    
    
    $
    23.8
    
    
    $
    4.6
    
    
    $
    8.1Income and mining taxes received
    
    
    
    
    3.3
    
    
    
    40.6
    
    
    
    23.5Income and mining taxes paid
    
    
    
    
    212.3
    
    
    
    105.3
    
    
    
    156.4Cash and cash equivalents at December 31 is comprised of:Cash
    
    
    
    $
    290.8
    
    
    $
    136.1Short-term money market investments
    
    
    
    
    265.4
    
    
    
    738.5$
    556.2
    
    
    $
    874.6




---



##### 



26.
    
    SEGMENTED INFORMATIONSignificant information relating to the Companys mining properties considered as reportable
operating segments is summarized in the tables below.
 Expenditureson miningEarnings
    
    
    interestsDepreciation
    
    
    (loss) from
    
    
    (includingRevenues
    
    

and depletion
    
    
    operations
    
    
    deposits)(i)
    
    
    Total assetsYear ended December 31, 2010
    
    
    At December 31, 2010Red Lake(a)
    
    $
    866.2
    
    
    $
    111.9
    
    
    $
    527.7
    
    
    $
    204.1
    
    
    $
    3,308.2Porcupine
    
    
    328.8
    
    
    
    86.8
    
    
    
    76.3
    
    
    
    87.9
    
    
    
    478.0Musselwhite
    
    
    318.9
    
    
    
    37.1
    
    
    
    111.3
    
    
    
    79.4
    
    
    
    454.2Éléonore
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    118.2
    
    
    
    1,035.7Peñasquito(b)
    
    
    357.1
    
    
    
    63.1
    
    
    
    109.5
    
    
    
    203.3
    
    
    
    11,293.9Los Filos
    
    
    379.4
    
    
    
    50.8
    
    
    
    188.3
    
    
    
    50.0
    
    
    
    1,074.7El Sauzal
    
    
    188.6
    
    
    
    66.3
    
    
    
    72.1
    
    
    
    7.8
    
    
    
    227.2Mexican exploration projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    85.6Marlin
    
    
    500.6
    
    
    
    102.1
    
    
    
    268.6
    
    
    
    76.8
    
    
    
    891.9Cerro Blanco (c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28.5
    
    
    
    88.4Alumbrera
    
    
    596.3
    
    
    
    67.0
    
    
    
    220.5
    
    
    
    16.1
    
    
    
    761.4Cerro Negro (d)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1
    
    
    
    5,084.6Marigold
    
    
    111.7
    
    
    
    17.8
    
    
    
    29.0
    
    
    
    19.5
    
    
    
    275.1Wharf
    
    
    91.2
    
    
    
    7.3
    
    
    
    34.6
    
    
    
    5.1
    
    
    
    38.4El Morro (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17.2
    
    
    
    1,172.9Primero (f)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    155.7Tahoe (g)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    409.9Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    312.3
    
    
    
    707.4Other(h)
    
    
    61.0
    
    
    
    12.8
    
    
    
    (168.4
    )
    
    
    21.5
    
    
    
    1,265.9Total
    
    $
    3,799.8
    
    
    $
    623.0
    
    
    $
    1,469.5
    
    
    $
    1,247.8
    
    
    $
    28,809.1
 At December 31,Year ended December 31, 2009
    
    
    2009Red Lake(a)
    
    $
    624.8
    
    
    $
    101.1
    
    
    $
    329.2
    
    
    $
    109.8
    
    
    $
    3,209.4Porcupine
    
    
    310.2
    
    
    
    69.9
    
    
    
    88.7
    
    
    
    37.6
    
    
    
    468.3Musselwhite
    
    
    225.5
    
    
    
    30.4
    
    
    
    52.1
    
    
    
    78.9
    
    
    
    411.9Éléonore
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    66.6
    
    
    
    904.4Peñasquito
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    521.8
    
    
    
    10,517.9Los Filos
    
    
    236.2
    
    
    
    45.7
    
    
    
    72.9
    
    
    
    72.8
    
    
    
    936.2El Sauzal
    
    
    198.7
    
    
    
    88.5
    
    
    
    66.1
    
    
    
    6.3
    
    
    
    268.8Mexican exploration projects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167.3Marlin
    
    
    331.8
    
    
    
    79.5
    
    
    
    136.9
    
    
    
    41.3
    
    
    
    884.8Cerro Blanco
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12.1
    
    
    
    62.2Alumbrera
    
    
    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
    
    
    
    68.4Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    329.4
    
    
    
    587.1Other(h)
    
    
    131.0
    
    
    
    18.6
    
    
    
    (117.8
    )
    
    
    29.8
    
    
    
    1,399.6Total
    
    $
    2,723.6
    
    
    $
    526.2
    
    
    $
    821.2
    
    
    $
    1,349.9
    
    
    $
    20,948.7




---



##### 



Expenditureson miningEarnings
        
        
        interestsDepreciation
        
        
        (loss) from
        
        
        (includingRevenues
        
        
        and depletion
        
        
        operations
        
        
        deposits)(i)Year ended December 31, 2008Red Lake(a)
        
        $
        535.8
        
        
        $
        95.4
        
        
        $
        231.5
        
        
        $
        99.6Porcupine
        
        
        255.6
        
        
        
        63.9
        
        
        
        (34.2
        )
        
        
        46.2Musselwhite
        
        
        184.6
        
        
        
        25.8
        
        
        
        21.2
        
        
        
        31.2Éléonore
        
        
        
        
        
        
        
        
        
        
        (2.3
        )
        
        
        99.0Peñasquito
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        751.9Los Filos
        
        
        189.2
        
        
        
        42.2
        
        
        
        58.3
        
        
        
        49.5El Sauzal
        
        
        239.3
        
        
        
        100.4
        
        
        
        96.1
        
        
        
        8.4Marlin
        
        
        258.1
        
        
        
        61.6
        
        
        
        100.0
        
        
        
        35.3Cerro Blanco
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        10.5Alumbrera
        
        
        490.7
        
        
        
        75.3
        
        
        
        135.3
        
        
        
        22.6Marigold
        
        
        81.4
        
        
        
        10.4
        
        
        
        12.1
        
        
        
        14.6Wharf
        
        
        57.2
        
        
        
        3.6
        
        
        
        19.7
        
        
        
        10.3Pueblo Viejo
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        120.4Other(h)
        
        
        127.7
        
        
        
        20.5
        
        
        
        (125.2
        )
        
        
        60.6Total
        
        $
        2,419.6
        
        
        $
        499.1
        
        
        $
        512.5
        
        
        $
        1,360.1
 
 (a)
    
    Total assets include the assets of Gold Eagle acquired on September 25, 2008 (note
4(c)).(b)
    
    Upon completion of commissioning of Peñasquito on September 1, 2010, depreciation and
depletion of depletable mining properties commenced and proceeds from sales of metals and
costs incurred during production were included in earnings (note 10(d)). Total assets
include the Camino Rojo project acquired on February 4, 2010 (note 5(c)).(c)
    
    Includes the results of Escobal to June 8, 2010, the date of disposition (note 4(b)).(d)
    
    The Company acquired a 100% interest in the Cerro Negro project on December 29, 2010 (notes 5(a) &
10(h)).(e)
    
    The Company acquired a 70% interest in the El Morro project on February 16, 2010. Total
assets at December 31, 2010 include 100% of the El Morro project, which is offset by
non-controlling interest (notes 5(b) & 10(j)).(f)
    
    As partial consideration for the disposition of San Dimas on August 6, 2010, the
Company received a 36% interest in Primero (notes 4(a)
& 10(e)).(g)
    
    As partial consideration for the disposition of Escobal on June 8, 2010, the Company
received a 41.2% interest in Tahoe (notes 4(b) & 10(g)).(h)
    
    Includes corporate activities, the results of San Martin, which commenced reclamation
activities in October 2007, the results of Silver Wheaton which was disposed of on February
14, 2008 (note 4(d)), the results of El Limón which was disposed of on February 24, 2010
(note 4(e)), the results of San Dimas which was disposed of on August 6, 2010 (note 4(a))
and the assets of Terrane which was disposed of on October 20, 2010 and has been presented
as a discontinued operation (note 6). Loss from corporate activities included in earnings
from operations during the year ended December 31, 2010 amounted
to $195.3 million (2009 
$154.3 million; 2008  $157.4 million). Total corporate assets at December 31, 2010 was
$1,266.0 million (2009  $1,000.5 million).(i)
    
    Segmented expenditures on mining interests including deposits are presented on an
accrual basis. Expenditures on mining interests and deposits on mining interests in the
Consolidated Statements of Cash Flows are presented on a cash basis. For the
year ended December 31, 2010, cash expenditures were
$1,228.3 million (2009  $1,348.5
million; 2008  $1,354.5 million) and the increase in accrued expenditures was $19.5 million
(2009  $1.4 million).




---



##### 



27.
    
    CONTINGENCIES
 (a)
    
    In April 2010, Pueblo Viejo Dominicana Corporation (PVDC), the entity that owns the
Pueblo Viejo project, received a copy of an action filed in the Dominican Republic by
Fundacion Amigo de Maimon Inc., Fundacion Miguel L. De Pena Garcia Inc., Miguel De Pena and
a number of individuals. The action alleges a variety of matters couched as violations of
fundamental rights, including taking of private property, violations of mining and
environmental and other laws, slavery, human trafficking and bribery of government
officials. The complaint does not describe the relief sought, but the action is styled as
an amparo remedy, which typically includes some form of injunctive relief. PVDC intends to
vigorously defend the action. PVDC requested the Supreme Court in Santo Domingo to change
the venue and the 9th Criminal Court of Santo Domingo was appointed to decide on the matter
of Fundacion Amigo de Maimon Inc. No other procedure has occurred. As for Miguel De Pena
the Supreme Court annulled the judgment of the trial court of Cotui against PVDC which
ordered PVDC to restore possession of Parcel 451-K to Miguel De Pena. The case has been
sent to a new trial court for issuance of ruling. Miguel De Pena also initiated litigation
against PVDC to collect approximately $2.0 million and the 9th Criminal Court has rejected
the claim.In September, 2010, Alexander Mundaray et al. filed an amparo remedy for Protection of
Fundamental Rights against PVDC and the Ministry of the Environment (Mimarena) of the
Dominican Republic. The petitioners allege that PVDC is constructing the project without an
Environmental License or an Environmental Impact Analysis. The petitioners are requesting
that the court order the suspension of the construction works that PVDC is undertaking. PVDC
is vigorously defending this claim.(b)
    
    On May 24, 2010, the Inter-American Commission on Human Rights (IACHR), an
independent body of the Organization of American States, issued precautionary measures
calling on the Government of Guatemala to suspend mining activity at Marlin. The IACHR
acted in response to a petition alleging that operations at Marlin were causing
environmental and public health concerns. On July 21, 2010, in compliance with the IACHRs
precautionary measures, the Procuraduria General de la Nation (PDN), the Guatemalan
Attorney Generals Office, directed the Ministry of Energy and Mines (the Ministry) to
initiate the applicable administrative process under the laws of Guatemala to determine if
suspension of Marlin operations is warranted as alleged. Montana Exploradora de Guatemala
S.A de C.V. (Montana), a wholly owned subsidiary of Goldcorp and the operator of Marlin,
filed its response with the Ministry on August 31, 2010. The response demonstrated that
there is no basis under Guatemalan law to suspend operations at Marlin and included
extensive documentation in support of that position. The Ministry requested and received
submissions from the individual claiming to represent the petitioners and other
governmental agencies. The Ministry initially indicated that the administrative process
would be completed in approximately 120 days. The process has been extended in order to
afford representatives of the municipalities of San Miguel Ixtahuacán and Sipacapa to
present information directly to the government. Once the Ministry completes its
administrative process, the Ministry will issue a report to the PDN.On October 25, 2010, at the request of the IACHR, the Government of Guatemala and the
petitioners provided a status report to the IACHR. Goldcorps and Montanas petition to be
heard at that audience was not granted by the IACHR. Instead, the IACHR arranged an informal
meeting following the formal audience. During that meeting, Goldcorp and Montana presented
information regarding Marlin and the adverse effect that a suspension of Marlin operations
would have on its employees, suppliers, and the communities. In addition, the companies
advised all parties of their interests and willingness to participate in a process to achieve
an amicable solution to the petition as provided by Article 40 of the IACHRs Rules of
Procedure.The Guatemalan governments responses to the IACHR expressly confirm that studies conducted
by the Ministry, the Ministry of Health and Social Welfare, and the Ministry of Environment
and Natural Resources in Guatemala demonstrate there is no evidence of pollution or ill
effects to public health or the environment as a result of operations at Marlin. The
Government of
Guatemala also stated that an assessment by the Ministry of Health and Social Welfare did not
detect any disease linked to suspected contamination produced by Marlin. Goldcorps
management believes the IACHRs action is based on environmental




---



##### 



allegations that are
entirely without merit. While the governments administrative process is underway, the
Company expects normal operations at Marlin to continue.In December 2010, Vice President Rafael Espada initiated a mesa de diálogo comprised of the
Vice President; the Ministers of Energy and Mines, Environment and Natural Resources, Health
and Social Welfare, Infrastructure, and Education; the President of the Presidential
Commission on Human Rights; the Mayors and other community representatives of San Miguel
Ixtahuacán and Sipacapa; and representatives of Montana. The Office of the Organization of
American States in Guatemala will attend the sessions of the mesa de diálogo as an
observer. The purpose of the mesa de diálogo, as established by the Vice President, is to
ensure that the mining industry develops in a framework of respect for the communities and
the environment in benefit to the country. The mesa de diálogo has met twice and agreed,
among other items, to meet at least monthly, to meet in the communities as well as the
capital, and to adopt a two-tiered agenda to address short-term issues such as the petition
pending before the IACHR as well as longer-term issues related to the development of the
municipalities of San Miguel Ixtahuacán and Sipacapa. Goldcorp and Montana consider the Vice
Presidents initiative and the participation of the two municipalities to be significant
positive steps toward a constructive resolution of the issues raised in the petition pending
before the IACHR as well as other issues of importance to the municipalities.(c)
    
    Due to the size, complexity and nature of the Companys operations, various legal and
tax matters are outstanding from time to time. In the opinion of management, there are no
matters that could have a material effect on the Companys consolidated financial position
or results of operations which require additional disclosure of in these consolidated
financial statements.
 28.
    
    SUBSEQUENT EVENT
 On February 8, 2011, the Company disposed of its 10.1% interest in Osisko Mining Corporation
(Osisko) to a syndicate of underwriters at a price of C$13.75 per common share held, for
estimated gross proceeds of C$530.0 million ($535.0 million). At December 31, 2010, the carrying
amount of the 38.6 million Osisko common shares held by the Company and classified as
available-for-sale and measured at fair value was $563.6 million with cumulative mark-to-market
gains previously recognized in OCI in the amount of $364.9 million.




---



##### 



29.
    
    RECONCILIATION TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES (US GAAP)
 A reconciliation of the Companys Consolidated Statements of Earnings and Comprehensive Income
determined in accordance with Canadian GAAP to that determined in accordance with US GAAP for the
years ended December 31 is as follows:
 Adjustment forequity interest inCanadian
    
    
    incorporated joint
    
    
    Other US GAAP
    
    
    
    
    USYear ended December 31, 2010
    
    GAAP
    
    
    venture (a)
    
    
    adjustments
    
    
    
    
    GAAPRevenues
    
    $
    3,799.8
    
    
    $
    (596.3
    )
    
    $
    261.1
    
    
    (b)(h)
    
    $
    3,464.6Operating expenses
    
    
    (1,478.4
    )
    
    
    308.8
    
    
    
    (379.4
    )
    
    (b)(c)
    
    
    (1,549.0
    )Depreciation and depletion
    
    
    (623.0
    )
    
    
    67.0
    
    
    
    (141.1
    )
    
    (b)(h)
    
    
    (697.1
    )Corporate administration
    
    
    (177.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (177.1
    )Exploration
    
    
    (51.8
    )
    
    
    
    
    
    
    (115.5
    )
    
    (d)
    
    
    (167.3
    )Earnings from operations
    
    
    1,469.5
    
    
    
    (220.5
    )
    
    
    (374.9
    )
    
    
    
    
    874.1Other income (expenses)Interest and other income (expenses)
    
    
    (46.3
    )
    
    
    5.2
    
    
    
    8.8
    
    
    (b)
    
    
    (32.3
    )Interest expense and finance fees
    
    
    (52.3
    )
    
    
    
    
    
    
    35.2
    
    
    (e)(g)
    
    
    (17.1
    )Losses on non-hedge derivatives, net
    
    
    (61.8
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (61.8
    )Gains on securities, net
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.5Gains on dispositions of mining interests
    
    
    780.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    780.5Losses on foreign exchange, net
    
    
    (355.4
    )
    
    
    1.1
    
    
    
    11.0
    
    
    
    
    
    (343.3
    )Mark-to-market gains on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    29.8
    
    
    (f)
    
    
    29.8Earnings from continuing operations before taxes and share of
earnings (losses) of equity investees
    
    
    1,734.7
    
    
    
    (214.2
    )
    
    
    (290.1
    )
    
    
    
    
    1,230.4Income and mining taxes
    
    
    (346.0
    )
    
    
    60.7
    
    
    
    99.9
    
    
    (b)(c)(d)(e)(g)
    
    
    (185.4
    )Share of earnings (losses) of equity investees
    
    
    (8.1
    )
    
    
    153.5
    
    
    
    (5.1
    )
    
    (c)
    
    
    140.3Earnings from continuing operations
    
    
    1,380.6
    
    
    
    
    
    
    
    (195.3
    )
    
    
    
    
    1,185.3Earnings from discontinued operation, net of tax
    
    
    185.5
    
    
    
    
    
    
    
    21.7
    
    
    (d)
    
    
    207.2Net earnings
    
    $
    1,566.1
    
    
    $
    
    
    
    $
    (173.6
    )
    
    
    
    $
    1,392.5Other comprehensive income (losses), net of taxUnrealized gains on available-for-sale securities
    
    
    321.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    321.0Reclassification adjustment for losses included in net earnings
    
    
    2.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.1Change in funded status of defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    (1.3
    )
    
    
    
    
    (1.3
    )Comprehensive income
    
    $
    1,889.2
    
    
    $
    
    
    
    $
    (174.9
    )
    
    
    
    $
    1,714.3Net earnings (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    1,574.3
    
    
    $
    
    
    
    $
    (173.6
    )
    
    
    
    $
    1,400.7Non-controlling interests
    
    
    (8.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (8.2
    )$
    1,566.1
    
    
    $
    
    
    
    $
    (173.6
    )
    
    
    
    $
    1,392.5Comprehensive income (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    1,897.4
    
    
    $
    
    
    
    $
    (174.9
    )
    
    
    
    $
    1,722.5Non-controlling interests
    
    
    (8.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (8.2
    )$
    1,889.2
    
    
    $
    
    
    
    $
    (174.9
    )
    
    
    
    $
    1,714.3Net earnings per shareBasic
    
    $
    2.14
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1.90Diluted
    
    
    2.13
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.90




---



##### 



Adjustment forequity interest inCanadian
    
    
    incorporated joint
    
    
    Other US GAAP
    
    
    
    
    USYear ended December 31, 2009
    
    GAAP
    
    
    venture (a)
    
    
    adjustments
    
    
    
    
    GAAPRevenues
    
    $
    2,723.6
    
    
    $
    (495.5
    )
    
    $
    150.7
    
    
    (b)(h)
    
    $
    2,378.8Operating expenses
    
    
    (1,187.3
    )
    
    
    266.5
    
    
    
    (212.0
    )
    
    (b)(c)
    
    
    (1,132.8
    )Depreciation and depletion
    
    
    (526.2
    )
    
    
    70.1
    
    
    
    (156.6
    )
    
    (b)(h)
    
    
    (612.7
    )Corporate administration
    
    
    (133.1
    )
    
    
    
    
    
    
    (0.6
    )
    
    (k(ii))
    
    
    (133.7
    )Exploration
    
    
    (31.8
    )
    
    
    
    
    
    
    (45.0
    )
    
    (d)
    
    
    (76.8
    )Write-down of mining interests
    
    
    (24.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (24.0
    )Earnings from operations
    
    
    821.2
    
    
    
    (158.9
    )
    
    
    (263.5
    )
    
    
    
    
    398.8Other income (expenses)Interest and other income (expenses)
    
    
    (19.2
    )
    
    
    15.6
    
    
    
    (0.2
    )
    
    
    
    
    (3.8
    )Interest expense and finance fees
    
    
    (59.0
    )
    
    
    
    
    
    
    16.6
    
    
    (e)
    
    
    (42.4
    )Gains on non-hedge derivatives, net
    
    
    3.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.6Gains on securities, net
    
    
    50.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    50.2Gain on disposition of mining interests
    
    
    20.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.1Losses on foreign exchange, net
    
    
    (363.7
    )
    
    
    (8.9
    )
    
    
    10.2
    
    
    
    
    
    (362.4
    )Mark-to-market gains on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    21.7
    
    
    (f)
    
    
    21.7Earnings from continuing operations before taxes and share of
earnings of equity investee
    
    
    453.2
    
    
    
    (152.2
    )
    
    
    (215.2
    )
    
    
    
    
    85.8Income and mining taxes
    
    
    (209.1
    )
    
    
    48.6
    
    
    
    78.0
    
    
    (b)(c)(d)(e)(l(i))
    
    
    (82.5
    )Share of earnings of equity investee
    
    
    
    
    
    
    103.6
    
    
    
    (3.2
    )
    
    (c)
    
    
    100.4Earnings from continuing operations
    
    
    244.1
    
    
    
    
    
    
    
    (140.4
    )
    
    
    
    
    103.7Loss from discontinued operation, net of tax
    
    
    (5.9
    )
    
    
    
    
    
    
    1.6
    
    
    (d)
    
    
    (4.3
    )Net earnings
    
    $
    238.2
    
    
    $
    
    
    
    $
    (138.8
    )
    
    
    
    $
    99.4Other comprehensive income (losses), net of taxUnrealized gains on available-for-sale securities
    
    
    184.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    184.9Reclassification adjustment for gains included in net earnings
    
    
    (43.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (43.0
    )Change in funded status of defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    1.3
    
    
    
    
    
    1.3Comprehensive income
    
    $
    380.1
    
    
    $
    
    
    
    $
    (137.5
    )
    
    
    
    $
    242.6Net earnings (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    240.2
    
    
    $
    
    
    
    $
    (138.8
    )
    
    
    
    $
    101.4Non-controlling interests
    
    
    (2.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (2.0
    )$
    238.2
    
    
    $
    
    
    
    $
    (138.8
    )
    
    
    
    $
    99.4Comprehensive income (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    382.1
    
    
    $
    
    
    
    $
    (137.5
    )
    
    
    
    $
    244.6Non-controlling interests
    
    
    (2.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (2.0
    )$
    380.1
    
    
    $
    
    
    
    $
    (137.5
    )
    
    
    
    $
    242.6Net earnings per shareBasic
    
    $
    0.33
    
    
    
    
    
    
    
    
    
    
    
    
    $
    0.14Diluted
    
    
    0.33
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.14




---



##### 



Adjustment forequity interest inCanadian
    
    
    incorporated joint
    
    
    Other US GAAP
    
    
    
    
    USYear ended December 31, 2008
    
    GAAP
    
    
    venture (a)
    
    
    adjustments
    
    
    
    
    GAAPRevenues
    
    $
    2,419.6
    
    
    $
    (490.7
    )
    
    $
    41.8
    
    
    (b)(h)
    
    $
    1,970.7Operating expenses
    
    
    (1,164.2
    )
    
    
    280.1
    
    
    
    (84.9
    )
    
    (b)(c)
    
    
    (969.0
    )Depreciation and depletion
    
    
    (499.1
    )
    
    
    75.3
    
    
    
    (36.5
    )
    
    (b)(h)
    
    
    (460.3
    )Corporate administration
    
    
    (131.0
    )
    
    
    
    
    
    
    (12.7
    )
    
    (k(ii))
    
    
    (143.7
    )Exploration
    
    
    (65.7
    )
    
    
    
    
    
    
    (93.1
    )
    
    (d)
    
    
    (158.8
    )Write-down of mining interests
    
    
    (47.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (47.1
    )Earnings from operations
    
    
    512.5
    
    
    
    (135.3
    )
    
    
    (185.4
    )
    
    
    
    
    191.8Other income (expenses)Interest and other income
    
    
    28.2
    
    
    
    4.4
    
    
    
    
    
    
    
    
    
    32.6Interest expense and finance fees
    
    
    (7.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (7.2
    )Losses on non-hedge derivatives, net
    
    
    (2.6
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (2.6
    )Losses 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
    
    
    (h)
    
    
    394.3Dilution gains, net
    
    
    1.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.7Gains on foreign exchange, net
    
    
    1,059.3
    
    
    
    (11.9
    )
    
    
    (7.3
    )
    
    
    
    
    1,040.1Mark-to-market losses on C$ share purchase warrants
    
    
    
    
    
    
    
    
    
    
    (75.2
    )
    
    (f)
    
    
    (75.2
    )Earnings from continuing operations before taxes and share
of earnings of equity investees
    
    
    1,781.1
    
    
    
    (142.8
    )
    
    
    (165.2
    )
    
    
    
    
    1,473.1Income and mining taxes
    
    
    (303.9
    )
    
    
    40.6
    
    
    
    50.3
    
    
    (b)(c)(d)
    
    
    (213.0
    )Share of earnings of equity investees
    
    
    3.9
    
    
    
    102.2
    
    
    
    (103.3
    )
    
    (c)(d)
    
    
    2.8Earnings from continuing operations
    
    
    1,481.1
    
    
    
    
    
    
    
    (218.2
    )
    
    
    
    
    1,262.9Earnings (loss) from discontinued operation, net of tax
    
    
    2.2
    
    
    
    
    
    
    
    (14.0
    )
    
    (d)
    
    
    (11.8
    )Net earnings
    
    $
    1,483.3
    
    
    $
    
    
    
    $
    (232.2
    )
    
    
    
    $
    1,251.1Other comprehensive income (losses), net of taxUnrealized losses on available-for-sale securities
    
    
    (124.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    (124.0
    )Reclassification adjustment for losses included in net
earnings
    
    
    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
    )Change in funded status of defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    3.0
    
    
    
    
    
    3.0Comprehensive income
    
    $
    1,423.4
    
    
    $
    
    
    
    $
    (229.2
    )
    
    
    
    $
    1,194.2Net earnings (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    1,475.6
    
    
    $
    
    
    
    $
    (193.2
    )
    
    
    
    $
    1,282.4Non-controlling interests
    
    
    7.7
    
    
    
    
    
    
    
    (39.0
    )
    
    
    
    
    (31.3
    )$
    1,483.3
    
    
    $
    
    
    
    $
    (232.2
    )
    
    
    
    $
    1,251.1Comprehensive income (losses) attributable to:Shareholders of Goldcorp Inc.
    
    $
    1,414.4
    
    
    $
    
    
    
    $
    (190.2
    )
    
    
    
    $
    1,224.2Non-controlling interests
    
    
    9.0
    
    
    
    
    
    
    
    (39.0
    )
    
    
    
    
    (30.0
    )$
    1,423.4
    
    
    $
    
    
    
    $
    (229.2
    )
    
    
    
    $
    1,194.2Net earnings per shareBasic
    
    $
    2.07
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1.80Diluted
    
    
    2.06
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.79




---



##### 



Adjustment forequity interestCanadian
    
    
    in incorporated
    
    
    Other
    
    
    
    
    USAt December 31, 2010
    
    GAAP
    
    
    joint venture (a)
    
    
    adjustments
    
    
    
    
    GAAPCurrent assets
    
    $
    1,621.8
    
    
    $
    (240.1
    )
    
    $
    (0.1
    )
    
    (b)(c)
    
    $
    1,381.6Mining interests
    
    
    25,316.3
    
    
    
    (459.6
    )
    
    
    (235.1
    )
    
    (b)(c)(d)(g)(h)
    
    
    24,621.6Goodwill
    
    
    761.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    761.8Equity interest in incorporated joint venture
    
    
    
    
    
    
    458.9
    
    
    
    (39.7
    )
    
    (c)
    
    
    419.2Other non-current assets
    
    
    1,109.2
    
    
    
    (61.7
    )
    
    
    21.9
    
    
    (e)(q(ii))
    
    
    1,069.4$
    28,809.1
    
    
    $
    (302.5
    )
    
    $
    (253.0
    )
    
    
    
    $
    28,253.6Current liabilities
    
    $
    1,034.0
    
    
    $
    (170.9
    )
    
    $
    
    
    
    
    
    $
    863.1Future income and mining taxes
    
    
    6,082.0
    
    
    
    (110.5
    )
    
    
    (248.6
    )
    
    (b)(c)(d)(e)(f)(g)
    
    
    5,722.9Non-current derivative liabilities
    
    
    95.4
    
    
    
    
    
    
    
    42.1
    
    
    (f)
    
    
    137.5Long-term debt
    
    
    747.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    747.1Other non-current liabilities
    
    
    443.2
    
    
    
    (21.1
    )
    
    
    873.7
    
    
    (h)
    
    
    1,295.88,401.7
    
    
    
    (302.5
    )
    
    
    667.2
    
    
    
    
    
    8,766.4EquityShareholders equity
    
    
    20,194.2
    
    
    
    
    
    
    
    (920.2
    )
    
    
    
    
    19,274.0Non-controlling interests
    
    
    213.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    213.220,407.4
    
    
    
    
    
    
    
    (920.2
    )
    
    
    
    
    19,487.2$
    28,809.1
    
    
    $
    (302.5
    )
    
    $
    (253.0
    )
    
    
    
    $
    28,253.6Adjustment forequity interestCanadian
    
    
    in incorporated
    
    
    Other
    
    
    
    
    USAt December 31, 2009
    
    GAAP
    
    
    joint venture (a)
    
    
    adjustments
    
    
    
    
    GAAPCurrent assets
    
    $
    1,601.5
    
    
    $
    (204.5
    )
    
    $
    40.4
    
    
    (b)(c)
    
    $
    1,437.4Mining interests
    
    
    18,001.3
    
    
    
    (511.8
    )
    
    
    558.9
    
    
    (b)(c)(d)(h)
    
    
    18,048.4Goodwill
    
    
    761.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    761.8Equity interest in incorporated joint venture
    
    
    
    
    
    
    485.4
    
    
    
    (34.6
    )
    
    (c)
    
    
    450.8Other non-current assets
    
    
    584.1
    
    
    
    (64.3
    )
    
    
    25.3
    
    
    (e)(l(i))
    
    
    545.1$
    20,948.7
    
    
    $
    (295.2
    )
    
    $
    590.0
    
    
    
    
    $
    21,243.5Current liabilities
    
    $
    735.0
    
    
    $
    (166.0
    )
    
    $
    
    
    
    
    
    $
    569.0Long-term debt
    
    
    719.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    719.0Future income and mining taxes
    
    
    3,575.2
    
    
    
    (106.7
    )
    
    
    (145.2
    )
    
    (b)(c)(d)(e)(f)(i)
    
    
    3,323.3Non-current derivative liabilities
    
    
    
    
    
    
    
    
    
    
    88.7
    
    
    (f)(k(ii))
    
    
    88.7Other non-current liabilities
    
    
    375.2
    
    
    
    (22.5
    )
    
    
    1,408.4
    
    
    (h)
    
    
    1,761.15,404.4
    
    
    
    (295.2
    )
    
    
    1,351.9
    
    
    
    
    
    6,461.1EquityShareholders equity
    
    
    15,493.2
    
    
    
    
    
    
    
    (761.9
    )
    
    
    
    
    14,731.3Non-controlling interests
    
    
    51.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.115,544.3
    
    
    
    
    
    
    
    (761.9
    )
    
    
    
    
    14,782.4$
    20,948.7
    
    
    $
    (295.2
    )
    
    $
    590.0
    
    
    
    
    $
    21,243.5




---



##### 



2010
    
    
    2009
    
    
    2008Shareholders equityIn accordance with Canadian GAAP
    
    $
    20,194.2
    
    
    $
    15,493.2
    
    
    $
    14,959.1US GAAP adjustments detailed below
    
    
    (920.2
    )
    
    
    (761.9
    )
    
    
    (638.2
    )In accordance with US GAAP
    
    $
    19,274.0
    
    
    $
    14,731.3
    
    
    $
    14,320.9Common shares, share purchase warrants, stock options, restricted share units and equity
component of convertible senior notesIn accordance with Canadian GAAP
    
    $
    15,853.0
    
    
    $
    12,908.9
    
    
    $
    12,625.2Reclassification and measurement of C$ share purchase warrants at fair value(f)
    
    
    711.6
    
    
    
    711.6
    
    
    
    711.6Renunciation of tax deductions on flow-through shares
    
    
    1.3
    
    
    
    1.3
    
    
    
    1.3Changes to contributed surplus
    
    
    14.3
    
    
    
    14.3
    
    
    
    14.3Revaluation of stock based compensation (k(ii))
    
    
    
    
    
    
    29.4
    
    
    
    14.0In accordance with US GAAP
    
    $
    16,580.2
    
    
    $
    13,665.5
    
    
    $
    13,366.4Retained earningsIn accordance with Canadian GAAP
    
    $
    3,779.3
    
    
    $
    2,345.5
    
    
    $
    2,237.0Peñasquito revenues and expenses recognized in earnings (b)
    
    
    (391.4
    )
    
    
    (212.6
    )
    
    
    (56.3
    )Expensing of deferred stripping costs (c)
    
    
    (41.6
    )
    
    
    (36.3
    )
    
    
    (32.5
    )Expensing of exploration and development costs (d)
    
    
    (335.8
    )
    
    
    (274.6
    )
    
    
    (242.8
    )Reversal of convertible senior debt transaction costs expensed (e)
    
    
    9.5
    
    
    
    11.9
    
    
    
    Mark-to-market loss on C$ share purchase warrants (f)
    
    
    (1,028.7
    )
    
    
    (1,058.5
    )
    
    
    (1,080.2
    )Capitalization of interest costs relating to qualifying capital expenditures (g)
    
    
    33.4
    
    
    
    
    
    
    
    Adjustment relating to disposition of Silver Wheaton shares (h)
    
    
    101.8
    
    
    
    101.8
    
    
    
    101.8Revaluation of stock based compensation (k(ii))
    
    
    
    
    
    
    (46.2
    )
    
    
    (45.6
    )Realization of previously unrecognized future income tax assets relating to prior business
combinations (l(i))
    
    
    8.7
    
    
    
    8.7
    
    
    
    Issuance and renunciation of tax deductions on flow-through shares
    
    
    (1.3
    )
    
    
    (1.3
    )
    
    
    (2.4
    )Changes to contributed surplus
    
    
    (14.3
    )
    
    
    (14.3
    )
    
    
    (14.3
    )Reversal of realization of cumulative translation adjustment
    
    
    (3.4
    )
    
    
    (3.4
    )
    
    
    (3.4
    )Foreign exchange impact of US GAAP adjustments
    
    
    13.1
    
    
    
    2.4
    
    
    
    (8.9
    )In accordance with US GAAP
    
    $
    2,129.3
    
    
    $
    823.1
    
    
    $
    852.4Accumulated other comprehensive incomeIn accordance with Canadian GAAP
    
    $
    561.9
    
    
    $
    238.8
    
    
    $
    96.9Change in funded status of defined benefit pension plans
    
    
    (0.8
    )
    
    
    0.5
    
    
    
    1.8Reversal of realization of cumulative translation adjustment
    
    
    3.4
    
    
    
    3.4
    
    
    
    3.4In accordance with US GAAP
    
    $
    564.5
    
    
    $
    242.7
    
    
    $
    102.1Non-controlling interestsIn accordance with Canadian GAAP and US GAAP
    
    $
    213.2
    
    
    $
    51.1
    
    
    $
    51.2




---



##### 



2010
    
    
    2009
    
    
    2008Operating Activities:Cash provided by continuing operationsIn accordance with Canadian GAAP
    
    $
    1,787.3
    
    
    $
    1,275.1
    
    
    $
    871.1Adjustment for equity interest in incorporated joint venture (a)
    
    
    (22.0
    )
    
    
    (28.1
    )
    
    
    (16.6
    )Peñasquito revenues and expenses recognized in earnings (b)
    
    
    (427.8
    )
    
    
    (207.3
    )
    
    
    (64.1
    )Deferred stripping costs expensed (c)
    
    
    (5.3
    )
    
    
    (0.6
    )
    
    
    (1.1
    )Exploration and development costs expensed (d)
    
    
    (115.5
    )
    
    
    (45.0
    )
    
    
    (221.5
    )Interest costs capitalized (g)
    
    
    38.6
    
    
    
    
    
    
    
    Income taxes paid on disposition of San Dimas Assets
    
    
    (57.9
    )
    
    
    
    
    
    
    Income taxes paid on disposition of Silver Wheaton shares
    
    
    (148.7
    )
    
    
    
    
    
    
    In accordance with US GAAP
    
    
    1,048.7
    
    
    
    994.1
    
    
    
    567.8Cash used in discontinued operationIn accordance with Canadian GAAP
    
    
    (15.3
    )
    
    
    (4.9
    )
    
    
    (5.1
    )Exploration and development costs expensed (d)
    
    
    1.1
    
    
    
    0.3
    
    
    
    (12.1
    )In accordance with US GAAP
    
    
    (14.2
    )
    
    
    (4.6
    )
    
    
    (17.2
    )Investing activities:Cash used in continuing operationsIn accordance with Canadian GAAP
    
    
    (2,248.8
    )
    
    
    (1,450.8
    )
    
    
    (424.2
    )Adjustment for equity interest in incorporated joint venture (a)
    
    
    13.7
    
    
    
    15.8
    
    
    
    29.6Peñasquito revenues and expenses recognized in earnings (b)
    
    
    427.8
    
    
    
    207.3
    
    
    
    64.1Deferred stripping costs expensed (c)
    
    
    5.3
    
    
    
    0.6
    
    
    
    1.1Exploration and development costs expensed (d)
    
    
    115.5
    
    
    
    45.0
    
    
    
    221.5Interest costs capitalized (g)
    
    
    (38.6
    )
    
    
    
    
    
    
    Income taxes paid on disposition of San Dimas Assets
    
    
    57.9
    
    
    
    
    
    
    
    Income taxes paid on disposition of Silver Wheaton shares
    
    
    148.7
    
    
    
    
    
    
    
    In accordance with US GAAP
    
    
    (1,518.5
    )
    
    
    (1,182.1
    )
    
    
    (107.9
    )Cash provided by (used in) discontinued operationIn accordance with Canadian GAAP
    
    
    170.0
    
    
    
    (7.9
    )
    
    
    (17.5
    )Exploration and development costs expensed (d)
    
    
    (1.1
    )
    
    
    (0.3
    )
    
    
    12.1In accordance with US GAAP
    
    
    168.9
    
    
    
    (8.2
    )
    
    
    (5.4
    )Financing activities:Cash provided by (used in) continuing operationsIn accordance with Canadian GAAP and US GAAP
    
    
    (58.6
    )
    
    
    788.1
    
    
    
    (669.0
    )Cash provided by discontinued operationIn accordance with Canadian GAAP and US GAAP
    
    
    49.5
    
    
    
    11.1
    
    
    
    9.1Effect of exchange rate changes on cash and cash equivalents
    
    
    (2.5
    )
    
    
    1.6
    
    
    
    (12.9
    )Increase (decrease) in cash and cash equivalents in accordance with US GAAP
    
    
    (326.7
    )
    
    
    600.0
    
    
    
    (235.5
    )Cash and cash equivalents, beginning of year in accordance with US GAAP
    
    
    830.5
    
    
    
    230.5
    
    
    
    466.0Cash and cash equivalents, end of year in accordance with US GAAP
    
    $
    503.8
    
    
    $
    830.5
    
    
    $
    230.5




---



##### 



Significant differences between Canadian GAAP and US GAAP that impact the Companys
consolidated financial statements are as follows:
 (a)
    
    Equity interest in incorporated joint ventureIn accordance with Canadian GAAP, the Company proportionately consolidates its interest in
Alumbrera, an incorporated joint venture. In accordance with US GAAP, the Company is required to
account for its interest using the equity method and present its proportionate share of net
earnings of Alumbrera separately. For the year ended December 31, 2010, the net effect of
accounting for Alumbrera using the equity method was to increase Goldcorps share of earnings of
equity investees by $153.5 million (2009 
$103.6 million; 2008  $102.2 million) with no impact
to net earnings.(b)
    
    Peñasquito revenues and expenses recognized in earningsIn accordance with Canadian GAAP, revenues and expenses relating to the Companys mining
operations are recognized in the statement of earnings when operating levels intended by
management are achieved. The Company uses specific criteria to determine the point at which
operating levels intended by management are achieved (note2(i)). In accordance with US GAAP,
revenues and expenses relating to the Companys mining operations are recognized in the
statement of earnings when saleable minerals are extracted (produced) from an ore body,
regardless of the level of production, except for 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. For the three years ended December 31, 2010, this
Canadian GAAP/US GAAP difference impacted the Peñasquito mine. Initial production commenced on
February 1, 2008. However, the mine did not reach operating levels intended by management until
September 1, 2010. For the year ended December 31, 2010, the net effect of recognizing revenues
and expenses in accordance with US GAAP was to increase revenues, operating expenses and
depreciation and depletion by $245.0 million, $379.0 million and $125.0 million, respectively
(2009  $122.4 million, $211.2 million and
$128.3 million, respectively; 2008  $27.2 million,
$83.4 million and $21.9 million, respectively), increase other income by $8.6 million, decrease
future income tax expense by $71.6 million (2009 
$60.8 million; 2008  $21.8 million) and
decrease net earnings by $178.8 million (2009 
$156.3 million; 2008  $56.3 million). The
impact to the Consolidated Balance Sheet in accordance with US GAAP at December 31, 2010 was to
increase inventories by $1.7 million (2009  $37.8 million), decrease mining interests by $547.2
million (2009  $333.0 million), decrease future income and mining taxes by $154.1 million (2009
  $82.6 million) and decrease opening retained earnings by
$212.6 million (2009  $56.3
million).(c)
    
    Deferred stripping costsIn accordance with Canadian GAAP, the Company capitalizes stripping costs incurred during the
production phase of a mine when such costs are considered by management to provide future
economic benefit through access to sources of reserves that will be produced in future periods.
In accordance with US GAAP, stripping costs incurred during the production phase of a mine are
included in operating expenses in the period that metals are produced and sold. For the years
ended December 31, 2010 and 2009, this Canadian GAAP/US GAAP difference impacted the Peñasquito,
Alumbrera, Los Filos and Wharf mines (2008  Peñasquito, Alumbrera and Los Filos mines). For the
year ended December 31, 2010, the net effect of expensing stripping costs in accordance with US
GAAP, excluding the net effect relating to the Peñasquito mine which is reflected in the US GAAP
adjustments under note 29(b), was to decrease net earnings by
$5.3 million (2009  $3.8 million;
2008  $8.1 million), net of future income tax recovery of
$0.2 million (2009  $0.2 million;
2008  $0.4 million). Of the $5.3 million decrease to net earnings during the year ended
December 31, 2010, $5.1 million related to Alumbrera, which was recorded in share of earnings of
equity investees (2009 and 2008  $3.2 million and $7.0 million, respectively).




---



##### 



(d)
    
    Exploration and development expendituresIn accordance with Canadian GAAP, exploration and development expenditures are expensed as
incurred to the date of establishing that costs incurred are economically recoverable.
Exploration and development expenditures incurred subsequent to the establishment of economic
recoverability are capitalized and included in the carrying amount of the related mining
property. In accordance with US GAAP, exploration and development costs incurred until the
completion of a final feasibility study for the related mining property are expensed in the
period they are incurred. For the year ended December 31, 2010, the net effect of this Canadian
GAAP/US GAAP difference was to expense $114.4 million of exploration and development
expenditures (2009  $44.7 million; 2008  $105.2 million) which resulted in an $83.2 million
decrease to net earnings from continuing operations, net of tax of
$32.3 million, and $0.8 million increase to earnings from
discontinued operation, net of tax of $0.3 million (2009  $32.0
million decrease to net earnings from continuing operations, net of tax of $13.0 million, and
$0.2 million increase to earnings from discontinued operation, net of tax of $0.1 million; 2008
  $65.0 million decrease to net earnings from continuing operations, net of tax of $28.1
million, and $12.4 million decrease to earnings from discontinued operation including future
income tax expense of $0.3 million) principally arising from mining expenditures incurred
relating to the Cochenour, Éléonore, Hollinger (included in Porcupine), Red Dot (included in
Marigold), Camino Rojo, Cerro Blanco and certain Terrane development
projects (2009  Cochenour,
Éléonore, Hollinger, Red Dot, Cerro Blanco and certain Terrane development projects; 2008 -
Éléonore, Hollinger, Cerro Blanco and certain Terrane development projects). In addition to the
above adjustments for the year ended December 31, 2008, the Company recorded an adjustment to
decrease its share of earnings of equity investees in the amount of $96.3 million, net of tax of
$32.1 million, to reflect the expensing of exploration and development expenditures related to
the Pueblo Viejo development project which is accounted for using the equity method. Pueblo
Viejo completed its final feasibility study on January 1, 2009.On October 20, 2010, the Company disposed of its 58.1% interest in Terrane and recognized a gain
of $259.1 million ($205.3 million after tax) for Canadian GAAP purposes (note 6). For US GAAP
purposes, as a result of the above Canadian GAAP/US GAAP difference, the carrying amount of
mining interests of Terrane on the date of disposition was $29.0 million less than that
determined for Canadian GAAP purposes. Accordingly, the Company has recorded an additional gain
on disposition of Terrane in the amount of $29.0 million ($21.2 million after tax), included in
earnings from discontinued operation.The Company incurred $58.0 million of drilling and related costs during the year ended December
31, 2010 (2009  $61.2 million; 2008  $63.5 million) to convert mineral resources to reserves
or to provide greater definition of existing reserves at its production or development
properties that were capitalized and included in the carrying amounts of mining interests on the
Companys Consolidated Balance Sheet. 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.(e)
    
    Convertible senior notesFor Canadian GAAP purposes, the Company has elected an accounting policy, as permitted by
Canadian GAAP, 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(n)). Accordingly, the Company expensed the transaction costs allocated
to the debt component of the convertible senior notes issued on June 5, 2009 (note15(b)). In
accordance with 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 in accordance with US GAAP was to increase interest expense by $3.4 million and decrease
future income tax expense by $1.0 million for the year
ended December 31, 2010 (2009  decrease finance fees by $16.6 million and increase future
income tax expense by $4.7 million), and increase other non-current assets by $13.2 million,
increase future income tax liability by $3.7 million and increase opening




---



##### 



retained earnings by
$11.9 million (2009  increase other non-current assets and future
income tax liability by $16.6 million and $4.7 million, respectively).(f)
    
    Share purchase warrantsIn accordance with Canadian GAAP, the Companys share purchase warrants issued are classified
and presented as equity in the Companys consolidated financial statements. US GAAP requires
share purchase warrants with an exercise price denominated in a currency other than the
Companys functional currency to 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, 2010, the net effect of accounting for the Companys share purchase warrants which
have exercise prices denominated in Canadian dollars as derivative liabilities and recognizing
the mark-to-market gains and losses on these share purchase warrants in accordance with US GAAP
was to increase net earnings by $29.8 million (2009 
$21.7 million mark-to-market gain; 2008  $75.2 million mark-to-market loss).Non-current derivative liabilities relating to share purchase warrants with Canadian dollar
exercise prices at December 31, 2010 was $42.1 million
(2009  $71.9 million).(g)
    
    Capitalization of interest costsFor Canadian GAAP purposes, the Company capitalizes borrowing costs incurred that are directly
attributable to acquiring and developing mining properties and constructing new plant and
equipment until mining properties and plant and equipment are ready for their intended use.
Management has defined borrowing costs that are directly attributable to be those interest costs
relating to specific borrowings incurred to fund specific qualifying assets.For US GAAP purposes, in addition to the interest costs incurred on specific borrowings, the
Company capitalizes interest costs incurred on general borrowings to qualifying assets using an
average capitalization rate calculated as total interest costs incurred divided by average
outstanding borrowings. For the year ended December 31, 2010, the net effect of capitalizing
interest costs incurred on general borrowings in accordance with US GAAP was to decrease
interest expense by $38.6 million, increase future income tax
expense by $5.2 million, increase
mining interests by $38.6 million and increase future income tax
liabilities by $5.2 million.
Additional interest costs incurred eligible for capitalization under US GAAP for 2009 and 2008
were not material.(h)
    
    Disposition of Silver Wheaton sharesOn February 14, 2008, the Company disposed of its remaining 48% interest in Silver Wheaton (note
4(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 resulted in an increase of $275.0 million to the excess of
proceeds received over net book value of net assets derecognized. This amount was recognized as
an additional $101.8 million gain on disposition for the year ended December 31, 2008 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 previously paid to Goldcorp by Silver Wheaton
for the San Dimas and Peñasquito silver arrangements were applied as a reduction to the carrying
amounts of mining properties and plant and equipment for San Dimas, Los Filos and Peñasquito on
February 14, 2008. For US GAAP purposes, these amounts were reclassified and presented
separately as deferred credit balances (classified as non-current liabilities). The carrying
amounts of the deferred credit balances are amortized to revenues as sales of silver are made to
Silver Wheaton under the terms of the associated silver arrangements, using the unit of
production method. The unamortized amount of the deferred credit balance relating to San Dimas
was derecognized on August 6, 2010 upon disposition (note4(a)).




---



##### 



(i)
    
    Pro-forma information on business combinations (unaudited)US GAAP requires disclosure of certain pro-forma information when a material business
combination occurs. Had the acquisitions of the Cerro Negro (note5(a)), El Morro (note5(b))
and Camino Rojo (note5(c))projects occurred on January 1, 2009, there would be no impact to
the Companys revenues for the years ended December 31, 2010 and 2009 as these projects are in
the development phase. The following table presents the impact to net earnings of the Company
for the years ended December 31, 2010 and 2009, had the acquisitions of the Cerro Negro, El
Morro and Camino Rojo projects occurred on January 1, 2009:
 2010
    
    
    2009Goldcorps US GAAP net earnings  as reported
    
    $
    1,392.5
    
    
    $
    99.4Pro-forma adjustments:Reversal of acquisition transaction costs incurred by Goldcorp
    
    
    29.6
    
    
    
    Operating expenses incurred by projects during the period, net of tax
    
    
    (18.2
    )
    
    
    (22.3
    )Foreign exchange gains on translation of deferred income taxes arising
from the acquisitions
    
    
    89.3
    
    
    
    138.9Goldcorps US GAAP net earnings  pro-forma
    
    $
    1,493.2
    
    
    $
    216.0
 The Companys pro-forma net earnings give effect to certain adjustments including the expensing
of exploration and development costs which had been capitalized by Andean and Canplats, the
reporting entities for the Cerro Negro and Camino Rojo projects, respectively, prior to the
Companys acquisition of the projects. No pro-forma adjustments relating to operating expenses
incurred by the El Morro project are required as these expenses would be capitalized for US GAAP
purposes as a final feasibility was completed in 2008. The above pro-forma information may not
necessarily be indicative of the future results of operations of the Company.(j)
    
    Accounting for uncertainty in income taxesA reconciliation of the beginning and ending amount of the Companys unrecognized tax benefits,
representing benefits of tax positions taken that do not meet the minimum threshold for
recognition under the Financial Accounting Standards Board (FASB)s Accounting Standards
Codification (ASC) 740  Income Taxes, is as follows:
 2010
    
    
    2009
    
    
    2008At January 1
    
    $
    153.7
    
    
    $
    98.9
    
    
    $
    105.7Additions based on tax positions taken during the current year
    
    
    7.9
    
    
    
    36.6
    
    
    
    5.9Additions for tax positions taken during prior years
    
    
    5.9
    
    
    
    32.7
    
    
    
    2.4Reductions for tax positions taken during prior years
    
    
    (2.7
    )
    
    
    (10.7
    )
    
    
    (15.1
    )Decreases relating to settlements with the tax authorities
    
    
    (16.2
    )
    
    
    (3.8
    )
    
    
    At December 31
    
    $
    148.6
    
    
    $
    153.7
    
    
    $
    98.9
 At December 31, 2010, the Company had $148.6 million of unrecognized tax benefits. If
recognized, this amount would be recorded as an income tax recovery on the Consolidated
Statement of Earnings and would impact the reported effective tax rate. The Company does not
expect the amount of unrecognized tax benefits to change significantly within the next twelve
months.The Company recognizes interest and penalties related to unrecognized tax benefits in income tax
expense. During the year ended December 31, 2010, the Company recognized $4.8 million of
interest and penalties (2009  $5.5 million; 2008  $3.9 million). The Company had $22.6 million
of interest and penalties accrued at December 31, 2010 (2009
 $17.8 million).




---



##### 



The Company is subject to income taxes in Canada, the United States, Mexico, Argentina and
various other foreign countries. The tax years of major tax jurisdictions which remain subject
to examination as of December 31, 2010 are as follows:
 Canada
    
    
    2004 to 2010United States
    
    
    2002 to 2010Mexico
    
    
    2005 to 2010Argentina
    
    
    2004 to 2010
 (k)
    
    Significant US GAAP accounting pronouncements implemented in 2010
 (i)
Fair value measurements and disclosures
 In January 2010, the FASB issued Accounting Standard Update (ASU) 2010-06 (ASU 2010-06)
which introduced new requirements and clarified existing requirements for the disclosure of fair
value measurements and related information, similar to existing guidance under Canadian GAAP
which the Company adopted in 2008. The adoption of ASU 2010-06 had no impact to the disclosures
in the Companys consolidated financial statements.
 (ii) Share based payments
 In April 2010, the FASB issued ASU 2010-13 which clarified that an entitys employee share based
payment award with an exercise price denominated in the currency of a market in which a
substantial portion of the entitys equity securities trade would be classified as equity. The
amendments in ASU 2010-03 are effective for interim and annual periods beginning on or after
December 15, 2010 and should be applied by recording a cumulative-effect adjustment to opening
retained earnings in the period of adoption. Earlier adoption is permitted. Prior to the
issuance of ASU 2010-13, the Company classified stock options issued with Canadian dollar
exercise prices to employees of non-Canadian operations as derivative liabilities, measured at
fair value.The Company early adopted ASU 2010-13 effective January 1, 2010. The net effect of adoption at
January 1, 2010 on opening US GAAP balances was to increase retained earnings by $46.2 million,
decrease share capital by $29.4 million and decrease non-current derivative liabilities by $16.8
million.
 (iii)
Disclosures about the credit quality of financing receivables and allowance for credit
losses
 In July 2010, the FASB issued ASU 2010-20 (ASU 2010-20) which improve the disclosures that an
entity provides about the credit quality of its financing receivables and related allowance for
credit losses. The amendments in ASU 2010-20 are effective commencing with the Companys year
ended December 31, 2010. The adoption of these amendments did not result in a material impact to
the disclosures in the Companys consolidated financial statements.
 (iv)
Pro-forma disclosures for business combinations
 In December 2010, the FASB issued ASU 2010-29 (ASU 2010-29) which specify that when an entity
that has entered into a business combination in the current year presents comparative financial
statements, the entity should disclose revenue and earnings of the combined entity as though the
business combination that occurred during the current year had occurred as of the beginning of
the comparable prior annual reporting period only.The Company adopted the amendments in ASU 2010-29 and has presented its pro-forma results of
operations had the business combinations it entered into during 2010 occurred as of January 1,
2009 (note29(i)).




---



##### 



(l)
    
    Significant US GAAP accounting pronouncements adopted during 2009
 (i)
Business Combinations and Non-Controlling Interests
 In December 2007, the FASB issued ASC 805  Business Combinations (ASC 805)and ASC 810 -
Non-controlling Interests in Consolidated Financial Statements (ASC 810), which are both
effective for fiscal years beginning after December 15, 2008.ASC 805, which replaces SFAS 141  Business Combinations (SFAS 141), is applicable to
business combinations consummated after the effective date of December 15, 2008. Under ASC 805,
business combinations are accounted for under the acquisition method, compared to the
purchase method required under SFAS 141. The significant changes that result from applying the
acquisition method of ASC 805 include: (i) the definition of a business is broadened to include
development stage entities, and therefore more acquisitions are accounted for as business
combinations rather than asset acquisitions; (ii) the measurement date for equity interests
issued by the acquirer is the acquisition date instead of a few days before and after terms are
agreed to and announced, which may significantly change the amount recorded for the acquired
business if share prices differ from the agreement and announcement date to the acquisition
date; (iii) all future adjustments to income tax estimates are recorded as income tax expense or
recovery, whereas under SFAS 141, certain changes in income tax estimates were recorded to
goodwill; (iv) acquisition-related costs of the acquirer, including investment banking fees,
legal fees, accounting fees, valuation fees, and other professional or consulting fees are
expensed as incurred, whereas under SFAS 141, these costs were capitalized as part of the cost
of the business combination; (v) the assets acquired and liabilities assumed are recorded at
100% of fair value even if less than 100% is obtained, whereas under SFAS 141, only the
controlling interests portion was recorded at fair value; and (vi) non-controlling interests
are recorded at their share of fair value of net assets acquired, including their share of
goodwill, whereas under SFAS 141, non-controlling interests were recorded at their share of
carrying value of net assets acquired.Under ASC 810, non-controlling interests are measured at their proportionate share of the fair
value of identifiable net assets acquired on initial recognition. For presentation and
disclosure purposes, non-controlling interests are classified as a separate component of equity.
In addition, ASC 810 changes the manner in which increases and decreases in ownership interests
are accounted for. Changes in ownership interests are recorded as equity transactions and no
gain or loss is recognized as long as the parent retains control of the subsidiary. When a
parent company deconsolidates a subsidiary but retains a non-controlling interest, the
non-controlling interest is re-measured at fair value on the date control is lost and a gain or
loss is recognized at that time. Under ASC 810, accumulated losses attributable to
non-controlling interests are no longer limited to the original carrying amount, and therefore
non-controlling interests could have a negative carrying amount. The provisions of ASC 810 have
been applied retrospectively with the exception of the accounting for changes in the Companys
ownership interests in a subsidiary over which control is maintained, the accounting for a loss
of control of a subsidiary and the attribution of net earnings and losses and other
comprehensive income and losses to non-controlling interests. The adoption of ASC 805 and ASC
810 on January 1, 2009 resulted in the reclassification of dilution loss of $0.3 million from
net earnings to retained earnings for the year ended December 31, 2009 and the reclassification
of non-controlling interests to the equity section of the Consolidated Balance Sheet in the
amount of $51.1 million at December 31, 2009. In addition, the Company recorded an $8.7 million
decrease to future income tax expense during the year ended December 31, 2009 and a
corresponding $8.7 million increase to other non-current assets on the Consolidated Balance
Sheet at December 31, 2010 and 2009 as a result of realizing previously unrecognized future
income tax assets relating to prior business combinations.As a result of the Company adopting Sections 1582, 1601 and 1602 for Canadian GAAP purposes
effective January 1, 2010 (note 3)which establish standards equivalent to ASC 805 and ASC 810,
the adoption of ASC 805 and ASC 810 did not have any impact to the Companys consolidated
financial statements at and for the year ended December 31, 2010.




---



##### 



(ii)
Convertible Debt
 Effective January 1, 2009, the Company adopted the FASBs guidance on accounting for convertible
debt instruments that may be settled in cash or partial cash settlement upon conversion,
included in ASC 470  Debtand applicable for fiscal years beginning after December 15, 2008.
This guidance is similar to the Canadian GAAP guidance on initial recognition and measurement
and subsequent measurement of the Companys convertible senior notes.
 (iii)
Derivative Instruments
 Effective January 1, 2009, the Company adopted the FASBs guidance on determining whether an
instrument is indexed to an entitys own stock which is included in ASC 815 and applicable for
fiscal years beginning after December 15, 2008. Derivative instruments that are indexed to an
entitys own stock are exempt from classification as liabilities and would instead be classified
as equity. Equity-linked financial instruments with a strike price denominated in a currency
other than the issuers functional currency would not be considered indexed to the entitys own
stock. The adoption of this guidance did not result in a material impact to the Companys
consolidated financial statements.Also effective January 1, 2009, the Company adopted the FASBs standard on disclosures about
derivative instruments and hedging activities included in ASC 815 and applicable for interim and
fiscal years beginning after November 15, 2008. The standard amends and expands the disclosure
requirements to provide users of financial statements with an enhanced understanding of how and
why an entity uses derivative instruments, how derivative instruments are accounted for and how
derivative instruments affect an entitys financial position and financial performance. The
requirements of this standard are similar to those required by Canadian GAAP.
 (iv)
Equity method investees
 Effective January 1,
2009, the Company adopted the FASBs guidance on equity method investment
accounting considerations which is included in ASC 323  Investments  Equity Method and Joint
Venturesand applicable for fiscal years beginning on or after December 15, 2008. The guidance
indicates when investments accounted for using the equity method are impaired and the
appropriate initial measurement and accounting for subsequent changes in ownership interests.
The adoption of this guidance did not result in a material impact to the Companys consolidated
financial statements.
 (v)
Financial Accounting Standards Boards Codification of US GAAP
 On July 1, 2009, the FASBs ASC was launched as the sole source of authoritative
non-governmental US GAAP. The ASC is not intended to change US GAAP, but rather reorganize
existing guidance by accounting topic to allow easier identification of applicable standards.
References in the Companys consolidated financial statements to US GAAP have been updated to
reflect the ASC.
 (vi)
Variable Interest Entities
 In December 2009, the FASB issued ASU 2009-17 which replace the quantitative-based risks and
rewards calculation for determining which reporting entity, if any, has a controlling financial
interest in a variable interest entity with an approach focused on identifying which reporting
entity has the power to direct the activities of a variable interest entity that most
significantly impact the entitys economic performance and (1) the obligation to absorb losses
of the entity or (2) the right to receive benefits from the entity. The primarily qualitative
new approach will be more effective for identifying which reporting entity has a controlling
financial interest in a variable interest entity. The amendments in ASU 2009-17 also require
additional disclosures about a reporting entitys involvement in variable interest entities,
which will enhance the information provided to users of financial statements. The adoption of
ASU 2009-17 did not have a material impact to the Companys consolidated financial statements.




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(vii)
Fair Value Measurements and Disclosures
 During 2009, the FASB issued guidance, included in ASC 820, on determining the fair value of a
financial asset and liability when the volume and level of activity for the asset or liability
has significantly decreased. This guidance is applicable for interim and annual periods ending
after June 15, 2009. In addition, the FASB issued additional guidance on determining the fair
value of liabilities, including the incorporation of non-performance risks, market participant
assumptions and the impact of restrictions on transfers in the fair value measurement inputs.The adoption of the above guidance did not have a material impact on the Companys consolidated
financial statements.
 (viii)
Subsequent events
 In 2009, the Company adopted ASC 855, as amended on February 24, 2010, the FASBs guidance on
subsequent events which is applicable for interim and annual periods ending after June 15, 2009
on a prospective basis. The guidance requires that the Company evaluate subsequent events
through the date the financial statements are issued. The adoption of this guidance did not
result in a material impact to the Companys consolidated financial statements.(m)
    
    United States accounting pronouncements adopted during 2008
 (i)
Fair Value Measurements and Disclosures
 In September 2006, the FASB issued ASC 820  Fair Value Measurements and Disclosures (ASC
820), effective for fiscal periods beginning after November 15, 2007. ASC 820 defines fair
value, establishes a framework for measuring fair value in generally accepted accounting
principles, and expands disclosures about fair value measurements. In December 2007, the FASB
provided for a one-year deferral of the application of ASC 820 for non-financial assets and
liabilities recognized or disclosed at fair value in the financial statements on a non-recurring
basis. Also included in ASC 820 is guidance on measurement of fair value of a financial asset
when the market of that financial asset is not active. The adoption of ASC 820 during 2008, for
financial assets and liabilities measured at fair value, did not have a material impact on the
Companys consolidated financial statements.
 (ii)
Fair Value Option
 In February 2007, the FASB issued guidance on the fair value option for financial assets and
financial liabilities which is included in ASC 825  Financial Instrumentsand permits entities
to choose to measure many financial instruments and certain other items at fair value. This
statement is effective for fiscal periods beginning after November 15, 2007. The adoption and
application of this guidance at January 1, 2008 did not have a material impact on the Companys
consolidated financial statements.




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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
Paseo de las Palmas 425 -15 
Lomas de Chapultepec
11000 Mexico, D.F.
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