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Notes to Consolidated Financial Statements
104 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
variety of factors, including additional processing, timing of sales
to unaffiliated customers and transportation premiums.
Allocations.
FCX allocates certain operating costs, expenses
and capital to the operating divisions and individual segments.
However, not all costs and expenses applicable to a mine or
operation are allocated. All U.S. federal and state income taxes
are recorded and managed at the corporate level with the
exception of foreign income taxes, which are recorded and
managed at the applicable mine or operation. In addition, most
exploration and research activities are managed at the corporate
level, and those costs are not allocated to the operating division
or segments. Accordingly, the following segment information
reflects management determinations that may not be indicative
of what the actual financial performance of each operating
division or segment would be if it was an independent entity.
FCX revenues attributable to the products it produces for the
years ended December 31, 2008, 2007 and 2006, follow:
2008 2007 2006
Refined copper products $ 9,575 $ 8,918 $ 1,865
Copper in concentrates
a
3,954 4,541 2,721
Molybdenum 2,408 1,703 –
Gold 1,286 1,664 1,155
Other
b
573 113 50
Total $ 17,796 $ 16,939 $ 5,791
a. Amounts are net of treatment and refining charges totaling $398 million for 2008,
$502 million for 2007 and $388 million for 2006.
b. Amounts are net of royalty charges totaling $113 million in 2008, $133 million in
2007 and $126 million in 2006. Also includes $273 million in 2008, $(36) million in
2007 and $139 million in 2006 for adjustments to prior year sales and pre-acquisition
sales in 2007 subject to final pricing.
Information concerning financial data by geographic area for
the years ended December 31, 2008, 2007 and 2006, is presented
in the following tables.
Geographic Area
2008 2007 2006
Revenues
a
:
United States $ 7,609 $ 6,480 $ 76
Japan 2,662 2,479 1,242
Spain 1,872 1,773 1,380
Indonesia 1,420 2,105 1,202
Chile 669 627 –
United Kingdom 404 661 126
Others 3,160 2,814 1,765
Total $ 17,796 $ 16,939 $ 5,791
2008 2007 2006
Long-lived assets
b
:
United States $ 6,529 $ 16,954 $ 41
Indonesia 3,361 3,126 2,933
Peru 3,278 3,242 –
Democratic Republic of Congo 2,696 1,506 –
Chile 1,551 2,882 –
Spain 283 274 265
Others 59 84 –
Total $ 17,757 $ 28,068 $ 3,239
a. Revenues are attributed to countries based on the location of the customer.
b. Long-lived assets exclude deferred tax assets, goodwill and intangible assets.
Major Customers
No single customer accounted for 10 percent or more of FCX’s
consolidated revenues in 2008. Sales to PT Smelting totaled
$1.8 billion (11 percent of FCX’s consolidated revenues) in 2007
and $1.2 billion (21 percent of FCX’s consolidated revenues)
in 2006. See Note 3 for further discussion of FCX’s investment
in PT Smelting.