Freeport-McMoRan 2008 Annual Report Download - page 107

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Notes to Consolidated Financial Statements
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 105
North America Copper Mines South America Copper Mines Indonesia Africa Atlantic
Copper Corporate,
Other Cerro Other Rod & Smelting Other &
Year Ended December 31, 2008 Morenci Sierrita Mines Total Verde Mines Total Grasberg Tenke Molybdenum Refining & Refining Eliminations FCX Total
Revenues:
Unaffiliated customers
b
$ 370 $ 90 $ 256 $ 716 $ 1,602 $ 2,166 $ 3,768 $ 2,934
a
$ – $ 2,488 $ 5,524 $ 2,333 $ 33 $ 17,796
Intersegment 1,630 1,103 1,816 4,549 261 137 398 478 – – 33 8 (5,466) –
Production and delivery
b
1,313 487 1,247 3,047 698 1,146 1,844 1,792 6 1,528 5,527 2,276 (5,604) 10,416
Depreciation, depletion
and amortization
b
330 88 352 770 178 333 511 222 6 192 8 35 38 1,782
LCM inventory adjustments 302 – 359 661 – 10 10 – 10 101 – – – 782
Selling, general and
administrative expenses – – – – – – – 91 – 18 – 20 140 269
Exploration and research expenses – – – – – – – – – 2 – – 290 292
Goodwill impairment 1,851 991 1,308 4,150 763 366 1,129 – 2 703 – – 3 5,987
Long-lived asset impairments and
other charges
c
2,702 1,908 3,549 8,159 1 1,365 1,366 – 2 1,417 20 – 14 10,978
Operating (loss) income
b
(4,498) (2,281) (4,743) (11,522) 223 (917) (694) 1,307 (26) (1,473) 2 10 (314) (12,710)
Interest expense, net 2 1 10 13 2 2 4 (1) 69 – 4 13 482 584
(Benefit from) provision for income
taxes – – – – 313 (267) 46 612 (66) – – – (3,436) (2,844)
Total assets at December 31, 2008 2,148 495 3,555 6,198 3,994 2,406 6,400 4,420 2,685 1,795 266 852 737 23,353
Capital expenditures 276 51 282 609 129 194 323 444 1,058 180 9 34 51 2,708
a. Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.4 billion.
b. The following table summarizes the impact of purchase accounting fair value adjustments on operating (loss) income primarily associated with the impacts of the increases in the
carrying values of acquired metals inventories (including mill and leach stockpiles) and property, plant and equipment:
Revenues $ – $ – $ – $ – $ 5 $ 1 $ 6 N/A $ – $ (2) $ – N/A $ – $ 4
Production and delivery 37 11 (24) 24 9 37 46 N/A – 32 – N/A 23 125
Depreciation, depletion
and amortization 209 62 199 470 87 203 290 N/A – 139 – N/A (11) 888
Impact on operating (loss) income $ (246) $ (73) $ (175) $ (494) $ (91) $ (239) $ (330) N/A $ – $ (173) $ – N/A $ (12) $ (1,009)
c. The following table summarizes long-lived asset impairments and other charges:
Long-lived asset impairments $ 2,683 $ 1,900 $ 3,511 $ 8,094 $ – $ 1,359 $ 1,359 $ – $ – $ 1,408 $ 6 $ – $ – $ 10,867
Restructuring charges 3 2 18 23 1 6 7 – 2 4 4 – 10 50
Special retirement benefits
and curtailments 16 6 20 42 – – – – – 5 10 – 4 61
Long-lived asset impairments
and other charges $ 2,702 $ 1,908 $ 3,549 $ 8,159 $ 1 $ 1,365 $ 1,366 $ – $ 2 $ 1,417 $ 20 $ – $ 14 $ 10,978
Business Segments
Business segments for the years ended December 31, 2008, 2007 and 2006, are presented in the following tables.