Freeport-McMoRan 2008 Annual Report Download - page 108

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Notes to Consolidated Financial Statements
106 FREEPORT-McMoRan COPPER & GOLD INC. 2008 Annual Report
North America Copper Mines South America Copper Mines Indonesia Africa Atlantic
Copper Corporate,
Other Cerro Other Rod & Smelting Other &
Year Ended December 31, 2007 Morenci Sierrita Mines Total Verde Mines Total Grasberg Tenke Molybdenum Refining & Refining Eliminations FCX Total
Revenues:
Unaffiliated customers
b
$ 286 $ 53 $ 203 $ 542 $ 1,243 $ 2,228 $ 3,471 $ 3,640
a
$ – $ 1,746 $ 5,108 $ 2,388 $ 44 $ 16,939
Intersegment 1,516 780 1,255 3,551 390 18 408 1,168 – – 32 – (5,159) –
Production and delivery
b
1,014 352 800 2,166 479 798 1,277 1,388 10 1,287 5,119 2,329 (5,049) 8,527
Depreciation, depletion
and amortization
b
240 54 205 499 129 249 378 199 2 94 7 36 31 1,246
Selling, general and
administrative expenses – – – – – – – 188 – 10 – 20 248 466
Exploration and research expenses – – – – – – – – – 2 – – 143 145
Operating income (loss)
b
548 427 453 1,428 1,025 1,199 2,224 3,033 (12) 353 14 3 (488) 6,555
Interest expense, net – – – – 9 (2) 7 12 (41) – 4 26 505 513
Provision for income taxes – – – – 484 369 853 1,326 4 – – – 217 2,400
Total assets at December 31, 2007 5,043 2,419 7,209 14,671 4,236 4,183 8,419 3,737 1,477 3,522 438 915 7,482
c
40,661
Capital expenditures 269 28 559 856 58 65 123 368 266 45 8 42 47 1,755
a. Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.8 billion.
b. The following table summarizes the impact of purchase accounting fair value adjustments on operating income (loss) 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 $ – $ – $ – $ – $ 8 $ 1 $ 9 N/A $ – $ 111 $ – N/A $ – $ 120
Production and delivery 218 50 76 344 73 96 169 N/A – 164 – N/A 104 781
Depreciation, depletion
and amortization 167 37 130 334 64 145 209 N/A – 52 – N/A – 595
Impact on operating income (loss) $ (385) $ (87) $ (206) $ (678) $ (129) $ (240) $ (369) N/A $ – $ (105) $ – N/A $ (104) $ (1,256)
c. Includes preliminary goodwill of $6.1 billion, which had not been allocated to reporting units.
North America Copper Mines South America Copper Mines Indonesia Africa Atlantic
Copper Corporate,
Other Cerro Other Rod & Smelting Other &
Year Ended December 31, 2006 Morenci Sierrita Mines Total Verde Mines Total Grasberg Tenke Molybdenum Refining & Refining Eliminations FCX Total
Revenues:
Unaffiliated customers $ – $ – $ – $ – $ – $ – $ – $ 3,543
a
$ – $ – $ – $ 2,242 $ 6 $ 5,791
Intersegment – – – – – – – 852 – – – – (852) –
Production and delivery – – – – – – – 1,279 – – – 2,119 (873) 2,525
Depreciation, depletion
and amortization – – – – – – – 184 – – – 33 11 228
Selling, general and
administrative expenses – – – – – – – 211 – – – 16 (70) 157
Exploration and research expenses – – – – – – – – – – – – 12 12
Operating income – – – – – – – 2,721 – – – 74 74 2,869
Interest expense, net – – – – – – – 20 – – – 25 31 76
Provision for income taxes – – – – – – – 950 – – – – 251 1,201
Total assets at December 31, 2006 – – – – – – – 4,112 – – – 915 363 5,390
Capital expenditures – – – – – – – 234 – – – 17 – 251
a. Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.2 billion.
Business Segments (continued)