Freeport-McMoRan 2008 Annual Report Download - page 111

Notes to Consolidated Financial Statements
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 109
NOTE 21. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
2008
Revenues $ 5,672 $ 5,441 $ 4,616 $ 2,067 $ 17,796
Operating income (loss)
a
2,396 2,053 1,133 (18,292) (12,710)
Net income (loss) applicable to common stock
a
1,122 947 523 (13,933) (11,341)
Basic net income (loss) per share of common stock 2.93 2.47 1.37 (36.78) (29.72)
Diluted net income (loss) per share of common stock
a
2.64 2.25 1.31 (36.78) (29.72)
2007
Revenues
b
$ 2,246 $ 5,443 $ 5,066 $ 4,184 $ 16,939
Operating income
b,c
1,172 2,354 1,877 1,152 6,555
Income from continuing operations applicable to common stock
b,c,d
472 1,076 763 423 2,734
Income (loss) from discontinued operations
c
4 28 12 (9) 35
Net income applicable to common stock
b,c,d
476 1,104 775 414 2,769
Basic net income (loss) per share of common stock:
Continuing operations $ 2.18 $ 2.83 $ 2.00 $ 1.10 $ 8.02
Discontinued operations 0.02 0.07 0.03 (0.02) 0.10
Basic net income per share of common stock $ 2.20 $ 2.90 $ 2.03 $ 1.08 $ 8.12
Diluted net income (loss) per share of common stock:
Continuing operations
b,c,d
$ 2.00 $ 2.56 $ 1.85 $ 1.07 $ 7.41
Discontinued operations
c
0.02 0.06 0.02 (0.02) 0.09
Diluted net income per share of common stock
b,c,d
$ 2.02 $ 2.62 $ 1.87 $ 1.05 $ 7.50
All references to income or losses per share are on a diluted basis, unless otherwise noted.
a. Includes LCM inventory adjustments totaling $1 million ($1 million to net income or less than $0.01 per share) in the first quarter, $4 million ($2 million to net income or $0.01 per share)
in the second quarter, $17 million ($10 million to net income or $0.02 per share) in the third quarter, $760 million ($466 million to net loss or $1.23 per share) in the fourth quarter and
$782 million ($479 million to net loss or $1.26 per share) for the year. Fourth quarter also includes asset impairments totaling $10.9 billion ($6.6 billion to net loss or $17.34 per share),
goodwill impairments totaling $6.0 billion ($6.0 billion to net loss or $15.69 per share), restructuring charges totaling $50 million ($30 million to net loss or $0.08 per share) and special
retirement benefits and curtailments totaling $61 million ($37 million to net loss or $0.10 per share). Includes the purchase accounting impact of the increases in the carrying values
of acquired metals inventories (including mill and leach stockpiles) and property, plant and equipment; the impact associated with the amortization of intangible assets and liabilities
resulting from the acquisition of Phelps Dodge; and also includes amounts for non-operating income and expense primarily related to the accretion of the fair values of assumed
environmental obligations (determined on a discounted cash flow basis). These impacts total $278 million to operating income and $15 million to non-operating income and expense
($183 million to net income or $0.41 per share) in the first quarter, $236 million to operating income and $22 million to non-operating income and expense ($161 million to net income or
$0.36 per share) in the second quarter, $247 million to operating income and $30 million to non-operating income and expense ($174 million to net income or $0.39 per share) in the third
quarter, $248 million to operating loss and $26 million to non-operating income and expense ($161 million to net loss or $0.43 per share) in the fourth quarter and $1.0 billion to
operating loss and $93 million to non-operating income and expense ($679 million to net loss or $1.78 per share) for the year.
b. Includes charges (credits) to revenues for mark-to-market accounting adjustments for the 2007 copper price protection program totaling $38 million ($23 million to net income or $0.10
per share) in the first quarter, $130 million ($80 million to net income or $0.18 per share) in the second quarter, $44 million ($26 million to net income or $0.06 per share) in the third
quarter, $(37) million ($(23) million to net income or $0.06 per share) in the fourth quarter and $175 million ($106 million to net income or $0.27 per share) for the year.
c. Includes the purchase accounting impact of the increases in the carrying values of acquired metals inventories (including mill and leach stockpiles) and property, plant and equipment;
and also includes the impact associated with the amortization of intangible assets and liabilities resulting from the acquisition of Phelps Dodge totaling $124 million ($79 million to net
income or $0.32 per share) in the first quarter, $455 million ($284 million or $0.64 per share) in the second quarter, $445 million ($279 million to net income or $0.62 per share) in the
third quarter, $232 million ($143 million to net income or $0.35 per share) in the fourth quarter and $1.3 billion to operating income ($785 million to net income or $1.98 per share) for the
year associated with continuing operations. Also includes purchase accounting impact totaling $8 million ($0.02 per share) in the third quarter associated with discontinued operations.
d. Includes net losses on early extinguishment of debt totaling $88 million ($75 million to net income or $0.31 per share) in the first quarter, $47 million ($35 million to net income or
$0.08 per share) in the second quarter, $36 million ($31 million to net income or $0.07 per share) in the third quarter and $173 million ($132 million to net income or $0.33 per share) for
the year. Also includes gains primarily from the sales of marketable securities totaling $38 million ($23 million to net income or $0.05 per share) in the second quarter, $47 million
($29 million to net income or $0.06 per share) in the third quarter and $85 million ($52 million to net income or $0.13 per share) for the year.