Freeport-McMoRan 2008 Annual Report Download - page 67

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Consolidated Statements of Cash Flows
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 65
Years Ended December 31, 2008 2007 2006
(In Millions)
Cash flow from operating activities:
Net (loss) income $ (11,067) $ 2,977 $ 1,457
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion and amortization 1,782 1,264 228
Minority interests in consolidated subsidiaries 617 802 168
Asset impairments, including goodwill 16,854 – –
Lower of cost or market inventory adjustments 782 – –
Pension and postretirement special benefits and curtailments 61 – –
Stock-based compensation 98 144 55
Charges for reclamation and environmental obligations, including accretion 181 32 3
Unrealized losses on copper price protection program – 175 –
Losses on early extinguishment and conversion of debt, net 6 173 32
Deferred income taxes (4,653) (288) 16
Gains on sales of assets (13) (85) (31)
Decrease in long-term mill and leach stockpiles (225) (48) –
Amortization of intangible assets/liabilities and other, net 117 45 52
(Increases) decreases in working capital, excluding amounts acquired from Phelps Dodge:
Accounts receivable 542 428 196
Inventories (478) 272 (146)
Prepaid expenses and other current assets (91) 21 (27)
Accounts payable, accrued liabilities and copper price protection program (171) 400 15
Accrued income taxes (767) 24 (152)
Settlement of reclamation and environmental obligations (205) (111) –
Net cash provided by operating activities 3,370 6,225 1,866
Cash flow from investing activities:
North America capital expenditures (846) (933) –
South America capital expenditures (323) (123) –
Indonesia capital expenditures (444) (368) (234)
Africa capital expenditures (1,058) (266) –
Other capital expenditures (37) (65) (17)
Acquisition of Phelps Dodge, net of cash acquired (1) (13,910) (5)
Net proceeds from the sale of Phelps Dodge International Corporation – 597 –
Proceeds from sales of assets 47 260 34
Decrease in global reclamation and remediation trust assets 430 – –
Other, net (86) (53) (2)
Net cash used in investing activities (2,318) (14,861) (224)
Cash flow from financing activities:
Proceeds from term loans under bank credit facility – 12,450 –
Repayments of term loans under bank credit facility – (12,450) –
Net proceeds from sales of senior notes – 5,880 –
Net proceeds from sale of common stock – 2,816 –
Net proceeds from sale of 6¾% Mandatory Convertible Preferred Stock – 2,803 –
Proceeds from revolving credit facility and other debt 890 744 103
Repayments of other debt and redemption of preferred stock (766) (1,069) (394)
Purchases of FCX common stock (500) – (100)
Cash dividends paid:
Common stock (693) (421) (916)
Preferred stock (255) (175) (61)
Minority interests (730) (967) (161)
Minority interest contribution related to Tenke Fungurume 201 – –
Net proceeds from (payments for) exercised stock options 22 (14) 15
Excess tax benefit from stock-based awards 25 16 21
Bank credit facilities fees and other, net – (258) (6)
Net cash (used in) provided by financing activities (1,806) 9,355 (1,499)
Net (decrease) increase in cash and cash equivalents (754) 719 143
Cash and cash equivalents at beginning of year 1,626 907 764
Cash and cash equivalents at end of year $ 872 $ 1,626 $ 907
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements.