Freeport-McMoRan 2009 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2009 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

2009  
%DODQFHDWEHJLQQLQJRI\HDU$712   
/LDELOLWLHVDVVXPHGLQWKHDFTXLVLWLRQ
RI3KHOSV'RGJH   ³ D
/LDELOLWLHVLQFXUUHG 12    
5HYLVLRQVWRFDVKÁRZHVWLPDWHV(17)   E
$FFUHWLRQH[SHQVH 52    
6SHQGLQJ (28)    
)RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW   ³
%DODQFHDWHQGRI\HDU$731  
H ;OLMHPY]HS\LVM(96ZHZZ\TLKPU[OLHJX\PZP[PVUVM7OLSWZ+VKNL^HZLZ[PTH[LK
IHZLKVUWYVQLJ[LKJHZOÅV^ZHULZ[PTH[LKSVUN[LYTHUU\HSPUÅH[PVUYH[LVM
WLYJLU[HKPZJV\U[YH[LIHZLKVU-*?»ZLZ[PTH[LKJYLKP[HKQ\Z[LKYPZRMYLLPU[LYLZ[YH[L
VMWLYJLU[HUKHTHYRL[YPZRWYLTP\TVMWLYJLU[[VYLÅLJ[^OH[H[OPYKWHY[`
TPNO[YLX\PYL[VHZZ\TL[OLZL(96Z
I +\YPUN*OPUVHUK;`YVULLHJOZ\ITP[[LK\WKH[LK[OPYKWHY[`JSVZ\YLJVZ[
LZ[PTH[LZ[V[OLZ[H[LVM5L^4L_PJVHZWHY[VM[OLWLYTP[YLUL^HSWYVJLZZ(ZHYLZ\S[
^LYL]PZLKV\YJHZOÅV^LZ[PTH[LZHUKPUJYLHZLKV\Y(96I` TPSSPVUMVY*OPUVHUK
TPSSPVUMVY;`YVUL+\YPUN ;`YVULÄSLKHUHWWLHSYLNHYKPUN[OLWVPU[VM
NYV\UK^H[LY^P[OKYH^HS-PUHSPaLKJSVZ\YLWSHUYLX\PYLTLU[ZPUJS\KPUN[OVZLYLZ\S[PUN
MYVTYLZVS\[PVUVM[OLHWWLHSTH`YLZ\S[PUHKKP[PVUHSHKQ\Z[TLU[Z(KKP[PVUHSS`
7;-YLLWVY[0UKVULZPH\WKH[LKP[ZJVZ[LZ[PTH[LZWYPTHYPS`MVYJOHUNLZ[VP[ZWSHUZMVY
[OL[YLH[TLU[VMHJPKPJ^H[LYYLZ\S[PUNPUHUPUJYLHZLVMTPSSPVU
5HIHUWR1RWHIRUIXUWKHUGLVFXVVLRQ RIUHFODPDWLRQDQGFORVXUHFRVWV
Environmental Obligations. 2XUPLQLQJH[SORUDWLRQSURGXFWLRQ
DQGKLVWRULFDORSHUDWLQJDFWLYLWLHVDUHVXEMHFWWRVWULQJHQWODZV
DQGUHJXODWLRQVJRYHUQLQJWKHSURWHFWLRQRIWKHHQYLURQPHQWDQG
FRPSOLDQFHZLWKWKRVHODZVUHTXLUHVVLJQLÀFDQWH[SHQGLWXUHV
(QYLURQPHQWDOH[SHQGLWXUHVIRUFORVHGIDFLOLWLHVDQGFORVHGSRUWLRQV
RIRSHUDWLQJIDFLOLWLHVDUHH[SHQVHGRUFDSLWDOL]HGGHSHQGLQJXSRQ
WKHLUIXWXUHHFRQRPLFEHQHÀWV7KHJHQHUDOJXLGDQFHSURYLGHGE\
86*$$3 UHTXLUHVWKDWOLDELOLWLHVIRUFRQWLQJHQFLHVEHUHFRUGHG
ZKHQLWLVSUREDEOHWKDWDOLDELOLW\KDVEHHQLQFXUUHGDQGWKHDPRXQW
FDQEHUHDVRQDEO\HVWLPDWHG5HIHUWR1RWHIRUGLVFXVVLRQRIRXU
DFFRXQWLQJSROLF\IRUHQYLURQPHQWDOH[SHQGLWXUHV
$FFRXQWLQJIRUHQYLURQPHQWDOREOLJDWLRQVUHSUHVHQWVDFULWLFDO
DFFRXQWLQJHVWLPDWHEHFDXVHFKDQJHVWRHQYLURQPHQWDOODZVDQG
UHJXODWLRQVDQGRUFLUFXPVWDQFHVDIIHFWLQJRXURSHUDWLRQVFRXOG
UHVXOWLQVLJQLÀFDQWFKDQJHVWRRXUHVWLPDWHVZKLFKFRXOGKDYHD
VLJQLÀFDQWLPSDFWRQRXUUHVXOWVRIRSHUDWLRQV:HUHYLHZFKDQJHVLQ
IDFWVDQGFLUFXPVWDQFHVDVVRFLDWHGZLWKWKHHQYLURQPHQWDO
REOLJDWLRQVRQDTXDUWHUO\EDVLV-XGJPHQWVDQGHVWLPDWHVDUHEDVHG
XSRQDYDLODEOHIDFWVH[LVWLQJWHFKQRORJ\SUHVHQWO\HQDFWHGODZVDQG
UHJXODWLRQVUHPHGLDWLRQH[SHULHQFHZKHWKHURUQRWZHDUHD
SRWHQWLDOO\UHVSRQVLEOHSDUW\353WKHDELOLW\RIRWKHU353VWRSD\
WKHLUDOORFDWHGSRUWLRQVDQGWDNHLQWRFRQVLGHUDWLRQUHDVRQDEO\
SRVVLEOHRXWFRPHV2XUFRVWHVWLPDWHVFDQFKDQJHVXEVWDQWLDOO\DV
DGGLWLRQDOLQIRUPDWLRQEHFRPHVDYDLODEOHUHJDUGLQJWKHQDWXUHRU
H[WHQWRIVLWHFRQWDPLQDWLRQUHTXLUHGUHPHGLDWLRQPHWKRGVDQG
DFWLRQVE\RUDJDLQVWJRYHUQPHQWDODJHQFLHVRUSULYDWHSDUWLHV
$W'HFHPEHUHQYLURQPHQWDOREOLJDWLRQVUHFRUGHGLQ
RXUFRQVROLGDWHGEDODQFHVKHHWVWRWDOHGDSSUR[LPDWHO\ELOOLRQ
ZKLFKUHÁHFWREOLJDWLRQVIRUHQYLURQPHQWDOOLDELOLWLHVDWWULEXWHGWR
WKH&RPSUHKHQVLYH(QYLURQPHQWDO5HVSRQVH&RPSHQVDWLRQDQG
/LDELOLW\$FW&(5&/$RUDQDORJRXVVWDWHSURJUDPVDQGIRU
HVWLPDWHGIXWXUHFRVWVDVVRFLDWHGZLWKHQYLURQPHQWDOPDWWHUVDW
FORVHGIDFLOLWLHVDQGFORVHGSRUWLRQVRIFHUWDLQRSHUDWLQJIDFLOLWLHV
)ROORZLQJLVDVXPPDU\RIFKDQJHVLQRXUHVWLPDWHGHQYLURQPHQWDO
REOLJDWLRQVIRUWKH\HDUVHQGHG'HFHPEHUDQG
LQPLOOLRQV
2009  
%DODQFHDWEHJLQQLQJRI\HDU  $1,401   ³
/LDELOLWLHVDVVXPHGLQWKHDFTXLVLWLRQ
RI3KHOSV'RGJH   
$FFUHWLRQH[SHQVHD 102   ³
$GGLWLRQV 40  
5HGXFWLRQV (3)    
6SHQGLQJ   (76)   
%DODQFHDWHQGRI\HDU $1,464  
H 9LWYLZLU[ZHJJYL[PVUVM[OLMHPY]HS\LZVMLU]PYVUTLU[HSVISPNH[PVUZHZZ\TLKPU[OL
HJX\PZP[PVUVM7OLSWZ+VKNL^OPJO^LYLKL[LYTPULKVUHKPZJV\U[LKJHZOÅV^IHZPZ
5HIHUWR1RWHIRUIXUWKHUGLVFXVVLRQRIHQYLURQPHQWDOREOLJDWLRQV
Deferred Taxes.,QSUHSDULQJRXUDQQXDOFRQVROLGDWHGÀQDQFLDO
VWDWHPHQWVZHHVWLPDWHWKHDFWXDODPRXQWRIWD[HVFXUUHQWO\SD\DEOH
RUUHFHLYDEOHDVZHOODVGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVDWWULEXWDEOH
WRWHPSRUDU\GLIIHUHQFHVEHWZHHQWKHÀQDQFLDOVWDWHPHQWFDUU\LQJ
DPRXQWVRIH[LVWLQJDVVHWVDQGOLDELOLWLHVDQGWKHLUUHVSHFWLYHWD[
EDVHV'HIHUUHGLQFRPHWD[DVVHWVDQGOLDELOLWLHVDUHPHDVXUHGXVLQJ
HQDFWHGWD[UDWHVH[SHFWHGWRDSSO\WRWD[DEOHLQFRPHLQWKH\HDUVLQ
ZKLFKWKHVHWHPSRUDU\GLIIHUHQFHVDUHH[SHFWHGWREHUHFRYHUHGRU
VHWWOHG7KHHIIHFWRQGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVRIDFKDQJHLQ
WD[UDWHVRUODZVLVUHFRJQL]HGLQLQFRPHLQWKHSHULRGLQZKLFKVXFK
FKDQJHVDUHHQDFWHG
$YDOXDWLRQDOORZDQFHLVSURYLGHGIRUWKRVHGHIHUUHGWD[DVVHWVIRU
ZKLFKLWLVPRUHOLNHO\WKDQQRWWKDWWKHUHODWHGEHQHÀWVZLOOQRWEH
UHDOL]HG,QGHWHUPLQLQJWKHDPRXQWRIWKHYDOXDWLRQDOORZDQFHZH
FRQVLGHUHVWLPDWHGIXWXUHWD[DEOHLQFRPHDVZHOODVIHDVLEOHWD[
SODQQLQJVWUDWHJLHVLQHDFKMXULVGLFWLRQ,IZHGHWHUPLQHWKDWZHZLOO
QRWUHDOL]HDOORUDSRUWLRQRIRXUGHIHUUHGWD[DVVHWVZHZLOOLQFUHDVH
RXUYDOXDWLRQDOORZDQFH&RQYHUVHO\LIZHGHWHUPLQHWKDWZHZLOO
XOWLPDWHO\EHDEOHWRUHDOL]HDOORUDSRUWLRQRIWKHUHODWHGEHQHÀWVIRU
ZKLFKDYDOXDWLRQDOORZDQFHKDVEHHQSURYLGHGDOORUDSRUWLRQRIWKH
UHODWHGYDOXDWLRQDOORZDQFHZLOOEHUHGXFHG
$W'HFHPEHURXUYDOXDWLRQDOORZDQFHVWRWDOHGELOOLRQ
DQGFRYHUHGDOORIRXU86IRUHLJQWD[FUHGLWFDUU\IRUZDUGVDQG86
VWDWHQHWRSHUDWLQJORVVFDUU\IRUZDUGVDQGDSRUWLRQRIRXUIRUHLJQ
QHWRSHUDWLQJORVVFDUU\IRUZDUGVDQG86PLQLPXPWD[FUHGLW
FDUU\IRUZDUGV7KLVYDOXDWLRQDOORZDQFHLQFOXGHVPLOOLRQUHODWLQJ
WRWD[EHQHÀWVWKDWLIUHFRJQL]HGZRXOGEHFUHGLWHGGLUHFWO\WR
FRQWULEXWHGFDSLWDO$W'HFHPEHURXUYDOXDWLRQDOORZDQFHV
WRWDOHGELOOLRQDQGFRYHUHGDOORIRXU86IRUHLJQWD[FUHGLW
FDUU\IRUZDUGV86PLQLPXPWD[FUHGLWFDUU\IRUZDUGVIRUHLJQQHW
RSHUDWLQJORVVFDUU\IRUZDUGVDQG86VWDWHQHWRSHUDWLQJORVV
MANAGEMENTS DISCUSSION AND ANALYSIS
22-9,,769;4J4V9HU*677,9.63+05*
 (UU\HS9LWVY[