Freeport-McMoRan 2009 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  -9,,769;4J4V9HU*677,9.63+05* 69
   (UU\HS9LWVY[
)&;ҋVFRQYHUWLEOHLQVWUXPHQWVDUHH[FOXGHGIURPWKHFRPSXWDWLRQ
RIGLOXWHGQHWLQFRPHORVVSHUVKDUHRIFRPPRQVWRFNZKHQ
LQFOXGLQJWKHFRQYHUVLRQRIWKHVHLQVWUXPHQWVUHVXOWVLQ DQDQWL
GLOXWLYHHIIHFWRQHDUQLQJVSHUVKDUHUHIHUWRIRRWQRWHVEDQGFLQWKH
WDEOHDERYH
2XWVWDQGLQJVWRFNRSWLRQVZLWKH[HUFLVHSULFHVJUHDWHUWKDQWKH
DYHUDJHPDUNHWSULFHRI)&;ҋVFRPPRQVWRFNGXULQJWKHSHULRGDUH
H[FOXGHGIURPWKHFRPSXWDWLRQRIGLOXWHGQHWLQFRPHORVVSHUVKDUH
RIFRPPRQVWRFN7KHUHZHUHDSSUR[LPDWHO\VL[PLOOLRQVWRFNRSWLRQV
ZLWKDZHLJKWHGDYHUDJHH[HUFLVHSULFHRIH[FOXGHGLQ
DSSUR[LPDWHO\WZRPLOOLRQVWRFNRSWLRQVZLWKDZHLJKWHGDYHUDJH
H[HUFLVHSULFHRILQDQGQRQHLQ
New Accounting Standards.Noncontrolling Interests in
Consolidated Financial Statements. ,Q'HFHPEHUWKH)LQDQFLDO
$FFRXQWLQJ6WDQGDUGV%RDUG)$6%LVVXHGDFFRXQWLQJJXLGDQFH
DVVRFLDWHGZLWKQRQFRQWUROOLQJLQWHUHVWVLQFRQVROLGDWHGÀQDQFLDO
VWDWHPHQWVZKLFKFODULÀHVWKDWQRQFRQWUROOLQJLQWHUHVWVPLQRULW\
LQWHUHVWVDUHWREHWUHDWHGDVDVHSDUDWHFRPSRQHQWRIHTXLW\DQGDQ\
FKDQJHVLQWKHRZQHUVKLSLQWHUHVWLQZKLFKFRQWUROLVUHWDLQHGDUHWREH
DFFRXQWHGIRUDVFDSLWDOWUDQVDFWLRQV+RZHYHUDFKDQJHLQRZQHUVKLS
RIDFRQVROLGDWHGVXEVLGLDU\WKDWUHVXOWVLQDORVVRIFRQWUROLVFRQVLGHUHG
DVLJQLÀFDQWHYHQWWKDWWULJJHUVJDLQRUORVVUHFRJQLWLRQZLWKWKH
HVWDEOLVKPHQWRIDQHZIDLUYDOXHEDVLVLQDQ\UHPDLQLQJRZQHUVKLS
LQWHUHVWV7KLVJXLGDQFHDOVRSURYLGHVDGGLWLRQDOGLVFORVXUH
UHTXLUHPHQWVIRUHDFKUHSRUWLQJSHULRG7KLVJXLGDQFHDSSOLHVWRÀVFDO
\HDUVEHJLQQLQJRQRUDIWHU'HFHPEHUZLWKHDUO\DGRSWLRQ
SURKLELWHG7KLVJXLGDQFHLVUHTXLUHGWREHDGRSWHGSURVSHFWLYHO\
H[FHSWIRUWKHIROORZLQJSURYLVLRQVZKLFKDUHH[SHFWHGWREHDSSOLHG
UHWURVSHFWLYHO\LWKHUHFODVVLÀFDWLRQRIQRQFRQWUROOLQJLQWHUHVWVWR
HTXLW\LQWKHFRQVROLGDWHGEDODQFHVKHHWVDQGLLWKHDGMXVWPHQWWR
FRQVROLGDWHGQHWLQFRPHWRLQFOXGHQHWLQFRPHDWWULEXWDEOHWRERWKWKH
FRQWUROOLQJDQGQRQFRQWUROOLQJLQWHUHVWV)&;DGRSWHGWKLVJXLGDQFH
HIIHFWLYH-DQXDU\DQGDGMXVWHGLWV'HFHPEHU
FRQVROLGDWHGEDODQFHVKHHWWRUHÁHFWQRQFRQWUROOLQJLQWHUHVWVLQWKH
DPRXQWRIPLOOLRQDVDFRPSRQHQWRIHTXLW\)&;DOVRDGMXVWHG
LWVFRQVROLGDWHGVWDWHPHQWVRIHTXLW\IRUWKH\HDUVHQGHG'HFHPEHU
DQGWRUHÁHFWQRQFRQWUROOLQJLQWHUHVWVDVDFRPSRQHQW
RIHTXLW\,QDGGLWLRQ)&;UHYLVHGLWVFRQVROLGDWHGVWDWHPHQWVRI
RSHUDWLRQVIRUWKH\HDUVHQGHG'HFHPEHUDQGWR
LQFOXGHQHWLQFRPHDWWULEXWDEOHWRERWKWKHFRQWUROOLQJDQG
QRQFRQWUROOLQJLQWHUHVWV
Employers’ Disclosures about Postretirement Benefit Plan Assets.
,Q'HFHPEHU)$6%LVVXHGHQKDQFHGJXLGDQFHIRUDQ
HPSOR\HUҋVGLVFORVXUHVDERXWSODQDVVHWVRIDGHÀQHGEHQHÀWSHQVLRQ
RURWKHUSRVWUHWLUHPHQWSODQ7KLVJXLGDQFHUHYLVHVGLVFORVXUH
UHTXLUHPHQWVRQSHQVLRQDQGSRVWUHWLUHPHQWSODQDVVHWV7KH
GLVFORVXUHVDERXWSODQDVVHWVUHTXLUHGE\WKLVJXLGDQFHDUHHIIHFWLYH
IRUÀVFDO\HDUVHQGLQJDIWHU'HFHPEHUZLWKHDUO\DSSOLFDWLRQ
SHUPLWWHG8SRQLQLWLDODSSOLFDWLRQGLVFORVXUHVDUHQRWUHTXLUHGIRU
HDUOLHUSHULRGVWKDWDUHSUHVHQWHGIRUFRPSDUDWLYHSXUSRVHV)&;
DGRSWHGWKLVJXLGDQFHIRUWKH\HDUHQGHG'HFHPEHU
Subsequent Events. ,Q 0D\)$6%LVVXHGDFFRXQWLQJ
JXLGDQFHWKDWUHTXLUHVGLVFORVXUHRIWKHGDWHWKURXJKZKLFKDQHQWLW\
KDVHYDOXDWHGVXEVHTXHQWHYHQWVDQGZKHWKHUWKDWUHSUHVHQWVWKH
GDWHWKHÀQDQFLDOVWDWHPHQWVZHUHLVVXHGRUZHUHDYDLODEOHWREH
LVVXHG7KLVJXLGDQFHVHWVIRUWKLWKHSHULRGDIWHUWKHEDODQFHVKHHW
GXULQJZKLFKPDQDJHPHQWRIDUHSRUWLQJHQWLW\VKDOOHYDOXDWHHYHQWV
RUWUDQVDFWLRQVWKDWPD\RFFXUIRUSRWHQWLDOUHFRJQLWLRQRUGLVFORVXUHLQ
WKHÀQDQFLDOVWDWHPHQWVLLWKHFLUFXPVWDQFHVXQGHUZKLFKDQHQWLW\
VKDOOUHFRJQL]HHYHQWVRUWUDQVDFWLRQVRFFXUULQJDIWHUWKHEDODQFHVKHHW
GDWHLQLWVÀQDQFLDOVWDWHPHQWVDQGLLLWKHGLVFORVXUHVWKDWDQHQWLW\
VKDOOPDNHDERXWHYHQWVRUWUDQVDFWLRQVWKDWRFFXUUHGDIWHUWKHEDODQFH
VKHHWGDWH7KLVJXLGDQFHLVHIIHFWLYHIRULQWHULPDQGÀVFDO\HDUV
HQGLQJDIWHU-XQHDQGVKDOOEHDSSOLHGSURVSHFWLYHO\)&;
DGRSWHGWKLVJXLGDQFHHIIHFWLYHVHFRQGTXDUWHU
Reclassifications. )RUFRPSDUDWLYHSXUSRVHVSULPDULO\WKH
DGRSWLRQRIQHZDFFRXQWLQJJXLGDQFHIRUQRQFRQWUROOLQJLQWHUHVWVDQG
WKHUHYLVLRQWR)&;ҋVSUHVHQWDWLRQRILWVEXVLQHVVVHJPHQWVFHUWDLQ
SULRU\HDUDPRXQWVKDYHEHHQUHFODVVLÀHGWRFRQIRUPZLWKWKHFXUUHQW
\HDUSUHVHQWDWLRQ
NOTE 2. Asset Impairments and Other Charges
$VXPPDU\RIORQJOLYHGDVVHWLPSDLUPHQWVRWKHUWKDQJRRGZLOODQG
RWKHUFKDUJHVUHFRUGHGGXULQJWKH\HDUVHQGHG'HFHPEHU
DQGIROORZVUHIHUWR1RWHIRUORQJOLYHGDVVHWLPSDLUPHQWV
DQGRWKHUFKDUJHVE\)&;ҋVUHSRUWDEOHVHJPHQWV
2009 
&LW\RI%ODFNZHOOSDUWLDOOLWLJDWLRQVHWWOHPHQW   $54  ³
5HVWUXFWXULQJFRVWV   32  
3HQVLRQDQGSRVWUHWLUHPHQWVSHFLDOEHQHÀWV
DQGFXUWDLOPHQWV   (9)  
/RQJOLYHGDVVHWLPSDLUPHQWV    
 7RWDOORQJOLYHGDVVHWLPSDLUPHQWVDQGRWKHUFKDUJHV$77 
,Q)&;UHFRJQL]HGDFKDUJHRIPLOOLRQPLOOLRQWRQHW
LQFRPHDWWULEXWDEOHWR)&;FRPPRQVWRFNKROGHUVRUSHUGLOXWHG
VKDUHIRUWKHSDUWLDOVHWWOHPHQWRIWKH&LW\RI%ODFNZHOOODZVXLW
UHIHUWR1RWHIRUIXUWKHUGLVFXVVLRQ
$OVRLQ)&;UHFRJQL]HGFKDUJHVUHODWLQJWRLWVUHYLVHG
RSHUDWLQJSODQVLQWKHIRXUWKTXDUWHURIDQG-DQXDU\DV
GLVFXVVHGEHORZIRULUHVWUXFWXULQJFRVWVWRWDOLQJPLOOLRQ
PLOOLRQWRQHWLQFRPHDWWULEXWDEOHWR)&;FRPPRQVWRFNKROGHUVRU
SHUGLOXWHGVKDUHIRUFRQWUDFWWHUPLQDWLRQFRVWVRWKHUSURMHFW
FDQFHOODWLRQFRVWVDQGHPSOR\HHVHYHUDQFHDQGEHQHÀWFRVWVDQGLL
JDLQVRIPLOOLRQPLOOLRQWRQHWLQFRPHDWWULEXWDEOHWR)&;
FRPPRQVWRFNKROGHUVRUSHUGLOXWHGVKDUHIRUSHQVLRQDQG
SRVWUHWLUHPHQWVSHFLDOUHWLUHPHQWEHQHÀWVDQGFXUWDLOPHQWV