Freeport-McMoRan 2011 Annual Report Download - page 115

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2011 ANNUAL REPORT | 113
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19. Quarterly Financial Information (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
2011
Revenues $ 5,709 $ 5,814 $ 5,195 $ 4,162 $ 20,880
Operating income 2,936 2,757 2,150 1,297
a
9,140
a
Net income 1,861 1,726 1,294
b
866 5,747
b
Net income attributable to noncontrolling interests 362 358 241 226 1,187
Net income attributable to FCX common stockholders 1,499
c
1,368
c
1,053
b
640
a
4,560
a,b,c
Basic net income per share attributable to FCX common stockholders 1.58 1.44 1.11 0.67 4.81
Diluted net income per share attributable to FCX common stockholders 1.57
c
1.43
c
1.10
b
0.67
a
4.78
a,b,c
2010
Revenues $ 4,363 $ 3,864 $ 5,152 $ 5,603 $ 18,982
Operating income 2,048 1,424 2,499 3,097 9,068
Net income 1,215 832 1,533 1,964 5,544
Net income attributable to noncontrolling interests 270 168 355 415 1,208
Net income attributable to FCX common stockholders 897
d
649
d
1,178 1,549
d
4,273
d
Basic net income per share attributable to FCX common stockholders 1.04 0.71 1.25 1.64 4.67
Diluted net income per share attributable to FCX common stockholders 1.00
d
0.70
d
1.24 1.63
d
4.57
d
All references to income or losses per share are on a diluted basis.
a. Includes charges totaling $116 million ($50 million to net income attributable to common stock or $0.05 per share) for the fourth quarter and the year primarily associated with bonuses for new
labor agreements and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra.
b. Includes additional taxes of $57 million ($50 million net of noncontrolling interests or $0.05 per share) in the third quarter and $53 million ($49 million net of noncontrolling interests or $0.05 per
share) for the year associated with Peru’s new mining tax and royalty regime. Refer to Note 12 for further discussion.
c. Includes losses on early extinguishment of debt totaling $6 million ($0.01 per share) in the first quarter, $54 million ($0.06 per share) in the second quarter and $60 million ($0.06 per share) for the
year. Refer to Note 9 for further discussion.
d. Includes losses on early extinguishment of debt totaling $23 million ($0.02 per share) in the first quarter, $42 million ($0.05 per share) in the second quarter, $3 million (less than $0.01 per share) in
the fourth quarter and $71 million ($0.07 per share) for the year. Refer to Note 9 for further discussion.
NOTE 20. Subsequent Events
On February 7, 2012, the Board of Directors authorized an
increase in the cash dividend on FCX’s common stock from an
annual rate of $1.00 per share to $1.25 per share ($0.3125 per
share quarterly), with the rst quarterly dividend expected to be
paid on May 1, 2012.
In February 2012, FCX sold $500 million of 1.40% Senior Notes
due 2015, $500 million of 2.15% Senior Notes due 2017 and
$2.0 billion of 3.55% Senior Notes due 2022 for total net proceeds
of $2,971 million. Interest on the 1.40% Senior Notes is payable
semiannually on February 13 and August 13 commencing
on August 13, 2012. Interest on the 2.15% Senior Notes and the
3.55% Senior Notes is payable semiannually on March 1 and
September 1 commencing on September 1, 2012. e unsecured
senior notes rank equally with FCX’s other existing and future
unsecured and unsubordinated indebtedness. FCX intends to use
the proceeds from this oering plus cash on hand to redeem
the remaining $3.0 billion of its 8.375% Senior Notes due 2017.
On February 13, 2012, FCX announced its intent to redeem the
remaining $3.0 billion of the 8.375% Senior Notes due 2017 on
March 14, 2012. Holders will receive the principal amount together
with the make-whole premium and accrued and unpaid interest to
the redemption date. FCX expects to record a loss on early
extinguishment of debt of approximately $168 million
(approximately $147 million to net income attributable to FCX
common stockholders) in the rst quarter of 2012 in connection
with this redemption.
FCX evaluated events aer December 31, 2011, and through the
date the nancial statements were issued, and determined any
events or transactions occurring during this period that would
require recognition or disclosure are appropriately addressed in
these nancial statements.