Freeport-McMoRan 2013 Annual Report Download - page 62

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MANAGEMENT’S DISCUSSION AND ANALYSIS
60 | FREEPORT-McMoRan
Following is a summary of estimated annual payments
and the impact of changes in foreign currency rates on our
annual operating costs:
10% Change
Exchange Rate per $1 in Exchange Rate
at December 31, Estimated Annual Payments (in millions)a
2013 2012 2011 (in local currency) (in millions)
b
Increase Decrease
Indonesia
Rupiah 12,128 9,622 9,060 7.5 trillion $ 618 $ (56) $ 69
Australian dollar 1.12 0.93 0.98 300 million $ 267 $ (24) $ 30
South America
Chilean peso 525 480 519 350 billion $ 667 $ (61) $ 74
Peruvian nuevo sol 2.80 2.55 2.70 570 million $ 204 $ (19) $ 23
Atlantic Copper
Euro 0.73 0.76 0.77 130 million $ 179 $ (16) $ 20
a. Reflects the estimated impact on annual operating costs assuming a 10 percent increase or decrease in the exchange rate reported at December 31, 2013.
b. Based on December 31, 2013, exchange rates.
Interest Rate Risk
At December 31, 2013, we had total debt maturities of $20.1 billion,
of which approximately 20 percent was variable-rate debt
with interest rates based on the London Interbank Offered Rate
or the Euro Interbank Offered Rate. The table below presents
average interest rates for our scheduled maturities of principal
for our outstanding debt (excluding fair value adjustments)
and the related fair values at December 31, 2013 (in millions,
except percentages):
2014 2015 2016 2017 2018 Thereafter Fair Value
Fixed-rate debt $ 5 $ 502 $ 1 $ 500 $ 1,500 $ 13,397 $ 16,345
Average interest rate 6.8% 1.4% 6.7% 2.2% 2.4% 5.4% 4.9%
Variable-rate debt $ 307 $ 550 $ 750 $ 200 $ 2,200 $ 142 $ 4,142
Average interest rate 1.6% 1.7% 1.7% 1.7% 1.7% 3.8% 1.7%