Freeport-McMoRan 2004 Annual Report Download - page 79

Notes To Consolidated Financial Statements
฀ Mining฀and฀ Smelting฀and฀ Eliminations
฀ Exploration฀ Refining฀ and฀Other฀ FCX฀Total
(In฀Thousands)฀
2004
Revenues฀ ฀ ฀ ฀ $฀1,746,573a฀ $฀873,700฀ $฀(248,407)฀ $฀2,371,866
Production฀and฀delivery฀ ฀ ฀ ฀ 760,131฀ ฀914,452฀ ฀(224,292)b฀ ฀1,450,291
Depreciation฀and฀amortization฀ ฀ ฀ ฀ 168,195฀ ฀ 28,632฀ ฀ 9,581฀ ฀ 206,408
Exploration฀expenses฀ ฀ ฀ ฀ 8,471฀ ฀ —฀ ฀ 193฀ ฀ 8,664
General฀and฀administrative฀expenses฀ ฀ ฀ ฀ 151,944c฀ ฀ 14,196฀ ฀ (76,213)c฀ ฀ 89,927
Gain฀on฀insurance฀settlement฀ ฀ ฀ ฀ (87,000)฀ ฀ —฀ ฀ —฀ ฀ (87,000)
Operating฀income฀(loss)฀ ฀ ฀ $฀ 744,832฀ $฀(83,580)฀ $฀ 42,324฀ $฀ 703,576
Equity฀in฀PT฀Smelting฀earnings฀ ฀ ฀ $฀ —฀ $฀ 2,045฀ $฀ —฀ $฀ 2,045
Interest฀expense,฀net฀ ฀ ฀ $฀ 22,209฀ $฀ 13,783฀ $฀ 112,111฀ $฀ 148,103
Provision฀for฀income฀taxes฀ $฀ 266,372฀ $฀ —฀ $฀ 64,308฀ $฀ 330,680
Capital฀expenditures฀ $฀ 119,426฀ $฀ 21,792฀ $฀ (219)฀ $฀ 140,999
Total฀assets฀ $฀4,070,767d฀ $฀753,883e฀ $฀ 262,345฀ $฀5,086,995
฀฀฀฀฀฀฀
2003
Revenues฀ $฀1,744,580a฀ $฀910,417฀ $฀(442,832)฀ $฀2,212,165
Production฀and฀delivery฀ ฀ 631,951฀ ฀892,681฀ ฀(453,306)b฀ ฀1,071,326
Depreciation฀and฀amortization฀ ฀ 190,450฀ ฀ 28,464฀ ฀ 11,889฀ ฀ 230,803
Exploration฀expenses฀ ฀ 6,284฀ ฀ —฀ ฀ 165฀ ฀ 6,449
General฀and฀administrative฀expenses฀ ฀ ฀ ฀ 123,408c฀ ฀ 11,023฀ ฀ (54,152)c฀ ฀ 80,279
Operating฀income฀(loss)฀ ฀ ฀ $฀ 792,487฀ $฀(21,751)฀ $฀ 52,572฀ $฀ 823,308
Equity฀in฀PT฀Smelting฀earnings฀ ฀ ฀ $฀ —฀ $฀ 5,609฀ $฀ —฀ $฀ 5,609
Interest฀expense,฀net฀ ฀ ฀ $฀ 44,861฀ $฀ 16,675฀ $฀ 135,481฀ $฀ 197,017
Provision฀for฀income฀taxes฀ ฀ ฀ $฀ 273,378฀ $฀ —฀ $฀ 64,675฀ $฀ 338,053
Capital฀expenditures฀ ฀ ฀ $฀ 129,029฀ $฀ 9,941฀ $฀ 216฀ $฀ 139,186
Total฀assets฀ ฀ ฀ $฀3,656,714d฀ $฀689,213e฀ $฀ 372,439฀ $฀4,718,366
2002
Revenues฀ $฀1,519,010a฀ $฀768,680฀ $฀(377,228)฀ $฀1,910,462
Production฀and฀delivery฀ ฀ 554,870฀ ฀729,789฀ ฀(346,197)b฀ ฀ 938,462
Depreciation฀and฀amortization฀ ฀ 218,716฀ ฀ 27,652฀ ฀ 14,078฀ ฀ 260,446
Exploration฀expenses฀ ฀ 2,965฀ ฀ —฀ ฀ 147฀ ฀ 3,112
General฀and฀administrative฀expenses฀ ฀ ฀ ฀ 55,302c฀ ฀ 8,675฀ ฀ 4,328c฀ ฀ 68,305
Operating฀income฀(loss)฀ ฀ ฀ $฀ 687,157฀ $฀ ฀2,564฀ $฀ (49,584)฀ $฀ 640,137
Equity฀in฀PT฀Smelting฀losses฀ ฀ ฀ $฀ —฀ $฀ 4,181฀ $฀ —฀ $฀ 4,181
Interest฀expense,฀net฀ ฀ ฀ $฀ 71,424฀ $฀ 18,436฀ $฀ 81,349฀ $฀ 171,209
Provision฀for฀income฀taxes฀ ฀ ฀ $฀ 221,527฀ $฀ —฀ $฀ 23,991฀ $฀ 245,518
Capital฀expenditures฀ ฀ ฀ $฀ 181,092฀ $฀ 5,108฀ $฀ 1,804฀ $฀ 188,004
Total฀assets฀ ฀ ฀ $฀3,339,449d฀ $฀650,640e฀ $฀ 202,104฀ $฀4,192,193
a.฀ Includes฀PT฀Freeport฀Indonesia’s฀sales฀to฀PT฀Smelting฀totaling฀$696.0฀million฀in฀2004,฀$510.2฀million฀in฀2003฀and฀$391.1฀million฀in฀2002.
b.฀ Includes฀deferrals฀(recognition)฀of฀intercompany฀profits฀on฀25฀percent฀of฀PT฀Freeport฀Indonesia’s฀sales฀to฀PT฀Smelting,฀for฀which฀the฀final฀sale฀has฀not฀occurred,฀totaling฀
$13.8฀million฀in฀2004,฀$(7.0)฀million฀in฀2003฀and฀$8.4฀million฀in฀2002.
c.฀ Includes฀charges฀to฀the฀mining฀and฀exploration฀segment฀for฀FCX฀stock฀option฀exercises฀which฀are฀eliminated฀in฀consolidation฀totaling฀$87.3฀million฀in฀2004,฀$57.8฀million฀in฀
2003฀and฀$5.5฀million฀in฀2002.
d.฀ Includes฀PT฀Freeport฀Indonesia’s฀trade฀receivables฀with฀PT฀Smelting฀totaling฀$87.5฀million฀at฀December฀31,฀2004,฀$33.5฀million฀at฀December฀31,฀2003,฀and฀$51.2฀million฀at฀
December฀31,฀2002.
e.฀ Includes฀PT฀Freeport฀Indonesia’s฀equity฀investment฀in฀PT฀Smelting฀totaling฀$47.8฀million฀at฀December฀31,฀2004,฀$58.2฀million฀at฀December฀31,฀2003,฀and฀$44.6฀million฀at฀
December฀31,฀2002.
2004 ANNUAL REPORT |฀77