Freeport-McMoRan 2005 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2005 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 95

  • 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

฀61฀|฀2005฀ANNUAL฀REPORT฀฀฀FINANCIAL฀&฀OPERATING฀INFORMATION
Consolidated Statements of Cash Flows
Years฀Ended฀December฀31,฀ 2005฀ 2004฀ 2003
(In฀Thousands)
Cash฀flow฀from฀operating฀activities:
฀ Net฀income฀ ฀ ฀ ฀ ฀ $฀ 995,127฀ $฀ 202,267฀ $฀ 181,660
฀ ฀ Adjustments฀to฀reconcile฀net฀income฀to฀net฀cash฀provided฀by฀operating฀activities:
฀ ฀ ฀ Depreciation฀and฀amortization฀ ฀ ฀ ฀ ฀ ฀ 251,512฀ ฀ 206,408฀ ฀ 230,803
฀ ฀ ฀ Losses฀on฀early฀extinguishment฀and฀conversion฀of฀debt฀ ฀ ฀ ฀ ฀ ฀ 52,210฀ ฀ 14,011฀ ฀ 34,589
฀ ฀ ฀ Gains฀on฀sales฀of฀assets฀ ฀ ฀ ฀ ฀ ฀ (6,631)฀ ฀ (28,756)฀ ฀ —
฀ ฀ ฀ Cumulative฀effect฀of฀changes฀in฀accounting฀principles฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ 15,593
฀ ฀ ฀ Gain฀on฀redemption฀of฀Gold-Denominated฀and฀Silver-Denominated฀Preferred฀Stock฀ ฀ ฀ —฀ ฀ —฀ ฀ (23,832)
฀ ฀ ฀ Deferred฀income฀taxes฀ ฀ ฀ ฀ ฀ ฀ (32,347)฀ ฀ 76,253฀ ฀ 110,653
฀ ฀ ฀ Equity฀in฀PT฀Smelting฀earnings฀ ฀ ฀ ฀ ฀ ฀ (9,302)฀ ฀ (2,045)฀ ฀ (5,609)
฀ ฀ ฀ Minority฀interests’฀share฀of฀net฀income฀ ฀ ฀ ฀ ฀ ฀ 126,743฀ ฀ 41,437฀ ฀ 48,469
฀ ฀ ฀ Increase฀in฀deferred฀mining฀costs฀ ฀ ฀ ฀ ฀ ฀ (64,940)฀ ฀ (77,780)฀ ฀ (64,400)
฀ ฀ ฀ Amortization฀of฀deferred฀financing฀costs฀ ฀ ฀ ฀ ฀ ฀ 7,596฀ ฀ 8,501฀ ฀ 16,196
฀ ฀ ฀ Increase฀in฀long-term฀compensation฀benefits฀ ฀ ฀ ฀ ฀ ฀ 24,795฀ ฀ 2,830฀ ฀ 13,689
฀ ฀ ฀ Currency฀translation฀(gains)฀losses฀ ฀ ฀ ฀ ฀ ฀ (5,822)฀ ฀ 1,628฀ ฀ 13,561
฀ ฀ ฀ Equipment฀loss฀caused฀by฀pit฀slippage฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ 8,434
฀ ฀ ฀ Elimination฀(recognition)฀of฀profit฀on฀PT฀Freeport฀Indonesia฀sales฀to฀PT฀Smelting฀ ฀ ฀ 23,565฀ ฀ 13,798฀ ฀ (7,018)
฀ ฀ ฀ Provision฀for฀inventory฀obsolescence฀ ฀ ฀ ฀ ฀ ฀ 6,000฀ ฀ 4,916฀ ฀ 6,000
฀ ฀ ฀ Other฀ ฀ ฀ ฀ ฀ ฀ 5,191฀ ฀ 8,591฀ ฀ 11,084
฀ ฀ (Increases)฀decreases฀in฀working฀capital:
฀ ฀ ฀ Accounts฀receivable฀ ฀ ฀ ฀ ฀ ฀ (252,934)฀ ฀ (235,756)฀ ฀ 8,304
฀ ฀ ฀ Inventories฀ ฀ ฀ ฀ ฀ ฀ (108,225)฀ ฀ (91,744)฀ ฀ (30,607)
฀ ฀ ฀ Prepaid฀expenses฀and฀other฀ ฀ ฀ ฀ ฀ ฀ (45)฀ ฀ 34,304฀ ฀ (5,428)
฀ ฀ ฀ Accounts฀payable฀and฀accrued฀liabilities฀ ฀ ฀ ฀ ฀ ฀ 216,331฀ ฀ 97,781฀ ฀ 60,878
฀ ฀ ฀ Rio฀Tinto฀share฀of฀joint฀venture฀cash฀flows฀ ฀ ฀ ฀ ฀ ฀ 66,133฀ ฀ 17,793฀ ฀ (9,806)
฀ ฀ ฀ Accrued฀income฀taxes฀ ฀ ฀ ฀ ฀ ฀ 257,588฀ ฀ 46,918฀ ฀ (41,141)
฀ ฀ Decrease฀(increase)฀in฀working฀capital฀ ฀ ฀ ฀ ฀ ฀ 178,848฀ ฀ (130,704)฀ ฀ (17,800)
฀ ฀ ฀ Net฀cash฀provided฀by฀operating฀activities฀ ฀ ฀ ฀ ฀ ฀1,552,545฀ ฀ 341,355฀ ฀ 572,072
฀
Cash฀flow฀from฀investing฀activities:
฀ PT฀Freeport฀Indonesia฀capital฀expenditures฀ ฀ ฀ ฀ ฀ ฀ (129,190)฀ ฀ (119,207)฀ ฀ (129,245)
฀ Atlantic฀Copper฀and฀other฀capital฀expenditures฀ ฀ ฀ ฀ ฀ ฀ (13,796)฀ ฀ (21,792)฀ ฀ (9,941)
฀ Sale฀of฀assets฀ ฀ ฀ ฀ ฀ ฀ 6,631฀ ฀ 39,885฀ ฀ 2,020
฀ Proceeds฀from฀insurance฀settlement฀ ฀ ฀ ฀ ฀ ฀ 2,016฀ ฀ 6,261฀ ฀ —
฀ Sale฀of฀restricted฀investments฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ 21,804฀ ฀ 73,629
฀ Decrease฀in฀Atlantic฀Copper฀restricted฀cash฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ 11,000฀ ฀ —
฀ Investment฀in฀PT฀Smelting฀and฀other฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ (1,923)฀ ฀ (1,154)
฀ Investment฀in฀PT฀Puncakjaya฀Power,฀net฀of฀cash฀acquired฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ (68,127)
฀ ฀ Net฀cash฀used฀in฀investing฀activities฀ ฀ ฀ ฀ ฀ ฀ (134,339)฀ ฀ (63,972)฀ ฀ (132,818)
Cash฀flow฀from฀financing฀activities:
฀ Net฀proceeds฀from฀sales฀of฀senior฀notes฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ 344,354฀ ฀1,046,437
฀ Proceeds฀from฀other฀debt฀฀ ฀ ฀ ฀ ฀ ฀ 66,058฀ ฀ 96,122฀ ฀ 56,698
฀ Repayments฀of฀debt฀ ฀ ฀ ฀ ฀ ฀ (559,071)฀ ฀ (470,472)฀ ฀(1,065,663)
฀ Redemption฀of฀step-up฀preferred฀stock฀ ฀ ฀ ฀ ฀ ฀ (215)฀ ฀ (1,172)฀ ฀ (5,792)
฀ Net฀proceeds฀from฀sale฀of฀convertible฀perpetual฀preferred฀stock฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀1,067,000฀ ฀ —
฀ Purchase฀of฀FCX฀common฀shares฀from฀Rio฀Tinto฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ (881,868)฀ ฀ —
฀ Purchases฀of฀other฀FCX฀common฀shares฀ ฀ ฀ ฀ ฀ ฀ (80,227)฀ ฀ (99,477)฀ ฀ —
฀ Cash฀dividends฀paid:
฀ ฀ Common฀stock฀ ฀ ฀ ฀ ฀ ฀ (452,510)฀ ฀ (198,782)฀ ฀ (41,682)
฀ ฀ Preferred฀stock฀ ฀ ฀ ฀ ฀ ฀ (60,501)฀ ฀ (35,470)฀ ฀ (33,733)
฀ ฀ Minority฀interests฀ ฀ ฀ ฀ ฀ ฀ (124,636)฀ ฀ (11,447)฀ ฀ (1,623)
Net฀proceeds฀from฀exercised฀stock฀options฀ ฀ ฀ ฀ ฀ ฀ 5,081฀ ฀ 3,196฀ ฀ 68,776
Bank฀credit฀facilities฀fees฀and฀other฀ ฀ ฀ ฀ ฀ ฀ (36)฀ ฀ (1,569)฀ ฀ (6,856)
฀ Net฀cash฀(used฀in)฀provided฀by฀financing฀activities฀ ฀ ฀ ฀ ฀ ฀(1,206,057)฀ ฀ (189,585)฀ ฀ 16,562
Net฀increase฀in฀cash฀and฀cash฀equivalents฀ ฀ ฀ ฀ ฀ ฀ 212,149฀ ฀ 87,798฀ ฀ 455,816
Cash฀and฀cash฀equivalents฀at฀beginning฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 551,450฀ ฀ 463,652฀ ฀ 7,836
Cash฀and฀cash฀equivalents฀at฀end฀of฀year฀ ฀ ฀ ฀ ฀ $฀ 763,599฀ $฀ 551,450฀ $฀ 463,652
Interest฀paid฀ ฀ ฀ ฀ ฀ $฀ 139,824฀ $฀ ฀143,958฀ $฀ 163,513
Income฀taxes฀paid฀฀ ฀ ฀ ฀ ฀ $฀ 670,240฀ $฀ 178,379฀ $฀ 268,796
The฀accompanying฀Notes฀to฀Consolidated฀Financial฀Statements,฀which฀include฀information฀regarding฀noncash฀transactions,฀are฀an฀integral฀part฀of฀these฀
financial฀statements.