Freeport-McMoRan 2007 Annual Report Download - page 28

FREEPORT-McMoRan COPPER & GOLD INC.
2007 Annual Report
26 Financial & Operating Information
Selected Financial and Operating Data
Years Ended December 31, 2007a 2006 2005 2004 2003
(In Millions, Except Per Share Amounts)
FCX CONSOLIDATED FINANCIAL DATA
Revenues $ 16,939b $ 5,791 $ 4,179 $ 2,372 $ 2,212
Operating income 6,555b,c 2,869 2,177 704d 823
Income from continuing operations (applicable to common stock) before
cumulative effect of accounting changes 2,734 1,396 935 157 170
Income from discontinued operations, net of taxes 35 – – – –
Cumulative effect of accounting changes, net – – – – (16)h
Net income applicable to common stock 2,769b,c,e,f 1,396e,f,g 935e,f 157d,e,f 154e
Basic net income per share of common stock:
Continuing operations $ 8.02 $ 7.32 $ 5.18 $ 0.86 $ 0.99
Discontinued operations 0.10 – – – –
Basic net income per share of common stock $ 8.12 $ 7.32 $ 5.18 $ 0.86 $ 0.99
Diluted net income per share of common stock:
Continuing operations $ 7.41 $ 6.63 $ 4.67 $ 0.85 $ 0.97
Discontinued operations 0.09 – – – –
Diluted net income per share of common stock $ 7.50b,c,e,f $ 6.63e,f,g $ 4.67e,f $ 0.85d,e,f $ 0.97e,h
Basic average shares outstanding 341 191 180 182 156
Diluted average shares outstanding 397 221 220 185 159
Dividends declared per common share $ 1.375 $ 5.0625 $ 2.50 $ 1.10 $ 0.27
At December 31:
Cash and cash equivalents $ 1,626 $ 907 $ 764 $ 552 $ 499
Property, plant, equipment and development costs, net 25,715 3,099 3,089 3,199 3,262
Goodwill 6,105 – – – –
Total assets 40,661 5,390g 5,550 5,087 4,718
Long-term debt, including current portion and short-term borrowings 7,211 680 1,256 1,952 2,228
Total stockholders’ equity 18,234 2,445g 1,843 1,164 776
The selected consolidated financial data shown above is derived from our audited consolidated financial statements. These historical results are not necessarily indicative
of results that you can expect for any future period. You should read this data in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of
Operations and our full consolidated financial statements and notes thereto contained in this annual report.
a. Includes the results of Phelps Dodge Corporation (Phelps Dodge) beginning March 20, 2007.
b. Includes charges to revenues for mark-to-market accounting adjustments on the 2007 copper price protection program assumed in the acquisition of Phelps Dodge totaling $175 million ($106 million to net income or $0.27
per share).
c. Includes purchase accounting impacts of $1.3 billion ($793 million to net income or $2.00 per share) related to the acquisition of Phelps Dodge.
d. Includes a $95 million ($49 million to net income or $0.26 per share) gain on insurance settlement related to the fourth-quarter 2003 slippage and debris flow events at the Grasberg open pit and a $12 million ($12 million to
net income or $0.06 per share) charge related to Atlantic Copper’s workforce reduction plan.
e. Includes net losses on early extinguishment of debt totaling $132 million ($0.33 per share) in 2007, $30 million ($0.14 per share) in 2006, $40 million ($0.18 per share) in 2005, $7 million ($0.04 per share) in 2004 and
$32 million ($0.20 per share) in 2003.
f. Includes gains of $52 million ($0.13 per share) in 2007 related to sales of marketable securities, $30 million ($0.13 per share) in 2006 related to the disposition of land and certain royalty rights at Atlantic Copper, $5 million
($0.02 per share) in 2005 and $20 million ($0.11 per share) in 2004 from the sale of land in Arizona held by an FCX joint venture, and an additional $7 million ($0.04 per share) in 2004 from Atlantic Copper’s sale of its wire
rod and wire assets.
g. Effective January 1, 2006, we adopted Emerging Issues Task Force Issue No. 04-6, “Accounting for Stripping Costs Incurred during Production in the Mining Industry” (EITF 04-6), and recorded our deferred mining costs asset
($285 million) as of December 31, 2005, net of taxes, minority interest share and inventory effects ($136 million), as a cumulative effect adjustment to reduce beginning retained earnings. As a result of adopting EITF 04-6,
income from continuing operations before income taxes and minority interests was $35 million lower and net income was $19 million ($0.08 per share) lower than if we had not adopted EITF 04-6. Effective January 1, 2006,
we also adopted Statement of Financial Accounting Standards (SFAS) No. 123 (revised 2004), “Share-Based Payment” (SFAS No. 123R). As a result of adopting SFAS No. 123R, income from continuing operations before
income taxes and minority interests was $28 million lower and net income was $16 million ($0.07 per share) lower than if we had not adopted SFAS No. 123R. Results for prior years have not been restated.
h. Effective January 1, 2003, we adopted SFAS No. 143, “Accounting for Asset Retirement Obligations,” and recorded a $9 million ($0.06 per share) cumulative effect gain. Effective July 1, 2003, we adopted SFAS No. 150,
“Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity,” and recorded a $25 million ($0.16 per share) cumulative effect charge.