Freeport-McMoRan 2009 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2009 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 108

  • 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
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
  -9,,769;4J4V9HU*677,9.63+05* 87
   (UU\HS9LWVY[
PHDQLQJWKDWHDFKRZQHURURSHUDWRURI WKHSURSHUW\LVIXOO\
UHVSRQVLEOHIRUWKHFOHDQXSDOWKRXJKLQPDQ\FDVHVVRPHRUDOORI
WKHRWKHUKLVWRULFDORZQHUVRURSHUDWRUVQRORQJHUH[LVWGRQRWKDYH
WKHÀQDQFLDODELOLW\WRUHVSRQGRUFDQQRWEHIRXQG$VDUHVXOW
EHFDXVHRI)&;ҋVDFTXLVLWLRQRI3KHOSV'RGJHLQPDQ\RIWKH
VXEVLGLDU\FRPSDQLHV)&;QRZRZQVDUHUHVSRQVLEOHIRUDZLGH
YDULHW\RIHQYLURQPHQWDOUHPHGLDWLRQSURMHFWVWKURXJKRXWWKH86
)&;H[SHFWVWRVSHQGVXEVWDQWLDOVXPVDQQXDOO\IRUPDQ\\HDUVWR
DGGUHVVWKRVHUHPHGLDWLRQLVVXHV&HUWDLQ)&;VXEVLGLDULHVKDYH
EHHQDGYLVHGE\WKH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\(3$
WKH'HSDUWPHQWRIWKH,QWHULRUWKH'HSDUWPHQWRI$JULFXOWXUHDQG
VHYHUDOVWDWHDJHQFLHVWKDWXQGHU&(5&/$ RUVLPLODUVWDWHODZVDQG
UHJXODWLRQVWKH\PD\EHOLDEOHIRUFRVWVRIUHVSRQGLQJWR
HQYLURQPHQWDOFRQGLWLRQVDWDQXPEHURIVLWHVWKDWKDYHEHHQRUDUH
EHLQJLQYHVWLJDWHGWRGHWHUPLQHZKHWKHUUHOHDVHVRIKD]DUGRXV
VXEVWDQFHVKDYHRFFXUUHGDQGLIVRWRGHYHORSDQGLPSOHPHQW
UHPHGLDODFWLRQVWRDGGUHVVHQYLURQPHQWDOFRQFHUQV$VRI
'HFHPEHU)&;KDGPRUHWKDQDFWLYHUHPHGLDWLRQ
SURMHFWVLQWKH86LQDSSUR[LPDWHO\VWDWHV)&;LVDOVRVXEMHFWWR
FODLPVZKHUHWKHUHOHDVHRIKD]DUGRXVVXEVWDQFHVLVDOOHJHGWRKDYH
GDPDJHGQDWXUDOUHVRXUFHV
$VXPPDU\RIFKDQJHVLQHQYLURQPHQWDOREOLJDWLRQVIRUWKH\HDUV
HQGHG'HFHPEHUDQGIROORZV
2009  
%DODQFHDWEHJLQQLQJRI\HDU$1,401   ³
/LDELOLWLHVDVVXPHGLQWKHDFTXLVLWLRQ
RI3KHOSV'RGJH    
$FFUHWLRQH[SHQVHD102    ³
$GGLWLRQV 40   
5HGXFWLRQV (3)   
6SHQGLQJ (76)   
%DODQFHDWHQGRI\HDU1,464  
/HVVFXUUHQWSRUWLRQ (168)   
/RQJWHUPSRUWLRQ $1,296  
H 9LWYLZLU[ZHJJYL[PVUVM[OLMHPY]HS\LVMLU]PYVUTLU[HSVISPNH[PVUZHZZ\TLKPU[OL
HJX\PZP[PVUVM7OLSWZ+VKNL^OPJO^LYLKL[LYTPULKVUHKPZJV\U[LKJHZOÅV^IHZPZ
(VWLPDWHGHQYLURQPHQWDO FDVKSD\PHQWVRQDQXQGLVFRXQWHGDQG
XQHVFDODWHGEDVLVWRWDOPLOOLRQLQPLOOLRQLQ
PLOOLRQLQDQGPLOOLRQLQDQGELOOLRQ
WKHUHDIWHU
$VDUHVXOWRIWKHDFTXLVLWLRQRI3KHOSV'RGJH)&;ZDVUHTXLUHGWR
UHFRUG3KHOSV'RGJHҋVHQYLURQPHQWDOREOLJDWLRQVDWIDLUYDOXHRQWKH
DFTXLVLWLRQGDWHLQDFFRUGDQFHZLWKEXVLQHVVFRPELQDWLRQDFFRXQWLQJ
JXLGDQFH$WWKHDFTXLVLWLRQGDWH3KHOSV'RGJHҋVKLVWRULFDO
HQYLURQPHQWDOREOLJDWLRQVRIPLOOLRQEHIRUHSXUFKDVHDFFRXQWLQJ
DGMXVWPHQWVWRIDLUYDOXHZHUHEDVHGRQDFFRXQWLQJJXLGDQFHWKDW
UHTXLUHVDQHVWLPDWHGORVVEHUHFRUGHGIRUDORVVFRQWLQJHQF\LISULRU
WRWKHLVVXDQFHRIWKHÀQDQFLDOVWDWHPHQWVLWLVSUREDEOHWKDWDOLDELOLW\
KDGEHHQLQFXUUHGDQGWKHORVVFDQEHUHDVRQDEO\HVWLPDWHG$PRXQWV
UHFRUGHGXQGHUWKLVDFFRXQWLQJJXLGDQFHDUHJHQHUDOO\QRWFRQVLGHUHG
IDLUYDOXH)&;KDVDQHQYLURQPHQWDODQGOHJDOJURXSGHGLFDWHGWRWKH
RQJRLQJUHYLHZDQGPRQLWRULQJRIHQYLURQPHQWDOUHPHGLDWLRQVLWHV$W
WKHDFTXLVLWLRQGDWHWKHODUJHVWHQYLURQPHQWDOUHPHGLDWLRQVLWHVZHUH
XQGHUJRLQJVWXGLHVWRHYDOXDWHWKHH[WHQWRIWKHHQYLURQPHQWDOGDPDJH
DQGWKHDYDLODEOHUHPHGLHV$GYDQFHPHQWRIWKHVHVWXGLHVDQG
FRQVLGHUDWLRQRIDOWHUQDWLYHUHPHGLHVDQGFRVWVKDULQJDUUDQJHPHQWV
UHVXOWHGLQ)&;ҋVFDOFXODWLRQRIWKHHVWLPDWHGIDLUYDOXHVEHLQJ
DSSUR[LPDWHO\ELOOLRQJUHDWHUWKDQWKHKLVWRULFDO3KHOSV'RGJH
HVWLPDWHV)&;ÀQDOL]HGWKHDOORFDWLRQRIWKHSXUFKDVHSULFH
DVVRFLDWHGZLWKWKH3KHOSV'RGJHDFTXLVLWLRQLQWKHÀUVWTXDUWHURI
$VDUHVXOWWKHIDLUYDOXHRIWKHHQYLURQPHQWDOREOLJDWLRQV
ZDVHVWLPDWHGDWDSSUR[LPDWHO\ELOOLRQ6LJQLÀFDQWDGMXVWPHQWV
WRWKHVHREOLJDWLRQVFRXOGRFFXULQWKHIXWXUH1HZHQYLURQPHQWDO
REOLJDWLRQVZLOOEHUHFRUGHGDVGHVFULEHGLQ1RWHXQGHU
´(QYLURQPHQWDO([SHQGLWXUHVµ
)&;EHOLHYHVWKDWWKHUHPD\EHRWKHUSRWHQWLDOFODLPVIRU
UHFRYHU\IURPRWKHUWKLUGSDUWLHVLQFOXGLQJWKH86JRYHUQPHQWDQG
RWKHU353V7KHVH SRWHQWLDOUHFRYHULHVDUHQRWUHFRJQL]HGXQOHVV
UHDOL]DWLRQLVFRQVLGHUHGSUREDEOH
$W'HFHPEHUWKHPRVWVLJQLÀFDQWHQYLURQPHQWDO
REOLJDWLRQVDUHDVVRFLDWHGZLWKWKH3LQDO&UHHNVLWHWKH1HZWRZQ
&UHHNSURSRVHG6XSHUIXQGVLWHVHYHUDOKLVWRULFDOVPHOWHUVLWHV
SULQFLSDOO\ORFDWHGLQ$UL]RQD.DQVDVDQG2NODKRPDDQGXUDQLXP
PLQLQJVLWHVLQWKHZHVWHUQ867KHUHFRUGHGHQYLURQPHQWDO
REOLJDWLRQVIRUWKHVHVLWHVWRWDOHGELOOLRQDW'HFHPEHU
$GLVFXVVLRQRIWKHVHVLWHVIROORZV
Pinal Creek.7KH3LQDO&UHHNVLWHORFDWHGQHDU0LDPL$UL]RQDZDV
OLVWHGXQGHUWKH$UL]RQD'HSDUWPHQWRI(QYLURQPHQWDO4XDOLW\ҋV
$'(4:DWHU4XDOLW\$VVXUDQFH5HYROYLQJ)XQGSURJUDPLQIRU
FRQWDPLQDWLRQLQWKHVKDOORZDOOXYLDODTXLIHUVZLWKLQWKH3LQDO&UHHN
GUDLQDJHQHDU0LDPL$UL]RQD6LQFHWKDWWLPHHQYLURQPHQWDO
UHPHGLDWLRQKDVEHHQSHUIRUPHGE\WKHPHPEHUVRIWKH3LQDO&UHHN
*URXS3&*FRQVLVWLQJRI3KHOSV'RGJH0LDPL,QF0LDPLDZKROO\
RZQHGVXEVLGLDU\RI)0&DQGWZRRWKHUFRPSDQLHV,QWKH
'LVWULFW&RXUWDSSURYHGD&RQVHQW'HFUHHEHWZHHQWKH3&*PHPEHUV
DQGWKHVWDWHRI$UL]RQDUHVROYLQJDOOPDWWHUVUHODWHGWRDQHQIRUFHPHQW
DFWLRQFRQWHPSODWHGE\WKHVWDWHRI$UL]RQDDJDLQVWWKH3&*PHPEHUV
ZLWKUHVSHFWWRJURXQGZDWHUFRQWDPLQDWLRQ7KH&RQVHQW'HFUHH
FRPPLWWHGWKH3&*PHPEHUVWRFRPSOHWHWKHUHPHGLDWLRQZRUN
RXWOLQHGLQWKH&RQVHQW'HFUHHDQGWKDWZRUNFRQWLQXHVDWWKLVWLPH
DQGLVH[SHFWHGWRFRQWLQXHIRUPDQ\\HDUVLQWKHIXWXUH
)&;LVDSDUW\WR OLWLJDWLRQHQWLWOHG3LQDO&UHHN*URXSHWDOY
1HZPRQW0LQLQJ&RUSRUDWLRQHWDO8QLWHG6WDWHV'LVWULFW&RXUW
'LVWULFWRI$UL]RQD&DVH1R&,93+;'$(/2$ÀOHGRQ
0D\5HPHGLDWLRQFRVWVKDYHEHHQSDLGSXUVXDQWWRDQLQWHULP
FRVWVKDULQJDOORFDWLRQDPRQJWKHPHPEHUVRIWKH3&*ZLWK0LDPLҋV
LQWHULPDOORFDWLRQEHLQJDSSUR[LPDWHO\WZRWKLUGV+RZHYHUWKHUHKDYH
EHHQVLJQLÀFDQWGLVDJUHHPHQWVDPRQJWKHPHPEHUVRIWKH3&*
UHJDUGLQJWKHFRVWDOORFDWLRQZLWKRWKHUPHPEHUVDOOHJLQJLQWKHIHGHUDO
FRXUWSURFHHGLQJWKDW0LDPLVKRXOGEHUHVSRQVLEOHIRUVXEVWDQWLDOO\DOO