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.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
-9,,769;4J4V9HU*677,9.63+05* 87
(UU\HS9LWVY[
PHDQLQJWKDWHDFKRZQHURURSHUDWRURI WKHSURSHUW\LVIXOO\
UHVSRQVLEOHIRUWKHFOHDQXSDOWKRXJKLQPDQ\FDVHVVRPHRUDOORI
WKHRWKHUKLVWRULFDORZQHUVRURSHUDWRUVQRORQJHUH[LVWGRQRWKDYH
WKHÀQDQFLDODELOLW\WRUHVSRQGRUFDQQRWEHIRXQG$VDUHVXOW
EHFDXVHRI)&;ҋVDFTXLVLWLRQRI3KHOSV'RGJHLQPDQ\RIWKH
VXEVLGLDU\FRPSDQLHV)&;QRZRZQVDUHUHVSRQVLEOHIRUDZLGH
YDULHW\RIHQYLURQPHQWDOUHPHGLDWLRQSURMHFWVWKURXJKRXWWKH86
)&;H[SHFWVWRVSHQGVXEVWDQWLDOVXPVDQQXDOO\IRUPDQ\\HDUVWR
DGGUHVVWKRVHUHPHGLDWLRQLVVXHV&HUWDLQ)&;VXEVLGLDULHVKDYH
EHHQDGYLVHGE\WKH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\(3$
WKH'HSDUWPHQWRIWKH,QWHULRUWKH'HSDUWPHQWRI$JULFXOWXUHDQG
VHYHUDOVWDWHDJHQFLHVWKDWXQGHU&(5&/$ RUVLPLODUVWDWHODZVDQG
UHJXODWLRQVWKH\PD\EHOLDEOHIRUFRVWVRIUHVSRQGLQJWR
HQYLURQPHQWDOFRQGLWLRQVDWDQXPEHURIVLWHVWKDWKDYHEHHQRUDUH
EHLQJLQYHVWLJDWHGWRGHWHUPLQHZKHWKHUUHOHDVHVRIKD]DUGRXV
VXEVWDQFHVKDYHRFFXUUHGDQGLIVRWRGHYHORSDQGLPSOHPHQW
UHPHGLDODFWLRQVWRDGGUHVVHQYLURQPHQWDOFRQFHUQV$VRI
'HFHPEHU)&;KDGPRUHWKDQDFWLYHUHPHGLDWLRQ
SURMHFWVLQWKH86LQDSSUR[LPDWHO\VWDWHV)&;LVDOVRVXEMHFWWR
FODLPVZKHUHWKHUHOHDVHRIKD]DUGRXVVXEVWDQFHVLVDOOHJHGWRKDYH
GDPDJHGQDWXUDOUHVRXUFHV
$VXPPDU\RIFKDQJHVLQHQYLURQPHQWDOREOLJDWLRQVIRUWKH\HDUV
HQGHG'HFHPEHUDQGIROORZV
2009
%DODQFHDWEHJLQQLQJRI\HDU$1,401 ³
/LDELOLWLHVDVVXPHGLQWKHDFTXLVLWLRQ
RI3KHOSV'RGJH —
$FFUHWLRQH[SHQVHD102 ³
$GGLWLRQV 40
5HGXFWLRQV (3)
6SHQGLQJ (76)
%DODQFHDWHQGRI\HDU1,464
/HVVFXUUHQWSRUWLRQ (168)
/RQJWHUPSRUWLRQ $1,296
H 9LWYLZLU[ZHJJYL[PVUVM[OLMHPY]HS\LVMLU]PYVUTLU[HSVISPNH[PVUZHZZ\TLKPU[OL
HJX\PZP[PVUVM7OLSWZ+VKNL^OPJO^LYLKL[LYTPULKVUHKPZJV\U[LKJHZOÅV^IHZPZ
(VWLPDWHGHQYLURQPHQWDO FDVKSD\PHQWVRQDQXQGLVFRXQWHGDQG
XQHVFDODWHGEDVLVWRWDOPLOOLRQLQPLOOLRQLQ
PLOOLRQLQDQGPLOOLRQLQDQGELOOLRQ
WKHUHDIWHU
$VDUHVXOWRIWKHDFTXLVLWLRQRI3KHOSV'RGJH)&;ZDVUHTXLUHGWR
UHFRUG3KHOSV'RGJHҋVHQYLURQPHQWDOREOLJDWLRQVDWIDLUYDOXHRQWKH
DFTXLVLWLRQGDWHLQDFFRUGDQFHZLWKEXVLQHVVFRPELQDWLRQDFFRXQWLQJ
JXLGDQFH$WWKHDFTXLVLWLRQGDWH3KHOSV'RGJHҋVKLVWRULFDO
HQYLURQPHQWDOREOLJDWLRQVRIPLOOLRQEHIRUHSXUFKDVHDFFRXQWLQJ
DGMXVWPHQWVWRIDLUYDOXHZHUHEDVHGRQDFFRXQWLQJJXLGDQFHWKDW
UHTXLUHVDQHVWLPDWHGORVVEHUHFRUGHGIRUDORVVFRQWLQJHQF\LISULRU
WRWKHLVVXDQFHRIWKHÀQDQFLDOVWDWHPHQWVLWLVSUREDEOHWKDWDOLDELOLW\
KDGEHHQLQFXUUHGDQGWKHORVVFDQEHUHDVRQDEO\HVWLPDWHG$PRXQWV
UHFRUGHGXQGHUWKLVDFFRXQWLQJJXLGDQFHDUHJHQHUDOO\QRWFRQVLGHUHG
IDLUYDOXH)&;KDVDQHQYLURQPHQWDODQGOHJDOJURXSGHGLFDWHGWRWKH
RQJRLQJUHYLHZDQGPRQLWRULQJRIHQYLURQPHQWDOUHPHGLDWLRQVLWHV$W
WKHDFTXLVLWLRQGDWHWKHODUJHVWHQYLURQPHQWDOUHPHGLDWLRQVLWHVZHUH
XQGHUJRLQJVWXGLHVWRHYDOXDWHWKHH[WHQWRIWKHHQYLURQPHQWDOGDPDJH
DQGWKHDYDLODEOHUHPHGLHV$GYDQFHPHQWRIWKHVHVWXGLHVDQG
FRQVLGHUDWLRQRIDOWHUQDWLYHUHPHGLHVDQGFRVWVKDULQJDUUDQJHPHQWV
UHVXOWHGLQ)&;ҋVFDOFXODWLRQRIWKHHVWLPDWHGIDLUYDOXHVEHLQJ
DSSUR[LPDWHO\ELOOLRQJUHDWHUWKDQWKHKLVWRULFDO3KHOSV'RGJH
HVWLPDWHV)&;ÀQDOL]HGWKHDOORFDWLRQRIWKHSXUFKDVHSULFH
DVVRFLDWHGZLWKWKH3KHOSV'RGJHDFTXLVLWLRQLQWKHÀUVWTXDUWHURI
$VDUHVXOWWKHIDLUYDOXHRIWKHHQYLURQPHQWDOREOLJDWLRQV
ZDVHVWLPDWHGDWDSSUR[LPDWHO\ELOOLRQ6LJQLÀFDQWDGMXVWPHQWV
WRWKHVHREOLJDWLRQVFRXOGRFFXULQWKHIXWXUH1HZHQYLURQPHQWDO
REOLJDWLRQVZLOOEHUHFRUGHGDVGHVFULEHGLQ1RWHXQGHU
´(QYLURQPHQWDO([SHQGLWXUHVµ
)&;EHOLHYHVWKDWWKHUHPD\EHRWKHUSRWHQWLDOFODLPVIRU
UHFRYHU\IURPRWKHUWKLUGSDUWLHVLQFOXGLQJWKH86JRYHUQPHQWDQG
RWKHU353V7KHVH SRWHQWLDOUHFRYHULHVDUHQRWUHFRJQL]HGXQOHVV
UHDOL]DWLRQLVFRQVLGHUHGSUREDEOH
$W'HFHPEHUWKHPRVWVLJQLÀFDQWHQYLURQPHQWDO
REOLJDWLRQVDUHDVVRFLDWHGZLWKWKH3LQDO&UHHNVLWHWKH1HZWRZQ
&UHHNSURSRVHG6XSHUIXQGVLWHVHYHUDOKLVWRULFDOVPHOWHUVLWHV
SULQFLSDOO\ORFDWHGLQ$UL]RQD.DQVDVDQG2NODKRPDDQGXUDQLXP
PLQLQJVLWHVLQWKHZHVWHUQ867KHUHFRUGHGHQYLURQPHQWDO
REOLJDWLRQVIRUWKHVHVLWHVWRWDOHGELOOLRQDW'HFHPEHU
$GLVFXVVLRQRIWKHVHVLWHVIROORZV
Pinal Creek.7KH3LQDO&UHHNVLWHORFDWHGQHDU0LDPL$UL]RQDZDV
OLVWHGXQGHUWKH$UL]RQD'HSDUWPHQWRI(QYLURQPHQWDO4XDOLW\ҋV
$'(4:DWHU4XDOLW\$VVXUDQFH5HYROYLQJ)XQGSURJUDPLQIRU
FRQWDPLQDWLRQLQWKHVKDOORZDOOXYLDODTXLIHUVZLWKLQWKH3LQDO&UHHN
GUDLQDJHQHDU0LDPL$UL]RQD6LQFHWKDWWLPHHQYLURQPHQWDO
UHPHGLDWLRQKDVEHHQSHUIRUPHGE\WKHPHPEHUVRIWKH3LQDO&UHHN
*URXS3&*FRQVLVWLQJRI3KHOSV'RGJH0LDPL,QF0LDPLDZKROO\
RZQHGVXEVLGLDU\RI)0&DQGWZRRWKHUFRPSDQLHV,QWKH
'LVWULFW&RXUWDSSURYHGD&RQVHQW'HFUHHEHWZHHQWKH3&*PHPEHUV
DQGWKHVWDWHRI$UL]RQDUHVROYLQJDOOPDWWHUVUHODWHGWRDQHQIRUFHPHQW
DFWLRQFRQWHPSODWHGE\WKHVWDWHRI$UL]RQDDJDLQVWWKH3&*PHPEHUV
ZLWKUHVSHFWWRJURXQGZDWHUFRQWDPLQDWLRQ7KH&RQVHQW'HFUHH
FRPPLWWHGWKH3&*PHPEHUVWRFRPSOHWHWKHUHPHGLDWLRQZRUN
RXWOLQHGLQWKH&RQVHQW'HFUHHDQGWKDWZRUNFRQWLQXHVDWWKLVWLPH
DQGLVH[SHFWHGWRFRQWLQXHIRUPDQ\\HDUVLQWKHIXWXUH
)&;LVDSDUW\WR OLWLJDWLRQHQWLWOHG3LQDO&UHHN*URXSHWDOY
1HZPRQW0LQLQJ&RUSRUDWLRQHWDO8QLWHG6WDWHV'LVWULFW&RXUW
'LVWULFWRI$UL]RQD&DVH1R&,93+;'$(/2$ÀOHGRQ
0D\5HPHGLDWLRQFRVWVKDYHEHHQSDLGSXUVXDQWWRDQLQWHULP
FRVWVKDULQJDOORFDWLRQDPRQJWKHPHPEHUVRIWKH3&*ZLWK0LDPLҋV
LQWHULPDOORFDWLRQEHLQJDSSUR[LPDWHO\WZRWKLUGV+RZHYHUWKHUHKDYH
EHHQVLJQLÀFDQWGLVDJUHHPHQWVDPRQJWKHPHPEHUVRIWKH3&*
UHJDUGLQJWKHFRVWDOORFDWLRQZLWKRWKHUPHPEHUVDOOHJLQJLQWKHIHGHUDO
FRXUWSURFHHGLQJWKDW0LDPLVKRXOGEHUHVSRQVLEOHIRUVXEVWDQWLDOO\DOO