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FREEPORT-McMoRan COPPER & GOLD INC. 2010 Annual Report
109
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20. Quarterly Financial Information (Unaudited)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
2010
Revenues
$ 4,363 $ 3,864 $ 5,152 $ 5,603 $ 18,982
Operating income
2,048 1,424 2,499 3,097 9,068
Net income
1,215
a
832
a
1,533 1,964
a
5,544
a
Net income attributable to noncontrolling interests
270 168 355 415 1,208
Net income attributable to FCX common stockholders
897
a
649
a
1,178 1,549
a
4,273
a
Basic net income per share attributable to FCX common stockholders
1.04 0.71 1.25 1.64 4.67
Diluted net income per share attributable to FCX common stockholders
1.00
a
0.70
a
1.24 1.63
a
4.57
a
2009
Revenues $ 2,602 $ 3,684 $ 4,144 $ 4,610 $ 15,040
Operating income 672
b
1,508 2,084 2,239
b
6,503
b
Net income 207 812 1,203
c
1,312
c
3,534
c
Net income attributable to noncontrolling interests 104 164 224 293 785
Net income attributable to FCX common stockholders 43
b
588 925
c
971
b,c
2,527
b,c
Basic net income per share attributable to FCX common stockholders 0.05 0.71 1.11 1.13 3.05
Diluted net income per share attributable to FCX common stockholders 0.05
b
0.69 1.04
c
1.08
b,c
2.93
b,c
All references to income or losses per share are on a diluted basis.
a. Includes losses on early extinguishment of debt totaling $27 million ($23 million to net income attributable to FCX common stockholders or $0.02 per share) in the first quarter, $50 million
($42 million to net income attributable to FCX common stockholders or $0.05 per share) in the second quarter, $4 million ($3 million to net income attributable to FCX common stockholders
or less than $0.01 per share) in the fourth quarter and $81 million ($71 million to net income attributable to FCX common stockholders or $0.07 per share) for the year.
b. Includes charges for LCM inventory adjustments totaling $19 million ($19 million to net income attributable to FCX common stockholders or $0.02 per share in the first quarter and $15 million
to net income attributable to FCX common stockholders or $0.02 per share for the year). Includes restructuring charges totaling $34 million ($31 million to net income attributable to FCX
common stockholders or $0.04 per share) in the first quarter and $32 million ($25 million to net income attributable to FCX common stockholders or $0.03 per share) for the year. Also
includes pension and postretirement gains totaling $9 million ($9 million to net income attributable to FCX common stockholders or $0.01 per share in the first quarter and $7 million to net
income attributable to FCX common stockholders or $0.01 per share for the year). Includes a charge for the partial settlement of the City of Blackwell lawsuit totaling $54 million ($43 million to
net income attributable to FCX common stockholders or $0.05 per share) in the fourth quarter and for the year.
c. Includes losses on early extinguishment of debt totaling $31 million ($28 million to net income attributable to FCX common stockholders or $0.03 per share) in the third quarter, $17 million
($15 million to net income attributable to FCX common stockholders or $0.02 per share) in the fourth quarter and $48 million ($43 million to net income attributable to FCX common
stockholders or $0.04 per share) for the year. Also includes a favorable adjustment to income tax expense totaling $43 million ($0.05 per share) in the fourth quarter and for the year resulting
from the completion of a review of U.S. deferred income tax accounts.
NOTE 21. Subsequent Events
In February 2011, SUNAT issued a ruling denying Cerro Verde’s
protest for the year 2008 assessment of mining royalties related
to the minerals processed by the Cerro Verde concentrator as
discussed in Note 13. Cerro Verde is in the process of appealing
this decision to the Tax Court.
On February 24, 2011, FCX announced its intent to redeem
the remaining $1.1 billion of the 8.25% Senior Notes due 2015
on April 1, 2011. Holders will receive 104.125 percent of the
principal amount together with accrued and unpaid interest.
FCX expects to record a loss on early extinguishment of debt of
approximately $56 million (approximately $49 million to net
income attributable to FCX common stockholders) in the second
quarter of 2011 in connection with this redemption.
FCX evaluated events after December 31, 2010, and through
the date the financial statements were issued, and determined any
events or transactions occurring during this period that would
require recognition or disclosure are appropriately addressed in
these financial statements.