Freeport-McMoRan 2012 Annual Report Download - page 109

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments
Business segments data for the years ended December 31 are
presented in the following tables.
Business Segments
North America Copper Mines South America Indonesia Africa Atlantic
Copper Corporate,
Other Cerro Other Rod & Smelting Other &
Morenci Mines Total Verde Mines Total Grasberg Tenke Molybdenum Refining & Refining Eliminations FCX Total
Year Ended December 31, 2012
Revenues:
Unaffiliated customers $ 156 $ 50 $ 206 $ 1,767 $ 2,143 $ 3,910 $ 3,611
a
$ 1,349 $ 1,255 $ 4,989 $ 2,683 $ 7 $ 18,010
Intersegment 1,846 3,438 5,284 388 430 818 310 10 — 27 26 (6,475) —
Production and delivery 1,076 1,936 3,012 813 1,301 2,114 2,349 615 1,033 4,993 2,640 (6,374) 10,382
Depreciation, depletion and amortization 122 240 362 139 148 287 212 176 65 9 42 26 1,179
Selling, general and administrative expenses 2 2 4 3 3 6 121 6 13 — 19 262 431
Exploration and research expenses 1 — 1 — — — — — 3 — — 281 285
Environmental obligations and shutdown costs (11) 38 27 — — — — — — — — (49) (22)
Gain on insurance settlement — — — — — — (59) — — — — — (59)
Operating income (loss) 812 1,272 2,084 1,200 1,121 2,321 1,298 562 141 14 8 (614) 5,814
Interest expense, net 1 5 6 7 — 7 5 1 — — 12 155 186
Provision for income taxes — — — 228
b
329 557
b
497 112 — — — 344 1,510
Total assets at December 31, 2012 2,445 5,834 8,279 5,821 4,342 10,163 6,591 4,622 2,634 242 992 1,917 35,440
Capital expenditures 266 561 827 558 373 931 843 539 258 6 16 74 3,494
Year Ended December 31, 2011
Revenues:
Unaffiliated customers $ 418 $ 180 $ 598 $ 2,115 $ 2,457 $ 4,572 $ 4,504
a
$ 1,282 $ 1,424 $ 5,523 $ 2,969 $ 8 $ 20,880
Intersegment 1,697 3,338 5,035 417 269 686 542 7 — 26 15 (6,311) —
Production and delivery 984 1,645 2,629 827 1,078 1,905 1,791 591 1,036 5,527 2,991 (6,572) 9,898
Depreciation, depletion and amortization 116 163 279 135 123 258 215 140 60 8 40 22 1,022
Selling, general and administrative expenses 2 2 4 4 3 7 124 8 15 — 22 235 415
Exploration and research expenses 7 — 7 — — — — — 3 — — 261 271
Environmental obligations and shutdown costs 4 (15) (11) — — — — — — 1 — 144 134
Operating income (loss) 1,002 1,723 2,725 1,566 1,522 3,088 2,916 550 310 13 (69) (393) 9,140
Interest expense, net 2 6 8 1 — 1 8 6 — — 15 274 312
Provision for income taxes — — — 553 522 1,075 1,256 120 — — — 636 3,087
Total assets at December 31, 2011 2,006 5,086 7,092 5,110 3,604 8,714 5,349 3,890 2,434 259 1,109 3,223 32,070
Capital expenditures 95 400 495 198 405 603 648 193 461 10 32 92 2,534
Year Ended December 31, 2010
Revenues:
Unaffiliated customers $ 59 $ 52 $ 111 $ 1,957 $ 2,449 $ 4,406 $ 5,230
a
$ 1,106 $ 1,205 $ 4,444 $ 2,473 $ 7 $ 18,982
Intersegment 1,465 2,597 4,062 453 132 585 1,147 — — 26 18 (5,838) —
Production and delivery 691 1,361 2,052 705 973 1,678 1,946 488 784 4,442 2,470 (5,525) 8,335
Depreciation, depletion and amortization 134 139 273 148 102 250 257 128 51 8 38 31 1,036
Selling, general and administrative expenses — — — — — — 117 — 11 — 20 233 381
Exploration and research expenses — — — — — — — — 2 — — 141 143
Environmental obligations and shutdown costs — — — — — — — — — 1 — 18 19
Operating income (loss) 699 1,149 1,848 1,557 1,506 3,063 4,057 490 357 19 (37) (729) 9,068
Interest expense, net 4 10 14 — — — — 5 — — 10 433 462
Provision for income taxes — — — 516 483 999 1,709 118 — — — 157 2,983
Total assets at December 31, 2010 1,940 4,477 6,417 4,272 3,263 7,535 6,048 3,640 1,897 311 1,317 2,221 29,386
Capital expenditures 47 186 233 106 364 470 436 100 89 7 28 49 1,412
a. Included PT Freeport Indonesia’s sales to PT Smelting totaling $2.1 billion in 2012 and $2.3 billion in 2011 and 2010.
b. Included a credit of $234 million for the reversal of a net deferred tax liability. Refer to Note 12 for further discussion.
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