Freeport-McMoRan 2013 Annual Report Download - page 128

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
126 | FREEPORT-McMoRan
interests or assets of FM O&G LLC are sold to a third party; or
(ii) FM O&G LLC no longer has any obligations under any FM O&G
Senior Notes or any refinancing thereof and no longer guarantees
any obligations of FCX under the revolver, the term loan or any
other senior debt.
The following condensed consolidating financial information
includes information regarding FCX, as issuer, FM O&G LLC,
as guarantor, and all other non-guarantor subsidiaries of FCX.
Included are the condensed consolidating balance sheet at
December 31, 2013, and the related condensed consolidating
statement of comprehensive income for the year ended
December 31, 2013, and the condensed consolidating statement
of cash flows for the year ended December 31, 2013, which
should be read in conjunction with FCX’s notes to the consolidated
financial statements:
NOTE 17. GUARANTOR FINANCIAL STATEMENTS
As further discussed in Note 8, in March 2013, FCX completed the
sale of $6.5 billion of senior notes. These notes, along with FCX’s
senior notes sold in February 2012, are fully and unconditionally
guaranteed on a senior basis jointly and severally by FM O&G
LLC, as guarantor, which is a 100 percent owned subsidiary of
FM O&G and FCX. The guarantee is an unsecured obligation of
the guarantor and ranks equal in right of payment with all existing
and future indebtedness of FCX, including indebtedness under
the revolving credit facility. The guarantee ranks senior in right of
payment with all future subordinated obligations and is
effectively subordinated in right of payment to any debt of FCX’s
subsidiaries that are not subsidiary guarantors. In the future,
FM O&G LLC’s guarantee may be released or terminated under the
following circumstances: (i) all or substantially all of the equity
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2013
FCX FM O&G LLC Non-guarantor Consolidated
Issuer Guarantor Subsidiaries Eliminations FCX
ASSETS
Current assets:
Cash and cash equivalents
$ — $ — $ 1,985 $ — $ 1,985
Accounts receivable 855 659 2,258 (1,210) 2,562
Inventories — 18 5,000 — 5,018
Other current assets 114 20 273 — 407
Total current assets 969 697 9,516 (1,210) 9,972
Property, plant, equipment and mining development costs, net 27 43 23,972 — 24,042
Oil and gas properties, net – full cost method:
Subject to amortization
— 6,207 6,265 — 12,472
Not subject to amortization — 2,649 8,238 — 10,887
Investment in consolidated subsidiaries 31,162 9,712 12,468 (53,342) —
Goodwill — 437 1,479 — 1,916
Other assets 7,126 4,640 4,128 (11,710) 4,184
Total assets $ 39,284 $ 24,385 $ 66,066 $ (66,262) $ 63,473
LIABILITIES AND EQUITY
Current liabilities $ 1,003 $ 758 $ 4,222 $ (1,210) $ 4,773
Long-term debt, less current portion 13,184 7,199 8,056 (8,045) 20,394
Deferred income taxes 4,137
a
— 3,273 — 7,410
Environmental and asset retirement obligations, less current portion — 301 2,958 — 3,259
Other liabilities 26 3,436 1,893 (3,665) 1,690
Total liabilities 18,350 11,694 20,402 (12,920) 37,526
Redeemable noncontrolling interest — — 716 — 716
Equity:
Stockholders’ equity
20,934 12,691 41,100 (53,791) 20,934
Noncontrolling interests — — 3,848 449 4,297
Total equity 20,934 12,691 44,948 (53,342) 25,231
Total liabilities and equity $ 39,284 $ 24,385 $ 66,066 $ (66,262) $ 63,473
a. All U.S. related deferred income taxes are recorded at the parent company.