Freeport-McMoRan 2013 Annual Report Download - page 40

MANAGEMENT’S DISCUSSION AND ANALYSIS
38 | FREEPORT-McMoRan
Our valuation allowances totaled $2.5 billion at December 31,
2013, and $2.4 billion at December 31, 2012, and covered all of
our U.S. foreign tax credit carryforwards, and a portion of our
foreign net operating loss carryforwards, U.S. state net operating
loss carryforwards, U.S. state deferred tax assets and U.S.
capital loss carryforwards. In addition, the valuation allowance at
December 31, 2012, covered a portion of U.S. minimum tax
credit carryforwards. Refer to Note 11 for further discussion.
A valuation allowance is provided for those deferred income
tax assets for which it is more likely than not that the related
benefits will not be realized. In determining the amount of the
valuation allowance, we consider estimated future taxable income
as well as feasible tax planning strategies in each jurisdiction. If
we determine that we will not realize all or a portion of our
deferred income tax assets, we will increase our valuation
allowance. Conversely, if we determine that we will ultimately be
able to realize all or a portion of the related benefits for which a
valuation allowance has been provided, all or a portion of the
related valuation allowance will be reduced.
CONSOLIDATED RESULTS
Years Ended December 31, 2013
a
2012 2011
SUMMARY FINANCIAL DATA (in millions, except per share amounts)
Revenues
b,c
$ 20,921
d
$ 18,010 $ 20,880
Operating income
b,c
$ 5,351
d,e,f,g,h
$ 5,814
e,f,g,h
$ 9,140
e,g
Net income attributable to FCX common stockholders
c,l
$ 2,658
d,e,f,g,h,i,j
$ 3,041
e,f,g,h,j,k
$ 4,560
e,g,j,k
Diluted net income per share attributable to FCX common stockholders
c,l
$ 2.64
d,e,f,g,h,i,j
$ 3.19
e,f,g,h,j,k
$ 4.78
e,g,j,k
Diluted weighted-average common shares outstanding 1,006 954 955
Operating cash flows
m
$ 6,139 $ 3,774 $ 6,620
Capital expenditures $ 5,286 $ 3,494 $ 2,534
At December 31:
Cash and cash equivalents $ 1,985 $ 3,705 $ 4,822
Total debt, including current portion $ 20,706 $ 3,527 $ 3,537
a. Includes the results of FM O&G beginning June 1, 2013.
b. Following is a summary of revenues and operating income by operating division (in millions):
Years Ended December 31, 2013 2012 2011
Revenues
North America copper mines $ 5,183 $ 5,486 $ 5,629
South America mining 4,485 4,728 5,258
Indonesia mining 4,087 3,921 5,046
Africa mining 1,637 1,359 1,289
Molybdenum mines 522 529 595
Rod & Refining 5,022 5,016 5,549
Atlantic Copper Smelting & Refining 2,041 2,709 2,984
U.S. oil & gas operations 2,616 — —
Other mining, corporate, other & eliminations (4,672) (5,738) (5,470)
Total FCX revenues $ 20,921 $ 18,010 $ 20,880
Operating income (loss)
North America copper mines $ 1,506 $ 2,204 $ 2,771
South America mining 2,063 2,321 3,088
Indonesia mining 1,420 1,298 2,916
Africa mining 625 562 550
Molybdenum mines 123 150 291
Rod & Refining 23 14 13
Atlantic Copper Smelting & Refining (75) 8 (69)
U.S. oil & gas operations 450 — —
Other mining, corporate, other & eliminations (784) (743) (420)
Total FCX operating income $ 5,351 $ 5,814 $ 9,140
Refer to Note 16 for further discussion of operating divisions and business segments.