Freeport-McMoRan 2014 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2014 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.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
105
welfare benefits. The accumulated postemployment benefit
consisted of a current portion of $6 million (included in accounts
payable and accrued liabilities) and a long-term portion of
$38 million (included in other liabilities) at December 31, 2014,
and a current portion of $9 million and a long-term portion of
$75 million at December 31, 2013.
FCX also sponsors savings plans for the majority of its U.S.
employees. The plans allow employees to contribute a portion of
their pre-tax income in accordance with specified guidelines.
These savings plans are principally qualified 401(k) plans for all
U.S. salaried and non-bargained hourly employees. In these
plans, participants exercise control and direct the investment of
their contributions and account balances among various
investment options. FCX contributes to these plans at varying
rates and matches a percentage of employee pre-tax deferral
contributions up to certain limits, which vary by plan. For
employees whose eligible compensation exceeds certain levels,
FCX provides an unfunded defined contribution plan, which
had a liability balance of $69 million at December 31, 2014, and
$65 million at December 31, 2013.
The costs charged to operations for employee savings plans
totaled $79 million in 2014 (of which $11 million was capitalized to
oil and gas properties), $66 million in 2013 (of which $5 million
was capitalized to oil and gas properties) and $43 million
in 2012. FCX has other employee benefit plans, certain of which
are related to FCX’s financial results, which are recognized in
operating costs.
NOTE 10. STOCKHOLDERS’ EQUITY AND
STOCK-BASED COMPENSATION
FCX’s authorized shares of capital stock total 1.85 billion shares,
consisting of 1.8 billion shares of common stock and 50 million
shares of preferred stock.
Common Stock. At December 31, 2014, 23.7 million shares
remain available for purchase under FCX’s open-market share
purchase program, which does not have an expiration date. There
have been no purchases under this program since 2008. The
timing of future purchases of FCX’s common stock is dependent
on many factors, including FCX’s operating results, cash flows
and financial position; copper, molybdenum, gold, crude oil and
natural gas prices; the price of FCX’s common stock; and general
economic and market conditions.
FCX’s Board of Directors (the Board) authorized an increase in
the cash dividend on FCX’s common stock in February 2012 to the
current annual rate of $1.25 per share. The Board declared a
supplemental cash dividend of $1.00 per share, which was paid in
July 2013. On December 19, 2014, the Board declared a regular
quarterly dividend of $0.3125 per share, which was paid on
February 2, 2015, to common shareholders of record at the close
of business on January 15, 2015. The declaration of dividends
is at the discretion of the Board and will depend on FCX’s financial
results, cash requirements, future prospects and other factors
deemed relevant by the Board.
Accumulated Other Comprehensive Loss. A summary of
changes in the balances of each component of accumulated other
comprehensive loss, net of tax follows:
Unrealized
Losses on Translation Defined
Securities Adjustment Benefit Plans Total
Balance at January 1, 2012 $ (4) $ 6 $ (467) $ (465)
Amounts arising during the period
a,b,c,d
— (1) (66) (67)
Amounts reclassified
e
— — 26 26
Balance at December 31, 2012 (4) 5 (507) (506)
Amounts arising during the period
a,b,c
(1) — 67 66
Amounts reclassified
e
— 5 30 35
Balance at December 31, 2013 (5) 10 (410) (405)
Amounts arising during the period
a,b,c,d
(1) — (162) (163)
Amounts reclassified
e
— — 24 24
Balance at December 31, 2014 $ (6) $ 10 $ (548) $ (544)
a. Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(106) million for 2012, $126 million for 2013 and $(252) million for 2014. The year 2013 also included $33 million for
prior service costs.
b. Includes foreign exchange gains (losses), net of noncontrolling interest, totaling $3 million for 2012, $11 million for 2013 and $1 million for 2014.
c. Includes tax benefits (provision) totaling $39 million for 2012, $(37) million for 2013 and $94 million for 2014.
d. Includes adjustments to deferred tax valuation allowance of $1 million for 2012 and $5 million for 2014.
e. Includes amortization primarily related to actuarial losses that were net of taxes of $15 million for 2012, $17 million for 2013 and $14 million for 2014.