Freeport-McMoRan 2014 Annual Report Download - page 129

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
127
Financial Information by Business Segment
Mining Operations
North America Copper Mines South America Indonesia Africa
Atlantic
Copper Other U.S. Corporate,
Other Cerro Other Molybdenum Rod & Smelting Mining & Total Oil & Gas Other & FCX
Morenci Mines Total Verde Mines Total Grasberg Tenke Mines Refining & Refining Eliminations Mining Operations Eliminations Total
Year Ended December 31, 2014
Revenues:
Unaffiliated customers $ 364 $ 336 $ 700 $ 1,282 $ 1,740 $ 3,022 $ 2,848
a
$ 1,437 $ — $ 4,626 $ 2,391 $ 1,704
b
$ 16,728 $ 4,710
c
$ — $ 21,438
Intersegment 1,752 3,164 4,916 206 304 510 223 121 587 29 21 (6,407) — — — —
Production and delivery 1,287 2,153 3,440 741 1,198 1,939 1,988 770 328 4,633 2,356 (4,789) 10,665 1,237 2 11,904
Depreciation, depletion
and amortization 168 316 484 159 208 367 266 228 92 10 41 70 1,558 2,291 14 3,863
Impairment of oil and gas
properties — — — — — — — — — — — — — 3,737 — 3,737
Selling, general and
administrative expenses 2 3 5 3 3 6 98 12 — — 17 25 163 207 222 592
Mining exploration and research
expenses — 8 8 — — — — — — — — 118 126 — — 126
Environmental obligations
and shutdown costs — (5) (5) — — — — — — — — 123 118 — 1 119
Goodwill impairment — — — — — — — — — — — — — 1,717 — 1,717
Net gain on sale of assets — (14) (14) — — — — — — — — (703)
d
(717) — — (717)
Operating income (loss) 659 1,039 1,698 585 635 1,220 719 548 167 12 (2) 453 4,815 (4,479) (239) 97
Interest expense, net 3 1 4 1 — 1 — — — — 13 84 102 241 287 630
Provision for (benefit from)
income taxes — — — 265 266 531 293 116 — — — 221
d
1,161 — (837) 324
Total assets at December 31, 2014 3,780 5,611 9,391 7,513 1,993 9,506 8,626 5,073 2,095 235 898 1,319 37,143 20,834 818 58,795
Capital expenditures 826 143 969 1,691 94 1,785 948 159 54 4 17 52 3,988 3,205 22 7,215
Year Ended December 31, 2013
Revenues:
Unaffiliated customers $ 244 $ 326 $ 570 $ 1,473 $ 2,379 $ 3,852 $ 3,751
a
$ 1,590 $ — $ 4,995 $ 2,027 $ 1,516
b
$ 18,301 $ 2,616
c
$ 4 $ 20,921
Intersegment 1,673 2,940 4,613 360 273 633 336 47 522 27 14 (6,192) — — — —
Production and delivery 1,233 2,033 3,266 781 1,288 2,069 2,309 754 317 4,990 2,054 (4,608) 11,151 682 7 11,840
Depreciation, depletion
and amortization 133 269 402 152 194 346 247 246 82 9 42 48 1,422 1,364 11 2,797
Selling, general and
administrative expenses 2 3 5 3 4 7 110 12 — — 20 29 183 120 354 657
Mining exploration and research
expenses — 5 5 — — — 1 — — — — 193 199 — 11 210
Environmental obligations
and shutdown costs — (1) (1) — — — — — — — — 67 66 — — 66
Operating income (loss) 549 957 1,506 897 1,166 2,063 1,420 625 123 23 (75)
e
(405) 5,280 450 (379) 5,351
Interest expense, net 3 1 4 2 1 3 12 2 — — 16 80 117 181 220 518
Provision for income taxes — — — 316 404 720 603 131 — — — — 1,454 — 21
f
1,475
Total assets at December 31, 2013 3,110 5,810 8,920 6,584 3,996 10,580 7,437 4,849 2,107 239 1,039 1,003 36,174 26,252 1,047 63,473
Capital expenditures 737 329 1,066 960 185 1,145 1,030 205 164 4 67 113 3,794 1,436 56 5,286
a. Includes PT-FI’s sales to PT Smelting totaling $1.8 billion in 2014 and $1.7 billion in 2013.
b. Includes revenues from FCX’s molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
c. Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling $505 million in 2014 and $(334) million for the period from June 1, 2013, to
December 31, 2013.
d. Includes a gain of $671 million for the sale of Candelaria/Ojos and related provision for income taxes of $221 million.
e. Includes $50 million for shutdown costs associated with Atlantic Copper’s scheduled 68-day maintenance turnaround, which was completed in fourth-quarter 2013.
f. Includes $199 million of net benefits resulting from oil and gas acquisitions.