Freeport-McMoRan 2014 Annual Report Download - page 131

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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(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 sheets at
December 31, 2014 and 2013, and the related condensed
consolidating statements of comprehensive (loss) income for the
years ended December 31, 2014 and 2013, and the condensed
consolidating statements of cash flows for the years ended
December 31, 2014 and 2013, which should be read in conjunction
with FCX’s notes to the consolidated financial statements:
NOTE 17. GUARANTOR FINANCIAL STATEMENTS
All of the senior notes issued by FCX and discussed in Note 8 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 FM O&G
LLC, including indebtedness under the revolving credit facility.
The guarantee ranks senior in right of payment with all of FM O&G
LLC’s future subordinated obligations and is effectively
subordinated in right of payment to any debt of FM O&G
LLC’s subsidiaries. In the future, FM O&G LLC’s guarantee may
be released or terminated for certain obligations under the
following circumstances: (i) all or substantially all of the equity
interests or assets of FM O&G LLC are sold to a third party; or
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2014
FCX FM O&G LLC Non-guarantor Consolidated
Issuer Guarantor Subsidiaries Eliminations FCX
ASSETS
Current assets:
Cash and cash equivalents
$ — $ 1 $ 463 $ — $ 464
Accounts receivable 234 2,230 2,671 (2,572) 2,563
Other current assets 89 404 5,525 — 6,018
Total current assets 323 2,635 8,659 (2,572) 9,045
Property, plant, equipment and mining development costs, net 22 46 26,152 — 26,220
Oil and gas properties, net – full cost method:
Subject to amortization, less accumulated amortization
— 3,296 5,907 (16) 9,187
Not subject to amortization — 2,447 7,640 — 10,087
Investments in consolidated subsidiaries 28,765 6,460 10,246 (45,471) —
Other assets 9,012 3,947 4,084 (12,787) 4,256
Total assets $ 38,122 $ 18,831 $ 62,688 $ (60,846) $ 58,795
LIABILITIES AND EQUITY
Current liabilities $ 1,592 $ 560 $ 5,592 $ (2,572) $ 5,172
Long-term debt, less current portion 15,028 3,874 8,902 (9,312) 18,492
Deferred income taxes 3,161
a
— 3,237 — 6,398
Environmental and asset retirement obligations, less current portion — 302 3,345 — 3,647
Other liabilities 54 3,372 1,910 (3,475) 1,861
Total liabilities 19,835 8,108 22,986 (15,359) 35,570
Redeemable noncontrolling interest — — 751 — 751
Equity:
Stockholders’ equity
18,287 10,723 35,268 (45,991) 18,287
Noncontrolling interests — — 3,683 504 4,187
Total equity 18,287 10,723 38,951 (45,487) 22,474
Total liabilities and equity $ 38,122 $ 18,831 $ 62,688 $(60,846) $ 58,795
a. All U.S. related deferred income taxes are recorded at the parent company.