UNITED
STATES
|
||
SECURITIES
AND EXCHANGE COMMISSION
|
||
Washington,
D.C. 20549
|
||
FORM
10-K
|
||
(Mark
One)
|
||
[X]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
||
For
the fiscal year ended December 31, 2008
|
||
OR
|
||
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
||
For
the transition period from
|
to
|
|
Commission
File Number: 1-9916
|
||
|
||
Freeport-McMoRan
Copper & Gold Inc.
|
||
(Exact
name of registrant as specified in its
charter)
|
Delaware
|
74-2480931
|
(State
or other jurisdiction of
incorporation
or organization)
|
(IRS
Employer Identification No.)
|
One
North Central Avenue
|
|
Phoenix,
Arizona
|
85004-4414
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(602)
366-8100
|
|
(Registrant's
telephone number, including area
code)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Common
Stock, par value $0.10 per share
|
New
York Stock Exchange
|
|
7% Convertible
Senior Notes due 2011 of the registrant
|
New
York Stock Exchange
|
|
6¾%
Mandatory Convertible Preferred Stock, par value $0.10 per
share
|
New
York Stock Exchange
|
Portions
of our proxy statement for our 2009 annual meeting of stockholders are
incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of
this report.
|
Page
|
|
1
|
|
1
|
|
40
|
|
55
|
|
55
|
|
57
|
|
57
|
|
58
|
|
58
|
|
60
|
|
64
|
|
117
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
182
|
|
183
|
|
183
|
|
S-1
|
|
F-1
|
|
E-1
|
Construction
|
35
|
%
|
Electrical
applications
|
32
|
%
|
Industrial
machinery
|
12
|
%
|
Transportation
|
11
|
%
|
Consumer
products
|
10
|
%
|
Construction
steel
|
35
|
%
|
Stainless
steel
|
25
|
%
|
Chemicals
|
14
|
%
|
Tool
and high-speed steel
|
9
|
%
|
Cast
iron
|
6
|
%
|
Molybdenum
metal
|
6
|
%
|
Super
alloys
|
5
|
%
|
2008
|
2007
|
2006
|
||||
PT
Smelting
|
41%
|
39%
|
27%
|
|||
Atlantic
Copper
|
15%
|
25%
|
23%
|
|||
Other
parties
|
44%
|
36%
|
50%
|
|||
100%
|
100%
|
100%
|
||||
Facility
|
Date
of Announcement
|
Announced
Reductions
|
||
Copper
|
||||
North America
|
||||
· Morenci
|
December
2008 and
|
25
percent reduction in mining and crushed-leach
|
||
January
2009
|
rates
in December 2008 and an additional reduction
|
|||
in
January 2009 for a total 50 percent reduction in
|
||||
mining and crushed-leach rates | ||||
· Chino
|
December
2008
|
Suspension
of mining and milling activities
|
||
· Safford
|
December
2008
|
50
percent reduction in mining and stacking rates
|
||
· Tyrone
|
December
2008
|
50
percent reduction in mining rate
|
||
· Miami
|
December
2008
|
Deferral
of restart of the Miami mine
|
||
South America
|
||||
· Candelaria/
|
|
|
||
Ojos del
Salado
|
January
2009
|
Reduction
in mining rates
|
||
Molybdenum
|
||||
· Henderson
|
November
2008
|
25
percent reduction in mining and milling rates
|
||
· Climax
|
November
2008
|
Deferral
of restart of the Climax mine
|
||
· Morenci
|
January
2009
|
Suspension
of molybdenum by-product production
|
||
· Cerro
Verde
|
January
2009
|
Suspension
of molybdenum by-product
production
|
COPPER
|
Years
Ended December 31,
|
||||||||||||||
(millions
of recoverable pounds)
|
2008
|
2007a
|
2006a
|
2005a
|
2004a
|
||||||||||
MINED COPPER (FCX’s net
interest in %)
|
|||||||||||||||
North America
|
|||||||||||||||
Morenci
(85%)b
|
626
|
687
|
693
|
680
|
715
|
||||||||||
Bagdad
(100%)
|
227
|
202
|
165
|
201
|
220
|
||||||||||
Sierrita
(100%)
|
188
|
150
|
162
|
158
|
155
|
||||||||||
Chino
(100%)
|
155
|
190
|
186
|
210
|
183
|
||||||||||
Safford
(100%)
|
133
|
1
|
-
|
-
|
-
|
||||||||||
Tyrone
(100%)
|
76
|
50
|
64
|
81
|
86
|
||||||||||
Miami
(100%)
|
19
|
20
|
19
|
25
|
20
|
||||||||||
Tohono
(100%)
|
2
|
3
|
5
|
5
|
-
|
||||||||||
Other
(100%)
|
4
|
17
|
11
|
5
|
5
|
||||||||||
Total
North America
|
1,430
|
1,320
|
c
|
1,305
|
1,365
|
1,384
|
|||||||||
South America
|
|||||||||||||||
Cerro
Verde (53.56%)
|
694
|
594
|
222
|
206
|
195
|
||||||||||
Candelaria/Ojos
del Salado (80%)
|
446
|
453
|
429
|
421
|
461
|
||||||||||
El
Abra (51%)
|
366
|
366
|
482
|
464
|
481
|
||||||||||
Total
South America
|
1,506
|
1,413
|
c
|
1,133
|
1,091
|
1,137
|
|||||||||
Indonesia
|
|||||||||||||||
Grasberg
(90.64%)d
|
1,094
|
1,151
|
1,201
|
1,456
|
997
|
||||||||||
Consolidated
|
4,030
|
3,884
|
3,639
|
3,912
|
3,518
|
||||||||||
Less
minority participants’ share
|
693
|
653
|
537
|
543
|
512
|
||||||||||
Net
|
3,337
|
3,231
|
3,102
|
3,369
|
3,006
|
||||||||||
GOLD
|
|||||||||||||||
(thousands
of recoverable ounces)
|
|||||||||||||||
MINED GOLD (FCX’s net
interest in %)
|
|||||||||||||||
North
America (100%)b
|
14
|
15
|
19
|
17
|
13
|
||||||||||
South
America (80%)
|
114
|
116
|
e
|
112
|
117
|
122
|
|||||||||
Indonesia
(90.64%)d
|
1,163
|
2,198
|
1,732
|
2,789
|
1,456
|
||||||||||
Consolidated
|
1,291
|
2,329
|
1,863
|
2,923
|
1,591
|
||||||||||
Less
minority participants’ share
|
132
|
229
|
184
|
284
|
160
|
||||||||||
Net
|
1,159
|
2,100
|
1,679
|
2,639
|
1,431
|
||||||||||
MOLYBDENUM
|
|||||||||||||||
(millions
of recoverable pounds)
|
|||||||||||||||
MINED MOLYBDENUM (FCX’s
net interest in %)
|
|||||||||||||||
Henderson
(100%)
|
40
|
39
|
f
|
37
|
32
|
28
|
|||||||||
By-product
– North America (100%)b
|
30
|
30
|
31
|
30
|
29
|
||||||||||
By-product
– Cerro Verde (53.56%)
|
3
|
1
|
-
|
-
|
-
|
||||||||||
Consolidated
|
73
|
70
|
68
|
62
|
57
|
||||||||||
Less
minority participants’ share
|
1
|
-
|
-
|
-
|
-
|
||||||||||
Net
|
72
|
70
|
68
|
62
|
57
|
||||||||||
a.
|
For
comparative purposes, operating data for the years ended December 31,
2007, 2006, 2005 and 2004, combines our historical data with Phelps Dodge
pre-acquisition data. As the pre-acquisition data represent the results of
these operations under Phelps Dodge management, such combined data is not
necessarily indicative of what past results would have been under FCX
management or of future operating
results.
|
b.
|
Amounts
are net of Morenci’s 15 percent joint venture partner
interest.
|
c.
|
Includes
North America copper production of 258 million pounds and South America
copper production of 259 million pounds for Phelps Dodge’s pre-acquisition
results.
|
d.
|
Amounts
are net of Grasberg’s joint venture partner’s interest, which varies in
accordance with terms of the joint venture
agreement.
|
e.
|
Includes
gold production of 21 thousand ounces for Phelps Dodge’s pre-acquisition
results.
|
f.
|
Includes
molybdenum production of 14 million pounds for Phelps Dodge’s
pre-acquisition results.
|
Years
Ended December 31,
|
|||||||||||||||
COPPER
(millions of recoverable pounds)
|
2008
|
2007a
|
2006a
|
2005a
|
2004a
|
||||||||||
MINED COPPER (FCX’s net
interest in %)
|
|||||||||||||||
North America
|
|||||||||||||||
Morenci
(85%)b
|
646
|
693
|
692
|
680
|
715
|
||||||||||
Bagdad
(100%)
|
226
|
200
|
165
|
209
|
224
|
||||||||||
Sierrita
(100%)
|
184
|
157
|
161
|
165
|
158
|
||||||||||
Chino
(100%)
|
174
|
186
|
186
|
209
|
183
|
||||||||||
Safford
(100%)
|
107
|
-
|
-
|
-
|
-
|
||||||||||
Tyrone
(100%)
|
71
|
53
|
64
|
81
|
86
|
||||||||||
Miami
(100%)
|
20
|
24
|
19
|
29
|
22
|
||||||||||
Tohono
(100%)
|
2
|
3
|
5
|
5
|
-
|
||||||||||
Other
(100%)
|
4
|
16
|
11
|
5
|
5
|
||||||||||
Total
North America
|
1,434
|
1,332
|
c
|
1,303
|
1,383
|
1,393
|
|||||||||
South America
|
|||||||||||||||
Cerro
Verde (53.56%)
|
701
|
587
|
214
|
205
|
196
|
||||||||||
Candelaria/Ojos
del Salado (80%)
|
455
|
447
|
425
|
421
|
467
|
||||||||||
El
Abra (51%)
|
365
|
365
|
487
|
467
|
482
|
||||||||||
Total
South America
|
1,521
|
1,399
|
c
|
1,126
|
1,093
|
1,145
|
|||||||||
Indonesia
|
|||||||||||||||
Grasberg
(90.64%)d
|
1,111
|
1,131
|
1,201
|
1,457
|
992
|
||||||||||
Consolidated
|
4,066
|
3,862
|
3,630
|
3,933
|
3,530
|
||||||||||
Less
minority participants’ share
|
699
|
647
|
535
|
545
|
513
|
||||||||||
Net
|
3,367
|
3,215
|
3,095
|
3,388
|
3,017
|
||||||||||
Consolidated
sales from mines
|
4,066
|
3,862
|
3,630
|
3,933
|
3,530
|
||||||||||
Purchased
copper
|
483
|
650
|
736
|
821
|
866
|
||||||||||
Total
consolidated sales
|
4,549
|
4,512
|
4,366
|
4,754
|
4,396
|
||||||||||
Average
realized price per pound
|
$2.69
|
$3.22
|
e
|
$2.80
|
e
|
$1.66
|
e
|
$1.33
|
|||||||
GOLD (thousands
of recoverable ounces)
|
|||||||||||||||
MINED GOLD (FCX’s net
interest in %)
|
|||||||||||||||
North
America (100%)b
|
16
|
21
|
19
|
18
|
12
|
||||||||||
South
America (80%)
|
116
|
114
|
f
|
111
|
117
|
122
|
|||||||||
Indonesia
(90.64%)d
|
1,182
|
2,185
|
1,736
|
2,790
|
1,443
|
||||||||||
Consolidated
|
1,314
|
2,320
|
1,866
|
2,925
|
1,577
|
||||||||||
Less
minority participants’ share
|
134
|
228
|
185
|
285
|
159
|
||||||||||
Net
|
1,180
|
2,092
|
1,681
|
2,640
|
1,418
|
||||||||||
Consolidated
sales from mines
|
1,314
|
2,320
|
1,866
|
2,925
|
1,577
|
||||||||||
Purchased
gold
|
2
|
6
|
12
|
12
|
20
|
||||||||||
Total
consolidated sales
|
1,316
|
2,326
|
1,878
|
2,937
|
1,597
|
||||||||||
Average
realized price per ounce
|
$861
|
$682
|
$566
|
g
|
$454
|
$411
|
|||||||||
MOLYBDENUM
(millions
of recoverable pounds)
|
|||||||||||||||
Consolidated
sales from mines
|
71
|
69
|
h
|
69
|
60
|
63
|
|||||||||
Less
minority participants’ share
|
1
|
-
|
-
|
-
|
-
|
||||||||||
Net
|
70
|
69
|
69
|
60
|
63
|
||||||||||
Consolidated
sales from mines
|
71
|
69
|
69
|
60
|
63
|
||||||||||
Purchased
molybdenum
|
8
|
9
|
8
|
13
|
13
|
||||||||||
Total
consolidated sales
|
79
|
78
|
77
|
73
|
76
|
||||||||||
Average
realized price per pound
|
$30.55
|
$25.87
|
$21.87
|
$25.89
|
$12.71
|
a.
|
For
comparative purposes, operating data for the years ended December 31,
2007, 2006, 2005 and 2004, combines our historical data with Phelps Dodge
pre-acquisition data. As the pre-acquisition data represent the results of
these operations under Phelps Dodge management, such combined data is not
necessarily indicative of what past results would have been under FCX
management or of future operating
results.
|
b.
|
Amounts
are net of Morenci’s joint venture partner’s 15 percent
interest.
|
c.
|
Includes
North America copper sales of 283 million pounds and South America copper
sales of 222 million pounds for Phelps Dodge’s pre-acquisition
results.
|
d.
|
Amounts
are net of Grasberg’s joint venture partner’s interest, which varies in
accordance with terms of the joint venture
agreement.
|
e.
|
Before
charges for hedging losses related to copper price protection programs,
amounts were $3.27 per pound for 2007, $3.08 per pound for 2006 and $1.76
per pound for 2005.
|
f.
|
Includes
gold sales of 18 thousand ounces for Phelps Dodge’s pre-acquisition
results.
|
g.
|
Amount
was approximately $606 per ounce before a loss on redemption of our
Gold-Denominated Preferred Stock, Series
II.
|
h.
|
Includes
molybdenum sales of 17 million pounds for Phelps Dodge’s pre-acquisition
results.
|
Number
of
|
|||
Union-
|
|||
Number
of
|
Represented
|
||
Location
|
Unions
|
Employees
|
Expiration
Date
|
PT
Freeport Indonesia – Indonesia
|
1
|
5,650
|
October
2009
|
Tenke
Fungurume – DRC
|
2
|
2,525
|
May
2010
|
Cerro
Verde – Peru
|
1
|
1,014
|
August
2011
|
Candelaria
– Chile
|
2
|
463
|
October
2009
|
El
Abra – Chile
|
2
|
566
|
July
2012
|
Chino
– New Mexico
|
1
|
231
|
November
2009
|
Atlantic
Copper – Spain
|
2
|
179
|
December
2007a
|
Stowmarket
– United Kingdom
|
1
|
36
|
May
2011
|
Bayway
– New Jersey
|
1
|
53
|
April
2010
|
Rotterdam
– The Netherlands
|
2
|
57
|
March
2011
|
Aurex
– Chile
|
1
|
32
|
February
2010
|
a.
|
The
contract has been provisionally extended and is currently being
renegotiated.
|
Recoverable
Proven and Probable Reservesa at
December 31, 2008
|
|||||||||||
Copper
|
Gold
|
Molybdenum
|
Silver
|
Cobalt
|
|||||||
(billion
pounds)
|
(million
ounces)
|
(billion
pounds)
|
(million
ounces)
|
(billion
pounds)
|
|||||||
North
America
|
28.3
|
0.2
|
2.08
|
56.7
|
-
|
||||||
South
America
|
32.2
|
1.3
|
0.40
|
77.5
|
-
|
||||||
Indonesia
|
35.6
|
38.5
|
-
|
132.4
|
-
|
||||||
Africa
|
5.9
|
-
|
-
|
-
|
0.7
|
||||||
Consolidated
basisb
|
102.0
|
40.0
|
2.48
|
266.6
|
0.7
|
||||||
Net
equity interestc
|
82.4
|
36.2
|
2.30
|
223.9
|
0.4
|
a.
|
Recoverable
proven and probable reserves are estimated metal quantities from which we
expect to be paid after application of estimated metallurgical recovery
rates and smelter recovery rates, where applicable. Recoverable reserves
are that part of a mineral deposit that we estimate can be economically
and legally extracted or produced at the time of the reserve
determination. Recoverable reserves include estimated recoverable copper
totaling 2.8 billion pounds in leach stockpiles and 1.1 billion
pounds in mill stockpiles, including our joint venture partner’s interest
in the Morenci mine.
|
b.
|
Consolidated
basis reserves represent estimated metal quantities after reduction for
joint venture partner interests at the Morenci mine in North America and
at the Grasberg minerals district in
Indonesia.
|
c.
|
Net
equity interest reserves represent estimated consolidated basis metal
quantities further reduced for minority interest
ownership.
|
Recoverable Proven and
Probable Reserves
|
||||||||||||||||||||||||||
Estimated at December 31,
2008
|
||||||||||||||||||||||||||
Proven
Reserves
|
Probable
Reserves
|
|||||||||||||||||||||||||
Average
Ore Grade
|
Average
Ore Grade
|
|||||||||||||||||||||||||
Processing
|
Million
|
Copper
|
Gold
|
Moly
|
Silver
|
Cobalt
|
Million
|
Copper
|
Gold
|
Moly
|
Silver
|
Cobalt
|
||||||||||||||
Method
|
metric
tons
|
%
|
g/t
|
%
|
g/t
|
%
|
metric
tons
|
%
|
g/t
|
%
|
g/t
|
%
|
||||||||||||||
North America
|
||||||||||||||||||||||||||
Morenci
|
Mill
|
181
|
0.55
|
-
|
0.023
|
-
|
-
|
4
|
0.61
|
-
|
0.023
|
-
|
-
|
|||||||||||||
Crushed
leach
|
371
|
0.58
|
-
|
-
|
-
|
-
|
19
|
0.55
|
-
|
-
|
-
|
-
|
||||||||||||||
ROM
leach
|
2,133
|
0.20
|
-
|
-
|
-
|
-
|
105
|
0.23
|
-
|
-
|
-
|
-
|
||||||||||||||
Sierrita
|
Mill
|
1,325
|
0.26
|
-
|
d
|
0.029
|
1.49
|
-
|
142
|
0.24
|
-
|
d
|
0.024
|
1.35
|
-
|
|||||||||||
ROM
leach
|
4
|
0.19
|
-
|
-
|
-
|
-
|
2
|
0.16
|
-
|
-
|
-
|
-
|
||||||||||||||
Bagdad
|
Mill
|
591
|
0.36
|
-
|
d
|
0.021
|
1.79
|
-
|
175
|
0.31
|
-
|
d
|
0.019
|
1.51
|
-
|
|||||||||||
ROM
leach
|
142
|
0.18
|
-
|
-
|
-
|
-
|
143
|
0.12
|
-
|
-
|
-
|
-
|
||||||||||||||
Safford
|
Crushed
leach
|
239
|
0.46
|
-
|
-
|
-
|
-
|
211
|
0.29
|
-
|
-
|
-
|
-
|
|||||||||||||
Tyrone
|
ROM
leach
|
289
|
0.30
|
-
|
-
|
-
|
-
|
45
|
0.23
|
-
|
-
|
-
|
-
|
|||||||||||||
Henderson
|
Mill
|
141
|
-
|
-
|
0.176
|
-
|
-
|
8
|
-
|
-
|
0.176
|
-
|
-
|
|||||||||||||
Chino
|
Mill
|
43
|
0.63
|
0.05
|
0.016
|
0.76
|
-
|
4
|
0.58
|
0.04
|
0.017
|
0.71
|
-
|
|||||||||||||
ROM
leach
|
83
|
0.48
|
-
|
-
|
-
|
-
|
13
|
0.34
|
-
|
-
|
-
|
-
|
||||||||||||||
Miami
|
ROM
leach
|
74
|
0.44
|
-
|
-
|
-
|
-
|
17
|
0.35
|
-
|
-
|
-
|
-
|
|||||||||||||
Climaxa
|
Mill
|
63
|
-
|
-
|
0.201
|
-
|
-
|
102
|
-
|
-
|
0.142
|
-
|
-
|
|||||||||||||
Cobrea
|
ROM
leach
|
71
|
0.40
|
-
|
-
|
-
|
-
|
2
|
0.23
|
-
|
-
|
-
|
-
|
|||||||||||||
5,750
|
0.29
|
-
|
d
|
0.016
|
0.53
|
992
|
0.23
|
-
|
d
|
0.023
|
0.46
|
-
|
||||||||||||||
South America
|
||||||||||||||||||||||||||
Cerro
Verde
|
Mill
|
486
|
0.47
|
-
|
0.018
|
2.83
|
-
|
2,249
|
0.34
|
-
|
0.013
|
2.05
|
-
|
|||||||||||||
Crushed
leach
|
110
|
0.56
|
-
|
-
|
-
|
-
|
81
|
0.48
|
-
|
-
|
-
|
-
|
||||||||||||||
ROM
leach
|
39
|
0.28
|
-
|
-
|
-
|
-
|
58
|
0.35
|
-
|
-
|
-
|
-
|
||||||||||||||
El
Abra
|
Crushed
leach
|
477
|
0.56
|
-
|
-
|
-
|
-
|
149
|
0.52
|
-
|
-
|
-
|
-
|
|||||||||||||
ROM
leach
|
291
|
0.32
|
-
|
-
|
-
|
-
|
203
|
0.33
|
-
|
-
|
-
|
-
|
||||||||||||||
Candelaria
|
Mill
|
368
|
0.55
|
0.11
|
-
|
1.97
|
-
|
23
|
0.54
|
0.11
|
-
|
1.91
|
-
|
|||||||||||||
Ojos
del Salado
|
Mill
|
5
|
1.23
|
0.30
|
-
|
2.95
|
-
|
3
|
0.98
|
0.24
|
-
|
2.34
|
-
|
|||||||||||||
1,776
|
0.49
|
0.02
|
0.005
|
1.19
|
-
|
2,766
|
0.36
|
-
|
d
|
0.010
|
1.69
|
-
|
||||||||||||||
Indonesia
|
||||||||||||||||||||||||||
Grasberg
open pit
|
Mill
|
213
|
0.99
|
1.29
|
-
|
2.55
|
-
|
171
|
0.95
|
1.03
|
-
|
2.56
|
-
|
|||||||||||||
Deep
Ore Zoneb
|
Mill
|
97
|
0.67
|
0.66
|
-
|
3.41
|
-
|
185
|
0.59
|
0.68
|
-
|
2.75
|
-
|
|||||||||||||
Grasberg
block cavea
|
Mill
|
288
|
1.21
|
1.16
|
-
|
3.65
|
-
|
719
|
0.94
|
0.66
|
-
|
3.37
|
-
|
|||||||||||||
Kucing
Liara
|
Mill
|
156
|
1.32
|
1.15
|
-
|
7.51
|
-
|
285
|
1.20
|
1.06
|
-
|
6.57
|
-
|
|||||||||||||
Deep
Mill Level Zonea,c
|
Mill
|
59
|
1.00
|
0.78
|
-
|
4.94
|
-
|
435
|
0.88
|
0.74
|
-
|
4.40
|
-
|
|||||||||||||
Big
Gossana
|
Mill
|
9
|
2.50
|
1.30
|
-
|
16.72
|
-
|
47
|
2.18
|
1.16
|
-
|
14.16
|
-
|
|||||||||||||
822
|
1.11
|
1.11
|
-
|
4.30
|
-
|
1,842
|
0.97
|
0.79
|
-
|
4.25
|
-
|
|||||||||||||||
Africa
|
||||||||||||||||||||||||||
Tenke
Fungurumea
|
Agitation
leach
|
59
|
2.62
|
-
|
-
|
-
|
0.374
|
60
|
2.67
|
-
|
-
|
-
|
0.317
|
|||||||||||||
Total
|
8,407
|
0.43
|
0.11
|
0.012
|
1.05
|
0.003
|
5,660
|
0.56
|
0.26
|
0.009
|
2.29
|
0.003
|
||||||||||||||
a. Undeveloped
reserves requiring significant capital investment to bring into
production.
|
||||||||||||||||||||||||||
b. In
2007, we combined the Deep Ore Zone and the Erstberg Ore Zone reserves,
which we now refer to as the Deep Ore Zone.
|
||||||||||||||||||||||||||
c. In
2007, we combined the Mill Level Zone and the Deep Mill Level Zone
reserves, which we now refer to as the Deep Mill Level
Zone.
|
||||||||||||||||||||||||||
d. Grade
not shown because of
rounding.
|
|
The
reserve table above and the tables on pages 32 to 37 and 39 utilize the
following abbreviations:
|
·
|
g/t
– grams per metric ton
|
·
|
Moly
– Molybdenum
|
·
|
ROM
– Run of Mine
|
Recoverable Proven and Probable
Reserves
|
||||||||||||||||||||||||
Estimated at December 31,
2008
|
||||||||||||||||||||||||
Average
Ore Grade
|
Recoveriesa
|
|||||||||||||||||||||||
Proven
and
|
||||||||||||||||||||||||
Probable
|
||||||||||||||||||||||||
Processing
|
Million
|
Copper
|
Gold
|
Moly
|
Silver
|
Cobalt
|
Copper
|
Gold
|
Moly
|
Silver
|
Cobalt
|
|||||||||||||
Method
|
metric
tons
|
%
|
g/t
|
%
|
g/t
|
%
|
%
|
%
|
%
|
%
|
%
|
|||||||||||||
North America
|
||||||||||||||||||||||||
Morenci
|
Mill
|
185
|
0.55
|
-
|
0.023
|
-
|
-
|
77.3
|
-
|
29.8
|
-
|
-
|
||||||||||||
Crushed
leach
|
390
|
0.58
|
-
|
-
|
-
|
-
|
76.3
|
-
|
-
|
-
|
-
|
|||||||||||||
ROM
leach
|
2,238
|
0.20
|
-
|
-
|
-
|
-
|
41.2
|
-
|
-
|
-
|
-
|
|||||||||||||
Sierrita
|
Mill
|
1,467
|
0.25
|
-
|
b
|
0.029
|
1.48
|
-
|
82.0
|
60.0
|
83.4
|
50.0
|
-
|
|||||||||||
ROM
leach
|
6
|
0.18
|
-
|
-
|
-
|
-
|
51.0
|
-
|
-
|
-
|
-
|
|||||||||||||
Bagdad
|
Mill
|
766
|
0.35
|
-
|
b
|
0.021
|
1.73
|
-
|
84.6
|
60.0
|
72.3
|
50.0
|
-
|
|||||||||||
ROM
leach
|
285
|
0.15
|
-
|
-
|
-
|
-
|
26.1
|
-
|
-
|
-
|
-
|
|||||||||||||
Safford
|
Crushed
leach
|
450
|
0.38
|
-
|
-
|
-
|
-
|
65.8
|
-
|
-
|
-
|
-
|
||||||||||||
Tyrone
|
ROM
leach
|
334
|
0.29
|
-
|
-
|
-
|
-
|
58.7
|
-
|
-
|
-
|
-
|
||||||||||||
Henderson
|
Mill
|
149
|
-
|
-
|
0.176
|
-
|
-
|
-
|
-
|
86.7
|
-
|
-
|
||||||||||||
Chino
|
Mill
|
47
|
0.62
|
0.04
|
0.016
|
0.75
|
-
|
78.3
|
60.0
|
38.2
|
50.0
|
-
|
||||||||||||
ROM
leach
|
96
|
0.47
|
-
|
-
|
-
|
-
|
67.4
|
-
|
-
|
-
|
-
|
|||||||||||||
Miami
|
ROM
leach
|
91
|
0.43
|
-
|
-
|
-
|
-
|
63.0
|
-
|
-
|
-
|
-
|
||||||||||||
Climax
|
Mill
|
165
|
-
|
-
|
0.165
|
-
|
-
|
-
|
-
|
88.6
|
-
|
-
|
||||||||||||
Cobre
|
ROM
leach
|
73
|
0.39
|
-
|
-
|
-
|
-
|
65.4
|
-
|
-
|
-
|
-
|
||||||||||||
6,742
|
||||||||||||||||||||||||
South America
|
||||||||||||||||||||||||
Cerro
Verde
|
Mill
|
2,735
|
0.37
|
-
|
0.014
|
2.19
|
-
|
86.0
|
-
|
47.1
|
28.2
|
-
|
||||||||||||
Crushed
leach
|
191
|
0.53
|
-
|
-
|
-
|
-
|
79.3
|
-
|
-
|
-
|
-
|
|||||||||||||
ROM
leach
|
97
|
0.32
|
-
|
-
|
-
|
-
|
44.7
|
-
|
-
|
-
|
-
|
|||||||||||||
El
Abra
|
Crushed
leach
|
626
|
0.55
|
-
|
-
|
-
|
-
|
54.8
|
-
|
-
|
-
|
-
|
||||||||||||
ROM
leach
|
494
|
0.32
|
-
|
-
|
-
|
-
|
28.0
|
-
|
-
|
-
|
-
|
|||||||||||||
Candelaria
|
Mill
|
391
|
0.55
|
0.11
|
-
|
1.97
|
-
|
90.9
|
79.0
|
-
|
76.4
|
-
|
||||||||||||
Ojos
del Salado
|
Mill
|
8
|
1.12
|
0.27
|
-
|
2.68
|
-
|
90.3
|
67.1
|
-
|
58.5
|
-
|
||||||||||||
4,542
|
||||||||||||||||||||||||
Indonesia
|
||||||||||||||||||||||||
Grasberg
open pit
|
Mill
|
384
|
0.97
|
1.17
|
-
|
2.55
|
-
|
85.8
|
83.2
|
-
|
44.4
|
-
|
||||||||||||
Deep
Ore Zone
|
Mill
|
282
|
0.62
|
0.67
|
-
|
2.98
|
-
|
84.2
|
75.9
|
-
|
57.0
|
-
|
||||||||||||
Grasberg
block cave
|
Mill
|
1,007
|
1.02
|
0.81
|
-
|
3.45
|
-
|
85.6
|
67.7
|
-
|
60.6
|
-
|
||||||||||||
Kucing
Liar
|
Mill
|
441
|
1.24
|
1.09
|
-
|
6.90
|
-
|
85.3
|
45.6
|
-
|
38.4
|
-
|
||||||||||||
Deep
Mill Level Zone
|
Mill
|
494
|
0.89
|
0.75
|
-
|
4.47
|
-
|
86.0
|
76.7
|
-
|
62.7
|
-
|
||||||||||||
Big
Gossan
|
Mill
|
56
|
2.23
|
1.18
|
-
|
14.57
|
-
|
92.2
|
67.8
|
-
|
64.3
|
-
|
||||||||||||
2,664
|
||||||||||||||||||||||||
Africa
|
||||||||||||||||||||||||
Tenke
Fungurume
|
Agitation
leach
|
119
|
2.64
|
-
|
-
|
|
-
|
0.35
|
84.8
|
-
|
-
|
|
-
|
76.5
|
||||||||||
Total
|
14,067
|
|||||||||||||||||||||||
a. Recoveries
are net of estimated mill and smelter losses.
|
||||||||||||||||||||||||
b. Grade
not shown because of
rounding.
|
Recoverable Proven and Probable
Reserves
|
||||||||||||||
Estimated at December 31,
2008
|
||||||||||||||
Recoverable
Reserves
|
||||||||||||||
Copper
|
Gold
|
Moly
|
Silver
|
Cobalt
|
||||||||||
FCX’s
|
Processing
|
billion
|
million
|
billion
|
million
|
billion
|
||||||||
Interest
|
Method
|
lbs.
|
ozs.
|
lbs.
|
ozs.
|
lbs.
|
||||||||
North America
|
||||||||||||||
Morenci
|
85%
|
Mill
|
1.7
|
-
|
0.03
|
-
|
-
|
|||||||
Crushed
leach
|
3.8
|
-
|
-
|
-
|
-
|
|||||||||
ROM
leach
|
4.0
|
-
|
-
|
-
|
-
|
|||||||||
Sierrita
|
100%
|
Mill
|
6.8
|
0.1
|
0.77
|
34.9
|
-
|
|||||||
ROM
leach
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Bagdad
|
100%
|
Mill
|
5.0
|
0.1
|
0.25
|
21.3
|
-
|
|||||||
ROM
leach
|
0.3
|
-
|
-
|
-
|
-
|
|||||||||
Safford
|
100%
|
Crushed
leach
|
2.5
|
-
|
-
|
-
|
-
|
|||||||
Tyrone
|
100%
|
ROM
leach
|
1.3
|
-
|
-
|
-
|
-
|
|||||||
Henderson
|
100%
|
Mill
|
-
|
-
|
0.50
|
-
|
-
|
|||||||
Chino
|
100%
|
Mill
|
0.5
|
-
|
0.01
|
0.5
|
-
|
|||||||
ROM
leach
|
0.7
|
-
|
-
|
-
|
-
|
|||||||||
Miami
|
100%
|
ROM
leach
|
0.5
|
-
|
-
|
-
|
-
|
|||||||
Climax
|
100%
|
Mill
|
-
|
-
|
0.53
|
-
|
-
|
|||||||
Cobre
|
100%
|
ROM
leach
|
0.4
|
-
|
-
|
-
|
-
|
|||||||
27.5
|
0.2
|
2.09
|
56.7
|
-
|
||||||||||
Recoverable
metal in stockpiles
|
2.3
|
-
|
-
|
-
|
-
|
|||||||||
100%
operations
|
29.8
|
0.2
|
2.09
|
56.7
|
-
|
|||||||||
Consolidated
basisa
|
28.3
|
0.2
|
2.08
|
56.7
|
-
|
|||||||||
Net
equity interestb
|
28.3
|
0.2
|
2.08
|
56.7
|
-
|
|||||||||
South America
|
||||||||||||||
Cerro
Verde
|
53.56%
|
Mill
|
18.9
|
-
|
0.39
|
54.4
|
-
|
|||||||
Crushed
leach
|
1.7
|
-
|
-
|
-
|
-
|
|||||||||
ROM
leach
|
0.3
|
-
|
-
|
-
|
-
|
|||||||||
El
Abra
|
51%
|
Crushed
leach
|
4.2
|
-
|
-
|
-
|
-
|
|||||||
ROM
leach
|
1.0
|
-
|
-
|
-
|
-
|
|||||||||
Candelaria
|
80%
|
Mill
|
4.3
|
1.1
|
-
|
18.6
|
-
|
|||||||
Ojos
del Salado
|
80%
|
Mill
|
0.2
|
-
|
-
|
0.3
|
-
|
|||||||
30.6
|
1.1
|
0.39
|
73.3
|
-
|
||||||||||
Recoverable
metal in stockpiles
|
1.6
|
0.2
|
0.01
|
4.2
|
-
|
|||||||||
100%
operations
|
32.2
|
1.3
|
0.40
|
77.5
|
-
|
|||||||||
Consolidated
basisa
|
32.2
|
1.3
|
0.40
|
77.5
|
-
|
|||||||||
Net
equity interestb
|
18.4
|
1.0
|
0.22
|
47.2
|
-
|
|||||||||
Indonesia
|
||||||||||||||
Grasberg
open pit
|
(c)
|
Mill
|
7.1
|
12.0
|
-
|
14.0
|
-
|
|||||||
Deep
Ore Zone
|
(c)
|
Mill
|
3.3
|
4.6
|
-
|
15.4
|
-
|
|||||||
Grasberg
block cave
|
(c)
|
Mill
|
19.4
|
17.7
|
-
|
67.7
|
-
|
|||||||
Kucing
Liar
|
(c)
|
Mill
|
10.3
|
7.1
|
-
|
37.6
|
-
|
|||||||
Deep
Mill Level Zone
|
(c)
|
Mill
|
8.3
|
9.1
|
-
|
44.5
|
-
|
|||||||
Big
Gossan
|
(c)
|
Mill
|
2.5
|
1.4
|
-
|
16.7
|
-
|
|||||||
50.9
|
51.9
|
-
|
195.9
|
-
|
||||||||||
Recoverable
metal in stockpiles
|
-
|
-
|
-
|
-
|
-
|
|||||||||
100%
operations
|
50.9
|
51.9
|
-
|
195.9
|
-
|
|||||||||
Consolidated
basisa
|
35.6
|
38.5
|
-
|
132.4
|
-
|
|||||||||
Net
equity interestb
|
32.3
|
35.0
|
-
|
120.0
|
-
|
|||||||||
Africa
|
||||||||||||||
Tenke
Fungurume
|
57.75%
|
Agitation
leach
|
5.9
|
-
|
-
|
-
|
0.7
|
|||||||
100%
operations
|
5.9
|
-
|
-
|
-
|
0.7
|
|||||||||
Consolidated
basisa
|
5.9
|
-
|
-
|
-
|
0.7
|
|||||||||
Net
equity interestb
|
3.4
|
-
|
-
|
-
|
0.4
|
|||||||||
TOTAL
– 100% operations
|
118.8
|
53.4
|
2.49
|
330.1
|
0.7
|
|||||||||
TOTAL
– Consolidated basisa
|
102.0
|
40.0
|
2.48
|
266.6
|
0.7
|
|||||||||
TOTAL
– Net equity interestb
|
82.4
|
36.2
|
2.30
|
223.9
|
0.4
|
|||||||||
a. Consolidated
basis represents estimated metal quantities after reduction for joint
venture partner interests at the Morenci mine in North America and at the
Grasberg minerals district in Indonesia.
|
||||||||||||||
b. Net equity
interest represents estimated consolidated basis metal quantities further
reduced for minority interest ownership.
|
||||||||||||||
c. Our
joint venture agreement with Rio Tinto provides that PT Freeport Indonesia
will receive cash flow from specified annual amounts of copper, gold and
silver through 2021, calculated by reference to its proven and probable
reserves as of December 31, 1994, and 60 percent of all remaining cash
flow.
|
Moly
Cutoff Grade
|
||||||||
Copper
Equivalent Cutoff Grade (Percent)
|
(Percent)
|
|||||||
Crushed
or
|
ROM
|
|||||||
Mill
|
Agitation
Leach
|
Leach
|
Mill
|
|||||
North America
|
||||||||
Morenci
|
0.27
|
0.23
|
0.10
|
N/A
|
||||
Sierrita
|
0.24
|
N/A
|
0.07
|
N/A
|
||||
Bagdad
|
0.24
|
N/A
|
0.08
|
N/A
|
||||
Safford
|
N/A
|
0.12
|
N/A
|
N/A
|
||||
Tyrone
|
N/A
|
N/A
|
0.05
|
N/A
|
||||
Henderson
|
N/A
|
N/A
|
N/A
|
0.12
|
||||
Chino
|
0.28
|
N/A
|
0.10
|
N/A
|
||||
Miami
|
N/A
|
N/A
|
0.04
|
N/A
|
||||
Climax
|
N/A
|
N/A
|
N/A
|
0.06
|
||||
Cobre
|
N/A
|
N/A
|
0.10
|
N/A
|
||||
South America
|
||||||||
Cerro
Verde
|
0.14
|
0.24
|
0.18
|
N/A
|
||||
El
Abra
|
N/A
|
0.20
|
0.07
|
N/A
|
||||
Candelaria
|
0.21
|
N/A
|
N/A
|
N/A
|
||||
Ojos
del Salado
|
0.81
|
N/A
|
N/A
|
N/A
|
||||
Indonesia
|
||||||||
Grasberg
open pit
|
0.53
|
N/A
|
N/A
|
N/A
|
||||
Deep
Ore Zone
|
0.59
|
N/A
|
N/A
|
N/A
|
||||
Grasberg
block cave
|
0.51
|
N/A
|
N/A
|
N/A
|
||||
Kucing
Liar
|
0.73
|
N/A
|
N/A
|
N/A
|
||||
Deep
Mill Level Zone
|
0.55
|
N/A
|
N/A
|
N/A
|
||||
Big
Gossan
|
1.37
|
N/A
|
N/A
|
N/A
|
||||
Africa
|
||||||||
Tenke
Fungurume
|
N/A
|
1.50
|
N/A
|
N/A
|
Average
Spacing in Meters
|
||||||||||
Proven
|
Probable
|
|||||||||
Mining
Unit
|
Mill
|
Leach
|
Mill
|
Leach
|
||||||
North America
|
||||||||||
Morenci
|
Open
Pit
|
86
|
86
|
122
|
122
|
|||||
Sierrita
|
Open
Pit
|
69
|
33
|
115
|
75
|
|||||
Bagdad
|
Open
Pit
|
86
|
86
|
122
|
122
|
|||||
Safford
|
Open
Pit
|
N/A
|
61
|
N/A
|
122
|
|||||
Tyrone
|
Open
Pit
|
N/A
|
86
|
N/A
|
86
|
|||||
Henderson
|
Block
Cave
|
38
|
N/A
|
85
|
N/A
|
|||||
Chino
|
Open
Pit
|
43
|
86
|
86
|
122
|
|||||
Miami
|
Open
Pit
|
N/A
|
61
|
N/A
|
91
|
|||||
Climax
|
Open
Pit
|
61
|
N/A
|
122
|
N/A
|
|||||
Cobre
|
Open
Pit
|
N/A
|
61
|
N/A
|
91
|
|||||
South America
|
||||||||||
Cerro
Verde
|
Open
Pit
|
50
|
50
|
100
|
100
|
|||||
El
Abra
|
Open
Pit
|
N/A
|
75
|
N/A
|
120
|
|||||
Candelaria
|
Open
Pit
|
35
|
N/A
|
70
|
N/A
|
|||||
Ojos
del Salado
|
Sublevel
Stoping
|
25
|
N/A
|
50
|
N/A
|
|||||
Indonesia
|
||||||||||
Grasberg
|
Open
Pit
|
36
|
N/A
|
92
|
N/A
|
|||||
Deep
Ore Zone
|
Block
Cave
|
20
|
N/A
|
51
|
N/A
|
|||||
Grasberg
|
Block
Cave
|
47
|
N/A
|
80
|
N/A
|
|||||
Kucing
Liar
|
Block
Cave
|
39
|
N/A
|
97
|
N/A
|
|||||
Deep
Mill Level Zone
|
Block
Cave
|
21
|
N/A
|
89
|
N/A
|
|||||
Big
Gossan
|
Open
Stope
|
13
|
N/A
|
42
|
N/A
|
|||||
Africa
|
||||||||||
Tenke
Fungurume
|
Open
Pit
|
N/A
|
50
|
N/A
|
100
|
Recoverable
Copper in Stockpiles
|
||||||||
Recoverable
|
||||||||
Millions
of
|
Average
|
Recovery
|
Copper
|
|||||
Metric
Tons
|
Grade
(%)
|
Rate
(%)
|
(Billion
Pounds)
|
|||||
Mill stockpiles
|
||||||||
Cerro
Verde
|
56
|
0.49
|
81.7
|
0.5
|
||||
Candelaria
|
88
|
0.41
|
82.6
|
0.6
|
||||
Subtotal
|
144
|
0.44
|
82.3
|
1.1
|
||||
Leach stockpiles
|
||||||||
Morenci
|
4,422
|
0.25
|
1.9
|
0.5
|
||||
Sierrita
|
647
|
0.15
|
13.6
|
0.3
|
||||
Bagdad
|
385
|
0.28
|
3.8
|
0.1
|
||||
Safford
|
47
|
0.38
|
33.9
|
0.1
|
||||
Tyrone
|
944
|
0.28
|
2.0
|
0.1
|
||||
Chino
|
1,623
|
0.25
|
12.6
|
1.2
|
||||
Miami
|
433
|
0.39
|
1.9
|
0.1
|
||||
Cerro
Verde
|
336
|
0.54
|
3.2
|
0.1
|
||||
El
Abra
|
252
|
0.33
|
18.0
|
0.3
|
||||
Subtotal
|
9,089
|
0.27
|
5.2
|
2.8
|
||||
Total
100% basis
|
3.9
|
|||||||
Consolidated
basisa
|
3.8
|
|||||||
Net
equity interestb
|
3.3
|
|||||||
a. Consolidated
basis represents estimated metal quantities after reduction for our joint
venture partner’s interest in the Morenci mine in North
America.
|
||||||||
b. Net equity
interest represents estimated consolidated basis metal quantities further
reduced for minority interest ownership.
|
||||||||
Mineralized
Material
|
|||||||||||||||||||||||
Estimated
at December 31, 2008
|
|||||||||||||||||||||||
Milling
Material
|
Leaching
Material
|
Total
Mineralized Material
|
|||||||||||||||||||||
Million
|
Million
|
Million
|
|||||||||||||||||||||
FCX’s
|
metric
|
Copper
|
Gold
|
Moly
|
metric
|
Copper
|
metric
|
Copper
|
Gold
|
Moly
|
|||||||||||||
Interest
|
tons
|
%
|
g/t
|
%
|
tons
|
%
|
tons
|
%
|
g/t
|
%
|
|||||||||||||
North America
|
|||||||||||||||||||||||
Morenci
|
85%
|
304
|
0.38
|
-
|
-
|
1,950
|
0.22
|
2,254
|
0.24
|
-
|
-
|
||||||||||||
Sierrita
|
100%
|
2,154
|
0.21
|
-
|
0.022
|
24
|
0.16
|
2,178
|
0.20
|
-
|
0.022
|
||||||||||||
Bagdad
|
100%
|
460
|
0.33
|
-
|
0.019
|
131
|
0.10
|
591
|
0.28
|
-
|
0.014
|
||||||||||||
Safford
|
100%
|
219
|
0.57
|
-
|
-
|
38
|
0.27
|
257
|
0.53
|
-
|
-
|
||||||||||||
Tyrone
|
100%
|
-
|
-
|
-
|
-
|
320
|
0.32
|
320
|
0.32
|
-
|
-
|
||||||||||||
Henderson
|
100%
|
65
|
-
|
-
|
0.126
|
-
|
-
|
65
|
-
|
-
|
0.126
|
||||||||||||
Chino
|
100%
|
411
|
0.48
|
-
|
0.013
|
104
|
0.16
|
515
|
0.41
|
-
|
0.010
|
||||||||||||
Miami
|
100%
|
-
|
-
|
-
|
-
|
52
|
0.45
|
52
|
0.45
|
-
|
-
|
||||||||||||
Climax
|
100%
|
448
|
-
|
-
|
0.170
|
-
|
-
|
448
|
-
|
-
|
0.170
|
||||||||||||
Cobre
|
100%
|
3
|
0.94
|
-
|
-
|
-
|
-
|
3
|
0.94
|
-
|
-
|
||||||||||||
Ajo
|
100%
|
639
|
0.36
|
-
|
-
|
-
|
-
|
639
|
0.36
|
-
|
-
|
||||||||||||
Cochise/Bisbee
|
100%
|
-
|
-
|
-
|
-
|
301
|
0.44
|
301
|
0.44
|
-
|
-
|
||||||||||||
Lone
Star
|
100%
|
-
|
-
|
-
|
-
|
767
|
0.44
|
767
|
0.44
|
-
|
-
|
||||||||||||
Sanchez
|
100%
|
-
|
-
|
-
|
-
|
209
|
0.29
|
209
|
0.29
|
-
|
-
|
||||||||||||
Tohono
|
100%
|
247
|
0.68
|
-
|
-
|
280
|
0.67
|
527
|
0.68
|
-
|
-
|
||||||||||||
South America
|
|||||||||||||||||||||||
Cerro
Verde
|
53.56%
|
191
|
0.29
|
-
|
0.012
|
20
|
0.35
|
211
|
0.29
|
-
|
0.011
|
||||||||||||
El
Abra
|
51%
|
802
|
0.40
|
-
|
-
|
371
|
0.32
|
1,173
|
0.37
|
-
|
-
|
||||||||||||
Candelariaa
|
80%
|
144
|
0.52
|
0.12
|
-
|
-
|
-
|
144
|
0.52
|
0.12
|
-
|
||||||||||||
Indonesia
|
|||||||||||||||||||||||
Grasberg
districtb
|
54.38%f
|
2,601
|
0.58
|
0.52
|
-
|
-
|
-
|
2,601
|
0.58
|
0.52
|
-
|
||||||||||||
Africa
|
|||||||||||||||||||||||
Tenke
Fungurumec
|
57.75%
|
62
|
3.72
|
-
|
-
|
26
|
4.16
|
88
|
3.85
|
-
|
-
|
||||||||||||
Total
100% basis
|
8,750
|
4,593
|
13,343
|
||||||||||||||||||||
Consolidated basisd
|
7,663
|
4,301
|
11,964
|
||||||||||||||||||||
Net equity intereste
|
6,981
|
4,099
|
11,080
|
||||||||||||||||||||
a. Candelaria
stated tonnage also includes 1.7 grams of silver per metric
ton.
b. Grasberg
stated tonnage also includes 3.4 grams of silver per metric
ton.
c. Tenke
Fungurume stated tonnage also includes 0.29 percent cobalt.
d. Consolidated
basis represents estimated mineralized material after reduction for our
joint venture partners’ interest in the Morenci mine in North America and
at the Grasberg minerals district in Indonesia.
e. Net
equity interest represents estimated consolidated basis mineralized
material further reduced for minority interest ownership.
f. FCX’s
interest in the Grasberg minerals district reflects our 60 percent joint
venture ownership, further reduced by minority interest
ownership.
|
·
|
the
strength of the U.S. economy and the economies of other industrialized and
developing nations, including China, which has become the largest consumer
of refined copper in the world;
|
·
|
available
supplies of copper from mine production and
inventories;
|
·
|
sales
by holders and producers of copper;
|
·
|
demand
for industrial products containing
copper;
|
·
|
investment
activity, including speculation, in copper as a
commodity;
|
·
|
the
availability and cost of substitute materials;
and
|
·
|
currency
exchange fluctuations, including the relative strength or weakness of the
U.S. dollar.
|
·
|
the
strength of the U.S. economy and the economies of other
industrialized and developing nations, including
China;
|
·
|
global
or regional political or economic
crises;
|
·
|
the
relative strength of the U.S. dollar and other
currencies;
|
·
|
expectations
with respect to the rate of
inflation;
|
·
|
interest
rates;
|
·
|
purchases
and sales of gold by central banks and other
holders;
|
·
|
demand
for jewelry containing gold; and
|
·
|
investment
activity, including speculation, in gold as a
commodity.
|
·
|
the
worldwide balance of molybdenum demand and
supply;
|
·
|
rates
of global economic growth, especially construction and infrastructure
activity that requires significant amounts of
steel;
|
·
|
the
volume of molybdenum produced as a by-product of copper
production;
|
·
|
inventory
levels;
|
·
|
currency
exchange fluctuations, including the relative strength or weakness of the
U.S. dollar; and
|
·
|
production
costs of U.S. and foreign
competitors.
|
·
|
incur
additional indebtedness;
|
·
|
engage
in transactions with affiliates;
|
·
|
create
liens on our assets;
|
·
|
make
payments in respect of equity issued by us or our subsidiaries, including
the payment of dividends on our common
stock;
|
·
|
make
investments in, or loans, to entities that we do not control, including
joint ventures;
|
·
|
sell
assets;
|
·
|
merge
with or into other companies;
|
·
|
enter
into sale and leaseback
transactions;
|
·
|
enter
into unrelated businesses;
|
·
|
enter
into agreements or arrangements that restrict the ability of certain of
our subsidiaries to pay dividends or other
distributions;
|
·
|
prepay
indebtedness; and
|
·
|
enter
into hedging transactions other than in the ordinary course of
business.
|
·
|
unanticipated
ground and water conditions;
|
·
|
adverse
claims to water rights and shortages of water to which we have
rights;
|
·
|
adjacent
land ownership that results in constraints on current or future mine
operations;
|
·
|
geological
problems, including earthquakes and other natural
disasters;
|
·
|
metallurgical
and other processing problems;
|
·
|
the
occurrence of unusual weather or operating conditions and other force
majeure events;
|
·
|
lower
than expected ore grades or recovery
rates;
|
·
|
accidents;
|
·
|
delays
in the receipt of or failure to receive necessary government
permits;
|
·
|
the
results of litigation, including appeals of agency
decisions;
|
·
|
uncertainty
of exploration and development;
|
·
|
delays
in transportation;
|
·
|
interruption
of energy supply;
|
·
|
labor
disputes;
|
·
|
inability
to obtain satisfactory insurance coverage;
and
|
·
|
the
failure of equipment or processes to operate in accordance with
specifications or expectations.
|
·
|
severely
limited infrastructure, including road and rail
access;
|
·
|
limited
and possibly unreliable energy
supply;
|
·
|
security
risks; and
|
·
|
limited
health care in an area plagued by disease and other potential endemic
health issues, including malaria.
|
·
|
political
risks associated with the limited tenure of the newly elected
government;
|
·
|
cancellation
or renegotiation of mining contracts by the
government;
|
·
|
royalty
and tax increases or claims by governmental entities, including
retroactive claims;
|
·
|
security
risks due to the remote location and violence in the northeastern
provinces of the Democratic Republic of
Congo;
|
·
|
risk
of loss of property due to expropriation or nationalization of property;
and
|
·
|
risk
of loss due to civil strife, acts of war, guerrilla activities,
insurrection and terrorism.
|
·
|
authorize
our board of directors to issue preferred stock without stockholder
approval and to designate the rights, preferences and privileges of each
class; if issued, such preferred stock would increase the number of
outstanding shares of our capital stock and could include terms that may
deter an acquisition of us;
|
·
|
establish
advance notice requirements for nominations to the board of directors or
for proposals that can be acted on at stockholder
meetings;
|
·
|
limit
who may call stockholder meetings;
and
|
·
|
require
the approval of the holders of two thirds of our outstanding common stock
to enter into certain business combination transactions, subject to
certain exceptions, including if the consideration to be received by our
common stockholders in the transaction is deemed to be a fair
price.
|
Name
|
Age
|
Position
or Office
|
||
James
R. Moffett
|
70
|
Chairman
of the Board of FCX. President Commissioner
|
||
of
PT Freeport Indonesia.
|
||||
Richard
C. Adkerson
|
62
|
Director,
President and Chief Executive Officer of FCX.
|
||
Director
and Executive Vice President of PT Freeport Indonesia. Chairman of the
Board of Directors of Atlantic Copper.
|
||||
Michael
J. Arnold
|
56
|
Executive
Vice President and Chief Administrative
|
||
Officer
of FCX.
|
||||
Kathleen
L. Quirk
|
45
|
Executive
Vice President, Chief Financial Officer and
|
||
Treasurer
of FCX. Commissioner of PT Freeport Indonesia. Director of Atlantic
Copper.
|
2008
|
2007
|
|||||||||||
High
|
Low
|
High
|
Low
|
|||||||||
First
Quarter
|
$
|
107.37
|
$
|
68.96
|
$
|
67.19
|
$
|
48.85
|
||||
Second
Quarter
|
127.24
|
93.00
|
85.50
|
65.62
|
||||||||
Third
Quarter
|
117.11
|
51.21
|
110.60
|
67.07
|
||||||||
Fourth
Quarter
|
56.75
|
15.70
|
120.20
|
85.71
|
2008
|
||||||
Per
Share
Amount
|
Record
Date
|
Payment
Date
|
||||
First
Quarter
|
$ 0.4375
|
Jan.
15, 2008
|
Feb.
1, 2008
|
|||
Second
Quarter
|
0.4375
|
Apr.
15, 2008
|
May
1, 2008
|
|||
Third
Quarter
|
0.4375
|
July
15, 2008
|
Aug.
1, 2008
|
|||
Fourth
Quarter
|
0.5000
|
Oct.
15, 2008
|
Nov.
1,
2008
|
2007
|
||||||
Per
Share
Amount
|
Record
Date
|
Payment
Date
|
||||
First
Quarter
|
|
$ 0.3125
|
Jan.
16, 2007
|
Feb.
1, 2007
|
||
Second
Quarter
|
0.3125
|
Apr.
16, 2007
|
May
1, 2007
|
|||
Third
Quarter
|
0.3125
|
July
16, 2007
|
Aug.
1, 2007
|
|||
Fourth
Quarter
|
0.3125
|
Oct.
15, 2007
|
Nov.
1, 2007
|
(d)
Maximum Number
|
|||||||||
(c)
Total Number of
|
(or
Approximate
|
||||||||
(a)
Total
|
Shares
(or Units)
|
Dollar
Value) of Shares
|
|||||||
Number
of
|
(b)
Average
|
Purchased
as Part of
|
(or
Units) That May
|
||||||
Shares
(or Units)
|
Price
Paid Per
|
Publicly
Announced
|
Yet
Be Purchased Under
|
||||||
Period
|
Purchaseda
|
Share
(or Unit)
|
Plans
or Programs
|
the
Plans or Programsb
|
|||||
October
1-31, 2008
|
-
|
$
|
-
|
-
|
-
|
||||
November
1-30, 2008
|
156
|
$
|
28.62
|
-
|
-
|
||||
December
1-31, 2008
|
84
|
$
|
23.40
|
-
|
-
|
||||
Total
|
240
|
$
|
26.78
|
-
|
23,685,500
|
||||
a.
|
This
category includes shares repurchased under FCX’s applicable stock
incentive plans (Plans) and its non-qualified supplemental savings plan
(SSP). Through the Plans, FCX repurchased 84 shares to satisfy tax
obligations on restricted stock awards and to cover the cost of option
exercises. Under the SSP, FCX repurchased 156 shares as a result of
dividends paid.
|
b.
|
In
December 2007, our Board of Directors approved an open market share
purchase program for up to 20 million shares. In July 2008, our Board of
Directors approved an increase in our open market share purchase program
for up to 30 million shares. The program does not have an expiration date.
No shares were purchased during the three-month period December 31,
2008.
|
Years
Ended December 31,
|
|||||||||||||||
2008
|
2007a
|
2006
|
2005
|
2004
|
|||||||||||
FCX
CONSOLIDATED FINANCIAL DATA
|
(In
Millions, Except Per Share Amounts)
|
||||||||||||||
Revenues
|
$
|
17,796
|
b
|
$
|
16,939
|
b,c
|
$
|
5,791
|
$
|
4,179
|
$
|
2,372
|
|||
Operating
(loss) income
|
(12,710
|
)b,d,e,f
|
6,555
|
b,c,f
|
2,869
|
2,177
|
704
|
||||||||
(Loss)
income from continuing operations applicable
|
|||||||||||||||
to
common stock
|
(11,341
|
)
|
2,734
|
1,396
|
935
|
157
|
|||||||||
Net
(loss) income applicable to common stock
|
(11,341
|
)b,d,e,f,g
|
2,769
|
b,c,f,g
|
1,396
|
g,h
|
935
|
g
|
157
|
g
|
|||||
Basic
net (loss) income per share of common stock:
|
|||||||||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
8.02
|
$
|
7.32
|
$
|
5.18
|
$
|
0.86
|
||||
Discontinued
operations
|
–
|
0.10
|
–
|
–
|
–
|
||||||||||
Basic
net (loss) income per share of common stock
|
$
|
(29.72
|
)
|
$
|
8.12
|
$
|
7.32
|
$
|
5.18
|
$
|
0.86
|
||||
Basic
average shares outstanding
|
382
|
341
|
191
|
180
|
182
|
||||||||||
Diluted
net (loss) income per share of common stock:
|
|||||||||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
7.41
|
$
|
6.63
|
$
|
4.67
|
$
|
0.85
|
||||
Discontinued
operations
|
–
|
0.09
|
–
|
–
|
–
|
||||||||||
Diluted
net (loss) income per share of common stock
|
$
|
(29.72
|
)b,d,e,f,g
|
$
|
7.50
|
b,c,f,g
|
$
|
6.63
|
g,h
|
$
|
4.67
|
g
|
$
|
0.85
|
g
|
Diluted
average shares outstanding
|
382
|
397
|
221
|
220
|
185
|
||||||||||
Dividends
declared per common share
|
$
|
1.375
|
$
|
1.375
|
$
|
5.0625
|
$
|
2.50
|
$
|
1.10
|
|||||
At
December 31:
|
|||||||||||||||
Cash
and cash equivalents
|
$
|
872
|
$
|
1,626
|
$
|
907
|
$
|
764
|
$
|
552
|
|||||
Property,
plant, equipment and development costs, net
|
16,002
|
25,715
|
3,099
|
3,089
|
3,199
|
||||||||||
Goodwill
|
–
|
6,105
|
–
|
–
|
–
|
||||||||||
Total
assets
|
23,353
|
40,661
|
5,390
|
h
|
5,550
|
5,087
|
|||||||||
Total
debt, including current portion and short-term borrowings
|
7,351
|
7,211
|
680
|
1,256
|
1,952
|
||||||||||
Total
stockholders’ equity
|
5,773
|
18,234
|
2,445
|
h
|
1,843
|
1,164
|
a.
|
Includes
the results of Phelps Dodge Corporation (Phelps Dodge) beginning March 20,
2007.
|
b.
|
Includes
charges totaling $78 million ($52 million to net loss or $0.14 per share)
in 2008 and $30 million ($18 million to net income or $0.05 per share) in
2007 for unrealized losses on copper derivative contracts entered into
with our domestic copper rod
customers.
|
c.
|
Includes
charges totaling $175 million ($106 million to net income or $0.27 per
share) for mark-to-market accounting adjustments on the 2007 copper price
protection program assumed in the acquisition of Phelps
Dodge.
|
d.
|
Includes
charges totaling $17.0 billion ($12.7 billion to net loss or $33.21 per
share) associated with asset impairment, restructuring and other
charges.
|
e.
|
Includes
charges for lower of cost or market inventory adjustments totaling $782
million ($479 million to net loss or $1.26 per
share).
|
f.
|
Includes
purchase accounting impacts related to the acquisition of Phelps Dodge
totaling $1.1 billion, including $1.0 billion to operating loss and $93
million for non-operating income and expenses ($679 million to net loss or
$1.78 per share) in 2008 and $1.3 billion to operating income ($793
million to net income or $2.00 per share) in
2007.
|
g.
|
Includes
net losses on early extinguishment and conversion of debt totaling $5
million ($0.01 per share) in 2008, $132 million ($0.33 per share) in 2007,
$30 million ($0.14 per share) in 2006, $40 million ($0.18 per share) in
2005 and $7 million ($0.04 per share) in 2004; 2008 also includes charges
totaling $22 million ($0.06 per share) associated with privately
negotiated transactions to induce conversion of a portion of our 5½%
Convertible Perpetual Preferred Stock into FCX common
stock.
|
h.
|
Effective
January 1, 2006, we adopted Emerging Issues Task Force Issue No. 04-6,
“Accounting for Stripping Costs Incurred during Production in the Mining
Industry” (EITF 04-6), and recorded a cumulative effect adjustment ($149
million) to reduce beginning retained earnings for our deferred mining
costs asset ($285 million) as of December 31, 2005, net of taxes, minority
interest share and inventory effects ($136 million). As a result of
adopting EITF 04-6, income from continuing operations before income taxes
and minority interests was $35 million lower and net income was $19
million ($0.08 per share) lower than if we had not adopted EITF 04-6.
Effective January 1, 2006, we also adopted Statement of Financial
Accounting Standards (SFAS) No. 123 (revised 2004), “Share-Based Payment”
(SFAS No. 123R). As a result of adopting SFAS No. 123R, income from
continuing operations before income taxes and minority interests was $28
million lower and net income was $16 million ($0.07 per share) lower than
if we had not adopted SFAS No. 123R. Results for prior years have not been
restated.
|
Years
Ended December 31,
|
|||||||||||||||
2008
|
2007a
|
2006a
|
2005a
|
2004a
|
|||||||||||
FCX
OPERATING DATA, Net of Joint Venture Interests
|
|||||||||||||||
Copper
(recoverable)
|
|||||||||||||||
Production
(millions of pounds)
|
4,030
|
3,884
|
3,639
|
3,912
|
3,518
|
||||||||||
Production
(thousands of metric tons)
|
1,828
|
1,762
|
1,651
|
1,774
|
1,596
|
||||||||||
Sales
(millions of pounds)
|
4,066
|
3,862
|
3,630
|
3,933
|
3,530
|
||||||||||
Sales
(thousands of metric tons)
|
1,844
|
1,752
|
1,647
|
1,784
|
1,601
|
||||||||||
Average
realized price per pound
|
$
|
2.69
|
$
|
3.22
|
b
|
$
|
2.80
|
b
|
$
|
1.66
|
b
|
$
|
1.33
|
||
Gold
(recoverable)
|
|||||||||||||||
Production
(thousands of ounces)
|
1,291
|
2,329
|
1,863
|
2,923
|
1,591
|
||||||||||
Sales
(thousands of ounces)
|
1,314
|
2,320
|
1,866
|
2,925
|
1,577
|
||||||||||
Average
realized price per ounce
|
$
|
861
|
$
|
682
|
$
|
566
|
c
|
$
|
454
|
$
|
411
|
||||
Molybdenum
(recoverable)
|
|||||||||||||||
Production
(millions of pounds)
|
73
|
70
|
68
|
62
|
57
|
||||||||||
Sales
(millions of pounds)
|
71
|
69
|
69
|
60
|
63
|
||||||||||
Average
realized price per pound
|
$
|
30.55
|
$
|
25.87
|
$
|
21.87
|
$
|
25.89
|
$
|
12.71
|
|||||
NORTH
AMERICA COPPER MINES
|
|||||||||||||||
Operating
Data, Net of Joint Venture Interest
|
|||||||||||||||
Copper
(recoverable)
|
|||||||||||||||
Production
(millions of pounds)
|
1,430
|
1,320
|
1,305
|
1,365
|
1,384
|
||||||||||
Production
(thousands of metric tons)
|
649
|
599
|
592
|
619
|
628
|
||||||||||
Sales
(millions of pounds)
|
1,434
|
1,332
|
1,303
|
1,383
|
1,393
|
||||||||||
Sales
(thousands of metric tons)
|
650
|
604
|
591
|
627
|
632
|
||||||||||
Average
realized price per pound
|
$
|
3.07
|
$
|
3.10
|
d
|
$
|
2.29
|
d
|
$
|
1.49
|
d
|
$
|
1.29
|
||
Molybdenum
(by-product)
|
|||||||||||||||
Production
(millions of recoverable pounds)
|
30
|
30
|
31
|
30
|
30
|
||||||||||
100%
Operating Data, Including Joint Venture Interest
|
|||||||||||||||
Solution extraction/electrowinning (SX/EW)
operations
|
|||||||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
1,095,200
|
798,200
|
801,200
|
778,500
|
742,800
|
||||||||||
Average
copper ore grade (percent)
|
0.22
|
0.23
|
0.30
|
0.26
|
0.27
|
||||||||||
Copper
production (millions of recoverable pounds)
|
943
|
940
|
1,013
|
1,066
|
1,134
|
||||||||||
Mill operations
|
|||||||||||||||
Ore
milled (metric tons per day)
|
249,600
|
223,800
|
199,300
|
194,800
|
166,400
|
||||||||||
Average
ore grade (percent):
|
|||||||||||||||
Copper
|
0.40
|
0.35
|
0.33
|
0.33
|
0.36
|
||||||||||
Molybdenum
|
0.02
|
0.02
|
0.02
|
0.03
|
0.03
|
||||||||||
Copper
recovery rate (percent)
|
82.9
|
84.5
|
85.0
|
83.9
|
85.6
|
||||||||||
Production
(millions of recoverable pounds):
|
|||||||||||||||
Copper
|
599
|
501
|
414
|
419
|
375
|
||||||||||
Molybdenum
(by-product)
|
30
|
30
|
31
|
30
|
30
|
||||||||||
SOUTH
AMERICA COPPER MINES OPERATING DATA
|
|||||||||||||||
Copper
(recoverable)
|
|||||||||||||||
Production
(millions of pounds)
|
1,506
|
1,413
|
1,133
|
1,091
|
1,137
|
||||||||||
Production
(thousands of metric tons)
|
683
|
641
|
514
|
495
|
516
|
||||||||||
Sales
(millions of pounds)
|
1,521
|
1,399
|
1,126
|
1,093
|
1,145
|
||||||||||
Sales
(thousands of metric tons)
|
690
|
635
|
511
|
496
|
519
|
||||||||||
Average
realized price per pound
|
$
|
2.57
|
$
|
3.25
|
$
|
3.03
|
$
|
1.63
|
e
|
$
|
1.33
|
||||
Gold
(recoverable)
|
|||||||||||||||
Production
(thousands of ounces)
|
114
|
116
|
112
|
117
|
122
|
||||||||||
Sales
(thousands of ounces)
|
116
|
114
|
111
|
117
|
122
|
||||||||||
Average
realized price per ounce
|
$
|
853
|
$
|
683
|
$
|
552
|
$
|
425
|
$
|
409
|
|||||
Molybdenum
(by-product)
|
|||||||||||||||
Production
(millions of recoverable pounds)
|
3
|
1
|
–
|
–
|
–
|
Years
Ended December 31,
|
|||||||||||||||
2008
|
2007a
|
2006a
|
2005a
|
2004a
|
|||||||||||
SOUTH
AMERICA COPPER MINES OPERATING DATA (continued)
|
|||||||||||||||
SX/EW operations
|
|||||||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
279,700
|
289,100
|
257,400
|
264,600
|
233,600
|
||||||||||
Average
copper ore grade (percent)
|
0.45
|
0.43
|
0.45
|
0.46
|
0.51
|
||||||||||
Copper
production (millions of recoverable pounds)
|
560
|
569
|
695
|
670
|
676
|
||||||||||
Mill operations
|
|||||||||||||||
Ore
milled (metric tons per day)
|
181,400
|
167,900
|
68,500
|
68,700
|
69,700
|
||||||||||
Average
ore grade (percent):
|
|||||||||||||||
Copper
|
0.75
|
0.74
|
0.87
|
0.84
|
0.91
|
||||||||||
Molybdenum
|
0.02
|
0.02
|
N/A
|
N/A
|
N/A
|
||||||||||
Copper
recovery rate (percent)
|
89.2
|
87.1
|
93.8
|
93.9
|
94.1
|
||||||||||
Production
(millions of recoverable pounds)
|
|||||||||||||||
Copper
|
946
|
844
|
438
|
421
|
462
|
||||||||||
Molybdenum
|
3
|
1
|
–
|
–
|
–
|
||||||||||
INDONESIA
MINING
|
|||||||||||||||
Operating
Data, Net of Joint Venture Interest
|
|||||||||||||||
Copper
(recoverable)
|
|||||||||||||||
Production
(millions of pounds)
|
1,094
|
1,151
|
1,201
|
1,456
|
997
|
||||||||||
Production
(thousands of metric tons)
|
496
|
522
|
545
|
660
|
452
|
||||||||||
Sales
(millions of pounds)
|
1,111
|
1,131
|
1,201
|
1,457
|
992
|
||||||||||
Sales
(thousands of metric tons)
|
504
|
513
|
545
|
661
|
450
|
||||||||||
Average
realized price per pound
|
$
|
2.36
|
$
|
3.32
|
$
|
3.13
|
$
|
1.85
|
$
|
1.37
|
|||||
Gold
(recoverable)
|
|||||||||||||||
Production
(thousands of ounces)
|
1,163
|
2,198
|
1,732
|
2,789
|
1,456
|
||||||||||
Sales
(thousands of ounces)
|
1,182
|
2,185
|
1,736
|
2,790
|
1,443
|
||||||||||
Average
realized price per ounce
|
$
|
861
|
$
|
681
|
$
|
567
|
c
|
$
|
456
|
$
|
412
|
||||
100%
Operating Data, Including Joint Venture Interest
|
|||||||||||||||
Ore
milled (metric tons per day)
|
192,900
|
212,600
|
229,400
|
216,200
|
185,100
|
||||||||||
Average
ore grade (percent):
|
|||||||||||||||
Copper
|
0.83
|
0.82
|
0.85
|
1.13
|
0.87
|
||||||||||
Gold
|
0.66
|
1.24
|
0.85
|
1.65
|
0.88
|
||||||||||
Recovery
rates (percent):
|
|||||||||||||||
Copper
|
90.1
|
90.5
|
86.1
|
89.2
|
88.6
|
||||||||||
Gold
|
79.9
|
86.2
|
80.9
|
83.1
|
81.8
|
||||||||||
Production
(recoverable):
|
|||||||||||||||
Copper
(millions of pounds)
|
1,109
|
1,211
|
1,300
|
1,689
|
1,099
|
||||||||||
Gold
(thousands of ounces)
|
1,163
|
2,608
|
1,824
|
3,440
|
1,537
|
||||||||||
MOLYBDENUM
OPERATING DATA
|
|||||||||||||||
Molybdenum
sales (millions of pounds)f
|
71
|
69
|
69
|
60
|
63
|
||||||||||
Average
realized price per pound
|
$
|
30.55
|
$
|
25.87
|
$
|
21.87
|
$
|
25.89
|
$
|
12.71
|
|||||
Henderson
Molybdenum Mine
|
|||||||||||||||
Molybdenum
production (millions of recoverable pounds)
|
40
|
39
|
37
|
32
|
27
|
||||||||||
Ore
milled (metric tons per day)
|
24,100
|
24,000
|
22,200
|
20,300
|
16,800
|
||||||||||
Average
molybdenum ore grade (percent)
|
0.23
|
0.23
|
0.23
|
0.22
|
0.23
|
a.
|
For
comparative purposes, operating data for the years ended December 31,
2007, 2006, 2005 and 2004, combines our historical data with Phelps Dodge
pre-acquisition data. As the pre-acquisition data represents the results
of these operations under Phelps Dodge management, such combined data is
not necessarily indicative of what past results would have been under FCX
management or of future operating
results.
|
b.
|
Before
charges for hedging losses related to copper price protection programs,
amounts were $3.27 per pound for 2007, $3.08 per pound for 2006 and $1.76
per pound for 2005.
|
c.
|
Amount
was approximately $606 per ounce before a loss resulting from the
redemption of FCX’s Gold-Denominated Preferred Stock, Series
II.
|
d.
|
Before
charges for hedging losses related to copper price protection programs,
amounts were $3.25 per pound for 2007, $3.06 per pound for 2006 and $1.69
per pound for 2005.
|
e.
|
Amount
was $1.75 per pound before charges for hedging losses related to copper
price protection programs.
|
f.
|
Includes
sales of molybdenum produced as a by-product at our North and South
America copper mines.
|
Years
Ended December 31,
|
|||||
2008
|
2007
|
2006
|
2005
|
2004
|
|
Ratio
of earnings to fixed charges
|
-a
|
9.9x
|
33.1x
|
15.9x
|
4.9x
|
Ratio
of earnings to fixed charges
|
|||||
and
preferred stock dividends
|
-b
|
6.6x
|
14.3x
|
8.2x
|
2.9x
|
a.
|
As
a result of the loss recorded in 2008, the ratio coverage was less
than 1:1. We would have needed to generate additional earnings of $13.4
billion to achieve coverage of 1:1 in
2008.
|
b.
|
As
a result of the loss recorded in 2008, the ratio coverage was less
than 1:1. We would have needed to generate additional earnings of $13.8
billion to achieve coverage of 1:1 in
2008.
|
·
|
Curtailment
of copper production at high-cost North America operations and of
molybdenum production at the Henderson molybdenum mine (refer to
“Operations” for further
discussion);
|
·
|
Capital
cost reductions, including deferral of most of our project development
activities and also reduced capital spending on the Tenke Fungurume
project and projects in Indonesia (refer to “Development Projects” for
further discussion);
|
·
|
Aggressive
cost control, including workforce reductions, reduced equipment purchases
that were planned to support expansion projects, a reduction in material
and supplies inventory and reductions in exploration, research and
administrative costs; and
|
·
|
The
suspension of our annual common stock dividend (refer to “Capital
Resources and Liquidity – Financing Activities” for further
discussion).
|
·
|
Impairment
charges – During fourth-quarter 2008, we evaluated the carrying
values of our long-lived assets, including goodwill associated with the
acquisition of Phelps Dodge, for impairment. These evaluations resulted in
the recognition of impairment charges of $10.9 billion ($6.6 billion to
net loss or $17.34 per share) associated with long-lived assets and $6.0
billion ($6.0 billion to net loss or $15.69 per share) associated with
goodwill. Refer to Notes 2 and 7 and “Critical Accounting Estimates –
Asset Impairments” for further discussion of these impairment
charges.
|
·
|
LCM
inventory adjustments – Inventories are required to be recorded at
the lower of cost or market. In connection with the March 2007 acquisition
of Phelps Dodge, acquired inventories, including long-term mill and leach
stockpiles, were recorded at fair value using near-term price forecasts
reflecting the then-current price environment and management’s projections
for long-term average metal prices. As a result of the declines in copper
and molybdenum prices during fourth-quarter 2008, we recorded charges for
LCM inventory adjustments totaling $782 million ($479 million to net loss
or $1.26 per share).
|
2008 |
2009
|
|||||
(Actual)
|
(Projected)
|
|||||
Copper
(billions of recoverable pounds):
|
||||||
North
America copper mines
|
1.4
|
1.1
|
||||
South
America copper mines
|
1.5
|
1.4
|
||||
Indonesia
mining
|
1.1
|
1.3
|
||||
Africa
mininga
|
–
|
0.1
|
||||
4.1
|
b
|
3.9
|
||||
Gold
(millions of recoverable ounces)
|
||||||
Indonesia
mining
|
1.2
|
2.1
|
||||
South
America copper mines
|
0.1
|
0.1
|
||||
1.3
|
2.2
|
|||||
Molybdenum
(millions of recoverable pounds)c
|
71
|
60
|
||||
a.
|
Represents
projected sales from the Tenke Fungurume copper and cobalt mine, which is
expected to commence production during the second half of
2009.
|
b.
|
Represents
the sum of copper sales before
rounding.
|
c.
|
Includes
sales of molybdenum produced as a by-product at our North and South
America copper mines.
|
2008
|
2007
|
2006
|
|||||||||
Balance
at beginning of year
|
$
|
728
|
$
|
30
|
$
|
27
|
|||||
Liabilities
assumed in the acquisition of Phelps Dodge
|
–
|
531
|
a
|
–
|
|||||||
Liabilities
incurred
|
5
|
1
|
–
|
||||||||
Revisions
to cash flow estimates
|
21
|
179
|
b
|
–
|
|||||||
Accretion
expense
|
51
|
27
|
3
|
||||||||
Spending
|
(91
|
)
|
(40
|
)
|
–
|
||||||
Foreign
currency translation adjustment
|
(2
|
)
|
–
|
–
|
|||||||
Balance
at end of year
|
$
|
712
|
$
|
728
|
$
|
30
|
|||||
a.
|
The
fair value of AROs assumed in the acquisition of Phelps Dodge was
estimated based on projected cash flows, an estimated long-term annual
inflation rate of 2.4 percent, a discount rate based on FCX’s estimated
credit-adjusted, risk-free interest rate of 7.8 percent and a market risk
premium of 10 percent to reflect what a third-party might require to
assume these AROs.
|
b.
|
The
most significant revisions to cash flow estimates in 2007 were related to
changes at Chino, Tyrone and PT Freeport Indonesia. During 2007, Chino and
Tyrone each submitted updated third-party closure cost estimates to the
state of New Mexico as part of the permit renewal process. As a result, we
revised our cash flow estimates and increased our ARO by $95 million for
Chino and $45 million for Tyrone. Additional adjustments may be required
based upon the state’s review of the updated closure plans and any permit
conditions imposed by the state of New Mexico. Additionally, PT Freeport
Indonesia
|
2008
|
2007
|
|||||||
Balance
at beginning of year
|
$
|
1,268
|
$
|
–
|
||||
Liabilities
assumed in the acquisition of Phelps Dodge
|
117
|
1,334
|
||||||
Accretion
expensea
|
95
|
–
|
||||||
Additions
|
36
|
6
|
||||||
Reductions
|
(1
|
)
|
(1
|
)
|
||||
Spending
|
(114
|
)
|
(71
|
)
|
||||
Balance
at end of year
|
$
|
1,401
|
$
|
1,268
|
||||
a.
|
Represents
accretion of the fair values of environmental obligations assumed in the
acquisition of Phelps Dodge, which were determined on a discounted cash
flow basis.
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Financial Data (in
millions, except per share amounts)
|
|||||||||
Revenues
|
$
|
17,796
|
a,b
|
$
|
16,939
|
a,b,c
|
$
|
5,791
|
a,d
|
Operating
(loss) income
|
(12,710
|
)a,b,e,f,g
|
6,555
|
a,b,c,g
|
2,869
|
a,d
|
|||
(Loss)
income from continuing operations applicable to common stockh
|
(11,341
|
)
|
2,734
|
1,396
|
|||||
Net
(loss) income applicable to common stockh
|
(11,341
|
)b,e,f,g,i
|
2,769
|
b,c,g,i
|
1,396
|
d,i
|
|||
Diluted
net (loss) income per share of common stock:
|
|||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
7.41
|
$
|
6.63
|
||
Discontinued
operations
|
–
|
0.09
|
–
|
||||||
Diluted
net (loss) income per share of common stock
|
$
|
(29.72
|
)b,e,f,g,i
|
$
|
7.50
|
b,c,g,i
|
$
|
6.63
|
d,i
|
Diluted
average common shares outstandingj,k
|
382
|
397
|
221
|
||||||
Operating
Data - Sales from Mines
|
|||||||||
Copper
|
|||||||||
Consolidated
share (millions of recoverable pounds)
|
4,066
|
3,357
|
1,201
|
||||||
Average
realized price per pound
|
$
|
2.69
|
$
|
3.29
|
c
|
$
|
3.13
|
||
Site
production and delivery costs per poundl
|
$
|
1.51
|
$
|
1.18
|
$
|
1.03
|
|||
Unit
net cash costs per poundl
|
$
|
1.16
|
$
|
0.76
|
$
|
0.60
|
|||
Gold
|
|||||||||
Consolidated
share (thousands of recoverable ounces)
|
1,314
|
2,298
|
1,736
|
||||||
Average
realized price per ounce
|
$
|
861
|
$
|
682
|
$
|
567
|
d
|
||
Molybdenum
|
|||||||||
Consolidated
share (millions of recoverable pounds)
|
71
|
52
|
N/A
|
||||||
Average
realized price per pound
|
$
|
30.55
|
$
|
26.81
|
N/A
|
a.
|
As
discussed in Note 19, we have revised the presentation of our operating
divisions to better reflect management’s view of our consolidated
operations, and have also reclassified amounts for 2007 to conform to the
current year presentation. Following is a summary of revenues by operating
division (in millions):
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
North
America copper mines
|
$
|
5,265
|
$
|
4,093
|
$
|
–
|
|||
South
America copper mines
|
4,166
|
3,879
|
–
|
||||||
Indonesia
mining
|
3,412
|
4,808
|
4,395
|
||||||
Africa
mining
|
–
|
–
|
–
|
||||||
Molybdenum
|
2,488
|
1,746
|
–
|
||||||
Rod
& Refining
|
5,557
|
5,140
|
–
|
||||||
Atlantic
Copper Smelting & Refining
|
2,341
|
2,388
|
2,242
|
||||||
Corporate,
other & eliminations
|
(5,433
|
)
|
(5,115
|
)
|
(846
|
)
|
|||
Total
FCX revenues
|
$
|
17,796
|
$
|
16,939
|
$
|
5,791
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
North
America copper mines
|
$
|
(11,522
|
)
|
$
|
1,428
|
$
|
–
|
||
South
America copper mines
|
(694
|
)
|
2,224
|
–
|
|||||
Indonesia
mining
|
1,307
|
3,033
|
2,721
|
||||||
Africa
mining
|
(26
|
)
|
(12
|
)
|
–
|
||||
Molybdenum
|
(1,473
|
)
|
353
|
–
|
|||||
Rod
& Refining
|
2
|
14
|
–
|
||||||
Atlantic
Copper Smelting & Refining
|
10
|
3
|
74
|
||||||
Corporate,
other & eliminations
|
(314
|
)
|
(488
|
)
|
74
|
||||
Total
FCX operating (loss) income
|
$
|
(12,710
|
)
|
$
|
6,555
|
$
|
2,869
|
b.
|
Includes
charges to revenues totaling $78 million ($52 million to net loss or $0.14
per share) in 2008 and $30 million ($18 million to net income or $0.05 per
share) in 2007 for unrealized losses on copper derivative contracts
entered into with our U.S. copper rod customers, which allows us to
receive market prices in the month of shipment while the customer pays the
fixed price they requested. Refer to Note 17 for further
discussion.
|
c.
|
Includes
charges to revenues for mark-to-market accounting adjustments on the 2007
copper price protection program totaling $175 million ($106 million to net
income or $0.27 per share) and a reduction in average realized copper
prices of $0.05 per pound.
|
d.
|
Includes
charges to revenues for redemptions of our Gold-Denominated Preferred
Stock, Series II, and Silver-Denominated Preferred Stock totaling $82
million ($44 million to net income or $0.20 per share) and a reduction in
average realized gold prices of approximately $39 per ounce. Refer to Note
17 for further discussion.
|
e.
|
Includes
charges for LCM inventory adjustments totaling $782 million ($479 million
to net loss or $1.26 per share).
|
f.
|
Includes
long-lived asset impairments and other charges totaling $11.0 billion
($6.7 billion to net loss or $17.52 per share), and also includes goodwill
impairment charges totaling $6.0 billion ($6.0 billion to net loss or
$15.69 per share). Refer to Notes 2 and 7 and “Critical Accounting
Estimates – Asset Impairments” for further
discussion.
|
g.
|
Includes
the impacts of purchase accounting fair value adjustments associated with
the acquisition of Phelps Dodge, which are primarily because of increased
carrying values of acquired property, plant and equipment and metal
inventories, including mill and leach stockpiles, and also includes
amounts for non-operating income and expense mostly related to accretion
of the fair values of assumed environmental obligations (determined on a
discounted cash flow basis). These impacts totaled $1.1 billion, including
$1.0 billion to operating loss and $93 million for non-operating income
and expenses, ($679 million to net loss or $1.78 per share) in 2008 and
$1.3 billion to operating income ($793 million to net income or $2.00 per
share) in 2007. Refer to Note 19 for a summary of the impacts of purchase
accounting fair value adjustments on our business segments for the years
ended December 31, 2008 and 2007.
|
h.
|
After
preferred dividends. The year ended December 31, 2008, also includes
charges of $22 million ($0.06 per share) associated with privately
negotiated transactions to induce conversion of 0.3 million shares of our
5½% Convertible Perpetual Preferred Stock into approximately 5.8 million
shares of FCX common stock (refer to Note 13 and “Capital Resources and
Liquidity – Financing Activities” for further
discussion).
|
i.
|
Includes
net losses on early extinguishment and conversions of debt totaling $5
million ($0.01 per share) in 2008 associated with an open-market purchase
of our 9½% Senior Notes; $132 million ($0.33 per share) in 2007 primarily
related to premiums paid and the accelerated recognition of deferred
financing costs associated with early repayments of debt; and $30 million
($0.14 per share) in 2006 primarily related to the completion of a tender
offer and privately negotiated transactions to induce conversion of our 7%
Convertible Senior Notes into FCX common stock and open-market purchases
of our 10⅛% Senior Notes.
|
j.
|
Reflects
assumed conversion of our 5½% Convertible Perpetual Preferred Stock and
6¾% Mandatory Convertible Preferred Stock for 2007 and of our 5½%
Convertible Perpetual Preferred Stock for
2006.
|
k.
|
On
March 19, 2007, we issued 137 million common shares to acquire Phelps
Dodge, and on March 28, 2007, we sold 47 million common shares. Common
shares outstanding on December 31, 2008, totaled 384
million.
|
l.
|
Reflects
per pound weighted average production and delivery costs and unit net cash
costs (net of by-product credits) for all copper mines. For
reconciliations of the per pound costs by operating division to production
and delivery costs applicable to sales reported in our consolidated
financial statements, refer to “Operations – Unit Net Cash Costs” and to
“Product Revenues and Production
Costs.”
|
2008
|
2007
|
|||||
Consolidated
revenues – prior year
|
$
|
16,939
|
$
|
5,791
|
||
Sales
volumes:
|
||||||
Copper
|
2,367
|
6,742
|
||||
Gold
|
(671
|
)
|
341
|
|||
Molybdenum
|
505
|
1,495
|
a
|
|||
Price
realizations:
|
||||||
Copper
|
(2,631
|
)
|
702
|
|||
Gold
|
235
|
174
|
||||
Molybdenum
|
266
|
N/A
|
||||
Purchased
copper and molybdenum
|
(5
|
)
|
1,901
|
|||
Adjustments,
primarily for copper pricing on prior year open sales
|
309
|
(175
|
)
|
|||
Treatment
charges
|
104
|
(114
|
)
|
|||
Impact
of the 2007 copper price protection program
|
175
|
(175
|
)
|
|||
Atlantic
Copper revenues
|
(47
|
)
|
146
|
|||
Other,
net
|
250
|
111
|
||||
Consolidated
revenues – current year
|
$
|
17,796
|
$
|
16,939
|
a.
|
As
FCX was not a producer of molybdenum prior to the acquisition of Phelps
Dodge, the change in sales volumes for 2007 reflects sales of produced
molybdenum beginning March 20,
2007.
|
Year
Ended
|
Year
Ended
|
||||||||||||||||||
December
31, 2008
|
December
31, 2007
|
||||||||||||||||||
Income
Tax
|
Income
Tax
|
||||||||||||||||||
Income
|
Effective
|
Provision
|
Income
|
Effective
|
Provision
|
||||||||||||||
(Loss)a
|
Tax
Rate
|
(Benefit)
|
(Loss)a
|
Tax
Rate
|
(Benefit)
|
||||||||||||||
U.S.
|
$
|
2,023
|
24%
|
$
|
489
|
$
|
1,871
|
30%
|
$
|
568
|
|||||||||
South
America
|
2,086
|
32%
|
677
|
2,623
|
33%
|
868
|
|||||||||||||
Indonesia
|
1,432
|
43%
|
612
|
2,860
|
46%
|
1,326
|
|||||||||||||
Asset
impairment charges
|
(10,867
|
)
|
39%
|
(4,212
|
)
|
–
|
N/A
|
–
|
|||||||||||
Goodwill
impairment charges
|
(5,987
|
)
|
N/A
|
–
|
–
|
N/A
|
–
|
||||||||||||
LCM
inventory adjustments
|
(782
|
)
|
38%
|
(299
|
)
|
–
|
N/A
|
–
|
|||||||||||
Purchase
accounting adjustments
|
(1,102
|
)
|
38%
|
(423
|
)
|
(1,264
|
)
|
38%
|
(479
|
)
|
|||||||||
Eliminations
and other
|
(112
|
)
|
N/A
|
(47
|
)
|
21
|
N/A
|
6
|
|||||||||||
Adjustments
|
N/A
|
N/A
|
359
|
b
|
N/A
|
N/A
|
111
|
c
|
|||||||||||
Consolidated
FCX
|
$
|
(13,309
|
)
|
21%
|
$
|
(2,844
|
)
|
$
|
6,111
|
39%
|
$
|
2,400
|
a.
|
Represents
income (loss) from continuing operations before income taxes, minority
interests and equity in affiliated companies’ net
earnings.
|
b.
|
Represents
an adjustment to establish a valuation allowance against U.S. federal
alternative minimum tax credits.
|
c.
|
Represents
an adjustment for a one-time charge associated with the reversal of the
Phelps Dodge APB Opinion No. 23 indefinite reinvestment assertion on
certain earnings in South America. This adjustment was fully offset by a
reduction in minority interests’ share of net
income.
|
2008
|
2007a
|
2006a
|
||||||||
Operating
Data, Net of Joint Venture Interest
|
||||||||||
Copper (millions of
recoverable pounds)
|
||||||||||
Production
|
1,430
|
1,320
|
1,305
|
|||||||
Sales,
excluding purchases
|
1,434
|
1,332
|
1,303
|
|||||||
Average
realized price per pound
|
$
|
3.07
|
$
|
3.10
|
b
|
$
|
2.29
|
b
|
||
Molybdenum (millions of
recoverable pounds)
|
||||||||||
Production
(by-product)c
|
30
|
30
|
31
|
|||||||
100%
Operating Data, Including Joint Venture Interest
|
||||||||||
SX/EW
operations
|
||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
1,095,200
|
798,200
|
801,200
|
|||||||
Average
copper ore grade (percent)
|
0.22
|
0.23
|
0.30
|
|||||||
Copper
production (millions of recoverable pounds)
|
943
|
940
|
1,013
|
|||||||
Mill
operations
|
||||||||||
Ore
milled (metric tons per day)
|
249,600
|
223,800
|
199,300
|
|||||||
Average
ore grade (percent):
|
||||||||||
Copper
|
0.40
|
0.35
|
0.33
|
|||||||
Molybdenum
|
0.02
|
0.02
|
0.02
|
|||||||
Copper
recovery rate (percent)
|
82.9
|
84.5
|
85.0
|
|||||||
Production
(millions of recoverable pounds):
|
||||||||||
Copper
|
599
|
501
|
414
|
|||||||
Molybdenum
(by-product)
|
30
|
30
|
31
|
a.
|
The
North America copper mines’ operating data for 2007 combines our
historical data beginning March 20, 2007, with Phelps Dodge
pre-acquisition data through March 19, 2007, and 2006 reflects Phelps
Dodge pre-acquisition data. As the pre-acquisition data represents the
results of these operations under Phelps Dodge management, such combined
data is not necessarily indicative of what past results would have been
under FCX management or of future operating
results.
|
b.
|
Before
charges for mark-to-market accounting adjustments on the copper price
protection programs, amounts were $3.25 per pound for 2007 and $3.06 per
pound for 2006.
|
c.
|
Reflects
by-product molybdenum production from the North America copper mines.
Sales of by-product molybdenum are reflected in the Molybdenum
division.
|
2008
|
2007a
|
|||||||||||||||||
By-
|
Co-Product
Method
|
By-
|
Co-Product
Method
|
|||||||||||||||
Product
|
Molyb-
|
Product
|
Molyb-
|
|||||||||||||||
Method
|
Copper
|
denumb
|
Method
|
Copper
|
denumb
|
|||||||||||||
Revenues,
excluding adjustments shown below
|
$
|
3.07
|
$
|
3.07
|
$
|
30.25
|
$
|
3.40
|
$
|
3.40
|
$
|
30.69
|
||||||
Site
production and delivery, before net noncash
|
||||||||||||||||||
and
nonrecurring costs shown below
|
1.88
|
1.63
|
12.67
|
1.46
|
1.25
|
10.85
|
||||||||||||
By-product
creditsb
|
(0.64
|
)
|
–
|
–
|
(0.69
|
)
|
–
|
–
|
||||||||||
Treatment
charges
|
0.09
|
0.09
|
–
|
0.10
|
0.10
|
–
|
||||||||||||
Unit
net cash costs
|
1.33
|
1.72
|
12.67
|
0.87
|
1.35
|
10.85
|
||||||||||||
Depreciation,
depletion and amortization
|
0.53
|
0.46
|
2.81
|
0.47
|
0.40
|
2.89
|
||||||||||||
Noncash
and nonrecurring costs, net
|
0.52
|
0.49
|
1.34
|
0.35
|
0.33
|
0.15
|
||||||||||||
Total
unit costs
|
2.38
|
2.67
|
16.82
|
1.69
|
2.08
|
13.89
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||||||||
prior
period open sales and hedging
|
(0.05
|
)
|
(0.05
|
)
|
–
|
(0.20
|
)
|
(0.20
|
)
|
–
|
||||||||
Idle
facility and other non-inventoriable costs
|
(0.06
|
)
|
(0.06
|
)
|
(0.05
|
)
|
(0.05
|
)
|
(0.05
|
)
|
(0.03
|
)
|
||||||
Gross
profit
|
$
|
0.58
|
$
|
0.29
|
$
|
13.38
|
$
|
1.46
|
$
|
1.07
|
$
|
16.77
|
||||||
Copper
sales (millions of recoverable pounds)
|
1,430
|
1,430
|
1,038
|
1,038
|
||||||||||||||
Molybdenum
sales (millions of recoverable pounds)c
|
30
|
23
|
a.
|
Reflects
the period from March 20, 2007, through December 31,
2007.
|
b.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
c.
|
Reflects
molybdenum produced by the North America copper
mines.
|
2007a
|
2006a
|
|||||||||||||||||
By-
|
Co-Product
Method
|
By-
|
Co-Product
Method
|
|||||||||||||||
Product
|
Molyb-
|
Product
|
Molyb-
|
|||||||||||||||
Method
|
Copper
|
denumb
|
Method
|
Copper
|
denumb
|
|||||||||||||
Revenues,
excluding adjustments primarily for
|
||||||||||||||||||
pricing
on prior period open sales and hedging
|
$
|
3.25
|
$
|
3.25
|
$
|
29.31
|
$
|
3.06
|
$
|
3.06
|
$
|
24.85
|
||||||
Site
production and delivery, before net noncash
|
||||||||||||||||||
and
nonrecurring costs
|
$
|
1.43
|
$
|
1.23
|
$
|
10.42
|
$
|
1.14
|
$
|
0.93
|
$
|
9.34
|
||||||
By-product
creditsb
|
(0.66
|
)
|
–
|
–
|
(0.60
|
)
|
–
|
–
|
||||||||||
Treatment
charges
|
0.09
|
0.09
|
–
|
0.07
|
0.06
|
–
|
||||||||||||
Combined
unit net cash costs
|
$
|
0.86
|
$
|
1.32
|
$
|
10.42
|
$
|
0.61
|
$
|
0.99
|
$
|
9.34
|
||||||
Copper
sales (millions of recoverable pounds)
|
1,316
|
1,316
|
1,292
|
1,292
|
||||||||||||||
Molybdenum
sales (millions of recoverable pounds)c
|
30
|
31
|
a.
|
For
comparative purposes, 2007 combines our historical data beginning March
20, 2007, with Phelps Dodge pre-acquisition data through March 19, 2007,
and 2006 reflects Phelps Dodge pre-acquisition data. As the
pre-acquisition data represents the results of these operations under
Phelps Dodge management, such combined data is not necessarily indicative
of what past results would have been under FCX management or of future
operating results.
|
b.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
c.
|
Reflects
molybdenum produced by the North America copper
mines.
|
2008
|
2007a
|
2006a
|
||||||||
Copper (millions of
recoverable pounds)
|
||||||||||
Production
|
1,506
|
1,413
|
1,133
|
|||||||
Sales
|
1,521
|
1,399
|
1,126
|
|||||||
Average
realized price per pound
|
$
|
2.57
|
$
|
3.25
|
$
|
3.03
|
||||
Gold (thousands of recoverable
ounces)
|
||||||||||
Production
|
114
|
116
|
112
|
|||||||
Sales
|
116
|
114
|
111
|
|||||||
Average
realized price per ounce
|
$
|
853
|
$
|
683
|
$
|
552
|
||||
Molybdenum
(millions of recoverable pounds)
|
||||||||||
Production
(by-product)b
|
3
|
1
|
–
|
|||||||
SX/EW
operations
|
||||||||||
Leach
ore placed in stockpiles (metric tons per day)
|
279,700
|
289,100
|
257,400
|
|||||||
Average
copper ore grade (percent)
|
0.45
|
0.43
|
0.45
|
|||||||
Copper
production (millions of recoverable pounds)
|
560
|
569
|
695
|
|||||||
Mill
operations
|
||||||||||
Ore
milled (metric tons per day)
|
181,400
|
167,900
|
68,500
|
|||||||
Average
copper ore grade (percent):
|
||||||||||
Copper
|
0.75
|
0.74
|
0.87
|
|||||||
Molybdenum
|
0.02
|
0.02
|
N/A
|
|||||||
Copper
recovery rate (percent)
|
89.2
|
87.1
|
93.8
|
|||||||
Production
(millions of recoverable pounds):
|
||||||||||
Copper
|
946
|
844
|
438
|
|||||||
Molybdenum
|
3
|
1
|
–
|
a.
|
The
South America copper mines’ operating data for 2007 combines our
historical data beginning March 20, 2007, with Phelps Dodge
pre-acquisition data through March 19, 2007, and 2006 reflects Phelps
Dodge pre-acquisition data. As the pre-acquisition data represents the
results of these operations under Phelps Dodge management, such combined
data is not necessarily indicative of what past results would have been
under FCX management or of future operating
results.
|
b.
|
Reflects
by-product molybdenum production from our Cerro Verde copper mine. Sales
of by-product molybdenum are reflected in the Molybdenum
segment.
|
2008
|
2007a
|
|||||||||||
By-Product
|
Co-Product
|
By-Product
|
Co-Product
|
|||||||||
Method
|
Method
|
Method
|
Method
|
|||||||||
Revenues,
excluding adjustments shown below
|
$
|
2.57
|
$
|
2.57
|
$
|
3.30
|
$
|
3.30
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs shown below
|
1.13
|
1.07
|
0.92
|
0.88
|
||||||||
By-product
credits
|
(0.13
|
)
|
–
|
(0.09
|
)
|
–
|
||||||
Treatment
charges
|
0.14
|
0.14
|
0.20
|
0.20
|
||||||||
Unit
net cash costs
|
1.14
|
1.21
|
1.03
|
1.08
|
||||||||
Depreciation,
depletion and amortization
|
0.33
|
0.32
|
0.32
|
0.32
|
||||||||
Noncash
and nonrecurring costs, net
|
0.07
|
0.06
|
0.14
|
0.14
|
||||||||
Total
unit costs
|
1.54
|
1.59
|
1.49
|
1.54
|
||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||
prior
period open sales
|
0.15
|
0.15
|
0.06
|
0.06
|
||||||||
Idle
facility and other non-inventoriable costs
|
(0.02
|
)
|
(0.02
|
)
|
(0.02
|
)
|
(0.02
|
)
|
||||
Gross
profit
|
$
|
1.16
|
$
|
1.11
|
$
|
1.85
|
$
|
1.80
|
||||
Copper
sales (millions of recoverable pounds)
|
1,521
|
1,521
|
1,177
|
1,177
|
a.
|
Reflects
the period from March 20, 2007, through December 31,
2007.
|
2007a
|
2006a
|
|||||||||||
By-Product
|
Co-Product
|
By-Product
|
Co-Product
|
|||||||||
Method
|
Method
|
Method
|
Method
|
|||||||||
Revenues,
excluding adjustments primarily for
|
||||||||||||
pricing
on prior period open sales
|
$
|
3.25
|
$
|
3.25
|
$
|
3.03
|
$
|
3.03
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
and
nonrecurring costs
|
$
|
0.91
|
$
|
0.87
|
$
|
0.82
|
$
|
0.79
|
||||
By-product
credits
|
(0.09
|
)
|
–
|
(0.08
|
)
|
–
|
||||||
Treatment
charges
|
0.20
|
0.20
|
0.17
|
0.17
|
||||||||
Combined
unit net cash costs
|
$
|
1.02
|
$
|
1.07
|
$
|
0.91
|
$
|
0.96
|
||||
Copper
sales (millions of recoverable pounds)
|
1,399
|
1,399
|
1,126
|
1,126
|
a.
|
For
comparative purposes, 2007 combines our historical data beginning March
20, 2007, with Phelps Dodge pre-acquisition data through March 19, 2007,
and 2006 reflects Phelps Dodge pre-acquisition data. As the
pre-acquisition data represents the results of these operations under
Phelps Dodge management, such combined data is not necessarily indicative
of what past results would have been under FCX management or of future
operating results.
|
2008
|
2007
|
2006
|
||||||||
Consolidated
Operating Data, Net of Joint Venture Interest
|
||||||||||
Copper
(millions of recoverable pounds)
|
||||||||||
Production
|
1,094
|
1,151
|
1,201
|
|||||||
Sales
|
1,111
|
1,131
|
1,201
|
|||||||
Average
realized price per pound
|
$
|
2.36
|
$
|
3.32
|
$
|
3.13
|
||||
Gold
(thousands of recoverable ounces)
|
||||||||||
Production
|
1,163
|
2,198
|
1,732
|
|||||||
Sales
|
1,182
|
2,185
|
1,736
|
|||||||
Average
realized price per ounce
|
$
|
861
|
$
|
681
|
$
|
567
|
||||
100%
Operating Data, Including Joint Venture Interest
|
||||||||||
Ore
milled (metric tons per day):
|
||||||||||
Grasberg
open pita
|
129,800
|
159,100
|
184,200
|
|||||||
Deep
Ore Zone (DOZ) underground minea
|
63,100
|
53,500
|
45,200
|
|||||||
Total
|
192,900
|
212,600
|
229,400
|
|||||||
Average
ore grade:
|
||||||||||
Copper
(percent)
|
0.83
|
0.82
|
0.85
|
|||||||
Gold
(grams per metric ton)
|
0.66
|
1.24
|
0.85
|
|||||||
Recovery
rates (percent):
|
||||||||||
Copper
|
90.1
|
90.5
|
86.1
|
|||||||
Gold
|
79.9
|
86.2
|
80.9
|
|||||||
Production
(recoverable):
|
||||||||||
Copper
(millions of pounds)
|
1,109
|
1,211
|
1,300
|
|||||||
Gold
(thousands of ounces)
|
1,163
|
2,608
|
1,824
|
a.
|
Amounts
represent the approximate average daily throughput processed at PT
Freeport Indonesia’s mill facilities from each producing
mine.
|
2008
|
2007
|
|||||||||||||||||
By-
|
Co-Product
Method
|
By-
|
Co-Product
Method
|
|||||||||||||||
Product
|
Product
|
|||||||||||||||||
Method
|
Copper
|
Gold
|
Method
|
Copper
|
Gold
|
|||||||||||||
Revenues,
after adjustments shown below
|
$
|
2.36
|
$
|
2.36
|
$
|
861.43
|
$
|
3.32
|
$
|
3.32
|
$
|
680.74
|
||||||
Site
production and delivery, before net noncash
|
||||||||||||||||||
and
nonrecurring costs shown below
|
1.59
|
1.13
|
412.72
|
1.19
|
0.85
|
172.23
|
||||||||||||
Gold
and silver credits
|
(0.97
|
)
|
–
|
–
|
(1.36
|
)
|
–
|
–
|
||||||||||
Treatment
charges
|
0.24
|
0.17
|
62.69
|
0.34
|
0.24
|
49.45
|
||||||||||||
Royalty
on metals
|
0.10
|
0.07
|
26.50
|
0.12
|
0.08
|
17.05
|
||||||||||||
Unit
net cash costs
|
0.96
|
1.37
|
501.91
|
0.29
|
1.17
|
238.73
|
||||||||||||
Depreciation
and amortization
|
0.20
|
0.14
|
52.09
|
0.17
|
0.12
|
25.54
|
||||||||||||
Noncash
and nonrecurring costs, net
|
0.03
|
0.02
|
7.18
|
0.04
|
0.03
|
5.90
|
||||||||||||
Total
unit costs
|
1.19
|
1.53
|
561.18
|
0.50
|
1.32
|
270.17
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||||||||
prior
period open sales
|
0.09
|
0.09
|
5.86
|
0.03
|
0.03
|
1.07
|
||||||||||||
PT
Smelting intercompany profit
|
0.01
|
0.01
|
4.18
|
0.01
|
0.01
|
1.71
|
||||||||||||
Gross
profit
|
$
|
1.27
|
$
|
0.93
|
$
|
310.29
|
$
|
2.86
|
$
|
2.04
|
$
|
413.35
|
||||||
Consolidated
sales
|
||||||||||||||||||
Copper
(millions of recoverable pounds)
|
1,111
|
1,111
|
1,131
|
1,131
|
||||||||||||||
Gold
(thousands of recoverable ounces)
|
1,182
|
2,185
|
2007
|
2006
|
|||||||||||||||||
By-
|
Co-Product
Method
|
By-
|
Co-Product
Method
|
|||||||||||||||
Product
|
Product
|
|||||||||||||||||
Method
|
Copper
|
Gold
|
Method
|
Copper
|
Gold
|
|||||||||||||
Revenues,
after adjustments shown below
|
$
|
3.32
|
$
|
3.32
|
$
|
680.74
|
$
|
3.13
|
$
|
3.13
|
$
|
566.51
|
a
|
|||||
Site
production and delivery, before net noncash
|
||||||||||||||||||
and
nonrecurring costs shown below
|
1.19
|
0.85
|
172.23
|
1.03
|
0.79
|
156.24
|
||||||||||||
Gold
and silver credits
|
(1.36
|
)
|
–
|
–
|
(0.93
|
)
|
–
|
–
|
||||||||||
Treatment
charges
|
0.34
|
0.24
|
49.45
|
0.40
|
0.31
|
60.41
|
||||||||||||
Royalty
on metals
|
0.12
|
0.08
|
17.05
|
0.10
|
0.08
|
15.94
|
||||||||||||
Unit
net cash costs
|
0.29
|
1.17
|
238.73
|
0.60
|
1.18
|
232.59
|
||||||||||||
Depreciation
and amortization
|
0.17
|
0.12
|
25.54
|
0.15
|
0.12
|
23.25
|
||||||||||||
Noncash
and nonrecurring costs, net
|
0.04
|
0.03
|
5.90
|
0.04
|
0.03
|
5.60
|
||||||||||||
Total
unit costs
|
0.50
|
1.32
|
270.17
|
0.79
|
1.33
|
261.44
|
||||||||||||
Revenue
adjustments, primarily for pricing on
|
||||||||||||||||||
prior
period open sales
|
0.03
|
0.03
|
1.07
|
0.10
|
b
|
0.17
|
11.53
|
|||||||||||
PT
Smelting intercompany profit
|
0.01
|
0.01
|
1.71
|
–
|
–
|
(0.37
|
)
|
|||||||||||
Gross
profit
|
$
|
2.86
|
$
|
2.04
|
$
|
413.35
|
$
|
2.44
|
$
|
1.97
|
$
|
316.23
|
||||||
Consolidated
sales
|
||||||||||||||||||
Copper
(millions of recoverable pounds)
|
1,131
|
1,131
|
1,201
|
1,201
|
||||||||||||||
Gold
(thousands of recoverable ounces)
|
2,185
|
1,736
|
a.
|
Amount
was approximately $606 per ounce before a loss resulting from redemption
of our Gold-Denominated Preferred Stock, Series
II.
|
b.
|
Includes
a $0.06 per pound loss on the redemption of our Gold-Denominated Preferred
Stock, Series II.
|
2008
|
2007a
|
2006a
|
||||||||
Molybdenum (millions of
recoverable pounds)
|
||||||||||
Production
|
40
|
39
|
37
|
|||||||
Sales,
excluding purchasesb
|
71
|
69
|
69
|
|||||||
Average
realized price per pound
|
$
|
30.55
|
$
|
25.87
|
$
|
21.87
|
||||
Henderson
molybdenum mine
|
||||||||||
Ore
milled (metric tons per day)
|
24,100
|
24,000
|
22,200
|
|||||||
Average
molybdenum ore grade (percent)
|
0.23
|
0.23
|
0.23
|
|||||||
Molybdenum
production (millions of recoverable pounds)
|
40
|
39
|
37
|
a.
|
The
Molybdenum operating data for 2007 combines our historical data beginning
March 20, 2007, with Phelps Dodge pre-acquisition data through March 19,
2007, and 2006 reflects Phelps Dodge pre-acquisition data. As the
pre-acquisition data represents the results of these operations under
Phelps Dodge management, such combined data is not necessarily indicative
of what past results would have been under FCX management or of future
operating results.
|
b.
|
Includes
sales of molybdenum produced as a by-product at our North and South
America copper mines.
|
2008
|
2007a
|
|||||
Revenues
|
$
|
29.27
|
$
|
27.12
|
||
Site
production and delivery, before net noncash
|
||||||
and
nonrecurring costs shown below
|
5.36
|
4.37
|
||||
Unit
net cash costs
|
5.36
|
4.37
|
||||
Depreciation,
depletion and amortization
|
4.25
|
2.55
|
||||
Noncash
and nonrecurring costs, net
|
0.18
|
b
|
0.05
|
|||
Total
unit costs
|
9.79
|
6.97
|
||||
Gross
profitc
|
$
|
19.48
|
$
|
20.15
|
||
Molybdenum
sales (millions of recoverable pounds)d
|
40
|
31
|
a.
|
Reflects
the period from March 20, 2007, through December 31,
2007.
|
b.
|
Includes
charges of $0.03 per pound associated with LCM inventory
adjustments.
|
c.
|
Gross
profit reflects sales of Henderson products based on volumes produced at
market-based pricing. On a consolidated basis, the Molybdenum segment
includes profits on sales as they are made to third parties and
realizations based on actual contract terms. As a result, the actual gross
profit realized will differ from the amounts reported in this
table.
|
d.
|
Reflects
molybdenum produced by the Henderson molybdenum
mine.
|
2007a
|
2006a
|
|||||
Revenues
|
$
|
26.10
|
$
|
22.14
|
||
Site
production and delivery, before net noncash
|
||||||
and
nonrecurring costs
|
$
|
4.32
|
$
|
3.71
|
||
Combined
unit net cash costs
|
$
|
4.32
|
$
|
3.71
|
||
Molybdenum
sales (millions of recoverable pounds)b
|
39
|
37
|
a.
|
For
comparative purposes, 2007 combines our historical data beginning March
20, 2007, with Phelps Dodge pre-acquisition data through March 19, 2007,
and 2006 reflects Phelps Dodge pre-acquisition data. As the
pre-acquisition data represents the results of these operations under
Phelps Dodge management, such combined data is not necessarily indicative
of what past results would have been under FCX management or of future
operating results.
|
b.
|
Reflects
molybdenum produced by the Henderson molybdenum
mine.
|
PROVEN
AND PROBABLE RESERVES
|
Copper
|
Gold
|
Molybdenum
|
||||
(billion
|
(million
|
(billion
|
||||
pounds)
|
ounces)
|
pounds)
|
||||
Reserves
at December 31, 2007
|
93.2
|
41.0
|
2.04
|
|||
Net
additions/revisions
|
12.8
|
0.3
|
0.51
|
|||
Production
|
(4.0)
|
(1.3)
|
(0.07)
|
|||
Reserves
at December 31, 2008
|
102.0
|
40.0
|
2.48
|
December
31,
|
December
31,
|
|||||
2008
|
2007
|
|||||
Cash
at domestic companiesa
|
$
|
95
|
$
|
211
|
||
Cash
at international operations
|
777
|
1,415
|
||||
Total
consolidated cash and cash equivalents
|
872
|
1,626
|
||||
Less:
Minority interests’ share
|
(267
|
)
|
(363
|
)
|
||
Cash,
net of minority interests’ share
|
605
|
1,263
|
||||
Taxes
and other costs if distributed
|
(151
|
)
|
(241
|
)
|
||
Net
cash available to FCX
|
$
|
454
|
$
|
1,022
|
a.
|
Includes
cash at our parent company and North America
operations.
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
|||||||||||||
Equipment
loans and other
|
$
|
67
|
$
|
10
|
$
|
19
|
$
|
96
|
$
|
14
|
$
|
111
|
||||||
Senior
notes
|
–
|
–
|
116
|
–
|
–
|
6,768
|
||||||||||||
Revolving
credit facilities
|
–
|
–
|
–
|
150
|
–
|
–
|
||||||||||||
$
|
67
|
$
|
10
|
$
|
135
|
$
|
246
|
$
|
14
|
$
|
6,879
|
2010
to
|
2012
to
|
|||||||||||||
Total
|
2009
|
2011
|
2013
|
Thereafter
|
||||||||||
Scheduled
interest payment obligationsa
|
$
|
4,734
|
$
|
570
|
$
|
1,131
|
$
|
1,103
|
$
|
1,930
|
||||
Reclamation
and environmental obligationsb
|
9,612
|
174
|
305
|
259
|
8,874
|
|||||||||
Take-or-pay
contractsc
|
1,214
|
694
|
306
|
63
|
151
|
|||||||||
Operating
lease obligations
|
82
|
26
|
39
|
12
|
5
|
|||||||||
Atlantic
Copper obligation to insurance companyd
|
80
|
10
|
20
|
20
|
30
|
|||||||||
PT
Freeport Indonesia mine closure and reclamation funde
|
18
|
1
|
1
|
1
|
15
|
|||||||||
Total
contractual cash obligationsf
|
$
|
15,740
|
$
|
1,475
|
$
|
1,802
|
$
|
1,458
|
$
|
11,005
|
a.
|
Scheduled
interest payment obligations were calculated using stated coupon rates for
fixed-rate debt and interest rates applicable at December 31, 2008, for
variable-rate debt.
|
b.
|
Represents
estimated cash payments, on an escalated basis, associated with
reclamation and environmental activities. The timing and the amount of
these payments could change as a result of changes in regulatory
requirements, changes in scope and costs of reclamation activities and as
actual spending occurs. Refer to Note 15 for additional discussion of
environmental and reclamation
matters.
|
c.
|
Represents
contractual obligations for purchases of goods or services that are
defined by us as agreements that are enforceable and legally binding and
that specify all significant terms. Take-or-pay contracts primarily
comprise the procurement of copper concentrates and cathodes ($522
million), transportation ($184 million) and oxygen ($163 million). Some of
our take-or-pay contracts are settled based on the prevailing market rate
for the service or commodity purchased, and in some cases, the amount of
the actual obligation may change over time because of market conditions.
Obligations for copper concentrates and cathodes provide for deliveries of
specified volumes, at market-based prices, primarily to Atlantic Copper
and the North America copper mines. Transportation obligations are
primarily for South America contracted ocean freight rates and for North
America natural gas transportation. Oxygen obligations provide for
deliveries of specified volumes, at fixed prices, primarily to Atlantic
Copper.
|
d.
|
In
August 2002, Atlantic Copper complied with Spanish legislation by agreeing
to fund 7.2 million euros annually for 15 years to an approved insurance
company for an estimated 72 million euro contractual obligation to
supplement amounts paid to certain retired employees. Atlantic Copper had
$62 million recorded for this obligation at December 31,
2008.
|
e.
|
Represents
PT Freeport Indonesia’s commitments to contribute amounts to a cash fund
designed to accumulate at least $100 million, including interest, by the
end of our Indonesian mining activities to pay for mine closure and
reclamation.
|
f.
|
This
table excludes certain other obligations in our consolidated balance
sheets, including estimated funding for pension obligations as the funding
may vary from year-to-year based on changes in the fair value of plan
assets and actuarial assumptions and accrued liabilities totaling $159
million that relate to unrecognized tax benefits where the timing of
settlement is not determinable. This table also excludes purchase orders
for the purchase of inventory and other goods and services, as purchase
orders typically represent authorizations to purchase rather than binding
agreements.
|
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
Fair
Value
|
|||||||||||||||
Fixed-rate
debt
|
$
|
–
|
$
|
–
|
$
|
118
|
$
|
–
|
$
|
1
|
$
|
5,770
|
$
|
4,767
|
|||||||
Average
interest rate
|
–
|
–
|
8.7
|
%
|
–
|
5.6
|
%
|
8.2
|
%
|
8.2
|
%
|
||||||||||
Variable-rate
debt
|
$
|
67
|
$
|
10
|
$
|
17
|
$
|
246
|
$
|
13
|
$
|
1,109
|
$
|
1,122
|
|||||||
Average
interest rate
|
3.5
|
%
|
5.4
|
%
|
6.4
|
%
|
1.7
|
%
|
6.7
|
%
|
7.0
|
%
|
6.0
|
%
|
Year Ended December 31,
2008
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Molybdenuma
|
Otherb
|
Total
|
||||||||||
Revenues,
excluding adjustments shown below
|
$
|
4,382
|
$
|
4,382
|
$
|
892
|
$
|
72
|
$
|
5,346
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
2,681
|
2,326
|
374
|
35
|
2,735
|
||||||||||
By-product
creditsa
|
(910
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
134
|
130
|
–
|
4
|
134
|
||||||||||
Net
cash costs
|
1,905
|
2,456
|
374
|
39
|
2,869
|
||||||||||
Depreciation,
depletion and amortization
|
753
|
664
|
83
|
6
|
753
|
||||||||||
Noncash
and nonrecurring costs, net
|
743
|
c
|
701
|
39
|
3
|
743
|
|||||||||
Total
costs
|
3,401
|
3,821
|
496
|
48
|
4,365
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(71
|
)
|
(71
|
)
|
–
|
–
|
(71
|
)
|
|||||||
Idle
facility and other non-inventoriable costs
|
(85
|
)
|
(83
|
)
|
(2
|
)
|
–
|
(85
|
)
|
||||||
Gross
profit
|
$
|
825
|
$
|
407
|
$
|
394
|
$
|
24
|
$
|
825
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion
and
|
||||||||||||||
Revenues
|
and
Delivery
|
Amortization
|
|||||||||||||
Totals
presented above
|
$
|
5,346
|
$
|
2,735
|
$
|
753
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
743
|
c
|
N/A
|
|||||||||||
Treatment
charges per above
|
N/A
|
134
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging per above
|
(71
|
)
|
N/A
|
N/A
|
|||||||||||
Eliminations
and other
|
(10
|
)
|
96
|
17
|
|||||||||||
North
America copper mines
|
5,265
|
3,708
|
770
|
||||||||||||
South
America copper mines
|
4,166
|
1,854
|
511
|
||||||||||||
Indonesia
mining
|
3,412
|
1,792
|
222
|
||||||||||||
Africa
mining
|
–
|
16
|
6
|
||||||||||||
Molybdenum
|
2,488
|
1,629
|
192
|
||||||||||||
Rod
& Refining
|
5,557
|
5,527
|
8
|
||||||||||||
Atlantic
Copper Smelting & Refining
|
2,341
|
2,276
|
35
|
||||||||||||
Corporate,
other & eliminations
|
(5,433
|
)
|
(5,604
|
)
|
38
|
||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
17,796
|
$
|
11,198
|
d
|
$
|
1,782
|
a.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
c.
|
Includes
charges totaling $661 million for LCM inventory
adjustments.
|
d.
|
Includes
LCM inventory adjustments of $782
million.
|
March
20, 2007, through December 31, 2007a
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Molybdenumb
|
Otherc
|
Total
|
||||||||||
Revenues,
excluding adjustments shown below
|
$
|
3,526
|
$
|
3,526
|
$
|
717
|
$
|
47
|
$
|
4,290
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,516
|
1,296
|
253
|
18
|
1,567
|
||||||||||
By-product
creditsb
|
(713
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
100
|
98
|
–
|
2
|
100
|
||||||||||
Net
cash costs
|
903
|
1,394
|
253
|
20
|
1,667
|
||||||||||
Depreciation,
depletion and amortization
|
487
|
418
|
67
|
2
|
487
|
||||||||||
Noncash
and nonrecurring costs, net
|
361
|
341
|
4
|
16
|
361
|
||||||||||
Total
costs
|
1,751
|
2,153
|
324
|
38
|
2,515
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(203
|
)
|
(203
|
)
|
–
|
–
|
(203
|
)
|
|||||||
Idle
facility and other non-inventoriable costs
|
(56
|
)
|
(55
|
)
|
(1
|
)
|
–
|
(56
|
)
|
||||||
Gross
profit
|
$
|
1,516
|
$
|
1,115
|
$
|
392
|
$
|
9
|
$
|
1,516
|
|||||
Reconciliation
to Amounts Reported for the Year Ended December 31, 2007
|
|||||||||||||||
(In
millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion
and
|
||||||||||||||
Revenues
|
and
Delivery
|
Amortization
|
|||||||||||||
Totals
presented above
|
$
|
4,290
|
$
|
1,567
|
$
|
487
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
361
|
N/A
|
||||||||||||
Treatment
charges per above
|
N/A
|
100
|
N/A
|
||||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging per above
|
(203
|
)
|
N/A
|
N/A
|
|||||||||||
Eliminations
and other
|
6
|
138
|
12
|
||||||||||||
North
America copper mines
|
4,093
|
2,166
|
499
|
||||||||||||
South
America copper mines
|
3,879
|
1,277
|
378
|
||||||||||||
Indonesia
mining
|
4,808
|
1,388
|
199
|
||||||||||||
Africa
mining
|
–
|
10
|
2
|
||||||||||||
Molybdenum
|
1,746
|
1,287
|
94
|
||||||||||||
Rod
& Refining
|
5,140
|
5,119
|
7
|
||||||||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
36
|
||||||||||||
Corporate,
other & eliminations
|
(5,115
|
)
|
(5,049
|
)
|
31
|
||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
16,939
|
$
|
8,527
|
$
|
1,246
|
a.
|
Reflects
the results of the North America copper mines under FCX
management.
|
b.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
c.
|
Includes
gold and silver product revenues and production
costs.
|
Year
Ended December 31, 2007a
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Molybdenumb
|
Otherc
|
Total
|
||||||||||
Revenues,
excluding adjustments primarily for
|
|||||||||||||||
pricing
on prior period open sales and hedging
|
$
|
4,273
|
$
|
4,273
|
$
|
865
|
$
|
61
|
$
|
5,199
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs
|
$
|
1,883
|
$
|
1,616
|
$
|
308
|
$
|
21
|
$
|
1,945
|
|||||
By-product
creditsb
|
(865
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
119
|
116
|
–
|
3
|
119
|
||||||||||
Net
cash costs
|
$
|
1,137
|
$
|
1,732
|
$
|
308
|
$
|
24
|
$
|
2,064
|
|||||
Reconciliation
to Pro Forma Revenues and Production and Delivery Costs
|
|||||||||||||||
(In
millions)
|
|||||||||||||||
Production
|
|||||||||||||||
Revenues
|
and
Delivery
|
||||||||||||||
Totals
presented above
|
$
|
5,199
|
$
|
1,945
|
|||||||||||
Net
noncash and nonrecurring costs
|
N/A
|
21
|
|||||||||||||
Treatment
charges per above
|
N/A
|
119
|
|||||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(170
|
)
|
N/A
|
||||||||||||
Purchase
accounting adjustments
|
–
|
344
|
|||||||||||||
Eliminations
and other
|
17
|
166
|
|||||||||||||
Combined
North America copper mines
|
5,046
|
2,595
|
|||||||||||||
Combined
South America copper mines
|
4,438
|
1,465
|
|||||||||||||
Indonesia
mining
|
4,808
|
1,388
|
|||||||||||||
Combined
Africa mining
|
–
|
8
|
|||||||||||||
Combined
Molybdenum
|
2,193
|
1,593
|
|||||||||||||
Combined
Rod & Refining
|
6,437
|
6,411
|
|||||||||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
|||||||||||||
Eliminations
and other
|
(6,077
|
)
|
(5,979
|
)
|
|||||||||||
As
reported in FCX’s pro forma consolidated
|
|||||||||||||||
financial
resultsd
|
$
|
19,233
|
$
|
9,810
|
a.
|
Reflects
our historical data beginning March 20, 2007, combined with Phelps Dodge
pre-acquisition data through March 19, 2007. As the pre-acquisition data
represents the results under Phelps Dodge management, such data is not
necessarily indicative of what past results would have been under FCX
management or of future operating
results.
|
b.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
c.
|
Includes
gold and silver product revenues and production
costs.
|
d.
|
Refer
to Note 18 for summary of unaudited pro forma financial information for
year ended December 31, 2007.
|
Year
Ended December 31, 2006a
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Molybdenum
b
|
Other
c
|
Total
|
||||||||||
Revenues,
excluding adjustments primarily for
|
|||||||||||||||
pricing
on prior period open sales and hedging
|
$
|
3,962
|
$
|
3,962
|
$
|
772
|
$
|
44
|
$
|
4,778
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs
|
$
|
1,472
|
$
|
1,199
|
$
|
291
|
$
|
25
|
$
|
1,515
|
|||||
By-product
creditsb
|
(773
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
87
|
83
|
–
|
4
|
87
|
||||||||||
Net
cash costs
|
$
|
786
|
$
|
1,282
|
$
|
291
|
$
|
29
|
$
|
1,602
|
|||||
Reconciliation
to Pro Forma Revenues and Production and Delivery Costs
|
|||||||||||||||
(In
millions)
|
|||||||||||||||
Production
|
|||||||||||||||
Revenues
|
and
Delivery
|
||||||||||||||
Totals
presented above
|
$
|
4,778
|
$
|
1,515
|
|||||||||||
Net
noncash and nonrecurring costs
|
N/A
|
20
|
|||||||||||||
Treatment
charges per above
|
N/A
|
87
|
|||||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales and hedging
|
(1,046
|
)
|
N/A
|
||||||||||||
Eliminations
and other
|
(81
|
)
|
(44
|
)
|
|||||||||||
North
America copper mines
|
3,651
|
1,578
|
|||||||||||||
South
America copper mines
|
3,442
|
965
|
|||||||||||||
Molybdenum
|
1,748
|
1,257
|
|||||||||||||
Eliminations
and otherd
|
3,069
|
3,007
|
|||||||||||||
As
reported in Phelps Dodge consolidated financial
|
|||||||||||||||
resultse
|
$
|
11,910
|
$
|
6,807
|
a.
|
Reflects
Phelps Dodge pre-acquisition data. As the pre-acquisition data represents
the results under Phelps Dodge management, such data is not necessarily
indicative of what past results would have been under FCX management or of
future operating results.
|
b.
|
Molybdenum
by-product credits and revenues reflect volumes produced at market-based
pricing and also include tolling revenues at
Sierrita.
|
c.
|
Includes
gold and silver product revenues and production
costs.
|
d.
|
Includes
revenues and production and delivery costs associated with the PDIC
manufacturing operation, which was sold by FCX on October 31,
2007.
|
e.
|
Obtained
from the Phelps Dodge Form 10-K for the year ended December 31, 2006.
As the
pre-acquisition data represents the results under Phelps Dodge management,
such data is not necessarily indicative of what past results would have
been under FCX management or of future operating
results.
|
Year Ended December 31,
2008
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
millions)
|
Method
|
Copper
|
Other
a
|
Total
|
||||||||
Revenues,
excluding adjustments shown below
|
$
|
3,910
|
$
|
3,910
|
$
|
216
|
$
|
4,126
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
nonrecurring
costs shown below
|
1,711
|
1,631
|
102
|
1,733
|
||||||||
By-product
credits
|
(194
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
211
|
211
|
–
|
211
|
||||||||
Net
cash costs
|
1,728
|
1,842
|
102
|
1,944
|
||||||||
Depreciation,
depletion and amortization
|
508
|
483
|
25
|
508
|
||||||||
Noncash
and nonrecurring costs, net
|
103
|
b
|
100
|
3
|
103
|
|||||||
Total
costs
|
2,339
|
2,425
|
130
|
2,555
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales
|
230
|
230
|
–
|
230
|
||||||||
Other
non-inventoriable costs
|
(37
|
)
|
(34
|
)
|
(3
|
)
|
(37
|
)
|
||||
Gross
profit
|
$
|
1,764
|
$
|
1,681
|
$
|
83
|
$
|
1,764
|
||||
Reconciliation
to Amounts Reported
|
||||||||||||
(In
millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion
and
|
|||||||||||
Revenues
|
and
Delivery
|
Amortization
|
||||||||||
Totals
presented above
|
$
|
4,126
|
$
|
1,733
|
$
|
508
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
103
|
b
|
N/A
|
||||||||
Less:
Treatment charges per above
|
(211
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales per above
|
230
|
N/A
|
N/A
|
|||||||||
Purchased
metal
|
196
|
193
|
N/A
|
|||||||||
Eliminations
and other
|
(175
|
)
|
(175
|
)
|
3
|
|||||||
South
America copper mines
|
4,166
|
1,854
|
511
|
|||||||||
North
America copper mines
|
5,265
|
3,708
|
770
|
|||||||||
Indonesia
mining
|
3,412
|
1,792
|
222
|
|||||||||
Africa
mining
|
–
|
16
|
6
|
|||||||||
Molybdenum
|
2,488
|
1,629
|
192
|
|||||||||
Rod
& Refining
|
5,557
|
5,527
|
8
|
|||||||||
Atlantic
Copper Smelting & Refining
|
2,341
|
2,276
|
35
|
|||||||||
Corporate,
other & eliminations
|
(5,433
|
)
|
(5,604
|
)
|
38
|
|||||||
As
reported in FCX’s consolidated financial statements
|
$
|
17,796
|
$
|
11,198
|
c
|
$
|
1,782
|
a.
|
Includes
molybdenum, gold and silver product revenues and production
costs.
|
b.
|
Includes
charges totaling $10 million for LCM inventory
adjustments.
|
c.
|
Includes
LCM inventory adjustments of $782
million.
|
March
20, 2007, through December 31, 2007a
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
millions)
|
Method
|
Copper
|
Other
b
|
Total
|
||||||||
Revenues,
excluding adjustments shown below
|
$
|
3,882
|
$
|
3,882
|
$
|
123
|
$
|
4,005
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
nonrecurring
costs shown below
|
1,078
|
1,040
|
52
|
1,092
|
||||||||
By-product
credits
|
(109
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
240
|
239
|
1
|
240
|
||||||||
Net
cash costs
|
1,209
|
1,279
|
53
|
1,332
|
||||||||
Depreciation,
depletion and amortization
|
377
|
364
|
13
|
377
|
||||||||
Noncash
and nonrecurring costs, net
|
171
|
170
|
1
|
171
|
||||||||
Total
costs
|
1,757
|
1,813
|
67
|
1,880
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales
|
75
|
75
|
–
|
75
|
||||||||
Other
non-inventoriable costs
|
(28
|
)
|
(27
|
)
|
(1
|
)
|
(28
|
)
|
||||
Gross
profit
|
$
|
2,172
|
$
|
2,117
|
$
|
55
|
$
|
2,172
|
||||
Reconciliation
to Amounts Reported for the Year Ended December 31, 2007
|
||||||||||||
(In
millions)
|
Depreciation,
|
|||||||||||
Production
|
Depletion
and
|
|||||||||||
Revenues
|
and
Delivery
|
Amortization
|
||||||||||
Totals
presented above
|
$
|
4,005
|
$
|
1,092
|
$
|
377
|
||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
171
|
N/A
|
|||||||||
Less:
Treatment charges per above
|
(240
|
)
|
N/A
|
N/A
|
||||||||
Revenue
adjustments, primarily for pricing on prior
|
||||||||||||
period
open sales per above
|
75
|
N/A
|
N/A
|
|||||||||
Purchased
metal
|
179
|
179
|
N/A
|
|||||||||
Eliminations
and other
|
(140
|
)
|
(165
|
)
|
1
|
|||||||
South
America copper mines
|
3,879
|
1,277
|
378
|
|||||||||
North
America copper mines
|
4,093
|
2,166
|
499
|
|||||||||
Indonesia
mining
|
4,808
|
1,388
|
199
|
|||||||||
Africa
mining
|
–
|
10
|
2
|
|||||||||
Molybdenum
|
1,746
|
1,287
|
94
|
|||||||||
Rod
& Refining
|
5,140
|
5,119
|
7
|
|||||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
36
|
|||||||||
Corporate,
other & eliminations
|
(5,115
|
)
|
(5,049
|
)
|
31
|
|||||||
As
reported in FCX’s consolidated financial statements
|
$
|
16,939
|
$
|
8,527
|
$
|
1,246
|
a.
|
Reflects
the results of the South America copper mines under FCX
management.
|
b.
|
Includes
molybdenum, gold and silver product revenues and production
costs.
|
Year
Ended December 31, 2007a
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
millions)
|
Method
|
Copper
|
Other
b
|
Total
|
||||||||
Revenues,
excluding adjustments primarily for pricing on
|
||||||||||||
prior
period open sales
|
$
|
4,550
|
$
|
4,550
|
$
|
140
|
$
|
4,690
|
||||
Site
production and delivery, before net noncash
|
||||||||||||
nonrecurring
costs
|
$
|
1,268
|
$
|
1,224
|
$
|
58
|
$
|
1,282
|
||||
By-product
credits
|
(126
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
282
|
279
|
3
|
282
|
||||||||
Net
cash costs
|
$
|
1,424
|
$
|
1,503
|
$
|
61
|
$
|
1,564
|
||||
Reconciliation
to Pro Forma Revenues and Production and Delivery Costs
|
||||||||||||
(In
millions)
|
||||||||||||
Production
|
||||||||||||
Revenues
|
and
Delivery
|
|||||||||||
Totals
presented above
|
$
|
4,690
|
$
|
1,282
|
||||||||
Net
noncash and nonrecurring costs
|
N/A
|
3
|
||||||||||
Less:
Treatment charges per above
|
(282
|
)
|
N/A
|
|||||||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||||||||
open
sales
|
25
|
N/A
|
||||||||||
Purchased
metal
|
218
|
218
|
||||||||||
Purchase
accounting adjustments
|
9
|
169
|
||||||||||
Eliminations
and other
|
(222
|
)
|
(207
|
)
|
||||||||
Combined
South America copper mines
|
4,438
|
1,465
|
||||||||||
Combined
North America copper mines
|
5,046
|
2,595
|
||||||||||
Indonesia
mining
|
4,808
|
1,388
|
||||||||||
Combined
Africa mining
|
–
|
8
|
||||||||||
Combined
Molybdenum
|
2,193
|
1,593
|
||||||||||
Combined
Rod & Refining
|
6,437
|
6,411
|
||||||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
||||||||||
Eliminations
and other
|
(6,077
|
)
|
(5,979
|
)
|
||||||||
As
reported in FCX’s pro forma consolidated financial resultsc
|
$
|
19,233
|
$
|
9,810
|
||||||||
a.
|
Reflects
our historical data beginning March 20, 2007, combined with Phelps Dodge
pre-acquisition data through March 19, 2007. As the pre-acquisition data
represents the results under Phelps Dodge management, such data is not
necessarily indicative of what past results would have been under FCX
management or of future operating
results.
|
b.
|
Includes
molybdenum, gold and silver product revenues and production
costs.
|
c.
|
Refer
to Note 18 for summary of unaudited pro forma financial information for
year ended December 31, 2007.
|
Year
Ended December 31, 2006a
|
||||||||||||
By-Product
|
Co-Product
Method
|
|||||||||||
(In
millions)
|
Method
|
Copper
|
Other
b
|
Total
|
||||||||
Revenues,
excluding adjustments primarily for pricing on
|
||||||||||||
prior
period open sales
|
$
|
3,413
|
$
|
3,413
|
$
|
91
|
$
|
3,504
|
||||
Site
production and delivery, before net noncash and
|
||||||||||||
nonrecurring
costs
|
$
|
918
|
$
|
891
|
$
|
27
|
$
|
918
|
||||
By-product
credits
|
(91
|
)
|
–
|
–
|
–
|
|||||||
Treatment
charges
|
194
|
194
|
–
|
194
|
||||||||
Net
cash costs
|
$
|
1,021
|
$
|
1,085
|
$
|
27
|
$
|
1,112
|
||||
Reconciliation
to Amounts Reported by Phelps Dodge
|
||||||||||||
(In
millions)
|
||||||||||||
Production
|
||||||||||||
Revenues
|
and
Delivery
|
|||||||||||
Totals
presented above
|
$
|
3,504
|
$
|
918
|
||||||||
Net
noncash and nonrecurring costs
|
N/A
|
2
|
||||||||||
Less:
Treatment charges per above
|
(194
|
)
|
N/A
|
|||||||||
Revenue
adjustments, primarily for pricing on prior period
|
||||||||||||
open
sales
|
94
|
N/A
|
||||||||||
Purchased
metal
|
213
|
213
|
||||||||||
Eliminations
and other
|
(175
|
)
|
(168
|
)
|
||||||||
South
America copper mines
|
3,442
|
965
|
||||||||||
North
America copper mines
|
3,651
|
1,578
|
||||||||||
Molybdenum
|
1,748
|
1,257
|
||||||||||
Eliminations
and otherc
|
3,069
|
3,007
|
||||||||||
As
reported in Phelps Dodge consolidated financial resultsd
|
$
|
11,910
|
$
|
6,807
|
||||||||
a.
|
Reflects
Phelps Dodge pre-acquisition data. As the pre-acquisition data represents
the results under Phelps Dodge management, such data is not necessarily
indicative of what past results would have been under FCX management or of
future operating results.
|
b.
|
Includes
gold and silver product revenues and production
costs.
|
c.
|
Includes
revenues and production and delivery costs associated with the PDIC
manufacturing operation, which was sold by FCX on October 31,
2007.
|
d.
|
Obtained
from the Phelps Dodge Form 10-K for the year ended December 31, 2006. As
the pre-acquisition data represents the results under Phelps Dodge
management, such data is not necessarily indicative of what past results
would have been under FCX management or of future operating
results.
|
Year Ended December 31,
2008
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
2,628
|
$
|
2,628
|
$
|
1,025
|
$
|
50
|
$
|
3,703
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,762
|
1,252
|
487
|
23
|
1,762
|
||||||||||
Gold
and silver credits
|
(1,075
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
268
|
190
|
74
|
4
|
268
|
||||||||||
Royalty
on metals
|
113
|
80
|
31
|
2
|
113
|
||||||||||
Net
cash costs
|
1,068
|
1,522
|
592
|
29
|
2,143
|
||||||||||
Depreciation
and amortization
|
222
|
158
|
61
|
3
|
222
|
||||||||||
Noncash
and nonrecurring costs, net
|
30
|
22
|
8
|
–
|
30
|
||||||||||
Total
costs
|
1,320
|
1,702
|
661
|
32
|
2,395
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
90
|
90
|
–
|
–
|
90
|
||||||||||
PT
Smelting intercompany profit
|
17
|
12
|
5
|
–
|
17
|
||||||||||
Gross
profit
|
$
|
1,415
|
$
|
1,028
|
$
|
369
|
$
|
18
|
$
|
1,415
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion
and
|
||||||||||||||
Revenues
|
and
Delivery
|
Amortization
|
|||||||||||||
Totals
presented above
|
$
|
3,703
|
$
|
1,762
|
$
|
222
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
30
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(268
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(113
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
90
|
N/A
|
N/A
|
||||||||||||
Indonesia
mining
|
3,412
|
1,792
|
222
|
||||||||||||
North
America copper mines
|
5,265
|
3,708
|
770
|
||||||||||||
South
America copper mines
|
4,166
|
1,854
|
511
|
||||||||||||
Africa
mining
|
–
|
16
|
6
|
||||||||||||
Molybdenum
|
2,488
|
1,629
|
192
|
||||||||||||
Rod
& Refining
|
5,557
|
5,527
|
8
|
||||||||||||
Atlantic
Copper Smelting & Refining
|
2,341
|
2,276
|
35
|
||||||||||||
Corporate,
other & eliminations
|
(5,433
|
)
|
(5,604
|
)
|
38
|
||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
17,796
|
$
|
11,198
|
a
|
$
|
1,782
|
||||||||
a.
|
Includes
LCM inventory adjustments of $782
million.
|
Year Ended December 31,
2007
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
3,777
|
$
|
3,777
|
$
|
1,490
|
$
|
48
|
$
|
5,315
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,342
|
954
|
376
|
12
|
1,342
|
||||||||||
Gold
and silver credits
|
(1,538
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
385
|
274
|
108
|
3
|
385
|
||||||||||
Royalty
on metals
|
133
|
94
|
38
|
1
|
133
|
||||||||||
Net
cash costs
|
322
|
1,322
|
522
|
16
|
1,860
|
||||||||||
Depreciation
and amortization
|
199
|
141
|
56
|
2
|
199
|
||||||||||
Noncash
and nonrecurring costs, net
|
46
|
33
|
12
|
1
|
46
|
||||||||||
Total
costs
|
567
|
1,496
|
590
|
19
|
2,105
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
11
|
11
|
–
|
–
|
11
|
||||||||||
PT
Smelting intercompany profit
|
13
|
10
|
3
|
–
|
13
|
||||||||||
Gross
profit
|
$
|
3,234
|
$
|
2,302
|
$
|
903
|
$
|
29
|
$
|
3,234
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion
and
|
||||||||||||||
Revenues
|
and
Delivery
|
Amortization
|
|||||||||||||
Totals
presented above
|
$
|
5,315
|
$
|
1,342
|
$
|
199
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
46
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(385
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(133
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
11
|
N/A
|
N/A
|
||||||||||||
Indonesia
mining
|
4,808
|
1,388
|
199
|
||||||||||||
North
America copper mines
|
4,093
|
2,166
|
499
|
||||||||||||
South
America copper mines
|
3,879
|
1,277
|
378
|
||||||||||||
Africa
mining
|
–
|
10
|
2
|
||||||||||||
Molybdenum
|
1,746
|
1,287
|
94
|
||||||||||||
Rod
& Refining
|
5,140
|
5,119
|
7
|
||||||||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
36
|
||||||||||||
Corporate,
other & eliminations
|
(5,115
|
)
|
(5,049
|
)
|
31
|
||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
16,939
|
$
|
8,527
|
$
|
1,246
|
|||||||||
Year Ended December 31,
2006
|
|||||||||||||||
By-Product
|
Co-Product
Method
|
||||||||||||||
(In
millions)
|
Method
|
Copper
|
Gold
|
Silver
|
Total
|
||||||||||
Revenues,
after adjustments shown below
|
$
|
3,764
|
$
|
3,764
|
$
|
1,072
|
$
|
47
|
$
|
4,883
|
|||||
Site
production and delivery, before net noncash
|
|||||||||||||||
and
nonrecurring costs shown below
|
1,235
|
952
|
271
|
12
|
1,235
|
||||||||||
Gold
and silver credits
|
(1,119
|
)
|
–
|
–
|
–
|
–
|
|||||||||
Treatment
charges
|
477
|
368
|
104
|
5
|
477
|
||||||||||
Royalty
on metals
|
126
|
97
|
28
|
1
|
126
|
||||||||||
Net
cash costs
|
719
|
1,417
|
403
|
18
|
1,838
|
||||||||||
Depreciation
and amortization
|
184
|
142
|
40
|
2
|
184
|
||||||||||
Noncash
and nonrecurring costs, net
|
44
|
34
|
10
|
–
|
44
|
||||||||||
Total
costs
|
947
|
1,593
|
453
|
20
|
2,066
|
||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales
|
115
|
a
|
197
|
(69
|
)
|
(13
|
)
|
115
|
|||||||
PT
Smelting intercompany profit
|
(3
|
)
|
(2
|
)
|
(1
|
)
|
–
|
(3
|
)
|
||||||
Gross
profit
|
$
|
2,929
|
$
|
2,366
|
$
|
549
|
$
|
14
|
$
|
2,929
|
|||||
Reconciliation
to Amounts Reported
|
|||||||||||||||
(In
millions)
|
Depreciation,
|
||||||||||||||
Production
|
Depletion
and
|
||||||||||||||
Revenues
|
and
Delivery
|
Amortization
|
|||||||||||||
Totals
presented above
|
$
|
4,883
|
$
|
1,235
|
$
|
184
|
|||||||||
Net
noncash and nonrecurring costs per above
|
N/A
|
44
|
N/A
|
||||||||||||
Less:
Treatment charges per above
|
(477
|
)
|
N/A
|
N/A
|
|||||||||||
Less:
Royalty per above
|
(126
|
)
|
N/A
|
N/A
|
|||||||||||
Revenue
adjustments, primarily for pricing on prior
|
|||||||||||||||
period
open sales per above
|
115
|
N/A
|
N/A
|
||||||||||||
Indonesia
mining
|
4,395
|
1,279
|
184
|
||||||||||||
Atlantic
Copper Smelting & Refining
|
2,242
|
2,119
|
33
|
||||||||||||
Corporate,
other & eliminations
|
(846
|
)
|
(873
|
)
|
11
|
||||||||||
As
reported in FCX’s consolidated financial statements
|
$
|
5,791
|
$
|
2,525
|
$
|
228
|
|||||||||
a.
|
Includes
a $69 million loss on the redemption of FCX’s Gold-Denominated Preferred
Stock, Series II, and a $13 million loss on the redemption of FCX’s
Silver-Denominated Preferred Stock.
|
Years
Ended December 31,
|
||||||
(in
millions)
|
2008
|
2007a
|
||||
Revenues
|
$
|
1,182
|
$
|
853
|
||
Site
production and delivery, before net noncash
|
||||||
and
nonrecurring costs shown below
|
216
|
137
|
||||
Net
cash costs
|
216
|
137
|
||||
Depreciation,
depletion and amortization
|
172
|
80
|
||||
Noncash
and nonrecurring costs, net
|
7
|
b
|
2
|
|||
Total
costs
|
395
|
219
|
||||
Gross
profitc
|
$
|
787
|
$
|
634
|
Reconciliation
to Amounts Reported
|
Production
|
Depreciation,
|
|||||||
(In
millions)
|
and
|
Depletion
and
|
|||||||
Revenues
|
Delivery
|
Amortization
|
|||||||
Year Ended December 31,
2008
|
|||||||||
Totals
presented above
|
$
|
1,182
|
$
|
216
|
$
|
172
|
|||
Net
noncash and nonrecurring costs per above
|
N/A
|
7
|
b
|
N/A
|
|||||
Henderson
mine
|
1,182
|
223
|
172
|
||||||
Other
molybdenum operations and eliminationsd
|
1,306
|
1,406
|
e
|
20
|
|||||
Molybdenum
|
2,488
|
1,629
|
192
|
||||||
North
America copper mines
|
5,265
|
3,708
|
770
|
||||||
South
America copper mines
|
4,166
|
1,854
|
511
|
||||||
Indonesia
mining
|
3,412
|
1,792
|
222
|
||||||
Africa
mining
|
–
|
16
|
6
|
||||||
Rod
& Refining
|
5,557
|
5,527
|
8
|
||||||
Atlantic
Copper Smelting & Refining
|
2,341
|
2,276
|
35
|
||||||
Corporate,
other & eliminations
|
(5,433
|
)
|
(5,604
|
)
|
38
|
||||
As
reported in FCX’s consolidated financial statements
|
$
|
17,796
|
$
|
11,198
|
f
|
$
|
1,782
|
||
Year Ended December 31,
2007
|
|||||||||
Totals
presented above
|
$
|
853
|
$
|
137
|
$
|
80
|
|||
Net
noncash and nonrecurring costs per above
|
N/A
|
2
|
N/A
|
||||||
Henderson
mine
|
853
|
139
|
80
|
||||||
Other
molybdenum operations and eliminationsd
|
893
|
1,148
|
14
|
||||||
Molybdenum
|
1,746
|
1,287
|
94
|
||||||
North
America copper mines
|
4,093
|
2,166
|
499
|
||||||
South
America copper mines
|
3,879
|
1,277
|
378
|
||||||
Indonesia
mining
|
4,808
|
1,388
|
199
|
||||||
Africa
mining
|
–
|
10
|
2
|
||||||
Rod
& Refining
|
5,140
|
5,119
|
7
|
||||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
36
|
||||||
Corporate,
other & eliminations
|
(5,115
|
)
|
(5,049
|
)
|
31
|
||||
As
reported in FCX’s consolidated financial statements
|
$
|
16,939
|
$
|
8,527
|
$
|
1,246
|
|||
a.
|
Reflects
the period from March 20, 2007, through December 31, 2007, which
represents the results of the Henderson molybdenum mine under FCX
management.
|
b.
|
Includes
charges totaling $1 million for LCM inventory
adjustments.
|
c.
|
Gross
profit reflects sales of Henderson products based on volumes produced at
market-based pricing. On a consolidated basis, the Molybdenum segment
includes profits on sales as they are made to third parties and
realizations based on actual contract terms. As a result, the actual gross
profit realized will differ from the amounts reported in this
table.
|
d.
|
Primarily
includes amounts associated with the molybdenum sales company, which
includes sales of molybdenum produced as a by-product at our North and
South America copper mines.
|
e.
|
Includes
LCM inventory adjustments of $100
million.
|
f.
|
Includes
LCM inventory adjustments of $782
million.
|
Years
Ended December 31,
|
||||||
2007a
|
2006a
|
|||||
Revenues
|
$
|
1,029
|
$
|
821
|
||
Site
production and delivery, before net noncash
|
||||||
and
nonrecurring costs
|
$
|
171
|
$
|
137
|
||
Net
cash costs
|
$
|
171
|
$
|
137
|
||
Reconciliation
to Revenues and Production and Delivery Costs
|
||||||
(In
millions)
|
Production
|
|||||
Revenues
|
and
Delivery
|
|||||
Year Ended December 31,
2007
|
||||||
Totals
presented above
|
$
|
1,029
|
$
|
171
|
||
Net
noncash and nonrecurring costs
|
N/A
|
1
|
||||
Combined
Henderson mine
|
1,029
|
172
|
||||
Other
molybdenum operations and eliminationsb
|
1,164
|
1,421
|
||||
Combined
Molybdenum
|
2,193
|
1,593
|
||||
Combined
North America copper mines
|
5,046
|
2,595
|
||||
Combined
South America copper mines
|
4,438
|
1,465
|
||||
Indonesia
mining
|
4,808
|
1,388
|
||||
Combined
Africa mining
|
–
|
8
|
||||
Combined
Rod & Refining
|
6,437
|
6,411
|
||||
Atlantic
Copper Smelting & Refining
|
2,388
|
2,329
|
||||
Eliminations
and other
|
(6,077
|
)
|
(5,979
|
)
|
||
As
reported in FCX’s pro forma consolidated financial resultsc
|
$
|
19,233
|
$
|
9,810
|
||
Year Ended December 31,
2006
|
||||||
Totals
presented above
|
$
|
821
|
$
|
137
|
||
Net
noncash and nonrecurring costs
|
N/A
|
1
|
||||
Henderson
mine
|
821
|
138
|
||||
Other
molybdenum operations and eliminationsb
|
927
|
1,119
|
||||
Molybdenum
|
1,748
|
1,257
|
||||
North
America copper mines
|
3,651
|
1,578
|
||||
South
America copper mines
|
3,442
|
965
|
||||
Eliminations
and otherd
|
3,069
|
3,007
|
||||
As
reported in Phelps Dodge consolidated financial resultse
|
$
|
11,910
|
$
|
6,807
|
||
a.
|
The
year ended December 31, 2007, combines our historical data beginning March
20, 2007, with Phelps Dodge pre-acquisition data through March 19, 2007,
and for the year ended December 31, 2006, which reflects Phelps Dodge
pre-acquisition data. As the pre-acquisition data represents the results
under Phelps Dodge management, such data is not necessarily indicative of
what past results would have been under FCX management or of future
operating results.
|
b.
|
Primarily
includes amounts associated with the molybdenum sales company, which
includes sales of molybdenum produced as a by-product at our North and
South America copper mines.
|
c.
|
Refer
to Note 18 for summary of unaudited pro forma financial information for
year ended December 31, 2007.
|
d.
|
Includes
revenues and production and delivery costs associated with the PDIC
manufacturing operation, which was sold by FCX on October 31,
2007.
|
e.
|
Obtained
from the Phelps Dodge Form 10-K for the year ended December 31, 2006. As
the pre-acquisition data represents the results under Phelps Dodge
management, such data is not necessarily indicative of what past results
would have been under FCX management or of future operating
results.
|
·
|
Pertain
to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of the Company’s
assets;
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the Company
are being made only in accordance with authorizations of management and
directors of the Company; and
|
·
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the Company’s assets that
could have a material effect on the financial
statements.
|
/s/
Richard C. Adkerson
|
/s/ Kathleen L.
Quirk
|
|
Richard
C. Adkerson
|
Kathleen
L. Quirk
|
|
President
and Chief Executive Officer
|
Executive
Vice President,
|
|
Chief
Financial Officer and
Treasurer
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
2006
|
|||||||
(In
Millions, Except Per Share Amounts)
|
|||||||||
Revenues
|
$
|
17,796
|
$
|
16,939
|
$
|
5,791
|
|||
Cost
of sales:
|
|||||||||
Production
and delivery
|
10,416
|
8,527
|
2,525
|
||||||
Depreciation,
depletion and amortization
|
1,782
|
1,246
|
228
|
||||||
Lower
of cost or market inventory adjustments
|
782
|
–
|
–
|
||||||
Total
cost of sales
|
12,980
|
9,773
|
2,753
|
||||||
Selling,
general and administrative expenses
|
269
|
466
|
157
|
||||||
Exploration
and research expenses
|
292
|
145
|
12
|
||||||
Goodwill
impairment
|
5,987
|
–
|
–
|
||||||
Long-lived
asset impairments and other charges
|
10,978
|
–
|
–
|
||||||
Total
costs and expenses
|
30,506
|
10,384
|
2,922
|
||||||
Operating
(loss) income
|
(12,710
|
)
|
6,555
|
2,869
|
|||||
Interest
expense, net
|
(584
|
)
|
(513
|
)
|
(76
|
)
|
|||
Losses
on early extinguishment and conversion of debt, net
|
(6
|
)
|
(173
|
)
|
(32
|
)
|
|||
Gains
on sales of assets
|
13
|
85
|
31
|
||||||
Other
(expense) income, net
|
(22
|
)
|
157
|
28
|
|||||
(Loss)
income from continuing operations before income taxes,
|
|||||||||
minority
interests and equity in affiliated companies’ net earnings
|
(13,309
|
)
|
6,111
|
2,820
|
|||||
Benefit
from (provision for) income taxes
|
2,844
|
(2,400
|
)
|
(1,201
|
)
|
||||
Minority
interests in consolidated subsidiaries
|
(617
|
)
|
(791
|
)
|
(168
|
)
|
|||
Equity
in affiliated companies’ net earnings
|
15
|
22
|
6
|
||||||
(Loss)
income from continuing operations
|
(11,067
|
)
|
2,942
|
1,457
|
|||||
Income
from discontinued operations, net of taxes
|
–
|
35
|
–
|
||||||
Net
(loss) income
|
(11,067
|
)
|
2,977
|
1,457
|
|||||
Preferred
dividends and losses on induced conversions
|
(274
|
)
|
(208
|
)
|
(61
|
)
|
|||
Net
(loss) income applicable to common stock
|
$
|
(11,341
|
)
|
$
|
2,769
|
$
|
1,396
|
||
Basic
net (loss) income per share of common stock:
|
|||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
8.02
|
$
|
7.32
|
||
Discontinued
operations
|
–
|
0.10
|
–
|
||||||
Basic
net (loss) income per share of common stock
|
$
|
(29.72
|
)
|
$
|
8.12
|
$
|
7.32
|
||
Diluted
net (loss) income per share of common stock:
|
|||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
7.41
|
$
|
6.63
|
||
Discontinued
operations
|
–
|
0.09
|
–
|
||||||
Diluted
net (loss) income per share of common stock
|
$
|
(29.72
|
)
|
$
|
7.50
|
$
|
6.63
|
||
Average
common shares outstanding:
|
|||||||||
Basic
|
382
|
341
|
191
|
||||||
Diluted
|
382
|
397
|
221
|
||||||
Dividends
declared per share of common stock
|
$
|
1.375
|
$
|
1.375
|
$
|
5.0625
|
|||
Years
Ended December 31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
(In
Millions)
|
||||||||||
Cash
flow from operating activities:
|
||||||||||
Net
(loss) income
|
$
|
(11,067
|
)
|
$
|
2,977
|
$
|
1,457
|
|||
Adjustments
to reconcile net (loss) income to net cash provided by
|
||||||||||
operating
activities:
|
||||||||||
Depreciation,
depletion and amortization
|
1,782
|
1,264
|
228
|
|||||||
Minority
interests in consolidated subsidiaries
|
617
|
802
|
168
|
|||||||
Asset
impairments, including goodwill
|
16,854
|
–
|
–
|
|||||||
Lower
of cost or market inventory adjustments
|
782
|
–
|
–
|
|||||||
Pension
and postretirement special benefits and curtailments
|
61
|
–
|
–
|
|||||||
Stock-based
compensation
|
98
|
144
|
55
|
|||||||
Charges
for reclamation and environmental obligations, including
accretion
|
181
|
32
|
3
|
|||||||
Unrealized
losses on copper price protection program
|
–
|
175
|
–
|
|||||||
Losses
on early extinguishment and conversion of debt, net
|
6
|
173
|
32
|
|||||||
Deferred
income taxes
|
(4,653
|
)
|
(288
|
)
|
16
|
|||||
Gains
on sales of assets
|
(13
|
)
|
(85
|
)
|
(31
|
)
|
||||
Decrease
in long-term mill and leach stockpiles
|
(225
|
)
|
(48
|
)
|
–
|
|||||
Amortization
of intangible assets/liabilities and other, net
|
117
|
45
|
52
|
|||||||
(Increases)
decreases in working capital, excluding amounts
|
||||||||||
acquired
from Phelps Dodge:
|
||||||||||
Accounts
receivable
|
542
|
428
|
196
|
|||||||
Inventories
|
(478
|
)
|
272
|
(146
|
)
|
|||||
Prepaid
expenses and other current assets
|
(91
|
)
|
21
|
(27
|
)
|
|||||
Accounts
payable, accrued liabilities and copper price protection
program
|
(171
|
)
|
400
|
15
|
||||||
Accrued
income taxes
|
(767
|
)
|
24
|
(152
|
)
|
|||||
Settlement
of reclamation and environmental obligations
|
(205
|
)
|
(111
|
)
|
–
|
|||||
Net
cash provided by operating activities
|
3,370
|
6,225
|
1,866
|
|||||||
Cash
flow from investing activities:
|
||||||||||
North
America capital expenditures
|
(846
|
)
|
(933
|
)
|
–
|
|||||
South
America capital expenditures
|
(323
|
)
|
(123
|
)
|
–
|
|||||
Indonesia
capital expenditures
|
(444
|
)
|
(368
|
)
|
(234
|
)
|
||||
Africa
capital expenditures
|
(1,058
|
)
|
(266
|
)
|
–
|
|||||
Other
capital expenditures
|
(37
|
)
|
(65
|
)
|
(17
|
)
|
||||
Acquisition
of Phelps Dodge, net of cash acquired
|
(1
|
)
|
(13,910
|
)
|
(5
|
)
|
||||
Net
proceeds from the sale of Phelps Dodge International
Corporation
|
–
|
597
|
–
|
|||||||
Proceeds
from sales of assets
|
47
|
260
|
34
|
|||||||
Decrease
in global reclamation and remediation trust assets
|
430
|
–
|
–
|
|||||||
Other,
net
|
(86
|
)
|
(53
|
)
|
(2
|
)
|
||||
Net
cash used in investing activities
|
(2,318
|
)
|
(14,861
|
)
|
(224
|
)
|
||||
Cash
flow from financing activities:
|
||||||||||
Proceeds
from term loans under bank credit facility
|
–
|
12,450
|
–
|
|||||||
Repayments
of term loans under bank credit facility
|
–
|
(12,450
|
)
|
–
|
||||||
Net
proceeds from sales of senior notes
|
–
|
5,880
|
–
|
|||||||
Net
proceeds from sale of common stock
|
–
|
2,816
|
–
|
|||||||
Net
proceeds from sale of 6¾% Mandatory Convertible Preferred
Stock
|
–
|
2,803
|
–
|
|||||||
Proceeds
from revolving credit facility and other debt
|
890
|
744
|
103
|
|||||||
Repayments
of other debt and redemption of preferred stock
|
(766
|
)
|
(1,069
|
)
|
(394
|
)
|
||||
Purchases
of FCX common stock
|
(500
|
)
|
–
|
(100
|
)
|
|||||
Cash
dividends paid:
|
||||||||||
Common
stock
|
(693
|
)
|
(421
|
)
|
(916
|
)
|
||||
Preferred
stock
|
(255
|
)
|
(175
|
)
|
(61
|
)
|
||||
Minority
interests
|
(730
|
)
|
(967
|
)
|
(161
|
)
|
||||
Minority
interest contribution related to Tenke Fungurume
|
201
|
–
|
–
|
|||||||
Net
proceeds from (payments for) exercised stock options
|
22
|
(14
|
)
|
15
|
||||||
Excess
tax benefit from stock-based awards
|
25
|
16
|
21
|
|||||||
Bank
credit facilities fees and other, net
|
–
|
(258
|
)
|
(6
|
)
|
|||||
Net
cash (used in) provided by financing activities
|
(1,806
|
)
|
9,355
|
(1,499
|
)
|
|||||
Net
(decrease) increase in cash and cash equivalents
|
(754
|
)
|
719
|
143
|
||||||
Cash
and cash equivalents at beginning of year
|
1,626
|
907
|
764
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
872
|
$
|
1,626
|
$
|
907
|
||||
December
31,
|
||||||||
2008
|
2007
|
|||||||
(In
Millions, Except Par Values)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
872
|
$
|
1,626
|
||||
Trade
accounts receivable
|
374
|
1,099
|
||||||
Income
tax receivables
|
611
|
67
|
||||||
Other
accounts receivable
|
227
|
129
|
||||||
Inventories:
|
||||||||
Product
|
1,068
|
1,360
|
||||||
Materials
and supplies, net
|
1,124
|
818
|
||||||
Mill
and leach stockpiles
|
571
|
707
|
||||||
Prepaid
expenses and other current assets
|
386
|
97
|
||||||
Total
current assets
|
5,233
|
5,903
|
||||||
Property,
plant, equipment and development costs, net
|
16,002
|
25,715
|
||||||
Goodwill
|
–
|
6,105
|
||||||
Long-term
mill and leach stockpiles
|
1,145
|
1,106
|
||||||
Intangible
assets, net
|
364
|
472
|
||||||
Trust
assets
|
142
|
606
|
||||||
Other
assets
|
467
|
754
|
||||||
Total
assets
|
$
|
23,353
|
$
|
40,661
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued liabilities
|
$
|
2,722
|
$
|
2,345
|
||||
Accrued
income taxes
|
163
|
420
|
||||||
Current
portion of reclamation and environmental obligations
|
162
|
263
|
||||||
Current
portion of long-term debt and short-term borrowings
|
67
|
31
|
||||||
Dividends
payable
|
44
|
212
|
||||||
Copper
price protection program
|
–
|
598
|
||||||
Total
current liabilities
|
3,158
|
3,869
|
||||||
Long-term
debt, less current portion:
|
||||||||
Senior
notes
|
6,884
|
6,928
|
||||||
Project
financing, equipment loans and other
|
250
|
252
|
||||||
Revolving
credit facility
|
150
|
–
|
||||||
Total
long-term debt, less current portion
|
7,284
|
7,180
|
||||||
Deferred
income taxes
|
2,339
|
7,300
|
||||||
Reclamation
and environmental obligations, less current portion
|
1,951
|
1,733
|
||||||
Other
liabilities
|
1,520
|
1,106
|
||||||
Total
liabilities
|
16,252
|
21,188
|
||||||
Minority
interests in consolidated subsidiaries
|
1,328
|
1,239
|
||||||
Stockholders’
equity:
|
||||||||
5½%
Convertible Perpetual Preferred Stock, 1 shares issued
|
||||||||
and
outstanding
|
832
|
1,100
|
||||||
6¾%
Mandatory Convertible Preferred Stock, 29 shares issued
|
||||||||
and
outstanding
|
2,875
|
2,875
|
||||||
Common
stock, par value $0.10, 505 shares and 497 shares
|
||||||||
issued,
respectively
|
51
|
50
|
||||||
Capital
in excess of par value
|
13,989
|
13,407
|
||||||
Retained
earnings (accumulated deficit)
|
(8,267
|
)
|
3,601
|
|||||
Accumulated
other comprehensive income (loss)
|
(305
|
)
|
42
|
|||||
Common
stock held in treasury – 121 shares and 114 shares,
|
||||||||
respectively,
at cost
|
(3,402
|
)
|
(2,841
|
)
|
||||
Total
stockholders’ equity
|
5,773
|
18,234
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
23,353
|
$
|
40,661
|
||||
Convertible
Perpetual
|
Mandatory
Convertible
|
Common
Stock
|
||||||||||||||||||||||||||||||||||
Preferred
Stock
|
Preferred
Stock
|
Common
Stock
|
Retained
|
Accumulated
|
Held
in Treasury
|
|||||||||||||||||||||||||||||||
Number
|
Number
|
Number
|
Capital
in
|
Earnings
|
Other
|
Number
|
||||||||||||||||||||||||||||||
of
|
At
Par
|
of
|
At
Par
|
of
|
At
Par
|
Excess
of
|
(Accumulated
|
Comprehensive
|
of
|
At
|
Stockholders’
|
|||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Shares
|
Value
|
Par
Value
|
Deficit)
|
Income
(Loss)
|
Shares
|
Cost
|
Equity
|
|||||||||||||||||||||||||
(In
Millions)
|
||||||||||||||||||||||||||||||||||||
Balance
at January 1, 2006
|
1
|
$
|
1,100
|
-
|
$
|
-
|
297
|
$
|
30
|
$
|
2,212
|
$
|
1,086
|
$
|
11
|
110
|
$
|
(2,596
|
)
|
$
|
1,843
|
|||||||||||||||
Conversions
of 7% Convertible Senior Notes
|
-
|
-
|
-
|
-
|
10
|
1
|
311
|
-
|
-
|
-
|
-
|
312
|
||||||||||||||||||||||||
Exercised
and issued stock-based awards
|
-
|
-
|
-
|
-
|
3
|
-
|
93
|
-
|
-
|
-
|
-
|
93
|
||||||||||||||||||||||||
Stock-based
compensation costs
|
-
|
-
|
-
|
-
|
-
|
-
|
28
|
-
|
-
|
-
|
-
|
28
|
||||||||||||||||||||||||
Tax
benefit for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
24
|
-
|
-
|
-
|
-
|
24
|
||||||||||||||||||||||||
Tender
of shares for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
(53
|
)
|
(53
|
)
|
||||||||||||||||||||||
Shares
purchased
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
(100
|
)
|
(100
|
)
|
||||||||||||||||||||||
Cumulative
effect adjustment to initially
|
||||||||||||||||||||||||||||||||||||
apply
EITF 04-6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(149
|
)
|
-
|
-
|
-
|
(149
|
)
|
||||||||||||||||||||||
Dividends
on common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(918
|
)
|
-
|
-
|
-
|
(918
|
)
|
||||||||||||||||||||||
Dividends
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(61
|
)
|
-
|
-
|
-
|
(61
|
)
|
||||||||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,457
|
-
|
-
|
-
|
1,457
|
||||||||||||||||||||||||
Other
comprehensive income (loss),
|
||||||||||||||||||||||||||||||||||||
net
of taxes:
|
||||||||||||||||||||||||||||||||||||
Change
in unrealized derivatives’ fair value
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9
|
)
|
-
|
-
|
(9
|
)
|
||||||||||||||||||||||
Reclassification
to earnings
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
-
|
-
|
4
|
||||||||||||||||||||||||
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(5
|
)
|
-
|
-
|
(5
|
)
|
||||||||||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,452
|
||||||||||||||||||||||||
Adjustment
for adoption of SFAS No. 158,
|
||||||||||||||||||||||||||||||||||||
net
of taxes of $7 million
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(26
|
)
|
-
|
-
|
(26
|
)
|
||||||||||||||||||||||
Balance
at December 31, 2006
|
1
|
$
|
1,100
|
-
|
$
|
-
|
310
|
$
|
31
|
$
|
2,668
|
$
|
1,415
|
$
|
(20
|
)
|
113
|
$
|
(2,749
|
)
|
$
|
2,445
|
Convertible
Perpetual
|
Mandatory
Convertible
|
Common
Stock
|
||||||||||||||||||||||||||||||||||
Preferred
Stock
|
Preferred
Stock
|
Common
Stock
|
Retained
|
Accumulated
|
Held
in Treasury
|
|||||||||||||||||||||||||||||||
Number
|
Number
|
Number
|
Capital
in
|
Earnings
|
Other
|
Number
|
||||||||||||||||||||||||||||||
of
|
At
Par
|
of
|
At
Par
|
of
|
At
Par
|
Excess
of
|
(Accumulated
|
Comprehensive
|
of
|
At
|
Stockholders’
|
|||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Shares
|
Value
|
Par
Value
|
Deficit)
|
Income
(Loss)
|
Shares
|
Cost
|
Equity
|
|||||||||||||||||||||||||
(In
Millions)
|
||||||||||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
1
|
$
|
1,100
|
-
|
$
|
-
|
310
|
$
|
31
|
$
|
2,668
|
$
|
1,415
|
$
|
(20
|
)
|
113
|
$
|
(2,749
|
)
|
$
|
2,445
|
||||||||||||||
Sale
of 6¾% Mandatory Convertible
|
||||||||||||||||||||||||||||||||||||
Preferred
Stock
|
-
|
-
|
29
|
2,875
|
-
|
-
|
(72
|
)
|
-
|
-
|
-
|
-
|
2,803
|
|||||||||||||||||||||||
Common
stock issued to acquire Phelps Dodge
|
-
|
-
|
-
|
-
|
137
|
14
|
7,767
|
-
|
-
|
-
|
-
|
7,781
|
||||||||||||||||||||||||
Sale
of common stock
|
-
|
-
|
-
|
-
|
47
|
5
|
2,811
|
-
|
-
|
-
|
-
|
2,816
|
||||||||||||||||||||||||
Conversions
of 7% Convertible Senior Notes
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
-
|
-
|
-
|
6
|
||||||||||||||||||||||||
Exercised
and issued stock-based awards
|
-
|
-
|
-
|
-
|
3
|
-
|
131
|
-
|
-
|
-
|
-
|
131
|
||||||||||||||||||||||||
Stock-based
compensation costs
|
-
|
-
|
-
|
-
|
-
|
-
|
86
|
-
|
-
|
-
|
-
|
86
|
||||||||||||||||||||||||
Tax
benefit for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
10
|
-
|
-
|
-
|
-
|
10
|
||||||||||||||||||||||||
Tender
of shares for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
(92
|
)
|
(92
|
)
|
||||||||||||||||||||||
Cumulative
effect adjustment to initially
|
||||||||||||||||||||||||||||||||||||
apply
FIN 48
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
-
|
-
|
-
|
4
|
||||||||||||||||||||||||
Dividends
on common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(587
|
)
|
-
|
-
|
-
|
(587
|
)
|
||||||||||||||||||||||
Dividends
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(208
|
)
|
-
|
-
|
-
|
(208
|
)
|
||||||||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,977
|
-
|
-
|
-
|
2,977
|
||||||||||||||||||||||||
Other
comprehensive income (loss),
|
||||||||||||||||||||||||||||||||||||
net
of taxes:
|
||||||||||||||||||||||||||||||||||||
Unrealized
gain on securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
-
|
2
|
||||||||||||||||||||||||
Translation
adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3
|
)
|
-
|
-
|
(3
|
)
|
||||||||||||||||||||||
Change
in unrealized derivatives’ fair value
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3
|
)
|
-
|
-
|
(3
|
)
|
||||||||||||||||||||||
Reclassification
to earnings
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7
|
-
|
-
|
7
|
||||||||||||||||||||||||
Defined
benefit pension plans:
|
||||||||||||||||||||||||||||||||||||
Net
gain during period, net of taxes of
|
||||||||||||||||||||||||||||||||||||
$34
million
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
53
|
-
|
-
|
53
|
||||||||||||||||||||||||
Amortization
of unrecognized amounts
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
-
|
6
|
||||||||||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
62
|
-
|
-
|
62
|
||||||||||||||||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,039
|
||||||||||||||||||||||||
Balance
at December 31, 2007
|
1
|
$
|
1,100
|
29
|
$
|
2,875
|
497
|
$
|
50
|
$
|
13,407
|
$
|
3,601
|
$
|
42
|
114
|
$
|
(2,841
|
)
|
$
|
18,234
|
Convertible
Perpetual
|
Mandatory
Convertible
|
Common
Stock
|
||||||||||||||||||||||||||||||||||
Preferred
Stock
|
Preferred
Stock
|
Common
Stock
|
Retained
|
Accumulated
|
Held
in Treasury
|
|||||||||||||||||||||||||||||||
Number
|
Number
|
Number
|
Capital
in
|
Earnings
|
Other
|
Number
|
||||||||||||||||||||||||||||||
of
|
At
Par
|
of
|
At
Par
|
of
|
At
Par
|
Excess
of
|
(Accumulated
|
Comprehensive
|
of
|
At
|
Stockholders’
|
|||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Shares
|
Value
|
Par
Value
|
Deficit)
|
Income
(Loss)
|
Shares
|
Cost
|
Equity
|
|||||||||||||||||||||||||
(In
Millions)
|
||||||||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
1
|
$
|
1,100
|
29
|
$
|
2,875
|
497
|
$
|
50
|
$
|
13,407
|
$
|
3,601
|
$
|
42
|
114
|
$
|
(2,841
|
)
|
$
|
18,234
|
|||||||||||||||
Conversions
of 5½% Convertible Perpetual
|
||||||||||||||||||||||||||||||||||||
Preferred
Stock
|
-
|
(268
|
)
|
-
|
-
|
7
|
1
|
290
|
-
|
-
|
-
|
-
|
23
|
|||||||||||||||||||||||
Exercised
and issued stock-based awards
|
-
|
-
|
-
|
-
|
1
|
-
|
179
|
-
|
-
|
-
|
-
|
179
|
||||||||||||||||||||||||
Stock-based
compensation costs
|
-
|
-
|
-
|
-
|
-
|
-
|
100
|
-
|
-
|
-
|
-
|
100
|
||||||||||||||||||||||||
Tax
benefit for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
13
|
-
|
-
|
-
|
-
|
13
|
||||||||||||||||||||||||
Tender
of shares for stock-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
(61
|
)
|
(61
|
)
|
||||||||||||||||||||||
Shares
purchased
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
(500
|
)
|
(500
|
)
|
||||||||||||||||||||||
Dividends
on common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(527
|
)
|
-
|
-
|
-
|
(527
|
)
|
||||||||||||||||||||||
Dividends
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(274
|
)
|
-
|
-
|
-
|
(274
|
)
|
||||||||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(11,067
|
)
|
-
|
-
|
-
|
(11,067
|
)
|
||||||||||||||||||||||
Other
comprehensive income (loss),
|
||||||||||||||||||||||||||||||||||||
net
of taxes:
|
||||||||||||||||||||||||||||||||||||
Unrealized
loss on securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9
|
)
|
-
|
-
|
(9
|
)
|
||||||||||||||||||||||
Translation
adjustment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(4
|
)
|
-
|
-
|
(4
|
)
|
||||||||||||||||||||||
Defined
benefit pension plans:
|
||||||||||||||||||||||||||||||||||||
Net
loss during period, net of taxes
|
||||||||||||||||||||||||||||||||||||
of
$190 million
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(341
|
)
|
-
|
-
|
(341
|
)
|
||||||||||||||||||||||
Amortization
of unrecognized amounts
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7
|
-
|
-
|
7
|
||||||||||||||||||||||||
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(347
|
)
|
-
|
-
|
(347
|
)
|
||||||||||||||||||||||
Total
comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(11,414
|
)
|
|||||||||||||||||||||||
Balance
at December 31, 2008
|
1
|
$
|
832
|
29
|
$
|
2,875
|
505
|
$
|
51
|
$
|
13,989
|
$
|
(8,267
|
)
|
$
|
(305
|
)
|
121
|
$
|
(3,402
|
)
|
$
|
5,773
|
|||||||||||||
2008
|
2007
|
2006
|
||||||||
(Loss)
income from continuing operations
|
$
|
(11,067
|
)
|
$
|
2,942
|
$
|
1,457
|
|||
Preferred
dividends and losses on induced conversions
|
(274
|
)
|
(208
|
)
|
(61
|
)
|
||||
(Loss)
income from continuing operations applicable
|
||||||||||
to
common stock
|
(11,341
|
)
|
2,734
|
1,396
|
||||||
Plus
income impact of assumed conversion of:
|
||||||||||
6¾%
Mandatory Convertible Preferred Stock
|
–
|
147
|
–
|
|||||||
5½%
Convertible Perpetual Preferred Stock
|
–
|
61
|
61
|
|||||||
7%
Convertible Senior Notes
|
–
|
–
|
12
|
|||||||
Diluted
net (loss) income from continuing operations
|
||||||||||
applicable
to common stock
|
(11,341
|
)
|
2,942
|
1,469
|
||||||
Income
from discontinued operations
|
–
|
35
|
–
|
|||||||
Diluted
net (loss) income applicable to common shares
|
$
|
(11,341
|
)
|
$
|
2,977
|
$
|
1,469
|
Weighted-average
common shares outstanding
|
382
|
341
|
191
|
|||||||
Add
shares issuable upon conversion, exercise
|
||||||||||
or
vesting of:
|
||||||||||
6¾%
Mandatory Convertible Preferred Stock
|
||||||||||
(see
Note 13)
|
–
|
a
|
30
|
–
|
||||||
5½%
Convertible Perpetual Preferred Stock (see Note 13)
|
–
|
b
|
23
|
22
|
||||||
7%
Convertible Senior Notes (see Note 11)
|
–
|
–
|
7
|
|||||||
Dilutive
stock options (see Note 13)
|
–
|
c
|
2
|
1
|
||||||
Restricted
stock (see Note 13)
|
–
|
d
|
1
|
–
|
||||||
Weighted-average
common shares outstanding for
|
||||||||||
purposes
of calculating diluted net (loss) income per share
|
382
|
397
|
221
|
|||||||
Diluted
net (loss) income per share of common stock:
|
||||||||||
Continuing
operations
|
$
|
(29.72
|
)
|
$
|
7.41
|
$
|
6.63
|
|||
Discontinued
operations
|
–
|
0.09
|
–
|
|||||||
Diluted
net (loss) income per share of common stock
|
$
|
(29.72
|
)
|
$
|
7.50
|
$
|
6.63
|
|||
a.
|
Conversion
of preferred shares to common stock of approximately 39 million was
anti-dilutive.
|
b.
|
Conversion
of preferred shares to common stock of approximately 23 million was
anti-dilutive.
|
c.
|
Potential
additional shares of common stock of approximately 2 million were
anti-dilutive.
|
d.
|
Potential
additional shares of common stock of approximately 1 million were
anti-dilutive.
|
Long-lived
asset impairments
|
$
|
10,867
|
||
Pension
and postretirement special benefits and curtailments
|
61
|
|||
Restructuring
costs
|
50
|
|||
Total
long-lived asset impairments and other charges
|
$
|
10,978
|
||
2008
|
December
31,
|
||||||||
Additions
|
Payments
|
2008
|
|||||||
North America Copper Mines
|
|||||||||
Morenci
|
|||||||||
Employee
severance and benefit costs
|
$
|
3
|
$
|
(1
|
)
|
$
|
2
|
||
Sierrita
|
|||||||||
Contract
cancellation and other costs
|
2
|
(2
|
)
|
–
|
|||||
Other
mines
|
|||||||||
Employee
severance and benefit costs
|
12
|
–
|
12
|
||||||
Contract
cancellation and other costs
|
6
|
(5
|
)
|
1
|
|||||
23
|
(8
|
)
|
15
|
||||||
South America Copper Mines
|
|||||||||
Cerro
Verde
|
|||||||||
Contract
cancellation and other costs
|
1
|
–
|
1
|
||||||
Other
mines
|
|||||||||
Employee
severance and benefit costs
|
6
|
–
|
6
|
||||||
7
|
–
|
7
|
|||||||
Africa
|
|||||||||
Employee
severance and benefit costs
|
2
|
–
|
2
|
||||||
Molybdenum
|
|||||||||
Employee
severance and benefit costs
|
1
|
–
|
1
|
||||||
Contract
cancellation and other costs
|
3
|
(3
|
)
|
–
|
|||||
4
|
(3
|
)
|
1
|
||||||
Rod & Refining
|
|||||||||
Employee
severance and benefit costs
|
4
|
–
|
4
|
||||||
Corporate & Other
|
|||||||||
Employee
severance and benefit costs
|
7
|
(1
|
)
|
6
|
|||||
Contract
cancellation and other costs
|
3
|
–
|
3
|
||||||
10
|
(1
|
)
|
9
|
||||||
Total
|
$
|
50
|
$
|
(12
|
)
|
$
|
38
|
||
Revenues
|
$
|
937
|
||
Operating
income
|
78
|
|||
Provision
for income taxes
|
(24
|
)
|
||
Income
from discontinued operations
|
35
|
|||
December
31,
|
|||||||
2008
|
2007
|
||||||
Mining
Operations:
|
|||||||
Raw
materials
|
$
|
1
|
$
|
1
|
|||
Work-in-process
|
128
|
71
|
|||||
Finished
goodsa
|
703
|
898
|
|||||
Atlantic
Copper:
|
|||||||
Raw
materials (concentrates)
|
164
|
164
|
|||||
Work-in-process
|
71
|
220
|
|||||
Finished
goods
|
1
|
6
|
|||||
Total
product inventories
|
1,068
|
1,360
|
|||||
Total
materials and supplies, netb
|
1,124
|
818
|
|||||
Total
inventories
|
$
|
2,192
|
$
|
2,178
|
|||
a.
|
Primarily
includes copper concentrates, anodes, cathodes and rod, and
molybdenum.
|
b.
|
Materials
and supplies inventory is net of obsolescence reserves totaling $22
million at December 31, 2008, and $16 million at December 31,
2007.
|
North
|
South
|
|||||||||||
America
|
America
|
Africa
|
Total
|
|||||||||
Current:
|
||||||||||||
Mill
stockpiles
|
$
|
–
|
$
|
10
|
$
|
–
|
$
|
10
|
||||
Leach
stockpiles
|
489
|
72
|
–
|
561
|
||||||||
Total
current mill and leach
|
||||||||||||
stockpiles
|
$
|
489
|
$
|
82
|
$
|
–
|
$
|
571
|
||||
Long-terma:
|
||||||||||||
Mill
stockpiles
|
$
|
2
|
$
|
335
|
$
|
3
|
$
|
340
|
||||
Leach
stockpiles
|
625
|
180
|
–
|
805
|
||||||||
Total
long-term mill and leach
|
||||||||||||
stockpiles
|
$
|
627
|
$
|
515
|
$
|
3
|
$
|
1,145
|
||||
a.
|
Materials
in stockpiles not expected to be recovered within the next 12
months.
|
North
|
South
|
|||||||||||
America
|
America
|
Total
|
||||||||||
Current:
|
||||||||||||
Mill
stockpiles
|
$
|
–
|
$
|
6
|
$
|
6
|
||||||
Leach
stockpiles
|
630
|
71
|
701
|
|||||||||
Total
current mill and leach stockpiles
|
$
|
630
|
$
|
77
|
$
|
707
|
||||||
Long-terma:
|
||||||||||||
Mill
stockpiles
|
$
|
–
|
$
|
248
|
$
|
248
|
||||||
Leach
stockpiles
|
685
|
173
|
858
|
|||||||||
Total
long-term mill and leach stockpiles
|
$
|
685
|
$
|
421
|
$
|
1,106
|
||||||
a.
|
Materials
in stockpiles not expected to be recovered within the next 12
months.
|
December
31,
|
2008
|
||||||||||
2008
|
2007
|
Impairments
|
|||||||||
Proven
and probable reserves
|
$
|
4,052
|
$
|
13,797
|
$
|
10,056
|
|||||
VBPP
|
1,341
|
2,103
|
471
|
||||||||
Development
and other
|
2,572
|
2,516
|
279
|
||||||||
Buildings
and infrastructure
|
2,381
|
2,300
|
167
|
||||||||
Machinery
and equipment
|
5,713
|
6,023
|
938
|
||||||||
Mobile
equipment
|
1,801
|
2,106
|
393
|
||||||||
Construction
in progress
|
2,686
|
1,197
|
27
|
||||||||
Property,
plant, equipment and
|
|||||||||||
development
costs
|
20,546
|
30,042
|
12,331
|
||||||||
Accumulated
depreciation, depletion and
|
|||||||||||
amortization
|
(4,544
|
)
|
(4,327
|
)
|
(1,583
|
)
|
|||||
Property,
plant, equipment and
|
|||||||||||
development
costs, net
|
$
|
16,002
|
$
|
25,715
|
$
|
10,748
|
|||||
Balance
at January 1, 2007
|
$
|
–
|
||
Acquisition
of Phelps Dodge
|
6,265
|
|||
Additionsa
|
21
|
|||
Disposal
of PDIC (see Note 4)
|
(181
|
)
|
||
Balance
at December 31, 2007
|
6,105
|
|||
Purchase
accounting adjustment
|
(57
|
)
|
||
Deferred
tax liability adjustment associated with the
|
||||
purchase
of Phelps Dodgeb
|
(61
|
)
|
||
Impairment
losses
|
(5,987
|
)
|
||
Balance
at December 31, 2008
|
$
|
–
|
||
a.
|
In
2007, FCX acquired minority shareholders’ interests in several of its
subsidiaries, which were subsequently included in the sale of
PDIC.
|
b.
|
Adjustment
was allocated to the Morenci mine.
|
December
31, 2008
|
|||||||||
Gross
|
Net
|
||||||||
Carrying
|
Accumulated
|
Book
|
|||||||
Valuea
|
Amortizationa
|
Value
|
|||||||
Indefinite-lived
water rights
|
$
|
256
|
$
|
–
|
$
|
256
|
|||
Patents
and process technology
|
48
|
(6
|
)
|
42
|
|||||
Royalty
payments
|
47
|
(7
|
)
|
40
|
|||||
Power
contracts
|
26
|
(11
|
)
|
15
|
|||||
Tire
contracts
|
9
|
(2
|
)
|
7
|
|||||
Other
intangibles
|
4
|
–
|
4
|
||||||
Total
intangible assets
|
$
|
390
|
$
|
(26
|
)
|
$
|
364
|
||
Treatment
and refining terms in
|
|||||||||
sales
contracts
|
$
|
52
|
$
|
(15
|
)
|
$
|
37
|
||
Molybdenum
sales contracts
|
108
|
(108
|
)
|
–
|
|||||
Total
intangible liabilities
|
$
|
160
|
$
|
(123
|
)
|
$
|
37
|
||
a.
|
After
impairments recorded in 2008.
|
December
31, 2007
|
|||||||||
Gross
|
Net
|
||||||||
Carrying
|
Accumulated
|
Book
|
|||||||
Value
|
Amortization
|
Value
|
|||||||
Indefinite-lived
water rights
|
$
|
200
|
$
|
–
|
$
|
200
|
|||
Patents
and process technology
|
48
|
(2
|
)
|
46
|
|||||
Royalty
payments
|
39
|
(2
|
)
|
37
|
|||||
Power
contracts
|
169
|
(38
|
)
|
131
|
|||||
Tire
contracts
|
39
|
(4
|
)
|
35
|
|||||
Other
intangibles
|
24
|
(1
|
)
|
23
|
|||||
Total
intangible assets
|
$
|
519
|
$
|
(47
|
)
|
$
|
472
|
||
Treatment
and refining terms in
|
|||||||||
sales
contracts
|
$
|
52
|
$
|
(9
|
)
|
$
|
43
|
||
Molybdenum
sales contracts
|
115
|
(111
|
)
|
4
|
|||||
Total
intangible liabilities
|
$
|
167
|
$
|
(120
|
)
|
$
|
47
|
||
December
31,
|
||||||
2008
|
2007
|
|||||
Employee
and retiree benefit trustsa
|
$
|
117
|
$
|
18
|
||
Global
reclamation and remediationb
|
114
|
544
|
||||
Change
of control
|
15
|
21
|
||||
Rabbi
trust
|
14
|
23
|
||||
Total
trust assets
|
260
|
606
|
||||
Less
current portion (included in other current assets)
|
(118
|
)
|
–
|
|||
Long-term
trust assets
|
$
|
142
|
$
|
606
|
||
a.
|
During
2008, the Voluntary Employees’ Beneficiary Association (VEBA) trusts were
amended to allow benefit payments for active as well as retired employees;
therefore, these trusts no longer qualify under applicable accounting
rules as plan assets under FCX’s postretirement medical and life insurance
benefit plans.
|
b.
|
Decrease
results primarily from reimbursement of previously incurred costs for
reclamation and environmental activities. Includes $114 million in 2008
and $106 million in 2007 of legally restricted funds for AROs at the
Chino, Tyrone and Cobre mines. See Note 15 for further
discussion.
|
December
31,
|
|||||||
2008
|
2007
|
||||||
Accounts
payable
|
$
|
1,164
|
$
|
1,195
|
|||
Provisionally
priced sales adjustmentsa
|
698
|
59
|
|||||
Pension,
postretirement, postemployment and other
|
|||||||
employee
benefitsb
|
156
|
108
|
|||||
Accrued
interestc
|
136
|
144
|
|||||
Salaries,
wages and other compensation
|
129
|
278
|
|||||
Current
deferred tax liability
|
78
|
171
|
|||||
Community
development programs
|
74
|
118
|
|||||
Other
|
287
|
272
|
|||||
Total
accounts payable and accrued liabilities
|
$
|
2,722
|
$
|
2,345
|
|||
a.
|
Represents
payables to customers as a result of adjusting embedded derivatives in
provisionally priced sales to market prices (see “Revenue Recognition” in
Note 1 for further discussion).
|
b.
|
See
Note 10 for long-term portion and Note 12 for further
discussion.
|
c.
|
Third-party
interest paid by FCX was $741 million in 2008, $504 million in 2007 and
$80 million in 2006.
|
December
31,
|
|||||||
2008
|
2007
|
||||||
Pension,
postretirement, postemployment and other
|
|||||||
employment
benefits and long-term incentive
|
|||||||
compensationa
|
$
|
964
|
$
|
644
|
|||
Reserve
for uncertain tax benefits
|
159
|
115
|
|||||
Accrued
long-term tax liability
|
82
|
80
|
|||||
Atlantic
Copper contractual obligation to
|
|||||||
insurance
company (see Note 12)
|
62
|
72
|
|||||
Community
development programs
|
59
|
–
|
|||||
Insurance
claim reserve
|
50
|
44
|
|||||
Other
|
144
|
151
|
|||||
Total
other liabilities
|
$
|
1,520
|
$
|
1,106
|
|||
a.
|
See
Note 9 for short-term portion and Note 12 for further
discussion.
|
December
31,
|
|||||||
2008
|
2007
|
||||||
Senior
Credit Facility
|
$
|
150
|
$
|
–
|
|||
Senior
Notes:
|
|||||||
8.375%
Senior Notes due 2017
|
3,500
|
3,500
|
|||||
8.25%
Senior Notes due 2015
|
1,500
|
1,500
|
|||||
Senior
Floating Rate Notes due 2015
|
1,000
|
1,000
|
|||||
6⅞%
Senior Notes due 2014
|
340
|
340
|
|||||
9½%
Senior Notes due 2031
|
198
|
239
|
|||||
8¾%
Senior Notes due 2011
|
115
|
118
|
|||||
6⅛%
Senior Notes due 2034
|
115
|
115
|
|||||
7⅛%
Debentures due 2027
|
115
|
115
|
|||||
7%
Convertible Senior Notes due 2011
|
1
|
1
|
|||||
Other
(including equipment capital leases and
|
|||||||
short-term
borrowings)
|
317
|
283
|
|||||
Total
debt
|
7,351
|
7,211
|
|||||
Less
current portion of long-term debt and
|
|||||||
short-term
borrowings
|
(67
|
)
|
(31
|
)
|
|||
Long-term
debt
|
$
|
7,284
|
$
|
7,180
|
|||
December
31,
|
|||||||
2008
|
2007
|
||||||
Projected
benefit obligation
|
$
|
1,486
|
$
|
230
|
|||
Accumulated
benefit obligation
|
1,403
|
259
|
|||||
Fair
value of plan assets
|
968
|
66
|
|||||
PT
Freeport
|
||||||||||||||||||
FCX
|
Indonesia
|
Atlantic
Copper
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Change
in benefit obligation:
|
||||||||||||||||||
Benefit
obligation at beginning
|
||||||||||||||||||
of
year
|
$
|
1,342
|
$
|
50
|
$
|
65
|
$
|
54
|
$
|
87
|
$
|
83
|
||||||
Acquisition
of Phelps Dodge
|
–
|
1,370
|
–
|
–
|
–
|
–
|
||||||||||||
Service
cost
|
29
|
24
|
6
|
5
|
–
|
–
|
||||||||||||
Interest
cost
|
80
|
62
|
6
|
5
|
4
|
5
|
||||||||||||
Amendments
|
(6
|
)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||
Actuarial
(gains) losses
|
62
|
(78
|
)
|
(5
|
)
|
7
|
1
|
–
|
||||||||||
Divestitures
|
–
|
(5
|
)
|
–
|
–
|
–
|
–
|
|||||||||||
Foreign
exchange (gain) loss
|
(4
|
)
|
2
|
(9
|
)
|
(3
|
)
|
(3
|
)
|
8
|
||||||||
Curtailmentsa
|
(19
|
)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||
Special
retirement benefitsa
|
39
|
–
|
–
|
–
|
–
|
–
|
||||||||||||
Benefits
paid
|
(111
|
)
|
(83
|
)
|
(4
|
)
|
(3
|
)
|
(8
|
)
|
(9
|
)
|
||||||
Benefit
obligation at end of year
|
$ |
1,412
|
$
|
1,342
|
$ |
59
|
$ |
65
|
$
|
81
|
$
|
87
|
||||||
PT
Freeport
|
||||||||||||||||||
FCX
|
Indonesia
|
Atlantic
Copper
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Change
in plan assets:
|
||||||||||||||||||
Fair
value of plan assets at
|
||||||||||||||||||
beginning
of year
|
$
|
1,442
|
$
|
13
|
$
|
38
|
$
|
30
|
$
|
15
|
$
|
14
|
||||||
Acquisition
of Phelps Dodge
|
–
|
1,374
|
–
|
–
|
–
|
–
|
||||||||||||
Actual
return on plan assets
|
(390
|
)
|
113
|
(2
|
)
|
4
|
–
|
–
|
||||||||||
Employer
contributionsb
|
21
|
24
|
15
|
8
|
12
|
10
|
||||||||||||
Foreign
exchange gain (loss)
|
(3
|
)
|
1
|
(6
|
)
|
(1
|
)
|
–
|
–
|
|||||||||
Benefits
paid
|
(111
|
)
|
(83
|
)
|
(3
|
)
|
(3
|
)
|
(8
|
)
|
(9
|
)
|
||||||
Fair
value of plan assets at end
|
||||||||||||||||||
of
year
|
959
|
1,442
|
42
|
38
|
19
|
15
|
||||||||||||
Funded
status
|
$
|
(453
|
)
|
$
|
100
|
$
|
(17
|
)
|
$
|
(27
|
)
|
$
|
(62
|
)
|
$
|
(72
|
)
|
|
Accumulated
benefit obligation
|
$
|
1,329
|
$
|
1,252
|
$
|
37
|
$
|
39
|
$
|
81
|
$
|
87
|
||||||
Weighted-average
assumptions
|
||||||||||||||||||
used
to determine benefit
|
||||||||||||||||||
obligations:
|
||||||||||||||||||
Discount
ratec
|
6.10
|
%
|
6.30
|
%
|
12.00
|
%
|
10.25
|
%
|
6.77
|
%
|
6.77
|
%
|
||||||
Rate
of compensation increased
|
4.25
|
%
|
4.25
|
%
|
8.00
|
%
|
8.00
|
%
|
N/A
|
N/A
|
||||||||
Balance
sheet classification of
|
||||||||||||||||||
funded
status:
|
||||||||||||||||||
Other
assets
|
$
|
3
|
$
|
195
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||||
Accounts
payable and
|
||||||||||||||||||
accrued
liabilities
|
(5
|
)
|
(7
|
)
|
–
|
(1
|
)
|
–
|
–
|
|||||||||
Other
liabilities
|
(451
|
)
|
(88
|
)
|
(17
|
)
|
(26
|
)
|
(62
|
)
|
(72
|
)
|
||||||
Total
|
$
|
(453
|
)
|
$
|
100
|
$
|
(17
|
)
|
$
|
(27
|
)
|
$
|
(62
|
)
|
$
|
(72
|
)
|
|
a.
|
Resulted
from revised mine operating plans and reductions in the workforce (see
Note 2 for further discussion).
|
b.
|
Employer
contributions for 2009 are expected to approximate $6 million for the
FCX plans, $14 million for the PT Freeport Indonesia plan (based on a
December 31, 2008, exchange rate of 10,850 Indonesian rupiah to one
U.S. dollar) and $10 million for the Atlantic Copper plan (based on a
December 31, 2008, exchange rate of $1.39 per
euro).
|
c.
|
The
discount rate shown in 2008 for the FCX plans relates to all plans except
the SERP plan. The discount rate shown in 2007 for the FCX plans relates
to the FMC plans and the excess benefit plan. The SERP plan’s discount
rate in 2008 and 2007 was 4.00
percent.
|
d.
|
The
rate of compensation increase shown for the FCX plans only relates to the
FMC plans.
|
2008
|
2007
|
2006
|
|||||||
Weighted-average
assumptions:
|
|||||||||
Discount
rate
|
|||||||||
FCX
SERP
|
4.00
|
%
|
4.00
|
%
|
6.00
|
%
|
|||
FMC
plans
|
6.30
|
%
|
5.78
|
%
|
N/A
|
||||
Expected
return on plan assetsa
|
8.50
|
%
|
8.50
|
%
|
N/A
|
||||
Rate
of compensation increasea
|
4.25
|
%
|
4.25
|
%
|
N/A
|
||||
Service
cost
|
$
|
29
|
$
|
24
|
$
|
–
|
|||
Interest
cost
|
80
|
62
|
2
|
||||||
Expected
return on plan assets
|
(118
|
)
|
(90
|
)
|
–
|
||||
Amortization
of prior service cost
|
4
|
4
|
4
|
||||||
Special
retirement benefitsb
|
39
|
–
|
–
|
||||||
Net
periodic benefit cost
|
$
|
34
|
$
|
–
|
$
|
6
|
|||
a.
|
The
assumptions shown only relate to the FMC
plans.
|
b.
|
Resulted
from revised mine operating plans and reductions in the workforce (see
Note 2 for further discussion).
|
PT
Freeport Indonesia
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Weighted-average
assumptions:
|
|||||||||
Discount
rate
|
10.25
|
%
|
10.50
|
%
|
12.00
|
%
|
|||
Expected
return on plan assets
|
9.00
|
%
|
10.00
|
%
|
10.00
|
%
|
|||
Rate
of compensation increase
|
8.00
|
%
|
9.00
|
%
|
10.00
|
%
|
|||
Service
cost
|
$
|
6
|
$
|
5
|
$
|
4
|
|||
Interest
cost
|
6
|
5
|
5
|
||||||
Expected
return on plan assets
|
(3
|
)
|
(3
|
)
|
(3
|
)
|
|||
Amortization
of prior service cost
|
1
|
1
|
1
|
||||||
Amortization
of net actuarial loss
|
1
|
1
|
1
|
||||||
Net
periodic benefit cost
|
$
|
11
|
$
|
9
|
$
|
8
|
|||
Atlantic
Copper
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Weighted-average
assumption:
|
|||||||||
Discount
rate
|
6.77
|
%
|
6.77
|
%
|
6.77
|
%
|
|||
Interest
cost
|
$
|
4
|
$
|
5
|
$
|
5
|
|||
Amortization
of net actuarial loss
|
2
|
–
|
1
|
||||||
Net
periodic benefit cost
|
$
|
6
|
$
|
5
|
$
|
6
|
|||
FCX
|
PT
Freeport Indonesia
|
|||||||
2008
|
2007
|
2008
|
2007
|
|||||
Equity
securities
|
45
|
%
|
55
|
%
|
9
|
%
|
19
|
%
|
Fixed
income
|
43
|
35
|
91
|
74
|
||||
Real
estate
|
8
|
7
|
–
|
–
|
||||
Other
|
4
|
3
|
–
|
7
|
||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
PT
Freeport
|
Atlantic
|
||||||||
FCX
|
Indonesiaa
|
Copperb
|
|||||||
2009
|
$
|
87
|
$
|
3
|
$
|
8
|
|||
2010
|
85
|
11
|
8
|
||||||
2011
|
85
|
6
|
8
|
||||||
2012
|
136
|
7
|
8
|
||||||
2013
|
88
|
8
|
8
|
||||||
2014
through 2018
|
477
|
52
|
42
|
||||||
a.
|
Based
on a December 31, 2008, exchange rate of 10,850 Indonesian rupiah to
one U.S. dollar.
|
b.
|
Based
on a December 31, 2008, exchange rate of $1.39 per
euro.
|
2008
|
2007
|
|||||
Change
in benefit obligation:
|
||||||
Benefit
obligation at beginning of year
|
$
|
256
|
$
|
4
|
||
Acquisition
of Phelps Dodge
|
–
|
255
|
||||
Service
cost
|
1
|
1
|
||||
Interest
cost
|
14
|
11
|
||||
Actuarial
(gains) losses
|
(8
|
)
|
8
|
|||
Curtailmentsa
|
23
|
–
|
||||
Benefits
paid, net of employee contributions and
|
||||||
Medicare
Part D subsidy
|
(29
|
)
|
(23
|
)
|
||
Benefit
obligation at end of year
|
257
|
256
|
||||
Change
in plan assets:
|
||||||
Fair
value of plan assets at beginning of year
|
150
|
–
|
||||
Acquisition
of Phelps Dodge
|
–
|
173
|
||||
Actual
return on plans assets
|
3
|
5
|
||||
Employer
contributionsb
|
2
|
2
|
||||
Benefits
paid
|
(40
|
)
|
(30
|
)
|
||
Transfer
of plan assetsc
|
(115
|
)
|
–
|
|||
Fair
value of plan assets at end of year
|
–
|
150
|
||||
Funded
status
|
$
|
(257
|
)
|
$
|
(106
|
)
|
Discount
rate assumption
|
6.30
|
%
|
6.00
|
%
|
||
Balance
sheet classification of funded status:
|
||||||
Accounts
payable and accrued liabilities
|
$
|
(32
|
)
|
$
|
(2
|
)
|
Other
liabilities
|
(225
|
)
|
(104
|
)
|
||
Total
|
$
|
(257
|
)
|
$
|
(106
|
)
|
a.
|
Resulted
from revised mine operating plans and reductions in the workforce (see
Note 2 for further discussion).
|
b.
|
Employer
contributions for 2009 are expected to approximate
$32 million.
|
c.
|
During
2008, the VEBA trusts were amended to allow benefit payments for both
active employees and retirees; therefore, the VEBA trusts no longer
qualify as plan assets.
|
2008
|
2007
|
|||||
Weighted-average
assumptionsa:
|
||||||
Discount
rate – medical retiree
|
6.00
|
%
|
5.62
|
%
|
||
Discount
rate – life retiree
|
6.00
|
%
|
5.66
|
%
|
||
Expected
return on plan assets – medical retiree
|
3.30
|
%
|
3.70
|
%
|
||
Expected
return on plan assets – life retiree
|
4.30
|
%
|
4.50
|
%
|
||
Service
cost
|
$
|
1
|
$
|
1
|
||
Interest
cost
|
14
|
11
|
||||
Expected
return on plan assets
|
(4
|
)
|
(5
|
)
|
||
Curtailmentsb
|
23
|
–
|
||||
Net
periodic benefit cost
|
$
|
34
|
$
|
7
|
||
a.
|
The
assumptions shown only relate to the FMC
plans.
|
b.
|
Resulted
from revised mine operating plans and reductions in the workforce (see
Note 2 for further discussion).
|
2008
|
2007
|
|||||
Medical-care
cost trend rate assumed for
|
||||||
the
next year
|
9
|
%
|
9
|
%
|
||
Rate
to which the cost trend rate is assumed
|
||||||
to
decline (the ultimate trend rate)
|
5
|
%
|
5
|
%
|
||
Year
that the rate reaches the ultimate trend rate
|
2013
|
2012
|
||||
2008
|
2007
|
2006
|
||||||||
Stock
options awarded to employees (including directors)
|
$
|
66
|
$
|
71
|
$
|
28
|
||||
Stock
options awarded to nonemployees
|
5
|
5
|
3
|
|||||||
Restricted
stock units awarded to employees
|
52
|
–
|
–
|
|||||||
Restricted
stock units in lieu of cash awards
|
(29
|
)a
|
67
|
23
|
||||||
Restricted
stock awards to employees
|
3
|
6
|
–
|
|||||||
Restricted
stock units awarded to directors
|
4
|
3
|
1
|
|||||||
Stock
appreciation rights
|
(6
|
)
|
7
|
1
|
||||||
Total
stock-based compensation costb
|
95
|
159
|
56
|
|||||||
Tax
benefit
|
(36
|
)
|
(62
|
)
|
(20
|
)
|
||||
Minority
interests share
|
(2
|
)
|
(4
|
)
|
(3
|
)
|
||||
Impact
on net (loss) income
|
$
|
57
|
$
|
93
|
$
|
33
|
||||
a.
|
Reflects
an adjustment related to 2007
awards.
|
b.
|
Amounts
are before Rio Tinto’s share of the cost of employee exercises of
in-the-money stock options, which decreased consolidated selling, general
and administrative expenses by $1 million in 2008, $4 million in 2007
and $7 million in 2006.
|
Weighted-
|
||||||||||
Average
|
||||||||||
Weighted-
|
Remaining
|
Aggregate
|
||||||||
Number
of
|
Average
|
Contractual
|
Intrinsic
|
|||||||
Options
|
Option
Price
|
Term
(years)
|
Value
|
|||||||
Balance
at January 1
|
10,759,798
|
$
|
58.17
|
|||||||
Granted
|
1,449,500
|
91.10
|
||||||||
Exercised
|
(2,198,601
|
)
|
48.51
|
|||||||
Expired/Forfeited
|
(157,750
|
)
|
70.43
|
|||||||
Balance
at December 31
|
9,852,947
|
64.98
|
7.8
|
$
|
4
|
|||||
Vested
and exercisable at December 31
|
2,108,906
|
50.72
|
6.6
|
$
|
4
|
|||||
2007
|
2006
|
||||||||||
Weighted-
|
Weighted-
|
||||||||||
Average
|
Average
|
||||||||||
Number
of
|
Option
|
Number
of
|
Option
|
||||||||
Options
|
Price
|
Options
|
Price
|
||||||||
Balance
at January 1
|
5,801,716
|
$
|
39.70
|
7,355,612
|
$
|
31.43
|
|||||
Granted
|
6,641,500
|
69.89
|
1,126,250
|
62.88
|
|||||||
Conversion
of Phelps Dodge options
|
806,595
|
28.38
|
–
|
–
|
|||||||
Exercised
|
(2,276,391
|
)
|
34.45
|
(2,614,273
|
)
|
26.51
|
|||||
Expired/Forfeited
|
(213,622
|
)
|
59.29
|
(65,873
|
)
|
39.12
|
|||||
Balance
at December 31
|
10,759,798
|
58.17
|
5,801,716
|
39.70
|
|||||||
2008
|
2007
|
2006
|
|||||||
Expected
volatility
|
49.3
|
%
|
37.3
|
%
|
37.7
|
%
|
|||
Expected
life of options (in years)
|
4.6
|
4.25
|
4.0
|
||||||
Expected
dividend rate
|
2.0
|
%
|
2.2
|
%
|
2.9
|
%
|
|||
Risk-free
interest rate
|
3.3
|
%
|
4.6
|
%
|
4.4
|
%
|
2008
|
2007
|
2006
|
|||||||
FCX
shares tendered to pay the exercise price
|
|||||||||
and/or
the minimum required taxesa
|
823,915
|
1,389,845
|
809,926
|
||||||
Cash
received from stock option exercises
|
$
|
56
|
$
|
54
|
$
|
37
|
|||
Actual
tax benefit realized for tax deductions
|
180
|
138
|
31
|
||||||
Amounts
FCX paid for employee taxes
|
34
|
68
|
22
|
||||||
Amounts
FCX paid for exercised SARs
|
1
|
5
|
2
|
||||||
a.
|
Under
terms of the related plans, upon exercise of stock options and vesting of
restricted stock units and restricted stock awards, employees may tender
FCX shares to FCX to pay the exercise price and/or the minimum required
taxes.
|
Weighted-
|
|||||||
Average
|
|||||||
Number
of
|
Remaining
|
Aggregate
|
|||||
Restricted
|
Contractual
|
Intrinsic
|
|||||
Stock
Units
|
Term
(years)
|
Value
|
|||||
Balance
at January 1
|
796,373
|
||||||
Granted
|
1,359,915
|
||||||
Vested
|
(376,460
|
)
|
|||||
Forfeited
|
(3,366
|
)
|
|||||
Balance
at December 31
|
1,776,462
|
1.9
|
$
|
43
|
|||
Balance
at January 1
|
49,241
|
||
Vested
|
(2,884
|
)
|
|
Forfeited
|
(1,036
|
)
|
|
Balance
at December 31
|
45,321
|
||
2008
|
2007
|
2006
|
||||||||
United
States
|
$
|
(13,850
|
)
|
$
|
977
|
$
|
25
|
|||
Foreign
|
541
|
5,134
|
2,795
|
|||||||
Total
|
$
|
(13,309
|
)
|
$
|
6,111
|
$
|
2,820
|
|||
2008
|
2007
|
2006
|
||||||||
Current
income taxes:
|
||||||||||
Federal
|
$
|
536
|
$
|
458
|
$
|
–
|
||||
State
|
14
|
72
|
–
|
|||||||
Foreign
|
1,213
|
1,942
|
1,035
|
|||||||
Total
current
|
1,763
|
2,472
|
1,035
|
|||||||
Deferred
income taxes (benefits):
|
||||||||||
Federal
|
(3,635
|
)
|
(295
|
)
|
–
|
|||||
State
|
(686
|
)
|
(20
|
)
|
–
|
|||||
Foreign
|
(609
|
)
|
243
|
166
|
||||||
Total
deferred
|
(4,930
|
)
|
(72
|
)
|
166
|
|||||
Valuation
allowance on prior year deferred
|
||||||||||
tax
asset
|
323
|
–
|
–
|
|||||||
(Benefit
from) provision for income taxes
|
$
|
(2,844
|
)
|
$
|
2,400
|
$
|
1,201
|
|||
2008
|
2007
|
2006
|
||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
U.S.
federal statutory tax rate
|
$
|
(4,658
|
)
|
35
|
%
|
$
|
2,139
|
35
|
%
|
$
|
987
|
35
|
%
|
|||||
Foreign
withholding tax
|
(55
|
)
|
1
|
371
|
6
|
168
|
6
|
|||||||||||
Foreign
tax credit limitation
|
95
|
(1
|
)
|
125
|
2
|
–
|
–
|
|||||||||||
Reversal
of APB Opinion No. 23
|
||||||||||||||||||
assertion
|
–
|
–
|
111
|
2
|
–
|
–
|
||||||||||||
Percentage
depletion
|
(336
|
)
|
3
|
(284
|
)
|
(5
|
)
|
–
|
–
|
|||||||||
International
tax rate differential
|
59
|
(1
|
)
|
(184
|
)
|
(3
|
)
|
48
|
2
|
|||||||||
Valuation
allowance on minimum
|
||||||||||||||||||
tax
credits
|
359
|
(3
|
)
|
–
|
–
|
–
|
–
|
|||||||||||
Goodwill
impairment
|
2,095
|
(16
|
)
|
–
|
–
|
–
|
–
|
|||||||||||
State
income taxes
|
(437
|
)
|
3
|
–
|
–
|
–
|
–
|
|||||||||||
Other
items, net
|
34
|
–
|
122
|
2
|
(2
|
)
|
–
|
|||||||||||
(Benefit
from) provision for
|
||||||||||||||||||
income
taxes
|
$
|
(2,844
|
)
|
21
|
%
|
$
|
2,400
|
39
|
%
|
$
|
1,201
|
43
|
%
|
|||||
December
31,
|
|||||||
2008
|
2007
|
||||||
Deferred
tax assets:
|
|||||||
Foreign
tax credits
|
$
|
1,260
|
$
|
1,004
|
|||
Net
operating loss carryforwards
|
128
|
164
|
|||||
Minimum
tax credits
|
359
|
323
|
|||||
Accrued
expenses
|
767
|
812
|
|||||
Intercompany
profit elimination
|
25
|
65
|
|||||
Deferred
compensation
|
9
|
45
|
|||||
Postretirement
benefits
|
53
|
35
|
|||||
Employee
benefit plans
|
183
|
–
|
|||||
Provisionally
priced sales adjustments
|
112
|
–
|
|||||
Other
|
128
|
77
|
|||||
Deferred
tax assets
|
3,024
|
2,525
|
|||||
Valuation
allowances
|
(1,763
|
)
|
(1,165
|
)
|
|||
Net
deferred tax assets
|
1,261
|
1,360
|
Deferred
tax liabilities:
|
|||||||
Property,
plant, equipment and development costs
|
(2,956
|
)
|
(7,441
|
)
|
|||
Undistributed
earnings
|
(569
|
)
|
(603
|
)
|
|||
Inventory
|
(38
|
)
|
(458
|
)
|
|||
Employee
benefit plans
|
–
|
(75
|
)
|
||||
Other
|
(34
|
)
|
(142
|
)
|
|||
Total
deferred tax liabilities
|
(3,597
|
)
|
(8,719
|
)
|
|||
Net
deferred tax liabilities
|
$
|
(2,336
|
)
|
$
|
(7,359
|
)
|
|
Unrecognized
|
||||||||||
Tax
Benefits
|
Interest
|
Penalties
|
||||||||
Balance
at January 1, 2007
|
$
|
41
|
$
|
11
|
$
|
–
|
||||
Additions:
|
||||||||||
Acquisition
of Phelps Dodge
|
169
|
7
|
2
|
|||||||
Prior
year tax positions
|
9
|
*
|
*
|
|||||||
Current
year tax positions
|
38
|
*
|
*
|
|||||||
Associated
with interest and penalties
|
–
|
6
|
–
|
|||||||
Decreases:
|
||||||||||
Prior
year tax positions
|
(53
|
)
|
*
|
*
|
||||||
Lapse
of statue of limitations
|
(2
|
)
|
*
|
*
|
||||||
Associated
with interest and penalties
|
–
|
(5
|
)
|
(2
|
)
|
|||||
Balance
at December 31, 2007
|
202
|
19
|
–
|
|||||||
Additions:
|
||||||||||
Prior
year tax positions
|
14
|
*
|
*
|
|||||||
Current
year tax positions
|
32
|
*
|
*
|
|||||||
Associated
with interest and penalties
|
–
|
5
|
–
|
|||||||
Decreases:
|
||||||||||
Prior
year tax positions
|
(3
|
)
|
*
|
*
|
||||||
Lapse
of statue of limitations
|
(7
|
)
|
*
|
*
|
||||||
Associated
with interest and penalties
|
–
|
(1
|
)
|
–
|
||||||
Balance
at December 31, 2008
|
$
|
238
|
$
|
23
|
$
|
–
|
||||
*
|
Amounts
not allocated.
|
Jurisdiction
|
Years Under Examination
|
Additional Open Years
|
U.S.
Federal
|
2003-2005
|
2006-2008
|
Indonesia
|
2005-2006
|
2004,
2007-2008
|
Peru
|
2002-2005
|
2006-2008
|
Chile
|
2007
|
2005-2006,
2008
|
Arizona
|
–
|
2003-2008
|
New
Mexico
|
–
|
2003-2008
|
2008
|
2007
|
||||||
Balance
at beginning of year
|
$
|
1,268
|
$
|
–
|
|||
Liabilities
assumed in the acquisition of Phelps Dodge
|
117
|
1,334
|
|||||
Accretion
expensea
|
95
|
–
|
|||||
Additions
|
36
|
6
|
|||||
Reductions
|
(1
|
)
|
(1
|
)
|
|||
Spending
|
(114
|
)
|
(71
|
)
|
|||
Balance
at end of year
|
1,401
|
1,268
|
|||||
Less
current portion
|
(120
|
)
|
(166
|
)
|
|||
Long-term
portion
|
$
|
1,281
|
$
|
1,102
|
|||
a.
|
Represents
accretion of the fair value of environmental obligations assumed in the
acquisition of Phelps Dodge, which were determined on a discounted cash
flow basis.
|
2008
|
2007
|
2006
|
||||||||
Balance
at beginning of year
|
$
|
728
|
$
|
30
|
$
|
27
|
||||
Liabilities
assumed in the acquisition of Phelps Dodge
|
–
|
531
|
a
|
–
|
||||||
Liabilities
incurred
|
5
|
1
|
–
|
|||||||
Revisions
to cash flow estimates
|
21
|
179
|
–
|
|||||||
Accretion
expense
|
51
|
27
|
3
|
|||||||
Spending
|
(91
|
)
|
(40
|
)
|
–
|
|||||
Foreign
currency translation adjustment
|
(2
|
)
|
–
|
–
|
||||||
Balance
at end of year
|
712
|
728
|
30
|
|||||||
Less
current portion
|
(42
|
)
|
(97
|
)
|
–
|
|||||
Long-term
portion
|
$
|
670
|
$
|
631
|
$
|
30
|
||||
|
a.
|
The
fair value of AROs assumed in the acquisition of Phelps Dodge was
estimated based on projected cash flows, an estimated long-term annual
inflation rate of 2.4 percent, a discount rate based on FCX’s estimated
credit-adjusted, risk-free interest rate of 7.8 percent and a
market risk premium of 10 percent to reflect what a third-party might
require to assume these
AROs.
|
2009
|
$
|
26
|
||
2010
|
22
|
|||
2011
|
17
|
|||
2012
|
8
|
|||
2013
|
4
|
|||
After
2013
|
5
|
|||
Total
payments
|
$
|
82
|
||
2008
|
2007
|
2006
|
||||||||
Commodity
contracts:
|
||||||||||
Embedded
derivatives in provisional sales contractsa
|
$
|
(1,278
|
)
|
$
|
197
|
$
|
293
|
|||
Embedded
derivatives in provisional purchase contractsb
|
34
|
(10
|
) |
–
|
||||||
Copper
forward contractsb
|
(71
|
)
|
(44
|
)
|
47
|
|||||
Copper
futures and swap contractsa
|
(184
|
)
|
(38
|
)
|
–
|
|||||
FMC’s
zero-premium copper collarsa
|
–
|
(175
|
)
|
–
|
||||||
Gold-Denominated
Preferred Stock, Series IIa
|
–
|
–
|
(69
|
)
|
||||||
Silver-Denominated
Preferred Stocka
|
–
|
–
|
(13
|
)
|
||||||
Foreign
currency exchange contractsb
|
–
|
–
|
7
|
|||||||
a.
|
Amounts
recorded in revenues.
|
b.
|
Amounts
recorded in cost of sales as production and delivery
costs.
|
2008
|
2007
|
|||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||
Commodity
contracts:
|
||||||||||||
Embedded
derivatives in provisional sales/
|
||||||||||||
purchases
contracts:a
|
||||||||||||
Asset
position
|
$ |
87
|
$ |
87
|
$
|
34
|
$
|
34
|
||||
Liability
position
|
(485
|
)
|
(485
|
)
|
(157
|
)
|
(157
|
)
|
||||
Copper
forward contracts:
|
||||||||||||
Liability
positionb
|
(4
|
)
|
(4
|
)
|
(4
|
)
|
(4
|
)
|
||||
Copper
futures and swap contracts:
|
||||||||||||
Asset
positionc
|
2
|
2
|
–
|
–
|
||||||||
Liability
positionb,
d
|
(89
|
)
|
(89
|
)
|
(9
|
)
|
(9
|
)
|
||||
Long-term
debt (including amounts due within
|
||||||||||||
one
year)
|
(7,351
|
)
|
(5,889
|
)
|
(7,211
|
)
|
(7,595
|
)
|
||||
a.
|
Amounts
recorded either as a net accounts receivable or a net accounts payable
except for Atlantic Copper's copper purchases, which are recorded to
product inventories ($56 million for 2008 and $18 million for
2007).
|
b.
|
Amounts
recorded in accounts payable and accrued
liabilities.
|
c.
|
Amounts
recorded in accounts receivable.
|
d.
|
At
December 31, 2008, FCX had paid $92 million to brokers for margin
requirements, which is recorded in other current
assets.
|
Phelps
Dodge common stock outstanding and issuable at
|
|||
March
19, 2007 (in millions)
|
204.3
|
||
Exchange
offer ratio per share of FCX common stock for each
|
|||
Phelps
Dodge common share
|
0.67
|
||
Shares
of FCX common stock issued (in millions)
|
136.9
|
||
Cash
consideration of $88.00 for each Phelps Dodge common share
|
$
|
17,979
|
a
|
Fair
value of FCX common stock issued
|
7,781
|
b
|
|
Transaction
and change of control costs and related employee benefits
|
137
|
||
Release
of FCX deferred tax asset valuation allowances
|
(92
|
)c
|
|
Total
purchase price
|
$
|
25,805
|
|
a.
|
Cash
consideration includes cash paid in lieu of any fractional shares of FCX
stock.
|
b.
|
Measurement
of the common stock component of the purchase price was based on a
weighted-average closing price of FCX’s common stock of $56.85 for the two
days prior to through two days after the public announcement of the merger
on November 19, 2006.
|
c.
|
FCX
determined that, as a result of the acquisition of Phelps Dodge, it would
be able to realize certain U.S. tax credits for which it had previously
not recognized any benefit. Recognition of these tax credits resulted in a
$92 million reduction to the purchase
price.
|
Phelps
|
|||||||||
Dodge
|
Purchase
|
||||||||
Historical
|
Fair
Value
|
Price
|
|||||||
Balances
|
Adjustments
|
Allocation
|
|||||||
Cash
and cash equivalents
|
$
|
4.2
|
$
|
–
|
$
|
4.2
|
|||
Inventories,
including mill and leach stockpiles
|
0.9
|
2.8
|
3.7
|
||||||
Property,
plant and equipmenta
|
6.0
|
16.2
|
22.2
|
||||||
Other
assets
|
3.1
|
0.2
|
3.3
|
||||||
Allocation
to goodwillb
|
–
|
6.2
|
6.2
|
c
|
|||||
Total
assets
|
14.2
|
25.4
|
39.6
|
||||||
Deferred
income taxes (current and long-term)d
|
(0.7
|
)
|
(6.3
|
)
|
(7.0
|
)
|
|||
Other
liabilities
|
(4.1
|
)
|
(1.5
|
)
|
(5.6
|
)
|
|||
Minority
interests
|
(1.2
|
)
|
–
|
(1.2
|
)
|
||||
Total
|
$
|
8.2
|
$
|
17.6
|
$
|
25.8
|
|||
a.
|
Includes
amounts for proven and probable reserves and values of VBPP (see Note
1).
|
b.
|
None
of the $6.2 billion of goodwill was deductible for tax
purposes.
|
c.
|
Includes
$160 million of goodwill associated with PDIC, which was sold in the
fourth quarter of 2007 (see Note
4).
|
d.
|
Deferred
income taxes were recognized based on the difference between the tax basis
and the estimated fair values assigned to net
assets.
|
Historical
|
||||||||||||
Phelps
|
Pro
Forma
|
Pro
Forma
|
||||||||||
FCX
|
Dodgea
|
Adjustments
|
Consolidated
|
|||||||||
Year Ended December 31,
2007
|
||||||||||||
Revenues
|
$
|
16,939
|
$
|
2,294
|
$
|
–
|
$
|
19,233
|
b
|
|||
Operating
income
|
6,555
|
793
|
(178
|
)
|
7,170
|
b,c
|
||||||
a.
|
Represents
the results of Phelps Dodge’s operations from January 1, 2007, through
March 19, 2007. Beginning March 20, 2007, the results of Phelps Dodge’s
operations are included in FCX’s consolidated financial
information.
|
b.
|
Includes
charges to revenues for mark-to-market accounting adjustments on copper
price protection programs totaling $195 million. Also includes credits for
amortization of acquired intangible liabilities totaling $120
million.
|
c.
|
Includes
charges associated with the impacts of the increases in the carrying
values of acquired metal inventories (including mill and leach stockpiles)
and property, plant and equipment, and also includes the amortization of
intangible assets and liabilities resulting from the acquisition totaling
$1.7 billion.
|
2008
|
2007
|
2006
|
|||||||
Refined
copper products
|
$
|
9,575
|
$
|
8,918
|
$
|
1,865
|
|||
Copper
in concentratesa
|
3,954
|
4,541
|
2,721
|
||||||
Molybdenum
|
2,408
|
1,703
|
–
|
||||||
Gold
|
1,286
|
1,664
|
1,155
|
||||||
Otherb
|
573
|
113
|
50
|
||||||
Total
|
$
|
17,796
|
$
|
16,939
|
$
|
5,791
|
|||
a.
|
Amounts
are net of treatment and refining charges totaling $398 million for 2008,
$502 million for 2007 and $388 million for
2006.
|
b.
|
Amounts
are net of royalty charges totaling $113 million in 2008, $133 million in
2007 and $126 million in 2006. Also includes $273 million in 2008, $(36)
million in 2007 and $139 million in 2006 for adjustments to prior year
sales and pre-acquisition sales in 2007 subject to final
pricing.
|
2008
|
2007
|
2006
|
|||||||
Revenuesa:
|
|||||||||
United
States
|
$
|
7,609
|
$
|
6,480
|
$
|
76
|
|||
Japan
|
2,662
|
2,479
|
1,242
|
||||||
Spain
|
1,872
|
1,773
|
1,380
|
||||||
Indonesia
|
1,420
|
2,105
|
1,202
|
||||||
Chile
|
669
|
627
|
–
|
||||||
United
Kingdom
|
404
|
661
|
126
|
||||||
Others
|
3,160
|
2,814
|
1,765
|
||||||
Total
|
$
|
17,796
|
$
|
16,939
|
$
|
5,791
|
|||
2008
|
2007
|
2006
|
|||||||
Long-lived
assetsb:
|
|||||||||
United
States
|
$
|
6,529
|
$
|
16,954
|
$
|
41
|
|||
Indonesia
|
3,361
|
3,126
|
2,933
|
||||||
Peru
|
3,278
|
3,242
|
–
|
||||||
Democratic
Republic of Congo
|
2,696
|
1,506
|
–
|
||||||
Chile
|
1,551
|
2,882
|
–
|
||||||
Spain
|
283
|
274
|
265
|
||||||
Others
|
59
|
84
|
–
|
||||||
Total
|
$
|
17,757
|
$
|
28,068
|
$
|
3,239
|
|||
a.
|
Revenues
are attributed to countries based on the location of the
customer.
|
b.
|
Long-lived
assets exclude deferred tax assets, goodwill and intangible
assets.
|
North
America Copper Mines
|
South
America Copper Mines
|
Indonesia
|
Africa
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic
|
Corporate,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper
|
Other
&
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
Cerro
|
Other
|
Molyb-
|
Rod
&
|
Smelting
|
Elimi-
|
FCX
|
||||||||||||||||||||||||||||||||||||||||||||||||
Year
Ended December 31, 2008
|
Morenci
|
Sierrita
|
Mines
|
Total
|
Verde
|
Mines
|
Total
|
Grasberg
|
Tenke
|
denum
|
Refining
|
&
Refining
|
nations
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated
customersb
|
$
|
370
|
$
|
90
|
$
|
256
|
$
|
716
|
$
|
1,602
|
$
|
2,166
|
$
|
3,768
|
$
|
2,934
|
a
|
$
|
–
|
$
|
2,488
|
$
|
5,524
|
$
|
2,333
|
$
|
33
|
$
|
17,796
|
||||||||||||||||||||||||||
Intersegment
|
1,630
|
1,103
|
1,816
|
4,549
|
261
|
137
|
398
|
478
|
–
|
–
|
33
|
8
|
(5,466
|
)
|
–
|
||||||||||||||||||||||||||||||||||||||||
Production
and deliveryb
|
1,313
|
487
|
1,247
|
3,047
|
698
|
1,146
|
1,844
|
1,792
|
6
|
1,528
|
5,527
|
2,276
|
(5,604
|
)
|
10,416
|
||||||||||||||||||||||||||||||||||||||||
Depreciation,
depletion
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
amortizationb
|
330
|
88
|
352
|
770
|
178
|
333
|
511
|
222
|
6
|
192
|
8
|
35
|
38
|
1,782
|
|||||||||||||||||||||||||||||||||||||||||
LCM
inventory adjustments
|
302
|
–
|
359
|
661
|
–
|
10
|
10
|
–
|
10
|
101
|
–
|
–
|
–
|
782
|
|||||||||||||||||||||||||||||||||||||||||
Selling,
general and
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
administrative
expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
91
|
–
|
18
|
–
|
20
|
140
|
269
|
|||||||||||||||||||||||||||||||||||||||||
Exploration
and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
2
|
–
|
–
|
290
|
292
|
|||||||||||||||||||||||||||||||||||||||||
Goodwill
impairment
|
1,851
|
991
|
1,308
|
4,150
|
763
|
366
|
1,129
|
–
|
2
|
703
|
–
|
–
|
3
|
5,987
|
|||||||||||||||||||||||||||||||||||||||||
Long-lived
asset impairments and
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
other
chargesc
|
2,702
|
1,908
|
3,549
|
8,159
|
1
|
1,365
|
1,366
|
–
|
2
|
1,417
|
20
|
–
|
14
|
10,978
|
|||||||||||||||||||||||||||||||||||||||||
Operating
(loss) incomeb
|
(4,498
|
)
|
(2,281
|
)
|
(4,743
|
)
|
(11,522
|
)
|
223
|
(917
|
)
|
(694
|
)
|
1,307
|
(26
|
)
|
(1,473
|
)
|
2
|
10
|
(314
|
)
|
(12,710
|
)
|
|||||||||||||||||||||||||||||||
Interest
expense, net
|
2
|
1
|
10
|
13
|
2
|
2
|
4
|
(1
|
)
|
69
|
–
|
4
|
13
|
482
|
584
|
||||||||||||||||||||||||||||||||||||||||
(Benefit
from) provision for income
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
taxes
|
–
|
–
|
–
|
–
|
313
|
(267
|
)
|
46
|
612
|
(66
|
)
|
–
|
–
|
–
|
(3,436
|
)
|
(2,844
|
)
|
|||||||||||||||||||||||||||||||||||||
Total
assets at December 31, 2008
|
2,148
|
495
|
3,555
|
6,198
|
3,994
|
2,406
|
6,400
|
4,420
|
2,685
|
1,795
|
266
|
852
|
737
|
23,353
|
|||||||||||||||||||||||||||||||||||||||||
Capital
expenditures
|
276
|
51
|
282
|
609
|
129
|
194
|
323
|
444
|
1,058
|
180
|
9
|
34
|
51
|
2,708
|
|||||||||||||||||||||||||||||||||||||||||
a.
Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.4
billion.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
b.
The following table summarizes the impact of purchase accounting fair
value adjustments on operating (loss) income primarily associated with the
impacts of the increases in the carrying values of acquired metals
inventories (including mill and leach stockpiles) and property, plant and
equipment:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
5
|
$
|
1
|
$
|
6
|
N/A
|
$
|
–
|
$
|
(2
|
)
|
$
|
–
|
N/A
|
$
|
–
|
$
|
4
|
||||||||||||||||||||||||||||
Production
and delivery
|
37
|
11
|
(24
|
)
|
24
|
9
|
37
|
46
|
N/A
|
–
|
32
|
–
|
N/A
|
23
|
125
|
||||||||||||||||||||||||||||||||||||||||
Depreciation,
depletion
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
amortization
|
209
|
62
|
199
|
470
|
87
|
203
|
290
|
N/A
|
–
|
139
|
–
|
N/A
|
(11
|
)
|
888
|
||||||||||||||||||||||||||||||||||||||||
Impact
on operating (loss) income
|
$
|
(246
|
)
|
$
|
(73
|
)
|
$
|
(175
|
)
|
$
|
(494
|
)
|
$
|
(91
|
)
|
$
|
(239
|
)
|
$
|
(330
|
)
|
N/A
|
$
|
–
|
$
|
(173
|
)
|
$
|
–
|
N/A
|
$
|
(12
|
)
|
$
|
(1,009
|
)
|
|||||||||||||||||||
c.
The following table summarizes long-lived asset impairments and other
charges:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived
asset impairments
|
$
|
2,683
|
$
|
1,900
|
$
|
3,511
|
$
|
8,094
|
$
|
–
|
$
|
1,359
|
$
|
1,359
|
$
|
–
|
$
|
–
|
$
|
1,408
|
$
|
6
|
$
|
–
|
$
|
–
|
$
|
10,867
|
|||||||||||||||||||||||||||
Restructuring
charges
|
3
|
2
|
18
|
23
|
1
|
6
|
7
|
–
|
2
|
4
|
4
|
–
|
10
|
50
|
|||||||||||||||||||||||||||||||||||||||||
Special
retirement benefits
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
curtailments
|
16
|
6
|
20
|
42
|
–
|
–
|
–
|
–
|
–
|
5
|
10
|
–
|
4
|
61
|
|||||||||||||||||||||||||||||||||||||||||
Long-lived
asset impairments
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
other charges
|
$
|
2,702
|
$
|
1,908
|
$
|
3,549
|
$
|
8,159
|
$
|
1
|
$
|
1,365
|
$
|
1,366
|
$
|
–
|
$
|
2
|
$
|
1,417
|
$
|
20
|
$
|
–
|
$
|
14
|
$
|
10,978
|
|||||||||||||||||||||||||||
North
America Copper Mines
|
South
America Copper Mines
|
Indonesia
|
Africa
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic
|
Corporate,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper
|
Other
&
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
Cerro
|
Other
|
Molyb-
|
Rod
&
|
Smelting
|
Elimi-
|
FCX
|
||||||||||||||||||||||||||||||||||||||||||||||||
Year
Ended December 31, 2007
|
Morenci
|
Sierrita
|
Mines
|
Total
|
Verde
|
Mines
|
Total
|
Grasberg
|
Tenke
|
denum
|
Refining
|
&
Refining
|
nations
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated
customersb
|
$
|
286
|
$
|
53
|
$
|
203
|
$
|
542
|
$
|
1,243
|
$
|
2,228
|
$
|
3,471
|
$
|
3,640
|
a
|
$
|
–
|
$
|
1,746
|
$
|
5,108
|
$
|
2,388
|
$
|
44
|
$
|
16,939
|
||||||||||||||||||||||||||
Intersegment
|
1,516
|
780
|
1,255
|
3,551
|
390
|
18
|
408
|
1,168
|
–
|
–
|
32
|
–
|
(5,159
|
)
|
–
|
||||||||||||||||||||||||||||||||||||||||
Production
and deliveryb
|
1,014
|
352
|
800
|
2,166
|
479
|
798
|
1,277
|
1,388
|
10
|
1,287
|
5,119
|
2,329
|
(5,049
|
)
|
8,527
|
||||||||||||||||||||||||||||||||||||||||
Depreciation,
depletion
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
amortizationb
|
240
|
54
|
205
|
499
|
129
|
249
|
378
|
199
|
2
|
94
|
7
|
36
|
31
|
1,246
|
|||||||||||||||||||||||||||||||||||||||||
Selling,
general and
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
administrative
expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
188
|
–
|
10
|
–
|
20
|
248
|
466
|
|||||||||||||||||||||||||||||||||||||||||
Exploration
and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
2
|
–
|
–
|
143
|
145
|
|||||||||||||||||||||||||||||||||||||||||
Operating
income (loss)b
|
548
|
427
|
453
|
1,428
|
1,025
|
1,199
|
2,224
|
3,033
|
(12
|
)
|
353
|
14
|
3
|
(488
|
)
|
6,555
|
|||||||||||||||||||||||||||||||||||||||
Interest
expense, net
|
–
|
–
|
–
|
–
|
9
|
(2
|
)
|
7
|
12
|
(41
|
)
|
–
|
4
|
26
|
505
|
513
|
|||||||||||||||||||||||||||||||||||||||
Provision
for income taxes
|
–
|
–
|
–
|
–
|
484
|
369
|
853
|
1,326
|
4
|
–
|
–
|
–
|
217
|
2,400
|
|||||||||||||||||||||||||||||||||||||||||
Total
assets at December 31, 2007
|
5,043
|
2,419
|
7,209
|
14,671
|
4,236
|
4,183
|
8,419
|
3,737
|
1,477
|
3,522
|
438
|
915
|
7,482
|
c
|
40,661
|
||||||||||||||||||||||||||||||||||||||||
Capital
expenditures
|
269
|
28
|
559
|
856
|
58
|
65
|
123
|
368
|
266
|
45
|
8
|
42
|
47
|
1,755
|
|||||||||||||||||||||||||||||||||||||||||
a. Includes
PT Freeport Indonesia’s sales to PT Smelting totaling $1.8
billion.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
b.The
following table summarizes the impact of purchase accounting fair value
adjustments on operating income (loss) primarily associated with the
impacts of the increases in the carrying values of acquired metals
inventories (including mill and leach stockpiles) and property, plant and
equipment:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
8
|
$
|
1
|
$
|
9
|
N/A
|
$
|
–
|
$
|
111
|
$
|
–
|
N/A
|
$
|
–
|
$
|
120
|
|||||||||||||||||||||||||||||
Production
and delivery
|
218
|
50
|
76
|
344
|
73
|
96
|
169
|
N/A
|
–
|
164
|
–
|
N/A
|
104
|
781
|
|||||||||||||||||||||||||||||||||||||||||
Depreciation,
depletion
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
amortization
|
167
|
37
|
130
|
334
|
64
|
145
|
209
|
N/A
|
–
|
52
|
–
|
N/A
|
–
|
595
|
|||||||||||||||||||||||||||||||||||||||||
Impact
on operating income (loss)
|
$
|
(385
|
)
|
$
|
(87
|
)
|
$
|
(206
|
)
|
$
|
(678
|
)
|
$
|
(129
|
)
|
$
|
(240
|
)
|
$
|
(369
|
)
|
N/A
|
$
|
–
|
$
|
(105
|
)
|
$
|
–
|
N/A
|
$
|
(104
|
)
|
$
|
(1,256
|
)
|
|||||||||||||||||||
c.
Includes preliminary goodwill of $6.1 billion, which had not been
allocated to reporting units.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
North
America Copper Mines
|
South
America Copper Mines
|
Indonesia
|
Africa
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic
|
Corporate,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper
|
Other
&
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
Cerro
|
Other
|
Molyb-
|
Rod
&
|
Smelting
|
Elimi-
|
FCX
|
||||||||||||||||||||||||||||||||||||||||||||||||
Year
Ended December 31, 2006
|
Morenci
|
Sierrita
|
Mines
|
Total
|
Verde
|
Mines
|
Total
|
Grasberg
|
Tenke
|
denum
|
Refining
|
&
Refining
|
nations
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
Revenues:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated
customers
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
3,543
|
a
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
2,242
|
$
|
6
|
$
|
5,791
|
||||||||||||||||||||||||||
Intersegment
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
852
|
–
|
–
|
–
|
–
|
(852
|
)
|
–
|
||||||||||||||||||||||||||||||||||||||||
Production
and delivery
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
1,279
|
–
|
–
|
–
|
2,119
|
(873
|
)
|
2,525
|
||||||||||||||||||||||||||||||||||||||||
Depreciation,
depletion
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
and
amortization\
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
184
|
–
|
–
|
–
|
33
|
11
|
228
|
|||||||||||||||||||||||||||||||||||||||||
Selling,
general and
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
administrative
expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
211
|
–
|
–
|
–
|
16
|
(70
|
)
|
157
|
||||||||||||||||||||||||||||||||||||||||
Exploration
and research expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
12
|
12
|
|||||||||||||||||||||||||||||||||||||||||
Operating
income
|
–
|
–
|
–
|
–
|
–
|
–
|
2,721
|
–
|
–
|
–
|
74
|
74
|
2,869
|
||||||||||||||||||||||||||||||||||||||||||
–
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest
expense, net
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
20
|
–
|
–
|
–
|
25
|
31
|
76
|
|||||||||||||||||||||||||||||||||||||||||
Provision
for income taxes
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
950
|
–
|
–
|
–
|
–
|
251
|
1,201
|
|||||||||||||||||||||||||||||||||||||||||
Total
assets at December 31, 2006
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
4,112
|
–
|
–
|
–
|
915
|
363
|
5,390
|
|||||||||||||||||||||||||||||||||||||||||
Capital
expenditures
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
234
|
–
|
–
|
–
|
17
|
–
|
251
|
|||||||||||||||||||||||||||||||||||||||||
a.
Includes PT Freeport Indonesia’s sales to PT Smelting totaling $1.2
billion.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoverable
Proven and Probable Reservesa
|
||||||
at
December 31, 2008
|
||||||
Copper
|
Gold
|
Molybdenum
|
||||
(billion
pounds)
|
(million
ounces)
|
(billion
pounds)
|
||||
North
America
|
28.3
|
0.2
|
2.08
|
|||
South
America
|
32.2
|
1.3
|
0.40
|
|||
Indonesia
|
35.6
|
38.5
|
–
|
|||
Africa
|
5.9
|
–
|
–
|
|||
Consolidated
basisb
|
102.0
|
40.0
|
2.48
|
|||
Net
equity interestc
|
82.4
|
36.2
|
2.30
|
|||
a.
|
Proven
and probable recoverable reserves are
estimated metal quantities from which FCX expects to be paid after
application of estimated metallurgical recovery rates and smelter recovery
rates, where applicable. Recoverable reserves are that part of a mineral
deposit that FCX estimates can be economically and legally extracted or
produced at the time of the reserve
determination.
|
b.
|
Consolidated
basis reserves represent estimated metal quantities after reduction for
joint venture partner interests at the Morenci mine in North America and
the Grasberg minerals district in
Indonesia.
|
c.
|
Net
equity interest reserves represent estimated consolidated basis metal
quantities further reduced for minority interest
ownership.
|
100%
Basis
|
|||||||||||||||
Average
Ore Grade
|
Recoverable
Proven and
|
||||||||||||||
Per
Metric Ton
|
Probable
Reserves
|
||||||||||||||
Ore
|
Copper
|
Gold
|
Moly
|
||||||||||||
(million
|
Copper
|
Gold
|
Moly
|
(billion
|
(million
|
(million
|
|||||||||
Year-End
|
metric
tons)
|
(%)
|
(grams)
|
(%)
|
pounds)
|
ounces)
|
pounds)
|
||||||||
2004
|
2,769
|
1.09
|
0.97
|
N/A
|
56.2
|
61.0
|
N/A
|
||||||||
2005
|
2,822
|
1.07
|
0.92
|
N/A
|
56.6
|
58.0
|
N/A
|
||||||||
2006
|
2,813
|
1.04
|
0.90
|
N/A
|
54.8
|
54.3
|
N/A
|
||||||||
2007
|
12,224
|
0.51
|
0.20
|
0.01
|
110.4
|
54.1
|
2,042
|
||||||||
2008
|
14,067
|
0.48
|
0.17
|
0.01
|
118.8
|
53.4
|
2,485
|
||||||||
By Area at December 31,
2008:
|
|||||||||||||||
North
America
|
|||||||||||||||
Developed
and producing:
|
|||||||||||||||
Morenci
|
2,813
|
0.28
|
–
|
0.002
|
10.1
|
–
|
27
|
||||||||
Sierrita
|
1,473
|
0.26
|
–
|
a
|
0.029
|
7.1
|
0.1
|
769
|
|||||||
Bagdad
|
1,051
|
0.30
|
–
|
a
|
0.015
|
5.3
|
0.1
|
252
|
|||||||
Safford
|
450
|
0.38
|
–
|
–
|
2.6
|
–
|
–
|
||||||||
Tyrone
|
334
|
0.29
|
–
|
–
|
1.4
|
–
|
–
|
||||||||
Henderson
|
149
|
–
|
–
|
0.176
|
–
|
–
|
502
|
||||||||
Chinob
|
143
|
0.52
|
0.01
|
0.005
|
2.3
|
–
|
a
|
6
|
|||||||
Miamib
|
91
|
0.43
|
–
|
–
|
0.6
|
–
|
–
|
||||||||
Undeveloped:
|
|||||||||||||||
Climax
|
165
|
–
|
–
|
0.165
|
–
|
–
|
532
|
||||||||
Cobre
|
73
|
0.39
|
–
|
–
|
0.4
|
–
|
–
|
||||||||
South
America
|
|||||||||||||||
Developed
and producing:
|
|||||||||||||||
Cerro
Verde
|
3,023
|
0.37
|
–
|
0.012
|
21.6
|
–
|
397
|
||||||||
El
Abra
|
1,120
|
0.45
|
–
|
–
|
5.5
|
–
|
–
|
||||||||
Candelaria
|
391
|
0.55
|
0.11
|
–
|
4.9
|
1.3
|
–
|
||||||||
Ojos
del Salado
|
8
|
1.12
|
0.27
|
–
|
0.2
|
–
|
a
|
–
|
|||||||
Indonesia
|
|||||||||||||||
Developed
and producing:
|
|||||||||||||||
Grasberg
open pit
|
384
|
0.97
|
1.17
|
–
|
7.1
|
12.0
|
–
|
||||||||
Deep
Ore Zonec
|
282
|
0.62
|
0.67
|
–
|
3.3
|
4.6
|
–
|
||||||||
Undeveloped:
|
|||||||||||||||
Grasberg
block cave
|
1,007
|
1.02
|
0.81
|
–
|
19.4
|
17.7
|
–
|
||||||||
Kucing
Liar
|
441
|
1.24
|
1.09
|
–
|
10.3
|
7.1
|
–
|
||||||||
Deep
Mill Level Zoned
|
494
|
0.89
|
0.75
|
–
|
8.3
|
9.1
|
–
|
||||||||
Big
Gossan
|
56
|
2.23
|
1.18
|
–
|
2.5
|
1.4
|
–
|
||||||||
Africa
|
|||||||||||||||
Undeveloped:
|
|||||||||||||||
Tenke
Fungurumee
|
119
|
2.64
|
–
|
–
|
5.9
|
–
|
–
|
||||||||
Total
100% basis
|
14,067
|
118.8
|
53.4
|
2,485
|
|||||||||||
Consolidated
basis
|
102.0
|
40.0
|
2,482
|
||||||||||||
FCX’s
equity share
|
82.4
|
36.2
|
2,297
|
a.
|
Amounts
not shown because of rounding.
|
b.
|
Mining
operations suspended as of December 31,
2008.
|
c.
|
In
2007, FCX combined the Deep Ore Zone and Ertsberg Stockwork Zone reserves,
which FCX now refers to as the Deep Ore
Zone.
|
d.
|
In
2007, FCX combined the Mill Level Zone and Deep Mill Level Zone reserves,
which FCX now refers to as the Deep Mill Level
Zone.
|
e.
|
Recoverable
proven and probable reserves also include 0.7 billion pounds of
recoverable cobalt on a 100 percent basis (0.4 billion pounds on an equity
share basis) with an average ore grade of 0.35
percent.
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Year
|
|||||||||||
2008
|
|||||||||||||||
Revenues
|
$
|
5,672
|
$
|
5,441
|
$
|
4,616
|
$
|
2,067
|
$
|
17,796
|
|||||
Operating
income (loss)a
|
2,396
|
2,053
|
1,133
|
(18,292
|
)
|
(12,710
|
)
|
||||||||
Net
income (loss) applicable to
|
|||||||||||||||
common
stocka
|
1,122
|
947
|
523
|
(13,933
|
)
|
(11,341
|
)
|
||||||||
Basic
net income (loss) per share
|
|||||||||||||||
of
common stock
|
2.93
|
2.47
|
1.37
|
(36.78
|
)
|
(29.72
|
)
|
||||||||
Diluted
net income (loss) per share
|
|||||||||||||||
of
common stocka
|
2.64
|
2.25
|
1.31
|
(36.78
|
)
|
(29.72
|
)
|
||||||||
2007
|
|||||||||||||||
Revenuesb
|
$
|
2,246
|
$
|
5,443
|
$
|
5,066
|
$
|
4,184
|
$
|
16,939
|
|||||
Operating
incomeb,
c
|
1,172
|
2,354
|
1,877
|
1,152
|
6,555
|
||||||||||
Income
from continuing operations
|
|||||||||||||||
applicable
to common stockb, c,
d
|
472
|
1,076
|
763
|
423
|
2,734
|
||||||||||
Income
(loss) from discontinued
|
|||||||||||||||
operationsc
|
4
|
28
|
12
|
(9
|
)
|
35
|
|||||||||
Net
income applicable to common
|
|||||||||||||||
stockb, c,
d
|
476
|
1,104
|
775
|
414
|
2,769
|
||||||||||
Basic
net income (loss) per share
|
|||||||||||||||
of
common stock:
|
|||||||||||||||
Continuing
operations
|
$
|
2.18
|
$
|
2.83
|
$
|
2.00
|
$
|
1.10
|
$
|
8.02
|
|||||
Discontinued
operations
|
0.02
|
0.07
|
0.03
|
(0.02
|
)
|
0.10
|
|||||||||
Basic
net income per share of
|
|||||||||||||||
common
stock
|
$
|
2.20
|
$
|
2.90
|
$
|
2.03
|
$
|
1.08
|
$
|
8.12
|
|||||
Diluted
net income (loss) per share
|
|||||||||||||||
of
common stock:
|
|||||||||||||||
Continuing
operationsb, c,
d
|
$
|
2.00
|
$
|
2.56
|
$
|
1.85
|
$
|
1.07
|
$
|
7.41
|
|||||
Discontinued
operationsc
|
0.02
|
0.06
|
0.02
|
(0.02
|
)
|
0.09
|
|||||||||
Diluted
net income per share of
|
|||||||||||||||
common
stockb, c,
d
|
$
|
2.02
|
$
|
2.62
|
$
|
1.87
|
$
|
1.05
|
$
|
7.50
|
|||||
a.
|
Includes
LCM inventory adjustments totaling $1 million ($1 million to net income or
less than $0.01 per share) in the first quarter, $4 million ($2 million to
net income or $0.01 per share) in the second quarter, $17 million ($10
million to net income or $0.02 per share) in the third quarter, $760
million ($466 million to net loss or $1.23 per share) in the fourth
quarter and $782 million ($479 million to net loss or $1.26 per share) for
the year. Fourth quarter also includes asset impairments totaling $10.9
billion ($6.6 billion to net loss or $17.34 per share), goodwill
impairments totaling $6.0 billion ($6.0 billion to net loss or $15.69 per
share), restructuring charges totaling $50 million ($30 million to net
loss or $0.08 per share) and special retirement benefits and curtailments
totaling $61 million ($37 million to net loss or $0.10 per share).
Includes the purchase accounting impact of the increases in the carrying
values of acquired metals inventories (including mill and leach
stockpiles) and property, plant and equipment; the impact associated
with the amortization of intangible assets and liabilities resulting from
the acquisition of Phelps Dodge; and also includes amounts for
non-operating income and expense primarily related to the accretion of the
fair values of assumed environmental obligations (determined on a
discounted cash flow basis). These impacts total $278 million to operating
income and $15 million to non-operating income and expense ($183
million to net income or $0.41 per share) in the first quarter, $236
million to operating income and $22 million to non-operating income and
expense ($161 million to net income or $0.36 per share) in the second
quarter, $247 million to operating income and $30 million to non-operating
income and expense ($174 million to net income or $0.39 per share) in the
third quarter, $248 million to operating loss and $26 million to
non-operating income and expense ($161 million to net loss or $0.43
per share) in the fourth quarter and $1.0 billion to operating loss and
$93 million to non-operating income and expense ($679 million to net loss
or $1.78 per share) for the year.
|
b.
|
Includes
charges (credits) to revenues for mark-to-market accounting adjustments
for the 2007 copper price protection program totaling $38 million ($23
million to net income or $0.10 per share) in the first quarter,
$130 million ($80 million to net income or $0.18 per share) in
the second quarter, $44 million ($26 million to net income or $0.06
per share) in the third quarter, $(37) million ($(23) million to
net income or $0.06 per share) in the fourth quarter and $175
million ($106 million to net income or $0.27 per share) for the
year.
|
c.
|
Includes
the purchase accounting impact of the increases in the carrying values of
acquired metals inventories (including mill and leach stockpiles) and
property, plant and equipment; and also includes the impact associated
with the amortization of intangible assets and liabilities resulting from
the acquisition of Phelps Dodge totaling $124 million ($79
million to net income or $0.32 per share) in the first quarter, $455
million ($284 million or $0.64 per share) in the second quarter, $445
million ($279 million to net income or $0.62 per share) in the third
quarter, $232 million ($143 million to net income or $0.35 per share) in
the fourth quarter and $1.3 billion to operating income ($785 million to
net income or $1.98 per share) for the year associated with continuing
operations. Also includes purchase accounting impact totaling $8 million
($0.02 per share) in the third quarter associated with discontinued
operations.
|
d.
|
Includes
net losses on early extinguishment of debt totaling $88 million ($75
million to net income or $0.31 per share) in the first quarter, $47
million ($35 million to net income or $0.08 per share) in the second
quarter, $36 million ($31 million to net income or $0.07 per share)
in the third quarter and $173 million ($132 million to net income or
$0.33 per share) for the year. Also includes gains primarily from the
sales of marketable securities totaling $38 million ($23 million to net
income or $0.05 per share) in the second quarter, $47 million ($29 million
to net income or $0.06 per share) in the third quarter and $85 million
($52 million to net income or $0.13 per share) for the
year.
|
*
|
Chairman
of the Board
|
James
R. Moffett
|
|
*
|
Vice
Chairman of the Board
|
B.
M. Rankin, Jr.
|
|
/s/
Richard C. Adkerson
|
President,
Chief Executive Officer and Director
|
Richard
C. Adkerson
|
(Principal
Executive Officer)
|
/s/
Kathleen L. Quirk
|
Executive
Vice President, Chief Financial Officer and Treasurer
|
Kathleen
L. Quirk
|
(Principal
Financial Officer)
|
*
|
Vice
President and Controller - Financial Reporting
|
C.
Donald Whitmire, Jr.
|
(Principal
Accounting Officer)
|
*
|
Director
|
Robert
J. Allison, Jr.
|
|
*
|
Director
|
Robert
A. Day
|
|
*
|
Director
|
Gerald
J. Ford
|
|
*
|
Director
|
H.
Devon Graham, Jr.
|
|
*
|
Director
|
J.
Bennett Johnston
|
|
*
|
Director
|
Charles
C. Krulak
|
|
*
|
Director
|
Bobby
Lee Lackey
|
|
*
|
Director
|
Jon
C. Madonna
|
|
*
|
Director
|
Dustan
E. McCoy
|
|
*
|
Director
|
Gabrielle
K. McDonald
|
|
*
|
Director
|
J.
Stapleton Roy
|
|
*
|
Director
|
Stephen
H. Siegele
|
|
*
|
Director
|
J.
Taylor Wharton
|
|
By:
/s/ Richard C.
Adkerson
|
|
Richard
C. Adkerson
|
|
Attorney-in-Fact
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-1
|
Schedule
II-Valuation and Qualifying Accounts
|
F-2
|
Col.
A
|
Col.
B
|
Col.
C
|
Col.
D
|
Col.
E
|
||||||||||||
Additions
|
||||||||||||||||
Balance
at
|
Charged
to
|
Charged
to
|
Other
|
Balance
at
|
||||||||||||
Beginning
of
|
Costs
and
|
Other
|
Add
|
End
of
|
||||||||||||
Period
|
Expense
|
Accounts
|
(Deduct)
|
Period
|
||||||||||||
Reserves
and allowances deducted
|
||||||||||||||||
from
asset accounts:
|
||||||||||||||||
Materials
and supplies allowances
|
||||||||||||||||
2008
|
16
|
11
|
-
|
(5
|
)a
|
22
|
||||||||||
2007
|
16
|
7
|
-
|
(7
|
)a
|
16
|
||||||||||
2006
|
17
|
6
|
-
|
(7
|
)a
|
16
|
||||||||||
Valuation
allowance for
|
||||||||||||||||
deferred
tax assets
|
||||||||||||||||
2008
|
1,165
|
582
|
16
|
-
|
1,763
|
|||||||||||
2007
|
925
|
332
|
-
|
(92
|
)b
|
1,165
|
||||||||||
2006
|
802
|
123
|
-
|
-
|
925
|
|||||||||||
Reserves
for non-income taxes:
|
||||||||||||||||
2008
|
34
|
7
|
(3
|
)
|
(6
|
)c
|
32
|
|||||||||
2007
|
22
|
4
|
11
|
(3
|
)c
|
34
|
||||||||||
2006
|
19
|
7
|
-
|
(4
|
)c
|
22
|
||||||||||
a.
|
Primarily
represents write-offs of obsolete materials and supplies
inventories.
|
b.
|
Represents
a release of valuation allowances as a result of the acquisition of Phelps
Dodge.
|
c.
|
Represents
amounts paid or adjustments to reserves based on revised
estimates.
|
FREEPORT-McMoRan COPPER & GOLD
INC.
|
||||||
EXHIBIT
INDEX
|
||||||
Filed
|
||||||
Exhibit
|
with
this
|
Incorporated
by Reference
|
||||
Number
|
Exhibit
Title
|
Form
10-K
|
Form
|
File
No.
|
Date
Filed
|
|
2.1
|
Agreement
and Plan of Merger dated as of November 18, 2006, by and among
Freeport-McMoRan Copper & Gold Inc. (FCX), Phelps Dodge Corporation
and Panther Acquisition Corporation.
|
S-4
|
333-139252
|
12/11/2006
|
||
3.1
|
Composite
Certificate of Incorporation of FCX.
|
8-A/A
|
001-11307-01
|
01/26/2009
|
||
3.2
|
Amended
and Restated By-Laws of FCX, as amended through May 1,
2007.
|
8-K
|
001-11307-01
|
05/04/2007
|
||
4.1
|
Certificate
of Designations of 5½% Convertible Perpetual Preferred Stock of
FCX.
|
8-K
|
001-11307-01
|
03/31/2004
|
||
4.2
|
Certificate
of Designations of 6¾% Mandatory Convertible Preferred Stock of
FCX.
|
8-K
|
001-11307-01
|
03/27/2007
|
||
4.3
|
Rights
Agreement dated as of May 3, 2000, between FCX and ChaseMellon Shareholder
Services, L.L.C., as Rights Agent.
|
10-Q
|
001-09916
|
05/15/2000
|
||
4.4
|
Amendment
No. 1 to Rights Agreement dated as of February 26, 2002, between FCX and
Mellon Investor Services.
|
10-Q
|
001-09916
|
05/07/2002
|
||
4.5
|
Indenture
dated as of February 11, 2003, from FCX to The Bank of New York, as
Trustee, with respect to the 7% Convertible Senior Notes due
2011.
|
8-K
|
001-09916
|
02/25/2003
|
||
4.6
|
Indenture
dated as of March 19, 2007, from FCX to The Bank of New York, as Trustee,
with respect to the 8.25% Senior Notes due 2015, 8.375% Senior Notes due
2017, and the Senior Floating Rate Notes due 2015.
|
8-K
|
001-11307-01
|
03/19/2007
|
||
4.7
|
Credit
Agreement dated as of March 19, 2007, by and among FCX, the Lenders party
thereto, the Issuing Banks party thereto, JPMorgan Chase Bank, N.A. as
Administrative Agent and Collateral Agent, and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as Syndication Agent.
|
8-K
|
001-11307-01
|
03/19/2007
|
||
4.8
|
Amendment
Agreement dated as of July 3, 2007, amending the Credit Agreement dated as
of March 19, 2007, among FCX, the Lenders party thereto, the Issuing Banks
party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and
as Collateral Agent, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as Syndication Agent.
|
8-K
|
001-11307-01
|
07/11/2007
|
||
4.9
|
First
Amendment dated as of January 22, 2009, in respect of the Amended and
Restated Credit Agreement dated as of July 10, 2007, among FCX, the
Lenders party thereto, the Issuing Banks party thereto, and JPMorgan Chase
Bank, N.A., as Administrative Agent and as Collateral Agent, and Merrill
Lynch, Pierce, Fenner & Smith Incorporated, as Syndication
Agent.
|
8-K
|
001-11307-01
|
01/26/2009
|
||
4.10
|
Amended
and Restated Credit Agreement dated as of March 19, 2007, by and among
FCX, PT Freeport Indonesia, the Lenders party thereto, the Issuing Banks
party thereto, JPMorgan Chase Bank, N.A. as Administrative Agent,
Collateral Agent, Security Agent and JAA Security Agent, U.S. Bank
National Association, as FI Trustee, and Merrill Lynch, Pierce, Fenner
& Smith Incorporated, as Syndication Agent.
|
8-K
|
001-11307-01
|
03/19/2007
|
FREEPORT-McMoRan
COPPER & GOLD INC.
|
||||||
EXHIBIT
INDEX
|
||||||
Filed
|
||||||
Exhibit
|
with
this
|
Incorporated
by Reference
|
||||
Number
|
Exhibit
Title
|
Form
10-K
|
Form
|
File
No.
|
Date
Filed
|
|
4.11
|
Amendment
Agreement dated as of July 3, 2007, amending the Amended and Restated
Credit Agreement dated as of March 19, 2007, which amended and restated
the Amended and Restated Credit Agreement, dated as of July 25, 2006,
which amended and restated the Amended and Restated Credit Agreement,
dated as of September 30, 2003, which amended and restated the Amended and
Restated Credit Agreement, dated as of October 19, 2001, which amended and
restated both the Credit Agreement, originally dated as of October 27,
1989 and amended and restated as of June 1, 1993 and the Credit Agreement,
originally dated as of June 30, 1995, among FCX, PT Freeport Indonesia,
U.S. Bank National Association, as trustee for the Lenders and certain
other lenders under the FI Trust Agreement, the Lenders party thereto, the
Issuing Banks party thereto, and JPMorgan Chase Bank, N.A., as
Administrative Agent, Security Agent, JAA Security Agent and Collateral
Agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
Syndication Agent.
|
8-K
|
001-11307-01
|
07/11/2007
|
||
4.12
|
First
Amendment dated as of January 22, 2009, in respect of the Amended and
Restated Credit Agreement dated as of March 19, 2007, as amended as of
July 3, 2007, which amends and restates the Amended and Restated Credit
Agreement, dated as of July 25, 2006, which amended and restated the
Amended and Restated Credit Agreement, dated as of September 30, 2003,
which amended and restated the Amended and Restated Credit Agreement,
dated as of October 19, 2001, which amended and restated both the Credit
Agreement, originally dated as of October 27, 1989 and amended and
restated as of June 1, 1993 and the Credit Agreement, originally dated as
of June 30, 1995, among FCX, PT Freeport Indonesia, U.S. Bank National
Association, as trustee for the Lenders and certain other lenders under
the FI Trust Agreement, the Lenders party thereto, the Issuing Banks party
thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, Security
Agent, JAA Security Agent and Collateral Agent, and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as Syndication Agent.
|
8-K
|
001-11307-01
|
01/26/2009
|
||
10.1
|
Contract
of Work dated December 30, 1991, between the Government of the Republic of
Indonesia and PT Freeport Indonesia.
|
S-3
|
333-72760
|
11/05/2001
|
||
10.2
|
Contract
of Work dated August 15, 1994, between the Government of the Republic of
Indonesia and PT Irja Eastern Minerals Corporation.
|
S-3
|
333-72760
|
11/05/2001
|
||
10.3
|
Participation
Agreement dated as of October 11, 1996, between PT Freeport Indonesia and
P.T. RTZ-CRA Indonesia (a subsidiary of Rio Tinto PLC) with respect to a
certain contract of work.
|
S-3
|
333-72760
|
11/05/2001
|
||
10.4
|
Agreement
dated as of October 11, 1996, to Amend and Restate Trust Agreement among
PT Freeport Indonesia, FCX, the RTZ Corporation PLC (now Rio Tinto PLC),
P.T. RTZ-CRA Indonesia, RTZ Indonesian Finance Limited and First Trust of
New York, National Association, and The Chase Manhattan Bank, as
Administrative Agent, JAA Security Agent and Security
Agent.
|
8-K
|
001-09916
|
11/13/1996
|
||
10.5
|
Concentrate
Purchase and Sales Agreement dated effective December 11, 1996, between PT
Freeport Indonesia and PT Smelting.
|
S-3
|
333-72760
|
11/05/2001
|
||
10.6
|
Second
Amended and Restated Joint Venture and Shareholders’ Agreement dated as of
December 11, 1996, among Mitsubishi Materials Corporation, Nippon Mining
and Metals Company, Limited and PT Freeport Indonesia.
|
S-3
|
333-72760
|
11/05/2001
|
FREEPORT-McMoRan
COPPER & GOLD INC.
|
||||||
EXHIBIT
INDEX
|
||||||
Filed
|
||||||
Exhibit
|
with
this
|
Incorporated
by Reference
|
||||
Number
|
Exhibit
Title
|
Form
10-K
|
Form
|
File
No.
|
Date
Filed
|
10.7
|
Participation
Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation,
Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals
Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware
corporation, Sumitomo Corporation, a Japanese corporation, Summit Global
Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a
Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian
sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a
Peruvian sociedad anonima abierta.
|
8-K
|
001-00082
|
03/22/2005
|
||
10.8
|
Shareholders
Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation,
Cyprus Climax Metals Company, a Delaware corporation, Sumitomo
Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a
Japanese corporation, Summit Global Management B.V., a Dutch corporation,
SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas
Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad
Minera Cerro Verde S.A.A., a Peruvian sociedad anonima
abierta.
|
8-K
|
001-00082
|
06/07/2005
|
||
10.9
|
Master
Agreement and Plan of Merger between Columbian Chemicals Company,
Columbian Chemicals Acquisition LLC and Columbian Chemicals Merger Sub,
Inc., dated November 15, 2005.
|
10-K
|
001-00082
|
02/27/2006
|
||
10.10
|
Reclamation
and Remediation Trust Agreement between Phelps Dodge Corporation and Wells
Fargo Delaware Trust Company, dated December 22, 2005.
|
10-K
|
001-00082
|
02/27/2006
|
||
10.11
|
Distribution
Agreement, dated as of January 26, 2009, by and between FCX and J.P.
Morgan Securities Inc.
|
8-K
|
001-11307-01
|
01/26/2009
|
||
10.12*
|
FCX
Director Compensation.
|
10-Q
|
001-11307-01
|
8/11/2008
|
||
10.13*
|
Consulting
Agreement dated December 22, 1988, with Kissinger Associates, Inc.
(Kissinger Associates).
|
10-K405
|
001-09916
|
03/31/1998
|
||
10.14*
|
Letter
Agreement dated May 1, 1989, with Kent Associates, Inc. (Kent Associates,
predecessor in interest to Kissinger Associates).
|
10-K405
|
001-09916
|
03/31/1998
|
||
10.15*
|
Letter
Agreement dated January 27, 1997, among Kissinger Associates, Kent
Associates, FCX, Freeport-McMoRan Inc. (FTX), and FM Services Company
(FMS).
|
10-K405
|
001-09916
|
03/08/2002
|
||
10.16*
|
Supplemental
Agreement with Kissinger Associates and Kent Associates, effective as of
January 1, 2009.
|
10-Q
|
001-11307-01
|
11/10/2008
|
||
10.17*
|
Agreement
for Consulting Services between FTX and B. M. Rankin, Jr. effective as of
January 1, 1990 (assigned to FMS as of January 1, 1996).
|
10-K405
|
001-09916
|
03/31/1998
|
||
10.18*
|
Supplemental
Agreement dated December 15, 1997, between FMS and B. M. Rankin,
Jr.
|
10-K405
|
001-09916
|
03/31/1998
|
||
Supplemental
Letter Agreement between FMS and B. M. Rankin, Jr., effective as of
January 1, 2009.
|
X
|
|||||
10.20*
|
Letter
Agreement effective as of January 7, 1997, between Senator J. Bennett
Johnston, Jr. and FMS.
|
10-K405
|
001-09916
|
03/08/2002
|
||
10.21*
|
Supplemental
Agreement between FMS and J. Bennett Johnston, Jr., effective as of May 1,
2008.
|
10-Q
|
001-11307-01
|
8/11/2008
|
||
10.22*
|
Supplemental
Agreement between FMS and J. Bennett Johnston, Jr., effective as of
January 1, 2009.
|
10-Q
|
001-11307-01
|
11/10/2008
|
||
10.23*
|
Letter
Agreement dated November 1, 1999, between FMS and Gabrielle K.
McDonald.
|
10-K405
|
001-09916
|
03/20/2000
|
FREEPORT-McMoRan
COPPER & GOLD INC.
|
||||||
EXHIBIT
INDEX
|
||||||
Filed
|
||||||
Exhibit
|
with
this
|
Incorporated
by Reference
|
||||
Number
|
Exhibit
Title
|
Form
10-K
|
Form
|
File
No.
|
Date
Filed
|
10.24*
|
Supplemental
Letter Agreement between FMS and Gabrielle K. McDonald, effective as of
May 1, 2008.
|
10-Q
|
001-11307-01
|
8/11/2008
|
||
10.25*
|
Supplemental
Letter Agreement between FMS and Gabrielle K. McDonald, effective as of
January 1, 2009.
|
10-Q
|
001-11307-01
|
11/10/2008
|
||
10.26*
|
Agreement
for Consulting Services between FMS and Dr. J. Taylor Wharton, effective
as of January 11, 2008.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
Supplemental
Letter Agreement between FMS and Dr. J. Taylor Wharton, effective as of
January 1, 2009.
|
X
|
|||||
Amended
and Restated Executive Employment Agreement dated effective as of December
2, 2008, between FCX and James R. Moffett.
|
X
|
|||||
Amended
and Restated Change of Control Agreement dated effective as of December 2,
2008, between FCX and James R. Moffett.
|
X
|
|||||
Amended
and Restated Change of Control Agreement dated effective as of December 2,
2008, between FCX and Michael J. Arnold.
|
X
|
|||||
Amended
and Restated Executive Employment Agreement dated effective as of December
2, 2008, between FCX and Richard C. Adkerson.
|
X
|
|||||
Amended
and Restated Executive Employment dated effective as of December 2, 2008,
between FCX and Kathleen L. Quirk.
|
X
|
|||||
FCX
Executive Services Program, as amended and restated December 2,
2008.
|
X
|
|||||
10.34*
|
FCX
Supplemental Executive Retirement Plan, as amended and
restated.
|
8-K
|
001-11307-01
|
02/05/2007
|
||
10.35*
|
FCX
President’s Award Program.
|
S-3
|
333-72760
|
11/05/2001
|
||
10.36*
|
FCX
Supplemental Executive Capital Accumulation Plan.
|
10-Q
|
001-11307-01
|
05/12/2008
|
||
10.37*
|
FCX
Supplemental Executive Capital Accumulation Plan Amendment
One.
|
10-Q
|
001-11307-01
|
05/12/2008
|
||
FCX
Supplemental Executive Capital Accumulation Plan Amendment
Two.
|
X
|
|||||
FCX
2005 Supplemental Executive Capital Accumulation Plan.
|
X
|
|||||
10.40*
|
FCX
1995 Stock Option Plan for Non-Employee Directors, as amended and
restated.
|
10-Q
|
001-11307-01
|
05/10/2007
|
||
10.41*
|
FCX
Amended and Restated 1999 Stock Incentive Plan, as amended and
restated.
|
10-Q
|
001-11307-01
|
05/10/2007
|
||
FCX
Amended and Restated 1999 Long-Term Performance Incentive
Plan.
|
X
|
|||||
10.43*
|
FCX
2003 Stock Incentive Plan, as amended and restated.
|
10-Q
|
001-11307-01
|
05/10/2007
|
||
10.44*
|
Form
of Amendment No. 1 to Notice of Grant of Nonqualified Stock Options and
Stock Appreciation Rights under the 2004 Director Compensation
Plan.
|
8-K
|
001-11307-01
|
05/05/2006
|
||
10.45*
|
FCX
2004 Director Compensation Plan, as amended and restated.
|
10-Q
|
001-11307-01
|
05/10/2007
|
||
FCX
2005 Annual Incentive Plan, as amended and restated.
|
X
|
|||||
10.47*
|
FCX
Amended and Restated 2006 Stock Incentive Plan.
|
8-K
|
001-11307-01
|
07/13/2007
|
||
10.48*
|
Form
of Notice of Grant of Nonqualified Stock Options for grants under the FCX
1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006
Stock Incentive Plan.
|
10-K
|
001-11307-01
|
02/29/2008
|
FREEPORT-McMoRan
COPPER & GOLD INC.
|
||||||
EXHIBIT
INDEX
|
||||||
Filed
|
||||||
Exhibit
|
with
this
|
Incorporated
by Reference
|
||||
Number
|
Exhibit
Title
|
Form
10-K
|
Form
|
File
No.
|
Date
Filed
|
10.49*
|
Form
of Restricted Stock Unit Agreement for grants under the FCX 1999 Stock
Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive
Plan.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
10.50*
|
Form
of Performance-Based Restricted Stock Unit Agreement for grants under the
FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006
Stock Incentive Plan.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
10.51*
|
Form
of Restricted Stock Unit Agreement (form used in connection with
participant elections) for grants under the FCX 1999 Stock Incentive Plan,
the 2003 Stock Incentive Plan and the 2006 Stock Incentive
Plan.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
10.52*
|
Form
of Performance-Based Restricted Stock Unit Agreement (form used in
connection with participant elections) for grants under the FCX 1999 Stock
Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive
Plan.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
FCX
Computation of Ratio of Earnings to Fixed Charges.
|
X
|
|||||
14.1
|
FCX
Principles of Business Conduct.
|
10-K
|
001-11307-01
|
02/29/2008
|
||
Subsidiaries
of FCX.
|
X
|
|
|
|
||
Consent
of Ernst & Young LLP.
|
X
|
|||||
Certified
resolution of the Board of Directors of FCX authorizing this report to be
signed on behalf of any officer or director pursuant to a Power of
Attorney.
|
X
|
|||||
Powers
of Attorney pursuant to which this report has been signed on behalf of
certain officers and directors of FCX.
|
X
|
|||||
Certification
of Principal Executive Officer pursuant to Rule 13a-14(a)/15d –
14(a).
|
X
|
|||||
Certification
of Principal Financial Officer pursuant to Rule 13a-14(a)/15d –
14(a).
|
X
|
|||||
Certification
of Principal Executive Officer pursuant to 18 U.S.C. Section
1350.
|
X
|
|||||
Certification
of Principal Financial Officer pursuant to 18 U.S.C Section
1350.
|
X
|
|||||
99.1
|
Amended
and Restated Mining Convention dated as of September 28, 2005, among the
Democratic Republic of Congo, La Générale des Carrières et des Mines,
Lundin Holdings Ltd. (now TF Holdings Limited) and Tenke Fungurume Mining
S.A.R.L..
|
8-K
|
001-11307-01
|
09/02/2008
|
||
99.2
|
Amended
and Restated Shareholders Agreement dated as of September 28, 2005, by and
between La Générale des Carrières et des Mines and Lundin Holdings Ltd.
(now TF Holdings Limited) and its subsidiaries.
|
8-K
|
001-11307-01
|
09/02/2008
|