01—Abstract
Summary
Summary of the 10-K/A filed June 12, 2015. Cited figures are marked; the original filing is the authoritative source.
This excerpt contains only Part IV, Item 15 (Exhibits and Financial Statement Schedules) of Freeport-McMoRan Inc.'s annual report filing, presented as an exhibit index.
It does not include the financial statements, MD&A, or risk factors, so it cannot support conclusions about FCX's revenue, earnings, cash flow, or balance sheet. The exhibit list indicates that this filing is an amendment to the Form 10-K for the fiscal year ended December 31, 2014, which was originally filed February 27, 2015. The amendment appears to re-file or furnish certain exhibits, as marked by the dagger symbols, and it covers material agreements, debt instruments, and compensation plans.
The most investor-relevant items in the index relate to FCX's Indonesian operations. These include a July 2014 Memorandum of Understanding with the Indonesian government on adjusting the Contract of Work, a January 2015 extension of that memorandum, and a participation agreement with Rio Tinto's Indonesian subsidiary with multiple amendments. Indonesia remains a material source of FCX's copper and gold production, so these contract terms bear directly on long-term asset security.
The index also shows a February 27, 2015 First Amendment to the Term Loan Agreement and a Second Amendment to the Revolving Credit Agreement, along with the 2014 Stock Purchase Agreement for Chilean assets (LMC Candelaria and LMC Ojos del Salado), which signals ongoing portfolio and financing activity. For a full investment assessment, the complete 10-K/A or the original FY2014 Form 10-K should be reviewed, particularly the financial statements, Indonesia-related disclosures, debt footnotes, and risk factors. The exhibits themselves should be read where the contract terms matter.
02—Key points
Key Highlights
- This filing is a Form 10-K/A amendment to the FY2014 annual report (originally filed February 27, 2015), with some exhibits re-filed or furnished as indicated by the dagger footnotes.
- The exhibit index includes a January 23, 2015 extension to the July 25, 2014 Memorandum of Understanding with the Indonesian government on adjusting PT Freeport Indonesia's Contract of Work, a key development for FCX's largest mining asset.
- Debt financing amendments are listed: a February 27, 2015 First Amendment to the Term Loan Agreement and a February 27, 2015 Second Amendment to the Revolving Credit Agreement, both with JPMorgan Chase as administrative agent.
- A October 6, 2014 Stock Purchase Agreement covers the acquisition of LMC Candelaria SpA and LMC Ojos del Salado SpA by Freeport Minerals Corporation, reflecting portfolio activity in Chile.
- Oil and gas exposure is reflected in crude oil purchase agreements between Freeport-McMoRan Oil & Gas LLC (formerly Plains Exploration & Production) and ConocoPhillips, including amendments effective January 1, 2014 and July 1, 2014.
- Several exhibits are subject to confidential treatment requests, with redacted portions furnished separately to the SEC, which may limit the public detail available on certain commercial terms.
- The exhibit index includes numerous executive compensation and incentive plan documents, including the FCX Annual Incentive Plan for fiscal years 2014 through 2018 and a February 2015 form of Restricted Stock Unit Agreement.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2014, Freeport-McMoRan Inc lost $0.06.
- Revenue$21.44B100.0%
- Cost of revenue−$19.50B91.0%
- Gross profit$1.93B9.0%
- Operating costs−$2.23B10.4%
- Operating income−$298.0M1.4%
- Interest, other & tax−$1.01B4.7%
- Net income−$1.31B6.1%
04—Financials
Financial Highlights
Figures from 10-K/AFY2014filed June 12, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $21.44B$20.92B | +2.5% |
| Cost of Revenue | $19.50B$14.64B | +33.3% |
| Gross Profit | $1.93B$6.28B | −69.2% |
| SG&A Expenses | $580.00M$657.00M | −11.7% |
| Operating Expenses | $20.30B$15.57B | +30.4% |
| Operating Income | -$298.00M$5.35B | −105.6% |
| Net Income | -$1.31B$2.66B | −149.2% |
| EPS (Basic) | $-1.26$2.65 | −147.5% |
| EPS (Diluted) | $-1.26$2.64 | −147.7% |
| Shares Outstanding (Basic) | 1.04B1.00B | +3.7% |
| Shares Outstanding (Diluted) | 1.04B1.01B | +3.3% |
05—Questions
Frequently Asked Questions
Why was this 10-K/A filed in June 2015 if it contains only exhibit information?
The index marks certain exhibits with a dagger to indicate documents previously filed with the original FY2014 Form 10-K on February 27, 2015, which this amendment is being filed to address. The excerpt does not state the specific reason for the amendment, so the complete filing should be reviewed for the explanatory note.
What does the Indonesia Memorandum of Understanding mean for FCX investors?
The July 25, 2014 Memorandum of Understanding with the Indonesian government, as extended on January 23, 2015, concerns adjusting the Contract of Work for PT Freeport Indonesia. This governs FCX's major operations in Indonesia, so its terms affect the long-term security of cash flows from that asset. The exhibit list does not disclose the substance of the adjustments, which requires the agreement text or the company's narrative disclosures.
Did FCX change its credit facilities in early 2015?
The exhibit index shows that on February 27, 2015, FCX entered into a First Amendment to its February 2013 Term Loan Agreement and a Second Amendment to its February 2013 Revolving Credit Agreement. The index does not describe the changes to pricing, maturity, or covenants, so those details must be taken from the amendments themselves or the financial statement footnotes.
Can this excerpt be used to evaluate FCX's financial performance?
No. The excerpt contains only the exhibit index and no financial statements, revenue, earnings, cash flow, reserve, or production data. Evaluating FCX's performance requires the full annual report, including audited financial statements and management's discussion and analysis.
What should investors review next in this filing?
Investors should review the full 10-K/A for the explanatory note on the amendment, the FY2014 financial statements and MD&A from the original 10-K, the Indonesia-related disclosures and agreements, and the debt footnotes covering the amended credit facilities. Reviewing the risk factors on commodity prices and Indonesian regulatory exposure is also advisable.
06—Continue