01—Abstract
Summary
Summary of the 10-K/A filed February 18, 2022. Cited figures are marked; the original filing is the authoritative source.
This 10-K/A filing from Freeport-McMoRan Inc. (FCX) primarily serves as an amendment to its previously filed annual report, containing detailed exhibits and financial statement schedules.
While the core financial data is referenced from the original 10-K, this filing specifically presents Schedule II, which details the valuation and qualifying accounts for deferred tax assets and reserves for non-income taxes for the years ended December 31, 2021, 2020, and 2019. Investors should note the changes in the valuation allowance for deferred tax assets, reflecting utilization of net operating losses and changes in foreign tax credits. The extensive exhibit list provides a comprehensive overview of the company's material agreements, debt instruments, and compensation plans, offering transparency into its operational and financial structure.
02—Key points
Key Highlights
- Schedule II details changes in the valuation allowance for deferred tax assets, showing a significant decrease in 2021 due to utilized net operating losses and other adjustments.
- Reserves for non-income taxes have also seen adjustments, with a decrease in 2021 reflecting payments and revised estimates.
- The filing includes an extensive list of exhibits, encompassing material agreements such as merger and purchase agreements, debt indentures, and various stock and executive compensation plans.
- Key operational agreements, including the Concentrate Purchase and Sales Agreement with PT Freeport Indonesia and the PT-FI Divestment Agreement, are listed, providing insight into significant contractual relationships.
- The filing references the consent of Ernst & Young LLP as the independent registered public accounting firm, attesting to the fair presentation of the financial statement schedule.
- Technical Report Summaries for key mining operations (Cerro Verde, Grasberg Minerals District, Morenci Mine) effective as of December 31, 2021, are included as exhibits, providing valuable information on mineral reserves and resources.
- Detailed executive and director compensation plans, including stock incentive plans and change in control severance plans, are listed, offering transparency into executive remuneration.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Freeport-McMoRan Inc kept $0.19.
- Revenue$22.84B100.0%
- Cost of revenue−$14.03B61.4%
- Gross profit$8.81B38.6%
- Operating costs−$449.0M2.0%
- Operating income$8.37B36.6%
- Interest, other & tax−$4.06B17.8%
- Net income$4.31B18.8%
Where FY2021 revenue went
$22.84B- Cost of revenue: $14.03B, 61% of revenue
- Net income: $4.31B, 19% of revenue
- Interest, other & tax: $4.06B, 18% of revenue
- SG&A: $383.0M, 1.7% of revenue
Kept 19% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2021filed February 18, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $22.84B$14.20B | +60.9% |
| Cost of Revenue | $14.03B$11.65B | +20.4% |
| Gross Profit | $8.81B$2.54B | +246.6% |
| SG&A Expenses | $383.00M$370.00M | +3.5% |
| Operating Expenses | $14.48B$11.76B | +23.1% |
| Operating Income | $8.37B$2.44B | +243.3% |
| Net Income | $4.31B$599.00M | +618.9% |
| EPS (Basic) | $2.93$0.41 | +614.6% |
| EPS (Diluted) | $2.90$0.41 | +607.3% |
| Shares Outstanding (Basic) | 1.47B1.45B | +0.9% |
| Shares Outstanding (Diluted) | 1.48B1.46B | +1.4% |
05—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K/A filing?
This filing is an amendment to Freeport-McMoRan's (FCX) original 10-K report. It primarily provides Schedule II (Valuation and Qualifying Accounts) and an extensive list of exhibits, including material contracts, debt instruments, and compensation plans, offering further detail and transparency.
What key financial information is presented in Schedule II?
Schedule II details the changes in the valuation allowance for deferred tax assets and reserves for non-income taxes for the years 2019, 2020, and 2021. It shows how these reserves were affected by factors such as the utilization of net operating losses, foreign tax credits, and asset sales.
Are there any significant operational details disclosed in the exhibits?
Yes, the exhibits include important operational information such as the Concentrate Purchase and Sales Agreement involving PT Freeport Indonesia and PT Smelting, and Technical Report Summaries for major mining operations like Cerro Verde, Grasberg, and Morenci, which detail mineral reserves and resources as of December 31, 2021.
What types of agreements and plans are listed in the exhibits?
The exhibits list a wide range of agreements and plans, including historical merger and purchase agreements, numerous indentures related to long-term debt, credit agreements, shareholders agreements, and various executive and director compensation plans such as stock incentive plans and retirement plans.
06—Continue