-Look at inventory: what inventory cost flow method does the company use? Where

Question

-Look at inventory: what inventory cost flow method does the company use? Where is this information recorded, be specific?

-What are the company’s total property, plant & equipment (net)?

-What method of depreciation company use? Where is this information recorded, be specific?

-Does the company have intangible asset? If so, identify them.

* NOTE* THE INFORMATION IS ON THE ANNUAL REPORT OF THE COMPANY FOR 2016

THANKS TO ALL OF YOU :)

FREEPORT-McMoRan INC. CONSOLIDATED BALANCE SHEETS December 31 2015 (In millions, except par value) Current assets: 4,245 S 1,126 Cash and cash equivalents Trade accounts receivable Income and other tax receivables Other accounts receivable 89 1.306 1,338 998 1,575 Materials and supplies, net Mill and leach stockpiles Product 161 Other current assets Assets held for sale 344 10.435 23,219 Total current assets 7,462 23,986 Property, plant, equipment and mine development costs, net Oil and gas properties, net full cost method: Subject to amortization, less accumulated amortization and impairment 2,262 4,831 1,663 1,987 4,386 46,577 $27,433 and $22,276, respectively Not subject to amortization Long-term mill and leach stockpiles Other assets Assets held for sale Total assets 1,633 1,956 LIABILITIES AND EQUITY Current liabilities: 2,393 S 3,232 Accounts payable and accrued liabilities Current portion of debt Current portion of environmental and asset retirement obligations Accrued income taxes Liabilities held for sale 1,232 369 205 4.265 14.795 3,768 3,487 1.745 131 4,307 19,675 3,567 3,714 Total current liabilities Long-term debt, less current portion Deferred income taxes Environmental and asset retirement obligations, less current portion Other liabilities 865 33,769 Liabilities held for sale Total liabilities 28,060 Redeemable noncontrolling interest Equity Stockholders' equity: Common stock, par value $0.10, 1,574 shares and 1,374 shares issued, respectively Capital in excess of par value Accumulated deficit Accumulated other comprehensive loss Common stock held in treasury 129 shares and 128 shares, 157 26,690 (16,540) (548) 137 24,283 (12,387) (503) respectively, at cost 6.051 3,206 9.257 Total stockholders' equity 7,828 Noncontrolling interests Total equity 12,044 46,577 Total liabilities and equity The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Explanation / Answer

1) As per form 10-K of Freeport McMoRan, the company states its inventory  at the lower of weighted-average cost or net realizable value (NRV). Please see the below excerpts from page number 131 of the Form 10-K.

Inventories: Inventories include mill and leach stockpiles, materials and supplies, and product inventories. Beginning in third-quarter 2015 because of the adoption of new accounting guidance, inventories are stated at the lower of weighted-average cost or net realizable value (NRV).

2) Total property, plant & equipment (net) is $23,219 millions on 31st December 2016. The inforamtion can be found on page number 58.

3) The company uses units of production method for depreciaiton. The informaion is recorded on page number 77 of Form 10-K.

4) Yes. The comapny does have intangible assets. The total book value is $305 million as on 31st December 2016. However, the form 10-K doesn't provide any information on what assets are categorized under "intangible assets". The information is available on page number 145 of the Form 10-K.

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