1.0.0.3falseSummary of Significant Accounting Policiesfalse1$falsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli020nem_SummaryOfSignificantAccountingPoliciesAbstractnemfalsenadurationstringSummary of Significant Accounting Policiesfalsefalsefalsefalsefalsetruefalsefalsefalse1falsefalse00falsefalseSummary of Significant Accounting Policiesfalse31us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationstringNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div style="margin-left: 0%">
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left">
<tr>
<td width="9%"></td>
<td width="91%"></td>
</tr>
<tr valign="top">
<td>
<b><font style="font-family: Arial, Helvetica">NOTE 2  </font></b>
</td>
<td>
<b><font style="font-family: Arial, Helvetica">SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</font></b>
</td>
</tr>
</table>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">The Accounting
Standards Codification</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In June 2009, the Financial Accounting Standards Board
(“FASB”) established the <i>FASB Accounting Standards
Codification </i>(“ASC”) as the single source of
authoritative generally accepted accounting principles
(“GAAP”) to be applied by nongovernmental entities.
The ASC is a new structure which took existing accounting
pronouncements and organized them by accounting topic. Relevant
authoritative literature issued by the Securities and Exchange
Commission (“SEC”) and select SEC staff
interpretations and administrative literature was also included
in the ASC. All other accounting guidance not included in the
ASC is non-authoritative. The ASC was effective for the
Company’s interim quarterly period beginning July 1,
2009. The adoption of the ASC did not have an impact on the
Company’s consolidated financial position, results of
operations or cash flows.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Use of
Estimates</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s Consolidated Financial Statements have been
prepared in accordance with GAAP. The preparation of the
Company’s Consolidated Financial Statements requires the
Company to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the related
disclosure of contingent assets and liabilities at the date of
the Consolidated Financial Statements and the reported amounts
of revenues and expenses during the reporting period. The more
significant areas requiring the use of management estimates and
assumptions relate to mineral reserves that are the basis for
future cash flow estimates utilized in impairment calculations
and
<font style="white-space: nowrap">units-of-production</font>
amortization calculations; environmental, reclamation and
closure obligations; estimates of recoverable gold and other
minerals in stockpile and leach pad inventories; estimates of
fair value for certain reporting units and asset impairments
(including impairments of goodwill, long-lived assets and
investments); write-downs of inventory, stockpiles and ore on
leach pads to net realizable value; post-employment,
post-retirement and other employee benefit liabilities;
valuation allowances for deferred tax assets; reserves for
contingencies and litigation; and the fair value and accounting
treatment of financial instruments including marketable
securities and derivative instruments. The Company bases its
estimates on historical experience and on various other
assumptions that are believed to be reasonable under the
circumstances. Accordingly, actual results may differ
significantly from these estimates under different assumptions
or conditions.
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<!-- XBRL Pagebreak End -->
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Principles of
Consolidation</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Consolidated Financial Statements include the accounts of
Newmont Mining Corporation and more-than-50%-owned subsidiaries
that it controls and entities over which control is achieved
through means other than voting rights. The Company also
includes its pro-rata share of assets, liabilities and
operations for unincorporated joint ventures in which it has an
interest. All significant intercompany balances and transactions
have been eliminated. The functional currency for the majority
of the Company’s operations, including the Australian
operations, is the U.S. dollar.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company follows the ASC guidance for identification and
reporting for entities over which control is achieved through
means other than voting rights. The guidance defines such
entities as Variable Interest Entities (“VIEs”).
Newmont identified the Nusa Tenggara Partnership
(“NTP”), a partnership between Newmont and an
affiliate of Sumitomo, that owns a 63% interest in PT Newmont
Nusa Tenggara (“PTNNT” or “Batu Hijau”), as
a VIE due to certain capital structures and contractual
relationships.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In December 2009, the Company entered into a transaction with
P.T. Pukuafu Indah (“PTPI”), an unrelated
noncontrolling partner of PTNNT whereby the Company agreed to
advance certain funds to PTPI in exchange for a pledge of the
noncontrolling partner’s 20% share of PTNNT dividends, net
of withholding tax, and the assignment of its voting rights to
the Company. As a result, PTPI was determined to be a VIE as it
has minimal equity capital and the voting rights to its 20%
interest in PTNNT reside with Newmont.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Based on the above transaction, the Company recognized an
additional 17% effective economic interest in PTNNT. Combined
with the Company’s 56.25% ownership in NTP, Newmont has a
52.44% effective economic interest in PTNNT and continues to
consolidate Batu Hijau in its Consolidated Financial Statements.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Cash and Cash
Equivalents</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Cash and cash equivalents consist of all cash balances and
highly liquid investments with an original maturity of three
months or less. Because of the short maturity of these
investments, the carrying amounts approximate their fair value.
Cash and cash equivalents are invested in United States Treasury
securities and money market securities. Restricted cash is
excluded from cash and cash equivalents and is included in other
current and long-term assets.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Investments</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Management determines the appropriate classification of its
investments in equity securities at the time of purchase and
reevaluates such determinations at each reporting date.
Investments in incorporated entities in which the Company’s
ownership is greater than 20% and less than 50%, or which the
Company does not control through majority ownership or means
other than voting rights, are accounted for by the equity method
and are included in long-term assets. The Company accounts for
its equity security investments as available for sale securities
in accordance with ASC guidance on accounting for certain
investments in debt and equity securities. The Company
periodically evaluates whether declines in fair values of its
investments below the Company’s carrying value are
<font style="white-space: nowrap">other-than-temporary</font>
in accordance with guidance for the meaning of
<font style="white-space: nowrap">other-than-temporary</font>
impairment and its application to certain investments. The
Company’s policy is to generally treat a decline in the
investment’s quoted market value that has lasted
continuously for more than six months as an
<font style="white-space: nowrap">other-than-temporary</font>
decline in value. The Company also monitors its investments for
events or changes in circumstances that have occurred that may
have a significant adverse effect on the fair value of the
investment and evaluates qualitative and quantitative factors
regarding the severity and
duration of the unrealized loss and the Company’s ability
to hold the investment until a forecasted recovery occurs to
determine if the decline in value of an investment is
<font style="white-space: nowrap">other-than-temporary.</font>
Declines in fair value below the Company’s carrying value
deemed to be
<font style="white-space: nowrap">other-than-temporary</font>
are charged to earnings. Additional information concerning the
Company’s equity method and security investments is
included in Note 16.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Stockpiles,
Ore on Leach Pads and Inventories</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
As described below, costs that are incurred in or benefit the
productive process are accumulated as stockpiles, ore on leach
pads and inventories. Stockpiles, ore on leach pads and
inventories are carried at the lower of average cost or net
realizable value. Net realizable value represents the estimated
future sales price of the product based on current and long-term
metals prices, less the estimated costs to complete production
and bring the product to sale. Write-downs of stockpiles, ore on
leach pads and inventories, resulting from net realizable value
impairments, are reported as a component of <i>Costs applicable
to sales</i>. The current portion of stockpiles, ore on leach
pads and inventories is determined based on the expected amounts
to be processed within the next 12 months. Stockpiles, ore
on leach pads and inventories not expected to be processed
within the next 12 months are classified as long-term. The
major classifications are as follows:
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Stockpiles</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Stockpiles represent ore that has been extracted from the mine
and is available for further processing. Stockpiles are measured
by estimating the number of tons added and removed from the
stockpile, the number of contained ounces or pounds (based on
assay data) and the estimated metallurgical recovery rates
(based on the expected processing method). Stockpile ore
tonnages are verified by periodic surveys. Costs are allocated
to stockpiles based on relative values of material stockpiled
and processed using current mining costs incurred up to the
point of stockpiling the ore, including applicable overhead and
amortization relating to mining operations, and removed at each
stockpile’s average cost per recoverable unit.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Ore on Leach
Pads</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The recovery of gold from certain gold oxide ores is achieved
through the heap leaching process. Under this method, oxide ore
is placed on leach pads where it is treated with a chemical
solution, which dissolves the gold contained in the ore. The
resulting gold-bearing solution is further processed in a plant
where the gold is recovered. Costs are added to ore on leach
pads based on current mining costs, including applicable
amortization relating to mining operations. Costs are removed
from ore on leach pads as ounces are recovered based on the
average cost per estimated recoverable ounce of gold on the
leach pad.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The estimates of recoverable gold on the leach pads are
calculated from the quantities of ore placed on the leach pads
(measured tons added to the leach pads), the grade of ore placed
on the leach pads (based on assay data) and a recovery
percentage (based on ore type). In general, leach pads recover
between 50% and 95% of the recoverable ounces in the first year
of leaching, declining each year thereafter until the leaching
process is complete.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Although the quantities of recoverable gold placed on the leach
pads are reconciled by comparing the grades of ore placed on
pads to the quantities of gold actually recovered (metallurgical
balancing), the nature of the leaching process inherently limits
the ability to precisely monitor inventory levels. As a result,
the metallurgical balancing process is constantly monitored and
estimates are refined based on actual results over time.
Historically, the Company’s operating results have not been
materially impacted by variations between the estimated and
actual recoverable quantities of gold on its leach
pads. Variations between actual and estimated quantities
resulting from changes in assumptions and estimates that do not
result in write-downs to net realizable value are accounted for
on a prospective basis.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">In-process
Inventory</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In-process inventories represent materials that are currently in
the process of being converted to a saleable product. Conversion
processes vary depending on the nature of the ore and the
specific processing facility, but include mill in-circuit, leach
in-circuit, flotation and column cells, and carbon in-pulp
inventories. In-process material is measured based on assays of
the material fed into the process and the projected recoveries
of the respective plants. In-process inventories are valued at
the average cost of the material fed into the process
attributable to the source material coming from the mines,
stockpiles
<font style="white-space: nowrap">and/or</font> leach
pads plus the in-process conversion costs, including applicable
amortization relating to the process facilities incurred to that
point in the process.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Precious Metals
Inventory</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Precious metals inventories include gold doré
<font style="white-space: nowrap">and/or</font> gold
bullion. Precious metals that result from the Company’s
mining and processing activities are valued at the average cost
of the respective in-process inventories incurred prior to the
refining process, plus applicable refining costs.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Concentrate
Inventory</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Concentrate inventories represent copper and gold concentrate
available for shipment. The Company values concentrate inventory
at the average cost, including an allocable portion of support
costs and amortization. Costs are added and removed to the
concentrate inventory based on tons of concentrate and are
valued at the lower of average cost or net realizable value.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Materials and
Supplies</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Materials and supplies are valued at the lower of average cost
or net realizable value. Cost includes applicable taxes and
freight.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Property,
Plant and Mine Development</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Facilities and
equipment</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Expenditures for new facilities or equipment and expenditures
that extend the useful lives of existing facilities or equipment
are capitalized and recorded at cost. The facilities and
equipment are amortized using the straight-line method at rates
sufficient to amortize such costs over the estimated productive
lives, which do not exceed the related estimated mine lives, of
such facilities based on proven and probable reserves.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Mine
Development</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Mine development costs include engineering and metallurgical
studies, drilling and other related costs to delineate an ore
body, the removal of overburden to initially expose an ore body
at open pit surface mines and the building of access ways,
shafts, lateral access, drifts, ramps and other infrastructure
at underground mines. Costs incurred before mineralization is
classified as proven and probable reserves are expensed and
classified as <i>Exploration </i>or <i>Advanced projects,
research and development </i>expense. Capitalization of mine
development project costs, that meet the definition of an asset,
begins once mineralization is classified as proven and probable
reserves.
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<!-- XBRL Pagebreak End -->
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Drilling and related costs are capitalized for an ore body where
proven and probable reserves exist and the activities are
directed at obtaining additional information on the ore body or
converting non-reserve mineralization to proven and probable
reserves and the benefit is expected to be realized over a
period beyond one year. All other drilling and related costs are
expensed as incurred. Drilling costs incurred during the
production phase for operational ore control are allocated to
inventory costs and then included as a component of <i>Costs
applicable to sales</i>.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The cost of removing overburden and waste materials to access
the ore body at an open pit mine prior to the production phase
are referred to as “pre-stripping costs.”
Pre-stripping costs are capitalized during the development of an
open pit mine. Where multiple open pits exist at a mining
complex utilizing common processing facilities, pre-stripping
costs are capitalized at each pit. The removal and production of
de minimis saleable materials may occur during development and
are recorded as <i>Other income</i>, net of incremental mining
and processing costs.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The production phase of an open pit mine commences when saleable
minerals, beyond a de minimis amount, are produced. Stripping
costs incurred during the production phase of a mine are
variable production costs that are included as a component of
inventory to be recognized in <i>Costs applicable to sales
</i>in the same period as the revenue from the sale of inventory.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s definition of a mine and the mine’s
production phase may differ from that of other companies in the
mining industry resulting in incomparable allocations of
stripping costs to deferred mine development and production
costs. Other mining companies may expense pre-stripping costs
associated with subsequent pits within a mining complex.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Mine development costs are amortized using the
<font style="white-space: nowrap">units-of-production</font>
(“UOP”) method based on estimated recoverable ounces
or pounds in proven and probable reserves. To the extent that
these costs benefit an entire ore body, they are amortized over
the estimated life of the ore body. Costs incurred to access
specific ore blocks or areas that only provide benefit over the
life of that area are amortized over the estimated life of that
specific ore block or area.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Mineral
Interests</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Mineral interests include acquired interests in production,
development and exploration stage properties. The mineral
interests are capitalized at their fair value at the acquisition
date, either as an individual asset purchase or as part of a
business combination.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The value of such assets is primarily driven by the nature and
amount of mineralized material believed to be contained in such
properties. Production stage mineral interests represent
interests in operating properties that contain proven and
probable reserves. Development stage mineral interests represent
interests in properties under development that contain proven
and probable reserves. Exploration stage mineral interests
represent interests in properties that are believed to
potentially contain mineralized material consisting of
(i) mineralized material such as inferred material within
pits; measured, indicated and inferred material with
insufficient drill spacing to qualify as proven and probable
reserves; and inferred material in close proximity to proven and
probable reserves; (ii) around-mine exploration potential
such as inferred material not immediately adjacent to existing
reserves and mineralization, but located within the immediate
mine area; (iii) other mine-related exploration potential
that is not part of measured, indicated or inferred material and
is comprised mainly of material outside of the immediate mine
area; (iv) greenfields exploration potential that is not
associated with any other production, development or exploration
stage property, as described above; or (v) any acquired
right to explore or extract a potential mineral deposit. The
Company’s mineral rights generally are enforceable
regardless of whether proven and probable reserves have been
established. In certain limited situations, the nature of a
mineral right changes from an exploration
right to a mining right upon the establishment of proven and
probable reserves. The Company has the ability and intent to
renew mineral interests where the existing term is not
sufficient to recover all identified and valued proven and
probable reserves
<font style="white-space: nowrap">and/or</font>
undeveloped mineralized material.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Asset
Impairment</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Long-lived
Assets</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company reviews and evaluates its long-lived assets for
impairment when events or changes in circumstances indicate that
the related carrying amounts may not be recoverable. An
impairment is considered to exist if the total estimated future
cash flows on an undiscounted basis are less than the carrying
amount of the assets, including goodwill, if any. An impairment
loss is measured and recorded based on discounted estimated
future cash flows. Future cash flows are estimated based on
quantities of recoverable minerals, expected gold and other
commodity prices (considering current and historical prices,
trends and related factors), production levels, operating costs,
capital requirements and reclamation costs, all based on
<font style="white-space: nowrap">life-of-mine</font>
plans. Existing proven and probable reserves and value beyond
proven and probable reserves, including mineralization that is
not part of the measured, indicated or inferred resource base,
are included when determining the fair value of mine site
reporting units at acquisition and, subsequently, in determining
whether the assets are impaired. The term “recoverable
minerals” refers to the estimated amount of gold or other
commodities that will be obtained after taking into account
losses during ore processing and treatment. Estimates of
recoverable minerals from such exploration stage mineral
interests are risk adjusted based on management’s relative
confidence in such materials. In estimating future cash flows,
assets are grouped at the lowest level for which there are
identifiable cash flows that are largely independent of future
cash flows from other asset groups. The Company’s estimates
of future cash flows are based on numerous assumptions and it is
possible that actual future cash flows will be significantly
different than the estimates, as actual future quantities of
recoverable minerals, gold and other commodity prices,
production levels and operating costs of production and capital
are each subject to significant risks and uncertainties.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Goodwill</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company evaluates, on at least an annual basis during the
fourth quarter, the carrying amount of goodwill to determine
whether current events and circumstances indicate that such
carrying amount may no longer be recoverable. To accomplish
this, the Company compares the estimated fair value of its
reporting units to their carrying amounts. If the carrying value
of a reporting unit exceeds its estimated fair value, the
Company compares the implied fair value of the reporting
unit’s goodwill to its carrying amount, and any excess of
the carrying value over the fair value is charged to earnings.
The Company’s fair value estimates are based on numerous
assumptions and it is possible that actual fair value will be
significantly different than the estimates, as actual future
quantities of recoverable minerals, gold and other commodity
prices, production levels, operating costs and capital
requirements are each subject to significant risks and
uncertainties.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Revenue
Recognition</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Revenue is recognized, net of treatment and refining charges,
from a sale when persuasive evidence of an arrangement exists,
the price is determinable, the product has been delivered, the
title has been transferred to the customer and collection of the
sales price is reasonably assured. Revenues from by-product
sales are credited to <i>Costs applicable to sales </i>as a
by-product credit.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Concentrate sales are initially recorded based on 100% of the
provisional sales prices. Until final settlement occurs,
adjustments to the provisional sales prices are made to take
into account the
<font style="white-space: nowrap">mark-to-market</font>
changes based on the forward prices for the estimated month of
settlement. For changes in metal quantities upon receipt of new
information and assay, the provisional sales quantities are
adjusted as well. The principal risks associated with
recognition of sales on a provisional basis include metal price
fluctuations between the date initially recorded and the date of
final settlement. If a significant decline in metal prices
occurs between the provisional pricing date and the final
settlement date, it is reasonably possible that the Company
could be required to return a portion of the sales proceeds
received based on the provisional invoice.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s sales based on a provisional price contain an
embedded derivative that is required to be separated from the
host contract for accounting purposes. The host contract is the
receivable from the sale of the concentrates at the forward
exchange price at the time of sale. The embedded derivative,
which does not qualify for hedge accounting, is marked to market
through earnings each period prior to final settlement.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Income and
Mining Taxes</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company accounts for income taxes using the liability
method, recognizing certain temporary differences between the
financial reporting basis of the Company’s liabilities and
assets and the related income tax basis for such liabilities and
assets. This method generates either a net deferred income tax
liability or asset for the Company, as measured by the statutory
tax rates in effect. The Company derives its deferred income tax
charge or benefit by recording the change in either the net
deferred income tax liability or asset balance for the year.
Mining taxes represent Canadian provincial taxes levied on
mining operations and are classified as income taxes; as such
taxes are based on a percentage of mining profits. With respect
to the earnings that the Company derives from the operations of
its consolidated subsidiaries, in those situations where the
earnings are indefinitely reinvested, no deferred taxes have
been provided on the unremitted earnings (including the excess
of the carrying value of the net equity of such entities for
financial reporting purposes over the tax basis of such equity)
of these consolidated companies.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s deferred income tax assets include certain
future tax benefits. The Company records a valuation allowance
against any portion of those deferred income tax assets when it
believes, based on the weight of available evidence, it is more
likely than not that some portion or all of the deferred income
tax asset will not be realized.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s operations involve dealing with uncertainties
and judgments in the application of complex tax regulations in
multiple jurisdictions. The final taxes paid are dependent upon
many factors, including negotiations with taxing authorities in
various jurisdictions and resolution of disputes arising from
federal, state, and international tax audits. The Company
recognizes potential liabilities and records tax liabilities for
anticipated tax audit issues in the U.S. and other tax
jurisdictions based on its estimate of whether, and the extent
to which, additional taxes will be due. At January 1, 2007,
the Company adopted guidance for accounting for uncertainty in
income taxes to record these liabilities (refer to Note 8
for additional information). The Company adjusts these reserves
in light of changing facts and circumstances; however, due to
the complexity of some of these uncertainties, the ultimate
resolution may result in a payment that is materially different
from the Company’s current estimate of the tax liabilities.
If the Company’s estimate of tax liabilities proves to be
less than the ultimate assessment, an additional charge to
expense would result. If the estimate of tax liabilities proves
to be greater than the ultimate assessment, a tax benefit would
result. The Company recognizes interest and penalties, if any,
related to unrecognized tax benefits in income tax expense.
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<!-- XBRL Pagebreak End -->
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Reclamation
and Remediation Costs (Asset Retirement Costs and
Obligations)</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Asset retirement obligations are recognized when incurred and
recorded as liabilities at fair value. The liability is accreted
over time through periodic charges to earnings. In addition, the
asset retirement cost is capitalized as part of the asset’s
carrying value and amortized over the life of the related asset.
Reclamation costs are periodically adjusted to reflect changes
in the estimated present value resulting from the passage of
time and revisions to the estimates of either the timing or
amount of the reclamation and abandonment costs. The asset
retirement obligation is based on when spending for an existing
environmental disturbance will occur. The Company reviews, on an
annual basis, unless otherwise deemed necessary, the asset
retirement obligation at each mine site in accordance with ASC
guidance for accounting for asset retirement obligations.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Future remediation costs for inactive mines are accrued based on
management’s best estimate at the end of each period of the
costs expected to be incurred at a site. Such cost estimates
include, where applicable, ongoing care, maintenance and
monitoring costs. Changes in estimates at inactive mines are
reflected in earnings in the period an estimate is revised.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Foreign
Currency</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The functional currency for the majority of the Company’s
operations, including the Australian operations, is the
U.S. dollar. All monetary assets and liabilities where the
functional currency is the U.S. dollar are translated at
current exchange rates and the resulting adjustments are
included in <i>Other income, net</i>. All monetary assets and
liabilities recorded in functional currencies other than
U.S. dollars are translated at current exchange rates and
the resulting adjustments are charged or credited directly to
<i>Accumulated other comprehensive income (loss) </i>in
<i>Equity. </i>Revenues and expenses in foreign currencies are
translated at the weighted-average exchange rates for the period.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Derivative
Instruments</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Newmont has fixed forward contracts designated as cash flow
hedges in place to hedge against changes in foreign exchanges
rates, fixed forward contracts designated as cash flow hedges in
place to hedge against changes in diesel prices and fixed to
floating interest rate swap contracts designated as fair value
hedges to provide balance to the Company’s mix of fixed and
floating rate debt. The fair value of derivative contracts
qualifying as cash flow hedges are reflected as assets or
liabilities in the balance sheet. To the extent these hedges are
effective in offsetting forecasted cash flows from production
costs (the “effective portion”), changes in fair value
are deferred in Accumulated other comprehensive income (loss).
Amounts deferred in <i>Accumulated other comprehensive income
(loss) </i>are reclassified to <i>Costs applicable to sales</i>,
as applicable, when the hedged transaction has occurred. The
ineffective portion of the change in the fair value of the
derivative is recorded in <i>Other income, net </i>in each
period. Cash transactions related to the Company’s
derivative contracts accounted for as hedges are classified in
the same category as the item being hedged in the statement of
cash flows.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
When derivative contracts qualifying as cash flow hedges are
settled, accelerated or restructured before the maturity date of
the contracts, the related amount in <i>Accumulated other
comprehensive income (loss) </i>at the settlement date is
deferred and reclassified to <i>Costs applicable to sales</i>,
as applicable, when the originally designated hedged transaction
impacts earnings.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The fair value of derivative contracts qualifying as fair value
hedges are reflected as assets or liabilities in the balance
sheet. Changes in fair value are recorded in income in each
period, consistent with recording changes to the
<font style="white-space: nowrap">mark-to-market</font>
value of the underlying hedged asset or liability in income.
Changes in the
<font style="white-space: nowrap">mark-to-market</font>
value of the effective portion of interest rate swaps utilized
by
the Company to swap a portion of its fixed rate interest rate
risk to floating rate risk are recognized as a component of
<i>Interest expense, net</i>.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Newmont assesses the effectiveness of the derivative contracts
periodically using either regression analysis or the dollar
offset approach, both retrospectively and prospectively, to
determine whether the hedging instruments have been highly
effective in offsetting changes in the fair value of the hedged
items. The Company defines highly effective as the hedge
contract and the item being hedged being between 0.8 and 1.25
correlated, and the Company measures the amount of any hedge
ineffectiveness. The Company will also assess periodically
whether the hedging instruments are expected to be highly
effective in the future. If a hedging instrument is not expected
to be highly effective, the Company will stop hedge accounting
prospectively. In those instances, the gains or losses remain in
<i>Accumulated other comprehensive income (loss) </i>until the
hedged item affects earnings.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Net Income
(Loss) per Common Share</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Basic and diluted income (loss) per share are presented for
<i>Net income (loss) attributable to Newmont stockholders
</i>and for <i>Income (loss) from continuing operations
attributable to Newmont stockholders</i>. Basic income (loss)
per share is computed by dividing income available to common
shareholders by the weighted-average number of outstanding
common shares for the period, including the exchangeable shares
(see Notes 12 and 21). Diluted income per share reflects
the potential dilution that could occur if securities or other
contracts that may require the issuance of common shares in the
future were converted. Diluted income per share is computed by
increasing the weighted-average number of outstanding common
shares to include the additional common shares that would be
outstanding after conversion and adjusting net income for
changes that would result from the conversion. Only those
securities or other contracts that result in a reduction in
earnings per share are included in the calculation.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Comprehensive
Income (Loss)</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In addition to <i>Net income (loss), Comprehensive income (loss)
</i>includes all changes in equity during a period, such as
adjustments to minimum pension liabilities, foreign currency
translation adjustments, the effective portion of changes in
fair value of derivative instruments that qualify as cash flow
hedges and cumulative unrecognized changes in fair value of
marketable securities
<font style="white-space: nowrap">available-for-sale</font>
or other investments, except those resulting from investments by
and distributions to owners.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Reclassifications</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
Certain amounts in prior years have been reclassified to conform
to the 2009 presentation. The Company retrospectively adopted
ASC guidance for convertible debt instruments which requires an
allocation of convertible debt proceeds between the liability
component and the embedded conversion option (i.e., the equity
component). The Company also adopted the ASC guidance for
noncontrolling interests, which requires the noncontrolling
interests to be classified as a separate component of net income
and equity.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Recently
Adopted Accounting Pronouncements</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Subsequent
Events</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In May 2009, the ASC guidance for subsequent events was updated
to establish accounting and reporting standards for events that
occur after the balance sheet date but before financial
statements
are issued or are available to be issued. The update sets forth:
(i) the period after the balance sheet date during which
management of a reporting entity should evaluate events or
transactions that may occur for potential recognition or
disclosure in the financial statements, (ii) the
circumstances under which an entity should recognize events or
transactions occurring after the balance sheet in its financial
statements, and (iii) the disclosures that an entity should
make about events or transactions occurring after the balance
sheet date in its financial statements. The Company adopted the
updated guidance for the interim period ended June 30,
2009. The adoption had no impact on the Company’s
consolidated financial position, results of operations or cash
flows. See Note 35.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Post-retirement
Benefit Plans</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In December 2008, the ASC guidance for retirement benefits was
updated to expand the requirements of employers’
disclosures about post-retirement benefit plan assets in a
defined benefit pension or other post-retirement plan. The
objective is to require more detailed disclosures about
employers’ plan assets, including employers’
investment strategies, major categories of plan assets,
concentrations of risk within plan assets, and valuation
techniques used to measure the fair value of plan assets. The
Company adopted the updated guidance on January 1, 2009.
These disclosures are not required for earlier periods that are
presented for comparative purposes. See Note 22 for the
Company’s disclosure of its post-retirement benefit plan
assets.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Equity Method
Investments</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In November 2008, the ASC guidance for equity method and joint
venture investments was updated to clarify the accounting for
certain transactions and impairment considerations involving
equity method investments. The intent is to provide guidance on:
(i) determining the initial measurement of an equity method
investment, (ii) recognizing
<font style="white-space: nowrap">other-than-temporary</font>
impairments of an equity method investment and
(iii) accounting for an equity method investee’s
issuance of shares. The updated guidance was effective for the
Company’s fiscal year beginning January 1, 2009 and
was applied prospectively. The adoption had no impact on the
Company’s consolidated financial position or results of
operations.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Equity-Linked
Financial Instruments</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In June 2008, the ASC guidance for derivatives and hedging when
accounting for contracts in an entity’s own equity was
updated to clarify the determination of whether an instrument
(or embedded feature) is indexed to an entity’s own stock
which would qualify as a scope exception from hedge accounting.
The updated guidance was effective for the Company’s fiscal
year beginning January 1, 2009. The adoption had no impact
on the Company’s consolidated financial position or results
of operations.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Accounting for
Convertible Debt Instruments</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In May 2008, the ASC guidance was updated for convertible debt
instruments that, by their stated terms, may be settled in cash
(or other assets) upon conversion, including partial cash
settlement, unless the embedded conversion option is required to
be separately accounted for as a derivative. The update requires
that the liability and equity components of convertible debt
instruments within the scope be separately accounted for in a
manner that reflects the entity’s nonconvertible debt
borrowing rate. This requires an allocation of convertible debt
proceeds between the liability component and the embedded
conversion option (i.e., the equity component). The difference
between the principal amount of the debt and the amount of the
proceeds allocated to the liability component is reported as a
debt discount and subsequently amortized to earnings over the
instrument’s expected life using the
effective interest method. The updated guidance required
retrospective application to all periods presented.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
During July 2007, the Company completed an offering of $1,150
convertible senior notes due 2014 and 2017, each in the amount
of $575. The 2014 notes maturing on July 15, 2014 pay
interest semi-annually at a rate of 1.25% per annum, and the
2017 notes maturing on July 15, 2017 pay interest
semi-annually at a rate of 1.63% per annum. The notes are
convertible, at the holder’s option, equivalent to a
conversion price of $46.21 per share of common stock
(24,887,956 shares of common stock). In connection with the
convertible senior notes offering, the Company entered into
convertible note hedge transactions and warrant transactions
(“Call Spread Transactions”). The Call Spread
Transactions included the purchase of call options and the sale
of warrants. As a result of the Call Spread Transactions, the
conversion price of $46.21 was effectively increased to $60.27.
At December 31, 2009, with the inclusion of the Call Spread
Transactions, the if-converted value did not exceed the
principal amounts.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
During February 2009, the Company completed an offering of $518
convertible senior notes due on February 15, 2012. The
notes will pay interest semi-annually at a rate of 3.00% per
annum. The notes are convertible, at the holder’s option,
equivalent to a conversion price of $46.25 per share of common
stock (11,189,189 shares of common stock). At
December 31, 2009, the if-converted value exceeded the
principal amount by $12.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s Consolidated Balance Sheets reports the
following related to the convertible senior notes:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="50%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="3%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="4%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
<td width="3%"> </td><!-- colindex=04 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=04 type=lead -->
<td width="4%" align="right"> </td><!-- colindex=04 type=body -->
<td width="1%" align="left"> </td><!-- colindex=04 type=hang1 -->
<td width="3%"> </td><!-- colindex=05 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=05 type=lead -->
<td width="1%" align="right"> </td><!-- colindex=05 type=body -->
<td width="1%" align="left"> </td><!-- colindex=05 type=hang1 -->
<td width="3%"> </td><!-- colindex=06 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=06 type=lead -->
<td width="4%" align="right"> </td><!-- colindex=06 type=body -->
<td width="1%" align="left"> </td><!-- colindex=06 type=hang1 -->
<td width="4%"> </td><!-- colindex=07 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=07 type=lead -->
<td width="4%" align="right"> </td><!-- colindex=07 type=body -->
<td width="1%" align="left"> </td><!-- colindex=07 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 7pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>At December 31, 2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>At December 31, 2008</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 7pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>Convertible Senior Notes Due</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>Convertible Senior Notes Due</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 7pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2012</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2014</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2017</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2012</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2014</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2017</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Additional paid-in capital
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
46
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
97
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
123
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
97
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
123
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Principal amount
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
518
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
575
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
575
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
575
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
575
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Unamortized debt discount
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(55
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(107
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(158
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(127
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(174
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Net carrying amount
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
463
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
468
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
417
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
448
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
401
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
As a result of adopting the updated guidance, the effective
interest rates increased by approximately 5 percentage
points to 8.5%, 6.0% and 6.25% for the 2012, 2014 and 2017
notes, respectively, for the non-cash amortization of the debt
discount over the lives of the notes. <i>Interest expense, net
</i>was increased by $33 and $13 which decreased the
Company’s <i>Income from continuing operations </i>and
<i>Net income </i>by $22 ($0.04 per share) and increased the
Company’s <i>Loss from continuing operations </i>and <i>Net
loss </i>by $9 ($0.02 per share) for the years ended
December 31, 2008 and December 31, 2007, respectively.
As a result of the adoption, the Company has adjusted how it
recorded its fourth quarter 2008 dividends from <i>Retained
earnings </i>to <i>Additional paid-in capital </i>due to the
deficit in <i>Retained earnings</i>. Cash flows from operations
were not impacted by the adoption of the updated guidance. The
impact on the Company’s 2009 opening balance in <i>Retained
earnings </i>was as follows:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="83%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="13%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom">
<b>At December 31,<br />
</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Balance before application of updated guidance
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
7
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Impact of adoption of updated guidance
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(31
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Dividend adjustment to <i>Additional paid-in capital</i>
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
28
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Balance after application of updated guidance
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
4
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b>
<font style="font-family: Arial, Helvetica">
</font>
</b>
</div>
<!-- XBRL Pagebreak End -->
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
For the year ended December 31, 2009, the Company recorded
$30 and $56 of interest expense for the contractual interest
coupon and amortization of the debt discount, respectively,
related to the convertible senior notes. The remaining
unamortized debt discount is amortized over the remaining 3, 5
and 8 year periods of the 2012, 2014 and 2017 convertible
senior notes, respectively.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Accounting for
the Useful Life of Intangible Assets</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In April 2008, the ASC guidance for Goodwill and Other
Intangibles was updated to amend the factors that should be
considered in developing renewal or extension assumptions used
to determine the useful life of a recognized intangible asset.
The intent of this update is to improve the consistency between
the useful life of a recognized intangible asset and the period
of expected cash flows used to measure the fair value of the
asset under guidance for business combinations. The updated
guidance was effective for the Company’s fiscal year
beginning January 1, 2009 and was applied prospectively to
intangible assets acquired after the effective date. The
adoption had no impact on the Company’s consolidated
financial position, results of operations or cash flows.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Derivative
Instruments</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In March 2008, the ASC guidance for derivatives and hedging was
updated for enhanced disclosures about how and why an entity
uses derivative instruments, how derivative instruments and the
related hedged items are accounted for, and how derivative
instruments and the related hedged items affect an entity’s
financial position, financial performance and cash flows. The
Company adopted the updated guidance on January 1, 2009.
The adoption had no impact on the Company’s consolidated
financial position, results of operations or cash flows. See
Note 15 for the Company’s derivative instruments
disclosure.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Business
Combinations</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In December 2007, the ASC guidance for business combinations was
updated to provide new guidance for recognizing and measuring
identifiable assets and goodwill acquired, liabilities assumed,
and any noncontrolling interests in the acquiree. The updated
guidance also provides disclosure requirements to enable users
of the financial statements to evaluate the nature and financial
effects of the business combination. The Company adopted the
updated guidance on January 1, 2009 and applied it to the
acquisition of the remaining 33.33% interest in the Boddington
project completed on June 25, 2009 (see Note 13).
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In April 2009, the guidance was updated to address application
issues on initial recognition and measurement, subsequent
measurement and accounting, and disclosure of assets and
liabilities arising from contingencies in a business
combination. This update is effective for assets or liabilities
arising from contingencies in business combinations for which
the acquisition date is on or after January 1, 2009. The
adoption of the updated guidance did not have any impact on the
Company’s acquisition of the remaining 33.33% interest in
the Boddington project completed on June 25, 2009 (see
Note 13).
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Noncontrolling
Interests</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In December 2007, the ASC guidance for noncontrolling interests
was updated to establish accounting and reporting standards
pertaining to: (i) ownership interests in subsidiaries held
by parties other than the parent (“noncontrolling
interests”), (ii) the amount of net income
attributable to the parent and to the noncontrolling interests,
(iii) changes in a parent’s ownership interest, and
(iv) the valuation of any retained noncontrolling equity
investment when a subsidiary is deconsolidated. If a subsidiary
is deconsolidated, any retained noncontrolling equity investment
in the former subsidiary is
measured at fair value and a gain or loss is recognized in net
income based on such fair value. For presentation and disclosure
purposes, the guidance requires noncontrolling interests to be
classified as a separate component of equity. The Company
adopted the updated guidance on January 1, 2009. Except for
presentation changes, the adoption had no impact on the
Company’s consolidated financial position, results of
operations or cash flows. The Company applied the updated
guidance when accounting for the Company’s required
divestiture obligations of PTNNT which resulted in after-tax
gains of $63 that have been recorded to <i>Additional paid in
capital </i>in 2009. See Note 12.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In January 2010, the guidance for noncontrolling interests was
further updated to clarify the scope and to require additional
disclosure when a subsidiary is deconsolidated. The Company
adopted the updated guidance for the period ended
December 31, 2009. The adoption had no impact on the
Company’s consolidated financial position, results of
operations or cash flows.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Fair Value
Accounting</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In September 2006, the ASC guidance for fair value measurements
and disclosure was updated to define fair value, establish a
framework for measuring fair value, and expand disclosures about
fair value measurements. The Company adopted the updated
guidance for assets and liabilities measured at fair value on a
recurring basis on January 1, 2008. In February 2008, the
FASB staff issued an update to the guidance which delayed the
effective date for nonfinancial assets and nonfinancial
liabilities that are recognized or disclosed at fair value in
the financial statements on a nonrecurring basis. The Company
adopted the updated guidance for the Company’s nonfinancial
assets and liabilities measured at fair value on a nonrecurring
basis on January 1, 2009.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In October 2008, the guidance was updated for determining the
fair value of a financial asset when the market for that asset
is not active. The intent of this update was to provide guidance
on how the fair value of a financial asset is to be determined
when the market for that financial asset is inactive. The
updated guidance states that determining fair value in an
inactive market depends on the facts and circumstances, requires
the use of significant judgment and in some cases, observable
inputs may require significant adjustment based on unobservable
data. Regardless of the valuation technique used, an entity must
include appropriate risk adjustments that market participants
would make for nonperformance and liquidity risks when
determining fair value of an asset in an inactive market. The
update was effective upon issuance. The Company has incorporated
the guidance in determining the fair value of financial assets
when the market for those assets is not active, specifically its
marketable debt securities.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In April 2009, the guidance was further updated to provide
additional guidance on determining fair value when the volume
and level of activity for the asset or liability have
significantly decreased and identifying circumstances that
indicate when a transaction is not orderly. In April 2009, the
guidance for investments in debt and equity securities was
updated to: (i) clarify the interaction of the factors that
should be considered when determining whether a debt security is
other than temporarily impaired, (ii) provide guidance on
the amount of an
<font style="white-space: nowrap">other-than-temporary</font>
impairment recognized for a debt security in earnings and other
comprehensive income and (iii) expand the disclosures
required for
<font style="white-space: nowrap">other-than-temporary</font>
impairments for debt and equity securities. Also in April 2009,
the guidance for financial instruments was updated to require
disclosures about the fair value of financial instruments for
interim reporting periods of publicly traded companies as well
as in annual financial statements. Adoption of this updated
guidance was required for the Company’s interim reporting
period beginning April 1, 2009 with early adoption
permitted. The Company adopted the updated guidance for the
interim period ended March 31, 2009.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In August 2009, the guidance for fair value measurements and
disclosure was updated to further define fair value of
liabilities. This update provides clarification for
circumstances in which: (i) a quoted
price in an active market for the identical liability is not
available, (ii) the liability has a restriction that
prevents its transfer, and (iii) the identical liability is
traded as an asset in an active market in which no adjustments
to the quoted price of an asset are required. Adoption of this
guidance was required for the Company’s interim reporting
period beginning October 1, 2009. The adoption had no
impact on the Company’s consolidated financial position,
results of operations or cash flows.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In February 2007, guidance to elect the fair value option for
financial assets and financial liabilities was issued. The
guidance permits entities to choose to measure many financial
instruments and certain other items at fair value, with the
objective of improving financial reporting by mitigating
volatility in reported earnings caused by measuring related
assets and liabilities differently without having to apply
complex hedge accounting provisions. The updated guidance was
adopted January 1, 2008. The Company did not elect the fair
value option for any of its financial assets or liabilities, and
therefore, the adoption had no impact on the Company’s
consolidated financial position, results of operations or cash
flows. Refer to Note 14 for further details regarding the
Company’s assets and liabilities measured at fair value.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Variable Interest
Entities</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In December 2008, the ASC guidance for disclosures by public
entities (enterprises) about transfers of financial assets and
interests in variable interest entities was updated to require
public entities to provide additional disclosures about
transfers of financial assets. The updated guidance also
requires public enterprises to provide additional disclosures
about their involvement with VIEs. The updated guidance was
effective for the Company’s fiscal year ending
December 31, 2008. Newmont has adopted the disclosure
requirements in the Company’s VIE disclosures.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Accounting for
Income Tax Benefits of Dividends on Share-Based Payment
Awards</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In June 2007, the ASC guidance for accounting for income tax
benefits of dividends on share-based payment awards was updated.
The updated guidance requires that the tax benefit related to
dividends and dividend equivalents paid on equity-classified
nonvested shares and nonvested share units, which are expected
to vest, be recorded as an increase to additional paid-in
capital. The updated guidance was applied prospectively for tax
benefits on dividends declared in the Company’s fiscal year
beginning January 1, 2008. The adoption had an
insignificant impact on the Company’s consolidated
financial position, results of operations or cash flows.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Income
Taxes</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
On January 1, 2007, the Company adopted updated ASC
guidance which clarifies the accounting and reporting for
uncertainties in the application of the income tax laws to the
Company’s operations. The interpretation prescribes a
comprehensive model for the financial statement recognition,
measurement, presentation and disclosure of uncertain tax
provisions taken or expected to be taken in income tax returns.
The cumulative effects of applying this interpretation were
recorded as a decrease in retained earnings of $108, an increase
of $5 in goodwill, an increase of $4 in noncontrolling
interests, a decrease in net deferred tax assets of $37
(primarily, as a result of utilization of foreign tax credits
and net operating losses as part of the measurement process,
offset, in part, by the impact of the interaction of the
Alternative Minimum Tax rules) and an increase of $72 in the net
liability for unrecognized income tax benefits. Refer to
Note 8.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company’s continuing practice is to recognize interest
<font style="white-space: nowrap">and/or</font>
penalties related to unrecognized tax benefits as part of its
income tax expense. At December 31, 2009 and 2008, the
total amount of accrued income-tax-related interest and
penalties included in the Consolidated Balance Sheets was $13
and $37, respectively. During 2009, 2008, and 2007 the Company
accrued through
the Statements of Consolidated Income (Loss) an additional $9,
$31, and $27 of interest and penalties, paid $nil, $13, and $12
of interest, and released $35, $18, and $4 as a result of the
expiration of statute of limitations
<font style="white-space: nowrap">and/or</font>
settlements of audit-related issues. The Company also released
$8 in 2007 as a result of a change in the tax law.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
The Company or one of its subsidiaries files income tax returns
in the U.S. federal jurisdiction, various states and in
foreign jurisdictions. With limited exception, the Company is no
longer subject to U.S. federal, state and local income or
<font style="white-space: nowrap">non-U.S. income</font>
tax audits by taxing authorities for years before 2005.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<b><i><font style="font-family: Arial, Helvetica">Recently
Issued Accounting Pronouncements</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Variable Interest
Entities</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In June 2009, the ASC guidance for consolidation accounting was
updated to require an entity to perform a qualitative analysis
to determine whether the enterprise’s variable interest
gives it a controlling financial interest in a VIE. This
analysis identifies a primary beneficiary of a VIE as the entity
that has both of the following characteristics: (i) the
power to direct the activities of a VIE that most significantly
impact the entity’s economic performance and (ii) the
obligation to absorb losses or receive benefits from the entity
that could potentially be significant to the VIE. The updated
guidance also requires ongoing reassessments of the primary
beneficiary of a VIE. The updated guidance is effective for the
Company’s fiscal year beginning January 1, 2010. The
Company is evaluating the potential impact of adopting this
guidance on the Company’s consolidated financial position,
results of operations and cash flows.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
<i><font style="font-family: Arial, Helvetica">Fair Value
Accounting</font></i>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff">
In January 2010, the ASC guidance for fair value measurements
and disclosure was updated to require additional disclosures
related to: i) transfers in and out of level 1 and 2
fair value measurements and ii) enhanced detail in the
level 3 reconciliation. The guidance was amended to provide
clarity about: i) the level of disaggregation required for
assets and liabilities and ii) the disclosures required for
inputs and valuation techniques used to measure fair value for
both recurring and nonrecurring measurements that fall in either
level 2 or level 3. The updated guidance is effective
for the Company’s fiscal year beginning January 1,
2010, with the exception of the level 3 disaggregation
which is effective for the Company’s fiscal year beginning
January 1, 2011. The Company is evaluating the potential
impact of adopting this guidance on the Company’s
consolidated financial position, results of operations and cash
flows.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged NotefalsefalseNo definition available.No authoritative reference available.falsefalse12falseUnKnownUnKnownUnKnownfalsetrue