10-Q 1 nem-20160930x10q.htm 10-Q nem_Q2_Q3_Current folio_10Q_Taxonomy2015

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 


 

Form 10-Q

 


 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended September 30, 2016

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to              

 

Commission File Number: 001-31240

 


C:\Users\02015832\Desktop\Corporate_3CLR_POS_jpg.jpg

NEWMONT MINING CORPORATION

(Exact name of registrant as specified in its charter)

 


 

Delaware

    

84-1611629

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

6363 South Fiddler’s Green Circle

 

 

Greenwood Village, Colorado

 

80111

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (303) 863-7414

 


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.

 

 

Large accelerated filer

 ☒

 

Accelerated filer

 

Non-accelerated filer

 ☐

(Do not check if a smaller reporting company.)

Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act).    ☐  Yes    ☒   No

 

There were 530,750,074 shares of common stock outstanding on October 19, 2016.

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

PART I – FINANCIAL INFORMATION

 

 

ITEM 1. 

 

FINANCIAL STATEMENTS

 

 

 

Condensed Consolidated Statements of Operations

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

Notes to Condensed Consolidated Financial Statements

 

ITEM 2. 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

54 

 

 

Overview

 

54 

 

 

Selected Financial and Operating Results

 

57 

 

 

Consolidated Financial Results

 

58 

 

 

Results of Consolidated Operations

 

65 

 

 

Liquidity and Capital Resources

 

74 

 

 

Environmental

 

78 

 

 

Accounting Developments

 

79 

 

 

Non-GAAP Financial Measures

 

79 

 

 

Safe Harbor Statement

 

89 

ITEM 3. 

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

91 

ITEM 4. 

 

CONTROLS AND PROCEDURES

 

93 

 

 

PART II – OTHER INFORMATION

 

 

ITEM 1. 

 

LEGAL PROCEEDINGS

 

94 

ITEM 1A. 

 

RISK FACTORS

 

94 

ITEM 2. 

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

94 

ITEM 3. 

 

DEFAULTS UPON SENIOR SECURITIES

 

94 

ITEM 4. 

 

MINE SAFETY DISCLOSURES

 

94 

ITEM 5. 

 

OTHER INFORMATION

 

95 

ITEM 6. 

 

EXHIBITS

 

96 

SIGNATURES 

 

97 

EXHIBIT INDEX 

 

98 

 

 

 

 


 

PART I—FINANCIAL INFORMATION

 

ITEM 1.FINANCIAL STATEMENTS.

 

NEWMONT MINING CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

    

2016

    

2015

    

2016

    

2015

  

Sales

 

$

1,791

 

$

1,560

 

$

4,922

 

$

4,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1) 

 

 

983

 

 

925

 

 

2,736

 

 

2,609

 

Depreciation and amortization

 

 

335

 

 

292

 

 

892

 

 

792

 

Reclamation and remediation (Note 6)

 

 

25

 

 

22

 

 

67

 

 

65

 

Exploration 

 

 

39

 

 

34

 

 

107

 

 

115

 

Advanced projects, research and development

 

 

34

 

 

31

 

 

105

 

 

87

 

General and administrative 

 

 

63

 

 

59

 

 

178

 

 

180

 

Other expense, net (Note 7)

 

 

21

 

 

27

 

 

54

 

 

73

 

 

 

 

1,500

 

 

1,390

 

 

4,139

 

 

3,921

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net (Note 8)

 

 

(4)

 

 

142

 

 

93

 

 

136

 

Interest expense, net

 

 

(64)

 

 

(74)

 

 

(204)

 

 

(226)

 

 

 

 

(68)

 

 

68

 

 

(111)

 

 

(90)

 

Income (loss) before income and mining tax and other items

 

 

223

 

 

238

 

 

672

 

 

622

 

Income and mining tax benefit (expense) (Note 9)

 

 

(90)

 

 

(61)

 

 

(555)

 

 

(302)

 

Equity income (loss) of affiliates

 

 

2

 

 

(18)

 

 

(8)

 

 

(34)

 

Income (loss) from continuing operations 

 

 

135

 

 

159

 

 

109

 

 

286

 

Net income (loss) from discontinued operations, net of tax (Note 3)

 

 

(448)

 

 

126

 

 

(225)

 

 

376

 

Net income (loss)

 

 

(313)

 

 

285

 

 

(116)

 

 

662

 

Net loss (income) attributable to noncontrolling interests, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations (Note 10)

 

 

34

 

 

 —

 

 

62

 

 

(11)

 

Discontinued operations (Note 3)

 

 

(79)

 

 

(66)

 

 

(229)

 

 

(177)

 

 

 

 

(45)

 

 

(66)

 

 

(167)

 

 

(188)

 

Net income (loss) attributable to Newmont stockholders 

 

$

(358)

 

$

219

 

$

(283)

 

$

474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Newmont stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

169

 

$

159

 

$

171

 

$

275

 

Discontinued operations 

 

 

(527)

 

 

60

 

 

(454)

 

 

199

 

 

 

$

(358)

 

$

219

 

$

(283)

 

$

474

 

Income (loss) per common share (Note 11)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.32

 

$

0.30

 

$

0.32

 

$

0.54

 

Discontinued operations 

 

 

(0.99)

 

 

0.12

 

 

(0.85)

 

 

0.39

 

 

 

$

(0.67)

 

$

0.42

 

$

(0.53)

 

$

0.93

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations 

 

$

0.32

 

$

0.30

 

$

0.32

 

$

0.54

 

Discontinued operations 

 

 

(0.99)

 

 

0.12

 

 

(0.85)

 

 

0.39

 

 

 

$

(0.67)

 

$

0.42

 

$

(0.53)

 

$

0.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share 

 

$

0.025

 

$

0.025

 

$

0.075

 

$

0.075

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation.

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

1


 

NEWMONT MINING CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

 

    

2016

    

2015

    

2016

    

2015

  

Net income (loss)

 

$

(313)

  

$

285

    

$

(116)

 

$

662

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in marketable securities, net of $nil, $(1), $nil and $(1) tax benefit (expense), respectively

 

 

19

 

 

63

 

 

(37)

 

 

56

 

Foreign currency translation adjustments 

 

 

3

 

 

(3)

 

 

10

 

 

(8)

 

Change in pension and other post-retirement benefits, net of $(1), $(1), $(3) and $(23) tax benefit (expense), respectively

 

 

1

 

 

1

 

 

8

 

 

45

 

Change in fair value of cash flow hedge instruments, net of $(4), $3, $(19) and $nil tax benefit (expense), respectively

 

 

16

 

 

(10)

 

 

51

 

 

(4)

 

Other comprehensive income (loss)

 

 

39

 

 

51

 

 

32

 

 

89

 

Comprehensive income (loss)

 

$

(274)

 

$

336

 

$

(84)

 

$

751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Newmont stockholders 

 

$

(319)

 

$

270

 

$

(251)

 

$

563

 

Noncontrolling interests

 

 

45

 

 

66

 

 

167

 

 

188

 

 

 

$

(274)

 

$

336

 

$

(84)

 

$

751

 

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

 

 

2


 

NEWMONT MINING CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 

 

 

    

2016

    

2015

 

Operating activities:

 

 

 

  

 

 

 

Net income (loss)

    

$

(116)

  

$

662

 

Adjustments:

 

 

 

  

 

 

 

Depreciation and amortization

 

 

892

  

 

792

 

Stock-based compensation

 

 

54

 

 

58

 

Reclamation and remediation

 

 

60

 

 

61

 

Loss (income) from discontinued operations

 

 

225

 

 

(376)

 

Impairment of investments

 

 

 —

 

 

102

 

Deferred income taxes 

 

 

456

  

 

132

 

Gain on asset and investment sales, net

 

 

(109)

 

 

(109)

 

Gain on deconsolidation of TMAC

 

 

 —

 

 

(76)

 

Other operating adjustments and impairments

 

 

297

 

 

240

 

Net change in operating assets and liabilities (Note 23)

 

 

(432)

  

 

(182)

 

Net cash provided by operating activities of continuing operations

 

 

1,327

  

 

1,304

 

Net cash provided by operating activities of discontinued operations (1)

 

 

826

  

 

569

 

Net cash provided by operating activities

 

 

2,153

  

 

1,873

 

Investing activities:

 

 

 

  

 

 

 

Additions to property, plant and mine development 

 

 

(832)

  

 

(889)

 

Acquisitions, net (Note 4)

 

 

 —

  

 

(819)

 

Proceeds from sales of investments

 

 

184

 

 

29

 

Proceeds from sales of other assets

 

 

8

 

 

126

 

Other 

 

 

(21)

  

 

(47)

 

Net cash used in investing activities of continuing operations

 

 

(661)

 

 

(1,600)

 

Net cash used in investing activities of discontinued operations

 

 

(41)

 

 

(52)

 

Net cash used in investing activities 

 

 

(702)

  

 

(1,652)

 

Financing activities:

 

 

 

  

 

 

 

Repayment of debt 

 

 

(777)

  

 

(227)

 

Proceeds from stock issuance, net

 

 

 —

 

 

675

 

Proceeds from sale of noncontrolling interests

 

 

 —

 

 

37

 

Funding from noncontrolling interests

 

 

58

 

 

89

 

Acquisition of noncontrolling interests

 

 

(19)

 

 

(8)

 

Dividends paid to noncontrolling interests 

 

 

(146)

  

 

(3)

 

Dividends paid to common stockholders 

 

 

(41)

  

 

(38)

 

Other

 

 

(1)

 

 

 —

 

Net cash (used in) provided by financing activities of continuing operations

 

 

(926)

 

 

525

 

Net cash used in financing activities of discontinued operations

 

 

(319)

 

 

(164)

 

Net cash (used in) provided by financing activities

 

 

(1,245)

 

 

361

 

Effect of exchange rate changes on cash 

 

 

4

  

 

(21)

 

Net change in cash and cash equivalents 

 

 

210

 

 

561

 

Less net change in cash and cash equivalents in assets held for sale

 

 

474

 

 

362

 

 

 

 

(264)

 

 

199

 

Cash and cash equivalents at beginning of period 

 

 

2,363

  

 

2,231

 

Cash and cash equivalents at end of period 

 

$

2,099

  

$

2,430

 

 

 

 

 

 

 

 

 


(1)

Net cash provided by operating activities of discontinued operations includes $(8) and $(9) for the nine months ended September 31, 2016 and 2015, respectively, related to the Holt property royalty that was paid out of cash and cash equivalents held for use. For additional information regarding our discontinued operations, including cash flows from Batu Hijau, see Note 3.

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

3


 

NEWMONT MINING CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS 

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

At September 30, 

 

At December 31, 

 

 

    

2016

    

2015

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,099

 

$

2,363

 

Trade receivables

 

 

141

 

 

81

 

Other accounts receivables

 

 

152

 

 

134

 

Investments (Note 16)

 

 

80

 

 

19

 

Inventories (Note 17)

 

 

609

 

 

561

 

Stockpiles and ore on leach pads (Note 18)

 

 

785

 

 

782

 

Other current assets

 

 

123

 

 

83

 

Current assets held for sale (Note 3)

 

 

3,124

 

 

960

 

Current assets

 

 

7,113

 

 

4,983

 

Property, plant and mine development, net

 

 

13,170

 

 

13,210

 

Investments (Note 16)

 

 

239

 

 

402

 

Stockpiles and ore on leach pads (Note 18)

 

 

1,877

 

 

1,896

 

Deferred income tax assets

 

 

1,295

 

 

1,712

 

Other non-current assets

 

 

387

 

 

445

 

Non-current assets held for sale (Note 3)

 

 

 —

 

 

2,482

 

Total assets

 

$

24,081

 

$

25,130

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Debt (Note 19)

 

$

564

 

$

9

 

Accounts payable

 

 

304

 

 

315

 

Employee-related benefits

 

 

241

 

 

278

 

Income and mining taxes payable

 

 

97

 

 

38

 

Other current liabilities (Note 20)

 

 

456

 

 

487

 

Current liabilities held for sale (Note 3)

 

 

874

 

 

289

 

Current liabilities

 

 

2,536

 

 

1,416

 

Debt (Note 19)

 

 

4,552

 

 

5,854

 

Reclamation and remediation liabilities (Note 6)

 

 

1,587

 

 

1,555

 

Deferred income tax liabilities

 

 

563

 

 

538

 

Employee-related benefits

 

 

378

 

 

409

 

Other non-current liabilities (Note 20)

 

 

356

 

 

310

 

Non-current liabilities held for sale (Note 3)

 

 

 —

 

 

756

 

Total liabilities

 

 

9,972

 

 

10,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Common stock

 

 

849

 

 

847

 

Additional paid-in capital

 

 

9,469

 

 

9,427

 

Accumulated other comprehensive income (loss) (Note 22)

 

 

(302)

 

 

(334)

 

Retained earnings

 

 

1,086

 

 

1,410

 

Newmont stockholders' equity

 

 

11,102

 

 

11,350

 

Noncontrolling interests

 

 

3,007

 

 

2,942

 

Total equity (Note 21)

 

 

14,109

 

 

14,292

 

Total liabilities and equity

 

$

24,081

 

$

25,130

 

 

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

 

 

4


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1     BASIS OF PRESENTATION

 

The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2015 filed on February 17, 2016 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (U.S.) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency.

 

On June 30, 2016, Newmont agreed to sell its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). Newmont concluded that, as of September 30, 2016, Batu Hijau met the criteria to be treated as held for sale and has been presented as a discontinued operation. Accordingly,  (i) Batu Hijau is reflected as held for sale in our Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015; (ii) our Condensed Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (iii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3.

 

The Company has reclassified certain prior period amounts to conform to the 2016 presentation including the following items:

 

The Company retrospectively adopted Accounting Standards Update (“ASU”) 2015-03, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability. Refer to Note 2 for further details.

 

The Company reclassified regional administrative and community development costs of $16 and $8 from Other expense, net to General and administrative and Costs applicable to sales, respectively, for the three months ended September 30, 2015, and $42 and $18, respectively, for the nine months ended September 30, 2015.  

 

NOTE 2     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Risks and Uncertainties

 

As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold, copper and, to a lesser extent, silver. Historically, the commodity markets have been very volatile and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development,  net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are sensitive to the outlook for commodity prices. A decline in the Company’s long-term price outlook from current levels could result in material impairment charges related to these assets.

 

On June 30, 2016, the Company, through its subsidiaries, entered into agreements to sell its 48.5% economic interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. The closing of the sale is subject to various closing conditions, several of which were met during the third quarter of 2016. Certain closing conditions

5


 

Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

remain outstanding and while the Company expects it is probable that those conditions will be successfully satisfied and the transaction will close in the fourth quarter of 2016, some of the remaining closing conditions are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed. See Note 3 below for a detailed description of the progress made resolving closing conditions during the third quarter of 2016.

 

In September 2014, PTNNT and the Government of Indonesia signed a Memorandum of Understanding (“MoU”) that resulted in the government agreeing to issue permits to allow PTNNT to export and sell copper concentrates from the Batu Hijau mine. The government has issued several six-month export permits since then, with the most recent permit expected to expire in November 2016. Additionally, negotiations between PTNNT and the Government of Indonesia to amend the Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies) remained on-going at the time that the Company entered into the agreement to sell its interest in PTNNT. In the event that the sale of the Company’s interest in PTNNT does not close prior to November 2016 or does not close at all, no assurances can be made with respect to the outcome of the Contract of Work negotiations and the renewal of the export permit. The failure to receive a timely renewal may negatively impact future operations and financial results at Batu Hijau. As a result of the on-going Contract of Work renegotiations at Batu Hijau, the need for asset impairments, inventory write-downs, tax valuation allowances and other applicable accounting charges will continue to be evaluated. At this time, the Company expects operations to continue into the future until the previously announced sale closes.

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates.

 

Assets Held for Sale and Discontinued Operations

 

The Company reports a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and recognition of a completed sale is expected to occur within one year, the sales price is reasonable in relation to its current fair value and actions required to complete the sale indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn, in accordance with Accounting Standard Codification (“ASC”) 360, Property, Plant and Equipment. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. If a business is classified as held for sale after the balance sheet date but before the financial statements are issued or are available to be issued, the business continues to be classified as held and used in those financial statements when issued or when available to be issued.

 

The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. The results of discontinued operations are reported in Net income (loss) from discontinued operations, net of tax in the accompanying Condensed Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Recently Adopted Accounting Pronouncements

 

Employee benefit plan accounting

 

In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-12 related to defined benefit pension plans, defined contribution pension plans and health and welfare benefit plans. This update designates contract value as the only required measure for fully benefit-responsive investment contracts, simplifies and makes more effective the investment disclosure requirements for employee benefit plans and provides a simplified method for determining the measurement date for employee benefit plans. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.

 

Fair value measurement

 

In May 2015, ASU No. 2015-07 was issued related to investments for which fair value is measured, or is eligible to be measured, using the net asset value per share practical expedient. This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements for these investments. This update will impact the annual disclosure related to pension plan assets measured at fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2015. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements.

 

Debt issuance costs

 

In April 2015, ASU No. 2015-03 was issued related to debt issuance costs. This update simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company retrospectively adopted this guidance as of March 31, 2016. The Company reclassified $41 of debt issuance costs from Other non-current assets to Debt as of December 31, 2015. The December 31, 2015, balance sheet was adjusted as a result of the adoption of ASU 2015-03 as follows:

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

    

As Reported

    

As Adjusted

    

Other non-current assets

 

$

486

 

$

445

 

Debt (non-current)

 

$

5,895

 

$

5,854

 

 

ASU No. 2015-03 does not specifically address the accounting for deferred financing costs related to line-of-credit arrangements. In August 2015, ASU No. 2015-15 was issued allowing for debt issuance costs associated with line-of-credit arrangements to continue to be presented as assets. The Company will treat all debt issuance costs as a reduction to the carrying value of debt.

 

Consolidations

 

In February 2015, ASU No. 2015-02 was issued related to consolidations. This update makes some targeted changes to current consolidation guidance and impacts both the voting and the variable interest consolidation models. In particular, the update changes how companies determine whether limited partnerships or similar entities are variable interest entities. The update is effective in fiscal years, including interim periods, beginning after December 15, 2015. The Company currently consolidates certain variable interest entities. Adoption of this guidance, effective January 1, 2016, had no impact on the Consolidated Financial Statements or disclosures.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

 

Recently Issued Accounting Pronouncements

 

Statement of Cash Flows

 

In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Stock-based compensation

 

In March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.

 

Leases

 

In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

Investments

 

In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is not permitted. The Company does not expect the updated guidance to have a material impact on the Consolidated Financial Statements and disclosures.

 

Inventory

 

In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the updated guidance to have an impact on the Consolidated Financial Statements or disclosures.

 

Revenue recognition

 

In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016 and May 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10 and No. 2016-12, respectively. The new standard provides a five-step approach to be applied to all contracts with

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures.

 

 

 

 NOTE 3     DISCONTINUED OPERATIONS

 

The details of our Net income (loss) from discontinued operations, net of tax are set forth below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

    

Nine Months Ended

 

 

 

September 30, 

    

September 30, 

 

 

    

2016

    

2015

    

2016

    

2015

  

Holt property royalty obligation

 

$

(19)

 

$

17

    

$

(72)

 

$

34

 

Batu Hijau operations

 

 

148

 

 

109

    

 

424

 

 

342

 

Loss on classification as held for sale

 

 

(577)

 

 

 —

    

 

(577)

 

 

 —

 

Net income (loss) from discontinued operations, net of tax

 

$

(448)

 

$

126

    

$

(225)

 

$

376

 

 

The Batu Hijau Transaction

 

On June 30, 2016, Nusa Tenggara Partnership B.V. (owned 56.25% by the Company and 43.75% by Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation) entered into a binding share sale and purchase agreement with PT Amman Mineral Internasional (“PTAMI”) to sell its 56% ownership interest in PTNNT, which operates the Batu Hijau copper and gold mine in Indonesia. In addition, NVL (USA) Limited (“NVL”), a wholly owned subsidiary of the Company, (i) entered into a binding agreement to sell a loan made to PT Pukuafu Indah (“PTPI”), secured by PTPI’s 17.8% interest in PTNNT, to PTAMI, and (ii) consented to PT Indonesia Masabaga Investama (“PTIMI”) selling its 2.2% interest in PTNNT to PTAMI with sale proceeds applied toward repayment of an NVL loan to PTIMI. Through these transactions, Newmont will effectively sell its 48.5% economic interest in PTNNT to PTAMI and will have no remaining interest.

 

The sales proceeds to be received by the Company for its 48.5% economic interest in PTNNT includes $920 in cash attributable to Newmont to be received at closing, as well as contingent payments totaling up to $403 attributable to Newmont. The contingent payments include (i) a Metal Price Upside deferred payment of up to $133 attributable to Newmont, (ii) an Elang Development deferred payment of $118 attributable to Newmont and (iii) a Contingent Payment of up to $152 attributable to Newmont. The contingent payment amounts are determined based on certain metal price, shipment or project development criteria, as described below.

 

The Metal Price Upside contingent payment of up to $133 attributable to Newmont is payable for any quarter in which the London Metal Exchange (“LME”) quarterly average copper price exceeds $3.75 per pound. It is calculated as 30% of the product of (i) the difference between the LME quarterly average copper price and $3.75 and (ii) 96.5% of the total pounds of copper contained in shipments of mineral products mined or produced from Batu Hijau that arrived in a buyers’ or customers’ designated port for delivery during the previous quarter. The Elang Development deferred payment totaling $118 attributable to Newmont is payable no later than the first anniversary of the first shipment of any form of saleable copper, gold or silver product produced from the Elang development area. The Contingent Payment of up to $152 attributable to Newmont is payable (i) as a payment of $76 attributable to Newmont if in any year after 2022 in which there is production from Phase 7 of the Batu Hijau mine and the LME annual average copper price is $2.75 or more per pound and (ii) if the full Contingent Payment amount has not already been paid, a payment of $76 attributable to Newmont in any year in which the LME annual average copper price in respect to such year is $3.25 or more per pound and after both the second anniversary of the first shipment of concentrate (or any other form of saleable copper, gold or silver product) produced from the Elang development area and December 31, 2023. The Company has

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

considered the Contingent Payment and the Elang Development deferred payment deeds to be derivatives under ASC 815 and they will be recorded at fair value upon completion of the sale.

 

The sale of the Company’s economic interest in PTNNT is subject to customary representations, warranties and covenants by the parties, and is subject to various closing conditions. The following conditions precedent remain outstanding as of September 30, 2016:

 

·

Valid export licensing at closing. As required by the Indonesian government, PTNNT must hold a valid export license at closing. Newmont’s current export permit is set to expire during November 2016.

 

·

Closing of PTMDB’s sale of its stake in PTNNT. PT Multi Daerah Bersaing (“PTMDB”) is required to concurrently close the sale of their 24% interest in PTNNT to PTAMI, which is contingent on the restructuring of PTMDB loans. During the third quarter of 2016, the negotiations have progressed and as of September 30, 2016, it is the Company’s expectation that the sale of the shares of PTMDB will close.

 

·

The absence of any material adverse events. Material adverse events include (i) an event that causes significant interruption of mining or milling operations of PTNNT for three months or longer, (ii) laws or regulations that prevent PTNNT from exporting its production outside of Indonesia for three months or longer, (iii) the revocation or termination of PTNNT’s mineral rights and mining concessions with the Republic of Indonesia and (iv) any revocation, termination or suspension of PTNNT’s export license. As of September 30, 2016, no material adverse events have occurred.

 

·

The satisfaction or waiver of the conditions precedent in other transaction and finance-related agreements. The sale of the PTIMI’s 2.2% stake in PTNNT is expected to be completed without further complications.

 

The following conditions precedent, outstanding as of June 30, 2016, were substantially resolved during the third quarter of 2016:

 

·

Obtaining required Government approvals. During the third quarter, the Government of Indonesia Ministry of Energy and Mineral Resources and Investment Coordinating Board approved the sale of PTNNT shares to PTAMI as required under the Sale and Purchase Agreement.

 

·

Obtaining approval of PTNNT shareholders. PTNNT shareholders were required to approve the transfer of shares in PTNNT to PTAMI and to appoint directors nominated by PTAMI. Shareholder approval was obtained and directors were nominated by PTAMI on September 30, 2016, satisfying this condition.

 

·

Resolution of certain tax matters pertaining to PTNNT shareholder PTPI. Prior to the third quarter of 2016, the shareholders of PTPI refused to engage with the Company to negotiate a resolution to the tax issues associated with their interest in PTNNT. These matters have since been substantially resolved. While some minor items remain outstanding related to the PTPI tax issue, the Company believes that those issues are within the control of the Company and can be resolved prior to closing.

 

As described above, certain closing conditions remain outstanding and while the Company expects it is probable that those conditions will be successfully satisfied and the transaction will close in the fourth quarter of 2016, some of the remaining closing conditions are outside the control of the Company, and if not satisfied could result in the sale of PTNNT not being completed.

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Based on the agreement to sell the economic interest in PTNNT, the Company evaluated the criteria under ASC 360 for classifying an asset as held for sale and concluded that as of September 30, 2016, PTNNT meets the criteria and has been presented as a discontinued operation. The Batu Hijau mine was previously included in the Asia Pacific operating segment. Newmont consolidates PTNNT as the primary beneficiary in the variable interest entity.

 

As a result of classifying PTNNT as held for sale as of September 30, 2016, and in accordance with ASC 360, the Company compared the estimated fair value of the PTNNT disposal group to its carrying value and determined that the carrying value exceeded the fair value. Consequently the Company recorded a charge to Loss on classification as held for sale of $577 for the quarter ended September 30, 2016. The estimated fair value used in the determination of the Loss on classification as held for sale was determined using the estimated gross cash proceeds of $920, less selling costs and certain contingent payments deemed to be derivatives. The selling costs and estimated value of the derivatives are not expected to be material.

 

Net income (loss) from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations that relates to Batu Hijau consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

    

2016

    

2015

    

2016

    

2015

  

Sales

 

$

469

 

$

473

 

$

1,408

 

$

1,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs applicable to sales (1) 

 

 

184

 

 

220

 

 

571

 

 

589

 

Depreciation and amortization

 

 

36

 

 

39

 

 

115

 

 

104

 

Reclamation and remediation

 

 

4

 

 

3

 

 

13

 

 

9

 

Advanced projects, research and development

 

 

1

 

 

1

 

 

2

 

 

6

 

General and administrative 

 

 

2

 

 

1

 

 

8

 

 

5

 

Other expense (income), net

 

 

(1)

 

 

3

 

 

2

 

 

9

 

 

 

 

226

 

 

267

 

 

711

 

 

722

 

Interest expense, net

 

 

(5)

 

 

(7)

 

 

(15)

 

 

(22)

 

Income (loss) before income and mining tax and other items

 

 

238

 

 

199

 

 

682

 

 

536

 

Income and mining tax benefit (expense)

 

 

(90)

 

 

(90)

 

 

(258)

 

 

(194)

 

Net income (loss) from discontinued operations

 

 

148

 

 

109

 

 

424

 

 

342

 

Loss on classification as held for sale, net of tax

 

 

(577)

 

 

 —

 

 

(577)

 

 

 —

 

 

 

 

(429)

 

 

109

 

 

(153)

 

 

342

 

Net loss (income) attributable to noncontrolling interests, net of tax

 

 

(79)

 

 

(66)

 

 

(229)

 

 

(177)

 

Net income (loss) from discontinued operations attributable to Newmont stockholders 

 

$

(508)

 

$

43

 

$

(382)

 

$

165

 


(1)

Excludes Depreciation and amortization and Reclamation and remediation. 

 

The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss).

 

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Cash flows from Batu Hijau consist of the following:

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30, 

 

 

    

2016

    

2015

  

Net cash provided by operating activities

 

$

834

 

$

578

 

Net cash used in investing activities

 

 

(41)

 

 

(52)

 

Net cash used in financing activities

 

 

(319)

 

 

(164)

 

Increase in cash and equivalents in assets held for sale

 

$

474

 

$

362

 

 

The carrying amounts of Batu Hijau’s (i) major classes of assets and liabilities, which are presented as held for sale, and (ii) non-controlling interests in the Condensed Consolidated Balance Sheets, are as follows:

 

 

 

 

 

 

 

 

 

 

 

At September 30, 

 

At December 31, 

 

 

    

2016

    

2015

  

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

893

 

$

419

 

Trade receivables

 

 

95

 

 

179

 

Inventories

 

 

170

 

 

149

 

Property, plant and mine development, net

 

 

994

 

 

 —

 

Stockpiles and ore on leach pads

 

 

1,114

 

 

114

 

Other current assets (1)

 

 

435

 

 

99

 

 

 

 

3,701

 

 

960

 

Loss recognized on classification as held for sale

 

 

(577)

 

 

 —

 

Current assets held for sale

 

$

3,124

 

$

960

 

 

 

 

 

 

 

 

 

Property, plant and mine development, net

 

$

 —

 

$

1,093

 

Stockpiles and ore on leach pads

 

 

 —

 

 

1,104

 

Other non-current assets

 

 

 —

 

 

285

 

Non-current assets held for sale

 

$

 —

 

$

2,482

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Debt

 

$

1

 

$

140

 

Accounts payable

 

 

43

 

 

81

 

Employee-related benefits

 

 

49

 

 

15

 

Income and mining taxes payable

 

 

97

 

 

 —

 

Reclamation and remediation liabilities

 

 

261

 

 

 —

 

Deferred income tax liabilities

 

 

385

 

 

 —

 

Other current liabilities

 

 

38

 

 

53

 

Current liabilities held for sale

 

$

874

 

$

289

 

 

 

 

 

 

 

 

 

Debt

 

$

 —

 

$

187

 

Reclamation and remediation liabilities

 

 

 —

 

 

245

 

Deferred income tax liabilities

 

 

 —

 

 

296

 

Employee-related benefits

 

 

 —

 

 

28

 

Non-current liabilities held for sale

 

$

 —

 

$

756

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

$

1,345

 

$

1,135

 


(1)

Other current assets include income tax receivables, other accounts receivable, prepaid assets, restricted assets and other current assets. In addition, there was $29 and $15 in Other current assets for settling reclamation obligations at September 30, 2016 and December 31, 2015, respectively.

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

 

During the second quarter and third quarter, the Company paid $140 and $190, respectively, extinguishing the PTNNT revolving credit facility.

 

The Holt Royalty Obligation

 

Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Inc. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a sliding scale royalty on production from the Holt property, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the sliding scale royalty, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the sliding scale royalty and it will increase or decrease with changes in gold price, discount rate and gold production scenarios. At September 30, 2016 and December 31, 2015, the estimated fair value of the Holt sliding scale royalty was $225 and $129, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations, net of tax. During the three and nine months ended September 30, 2016, the Company recorded a loss of $19 (net of a tax benefit of $9) and a loss of $72 (net of a tax benefit of $32), respectively. During the three and nine months ended September 30, 2015, the Company recorded a gain of $17 (net of tax expense of $7) and a gain of $34 (net of tax expense of $15), respectively. During the nine months ended September 30, 2016 and 2015, the Company paid $8 and $9, respectively, related to the royalty.

 

NOTE 4    BUSINESS ACQUISITION

 

On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and leaching facilities. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821, plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. In connection with the acquisition, the Company incurred acquisition costs of $0 and $3, for the three and nine months ended September 30, 2016, which were recorded in Other expense, net. The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided.

 

During the second quarter of 2016, the final valuation of acquired assets and liabilities assumed was completed. There were no adjustments to the purchase price allocation since December 31, 2015. For further discussion of the CC&V acquisition, refer to Note 3 to the Consolidated Financial Statements for the year ended December 31, 2015 filed February 17, 2016 on Form 10-K.

 

 

 

NOTE 5     SEGMENT INFORMATION

 

The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Asia Pacific and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and has chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate

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NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

expenses, interest (except project-specific interest) or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other. Although they are not required to be included in this footnote, they are provided for reconciliation purposes.

 

Segment results for the prior periods have been retrospectively revised to reflect the following changes:

 

·

In the first quarter of 2016, Merian was moved from Corporate and Other to the South America reportable segment as a result of the mine being included in the operating results and resource allocation of the South America segment.

 

·

In the second quarter of 2016, Long Canyon was moved from Other North America to its own line item to reflect progression of the project and how it is being reported internally.

 

·

In the third quarter of 2016, the Company concluded that Batu Hijau meets the criteria to be treated as held for sale. Batu Hijau has been removed from the Asia Pacific region and is presented as a discontinued operation in our Condensed Consolidated Financial Statements. For additional information regarding our discontinued operations, see Note 3.  

 

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Table of Contents

NEWMONT MINING CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars in millions, except per share, per ounce and per pound amounts)

Unless otherwise noted, we present only the reportable segments of our continuing operations in the tables below. The financial information relating to the Company’s segments is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Income (Loss)