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SEGMENT AND RELATED INFORMATION:
 6 Months Ended
Jun. 30, 2011
SEGMENT AND RELATED INFORMATION:  
SEGMENT AND RELATED INFORMATION:

NOTE 14 — SEGMENT AND RELATED INFORMATION:

 

Company management views Southern Copper as having three operating segments and manages on the basis of these segments.  The segments identified by the Company are: the Peruvian operations, the Mexican open-pit operations and the Mexican underground mining operations segment identified as the IMMSA unit.

 

Financial information is regularly prepared for each of the three segments and the results of the Company’s operations are regularly reported to the Chief Operating Officer on the segment basis.  The Chief Operating Officer of the Company focuses on operating income and on total assets as measures of performance to evaluate different segments and to make decisions to allocate resources to the reported segments.  These are common measures in the mining industry.

 

Financial information relating to Southern Copper’s segments is as follows:

 

 

 

Three Months Ended June 30, 2011

 

 

 

(in millions)

 

 

 

Mexican
Open-pit

 

Mexican
IMMSA
Unit

 

Peruvian
Operations

 

Corporate,
other and
eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales outside of segments

 

$

900.8

 

$

108.0

 

$

792.7

 

 

 

$

1,801.5

 

Intersegment sales

 

 

 

35.5

 

 

 

$

(35.5

)

—

 

Cost of sales (exclusive of depreciation, amortization and depletion)

 

296.5

 

76.0

 

362.8

 

(39.3

)

696.0

 

Selling, general and administrative

 

8.6

 

3.7

 

11.8

 

1.7

 

25.8

 

Depreciation, amortization and depletion

 

32.8

 

5.9

 

34.8

 

(0.6

)

72.9

 

Exploration

 

0.8

 

4.8

 

2.5

 

—

 

8.1

 

Operating income

 

$

562.1

 

$

53.1

 

$

380.8

 

$

2.7

 

998.7

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest, net

 

 

 

 

 

 

 

 

 

(43.4

)

Gain on sale of property

 

 

 

 

 

 

 

 

 

6.4

 

Other income (expense)

 

 

 

 

 

 

 

 

 

0.3

 

Income taxes

 

 

 

 

 

 

 

 

 

(301.9

)

Non-controlling interest

 

 

 

 

 

 

 

 

 

(2.1

)

Net income attributable to SCC

 

 

 

 

 

 

 

 

 

$

658.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

$

61.5

 

$

8.5

 

$

41.1

 

$

(0.4

)

$

110.7

 

Property, net

 

$

1,627.8

 

$

301.6

 

$

2,150.3

 

$

50.4

 

$

4,130.1

 

Total assets

 

$

2,892.8

 

$

744.0

 

$

2,844.7

 

$

1,312.6

 

$

7,794.1

 

 

 

 

Three Months Ended June 30, 2010

 

 

 

(in millions)

 

 

 

Mexican
Open-pit

 

Mexican
IMMSA
Unit

 

Peruvian
Operations

 

Corporate,
other and
eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales outside of segments

 

$

337.3

 

$

87.5

 

$

738.2

 

$

10.2

 

$

1,173.2

 

Intersegment sales

 

7.9

 

35.8

 

—

 

(43.7

)

—

 

Cost of sales (exclusive of depreciation, amortization and depletion)

 

186.4

 

78.8

 

303.0

 

(36.7

)

531.5

 

Selling, general and administrative

 

7.7

 

3.4

 

9.4

 

1.4

 

21.9

 

Depreciation, amortization and depletion

 

30.2

 

5.4

 

32.6

 

1.1

 

69.3

 

Exploration

 

1.2

 

3.5

 

5.4

 

—

 

10.1

 

Operating income

 

$

119.7

 

$

32.2

 

$

387.8

 

$

0.7

 

540.4

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest, net

 

 

 

 

 

 

 

 

 

(43.7

)

Other income (expense)

 

 

 

 

 

 

 

 

 

(6.5

)

Income taxes

 

 

 

 

 

 

 

 

 

(174.9

)

Non-controlling interest

 

 

 

 

 

 

 

 

 

(1.9

)

Net income attributable to SCC

 

 

 

 

 

 

 

 

 

$

313.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

$

10.7

 

$

4.3

 

$

77.3

 

$

0.6

 

$

92.9

 

Property, net

 

$

1,567.4

 

$

274.5

 

$

2,108.2

 

$

61.2

 

$

4,011.3

 

Total assets

 

$

2,295.8

 

$

626.6

 

$

2,912.3

 

$

1,614.8

 

$

7,449.5

 

 

 

 

Six Months Ended June 30, 2011

 

 

 

(in millions)

 

 

 

Mexican
Open-pit

 

Mexican
IMMSA
Unit

 

Peruvian
Operations

 

Corporate,
other and
eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales outside of segments

 

$

1,570.6

 

$

219.1

 

$

1,613.8

 

 

 

$

3,403.5

 

Intersegment sales

 

 

 

66.9

 

 

 

$

(66.9

)

 

 

Cost of sales (exclusive of depreciation, amortization and depletion)

 

527.6

 

143.6

 

800.3

 

(38.7

)

1,432.8

 

Selling, general and administrative

 

16.8

 

7.2

 

24.1

 

2.2

 

50.3

 

Depreciation, amortization and depletion

 

63.5

 

12.2

 

69.0

 

(1.2

)

143.5

 

Exploration

 

1.4

 

8.6

 

5.3

 

0.1

 

15.4

 

Operating income

 

$

961.3

 

$

114.4

 

$

715.1

 

$

(29.3

)

1,761.5

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest, net

 

 

 

 

 

 

 

 

 

(87.3

)

Gain on sale property

 

 

 

 

 

 

 

 

 

6.4

 

Other income (expense)

 

 

 

 

 

 

 

 

 

(0.3

)

Income taxes

 

 

 

 

 

 

 

 

 

(540.0

)

Non-controlling interest

 

 

 

 

 

 

 

 

 

(3.9

)

Net income attributable to SCC

 

 

 

 

 

 

 

 

 

$

1,136.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

$

106.3

 

$

16.3

 

$

60.0

 

$

1.0

 

$

183.6

 

Property, net

 

$

1,627.8

 

$

301.6

 

$

2,150.3

 

$

50.4

 

$

4,130.1

 

Total assets

 

$

2,892.8

 

$

744.0

 

$

2,844.7

 

$

1,312.6

 

$

7,794.1

 

 

 

 

Six Months Ended June 30, 2010

 

 

 

(in millions)

 

 

 

Mexican
Open-pit

 

Mexican
IMMSA
Unit

 

Peruvian
Operations

 

Corporate,
other and
eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales outside of segments

 

$

715.7

 

$

178.7

 

$

1,460.0

 

$

38.2

 

$

2,392.6

 

Intersegment sales

 

29.1

 

87.5

 

—

 

(116.6

)

—

 

Cost of sales (exclusive of depreciation, amortization and depletion)

 

364.3

 

170.1

 

586.4

 

(78.3

)

1,042.5

 

Selling, general and administrative

 

15.2

 

6.6

 

19.9

 

2.0

 

43.7

 

Depreciation, amortization and depletion

 

60.0

 

11.3

 

65.5

 

1.9

 

138.7

 

Exploration

 

2.3

 

7.1

 

9.1

 

—

 

18.5

 

Operating income

 

$

303.0

 

$

71.1

 

$

779.1

 

$

(4.0

)

1,149.2

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest, net

 

 

 

 

 

 

 

 

 

(65.5

)

Other income (expense)

 

 

 

 

 

 

 

 

 

(5.1

)

Income taxes

 

 

 

 

 

 

 

 

 

(378.1

)

Non-controlling interest

 

 

 

 

 

 

 

 

 

(3.9

)

Net income attributable to SCC

 

 

 

 

 

 

 

 

 

$

696.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

 

$

22.9

 

$

10.2

 

$

134.5

 

$

0.7

 

$

168.3

 

Property, net

 

$

1,567.4

 

$

274.5

 

$

2,108.2

 

$

61.2

 

$

4,011.3

 

Total assets

 

$

2,295.8

 

$

626.6

 

$

2,912.3

 

$

1,614.8

 

$

7,449.5