Business Segments



(In millions)	Mining Operations
	North America Copper Mines								South America							Indonesia				Africa
																										Atlantic			Other									Corporate,
																						Molyb-				Copper			Mining									Other
			Other						Cerro		Other											denum		Rod &		Smelting			& Elimi-				Total		Oil & Gas			& Elimi-				FCX
	Morenci		Mines			Total			Verde		Mines			Total		Grasberg				Tenke		Mines		Refining		& Refining			nations				Mining		Operations			nations				Total
Three Months Ended June 30, 2013
Revenues:
Unaffiliated customers	$	38	$	76		$	114		$	311	$	453		$	764	$	471		^a	$	355	$	—	$	1,265	$	583		$	399		^b	$	3,951	$	336	^c	$	1			$	4,288
Intersegment	444		751			1,195			86		101			187		120				10		144		7		4			(1,667		)		—		—			—				—
Production and delivery	301		552			853			189		327			516		563				185		78		1,262		575			(1,273		)		2,759		89			5				2,853
Depreciation, depletion and amortization	37		71			108			37		49			86		58				57		21		2		12			14				358		169			3				530
Selling, general and administrative expenses	1		1			2			2		—			2		27				3		—		—		4			9				47		14			125				186
Mining exploration and research expenses	—		1			1			—		—			—		—				—		—		—		—			60				61		—			3				64
Environmental obligations and shutdown costs	—		(2		)	(2		)	—		—			—		—				—		—		—		—			18				16		—			—				16
Operating income (loss)	143		204			347			169		178			347		(57		)		120		45		8		(4		)	(96		)		710		64			(135		)		639

Interest expense, net	2		1			3			2		—			2		10				2		—		—		4			20				41		26			65				132
Provision for (benefit from) income taxes	—		—			—			59		68			127		(4		)		22		—		—		—			—				145		—			(105		)	^d	40
Total assets at June 30, 2013	2,730		5,768			8,498			6,089		4,110			10,199		7,095				4,887		2,061		287		934			1,100				35,061		26,587			1,509				63,157
Capital expenditures	204		82			286			208		36			244		320				46		42		1		11			23				973		190			10				1,173

Three Months Ended June 30, 2012
Revenues:
Unaffiliated customers	$	105	$	(5	)	$	100		$	332	$	546		$	878	$	875		^a	$	317	$	—	$	1,283	$	686		$	334		^b	$	4,473	$	—		$	2			$	4,475
Intersegment	405		923			1,328			151		(13		)	138		81				5		134		7		9			(1,702		)		—		—			—				—
Production and delivery	279		483			762			185		305			490		586				152		79		1,281		669			(1,398		)		2,621		—			1				2,622
Depreciation, depletion and amortization	33		60			93			33		39			72		53				40		12		3		10			6				289		—			2				291
Selling, general and administrative expenses	1		—			1			—		1			1		27				1		—		—		5			4				39		—			58				97
Mining exploration and research expenses	—		—			—			—		—			—		—				—		—		—		—			73				73		—			—				73
Environmental obligations and shutdown costs	—		—			—			—		—			—		—				—		—		—		—			81				81		—			—				81
Operating income (loss)	197		375			572			265		188			453		290				129		43		6		11			(134		)		1,370		—			(59		)		1,311

Interest expense, net	—		—			—			—		—			—		3				—		—		—		3			21				27		—			16				43
Provision for income taxes	—		—			—			96		55			151		126				22		—		—		—			—				299		—			123				422
Total assets at June 30, 2012	2,135		5,231			7,366			5,472		4,081			9,553		5,883				4,318		1,933		327		990			864				31,234		—			2,455				33,689
Capital expenditures	52		102			154			116		124			240		205				170		55		—		4			12				840		—			—				840


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $291 million in second-quarter 2013 and $368 million in second-quarter 2012.


b.	Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.


c.	Included unfavorable adjustments of $35 million related to oil and gas derivative instruments. For further discussion, refer to Note 9.


d.	Included $183 million of net benefits resulting from second-quarter 2013 oil and gas acquisitions.




(In millions)	Mining Operations
	North America Copper Mines								South America						Indonesia			Africa
																								Atlantic			Other									Corporate,
																				Molyb-				Copper			Mining									Other
			Other						Cerro		Other									denum		Rod &		Smelting			& Elimi-				Total		Oil & Gas			& Elimi-				FCX
	Morenci		Mines			Total			Verde		Mines		Total		Grasberg			Tenke		Mines		Refining		& Refining			nations				Mining		Operations			nations				Total
Six Months Ended June 30, 2013
Revenues:
Unaffiliated customers	$	118	$	121		$	239		$	601	$	1,013	$	1,614	$	1,335	^a	$	793	$	—	$	2,595	$	1,216		$	740		^b	$	8,532	$	336	^c	$	3			$	8,871
Intersegment	880		1,575			2,455			195		156		351		187			10		287		14		10			(3,314		)		—		—			—				—
Production and delivery	598		1,054			1,652			360		631		991		1,126			370		158		2,590		1,203			(2,615		)		5,475		89			8				5,572
Depreciation, depletion and amortization	70		140			210			70		87		157		113			115		41		5		22			22				685		169			5				859
Selling, general and administrative expenses	1		2			3			2		1		3		53			6		—		—		9			18				92		14			193				299
Mining exploration and research expenses	—		1			1			—		—		—		—			—		—		—		—			109				110		—			6				116
Environmental obligations and shutdown costs	—		(6		)	(6		)	—		—		—		—			—		—		—		—			37				31		—			—				31
Operating income (loss)	329		505			834			364		450		814		230			312		88		14		(8		)	(145		)		2,139		64			(209		)		1,994

Interest expense, net	3		1			4			2		—		2		12			2		—		—		8			40				68		26			95				189
Provision for income taxes	—		—			—			123		155		278		116			66		—		—		—			—				460		—			8			^d	468
Capital expenditures	357		186			543			372		98		470		511			103		82		2		19			40				1,770		190			18				1,978

Six Months Ended June 30, 2012
Revenues:
Unaffiliated customers	$	118	$	11		$	129		$	781	$	1,072	$	1,853	$	1,828	^a	$	620	$	—	$	2,581	$	1,390		$	675		^b	$	9,076	$	—		$	4			$	9,080
Intersegment	918		1,835			2,753			278		139		417		78			7		260		13		17			(3,545		)		—		—			—				—
Production and delivery	535		912			1,447			378		575		953		1,101			284		149		2,578		1,364			(2,826		)		5,050		—			—				5,050
Depreciation, depletion and amortization	64		122			186			63		71		134		99			72		23		5		20			15				554		—			4				558
Selling, general and administrative expenses	1		1			2			1		2		3		60			3		—		—		10			8				86		—			115				201
Mining exploration and research expenses	—		—			—			—		—		—		—			—		—		—		—			135				135		—			—				135
Environmental obligations and shutdown costs	—		—			—			—		—		—		—			—		—		—		—			91				91					—				91
Operating income (loss)	436		811			1,247			617		563		1,180		646			268		88		11		13			(293		)		3,160		—			(115		)		3,045

Interest expense, net	—		—			—			5		—		5		3			—		—		—		6			42				56		—			50				106
Provision for income taxes	—		—			—			219		172		391		276			51		—		—		—			—				718		—			195				913
Capital expenditures	96		200			296			185		207		392		387			297		148		3		7			26				1,556		—			(9		)		1,547


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $721 million for the first six months of 2013 and $957 million for the first six months of 2012.


b.	Included revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.


c.	Included unfavorable adjustments of $35 million related to oil and gas derivative instruments. For further discussion, refer to Note 9.


d.	Included $183 million of net benefits resulting from second-quarter 2013 oil and gas acquisitions.