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Business Segments (Tables)
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Schedule of financial information by business segment
Financial Information by Business Segments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
 
North America Copper Mines
 
South America
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nationsa
 
Total
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
57

 
$
40

 
$
97

 
$
850

 
$
109

 
$
959

 
$
1,121

b 
$

 
$
1,137

 
$
554

 
$
442

c 
$
4,310

 
Intersegment
460

 
548

 
1,008

 
64

 

 
64

 

 
65

 
8

 
1

 
(1,146
)
 

 
Production and delivery
244

 
414

 
658

 
683

d 
76

 
759

 
406

 
58

 
1,141

 
533

 
(753
)
 
2,802

 
Depreciation, depletion and amortization
42

 
54

 
96

 
116

 
18

 
134

 
136

 
20

 
2

 
7

 
23

 
418

 
Selling, general and administrative expenses
1

 
1

 
2

 
2

 

 
2

 
32

 

 

 
4

 
66

 
106

 
Mining exploration and research expenses

 

 

 

 

 

 

 

 

 

 
27

 
27

 
Environmental obligations and shutdown costs

 

 

 

 

 

 

 

 

 

 
73

 
73

 
Net gain on sales of assets

 

 

 

 

 

 

 

 

 

 
(33
)
 
(33
)
 
Operating income (loss)
230

 
119

 
349

 
113

 
15

 
128

 
547

 
(13
)
 
2

 
11

 
(107
)
 
917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 

 
1

 
156

d 

 
156

 
1

 

 

 
5

 
141

 
304

 
Provision for income taxes

 

 

 
134

d 
5

 
139

 
233

 

 

 
1

 
14

 
387

 
Total assets at September 30, 2017
2,844

 
4,223

 
7,067

 
8,851

 
1,595

 
10,446

 
11,100

 
1,885

 
264

 
751

 
5,814

e 
37,327

 
Capital expenditures
26

 
13

 
39

 
17

 
3

 
20

 
206

 
2

 
1

 
5

 
41

 
314

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
115

 
$
112

 
$
227

 
$
505

 
$
112

 
$
617

 
$
984

b 
$

 
$
930

 
$
445

 
$
674

c 
$
3,877

 
Intersegment
358

 
499

 
857

 
54

 

 
54

 
2

 
46

 
7

 

 
(966
)
 

 
Production and delivery
275

 
464

 
739

 
333

 
91

 
424

 
478

 
57

 
931

 
416

 
(516
)
f 
2,529

 
Depreciation, depletion and amortization
51

 
78

 
129

 
109

 
25

 
134

 
110

 
15

 
2

 
7

 
246

 
643

 
Impairment of oil and gas properties

 

 

 

 

 

 

 

 

 

 
239

 
239

 
Selling, general and administrative expenses
1

 

 
1

 
1

 
1

 
2

 
24

 

 

 
5

 
78

 
110

 
Mining exploration and research expenses

 
1

 
1

 

 

 

 

 

 

 

 
12

 
13

 
Environmental obligations and shutdown costs

 

 

 

 

 

 

 

 

 

 
(3
)
 
(3
)
 
Net loss (gain) on sales of assets
1

 

 
1

 

 

 

 

 

 

 

 
(14
)
 
(13
)
 
Operating income (loss)
145

 
68

 
213

 
116

 
(5
)
 
111

 
374

 
(26
)
 
4

 
17

 
(334
)
 
359

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 

 
1

 
21

 

 
21

 

 

 

 
3

 
162

 
187

 
Provision for (benefit from) income taxes

 

 

 
36

 
(4
)
 
32

 
158

 

 

 
4

 
(308
)
 
(114
)
 
Total assets at September 30, 2016
2,881

 
4,540

 
7,421

 
9,139

 
1,551

 
10,690

 
9,718

 
1,953

 
238

 
565

 
10,815

e 
41,400

 
Capital expenditures
6

 
5

 
11

 
38

 
1

 
39

 
253

 
1

 

 
5

 
185

g 
494

 

a.
Includes U.S. oil and gas operations, which were previously a reportable segment.
b.
Includes PT-FI's sales to PT Smelting totaling $652 million in third-quarter 2017 and $348 million in third-quarter 2016.
c.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
d.
Includes net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e.
Includes assets held for sale totaling $549 million at September 30, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project, and $5.1 billion at September 30, 2016, which also included discontinued operations. Also includes assets associated with oil and gas operations of $272 million at September 30, 2017, and $3.5 billion at September 30, 2016.
f.
Includes net charges for oil and gas operations totaling $49 million, primarily for idle rig costs, inventory adjustments and the termination of the Morocco well commitment.
g.
Includes $160 million associated with oil and gas operations and $15 million associated with discontinued operations.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nationsa
 
Total
 
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
168

 
$
122

 
$
290

 
$
2,057

 
$
332

 
$
2,389

 
$
2,720

b 
$

 
$
3,290

 
$
1,412

 
$
1,261

c 
$
11,362

 
Intersegment
1,354

 
1,704

 
3,058

 
237

 

 
237

 

 
199

 
22

 
1

 
(3,517
)
 

 
Production and delivery
772

 
1,284

 
2,056

 
1,450

d 
245

 
1,695

 
1,233

e 
169

 
3,299

 
1,369

 
(2,324
)
 
7,497

 
Depreciation, depletion and amortization
138

 
192

 
330

 
332

 
60

 
392

 
372

 
58

 
7

 
21

 
77

 
1,257

 
Selling, general and administrative expenses
2

 
2

 
4

 
7

 

 
7

 
92

e 

 

 
13

 
250

 
366

 
Mining exploration and research expenses

 
2

 
2

 

 

 

 

 

 

 

 
59

 
61

 
Environmental obligations and shutdown costs

 

 

 

 

 

 

 

 

 

 
81

 
81

 
Net gain on sales of assets

 

 

 

 

 

 

 

 

 

 
(66
)
 
(66
)
 
Operating income (loss)
610

 
346

 
956

 
505

 
27

 
532

 
1,023

 
(28
)
 
6

 
10

 
(333
)
 
2,166

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
1

 
3

 
187

d 

 
187

 
1

 

 

 
13

 
429

 
633

 
Provision for income taxes

 

 

 
288

d 
10

 
298

 
435

 

 

 
4

 
10

 
747

 
Capital expenditures
78

 
28

 
106

 
60

 
5

 
65

 
663

 
4

 
3

 
30

 
149

 
1,020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
356

 
$
211

 
$
567

 
$
1,485

 
$
379

 
$
1,864

 
$
2,014

b 
$

 
$
2,820

 
$
1,360


$
1,828

c 
$
10,453

 
Intersegment
1,119

 
1,594

 
2,713

 
155

 

 
155

 
59

 
136

 
22

 
3

 
(3,088
)
 

 
Production and delivery
913

 
1,340

 
2,253

 
927

 
313

 
1,240

 
1,228

 
159

 
2,820

 
1,275

 
(991
)
f 
7,984

 
Depreciation, depletion and amortization
170

 
237

 
407

 
319

 
83

 
402

 
284

 
51

 
7

 
22

 
764

 
1,937

 
Impairment of oil and gas properties


 

 

 

 

 

 

 

 

 

 
4,317


4,317

 
Selling, general and administrative expenses
2

 
2

 
4

 
5

 
1

 
6

 
60

 

 

 
13

 
325

f 
408

 
Mining exploration and research expenses

 
2

 
2

 

 

 

 

 

 

 

 
44

 
46

 
Environmental obligations and shutdown costs

 

 

 

 

 

 

 

 

 

 
18

 
18

 
Net gain on sales of assets

(576
)
 

 
(576
)
 

 

 

 

 

 

 

 
(186
)
 
(762
)
 
Operating income (loss)
966

 
224

 
1,190

 
389

 
(18
)
 
371

 
501

 
(74
)
 
15

 
53

 
(5,551
)
 
(3,495
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
1

 
3

 
63

 

 
63

 

 

 

 
11

 
497

 
574

 
Provision for (benefit from) income taxes

 

 

 
126

 
(12
)
 
114

 
212

 

 

 
5

 
(252
)
 
79

 
Capital expenditures
71

 
16

 
87

 
329

 
3

 
332

 
706

 
2

 
1

 
12

 
1,169

g 
2,309

 

a.
Includes U.S. oil and gas operations, which were previously a reportable segment.
b.
Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2017 and $912 million for the first nine months of 2016.
c.
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
d.
Includes net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e.
Includes net charges of $112 million in production and delivery costs and $5 million in selling, general and administrative expenses for PT-FI workforce reductions.
f.
Includes net charges for oil and gas operations of $942 million in production and delivery costs, primarily for drillship settlements/idle rig costs and inventory adjustments and $38 million for net restructuring charges.
g.
Includes $1.1 billion associated with oil and gas operations and $70 million associated with discontinued operations.