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QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Notes)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Year
 
2019
 
 
 
 
 
 
 
 
 
 
Revenues
$
3,792

 
$
3,546

 
$
3,153

 
$
3,911

 
$
14,402

 
Operating income (loss)
321

 
33

 
(38
)
 
775

 
1,091

 
Net income (loss) from continuing operations
75

 
(74
)
 
(235
)
 
42

 
(192
)
 
Net income from discontinued operations
1

 
—

 
1

 
1

 
3

 
Net income (loss)
76

 
(74
)
 
(234
)
 
43

 
(189
)
 
Net (income) loss attributable to noncontrolling interests
(45
)
 
2

 
27

 
(34
)
 
(50
)
 
Net income (loss) attributable to common stockholders
31

 
(72
)
 
(207
)
 
9

 
(239
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
 
 
Basic
$
0.02

 
$
(0.05
)
 
$
(0.15
)
 
$
—

 
$
(0.17
)
 
Diluted
$
0.02

 
$
(0.05
)
 
$
(0.15
)
 
$
—

 
$
(0.17
)
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
1,451

 
1,451

 
1,452

 
1,452

 
1,451

 
Diluted
1,457

 
1,451

 
1,452

 
1,457

 
1,451

 
 
 
 
 
 
 
 
 
 
 
 

Following summarizes significant items included in FCX’s net income (loss) attributable to common stockholders for the 2019 quarters:
•
Charges at PT-FI totaled $460 million ($379 million to net loss attributable to common stockholders or $0.26 per share), consisting of $266 million in the fourth quarter primarily associated with historical contested tax disputes ($78 million to interest expense, net and $188 million to other expense, net), $166 million in the third quarter recorded in revenues, primarily associated with an unfavorable Indonesia Supreme Court ruling related to PT-FI export duties, and $28 million in the second quarter to production and delivery costs for an adjustment to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
•
Net gains on sales of assets for the year totaled $417 million ($339 million to net loss attributable to common stockholders or $0.23 per share), primarily associated with the sales of FCX’s interest in the lower zone of the Timok exploration project in Serbia and a portion of Freeport Cobalt, most of which was recorded in the fourth quarter. Refer to Note 2 for further discussion.
•
Metals inventory adjustments for the year totaled $179 million ($144 million to net loss attributable to common stockholders or $0.10 per share) and included $59 million in the second quarter, $41 million in the third quarter and $79 million in the fourth quarter. Refer to Note 4 for further discussion.
•
Net adjustments to environmental obligations and related litigation reserves totaled $68 million to operating income and net loss attributable to common stockholders ($0.05 per share) for the year, most of which was recorded in the first quarter ($35 million) and the third quarter ($19 million). Of the charges in the third quarter, $15 million were recorded to production and delivery costs.
•
After-tax net losses on early extinguishment of debt totaled $26 million ($0.02 per share), most of which was recorded in the third quarter. Refer to Note 8 for further discussion.
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Year
 
2018
 
 
 
 
 
 
 
 
 
 
Revenues
$
4,868

 
$
5,168

 
$
4,908

 
$
3,684

 
$
18,628

 
Operating income
1,459

 
1,664

 
1,315

 
316

 
4,754

 
Net income from continuing operations
828

 
1,039

 
668

 
374

 
2,909

 
Net (loss) income from discontinued operations
(11
)
 
(4
)
 
(4
)
 
4

 
(15
)
 
Net income
817

 
1,035

 
664

 
378

 
2,894

 
Net (income) loss attributable to noncontrolling interests
(125
)
 
(166
)
 
(108
)
 
107

 
(292
)
 
Net income attributable to common stockholders
692

 
869

 
556

 
485

 
2,602

 
 
 
 
 
 
 
 
 
 
 
 
Basic net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.48

 
$
0.60

 
$
0.38

 
$
0.33

 
$
1.80

 
Discontinued operations
(0.01
)
 
—

 
—

 
—

 
(0.01
)
 
 
$
0.47

 
$
0.60

 
$
0.38

 
$
0.33

 
$
1.79

 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.48

 
$
0.59

 
$
0.38

 
$
0.33

 
$
1.79

 
Discontinued operations
(0.01
)
 
—

 
—

 
—

 
(0.01
)
 
 
$
0.47

 
$
0.59

 
$
0.38

 
$
0.33

 
$
1.78

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
1,449

 
1,449

 
1,450

 
1,450

 
1,449

 
Diluted
1,458

 
1,458

 
1,458

 
1,457

 
1,458

 
 
 
 
 
 
 
 
 
 
 
 
Following summarizes significant items included in FCX’s net income attributable to common stockholders for the 2018 quarters:
•
Net charges at Cerro Verde related to Peru government claims for disputed royalties totaled $195 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $14 million to production and delivery costs, $370 million to interest expense and $22 million to other expense, net), most of which was recorded in the fourth quarter. Refer to Note 12 for further discussion.
•
Net charges at PT-FI totaled $223 million ($110 million to net income attributable to common stockholders or $0.08 per share) consisting of charges to production and delivery of $69 million for surface water tax disputes with the local regional tax authority in Papua, Indonesia, $32 million for assessments of prior period permit fees with the MOEF, $72 million for disputed payroll withholding taxes for prior years and other tax settlements and $62 million to write-off certain previously capitalized project costs for the new smelter in Indonesia in fourth quarter, partly offset by inventory adjustments of $12 million recorded in second quarter. The fourth quarter also included $43 million of favorable inventory adjustments at PT-FI related to prior 2018 quarterly periods.
•
Net charges at Cerro Verde related to its new three-year collective bargaining agreement totaled $69 million ($22 million to net income attributable to common stockholders or $0.02 per share) for the year, which was recorded in the third quarter.
•
Net adjustments to environmental obligations and related litigation reserves totaled $57 million to operating income and net income attributable to common stockholders ($0.04 per share) for the year, most of which was recorded in the second quarter.
•
Net gains on sales of assets for the year totaled $208 million to operating income and net income attributable to common stockholders ($0.14 per share), mostly associated with adjustments to assets no longer classified as held for sale, adjustments to the fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties (which will continue to be adjusted through December 31, 2020) and the sale of Port Carteret (assets held for sale), and included $11 million in the first quarter, $45 million in the second quarter, $70 million in the third quarter and $82 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions.
•
Other net charges for the year totaled $50 million ($30 million to net income attributable to common stockholders or $0.02 per share), including prior period depreciation expense at Freeport Cobalt that was suspended while it was classified as held for sale ($48 million in fourth-quarter and $31 million for the year).
•
Net tax credits for the year totaled $632 million ($574 million net of noncontrolling interest or $0.39 per share), primarily associated with a reduction in PT-FI’s statutory rates in accordance with the IUPK ($504 million) and benefits associated with the Act ($123 million), most of which was recorded in the fourth quarter. Refer to Note 11 for further discussion.