Business Segments (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from External Customers by Products and Services

Product Revenues. FCX’s revenues attributable to the products it sold for the second quarters and first six months of 2021 and 2020 follow (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Copper:
Concentrate	$	2,076	$	749	$	3,785	$	1,598
Cathode	1,535		1,124		2,769		1,961
Rod and other refined copper products	833		303		1,517		845
Purchased coppera	310		166		528		401
Gold	597		341		1,115		611
Molybdenum	288		194		532		437
Otherb	203		115		456		272
Adjustments to revenues:
Treatment charges	(101)		(75)		(198)		(155)
Royalty expensec	(82)		(26)		(145)		(46)
Export dutiesd	(44)		(16)		(73)		(20)
Revenues from contracts with customers	5,615		2,875		10,286		5,904
Embedded derivativese	133		179		312		(52)
Total consolidated revenues	$	5,748	$	3,054	$	10,598	$	5,852

a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

b.Primarily includes revenues associated with cobalt and silver.

c.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

d.Reflects PT-FI export duties.

e.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Schedule of financial information by business segment

Financial Information by Business Segment



(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			nations			Total
Three Months Ended June 30, 2021
Revenues:
Unaffiliated customers	$	57	$	55	$	112		$	825		$	188	$	1,013	$	1,753	a	$	—	$	1,689	$	794		$	387	b	$	5,748
Intersegment	721		1,021		1,742			120			—		120		56			89		6		—			(2,013)			—
Production and delivery	351		574		925			494		c	106		600		528			56		1,691		775			(1,508)		d	3,067
Depreciation, depletion and amortization	40		61		101			82			12		94		247			17		1		8			15			483


Selling, general and administrative expenses	1		—		1			2			—		2		27			—		—		5			52			87
Mining exploration and research expenses	—		—		—			—			—		—		—			—		—		—			14			14
Environmental obligations and shutdown costs	1		—		1			—			—		—		—			—		—		—			32			33
Net gain on sales of assets	—		—		—			—			—		—		—			—		—		—			(3)			(3)
Operating income (loss)	385		441		826			367			70		437		1,007			16		3		6			(228)			2,067

Interest expense, net	—		—		—			12			—		12		6			—		—		2			128			148
Provision for income taxes	—		—		—			145			17		162		404			—		—		—			37			603
Total assets at June 30, 2021	2,635		5,288		7,923			8,795			1,795		10,590		18,461			1,740		271		1,117			5,334			45,436
Capital expenditures	22		47		69			23			3		26		314			2		—		7			15			433

Three Months Ended June 30, 2020
Revenues:
Unaffiliated customers	$	20	$	16	$	36		$	471		$	106	$	577	$	683	a	$	—	$	1,106	$	464		$	188	b	$	3,054
Intersegment	447		505		952		e	52			—		52		35			58		8		2			(1,107)			—
Production and delivery	348		439		787			334			104		438		378			61		1,138		446			(854)			2,394
Depreciation, depletion and amortization	43		46		89			88			14		102		124			15		6		7			15			358

Metals inventory adjustments	—		(89)		(89)			—			(57)		(57)		—			1		1		—			5			(139)
Selling, general and administrative expenses	—		1		1			1			—		1		28			—		—		5			56			91
Mining exploration and research expenses	—		1		1			—			—		—		—			—		—		—			17			18
Environmental obligations and shutdown costs	—		—		—			—			—		—		—			—		—		—			11			11

Operating income (loss)	76		123		199			100			45		145		188			(19)		(31)		8			(169)			321

Interest expense, net	1		—		1			20			—		20		1			—		—		1			92			115
Provision for (benefit from) income taxes	—		—		—			29			16		45		78			—		—		1			(28)			96
Total assets at June 30, 2020	2,697		5,198		7,895			8,515			1,631		10,146		16,848			1,777		259		726			2,579			40,230
Capital expenditures	27		121		148			31			20		51		308			4		2		5			9			527

a.Includes PT-FI's sales to PT Smelting totaling $756 million in second-quarter 2021 and $433 million in second-quarter 2020.

b.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.

c.Includes nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde for agreements reached with 57 percent of its hourly employees.

d.Includes charges associated with the major maintenance turnaround at the Miami smelter totaling $19 million.

e.Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.


(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		nations			Total
Six months ended June 30, 2021
Revenues:
Unaffiliated customers	$	61	$	83	$	144		$	1,742		$	363	$	2,105	$	3,136	a	$	—	$	2,998	$	1,481	$	734	b	$	10,598
Intersegment	1,285		1,763		3,048			165			—		165		108			159		13		—		(3,493)			—
Production and delivery	620		1,054		1,674			930		c	209		1,139		983			113		3,007		1,448		(2,511)		d	5,853
Depreciation, depletion and amortization	74		107		181			171			24		195		446			32		2		15		31			902
Metals inventory adjustments	—		—		—			—			—		—		—			1		—		—		—			1
Selling, general and administrative expenses	1		1		2			4			—		4		53			—		—		12		116			187
Mining exploration and research expenses	—		—		—			—			—		—		—			—		—		—		21			21
Environmental obligations and shutdown costs	1		—		1			—			—		—		—			—		—		—		37			38

Net gain on sales of assets	—		—		—			—			—		—		—			—		—		—		(3)			(3)
Operating income (loss)	650		684		1,334			802			130		932		1,762			13		2		6		(450)			3,599

Interest expense, net	—		—		—			25			—		25		7			—		—		3		258			293
Provision for (benefit from) income taxes	—		—		—			318			38		356		719			—		—		—		(29)			1,046

Capital expenditures	32		63		95			43			4		47		624			3		1		13		20			803

Six months ended June 30, 2020
Revenues:
Unaffiliated customers	$	22	$	23	$	45		$	847		$	204	$	1,051	$	1,128	a	$	—	$	2,221	$	893	$	514	b	$	5,852
Intersegment	889		1,039		1,928		e	90			—		90		35			129		16		13		(2,211)			—
Production and delivery	697		950		1,647			758			214		972		721			127		2,257		857		(1,642)			4,939
Depreciation, depletion and amortization	87		94		181			181			29		210		225			31		8		14		30			699

Metals inventory adjustments	4		52		56			—			3		3		—			5		1		—		18			83
Selling, general and administrative expenses	1		1		2			3			—		3		56			—		—		10		130			201
Mining exploration and research expenses	—		2		2			—			—		—		—			—		—		—		32			34
Environmental obligations and shutdown costs	—		—		—			—			—		—		—			—		1		—		36			37

Net loss on sales of assets	—		—		—			—			—		—		—			—		—		—		11			11
Operating income (loss)	122		(37)		85			(5)			(42)		(47)		161			(34)		(30)		25		(312)			(152)

Interest expense, net	2		—		2			48			—		48		2			—		—		4		186			242
(Benefit from) provision for income taxes	—		—		—			(23)			(10)		(33)		90			—		—		1		(22)			36

Capital expenditures	71		261		332			90			35		125		634			11		4		11		20			1,137

a.Includes PT-FI's sales to PT Smelting totaling $1.5 billion for the first six months of 2021 and $813 million for the first six months of 2020.

b.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.

c.Includes nonrecurring charges totaling $69 million associated with labor-related charges at Cerro Verde for agreements reached with 57 percent of its hourly employees.

d.Includes charges associated with the major maintenance turnaround at the Miami smelter totaling $87 million.

e.Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.