XML 32 R15.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Business Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
FCX has organized its mining operations into four primary divisions – North America copper mines, South America operations, Indonesia operations and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci and Cerro Verde copper mines, the Indonesia operations (including the Grasberg minerals district and the Indonesia smelter projects that are under construction), the Rod & Refining operations and Atlantic Copper Smelting & Refining.

For comparative purposes, the first-quarter 2023 table has been adjusted to conform with the current year presentation, primarily for the combination of the Grasberg minerals districts and the Indonesia smelter projects that are under construction. The Indonesia smelter projects are expected to become fully operational by year-end 2024 and will exclusively receive concentrate from the Grasberg minerals district, which reflect PT-FI’s integrated and dependent operations within Indonesia (i.e., Indonesia operations). FCX's Chief Operating Decision Maker does, and will, make executive management decisions, including resource allocation and mine planning, for the Indonesia operations as a single business segment.

Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on intercompany sales to Atlantic Copper until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.
Product Revenues. FCX’s revenues attributable to the products it sold for the first quarters of 2024 and 2023 follow:

Three Months Ended
March 31,
 20242023
Copper:
Cathode$1,941 $1,511 
Concentrate1,818 1,403 
Rod and other refined copper products953 921 
Purchased coppera
166 204 
Gold1,168 531 
Molybdenum421 592 
Otherb
149 132 
Adjustments to revenues:
PT-FI export dutiesc
(156)(17)
Treatment charges(129)(101)
Royalty expensed
(120)(60)
Revenues from contracts with customers6,211 5,116 
Embedded derivativese
110 273 
Total consolidated revenues$6,321 $5,389 
a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.Primarily includes revenues associated with silver.
c.PT-FI is currently being assessed export duties for copper concentrates at a rate of 7.5% and was paying a 2.5% export duty in first-quarter 2023.
d.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
e.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.
Financial Information by Business Segment
AtlanticCorporate,
North America Copper MinesSouth America OperationsCopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalOperationsMinesRefining& RefiningnationsTotal
Three Months Ended March 31, 2024           
Revenues:            
Unaffiliated customers$37 $40 $77 $826 $208 $1,034 $2,648 $— $1,489 $673 $400 
a
$6,321 
Intersegment540 885 1,425 102 — 102 177 145 10 — (1,859)— 
Production and delivery459 765 1,224 603 170 773 861 

119 1,487 650 (1,270)3,844 
DD&A48 64 112 92 16 108 335 16 1 7 16 595 
Selling, general and administrative expenses
— 1 1 2 — 2 31 — — 9 101 144 
Exploration and research expenses4 8 12 3 1 4 2 — — — 19 37 
Environmental obligations and shutdown costs
— — — — — — — — — — 67 67 
Operating income (loss)66 87 153 228 21 249 1,596 10 11 7 (392)1,634 
Interest expense, net— — — 5 — 5 1 — — 10 73 89 
Other (expense) income, net— (2)(2)11 13 24 38 — — 6 63 129 
Provision for (benefit from) income taxes— — — 91 12 103 409 
b
— — (13)13 512 
Equity in affiliated companies’ net (losses) earnings — — — — — — (2)— — — 2 — 
Net income (loss) attributable to noncontrolling interests— — — 76 14 90 600 
c
— — — (1)689 
Total assets at March 31, 20243,148 6,315 9,463 8,075 1,960 10,035 27,162 1,885 257 1,354 4,042 54,198 
Capital expenditures44 193 237 60 22 82 842 27 5 23 38 1,254 
Three Months Ended March 31, 2023            
Revenues:            
Unaffiliated customers$32 $97 $129 $958 $234 $1,192 $1,199 

$— $1,523 $749 $597 
a
$5,389 
Intersegment593 948 1,541 

244 — 244 169 223 6 7 (2,190)— 
Production and delivery381 781 1,162 620 187 807 338 96 1,527 734 

(1,499)3,165 
DD&A43 60 103 91 16 107 148 20 1 7 13 399 
Selling, general and administrative expenses
— 1 1 2 — 2 28 — — 8 87 126 
Exploration and research expenses3 16 19 1 1 2 — — — — 10 31 
Environmental obligations and shutdown costs
— 21 21 — — — — — — — 46 67 
Operating income (loss)198 166 364 488 30 518 854 107 1 7 (250)1,601 
Interest expense, net— — — 29 — 29 7 — — 6 109 151 
Other (expense) income, net(1)3 2 18 (6)12 32 — (1)(5)48 88 
Provision for (benefit from) income taxes— — — 187 7 194 330 — — — (25)499 
Equity in affiliated companies’ net earnings (losses) — — — — — — 11 — — — (1)10 
Net income (loss) attributable to noncontrolling interests— — — 140 18 158 271 
c
— — — (43)386 
Total assets at March 31, 20233,142 5,668 8,810 8,612 1,871 10,483 23,462 1,707 221 1,152 5,074 50,909 
Capital expenditures56 140 196 61 39 100 772 9 5 12 27 1,121 
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 copper mines and South America operations.
b.Includes a net benefit to income taxes totaling $182 million associated with the closure of PT-FI’s 2021 corporate income tax audit and resolution of the framework for disputed tax matters.
c.Refer to Note 1 for further discussion of the attribution of PT-FI’s net income or loss