NOTE 5 —REVENUE RECOGNITION:

On January 1, 2018, the Company adopted FASB Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Upon adoption by the Company, no cumulative effect adjustment was required to be recognized, as the adoption of the standard has not resulted in a change to the way the Company recognizes its revenue.

The Company’s net sales were $1,841.1 million in the three months ended March 31, 2018, compared to $1,583.9 million in the same period of 2017. The geographic breakdown of the Company’s sales is as follows (in millions):

	Three Months Ended March 31, 2018
	Mexican Open-Pit		Mexican IMMSA Unit		Peruvian Operations		Corporate & Elimination			Consolidated
The Americas:
Mexico	$	368.8	$	111.3	$	—	$	(19.6	)	$	460.5
United States	248.4		5.0		41.5		—			294.9
Peru	—		—		93.5		—			93.5
Brazil	—		12.6		62.9		—			75.5
Chile	—		—		36.0		—			36.0
Other American countries	12.6		0.8		1.0		—			14.4
Europe:
Switzerland	82.3		9.2		43.8		—			135.3
Italy	8.3		5.5		82.2		—			96.0
Spain	44.5		—		—		—			44.5
Other European countries	51.8		4.6		25.7		—			82.1
Asia:
Singapore	143.9		—		132.5		—			276.4
Japan	44.2		—		115.2		—			159.4
Other Asian countries	63.8		0.2		8.6		—			72.6

Total	$	1,068.6	$	149.2	$	642.9	$	(19.6	)	$	1,841.1

	Three Months Ended March 31, 2017
	Mexican Open-Pit		Mexican IMMSA Unit		Peruvian Operations		Corporate & Elimination			Consolidated
The Americas:
Mexico	$	300.5	$	88.5	$	—	$	(20.6	)	$	368.4
United States	266.6		11.7		22.1		—			300.4
Peru	—		0.5		87.4		—			87.9
Brazil	—		11.9		45.5		—			57.4
Chile	—		—		33.2		—			33.2
Other American countries	16.8		1.0		6.2		—			24.0
Europe:
Switzerland	91.3		3.3		2.5		—			97.1
Italy	5.8		5.1		76.7		—			87.6
Spain	30.2		—		—		—			30.2
Other European countries	50.2		7.2		18.7		—			76.1
Asia:
Singapore	141.6		1.5		135.5		—			278.6
Japan	26.4		—		89.1		—			115.5
Other Asian countries	22.8		0.1		4.6		—			27.5

Total	$	952.2	$	130.8	$	521.5	$	(20.6	)	$	1,583.9

The following table presents information regarding the sales value by reporting segment of the Company’s significant products for the three months ended March 31, 2018 and 2017 (in millions):

	Three Months Ended March 31, 2018
	Mexican Open-Pit		Mexican IMMSA Unit		Peruvian Operations		Corporate & Elimination			Consolidated
Copper	$	909.4	$	11.2	$	564.0	$	(11.2	)	$	1,473.4
Molybdenum	91.0		—		45.3		—			136.3
Zinc	—		95.0		—		(0.1		)	94.9
Silver	42.6		20.6		15.4		(7.5		)	71.1
Other	25.6		22.4		18.2		(0.8		)	65.4

Total	$	1,068.6	$	149.2	$	642.9	$	(19.6	)	$	1,841.1

	Three Months Ended March 31, 2017
	Mexican Open-Pit		Mexican IMMSA Unit		Peruvian Operations		Corporate & Elimination			Consolidated
Copper	$	828.2	$	10.9	$	457.6	$	(10.9	)	$	1,285.8
Molybdenum	53.9		—		38.9		—			92.8
Zinc	—		79.3		—		(0.3		)	79.0
Silver	47.5		19.7		14.0		(7.4		)	73.8
Other	22.6		20.9		11.0		(2.0		)	52.5

Total	$	952.2	$	130.8	$	521.5	$	(20.6	)	$	1,583.9

The following table presents information regarding the opening and closing balances of receivables by reporting segment of the Company for the three months ended March 31, 2018 (in millions):

	Mexican Open-Pit		Mexican IMMSA Unit		Peruvian Operations		Corporate & Elimination		Consolidated
As of March 31, 2018:
Trade receivables	$	539.7	$	71.7	$	262.5	$	—	$	873.9
Related parties	58.1		—		—		$	8.0	$	66.1

As of December 31, 2017:
Trade receivables	$	556.2	$	79.7	$	254.7	$	—	$	890.6
Related parties	18.0		—		—		8.1		26.1

Provisionally priced sales: At March 31, 2018, the Company has recorded provisionally priced sales of copper at average forward prices per pound, and molybdenum at the March 31, 2018 market price per pound. These sales are subject to final pricing based on the average monthly London Metal Exchange (“LME”), or New York Commodities Exchange (“COMEX”), copper prices and Dealer Oxide molybdenum prices in the future month of settlement.

Following are the provisionally priced copper and molybdenum sales outstanding at March 31, 2018:

	Sales volume (million lbs.)	Priced at (per pound)		Month of settlement
Copper	45.5	$	3.02	From April 2018 to June 2018
Molybdenum	9.4	$	12.63	From April 2018 to June 2018

The provisional sales price adjustment included in accounts receivable and net sales at March, 31, 2018 includes positive adjustments of $0.1 million and $6.4 million for copper and molybdenum, respectively.

Management believes that the final pricing of these sales will not have a material effect on the Company’s financial position or results of operations.