NOTE 5 – REVENUE:

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 did not result in a change to the way the Company recognizes its revenue.

The Company’s net sales were $1,753.4 million in the three months ended March 31, 2019, compared to $1,841.1 million in the same period of 2018. The geographic breakdown of the Company’s sales is as follows (in millions):


	Three Months Ended March 31, 2019
	Mexican		Mexican		Peruvian		Corporate &
	Open-Pit		IMMSA Unit		Operations		Elimination		Consolidated
The Americas:
Mexico	$	351.3	$	86.8	$	—	$	(19.9)	$	418.2
United States		279.0		1.4		6.7		—		287.1
Peru		1.6		—		85.7		—		87.3
Brazil		—		7.2		48.3		—		55.5
Chile		1.1		—		20.0		—		21.1
Other American countries		12.8		0.5		1.8		—		15.1
Europe:
Switzerland		225.4		12.0		110.4		—		347.8
Italy		29.2		5.5		47.3		—		82.0
Spain		45.5		—		—		—		45.5
Other European countries		22.9		5.8		53.9		—		82.6
Asia:
Singapore		58.5		1.8		52.6		—		112.9
Japan		9.8		—		117.5		—		127.3
Other Asian countries		35.0		0.1		35.9		—		71.0
Total	$	1,072.1	$	121.1	$	580.1	$	(19.9)	$	1,753.4


	Three Months Ended March 31, 2018
	Mexican		Mexican		Peruvian		Corporate &
	Open-Pit		IMMSA Unit		Operations		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

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, 2019 and 2018 (in millions):


	Three Months Ended March 31, 2019
	Mexican		Mexican		Peruvian		Corporate &
	Open-Pit		IMMSA Unit		Operations		Elimination		Consolidated
Copper	$	895.1	$	11.0	$	522.4	$	(12.9)	$	1,415.6
Molybdenum		90.1		—		28.2		—		118.3
Zinc		—		77.1		—		(0.4)		76.7
Silver		50.4		17.3		14.9		(5.8)		76.8
Other		36.5		15.7		14.6		(0.8)		66.0
Total	$	1,072.1	$	121.1	$	580.1	$	(19.9)	$	1,753.4


	Three Months Ended March 31, 2018
	Mexican		Mexican		Peruvian		Corporate &
	Open-Pit		IMMSA Unit		Operations		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

The opening and closing balances of receivables by reporting segment of the Company were as follows (in millions):


	Mexican		Mexican		Peruvian		Corporate &
	Open-Pit		IMMSA Unit		Operations		Elimination		Consolidated
As of March 31, 2019:
Trade receivables	$	543.9	$	54.0	$	278.7	$	—	$	876.6
Related parties		89.2		—		—		9.0	$	98.2

As of December 31, 2018:
Trade receivables	$	505.9	$	50.5	$	266.0	$	—	$	822.4
Related parties		81.6		—		—		19.9		101.5

As of March 31, 2019, the Company has long-term contracts with promises to deliver the following products in 2019:


Copper concentrates (in tons)		1,090,000
Copper cathodes (in tons)		48,000
Molybdenum concentrates (in tons)		24,106
Sulfuric acid (in tons)		331,620

Provisionally priced sales: At March 31, 2019, the Company has recorded provisionally priced sales of copper at average forward prices per pound, and molybdenum at the March 31, 2019 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, 2019:


	Sales volume	Priced at
	(million lbs.)	(per pound)		Month of settlement
Copper	105.0	$	2.94	April through July 2019
Molybdenum	10.2	$	12.13	April through June 2019

The provisional sales price adjustment included in accounts receivable and net sales at March, 31, 2019 includes positive adjustments of $2.8 million and $4.1 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.