BUSINESS SEGMENTS INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

FCX revenues attributable to the products it produced for the years ended December 31 follow:



	2016		2015		2014
Refined copper products	$	5,888	$	6,699	$	8,187
Copper in concentrate^a	4,502		2,869		3,366
Gold	1,512		1,538		1,584
Molybdenum	651		783		1,207
Oil	1,304		1,694		4,233
Other	973		1,024		1,424
Total	$	14,830	$	14,607	$	20,001


a.	Amounts are net of treatment and refining charges totaling $652 million in 2016, $485 million in 2015 and $374 million in 2014.

Long-lived assets by geographic area

Information concerning financial data by geographic area follows:



	December 31,
	2016			2015			2014
Long-lived assets:^a
U.S.	$	8,282	^b	$	16,569	^b	$	29,468
Indonesia	8,794			7,701			6,961
Peru	7,981			8,432			6,848
Chile	1,269			1,387			1,542
Other^c	248			4,706			4,593
Total	$	26,574		$	38,795		$	49,412


a.	Long-lived assets exclude deferred tax assets and intangible assets.


b.	Decrease in 2016 is primarily because of impairment charges related to oil and gas properties and asset dispositions, and decrease in 2015 is primarily because of impairment charges related to oil and gas properties (refer to Notes 1 and 2 for further discussion).


c.	Includes long-lived assets held for sale totaling $4.4 billion at December 31, 2015, and $4.3 billion at December 31, 2014, primarily associated with discontinued operations. Refer to Note 2 for further discussion.

Revenues by geographic area of customer



	Years Ended December 31,
	2016		2015		2014
Revenues:^a
U.S.	$	5,896	$	6,842	$	10,307
Indonesia	1,402		1,054		1,792
Japan	1,350		1,246		1,573
Switzerland	1,147		618		658
China	1,125		688		790
Spain	878		960		1,020
India	553		532		286
Bermuda	273		159		76
Philippines	261		169		—
Chile	250		397		687
Korea	219		177		203
United Kingdom	204		83		142
Other	1,272		1,682		2,467
Total	$	14,830	$	14,607	$	20,001


a.	Revenues are attributed to countries based on the location of the customer.

Schedule of financial information by business segment

Financial Information by Business Segment



	Mining Operations
	North America Copper Mines									South America									Indonesia
																											Atlantic		Other											Corporate,
																						Molyb-					Copper		Mining							U.S.				Other
										Cerro												denum			Rod &		Smelting		& Elimi-				Total			Oil & Gas				& Elimi-				FCX
	Morenci			Other			Total			Verde			Other				Total		Grasberg			Mines			Refining		& Refining		nations				Mining			Operations^a				nations				Total
Year Ended December 31, 2016
Revenues:
Unaffiliated customers	$	444		$	240		$	684		$	2,241		$	510			$	2,751	$	3,233		$	—		$	3,833	$	1,825	$	991		^b	$	13,317		$	1,513		^c	$	—			$	14,830
Intersegment	1,511			2,179			3,690			187			—				187		62			186			29		5		(4,159		)		—			—				—				—
Production and delivery	1,169			1,763			2,932			1,351		^d	407				1,758		1,794		^d	199			3,836		1,712		(3,388		)		8,843			1,801			^e	53				10,697
Depreciation, depletion and amortization	217			313			530			443			110				553		384			68			10		29		73				1,647			869				14				2,530
Impairment of oil and gas properties	—			—			—			—			—				—		—			—			—		—		—				—			4,299				18			^f	4,317
Metals inventory adjustments	—			1			1			—			—				—		—			15			—		—		20				36			—				—				36
Selling, general and administrative expenses	2			3			5			8			1				9		90			—			—		17		15				136			254			^g	217				607
Mining exploration and research expenses	—			3			3			—			—				—		—			—			—		—		61				64			—				—				64
Environmental obligations and shutdown costs	—			—			—			—			—				—		—			—			—		—		19				19			—				1				20
Net (gain) loss on sales of assets	(576		)	—			(576		)	—			—				—		—			—			—		—		(67		)		(643		)	1				(7		)		(649		)
Operating income (loss)	1,143			336			1,479			626			(8		)		618		1,027			(96		)	16		72		99				3,215			(5,711		)		(296		)		(2,792		)

Interest expense, net	3			1			4			82			—				82		—			—			—		15		80				181			369				205				755
Provision for (benefit from) income taxes	—			—			—			222			(6		)		216		442			—			—		—		—				658			—				(287		)		371
Total assets at December 31, 2016	2,863			4,448			7,311			9,076			1,533				10,609		10,954			1,934			220		658		1,444				33,130			467				3,720				37,317
Capital expenditures	77			25			102			380			2				382		1,025			2			1		17		109			^h	1,638			1,127			ⁱ	48				2,813

Year Ended December 31, 2015
Revenues:
Unaffiliated customers	$	558		$	351		$	909		$	1,065		$	808			$	1,873	$	2,617		$	—		$	4,125	$	1,955	$	1,133		^b	$	12,612		$	1,994		^c	$	1			$	14,607
Intersegment	1,646			2,571			4,217			68			(7		)	^j	61		36			348			29		15		(4,706		)		—			—				—				—
Production and delivery^d	1,523			2,276			3,799			815			623				1,438		1,808			312			4,129		1,848		(3,851		)		9,483			1,211			^e	(1		)		10,693
Depreciation, depletion and amortization	217			343			560			219			133				352		293			97			9		39		72				1,422			1,804				14				3,240
Impairment of oil and gas properties	—			—			—			—			—				—		—			—			—		—		—				—			12,980				164			^f	13,144
Metals inventory adjustments	—			142			142			—			73				73		—			11			—		—		112				338			—				—				338
Selling, general and administrative expenses	3			3			6			3			1				4		103			—			—		16		20				149			188				221				558
Mining exploration and research expenses	—			7			7			—			—				—		—			—			—		—		100				107			—				—				107
Environmental obligations and shutdown costs	—			3			3			—			—				—		—			—			—		—		74				77			—				1				78
Net gain on sales of assets	—			(39		)	(39		)	—			—				—		—			—			—		—		—				(39		)	—				—				(39		)
Operating income (loss)	461			187			648			96			(29		)		67		449			(72		)	16		67		(100		)		1,075			(14,189		)		(398		)		(13,512		)

Interest expense, net	2			2			4			16			—				16		—			—			—		10		75				105			186				326				617
Provision for (benefit from) income taxes	—			—			—			13			(9		)		4		195			—			—		—		—				199			—				(2,150		)		(1,951		)
Total assets at December 31, 2015	3,567			4,878			8,445			9,445			1,661				11,106		9,357			1,999			219		612		6,417			^h	38,155			8,141				281				46,577
Capital expenditures	253			102			355			1,674			48				1,722		901			13			4		23		277			^h	3,295			2,948			ⁱ	110				6,353


a.	Includes the results of the Deepwater GOM and onshore California oil and gas properties prior to their sale in December 2016.


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 and South America copper mines.


c.	Includes net mark-to-market (losses) gains of $(35) million in 2016 and $87 million in 2015 associated with oil derivative contracts. The 2016 oil derivative contracts were entered into as part of the terms to sell the onshore California oil and gas properties.

The year 2016 includes charges of $16 million at Cerro Verde for social commitments and $17 million at Indonesia for asset impairment. The year 2015 includes asset impairment and restructuring charges totaling $145 million, including $99 million at other North America copper mines, and restructuring charges totaling $13 million at South America mines, $7 million at Molybdenum mines, $3 million at Rod & Refining, $20 million at Other Mining & Eliminations and $3 million at Corporate, Other & Eliminations.


e.	Includes net charges for oil and gas operations totaling $1.0 billion in 2016 and $188 million in 2015, primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments other asset impairments and net charges.


f.	Reflects impairment charges for international oil and gas properties primarily in Morocco.


g.	Includes $85 million for net restructuring charges at oil and gas operations.


h.	Includes (i) assets held for sale totaling $4.9 billion at December 31, 2015, and (ii) capital expenditures totaling $73 million in 2016 and $229 million in 2015 associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.


i.	Excludes international oil and gas capital expenditures totaling $47 million in 2016 and $100 million in 2015, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.


j.	Reflects net reductions for provisional pricing adjustments to prior open sales.



	Mining Operations
	North America Copper Mines								South America						Indonesia
																					Atlantic			Other											Corporate,
																	Molyb-				Copper			Mining							U.S.				Other
									Cerro								denum		Rod &		Smelting			& Elimi-				Total			Oil & Gas				& Elimi-			FCX
	Morenci		Other			Total			Verde		Other^a		Total		Grasberg		Mines		Refining		& Refining			nations				Mining			Operations^b				nations			Total
Year Ended December 31, 2014
Revenues:
Unaffiliated customers	$	364	$	336		$	700		$	1,282	$	1,740	$	3,022	$	2,848	$	—	$	4,626	$	2,391		$	1,704		^c	$	15,291		$	4,710		^d	$	—		$	20,001
Intersegment	1,752		3,164			4,916			206		304		510		223		587		29		21			(6,286		)		—			—				—			—
Production and delivery	1,287		2,153			3,440			741		1,198		1,939		1,988		328		4,633		2,356			(4,807		)		9,877			1,237			^e	2			11,116
Depreciation, depletion and amortization	168		316			484			159		208		367		266		92		10		41			70				1,330			2,291				14			3,635
Impairment of oil and gas properties	—		—			—			—		—		—		—		—		—		—			—				—			3,737				—			3,737
Metals inventory adjustments	—		—			—			—		—		—		—		—		—		—			6				6			—				—			6
Selling, general and administrative expenses	2		3			5			3		3		6		98		—		—		17			25				151			207				222			580
Mining exploration and research expenses	—		8			8			—		—		—		—		—		—		—			98				106			—				—			106
Environmental obligations and shutdown costs	—		(5		)	(5		)	—		—		—		—		—		—		—			123				118			—				1			119
Goodwill impairment	—		—			—			—		—		—		—		—		—		—			—				—			1,717				—			1,717
Net gain on sales of assets	—		(14		)	(14		)	—		—		—		—		—		—		—			(703		)	^f	(717		)	—				—			(717		)
Operating income (loss)	659		1,039			1,698			585		635		1,220		719		167		12		(2		)	606				4,420			(4,479		)		(239		)	(298		)

Interest expense, net	3		1			4			1		—		1		—		—		—		13			84				102			241				263			606
Provision for income taxes	—		—			—			265		266		531		293		—		—		—			221			^f	1,045			—				(820		)	225
Total assets at December 31, 2014	3,780		5,611			9,391			7,490		1,993		9,483		8,592		2,095		235		898			6,426			^g	37,120			20,834				720			58,674
Capital expenditures	826		143			969			1,691		94		1,785		935		54		4		17			217			^g	3,981			3,205			^h	29			7,215


a.	Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014.


b.	Includes the results of Eagle Ford shale assets prior to their sale in June 2014.


c.	Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.


d.	Includes net mark-to-market gains associated with crude oil and natural gas derivative contracts totaling $505 million.


e.	Includes charges at U.S. Oil & Gas operations totaling $46 million primarily for idle/terminated rig costs and inventory adjustments.


f.	Includes the gain and related income tax provision associated with the sale of the Candelaria and Ojos del Salado mines.


g.	Includes (i) assets held for sale totaling $4.8 billion and (ii) capital expenditures totaling $159 million associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.


h.	Excludes international oil and gas capital expenditures totaling $19 million, primarily related to Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.