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BUSINESS SEGMENTS INFORMATION
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segment Information
BUSINESS SEGMENTS
FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining 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, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.
FCX’s reportable segments previously included U.S. Oil & Gas operations. During 2016, FCX completed the sales of its Deepwater Gulf of Mexico, onshore California and Haynesville oil and gas properties, and in first-quarter 2017, completed the sale of its Madden property interests. The results of FCX’s U.S. oil and gas operations no longer qualify as a reportable segment, and oil and gas results for all periods presented have been included in Corporate, Other & Eliminations in the following tables. Refer to Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for additional information.

Intersegment sales between FCX’s mining operations are based on similar 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 sales from its mines to other divisions, including Atlantic Copper (FCX’s wholly owned smelter and refinery in Spain) and on 25 percent of PT-FI’s sales to PT Smelting (PT-FI’s 25 percent-owned smelter and refinery in Indonesia), 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, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with 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.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
nationsa
 
Total
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
66

 
$
50

 
$
116

 
$
640

 
$
112

 
$
752

 
$
534

b 
$
—

 
$
1,107

 
$
458

 
$
374

c 
$
3,341

Intersegment
416

 
563

 
979

 
116

 
—

 
116

 
—

 
63

 
8

 
—

 
(1,166
)
 
—

Production and delivery
260

d 
413

 
673

 
391

 
82

 
473

 
273

d 
52

 
1,110

 
436

 
(817
)
e 
2,200

Depreciation, depletion and amortization
47

 
69

 
116

 
112

 
21

 
133

 
83

 
19

 
2

 
7

 
29

 
389

Selling, general and administrative expenses
—

 
1

 
1

 
2

 
—

 
2

 
30

 
—

 
—

 
5

 
115

f 
153

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
14

 
15

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
27

 
27

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(23
)
 
(23
)
Operating income (loss)
175

 
129

 
304

 
251

 
9

 
260

 
148

 
(8
)
 
3

 
10

 
(137
)
 
580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
16

 
—

 
16

 
—

 
—

 
—

 
4

 
146

 
167

Provision for income taxes
—

 
—

 
—

 
98

 
3

 
101

 
67

 
—

 
—

 
—

 
6

 
174

Total assets at March 31, 2017
2,814

 
4,361

 
7,175

 
9,081

 
1,525

 
10,606

 
10,879

 
1,917

 
261

 
652

 
5,086

g 
36,576

Capital expenditures
23

 
5

 
28

 
14

 
1

 
15

 
244

 
1

 
1

 
8

 
47

h 
344

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
162

 
$
56

 
$
218

 
$
486

 
$
144

 
$
630

 
$
498

b 
$
—

 
$
971

 
$
422


$
503

c 
$
3,242

Intersegment
357

 
561

 
918

 
41

 
—

 
41

 
58

 
45

 
8

 
1

 
(1,071
)
 
—

Production and delivery
340

 
448

 
788

 
291

 
119

 
410

 
394

 
52

 
970

 
393

 
(508
)
e 
2,499

Depreciation, depletion and amortization
62

 
82

 
144

 
101

 
31

 
132

 
81

 
19

 
2

 
8

 
276

 
662

Impairment of oil and gas properties

—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
3,787


3,787

Selling, general and administrative expenses
—

 
1

 
1

 
2

 
—

 
2

 
14

 
—

 
—

 
4

 
117

 
138

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
17

 
18

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
10

 
10

Operating income (loss)
117

 
85

 
202

 
133

 
(6
)
 
127

 
67

 
(26
)
 
7

 
18

 
(4,267
)
 
(3,872
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
22

 
—

 
22

 
—

 
—

 
—

 
4

 
164

 
191

Provision for (benefit from) income taxes
—

 
—

 
—

 
45

 
(6
)
 
39

 
36

 
—

 
—

 
—

 
2

 
77

Total assets at March 31, 2016
3,490

 
4,751

 
8,241

 
9,495

 
1,623

 
11,118

 
9,306

 
1,983

 
236

 
653

 
11,127

g 
42,664

Capital expenditures
28

 
6

 
34

 
156

 
1

 
157

 
222

 
1

 
1

 
2

 
565

h 
982


a.
Includes U.S. oil and gas operations that was previously a reportable segment.
b.
Includes PT-FI’s sales to PT Smelting totaling $258 million in first-quarter 2017 and $277 million in first-quarter 2016.
c.
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.
d.
Includes $19 million for asset impairments at Morenci and $21 million at PT-FI for costs charged directly to cost of sales as a result of the impact of regulatory restrictions on its concentrate exports.
e.
Includes net credits (charges) for oil and gas operations totaling $20 million in first-quarter 2017 and $(200) million in first-quarter 2016, primarily for drillship settlement/idle rig costs, asset impairment and inventory adjustments.
f.
Includes $21 million for other oil and gas contract termination costs.
g.
Includes assets held for sale totaling $408 million at March 31, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project, and $5.3 billion at March 31, 2016, which also included discontinued operations. Also includes $331 million at March 31, 2017, and $4.4 billion at March 31, 2016, associated with oil and gas operations.
h.
Includes $19 million in first-quarter 2017 and $523 million in first-quarter 2016 associated with oil and gas operations. First-quarter 2016 also includes $35 million associated with discontinued operations.