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BUSINESS SEGMENTS | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Business Segment | 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. As a result, beginning in 2017, the 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 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 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. Financial Information by Business Segments
(In millions) |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Atlantic |  | Corporate, |  |  |
| North America Copper Mines |  | South America |  |  |  |  |  |  |  | Copper |  | Other |  |  |
|  |  |  |  |  |  | Cerro |  |  |  |  |  | Indonesia |  | Molybdenum |  | Rod & |  | Smelting |  | & Elimi- |  | FCX |
| Morenci |  | Other |  | Total |  | Verde |  | Other |  | Total |  | Mining |  | Mines |  | Refining |  | & Refining |  | nations a |  | Total |
Three Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 57 |  |  | $ | 40 |  |  | $ | 97 |  |  | $ | 850 |  |  | $ | 109 |  |  | $ | 959 |  |  | $ | 1,121 |  | b | $ | — |  |  | $ | 1,137 |  |  | $ | 554 |  |  | $ | 442 |  | c | $ | 4,310 |  |
Intersegment | 460 |  |  | 548 |  |  | 1,008 |  |  | 64 |  |  | — |  |  | 64 |  |  | — |  |  | 65 |  |  | 8 |  |  | 1 |  |  | (1,146 | ) |  | — |  |
Production and delivery | 244 |  |  | 414 |  |  | 658 |  |  | 683 |  | d | 76 |  |  | 759 |  |  | 406 |  |  | 58 |  |  | 1,141 |  |  | 533 |  |  | (753 | ) |  | 2,802 |  |
Depreciation, depletion and amortization | 42 |  |  | 54 |  |  | 96 |  |  | 116 |  |  | 18 |  |  | 134 |  |  | 136 |  |  | 20 |  |  | 2 |  |  | 7 |  |  | 23 |  |  | 418 |  |
Selling, general and administrative expenses | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | — |  |  | 2 |  |  | 32 |  |  | — |  |  | — |  |  | 4 |  |  | 66 |  |  | 106 |  |
Mining exploration and research expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 27 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 73 |  |  | 73 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (33 | ) |  | (33 | ) |
Operating income (loss) | 230 |  |  | 119 |  |  | 349 |  |  | 113 |  |  | 15 |  |  | 128 |  |  | 547 |  |  | (13 | ) |  | 2 |  |  | 11 |  |  | (107 | ) |  | 917 |  |
Interest expense, net | 1 |  |  | — |  |  | 1 |  |  | 156 |  | d | — |  |  | 156 |  |  | 1 |  |  | — |  |  | — |  |  | 5 |  |  | 141 |  |  | 304 |  |
Provision for income taxes | — |  |  | — |  |  | — |  |  | 134 |  | d | 5 |  |  | 139 |  |  | 233 |  |  | — |  |  | — |  |  | 1 |  |  | 14 |  |  | 387 |  |
Total assets at September 30, 2017 | 2,844 |  |  | 4,223 |  |  | 7,067 |  |  | 8,851 |  |  | 1,595 |  |  | 10,446 |  |  | 11,100 |  |  | 1,885 |  |  | 264 |  |  | 751 |  |  | 5,814 |  | e | 37,327 |  |
Capital expenditures | 26 |  |  | 13 |  |  | 39 |  |  | 17 |  |  | 3 |  |  | 20 |  |  | 206 |  |  | 2 |  |  | 1 |  |  | 5 |  |  | 41 |  |  | 314 |  |
Three Months Ended September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 115 |  |  | $ | 112 |  |  | $ | 227 |  |  | $ | 505 |  |  | $ | 112 |  |  | $ | 617 |  |  | $ | 984 |  | b | $ | — |  |  | $ | 930 |  |  | $ | 445 |  |  | $ | 674 |  | c | $ | 3,877 |  |
Intersegment | 358 |  |  | 499 |  |  | 857 |  |  | 54 |  |  | — |  |  | 54 |  |  | 2 |  |  | 46 |  |  | 7 |  |  | — |  |  | (966 | ) |  | — |  |
Production and delivery | 275 |  |  | 464 |  |  | 739 |  |  | 333 |  |  | 91 |  |  | 424 |  |  | 478 |  |  | 57 |  |  | 931 |  |  | 416 |  |  | (516 | ) | f | 2,529 |  |
Depreciation, depletion and amortization | 51 |  |  | 78 |  |  | 129 |  |  | 109 |  |  | 25 |  |  | 134 |  |  | 110 |  |  | 15 |  |  | 2 |  |  | 7 |  |  | 246 |  |  | 643 |  |
Impairment of oil and gas properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 239 |  |  | 239 |  |
Selling, general and administrative expenses | 1 |  |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 24 |  |  | — |  |  | — |  |  | 5 |  |  | 78 |  |  | 110 |  |
Mining exploration and research expenses | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 13 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3 | ) |  | (3 | ) |
Net loss (gain) on sales of assets | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14 | ) |  | (13 | ) |
Operating income (loss) | 145 |  |  | 68 |  |  | 213 |  |  | 116 |  |  | (5 | ) |  | 111 |  |  | 374 |  |  | (26 | ) |  | 4 |  |  | 17 |  |  | (334 | ) |  | 359 |  |
Interest expense, net | 1 |  |  | — |  |  | 1 |  |  | 21 |  |  | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 162 |  |  | 187 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | 36 |  |  | (4 | ) |  | 32 |  |  | 158 |  |  | — |  |  | — |  |  | 4 |  |  | (308 | ) |  | (114 | ) |
Total assets at September 30, 2016 | 2,881 |  |  | 4,540 |  |  | 7,421 |  |  | 9,139 |  |  | 1,551 |  |  | 10,690 |  |  | 9,718 |  |  | 1,953 |  |  | 238 |  |  | 565 |  |  | 10,815 |  | e | 41,400 |  |
Capital expenditures | 6 |  |  | 5 |  |  | 11 |  |  | 38 |  |  | 1 |  |  | 39 |  |  | 253 |  |  | 1 |  |  | — |  |  | 5 |  |  | 185 |  | g | 494 |  |
a. | Includes U.S. oil and gas operations, which were previously a reportable segment.
b. | Includes PT-FI's sales to PT Smelting totaling $652 million in third-quarter 2017 and $348 million in third-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 net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e. | Includes assets held for sale totaling $549 million at September 30, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project, and $5.1 billion at September 30, 2016, which also included discontinued operations. Also includes assets associated with oil and gas operations of $272 million at September 30, 2017, and $3.5 billion at September 30, 2016.
f. | Includes net charges for oil and gas operations totaling $49 million, primarily for idle rig costs, inventory adjustments and the termination of the Morocco well commitment.
g. | Includes $160 million associated with oil and gas operations and $15 million associated with discontinued operations.
(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 |  | nations a |  | Total |
Nine Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 168 |  |  | $ | 122 |  |  | $ | 290 |  |  | $ | 2,057 |  |  | $ | 332 |  |  | $ | 2,389 |  |  | $ | 2,720 |  | b | $ | — |  |  | $ | 3,290 |  |  | $ | 1,412 |  |  | $ | 1,261 |  | c | $ | 11,362 |  |
Intersegment | 1,354 |  |  | 1,704 |  |  | 3,058 |  |  | 237 |  |  | — |  |  | 237 |  |  | — |  |  | 199 |  |  | 22 |  |  | 1 |  |  | (3,517 | ) |  | — |  |
Production and delivery | 772 |  |  | 1,284 |  |  | 2,056 |  |  | 1,450 |  | d | 245 |  |  | 1,695 |  |  | 1,233 |  | e | 169 |  |  | 3,299 |  |  | 1,369 |  |  | (2,324 | ) |  | 7,497 |  |
Depreciation, depletion and amortization | 138 |  |  | 192 |  |  | 330 |  |  | 332 |  |  | 60 |  |  | 392 |  |  | 372 |  |  | 58 |  |  | 7 |  |  | 21 |  |  | 77 |  |  | 1,257 |  |
Selling, general and administrative expenses | 2 |  |  | 2 |  |  | 4 |  |  | 7 |  |  | — |  |  | 7 |  |  | 92 |  | e | — |  |  | — |  |  | 13 |  |  | 250 |  |  | 366 |  |
Mining exploration and research expenses | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 59 |  |  | 61 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 81 |  |  | 81 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (66 | ) |  | (66 | ) |
Operating income (loss) | 610 |  |  | 346 |  |  | 956 |  |  | 505 |  |  | 27 |  |  | 532 |  |  | 1,023 |  |  | (28 | ) |  | 6 |  |  | 10 |  |  | (333 | ) |  | 2,166 |  |
Interest expense, net | 2 |  |  | 1 |  |  | 3 |  |  | 187 |  | d | — |  |  | 187 |  |  | 1 |  |  | — |  |  | — |  |  | 13 |  |  | 429 |  |  | 633 |  |
Provision for income taxes | — |  |  | — |  |  | — |  |  | 288 |  | d | 10 |  |  | 298 |  |  | 435 |  |  | — |  |  | — |  |  | 4 |  |  | 10 |  |  | 747 |  |
Capital expenditures | 78 |  |  | 28 |  |  | 106 |  |  | 60 |  |  | 5 |  |  | 65 |  |  | 663 |  |  | 4 |  |  | 3 |  |  | 30 |  |  | 149 |  |  | 1,020 |  |
Nine Months Ended September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 356 |  |  | $ | 211 |  |  | $ | 567 |  |  | $ | 1,485 |  |  | $ | 379 |  |  | $ | 1,864 |  |  | $ | 2,014 |  | b | $ | — |  |  | $ | 2,820 |  |  | $ | 1,360 |  |  | $ | 1,828 |  | c | $ | 10,453 |  |
Intersegment | 1,119 |  |  | 1,594 |  |  | 2,713 |  |  | 155 |  |  | — |  |  | 155 |  |  | 59 |  |  | 136 |  |  | 22 |  |  | 3 |  |  | (3,088 | ) |  | — |  |
Production and delivery | 913 |  |  | 1,340 |  |  | 2,253 |  |  | 927 |  |  | 313 |  |  | 1,240 |  |  | 1,228 |  |  | 159 |  |  | 2,820 |  |  | 1,275 |  |  | (991 | ) | f | 7,984 |  |
Depreciation, depletion and amortization | 170 |  |  | 237 |  |  | 407 |  |  | 319 |  |  | 83 |  |  | 402 |  |  | 284 |  |  | 51 |  |  | 7 |  |  | 22 |  |  | 764 |  |  | 1,937 |  |
Impairment of oil and gas properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,317 |  |  | 4,317 |  |
Selling, general and administrative expenses | 2 |  |  | 2 |  |  | 4 |  |  | 5 |  |  | 1 |  |  | 6 |  |  | 60 |  |  | — |  |  | — |  |  | 13 |  |  | 325 |  | f | 408 |  |
Mining exploration and research expenses | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 44 |  |  | 46 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 18 |  |
Net gain on sales of assets | (576 | ) |  | — |  |  | (576 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (186 | ) |  | (762 | ) |
Operating income (loss) | 966 |  |  | 224 |  |  | 1,190 |  |  | 389 |  |  | (18 | ) |  | 371 |  |  | 501 |  |  | (74 | ) |  | 15 |  |  | 53 |  |  | (5,551 | ) |  | (3,495 | ) |
Interest expense, net | 2 |  |  | 1 |  |  | 3 |  |  | 63 |  |  | — |  |  | 63 |  |  | — |  |  | — |  |  | — |  |  | 11 |  |  | 497 |  |  | 574 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | 126 |  |  | (12 | ) |  | 114 |  |  | 212 |  |  | — |  |  | — |  |  | 5 |  |  | (252 | ) |  | 79 |  |
Capital expenditures | 71 |  |  | 16 |  |  | 87 |  |  | 329 |  |  | 3 |  |  | 332 |  |  | 706 |  |  | 2 |  |  | 1 |  |  | 12 |  |  | 1,169 |  | g | 2,309 |  |
a. | Includes U.S. oil and gas operations, which were previously a reportable segment.
b. | Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2017 and $912 million for the first nine months of 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 net charges of $216 million in production and delivery costs, $141 million in interest expense and $2 million in provision for income taxes associated with disputed royalties for prior years.
e. | Includes net charges of $112 million in production and delivery costs and $5 million in selling, general and administrative expenses for PT-FI workforce reductions.
f. | Includes net charges for oil and gas operations of $942 million in production and delivery costs, primarily for drillship settlements/idle rig costs and inventory adjustments and $38 million for net restructuring charges.
g. | Includes $1.1 billion associated with oil and gas operations and $70 million associated with discontinued operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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