XML 58 R26.htm IDEA: XBRL DOCUMENT
v3.19.3

Business Segments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2019
Segment Reporting [Abstract] |
Revenue from External Customers by Products and Services | FCX’s revenues attributable to the products it sold for the third quarters and first nine months of 2019 and 2018 follow (in millions):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Copper: |  |  |  |  |  |  |
Concentrate | $ | 952 |  |  | $ | 1,743 |  |  | $ | 3,251 |  |  | $ | 5,093 |
Cathode | 878 |  |  | 1,015 |  |  | 2,696 |  |  | 3,383 |
Rod and other refined copper products | 537 |  |  | 561 |  |  | 1,560 |  |  | 1,899 |
Purchased copper a | 210 |  |  | 256 |  |  | 872 |  |  | 776 |
Gold | 415 |  |  | 1,073 |  |  | 1,111 |  |  | 2,814 |
Molybdenum | 295 |  |  | 286 |  |  | 910 |  |  | 882 |
Other b | 202 |  |  | 381 |  |  | 697 |  |  | 1,179 |
Adjustments to revenues: |  |  |  |  |  |  |
Treatment charges | (87 | ) |  | (162 | ) |  | (292 | ) |  | (433 | )
Royalty expense c | (24 | ) |  | (75 | ) |  | (73 | ) |  | (217 | )
Export duties d | (174 | ) |  | (52 | ) |  | (201 | ) |  | (153 | )
Revenues from contracts with customers | 3,204 |  |  | 5,026 |  |  | 10,531 |  |  | 15,223 |
Embedded derivatives e | (51 | ) |  | (118 | ) |  | (40 | ) |  | (279 | )
Total consolidated revenues | $ | 3,153 |  |  | $ | 4,908 |  |  | $ | 10,491 |  |  | $ | 14,944 |
a. | FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b. | Primarily includes revenues associated with cobalt and silver.
c. | Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d. | Reflects PT-FI export duties. The third quarter and first nine months of 2019 include charges totaling $166 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
e. | Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
Schedule of financial information by business segment | Financial Information by Business Segment
(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 |  | Total
Three Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 61 |  |  | $ | 19 |  |  | $ | 80 |  |  | $ | 504 |  |  | $ | 117 |  |  | $ | 621 |  |  | $ | 488 |  | a | $ | — |  |  | $ | 1,104 |  |  | $ | 437 |  |  | $ | 423 |  | b | $ | 3,153 |
Intersegment | 462 |  |  | 598 |  |  | 1,060 |  |  | 65 |  |  | — |  |  | 65 |  |  | — |  |  | 90 |  |  | 8 |  |  | — |  |  | (1,223 | ) |  | — |
Production and delivery | 377 |  |  | 519 |  |  | 896 |  |  | 417 |  |  | 111 |  |  | 528 |  |  | 399 |  |  | 85 |  |  | 1,111 |  |  | 421 |  |  | (775 | ) |  | 2,665 |
Depreciation, depletion and amortization | 45 |  |  | 46 |  |  | 91 |  |  | 93 |  |  | 16 |  |  | 109 |  |  | 77 |  |  | 16 |  |  | 2 |  |  | 7 |  |  | 20 |  |  | 322 |
Metals inventory adjustments | 1 |  |  | 37 |  |  | 38 |  |  | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 41 |
Selling, general and administrative expenses | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | — |  |  | 2 |  |  | 31 |  |  | — |  |  | — |  |  | 5 |  |  | 66 |  |  | 106 |
Mining exploration and research expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 25 |  |  | 25 |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20 |  |  | 20 |
Net loss on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 12 |
Operating income (loss) | 99 |  |  | 14 |  |  | 113 |  |  | 55 |  |  | (10 | ) |  | 45 |  |  | (19 | ) |  | (12 | ) |  | (1 | ) |  | 4 |  |  | (168 | ) |  | (38 | )
Interest expense, net | — |  |  | 1 |  |  | 1 |  |  | 25 |  |  | — |  |  | 25 |  |  | 1 |  |  | — |  |  | — |  |  | 5 |  |  | 91 |  |  | 123 |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | 29 |  |  | 4 |  |  | 33 |  |  | (8 | ) |  | — |  |  | — |  |  | (1 | ) |  | 67 |  |  | 91 |
Total assets at September 30, 2019 | 2,943 |  |  | 5,005 |  |  | 7,948 |  |  | 8,500 |  |  | 1,723 |  |  | 10,223 |  |  | 16,447 |  |  | 1,786 |  |  | 236 |  |  | 680 |  |  | 3,623 |  |  | 40,943 |
Capital expenditures | 61 |  |  | 163 |  |  | 224 |  |  | 61 |  |  | 7 |  |  | 68 |  |  | 334 |  |  | 5 |  |  | 1 |  |  | 9 |  |  | 25 |  |  | 666 |
Three Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 30 |  |  | $ | 2 |  |  | $ | 32 |  |  | $ | 687 |  |  | $ | 122 |  |  | $ | 809 |  |  | $ | 1,703 |  | a | $ | — |  |  | $ | 1,212 |  |  | $ | 579 |  |  | $ | 573 |  | b | $ | 4,908 |
Intersegment | 467 |  |  | 587 |  |  | 1,054 |  |  | 71 |  |  | — |  |  | 71 |  |  | 61 |  |  | 101 |  |  | 8 |  |  | — |  |  | (1,295 | ) |  | — |
Production and delivery | 304 |  |  | 485 |  |  | 789 |  |  | 519 |  |  | 105 |  |  | 624 |  |  | 522 |  |  | 76 |  |  | 1,215 |  |  | 559 |  |  | (716 | ) |  | 3,069 |
Depreciation, depletion and amortization | 43 |  |  | 45 |  |  | 88 |  |  | 122 |  |  | 20 |  |  | 142 |  |  | 181 |  |  | 20 |  |  | 3 |  |  | 6 |  |  | 18 |  |  | 458 |
Selling, general and administrative expenses | 1 |  |  | — |  |  | 1 |  |  | 3 |  |  | — |  |  | 3 |  |  | 29 |  |  | — |  |  | — |  |  | 5 |  |  | 63 |  |  | 101 |
Mining exploration and research expenses | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 27 |
Environmental obligations and shutdown costs | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 8 |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (70 | ) |  | (70 | )
Operating income (loss) | 149 |  |  | 56 |  |  | 205 |  |  | 114 |  |  | (3 | ) |  | 111 |  |  | 1,032 |  |  | 5 |  |  | 2 |  |  | 9 |  |  | (49 | ) |  | 1,315 |
Interest expense, net | 1 |  |  | — |  |  | 1 |  |  | 15 |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 120 |  |  | 143 |
Provision for income taxes | — |  |  | — |  |  | — |  |  | 37 |  |  | 5 |  |  | 42 |  |  | 424 |  |  | — |  |  | — |  |  | — |  |  | 56 |  |  | 522 |
Total assets at September 30, 2018 | 2,826 |  |  | 4,465 |  |  | 7,291 |  |  | 8,613 |  |  | 1,709 |  |  | 10,322 |  |  | 11,764 |  |  | 1,808 |  |  | 284 |  |  | 835 |  |  | 5,445 |  |  | 37,749 |
Capital expenditures | 63 |  |  | 118 |  |  | 181 |  |  | 47 |  |  | 3 |  |  | 50 |  |  | 246 |  |  | 4 |  |  | 1 |  |  | 3 |  |  | 22 |  |  | 507 |
a. | Includes PT-FI's sales to PT Smelting totaling $475 million in third-quarter 2019 and $827 million in third-quarter 2018.
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 America and South America copper mines.
(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 |  | Total |
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 89 |  |  | $ | 183 |  |  | $ | 272 |  |  | $ | 1,793 |  |  | $ | 343 |  |  | $ | 2,136 |  |  | $ | 1,776 |  | a | $ | — |  |  | $ | 3,403 |  |  | $ | 1,554 |  |  | $ | 1,350 |  | b | $ | 10,491 |  |
Intersegment | 1,411 |  |  | 1,611 |  |  | 3,022 |  |  | 262 |  |  | — |  |  | 262 |  |  | 57 |  |  | 290 |  |  | 18 |  |  | 5 |  |  | (3,654 | ) |  | — |  |
Production and delivery | 1,020 |  |  | 1,443 |  |  | 2,463 |  |  | 1,311 |  |  | 337 |  |  | 1,648 |  |  | 1,509 |  |  | 234 |  |  | 3,415 |  |  | 1,488 |  |  | (2,173 | ) |  | 8,584 |  |
Depreciation, depletion and amortization | 128 |  |  | 133 |  |  | 261 |  |  | 294 |  |  | 48 |  |  | 342 |  |  | 281 |  |  | 50 |  |  | 7 |  |  | 21 |  |  | 59 |  |  | 1,021 |  |
Metals inventory adjustments | 1 |  |  | 38 |  |  | 39 |  |  | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 58 |  |  | 100 |  |
Selling, general and administrative expenses | 2 |  |  | 2 |  |  | 4 |  |  | 6 |  |  | — |  |  | 6 |  |  | 91 |  |  | — |  |  | — |  |  | 15 |  |  | 199 |  |  | 315 |  |
Mining exploration and research expenses | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 82 |  |  | 83 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 85 |  |  | 85 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (13 | ) |  | (13 | ) |
Operating income (loss) | 349 |  |  | 177 |  |  | 526 |  |  | 442 |  |  | (42 | ) |  | 400 |  |  | (48 | ) |  | 5 |  |  | (1 | ) |  | 35 |  |  | (601 | ) |  | 316 |  |
Interest expense, net | 2 |  |  | 1 |  |  | 3 |  |  | 79 |  |  | — |  |  | 79 |  |  | 2 |  |  | — |  |  | — |  |  | 17 |  |  | 300 |  |  | 401 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | 159 |  |  | (10 | ) |  | 149 |  |  | (9 | ) |  | — |  |  | — |  |  | 2 |  |  | 39 |  |  | 181 |  |
Capital expenditures | 172 |  |  | 469 |  |  | 641 |  |  | 160 |  |  | 16 |  |  | 176 |  |  | 992 |  |  | 11 |  |  | 3 |  |  | 18 |  |  | 76 |  |  | 1,917 |  |
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 58 |  |  | $ | 30 |  |  | $ | 88 |  |  | $ | 2,031 |  |  | $ | 443 |  |  | $ | 2,474 |  |  | $ | 4,863 |  | a | $ | — |  |  | $ | 3,984 |  |  | $ | 1,758 |  |  | $ | 1,777 |  | b | $ | 14,944 |  |
Intersegment | 1,636 |  |  | 1,917 |  |  | 3,553 |  |  | 273 |  |  | — |  |  | 273 |  |  | 114 |  |  | 307 |  |  | 24 |  |  | 2 |  |  | (4,273 | ) |  | — |  |
Production and delivery | 892 |  |  | 1,475 |  |  | 2,367 |  |  | 1,391 |  |  | 354 |  |  | 1,745 |  |  | 1,404 |  |  | 214 |  |  | 3,992 |  |  | 1,694 |  |  | (2,626 | ) |  | 8,790 |  |
Depreciation, depletion and amortization | 133 |  |  | 141 |  |  | 274 |  |  | 336 |  |  | 66 |  |  | 402 |  |  | 534 |  |  | 60 |  |  | 8 |  |  | 20 |  |  | 53 |  |  | 1,351 |  |
Metals inventory adjustments | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |
Selling, general and administrative expenses | 3 |  |  | 2 |  |  | 5 |  |  | 7 |  |  | — |  |  | 7 |  |  | 96 |  |  | — |  |  | — |  |  | 16 |  |  | 217 |  |  | 341 |  |
Mining exploration and research expenses | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 70 |  |  | 72 |  |
Environmental obligations and shutdown costs | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 74 |  |  | 76 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (126 | ) |  | (126 | ) |
Operating income (loss) | 666 |  |  | 323 |  |  | 989 |  |  | 570 |  |  | 23 |  |  | 593 |  |  | 2,943 |  |  | 33 |  |  | 8 |  |  | 30 |  |  | (158 | ) |  | 4,438 |  |
Interest expense, net | 3 |  |  | — |  |  | 3 |  |  | 48 |  |  | — |  |  | 48 |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 367 |  |  | 436 |  |
Provision for income taxes | — |  |  | — |  |  | — |  |  | 207 |  |  | 15 |  |  | 222 |  |  | 1,254 |  |  | — |  |  | — |  |  | 1 |  |  | 66 |  |  | 1,543 |  |
Capital expenditures | 151 |  |  | 262 |  |  | 413 |  |  | 178 |  |  | 10 |  |  | 188 |  |  | 695 |  |  | 6 |  |  | 3 |  |  | 10 |  |  | 76 |  |  | 1,391 |  |
a. | Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2019 and $2.1 billion for the first nine months of 2018.
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 America and South America copper mines.

X
- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e9031-108599 + Details
Name: | us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration