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BUSINESS SEGMENTS INFORMATION | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segment Information | BUSINESS SEGMENT INFORMATION Product Revenues. FCX’s revenues attributable to the products it sold for the years ended December 31 follow:
| 2019 |  | 2018 |  | 2017
Copper: |  |  |  |  |
Concentrate | $ | 4,566 |  |  | $ | 6,180 |  |  | $ | 5,604 |
Cathode | 3,656 |  |  | 4,366 |  |  | 3,759 |
Rod and other refined copper products | 2,110 |  |  | 2,396 |  |  | 2,387 |
Purchased copper a | 1,060 |  |  | 1,053 |  |  | 789 |
Gold | 1,620 |  |  | 3,231 |  |  | 2,126 |
Molybdenum | 1,169 |  |  | 1,190 |  |  | 896 |
Other b | 905 |  |  | 1,490 |  |  | 1,159 |
Adjustments to revenues: |  |  |  |  |
Treatment charges | (404 | ) |  | (535 | ) |  | (536 | )
Royalty expense c | (113 | ) |  | (246 | ) |  | (181 | )
Export duties d | (221 | ) |  | (180 | ) |  | (115 | )
Revenues from contracts with customers | 14,348 |  |  | 18,945 |  |  | 15,888 |
Embedded derivatives e | 54 |  |  | (317 | ) |  | 515 |
Total consolidated revenues | $ | 14,402 |  |  | $ | 18,628 |  |  | $ | 16,403 |
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 year 2019 includes charges totaling $155 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
e. | Refer to Note 14 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
Geographic Area. Information concerning financial data by geographic area follows:
| December 31,
| 2019 |  | 2018
Long-lived assets:a |  |  |
Indonesia | $ | 14,971 |  |  | $ | 14,025 |
U.S. | 8,834 |  |  | 8,476 |
Peru | 7,215 |  |  | 7,313 |
Chile | 1,084 |  |  | 1,077 |
Other | 384 |  |  | 458 |
Total | $ | 32,488 |  |  | $ | 31,349 |
a. | Excludes deferred tax assets and intangible assets.
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Revenues:a |  |  |  |  |
U.S. | $ | 5,107 |  |  | $ | 5,790 |  |  | $ | 5,344 |
Switzerland | 2,223 |  |  | 2,941 |  |  | 1,200 |
Indonesia | 1,894 |  |  | 2,226 |  |  | 2,023 |
Japan | 1,181 |  |  | 1,946 |  |  | 1,882 |
Spain | 884 |  |  | 1,070 |  |  | 1,086 |
China | 531 |  |  | 873 |  |  | 1,136 |
Germany | 311 |  |  | 256 |  |  | 161 |
Chile | 242 |  |  | 294 |  |  | 248 |
United Kingdom | 233 |  |  | 296 |  |  | 226 |
France | 198 |  |  | 255 |  |  | 122 |
Belgium | 160 |  |  | 278 |  |  | 39 |
Korea | 140 |  |  | 269 |  |  | 364 |
India | 107 |  |  | 389 |  |  | 782 |
Philippines | 73 |  |  | 221 |  |  | 378 |
Bermuda | 38 |  |  | 207 |  |  | 226 |
Other | 1,080 |  |  | 1,317 |  |  | 1,186 |
Total | $ | 14,402 |  |  | $ | 18,628 |  |  | $ | 16,403 |
a. | Revenues are attributed to countries based on the location of the customer.
Major Customers and Affiliated Companies. Copper concentrate sales to PT Smelting totaled 13 percent of FCX’s consolidated revenues for the year ended December 31, 2019, and 12 percent for both the years ended December 31, 2018 and 2017, which is the only customer that accounted for 10 percent or more of FCX’s consolidated revenues during the three years ended December 31, 2019. Consolidated revenues include sales to the noncontrolling interest owners of FCX’s South America mining operations totaling $1.0 billion in 2019, $1.2 billion in 2018 and $1.1 billion in 2017, and PT-FI’s sales to PT Smelting totaling $1.9 billion in 2019, $2.2 billion in 2018 and $2.0 billion in 2017. Labor Matters. As of December 31, 2019, approximately 37 percent of FCX’s global labor force was covered by collective bargaining agreements, and approximately 21 percent was covered by agreements that expired and are currently being negotiated or will expire within one year. PT-FI and union officials have commenced discussions for a new two-year labor agreement. The existing agreement, which expired in September 2019, will continue in effect until a new agreement is consummated. 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, Bagdad, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining. Beginning in 2019, Bagdad became a reportable segment. As a result, FCX revised its segment disclosure for the years ended December 31, 2018 and 2017, to conform with the current year presentation. 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 segments, including Atlantic Copper Smelting & Refining, and on 25 percent of PT-FI’s sales to PT Smelting, 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 Financial Information by Business Segment 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. North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCX’s Rod & Refining segment. In addition to copper, certain of FCX’s North America copper mines also produce molybdenum concentrate, gold and silver. The Morenci open-pit mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate. The Morenci mine produced 50 percent of FCX’s North America copper during 2019. The Bagdad open-pit mine, located in west-central Arizona, produces copper cathode and copper concentrate. In addition to copper, the Bagdad mine also produces molybdenum concentrate. The Bagdad mine produced 15 percent of FCX’s North America copper during 2019. South America Mining. South America mining includes two operating copper mines – Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. The Cerro Verde mine produced 85 percent of FCX’s South America copper during 2019. Indonesia Mining. Indonesia mining includes PT-FI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver. Molybdenum Mines. Molybdenum mines include the wholly owned Henderson underground mine and Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. Rod & Refining. The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery, three rod mills and a specialty copper products facility, which are combined in accordance with segment reporting aggregation guidance. These operations process copper produced at FCX’s North America copper mines and purchased copper into copper cathode, rod and custom copper shapes. At times these operations refine copper and produce copper rod and shapes for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products. Atlantic Copper Smelting & Refining. Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During 2019, Atlantic Copper purchased 22 percent of its concentrate requirements from FCX’s North America copper mines, 2 percent from FCX’s South America mining operations and 3 percent from FCX’s Indonesia mining operations, with the remainder purchased from unaffiliated third parties. Corporate, Other & Eliminations. Corporate, Other & Eliminations consists of FCX’s other mining, oil and gas operations and other corporate and elimination items. Other mining includes the Miami smelter (a smelter at FCX’s Miami, Arizona, mining operation), Freeport Cobalt, molybdenum conversion facilities in the U.S. and Europe, five non-operating copper mines in North America (Ajo, Bisbee, Tohono, Twin Buttes and Christmas in Arizona) and other mining support entities. Financial Information by Business Segment
| North America Copper Mines |  | South America Mining |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Atlantic |  | Corporate, |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Copper |  | Other |  |  |
|  |  |  |  |  |  |  |  | Cerro |  |  |  |  |  | Indonesia |  | Molybdenum |  | Rod & |  | Smelting |  | & Elimi- |  | FCX |
| Morenci |  | Bagdad |  | Other |  | Total |  | Verde |  | Other |  | Total |  | Mining |  | Mines |  | Refining |  | & Refining |  | nations |  | Total |
Year Ended December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 143 |  |  | $ | — |  |  | $ | 224 |  |  | $ | 367 |  |  | $ | 2,576 |  |  | $ | 499 |  |  | $ | 3,075 |  |  | $ | 2,713 |  | a | $ | — |  |  | $ | 4,457 |  |  | $ | 2,063 |  |  | $ | 1,727 |  | b | $ | 14,402 |  |
Intersegment | 1,864 |  |  | 763 |  |  | 1,392 |  |  | 4,019 |  |  | 313 |  |  | — |  |  | 313 |  |  | 58 |  |  | 344 |  |  | 26 |  |  | 5 |  |  | (4,765 | ) |  | — |  |
Production and delivery | 1,376 |  |  | 512 |  |  | 1,431 |  |  | 3,319 |  |  | 1,852 |  |  | 474 |  |  | 2,326 |  |  | 2,055 |  | c | 299 |  |  | 4,475 |  |  | 1,971 |  |  | (2,931 | ) |  | 11,514 |  |
Depreciation, depletion and amortization | 171 |  |  | 46 |  |  | 132 |  |  | 349 |  |  | 406 |  |  | 68 |  |  | 474 |  |  | 406 |  |  | 62 |  |  | 9 |  |  | 28 |  |  | 84 |  |  | 1,412 |  |
Metals inventory adjustments | 1 |  |  | — |  |  | 29 |  |  | 30 |  |  | 2 |  |  | — |  |  | 2 |  |  | 5 |  |  | 50 |  |  | — |  |  | — |  |  | 92 |  |  | 179 |  |
Selling, general and administrative expenses | 2 |  |  | 1 |  |  | 1 |  |  | 4 |  |  | 8 |  |  | — |  |  | 8 |  |  | 125 |  |  | — |  |  | — |  |  | 20 |  |  | 257 |  |  | 414 |  |
Mining exploration and research expenses | — |  |  | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 102 |  |  | 104 |  |
Environmental obligations and shutdown costs | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 104 |  |  | 105 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (417 | ) | d | (417 | ) |
Operating income (loss) | 456 |  |  | 204 |  |  | 21 |  |  | 681 |  |  | 621 |  |  | (43 | ) |  | 578 |  |  | 180 |  |  | (67 | ) |  | (1 | ) |  | 49 |  |  | (329 | ) |  | 1,091 |  |
Interest expense, net | 3 |  |  | — |  |  | 1 |  |  | 4 |  |  | 114 |  |  | — |  |  | 114 |  |  | 82 |  | c | — |  |  | — |  |  | 22 |  |  | 398 |  |  | 620 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | — |  |  | 250 |  |  | (11 | ) |  | 239 |  |  | 167 |  | c | — |  |  | — |  |  | 5 |  |  | 99 |  | e | 510 |  |
Total assets at December 31, 2019 | 2,880 |  |  | 783 |  |  | 4,326 |  |  | 7,989 |  |  | 8,612 |  |  | 1,676 |  |  | 10,288 |  |  | 16,485 |  |  | 1,798 |  |  | 193 |  |  | 761 |  |  | 3,295 |  |  | 40,809 |  |
Capital expenditures | 231 |  |  | 150 |  |  | 496 |  |  | 877 |  |  | 232 |  |  | 24 |  |  | 256 |  |  | 1,369 |  |  | 19 |  |  | 5 |  |  | 34 |  |  | 92 |  |  | 2,652 |  |
a. | Includes charges totaling $155 million associated with an unfavorable Indonesia Supreme Court ruling related to PT-FI export duties. Refer to Note 12 for further discussion.
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.
c. | Includes net charges totaling $28 million in production and delivery costs for an adjustment to the settlement of the historical surface water tax matters with the local regional tax authority in Papua, Indonesia, and $78 million in interest expense and $103 million of tax charges in provision for income taxes associated with PT-FI’s historical contested tax disputes.
d. | Includes net gains totaling $343 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $59 million for the sale of a portion of Freeport Cobalt. Refer to Note 2 for further discussion.
e. | Includes tax charges totaling $53 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $49 million primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
| North America Copper Mines |  | South America Mining |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Atlantic |  | Corporate, |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Copper |  | Other |  |  |
|  |  |  |  |  |  |  |  | Cerro |  |  |  |  |  | Indonesia |  | Molybdenum |  | Rod & |  | Smelting |  | & Elimi- |  | FCX |
| Morenci |  | Bagdad |  | Other |  | Total |  | Verde |  | Other |  | Total |  | Mining |  | Mines |  | Refining |  | & Refining |  | nations |  | Total |
Year Ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 90 |  |  | $ | — |  |  | $ | 54 |  |  | $ | 144 |  |  | $ | 2,709 |  |  | $ | 594 |  |  | $ | 3,303 |  |  | $ | 5,446 |  |  | $ | — |  |  | $ | 5,103 |  |  | $ | 2,299 |  |  | $ | 2,333 |  | a | $ | 18,628 |  |
Intersegment | 2,051 |  |  | 710 |  |  | 1,789 |  |  | 4,550 |  |  | 352 |  |  | — |  |  | 352 |  |  | 113 |  |  | 410 |  |  | 31 |  |  | 3 |  |  | (5,459 | ) |  | — |  |
Production and delivery | 1,183 |  |  | 483 |  |  | 1,458 |  |  | 3,124 |  |  | 1,887 |  | b,c | 478 |  |  | 2,365 |  |  | 1,864 |  | d | 289 |  |  | 5,117 |  |  | 2,218 |  |  | (3,290 | ) |  | 11,687 |  |
Depreciation, depletion and amortization | 176 |  |  | 41 |  |  | 143 |  |  | 360 |  |  | 456 |  |  | 90 |  |  | 546 |  |  | 606 |  |  | 79 |  |  | 11 |  |  | 27 |  |  | 125 |  | e | 1,754 |  |
Metals inventory adjustments | — |  |  | — |  |  | 4 |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |
Selling, general and administrative expenses | 3 |  |  | 1 |  |  | 2 |  |  | 6 |  |  | 9 |  |  | — |  |  | 9 |  |  | 123 |  |  | — |  |  | — |  |  | 21 |  |  | 284 |  |  | 443 |  |
Mining exploration and research expenses | — |  |  | — |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 102 |  |  | 105 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 87 |  |  | 89 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (208 | ) | f | (208 | ) |
Operating income (loss) | 779 |  |  | 185 |  |  | 231 |  |  | 1,195 |  |  | 709 |  |  | 26 |  |  | 735 |  |  | 2,966 |  |  | 42 |  |  | 6 |  |  | 36 |  |  | (226 | ) |  | 4,754 |  |
Interest expense, net | 3 |  |  | — |  |  | 1 |  |  | 4 |  |  | 429 |  | b | — |  |  | 429 |  |  | 1 |  |  | — |  |  | — |  |  | 25 |  |  | 486 |  |  | 945 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | — |  |  | 253 |  | b | 15 |  |  | 268 |  |  | 755 |  | g | — |  |  | — |  |  | 1 |  |  | (33 | ) | h | 991 |  |
Total assets at December 31, 2018 | 2,922 |  |  | 671 |  |  | 3,937 |  |  | 7,530 |  |  | 8,524 |  |  | 1,707 |  |  | 10,231 |  |  | 15,646 |  |  | 1,796 |  |  | 233 |  |  | 773 |  |  | 6,007 |  |  | 42,216 |  |
Capital expenditures | 216 |  |  | 39 |  |  | 346 |  |  | 601 |  |  | 220 |  |  | 17 |  |  | 237 |  |  | 1,001 |  |  | 9 |  |  | 5 |  |  | 16 |  |  | 102 |  |  | 1,971 |  |
a. | 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.
b. | Includes net charges totaling $14 million in production and delivery costs, $370 million in interest expense and $35 million of net tax benefits in provision for income taxes associated with disputed royalties for prior years.
c. | Includes charges totaling $69 million associated with Cerro Verde’s three-year collective labor agreement.
d. | Includes net charges of $223 million, primarily associated with surface water tax disputes with the local regional tax authority in Papua, Indonesia, assessments for prior period permit fees with Indonesia’s MOEF, disputed payroll withholding taxes for prior years and other tax settlements, and to write-off certain previously capitalized project costs for the new smelter in Indonesia, partially offset by inventory adjustments.
e. | Includes $31 million of depreciation expense at Freeport Cobalt from December 2016 through December 2017 that was suspended while it was classified as held for sale.
f. | Includes net gains totaling $97 million associated with a favorable adjustment to the estimated fair value less costs to sell for Freeport Cobalt and fair value adjustments of $31 million associated with potential contingent consideration related to the 2016 sale of onshore California oil and gas properties.
g. | Includes tax credits totaling $549 million related to the change in PT-FI’s tax rates in accordance with its IUPK ($482 million), U.S, tax reform ($47 million) and adjustments to PT-FI’s historical tax positions ($20 million).
h. | Includes net tax credits totaling $76 million, primarily related to the Act and $22 million related to the change in PT-FI’s tax rates in accordance with its IUPK. Refer to Note 11 for further discussion.
| North America Copper Mines |  | South America Mining |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Atlantic |  | Corporate, |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Copper |  | Other |  |  |
|  |  |  |  |  |  |  |  | Cerro |  |  |  |  |  | Indonesia |  | Molybdenum |  | Rod & |  | Smelting |  | & Elimi- |  | FCX |
| Morenci |  | Bagdad |  | Other |  | Total |  | Verde |  | Other |  | Total |  | Mining |  | Mines |  | Refining |  | & Refining |  | nations |  | Total |
Year Ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers | $ | 228 |  |  | $ | 22 |  |  | $ | 158 |  |  | $ | 408 |  |  | $ | 2,811 |  |  | $ | 498 |  |  | $ | 3,309 |  |  | $ | 4,445 |  |  | $ | — |  |  | $ | 4,456 |  |  | $ | 2,031 |  |  | $ | 1,754 |  | a | $ | 16,403 |  |
Intersegment | 1,865 |  |  | 528 |  |  | 1,764 |  |  | 4,157 |  |  | 385 |  |  | — |  |  | 385 |  |  | — |  |  | 268 |  |  | 26 |  |  | 1 |  |  | (4,837 | ) |  | — |  |
Production and delivery | 1,043 |  |  | 367 |  |  | 1,333 |  |  | 2,743 |  |  | 1,878 |  | b | 366 |  |  | 2,244 |  |  | 1,735 |  | c | 226 |  |  | 4,467 |  |  | 1,966 |  |  | (3,123 | ) |  | 10,258 |  |
Depreciation, depletion and amortization | 178 |  |  | 40 |  |  | 207 |  |  | 425 |  |  | 441 |  |  | 84 |  |  | 525 |  |  | 556 |  |  | 76 |  |  | 10 |  |  | 28 |  |  | 94 |  |  | 1,714 |  |
Metals inventory adjustments | — |  |  | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 5 |  |  | 8 |  |
Selling, general and administrative expenses | 2 |  |  | — |  |  | 2 |  |  | 4 |  |  | 9 |  |  | — |  |  | 9 |  |  | 126 |  | c | — |  |  | — |  |  | 18 |  |  | 320 |  |  | 477 |  |
Mining exploration and research expenses | — |  |  | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 91 |  |  | 93 |  |
Environmental obligations and shutdown costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 244 |  |  | 244 |  |
Net gain on sales of assets | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (81 | ) |  | (81 | ) |
Operating income (loss) | 870 |  |  | 143 |  |  | 376 |  |  | 1,389 |  |  | 868 |  |  | 48 |  |  | 916 |  |  | 2,028 |  |  | (35 | ) |  | 5 |  |  | 20 |  |  | (633 | ) |  | 3,690 |  |
Interest expense, net | 3 |  |  | — |  |  | 1 |  |  | 4 |  |  | 212 |  | b | — |  |  | 212 |  |  | 4 |  |  | — |  |  | — |  |  | 18 |  |  | 563 |  |  | 801 |  |
Provision for (benefit from) income taxes | — |  |  | — |  |  | — |  |  | — |  |  | 436 |  | b | 10 |  |  | 446 |  |  | 869 |  |  | — |  |  | — |  |  | 5 |  |  | (437 | ) | d | 883 |  |
Total assets at December 31, 2017 | 2,861 |  |  | 650 |  |  | 3,591 |  |  | 7,102 |  |  | 8,878 |  |  | 1,702 |  |  | 10,580 |  |  | 10,911 |  |  | 1,858 |  |  | 277 |  |  | 822 |  |  | 5,752 |  |  | 37,302 |  |
Capital expenditures | 114 |  |  | 12 |  |  | 41 |  |  | 167 |  |  | 103 |  |  | 12 |  |  | 115 |  |  | 875 |  |  | 5 |  |  | 4 |  |  | 41 |  |  | 203 |  |  | 1,410 |  |
a. | 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.
b. | Includes net charges totaling $203 million in production and delivery costs, $145 million in interest expense, and $7 million of net tax charges associated with disputed royalties for prior years.
c. | Includes net charges at PT-FI associated with workforce reductions totaling $120 million in production and delivery costs and $5 million in selling, general and administrative expenses.
d. Includes net tax credits of $438 million primarily related to the Act. Refer to Note 11 for further discussion.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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