FREEPORT-MCMORAN INC, 10-Q filed on 11/7/2017
Quarterly Report
Document and Entity Information Document (USD $)
In Billions, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Oct. 31, 2017
Jun. 30, 2016
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
FREEPORT-MCMORAN INC 
 
 
Entity Central Index Key
0000831259 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 14.6 
Entity Common Stock, Shares Outstanding
 
1,447,590,668 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
Q3 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Sep. 30, 2017 
 
 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 4,957 
$ 4,245 
Trade accounts receivable
1,024 
1,126 
Income and other tax receivables
522 
879 
Inventories:
 
 
Total materials and supplies, net
1,276 
1,306 
Mill and leach stockpiles
1,393 
1,338 
Product
1,188 
998 
Other current assets
241 
199 
Assets held for sale
549 
344 
Total current assets
11,150 
10,435 
Property, plant, equipment and mine development costs, net
22,914 
23,219 
Oil and gas properties, subject to amortization, less accumulated amortization and impairments
20 
74 
Long-term mill and leach stockpiles
1,453 
1,633 
Other assets
1,790 
1,956 
Total assets
37,327 
37,317 
Current liabilities:
 
 
Accounts payable and accrued liabilities
2,098 
2,393 
Current portion of debt
2,215 
1,232 
Accrued income taxes
464 
66 
Current portion of environmental and asset retirement obligations
419 
369 
Liabilities held for sale
321 
205 
Total current liabilities
5,517 
4,265 
Long-term debt, less current portion
12,567 
14,795 
Deferred income taxes
3,771 
3,768 
Environmental and asset retirement obligations, less current portion
3,498 
3,487 
Other liabilities
1,744 
1,745 
Total liabilities
27,097 
28,060 
Stockholders’ equity:
 
 
Common stock
158 
157 
Capital in excess of par value
26,743 
26,690 
Accumulated deficit
(15,763)
(16,540)
Accumulated other comprehensive loss
(443)
(548)
Common stock held in treasury
(3,722)
(3,708)
Total stockholders’ equity
6,973 
6,051 
Noncontrolling interests
3,257 
3,206 
Total equity
10,230 
9,257 
Total liabilities and equity
$ 37,327 
$ 37,317 
Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]
 
 
 
 
Revenues
$ 4,310 
$ 3,877 
$ 11,362 
$ 10,453 
Cost of sales:
 
 
 
 
Production and delivery
2,802 
2,529 
7,497 
7,984 
Depreciation, depletion and amortization
418 
643 
1,257 
1,937 
Impairment of oil and gas properties
0 
239 
0 
4,300 
Total cost of sales
3,220 
3,411 
8,754 
14,238 
Selling, general and administrative expenses
106 
110 
366 
408 
Mining exploration and research expenses
27 
13 
61 
46 
Environmental obligations and shutdown costs (credits)
73 
(3)
81 
18 
Net gain on sales of assets
(33)
(13)
(66)
(762)
Total costs and expenses
3,393 
3,518 
9,196 
13,948 
Operating income (loss)
917 
359 
2,166 
(3,495)
Interest expense, net
(304)
(187)
(633)
(574)
Net loss (gain) on exchanges and early extinguishment of debt
11 
15 
8 
51 
Other income (expense), net
2 
(10)
36 
54 
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
626 
177 
1,577 
(3,964)
(Provision for) benefit from income taxes
(387)
114 
(747)
(79)
Equity in affiliated companies’ net earnings
3 
1 
6 
9 
Net income (loss) from continuing operations
242 
292 
836 
(4,034)
Net income (loss) from discontinued operations
3 
(6)
50 
(191)
Net income (loss)
245 
286 
886 
(4,225)
Net income attributable to noncontrolling interests:
 
 
 
 
Continuing operations
35 
(37)
(106)
(146)
Discontinued operations
0 
(22)
(4)
(44)
Preferred dividends attributable to redeemable noncontrolling interest
0 
(10)
0 
(31)
Net income (loss) attributable to common stockholders
$ 280 
$ 217 
$ 776 
$ (4,446)
Basic and diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
Continuing operations
$ 0.19 
$ 0.18 
$ 0.50 
$ (3.27)
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.03 
$ (0.18)
Basic and diluted net income (loss) per share attributable to common stockholders:
$ 0.19 
$ 0.16 
$ 0.53 
$ (3.45)
Basic
1,448 
1,346 
1,447 
1,289 
Diluted
1,454 
1,351 
1,453 
1,289 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income (loss)
$ 245 
$ 286 
$ 886 
$ (4,225)
Other comprehensive (loss) income, net of taxes:
 
 
 
 
Unrealized gains on securities
0 
2 
2 
3 
Defined benefit plans:
 
 
 
 
Defined Benefit Plan, Gain (Loss), Actuarial Gain, Net of Tax
0 
0 
69 
0 
Amortization or curtailment of unrecognized amounts included in net periodic benefit costs
12 
11 
42 
34 
Foreign exchange gains (losses)
1 
(1)
0 
(11)
Defined Benefit Plan, Gain (Loss), Actuarial Gain, Tax
0 
 
48 
 
Other comprehensive income
13 
12 
113 
26 
Total comprehensive income (loss)
258 
298 
999 
(4,199)
Total comprehensive loss (income) attributable to noncontrolling interests
35 
(59)
(118)
(189)
Preferred dividends attributable to redeemable noncontrolling interest
0 
(10)
0 
(31)
Total comprehensive income (loss)
$ 293 
$ 229 
$ 881 
$ (4,419)
Consolidated Statements of Cash Flows (Unaudited) (USD $)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
North America Copper Mines Segment [Member]
Sep. 30, 2016
North America Copper Mines Segment [Member]
Sep. 30, 2017
South America Mines Segment [Member]
Sep. 30, 2016
South America Mines Segment [Member]
Sep. 30, 2017
Other Segments [Member]
Sep. 30, 2016
Other Segments [Member]
Sep. 30, 2017
Morenci [Member]
Sep. 30, 2016
Morenci [Member]
Cash flow from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$ 886,000,000 
$ (4,225,000,000)
 
 
 
 
 
 
 
 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization
1,257,000,000 
2,017,000,000 
 
 
 
 
 
 
 
 
Net charges for Cerro Verde royalty dispute
359,000,000 
0 
 
 
 
 
 
 
 
 
Payments for Cerro Verde royalty dispute
32,000,000 
20,000,000 
 
 
 
 
 
 
 
 
Impairment of oil and gas properties
0 
4,300,000,000 
 
 
 
 
 
 
 
 
Gain (Loss) on Contract Termination
33,000,000 
(705,000,000)
 
 
 
 
 
 
 
 
Net gain on sales of assets
(66,000,000)
(762,000,000)
 
 
 
 
 
 
 
 
Net charges for environmental and asset retirement obligations, including accretion
196,000,000 
149,000,000 
 
 
 
 
 
 
 
 
Payments for environmental and asset retirement obligations
85,000,000 
190,000,000 
 
 
 
 
 
 
 
 
Pension and Other Postretirement Benefits Expense (Reversal of Expense), Noncash
95,000,000 
78,000,000 
 
 
 
 
 
 
 
 
Payment for Pension and Other Postretirement Benefits
(152,000,000)
(44,000,000)
 
 
 
 
 
 
 
 
Net loss (gain) on exchanges and early extinguishment of debt
8,000,000 
51,000,000 
 
 
 
 
 
 
 
 
Deferred income taxes
77,000,000 
(22,000,000)
 
 
 
 
 
 
 
 
Gain on disposal of discontinued operations
41,000,000 
(182,000,000)
 
 
 
 
 
 
 
 
Decrease (increase) in long term mill and leach stockpiles
181,000,000 
(84,000,000)
 
 
 
 
 
 
 
 
Oil and gas contract settlement payments
70,000,000 
0 
 
 
 
 
 
 
 
 
Other, net
59,000,000 
61,000,000 
 
 
 
 
 
 
 
 
Changes in working capital and other tax payments, excluding amounts from dispositions:
 
 
 
 
 
 
 
 
 
 
Accounts receivable
420,000,000 
257,000,000 
 
 
 
 
 
 
 
 
Inventories
(314,000,000)
251,000,000 
 
 
 
 
 
 
 
 
Other current assets
(17,000,000)
(120,000,000)
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
(93,000,000)
(80,000,000)
 
 
 
 
 
 
 
 
Accrued income taxes and changes in other tax payments
399,000,000 
175,000,000 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
3,018,000,000 
2,594,000,000 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
1,020,000,000 
2,309,000,000 
106,000,000 
87,000,000 
65,000,000 
332,000,000 
182,000,000 
1,182,000,000 
 
 
Proceeds from Divestiture of Businesses and Interests in Affiliates
 
 
 
 
 
 
 
 
0 
996,000,000 
Proceeds from Sale of Other Assets, Investing Activities
68,000,000 
410,000,000 
 
 
 
 
 
 
 
 
Other, net
(22,000,000)
9,000,000 
 
 
 
 
 
 
 
 
Net cash used in investing activities
(974,000,000)
(894,000,000)
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from debt
795,000,000 
3,463,000,000 
 
 
 
 
 
 
 
 
Repayments of debt
(1,991,000,000)
(4,539,000,000)
 
 
 
 
 
 
 
 
Net proceeds from sale of common stock
0 
442,000,000 
 
 
 
 
 
 
 
 
Cash dividends paid:
 
 
 
 
 
 
 
 
 
 
Common stock
(2,000,000)
(5,000,000)
 
 
 
 
 
 
 
 
Noncontrolling interests
67,000,000 
87,000,000 
 
 
 
 
 
 
 
 
Stock-based awards net payments
(10,000,000)
(5,000,000)
 
 
 
 
 
 
 
 
Debt financing costs and other, net
(12,000,000)
(17,000,000)
 
 
 
 
 
 
 
 
Net cash used in financing activities
(1,287,000,000)
(748,000,000)
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
757,000,000 
952,000,000 
 
 
 
 
 
 
 
 
Increase in cash and cash equivalents in assets held for sale
(45,000,000)
(43,000,000)
 
 
 
 
 
 
 
 
Cash and cash equivalents at beginning of year
4,245,000,000 
177,000,000 
 
 
 
 
 
 
 
 
Cash and cash equivalents at end of period
$ 4,957,000,000 
$ 1,086,000,000 
 
 
 
 
 
 
 
 
Consolidated Statement of Equity (Unaudited) (USD $)
In Millions, unless otherwise specified
Total
Common Stock
Capital in Excess of Par Value
Accumulated Deficit
Accumulated Other Comprehensive Loss
Common Stock Held in Treasury
Total Stockholder's Equity
Noncontrolling Interests
Balance at Dec. 31, 2016
$ 9,257 
$ 157 
$ 26,690 
$ (16,540)
$ (548)
$ (3,708)
$ 6,051 
$ 3,206 
Balance (in shares) at Dec. 31, 2016
 
1,574 
 
 
 
129 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Exercised and issued stock-based awards (in shares)
 
4 
 
 
 
 
 
 
Exercised and issued stock-based awards
5 
1 
4 
0 
0 
 
5 
0 
Stock-based compensation
49 
0 
49 
0 
0 
0 
49 
0 
Stock Issued During Period, Shares, Issued for Services
 
 
 
 
 
0 
 
 
Tender of shares for stock based awards shares
 
0 
 
 
 
(1)
 
 
Tender of shares for stock-based awards
(14)
0 
0 
0 
0 
(14)
(14)
0 
Dividends
(66)
0 
0 
1 
0 
 
1 
 
Dividends to noncontrolling interests
 
 
 
 
 
 
 
(67)
Net income attributable to common stockholders
776 
0 
 
776 
 
0 
776 
0 
Net income attributable to noncontrolling interests, including discontinued operations
110 
0 
 
 
 
0 
0 
110 
Other comprehensive income
113 
0 
0 
 
105 
0 
105 
8 
Balance at Sep. 30, 2017
$ 10,230 
$ 158 
$ 26,743 
$ (15,763)
$ (443)
$ (3,722)
$ 6,973 
$ 3,257 
Balance (in shares) at Sep. 30, 2017
 
1,578 
 
 
 
130 
 
 
General Information (Unaudited)
General Information
GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2016. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. With the exception of the accounting for discontinued operations, assets held for sale, the remeasurement of a pension plan and charges related to a continuing royalty dispute with respect to historical periods at FCX’s mine in Peru, all such adjustments are, in the opinion of management, of a normal recurring nature. As a result of FCX’s sale of its interest in TF Holdings Limited (TFHL), FCX has reported TFHL as discontinued operations for all periods presented in the unaudited consolidated financial statements (refer to Note 2). Operating results for the nine-month period ended September 30, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

Indonesia Mining. As a result of the first-quarter 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT Freeport Indonesia (PT-FI) took actions to adjust its cost structure, reduce its workforce and slow investments in its underground development projects and new smelter. These actions included workforce reductions through furlough and voluntary retirement programs. Following the furlough and voluntary retirement programs, a significant number of employees and contractors elected to participate in an illegal strike action beginning in May 2017, and were subsequently deemed to have voluntarily resigned under existing laws and regulations. As a result, PT-FI recorded charges to operating income for employee severance and related costs totaling $9 million for third-quarter 2017 and $113 million for the first nine months of 2017.

Additionally, because of the significant reduction in workforce, PT-FI was required to remeasure its pension assets and pension benefit obligation as of June 30, 2017. The discount rate and rate of compensation increase used for the June 30, 2017, remeasurement were 7.50 percent and 4.00 percent, respectively, compared to the December 31, 2016, discount rate of 8.25 percent and the rate of compensation increase of 8.00 percent. The expected long-term rate of return on the plan assets was unchanged (7.75 percent). The remeasurement and curtailment resulted in the projected benefit obligation declining by $145 million and plan assets declining by $21 million. In addition, PT-FI recognized a curtailment loss of $4 million in second-quarter 2017 and for the first nine months of 2017. As of September 30, 2017, the funded status of PT-FI’s pension plan was a net asset of $36 million (included in other assets in the consolidated balance sheet), compared with a net liability of $90 million (included in other liabilities in the consolidated balance sheet) as of December 31, 2016.

Oil and Gas Properties. During 2016, FCX Oil & Gas LLC (FM O&G, a wholly owned subsidiary of FCX) determined the carrying values of certain of its unevaluated properties were impaired. During the first nine months of 2016, FM O&G transferred $3.2 billion of costs (including $3.1 billion in first-quarter 2016) associated with unevaluated properties to the full cost pool, mostly reflecting impairment of the carrying values of unevaluated properties. The transfer of unevaluated properties to the full cost pool, along with the impact of the reduction in twelve-month historical prices and reserve revisions in 2016 caused net capitalized costs to exceed the related ceiling test limitation under full cost accounting rules. As a result, FM O&G recognized impairment charges of $239 million in third-quarter 2016 and $4.3 billion for the first nine months of 2016. Refer to Note 1 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.
Dispositions (Notes)
Dispositions
DISPOSITIONS

TF Holdings Limited - Discontinued Operations. FCX had a 70 percent interest in TFHL, which owns 80 percent of Tenke Fungurume Mining S.A. (TFM or Tenke) located in the Democratic Republic of Congo (DRC). On November 16, 2016, FCX completed the sale of its interest in TFHL to China Molybdenum Co., Ltd. (CMOC) for $2.65 billion in cash (before closing adjustments) and contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019. The contingent consideration is considered a derivative, and at September 30, 2017, the related fair value of $58 million was recorded in other assets on the consolidated balance sheets. During the first nine months of 2017, the fair value of the contingent consideration derivative increased by $45 million ($3 million in third-quarter 2017), primarily resulting from higher cobalt prices, and was recorded in net income (loss) from discontinued operations.

In accordance with accounting guidance, FCX has reported the results of operations of TFHL as discontinued operations in the consolidated statements of operations. The consolidated statements of cash flows are reported on a combined basis without separately presenting discontinued operations.

Net income (loss) from discontinued operations in the consolidated statements of operations consists of the following (in millions):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Revenues
$
—

 
$
261

a 
$
13

a 
$
819

a 
Costs and expenses:
 
 
 
 
 
 
 
 
Production and delivery costs
—

 
248

 
—

 
730

 
Depreciation, depletion and amortization
—


—

 
—

 
80

 
Interest expense allocated from parent
—

 
12

b 
—

 
33

b 
Other costs and expenses, net
—

 
4

 
—

 
10

 
Income (loss) before income taxes and net gain (loss) on disposal
—

 
(3
)
 
13

 
(34
)
 
Net gain (loss) on disposal
3

c 
(5
)
d 
41

c 
(182
)
d 
Net income (loss) before income taxes
3

 
(8
)
 
54

 
(216
)
 
Benefit from (provision for) income taxes
—

 
2

 
(4
)
 
25

 
Net income (loss) from discontinued operations
$
3

 
$
(6
)
 
$
50

 
$
(191
)
 

a.
In accordance with accounting guidance, amounts are net of (eliminations) recognition of intercompany sales totaling $(53) million in third-quarter 2016, $13 million for the first nine months of 2017 and $(125) million for the first nine months of 2016.
b.
In accordance with accounting guidance, interest associated with FCX’s term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations.
c.
Includes a gain of $3 million in third-quarter 2017 and $45 million for the first nine months of 2017 associated with the change in the fair value of contingent consideration.
d.
In accordance with accounting guidance, an estimated loss on disposal was recorded and adjusted through closing of the transaction in November 2016.

Cash flows from discontinued operations included in the consolidated statements of cash flows for the nine months ended September 30, 2016, follow (in millions):
Net cash provided by operating activities
 
$
213

Net cash used in investing activities
 
(71
)
Net cash used in financing activities
 
(103
)
Increase in cash and cash equivalents in assets held for sale
 
$
39




Oil and Gas Operations. On July 31, 2017, FM O&G sold certain property interests in the Gulf of Mexico Shelf for cash consideration of $62 million, before closing adjustments, with an effective date of April 1, 2017. On March 17, 2017, FM O&G sold property interests in the Madden area in central Wyoming for cash consideration of $17.5 million, before closing adjustments. Under the full cost accounting rules, the sales resulted in the recognition of gains of $33 million in third-quarter 2017 and $49 million for the first nine months of 2017 because the reserves associated with these properties were significant to the full cost pool.

On June 17, 2016, FM O&G sold certain oil and gas royalty interests for cash consideration of $102 million, before closing adjustments. In addition, on July 25, 2016, FM O&G sold its Haynesville shale assets for cash consideration of $87 million, before closing adjustments. Under the full cost accounting rules, the proceeds from these transactions were recorded as a reduction to capitalized oil and gas properties, with no gain or loss recognition for the first nine months of 2016 because the reserves were not significant to the full cost pool.

Morenci. On May 31, 2016, FCX sold a 13 percent undivided interest in its Morenci unincorporated joint venture to SMM Morenci, Inc. for $1.0 billion in cash. FCX recorded a $576 million gain for the first nine months of 2016 and used losses to offset cash taxes on the transaction. A portion of the proceeds from the transaction was used to repay borrowings under FCX's unsecured bank term loan and revolving credit facility. As a result of the transaction, the unincorporated joint venture is owned 72 percent by FCX, 15 percent by Sumitomo Metal Mining Arizona, Inc. and 13 percent by SMM Morenci, Inc.

Timok. On May 2, 2016, Freeport Minerals Corporation (FMC), a wholly owned subsidiary of FCX, sold an interest in the Timok exploration project in Serbia to Global Reservoir Minerals Inc. (now known as Nevsun Resources, Ltd.) for consideration of $135 million in cash and contingent consideration of up to $107 million payable to FCX in stages upon achievement of defined development milestones. As a result of this transaction, FCX recorded a gain of $133 million for the first nine months of 2016, and no amounts were recorded for contingent consideration under the loss recovery approach.

Assets Held for Sale. Freeport Cobalt includes the large-scale cobalt refinery in Kokkola, Finland, and the related sales and marketing business, in which FCX owns an effective 56 percent interest. Kisanfu is a copper and cobalt exploration project, located near Tenke, in which FCX holds a 100 percent interest. As a result of the sale of TFHL, FCX expects to sell its interest in Freeport Cobalt and Kisanfu, and the assets and liabilities of Freeport Cobalt and Kisanfu are classified as held for sale in the consolidated balance sheets. During the first nine months of 2017, a favorable adjustment of $13 million was recorded in net gain on sales of assets in the consolidated statements of operations associated with the estimated fair value less costs to sell for the Kisanfu exploration project. The adjustment was limited to the reduction in the carrying value when the Kisanfu exploration project was initially classified as held for sale in November 2016.
Earnings per Share (Unaudited) Earnings per Share (Notes)
Earnings Per Share
EARNINGS PER SHARE

FCX calculates its basic net income (loss) per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income (loss) per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive.

Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Net income (loss) from continuing operations
$
242

 
$
292

 
$
836

 
$
(4,034
)
 
Net loss (income) from continuing operations attributable to noncontrolling interests
35

 
(37
)
 
(106
)
 
(146
)
 
Preferred dividends on redeemable noncontrolling interest
—

 
(10
)
 
—

 
(31
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(3
)
 
Net income (loss) from continuing operations attributable to common stockholders
$
274

 
$
242

 
$
727

 
$
(4,214
)
 
 
 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations
$
3

 
$
(6
)
 
$
50

 
$
(191
)
 
Net income from discontinued operations attributable to noncontrolling interests
—

 
(22
)
 
(4
)
 
(44
)
 
Net income (loss) from discontinued operations attributable to common stockholders
$
3

 
$
(28
)
 
$
46

 
$
(235
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
277

 
$
214

 
$
773

 
$
(4,449
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,448

 
1,346

 
1,447

 
1,289

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units
6

 
5

 
6

 
—

a 
Diluted weighted-average shares of common stock outstanding
1,454

 
1,351

 
1,453

 
1,289

 
 
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
0.19

 
$
0.18

 
$
0.50

 
$
(3.27
)
 
Discontinued operations
—

 
(0.02
)
 
0.03

 
(0.18
)
 
 
$
0.19

 
$
0.16

 
$
0.53

 
$
(3.45
)
 
 
 
 
 
 
 
 
 
 
a.
Excludes 12 million shares of common stock for the first nine months of 2016 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and restricted stock units that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income (loss) per share of common stock. Stock options for 38 million shares of common stock were excluded for third-quarter 2017, 46 million for third-quarter 2016, 42 million for the first nine months of 2017 and 46 million for the first nine months of 2016.
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited)
Inventories, Including Long-Term Mill and Leach Stockpiles
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):
 
September 30,
2017
 
December 31, 2016
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,276

 
$
1,306

 
 
 
 
 
 
Mill stockpiles
$
336

 
$
259

 
Leach stockpiles
1,057

 
1,079

 
Total current mill and leach stockpiles
$
1,393

 
$
1,338

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
285

 
$
255

 
Work-in-process
154

 
114

 
Finished goods
749

 
629

 
Total product inventories
$
1,188

 
$
998

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
346

 
$
487

 
Leach stockpiles
1,107

 
1,146

 
Total long-term mill and leach stockpilesb
$
1,453

 
$
1,633

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $31 million at September 30, 2017, and $29 million at December 31, 2016.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
Income Taxes (Unaudited)
Income Taxes
INCOME TAXES

Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate. FCX’s consolidated effective income tax rate was 47 percent for the first nine months of 2017 and (2) percent for first nine months of 2016. Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
U.S. operationsa
$
2

 
$
331

 
$
24

 
$
293

 
International operations
(389
)
b 
(217
)
 
(771
)
b 
(372
)
 
Total
$
(387
)
 
$
114

 
$
(747
)
 
$
(79
)
 

a.
Includes net tax (charges) credits of $(10) million for third-quarter 2017 and $21 million for the first nine months of 2017 associated with alternative minimum tax credit carryforwards. The third quarter and first nine months of 2016 include net tax credits of $332 million and $290 million, respectively, associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
b.
Includes net charges of $2 million associated with the Cerro Verde mining royalties dispute, consisting of tax charges of $127 million for disputed royalties and other related mining taxes for the period October 2011 through the year 2013 (when royalties were determined based on operating income), mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.

As a result of the unfavorable Peruvian Supreme Court ruling on the Cerro Verde royalty dispute, FCX recorded pre-tax charges of $357 million to income from continuing operations and $2 million of net tax expense for the first nine months of 2017. FCX’s consolidated effective income tax rate was 39 percent for the first nine months of 2017 excluding these charges.

As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges of $1.6 billion for the first nine months of 2016 to establish a valuation allowance primarily against U.S. federal and state deferred tax assets that will not generate a future benefit. FCX’s consolidated effective income tax rate was 32 percent for the first nine months of 2016 excluding these tax charges.
Debt
Debt
NOTE 6. DEBT

The components of debt follow (in millions):
 
 
September 30,
2017
 
December 31, 2016
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
12,811

 
$
13,745

Issued by FMC
 
358

 
359

Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)
 
122

 
267

Cerro Verde credit facility
 
1,486

 
1,390

Cerro Verde shareholder loans
 
—

 
261

Other
 
5

 
5

Total debta
 
14,782

 
16,027

Less current portion of debt
 
(2,215
)
 
(1,232
)
Long-term debt
 
$
12,567

 
$
14,795

a.
Includes additions for unamortized fair value adjustments totaling $131 million at September 30, 2017 ($179 million at December 31, 2016), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $92 million at September 30, 2017 ($100 million at December 31, 2016).

Revolving Credit Facility. At September 30, 2017, there were no borrowings outstanding and $36 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.

Senior Notes Issued by FCX. In March 2017, FCX’s 2.15% Senior Notes matured, and the $500 million outstanding principal balance was repaid.

Cerro Verde Credit Facility and Shareholder Loans. In June 2017, Cerro Verde’s credit facility was amended to increase the commitment by $225 million to $1.5 billion, modify the amortization schedule and to extend the maturity date to June 19, 2022. The amended credit facility amortizes in four installments, with $225 million due on December 31, 2020, $225 million due on June 30, 2021, $525 million due on December 31, 2021, and the remaining balance due on the maturity date of June 19, 2022. All other terms, including the interest rates, remain the same. The interest rate on Cerro Verde's credit facility was 3.14 percent at September 30, 2017. Cerro Verde used proceeds from its amended credit facility plus available cash to repay the balance of its shareholder loans in June 2017. Refer to Note 8 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.

Exchanges and Early Extinguishment of Debt. During third-quarter 2017, FCX redeemed in full certain senior notes. A summary of these early debt extinguishments follows (in millions):

 
Principal Amount
 
Net Adjustments
 
Book Value
 
Redemption Value
 
Gain
FCX 6.125% Senior Notes due 2019
$
179

 
$
5

 
$
184

 
$
182

 
$
2

FM O&G 6.125% Senior Notes due 2019
58

 
2

 
60

 
59

 
1

FCX 6.625% Senior Notes due 2021
228

 
12

 
240

 
234

 
6

FM O&G 6.625% Senior Notes due 2021
33

 
2

 
35

 
34

 
1

FM O&G 6.75% Senior Notes due 2022
45

 
2

 
47

 
46

 
1

 
$
543

 
$
23

 
$
566

 
$
555

 
$
11



Partially offsetting the $11 million gain on early extinguishment of certain senior notes was a net loss of $3 million, primarily associated with the modification of Cerro Verde’s credit facility in second-quarter 2017.

During the second and third quarters of 2016, FCX redeemed certain senior notes in exchange for its common stock, which resulted in gains of $15 million in third-quarter 2016 and $54 million for the first nine months of 2016. Partially offsetting the gains were $3 million in losses, primarily associated with the modification of FCX’s revolving credit facility in first-quarter 2016. Refer to Notes 8 and 10 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.

Interest Expense, Net. Consolidated interest costs from continuing operations (before capitalization and excluding $141 million of interest expense associated with disputed Cerro Verde royalties recorded in third-quarter 2017) totaled $196 million in third-quarter 2017, $211 million in third-quarter 2016, $583 million for the first nine months of 2017 and $647 million for the first nine months of 2016. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $33 million in third-quarter 2017, $24 million in third-quarter 2016, $91 million for the first nine months of 2017 and $66 million for the first nine months of 2016. Capitalized interest added to oil and gas properties not subject to amortization totaled $7 million for the first nine months of 2016 (none in third-quarter 2016 or 2017).
Financial Instruments (Notes)
Financial Instruments
FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As of September 30, 2017, and December 31, 2016, FCX had no price protection contracts relating to its mine production. A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments – Fair Value Hedges
Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the nine-month periods ended September 30, 2017 and 2016. At September 30, 2017, FCX held copper futures and swap contracts that qualified for hedge accounting for 46 million pounds at an average contract price of $2.83 per pound, with maturities through June 2019.

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized gains (losses):
 
 
 
 
 
 
 
Derivative financial instruments
$
—

 
$
1

 
$
(1
)
 
$
11

Hedged item – firm sales commitments
—

 
(1
)
 
1

 
(11
)
 
 
 
 
 
 
 
 
Realized gains (losses):
 
 
 
 
 
 
 
Matured derivative financial instruments
12

 
—

 
21

 
(8
)


Derivatives Not Designated as Hedging Instruments
Embedded Derivatives. As described in Note 1 to FCX’s annual report on Form 10-K for the year ended December 31, 2016, under “Revenue Recognition,” certain FCX copper concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract. Similarly, FCX purchases copper under contracts that provide for provisional pricing. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host sales agreements since the contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain an embedded derivative (i.e., the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price or the London gold price as defined in the contract. Mark-to-market price fluctuations from these embedded derivatives related to continuing operations are recorded through the settlement date and are reflected in revenues for sales contracts and in cost of sales as production and delivery costs for purchase contracts. Mark-to-market price fluctuations associated with embedded derivatives for discontinued operations, which were minimal, are included in discontinued operations for all periods presented in these financial statements.

A summary of FCX’s embedded derivatives at September 30, 2017, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
546

 
$
2.84

 
$
2.93

 
February 2018
Gold (thousands of ounces)
194

 
1,318

 
1,287

 
December 2017
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
155

 
2.83

 
2.93

 
January 2018


Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At September 30, 2017, Atlantic Copper held net copper forward purchase contracts for 5 million pounds at an average contract price of $2.95 per pound, with maturities through October 2017.

Summary of Gains (Losses). A summary of the realized and unrealized gains (losses) recognized in operating income (loss) for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Embedded derivatives in provisional copper and gold
 
 
 
 
 
 
 
sales contractsa
$
137

 
$
12

 
$
297

 
$
88

Copper forward contractsb
(9
)
 
(1
)
 
(14
)
 
4

a.
Amounts recorded in revenues. 
b.
Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments
A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):
 
 
September 30,
2017
 
December 31, 2016
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
7

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper and gold
 
 
 
 
sales/purchase contracts
 
74

 
137

Total derivative assets
 
$
81

 
$
146

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
2

 
$
2

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper and gold
 
 
 
 
sales/purchase contracts
 
46

 
56

Total derivative liabilities
 
$
48

 
$
58



FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by counterparty on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
September 30, 2017
 
December 31, 2016
 
September 30, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
74

 
$
137

 
$
46

 
$
56

Copper derivatives
 
7

 
9

 
2

 
2

 
 
81

 
146

 
48

 
58

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
1

 
12

 
1

 
12

Copper derivatives
 
2

 
2

 
2

 
2

 
 
3

 
14

 
3

 
14

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
73

 
125

 
45

 
44

Copper derivatives
 
5

 
7

 
—

 
—

 
 
$
78

 
$
132

 
$
45

 
$
44

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
69

 
$
119

 
$
24

 
$
13

Other current assets
 
5

 
7

 
—

 
—

Accounts payable and accrued liabilities
 
4

 
6

 
21

 
31

 
 
$
78

 
$
132

 
$
45

 
$
44



Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of September 30, 2017, the maximum amount of credit exposure associated with derivative transactions was $78 million.

Other Financial Instruments. Other financial instruments include cash and cash equivalents, accounts receivable, restricted cash, investment securities, legally restricted funds, accounts payable and accrued liabilities, and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $1.9 billion at September 30, 2017, and $64 million at December 31, 2016), accounts receivable, restricted cash, and accounts payable and accrued liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 8 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of September 30, 2017, FCX has contingent consideration assets related to certain 2016 asset sales (refer to Note 8 for the related fair value and to Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion of these instruments).
FAIR VALUE MEASUREMENT (Notes)
Fair Value Measurements
FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for third-quarter 2017.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities (refer to Note 7) follows (in millions):
 
At September 30, 2017
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
25

 
$
25

 
$
25

 
$
—

 
$
—

 
$
—

Money market funds
21

 
21

 
—

 
21

 
—

 
—

Equity securities
6

 
6

 
—

 
6

 
—

 
—

Total
52

 
52

 
25

 
27

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
55

 
55

 
55

 
—

 
—

 
—

Government bonds and notes
38

 
38

 
—

 
—

 
38

 
—

Corporate bonds
30

 
30

 
—

 
—

 
30

 
—

Government mortgage-backed securities
25

 
25

 
—

 
—

 
25

 
—

Money market funds
18

 
18

 
—

 
18

 
—

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Collateralized mortgage-backed securities
8

 
8

 
—

 
—

 
8

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
189

 
189

 
55

 
18

 
116

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross asset positionc
74

 
74

 
—

 
—

 
74

 
—

Copper futures and swap contractsc
7

 
7

 
—

 
5

 
2

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
80

 
80

 
—

 
—

 
80

 
—

Total
161

 
161

 
—

 
5

 
156

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
     Deepwater GOM oil and gas propertiesa
150

 
138

 
—

 
—

 
—

 
138

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
$
540

 
$
80

 
$
50

 
$
272

 
$
138

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross liability position
46

 
$
46

 
$
—

 
$
—

 
$
46

 
$
—

Copper futures and swap contracts
2

 
2

 
—

 
1

 
1

 
—

Total
48

 
48

 
—

 
1

 
47

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
14,782

 
14,735

 
—

 
—

 
14,735

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
$
14,783

 
$
—

 
$
1

 
$
14,782

 
$
—



 
At December 31, 2016
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
23

 
$
23

 
$
23

 
$
—

 
$
—

 
$
—

Money market funds
22

 
22

 
—

 
22

 
—

 
—

Equity securities
5

 
5

 
—

 
5

 
—

 
—

Total
50

 
50

 
23

 
27

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
53

 
53

 
53

 
—

 
—

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
32

 
32

 
—

 
—

 
32

 
—

Government mortgage-backed securities
25

 
25

 
—

 
—

 
25

 
—

Asset-backed securities
16

 
16

 
—

 
—

 
16

 
—

Money market funds
12

 
12

 
—

 
12

 
—

 
—

Collateralized mortgage-backed securities
8

 
8

 
—

 
—

 
8

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
183

 
183

 
53

 
12

 
118

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross asset positionc
137

 
137

 
—

 
—

 
137

 
—

Copper futures and swap contractsc
9

 
9

 
—

 
8

 
1

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
46

 
46

 
—

 
—

 
46

 
—

Total
192

 
192

 
—

 
8

 
184

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
150

 
135

 
—

 
—

 
—

 
135

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
$
560

 
$
76

 
$
47

 
$
302

 
$
135

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross liability position
56

 
$
56

 
$
—

 
$
—

 
$
56

 
$
—

Copper futures and swap contracts
2

 
2

 
—

 
2

 
—

 
—

Total
58

 
58

 
—

 
2

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent payments for the settlements of
 
 
 
 
 
 
 
 
 
 
 
drilling rig contractse
23

 
23

 
—

 
—

 
23

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
16,027

 
15,196

 
—

 
—

 
15,196

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
$
15,277

 
$
—

 
$
2

 
$
15,275

 
$
—


a.
Current portion included in other current assets and long-term portion included in other assets.
b.
Excludes time deposits (which approximated fair value) included in (i) other current assets of $41 million at September 30, 2017, and $28 million at December 31, 2016, and (ii) other assets of $122 million at both September 30, 2017, and December 31, 2016, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.
c.
Refer to Note 7 for further discussion and balance sheet classifications.
d.
Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
e.
Included in accounts payable and accrued liabilities.


Valuation Techniques. The U.S. core fixed income fund is valued at net asset value (NAV). The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity (refer to Note 7 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 7 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

The fair value of contingent consideration for the sales of TFHL and onshore California oil and gas properties is calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy.

The fair value of contingent consideration for the sale of Deepwater GOM oil and gas properties is calculated based on a discounted cash flow model using inputs that include third-party reserve estimates, production rates, production timing and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

The December 31, 2016, fair value of contingent payments for the settlements of drilling rig contracts was calculated based on the average price forecasts of West Texas Intermediate (WTI) crude oil over the 12-month period ending June 30, 2017, using a mean-reverting model. The model used various observable inputs, including WTI crude oil forward prices, volatilities, discount rate and settlement terms. As a result, these contingent payments were classified within Level 2 of the fair value hierarchy. The contingency period for FM O&G’s drilling rig contract settlements ended June 30, 2017, and no additional amounts were paid.

Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at September 30, 2017, as compared to those techniques used at December 31, 2016.

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first nine months of 2017 follows (in millions):
Fair value at January 1, 2017
$
135

 
Net unrealized gain related to assets still held at the end of the period
3

 
Fair value at September 30, 2017
$
138

 
Contingencies and Commitments (Unaudited)
Commitments and Contingencies
CONTINGENCIES AND COMMITMENTS

Environmental
Historical Smelter Sites — Borough of Carteret
As reported in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, from 1920 until 1986, United States Metal Refining Company (USMR), an indirect wholly owned subsidiary of Cyprus Amax Minerals Company, owned and operated a copper smelter and refinery in the Borough of Carteret, New Jersey, on the banks of the Arthur Kill (a narrow waterway that separates New Jersey from Staten Island). As a result of recent off-site soil sampling in public and private areas near the former smelter, FCX increased its associated environmental obligation for known and potential off-site environmental remediation by recording a $59 million charge to operating income in third-quarter 2017. Additional sampling is ongoing and could result in additional adjustments to the related environmental remediation obligation.

Uranium Mining Sites
As reported in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, the Department of Justice, the U.S. Environmental Protection Agency, the Navajo Nation and two FCX-related subsidiaries reached an agreement regarding the scope of environmental investigation and remediation work for 94 former uranium mining sites on tribal lands, and the related financial contributions of the U.S. government and the FCX subsidiaries. The related Consent Decree was approved by the U.S. District Court for the District of Arizona in second-quarter 2017. Based on updated cash flow and timing estimates, FCX reduced its associated obligation for that contingency by recording a $41 million credit to operating income in second-quarter 2017 after receiving court approval of the Consent Decree.

Litigation
During third-quarter 2017, there were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016.

Tax and Other Matters
Cerro Verde Royalty Dispute
As reported in FCX’s annual report on Form 10-K for the year ended December 31, 2016, and as subsequently updated in Note 9 of FCX’s quarterly report on Form 10-Q for the quarter ended June 30, 2017, SUNAT, Peru’s national tax authority, has assessed mining royalties on ore processed by the Cerro Verde concentrator, which commenced operations in late 2006, for the period December 2006 to September 2011. Cerro Verde contested these assessments because it believes its 1998 stability agreement exempts from royalties all minerals extracted from its mining concession, irrespective of the method used for processing those minerals. No assessments have been issued for the period from October 2011 to December 2013, and no assessments can be issued for years after 2013, as Cerro Verde began paying royalties on all of its production in January 2014 under its new 15-year stability agreement. Since 2014, Cerro Verde has been paying the disputed assessments for the period December 2006 through December 2008 under an installment program ($135 million paid by Cerro Verde through September 30, 2017).

In October 2017, the Peruvian Supreme Court issued a ruling in favor of SUNAT that the assessments of royalties for the year 2008 on ore processed by the Cerro Verde concentrator were proper under Peruvian law.

As a result of the unfavorable Peruvian Supreme Court ruling on the 2008 royalty dispute, Cerro Verde recorded pre-tax charges totaling $357 million ($359 million including net tax charges and $188 million net of noncontrolling interests) in third-quarter 2017, consisting of $240 million in royalty assessments, $147 million of penalties and interest related to the December 2006 to December 2008 assessments, and $97 million for related items (primarily associated with the special mining tax and net assets tax) that Cerro Verde would have incurred under the view that its concentrator was not stabilized.

A summary of the charges recorded in third-quarter 2017 for the Cerro Verde royalty dispute follows (in millions):
Royalty and related assessment charges:
 
 
 
 
Production and delivery
 
$
216

a 
 
Interest expense, net
 
141

 
 
Provision for income taxes
 
2

b 
Net loss attributable to noncontrolling interests
 
(171
)
 
 
 
 
$
188

 
a.
Includes $176 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues), $6 million of penalties related to the December 2006 to December 2008 royalty assessments and $34 million primarily associated with the net assets tax.
b.
Includes tax charges of $127 million for disputed royalties ($64 million) and other related mining taxes ($63 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.

Cerro Verde acted in good faith in applying the provisions of its 1998 stability agreement and continues to evaluate alternatives to defend its rights. Cerro Verde intends to seek a waiver available under Peruvian law of penalties and interest associated with this matter and has not recorded charges for potential unpaid penalties and interest totaling $360 million ($193 million net of noncontrolling interests) at September 30, 2017, as FCX believes that Cerro Verde should be successful under Peruvian law in obtaining a waiver. Cerro Verde also intends to file a reimbursement claim with SUNAT for penalties and interest paid under the installment plan for the December 2006 to December 2008 assessments, and may have claims for reimbursement of payments it would not have made in the absence of the stabilization agreement, such as the overpayments made for a special (voluntary) levy (GEM), import duties and civil association contributions. No amounts have been recorded for these potential gain contingencies at September 30, 2017.

Other Peru Tax Matters
There were no significant changes to other Peru tax matters during third-quarter 2017 (refer to Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016).

Indonesia Tax Matters
The following information includes a discussion of updates to previously reported Indonesia tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2016.

PT-FI received assessments from the local regional tax authority in Papua, Indonesia, for additional taxes and penalties related to surface water taxes for the period from January 2011 through September 2017. PT-FI is filing objections to these assessments. During 2017, the Indonesia Tax Court issued rulings against PT-FI with respect to assessments for additional taxes and penalties for the period from January 2011 through December 2015 in the amount of $402 million (based on the exchange rate as of September 30, 2017, and including $240 million in penalties). The aggregate amount of assessments received from January 2016 through September 2017 was an additional $114 million, including penalties (based on the exchange rate as of September 30, 2017). No charges have been recorded for these assessments as of September 30, 2017, because PT-FI believes its Contract of Work (COW) exempts it from these payments and that it has the right to contest these assessments (in which FCX estimates the total exposure based on the exchange rate as of September 30, 2017, totals $516 million, including penalties) in the Indonesia Tax Court and ultimately the Indonesia Supreme Court. As of November 7, 2017, PT-FI has not paid and does not intend to pay these assessments unless there is a mechanism established to secure a refund for any such payments upon the final court decision. Additionally, PT-FI is seeking to address this matter in connection with the ongoing negotiations with the Indonesian government to resolve PT-FI’s long-term operating rights.
Indonesia Mining Contract. The following information includes updates to the discussion of PT-FI’s COW included in Note 13 of FCX’s annual report on Form 10-K for the year ended December 31, 2016.

In January and February 2017, the Indonesian government issued new regulations to address the export of unrefined metals, including copper concentrate and anode slimes, and other matters related to the mining sector. The new regulations permit the continuation of copper concentrate exports for a five-year period through January 2022, subject to various conditions, including conversion from a contract of work to a special operating license (known as an IUPK, which does not provide the same level of fiscal and legal protections as PT-FI’s COW, which remains in effect), a commitment to the completion of smelter construction in five years and payment of export duties to be determined by the Ministry of Finance. In addition, the new regulations enable application for an extension of operating rights five years before expiration of the IUPK and require foreign IUPK holders to divest a 51 percent interest in the licensed entity to Indonesian interests no later than the tenth year of production. Export licenses would be valid for one-year periods, subject to review every six months, depending on smelter construction progress.

Following the issuance of the January and February 2017 regulations and discussions with the Indonesian government, PT-FI advised the government that it was prepared to convert its COW to an IUPK, subject to obtaining an investment stability agreement providing contractual rights with the same level of legal and fiscal certainty enumerated under its COW, and provided that the COW would remain in effect until it is replaced by a mutually satisfactory alternative. PT-FI also committed to commence construction of a new smelter during a five-year time frame, following approval of the extension of its long-term operating rights.

On January 12, 2017, PT-FI suspended exports in response to Indonesian regulations adopted in January 2014. In addition, as a result of labor disturbances and a delay in the renewal of its export license for anode slimes, PT Smelting’s operations (PT-FI’s 25 percent-owned smelter in Indonesia) were shut down from January 19, 2017, until early March 2017. On February 10, 2017, PT-FI was forced to suspend production as a result of limited storage capacity at PT-FI and PT Smelting. On April 21, 2017, the Indonesian government issued a permit to PT-FI that allowed exports to resume for a six-month period, and PT-FI commenced export shipments.

In mid-February 2017, pursuant to the COW’s dispute resolution process, PT-FI provided formal notice to the Indonesian government of an impending dispute listing the government's breaches and violations of the COW. PT-FI continues to reserve its rights under these provisions.

As a result of the 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT-FI took actions to adjust its cost structure, slow investments in its underground development projects and new smelter, and place certain of its workforce on furlough programs.

In late March 2017, the Indonesian government amended the regulations to enable PT-FI to retain its COW until replaced with an IUPK accompanied by an investment stability agreement, and to grant PT-FI a temporary IUPK through October 10, 2017, that would allow concentrate exports to resume during this period. In April 2017, PT-FI entered into a Memorandum of Understanding with the Indonesian government confirming that the COW would continue to be valid and honored until replaced by a mutually agreed IUPK and investment stability agreement. PT-FI agreed to continue to pay a five percent export duty during this period.

In August 2017, FCX and the Indonesian government reached an understanding on a framework that would resolve PT-FI’s long-term operating rights. This framework includes (i) conversion from the COW to an IUPK providing PT-FI with long-term operating rights through 2041, (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK, (iii) PT-FI commitment to construct a new smelter in Indonesia within five years of reaching a definitive agreement, and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value structured so that FCX retains control over operations and governance of PT-FI. FCX cannot currently predict whether there will be any material accounting and tax implications associated with the divestment.

The framework requires documentation and execution of a definitive agreement, which must be approved by the FCX Board of Directors and joint venture partner Rio Tinto. The parties continue to negotiate to reach agreement on important aspects of implementation of the framework, including the timing and process of divestment, governance matters, and the determination of fair market value, and to complete documentation on a comprehensive agreement for PT-FI’s operations through 2041. The parties have expressed a mutual objective of completing the negotiations and documentation during 2017.
In October 2017, the Indonesian government extended PT-FI’s export rights to December 31, 2017, while negotiations to reach and document a comprehensive long-term definitive agreement based on the agreed framework continue.

Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including pursuing arbitration under the dispute resolution provisions.
BUSINESS SEGMENTS
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
 
nationsa
 
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
 
nationsa
 
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.
Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Notes)
Guarantor Financial Statements [Text Block]
GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under FCX’s revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC’s future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC’s subsidiaries. The indentures provide that FM O&G LLC’s guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof.

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at September 30, 2017, and December 31, 2016, and the related condensed consolidating statements of comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2017 and 2016 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2017
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
197

 
$
716

 
$
10,948

 
$
(711
)
 
$
11,150

Property, plant, equipment and mine development costs, net
15

 
11

 
22,899

 
(11
)
 
22,914

Oil and gas properties, subject to amortization, less accumulated amortization and impairments
—

 
—

 
20

 
—

 
20

Investments in consolidated subsidiaries
20,178

 
—

 
—

 
(20,178
)
 
—

Other assets
479

 
36

 
3,193

 
(465
)
 
3,243

Total assets
$
20,869

 
$
763

 
$
37,060

 
$
(21,365
)
 
$
37,327

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
2,402

 
$
111

 
$
3,820

 
$
(816
)
 
$
5,517

Long-term debt, less current portion
10,600

 
6,428

 
5,621

 
(10,082
)
 
12,567

Deferred income taxes
832

a 
—

 
2,939

 
—

 
3,771

Environmental and asset retirement obligations, less current portion
—

 
208

 
3,290

 
—

 
3,498

Investments in consolidated subsidiaries
—

 
850

 
10,174

 
(11,024
)
 
—

Other liabilities
62

 
3,341

 
1,828

 
(3,487
)
 
1,744

Total liabilities
13,896

 
10,938

 
27,672

 
(25,409
)
 
27,097

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
6,973

 
(10,175
)
 
6,782

 
3,393

 
6,973

Noncontrolling interests
—

 
—

 
2,606

 
651

 
3,257

Total equity
6,973

 
(10,175
)
 
9,388

 
4,044

 
10,230

Total liabilities and equity
$
20,869

 
$
763

 
$
37,060

 
$
(21,365
)
 
$
37,327

a.
All U.S.-related deferred income taxes are recorded at the parent company.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2016
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
230

 
$
1,790

 
$
11,675

 
$
(3,260
)
 
$
10,435

Property, plant, equipment and mine development costs, net
19

 
24

 
23,176

 
—

 
23,219

Oil and gas properties, subject to amortization, less accumulated amortization and impairments
—

 
—

 
74

 
—

 
74

Investments in consolidated subsidiaries
21,110

 
—

 
—

 
(21,110
)
 
—

Other assets
1,985

 
47

 
3,522

 
(1,965
)
 
3,589

Total assets
$
23,344

 
$
1,861

 
$
38,447

 
$
(26,335
)
 
$
37,317

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
3,895

 
$
308

 
$
3,306

 
$
(3,244
)
 
$
4,265

Long-term debt, less current portion
12,517

 
6,062

 
11,297

 
(15,081
)
 
14,795

Deferred income taxes
826

a 
—

 
2,942

 
—

 
3,768

Environmental and asset retirement obligations, less current portion
—

 
200

 
3,287

 
—

 
3,487

Investments in consolidated subsidiary
—

 
893

 
8,995

 
(9,888
)
 
—

Other liabilities
55

 
3,393

 
1,784

 
(3,487
)
 
1,745

Total liabilities
17,293

 
10,856

 
31,611

 
(31,700
)
 
28,060

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
6,051

 
(8,995
)
 
4,237

 
4,758

 
6,051

Noncontrolling interests
—

 
—

 
2,599

 
607

 
3,206

Total equity
6,051

 
(8,995
)
 
6,836

 
5,365

 
9,257

Total liabilities and equity
$
23,344

 
$
1,861

 
$
38,447

 
$
(26,335
)
 
$
37,317

a.
All U.S.-related deferred income taxes are recorded at the parent company.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
13

 
$
4,297

 
$
—

 
$
4,310

Total costs and expenses
8

 
25

 
3,361

 
(1
)
 
3,393

Operating (loss) income
(8
)
 
(12
)
 
936

 
1

 
917

Interest expense, net
(116
)
 
(59
)
 
(218
)
 
89

 
(304
)
Other income (expense), net
97

 
3

 
2

 
(89
)
 
13

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(27
)
 
(68
)
 
720

 
1

 
626

Benefit from (provision for) income taxes
21

 
24

 
(432
)
 
—

 
(387
)
Equity in affiliated companies’ net earnings (losses)
286

 
20

 
(20
)
 
(283
)
 
3

Net income (loss) from continuing operations
280

 
(24
)
 
268

 
(282
)
 
242

Net income from discontinued operations
—

 
—

 
3

 
—

 
3

Net income (loss)
280

 
(24
)
 
271

 
(282
)
 
245

Net loss (income) attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
69

 
(34
)
 
35

Discontinued operations
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to common stockholders
$
280

 
$
(24
)
 
$
340

 
$
(316
)
 
$
280

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
13

 
—

 
13

 
(13
)
 
13

Total comprehensive income (loss)
$
293

 
$
(24
)
 
$
353

 
$
(329
)
 
$
293


 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
110

 
$
3,767

 
$
—

 
$
3,877

Total costs and expenses
12

 
266

a 
3,239

a 
1

 
3,518

Operating (loss) income
(12
)
 
(156
)
 
528

 
(1
)
 
359

Interest expense, net
(126
)
 
(18
)
 
(132
)
 
89

 
(187
)
Other income (expense), net
91

 
—

 
(10
)
 
(76
)
 
5

(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings
(47
)
 
(174
)
 
386

 
12

 
177

Benefit from (provision for) income taxes
343

 
(197
)
 
(40
)
 
8

 
114

Equity in affiliated companies’ net (losses) earnings
(75
)
 
(218
)
 
(589
)
 
883

 
1

Net income (loss) from continuing operations
221

 
(589
)
 
(243
)
 
903

 
292

Net (loss) income from discontinued operations
(4
)
 
—

 
10

 
(12
)
 
(6
)
Net income (loss)
217

 
(589
)
 
(233
)
 
891

 
286

Net income and preferred dividends attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(24
)
 
(23
)
 
(47
)
Discontinued operations
—

 
—

 
(22
)
 
—

 
(22
)
Net income (loss) attributable to common stockholders
$
217

 
$
(589
)
 
$
(279
)
 
$
868

 
$
217

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive income (loss)
$
229

 
$
(589
)
 
$
(267
)
 
$
856

 
$
229

a.
Includes charges totaling $95 million at the FM O&G LLC guarantor and $0.2 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
38

 
$
11,324

 
$
—

 
$
11,362

Total costs and expenses
31

 
86

 
9,068

 
11

 
9,196

Operating (loss) income
(31
)
 
(48
)
 
2,256

 
(11
)
 
2,166

Interest expense, net
(355
)
 
(167
)
 
(363
)
 
252

 
(633
)
Other income (expense), net
256

 
3

 
37

 
(252
)
 
44

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(130
)
 
(212
)
 
1,930

 
(11
)
 
1,577

(Provision for) benefit from income taxes
(111
)
 
74

 
(714
)
 
4

 
(747
)
Equity in affiliated companies’ net earnings (losses)
1,017

 
14

 
(118
)
 
(907
)
 
6

Net income (loss) from continuing operations
776

 
(124
)
 
1,098

 
(914
)
 
836

Net income from discontinued operations
—

 
—

 
50

 
—

 
50

Net income (loss)
776

 
(124
)
 
1,148

 
(914
)
 
886

Net income attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(42
)
 
(64
)
 
(106
)
Discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss) attributable to common stockholders
$
776

 
$
(124
)
 
$
1,102

 
$
(978
)
 
$
776

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
105

 
—

 
105

 
(105
)
 
105

Total comprehensive income (loss)
$
881

 
$
(124
)
 
$
1,207

 
$
(1,083
)
 
$
881


Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
294

 
$
10,159

 
$
—

 
$
10,453

Total costs and expenses
56

 
2,859

a 
11,026

a 
7

 
13,948

Operating loss
(56
)
 
(2,565
)
 
(867
)
 
(7
)
 
(3,495
)
Interest expense, net
(404
)
 
(37
)
 
(370
)
 
237

 
(574
)
Other income (expense), net
248

 
—

 
59

 
(202
)
 
105

(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings
(212
)
 
(2,602
)
 
(1,178
)
 
28

 
(3,964
)
(Provision for) benefit from income taxes
(1,785
)
 
725

 
979

 
2

 
(79
)
Equity in affiliated companies’ net (losses) earnings
(2,450
)
 
(3,202
)
 
(5,072
)
 
10,733

 
9

Net (loss) income from continuing operations
(4,447
)
 
(5,079
)
 
(5,271
)
 
10,763

 
(4,034
)
Net income (loss) from discontinued operations
1

 
—

 
(159
)
 
(33
)
 
(191
)
Net (loss) income
(4,446
)
 
(5,079
)
 
(5,430
)
 
10,730

 
(4,225
)
Net income and preferred dividends attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(141
)
 
(36
)
 
(177
)
Discontinued operations
—

 
—

 
(44
)
 
—

 
(44
)
Net (loss) income attributable to common stockholders
$
(4,446
)
 
$
(5,079
)
 
$
(5,615
)
 
$
10,694

 
$
(4,446
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
27

 
—

 
27

 
(27
)
 
27

Total comprehensive (loss) income
$
(4,419
)
 
$
(5,079
)
 
$
(5,588
)
 
$
10,667

 
$
(4,419
)

a.
Includes charges totaling $1.5 billion at the FM O&G LLC guarantor and $2.8 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(222
)
 
$
(383
)
 
$
3,623

 
$
—

 
$
3,018

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(24
)
 
(996
)
 
—

 
(1,020
)
Intercompany loans
(609
)
 
—

 
—

 
609

 
—

Dividends from (investments in) consolidated subsidiaries
1,757

 
(16
)
 
93

 
(1,834
)
 
—

Asset sales and other, net
—

 
58

 
(12
)
 
—

 
46

Net cash provided by (used in) investing activities
1,148

 
18

 
(915
)
 
(1,225
)
 
(974
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
795

 
—

 
795

Repayments of debt
(915
)
 
(139
)
 
(937
)
 
—

 
(1,991
)
Intercompany loans
—

 
512

 
97

 
(609
)
 
—

Cash dividends paid and contributions received, net
(2
)
 
—

 
(1,839
)
 
1,772

 
(69
)
Other, net
(9
)
 
(11
)
 
(64
)
 
62

 
(22
)
Net cash (used in) provided by financing activities
(926
)
 
362

 
(1,948
)
 
1,225

 
(1,287
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
—

 
(3
)
 
760

 
—

 
757

Increase in cash and cash equivalents in assets held for sale
—

 
—

 
(45
)
 
—

 
(45
)
Cash and cash equivalents at beginning of period
—

 
3

 
4,242

 
—

 
4,245

Cash and cash equivalents at end of period
$
—

 
$
—

 
$
4,957

 
$
—

 
$
4,957

 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(264
)
 
$
(294
)
 
$
3,151

 
$
1

 
$
2,594

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(497
)
 
(1,814
)
 
2

 
(2,309
)
Intercompany loans
(1,021
)
 
(518
)
 
—

 
1,539

 
—

Dividends from (investments in) consolidated subsidiaries
1,643

 
(41
)
 
124

 
(1,726
)
 
—

Asset sales and other, net
—

 
208

 
1,210

 
(3
)
 
1,415

Net cash provided by (used in) investing activities
622

 
(848
)
 
(480
)
 
(188
)
 
(894
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
1,721

 
—

 
1,742

 
—

 
3,463

Repayments of debt
(2,498
)
 
—

 
(2,041
)
 
—

 
(4,539
)
Intercompany loans
—

 
1,223

 
316

 
(1,539
)
 
—

Net proceeds from sale of common stock
442

 
—

 
374

 
(374
)
 
442

Cash dividends paid and contributions received, net
(5
)
 
(78
)
 
(2,096
)
 
2,087

 
(92
)
Other, net
(18
)
 
(2
)
 
(15
)
 
13

 
(22
)
Net cash (used in) provided by financing activities
(358
)
 
1,143

 
(1,720
)
 
187

 
(748
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
—

 
1

 
951

 
—

 
952

Increase in cash and cash equivalents in assets held for sale
—

 
—

 
(43
)
 
—

 
(43
)
Cash and cash equivalents at beginning of period
—

 
—

 
177

 
—

 
177

Cash and cash equivalents at end of period
$
—

 
$
1

 
$
1,085

 
$
—

 
$
1,086

New Accounting Standard (Unaudited)
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
NEW ACCOUNTING STANDARDS

In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) that provides a single comprehensive revenue recognition model, which will replace most existing revenue recognition guidance, and also requires expanded disclosures. The core principle of the model is that revenue is recognized when control of goods or services has been transferred to customers at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, and interim reporting periods within that reporting period. FCX will adopt this ASU January 1, 2018, and currently expects to apply the modified retrospective approach under which any cumulative effect adjustment would be recorded to retained earnings as of the adoption date. FCX has substantially completed its review of the impact of this guidance, and based on the terms of its sales contracts, does not expect the guidance to have any impact on its revenue recognition policies or processes. FCX continues to review the impact of the new guidance on its financial reporting and disclosures.
In March 2016, FASB issued an ASU that simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, statutory tax withholding requirements, an accounting policy election for forfeitures and the classification on the statement of cash flows. FCX adopted this ASU effective January 1, 2017, and adoption did not have a material impact on its financial statements.
In March 2017, FASB issued an ASU that changes how entities with a defined benefit pension or other postretirement benefit plans present net periodic benefit cost in the income statement. This ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item or items as other compensation costs for those employees who are receiving the retirement benefit. In addition, only the service cost component is eligible for capitalization when applicable (i.e., as a cost of inventory or an internally constructed asset). The other components of net periodic benefit cost are required to be presented separately from the service cost component and outside of operating income. These other components of net periodic benefit cost are not eligible for capitalization, and the income statement line item or items must be disclosed. For public entities, this ASU is effective for annual periods beginning after December 15, 2017, and interim reporting periods within that reporting period. Early adoption is permitted. FCX will adopt this ASU on January 1, 2018, and does not expect it to have a material impact on its presentation of the statements of operations.
Subsequent Events (Unaudited)
Subsequent Events
SUBSEQUENT EVENTS

FCX evaluated events after September 30, 2017, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.
Dispositions (Tables)
Schedule of Disposal
Net income (loss) from discontinued operations in the consolidated statements of operations consists of the following (in millions):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Revenues
$
—

 
$
261

a 
$
13

a 
$
819

a 
Costs and expenses:
 
 
 
 
 
 
 
 
Production and delivery costs
—

 
248

 
—

 
730

 
Depreciation, depletion and amortization
—


—

 
—

 
80

 
Interest expense allocated from parent
—

 
12

b 
—

 
33

b 
Other costs and expenses, net
—

 
4

 
—

 
10

 
Income (loss) before income taxes and net gain (loss) on disposal
—

 
(3
)
 
13

 
(34
)
 
Net gain (loss) on disposal
3

c 
(5
)
d 
41

c 
(182
)
d 
Net income (loss) before income taxes
3

 
(8
)
 
54

 
(216
)
 
Benefit from (provision for) income taxes
—

 
2

 
(4
)
 
25

 
Net income (loss) from discontinued operations
$
3

 
$
(6
)
 
$
50

 
$
(191
)
 

a.
In accordance with accounting guidance, amounts are net of (eliminations) recognition of intercompany sales totaling $(53) million in third-quarter 2016, $13 million for the first nine months of 2017 and $(125) million for the first nine months of 2016.
b.
In accordance with accounting guidance, interest associated with FCX’s term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations.
c.
Includes a gain of $3 million in third-quarter 2017 and $45 million for the first nine months of 2017 associated with the change in the fair value of contingent consideration.
d.
In accordance with accounting guidance, an estimated loss on disposal was recorded and adjusted through closing of the transaction in November 2016.

Cash flows from discontinued operations included in the consolidated statements of cash flows for the nine months ended September 30, 2016, follow (in millions):
Net cash provided by operating activities
 
$
213

Net cash used in investing activities
 
(71
)
Net cash used in financing activities
 
(103
)
Increase in cash and cash equivalents in assets held for sale
 
$
39

Earnings per Share (Unaudited) Earnings per Share (Tables)
Reconciliation of net income (loss) and weighted-average shares of common stock outstanding
Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
Net income (loss) from continuing operations
$
242

 
$
292

 
$
836

 
$
(4,034
)
 
Net loss (income) from continuing operations attributable to noncontrolling interests
35

 
(37
)
 
(106
)
 
(146
)
 
Preferred dividends on redeemable noncontrolling interest
—

 
(10
)
 
—

 
(31
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(3
)
 
Net income (loss) from continuing operations attributable to common stockholders
$
274

 
$
242

 
$
727

 
$
(4,214
)
 
 
 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations
$
3

 
$
(6
)
 
$
50

 
$
(191
)
 
Net income from discontinued operations attributable to noncontrolling interests
—

 
(22
)
 
(4
)
 
(44
)
 
Net income (loss) from discontinued operations attributable to common stockholders
$
3

 
$
(28
)
 
$
46

 
$
(235
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
277

 
$
214

 
$
773

 
$
(4,449
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,448

 
1,346

 
1,447

 
1,289

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units
6

 
5

 
6

 
—

a 
Diluted weighted-average shares of common stock outstanding
1,454

 
1,351

 
1,453

 
1,289

 
 
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
0.19

 
$
0.18

 
$
0.50

 
$
(3.27
)
 
Discontinued operations
—

 
(0.02
)
 
0.03

 
(0.18
)
 
 
$
0.19

 
$
0.16

 
$
0.53

 
$
(3.45
)
 
 
 
 
 
 
 
 
 
 
a.
Excludes 12 million shares of common stock for the first nine months of 2016 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and restricted stock units that were anti-dilutive.
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables)
Schedule of Inventory [Table Text Block]
The components of inventories follow (in millions):
 
September 30,
2017
 
December 31, 2016
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,276

 
$
1,306

 
 
 
 
 
 
Mill stockpiles
$
336

 
$
259

 
Leach stockpiles
1,057

 
1,079

 
Total current mill and leach stockpiles
$
1,393

 
$
1,338

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
285

 
$
255

 
Work-in-process
154

 
114

 
Finished goods
749

 
629

 
Total product inventories
$
1,188

 
$
998

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
346

 
$
487

 
Leach stockpiles
1,107

 
1,146

 
Total long-term mill and leach stockpilesb
$
1,453

 
$
1,633

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $31 million at September 30, 2017, and $29 million at December 31, 2016.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
Income Taxes (Unaudited) (Tables)
Income before income taxes and equity in an affiliated companies' net earnings
Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
U.S. operationsa
$
2

 
$
331

 
$
24

 
$
293

 
International operations
(389
)
b 
(217
)
 
(771
)
b 
(372
)
 
Total
$
(387
)
 
$
114

 
$
(747
)
 
$
(79
)
 

a.
Includes net tax (charges) credits of $(10) million for third-quarter 2017 and $21 million for the first nine months of 2017 associated with alternative minimum tax credit carryforwards. The third quarter and first nine months of 2016 include net tax credits of $332 million and $290 million, respectively, associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
b.
Includes net charges of $2 million associated with the Cerro Verde mining royalties dispute, consisting of tax charges of $127 million for disputed royalties and other related mining taxes for the period October 2011 through the year 2013 (when royalties were determined based on operating income), mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.
Debt (Tables)
Schedule of Debt [Table Text Block] 
DEBT

The components of debt follow (in millions):
 
 
September 30,
2017
 
December 31, 2016
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
12,811

 
$
13,745

Issued by FMC
 
358

 
359

Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)
 
122

 
267

Cerro Verde credit facility
 
1,486

 
1,390

Cerro Verde shareholder loans
 
—

 
261

Other
 
5

 
5

Total debta
 
14,782

 
16,027

Less current portion of debt
 
(2,215
)
 
(1,232
)
Long-term debt
 
$
12,567

 
$
14,795

a.
Includes additions for unamortized fair value adjustments totaling $131 million at September 30, 2017 ($179 million at December 31, 2016), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $92 million at September 30, 2017 ($100 million at December 31, 2016).
Schedule of Extinguishment of Debt [Table Text Block] 
During third-quarter 2017, FCX redeemed in full certain senior notes. A summary of these early debt extinguishments follows (in millions):

 
Principal Amount
 
Net Adjustments
 
Book Value
 
Redemption Value
 
Gain
FCX 6.125% Senior Notes due 2019
$
179

 
$
5

 
$
184

 
$
182

 
$
2

FM O&G 6.125% Senior Notes due 2019
58

 
2

 
60

 
59

 
1

FCX 6.625% Senior Notes due 2021
228

 
12

 
240

 
234

 
6

FM O&G 6.625% Senior Notes due 2021
33

 
2

 
35

 
34

 
1

FM O&G 6.75% Senior Notes due 2022
45

 
2

 
47

 
46

 
1

 
$
543

 
$
23

 
$
566

 
$
555

 
$
11

Financial Instruments (Tables)
Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item 

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized gains (losses):
 
 
 
 
 
 
 
Derivative financial instruments
$
—

 
$
1

 
$
(1
)
 
$
11

Hedged item – firm sales commitments
—

 
(1
)
 
1

 
(11
)
 
 
 
 
 
 
 
 
Realized gains (losses):
 
 
 
 
 
 
 
Matured derivative financial instruments
12

 
—

 
21

 
(8
)
Schedule of Derivative Instruments 
A summary of FCX’s embedded derivatives at September 30, 2017, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
546

 
$
2.84

 
$
2.93

 
February 2018
Gold (thousands of ounces)
194

 
1,318

 
1,287

 
December 2017
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
155

 
2.83

 
2.93

 
January 2018
Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions 
A summary of the realized and unrealized gains (losses) recognized in operating income (loss) for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2017
 
2016
 
2017
 
2016
Embedded derivatives in provisional copper and gold
 
 
 
 
 
 
 
sales contractsa
$
137

 
$
12

 
$
297

 
$
88

Copper forward contractsb
(9
)
 
(1
)
 
(14
)
 
4

a.
Amounts recorded in revenues. 
b.
Amounts recorded in cost of sales as production and delivery costs.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] 
A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):
 
 
September 30,
2017
 
December 31, 2016
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
7

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper and gold
 
 
 
 
sales/purchase contracts
 
74

 
137

Total derivative assets
 
$
81

 
$
146

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
2

 
$
2

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper and gold
 
 
 
 
sales/purchase contracts
 
46

 
56

Total derivative liabilities
 
$
48

 
$
58



Offsetting Assets 
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
September 30, 2017
 
December 31, 2016
 
September 30, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
74

 
$
137

 
$
46

 
$
56

Copper derivatives
 
7

 
9

 
2

 
2

 
 
81

 
146

 
48

 
58

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
1

 
12

 
1

 
12

Copper derivatives
 
2

 
2

 
2

 
2

 
 
3

 
14

 
3

 
14

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
73

 
125

 
45

 
44

Copper derivatives
 
5

 
7

 
—

 
—

 
 
$
78

 
$
132

 
$
45

 
$
44

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
69

 
$
119

 
$
24

 
$
13

Other current assets
 
5

 
7

 
—

 
—

Accounts payable and accrued liabilities
 
4

 
6

 
21

 
31

 
 
$
78

 
$
132

 
$
45

 
$
44

Offsetting Liabilities 
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
September 30, 2017
 
December 31, 2016
 
September 30, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
74

 
$
137

 
$
46

 
$
56

Copper derivatives
 
7

 
9

 
2

 
2

 
 
81

 
146

 
48

 
58

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
1

 
12

 
1

 
12

Copper derivatives
 
2

 
2

 
2

 
2

 
 
3

 
14

 
3

 
14

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
73

 
125

 
45

 
44

Copper derivatives
 
5

 
7

 
—

 
—

 
 
$
78

 
$
132

 
$
45

 
$
44

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
69

 
$
119

 
$
24

 
$
13

Other current assets
 
5

 
7

 
—

 
—

Accounts payable and accrued liabilities
 
4

 
6

 
21

 
31

 
 
$
78

 
$
132

 
$
45

 
$
44



FAIR VALUE MEASUREMENT (Tables)
Fair Value Measurement Inputs Disclosure 
A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities (refer to Note 7) follows (in millions):
 
At September 30, 2017
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
25

 
$
25

 
$
25

 
$
—

 
$
—

 
$
—

Money market funds
21

 
21

 
—

 
21

 
—

 
—

Equity securities
6

 
6

 
—

 
6

 
—

 
—

Total
52

 
52

 
25

 
27

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
55

 
55

 
55

 
—

 
—

 
—

Government bonds and notes
38

 
38

 
—

 
—

 
38

 
—

Corporate bonds
30

 
30

 
—

 
—

 
30

 
—

Government mortgage-backed securities
25

 
25

 
—

 
—

 
25

 
—

Money market funds
18

 
18

 
—

 
18

 
—

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Collateralized mortgage-backed securities
8

 
8

 
—

 
—

 
8

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
189

 
189

 
55

 
18

 
116

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross asset positionc
74

 
74

 
—

 
—

 
74

 
—

Copper futures and swap contractsc
7

 
7

 
—

 
5

 
2

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
80

 
80

 
—

 
—

 
80

 
—

Total
161

 
161

 
—

 
5

 
156

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
     Deepwater GOM oil and gas propertiesa
150

 
138

 
—

 
—

 
—

 
138

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
$
540

 
$
80

 
$
50

 
$
272

 
$
138

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross liability position
46

 
$
46

 
$
—

 
$
—

 
$
46

 
$
—

Copper futures and swap contracts
2

 
2

 
—

 
1

 
1

 
—

Total
48

 
48

 
—

 
1

 
47

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
14,782

 
14,735

 
—

 
—

 
14,735

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
$
14,783

 
$
—

 
$
1

 
$
14,782

 
$
—



 
At December 31, 2016
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
23

 
$
23

 
$
23

 
$
—

 
$
—

 
$
—

Money market funds
22

 
22

 
—

 
22

 
—

 
—

Equity securities
5

 
5

 
—

 
5

 
—

 
—

Total
50

 
50

 
23

 
27

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
53

 
53

 
53

 
—

 
—

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
32

 
32

 
—

 
—

 
32

 
—

Government mortgage-backed securities
25

 
25

 
—

 
—

 
25

 
—

Asset-backed securities
16

 
16

 
—

 
—

 
16

 
—

Money market funds
12

 
12

 
—

 
12

 
—

 
—

Collateralized mortgage-backed securities
8

 
8

 
—

 
—

 
8

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
183

 
183

 
53

 
12

 
118

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross asset positionc
137

 
137

 
—

 
—

 
137

 
—

Copper futures and swap contractsc
9

 
9

 
—

 
8

 
1

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
46

 
46

 
—

 
—

 
46

 
—

Total
192

 
192

 
—

 
8

 
184

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
150

 
135

 
—

 
—

 
—

 
135

 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
$
560

 
$
76

 
$
47

 
$
302

 
$
135

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/
 
 
 
 
 
 
 
 
 
 
 
purchase contracts in a gross liability position
56

 
$
56

 
$
—

 
$
—

 
$
56

 
$
—

Copper futures and swap contracts
2

 
2

 
—

 
2

 
—

 
—

Total
58

 
58

 
—

 
2

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent payments for the settlements of
 
 
 
 
 
 
 
 
 
 
 
drilling rig contractse
23

 
23

 
—

 
—

 
23

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
16,027

 
15,196

 
—

 
—

 
15,196

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
$
15,277

 
$
—

 
$
2

 
$
15,275

 
$
—


a.
Current portion included in other current assets and long-term portion included in other assets.
b.
Excludes time deposits (which approximated fair value) included in (i) other current assets of $41 million at September 30, 2017, and $28 million at December 31, 2016, and (ii) other assets of $122 million at both September 30, 2017, and December 31, 2016, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.
c.
Refer to Note 7 for further discussion and balance sheet classifications.
d.
Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
e.
Included in accounts payable and accrued liabilities.

Summary of Unobservable Input Reconciliation 
A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first nine months of 2017 follows (in millions):
Fair value at January 1, 2017
$
135

 
Net unrealized gain related to assets still held at the end of the period
3

 
Fair value at September 30, 2017
$
138

 
Contingencies and Commitments (Unaudited) (Tables)
Schedule of Charges for the Cerro Verde Royalty Dispute
A summary of the charges recorded in third-quarter 2017 for the Cerro Verde royalty dispute follows (in millions):
Royalty and related assessment charges:
 
 
 
 
Production and delivery
 
$
216

a 
 
Interest expense, net
 
141

 
 
Provision for income taxes
 
2

b 
Net loss attributable to noncontrolling interests
 
(171
)
 
 
 
 
$
188

 
a.
Includes $176 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues), $6 million of penalties related to the December 2006 to December 2008 royalty assessments and $34 million primarily associated with the net assets tax.
b.
Includes tax charges of $127 million for disputed royalties ($64 million) and other related mining taxes ($63 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $125 million associated with disputed royalties and other related mining taxes for the period December 2006 through the year 2013.

Business Segments (Tables)
Schedule of financial information by business segment
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
 
nationsa
 
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
 
nationsa
 
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.
Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Tables)
Condensed Consolidating Balance Sheets [Table Text Block] 
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2017
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
197

 
$
716

 
$
10,948

 
$
(711
)
 
$
11,150

Property, plant, equipment and mine development costs, net
15

 
11

 
22,899

 
(11
)
 
22,914

Oil and gas properties, subject to amortization, less accumulated amortization and impairments
—

 
—

 
20

 
—

 
20

Investments in consolidated subsidiaries
20,178

 
—

 
—

 
(20,178
)
 
—

Other assets
479

 
36

 
3,193

 
(465
)
 
3,243

Total assets
$
20,869

 
$
763

 
$
37,060

 
$
(21,365
)
 
$
37,327

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
2,402

 
$
111

 
$
3,820

 
$
(816
)
 
$
5,517

Long-term debt, less current portion
10,600

 
6,428

 
5,621

 
(10,082
)
 
12,567

Deferred income taxes
832

a 
—

 
2,939

 
—

 
3,771

Environmental and asset retirement obligations, less current portion
—

 
208

 
3,290

 
—

 
3,498

Investments in consolidated subsidiaries
—

 
850

 
10,174

 
(11,024
)
 
—

Other liabilities
62

 
3,341

 
1,828

 
(3,487
)
 
1,744

Total liabilities
13,896

 
10,938

 
27,672

 
(25,409
)
 
27,097

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
6,973

 
(10,175
)
 
6,782

 
3,393

 
6,973

Noncontrolling interests
—

 
—

 
2,606

 
651

 
3,257

Total equity
6,973

 
(10,175
)
 
9,388

 
4,044

 
10,230

Total liabilities and equity
$
20,869

 
$
763

 
$
37,060

 
$
(21,365
)
 
$
37,327

a.
All U.S.-related deferred income taxes are recorded at the parent company.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2016
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
230

 
$
1,790

 
$
11,675

 
$
(3,260
)
 
$
10,435

Property, plant, equipment and mine development costs, net
19

 
24

 
23,176

 
—

 
23,219

Oil and gas properties, subject to amortization, less accumulated amortization and impairments
—

 
—

 
74

 
—

 
74

Investments in consolidated subsidiaries
21,110

 
—

 
—

 
(21,110
)
 
—

Other assets
1,985

 
47

 
3,522

 
(1,965
)
 
3,589

Total assets
$
23,344

 
$
1,861

 
$
38,447

 
$
(26,335
)
 
$
37,317

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
3,895

 
$
308

 
$
3,306

 
$
(3,244
)
 
$
4,265

Long-term debt, less current portion
12,517

 
6,062

 
11,297

 
(15,081
)
 
14,795

Deferred income taxes
826

a 
—

 
2,942

 
—

 
3,768

Environmental and asset retirement obligations, less current portion
—

 
200

 
3,287

 
—

 
3,487

Investments in consolidated subsidiary
—

 
893

 
8,995

 
(9,888
)
 
—

Other liabilities
55

 
3,393

 
1,784

 
(3,487
)
 
1,745

Total liabilities
17,293

 
10,856

 
31,611

 
(31,700
)
 
28,060

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
6,051

 
(8,995
)
 
4,237

 
4,758

 
6,051

Noncontrolling interests
—

 
—

 
2,599

 
607

 
3,206

Total equity
6,051

 
(8,995
)
 
6,836

 
5,365

 
9,257

Total liabilities and equity
$
23,344

 
$
1,861

 
$
38,447

 
$
(26,335
)
 
$
37,317

a.
All U.S.-related deferred income taxes are recorded at the parent company.
Condensed Consolidating Statements of Income [Table Text Block] 
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
13

 
$
4,297

 
$
—

 
$
4,310

Total costs and expenses
8

 
25

 
3,361

 
(1
)
 
3,393

Operating (loss) income
(8
)
 
(12
)
 
936

 
1

 
917

Interest expense, net
(116
)
 
(59
)
 
(218
)
 
89

 
(304
)
Other income (expense), net
97

 
3

 
2

 
(89
)
 
13

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(27
)
 
(68
)
 
720

 
1

 
626

Benefit from (provision for) income taxes
21

 
24

 
(432
)
 
—

 
(387
)
Equity in affiliated companies’ net earnings (losses)
286

 
20

 
(20
)
 
(283
)
 
3

Net income (loss) from continuing operations
280

 
(24
)
 
268

 
(282
)
 
242

Net income from discontinued operations
—

 
—

 
3

 
—

 
3

Net income (loss)
280

 
(24
)
 
271

 
(282
)
 
245

Net loss (income) attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
69

 
(34
)
 
35

Discontinued operations
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to common stockholders
$
280

 
$
(24
)
 
$
340

 
$
(316
)
 
$
280

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
13

 
—

 
13

 
(13
)
 
13

Total comprehensive income (loss)
$
293

 
$
(24
)
 
$
353

 
$
(329
)
 
$
293


 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
110

 
$
3,767

 
$
—

 
$
3,877

Total costs and expenses
12

 
266

a 
3,239

a 
1

 
3,518

Operating (loss) income
(12
)
 
(156
)
 
528

 
(1
)
 
359

Interest expense, net
(126
)
 
(18
)
 
(132
)
 
89

 
(187
)
Other income (expense), net
91

 
—

 
(10
)
 
(76
)
 
5

(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings
(47
)
 
(174
)
 
386

 
12

 
177

Benefit from (provision for) income taxes
343

 
(197
)
 
(40
)
 
8

 
114

Equity in affiliated companies’ net (losses) earnings
(75
)
 
(218
)
 
(589
)
 
883

 
1

Net income (loss) from continuing operations
221

 
(589
)
 
(243
)
 
903

 
292

Net (loss) income from discontinued operations
(4
)
 
—

 
10

 
(12
)
 
(6
)
Net income (loss)
217

 
(589
)
 
(233
)
 
891

 
286

Net income and preferred dividends attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(24
)
 
(23
)
 
(47
)
Discontinued operations
—

 
—

 
(22
)
 
—

 
(22
)
Net income (loss) attributable to common stockholders
$
217

 
$
(589
)
 
$
(279
)
 
$
868

 
$
217

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive income (loss)
$
229

 
$
(589
)
 
$
(267
)
 
$
856

 
$
229

a.
Includes charges totaling $95 million at the FM O&G LLC guarantor and $0.2 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
38

 
$
11,324

 
$
—

 
$
11,362

Total costs and expenses
31

 
86

 
9,068

 
11

 
9,196

Operating (loss) income
(31
)
 
(48
)
 
2,256

 
(11
)
 
2,166

Interest expense, net
(355
)
 
(167
)
 
(363
)
 
252

 
(633
)
Other income (expense), net
256

 
3

 
37

 
(252
)
 
44

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(130
)
 
(212
)
 
1,930

 
(11
)
 
1,577

(Provision for) benefit from income taxes
(111
)
 
74

 
(714
)
 
4

 
(747
)
Equity in affiliated companies’ net earnings (losses)
1,017

 
14

 
(118
)
 
(907
)
 
6

Net income (loss) from continuing operations
776

 
(124
)
 
1,098

 
(914
)
 
836

Net income from discontinued operations
—

 
—

 
50

 
—

 
50

Net income (loss)
776

 
(124
)
 
1,148

 
(914
)
 
886

Net income attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(42
)
 
(64
)
 
(106
)
Discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss) attributable to common stockholders
$
776

 
$
(124
)
 
$
1,102

 
$
(978
)
 
$
776

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
105

 
—

 
105

 
(105
)
 
105

Total comprehensive income (loss)
$
881

 
$
(124
)
 
$
1,207

 
$
(1,083
)
 
$
881


Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
294

 
$
10,159

 
$
—

 
$
10,453

Total costs and expenses
56

 
2,859

a 
11,026

a 
7

 
13,948

Operating loss
(56
)
 
(2,565
)
 
(867
)
 
(7
)
 
(3,495
)
Interest expense, net
(404
)
 
(37
)
 
(370
)
 
237

 
(574
)
Other income (expense), net
248

 
—

 
59

 
(202
)
 
105

(Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings
(212
)
 
(2,602
)
 
(1,178
)
 
28

 
(3,964
)
(Provision for) benefit from income taxes
(1,785
)
 
725

 
979

 
2

 
(79
)
Equity in affiliated companies’ net (losses) earnings
(2,450
)
 
(3,202
)
 
(5,072
)
 
10,733

 
9

Net (loss) income from continuing operations
(4,447
)
 
(5,079
)
 
(5,271
)
 
10,763

 
(4,034
)
Net income (loss) from discontinued operations
1

 
—

 
(159
)
 
(33
)
 
(191
)
Net (loss) income
(4,446
)
 
(5,079
)
 
(5,430
)
 
10,730

 
(4,225
)
Net income and preferred dividends attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
 
Continuing operations
—

 
—

 
(141
)
 
(36
)
 
(177
)
Discontinued operations
—

 
—

 
(44
)
 
—

 
(44
)
Net (loss) income attributable to common stockholders
$
(4,446
)
 
$
(5,079
)
 
$
(5,615
)
 
$
10,694

 
$
(4,446
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
27

 
—

 
27

 
(27
)
 
27

Total comprehensive (loss) income
$
(4,419
)
 
$
(5,079
)
 
$
(5,588
)
 
$
10,667

 
$
(4,419
)

a.
Includes charges totaling $1.5 billion at the FM O&G LLC guarantor and $2.8 billion at the non-guarantor subsidiaries related to impairment of FCX’s oil and gas properties pursuant to full cost accounting rules.
Condensed Consolidating Statements of Cash Flows [Table Text Block] 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(222
)
 
$
(383
)
 
$
3,623

 
$
—

 
$
3,018

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(24
)
 
(996
)
 
—

 
(1,020
)
Intercompany loans
(609
)
 
—

 
—

 
609

 
—

Dividends from (investments in) consolidated subsidiaries
1,757

 
(16
)
 
93

 
(1,834
)
 
—

Asset sales and other, net
—

 
58

 
(12
)
 
—

 
46

Net cash provided by (used in) investing activities
1,148

 
18

 
(915
)
 
(1,225
)
 
(974
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
795

 
—

 
795

Repayments of debt
(915
)
 
(139
)
 
(937
)
 
—

 
(1,991
)
Intercompany loans
—

 
512

 
97

 
(609
)
 
—

Cash dividends paid and contributions received, net
(2
)
 
—

 
(1,839
)
 
1,772

 
(69
)
Other, net
(9
)
 
(11
)
 
(64
)
 
62

 
(22
)
Net cash (used in) provided by financing activities
(926
)
 
362

 
(1,948
)
 
1,225

 
(1,287
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
—

 
(3
)
 
760

 
—

 
757

Increase in cash and cash equivalents in assets held for sale
—

 
—

 
(45
)
 
—

 
(45
)
Cash and cash equivalents at beginning of period
—

 
3

 
4,242

 
—

 
4,245

Cash and cash equivalents at end of period
$
—

 
$
—

 
$
4,957

 
$
—

 
$
4,957

 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(264
)
 
$
(294
)
 
$
3,151

 
$
1

 
$
2,594

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(497
)
 
(1,814
)
 
2

 
(2,309
)
Intercompany loans
(1,021
)
 
(518
)
 
—

 
1,539

 
—

Dividends from (investments in) consolidated subsidiaries
1,643

 
(41
)
 
124

 
(1,726
)
 
—

Asset sales and other, net
—

 
208

 
1,210

 
(3
)
 
1,415

Net cash provided by (used in) investing activities
622

 
(848
)
 
(480
)
 
(188
)
 
(894
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
1,721

 
—

 
1,742

 
—

 
3,463

Repayments of debt
(2,498
)
 
—

 
(2,041
)
 
—

 
(4,539
)
Intercompany loans
—

 
1,223

 
316

 
(1,539
)
 
—

Net proceeds from sale of common stock
442

 
—

 
374

 
(374
)
 
442

Cash dividends paid and contributions received, net
(5
)
 
(78
)
 
(2,096
)
 
2,087

 
(92
)
Other, net
(18
)
 
(2
)
 
(15
)
 
13

 
(22
)
Net cash (used in) provided by financing activities
(358
)
 
1,143

 
(1,720
)
 
187

 
(748
)
 
 
 
 
 
 
 
 
 
 
Net increase in cash and cash equivalents
—

 
1

 
951

 
—

 
952

Increase in cash and cash equivalents in assets held for sale
—

 
—

 
(43
)
 
—

 
(43
)
Cash and cash equivalents at beginning of period
—

 
—

 
177

 
—

 
177

Cash and cash equivalents at end of period
$
—

 
$
1

 
$
1,085

 
$
—

 
$
1,086

General Information (Unaudited) (Details) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Mar. 31, 2016
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Grasberg Segment [Member]
Sep. 30, 2017
Grasberg Segment [Member]
Jun. 30, 2017
Foreign Plan [Member]
Dec. 31, 2016
Foreign Plan [Member]
Jun. 30, 2017
Foreign Plan [Member]
Jun. 30, 2017
Foreign Plan [Member]
Sep. 30, 2017
Foreign Plan [Member]
Dec. 31, 2016
Foreign Plan [Member]
Postemployment Benefits, Period Expense
 
 
 
 
 
$ 9,000,000 
$ 113,000,000 
 
 
 
 
 
 
Defined Benefit Plan, Discount Rate
 
 
 
 
 
 
 
7.50% 
8.25% 
 
 
 
 
Defined Benefit Plan, Rate of Compensation Increase
 
 
 
 
 
 
 
 
 
4.00% 
4.00% 
 
8.00% 
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets
 
 
 
 
 
 
 
7.75% 
 
 
 
 
 
Increase (Decrease) in Projected Benefit Obligation
 
 
 
 
 
 
 
 
 
 
(145,000,000)
 
 
Defined Benefit Plan, Plan Assets, Period Increase (Decrease)
 
 
 
 
 
 
 
 
 
 
(21,000,000)
 
 
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment
 
 
 
 
 
 
 
 
 
4,000,000 
 
4,000,000 
 
Defined Benefit Plan, Funded (Unfunded) Status of Plan
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
(90,000,000)
Oil And Gas Property Unevaluated Property Costs Transferred To Full Cost Method
 
 
3,100,000,000 
 
3,200,000,000 
 
 
 
 
 
 
 
 
Impairment of oil and gas properties
$ 0 
$ 239,000,000 
 
$ 0 
$ 4,300,000,000 
 
 
 
 
 
 
 
 
Dispositions (TF Holdings Limited) (Details) (USD $)
9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2017
Freeport Cobalt [Member]
Sep. 30, 2017
Kisanfu Exploration Project
Nov. 16, 2016
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Sep. 30, 2017
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Sep. 30, 2017
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Nov. 16, 2016
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Nov. 16, 2016
Copper
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Nov. 16, 2016
Cobalt
Discontinued Operations, Disposed of by Sale
TF Holdings Limited
Nov. 15, 2016
Tenke Fungurume [Member]
TF Holdings Limited
Nov. 15, 2016
TF Holdings Limited
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage
 
 
 
56.00% 
100.00% 
 
 
 
 
 
 
80.00% 
70.00% 
Proceeds from divestiture, net
 
 
 
 
 
$ 2,650,000,000 
 
 
 
 
 
 
 
Contingent receivable
 
 
 
 
 
 
 
 
120,000,000 
60,000,000 
60,000,000 
 
 
Contingent consideration, reference threshold (in us dollars per pound)
 
 
 
 
 
 
 
 
 
3.50 
20 
 
 
Other assets
1,790,000,000 
 
1,956,000,000 
 
 
 
58,000,000 
58,000,000 
 
 
 
 
 
Discontinued Operation, Change in Contingent Receivable
 
 
 
 
 
 
3,000,000 
45,000,000 
 
 
 
 
 
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal
$ 66,000,000 
$ 762,000,000 
 
 
 
 
 
 
 
 
 
 
 
Dispositions Dispositions (Net Income (Loss) from Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2017
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2016
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2017
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2016
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Nov. 16, 2016
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2017
Consolidation, Eliminations [Member]
Sep. 30, 2016
Consolidation, Eliminations [Member]
Sep. 30, 2017
Consolidation, Eliminations [Member]
Sep. 30, 2016
Consolidation, Eliminations [Member]
Sep. 30, 2016
Consolidation, Eliminations [Member]
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2017
Consolidation, Eliminations [Member]
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Sep. 30, 2016
Consolidation, Eliminations [Member]
TF Holdings Limited
Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal Group, Including Discontinued Operation, Revenue
 
 
 
 
 
$ 0 
$ 261 
$ 13 
$ 819 
 
 
 
 
 
$ 53 
$ (13)
$ 125 
Disposal Group, Including Discontinued Operation, Costs of Goods Sold
 
 
 
 
 
0 
248 
0 
730 
 
 
 
 
 
 
 
 
Disposal Group, Including Discontinued Operation, Depreciation and Amortization
 
 
 
 
 
0 
0 
0 
80 
 
 
 
 
 
 
 
 
Disposal Group, Including Discontinued Operation, Interest Expense
 
 
 
 
 
0 
12 
0 
33 
 
 
 
 
 
 
 
 
Disposal Group, Including Discontinued Operation, Other Expense
 
 
 
 
 
0 
4 
0 
10 
 
 
 
 
 
 
 
 
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax
 
 
 
 
 
0 
(3)
13 
(34)
 
 
 
 
 
 
 
 
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax
 
 
41 
(182)
 
3 
(5)
41 
(182)
 
 
 
 
 
 
 
 
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax
 
 
 
 
 
3 
(8)
54 
(216)
 
 
 
 
 
 
 
 
Discontinued Operation, Tax Effect of Discontinued Operation
 
 
 
 
 
0 
2 
(4)
25 
 
 
 
 
 
 
 
 
Net (loss) income from discontinued operations
3 
(6)
50 
(191)
 
3 
(6)
50 
(191)
 
0 
(12)
0 
(33)
 
 
 
Contingent consideration asset
 
 
 
 
 
 
 
 
 
120 
 
 
 
 
 
 
 
Other assets
1,790 
 
1,790 
 
1,956 
58 
 
58 
 
 
 
 
 
 
 
 
 
Discontinued Operation, Change in Contingent Receivable
 
 
 
 
 
$ 3 
 
$ 45 
 
 
 
 
 
 
 
 
 
Dispositions (Cash Flows from Discontinued Operations) (Details) (Discontinued Operations, Held-for-sale [Member], Tenke Fungurume [Member], USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Discontinued Operations, Held-for-sale [Member] |
Tenke Fungurume [Member]
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Net cash provided by operating activities
$ 213 
Net cash used in investing activities
(71)
Net cash used in financing activities
(103)
Increase (decrease) in cash and cash equivalents in assets held for sale
$ 39 
Dispositions (Oil and Gas Operations) (Details) (USD $)
9 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Freeport-McMoRan Oil & Gas
Sep. 30, 2017
Freeport-McMoRan Oil & Gas
Sep. 30, 2016
Freeport-McMoRan Oil & Gas
Jul. 31, 2017
Freeport-McMoRan Oil & Gas
Gulf of Mexico [Member]
Jul. 25, 2016
Freeport-McMoRan Oil & Gas
Haynesville [Member]
Mar. 17, 2017
Freeport-McMoRan Oil & Gas
Madden [Member]
Jun. 17, 2016
Freeport-McMoRan Oil & Gas
Oil and Gas Properties [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
Net gain on sales of assets
$ (66,000,000)
$ (762,000,000)
$ (33,000,000)
$ (49,000,000)
$ 0 
 
 
 
 
Proceeds from sales
 
 
 
 
 
$ 62,000,000 
$ 87,000,000 
$ 17,500,000 
$ 102,000,000 
Dispositions Dispositions (Morenci) (Details) (USD $)
9 Months Ended 0 Months Ended 3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
May 31, 2016
Morenci [Member]
Jun. 30, 2016
Morenci [Member]
Sep. 30, 2017
Morenci [Member]
May 31, 2016
SMM Morenci Inc. [Member]
Morenci [Member]
Sep. 30, 2017
Sumitomo Metal Mining Co., Ltd. [Member]
Morenci [Member]
Sep. 30, 2017
Wholly Owned Affiliate Of SMM [Member]
Morenci [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
Ownership percentage
 
 
 
 
72.00% 
13.00% 
15.00% 
13.00% 
Proceeds from divestiture, net
 
 
$ 1,000,000,000 
 
 
 
 
 
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal
$ 66,000,000 
$ 762,000,000 
 
$ 576,000,000 
 
 
 
 
Dispositions Dispositions (Timok) (Details) (USD $)
9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
May 2, 2016
Timok [Member]
Sep. 30, 2016
Timok [Member]
May 2, 2016
Timok [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
Proceeds from divestiture, net
 
 
$ 135,000,000 
 
 
Business Divestment, Amounts of Material Contingent Assets Remaining
 
 
 
0 
107,000,000 
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal
$ 66,000,000 
$ 762,000,000 
 
$ 133,000,000 
 
Dispositions Disposals (Freeport Cobalt and Kisanfu) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal
 
 
$ 66,000,000 
$ 762,000,000 
Gain (Loss) on Disposition of Assets
33,000,000 
13,000,000 
66,000,000 
762,000,000 
Freeport Cobalt [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Ownership percentage
56.00% 
 
56.00% 
 
Kisanfu Exploration Project
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Ownership percentage
100.00% 
 
100.00% 
 
Freeport Cobalt And Kisanfu Exploration Project [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Gain (Loss) on Disposition of Assets
 
 
$ 13,000,000 
 
Earnings per Share (Unaudited) Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Net income (loss) from continuing operations
$ 242 
$ 292 
$ 836 
$ (4,034)
Net loss (income) from continuing operations attributable to noncontrolling interests
(35)
37 
106 
146 
Preferred dividends on redeemable noncontrolling interest
0 
10 
0 
31 
Undistributed earnings allocated to participating securities
3 
3 
3 
3 
Net income (loss) from continuing operations attributable to common stockholders
274 
242 
727 
(4,214)
Net income (loss) from discontinued operations
3 
(6)
50 
(191)
Net income from discontinued operations attributable to noncontrolling interests
0 
22 
4 
44 
Net income (loss) from discontinued operations attributable to common stockholders
3 
(28)
46 
(235)
Net income (loss) attributable to common stockholders
$ 277 
$ 214 
$ 773 
$ (4,449)
Basic
1,448 
1,346 
1,447 
1,289 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units
6 
5 
6 
0 
Diluted weighted-average shares of common stock outstanding
1,454 
1,351 
1,453 
1,289 
Basic and diluted net income (loss) per share attributable to common stockholders
 
 
 
 
Continuing operations
$ 0.19 
$ 0.18 
$ 0.50 
$ (3.27)
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.03 
$ (0.18)
Basic and diluted net income (loss) per share attributable to common stockholders:
$ 0.19 
$ 0.16 
$ 0.53 
$ (3.45)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
 
 
 
12 
Dilutive Securities Excluded from Computation of EPS Amount
38 
46 
42 
46 
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Components of Inventories [Line Items]
 
 
Total materials and supplies, net
$ 1,276 
$ 1,306 
Mill stockpiles
336 
259 
Leach stockpiles
1,057 
1,079 
Total current mill and leach stockpiles
1,393 
1,338 
Raw materials (primarily concentrate)
285 
255 
Work-in-process
154 
114 
Finished goods
749 
629 
Total product inventories
1,188 
998 
Mill stockpiles
346 
487 
Leach stockpiles
1,107 
1,146 
Total long-term mill and leach stockpiles
1,453 
1,633 
Inventory obsolescence reserves
$ 31 
$ 29 
Income Taxes (Unaudited) (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Schedule Of Income Taxes [Line Items]
 
 
 
 
U.S. operationsa
$ 2,000,000 
$ 331,000,000 
$ 24,000,000 
$ 293,000,000 
International operations
389,000,000 
217,000,000 
771,000,000 
372,000,000 
Total
(387,000,000)
114,000,000 
(747,000,000)
(79,000,000)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount
 
 
 
1,600,000,000 
Effective Income Tax Rate, Adjusted, Percent
 
 
39.00% 
32.00% 
Consolidated effective income tax rate (percent)
 
 
47.00% 
(2.00%)
Minimum Tax Credit Carryforwards [Member]
 
 
 
 
Schedule Of Income Taxes [Line Items]
 
 
 
 
U.S. operationsa
10,000,000 
 
(21,000,000)
 
Alternative minimum tax credits, changes to valuation allowances and net loss carryback [Member]
 
 
 
 
Schedule Of Income Taxes [Line Items]
 
 
 
 
U.S. operationsa
 
(332,000,000)
 
(290,000,000)
Cerro Verde [Member] |
Cerro Verde Royalty Dispute [Member] |
Royalty Assessments [Member]
 
 
 
 
Schedule Of Income Taxes [Line Items]
 
 
 
 
International operations
2,000,000 
 
0 
 
Total
(2,000,000)
 
 
 
October 2011 to Tax Year 2013 [Member] |
Cerro Verde [Member] |
Cerro Verde Royalty Dispute [Member] |
Royalty Assessments [Member]
 
 
 
 
Schedule Of Income Taxes [Line Items]
 
 
 
 
International operations
127,000,000 
 
127,000,000 
 
Total
(127,000,000)
 
 
 
December 2006 to Tax Year 2013 [Member] |
Cerro Verde [Member] |
Cerro Verde Royalty Dispute [Member] |
Royalty Assessments [Member]
 
 
 
 
Schedule Of Income Taxes [Line Items]
 
 
 
 
International operations
(125,000,000)
 
(125,000,000)
 
Total
$ 125,000,000 
 
 
 
Debt (Details) (USD $)
0 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Sep. 30, 2016
Revolving Credit Facility [Member]
Sep. 30, 2017
Property, Plant and Equipment [Member]
Sep. 30, 2016
Property, Plant and Equipment [Member]
Sep. 30, 2017
Property, Plant and Equipment [Member]
Sep. 30, 2016
Property, Plant and Equipment [Member]
Sep. 30, 2017
Oil and Gas Operations Segment [Member]
Oil and Gas Properties [Member]
Sep. 30, 2016
Oil and Gas Operations Segment [Member]
Oil and Gas Properties [Member]
Sep. 30, 2017
Oil and Gas Operations Segment [Member]
Oil and Gas Properties [Member]
Sep. 30, 2016
Oil and Gas Operations Segment [Member]
Oil and Gas Properties [Member]
Jun. 30, 2017
Line of Credit [Member]
Cerro Verde [Member]
Sep. 30, 2017
Line of Credit [Member]
Cerro Verde [Member]
years
Dec. 31, 2016
Line of Credit [Member]
Cerro Verde [Member]
Sep. 30, 2017
Line of Credit [Member]
Letter of Credit [Member]
Sep. 30, 2017
Line of Credit [Member]
Revolving Credit Facility [Member]
Dec. 31, 2021
Line of Credit [Member]
Debt Instrument, Redemption, Period Three [Member]
Scenario, Forecast [Member]
Cerro Verde [Member]
Cerro Verde Credit Facility [Member]
Jun. 30, 2021
Line of Credit [Member]
Debt Instrument, Redemption, Period Three [Member]
Scenario, Forecast [Member]
Cerro Verde [Member]
Cerro Verde Credit Facility [Member]
Dec. 31, 2020
Line of Credit [Member]
Debt Instrument, Redemption, Period Three [Member]
Scenario, Forecast [Member]
Cerro Verde [Member]
Cerro Verde Credit Facility [Member]
Sep. 30, 2017
Shareholder Loan [Member]
Cerro Verde [Member]
Dec. 31, 2016
Shareholder Loan [Member]
Cerro Verde [Member]
Sep. 30, 2017
Senior Notes [Member]
Sep. 30, 2016
Senior Notes [Member]
Sep. 30, 2017
Senior Notes [Member]
6.625% Senior Notes due 2021 [Member]
Sep. 30, 2017
Senior Notes [Member]
6.125% Senior Notes due 2019 [Member]
Mar. 31, 2017
Senior Notes [Member]
2.15% Senior Notes Due 2017 [Member]
Sep. 30, 2017
Senior Notes [Member]
FCX [Member]
Dec. 31, 2016
Senior Notes [Member]
FCX [Member]
Sep. 30, 2017
Senior Notes [Member]
Freeport-McMoRan Oil & Gas
Dec. 31, 2016
Senior Notes [Member]
Freeport-McMoRan Oil & Gas
Sep. 30, 2017
Senior Notes [Member]
Freeport-McMoRan Oil & Gas
6.625% Senior Notes due 2021 [Member]
Sep. 30, 2017
Senior Notes [Member]
Freeport-McMoRan Oil & Gas
6.125% Senior Notes due 2019 [Member]
Sep. 30, 2017
Senior Notes [Member]
Freeport-McMoRan Oil & Gas
6.75% Senior Notes due 2022 [Member]
Sep. 30, 2017
Debentures [Member]
Freeport McMoRan Corporation [Member]
Dec. 31, 2016
Debentures [Member]
Freeport McMoRan Corporation [Member]
Sep. 30, 2017
Other Debt, Including Capital Leases and Short Term Borrowings [Member]
Dec. 31, 2016
Other Debt, Including Capital Leases and Short Term Borrowings [Member]
Debt Instruments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 543,000,000 
 
$ 228,000,000 
$ 179,000,000 
 
 
 
 
 
$ 33,000,000 
$ 58,000,000 
$ 45,000,000 
 
 
 
 
Long-term Debt, Gross
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,811,000,000 
13,745,000,000 
122,000,000 
267,000,000 
 
 
 
358,000,000 
359,000,000 
 
 
Long-term Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,486,000,000 
1,390,000,000 
 
0 
 
 
 
0 
261,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
 
 
14,782,000,000 
 
14,782,000,000 
 
16,027,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
5,000,000 
Less current portion of long-term debt and short-term borrownings
 
 
(2,215,000,000)
 
(2,215,000,000)
 
(1,232,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
 
12,567,000,000 
 
12,567,000,000 
 
14,795,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities, Fair Value Adjustment
131,000,000 
179,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net
 
 
92,000,000 
 
92,000,000 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Line of Credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, Remaining Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500,000,000 
3,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes Issued by FCX [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.15% 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
Cerro Verde [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Increase (Decrease), Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
225,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Number of Installment Payments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Periodic Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
525,000,000 
225,000,000 
225,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Effective Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.14% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchanges and Early Extinguishment of Debt [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Issuance Costs, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23,000,000 
 
12,000,000 
5,000,000 
 
 
 
 
 
2,000,000 
2,000,000 
2,000,000 
 
 
 
 
Extinguishment of Debt, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
566,000,000 
 
240 
184 
 
 
 
 
 
35 
60 
47 
 
 
 
 
Extinguishment Of Debt, Redemption Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
555,000,000 
 
234,000,000 
182,000,000 
 
 
 
 
 
34,000,000 
59,000,000 
46,000,000 
 
 
 
 
Net loss (gain) on exchanges and early extinguishment of debt
 
 
11,000,000 
15,000,000 
8,000,000 
51,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,000,000 
54,000,000 
6,000,000 
2,000,000 
 
 
 
 
 
1,000,000 
1,000,000 
1,000,000 
 
 
 
 
Losses primarily associated with modification of credit facility
 
 
 
 
 
 
 
(3,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Costs Incurred
 
 
196,000,000 
211,000,000 
583,000,000 
647,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Costs Capitalized
 
 
 
 
 
 
 
 
$ 33,000,000 
$ 24,000,000 
$ 91,000,000 
$ 66,000,000 
$ 0 
$ 0 
$ 0 
$ 7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Instruments (Unrealized gains losses) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Sep. 30, 2017
Commodity Contract [Member]
Sep. 30, 2016
Commodity Contract [Member]
Sep. 30, 2017
Commodity Contract [Member]
Sep. 30, 2016
Commodity Contract [Member]
Sep. 30, 2017
Commodity Contract [Member]
Designated as Hedging Instrument [Member]
lb
Sep. 30, 2017
Commodity Contract [Member]
Designated as Hedging Instrument [Member]
Sep. 30, 2017
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Sales [Member]
Sep. 30, 2016
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Sales [Member]
Sep. 30, 2017
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Sales [Member]
Sep. 30, 2016
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Sales [Member]
Sep. 30, 2017
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
lb
Sep. 30, 2017
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Sep. 30, 2017
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Cost of Sales
Sep. 30, 2016
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Cost of Sales
Sep. 30, 2017
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Cost of Sales
Sep. 30, 2016
Copper Forward Contracts [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Amounts recorded in Cost of Sales
Sep. 30, 2017
Copper
Short [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
lb
Sep. 30, 2017
Copper
Short [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Sep. 30, 2017
Copper
Long [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
lb
Sep. 30, 2017
Copper
Long [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Sep. 30, 2017
Gold
Short [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
oz
Sep. 30, 2017
Gold
Short [Member]
Embedded Derivative Financial Instruments [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Nonmonetary Notional Amount, Mass
 
 
 
 
46,000,000 
 
 
 
 
 
5,000,000 
 
 
 
 
 
546,000,000 
 
155,000,000 
 
194,000 
 
Derivative, Average Forward Price
 
 
 
 
 
2.83 
 
 
 
 
 
2.95 
 
 
 
 
 
2.84 
 
2.83 
 
1,318.00 
Unrealized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
$ 0 
$ 1 
$ (1)
$ 11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedged item – firm sales commitments
0 
(1)
1 
(11)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Matured derivative financial instruments
$ 12 
$ 0 
$ 21 
$ (8)
 
 
$ 137 
$ 12 
$ 297 
$ 88 
 
 
$ (9)
$ (1)
$ (14)
$ 4 
 
 
 
 
 
 
Derivative Average Market Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.93 
 
2.93 
 
1,287.00 
Financial Instruments (Unsettled Derivatives) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Trade accounts receivable [Member]
Dec. 31, 2016
Trade accounts receivable [Member]
Sep. 30, 2017
Other Current Assets
Dec. 31, 2016
Other Current Assets
Sep. 30, 2017
Accounts Payable and Accrued Liabilities
Dec. 31, 2016
Accounts Payable and Accrued Liabilities
Sep. 30, 2017
Commodity Contract [Member]
Sep. 30, 2016
Commodity Contract [Member]
Sep. 30, 2017
Commodity Contract [Member]
Sep. 30, 2016
Commodity Contract [Member]
Dec. 31, 2016
Commodity Contract [Member]
Sep. 30, 2017
Embedded Derivative Financial Instruments [Member]
Dec. 31, 2016
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
lb
Sep. 30, 2017
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Dec. 31, 2016
Designated as Hedging Instrument [Member]
Commodity Contract [Member]
Sep. 30, 2017
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Dec. 31, 2016
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
lb
Sep. 30, 2017
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
Sep. 30, 2017
Commodity Contract [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Dec. 31, 2016
Commodity Contract [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Sep. 30, 2017
Commodity Contract [Member]
Derivatives Not Designated as Hedging Instruments [Member]
FMC's Copper Futures and Swap Contracts [Member]
Dec. 31, 2016
Commodity Contract [Member]
Derivatives Not Designated as Hedging Instruments [Member]
FMC's Copper Futures and Swap Contracts [Member]
Sep. 30, 2017
Copper
Short [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
lb
Sep. 30, 2017
Copper
Short [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Copper
Long [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
lb
Sep. 30, 2017
Copper
Long [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Gold
Short [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
oz
Sep. 30, 2017
Gold
Short [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2016
Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2016
Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Embedded Derivative Financial Instruments [Member]
Sep. 30, 2017
Cost of Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
Sep. 30, 2016
Cost of Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
Sep. 30, 2017
Cost of Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
Sep. 30, 2016
Cost of Sales [Member]
Derivatives Not Designated as Hedging Instruments [Member]
Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
 
 
 
 
 
 
 
 
$ 12 
$ 0 
$ 21 
$ (8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 137 
$ 12 
$ 297 
$ 88 
$ (9)
$ (1)
$ (14)
$ 4 
Derivative Average Market Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.93 
 
2.93 
 
1,287.00 
 
 
 
 
 
 
 
 
Derivative Asset, Fair Value, Gross Asset
81 
146 
 
 
 
 
 
 
7 
 
7 
 
9 
74 
137 
 
7 
9 
74 
137 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liability, Fair Value, Gross Liability
48 
58 
 
 
 
 
 
 
2 
 
2 
 
2 
46 
56 
 
 
 
46 
56 
 
 
48 
58 
2 
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Asset, Fair Value, Gross Liability
3 
14 
 
 
 
 
 
 
2 
 
2 
 
2 
1 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liability, Fair Value, Gross Asset
3 
14 
 
 
 
 
 
 
2 
 
2 
 
2 
1 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Asset
78 
132 
69 
119 
5 
7 
4 
6 
5 
 
5 
 
7 
73 
125 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liability
$ 45 
$ 44 
$ 24 
$ 13 
$ 0 
$ 0 
$ 21 
$ 31 
$ 0 
 
$ 0 
 
$ 0 
$ 45 
$ 44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Nonmonetary Notional Amount, Mass
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46,000,000 
 
 
 
 
5,000,000 
 
 
 
 
 
546,000,000 
 
155,000,000 
 
194,000 
 
 
 
 
 
 
 
 
 
Derivative, Average Forward Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.83 
 
 
 
 
2.95 
 
 
 
 
 
2.84 
 
2.83 
 
1,318.00 
 
 
 
 
 
 
 
 
Financial Instruments (Derivative) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2015
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
$ 4,957 
$ 4,245 
$ 1,086 
$ 177 
Credit Derivative, Maximum Exposure, Undiscounted
78 
 
 
 
Bank Time Deposits [Member]
 
 
 
 
Cash and Cash Equivalents [Line Items]
 
 
 
 
Cash and Cash Equivalents, at Carrying Value
$ 1,900 
$ 64 
 
 
Fair Value Measurement (Fair Value Measurement Inputs) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Other current assets
$ 241 
$ 199 
Other assets
1,790 
1,956 
Investment securities (current and long-term):
 
 
Alternative Investment, Fair Value Disclosure
80 
76 
Derivatives:
 
 
Derivative Asset
78 
132 
Derivatives: [Abstract]
 
 
Derivative Liability
45 
44 
Level 1
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
27 
27 
Trust Assets Fair Value Disclosure
18 
12 
Derivatives:
 
 
Derivative Asset
5 
8 
Contingent receivable
0 
0 
Total assets
50 
47 
Derivatives: [Abstract]
 
 
Derivative Liability
1 
2 
Discontinued Operation, Contingent Payable
 
0 
Long-term debt, including current portion
0 
0 
Total liabilities
1 
2 
Level 2
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
116 
118 
Derivatives:
 
 
Derivative Asset
156 
184 
Contingent receivable
0 
0 
Total assets
272 
302 
Derivatives: [Abstract]
 
 
Derivative Liability
47 
56 
Discontinued Operation, Contingent Payable
 
23 
Long-term debt, including current portion
14,735 
15,196 
Total liabilities
14,782 
15,275 
Level 3
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
Derivatives:
 
 
Derivative Asset
0 
0 
Contingent receivable
138 
135 
Total assets
138 
135 
Derivatives: [Abstract]
 
 
Derivative Liability
0 
0 
Discontinued Operation, Contingent Payable
 
0 
Long-term debt, including current portion
0 
0 
Total liabilities
0 
0 
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
52 
50 
Trust Assets Fair Value Disclosure
189 
183 
Derivatives:
 
 
Derivative Asset
161 
192 
Contingent receivable
150 
150 
Derivatives: [Abstract]
 
 
Derivative Liability
48 
58 
Discontinued Operation, Contingent Payable
 
23 
Long-term debt, including current portion
14,782 
16,027 
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
52 
50 
Trust Assets Fair Value Disclosure
189 
183 
Derivatives:
 
 
Derivative Asset
161 
192 
Contingent receivable
138 
135 
Total assets
540 
560 
Derivatives: [Abstract]
 
 
Derivative Liability
48 
58 
Discontinued Operation, Contingent Payable
 
23 
Long-term debt, including current portion
14,735 
15,196 
Total liabilities
14,783 
15,277 
Embedded Derivative Financial Instruments [Member]
 
 
Derivatives:
 
 
Derivative Asset
73 
125 
Derivatives: [Abstract]
 
 
Derivative Liability
45 
44 
Embedded Derivative Financial Instruments [Member] |
Level 1
 
 
Derivatives:
 
 
Derivative Asset
0 
0 
Derivatives: [Abstract]
 
 
Derivative Liability
0 
0 
Embedded Derivative Financial Instruments [Member] |
Level 2
 
 
Derivatives:
 
 
Derivative Asset
74 
137 
Derivatives: [Abstract]
 
 
Derivative Liability
46 
56 
Embedded Derivative Financial Instruments [Member] |
Level 3
 
 
Derivatives:
 
 
Derivative Asset
0 
0 
Derivatives: [Abstract]
 
 
Derivative Liability
0 
0 
Embedded Derivative Financial Instruments [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Derivatives:
 
 
Derivative Asset
74 
137 
Derivatives: [Abstract]
 
 
Derivative Liability
46 
56 
Embedded Derivative Financial Instruments [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Derivatives:
 
 
Derivative Asset
74 
137 
Derivatives: [Abstract]
 
 
Derivative Liability
46 
56 
Commodity Contract [Member]
 
 
Derivatives:
 
 
Derivative Asset
5 
7 
Derivatives: [Abstract]
 
 
Derivative Liability
0 
0 
Commodity Contract [Member] |
Level 1
 
 
Derivatives:
 
 
Derivative Asset
5 
8 
Derivatives: [Abstract]
 
 
Derivative Liability
1 
2 
Commodity Contract [Member] |
Level 2
 
 
Derivatives:
 
 
Derivative Asset
2 
1 
Derivatives: [Abstract]
 
 
Derivative Liability
1 
0 
Commodity Contract [Member] |
Level 3
 
 
Derivatives:
 
 
Derivative Asset
0 
0 
Derivatives: [Abstract]
 
 
Derivative Liability
0 
0 
Commodity Contract [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Derivatives:
 
 
Derivative Asset
7 
9 
Derivatives: [Abstract]
 
 
Derivative Liability
2 
2 
Commodity Contract [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Derivatives:
 
 
Derivative Asset
7 
9 
Derivatives: [Abstract]
 
 
Derivative Liability
2 
2 
Africa and onshore California [Member] |
Commodity Contract [Member] |
Level 1
 
 
Derivatives:
 
 
Derivative Asset
0 
0 
Africa and onshore California [Member] |
Commodity Contract [Member] |
Level 2
 
 
Derivatives:
 
 
Derivative Asset
80 
46 
Africa and onshore California [Member] |
Commodity Contract [Member] |
Level 3
 
 
Derivatives:
 
 
Derivative Asset
0 
0 
Africa and onshore California [Member] |
Commodity Contract [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Derivatives:
 
 
Derivative Asset
80 
46 
Africa and onshore California [Member] |
Commodity Contract [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Derivatives:
 
 
Derivative Asset
80 
46 
U.S. core fixed income fund [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
U.S. core fixed income fund [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
U.S. core fixed income fund [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
U.S. core fixed income fund [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
25 
23 
Trust Assets Fair Value Disclosure
55 
53 
U.S. core fixed income fund [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
25 
23 
Trust Assets Fair Value Disclosure
55 
53 
Money market funds [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
21 
22 
Trust Assets Fair Value Disclosure
18 
12 
Money market funds [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
Money market funds [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Trust Assets Fair Value Disclosure
0 
0 
Money market funds [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
21 
22 
Trust Assets Fair Value Disclosure
18 
12 
Money market funds [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
21 
22 
Trust Assets Fair Value Disclosure
18 
12 
Equity securities |
Level 1
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
6 
5 
Equity securities |
Level 2
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Equity securities |
Level 3
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
0 
0 
Equity securities |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
6 
5 
Equity securities |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Available-for-sale Securities
6 
5 
Government bonds |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Government bonds |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
38 
36 
Government bonds |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Government bonds |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
38 
36 
Government bonds |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
38 
36 
Corporate bonds [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Corporate bonds [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
30 
32 
Corporate bonds [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Corporate bonds [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
30 
32 
Corporate bonds [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
30 
32 
Government mortgage-backed securities [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Government mortgage-backed securities [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
25 
25 
Government mortgage-backed securities [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Government mortgage-backed securities [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
25 
25 
Government mortgage-backed securities [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
25 
25 
Asset-backed securities [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Asset-backed securities [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
14 
16 
Asset-backed securities [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Asset-backed securities [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
14 
16 
Asset-backed securities [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
14 
16 
Collateralized Mortgage Backed Securities [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
8 
8 
Collateralized Mortgage Backed Securities [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Collateralized Mortgage Backed Securities [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
8 
8 
Collateralized Mortgage Backed Securities [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
8 
8 
Municipal bonds [Member] |
Level 1
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Municipal bonds [Member] |
Level 2
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
1 
1 
Municipal bonds [Member] |
Level 3
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
0 
0 
Municipal bonds [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
1 
1 
Municipal bonds [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Investment securities (current and long-term):
 
 
Trust Assets Fair Value Disclosure
1 
1 
Bank Time Deposits [Member] |
Carrying Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
 
 
Other current assets
41 
28 
Other assets
122 
122 
Investment Securities [Member]
 
 
Investment securities (current and long-term):
 
 
Alternative Investment, Fair Value Disclosure
25 
23 
Investment Securities [Member] |
U.S. core fixed income fund [Member]
 
 
Investment securities (current and long-term):
 
 
Alternative Investment, Fair Value Disclosure
25 
23 
Restricted Funds [Member]
 
 
Investment securities (current and long-term):
 
 
Alternative Investment, Fair Value Disclosure
55 
53 
Restricted Funds [Member] |
U.S. core fixed income fund [Member]
 
 
Investment securities (current and long-term):
 
 
Alternative Investment, Fair Value Disclosure
$ 55 
$ 53 
Fair Value Measurement (Unobservable inputs) (Details) (Gulf of Mexico Contingent Consideration [Member], USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Gulf of Mexico Contingent Consideration [Member]
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
Fair value at January 1, 2017
$ 135 
Net unrealized gain related to assets still held at the end of the period
3 
Fair value at September 30, 2017
$ 138 
Contingencies and Commitments (Unaudited) (Details) (USD $)
0 Months Ended 9 Months Ended 3 Months Ended 3 Months Ended 45 Months Ended 3 Months Ended
Jan. 1, 2014
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
PT Freeport Indonesia [Member]
Sep. 30, 2017
Tax Authority, In Papau, Indonesia [Member]
Relating to 2011 through 2015 [Member]
PT Freeport Indonesia [Member]
Sep. 30, 2017
Tax Authority, In Papau, Indonesia [Member]
Relating to 2016 through nine-months 2017 [Member] [Member]
PT Freeport Indonesia [Member]
Sep. 30, 2017
Tax Authority, In Papau, Indonesia [Member]
Relating to 2011 through 2017 [Member]
PT Freeport Indonesia [Member]
Sep. 30, 2017
Borough of Carteret [Member]
Jun. 30, 2017
Uranium Mining Sites on Tribal Land [Member]
Sep. 30, 2017
Uranium Mining Sites on Tribal Land [Member]
site
Sep. 30, 2017
Cerro Verde Royalty Dispute [Member]
Pending Litigation [Member]
Tax Year 2009 to Tax Year 2013 [Member]
Sep. 30, 2017
Unfavorable Regulatory Action [Member]
Cerro Verde Royalty Dispute [Member]
Judicial Ruling [Member]
Sep. 30, 2017
Royalty Assessments [Member]
October 2011 to Tax Year 2013 [Member]
Sep. 30, 2017
Royalty Assessments [Member]
Cerro Verde Royalty Dispute [Member]
Judicial Ruling [Member]
Sep. 30, 2017
Royalty Assessments [Member]
Cerro Verde Royalty Dispute [Member]
Judicial Ruling [Member]
Tax Year 2006 To Tax Year 2008 [Member]
Sep. 30, 2017
Royalty Assessments, Penalties And Interests [Member]
Cerro Verde Royalty Dispute [Member]
Judicial Ruling [Member]
Sep. 30, 2017
Royalty Assessments, Taxes [Member]
Cerro Verde Royalty Dispute [Member]
Judicial Ruling [Member]
Sep. 30, 2017
Penalties [Member]
Tax Authority, In Papau, Indonesia [Member]
Relating to 2011 through 2015 [Member]
PT Freeport Indonesia [Member]
Sep. 30, 2017
Parent Company [Member]
Cerro Verde Royalty Dispute [Member]
Pending Litigation [Member]
Tax Year 2009 to Tax Year 2013 [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for Environmental Loss Contingencies, Charges to Expense for New Losses
 
 
 
 
 
 
 
$ 59,000,000 
 
 
 
 
 
 
 
 
 
 
 
Site Contingency, Number Of Sites
 
 
 
 
 
 
 
 
 
94 
 
 
 
 
 
 
 
 
 
Loss Contingency, Estimate of Possible Loss
 
 
 
 
402,000,000 
114,000,000 
516,000,000 
 
 
 
360,000,000 
 
 
 
 
 
 
240,000,000 
193,000,000 
Environmental accrual, revision in estimate
 
 
 
 
 
 
 
 
(41,000,000)
 
 
 
 
 
 
 
 
 
 
Stability Agreement, Term
15 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments for Legal Settlements
 
32,000,000 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
135,000,000 
 
 
 
 
Loss Contingency, Loss in Period
 
 
 
 
 
 
 
 
 
 
 
357,000,000 
0 
240,000,000 
 
147,000,000 
97,000,000 
 
 
Loss Contingency, Loss In Period, Attributable To Parent
 
 
 
 
 
 
 
 
 
 
 
188,000,000 
 
 
 
 
 
 
 
Loss Contingency, Loss in Period, Including Tax Charges
 
 
 
 
 
 
 
 
 
 
 
359,000,000 
 
 
 
 
 
 
 
Income Tax Examination, Penalties and Interest Accrued
 
 
 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Progressive Export Duty on Copper Concentrates, Lower Threshold, Percent
 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingencies and Commitments (Unaudited) - Schedule of Charges for Royalty Assessments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Loss Contingencies [Line Items]
 
 
 
 
Production and delivery
$ 2,802 
$ 2,529 
$ 7,497 
$ 7,984 
Interest expense, net
(304)
(187)
(633)
(574)
Provision for (benefit from) income taxes
387 
(114)
747 
79 
Net loss attributable to noncontrolling interest
(35)
37 
106 
146 
Net income (loss) attributable to common stockholders
280 
217 
776 
(4,446)
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments, Taxes [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Production and delivery
34 
 
 
 
Provision for (benefit from) income taxes
63 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Provision for (benefit from) income taxes
2 
 
 
 
Net loss attributable to noncontrolling interest
(171)
 
 
 
Net income (loss) attributable to common stockholders
188 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments [Member] |
Tax Year 2006 To September 2011 [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Production and delivery
176 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments [Member] |
October 2011 to Tax Year 2013 [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Provision for (benefit from) income taxes
127 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments [Member] |
December 2006 to Tax Year 2013 [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Provision for (benefit from) income taxes
(125)
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Disputed Royalty Assessments [Member] |
October 2011 to Tax Year 2013 [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Provision for (benefit from) income taxes
64 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Cerro Verde [Member] |
Royalty Assessments, Penalties [Member]
 
 
 
 
Loss Contingencies [Line Items]
 
 
 
 
Production and delivery
$ 6 
 
 
 
Business Segments (Segment Reporting) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
$ 4,310 
$ 3,877 
$ 11,362 
$ 10,453 
 
Production and delivery
2,802 
2,529 
7,497 
7,984 
 
Depreciation, depletion and amortization
418 
643 
1,257 
1,937 
 
Impairment of oil and gas properties
0 
239 
0 
4,300 
 
Selling, general and administrative expenses
106 
110 
366 
408 
 
Mining exploration and research expenses
27 
13 
61 
46 
 
Environmental obligations and shutdown costs (credits)
73 
(3)
81 
18 
 
Net gain on sales of assets
(33)
(13)
(66)
(762)
 
Operating income (loss)
917 
359 
2,166 
(3,495)
 
Interest expense, net
304 
187 
633 
574 
 
Provision for (benefit from) income taxes
387 
(114)
747 
79 
 
Total assets
37,327 
41,400 
37,327 
41,400 
37,317 
Capital expenditures
314 
494 
1,020 
2,309 
 
Oil and gas contract settlement payments
 
 
70 
0 
 
Assets, discontinued operations
549 
5,100 
549 
5,100 
 
Operating Segments |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
97 
227 
290 
567 
 
Production and delivery
658 
739 
2,056 
2,253 
 
Depreciation, depletion and amortization
96 
129 
330 
407 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
2 
1 
4 
4 
 
Mining exploration and research expenses
0 
1 
2 
2 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
1 
0 
(576)
 
Operating income (loss)
349 
213 
956 
1,190 
 
Interest expense, net
1 
1 
3 
3 
 
Provision for (benefit from) income taxes
0 
0 
0 
0 
 
Total assets
7,067 
7,421 
7,067 
7,421 
 
Capital expenditures
39 
11 
106 
87 
 
Operating Segments |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
959 
617 
2,389 
1,864 
 
Production and delivery
759 
424 
1,695 
1,240 
 
Depreciation, depletion and amortization
134 
134 
392 
402 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
2 
2 
7 
6 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
128 
111 
532 
371 
 
Interest expense, net
156 
21 
187 
63 
 
Provision for (benefit from) income taxes
139 
32 
298 
114 
 
Total assets
10,446 
10,690 
10,446 
10,690 
 
Capital expenditures
20 
39 
65 
332 
 
Corporate And Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
442 
674 
1,261 
1,828 
 
Production and delivery
(753)
(516)
(2,324)
(991)
 
Depreciation, depletion and amortization
23 
246 
77 
764 
 
Impairment of oil and gas properties
 
239 
 
4,317 
 
Selling, general and administrative expenses
66 
78 
250 
325 
 
Mining exploration and research expenses
27 
12 
59 
44 
 
Environmental obligations and shutdown costs (credits)
73 
(3)
81 
18 
 
Net gain on sales of assets
(33)
(14)
(66)
(186)
 
Operating income (loss)
(107)
(334)
(333)
(5,551)
 
Interest expense, net
141 
162 
429 
497 
 
Provision for (benefit from) income taxes
14 
(308)
10 
(252)
 
Total assets
5,814 
10,815 
5,814 
10,815 
 
Capital expenditures
41 
185 
149 
1,169 
 
Restructuring Charges
 
 
5 
 
 
Intersegment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
0 
0 
0 
0 
 
Intersegment |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
1,008 
857 
3,058 
2,713 
 
Intersegment |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
64 
54 
237 
155 
 
Pt Smelting [Member] |
Affiliated Entity [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
652 
348 
1,400 
912 
 
Discontinued Operations, Disposed of by Sale |
Tenke Fungurume [Member] |
Corporate And Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
 
15 
 
70 
 
Pt Smelting [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Deferred Intercompany Profit, Percentage
 
 
25.00% 
 
 
Morenci [Member] |
Operating Segments |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
57 
115 
168 
356 
 
Production and delivery
244 
275 
772 
913 
 
Depreciation, depletion and amortization
42 
51 
138 
170 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
1 
1 
2 
2 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
1 
0 
(576)
 
Operating income (loss)
230 
145 
610 
966 
 
Interest expense, net
1 
1 
2 
2 
 
Provision for (benefit from) income taxes
0 
0 
0 
0 
 
Total assets
2,844 
2,881 
2,844 
2,881 
 
Capital expenditures
26 
6 
78 
71 
 
Morenci [Member] |
Intersegment |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
460 
358 
1,354 
1,119 
 
Other Individually Immaterial Operating Segments [Member] |
Operating Segments |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
40 
112 
122 
211 
 
Production and delivery
414 
464 
1,284 
1,340 
 
Depreciation, depletion and amortization
54 
78 
192 
237 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
1 
0 
2 
2 
 
Mining exploration and research expenses
0 
1 
2 
2 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
119 
68 
346 
224 
 
Interest expense, net
0 
0 
1 
1 
 
Provision for (benefit from) income taxes
0 
0 
0 
0 
 
Total assets
4,223 
4,540 
4,223 
4,540 
 
Capital expenditures
13 
5 
28 
16 
 
Other Individually Immaterial Operating Segments [Member] |
Operating Segments |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
109 
112 
332 
379 
 
Production and delivery
76 
91 
245 
313 
 
Depreciation, depletion and amortization
18 
25 
60 
83 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
0 
1 
0 
1 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
15 
(5)
27 
(18)
 
Interest expense, net
0 
0 
0 
0 
 
Provision for (benefit from) income taxes
5 
(4)
10 
(12)
 
Total assets
1,595 
1,551 
1,595 
1,551 
 
Capital expenditures
3 
1 
5 
3 
 
Other Individually Immaterial Operating Segments [Member] |
Intersegment |
North America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
548 
499 
1,704 
1,594 
 
Other Individually Immaterial Operating Segments [Member] |
Intersegment |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
0 
0 
0 
0 
 
Cerro Verde [Member] |
Operating Segments |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
850 
505 
2,057 
1,485 
 
Production and delivery
683 
333 
1,450 
927 
 
Depreciation, depletion and amortization
116 
109 
332 
319 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
2 
1 
7 
5 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
113 
116 
505 
389 
 
Interest expense, net
156 
21 
187 
63 
 
Provision for (benefit from) income taxes
134 
36 
288 
126 
 
Total assets
8,851 
9,139 
8,851 
9,139 
 
Capital expenditures
17 
38 
60 
329 
 
Cerro Verde [Member] |
Intersegment |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
64 
54 
237 
155 
 
Grasberg Segment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
 
 
663 
706 
 
Grasberg Segment [Member] |
Operating Segments |
Indonesia
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
1,121 
984 
2,720 
2,014 
 
Production and delivery
406 
478 
1,233 
1,228 
 
Depreciation, depletion and amortization
136 
110 
372 
284 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
32 
24 
92 
60 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
547 
374 
1,023 
501 
 
Interest expense, net
1 
0 
1 
0 
 
Provision for (benefit from) income taxes
233 
158 
435 
212 
 
Total assets
11,100 
9,718 
11,100 
9,718 
 
Capital expenditures
206 
253 
663 
706 
 
Grasberg Segment [Member] |
Intersegment |
Indonesia
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
0 
2 
0 
59 
 
Molybdenum [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
 
 
4 
2 
 
Molybdenum [Member] |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
0 
0 
0 
0 
 
Production and delivery
58 
57 
169 
159 
 
Depreciation, depletion and amortization
20 
15 
58 
51 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
0 
0 
0 
0 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
(13)
(26)
(28)
(74)
 
Interest expense, net
0 
0 
0 
0 
 
Provision for (benefit from) income taxes
0 
0 
0 
0 
 
Total assets
1,885 
1,953 
1,885 
1,953 
 
Capital expenditures
2 
1 
4 
2 
 
Molybdenum [Member] |
Intersegment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
65 
46 
199 
136 
 
Rod and Refining Segment [Member] |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
1,137 
930 
3,290 
2,820 
 
Production and delivery
1,141 
931 
3,299 
2,820 
 
Depreciation, depletion and amortization
2 
2 
7 
7 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
0 
0 
0 
0 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
2 
4 
6 
15 
 
Interest expense, net
0 
0 
0 
0 
 
Provision for (benefit from) income taxes
0 
0 
0 
0 
 
Total assets
264 
238 
264 
238 
 
Capital expenditures
1 
0 
3 
1 
 
Rod and Refining Segment [Member] |
Intersegment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
8 
7 
22 
22 
 
Atlantic Copper Smelting and Refining Segment [Member] |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
554 
445 
1,412 
1,360 
 
Production and delivery
533 
416 
1,369 
1,275 
 
Depreciation, depletion and amortization
7 
7 
21 
22 
 
Impairment of oil and gas properties
 
0 
 
0 
 
Selling, general and administrative expenses
4 
5 
13 
13 
 
Mining exploration and research expenses
0 
0 
0 
0 
 
Environmental obligations and shutdown costs (credits)
0 
0 
0 
0 
 
Net gain on sales of assets
0 
0 
0 
0 
 
Operating income (loss)
11 
17 
10 
53 
 
Interest expense, net
5 
3 
13 
11 
 
Provision for (benefit from) income taxes
1 
4 
4 
5 
 
Total assets
751 
565 
751 
565 
 
Capital expenditures
5 
5 
30 
12 
 
Atlantic Copper Smelting and Refining Segment [Member] |
Intersegment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
1 
0 
1 
3 
 
Corporate And Eliminations [Member] |
Corporate And Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
 
 
(3,517)
(3,088)
 
Corporate And Eliminations [Member] |
Intersegment
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
(1,146)
(966)
 
 
 
Oil and Gas Operations Segment [Member] |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total assets
272 
3,500 
272 
3,500 
 
Oil and Gas Operations Segment [Member] |
Corporate And Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Capital expenditures
 
160 
 
1,100 
 
Oil and gas drillship settlements, inventory adjustments and asset impairment
 
49 
 
 
 
Restructuring Charges
 
 
 
38 
 
Oil and Gas idle rig credits (costs), inventory adjustments and asset impairments
 
 
 
942 
 
One-time Termination Benefits [Member] |
Grasberg Segment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Production and delivery
 
 
112 
 
 
Cerro Verde Royalty Dispute [Member] |
Royalty Assessments [Member] |
Cerro Verde [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Provision for (benefit from) income taxes
2 
 
 
 
 
Cerro Verde Royalty Dispute [Member] |
Royalty Assessments [Member] |
Cerro Verde [Member] |
Operating Segments |
South America
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Production and delivery
216 
 
216 
 
 
Interest expense, net
141 
 
141 
 
 
Provision for (benefit from) income taxes
$ 2 
 
$ 2 
 
 
Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Details) (FM O&G LLC Guarantor [Member])
Sep. 30, 2017
FM O&G LLC Guarantor [Member]
 
Condensed Financial Statements, Captions [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
100.00% 
Guarantor Financial Statements (Unaudited) Condensed Consolidating Balance Sheets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
ASSETS
 
 
 
Current assets, other than assets held-for-sale
$ 11,150 
$ 10,435 
 
Property, plant, equipment and mine development costs, net
22,914 
23,219 
 
Oil and gas properties, subject to amortization, less accumulated amortization
20 
74 
 
Investments in consolidated subsidiaries
0 
0 
 
Other assets
3,243 
3,589 
 
Total assets
37,327 
37,317 
41,400 
LIABILITIES AND EQUITY
 
 
 
Current liabilities, other than liabilities held for sale
5,517 
4,265 
 
Long-term debt, less current portion
12,567 
14,795 
 
Deferred income taxes
3,771 
3,768 
 
Environmental and asset retirement obligations, less current portion
3,498 
3,487 
 
Investments in consolidated subsidiaries
0 
0 
 
Other liabilities
1,744 
1,745 
 
Total liabilities
27,097 
28,060 
 
Equity:
 
 
 
Stockholders' equity
6,973 
6,051 
 
Noncontrolling interests
3,257 
3,206 
 
Total equity
10,230 
9,257 
 
Total liabilities and equity
37,327 
37,317 
 
Eliminations [Member]
 
 
 
ASSETS
 
 
 
Current assets, other than assets held-for-sale
(711)
(3,260)
 
Property, plant, equipment and mine development costs, net
(11)
0 
 
Oil and gas properties, subject to amortization, less accumulated amortization
0 
0 
 
Investments in consolidated subsidiaries
(20,178)
(21,110)
 
Other assets
(465)
(1,965)
 
Total assets
(21,365)
(26,335)
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities, other than liabilities held for sale
(816)
(3,244)
 
Long-term debt, less current portion
(10,082)
(15,081)
 
Deferred income taxes
0 
0 
 
Environmental and asset retirement obligations, less current portion
0 
0 
 
Investments in consolidated subsidiaries
(11,024)
(9,888)
 
Other liabilities
(3,487)
(3,487)
 
Total liabilities
(25,409)
(31,700)
 
Equity:
 
 
 
Stockholders' equity
3,393 
4,758 
 
Noncontrolling interests
651 
607 
 
Total equity
4,044 
5,365 
 
Total liabilities and equity
(21,365)
(26,335)
 
FCX Issuer [Member] |
Reportable Legal Entities [Member]
 
 
 
ASSETS
 
 
 
Current assets, other than assets held-for-sale
197 
230 
 
Property, plant, equipment and mine development costs, net
15 
19 
 
Oil and gas properties, subject to amortization, less accumulated amortization
0 
0 
 
Investments in consolidated subsidiaries
20,178 
21,110 
 
Other assets
479 
1,985 
 
Total assets
20,869 
23,344 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities, other than liabilities held for sale
2,402 
3,895 
 
Long-term debt, less current portion
10,600 
12,517 
 
Deferred income taxes
832 
826 
 
Environmental and asset retirement obligations, less current portion
0 
0 
 
Investments in consolidated subsidiaries
0 
0 
 
Other liabilities
62 
55 
 
Total liabilities
13,896 
17,293 
 
Equity:
 
 
 
Stockholders' equity
6,973 
6,051 
 
Noncontrolling interests
0 
0 
 
Total equity
6,973 
6,051 
 
Total liabilities and equity
20,869 
23,344 
 
FM O&G LLC Guarantor [Member] |
Reportable Legal Entities [Member]
 
 
 
ASSETS
 
 
 
Current assets, other than assets held-for-sale
716 
1,790 
 
Property, plant, equipment and mine development costs, net
11 
24 
 
Oil and gas properties, subject to amortization, less accumulated amortization
0 
0 
 
Investments in consolidated subsidiaries
0 
0 
 
Other assets
36 
47 
 
Total assets
763 
1,861 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities, other than liabilities held for sale
111 
308 
 
Long-term debt, less current portion
6,428 
6,062 
 
Deferred income taxes
0 
0 
 
Environmental and asset retirement obligations, less current portion
208 
200 
 
Investments in consolidated subsidiaries
850 
893 
 
Other liabilities
3,341 
3,393 
 
Total liabilities
10,938 
10,856 
 
Equity:
 
 
 
Stockholders' equity
(10,175)
(8,995)
 
Noncontrolling interests
0 
0 
 
Total equity
(10,175)
(8,995)
 
Total liabilities and equity
763 
1,861 
 
Non-Guarantor Subsidiaries [Member] |
Reportable Legal Entities [Member]
 
 
 
ASSETS
 
 
 
Current assets, other than assets held-for-sale
10,948 
11,675 
 
Property, plant, equipment and mine development costs, net
22,899 
23,176 
 
Oil and gas properties, subject to amortization, less accumulated amortization
20 
74 
 
Investments in consolidated subsidiaries
0 
0 
 
Other assets
3,193 
3,522 
 
Total assets
37,060 
38,447 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities, other than liabilities held for sale
3,820 
3,306 
 
Long-term debt, less current portion
5,621 
11,297 
 
Deferred income taxes
2,939 
2,942 
 
Environmental and asset retirement obligations, less current portion
3,290 
3,287 
 
Investments in consolidated subsidiaries
10,174 
8,995 
 
Other liabilities
1,828 
1,784 
 
Total liabilities
27,672 
31,611 
 
Equity:
 
 
 
Stockholders' equity
6,782 
4,237 
 
Noncontrolling interests
2,606 
2,599 
 
Total equity
9,388 
6,836 
 
Total liabilities and equity
$ 37,060 
$ 38,447 
 
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues
$ 4,310 
$ 3,877 
$ 11,362 
$ 10,453 
Total costs and expenses
3,393 
3,518 
9,196 
13,948 
Operating (loss) income
917 
359 
2,166 
(3,495)
Interest expense, net
(304)
(187)
(633)
(574)
Other income (expense), net
13 
5 
44 
105 
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
626 
177 
1,577 
(3,964)
(Provision for) benefit from income taxes
(387)
114 
(747)
(79)
Equity in affiliated companies’ net earnings (losses)
3 
1 
6 
9 
Net income (loss) from continuing operations
242 
292 
836 
(4,034)
Net income (loss) from discontinued operations
3 
(6)
50 
(191)
Net income (loss)
245 
286 
886 
(4,225)
Continuing operations
35 
(47)
(106)
(177)
Discontinued operations
0 
(22)
(4)
(44)
Net income (loss) attributable to common stockholders
280 
217 
776 
(4,446)
Other comprehensive income (loss)
13 
12 
105 
27 
Total comprehensive income (loss)
293 
229 
881 
(4,419)
Eliminations [Member]
 
 
 
 
Revenues
0 
0 
0 
0 
Total costs and expenses
(1)
1 
11 
7 
Operating (loss) income
1 
(1)
(11)
(7)
Interest expense, net
89 
89 
252 
237 
Other income (expense), net
(89)
(76)
(252)
(202)
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
1 
12 
(11)
28 
(Provision for) benefit from income taxes
0 
8 
4 
2 
Equity in affiliated companies’ net earnings (losses)
(283)
883 
(907)
10,733 
Net income (loss) from continuing operations
(282)
903 
(914)
10,763 
Net income (loss) from discontinued operations
0 
(12)
0 
(33)
Net income (loss)
(282)
891 
(914)
10,730 
Continuing operations
(34)
(23)
(64)
(36)
Discontinued operations
0 
0 
0 
0 
Net income (loss) attributable to common stockholders
(316)
868 
(978)
10,694 
Other comprehensive income (loss)
(13)
(12)
(105)
(27)
Total comprehensive income (loss)
(329)
856 
(1,083)
10,667 
FCX Issuer [Member] |
Reportable Legal Entities [Member]
 
 
 
 
Revenues
0 
0 
0 
0 
Total costs and expenses
8 
12 
31 
56 
Operating (loss) income
(8)
(12)
(31)
(56)
Interest expense, net
(116)
(126)
(355)
(404)
Other income (expense), net
97 
91 
256 
248 
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
(27)
(47)
(130)
(212)
(Provision for) benefit from income taxes
21 
343 
(111)
(1,785)
Equity in affiliated companies’ net earnings (losses)
286 
(75)
1,017 
(2,450)
Net income (loss) from continuing operations
280 
221 
776 
(4,447)
Net income (loss) from discontinued operations
0 
(4)
0 
1 
Net income (loss)
280 
217 
776 
(4,446)
Continuing operations
0 
0 
0 
0 
Discontinued operations
0 
0 
0 
0 
Net income (loss) attributable to common stockholders
280 
217 
776 
(4,446)
Other comprehensive income (loss)
13 
12 
105 
27 
Total comprehensive income (loss)
293 
229 
881 
(4,419)
FM O&G LLC Guarantor [Member]
 
 
 
 
Production Related Impairments or Charges
 
95 
 
1,500 
FM O&G LLC Guarantor [Member] |
Reportable Legal Entities [Member]
 
 
 
 
Revenues
13 
110 
38 
294 
Total costs and expenses
25 
266 
86 
2,859 
Operating (loss) income
(12)
(156)
(48)
(2,565)
Interest expense, net
(59)
(18)
(167)
(37)
Other income (expense), net
3 
0 
3 
0 
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
(68)
(174)
(212)
(2,602)
(Provision for) benefit from income taxes
24 
(197)
74 
725 
Equity in affiliated companies’ net earnings (losses)
20 
(218)
14 
(3,202)
Net income (loss) from continuing operations
(24)
(589)
(124)
(5,079)
Net income (loss) from discontinued operations
0 
0 
0 
0 
Net income (loss)
(24)
(589)
(124)
(5,079)
Continuing operations
0 
0 
0 
0 
Discontinued operations
0 
0 
0 
0 
Net income (loss) attributable to common stockholders
(24)
(589)
(124)
(5,079)
Other comprehensive income (loss)
0 
0 
0 
0 
Total comprehensive income (loss)
(24)
(589)
(124)
(5,079)
Non-Guarantor Subsidiaries [Member]
 
 
 
 
Production Related Impairments or Charges
 
200 
 
2,800 
Non-Guarantor Subsidiaries [Member] |
Reportable Legal Entities [Member]
 
 
 
 
Revenues
4,297 
3,767 
11,324 
10,159 
Total costs and expenses
3,361 
3,239 
9,068 
11,026 
Operating (loss) income
936 
528 
2,256 
(867)
Interest expense, net
(218)
(132)
(363)
(370)
Other income (expense), net
2 
(10)
37 
59 
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings
720 
386 
1,930 
(1,178)
(Provision for) benefit from income taxes
(432)
(40)
(714)
979 
Equity in affiliated companies’ net earnings (losses)
(20)
(589)
(118)
(5,072)
Net income (loss) from continuing operations
268 
(243)
1,098 
(5,271)
Net income (loss) from discontinued operations
3 
10 
50 
(159)
Net income (loss)
271 
(233)
1,148 
(5,430)
Continuing operations
69 
(24)
(42)
(141)
Discontinued operations
0 
(22)
(4)
(44)
Net income (loss) attributable to common stockholders
340 
(279)
1,102 
(5,615)
Other comprehensive income (loss)
13 
12 
105 
27 
Total comprehensive income (loss)
$ 353 
$ (267)
$ 1,207 
$ (5,588)
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flow from operating activities:
 
 
Net cash provided by operating activities
$ 3,018 
$ 2,594 
Cash flow from investing activities:
 
 
Capital expenditures
(1,020)
(2,309)
Intercompany loans
0 
0 
Dividends from (investments in) consolidated subsidiaries
0 
0 
Asset sales and other, net
46 
1,415 
Net cash used in investing activities
(974)
(894)
Cash flow from financing activities:
 
 
Proceeds from debt
795 
3,463 
Repayments of debt
(1,991)
(4,539)
Intercompany loans
0 
0 
Proceeds from Issuance of Common Stock
0 
442 
Cash dividends paid and contributions received, net
(69)
(92)
Other, net
(22)
(22)
Net cash used in financing activities
(1,287)
(748)
Net (decrease) increase in cash and cash equivalents
757 
952 
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale
(45)
(43)
Cash and cash equivalents at beginning of year
4,245 
177 
Cash and cash equivalents at end of period
4,957 
1,086 
Eliminations [Member]
 
 
Cash flow from operating activities:
 
 
Net cash provided by operating activities
0 
1 
Cash flow from investing activities:
 
 
Capital expenditures
0 
2 
Intercompany loans
609 
1,539 
Dividends from (investments in) consolidated subsidiaries
(1,834)
(1,726)
Asset sales and other, net
0 
(3)
Net cash used in investing activities
(1,225)
(188)
Cash flow from financing activities:
 
 
Proceeds from debt
0 
0 
Repayments of debt
0 
0 
Intercompany loans
(609)
(1,539)
Proceeds from Issuance of Common Stock
 
(374)
Cash dividends paid and contributions received, net
1,772 
2,087 
Other, net
62 
13 
Net cash used in financing activities
1,225 
187 
Net (decrease) increase in cash and cash equivalents
0 
0 
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale
0 
0 
Cash and cash equivalents at beginning of year
0 
0 
Cash and cash equivalents at end of period
0 
0 
Reportable Legal Entities [Member] |
FCX Issuer [Member]
 
 
Cash flow from operating activities:
 
 
Net cash provided by operating activities
(222)
(264)
Cash flow from investing activities:
 
 
Capital expenditures
0 
0 
Intercompany loans
(609)
(1,021)
Dividends from (investments in) consolidated subsidiaries
1,757 
1,643 
Asset sales and other, net
0 
0 
Net cash used in investing activities
1,148 
622 
Cash flow from financing activities:
 
 
Proceeds from debt
0 
1,721 
Repayments of debt
(915)
(2,498)
Intercompany loans
0 
0 
Proceeds from Issuance of Common Stock
 
442 
Cash dividends paid and contributions received, net
(2)
(5)
Other, net
(9)
(18)
Net cash used in financing activities
(926)
(358)
Net (decrease) increase in cash and cash equivalents
0 
0 
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale
0 
0 
Cash and cash equivalents at beginning of year
0 
0 
Cash and cash equivalents at end of period
0 
0 
Reportable Legal Entities [Member] |
Guarantor Subsidiaries [Member]
 
 
Cash flow from operating activities:
 
 
Net cash provided by operating activities
(383)
(294)
Cash flow from investing activities:
 
 
Capital expenditures
(24)
(497)
Intercompany loans
0 
(518)
Dividends from (investments in) consolidated subsidiaries
(16)
(41)
Asset sales and other, net
58 
208 
Net cash used in investing activities
18 
(848)
Cash flow from financing activities:
 
 
Proceeds from debt
0 
0 
Repayments of debt
(139)
0 
Intercompany loans
512 
1,223 
Proceeds from Issuance of Common Stock
 
0 
Cash dividends paid and contributions received, net
0 
(78)
Other, net
(11)
(2)
Net cash used in financing activities
362 
1,143 
Net (decrease) increase in cash and cash equivalents
(3)
1 
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale
0 
0 
Cash and cash equivalents at beginning of year
3 
0 
Cash and cash equivalents at end of period
0 
1 
Reportable Legal Entities [Member] |
Non-Guarantor Subsidiaries [Member]
 
 
Cash flow from operating activities:
 
 
Net cash provided by operating activities
3,623 
3,151 
Cash flow from investing activities:
 
 
Capital expenditures
(996)
(1,814)
Intercompany loans
0 
0 
Dividends from (investments in) consolidated subsidiaries
93 
124 
Asset sales and other, net
(12)
1,210 
Net cash used in investing activities
(915)
(480)
Cash flow from financing activities:
 
 
Proceeds from debt
795 
1,742 
Repayments of debt
(937)
(2,041)
Intercompany loans
97 
316 
Proceeds from Issuance of Common Stock
 
374 
Cash dividends paid and contributions received, net
(1,839)
(2,096)
Other, net
(64)
(15)
Net cash used in financing activities
(1,948)
(1,720)
Net (decrease) increase in cash and cash equivalents
760 
951 
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale
(45)
(43)
Cash and cash equivalents at beginning of year
4,242 
177 
Cash and cash equivalents at end of period
$ 4,957 
$ 1,085