FREEPORT-MCMORAN INC, 10-Q filed on 11/6/2019
Quarterly Report
v3.19.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2019
Oct. 31, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2019  
Document Transition Report false  
Entity File Number 001-11307-01  
Entity Registrant Name Freeport-McMoRan Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 74-2480931  
Entity Address, Address Line One 333 North Central Avenue  
Entity Address, City or Town Phoenix  
Entity Address, State or Province AZ  
Entity Address, Postal Zip Code 85004-2189  
City Area Code (602)  
Local Phone Number 366-8100  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol FCX  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,450,913,690
Entity Central Index Key 0000831259  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.19.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 2,247 $ 4,217
Trade accounts receivable 731 829
Income and other tax receivables 263 493
Inventories:    
Total materials and supplies, net 1,619 1,528
Mill and leach stockpiles 1,302 1,453
Product 1,513 1,778
Other current assets 672 422
Total current assets 8,347 10,720
Property, plant, equipment and mine development costs, net 29,330 28,010
Long-term mill and leach stockpiles 1,300 1,314
Other assets 1,966 2,172
Total assets 40,943 42,216
Current liabilities:    
Accounts payable and accrued liabilities 2,755 2,625
Accrued income taxes 61 165
Current portion of environmental and asset retirement obligations 488 449
Dividends Payable, Current 73 73
Current portion of debt 4 17
Total current liabilities 3,381 3,329
Long-term debt, less current portion 9,915 11,124
Deferred income taxes 4,245 4,032
Environmental and asset retirement obligations, less current portion 3,558 3,609
Other liabilities 2,302 2,230
Total liabilities 23,401 24,324
Stockholders’ equity:    
Common stock 158 158
Capital in excess of par value 25,880 26,013
Accumulated deficit (12,289) (12,041)
Accumulated other comprehensive loss (570) (605)
Common stock held in treasury (3,735) (3,727)
Total stockholders’ equity 9,444 9,798
Noncontrolling interests 8,098 8,094
Total equity 17,542 17,892
Total liabilities and equity $ 40,943 $ 42,216
v3.19.3
Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenues $ 3,153 $ 4,908 $ 10,491 $ 14,944
Cost of sales:        
Production and delivery 2,665 3,069 8,584 8,790
Depreciation, depletion and amortization 322 458 1,021 1,351
Metals inventory adjustments 41 0 100 2
Total cost of sales 3,028 3,527 9,705 10,143
Selling, general and administrative expenses 106 101 315 341
Mining exploration and research expenses 25 27 83 72
Environmental obligations and shutdown costs 20 8 85 76
Net loss (gain) on sales of assets 12 (70) (13) (126)
Total costs and expenses 3,191 3,593 10,175 10,506
Operating (loss) income (38) 1,315 316 4,438
Interest expense, net (123) (143) (401) (436)
Net (loss) gain on early extinguishment of debt (21) 0 (27) 8
Other income, net 33 14 52 63
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (149) 1,186 (60) 4,073
Provision for income taxes (91) (522) (181) (1,543)
Equity in affiliated companies’ net earnings 5 4 7 5
Net (loss) income from continuing operations (235) 668 (234) 2,535
Net income (loss) from discontinued operations 1 (4) 2 (19)
Net income (234) 664 (232) 2,516
Net (income) loss attributable to noncontrolling interests:        
Continuing operations 27 (108) (16) (399)
Net (loss) income attributable to common stockholders $ (207) $ 556 $ (248) $ 2,117
Earnings Per Share, Basic and Diluted [Abstract]        
Continuing operations (in dollars per share) $ (0.15) $ 0.38 $ (0.17) $ 1.47
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, basic (in dollars per share) (0.15) 0.38 (0.17) 1.46
Continuing operations (in dollars per share) (0.15) 0.38 (0.17) 1.46
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, diluted (in dollars per share) $ (0.15) $ 0.38 $ (0.17) $ 1.45
Basic weighted-average shares of common stock outstanding 1,452 1,450 1,451 1,449
Diluted weighted-average shares of common shares outstanding 1,452 1,458 1,451 1,458
Dividends declared per share of common stock (in dollars per share) $ 0.05 $ 0.05 $ 0.15 $ 0.15
v3.19.3
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (234) $ 664 $ (232) $ 2,516
Defined benefit plans:        
Amortization of unrecognized amounts included in net periodic benefit costs 11 13 35 36
Foreign exchange losses 0 (1) 0 (2)
Other comprehensive income 11 12 35 34
Total comprehensive (loss) income (223) 676 (197) 2,550
Total comprehensive loss (income) attributable to noncontrolling interests 28 (109) (16) (399)
Total comprehensive income (loss) $ (195) $ 567 $ (213) $ 2,151
v3.19.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flow from operating activities:    
Net (loss) income $ (232) $ 2,516
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation, depletion and amortization 1,021 1,351
Metals inventory adjustments 100 2
Stock-based compensation 52 70
Net charges for environmental and asset retirement obligations, including accretion 160 206
Payments for environmental and asset retirement obligations (164) (179)
Net charges for defined pension and postretirement plans 79 59
Pension plan contributions (58) (60)
Net loss (gain) on early extinguishment of debt 27 (8)
Deferred income taxes 71 202
(Income) loss on disposal of discontinued operations (2) 19
Dividends received from PT Smelting   0
Change in long-term mill and leach stockpiles (5) 54
Gain (Loss) on Disposition of Assets 13 126
Other, net 22 5
Changes in working capital and other tax payments:    
Accounts receivable 210 321
Inventories 229 (326)
Other current assets 15 (16)
Accounts payable and accrued liabilities (45) (2)
Accrued income taxes and timing of other tax payments (285) (131)
Net cash provided by operating activities 1,312 3,925
Cash flow from investing activities:    
Capital expenditures (1,917) (1,391)
Proceeds from Sale of Other Assets, Investing Activities 102 10
Intangible water rights and other, net (10) (91)
Net cash used in investing activities (1,825) (1,472)
Cash flow from financing activities:    
Proceeds from debt 1,681 475
Repayments of debt (2,917) (2,410)
Cash dividends and distributions paid:    
Common stock (218) (145)
Noncontrolling interests (79) (241)
Contributions from noncontrolling interests 133 0
Stock-based awards net (payments) proceeds (7) 4
Debt financing costs and other, net (23) (23)
Net cash used in financing activities (1,430) (2,340)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect (1,943) 113
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 4,455 4,710
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 2,512 4,823
North America Copper Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (641) (413)
South America Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (176) (188)
Grasberg Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (992) (695)
Molybdenum [Member]    
Cash flow from investing activities:    
Capital expenditures (11) (6)
Other Segments [Member]    
Cash flow from investing activities:    
Capital expenditures (97) (89)
Surface Water Taxes, Papua, Indonesia    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Charges for Cerro Verde royalty dispute 28 0
PT Freeport Indonesia Export Duty Dispute [Member]    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Charges for Cerro Verde royalty dispute 155 0
Cerro Verde Royalty Dispute    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Charges for Cerro Verde royalty dispute 40 0
Payments for Cerro Verde royalty dispute (126) $ (32)
PT Smelting    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Dividends received from PT Smelting $ 33  
v3.19.3
Consolidated Statement of Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in Excess of Par Value
Accumulated Deficit
AOCI Attributable to Parent [Member]
Common Stock Held in Treasury
Total Stockholder's Equity
Noncontrolling Interests
Contributions from noncontrolling interest $ 0              
Balance (in shares) at Dec. 31, 2017   1,578       130    
Balance at Dec. 31, 2017 11,296 $ 158 $ 26,751 $ (14,722) $ (487) $ (3,723) $ 7,977 $ 3,319
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards (in shares)   1            
Exercised and issued stock-based awards 8   8       8  
Stock-based compensation, including the tender of shares 59   62     $ (3) 59  
Dividends (459)   (218)       (218) (241)
Net loss attributable to common stockholders 2,117     2,117     2,117  
Net income (loss) attributable to noncontrolling interests 399             399
Other comprehensive income 34       34   34 0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 2,550              
Balance (in shares) at Sep. 30, 2018   1,579       130    
Balance at Sep. 30, 2018 13,454 $ 158 26,603 (12,526) (532) $ (3,726) 9,977 3,477
Balance (in shares) at Jun. 30, 2018   1,579       130    
Balance at Jun. 30, 2018 12,842 $ 158 26,667 (13,161) (464) $ (3,726) 9,474 3,368
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock-based compensation, including the tender of shares 9   9       9  
Dividends (73)   (73)       (73) 0
Net loss attributable to common stockholders 556     556     556  
Net income (loss) attributable to noncontrolling interests 108             108
Other comprehensive income 12       11   11 1
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 676              
Balance (in shares) at Sep. 30, 2018   1,579       130    
Balance at Sep. 30, 2018 13,454 $ 158 26,603 (12,526) (532) $ (3,726) 9,977 3,477
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cumulative Effect of New Accounting Principle in Period of Adoption       79 (79)      
Contributions from noncontrolling interest 133   65       65 68
Balance (in shares) at Dec. 31, 2018   1,579       130    
Balance at Dec. 31, 2018 17,892 $ 158 26,013 (12,041) (605) $ (3,727) 9,798 8,094
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards (in shares)   3            
Exercised and issued stock-based awards 1 $ 0 1 0 0 0 1 0
Stock-based compensation, including the tender of shares 35 0 42 0 0 $ (8) 34 1
Stock-based compensation, including the tender of shares (in shares)           1    
Dividends (288)   (218) 0   $ 0 (218) (70)
Adjustments to Additional Paid in Capital, Other (22)   (22)       (22)  
Net loss attributable to common stockholders (248) $ 0   (248)   $ 0 (248)  
Noncontrolling Interest, Change in Redemption Value     0 0 0      
Tender of shares for stock based awards shares   0       0    
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net     0   0      
Net income (loss) attributable to noncontrolling interests 16 $ 0       $ 0   16
Other comprehensive income 35 $ 0 0   35   35 0
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest (197)     0        
Balance (in shares) at Sep. 30, 2019   1,582       131    
Balance at Sep. 30, 2019 17,542 $ 158 25,880 (12,289) (570) $ (3,735) 9,444 8,098
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Noncontrolling Interest, Period Increase (Decrease) (12)   (1)       (1) (11)
Contributions from noncontrolling interest 33   16       16 17
Balance (in shares) at Jun. 30, 2019   1,582       131    
Balance at Jun. 30, 2019 17,817 $ 158 25,949 (12,082) (582) $ (3,734) 9,709 8,108
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock-based compensation, including the tender of shares 9   9     $ (1) 8 1
Dividends (72)   (72)       (72)  
Adjustments to Additional Paid in Capital, Other (22)   (22)       (22)  
Net loss attributable to common stockholders (207)     (207)     (207)  
Net income (loss) attributable to noncontrolling interests (27)             (27)
Other comprehensive income 11       12   12 (1)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest (223)              
Balance (in shares) at Sep. 30, 2019   1,582       131    
Balance at Sep. 30, 2019 $ 17,542 $ 158 $ 25,880 $ (12,289) $ (570) $ (3,735) $ 9,444 $ 8,098
v3.19.3
General Information (Unaudited)
 9 Months Ended
Sep. 30, 2019
General Information [Abstract]  
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, 2018 (2018 Form 10-K). 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. All such adjustments are, in the opinion of management, of a normal recurring nature, except for the adjustment discussed in Note 12. Operating results for the nine-month period ended September 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

Property, Plant, Equipment and Mine Development Costs. The following is an update to FCX’s property, plant, equipment and mine development costs accounting policy included in Note 1 of its 2018 Form 10-K. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. For underground mines certain costs related to panel development, such as undercutting and drawpoint development, are also capitalized as mine development costs until production reaches design capacity for the mine. After reaching design capacity, the mine transitions to the production phase and panel development costs are allocated to inventory and then included as a component of cost of goods sold.

Attribution of PT Freeport Indonesia (PT-FI) Net Income or Loss. FCX has concluded that the attribution of PT-FI’s net income or loss from the date of the divestment transaction (i.e., December 21, 2018) through December 31, 2022 (the Initial Period), should be based on the economics replacement agreement, which provides for FCX and the other pre-transaction PT-FI shareholders (i.e., PT Indonesia Asahan Aluminium (Persero) (PT Inalum) and PT Indonesia Papua Metal Dan Mineral (PTI)) to retain the economics of the revenue and cost sharing arrangements under PT-FI’s joint venture formerly with Rio Tinto Plc (refer to Note 2 of FCX’s 2018 Form 10-K). The economics replacement agreement entitles FCX to approximately 81 percent of PT-FI dividends paid during the Initial Period, with the remaining 19 percent paid to the noncontrolling interests. PT-FI’s net loss in third-quarter 2019 totaled $24 million, of which $20 million was attributed to FCX, and for the first nine months of 2019 totaled $28 million, of which $23 million was attributed to FCX. PT-FI’s cumulative net loss since the December 21, 2018, transaction date through September 30, 2019, totaled $164 million, of which $133 million was attributed to FCX.

The above-described attribution of PT-FI’s net income or loss applies only through the Initial Period. Beginning January 1, 2023, the attribution of PT-FI’s net income or loss will be based on equity ownership percentages (48.76 percent for FCX, 26.24 percent for PT Inalum and 25.00 percent for PTI). For all of its other partially owned consolidated subsidiaries, FCX attributes net income or loss based on equity ownership percentages.

Agreement to Sell a Portion of Cobalt Business. In second-quarter 2019, FCX entered into an agreement to sell its cobalt refinery in Kokkola, Finland, and related cobalt cathode precursor business (consisting of approximately $201 million of assets and $76 million of liabilities at September 30, 2019) for total consideration of approximately $150 million, plus working capital at the time of closing. FCX and the current noncontrolling interest partners in Freeport Cobalt will retain the remaining cobalt business, which is a producer of cobalt fine powders, chemicals, catalysts, ceramics and pigments. The transaction is expected to close by year-end 2019. Lundin Mining Corporation, which is one of the noncontrolling interest partners, is entitled to receive 30 percent of the proceeds from this transaction. In addition to customary closing conditions, including regulatory approvals, prior to completing the transaction, Freeport Cobalt is required to be segregated into two separate businesses.
v3.19.3
Earnings per Share (Unaudited) Earnings per Share (Notes)
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE

FCX calculates its basic net (loss) income per share of common stock under the two-class method and calculates its diluted net (loss) income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net (loss) income per share of common stock was computed by dividing net (loss) income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net (loss) income 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 (loss) income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net (loss) income per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
Net (loss) income from continuing operations
$
(235
)
 
$
668

 
$
(234
)
 
$
2,535

 
Net loss (income) from continuing operations attributable to noncontrolling interests
27

 
(108
)
 
(16
)
 
(399
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(4
)
 
(3
)
 
(5
)
 
Net (loss) income from continuing operations attributable to common stockholders
(211
)
 
556

 
(253
)
 
2,131

 
 
 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations attributable to common stockholders
1

 
(4
)
 
2

 
(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(210
)
 
$
552

 
$
(251
)
 
$
2,112

 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,452

 
1,450

 
1,451

 
1,449

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)
—

a 
8

 
—

a 
9

a 
Diluted weighted-average shares of common stock outstanding
1,452

 
1,458

 
1,451

 
1,458

 
 
 
 
 
 
 
 
 
 
Basic net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.47

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.46

 
Diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.46

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.45

 

a.
Excludes approximately 10 million shares of common stock in third-quarter 2019, 11 million for the first nine months of 2019 and 2 million for the first nine months of 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs 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 (loss) income per share of common stock. Stock options for 43 million shares of common stock in third-quarter 2019, 38 million shares in third-quarter 2018, 42 million shares for the first nine months of 2019 and 35 million shares for the first nine months of 2018 were excluded.
v3.19.3
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited)
 9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
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,
2019
 
December 31, 2018
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,619

 
$
1,528

 
 
 
 
 
 
Mill stockpiles
$
200

 
$
282

 
Leach stockpiles
1,102

 
1,171

 
Total current mill and leach stockpiles
$
1,302

 
$
1,453

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
292

 
$
260

 
Work-in-process
79

 
192

 
Finished goods
1,142

 
1,326

 
Total product
$
1,513

 
$
1,778

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
223

 
$
265

 
Leach stockpiles
1,077

 
1,049

 
Total long-term mill and leach stockpilesb
$
1,300

 
$
1,314

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $26 million at September 30, 2019, and $24 million at December 31, 2018.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.

FCX recorded charges of $41 million in third-quarter 2019, primarily for copper inventories, and $100 million for the first nine months of 2019, primarily for cobalt inventories ($58 million) and copper inventories ($41 million), to adjust metals inventory carrying values to net realizable value because of lower market prices (refer to Note 9 for metals inventory adjustments by business segment).
v3.19.3
Income Taxes (Unaudited)
 9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES

Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate. Geographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
2018
 
U.S. operations
$
73

a 
$
2

 
International operations
(254
)
 
(1,545
)
 
Total
$
(181
)
b 
$
(1,543
)
 

a.
Includes tax credits totaling $24 million primarily associated with state law changes and settlement of state income tax examinations.
b.
Includes net tax charges totaling $49 million primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
FCX’s consolidated effective income tax rate was 302 percent for the first nine months of 2019 and was 38 percent for the first nine months of 2018. FCX's consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which FCX operates. Because FCX's U.S. jurisdiction generated net losses in the first nine months of 2019 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses.
v3.19.3
Debt and Equity
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt and Equity DEBT AND EQUITY

The components of debt follow (in millions):
 
 
September 30,
2019
 
December 31, 2018
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,600

 
$
9,594

Issued by Freeport Minerals Corporation (FMC)
 
357

 
358

Cerro Verde credit facility
 
825

 
1,023

Other
 
137

 
166

Total debt
 
9,919

 
11,141

Less current portion of debt
 
(4
)
 
(17
)
Long-term debt
 
$
9,915

 
$
11,124



Revolving Credit Facility. At September 30, 2019, FCX had no borrowings outstanding and $13 million in letters of credit issued under its 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.
 
On May 2, 2019, FCX’s $3.5 billion revolving credit facility was amended to extend $3.26 billion of the facility by one year to April 20, 2024. The remaining $240 million matures on April 20, 2023. In addition, the revolving credit facility was amended to modify the calculation of the total debt component used to determine the total leverage ratio by increasing the amount of unrestricted cash that may be applied to reduce the amount of total debt. There were no other substantive modifications to the revolving credit facility.

Senior Notes.  On March 27, 2019, FCX redeemed all of its outstanding $1.0 billion aggregate principal amount of 3.100% Senior Notes due 2020. Holders of these senior notes received the principal amount together with the redemption premium and accrued and unpaid interest up to the redemption date. As a result of this redemption, FCX recorded a loss on early extinguishment of debt totaling $5 million in first-quarter 2019.

On August 15, 2019, FCX completed the sale of $600 million of 5.00% Senior Notes due 2027 and $600 million of 5.25% Senior Notes due 2029 for total net proceeds of $1.187 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used the net proceeds from this offering to fund the make-whole redemption of all of its outstanding 6.875% Senior Notes due 2023, and the concurrent tender offers to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. As a result of these transactions, FCX recorded a loss on early extinguishment of debt totaling $21 million in third-quarter 2019 as follows (in millions):
 
 
 
 
 
 
 
 
 
 
 
Principal Amount
 
Net Adjustments
 
Book Value
 
Redemption/Tender Value
 
Loss
FCX 6.875% Senior Notes due 2023
$
728

 
$
34

 
$
762

 
$
768

 
$
6

FCX 4.00% Senior Notes due 2021
405

 
(2
)
 
403

 
418

 
15

FCX 3.55% Senior Notes due 2022
12

 
—

 
12

 
12

 
—

 
$
1,145

 
$
32

 
$
1,177

 
$
1,198

 
$
21



Cerro Verde Credit Facility.  In March 2019, Cerro Verde prepaid $200 million on its credit facility, which resulted in a $1 million loss on early extinguishment of debt in first-quarter 2019.

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $163 million in third-quarter 2019, $167 million in third-quarter 2018, $508 million for the first nine months of 2019 and $508 million for the first nine months of 2018. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $40 million in third-quarter 2019, $24 million in third-quarter 2018, $107 million for the first nine months of 2019 and $72 million for the first nine months of 2018.

Common Stock.  On September 25, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which was paid on November 1, 2019, to common stockholders of record as of October 15, 2019.
v3.19.3
Financial Instruments (Unaudited)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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, 2019, and December 31, 2018, 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, 2019 and 2018. At September 30, 2019, FCX held copper futures and swap contracts that qualified for hedge accounting for 72 million pounds at an average contract price of $2.66 per pound, with maturities through August 2021.

A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized (losses) gains:
 
 
 
 
 
 
 
Derivative financial instruments
$
(2
)
 
$
7

 
$
3

 
$
(12
)
Hedged item – firm sales commitments
2

 
(7
)
 
(3
)
 
12

 
 
 
 
 
 
 
 
Realized losses:
 
 
 
 
 
 
 
Matured derivative financial instruments
(8
)
 
(19
)
 
(9
)
 
(17
)


Derivatives Not Designated as Hedging Instruments
Embedded Derivatives. Certain FCX 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 (LBMA) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the LBMA gold prices as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price, and the LBMA gold price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted LBMA gold prices, until the date of final pricing. Similarly, FCX purchases copper and cobalt under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.
A summary of FCX’s embedded derivatives at September 30, 2019, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
424

 
$
2.63

 
$
2.59

 
February 2020
Gold (thousands of ounces)
150

 
1,510

 
1,491

 
November 2019
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
97

 
2.63

 
2.59

 
January 2020
Cobalt (millions of pounds)
6

 
9.81

 
12.18

 
December 2019


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, 2019, Atlantic Copper held net copper forward purchase contracts for 1 million pounds at an average contract price of $2.65 per pound, with maturities through November 2019.

Summary of (Losses) Gains. A summary of the realized and unrealized (losses) gains recognized in operating income 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,
 
2019
 
2018
 
2019
 
2018
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
(57
)
 
$
(93
)
 
$
(57
)
 
$
(242
)
Gold and other metals
6

 
(25
)
 
17

 
(37
)
Copper forward contractsb
—

 
9

 
(3
)
 
17

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,
2019
 
December 31, 2018
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
—

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
6

 
23

Total derivative assets
 
$
6

 
$
23

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
6

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
36

 
39

Total derivative liabilities
 
$
42

 
$
48



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 contract 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,
2019
 
December 31, 2018
 
September 30,
2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
6

 
$
23

 
$
36

 
$
39

Copper derivatives
 
—

 
—

 
6

 
9

 
 
6

 
23

 
42

 
48

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

 
7

 
1

 
7

Copper derivatives
 
—

 
—

 
—

 
—

 
 
1

 
7

 
1

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
5

 
16

 
35

 
32

Copper derivatives
 
—

 
—

 
6

 
9

 
 
$
5

 
$
16

 
$
41

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
—

 
$
3

 
$
17

 
$
24

Accounts payable and accrued liabilities
 
5

 
13

 
24

 
17

 
 
$
5

 
$
16

 
$
41

 
$
41



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, 2019, the maximum amount of credit exposure associated with derivative transactions was $5 million.

Other Financial Instruments.  Other financial instruments include cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $1.3 billion at September 30, 2019, and $2.3 billion at December 31, 2018), restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of September 30, 2019, FCX has contingent consideration assets related to the 2016 asset sales of TF Holdings Limited (TFHL), onshore California oil and gas properties and Deepwater Gulf of Mexico (GOM) oil and gas properties (refer to Note 7 for the related fair values and to Note 2 of FCX’s 2018 Form 10-K for further discussion of these instruments).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):
 
 
September 30,
2019
 
December 31, 2018
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
2,247

 
$
4,217

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
100

 
110

Other assets
 
165

 
128

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
2,512

 
$
4,455
v3.19.3
Fair Value Measurement
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
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 did not have any significant transfers in or out of Level 3 during third-quarter 2019.

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 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 (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):
 
At September 30, 2019
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
27

 
$
27

 
$
27

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
31

 
31

 
27

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
59

 
59

 
59

 
—

 
—

 
—

Government mortgage-backed securities
41

 
41

 
—

 
—

 
41

 
—

Government bonds and notes
38

 
38

 
—

 
—

 
38

 
—

Corporate bonds
35

 
35

 
—

 
—

 
35

 
—

Asset-backed securities
12

 
12

 
—

 
—

 
12

 
—

Collateralized mortgage-backed securities
6

 
6

 
—

 
—

 
6

 
—

Money market funds
4

 
4

 
—

 
4

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
196

 
196

 
59

 
4

 
133

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
6

 
6

 
—

 
—

 
6

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
  and onshore California oil and gas propertiesa
67

 
67

 
—

 
—

 
67

 
—

       Total
$
73

 
$
73

 
$
—

 
$
—

 
$
73

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
128

 
110

 
—

 
—

 
—

 
110

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
36

 
$
36

 
$
—

 
$
—

 
$
36

 
$
—

Copper futures and swap contracts
6

 
6

 
—

 
5

 
1

 
—

Total
42

 
42

 
—

 
5

 
37

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,919

 
9,872

 
—

 
—

 
9,872

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
At December 31, 2018
 
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

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
29

 
29

 
25

 
4

 
—

 
—

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

 
55

 
55

 
—

 
—

 
—

Government mortgage-backed securities
38

 
38

 
—

 
—

 
38

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
28

 
28

 
—

 
—

 
28

 
—

Asset-backed securities
11

 
11

 
—

 
—

 
11

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
5

 
5

 
—

 
5

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
181

 
181

 
55

 
5

 
121

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
23

 
23

 
—

 
—

 
23

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
73

 
73

 
—

 
—

 
73

 
—

Total
96

 
96

 
—

 
—

 
96

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
143

 
127

 
—

 
—

 
—

 
127

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
39

 
$
39

 
$
—

 
$
—

 
$
39

 
$
—

Copper futures and swap contracts
9

 
9

 
—

 
7

 
2

 
—

Total
48

 
48

 
—

 
7

 
41

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
11,141

 
10,238

 
—

 
—

 
10,238

 
—

 
 
 
 
 
 
 
 
 
 
 
 

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 $100 million at September 30, 2019, and $109 million at December 31, 2018, and (ii) other assets of $164 million at September 30, 2019, and $126 million at December 31, 2018, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter in Indonesia and PT-FI’s closure and reclamation guarantees.
c.
Refer to Note 6 for further discussion and balance sheet classifications.
d.
Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

Valuation Techniques. The U.S. core fixed income fund is valued at 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).

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.

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

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted LBMA gold prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. FCX’s embedded derivatives on provisional cobalt purchases are valued using quoted monthly LME cobalt forward prices or average published Metals Bulletin cobalt prices subject to certain adjustments as specified by the terms of the contracts, at each reporting date based on the month of maturity. 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 6 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.

As reported in Note 2 of FCX’s 2018 Form 10-K, in November 2016, FCX’s sale of its interest in TFHL included 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 the 24-month period beginning January 1, 2018. The fair value of the contingent consideration derivative associated with the sale of TFHL was $59 million at September 30, 2019 (included in other current assets in the consolidated balance sheet), and $57 million at December 31, 2018 (included in other assets). Future changes in the fair value of this contingent consideration derivative will continue to be recorded in discontinued operations. Also in 2016, FCX’s sale of its onshore California oil and gas properties included contingent consideration of up to $150 million, consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. The fair value of the contingent consideration derivative (included in other assets in the consolidated balance sheets) associated with the sale of the onshore California oil and gas properties was $8 million at September 30, 2019, and $16 million at December 31, 2018. Future changes in the fair value of this contingent consideration derivative will continue to be recorded in operating income. Also, contingent consideration of $50 million associated with the onshore California oil and gas properties was realized in 2018 and collected in first-quarter 2019 (included in proceeds from sales of oil and gas properties in the consolidated statements of cash flows) because the average Brent crude oil price exceeded $70 per barrel for 2018 and was included in other current assets in the consolidated balance sheet at December 31, 2018. These fair values were 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.

As reported in Note 2 of FCX’s 2018 Form 10-K, in December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration will be received over time as future cash flows are realized in connection with a third-party production handling agreement for an offshore platform. The first collection occurred in third-quarter 2018. The contingent consideration included in (i) other current assets totaled $18 million at September 30, 2019, and $27 million at December 31, 2018, and (ii) other assets totaled $110 million at September 30, 2019, and $116 million at December 31, 2018. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and 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.

Long-term debt, including current portion, is primarily 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 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, 2019, as compared with those techniques used at December 31, 2018.

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 2019 follows (in millions):
Fair value at January 1, 2019
$
127

 
Net unrealized loss related to assets still held at the end of the period
(1
)
 
Settlements
(16
)
 
Fair value at September 30, 2019
$
110

 
v3.19.3
Contingencies and Commitments (Unaudited)
 9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies CONTINGENCIES AND COMMITMENTS

Litigation
Louisiana Parishes Coastal Erosion Cases. In September 2019, affiliates of FCX reached an agreement in principle to settle all 13 cases filed in Louisiana state courts by six south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Vermilion) and the parties that have intervened in the litigation, including the state of Louisiana, through the Attorney General and separately through the Louisiana Department of Natural Resources in support of the parishes’ claims, alleging that certain oil and gas exploration and production operations and sulphur mining and production operations of the FCX affiliates damaged coastal wetlands and caused significant land loss along the Louisiana coast.

The maximum out-of-pocket settlement payment will be $23.5 million with the initial payment of $15 million to be paid upon execution of the settlement agreement. The initial payment will be held in trust and later deposited into a newly formed Coastal Zone Recovery Fund (the Fund) once the state of Louisiana passes enabling legislation to establish the Fund. The settlement agreement will also require the FCX affiliates to pay into the Fund twenty annual installments of $4.25 million beginning in 2023 provided the state of Louisiana passes the enabling legislation. The first two of those annual installments are conditioned only on the enactment of the enabling legislation within three years of execution of the settlement agreement, but all subsequent installments are also conditioned on the FCX affiliates receiving simultaneous reimbursement on a dollar-for-dollar basis from the proceeds of environmental credit sales generated by the Fund, resulting in the $23.5 million maximum total payment obligation. The settlement agreement is currently expected to be executed during fourth-quarter 2019 and will need to be executed by all parties, including authorized representatives of the six south Louisiana parishes originally plaintiffs in the suit and certain other non-plaintiff Louisiana parishes and the state of Louisiana. Upon execution of the settlement agreement, the FCX affiliates will be fully released and dismissed from all 13 pending cases. The agreement in principle does not include any admission of liability by FCX or its affiliates. FCX recorded a charge in third-quarter 2019 for the initial payment of $15 million, which will be paid upon execution of the settlement agreement.

There were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s 2018 Form 10-K, other than the asbestos and talc claims matter below, which was updated in Note 8 of FCX’s quarterly report on Form 10-Q for the quarters ended March 31, 2019, and June 30, 2019, and below.

Asbestos and Talc Claims. As previously disclosed, there has been a significant increase in the number of cases alleging the presence of asbestos contamination in talc-based personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among those targets. Cyprus Mines was engaged in talc mining from 1964 until 1992 when it exited its talc business by conveying it to a third party in two related transactions. Those transactions involved (i) a transfer by Cyprus Mines of the assets of its talc business to a newly formed subsidiary that assumed all pre-sale and post-sale talc liabilities, subject to limited reservations, and (ii) a sale of the
stock of that subsidiary to the third party. In 2011, the third party sold that subsidiary to Imerys Talc America (Imerys), an affiliate of Imerys S.A.

Cyprus Mines has contractual indemnification rights, subject to limited reservations, against Imerys, which has historically acknowledged those indemnification obligations, and had taken responsibility for all cases tendered to it. However, on February 13, 2019, Imerys filed for Chapter 11 bankruptcy protection, which triggered an immediate automatic stay under the federal bankruptcy code prohibiting any party from continuing or initiating litigation or asserting new claims against Imerys. As a result, Imerys is no longer defending the talc lawsuits against Cyprus Mines and CAMC. In addition, Imerys has taken the position that it alone owns, and has the sole right to access, the proceeds of the legacy insurance coverage of Cyprus Mines and CAMC for talc liabilities. In late March 2019, Cyprus Mines and CAMC challenged this position and obtained emergency relief from the bankruptcy court to gain access to the insurance until the question of ownership and contractual access can be decided in an adversary proceeding before the bankruptcy court, which was previously scheduled for October 2019, but is being rescheduled for early 2020.

During first-quarter 2019, in a case pending at the time Imerys filed bankruptcy, a California jury entered a $29 million verdict against Johnson & Johnson and Cyprus Mines, of which approximately $2 million was attributed to Cyprus Mines. Taking advantage of the temporary access to the insurance authorized by the bankruptcy court, Cyprus Mines used the insurance to fully resolve the case. Cyprus Mines and the insurers also settled several other cases set for trial in recent months, and secured delays or dismissals in other cases. At September 30, 2019, Cyprus Mines had accrued approximately $5 million related to these cases. Multiple trials have been scheduled over the remainder of 2019 and the first half of 2020, and others may be scheduled prior to the adversary proceeding regarding the legacy insurance.

FCX believes that Cyprus Mines and CAMC each has strong defenses to legal liability and that both should have access to the legacy insurance to cover defense costs, settlements and judgments, at least until the bankruptcy court decides otherwise or the insurance is exhausted. At this time, FCX cannot estimate the range of possible loss associated with these proceedings, but it does not currently believe the amount of any such losses are material to its consolidated financial statements. However, there can be no assurance that future developments will not alter this conclusion.

Tax and Other Matters
As discussed in Note 12 of FCX’s 2018 Form 10-K, PT-FI received assessments from the local regional tax authorities in Papua, Indonesia, for additional taxes and penalties related to surface water taxes. In May 2019, PT-FI agreed to pay 1.394 trillion rupiah ($99 million based on the exchange rate at September 30, 2019), to settle historical disputes. In August 2019, PT-FI agreed to a revised payment schedule, paying 708.5 billion rupiah ($50 million) in October 2019, with the remaining 685.5 billion rupiah ($49 million based on the exchange rate at September 30, 2019) to be paid in February 2021. As a result of the May 2019 settlement, in second-quarter 2019, PT-FI recorded charges of $28 million to production and delivery costs ($69 million was previously accrued in 2018 for this matter). In accordance with PT-FI’s special mining license (IUPK), PT-FI is also obligated to pay surface water taxes of $15 million annually, beginning in 2019, which are recognized in production and delivery costs as incurred.

Refer to Note 12 for discussion of updates on PT-FI’s export duty matter and mine development cost tax matters.

On September 12, 2019, PT-FI received approval from the Indonesian government to increase its export quota from approximately 180,000 dry metric tons (DMT) of concentrate to approximately 680,000 DMT for the current export period, which expires March 8, 2020.

In March 2019, PT Smelting (PT-FI’s 25 percent-owned smelter and refinery in Indonesia) received an extension of its anode slimes export license through March 11, 2020.
v3.19.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Business Segment BUSINESS SEGMENTS
FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.
 
Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on sales from its mines to other segments, including Atlantic Copper Smelting & Refining, and on 25 percent of PT-FI’s sales to PT Smelting, until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.
FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following Financial Information by Business Segment reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

Product Revenues. FCX’s revenues attributable to the products it sold for the third quarters and first nine months of 2019 and 2018 follow (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Copper:
 
 
 
 
 
 
 
Concentrate
$
952

 
$
1,743

 
$
3,251

 
$
5,093

Cathode
878

 
1,015

 
2,696

 
3,383

Rod and other refined copper products
537

 
561

 
1,560

 
1,899

Purchased coppera
210

 
256

 
872

 
776

Gold
415

 
1,073

 
1,111

 
2,814

Molybdenum
295

 
286

 
910

 
882

Otherb
202

 
381

 
697

 
1,179

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(87
)
 
(162
)
 
(292
)
 
(433
)
Royalty expensec
(24
)
 
(75
)
 
(73
)
 
(217
)
Export dutiesd
(174
)
 
(52
)
 
(201
)
 
(153
)
Revenues from contracts with customers
3,204

 
5,026

 
10,531

 
15,223

Embedded derivativese
(51
)
 
(118
)
 
(40
)
 
(279
)
Total consolidated revenues
$
3,153

 
$
4,908

 
$
10,491

 
$
14,944

a.
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.
Primarily includes revenues associated with cobalt and silver.
c.
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d.
Reflects PT-FI export duties. The third quarter and first nine months of 2019 include charges totaling $166 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
e.
Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Financial Information by Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
61

 
$
19

 
$
80

 
$
504

 
$
117

 
$
621

 
$
488

a 
$
—

 
$
1,104

 
$
437

 
$
423

b 
$
3,153

Intersegment
462

 
598

 
1,060

 
65

 
—

 
65

 
—

 
90

 
8

 
—

 
(1,223
)
 
—

Production and delivery
377

 
519

 
896

 
417

 
111

 
528

 
399

 
85

 
1,111

 
421

 
(775
)
 
2,665

Depreciation, depletion and amortization
45

 
46

 
91

 
93

 
16

 
109

 
77

 
16

 
2

 
7

 
20

 
322

Metals inventory adjustments
1

 
37

 
38

 
2

 
—

 
2

 
—

 
1

 
—

 
—

 
—

 
41

Selling, general and administrative expenses
1

 
1

 
2

 
2

 
—

 
2

 
31

 
—

 
—

 
5

 
66

 
106

Mining exploration and research expenses
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
25

 
25

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20

 
20

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
12

 
12

Operating income (loss)
99

 
14

 
113

 
55

 
(10
)
 
45

 
(19
)
 
(12
)
 
(1
)
 
4

 
(168
)
 
(38
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
—

 
1

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
5

 
91

 
123

Provision for (benefit from) income taxes
—

 
—

 
—

 
29

 
4

 
33

 
(8
)
 
—

 
—

 
(1
)
 
67

 
91

Total assets at September 30, 2019
2,943

 
5,005

 
7,948

 
8,500

 
1,723

 
10,223

 
16,447

 
1,786

 
236

 
680

 
3,623

 
40,943

Capital expenditures
61

 
163

 
224

 
61

 
7

 
68

 
334

 
5

 
1

 
9

 
25

 
666

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
30

 
$
2

 
$
32

 
$
687

 
$
122

 
$
809

 
$
1,703

a 
$
—

 
$
1,212

 
$
579

 
$
573

b 
$
4,908

Intersegment
467

 
587

 
1,054

 
71

 
—

 
71

 
61

 
101

 
8

 
—

 
(1,295
)
 
—

Production and delivery
304

 
485

 
789

 
519

 
105

 
624

 
522

 
76

 
1,215

 
559

 
(716
)
 
3,069

Depreciation, depletion and amortization
43

 
45

 
88

 
122

 
20

 
142

 
181

 
20

 
3

 
6

 
18

 
458

Selling, general and administrative expenses
1

 
—

 
1

 
3

 
—

 
3

 
29

 
—

 
—

 
5

 
63

 
101

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
26

 
27

Environmental obligations and shutdown costs
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6

 
8

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(70
)
 
(70
)
Operating income (loss)
149

 
56

 
205

 
114

 
(3
)
 
111

 
1,032

 
5

 
2

 
9

 
(49
)
 
1,315

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
15

 
—

 
15

 
—

 
—

 
—

 
7

 
120

 
143

Provision for income taxes
—

 
—

 
—

 
37

 
5

 
42

 
424

 
—

 
—

 
—

 
56

 
522

Total assets at September 30, 2018
2,826

 
4,465

 
7,291

 
8,613

 
1,709

 
10,322

 
11,764

 
1,808

 
284

 
835

 
5,445

 
37,749

Capital expenditures
63

 
118

 
181

 
47

 
3

 
50

 
246

 
4

 
1

 
3

 
22

 
507

a.
Includes PT-FI's sales to PT Smelting totaling $475 million in third-quarter 2019 and $827 million in third-quarter 2018.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.


(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
 
Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
89

 
$
183

 
$
272

 
$
1,793

 
$
343

 
$
2,136

 
$
1,776

a 
$
—

 
$
3,403

 
$
1,554

 
$
1,350

b 
$
10,491

 
Intersegment
1,411

 
1,611

 
3,022

 
262

 
—

 
262

 
57

 
290

 
18

 
5

 
(3,654
)
 
—

 
Production and delivery
1,020

 
1,443

 
2,463

 
1,311

 
337

 
1,648

 
1,509

 
234

 
3,415

 
1,488

 
(2,173
)
 
8,584

 
Depreciation, depletion and amortization
128

 
133

 
261

 
294

 
48

 
342

 
281

 
50

 
7

 
21

 
59

 
1,021

 
Metals inventory adjustments
1

 
38

 
39

 
2

 
—

 
2

 
—

 
1

 
—

 
—

 
58

 
100

 
Selling, general and administrative expenses
2

 
2

 
4

 
6

 
—

 
6

 
91

 
—

 
—

 
15

 
199

 
315

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
82

 
83

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
85

 
85

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(13
)
 
(13
)
 
Operating income (loss)
349

 
177

 
526

 
442

 
(42
)
 
400

 
(48
)
 
5

 
(1
)
 
35

 
(601
)
 
316

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
1

 
3

 
79

 
—

 
79

 
2

 
—

 
—

 
17

 
300

 
401

 
Provision for (benefit from) income taxes
—

 
—

 
—

 
159

 
(10
)
 
149

 
(9
)
 
—

 
—

 
2

 
39

 
181

 
Capital expenditures
172

 
469

 
641

 
160

 
16

 
176

 
992

 
11

 
3

 
18

 
76

 
1,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
58

 
$
30

 
$
88

 
$
2,031

 
$
443

 
$
2,474

 
$
4,863

a 
$
—

 
$
3,984

 
$
1,758


$
1,777

b 
$
14,944

 
Intersegment
1,636

 
1,917

 
3,553

 
273

 
—

 
273

 
114

 
307

 
24

 
2

 
(4,273
)
 
—

 
Production and delivery
892

 
1,475

 
2,367

 
1,391


354

 
1,745

 
1,404


214

 
3,992

 
1,694

 
(2,626
)
 
8,790

 
Depreciation, depletion and amortization
133

 
141

 
274

 
336

 
66

 
402

 
534

 
60

 
8

 
20

 
53

 
1,351

 
Metals inventory adjustments
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2

 
Selling, general and administrative expenses
3

 
2

 
5

 
7

 
—

 
7

 
96

 
—

 
—

 
16

 
217

 
341

 
Mining exploration and research expenses
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
70

 
72

 
Environmental obligations and shutdown costs
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
74

 
76

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(126
)
 
(126
)
 
Operating income (loss)
666

 
323

 
989

 
570

 
23

 
593

 
2,943

 
33

 
8

 
30

 
(158
)
 
4,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
3

 
—

 
3

 
48

 
—

 
48

 
—

 
—

 
—

 
18

 
367

 
436

 
Provision for income taxes
—

 
—

 
—

 
207

 
15

 
222

 
1,254

 
—

 
—

 
1

 
66

 
1,543

 
Capital expenditures
151

 
262

 
413

 
178

 
10

 
188

 
695

 
6

 
3

 
10

 
76

 
1,391

 

a.
Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2019 and $2.1 billion for the first nine months of 2018.
b.
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
v3.19.3
Guarantor Financial Statements (Unaudited)
 9 Months Ended
Sep. 30, 2019
Guarantor Financial Statements [Abstract]  
Guarantor Financial Statements GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC), as guarantor, which is a 100-percent-owned subsidiary of FCX Oil & Gas LLC (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, 2019, and December 31, 2018, and the related condensed consolidating statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2019 and 2018 (in millions), which should be read in conjunction with the other notes in these consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
46

 
$
606

 
$
8,298

 
$
(603
)
 
$
8,347

Property, plant, equipment and mine development costs, net
18

 
5

 
29,300

 
7

 
29,330

Investments in consolidated subsidiaries
17,523

 
—

 
—

 
(17,523
)
 
—

Other assets
1,340

 
17

 
3,008

 
(1,099
)
 
3,266

Total assets
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
312

 
$
42

 
$
3,662

 
$
(635
)
 
$
3,381

Long-term debt, less current portion
8,600

 
7,215

 
6,003

 
(11,903
)
 
9,915

Deferred income taxes
498

a 
—

 
3,747

 
—

 
4,245

Environmental and asset retirement obligations, less current portion
—

 
237

 
3,321

 
—

 
3,558

Investments in consolidated subsidiaries
—

 
630

 
10,837

 
(11,467
)
 
—

Other liabilities
73

 
3,341

 
2,376

 
(3,488
)
 
2,302

Total liabilities
9,483

 
11,465

 
29,946

 
(27,493
)
 
23,401

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,444

 
(10,837
)
 
8,028

 
2,809

 
9,444

Noncontrolling interests
—

 
—

 
2,632

 
5,466

 
8,098

Total equity
9,444

 
(10,837
)
 
10,660

 
8,275

 
17,542

Total liabilities and equity
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

a.
All U.S.-related deferred income taxes are recorded at the parent company.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2018
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
309

 
$
620

 
$
10,376

 
$
(585
)
 
$
10,720

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

 
7

 
27,984

 
—

 
28,010

Investments in consolidated subsidiaries
19,064

 
—

 
—

 
(19,064
)
 
—

Other assets
880

 
23

 
3,218

 
(635
)
 
3,486

Total assets
$
20,272

 
$
650

 
$
41,578

 
$
(20,284
)
 
$
42,216

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
245

 
$
34

 
$
3,667

 
$
(617
)
 
$
3,329

Long-term debt, less current portion
9,594

 
6,984

 
5,649

 
(11,103
)
 
11,124

Deferred income taxes
524

a 
—

 
3,508

 
—

 
4,032

Environmental and asset retirement obligations, less current portion
—

 
227

 
3,382

 
—

 
3,609

Investments in consolidated subsidiaries
—

 
578

 
10,513

 
(11,091
)
 
—

Other liabilities
111

 
3,340

 
2,265

 
(3,486
)
 
2,230

Total liabilities
10,474

 
11,163

 
28,984

 
(26,297
)
 
24,324

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,798

 
(10,513
)
 
9,912

 
601

 
9,798

Noncontrolling interests
—

 
—

 
2,682

 
5,412

 
8,094

Total equity
9,798

 
(10,513
)
 
12,594

 
6,013

 
17,892

Total liabilities and equity
$
20,272

 
$
650

 
$
41,578

 
$
(20,284
)
 
$
42,216

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


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
11

 
$
3,142

 
$
—

 
$
3,153

Total costs and expenses
5

 
28

 
3,165

 
(7
)
 
3,191

Operating (loss) income
(5
)
 
(17
)
 
(23
)
 
7

 
(38
)
Interest expense, net
(79
)
 
(79
)
 
(98
)
 
133

 
(123
)
Other (expense) income, net
(52
)
 
—

 
36

 
28

 
12

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(136
)
 
(96
)
 
(85
)
 
168

 
(149
)
(Provision for) benefit from income taxes
(26
)
 
22

 
(85
)
 
(2
)
 
(91
)
Equity in affiliated companies’ net earnings (losses)
(45
)
 
(36
)
 
(105
)
 
191

 
5

Net (loss) income from continuing operations
(207
)
 
(110
)
 
(275
)
 
357

 
(235
)
Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(207
)
 
(110
)
 
(274
)
 
357

 
(234
)
Net loss (income) attributable to noncontrolling interests
—

 
—

 
22

 
5

 
27

Net (loss) income attributable to common stockholders
$
(207
)
 
$
(110
)
 
$
(252
)
 
$
362

 
$
(207
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(195
)
 
$
(110
)
 
$
(240
)
 
$
350

 
$
(195
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
15

 
$
4,893

 
$
—

 
$
4,908

Total costs and expenses
7

 
(2
)
 
3,588

 
—

 
3,593

Operating (loss) income
(7
)
 
17

 
1,305

 
—

 
1,315

Interest expense, net
(93
)
 
(79
)
 
(96
)
 
125

 
(143
)
Other income (expense), net
124

 
—

 
15

 
(125
)
 
14

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
24

 
(62
)
 
1,224

 
—

 
1,186

(Provision for) benefit from income taxes
(188
)
 
11

 
(345
)
 
—

 
(522
)
Equity in affiliated companies’ net earnings (losses)
720

 
(6
)
 
(54
)
 
(656
)
 
4

Net income (loss) from continuing operations
556

 
(57
)
 
825

 
(656
)
 
668

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
556

 
(57
)
 
821

 
(656
)
 
664

Net income attributable to noncontrolling interests
—

 
—

 
(47
)
 
(61
)
 
(108
)
Net income (loss) attributable to common stockholders
$
556

 
$
(57
)
 
$
774

 
$
(717
)
 
$
556

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
567

 
$
(57
)
 
$
785

 
$
(728
)
 
$
567

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
27

 
$
10,464

 
$
—

 
$
10,491

Total costs and expenses
22

 
54

 
10,106

 
(7
)
 
10,175

Operating (loss) income
(22
)
 
(27
)
 
358

 
7

 
316

Interest expense, net
(252
)
 
(247
)
 
(309
)
 
407

 
(401
)
Other income (expense), net
12

 
—

 
59

 
(46
)
 
25

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(262
)
 
(274
)
 
108

 
368

 
(60
)
(Provision for) benefit from income taxes
(34
)
 
62

 
(207
)
 
(2
)
 
(181
)
Equity in affiliated companies’ net earnings (losses)
48

 
(52
)
 
(257
)
 
268

 
7

Net (loss) income from continuing operations
(248
)
 
(264
)
 
(356
)
 
634

 
(234
)
Net income from discontinued operations
—

 
—

 
2

 
—

 
2

Net (loss) income
(248
)
 
(264
)
 
(354
)
 
634

 
(232
)
Net income attributable to noncontrolling interests
—

 
—

 
(20
)
 
4

 
(16
)
Net (loss) income attributable to common stockholders
$
(248
)
 
$
(264
)
 
$
(374
)
 
$
638

 
$
(248
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
35

 
—

 
35

 
(35
)
 
35

Total comprehensive (loss) income
$
(213
)
 
$
(264
)
 
$
(339
)
 
$
603

 
$
(213
)
 
 
 
 
 
 
 
 
 
 

Nine Months Ended September 30, 2018
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
46

 
$
14,898

 
$
—

 
$
14,944

Total costs and expenses
20

 
(10
)
 
10,506

 
(10
)
 
10,506

Operating (loss) income
(20
)
 
56

 
4,392

 
10

 
4,438

Interest expense, net
(294
)
 
(219
)
 
(273
)
 
350

 
(436
)
Other income (expense), net
357

 
2

 
62

 
(350
)
 
71

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
43

 
(161
)
 
4,181

 
10

 
4,073

(Provision for) benefit from income taxes
(282
)
 
33

 
(1,292
)
 
(2
)
 
(1,543
)
Equity in affiliated companies’ net earnings (losses)
2,356

 
(10
)
 
(133
)
 
(2,208
)
 
5

Net income (loss) from continuing operations
2,117

 
(138
)
 
2,756

 
(2,200
)
 
2,535

Net loss from discontinued operations
—

 
—

 
(19
)
 
—

 
(19
)
Net income (loss)
2,117

 
(138
)
 
2,737

 
(2,200
)
 
2,516

Net income attributable to noncontrolling interests

—

 
—

 
(220
)
 
(179
)
 
(399
)
Net income (loss) attributable to common stockholders
$
2,117

 
$
(138
)
 
$
2,517

 
$
(2,379
)
 
$
2,117

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
34

 
—

 
34

 
(34
)
 
34

Total comprehensive income (loss)
$
2,151

 
$
(138
)
 
$
2,551

 
$
(2,413
)
 
$
2,151

 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
352

 
$
(326
)
 
$
1,286

 
$
—

 
$
1,312

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(4
)
 
(1,913
)
 
—

 
(1,917
)
Intercompany loans
(801
)
 
—

 
—

 
801

 
—

Dividends from (investments in) consolidated subsidiaries
1,697

 
—

 
70

 
(1,769
)
 
(2
)
Asset sales and other, net
(1
)
 
98

 
(3
)
 
—

 
94

Net cash provided by (used in) investing activities
895

 
94

 
(1,846
)
 
(968
)
 
(1,825
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
1,200

 
—

 
481

 
—

 
1,681

Repayments of debt
(2,202
)
 
—

 
(715
)
 
—

 
(2,917
)
Intercompany loans
—

 
232

 
570

 
(802
)
 
—

Cash dividends paid and contributions received, net
(218
)
 
—

 
(1,696
)
 
1,750

 
(164
)
Other, net
(27
)
 
—

 
(23
)
 
20

 
(30
)
Net cash (used in) provided by financing activities
(1,247
)
 
232

 
(1,383
)
 
968

 
(1,430
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,943
)
 
—

 
(1,943
)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
—

 
4,455

 
—

 
4,455

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
2,512

 
$
—

 
$
2,512

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(181
)
 
$
(285
)
 
$
4,391

 
$
—

 
$
3,925

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(2
)
 
—

 
(1,389
)
 
—

 
(1,391
)
Intercompany loans
(558
)
 
—

 
—

 
558

 
—

Dividends from (investments in) consolidated subsidiaries
2,726

 
—

 
65

 
(2,791
)
 
—

Asset sales and other, net
4

 
3

 
(88
)
 
—

 
(81
)
Net cash provided by (used in) investing activities
2,170

 
3

 
(1,412
)
 
(2,233
)
 
(1,472
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
475

 
—

 
475

Repayments of debt
(1,826
)
 
(52
)
 
(532
)
 
—

 
(2,410
)
Intercompany loans
—

 
327

 
231

 
(558
)
 
—

Cash dividends paid and contributions received, net
(145
)
 
—

 
(3,016
)
 
2,775

 
(386
)
Other, net
(18
)
 
—

 
(17
)
 
16

 
(19
)
Net cash (used in) provided by financing activities
(1,989
)
 
275

 
(2,859
)
 
2,233

 
(2,340
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
120

 
—

 
113

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
7

 
4,703

 
—

 
4,710

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
4,823

 
$
—

 
$
4,823
v3.19.3
New Accounting Standard
 9 Months Ended
Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Standards NEW ACCOUNTING STANDARDS

Leases. Effective January 1, 2019, FCX adopted the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) that requires lessees to recognize most leases on the balance sheet. FCX elected the practical expedients allowing it to (i) apply the provisions of the updated lease guidance at the effective date, without adjusting the comparative periods presented and (ii) not reassess lease contracts, lease classification and initial direct costs of leases existing at adoption. FCX also elected an accounting policy to not recognize a lease asset and liability for leases with a term of 12 months or less and a purchase option that is not expected to be exercised.

FCX leases various types of properties, including offices and equipment under non-cancelable leases. Nearly all of FCX’s leases were considered operating leases under the new ASU. Adoption of this ASU resulted in the recognition of $243 million in lease right-of-use assets and lease liabilities as of January 1, 2019.

The components of FCX’s leases presented in the consolidated balance sheet as of September 30, 2019, follow (in millions):
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
$
241

 
 
Short-term lease liabilities (included in accounts payable and accrued liabilities)
$
45

Long-term lease liabilities (included in other liabilities)
211

Total lease liabilities
$
256



Operating lease costs, primarily included in production and delivery expense in the consolidated statement of operations, are as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2019
 
 
 
 
Operating leases
$
11

 
$
44

Variable and short-term leases
19

 
59

Total operating lease costs
$
30

 
$
103



Lease costs totaled $80 million for the year 2018.

FCX paid $32 million during the first nine months of 2019 for lease liabilities recorded in the consolidated balance sheet (primarily included in operating cash flows in the consolidated statements of cash flows). As of September 30, 2019, the weighted-average discount rate used to determine the lease liabilities was 5.6 percent and the weighted-average remaining lease term was 8.5 years.

The future minimum payments for leases presented in the consolidated balance sheet at September 30, 2019, follow (in millions):
Remaining three months of 2019
$
14

2020
55

2021
42

2022
35

2023
31

Thereafter
155

Total payments
332

Less amount representing interest
(76
)
Present value of net minimum lease payments
256

Less current portion
(45
)
Long-term portion
$
211



Financial Instruments. In June 2016, FASB issued an ASU that requires entities to estimate all expected credit losses for most financial assets held at the reporting date based on an expected loss model, which requires consideration of historical experience, current conditions, and reasonable and supportable forecasts. This ASU also requires enhanced disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. Currently, FCX does not expect this guidance to have a material impact on its consolidated financial statements.
v3.19.3
Subsequent Events (Unaudited)
 9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS

FCX evaluated events after September 30, 2019, and through the date the consolidated financial statements were issued, and took into account events and transactions occurring during this period requiring recognition or disclosure in these consolidated financial statements.

Timok Transaction. In 2016, FCX sold an interest in the upper zone of the Timok exploration project in Serbia for cash consideration of $135 million and contingent consideration of up to $107 million payable to FCX in stages upon achievement of defined development milestones.

In November 2019, FCX entered into an agreement to sell its interest in the lower zone of the Timok exploration project to an affiliate of the purchaser in the 2016 transaction, for cash consideration of $240 million at closing plus deferred payments of up to $150 million. The deferred payments will be based on the future sale of products (as defined in the agreement) from the Timok lower zone. For a period of 12 months after the third anniversary of the initial sale of products from the Timok exploration project, the purchaser can settle, or FCX can demand payment of, such deferred payment obligation, in each case, for a total of $60 million. In addition, in lieu of such payment upon achievement of defined development milestones, the purchaser agreed to pay the $107 million contingent consideration provided for in the 2016 transaction in three installment payments of $45 million by July 31, 2020, $50 million by December 31, 2021, and $12 million by March 31, 2022.

Upon closing, FCX expects to record a gain of approximately $340 million, consisting of the cash consideration payment ($240 million) and the aggregate amount of the three installment payments (approximately $100 million after discounting).

The transaction is expected to close by first-quarter 2020, subject to receipt of customary regulatory approvals.

PT-FI Export Duty Matter. As discussed in Note 12 of FCX’s 2018 Form 10-K, in accordance with PT-FI’s 2017 Memorandum of Understanding with the Indonesian government, PT-FI agreed to pay export duties of 5 percent on the value of copper concentrate export sales until completion of the divestment and new IUPK. The Indonesia Customs Office applied a 7.5 percent duty. PT-FI paid the 2.5 percent difference for the period between April 2017 and December 21, 2018, totaling $155 million, under protest and appealed the disputed amounts to the Indonesia Tax Court. The Indonesia Tax Court subsequently announced rulings in favor of PT-FI related to individual cases involving $29 million of the disputed amounts, which were refunded by the Indonesia Customs Office to PT-FI.

The Indonesia Customs Office appealed the Indonesia Tax Court decisions on these cases to the Indonesia Supreme Court. On October 29, 2019, the Indonesia Supreme Court posted on its website rulings unfavorable to PT-FI for certain of the appealed cases involving approximately half of the $29 million that had been refunded to PT-FI.

As a result of the October 2019 ruling, under applicable accounting guidance, FCX recorded a charge of $155 million ($76 million to net loss attributable to common stock or $0.05 per share) during third-quarter 2019 to fully reserve for this matter. PT-FI continues to believe that a 5 percent export duty was applicable during this period and is evaluating options to recover these overpayments.

Under PT-FI’s IUPK entered into on December 21, 2018, the applicable export duty is 5 percent, declining to 2.5 percent when smelter development progress exceeds 30 percent and eliminated when smelter development progress exceeds 50 percent.

PT-FI Mine Development Cost Tax Matters. As discussed in Note 12 of FCX’s 2018 Form 10-K, PT-FI received unfavorable decisions from the Indonesia Tax Court with respect to its appeal of disallowed items on its 2012 and 2014 corporate income tax returns related to the tax treatment of mine development costs. On October 31, 2019, the Indonesia Supreme Court posted on its website a ruling unfavorable to PT-FI regarding its appeal of the Indonesia Tax Court decision regarding the tax treatment of mine development costs in its 2014 tax return. PT-FI is working with its advisors to estimate the aggregate potential exposure of this ruling, which could be significant after taking into account potential applicable penalties and interest and potential application to other years under dispute. PT-FI believes its treatment of mine development costs were appropriate under applicable provisions of the Contract of Work. The IUPK entered into on December 21, 2018, also provides for deductibility of mine development costs.

Under applicable accounting guidelines, adjustments for income tax matters such as this are reflected in the period in which the item becomes known and will be incorporated in FCX’s fourth-quarter 2019 results.

PT-FI will continue to defend its positions on these matters.
v3.19.3
New Accounting Standard (Policies)
 9 Months Ended
Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Leases

Leases. Effective January 1, 2019, FCX adopted the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) that requires lessees to recognize most leases on the balance sheet. FCX elected the practical expedients allowing it to (i) apply the provisions of the updated lease guidance at the effective date, without adjusting the comparative periods presented and (ii) not reassess lease contracts, lease classification and initial direct costs of leases existing at adoption. FCX also elected an accounting policy to not recognize a lease asset and liability for leases with a term of 12 months or less and a purchase option that is not expected to be exercised.

FCX leases various types of properties, including offices and equipment under non-cancelable leases. Nearly all of FCX’s leases were considered operating leases under the new ASU.
v3.19.3
Earnings per Share (Unaudited) Earnings per Share (Tables)
 9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Reconciliation of net income (loss) and weighted-average shares of common stock outstanding
Reconciliations of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net (loss) income per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2018
 
2019
 
2018
 
Net (loss) income from continuing operations
$
(235
)
 
$
668

 
$
(234
)
 
$
2,535

 
Net loss (income) from continuing operations attributable to noncontrolling interests
27

 
(108
)
 
(16
)
 
(399
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(4
)
 
(3
)
 
(5
)
 
Net (loss) income from continuing operations attributable to common stockholders
(211
)
 
556

 
(253
)
 
2,131

 
 
 
 
 
 
 
 
 
 
Net income (loss) from discontinued operations attributable to common stockholders
1

 
(4
)
 
2

 
(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(210
)
 
$
552

 
$
(251
)
 
$
2,112

 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,452

 
1,450

 
1,451

 
1,449

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)
—

a 
8

 
—

a 
9

a 
Diluted weighted-average shares of common stock outstanding
1,452

 
1,458

 
1,451

 
1,458

 
 
 
 
 
 
 
 
 
 
Basic net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.47

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.46

 
Diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.46

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.15
)
 
$
0.38

 
$
(0.17
)
 
$
1.45

 

a.
Excludes approximately 10 million shares of common stock in third-quarter 2019, 11 million for the first nine months of 2019 and 2 million for the first nine months of 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.
v3.19.3
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables)
 9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory

The components of inventories follow (in millions):
 
September 30,
2019
 
December 31, 2018
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,619

 
$
1,528

 
 
 
 
 
 
Mill stockpiles
$
200

 
$
282

 
Leach stockpiles
1,102

 
1,171

 
Total current mill and leach stockpiles
$
1,302

 
$
1,453

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
292

 
$
260

 
Work-in-process
79

 
192

 
Finished goods
1,142

 
1,326

 
Total product
$
1,513

 
$
1,778

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
223

 
$
265

 
Leach stockpiles
1,077

 
1,049

 
Total long-term mill and leach stockpilesb
$
1,300

 
$
1,314

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $26 million at September 30, 2019, and $24 million at December 31, 2018.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
v3.19.3
Income Taxes (Unaudited) (Tables)
 9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income before income taxes and equity in an affiliated companies' net earnings eographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Nine Months Ended
 
 
September 30,
 
 
2019
 
2018
 
U.S. operations
$
73

a 
$
2

 
International operations
(254
)
 
(1,545
)
 
Total
$
(181
)
b 
$
(1,543
)
 

a.
Includes tax credits totaling $24 million primarily associated with state law changes and settlement of state income tax examinations.
b.
Includes net tax charges totaling $49 million primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
v3.19.3
Debt and Equity (Tables)
 9 Months Ended
Sep. 30, 2019
Debt Instrument [Line Items]  
Schedule of Debt

The components of debt follow (in millions):
 
 
September 30,
2019
 
December 31, 2018
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,600

 
$
9,594

Issued by Freeport Minerals Corporation (FMC)
 
357

 
358

Cerro Verde credit facility
 
825

 
1,023

Other
 
137

 
166

Total debt
 
9,919

 
11,141

Less current portion of debt
 
(4
)
 
(17
)
Long-term debt
 
$
9,915

 
$
11,124
Schedule of Long-term Debt Instruments [Table Text Block] FCX recorded a loss on early extinguishment of debt totaling $21 million in third-quarter 2019 as follows (in millions):
 
 
 
 
 
 
 
 
 
 
 
Principal Amount
 
Net Adjustments
 
Book Value
 
Redemption/Tender Value
 
Loss
FCX 6.875% Senior Notes due 2023
$
728

 
$
34

 
$
762

 
$
768

 
$
6

FCX 4.00% Senior Notes due 2021
405

 
(2
)
 
403

 
418

 
15

FCX 3.55% Senior Notes due 2022
12

 
—

 
12

 
12

 
—

 
$
1,145

 
$
32

 
$
1,177

 
$
1,198

 
$
21
v3.19.3
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized (losses) gains:
 
 
 
 
 
 
 
Derivative financial instruments
$
(2
)
 
$
7

 
$
3

 
$
(12
)
Hedged item – firm sales commitments
2

 
(7
)
 
(3
)
 
12

 
 
 
 
 
 
 
 
Realized losses:
 
 
 
 
 
 
 
Matured derivative financial instruments
(8
)
 
(19
)
 
(9
)
 
(17
)
Schedule of Derivative Instruments
A summary of FCX’s embedded derivatives at September 30, 2019, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
424

 
$
2.63

 
$
2.59

 
February 2020
Gold (thousands of ounces)
150

 
1,510

 
1,491

 
November 2019
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
97

 
2.63

 
2.59

 
January 2020
Cobalt (millions of pounds)
6

 
9.81

 
12.18

 
December 2019

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions A summary of the realized and unrealized (losses) gains recognized in operating income 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,
 
2019
 
2018
 
2019
 
2018
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
(57
)
 
$
(93
)
 
$
(57
)
 
$
(242
)
Gold and other metals
6

 
(25
)
 
17

 
(37
)
Copper forward contractsb
—

 
9

 
(3
)
 
17

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,
2019
 
December 31, 2018
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
—

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
6

 
23

Total derivative assets
 
$
6

 
$
23

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
6

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
36

 
39

Total derivative liabilities
 
$
42

 
$
48
Offsetting Assets
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
September 30,
2019
 
December 31, 2018
 
September 30,
2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
6

 
$
23

 
$
36

 
$
39

Copper derivatives
 
—

 
—

 
6

 
9

 
 
6

 
23

 
42

 
48

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

 
7

 
1

 
7

Copper derivatives
 
—

 
—

 
—

 
—

 
 
1

 
7

 
1

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
5

 
16

 
35

 
32

Copper derivatives
 
—

 
—

 
6

 
9

 
 
$
5

 
$
16

 
$
41

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
—

 
$
3

 
$
17

 
$
24

Accounts payable and accrued liabilities
 
5

 
13

 
24

 
17

 
 
$
5

 
$
16

 
$
41

 
$
41
Offsetting Liabilities
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
September 30,
2019
 
December 31, 2018
 
September 30,
2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
6

 
$
23

 
$
36

 
$
39

Copper derivatives
 
—

 
—

 
6

 
9

 
 
6

 
23

 
42

 
48

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

 
7

 
1

 
7

Copper derivatives
 
—

 
—

 
—

 
—

 
 
1

 
7

 
1

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
5

 
16

 
35

 
32

Copper derivatives
 
—

 
—

 
6

 
9

 
 
$
5

 
$
16

 
$
41

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
—

 
$
3

 
$
17

 
$
24

Accounts payable and accrued liabilities
 
5

 
13

 
24

 
17

 
 
$
5

 
$
16

 
$
41

 
$
41
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):
 
 
September 30,
2019
 
December 31, 2018
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
2,247

 
$
4,217

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
100

 
110

Other assets
 
165

 
128

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
2,512

 
$
4,455
v3.19.3
FAIR VALUE MEASUREMENT (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurement Inputs Disclosure A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):
 
At September 30, 2019
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
27

 
$
27

 
$
27

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
31

 
31

 
27

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
59

 
59

 
59

 
—

 
—

 
—

Government mortgage-backed securities
41

 
41

 
—

 
—

 
41

 
—

Government bonds and notes
38

 
38

 
—

 
—

 
38

 
—

Corporate bonds
35

 
35

 
—

 
—

 
35

 
—

Asset-backed securities
12

 
12

 
—

 
—

 
12

 
—

Collateralized mortgage-backed securities
6

 
6

 
—

 
—

 
6

 
—

Money market funds
4

 
4

 
—

 
4

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
196

 
196

 
59

 
4

 
133

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
6

 
6

 
—

 
—

 
6

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
  and onshore California oil and gas propertiesa
67

 
67

 
—

 
—

 
67

 
—

       Total
$
73

 
$
73

 
$
—

 
$
—

 
$
73

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
128

 
110

 
—

 
—

 
—

 
110

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
36

 
$
36

 
$
—

 
$
—

 
$
36

 
$
—

Copper futures and swap contracts
6

 
6

 
—

 
5

 
1

 
—

Total
42

 
42

 
—

 
5

 
37

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,919

 
9,872

 
—

 
—

 
9,872

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
At December 31, 2018
 
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

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
29

 
29

 
25

 
4

 
—

 
—

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

 
55

 
55

 
—

 
—

 
—

Government mortgage-backed securities
38

 
38

 
—

 
—

 
38

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
28

 
28

 
—

 
—

 
28

 
—

Asset-backed securities
11

 
11

 
—

 
—

 
11

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
5

 
5

 
—

 
5

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
181

 
181

 
55

 
5

 
121

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
23

 
23

 
—

 
—

 
23

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
   and onshore California oil and gas propertiesa
73

 
73

 
—

 
—

 
73

 
—

Total
96

 
96

 
—

 
—

 
96

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
143

 
127

 
—

 
—

 
—

 
127

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
39

 
$
39

 
$
—

 
$
—

 
$
39

 
$
—

Copper futures and swap contracts
9

 
9

 
—

 
7

 
2

 
—

Total
48

 
48

 
—

 
7

 
41

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
11,141

 
10,238

 
—

 
—

 
10,238

 
—

 
 
 
 
 
 
 
 
 
 
 
 

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 $100 million at September 30, 2019, and $109 million at December 31, 2018, and (ii) other assets of $164 million at September 30, 2019, and $126 million at December 31, 2018, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter in Indonesia and PT-FI’s closure and reclamation guarantees.
c.
Refer to Note 6 for further discussion and balance sheet classifications.
d.
Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.
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 2019 follows (in millions):
Fair value at January 1, 2019
$
127

 
Net unrealized loss related to assets still held at the end of the period
(1
)
 
Settlements
(16
)
 
Fair value at September 30, 2019
$
110

 
v3.19.3
Business Segments (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Revenue from External Customers by Products and Services FCX’s revenues attributable to the products it sold for the third quarters and first nine months of 2019 and 2018 follow (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Copper:
 
 
 
 
 
 
 
Concentrate
$
952

 
$
1,743

 
$
3,251

 
$
5,093

Cathode
878

 
1,015

 
2,696

 
3,383

Rod and other refined copper products
537

 
561

 
1,560

 
1,899

Purchased coppera
210

 
256

 
872

 
776

Gold
415

 
1,073

 
1,111

 
2,814

Molybdenum
295

 
286

 
910

 
882

Otherb
202

 
381

 
697

 
1,179

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(87
)
 
(162
)
 
(292
)
 
(433
)
Royalty expensec
(24
)
 
(75
)
 
(73
)
 
(217
)
Export dutiesd
(174
)
 
(52
)
 
(201
)
 
(153
)
Revenues from contracts with customers
3,204

 
5,026

 
10,531

 
15,223

Embedded derivativese
(51
)
 
(118
)
 
(40
)
 
(279
)
Total consolidated revenues
$
3,153

 
$
4,908

 
$
10,491

 
$
14,944

a.
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.
Primarily includes revenues associated with cobalt and silver.
c.
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d.
Reflects PT-FI export duties. The third quarter and first nine months of 2019 include charges totaling $166 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
e.
Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
Schedule of financial information by business segment
Financial Information by Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
61

 
$
19

 
$
80

 
$
504

 
$
117

 
$
621

 
$
488

a 
$
—

 
$
1,104

 
$
437

 
$
423

b 
$
3,153

Intersegment
462

 
598

 
1,060

 
65

 
—

 
65

 
—

 
90

 
8

 
—

 
(1,223
)
 
—

Production and delivery
377

 
519

 
896

 
417

 
111

 
528

 
399

 
85

 
1,111

 
421

 
(775
)
 
2,665

Depreciation, depletion and amortization
45

 
46

 
91

 
93

 
16

 
109

 
77

 
16

 
2

 
7

 
20

 
322

Metals inventory adjustments
1

 
37

 
38

 
2

 
—

 
2

 
—

 
1

 
—

 
—

 
—

 
41

Selling, general and administrative expenses
1

 
1

 
2

 
2

 
—

 
2

 
31

 
—

 
—

 
5

 
66

 
106

Mining exploration and research expenses
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
25

 
25

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
20

 
20

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
12

 
12

Operating income (loss)
99

 
14

 
113

 
55

 
(10
)
 
45

 
(19
)
 
(12
)
 
(1
)
 
4

 
(168
)
 
(38
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
—

 
1

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
5

 
91

 
123

Provision for (benefit from) income taxes
—

 
—

 
—

 
29

 
4

 
33

 
(8
)
 
—

 
—

 
(1
)
 
67

 
91

Total assets at September 30, 2019
2,943

 
5,005

 
7,948

 
8,500

 
1,723

 
10,223

 
16,447

 
1,786

 
236

 
680

 
3,623

 
40,943

Capital expenditures
61

 
163

 
224

 
61

 
7

 
68

 
334

 
5

 
1

 
9

 
25

 
666

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
30

 
$
2

 
$
32

 
$
687

 
$
122

 
$
809

 
$
1,703

a 
$
—

 
$
1,212

 
$
579

 
$
573

b 
$
4,908

Intersegment
467

 
587

 
1,054

 
71

 
—

 
71

 
61

 
101

 
8

 
—

 
(1,295
)
 
—

Production and delivery
304

 
485

 
789

 
519

 
105

 
624

 
522

 
76

 
1,215

 
559

 
(716
)
 
3,069

Depreciation, depletion and amortization
43

 
45

 
88

 
122

 
20

 
142

 
181

 
20

 
3

 
6

 
18

 
458

Selling, general and administrative expenses
1

 
—

 
1

 
3

 
—

 
3

 
29

 
—

 
—

 
5

 
63

 
101

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
26

 
27

Environmental obligations and shutdown costs
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6

 
8

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(70
)
 
(70
)
Operating income (loss)
149

 
56

 
205

 
114

 
(3
)
 
111

 
1,032

 
5

 
2

 
9

 
(49
)
 
1,315

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
15

 
—

 
15

 
—

 
—

 
—

 
7

 
120

 
143

Provision for income taxes
—

 
—

 
—

 
37

 
5

 
42

 
424

 
—

 
—

 
—

 
56

 
522

Total assets at September 30, 2018
2,826

 
4,465

 
7,291

 
8,613

 
1,709

 
10,322

 
11,764

 
1,808

 
284

 
835

 
5,445

 
37,749

Capital expenditures
63

 
118

 
181

 
47

 
3

 
50

 
246

 
4

 
1

 
3

 
22

 
507

a.
Includes PT-FI's sales to PT Smelting totaling $475 million in third-quarter 2019 and $827 million in third-quarter 2018.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.


(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
 
Morenci
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
 
Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
89

 
$
183

 
$
272

 
$
1,793

 
$
343

 
$
2,136

 
$
1,776

a 
$
—

 
$
3,403

 
$
1,554

 
$
1,350

b 
$
10,491

 
Intersegment
1,411

 
1,611

 
3,022

 
262

 
—

 
262

 
57

 
290

 
18

 
5

 
(3,654
)
 
—

 
Production and delivery
1,020

 
1,443

 
2,463

 
1,311

 
337

 
1,648

 
1,509

 
234

 
3,415

 
1,488

 
(2,173
)
 
8,584

 
Depreciation, depletion and amortization
128

 
133

 
261

 
294

 
48

 
342

 
281

 
50

 
7

 
21

 
59

 
1,021

 
Metals inventory adjustments
1

 
38

 
39

 
2

 
—

 
2

 
—

 
1

 
—

 
—

 
58

 
100

 
Selling, general and administrative expenses
2

 
2

 
4

 
6

 
—

 
6

 
91

 
—

 
—

 
15

 
199

 
315

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
82

 
83

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
85

 
85

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(13
)
 
(13
)
 
Operating income (loss)
349

 
177

 
526

 
442

 
(42
)
 
400

 
(48
)
 
5

 
(1
)
 
35

 
(601
)
 
316

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
1

 
3

 
79

 
—

 
79

 
2

 
—

 
—

 
17

 
300

 
401

 
Provision for (benefit from) income taxes
—

 
—

 
—

 
159

 
(10
)
 
149

 
(9
)
 
—

 
—

 
2

 
39

 
181

 
Capital expenditures
172

 
469

 
641

 
160

 
16

 
176

 
992

 
11

 
3

 
18

 
76

 
1,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
58

 
$
30

 
$
88

 
$
2,031

 
$
443

 
$
2,474

 
$
4,863

a 
$
—

 
$
3,984

 
$
1,758


$
1,777

b 
$
14,944

 
Intersegment
1,636

 
1,917

 
3,553

 
273

 
—

 
273

 
114

 
307

 
24

 
2

 
(4,273
)
 
—

 
Production and delivery
892

 
1,475

 
2,367

 
1,391


354

 
1,745

 
1,404


214

 
3,992

 
1,694

 
(2,626
)
 
8,790

 
Depreciation, depletion and amortization
133

 
141

 
274

 
336

 
66

 
402

 
534

 
60

 
8

 
20

 
53

 
1,351

 
Metals inventory adjustments
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2

 
Selling, general and administrative expenses
3

 
2

 
5

 
7

 
—

 
7

 
96

 
—

 
—

 
16

 
217

 
341

 
Mining exploration and research expenses
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
70

 
72

 
Environmental obligations and shutdown costs
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
74

 
76

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(126
)
 
(126
)
 
Operating income (loss)
666

 
323

 
989

 
570

 
23

 
593

 
2,943

 
33

 
8

 
30

 
(158
)
 
4,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
3

 
—

 
3

 
48

 
—

 
48

 
—

 
—

 
—

 
18

 
367

 
436

 
Provision for income taxes
—

 
—

 
—

 
207

 
15

 
222

 
1,254

 
—

 
—

 
1

 
66

 
1,543

 
Capital expenditures
151

 
262

 
413

 
178

 
10

 
188

 
695

 
6

 
3

 
10

 
76

 
1,391

 

a.
Includes PT-FI’s sales to PT Smelting totaling $1.4 billion for the first nine months of 2019 and $2.1 billion for the first nine months of 2018.
b.
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
v3.19.3
Guarantor Financial Statements (Tables)
 9 Months Ended
Sep. 30, 2019
Guarantor Financial Statements [Abstract]  
Condensed Consolidating Balance Sheets [Table Text Block]
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
46

 
$
606

 
$
8,298

 
$
(603
)
 
$
8,347

Property, plant, equipment and mine development costs, net
18

 
5

 
29,300

 
7

 
29,330

Investments in consolidated subsidiaries
17,523

 
—

 
—

 
(17,523
)
 
—

Other assets
1,340

 
17

 
3,008

 
(1,099
)
 
3,266

Total assets
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
312

 
$
42

 
$
3,662

 
$
(635
)
 
$
3,381

Long-term debt, less current portion
8,600

 
7,215

 
6,003

 
(11,903
)
 
9,915

Deferred income taxes
498

a 
—

 
3,747

 
—

 
4,245

Environmental and asset retirement obligations, less current portion
—

 
237

 
3,321

 
—

 
3,558

Investments in consolidated subsidiaries
—

 
630

 
10,837

 
(11,467
)
 
—

Other liabilities
73

 
3,341

 
2,376

 
(3,488
)
 
2,302

Total liabilities
9,483

 
11,465

 
29,946

 
(27,493
)
 
23,401

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,444

 
(10,837
)
 
8,028

 
2,809

 
9,444

Noncontrolling interests
—

 
—

 
2,632

 
5,466

 
8,098

Total equity
9,444

 
(10,837
)
 
10,660

 
8,275

 
17,542

Total liabilities and equity
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

a.
All U.S.-related deferred income taxes are recorded at the parent company.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2018
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
309

 
$
620

 
$
10,376

 
$
(585
)
 
$
10,720

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

 
7

 
27,984

 
—

 
28,010

Investments in consolidated subsidiaries
19,064

 
—

 
—

 
(19,064
)
 
—

Other assets
880

 
23

 
3,218

 
(635
)
 
3,486

Total assets
$
20,272

 
$
650

 
$
41,578

 
$
(20,284
)
 
$
42,216

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
245

 
$
34

 
$
3,667

 
$
(617
)
 
$
3,329

Long-term debt, less current portion
9,594

 
6,984

 
5,649

 
(11,103
)
 
11,124

Deferred income taxes
524

a 
—

 
3,508

 
—

 
4,032

Environmental and asset retirement obligations, less current portion
—

 
227

 
3,382

 
—

 
3,609

Investments in consolidated subsidiaries
—

 
578

 
10,513

 
(11,091
)
 
—

Other liabilities
111

 
3,340

 
2,265

 
(3,486
)
 
2,230

Total liabilities
10,474

 
11,163

 
28,984

 
(26,297
)
 
24,324

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,798

 
(10,513
)
 
9,912

 
601

 
9,798

Noncontrolling interests
—

 
—

 
2,682

 
5,412

 
8,094

Total equity
9,798

 
(10,513
)
 
12,594

 
6,013

 
17,892

Total liabilities and equity
$
20,272

 
$
650

 
$
41,578

 
$
(20,284
)
 
$
42,216

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 (LOSS) INCOME


 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
11

 
$
3,142

 
$
—

 
$
3,153

Total costs and expenses
5

 
28

 
3,165

 
(7
)
 
3,191

Operating (loss) income
(5
)
 
(17
)
 
(23
)
 
7

 
(38
)
Interest expense, net
(79
)
 
(79
)
 
(98
)
 
133

 
(123
)
Other (expense) income, net
(52
)
 
—

 
36

 
28

 
12

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(136
)
 
(96
)
 
(85
)
 
168

 
(149
)
(Provision for) benefit from income taxes
(26
)
 
22

 
(85
)
 
(2
)
 
(91
)
Equity in affiliated companies’ net earnings (losses)
(45
)
 
(36
)
 
(105
)
 
191

 
5

Net (loss) income from continuing operations
(207
)
 
(110
)
 
(275
)
 
357

 
(235
)
Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(207
)
 
(110
)
 
(274
)
 
357

 
(234
)
Net loss (income) attributable to noncontrolling interests
—

 
—

 
22

 
5

 
27

Net (loss) income attributable to common stockholders
$
(207
)
 
$
(110
)
 
$
(252
)
 
$
362

 
$
(207
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(195
)
 
$
(110
)
 
$
(240
)
 
$
350

 
$
(195
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
15

 
$
4,893

 
$
—

 
$
4,908

Total costs and expenses
7

 
(2
)
 
3,588

 
—

 
3,593

Operating (loss) income
(7
)
 
17

 
1,305

 
—

 
1,315

Interest expense, net
(93
)
 
(79
)
 
(96
)
 
125

 
(143
)
Other income (expense), net
124

 
—

 
15

 
(125
)
 
14

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
24

 
(62
)
 
1,224

 
—

 
1,186

(Provision for) benefit from income taxes
(188
)
 
11

 
(345
)
 
—

 
(522
)
Equity in affiliated companies’ net earnings (losses)
720

 
(6
)
 
(54
)
 
(656
)
 
4

Net income (loss) from continuing operations
556

 
(57
)
 
825

 
(656
)
 
668

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
556

 
(57
)
 
821

 
(656
)
 
664

Net income attributable to noncontrolling interests
—

 
—

 
(47
)
 
(61
)
 
(108
)
Net income (loss) attributable to common stockholders
$
556

 
$
(57
)
 
$
774

 
$
(717
)
 
$
556

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
567

 
$
(57
)
 
$
785

 
$
(728
)
 
$
567

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
27

 
$
10,464

 
$
—

 
$
10,491

Total costs and expenses
22

 
54

 
10,106

 
(7
)
 
10,175

Operating (loss) income
(22
)
 
(27
)
 
358

 
7

 
316

Interest expense, net
(252
)
 
(247
)
 
(309
)
 
407

 
(401
)
Other income (expense), net
12

 
—

 
59

 
(46
)
 
25

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(262
)
 
(274
)
 
108

 
368

 
(60
)
(Provision for) benefit from income taxes
(34
)
 
62

 
(207
)
 
(2
)
 
(181
)
Equity in affiliated companies’ net earnings (losses)
48

 
(52
)
 
(257
)
 
268

 
7

Net (loss) income from continuing operations
(248
)
 
(264
)
 
(356
)
 
634

 
(234
)
Net income from discontinued operations
—

 
—

 
2

 
—

 
2

Net (loss) income
(248
)
 
(264
)
 
(354
)
 
634

 
(232
)
Net income attributable to noncontrolling interests
—

 
—

 
(20
)
 
4

 
(16
)
Net (loss) income attributable to common stockholders
$
(248
)
 
$
(264
)
 
$
(374
)
 
$
638

 
$
(248
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
35

 
—

 
35

 
(35
)
 
35

Total comprehensive (loss) income
$
(213
)
 
$
(264
)
 
$
(339
)
 
$
603

 
$
(213
)
 
 
 
 
 
 
 
 
 
 

Nine Months Ended September 30, 2018
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
46

 
$
14,898

 
$
—

 
$
14,944

Total costs and expenses
20

 
(10
)
 
10,506

 
(10
)
 
10,506

Operating (loss) income
(20
)
 
56

 
4,392

 
10

 
4,438

Interest expense, net
(294
)
 
(219
)
 
(273
)
 
350

 
(436
)
Other income (expense), net
357

 
2

 
62

 
(350
)
 
71

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
43

 
(161
)
 
4,181

 
10

 
4,073

(Provision for) benefit from income taxes
(282
)
 
33

 
(1,292
)
 
(2
)
 
(1,543
)
Equity in affiliated companies’ net earnings (losses)
2,356

 
(10
)
 
(133
)
 
(2,208
)
 
5

Net income (loss) from continuing operations
2,117

 
(138
)
 
2,756

 
(2,200
)
 
2,535

Net loss from discontinued operations
—

 
—

 
(19
)
 
—

 
(19
)
Net income (loss)
2,117

 
(138
)
 
2,737

 
(2,200
)
 
2,516

Net income attributable to noncontrolling interests

—

 
—

 
(220
)
 
(179
)
 
(399
)
Net income (loss) attributable to common stockholders
$
2,117

 
$
(138
)
 
$
2,517

 
$
(2,379
)
 
$
2,117

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
34

 
—

 
34

 
(34
)
 
34

Total comprehensive income (loss)
$
2,151

 
$
(138
)
 
$
2,551

 
$
(2,413
)
 
$
2,151

 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statements of Cash Flows [Table Text Block]
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
352

 
$
(326
)
 
$
1,286

 
$
—

 
$
1,312

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(4
)
 
(1,913
)
 
—

 
(1,917
)
Intercompany loans
(801
)
 
—

 
—

 
801

 
—

Dividends from (investments in) consolidated subsidiaries
1,697

 
—

 
70

 
(1,769
)
 
(2
)
Asset sales and other, net
(1
)
 
98

 
(3
)
 
—

 
94

Net cash provided by (used in) investing activities
895

 
94

 
(1,846
)
 
(968
)
 
(1,825
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
1,200

 
—

 
481

 
—

 
1,681

Repayments of debt
(2,202
)
 
—

 
(715
)
 
—

 
(2,917
)
Intercompany loans
—

 
232

 
570

 
(802
)
 
—

Cash dividends paid and contributions received, net
(218
)
 
—

 
(1,696
)
 
1,750

 
(164
)
Other, net
(27
)
 
—

 
(23
)
 
20

 
(30
)
Net cash (used in) provided by financing activities
(1,247
)
 
232

 
(1,383
)
 
968

 
(1,430
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,943
)
 
—

 
(1,943
)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
—

 
4,455

 
—

 
4,455

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
2,512

 
$
—

 
$
2,512

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(181
)
 
$
(285
)
 
$
4,391

 
$
—

 
$
3,925

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(2
)
 
—

 
(1,389
)
 
—

 
(1,391
)
Intercompany loans
(558
)
 
—

 
—

 
558

 
—

Dividends from (investments in) consolidated subsidiaries
2,726

 
—

 
65

 
(2,791
)
 
—

Asset sales and other, net
4

 
3

 
(88
)
 
—

 
(81
)
Net cash provided by (used in) investing activities
2,170

 
3

 
(1,412
)
 
(2,233
)
 
(1,472
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
475

 
—

 
475

Repayments of debt
(1,826
)
 
(52
)
 
(532
)
 
—

 
(2,410
)
Intercompany loans
—

 
327

 
231

 
(558
)
 
—

Cash dividends paid and contributions received, net
(145
)
 
—

 
(3,016
)
 
2,775

 
(386
)
Other, net
(18
)
 
—

 
(17
)
 
16

 
(19
)
Net cash (used in) provided by financing activities
(1,989
)
 
275

 
(2,859
)
 
2,233

 
(2,340
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
120

 
—

 
113

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
7

 
4,703

 
—

 
4,710

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
4,823

 
$
—

 
$
4,823
v3.19.3
New Accounting Standard (Tables)
 9 Months Ended
Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Summary of components of leases presented in the consolidated balance sheet
The components of FCX’s leases presented in the consolidated balance sheet as of September 30, 2019, follow (in millions):
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
$
241

 
 
Short-term lease liabilities (included in accounts payable and accrued liabilities)
$
45

Long-term lease liabilities (included in other liabilities)
211

Total lease liabilities
$
256
Schedule of operating lease costs
Operating lease costs, primarily included in production and delivery expense in the consolidated statement of operations, are as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2019
 
 
 
 
Operating leases
$
11

 
$
44

Variable and short-term leases
19

 
59

Total operating lease costs
$
30

 
$
103
Schedule of future minimum payments for leases
The future minimum payments for leases presented in the consolidated balance sheet at September 30, 2019, follow (in millions):
Remaining three months of 2019
$
14

2020
55

2021
42

2022
35

2023
31

Thereafter
155

Total payments
332

Less amount representing interest
(76
)
Present value of net minimum lease payments
256

Less current portion
(45
)
Long-term portion
$
211
v3.19.3
General Information (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2018
Jan. 01, 2023
Dec. 21, 2018
Net income (loss) $ (234) $ 664 $ (232)   $ 2,516    
Freeport Cobalt | Held for sale              
Assets 201   201 $ 201      
Liabilities 76   76 76      
Consideration 150   150 150      
PT Freeport Indonesia              
Net income (loss) 24   28 164      
Investment owned, percent             81.00%
Net income (loss), FCX $ 20   $ 23 $ 133      
PT Freeport Indonesia | Forecast              
Investment owned, percent           48.76%  
PT-FI | PT Freeport Indonesia              
Investment owned, percent             19.00%
Lundin Mining Corporation | Freeport Cobalt | Held for sale              
Proceeds from transaction, percent 30.00%            
PT Freeport Indonesia | PT Indonesia Asahan Aluminium (Persero) (Inalum) [Member] | Forecast              
Investment owned, percent           26.24%  
PT Freeport Indonesia | PT Indonesia Papua Metal dan Mineral [Member] | Forecast              
Investment owned, percent           25.00%  
v3.19.3
Earnings per Share (Unaudited) Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Earnings Per Share [Abstract]        
Net (loss) income from continuing operations $ (235) $ 668 $ (234) $ 2,535
Net loss (income) from continuing operations attributable to noncontrolling interests 27 (108) (16) (399)
Undistributed earnings allocated to participating securities (3) (4) (3) (5)
Net (loss) income from continuing operations attributable to common stockholders (211) 556 (253) 2,131
Net income (loss) from discontinued operations attributable to common stockholders 1 (4) 2 (19)
Net (loss) income attributable to common stockholders $ (210) $ 552 $ (251) $ 2,112
Basic weighted-average shares of common stock outstanding 1,452 1,450 1,451 1,449
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) 0 8 0 9
Diluted weighted-average shares of common stock outstanding 1,452 1,458 1,451 1,458
Basic net (loss) income per share attributable to common stockholders:        
Continuing operations (in dollars per share) $ (0.15) $ 0.38 $ (0.17) $ 1.47
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, basic (in dollars per share) (0.15) 0.38 (0.17) 1.46
Diluted net (loss) income per share attributable to common stockholders:        
Continuing operations (in dollars per share) (0.15) 0.38 (0.17) 1.46
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, diluted (in dollars per share) $ (0.15) $ 0.38 $ (0.17) $ 1.45
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 10   11 2
Dilutive Securities Excluded from Computation of EPS Amount 43 38 42 35
v3.19.3
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Components of Inventories [Line Items]          
Total materials and supplies, net $ 1,619   $ 1,619   $ 1,528
Mill stockpiles, current 200   200   282
Leach stockpiles, current 1,102   1,102   1,171
Total current mill and leach stockpiles 1,302   1,302   1,453
Raw materials (primarily concentrate) 292   292   260
Work-in-process 79   79   192
Finished goods 1,142   1,142   1,326
Total product 1,513   1,513   1,778
Mill stockpiles, noncurrent 223   223   265
Leach stockpiles, noncurrent 1,077   1,077   1,049
Total long-term mill and leach stockpiles 1,300   1,300   1,314
Inventory obsolescence reserves 26   26   $ 24
Inventory Write-down $ 41 $ 0 100 $ 2  
Cobalt          
Components of Inventories [Line Items]          
Inventory Write-down     58    
Copper          
Components of Inventories [Line Items]          
Inventory Write-down     $ 41    
v3.19.3
Income Taxes (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosure [Abstract]        
Consolidated effective income tax rate (percent)     (302.00%) 38.00%
Schedule Of Income Taxes [Line Items]        
U.S. operations     $ 73 $ 2
International operations     (254) (1,545)
Total $ (91) $ (522) (181) $ (1,543)
Historical deferred tax adjustments     (49)  
Settlement of state income tax examination $ (24)   $ (24)  
v3.19.3
Debt and Equity (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 25, 2019
Aug. 15, 2019
Sep. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
May 02, 2019
Mar. 27, 2019
Dec. 31, 2018
Total Debt [Abstract]                    
Total debt     $ 9,919,000,000     $ 9,919,000,000       $ 11,141,000,000
Current portion of debt     (4,000,000)     (4,000,000)       (17,000,000)
Long-term debt, less current portion     9,915,000,000     9,915,000,000       11,124,000,000
Proceeds from repayment of debt   $ 1,187,000,000                
Net gain (loss) on exchanges and early extinguishment of debt     (21,000,000)   $ 0 (27,000,000) $ 8,000,000      
Interest costs     $ 163,000,000   $ 167,000,000 $ 508,000,000 $ 508,000,000      
Dividends declared per share of common stock (in dollars per share) $ 0.05   $ 0.05   $ 0.05 $ 0.15 $ 0.15      
Senior Notes due 2027, 5.00%                    
Total Debt [Abstract]                    
Debt   $ 600,000,000                
Stated interest rate   5.00%                
Senior Notes due 2029, 5.25%                    
Total Debt [Abstract]                    
Debt   $ 600,000,000                
Stated interest rate   5.25%                
Senior Notes due 2023, 6.875%                    
Total Debt [Abstract]                    
Stated interest rate   6.875%                
Senior Notes due 2021, 4.00%                    
Total Debt [Abstract]                    
Stated interest rate   4.00%                
Senior Notes due 2022, 3.55%                    
Total Debt [Abstract]                    
Stated interest rate   3.55%                
Property, Plant and Equipment [Member]                    
Total Debt [Abstract]                    
Interest costs capitalized     $ 40,000,000   $ 24,000,000 $ 107,000,000 $ 72,000,000      
Line of Credit [Member] | Cerro Verde [Member]                    
Total Debt [Abstract]                    
Total debt     825,000,000     825,000,000       1,023,000,000
Line of Credit [Member] | Letter of Credit [Member]                    
Total Debt [Abstract]                    
Letter of credit     13,000,000     13,000,000        
Revolving credit facility, availability     1,500,000,000     1,500,000,000        
Line of Credit [Member] | Revolving Credit Facility [Member]                    
Total Debt [Abstract]                    
Debt     0     0        
Revolving credit facility, availability     3,500,000,000     3,500,000,000        
Line of Credit [Member] | Revolving Credit Facility [Member] | Amended Credit Facility [Member]                    
Total Debt [Abstract]                    
Revolving credit facility, availability               $ 3,500,000,000    
Line of Credit [Member] | Revolving Credit Facility [Member] | Amended Credit Facility, Maturing April 20, 2024 [Member]                    
Total Debt [Abstract]                    
Revolving credit facility, availability               3,260,000,000    
Line of Credit [Member] | Revolving Credit Facility [Member] | Amended Credit Facility, Maturing April 20, 2023 [Member]                    
Total Debt [Abstract]                    
Revolving credit facility, availability               $ 240,000,000    
Senior Notes [Member]                    
Total Debt [Abstract]                    
Debt, principal     1,145,000,000     1,145,000,000        
Net gain (loss) on exchanges and early extinguishment of debt       $ (1,000,000)   21,000,000        
Repayments of credit facility       200,000,000            
Net Adjustments     32,000,000     32,000,000        
Book Value           1,177,000,000        
Redemption/Tender Value           1,198,000,000        
Senior Notes [Member] | 3.100% Senior Notes due March 2020 [Member]                    
Total Debt [Abstract]                    
Debt, principal                 $ 1,000,000,000.0  
Stated interest rate                 3.10%  
Net gain (loss) on exchanges and early extinguishment of debt       $ (5,000,000)            
Senior Notes [Member] | Senior Notes due 2023, 6.875%                    
Total Debt [Abstract]                    
Debt, principal     728,000,000     728,000,000        
Net gain (loss) on exchanges and early extinguishment of debt           6,000,000        
Net Adjustments     34,000,000     34,000,000        
Book Value           762,000,000        
Redemption/Tender Value           768,000,000        
Senior Notes [Member] | Senior Notes due 2021, 4.00%                    
Total Debt [Abstract]                    
Debt, principal     405,000,000     405,000,000        
Net gain (loss) on exchanges and early extinguishment of debt           15,000,000        
Net Adjustments     (2,000,000)     (2,000,000)        
Book Value           403,000,000        
Redemption/Tender Value           418,000,000        
Senior Notes [Member] | Senior Notes due 2023, 6.875%                    
Total Debt [Abstract]                    
Debt, principal     12,000,000     12,000,000        
Net gain (loss) on exchanges and early extinguishment of debt           0        
Net Adjustments     0     0        
Book Value           12,000,000        
Redemption/Tender Value           12,000,000        
Senior Notes [Member] | FCX [Member]                    
Total Debt [Abstract]                    
Total debt     8,600,000,000     8,600,000,000       9,594,000,000
Debentures [Member] | Freeport McMoRan Corporation [Member]                    
Total Debt [Abstract]                    
Total debt     357,000,000     357,000,000       358,000,000
Other Debt, Including Capital Leases and Short Term Borrowings [Member]                    
Total Debt [Abstract]                    
Total debt     $ 137,000,000     $ 137,000,000       $ 166,000,000
v3.19.3
Financial Instruments (Unrealized gains losses) (Details)
oz in Thousands, lb in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
lb
oz
$ / lb
$ / oz
$ / lb
Sep. 30, 2019
USD ($)
$ / lb
$ / oz
$ / lb
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
$ / lb
$ / oz
$ / lb
Sep. 30, 2018
USD ($)
Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $   $ (51) $ (118) $ (40) $ (279)
Commodity Contract [Member]          
Unrealized gains (losses):          
Derivative financial instruments | $   (2) 7 3 (12)
Hedged item – firm sales commitments | $   2 (7) (3) 12
Realized gains (losses):          
Matured derivative financial instruments | $   $ (8) (19) $ (9) (17)
Commodity Contract [Member] | Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 72        
Derivative, Average Forward Price 2.66 2.66   2.66  
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 1        
Derivative, Average Forward Price 2.65 2.65   2.65  
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Cost of Sales          
Realized gains (losses):          
Matured derivative financial instruments | $   $ 0 9 $ (3) 17
Copper | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $   $ (57) (93) $ (57) (242)
Copper | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 424        
Derivative, Average Forward Price 2.63 2.63   2.63  
Realized gains (losses):          
Derivative Average Market Price 2.59 2.59   2.59  
Copper | Long [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 97        
Derivative, Average Forward Price 2.63 2.63   2.63  
Realized gains (losses):          
Derivative Average Market Price 2.59 2.59   2.59  
Gold | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | oz 150        
Derivative, Average Forward Price | $ / oz 1,510 1,510   1,510  
Realized gains (losses):          
Derivative Average Market Price | $ / oz 1,491 1,491   1,491  
gold and other [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $   $ 6 $ (25) $ 17 $ (37)
Cobalt | Long [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 6        
Derivative, Average Forward Price 9.81 9.81   9.81  
Realized gains (losses):          
Derivative Average Market Price 12.18 12.18   12.18  
v3.19.3
Financial Instruments (Unsettled Derivatives) (Details)
oz in Thousands, lb in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
lb
oz
$ / lb
$ / oz
$ / lb
Sep. 30, 2019
USD ($)
$ / lb
$ / oz
$ / lb
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
$ / lb
$ / oz
$ / lb
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset $ 6 $ 6   $ 6   $ 23
Derivative Liability, Fair Value, Gross Liability 42 42   42   48
Derivative Asset, Fair Value, Gross Liability 1 1   1   7
Derivative Liability, Fair Value, Gross Asset 1 1   1   7
Derivative Asset 5 5   5   16
Derivative Liability 41 41   41   41
Trade accounts receivable [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset 0 0   0   3
Derivative Liability 17 17   17   24
Accounts Payable and Accrued Liabilities            
Derivatives, Fair Value [Line Items]            
Derivative Asset 5 5   5   13
Derivative Liability 24 24   24   17
Commodity Contract [Member]            
Derivatives, Fair Value [Line Items]            
Derivative, Gain (Loss) on Derivative, Net   (8) $ (19) (9) $ (17)  
Derivative Asset, Fair Value, Gross Asset 0 0   0   0
Derivative Liability, Fair Value, Gross Liability 6 6   6   9
Derivative Asset, Fair Value, Gross Liability 0 0   0   0
Derivative Liability, Fair Value, Gross Asset 0 0   0   0
Derivative Asset 0 0   0   0
Derivative Liability 6 6   6   9
Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset 6 6   6   23
Derivative Liability, Fair Value, Gross Liability 36 36   36   39
Derivative Asset, Fair Value, Gross Liability 1 1   1   7
Derivative Liability, Fair Value, Gross Asset 1 1   1   7
Derivative Asset 5 5   5   16
Derivative Liability 35 35   35   32
Designated as Hedging Instrument [Member] | Commodity Contract [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset $ 0 $ 0   $ 0   0
Derivative, Nonmonetary Notional Amount, Mass | lb 72          
Derivative, Average Forward Price | $ / lb 2.66 2.66   2.66    
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset $ 6 $ 6   $ 6   23
Derivative Liability, Fair Value, Gross Liability $ 36 $ 36   $ 36   39
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative, Nonmonetary Notional Amount, Mass | lb 1          
Derivative, Average Forward Price | $ / lb 2.65 2.65   2.65    
Future [Member] | Not Designated as Hedging Instrument [Member] | FMC's Copper Futures and Swap Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Liability, Fair Value, Gross Liability $ 6 $ 6   $ 6   $ 9
Copper | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / lb 2.59 2.59   2.59    
Derivative, Nonmonetary Notional Amount, Mass | lb 424          
Derivative, Average Forward Price | $ / lb 2.63 2.63   2.63    
Copper | Long [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / lb 2.59 2.59   2.59    
Derivative, Nonmonetary Notional Amount, Mass | lb 97          
Derivative, Average Forward Price | $ / lb 2.63 2.63   2.63    
Gold | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / oz 1,491 1,491   1,491    
Derivative, Nonmonetary Notional Amount, Mass | oz 150          
Derivative, Average Forward Price | $ / oz 1,510 1,510   1,510    
Sales [Member] | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   $ (51) (118) $ (40) (279)  
Sales [Member] | Copper | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   (57) (93) (57) (242)  
Sales [Member] | gold and other [Member] | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   6 (25) 17 (37)  
Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative, Gain (Loss) on Derivative, Net   $ 0 $ 9 $ (3) $ 17  
v3.19.3
Financial Instruments (Derivative) (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Dec. 31, 2017
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 2,247 $ 4,217    
Restricted Cash and Cash Equivalents, Current 100 110    
Restricted Cash and Cash Equivalents, Noncurrent 165 128    
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows 2,512 4,455 $ 4,823 $ 4,710
Credit Derivative, Maximum Exposure, Undiscounted 5      
Bank Time Deposits [Member]        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 1,300 $ 2,300    
v3.19.3
Fair Value Measurement (Fair Value Measurement Inputs) (Details)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
$ / bbl
Dec. 31, 2016
USD ($)
$ / bbl
Nov. 30, 2016
USD ($)
$ / lb
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current $ 672       $ 422    
Other assets 1,966       2,172    
Proceeds from Sale of Other Assets, contingent consideration 102 $ 10          
Derivative Liability, Fair Value, Gross Liability 42       48    
Investment securities (current and long-term):              
Marketable Securities 0            
Derivatives:              
Derivative Asset 5       16    
Derivatives: [Abstract]              
Derivative Liability 41       41    
Fair Value Measured at Net Asset Value Per Share [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 0       0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 27       25    
Trust Assets Fair Value Disclosure 59       55    
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 0       0    
Long-term debt, including current portion 0       0    
Level 1              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 0       0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 4       4    
Trust Assets Fair Value Disclosure 4       5    
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 5       7    
Long-term debt, including current portion 0       0    
Level 2              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 0       0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 0       0    
Trust Assets Fair Value Disclosure 133       121    
Derivatives:              
Derivative Asset 73       96    
Derivatives: [Abstract]              
Derivative Liability 37       41    
Long-term debt, including current portion 9,872       10,238    
Level 3              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 110       127    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 0       0    
Trust Assets Fair Value Disclosure 0       0    
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 0       0    
Long-term debt, including current portion 0       0    
Estimate of Fair Value Measurement [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 110       127    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 31       29    
Trust Assets Fair Value Disclosure 196       181    
Derivatives:              
Derivative Asset 73       96    
Derivatives: [Abstract]              
Derivative Liability 42       48    
Long-term debt, including current portion 9,872       10,238    
Carrying Amount, Fair Value Disclosure [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 128       143    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 31       29    
Trust Assets Fair Value Disclosure 196       181    
Derivatives:              
Derivative Asset 73       96    
Derivatives: [Abstract]              
Derivative Liability 42       48    
Long-term debt, including current portion 9,919       11,141    
Embedded Derivative Financial Instruments [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability 36       39    
Derivatives:              
Derivative Asset 5       16    
Derivatives: [Abstract]              
Derivative Liability 35       32    
Embedded Derivative Financial Instruments [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 0       0    
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 6       23    
Derivatives: [Abstract]              
Derivative Liability 36       39    
Embedded Derivative Financial Instruments [Member] | Level 3              
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 0       0    
Embedded Derivative Financial Instruments [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset 6       23    
Derivatives: [Abstract]              
Derivative Liability 36       39    
Embedded Derivative Financial Instruments [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset 6       23    
Derivatives: [Abstract]              
Derivative Liability 36       39    
Commodity Contract [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability 6       9    
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 6       9    
Commodity Contract [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives: [Abstract]              
Derivative Liability 0       0    
Commodity Contract [Member] | Level 1              
Derivatives: [Abstract]              
Derivative Liability 5       7    
Commodity Contract [Member] | Level 2              
Derivatives: [Abstract]              
Derivative Liability 1       2    
Commodity Contract [Member] | Level 3              
Derivatives: [Abstract]              
Derivative Liability 0       0    
Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives: [Abstract]              
Derivative Liability 6       9    
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives: [Abstract]              
Derivative Liability 6       9    
Africa and onshore California [Member] | Commodity Contract [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset 0       0    
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 67       73    
Africa and onshore California [Member] | Commodity Contract [Member] | Level 3              
Derivatives:              
Derivative Asset 0       0    
Africa and onshore California [Member] | Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset 67       73    
Africa and onshore California [Member] | Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset 67       73    
U.S. core fixed income fund [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Marketable Securities 27       25    
Trust Assets Fair Value Disclosure 59       55    
U.S. core fixed income fund [Member] | Level 1              
Investment securities (current and long-term):              
Marketable 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):              
Marketable 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):              
Marketable Securities 0       0    
Trust Assets Fair Value Disclosure 0       0    
U.S. core fixed income fund [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Marketable Securities 27       25    
Trust Assets Fair Value Disclosure 59       55    
U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Marketable Securities 27       25    
Trust Assets Fair Value Disclosure 59       55    
Equity securities | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Marketable Securities         0    
Equity securities | Level 1              
Investment securities (current and long-term):              
Marketable Securities 4       4    
Equity securities | Level 2              
Investment securities (current and long-term):              
Marketable Securities 0       0    
Equity securities | Level 3              
Investment securities (current and long-term):              
Marketable Securities 0       0    
Equity securities | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Marketable Securities 4       4    
Equity securities | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Marketable Securities 4       4    
Government bonds | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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 | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 38       36    
Government bonds | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 38       36    
Corporate bonds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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 35       28    
Corporate bonds [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
Corporate bonds [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 35       28    
Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 35       28    
Government mortgage-backed securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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 41       38    
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] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 41       38    
Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 41       38    
Asset-backed securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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 12       11    
Asset-backed securities [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
Asset-backed securities [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 12       11    
Asset-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 12       11    
Money market funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
Money market funds [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 4       5    
Money market funds [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
Money market funds [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
Money market funds [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 4       5    
Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 4       5    
Collateralized Mortgage Backed Securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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 6       7    
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] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 6       7    
Collateralized Mortgage Backed Securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 6       7    
Municipal bonds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 0       0    
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] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 1       1    
Municipal bonds [Member] | Carrying Amount, Fair Value Disclosure [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 Assets, Current 100       109    
Other assets 164       126    
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability 36       39    
TF Holdings Limited | Disposed of by sale              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current 59            
Other assets         57    
Discontinued Operation, Contingent Receivable             $ 120
Copper | TF Holdings Limited | Disposed of by sale              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable             60
Cobalt | TF Holdings Limited | Disposed of by sale              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable             $ 60
Derivatives:              
Contingent consideration, reference threshold (in us dollars per pound) | $ / lb             20
Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other assets 8       16    
Discontinued Operation, Contingent Receivable           $ 150  
Proceeds from Sale of Other Assets, contingent consideration 50            
Derivatives:              
Discontinued Operation, Contingent Receivable, Per Year         50    
Freeport-McMoRan Oil & Gas | Deepwater Gulf of Mexico Interests [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current 18       27    
Other assets $ 110       $ 116    
Discontinued Operation, Contingent Receivable           $ 150  
Forecast | Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Derivatives:              
Discontinued Operation, Contingent Receivable, Per Year     $ 50 $ 50      
Crude Oil [Member] | Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Derivatives:              
Contingent consideration, reference threshold (in us dollars per pound) | $ / bbl         70 70  
Maximum [Member] | Copper | TF Holdings Limited | Disposed of by sale              
Derivatives:              
Contingent consideration, reference threshold (in us dollars per pound) | $ / lb             3.50
v3.19.3
Fair Value Measurement (Unobservable inputs) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Other Assets, Current $ 672 $ 422  
Other Assets, Noncurrent 1,966 2,172  
Gulf of Mexico Contingent Consideration [Member]      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements (16)    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Fair value at January 1, 2019 127    
Net unrealized loss related to assets still held at the end of the period (1)    
Fair value at September 30, 2019 110    
Onshore California [Member] | Freeport-McMoRan Oil & Gas      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Contingent Receivable     $ 150
Other Assets, Noncurrent $ 8 $ 16  
v3.19.3
Contingencies and Commitments (Unaudited) - Litigation (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2019
Sep. 30, 2019
Dec. 31, 2023
Mar. 13, 2019
Settled litigation | Louisiana Parishes Coastal Erosion Cases | FCX affiliates        
Loss Contingencies [Line Items]        
Litigation settlement, initial payment   $ 15,000    
Settled litigation | Louisiana Parishes Coastal Erosion Cases | FCX affiliates | Subsequent event        
Loss Contingencies [Line Items]        
Litigation settlement, agreed to pay $ 23,500      
Litigation settlement, agreed to pay, initial payment $ 15,000      
Settled litigation | Louisiana Parishes Coastal Erosion Cases | FCX affiliates | Subsequent event | Forecast        
Loss Contingencies [Line Items]        
Litigation settlement, agreed to pay, yearly installment payment     $ 4,250  
Pending litigation | Asbestos contamination in talc-based personal care products | Asbestos contamination | Johnson & Johnson and Cyprus Mines        
Loss Contingencies [Line Items]        
Loss contingency, estimate of possible loss       $ 29,000
Pending litigation | Asbestos contamination in talc-based personal care products | Asbestos contamination | Cyprus Mines        
Loss Contingencies [Line Items]        
Loss contingency accrual   $ 5,000    
Loss contingency, estimate of possible loss       $ 2,000
v3.19.3
Contingencies and Commitments (Unaudited) - Tax and Other Matters (Details)
T in Thousands, $ in Millions, Rp in Billions
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 13 Months Ended
Feb. 28, 2021
USD ($)
Feb. 28, 2021
IDR (Rp)
Oct. 31, 2019
USD ($)
Oct. 31, 2019
IDR (Rp)
May 31, 2019
USD ($)
May 31, 2019
IDR (Rp)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Mar. 08, 2020
T
Jan. 01, 2023
Mar. 31, 2019
Dec. 21, 2018
Loss Contingencies [Line Items]                                
Production and delivery             $ 2,665   $ 3,069 $ 8,584 $ 8,790          
Forecast                                
Loss Contingencies [Line Items]                                
Concentrate, export quota, original | T                         180      
Concentrate, export quota, revised | T                         680      
Surface Water Taxes, Papua, Indonesia                                
Loss Contingencies [Line Items]                                
Production and delivery               $ 28                
Surface Water Taxes, Papua, Indonesia | PT Freeport Indonesia | Annual surface water tax payments                                
Loss Contingencies [Line Items]                                
Payments for taxes                   $ 15            
Surface Water Taxes, Papua, Indonesia | PT Freeport Indonesia | Tax Authority, In Papau, Indonesia | Penalties                                
Loss Contingencies [Line Items]                                
Litigation settlement, agreed to pay         $ 99 Rp 1,394.0                    
Loss contingency, offer                       $ 69        
Surface Water Taxes, Papua, Indonesia | PT Freeport Indonesia | Tax Authority, In Papau, Indonesia | Penalties | Forecast                                
Loss Contingencies [Line Items]                                
Payments for legal settlements $ 49 Rp 685.5                            
PT Freeport Indonesia                                
Loss Contingencies [Line Items]                                
Investment owned, percent                               81.00%
PT Freeport Indonesia | Forecast                                
Loss Contingencies [Line Items]                                
Investment owned, percent                           48.76%    
PT Freeport Indonesia | PT Smelting                                
Loss Contingencies [Line Items]                                
Investment owned, percent                             25.00%  
Subsequent event | Surface Water Taxes, Papua, Indonesia | PT Freeport Indonesia | Tax Authority, In Papau, Indonesia | Penalties                                
Loss Contingencies [Line Items]                                
Payments for legal settlements     $ 50 Rp 708.5                        
v3.19.3
Business Segments (Product Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenue from External Customer [Line Items]        
Treatment And Refining Charges Included In Copper Concentrates Revenues $ (87) $ (162) $ (292) $ (433)
Royalty Expense (24) (75) (73) (217)
Export duties expense (174) (52) (201) (153)
Revenue from Contract with Customer, Excluding Assessed Tax 3,204 5,026 10,531 15,223
Revenues 3,153 4,908 10,491 14,944
Sales [Member] | Not Designated as Hedging Instrument [Member]        
Revenue from External Customer [Line Items]        
Matured derivative financial instruments (51) (118) (40) (279)
Copper In Concentrates [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 952 1,743 3,251 5,093
Copper Cathode [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 878 1,015 2,696 3,383
Refined Copper Products [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 537 561 1,560 1,899
Purchased Copper [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 210 256 872 776
Gold        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 415 1,073 1,111 2,814
Molybdenum [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 295 286 910 882
Other Products Or Services [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 202 $ 381 $ 697 $ 1,179
PT Freeport Indonesia Export Duty Dispute [Member]        
Revenue from External Customer [Line Items]        
Export duties expense $ (166)      
v3.19.3
Business Segments (Segment Reporting) (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
segment
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting Information [Line Items]          
Number of Operating Segments | segment     4    
Deferred Intercompany Profit, Percentage     25.00%    
Revenues $ 3,153 $ 4,908 $ 10,491 $ 14,944  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (2,665) (3,069) (8,584) (8,790)  
Cost, Depreciation, Amortization and Depletion 322 458 1,021 1,351  
Metals inventory adjustments 41 0 100 2  
Selling, general and administrative expenses (106) (101) (315) (341)  
Mining exploration and research expenses 25 27 83 72  
Environmental obligations and shutdown costs 20 8 85 76  
Net gain on sales of assets 12 (70) (13) (126)  
Operating (loss) income (38) 1,315 316 4,438  
Interest expense, net (123) (143) (401) (436)  
Provision for (benefit from) income taxes 91 522 181 1,543  
Total assets 40,943 37,749 40,943 37,749 $ 42,216
Capital expenditures 666 507 1,917 1,391  
Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 80 32 272 88  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (896) (789) (2,463) (2,367)  
Cost, Depreciation, Amortization and Depletion 91 88 261 274  
Metals inventory adjustments 38   39 2  
Selling, general and administrative expenses (2) (1) (4) (5)  
Mining exploration and research expenses 0 1 1 2  
Environmental obligations and shutdown costs 0 2 0 2  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 113 205 526 989  
Interest expense, net (1) (1) (3) (3)  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 7,948 7,291 7,948 7,291  
Capital expenditures 224 181 641 413  
Operating Segments | South America          
Segment Reporting Information [Line Items]          
Revenues 621 809 2,136 2,474  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (528) (624) (1,648) (1,745)  
Cost, Depreciation, Amortization and Depletion 109 142 342 402  
Metals inventory adjustments 2   2 0  
Selling, general and administrative expenses (2) (3) (6) (7)  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 45 111 400 593  
Interest expense, net (25) (15) (79) (48)  
Provision for (benefit from) income taxes 33 42 149 222  
Total assets 10,223 10,322 10,223 10,322  
Capital expenditures 68 50 176 188  
Corporate And Eliminations          
Segment Reporting Information [Line Items]          
Revenues 423 573 1,350 1,777  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) 775 716 2,173 2,626  
Cost, Depreciation, Amortization and Depletion 20 18 59 53  
Metals inventory adjustments 0   58 0  
Selling, general and administrative expenses (66) (63) (199) (217)  
Mining exploration and research expenses 25 26 82 70  
Environmental obligations and shutdown costs 20 6 85 74  
Net gain on sales of assets 12 (70) (13) (126)  
Operating (loss) income (168) (49) (601) (158)  
Interest expense, net (91) (120) (300) (367)  
Provision for (benefit from) income taxes 67 56 39 66  
Total assets 3,623 5,445 3,623 5,445  
Capital expenditures 25 22 76 76  
Intersegment          
Segment Reporting Information [Line Items]          
Revenues 0 0 0 0  
Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 1,060 1,054 3,022 3,553  
Intersegment | South America          
Segment Reporting Information [Line Items]          
Revenues 65 71 262 273  
PT Smelting | Affiliated Entity [Member]          
Segment Reporting Information [Line Items]          
Revenues 475 827 1,400 2,100  
Morenci [Member] | Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 61 30 89 58  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (377) (304) (1,020) (892)  
Cost, Depreciation, Amortization and Depletion 45 43 128 133  
Metals inventory adjustments 1   1 0  
Selling, general and administrative expenses (1) (1) (2) (3)  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 99 149 349 666  
Interest expense, net 0 (1) (2) (3)  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 2,943 2,826 2,943 2,826  
Capital expenditures 61 63 172 151  
Morenci [Member] | Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 462 467 1,411 1,636  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 19 2 183 30  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (519) (485) (1,443) (1,475)  
Cost, Depreciation, Amortization and Depletion 46 45 133 141  
Metals inventory adjustments 37   38 2  
Selling, general and administrative expenses (1) 0 (2) (2)  
Mining exploration and research expenses 0 1 1 2  
Environmental obligations and shutdown costs 0 2 0 2  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 14 56 177 323  
Interest expense, net (1) 0 (1) 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 5,005 4,465 5,005 4,465  
Capital expenditures 163 118 469 262  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | South America          
Segment Reporting Information [Line Items]          
Revenues 117 122 343 443  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (111) (105) (337) (354)  
Cost, Depreciation, Amortization and Depletion 16 20 48 66  
Metals inventory adjustments 0   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 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income (10) (3) (42) 23  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 4 5 (10) 15  
Total assets 1,723 1,709 1,723 1,709  
Capital expenditures 7 3 16 10  
Other Individually Immaterial Operating Segments [Member] | Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 598 587 1,611 1,917  
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 504 687 1,793 2,031  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (417) (519) (1,311) (1,391)  
Cost, Depreciation, Amortization and Depletion 93 122 294 336  
Metals inventory adjustments 2   2 0  
Selling, general and administrative expenses (2) (3) (6) (7)  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 55 114 442 570  
Interest expense, net (25) (15) (79) (48)  
Provision for (benefit from) income taxes 29 37 159 207  
Total assets 8,500 8,613 8,500 8,613  
Capital expenditures 61 47 160 178  
Cerro Verde [Member] | Intersegment | South America          
Segment Reporting Information [Line Items]          
Revenues 65 71 262 273  
Grasberg Segment [Member]          
Segment Reporting Information [Line Items]          
Capital expenditures     992 695  
Grasberg Segment [Member] | Operating Segments | Indonesia          
Segment Reporting Information [Line Items]          
Revenues 488 1,703 1,776 4,863  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (399) (522) (1,509) (1,404)  
Cost, Depreciation, Amortization and Depletion 77 181 281 534  
Metals inventory adjustments 0   0 0  
Selling, general and administrative expenses (31) (29) (91) (96)  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income (19) 1,032 (48) 2,943  
Interest expense, net (1) 0 (2) 0  
Provision for (benefit from) income taxes (8) 424 (9) 1,254  
Total assets 16,447 11,764 16,447 11,764  
Capital expenditures 334 246 992 695  
Grasberg Segment [Member] | Intersegment | Indonesia          
Segment Reporting Information [Line Items]          
Revenues 0 61 57 114  
Molybdenum [Member]          
Segment Reporting Information [Line Items]          
Capital expenditures     11 6  
Molybdenum [Member] | Operating Segments          
Segment Reporting Information [Line Items]          
Revenues 0 0 0 0  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (85) (76) (234) (214)  
Cost, Depreciation, Amortization and Depletion 16 20 50 60  
Metals inventory adjustments 1   1 0  
Selling, general and administrative expenses 0 0 0 0  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income (12) 5 5 33  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 1,786 1,808 1,786 1,808  
Capital expenditures 5 4 11 6  
Molybdenum [Member] | Intersegment          
Segment Reporting Information [Line Items]          
Revenues 90 101 290 307  
Rod and Refining Segment [Member] | Operating Segments          
Segment Reporting Information [Line Items]          
Revenues 1,104 1,212 3,403 3,984  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (1,111) (1,215) (3,415) (3,992)  
Cost, Depreciation, Amortization and Depletion 2 3 7 8  
Metals inventory adjustments 0   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 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income (1) 2 (1) 8  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 236 284 236 284  
Capital expenditures 1 1 3 3  
Rod and Refining Segment [Member] | Intersegment          
Segment Reporting Information [Line Items]          
Revenues 8 8 18 24  
Atlantic Copper Smelting and Refining Segment [Member] | Operating Segments          
Segment Reporting Information [Line Items]          
Revenues 437 579 1,554 1,758  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (421) (559) (1,488) (1,694)  
Cost, Depreciation, Amortization and Depletion 7 6 21 20  
Metals inventory adjustments 0   0 0  
Selling, general and administrative expenses (5) (5) (15) (16)  
Mining exploration and research expenses 0 0 0 0  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating (loss) income 4 9 35 30  
Interest expense, net (5) (7) (17) (18)  
Provision for (benefit from) income taxes (1) 0 2 1  
Total assets 680 835 680 835  
Capital expenditures 9 3 18 10  
Atlantic Copper Smelting and Refining Segment [Member] | Intersegment          
Segment Reporting Information [Line Items]          
Revenues 0 0 5 2  
Corporate And Eliminations | Intersegment          
Segment Reporting Information [Line Items]          
Revenues $ (1,223) $ (1,295) $ (3,654) $ (4,273)  
v3.19.3
Guarantor Financial Statements (Details)
Sep. 30, 2019
FM O&G LLC Guarantor [Member]  
Condensed Financial Statements, Captions [Line Items]  
Noncontrolling Interest, Ownership Percentage by Parent 10000.00%
v3.19.3
Guarantor Financial Statements (Unaudited) Condensed Consolidating Balance Sheets (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
ASSETS            
Current assets, other than assets held-for-sale $ 8,347   $ 10,720      
Property, plant, equipment and mine development costs, net 29,330   28,010      
Investments in consolidated subsidiaries 0   0      
Other assets 3,266   3,486      
Total assets 40,943   42,216 $ 37,749    
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 3,381   3,329      
Long-term debt, less current portion 9,915   11,124      
Deferred income taxes 4,245   4,032      
Environmental and asset retirement obligations, less current portion 3,558   3,609      
Investments in consolidated subsidiaries 0   0      
Other liabilities 2,302   2,230      
Total liabilities 23,401   24,324      
Equity:            
Stockholders' equity 9,444   9,798      
Noncontrolling interests 8,098   8,094      
Total equity 17,542 $ 17,817 17,892 $ 13,454 $ 12,842 $ 11,296
Total liabilities and equity 40,943   42,216      
Eliminations [Member]            
ASSETS            
Current assets, other than assets held-for-sale (603)   (585)      
Property, plant, equipment and mine development costs, net 7   0      
Investments in consolidated subsidiaries (17,523)   (19,064)      
Other assets (1,099)   (635)      
Total assets (19,218)   (20,284)      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale (635)   (617)      
Long-term debt, less current portion (11,903)   (11,103)      
Deferred income taxes 0   0      
Environmental and asset retirement obligations, less current portion 0   0      
Investments in consolidated subsidiaries (11,467)   (11,091)      
Other liabilities (3,488)   (3,486)      
Total liabilities (27,493)   (26,297)      
Equity:            
Stockholders' equity 2,809   601      
Noncontrolling interests 5,466   5,412      
Total equity 8,275   6,013      
Total liabilities and equity (19,218)   (20,284)      
FCX Issuer [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 46   309      
Property, plant, equipment and mine development costs, net 18   19      
Investments in consolidated subsidiaries 17,523   19,064      
Other assets 1,340   880      
Total assets 18,927   20,272      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 312   245      
Long-term debt, less current portion 8,600   9,594      
Deferred income taxes 498   524      
Environmental and asset retirement obligations, less current portion 0   0      
Investments in consolidated subsidiaries 0   0      
Other liabilities 73   111      
Total liabilities 9,483   10,474      
Equity:            
Stockholders' equity 9,444   9,798      
Noncontrolling interests 0   0      
Total equity 9,444   9,798      
Total liabilities and equity 18,927   20,272      
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 606   620      
Property, plant, equipment and mine development costs, net 5   7      
Investments in consolidated subsidiaries 0   0      
Other assets 17   23      
Total assets 628   650      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 42   34      
Long-term debt, less current portion 7,215   6,984      
Deferred income taxes 0   0      
Environmental and asset retirement obligations, less current portion 237   227      
Investments in consolidated subsidiaries 630   578      
Other liabilities 3,341   3,340      
Total liabilities 11,465   11,163      
Equity:            
Stockholders' equity (10,837)   (10,513)      
Noncontrolling interests 0   0      
Total equity (10,837)   (10,513)      
Total liabilities and equity 628   650      
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 8,298   10,376      
Property, plant, equipment and mine development costs, net 29,300   27,984      
Investments in consolidated subsidiaries 0   0      
Other assets 3,008   3,218      
Total assets 40,606   41,578      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 3,662   3,667      
Long-term debt, less current portion 6,003   5,649      
Deferred income taxes 3,747   3,508      
Environmental and asset retirement obligations, less current portion 3,321   3,382      
Investments in consolidated subsidiaries 10,837   10,513      
Other liabilities 2,376   2,265      
Total liabilities 29,946   28,984      
Equity:            
Stockholders' equity 8,028   9,912      
Noncontrolling interests 2,632   2,682      
Total equity 10,660   12,594      
Total liabilities and equity $ 40,606   $ 41,578      
v3.19.3
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenues $ 3,153 $ 4,908 $ 10,491 $ 14,944
Total costs and expenses 3,191 3,593 10,175 10,506
Operating income (loss) (38) 1,315 316 4,438
Interest expense, net (123) (143) (401) (436)
Other Nonoperating Income (Expense) 12 14 25 71
Net (loss) gain on early extinguishment of debt (21) 0 (27) 8
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (149) 1,186 (60) 4,073
Provision for income taxes (91) (522) (181) (1,543)
Equity in affiliated companies’ net earnings (losses) 5 4 7 5
Net (loss) income from continuing operations (235) 668 (234) 2,535
Net income (loss) from discontinued operations 1 (4) 2 (19)
Net income (234) 664 (232) 2,516
Net loss (income) from continuing operations attributable to noncontrolling interests 27 (108) (16) (399)
Net (loss) income attributable to common stockholders (207) 556 (248) 2,117
Other comprehensive income (loss) 12 11 35 34
Total comprehensive income (loss) (195) 567 (213) 2,151
Eliminations [Member]        
Revenues 0 0 0 0
Total costs and expenses (7) 0 (7) (10)
Operating income (loss) 7 0 7 10
Interest expense, net 133 125 407 350
Other Nonoperating Income (Expense) 28 (125) (46) (350)
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings 168 0 368 10
Provision for income taxes (2) 0 (2) (2)
Equity in affiliated companies’ net earnings (losses) 191 (656) 268 (2,208)
Net (loss) income from continuing operations 357 (656) 634 (2,200)
Net income (loss) from discontinued operations 0 0 0 0
Net income 357 (656) 634 (2,200)
Net loss (income) from continuing operations attributable to noncontrolling interests 5 (61) 4 (179)
Net (loss) income attributable to common stockholders 362 (717) 638 (2,379)
Other comprehensive income (loss) (12) (11) (35) (34)
Total comprehensive income (loss) 350 (728) 603 (2,413)
FCX Issuer [Member] | Reportable Legal Entities [Member]        
Revenues 0 0 0 0
Total costs and expenses 5 7 22 20
Operating income (loss) (5) (7) (22) (20)
Interest expense, net (79) (93) (252) (294)
Other Nonoperating Income (Expense) (52) 124 12 357
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (136) 24 (262) 43
Provision for income taxes (26) (188) (34) (282)
Equity in affiliated companies’ net earnings (losses) (45) 720 48 2,356
Net (loss) income from continuing operations (207) 556 (248) 2,117
Net income (loss) from discontinued operations 0 0 0 0
Net income (207) 556 (248) 2,117
Net loss (income) from continuing operations attributable to noncontrolling interests 0 0 0 0
Net (loss) income attributable to common stockholders (207) 556 (248) 2,117
Other comprehensive income (loss) 12 11 35 34
Total comprehensive income (loss) (195) 567 (213) 2,151
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]        
Revenues 11 15 27 46
Total costs and expenses 28 (2) 54 (10)
Operating income (loss) (17) 17 (27) 56
Interest expense, net (79) (79) (247) (219)
Other Nonoperating Income (Expense) 0 0 0 2
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (96) (62) (274) (161)
Provision for income taxes 22 11 62 33
Equity in affiliated companies’ net earnings (losses) (36) (6) (52) (10)
Net (loss) income from continuing operations (110) (57) (264) (138)
Net income (loss) from discontinued operations 0 0 0 0
Net income (110) (57) (264) (138)
Net loss (income) from continuing operations attributable to noncontrolling interests 0 0 0 0
Net (loss) income attributable to common stockholders (110) (57) (264) (138)
Other comprehensive income (loss) 0 0 0 0
Total comprehensive income (loss) (110) (57) (264) (138)
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
Revenues 3,142 4,893 10,464 14,898
Total costs and expenses 3,165 3,588 10,106 10,506
Operating income (loss) (23) 1,305 358 4,392
Interest expense, net (98) (96) (309) (273)
Other Nonoperating Income (Expense) 36 15 59 62
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (85) 1,224 108 4,181
Provision for income taxes (85) (345) (207) (1,292)
Equity in affiliated companies’ net earnings (losses) (105) (54) (257) (133)
Net (loss) income from continuing operations (275) 825 (356) 2,756
Net income (loss) from discontinued operations 1 (4) 2 (19)
Net income (274) 821 (354) 2,737
Net loss (income) from continuing operations attributable to noncontrolling interests 22 (47) (20) (220)
Net (loss) income attributable to common stockholders (252) 774 (374) 2,517
Other comprehensive income (loss) 12 11 35 34
Total comprehensive income (loss) $ (240) $ 785 $ (339) $ 2,551
v3.19.3
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year $ 2,512 $ 4,823 $ 2,512 $ 4,823 $ 4,455 $ 4,710
Cash flow from operating activities:            
Net cash provided by operating activities     1,312 3,925    
Cash flow from investing activities:            
Capital expenditures (666) (507) (1,917) (1,391)    
Intercompany loans     0 0    
Dividends from (investments in) consolidated subsidiaries     (2) 0    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     94 (81)    
Net cash used in investing activities     (1,825) (1,472)    
Cash flow from financing activities:            
Proceeds from debt     1,681 475    
Repayments of debt     (2,917) (2,410)    
Intercompany loans     0 0    
Cash dividends paid and contributions received, net     (164) (386)    
Other, net     (30) (19)    
Net cash used in financing activities     (1,430) (2,340)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     (1,943) 113    
Eliminations [Member]            
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 0 0 0 0 0 0
Cash flow from operating activities:            
Net cash provided by operating activities     0 0    
Cash flow from investing activities:            
Capital expenditures     0 0    
Intercompany loans     801 558    
Dividends from (investments in) consolidated subsidiaries     (1,769) (2,791)    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     0 0    
Net cash used in investing activities     (968) (2,233)    
Cash flow from financing activities:            
Proceeds from debt     0 0    
Repayments of debt     0 0    
Intercompany loans     (802) (558)    
Cash dividends paid and contributions received, net     1,750 2,775    
Other, net     20 16    
Net cash used in financing activities     968 2,233    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     0 0    
Reportable Legal Entities [Member] | FCX Issuer [Member]            
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 0 0 0 0 0 0
Cash flow from operating activities:            
Net cash provided by operating activities     352 (181)    
Cash flow from investing activities:            
Capital expenditures     0 (2)    
Intercompany loans     (801) (558)    
Dividends from (investments in) consolidated subsidiaries     1,697 2,726    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     (1) 4    
Net cash used in investing activities     895 2,170    
Cash flow from financing activities:            
Proceeds from debt     1,200 0    
Repayments of debt     (2,202) (1,826)    
Intercompany loans     0 0    
Cash dividends paid and contributions received, net     (218) (145)    
Other, net     (27) (18)    
Net cash used in financing activities     (1,247) (1,989)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     0 0    
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]            
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 0 0 0 0 0 7
Cash flow from operating activities:            
Net cash provided by operating activities     (326) (285)    
Cash flow from investing activities:            
Capital expenditures     (4) 0    
Intercompany loans     0 0    
Dividends from (investments in) consolidated subsidiaries     0 0    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     98 3    
Net cash used in investing activities     94 3    
Cash flow from financing activities:            
Proceeds from debt     0 0    
Repayments of debt     0 (52)    
Intercompany loans     232 327    
Cash dividends paid and contributions received, net     0 0    
Other, net     0 0    
Net cash used in financing activities     232 275    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     0 (7)    
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]            
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year $ 2,512 $ 4,823 2,512 4,823 $ 4,455 $ 4,703
Cash flow from operating activities:            
Net cash provided by operating activities     1,286 4,391    
Cash flow from investing activities:            
Capital expenditures     (1,913) (1,389)    
Intercompany loans     0 0    
Dividends from (investments in) consolidated subsidiaries     70 65    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     (3) (88)    
Net cash used in investing activities     (1,846) (1,412)    
Cash flow from financing activities:            
Proceeds from debt     481 475    
Repayments of debt     (715) (532)    
Intercompany loans     570 231    
Cash dividends paid and contributions received, net     (1,696) (3,016)    
Other, net     (23) (17)    
Net cash used in financing activities     (1,383) (2,859)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     $ (1,943) $ 120    
v3.19.3
New Accounting Standard - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Dec. 31, 2018
Jan. 01, 2019
Lessee Disclosure [Abstract]        
Lease right-of-use assets $ 241 $ 241   $ 243
Lease liability 256 256   $ 243
Lease costs $ 30 103 $ 80  
Lease payments   $ 32    
Lease weighted-average discount rate 5.60% 5.60%    
Lease,weighted average remaining lease term 8 years 6 months 8 years 6 months    
v3.19.3
New Accounting Standard - Leases Presented in Balance Sheet (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Jan. 01, 2019
Assets and Liabilities, Lessee [Abstract]    
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net) $ 241 $ 243
Short-term lease liabilities (included in accounts payable and accrued liabilities) 45  
Long-term lease liabilities (included in other liabilities) 211  
Total lease liabilities $ 256 $ 243
v3.19.3
New Accounting Standard - Operating Lease Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Dec. 31, 2018
Lease, Cost [Abstract]      
Operating leases $ 11 $ 44  
Variable and short-term leases 19 59  
Total operating lease costs $ 30 $ 103 $ 80
v3.19.3
New Accounting Standard - Future Minimum Payments for Leases (Details) - USD ($)
$ in Millions
Sep. 30, 2019
Jan. 01, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
Remaining three months of 2019 $ 14  
2020 55  
2021 42  
2022 35  
2023 31  
Thereafter 155  
Total payments 332  
Less amount representing interest (76)  
Total lease liabilities 256 $ 243
Less current portion (45)  
Long-term portion $ 211  
v3.19.3
Subsequent Events (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended 21 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Jul. 31, 2020
Nov. 06, 2019
Mar. 31, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 21, 2018
Nov. 01, 2019
Oct. 29, 2019
Subsequent Event [Line Items]                              
Export duties expense           $ 174 $ 52 $ 201 $ 153            
Net (loss) income attributable to common stockholders           (210) $ 552 $ (251) $ 2,112            
PT Freeport Indonesia | Indonesian Tax Authority                              
Subsequent Event [Line Items]                              
Progressive export duty on copper concentrates, lower threshold, percent               2.50%              
Smelter Development Progress, Lower Threshold, Percent               30.00%              
Progressive export duty on copper concentrates, upper threshold, percent               5.00%              
Smelter Development Progress, Higher Threshold, Percent               50.00%              
PT Freeport Indonesia | Indonesian Tax Authority | Memorandum of Understanding with the Indonesian Government                              
Subsequent Event [Line Items]                              
Progressive export duty on copper concentrates, lower threshold, percent                     5.00%        
Progressive export duty on copper concentrates, upper threshold, percent                     7.50%        
Progressive export duty on copper concentrates, change, percent                         2.50%    
Export duties expense                         $ 155    
Ruling in favor for disputed amounts                   $ 29          
PT Freeport Indonesia | Indonesian Tax Authority | Memorandum of Understanding with the Indonesian Government, Indonesia Supreme Court Appeal                              
Subsequent Event [Line Items]                              
Progressive export duty on copper concentrates, lower threshold, percent               5.00%              
Loss contingency, charge           155                  
Net (loss) income attributable to common stockholders           $ (76)                  
Impact of charge on earnings per share           $ (0.05)                  
Disposed of by sale | Timok | Forecast                              
Subsequent Event [Line Items]                              
Proceeds from divestiture         $ 240                    
Divestiture of businesses, contingent consideration         100                    
Gain on divestiture         $ 340                    
Disposed of by sale | Timok, upper zone                              
Subsequent Event [Line Items]                              
Proceeds from divestiture                       $ 135      
Divestiture of businesses, contingent consideration                       $ 107      
Subsequent event | PT Freeport Indonesia | Indonesian Tax Authority | Memorandum of Understanding with the Indonesian Government, Indonesia Supreme Court Appeal                              
Subsequent Event [Line Items]                              
Unfavorable rulings, involving approximately half                             $ 29
Subsequent event | Disposed of by sale | Timok, upper zone                              
Subsequent Event [Line Items]                              
Divestiture of businesses, contingent consideration                           $ 107  
Subsequent event | Disposed of by sale | Timok, upper zone | Forecast                              
Subsequent Event [Line Items]                              
Proceeds from divestiture, installment payment $ 12 $ 50 $ 45                        
Subsequent event | Disposed of by sale | Timik, lower zone                              
Subsequent Event [Line Items]                              
Proceeds from divestiture       $ 240                      
Divestiture of businesses, deferred payments                           150  
Divestiture of businesses, deferred payments, demand amount per case                           $ 60