FREEPORT-MCMORAN INC, 10-Q filed on 8/6/2019
Quarterly Report
v3.19.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2019
Jul. 31, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 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 $0.10 per share  
Trading Symbol FCX  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,450,890,574
Entity Central Index Key 0000831259  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.19.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 2,623 $ 4,217
Trade accounts receivable 725 829
Income and other tax receivables 245 493
Inventories:    
Total materials and supplies, net 1,634 1,528
Mill and leach stockpiles 1,352 1,453
Product 1,391 1,778
Other current assets 760 422
Total current assets 8,730 10,720
Property, plant, equipment and mine development costs, net 28,841 28,010
Long-term mill and leach stockpiles 1,347 1,314
Other assets 2,168 2,172
Total assets 41,086 42,216
Current liabilities:    
Accounts payable and accrued liabilities 2,721 2,625
Accrued income taxes 63 165
Current portion of environmental and asset retirement obligations 425 449
Dividends Payable, Current 73 73
Current portion of debt 4 17
Total current liabilities 3,286 3,329
Long-term debt, less current portion 9,912 11,124
Deferred income taxes 4,055 4,032
Environmental and asset retirement obligations, less current portion 3,617 3,609
Other liabilities 2,399 2,230
Total liabilities 23,269 24,324
Stockholders’ equity:    
Common stock 158 158
Capital in excess of par value 25,949 26,013
Accumulated deficit (12,082) (12,041)
Accumulated other comprehensive loss (582) (605)
Common stock held in treasury (3,734) (3,727)
Total stockholders’ equity 9,709 9,798
Noncontrolling interests 8,108 8,094
Total equity 17,817 17,892
Total liabilities and equity $ 41,086 $ 42,216
v3.19.2
Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
Revenues $ 3,546 $ 5,168 $ 7,338 $ 10,036
Cost of sales:        
Production and delivery 3,002 2,915 5,978 5,723
Depreciation, depletion and amortization 352 442 699 893
Metals inventory adjustments 2   59 2
Total cost of sales 3,354 3,357 6,677 6,616
Selling, general and administrative expenses 97 109 209 240
Mining exploration and research expenses 31 24 58 45
Environmental obligations and shutdown costs 23 59 65 68
Net loss (gain) on sales of assets 8 (45) (25) (56)
Total costs and expenses 3,513 3,504 6,984 6,913
Operating income 33 1,664 354 3,123
Interest expense, net (132) (142) (278) (293)
Net gain (loss) on early extinguishment of debt 0 9 (6) 8
Other income, net 5 20 19 49
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (94) 1,551 89 2,887
Benefit from (provision for) income taxes 15 (515) (90) (1,021)
Equity in affiliated companies’ net earnings 5 3 2 1
Net (loss) income from continuing operations (74) 1,039 1 1,867
Net (loss) income from discontinued operations 0 (4) 1 (15)
Net income (74) 1,035 2 1,852
Net (income) loss attributable to noncontrolling interests:        
Continuing operations 2 (166) (43) (291)
Net (loss) income attributable to common stockholders $ (72) $ 869 $ (41) $ 1,561
Earnings Per Share, Basic and Diluted [Abstract]        
Continuing operations (in dollars per share) $ (0.05) $ 0.60 $ (0.03) $ 1.08
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, basic (in dollars per share) (0.05) 0.60 (0.03) 1.07
Continuing operations (in dollars per share) (0.05) 0.59 (0.03) 1.08
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, diluted (in dollars per share) $ (0.05) $ 0.59 $ (0.03) $ 1.07
Basic weighted-average shares of common stock outstanding 1,451 1,449 1,451 1,449
Diluted weighted-average shares of common shares outstanding 1,451 1,458 1,451 1,458
Dividends declared per share of common stock (in dollars per share) $ 0.05 $ 0.05 $ 0.10 $ 0.10
v3.19.2
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (74) $ 1,035 $ 2 $ 1,852
Defined benefit plans:        
Amortization of unrecognized amounts included in net periodic benefit costs 13 11 24 23
Foreign exchange losses 0 0 0 (1)
Other comprehensive income 13 11 24 22
Total comprehensive (loss) income (61) 1,046 26 1,874
Total comprehensive loss (income) attributable to noncontrolling interests 1 (166) (44) (290)
Total comprehensive income (loss) $ (60) $ 880 $ (18) $ 1,584
v3.19.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flow from operating activities:    
Net (loss) income $ 2 $ 1,852
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 699 893
Metals inventory adjustments 59 2
Net gain on sales of assets (25) (56)
Stock-based compensation 40 60
Net charges for environmental and asset retirement obligations, including accretion 109 152
Payments for environmental and asset retirement obligations (100) (110)
Net charges for defined pension and postretirement plans 53 38
Pension plan contributions (33) (44)
Net loss (gain) on early extinguishment of debt 6 (8)
Deferred income taxes 20 61
(Income) loss on disposal of discontinued operations (1) 15
(Increase) decrease in long-term mill and leach stockpiles (33) 38
Other, net 41 15
Changes in working capital and other tax payments:    
Accounts receivable 256 309
Inventories 287 (468)
Other current assets (26) (20)
Accounts payable and accrued liabilities 9 114
Accrued income taxes and timing of other tax payments (245) (148)
Net cash provided by operating activities 1,088 2,678
Cash flow from investing activities:    
Capital expenditures (1,251) (884)
Proceeds from Sale of Other Assets, Investing Activities 91 0
Intangible water rights and other, net (7) (86)
Net cash used in investing activities (1,167) (970)
Cash flow from financing activities:    
Proceeds from debt 328 352
Repayments of debt (1,563) (2,297)
Cash dividends and distributions paid:    
Common stock (146) (73)
Noncontrolling interests (79) (241)
Contributions from noncontrolling interests 100 0
Stock-based awards net (payments) proceeds (6) 5
Debt financing costs and other, net (4) (23)
Net cash used in financing activities (1,370) (2,277)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect (1,449) (569)
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 3,006 4,141
North America Copper Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (417) (232)
South America Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (108) (138)
Grasberg Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (658) (449)
Molybdenum [Member]    
Cash flow from investing activities:    
Capital expenditures (6) (2)
Other Segments [Member]    
Cash flow from investing activities:    
Capital expenditures (62) (63)
Surface Water Taxes, Papua, Indonesia    
Adjustments to reconcile net income to net cash provided by operating activities:    
Cerro Verde royalty dispute 28 0
Cerro Verde Royalty Dispute    
Adjustments to reconcile net income to net cash provided by operating activities:    
Cerro Verde royalty dispute 28 4
Payments for Cerro Verde royalty dispute $ (86) $ (21)
v3.19.2
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 50   53     $ (3) 50  
Dividends (386)   (145)       (145) (241)
Net loss attributable to common stockholders 1,561     1,561     1,561  
Net income (loss) attributable to noncontrolling interests 291             291
Other comprehensive income 22       23   23 (1)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 1,874              
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
Balance (in shares) at Mar. 31, 2018   1,579       130    
Balance at Mar. 31, 2018 11,926 $ 158 26,729 (14,030) (475) $ (3,726) 8,656 3,270
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards 2   2       2  
Stock-based compensation, including the tender of shares 9   9       9  
Dividends (141)   (73)       (73) (68)
Net loss attributable to common stockholders 869     869     869  
Net income (loss) attributable to noncontrolling interests 166             166
Other comprehensive income 11       11   11  
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 1,046              
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
Noncontrolling Interest, Period Increase (Decrease) (12)   (1)       (1) (11)
Contributions from noncontrolling interest 100   49       49 51
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   1       1  
Stock-based compensation, including the tender of shares 26   33     $ (7) 26  
Stock-based compensation, including the tender of shares (in shares)           1    
Dividends (216)   (146)       (146) (70)
Net loss attributable to common stockholders (41)     (41)     (41)  
Net income (loss) attributable to noncontrolling interests 43             43
Other comprehensive income 24       23   23 1
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 26              
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
Noncontrolling Interest, Period Increase (Decrease) 100   49       49 51
Balance (in shares) at Mar. 31, 2019   1,582       131    
Balance at Mar. 31, 2019 17,841 $ 158 25,963 (12,010) (594) $ (3,734) 9,783 8,058
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock-based compensation, including the tender of shares 10   10       10  
Dividends (73)   (73)       (73)  
Net loss attributable to common stockholders (72)     (72)     (72)  
Net income (loss) attributable to noncontrolling interests (2)             (2)
Other comprehensive income 13       12   12 1
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest (61)              
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
v3.19.2
General Information (Unaudited)
 6 Months Ended
Jun. 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. Operating results for the six-month period ended June 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 second-quarter 2019 totaled $56 million, of which $46 million was attributed to FCX, and for the first six months of 2019 totaled $4 million, of which $3 million was attributed to FCX. PT-FI’s cumulative net loss since the December 21, 2018, transaction date through June 30, 2019, totaled $140 million, of which $114 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 $135 million of assets and $20 million of liabilities at June 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. 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. FCX evaluated the criteria required for assets held for sale classification and concluded that this transaction did not meet all of the criteria at June 30, 2019.
v3.19.2
Earnings per Share (Unaudited) Earnings per Share (Notes)
 6 Months Ended
Jun. 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
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
 
Net (loss) income from continuing operations
$
(74
)
 
$
1,039

 
$
1

 
$
1,867

 
Net loss (income) from continuing operations attributable to noncontrolling interests
2

 
(166
)
 
(43
)
 
(291
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(4
)
 
Net (loss) income from continuing operations attributable to common stockholders
(75
)
 
870

 
(45
)
 
1,572

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

 
(4
)
 
1

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(75
)
 
$
866

 
$
(44
)
 
$
1,557

 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,451

 
1,449

 
1,451

 
1,449

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock unitsa
—

 
9

 
—

 
9

 
Diluted weighted-average shares of common stock outstanding
1,451

 
1,458

 
1,451

 
1,458

 
 
 
 
 
 
 
 
 
 
Basic net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.05
)
 
$
0.60

 
$
(0.03
)
 
$
1.08

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.05
)
 
$
0.60

 
$
(0.03
)
 
$
1.07

 
Diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.05
)
 
$
0.59

 
$
(0.03
)
 
$
1.08

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.05
)
 
$
0.59

 
$
(0.03
)
 
$
1.07

 

a.
Excludes approximately 10 million shares of common stock in second-quarter 2019, 2 million in second-quarter 2018, 12 million for the first six months of 2019 and 3 million for the first six months of 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock 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 second-quarter 2019, 35 million shares in second-quarter 2018, 41 million shares for the first six months of 2019 and 34 million shares for the first six months of 2018 were excluded.
v3.19.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited)
 6 Months Ended
Jun. 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):
 
June 30,
2019
 
December 31, 2018
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,634

 
$
1,528

 
 
 
 
 
 
Mill stockpiles
$
227

 
$
282

 
Leach stockpiles
1,125

 
1,171

 
Total current mill and leach stockpiles
$
1,352

 
$
1,453

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
295

 
$
260

 
Work-in-process
156

 
192

 
Finished goods
940

 
1,326

 
Total product
$
1,391

 
$
1,778

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
254

 
$
265

 
Leach stockpiles
1,093

 
1,049

 
Total long-term mill and leach stockpilesb
$
1,347

 
$
1,314

 

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

FCX recorded charges of $2 million in second-quarter 2019 and $59 million for the first six months of 2019 to adjust metals inventory carrying values to net realizable value, primarily for cobalt inventory because of lower cobalt market prices.
v3.19.2
Income Taxes (Unaudited)
 6 Months Ended
Jun. 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. FCX’s consolidated effective income tax rate was 101 percent for the first six months of 2019 and 35 percent for the first six months of 2018. Geographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Six Months Ended
 
 
June 30,
 
 
2019
 
2018
 
U.S. operations
$
20

a 
$
8

b 
International operations
(110
)
 
(1,029
)
 
Total
$
(90
)
 
$
(1,021
)
 

a.
Includes a tax credit of $18 million primarily associated with state law changes.
b.
Includes a tax credit of $5 million associated with the settlement of a state income tax examination.
FCX's consolidated effective income tax rate for the first six months of 2019 is a function of the combined effective tax rates for the jurisdictions in which FCX operates, excluding the U.S. jurisdiction. Because FCX's U.S. jurisdiction generated net losses in the first six 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.
v3.19.2
Debt and Equity
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt and Equity DEBT AND EQUITY

The components of debt follow (in millions):
 
 
June 30,
2019
 
December 31, 2018
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,595

 
$
9,594

Issued by Freeport Minerals Corporation (FMC)
 
357

 
358

Cerro Verde credit facility
 
825

 
1,023

Other
 
139

 
166

Total debt
 
9,916

 
11,141

Less current portion of debt
 
(4
)
 
(17
)
Long-term debt
 
$
9,912

 
$
11,124



Revolving Credit Facility. At June 30, 2019, there were no borrowings outstanding and $13 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.
 
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.

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

Interest Expense, Net. Consolidated interest costs totaled $167 million in second-quarter 2019, $165 million in second-quarter 2018, $345 million for the first six months of 2019 and $341 million for the first six months of 2018. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $35 million in second-quarter 2019, $23 million in second-quarter 2018, $67 million for the first six months of 2019 and $48 million for the first six months of 2018.

Common Stock.  On June 26, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which was paid on August 1, 2019, to common stockholders of record as of July 15, 2019.
v3.19.2
Financial Instruments (Unaudited)
 6 Months Ended
Jun. 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 June 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 six-month periods ended June 30, 2019 and 2018. At June 30, 2019, FCX held copper futures and swap contracts that qualified for hedge accounting for 74 million pounds at an average contract price of $2.76 per pound, with maturities through December 2020.

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
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized (losses) gains:
 
 
 
 
 
 
 
Derivative financial instruments
$
(13
)
 
$
(4
)
 
$
5

 
$
(19
)
Hedged item – firm sales commitments
13

 
4

 
(5
)
 
19

 
 
 
 
 
 
 
 
Realized (losses) gains:
 
 
 
 
 
 
 
Matured derivative financial instruments
(3
)
 
—

 
(1
)
 
2



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 June 30, 2019, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
505

 
$
2.79

 
$
2.72

 
November 2019
Gold (thousands of ounces)
74

 
1,328

 
1,416

 
August 2019
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
86

 
2.83

 
2.72

 
September 2019
Cobalt (millions of pounds)
6

 
10.56

 
8.88

 
September 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 June 30, 2019, Atlantic Copper held net copper forward sales contracts for 2 million pounds at an average contract price of $2.66 per pound, with maturities through July 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
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
(122
)
 
$
(14
)
 
$
—

 
$
(149
)
Gold and other metals
13

 
(30
)
 
11

 
(12
)
Copper forward contractsb
(4
)
 
6

 
(3
)
 
8

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):
 
 
June 30,
2019
 
December 31, 2018
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
1

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
41

 
23

Total derivative assets
 
$
42

 
$
23

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
5

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
51

 
39

Total derivative liabilities
 
$
56

 
$
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
 
 
June 30,
2019
 
December 31, 2018
 
June 30,
2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
41

 
$
23

 
$
51

 
$
39

Copper derivatives
 
1

 
—

 
5

 
9

 
 
42

 
23

 
56

 
48

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
4

 
7

 
4

 
7

Copper derivatives
 
1

 
—

 
1

 
—

 
 
5

 
7

 
5

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
37

 
16

 
47

 
32

Copper derivatives
 
—

 
—

 
4

 
9

 
 
$
37

 
$
16

 
$
51

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
26

 
$
3

 
$
22

 
$
24

Accounts payable and accrued liabilities
 
11

 
13

 
29

 
17

 
 
$
37

 
$
16

 
$
51

 
$
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 June 30, 2019, the maximum amount of credit exposure associated with derivative transactions was $37 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 $1.4 billion at June 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 June 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 the 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):
 
 
June 30,
2019
 
December 31, 2018
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
2,623

 
$
4,217

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
218

 
110

Other assets
 
165

 
128

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
3,006

 
$
4,455
v3.19.2
Fair Value Measurement
 6 Months Ended
Jun. 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 second-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 June 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
$
26

 
$
26

 
$
26

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
30

 
30

 
26

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
58

 
58

 
58

 
—

 
—

 
—

Government mortgage-backed securities
37

 
37

 
—

 
—

 
37

 
—

Government bonds and notes
37

 
37

 
—

 
—

 
37

 
—

Corporate bonds
32

 
32

 
—

 
—

 
32

 
—

Asset-backed securities
12

 
12

 
—

 
—

 
12

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
7

 
7

 
—

 
7

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
191

 
191

 
58

 
7

 
126

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
41

 
41

 
—

 
—

 
41

 
—

Copper futures and swap contractsc
1

 
1

 
—

 
1

 
—

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
and onshore California oil and gas propertiesa
79

 
79

 
—

 
—

 
79

 
—

Total
121

 
121

 
—

 
1

 
120

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
132

 
111

 
—

 
—

 
—

 
111

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
51

 
$
51

 
$
—

 
$
—

 
$
51

 
$
—

Copper futures and swap contracts
5

 
5

 
—

 
4

 
1

 
—

Total
56

 
56

 
—

 
4

 
52

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,916

 
9,861

 
—

 
—

 
9,861

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
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 $218 million at June 30, 2019, and $109 million at December 31, 2018, and (ii) other assets of $164 million at June 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 June 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 associated with the sale of the onshore California oil and gas properties was $20 million at June 30, 2019 ($7 million included in other current assets and $13 million in other assets), and $16 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 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 $14 million at June 30, 2019, and $27 million at December 31, 2018, and (ii) other assets totaled $118 million at June 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 valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at June 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 six 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
(5
)
 
Settlements
(11
)
 
Fair value at June 30, 2019
$
111

 
v3.19.2
Contingencies and Commitments (Unaudited)
 6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies CONTINGENCIES AND COMMITMENTS

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

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 is currently scheduled for October 2019.

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. Multiple trials have been scheduled over the remainder of 2019, 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 June 30, 2019), which will be paid over three years to settle historical disputes. As a result, 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.

In March 2019, PT-FI’s export license was extended to March 8, 2020, and 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.
v3.19.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 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 second quarters and first six months of 2019 and 2018 follow (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Copper:
 
 
 
 
 
 
 
Concentrate
$
1,134

 
$
1,703

 
$
2,299

 
$
3,350

Cathode
959

 
1,183

 
1,818

 
2,368

Rod and other refined copper products
516

 
668

 
1,023

 
1,338

Purchased coppera
325

 
282

 
662

 
520

Gold
305

 
933

 
696

 
1,741

Molybdenum
327

 
310

 
615

 
596

Otherb
218

 
400

 
495

 
798

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(100
)
 
(139
)
 
(205
)
 
(271
)
Royalty expensec
(19
)
 
(73
)
 
(49
)
 
(142
)
Export dutiesd
(10
)
 
(55
)
 
(27
)
 
(101
)
Revenues from contracts with customers
3,655

 
5,212

 
7,327

 
10,197

Embedded derivativese
(109
)
 
(44
)
 
11

 
(161
)
Total consolidated revenues
$
3,546

 
$
5,168

 
$
7,338

 
$
10,036

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.
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 June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
16

 
$
69

 
$
85

 
$
562

 
$
128

 
$
690

 
$
583

a 
$
—

 
$
1,171

 
$
546

 
$
471

b 
$
3,546

Intersegment
491

 
544

 
1,035

 
71

 
—

 
71

 
(1
)
 
109

 
4

 
—

 
(1,218
)
 
—

Production and delivery
348

 
477

 
825

 
455

 
126

 
581

 
554

 
78

 
1,171

 
515

 
(722
)
 
3,002

Depreciation, depletion and amortization
43

 
44

 
87

 
101

 
18

 
119

 
99

 
18

 
3

 
7

 
19

 
352

Selling, general and administrative expenses
—

 
—

 
—

 
2

 
—

 
2

 
30

 
—

 
—

 
5

 
60

 
97

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
30

 
31

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23

 
23

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Operating income (loss)
116

 
91

 
207

 
75

 
(16
)
 
59

 
(101
)
 
13

 
1

 
19

 
(165
)
 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
6

 
99

 
132

Provision for (benefit from) income taxes
—

 
—

 
—

 
20

 
(9
)
 
11

 
(35
)
 
—

 
—

 
2

 
7

 
(15
)
Total assets at June 30, 2019
2,917

 
4,921

 
7,838

 
8,571

 
1,699

 
10,270

 
16,261

 
1,792

 
250

 
764

 
3,911

 
41,086

Capital expenditures
49

 
158

 
207

 
43

 
4

 
47

 
339

 
2

 
1

 
5

 
28

 
629

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
25

 
$
13

 
$
38

 
$
719

 
$
171

 
$
890

 
$
1,639

a 
$
—

 
$
1,387

 
$
602

 
$
612

b 
$
5,168

Intersegment
568

 
641

 
1,209

 
100

 
—

 
100

 
1

 
111

 
8

 
—

 
(1,429
)
 
—

Production and delivery
298

 
491

 
789

 
445

 
133

 
578

 
425

 
71

 
1,389

 
579

 
(916
)
 
2,915

Depreciation, depletion and amortization
44

 
48

 
92

 
109

 
24

 
133

 
172

 
21

 
3

 
7

 
14

 
442

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
—

 
2

 
28

 
—

 
—

 
5

 
73

 
109

Mining exploration and research expenses
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
24

 
24

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
59

 
59

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(45
)
 
(45
)
Operating income (loss)
250

 
115

 
365

 
263

 
14

 
277

 
1,015

 
19

 
3

 
11

 
(26
)
 
1,664

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
16

 
—

 
16

 
—

 
—

 
—

 
6

 
119

 
142

Provision for (benefit from) income taxes
—

 
—

 
—

 
102

 
6

 
108

 
429

 
—

 
—

 
—

 
(22
)
 
515

Total assets at June 30, 2018
2,819

 
4,374

 
7,193

 
8,630

 
1,715

 
10,345

 
10,911

 
1,820

 
278

 
931

 
5,550

 
37,028

Capital expenditures
41

 
99

 
140

 
68

 
3

 
71

 
246

 
1

 
1

 
3

 
20

 
482

a.
Includes PT-FI's sales to PT Smelting totaling $470 million in second-quarter 2019 and $649 million in second-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
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
164

 
$
192

 
$
1,289

 
$
226

 
$
1,515

 
$
1,288

a 
$
—

 
$
2,299

 
$
1,117

 
$
927

b 
$
7,338

 
Intersegment
949

 
1,013

 
1,962

 
197

 
—

 
197

 
57

 
200

 
10

 
5

 
(2,431
)
 
—

 
Production and delivery
643

 
925

 
1,568

 
894

 
226

 
1,120

 
1,110

 
149

 
2,304

 
1,067

 
(1,340
)
 
5,978

 
Depreciation, depletion and amortization
83

 
87

 
170

 
201

 
32

 
233

 
204

 
34

 
5

 
14

 
39

 
699

 
Selling, general and administrative expenses
1

 
1

 
2

 
4

 
—

 
4

 
60

 
—

 
—

 
10

 
133

 
209

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
57

 
58

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
65

 
65

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(25
)
 
(25
)
 
Operating income (loss)
250

 
163

 
413

 
387

 
(32
)
 
355

 
(29
)
 
17

 
—

 
31

 
(433
)
 
354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
2

 
54

 
—

 
54

 
1

 
—

 
—

 
12

 
209

 
278

 
Provision for (benefit from) income taxes
—

 
—

 
—

 
130

 
(14
)
 
116

 
(9
)
 
—

 
—

 
3

 
(20
)
 
90

 
Capital expenditures
111

 
306

 
417

 
99

 
9

 
108

 
658

 
6

 
2

 
9

 
51

 
1,251

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
28

 
$
56

 
$
1,344

 
$
321

 
$
1,665

 
$
3,160

a 
$
—

 
$
2,772

 
$
1,179


$
1,204

b 
$
10,036

 
Intersegment
1,169

 
1,330

 
2,499

 
202

 
—

 
202

 
53

 
206

 
16

 
2

 
(2,978
)
 
—

 
Production and delivery
588

 
992

 
1,580

 
872


249

 
1,121

 
882


138

 
2,777

 
1,135

 
(1,910
)
 
5,723

 
Depreciation, depletion and amortization
90

 
96

 
186

 
214

 
46

 
260

 
353

 
40

 
5

 
14

 
35

 
893

 
Selling, general and administrative expenses
2

 
2

 
4

 
4

 
—

 
4

 
67

 
—

 
—

 
11

 
154

 
240

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
44

 
45

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
68

 
68

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(56
)
 
(56
)
 
Operating income (loss)
517

 
267

 
784

 
456

 
26

 
482

 
1,911

 
28

 
6

 
21

 
(109
)
 
3,123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
2

 
33

 
—

 
33

 
—

 
—

 
—

 
11

 
247

 
293

 
Provision for income taxes
—

 
—

 
—

 
170

 
10

 
180

 
830

 
—

 
—

 
1

 
10

 
1,021

 
Capital expenditures
88

 
144

 
232

 
131

 
7

 
138

 
449

 
2

 
2

 
7

 
54

 
884

 

a.
Includes PT-FI’s sales to PT Smelting totaling $879 million for the first six months of 2019 and $1.3 billion for the first six 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.
v3.19.2
Guarantor Financial Statements (Unaudited)
 6 Months Ended
Jun. 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 June 30, 2019, and December 31, 2018, and the related condensed consolidating statements of comprehensive (loss) income for the three and six months ended June 30, 2019 and 2018, and the condensed consolidating statements of cash flows for the six months ended June 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
June 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
84

 
$
570

 
$
8,634

 
$
(558
)
 
$
8,730

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

 
2

 
28,821

 
—

 
28,841

Investments in consolidated subsidiaries
17,773

 
—

 
—

 
(17,773
)
 
—

Other assets
1,335

 
21

 
3,252

 
(1,093
)
 
3,515

Total assets
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
255

 
$
55

 
$
3,574

 
$
(598
)
 
$
3,286

Long-term debt, less current portion
8,595

 
7,097

 
5,963

 
(11,743
)
 
9,912

Deferred income taxes
561

a 
—

 
3,494

 
—

 
4,055

Environmental and asset retirement obligations, less current portion
—

 
234

 
3,383

 
—

 
3,617

Investments in consolidated subsidiaries
—

 
594

 
10,728

 
(11,322
)
 
—

Other liabilities
90

 
3,340

 
2,456

 
(3,487
)
 
2,399

Total liabilities
9,501

 
11,320

 
29,598

 
(27,150
)
 
23,269

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,709

 
(10,727
)
 
8,455

 
2,272

 
9,709

Noncontrolling interests
—

 
—

 
2,654

 
5,454

 
8,108

Total equity
9,709

 
(10,727
)
 
11,109

 
7,726

 
17,817

Total liabilities and equity
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

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

 
$
13

 
$
3,533

 
$
—

 
$
3,546

Total costs and expenses
4

 
26

 
3,481

 
2

 
3,513

Operating (loss) income
(4
)
 
(13
)
 
52

 
(2
)
 
33

Interest expense, net
(83
)
 
(82
)
 
(102
)
 
135

 
(132
)
Other (expense) income, net
(1
)
 
—

 
7

 
(1
)
 
5

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(88
)
 
(95
)
 
(43
)
 
132

 
(94
)
(Provision for) benefit from income taxes
(7
)
 
22

 
—

 
—

 
15

Equity in affiliated companies’ net earnings (losses)
23

 
(21
)
 
(89
)
 
92

 
5

Net (loss) income
(72
)
 
(94
)
 
(132
)
 
224

 
(74
)
Net (income) loss attributable to noncontrolling interests
—

 
—

 
(8
)
 
10

 
2

Net (loss) income attributable to common stockholders
$
(72
)
 
$
(94
)
 
$
(140
)
 
$
234

 
$
(72
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(60
)
 
$
(94
)
 
$
(128
)
 
$
222

 
$
(60
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
16

 
$
5,152

 
$
—

 
$
5,168

Total costs and expenses
4

 
(16
)
 
3,525

 
(9
)
 
3,504

Operating (loss) income
(4
)
 
32

 
1,627

 
9

 
1,664

Interest expense, net
(97
)
 
(76
)
 
(92
)
 
123

 
(142
)
Other income (expense), net
132

 
2

 
18

 
(123
)
 
29

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
31

 
(42
)
 
1,553

 
9

 
1,551

(Provision for) benefit from income taxes
(11
)
 
10

 
(512
)
 
(2
)
 
(515
)
Equity in affiliated companies’ net earnings (losses)
849

 
2

 
(45
)
 
(803
)
 
3

Net income (loss) from continuing operations
869

 
(30
)
 
996

 
(796
)
 
1,039

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
869

 
(30
)
 
992

 
(796
)
 
1,035

Net income attributable to noncontrolling interests
—

 
—

 
(102
)
 
(64
)
 
(166
)
Net income (loss) attributable to common stockholders
$
869

 
$
(30
)
 
$
890

 
$
(860
)
 
$
869

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
880

 
$
(30
)
 
$
901

 
$
(871
)
 
$
880

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


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

 
$
16

 
$
7,322

 
$
—

 
$
7,338

Total costs and expenses
17

 
26

 
6,941

 
—

 
6,984

Operating (loss) income
(17
)
 
(10
)
 
381

 
—

 
354

Interest expense, net
(173
)
 
(168
)
 
(211
)
 
274

 
(278
)
Other income (expense), net
64

 
—

 
23

 
(74
)
 
13

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(126
)
 
(178
)
 
193

 
200

 
89

(Provision for) benefit from income taxes
(8
)
 
40

 
(122
)
 
—

 
(90
)
Equity in affiliated companies’ net earnings (losses)
93

 
(16
)
 
(152
)
 
77

 
2

Net (loss) income from continuing operations
(41
)
 
(154
)
 
(81
)
 
277

 
1

Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(41
)
 
(154
)
 
(80
)
 
277

 
2

Net income attributable to noncontrolling interests
—

 
—

 
(42
)
 
(1
)
 
(43
)
Net (loss) income attributable to common stockholders
$
(41
)
 
$
(154
)
 
$
(122
)
 
$
276

 
$
(41
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive (loss) income
$
(18
)
 
$
(154
)
 
$
(99
)
 
$
253

 
$
(18
)
 
 
 
 
 
 
 
 
 
 

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

 
$
31

 
$
10,005

 
$
—

 
$
10,036

Total costs and expenses
13

 
(8
)
 
6,918

 
(10
)
 
6,913

Operating (loss) income
(13
)
 
39

 
3,087

 
10

 
3,123

Interest expense, net
(201
)
 
(140
)
 
(177
)
 
225

 
(293
)
Other income (expense), net
233

 
2

 
47

 
(225
)
 
57

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
19

 
(99
)
 
2,957

 
10

 
2,887

(Provision for) benefit from income taxes
(94
)
 
22

 
(947
)
 
(2
)
 
(1,021
)
Equity in affiliated companies’ net earnings (losses)
1,636

 
(4
)
 
(79
)
 
(1,552
)
 
1

Net income (loss) from continuing operations
1,561

 
(81
)
 
1,931

 
(1,544
)
 
1,867

Net loss from discontinued operations
—

 
—

 
(15
)
 
—

 
(15
)
Net income (loss)
1,561

 
(81
)
 
1,916

 
(1,544
)
 
1,852

Net income attributable to noncontrolling interests

—

 
—

 
(173
)
 
(118
)
 
(291
)
Net income (loss) attributable to common stockholders
$
1,561

 
$
(81
)
 
$
1,743

 
$
(1,662
)
 
$
1,561

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive income (loss)
$
1,584

 
$
(81
)
 
$
1,766

 
$
(1,685
)
 
$
1,584

 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
330

 
$
(204
)
 
$
962

 
$
—

 
$
1,088

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(1,251
)
 
—

 
(1,251
)
Intercompany loans
(640
)
 
—

 
—

 
640

 
—

Dividends from (investments in) consolidated subsidiaries
1,470

 
—

 
47

 
(1,519
)
 
(2
)
Asset sales and other, net
(1
)
 
91

 
(4
)
 
—

 
86

Net cash provided by (used in) investing activities
829

 
91

 
(1,208
)
 
(879
)
 
(1,167
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
328

 
—

 
328

Repayments of debt
(1,003
)
 
—

 
(560
)
 
—

 
(1,563
)
Intercompany loans
—

 
113

 
527

 
(640
)
 
—

Cash dividends paid and contributions received, net
(146
)
 
—

 
(1,478
)
 
1,499

 
(125
)
Other, net
(10
)
 
—

 
(20
)
 
20

 
(10
)
Net cash (used in) provided by financing activities
(1,159
)
 
113

 
(1,203
)
 
879

 
(1,370
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,449
)
 
—

 
(1,449
)
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
$
—

 
$
—

 
$
3,006

 
$
—

 
$
3,006

Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(163
)
 
$
(184
)
 
$
3,025

 
$
—

 
$
2,678

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

 
(882
)
 
—

 
(884
)
Intercompany loans
(442
)
 
—

 
—

 
442

 
—

Dividends from (investments in) consolidated subsidiaries
2,519

 
—

 
45

 
(2,564
)
 
—

Asset sales and other, net
4

 
1

 
(91
)
 
—

 
(86
)
Net cash provided by (used in) investing activities
2,079

 
1

 
(928
)
 
(2,122
)
 
(970
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
352

 
—

 
352

Repayments of debt
(1,826
)
 
(52
)
 
(419
)
 
—

 
(2,297
)
Intercompany loans
—

 
228

 
214

 
(442
)
 
—

Cash dividends paid and contributions received, net
(73
)
 
—

 
(2,789
)
 
2,548

 
(314
)
Other, net
(17
)
 
—

 
(17
)
 
16

 
(18
)
Net cash (used in) provided by financing activities
(1,916
)
 
176

 
(2,659
)
 
2,122

 
(2,277
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
(562
)
 
—

 
(569
)
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
$
—

 
$
—

 
$
4,141

 
$
—

 
$
4,141
v3.19.2
New Accounting Standard
 6 Months Ended
Jun. 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 June 30, 2019, follow (in millions):
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
$
242

 
 
Short-term lease liabilities (included in accounts payable and accrued liabilities)
$
47

Long-term lease liabilities (included in other liabilities)
216

Total lease liabilities
$
263



Operating lease costs, primarily included in production and delivery expense in the consolidated statement of operations, are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 2019
 
 
 
 
Operating leases
$
21

 
$
33

Variable and short-term leases
19

 
40

Total lease costs
$
40

 
$
73



Lease costs totaled $80 million for the year 2018.

FCX paid $20 million during the first six 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 June 30, 2019, the weighted-average discount rate used to determine the lease liabilities was 5.2 percent and the weighted-average remaining lease term was 8.8 years.

The future minimum payments for leases presented in the consolidated balance sheets at June 30, 2019, follow (in millions):
Remaining six months of 2019
$
27

2020
54

2021
40

2022
33

2023
30

Thereafter
158

Total payments
342

Less amount representing interest
(79
)
Present value of net minimum lease payments
263

Less current portion
(47
)
Long-term portion
$
216



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. FCX does not expect this guidance to have a material impact on its consolidated financial statements.
v3.19.2
Subsequent Events (Unaudited)
 6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS

On August 1, 2019, FCX agreed to sell $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. The sale is expected to settle on August 15, 2019, subject to customary closing conditions. Interest on these senior notes is payable semiannually on September 1 and March 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX intends to use the net proceeds from this offering to fund the redemption of all of its outstanding 6.875% Senior Notes due 2023 (book value of $764 million as of June 30, 2019) and its concurrent cash tender offers for up to $430 million aggregate purchase price of its 4.00% Senior Notes due 2021, 3.55% Senior Notes due 2022 and 3.875% Senior Notes due 2023, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. As a result of the redemption and tender offers, FCX expects to record a loss on early extinguishment of debt of approximately $15 million in third-quarter 2019.

FCX evaluated events after June 30, 2019, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.
v3.19.2
New Accounting Standard (Policies)
 6 Months Ended
Jun. 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.
v3.19.2
Earnings per Share (Unaudited) Earnings per Share (Tables)
 6 Months Ended
Jun. 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
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
 
Net (loss) income from continuing operations
$
(74
)
 
$
1,039

 
$
1

 
$
1,867

 
Net loss (income) from continuing operations attributable to noncontrolling interests
2

 
(166
)
 
(43
)
 
(291
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(4
)
 
Net (loss) income from continuing operations attributable to common stockholders
(75
)
 
870

 
(45
)
 
1,572

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

 
(4
)
 
1

 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(75
)
 
$
866

 
$
(44
)
 
$
1,557

 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,451

 
1,449

 
1,451

 
1,449

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock unitsa
—

 
9

 
—

 
9

 
Diluted weighted-average shares of common stock outstanding
1,451

 
1,458

 
1,451

 
1,458

 
 
 
 
 
 
 
 
 
 
Basic net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.05
)
 
$
0.60

 
$
(0.03
)
 
$
1.08

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.05
)
 
$
0.60

 
$
(0.03
)
 
$
1.07

 
Diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
(0.05
)
 
$
0.59

 
$
(0.03
)
 
$
1.08

 
Discontinued operations
—

 
—

 
—

 
(0.01
)
 
 
$
(0.05
)
 
$
0.59

 
$
(0.03
)
 
$
1.07

 

a.
Excludes approximately 10 million shares of common stock in second-quarter 2019, 2 million in second-quarter 2018, 12 million for the first six months of 2019 and 3 million for the first six months of 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.
v3.19.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables)
 6 Months Ended
Jun. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory

The components of inventories follow (in millions):
 
June 30,
2019
 
December 31, 2018
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,634

 
$
1,528

 
 
 
 
 
 
Mill stockpiles
$
227

 
$
282

 
Leach stockpiles
1,125

 
1,171

 
Total current mill and leach stockpiles
$
1,352

 
$
1,453

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
295

 
$
260

 
Work-in-process
156

 
192

 
Finished goods
940

 
1,326

 
Total product
$
1,391

 
$
1,778

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
254

 
$
265

 
Leach stockpiles
1,093

 
1,049

 
Total long-term mill and leach stockpilesb
$
1,347

 
$
1,314

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $24 million at June 30, 2019, and December 31, 2018.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
v3.19.2
Income Taxes (Unaudited) (Tables)
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income before income taxes and equity in an affiliated companies' net earnings Geographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Six Months Ended
 
 
June 30,
 
 
2019
 
2018
 
U.S. operations
$
20

a 
$
8

b 
International operations
(110
)
 
(1,029
)
 
Total
$
(90
)
 
$
(1,021
)
 

a.
Includes a tax credit of $18 million primarily associated with state law changes.
b.
Includes a tax credit of $5 million associated with the settlement of a state income tax examination.
v3.19.2
Debt and Equity (Tables)
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Debt

The components of debt follow (in millions):
 
 
June 30,
2019
 
December 31, 2018
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,595

 
$
9,594

Issued by Freeport Minerals Corporation (FMC)
 
357

 
358

Cerro Verde credit facility
 
825

 
1,023

Other
 
139

 
166

Total debt
 
9,916

 
11,141

Less current portion of debt
 
(4
)
 
(17
)
Long-term debt
 
$
9,912

 
$
11,124
v3.19.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 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
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized (losses) gains:
 
 
 
 
 
 
 
Derivative financial instruments
$
(13
)
 
$
(4
)
 
$
5

 
$
(19
)
Hedged item – firm sales commitments
13

 
4

 
(5
)
 
19

 
 
 
 
 
 
 
 
Realized (losses) gains:
 
 
 
 
 
 
 
Matured derivative financial instruments
(3
)
 
—

 
(1
)
 
2
Schedule of Derivative Instruments
A summary of FCX’s embedded derivatives at June 30, 2019, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
505

 
$
2.79

 
$
2.72

 
November 2019
Gold (thousands of ounces)
74

 
1,328

 
1,416

 
August 2019
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
86

 
2.83

 
2.72

 
September 2019
Cobalt (millions of pounds)
6

 
10.56

 
8.88

 
September 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
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
(122
)
 
$
(14
)
 
$
—

 
$
(149
)
Gold and other metals
13

 
(30
)
 
11

 
(12
)
Copper forward contractsb
(4
)
 
6

 
(3
)
 
8

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):
 
 
June 30,
2019
 
December 31, 2018
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
1

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
41

 
23

Total derivative assets
 
$
42

 
$
23

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
5

 
$
9

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt
 
 
 
 
sales/purchase contracts
 
51

 
39

Total derivative liabilities
 
$
56

 
$
48
Offsetting Assets
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
June 30,
2019
 
December 31, 2018
 
June 30,
2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
41

 
$
23

 
$
51

 
$
39

Copper derivatives
 
1

 
—

 
5

 
9

 
 
42

 
23

 
56

 
48

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
4

 
7

 
4

 
7

Copper derivatives
 
1

 
—

 
1

 
—

 
 
5

 
7

 
5

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
37

 
16

 
47

 
32

Copper derivatives
 
—

 
—

 
4

 
9

 
 
$
37

 
$
16

 
$
51

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
26

 
$
3

 
$
22

 
$
24

Accounts payable and accrued liabilities
 
11

 
13

 
29

 
17

 
 
$
37

 
$
16

 
$
51

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

 
$
23

 
$
51

 
$
39

Copper derivatives
 
1

 
—

 
5

 
9

 
 
42

 
23

 
56

 
48

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
4

 
7

 
4

 
7

Copper derivatives
 
1

 
—

 
1

 
—

 
 
5

 
7

 
5

 
7

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
37

 
16

 
47

 
32

Copper derivatives
 
—

 
—

 
4

 
9

 
 
$
37

 
$
16

 
$
51

 
$
41

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
26

 
$
3

 
$
22

 
$
24

Accounts payable and accrued liabilities
 
11

 
13

 
29

 
17

 
 
$
37

 
$
16

 
$
51

 
$
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):
 
 
June 30,
2019
 
December 31, 2018
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
2,623

 
$
4,217

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
218

 
110

Other assets
 
165

 
128

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
3,006

 
$
4,455
v3.19.2
FAIR VALUE MEASUREMENT (Tables)
 6 Months Ended
Jun. 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 June 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
$
26

 
$
26

 
$
26

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
30

 
30

 
26

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
58

 
58

 
58

 
—

 
—

 
—

Government mortgage-backed securities
37

 
37

 
—

 
—

 
37

 
—

Government bonds and notes
37

 
37

 
—

 
—

 
37

 
—

Corporate bonds
32

 
32

 
—

 
—

 
32

 
—

Asset-backed securities
12

 
12

 
—

 
—

 
12

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
7

 
7

 
—

 
7

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
191

 
191

 
58

 
7

 
126

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset positionc
41

 
41

 
—

 
—

 
41

 
—

Copper futures and swap contractsc
1

 
1

 
—

 
1

 
—

 
—

Contingent consideration for the sales of TFHL
 
 
 
 
 
 
 
 
 
 
 
and onshore California oil and gas propertiesa
79

 
79

 
—

 
—

 
79

 
—

Total
121

 
121

 
—

 
1

 
120

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
132

 
111

 
—

 
—

 
—

 
111

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position
$
51

 
$
51

 
$
—

 
$
—

 
$
51

 
$
—

Copper futures and swap contracts
5

 
5

 
—

 
4

 
1

 
—

Total
56

 
56

 
—

 
4

 
52

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,916

 
9,861

 
—

 
—

 
9,861

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
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 $218 million at June 30, 2019, and $109 million at December 31, 2018, and (ii) other assets of $164 million at June 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 six 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
(5
)
 
Settlements
(11
)
 
Fair value at June 30, 2019
$
111

 
v3.19.2
Business Segments (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Revenue from External Customers by Products and Services FCX’s revenues attributable to the products it sold for the second quarters and first six months of 2019 and 2018 follow (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Copper:
 
 
 
 
 
 
 
Concentrate
$
1,134

 
$
1,703

 
$
2,299

 
$
3,350

Cathode
959

 
1,183

 
1,818

 
2,368

Rod and other refined copper products
516

 
668

 
1,023

 
1,338

Purchased coppera
325

 
282

 
662

 
520

Gold
305

 
933

 
696

 
1,741

Molybdenum
327

 
310

 
615

 
596

Otherb
218

 
400

 
495

 
798

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(100
)
 
(139
)
 
(205
)
 
(271
)
Royalty expensec
(19
)
 
(73
)
 
(49
)
 
(142
)
Export dutiesd
(10
)
 
(55
)
 
(27
)
 
(101
)
Revenues from contracts with customers
3,655

 
5,212

 
7,327

 
10,197

Embedded derivativese
(109
)
 
(44
)
 
11

 
(161
)
Total consolidated revenues
$
3,546

 
$
5,168

 
$
7,338

 
$
10,036

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.
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 June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
16

 
$
69

 
$
85

 
$
562

 
$
128

 
$
690

 
$
583

a 
$
—

 
$
1,171

 
$
546

 
$
471

b 
$
3,546

Intersegment
491

 
544

 
1,035

 
71

 
—

 
71

 
(1
)
 
109

 
4

 
—

 
(1,218
)
 
—

Production and delivery
348

 
477

 
825

 
455

 
126

 
581

 
554

 
78

 
1,171

 
515

 
(722
)
 
3,002

Depreciation, depletion and amortization
43

 
44

 
87

 
101

 
18

 
119

 
99

 
18

 
3

 
7

 
19

 
352

Selling, general and administrative expenses
—

 
—

 
—

 
2

 
—

 
2

 
30

 
—

 
—

 
5

 
60

 
97

Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
30

 
31

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23

 
23

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Operating income (loss)
116

 
91

 
207

 
75

 
(16
)
 
59

 
(101
)
 
13

 
1

 
19

 
(165
)
 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
6

 
99

 
132

Provision for (benefit from) income taxes
—

 
—

 
—

 
20

 
(9
)
 
11

 
(35
)
 
—

 
—

 
2

 
7

 
(15
)
Total assets at June 30, 2019
2,917

 
4,921

 
7,838

 
8,571

 
1,699

 
10,270

 
16,261

 
1,792

 
250

 
764

 
3,911

 
41,086

Capital expenditures
49

 
158

 
207

 
43

 
4

 
47

 
339

 
2

 
1

 
5

 
28

 
629

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
25

 
$
13

 
$
38

 
$
719

 
$
171

 
$
890

 
$
1,639

a 
$
—

 
$
1,387

 
$
602

 
$
612

b 
$
5,168

Intersegment
568

 
641

 
1,209

 
100

 
—

 
100

 
1

 
111

 
8

 
—

 
(1,429
)
 
—

Production and delivery
298

 
491

 
789

 
445

 
133

 
578

 
425

 
71

 
1,389

 
579

 
(916
)
 
2,915

Depreciation, depletion and amortization
44

 
48

 
92

 
109

 
24

 
133

 
172

 
21

 
3

 
7

 
14

 
442

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
—

 
2

 
28

 
—

 
—

 
5

 
73

 
109

Mining exploration and research expenses
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
24

 
24

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
59

 
59

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(45
)
 
(45
)
Operating income (loss)
250

 
115

 
365

 
263

 
14

 
277

 
1,015

 
19

 
3

 
11

 
(26
)
 
1,664

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
1

 
16

 
—

 
16

 
—

 
—

 
—

 
6

 
119

 
142

Provision for (benefit from) income taxes
—

 
—

 
—

 
102

 
6

 
108

 
429

 
—

 
—

 
—

 
(22
)
 
515

Total assets at June 30, 2018
2,819

 
4,374

 
7,193

 
8,630

 
1,715

 
10,345

 
10,911

 
1,820

 
278

 
931

 
5,550

 
37,028

Capital expenditures
41

 
99

 
140

 
68

 
3

 
71

 
246

 
1

 
1

 
3

 
20

 
482

a.
Includes PT-FI's sales to PT Smelting totaling $470 million in second-quarter 2019 and $649 million in second-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
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
164

 
$
192

 
$
1,289

 
$
226

 
$
1,515

 
$
1,288

a 
$
—

 
$
2,299

 
$
1,117

 
$
927

b 
$
7,338

 
Intersegment
949

 
1,013

 
1,962

 
197

 
—

 
197

 
57

 
200

 
10

 
5

 
(2,431
)
 
—

 
Production and delivery
643

 
925

 
1,568

 
894

 
226

 
1,120

 
1,110

 
149

 
2,304

 
1,067

 
(1,340
)
 
5,978

 
Depreciation, depletion and amortization
83

 
87

 
170

 
201

 
32

 
233

 
204

 
34

 
5

 
14

 
39

 
699

 
Selling, general and administrative expenses
1

 
1

 
2

 
4

 
—

 
4

 
60

 
—

 
—

 
10

 
133

 
209

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
57

 
58

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
65

 
65

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(25
)
 
(25
)
 
Operating income (loss)
250

 
163

 
413

 
387

 
(32
)
 
355

 
(29
)
 
17

 
—

 
31

 
(433
)
 
354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
2

 
54

 
—

 
54

 
1

 
—

 
—

 
12

 
209

 
278

 
Provision for (benefit from) income taxes
—

 
—

 
—

 
130

 
(14
)
 
116

 
(9
)
 
—

 
—

 
3

 
(20
)
 
90

 
Capital expenditures
111

 
306

 
417

 
99

 
9

 
108

 
658

 
6

 
2

 
9

 
51

 
1,251

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
28

 
$
56

 
$
1,344

 
$
321

 
$
1,665

 
$
3,160

a 
$
—

 
$
2,772

 
$
1,179


$
1,204

b 
$
10,036

 
Intersegment
1,169

 
1,330

 
2,499

 
202

 
—

 
202

 
53

 
206

 
16

 
2

 
(2,978
)
 
—

 
Production and delivery
588

 
992

 
1,580

 
872


249

 
1,121

 
882


138

 
2,777

 
1,135

 
(1,910
)
 
5,723

 
Depreciation, depletion and amortization
90

 
96

 
186

 
214

 
46

 
260

 
353

 
40

 
5

 
14

 
35

 
893

 
Selling, general and administrative expenses
2

 
2

 
4

 
4

 
—

 
4

 
67

 
—

 
—

 
11

 
154

 
240

 
Mining exploration and research expenses
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
44

 
45

 
Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
68

 
68

 
Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(56
)
 
(56
)
 
Operating income (loss)
517

 
267

 
784

 
456

 
26

 
482

 
1,911

 
28

 
6

 
21

 
(109
)
 
3,123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
2

 
33

 
—

 
33

 
—

 
—

 
—

 
11

 
247

 
293

 
Provision for income taxes
—

 
—

 
—

 
170

 
10

 
180

 
830

 
—

 
—

 
1

 
10

 
1,021

 
Capital expenditures
88

 
144

 
232

 
131

 
7

 
138

 
449

 
2

 
2

 
7

 
54

 
884

 

a.
Includes PT-FI’s sales to PT Smelting totaling $879 million for the first six months of 2019 and $1.3 billion for the first six 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.
v3.19.2
Guarantor Financial Statements (Tables)
 6 Months Ended
Jun. 30, 2019
Guarantor Financial Statements [Abstract]  
Condensed Consolidating Balance Sheets [Table Text Block]
CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
84

 
$
570

 
$
8,634

 
$
(558
)
 
$
8,730

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

 
2

 
28,821

 
—

 
28,841

Investments in consolidated subsidiaries
17,773

 
—

 
—

 
(17,773
)
 
—

Other assets
1,335

 
21

 
3,252

 
(1,093
)
 
3,515

Total assets
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
255

 
$
55

 
$
3,574

 
$
(598
)
 
$
3,286

Long-term debt, less current portion
8,595

 
7,097

 
5,963

 
(11,743
)
 
9,912

Deferred income taxes
561

a 
—

 
3,494

 
—

 
4,055

Environmental and asset retirement obligations, less current portion
—

 
234

 
3,383

 
—

 
3,617

Investments in consolidated subsidiaries
—

 
594

 
10,728

 
(11,322
)
 
—

Other liabilities
90

 
3,340

 
2,456

 
(3,487
)
 
2,399

Total liabilities
9,501

 
11,320

 
29,598

 
(27,150
)
 
23,269

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,709

 
(10,727
)
 
8,455

 
2,272

 
9,709

Noncontrolling interests
—

 
—

 
2,654

 
5,454

 
8,108

Total equity
9,709

 
(10,727
)
 
11,109

 
7,726

 
17,817

Total liabilities and equity
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

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

 
$
13

 
$
3,533

 
$
—

 
$
3,546

Total costs and expenses
4

 
26

 
3,481

 
2

 
3,513

Operating (loss) income
(4
)
 
(13
)
 
52

 
(2
)
 
33

Interest expense, net
(83
)
 
(82
)
 
(102
)
 
135

 
(132
)
Other (expense) income, net
(1
)
 
—

 
7

 
(1
)
 
5

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(88
)
 
(95
)
 
(43
)
 
132

 
(94
)
(Provision for) benefit from income taxes
(7
)
 
22

 
—

 
—

 
15

Equity in affiliated companies’ net earnings (losses)
23

 
(21
)
 
(89
)
 
92

 
5

Net (loss) income
(72
)
 
(94
)
 
(132
)
 
224

 
(74
)
Net (income) loss attributable to noncontrolling interests
—

 
—

 
(8
)
 
10

 
2

Net (loss) income attributable to common stockholders
$
(72
)
 
$
(94
)
 
$
(140
)
 
$
234

 
$
(72
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(60
)
 
$
(94
)
 
$
(128
)
 
$
222

 
$
(60
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
16

 
$
5,152

 
$
—

 
$
5,168

Total costs and expenses
4

 
(16
)
 
3,525

 
(9
)
 
3,504

Operating (loss) income
(4
)
 
32

 
1,627

 
9

 
1,664

Interest expense, net
(97
)
 
(76
)
 
(92
)
 
123

 
(142
)
Other income (expense), net
132

 
2

 
18

 
(123
)
 
29

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
31

 
(42
)
 
1,553

 
9

 
1,551

(Provision for) benefit from income taxes
(11
)
 
10

 
(512
)
 
(2
)
 
(515
)
Equity in affiliated companies’ net earnings (losses)
849

 
2

 
(45
)
 
(803
)
 
3

Net income (loss) from continuing operations
869

 
(30
)
 
996

 
(796
)
 
1,039

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
869

 
(30
)
 
992

 
(796
)
 
1,035

Net income attributable to noncontrolling interests
—

 
—

 
(102
)
 
(64
)
 
(166
)
Net income (loss) attributable to common stockholders
$
869

 
$
(30
)
 
$
890

 
$
(860
)
 
$
869

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
880

 
$
(30
)
 
$
901

 
$
(871
)
 
$
880

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


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

 
$
16

 
$
7,322

 
$
—

 
$
7,338

Total costs and expenses
17

 
26

 
6,941

 
—

 
6,984

Operating (loss) income
(17
)
 
(10
)
 
381

 
—

 
354

Interest expense, net
(173
)
 
(168
)
 
(211
)
 
274

 
(278
)
Other income (expense), net
64

 
—

 
23

 
(74
)
 
13

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(126
)
 
(178
)
 
193

 
200

 
89

(Provision for) benefit from income taxes
(8
)
 
40

 
(122
)
 
—

 
(90
)
Equity in affiliated companies’ net earnings (losses)
93

 
(16
)
 
(152
)
 
77

 
2

Net (loss) income from continuing operations
(41
)
 
(154
)
 
(81
)
 
277

 
1

Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(41
)
 
(154
)
 
(80
)
 
277

 
2

Net income attributable to noncontrolling interests
—

 
—

 
(42
)
 
(1
)
 
(43
)
Net (loss) income attributable to common stockholders
$
(41
)
 
$
(154
)
 
$
(122
)
 
$
276

 
$
(41
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive (loss) income
$
(18
)
 
$
(154
)
 
$
(99
)
 
$
253

 
$
(18
)
 
 
 
 
 
 
 
 
 
 

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

 
$
31

 
$
10,005

 
$
—

 
$
10,036

Total costs and expenses
13

 
(8
)
 
6,918

 
(10
)
 
6,913

Operating (loss) income
(13
)
 
39

 
3,087

 
10

 
3,123

Interest expense, net
(201
)
 
(140
)
 
(177
)
 
225

 
(293
)
Other income (expense), net
233

 
2

 
47

 
(225
)
 
57

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
19

 
(99
)
 
2,957

 
10

 
2,887

(Provision for) benefit from income taxes
(94
)
 
22

 
(947
)
 
(2
)
 
(1,021
)
Equity in affiliated companies’ net earnings (losses)
1,636

 
(4
)
 
(79
)
 
(1,552
)
 
1

Net income (loss) from continuing operations
1,561

 
(81
)
 
1,931

 
(1,544
)
 
1,867

Net loss from discontinued operations
—

 
—

 
(15
)
 
—

 
(15
)
Net income (loss)
1,561

 
(81
)
 
1,916

 
(1,544
)
 
1,852

Net income attributable to noncontrolling interests

—

 
—

 
(173
)
 
(118
)
 
(291
)
Net income (loss) attributable to common stockholders
$
1,561

 
$
(81
)
 
$
1,743

 
$
(1,662
)
 
$
1,561

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive income (loss)
$
1,584

 
$
(81
)
 
$
1,766

 
$
(1,685
)
 
$
1,584

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

Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
330

 
$
(204
)
 
$
962

 
$
—

 
$
1,088

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(1,251
)
 
—

 
(1,251
)
Intercompany loans
(640
)
 
—

 
—

 
640

 
—

Dividends from (investments in) consolidated subsidiaries
1,470

 
—

 
47

 
(1,519
)
 
(2
)
Asset sales and other, net
(1
)
 
91

 
(4
)
 
—

 
86

Net cash provided by (used in) investing activities
829

 
91

 
(1,208
)
 
(879
)
 
(1,167
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
328

 
—

 
328

Repayments of debt
(1,003
)
 
—

 
(560
)
 
—

 
(1,563
)
Intercompany loans
—

 
113

 
527

 
(640
)
 
—

Cash dividends paid and contributions received, net
(146
)
 
—

 
(1,478
)
 
1,499

 
(125
)
Other, net
(10
)
 
—

 
(20
)
 
20

 
(10
)
Net cash (used in) provided by financing activities
(1,159
)
 
113

 
(1,203
)
 
879

 
(1,370
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,449
)
 
—

 
(1,449
)
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
$
—

 
$
—

 
$
3,006

 
$
—

 
$
3,006

Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(163
)
 
$
(184
)
 
$
3,025

 
$
—

 
$
2,678

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

 
(882
)
 
—

 
(884
)
Intercompany loans
(442
)
 
—

 
—

 
442

 
—

Dividends from (investments in) consolidated subsidiaries
2,519

 
—

 
45

 
(2,564
)
 
—

Asset sales and other, net
4

 
1

 
(91
)
 
—

 
(86
)
Net cash provided by (used in) investing activities
2,079

 
1

 
(928
)
 
(2,122
)
 
(970
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
352

 
—

 
352

Repayments of debt
(1,826
)
 
(52
)
 
(419
)
 
—

 
(2,297
)
Intercompany loans
—

 
228

 
214

 
(442
)
 
—

Cash dividends paid and contributions received, net
(73
)
 
—

 
(2,789
)
 
2,548

 
(314
)
Other, net
(17
)
 
—

 
(17
)
 
16

 
(18
)
Net cash (used in) provided by financing activities
(1,916
)
 
176

 
(2,659
)
 
2,122

 
(2,277
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
(562
)
 
—

 
(569
)
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
$
—

 
$
—

 
$
4,141

 
$
—

 
$
4,141
v3.19.2
New Accounting Standard (Tables)
 6 Months Ended
Jun. 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 June 30, 2019, follow (in millions):
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
$
242

 
 
Short-term lease liabilities (included in accounts payable and accrued liabilities)
$
47

Long-term lease liabilities (included in other liabilities)
216

Total lease liabilities
$
263
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
 
Six Months Ended
 
June 30, 2019
 
June 30, 2019
 
 
 
 
Operating leases
$
21

 
$
33

Variable and short-term leases
19

 
40

Total lease costs
$
40

 
$
73
Schedule of future minimum payments for leases
The future minimum payments for leases presented in the consolidated balance sheets at June 30, 2019, follow (in millions):
Remaining six months of 2019
$
27

2020
54

2021
40

2022
33

2023
30

Thereafter
158

Total payments
342

Less amount representing interest
(79
)
Present value of net minimum lease payments
263

Less current portion
(47
)
Long-term portion
$
216
v3.19.2
General Information (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Jan. 01, 2023
Dec. 21, 2018
Net income (loss) $ (74) $ 1,035 $ 2   $ 1,852    
Freeport Cobalt | Held for sale              
Assets 135   135 $ 135      
Liabilities 20   20 20      
Consideration 150   150 150      
PT Freeport Indonesia              
Net income (loss) (56)   (4) (140)      
Investment owned, percent             81.00%
Net income (loss), FCX $ (46)   $ (3) $ (114)      
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%  
v3.19.2
Earnings per Share (Unaudited) Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]        
Net (loss) income from continuing operations $ (74) $ 1,039 $ 1 $ 1,867
Net loss (income) from continuing operations attributable to noncontrolling interests 2 (166) (43) (291)
Undistributed earnings allocated to participating securities (3) (3) (3) (4)
Net (loss) income from continuing operations attributable to common stockholders (75) 870 (45) 1,572
Net (loss) income from discontinued operations attributable to common stockholders 0 (4) 1 (15)
Net (loss) income attributable to common stockholders $ (75) $ 866 $ (44) $ 1,557
Basic weighted-average shares of common stock outstanding 1,451 1,449 1,451 1,449
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock unitsa 0 9 0 9
Diluted weighted-average shares of common stock outstanding 1,451 1,458 1,451 1,458
Basic net (loss) income per share attributable to common stockholders:        
Continuing operations (in dollars per share) $ (0.05) $ 0.60 $ (0.03) $ 1.08
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, basic (in dollars per share) (0.05) 0.60 (0.03) 1.07
Diluted net (loss) income per share attributable to common stockholders:        
Continuing operations (in dollars per share) (0.05) 0.59 (0.03) 1.08
Discontinued operations (in dollars per share) 0 0 0 (0.01)
Earnings per share, diluted (in dollars per share) $ (0.05) $ 0.59 $ (0.03) $ 1.07
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 10 2 12 3
Dilutive Securities Excluded from Computation of EPS Amount 43 35 41 34
v3.19.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Components of Inventories [Line Items]        
Total materials and supplies, net $ 1,634 $ 1,634   $ 1,528
Mill stockpiles, current 227 227   282
Leach stockpiles, current 1,125 1,125   1,171
Total current mill and leach stockpiles 1,352 1,352   1,453
Raw materials (primarily concentrate) 295 295   260
Work-in-process 156 156   192
Finished goods 940 940   1,326
Total product 1,391 1,391   1,778
Mill stockpiles, noncurrent 254 254   265
Leach stockpiles, noncurrent 1,093 1,093   1,049
Total long-term mill and leach stockpiles 1,347 1,347   1,314
Inventory obsolescence reserves 24 24   $ 24
Inventory Write-down $ 2 $ 59 $ 2  
v3.19.2
Income Taxes (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Consolidated effective income tax rate (percent)     101.00% 35.00%
Schedule Of Income Taxes [Line Items]        
U.S. operations     $ 20 $ 8
International operations     (110) (1,029)
Total $ 15 $ (515) (90) $ (1,021)
State law changes     18  
Settlement of state income tax examination $ 5   $ 5  
v3.19.2
Debt and Equity (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 26, 2019
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
May 02, 2019
Mar. 27, 2019
Dec. 31, 2018
Total Debt [Abstract]                  
Total debt   $ 9,916,000,000     $ 9,916,000,000       $ 11,141,000,000
Current portion of debt   (4,000,000)     (4,000,000)       (17,000,000)
Long-term debt, less current portion   9,912,000,000     9,912,000,000       11,124,000,000
Net gain (loss) on exchanges and early extinguishment of debt   0   $ 9,000,000 (6,000,000) $ 8,000,000      
Interest costs   $ 167,000,000   $ 165,000,000 $ 345,000,000 $ 341,000,000      
Dividends declared per share of common stock (in dollars per share) $ 0.05 $ 0.05   $ 0.05 $ 0.10 $ 0.10      
Property, Plant and Equipment [Member]                  
Total Debt [Abstract]                  
Interest costs capitalized   $ 35,000,000   $ 23,000,000 $ 67,000,000 $ 48,000,000      
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]                  
Net gain (loss) on exchanges and early extinguishment of debt     $ (1,000,000)            
Repayments of credit facility     200,000,000            
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] | FCX [Member]                  
Total Debt [Abstract]                  
Total debt   8,595,000,000     8,595,000,000       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   $ 139,000,000     $ 139,000,000       $ 166,000,000
v3.19.2
Financial Instruments (Unrealized gains losses) (Details)
oz in Thousands, lb in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
lb
oz
$ / lb
$ / oz
Mar. 31, 2019
lb
$ / lb
$ / lb
Jun. 30, 2019
USD ($)
$ / lb
$ / oz
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
$ / lb
$ / oz
Jun. 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 | $     $ (109) $ (44) $ 11 $ (161)
Commodity Contract [Member]            
Unrealized gains (losses):            
Derivative financial instruments | $     (13) (4) 5 (19)
Hedged item – firm sales commitments | $     13 4 (5) 19
Realized gains (losses):            
Matured derivative financial instruments | $     (3) 0 (1) 2
Commodity Contract [Member] | Designated as Hedging Instrument [Member]            
Derivative Instruments, Gain (Loss) [Line Items]            
Derivative, Nonmonetary Notional Amount, Mass | lb   74        
Derivative, Average Forward Price   2.76        
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]            
Derivative Instruments, Gain (Loss) [Line Items]            
Derivative, Nonmonetary Notional Amount, Mass | lb   2        
Derivative, Average Forward Price   2.66        
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Cost of Sales            
Realized gains (losses):            
Matured derivative financial instruments | $     (4) 6 (3) 8
Copper | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]            
Realized gains (losses):            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $     $ (122) (14) $ 0 (149)
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 505          
Derivative, Average Forward Price 2.79   2.79   2.79  
Realized gains (losses):            
Derivative Average Market Price 2.72   2.72   2.72  
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 86          
Derivative, Average Forward Price 2.83   2.83   2.83  
Realized gains (losses):            
Derivative Average Market Price 2.72   2.72   2.72  
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 74          
Derivative, Average Forward Price | $ / oz 1,328   1,328   1,328  
Realized gains (losses):            
Derivative Average Market Price | $ / oz 1,416   1,416   1,416  
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 | $     $ 13 $ (30) $ 11 $ (12)
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 10.56   10.56   10.56  
Realized gains (losses):            
Derivative Average Market Price 8.88   8.88   8.88  
v3.19.2
Financial Instruments (Unsettled Derivatives) (Details)
oz in Thousands, lb in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
lb
oz
$ / lb
$ / oz
Mar. 31, 2019
lb
$ / lb
$ / lb
Jun. 30, 2019
USD ($)
$ / lb
$ / oz
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
$ / lb
$ / oz
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Derivatives, Fair Value [Line Items]              
Derivative Asset, Fair Value, Gross Asset $ 42   $ 42   $ 42   $ 23
Derivative Liability, Fair Value, Gross Liability 56   56   56   48
Derivative Asset, Fair Value, Gross Liability 5   5   5   7
Derivative Liability, Fair Value, Gross Asset 5   5   5   7
Derivative Asset 37   37   37   16
Derivative Liability 51   51   51   41
Trade accounts receivable [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Asset 26   26   26   3
Derivative Liability 22   22   22   24
Accounts Payable and Accrued Liabilities              
Derivatives, Fair Value [Line Items]              
Derivative Asset 11   11   11   13
Derivative Liability 29   29   29   17
Commodity Contract [Member]              
Derivatives, Fair Value [Line Items]              
Derivative, Gain (Loss) on Derivative, Net     (3) $ 0 (1) $ 2  
Derivative Asset, Fair Value, Gross Asset 1   1   1   0
Derivative Liability, Fair Value, Gross Liability 5   5   5   9
Derivative Asset, Fair Value, Gross Liability 1   1   1   0
Derivative Liability, Fair Value, Gross Asset 1   1   1   0
Derivative Asset 0   0   0   0
Derivative Liability 4   4   4   9
Embedded Derivative Financial Instruments [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Asset, Fair Value, Gross Asset 41   41   41   23
Derivative Liability, Fair Value, Gross Liability 51   51   51   39
Derivative Asset, Fair Value, Gross Liability 4   4   4   7
Derivative Liability, Fair Value, Gross Asset 4   4   4   7
Derivative Asset 37   37   37   16
Derivative Liability 47   47   47   32
Designated as Hedging Instrument [Member] | Commodity Contract [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Asset, Fair Value, Gross Asset 1   1   1   0
Derivative, Nonmonetary Notional Amount, Mass | lb   74          
Derivative, Average Forward Price | $ / lb   2.76          
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Asset, Fair Value, Gross Asset 41   41   41   23
Derivative Liability, Fair Value, Gross Liability 51   51   51   39
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]              
Derivatives, Fair Value [Line Items]              
Derivative, Nonmonetary Notional Amount, Mass | lb   2          
Derivative, Average Forward Price | $ / lb   2.66          
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 $ 5   $ 5   $ 5   $ 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 2.72   2.72   2.72    
Derivative, Nonmonetary Notional Amount, Mass | lb 505            
Derivative, Average Forward Price | $ / lb 2.79   2.79   2.79    
Copper | Long [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Average Market Price | $ / lb 2.72   2.72   2.72    
Derivative, Nonmonetary Notional Amount, Mass | lb 86            
Derivative, Average Forward Price | $ / lb 2.83   2.83   2.83    
Gold | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]              
Derivatives, Fair Value [Line Items]              
Derivative Average Market Price | $ / oz 1,416   1,416   1,416    
Derivative, Nonmonetary Notional Amount, Mass | oz 74            
Derivative, Average Forward Price | $ / oz 1,328   1,328   1,328    
Sales [Member] | Not Designated as Hedging Instrument [Member]              
Derivatives, Fair Value [Line Items]              
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net     $ (109) (44) $ 11 (161)  
Sales [Member] | Copper | Not Designated as Hedging Instrument [Member]              
Derivatives, Fair Value [Line Items]              
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net     (122) (14) 0 (149)  
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     13 (30) 11 (12)  
Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]              
Derivatives, Fair Value [Line Items]              
Derivative, Gain (Loss) on Derivative, Net     $ (4) $ 6 $ (3) $ 8  
v3.19.2
Financial Instruments (Derivative) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Dec. 31, 2017
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 2,623 $ 4,217    
Restricted Cash and Cash Equivalents, Current 218 110    
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 3,006 4,455 $ 4,141 $ 4,710
Credit Derivative, Maximum Exposure, Undiscounted 37      
Bank Time Deposits [Member]        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 1,400 $ 2,300    
v3.19.2
Fair Value Measurement (Fair Value Measurement Inputs) (Details)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
$ / bbl
Dec. 31, 2016
USD ($)
$ / bbl
Nov. 16, 2016
USD ($)
$ / lb
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current $ 760       $ 422    
Other assets 2,168       2,172    
Proceeds from Sale of Other Assets, contingent consideration 91 $ 0          
Assets 41,086 $ 37,028     42,216    
Derivative Liability, Fair Value, Gross Liability 56       48    
Investment securities (current and long-term):              
Marketable Securities 0            
Derivatives:              
Derivative Asset 37       16    
Derivatives: [Abstract]              
Derivative Liability 51       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 26       25    
Trust Assets Fair Value Disclosure 58       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 7       5    
Derivatives:              
Derivative Asset 1       0    
Derivatives: [Abstract]              
Derivative Liability 4       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 126       121    
Derivatives:              
Derivative Asset 120       96    
Derivatives: [Abstract]              
Derivative Liability 52       41    
Long-term debt, including current portion 9,861       10,238    
Level 3              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable 111       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 111       127    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 30       29    
Trust Assets Fair Value Disclosure 191       181    
Derivatives:              
Derivative Asset 121       96    
Derivatives: [Abstract]              
Derivative Liability 56       48    
Long-term debt, including current portion 9,861       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 132       143    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure 30       29    
Trust Assets Fair Value Disclosure 191       181    
Derivatives:              
Derivative Asset 121       96    
Derivatives: [Abstract]              
Derivative Liability 56       48    
Long-term debt, including current portion 9,916       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 51       39    
Derivatives:              
Derivative Asset 37       16    
Derivatives: [Abstract]              
Derivative Liability 47       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 41       23    
Derivatives: [Abstract]              
Derivative Liability 51       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 41       23    
Derivatives: [Abstract]              
Derivative Liability 51       39    
Embedded Derivative Financial Instruments [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset 41       23    
Derivatives: [Abstract]              
Derivative Liability 51       39    
Commodity Contract [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability 5       9    
Derivatives:              
Derivative Asset 0       0    
Derivatives: [Abstract]              
Derivative Liability 4       9    
Commodity Contract [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset 0            
Derivatives: [Abstract]              
Derivative Liability 0       0    
Commodity Contract [Member] | Level 1              
Derivatives: [Abstract]              
Derivative Liability 4       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 5       9    
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives: [Abstract]              
Derivative Liability 5       9    
Future [Member] | Level 1              
Derivatives:              
Derivative Asset 1            
Future [Member] | Level 2              
Derivatives:              
Derivative Asset 0            
Future [Member] | Level 3              
Derivatives:              
Derivative Asset 0            
Future [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset 1            
Future [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset 1            
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 79       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 79       73    
Africa and onshore California [Member] | Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset 79       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 26       25    
Trust Assets Fair Value Disclosure 58       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 26       25    
Trust Assets Fair Value Disclosure 58       55    
U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Marketable Securities 26       25    
Trust Assets Fair Value Disclosure 58       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 37       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 37       36    
Government bonds | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 37       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 32       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 32       28    
Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 32       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 37       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 37       38    
Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 37       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 7       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 7       5    
Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 7       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 7       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 7       7    
Collateralized Mortgage Backed Securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure 7       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 218       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 51       39    
TF Holdings Limited | Discontinued Operations, Disposed of by Sale              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other assets 59       57    
Discontinued Operation, Contingent Receivable             $ 120
Copper | TF Holdings Limited | Discontinued Operations, 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 | Discontinued Operations, 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, Current 7            
Other assets 13       16    
Discontinued Operation, Contingent Receivable           $ 150  
Proceeds from Sale of Other Assets, contingent consideration 50            
Assets 20            
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 14       27    
Other assets $ 118       $ 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 | Discontinued Operations, Disposed of by Sale              
Derivatives:              
Contingent consideration, reference threshold (in us dollars per pound) | $ / lb             3.50
v3.19.2
Fair Value Measurement (Unobservable inputs) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Other Assets, Current $ 760 $ 422  
Other Assets, Noncurrent 2,168 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 (11)    
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 (5)    
Fair value at June 30, 2019 111    
Onshore California [Member] | Freeport-McMoRan Oil & Gas      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Contingent Receivable     $ 150
Other Assets, Current 7    
Other Assets, Noncurrent $ 13 $ 16  
v3.19.2
Contingencies and Commitments (Unaudited) - Litigation (Details) - Pending litigation - Asbestos contamination in talc-based personal care products - Asbestos contamination
$ in Millions
Mar. 13, 2019
USD ($)
Johnson & Johnson and Cyprus Mines  
Loss Contingencies [Line Items]  
Loss contingency, estimate of possible loss $ 29
Cyprus Mines  
Loss Contingencies [Line Items]  
Loss contingency, estimate of possible loss $ 2
v3.19.2
Contingencies and Commitments (Unaudited) - Tax and Other Matters (Details)
$ in Millions, Rp in Billions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2018
IDR (Rp)
Mar. 31, 2019
Dec. 21, 2018
Loss Contingencies [Line Items]                
Production and delivery $ 3,002 $ 2,915 $ 5,978 $ 5,723        
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]                
Loss contingency, offer         $ 69      
Litigation settlement, agreed to pay         $ 99 Rp 1,394    
PT Freeport Indonesia                
Loss Contingencies [Line Items]                
Investment owned, percent               81.00%
PT Freeport Indonesia | Pt Smelting                
Loss Contingencies [Line Items]                
Investment owned, percent             25.00%  
v3.19.2
Business Segments (Product Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue from External Customer [Line Items]        
Treatment And Refining Charges Included In Copper Concentrates Revenues $ (100) $ (139) $ (205) $ (271)
Royalty Expense (19) (73) (49) (142)
Export Duties Expense (10) (55) (27) (101)
Revenue from Contract with Customer, Excluding Assessed Tax 3,655 5,212 7,327 10,197
Revenues 3,546 5,168 7,338 10,036
Sales [Member] | Not Designated as Hedging Instrument [Member]        
Revenue from External Customer [Line Items]        
Matured derivative financial instruments (109) (44) 11 (161)
Copper In Concentrates [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 1,134 1,703 2,299 3,350
Copper Cathode [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 959 1,183 1,818 2,368
Refined Copper Products [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 516 668 1,023 1,338
Purchased Copper [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 325 282 662 520
Gold        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 305 933 696 1,741
Molybdenum [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 327 310 615 596
Other Products Or Services [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax $ 218 $ 400 $ 495 $ 798
v3.19.2
Business Segments (Segment Reporting) (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
segment
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting Information [Line Items]          
Number of Operating Segments | segment     4    
Deferred Intercompany Profit, Percentage     25.00%    
Revenues $ 3,546 $ 5,168 $ 7,338 $ 10,036  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (3,002) (2,915) (5,978) (5,723)  
Cost, Depreciation, Amortization and Depletion 352 442 699 893  
Metals inventory adjustments 2   59 2  
Selling, general and administrative expenses (97) (109) (209) (240)  
Mining exploration and research expenses 31 24 58 45  
Environmental obligations and shutdown costs 23 59 65 68  
Net gain on sales of assets 8 (45) (25) (56)  
Operating income 33 1,664 354 3,123  
Interest expense, net (132) (142) (278) (293)  
Provision for (benefit from) income taxes (15) 515 90 1,021  
Total assets 41,086 37,028 41,086 37,028 $ 42,216
Capital expenditures 629 482 1,251 884  
Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 85 38 192 56  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (825) (789) (1,568) (1,580)  
Cost, Depreciation, Amortization and Depletion 87 92 170 186  
Selling, general and administrative expenses 0 (1) (2) (4)  
Mining exploration and research expenses 1 0 1 1  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating income 207 365 413 784  
Interest expense, net (1) (1) (2) (2)  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 7,838 7,193 7,838 7,193  
Capital expenditures 207 140 417 232  
Operating Segments | South America          
Segment Reporting Information [Line Items]          
Revenues 690 890 1,515 1,665  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (581) (578) (1,120) (1,121)  
Cost, Depreciation, Amortization and Depletion 119 133 233 260  
Selling, general and administrative expenses (2) (2) (4) (4)  
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 income 59 277 355 482  
Interest expense, net (25) (16) (54) (33)  
Provision for (benefit from) income taxes 11 108 116 180  
Total assets 10,270 10,345 10,270 10,345  
Capital expenditures 47 71 108 138  
Corporate And Eliminations          
Segment Reporting Information [Line Items]          
Revenues 471 612 927 1,204  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) 722 916 1,340 1,910  
Cost, Depreciation, Amortization and Depletion 19 14 39 35  
Selling, general and administrative expenses (60) (73) (133) (154)  
Mining exploration and research expenses 30 24 57 44  
Environmental obligations and shutdown costs 23 59 65 68  
Net gain on sales of assets 8 (45) (25) (56)  
Operating income (165) (26) (433) (109)  
Interest expense, net (99) (119) (209) (247)  
Provision for (benefit from) income taxes 7 (22) (20) 10  
Total assets 3,911 5,550 3,911 5,550  
Capital expenditures 28 20 51 54  
Intersegment          
Segment Reporting Information [Line Items]          
Revenues 0 0 0 0  
Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 1,035 1,209 1,962 2,499  
Intersegment | South America          
Segment Reporting Information [Line Items]          
Revenues 71 100 197 202  
Pt Smelting | Affiliated Entity [Member]          
Segment Reporting Information [Line Items]          
Revenues 470 649 879 1,300  
Morenci [Member] | Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 16 25 28 28  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (348) (298) (643) (588)  
Cost, Depreciation, Amortization and Depletion 43 44 83 90  
Selling, general and administrative expenses 0 (1) (1) (2)  
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 income 116 250 250 517  
Interest expense, net (1) (1) (2) (2)  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 2,917 2,819 2,917 2,819  
Capital expenditures 49 41 111 88  
Morenci [Member] | Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 491 568 949 1,169  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | North America          
Segment Reporting Information [Line Items]          
Revenues 69 13 164 28  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (477) (491) (925) (992)  
Cost, Depreciation, Amortization and Depletion 44 48 87 96  
Selling, general and administrative expenses 0 0 (1) (2)  
Mining exploration and research expenses 1 0 1 1  
Environmental obligations and shutdown costs 0 0 0 0  
Net gain on sales of assets 0 0 0 0  
Operating income 91 115 163 267  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 4,921 4,374 4,921 4,374  
Capital expenditures 158 99 306 144  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | South America          
Segment Reporting Information [Line Items]          
Revenues 128 171 226 321  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (126) (133) (226) (249)  
Cost, Depreciation, Amortization and Depletion 18 24 32 46  
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 income (16) 14 (32) 26  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes (9) 6 (14) 10  
Total assets 1,699 1,715 1,699 1,715  
Capital expenditures 4 3 9 7  
Other Individually Immaterial Operating Segments [Member] | Intersegment | North America          
Segment Reporting Information [Line Items]          
Revenues 544 641 1,013 1,330  
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 562 719 1,289 1,344  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (455) (445) (894) (872)  
Cost, Depreciation, Amortization and Depletion 101 109 201 214  
Selling, general and administrative expenses (2) (2) (4) (4)  
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 income 75 263 387 456  
Interest expense, net (25) (16) (54) (33)  
Provision for (benefit from) income taxes 20 102 130 170  
Total assets 8,571 8,630 8,571 8,630  
Capital expenditures 43 68 99 131  
Cerro Verde [Member] | Intersegment | South America          
Segment Reporting Information [Line Items]          
Revenues 71 100 197 202  
Grasberg Segment [Member]          
Segment Reporting Information [Line Items]          
Capital expenditures     658 449  
Grasberg Segment [Member] | Operating Segments | Indonesia          
Segment Reporting Information [Line Items]          
Revenues 583 1,639 1,288 3,160  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (554) (425) (1,110) (882)  
Cost, Depreciation, Amortization and Depletion 99 172 204 353  
Selling, general and administrative expenses (30) (28) (60) (67)  
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 income (101) 1,015 (29) 1,911  
Interest expense, net (1) 0 (1) 0  
Provision for (benefit from) income taxes (35) 429 (9) 830  
Total assets 16,261 10,911 16,261 10,911  
Capital expenditures 339 246 658 449  
Grasberg Segment [Member] | Intersegment | Indonesia          
Segment Reporting Information [Line Items]          
Revenues (1) 1 57 53  
Molybdenum [Member]          
Segment Reporting Information [Line Items]          
Capital expenditures     6 2  
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) (78) (71) (149) (138)  
Cost, Depreciation, Amortization and Depletion 18 21 34 40  
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 income 13 19 17 28  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 1,792 1,820 1,792 1,820  
Capital expenditures 2 1 6 2  
Molybdenum [Member] | Intersegment          
Segment Reporting Information [Line Items]          
Revenues 109 111 200 206  
Rod and Refining Segment [Member] | Operating Segments          
Segment Reporting Information [Line Items]          
Revenues 1,171 1,387 2,299 2,772  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (1,171) (1,389) (2,304) (2,777)  
Cost, Depreciation, Amortization and Depletion 3 3 5 5  
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 income 1 3 0 6  
Interest expense, net 0 0 0 0  
Provision for (benefit from) income taxes 0 0 0 0  
Total assets 250 278 250 278  
Capital expenditures 1 1 2 2  
Rod and Refining Segment [Member] | Intersegment          
Segment Reporting Information [Line Items]          
Revenues 4 8 10 16  
Atlantic Copper Smelting and Refining Segment [Member] | Operating Segments          
Segment Reporting Information [Line Items]          
Revenues 546 602 1,117 1,179  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31) (515) (579) (1,067) (1,135)  
Cost, Depreciation, Amortization and Depletion 7 7 14 14  
Selling, general and administrative expenses (5) (5) (10) (11)  
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 income 19 11 31 21  
Interest expense, net (6) (6) (12) (11)  
Provision for (benefit from) income taxes 2 0 3 1  
Total assets 764 931 764 931  
Capital expenditures 5 3 9 7  
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 $ (1,218) $ (1,429) $ (2,431) $ (2,978)  
v3.19.2
Guarantor Financial Statements (Details)
Jun. 30, 2019
FM O&G LLC Guarantor [Member]  
Condensed Financial Statements, Captions [Line Items]  
Noncontrolling Interest, Ownership Percentage by Parent 10000.00%
v3.19.2
Guarantor Financial Statements (Unaudited) Condensed Consolidating Balance Sheets (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
ASSETS            
Current assets, other than assets held-for-sale $ 8,730   $ 10,720      
Property, plant, equipment and mine development costs, net 28,841   28,010      
Investments in consolidated subsidiaries 0   0      
Other assets 3,515   3,486      
Total assets 41,086   42,216 $ 37,028    
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 3,286   3,329      
Long-term debt, less current portion 9,912   11,124      
Deferred income taxes 4,055   4,032      
Environmental and asset retirement obligations, less current portion 3,617   3,609      
Investments in consolidated subsidiaries 0   0      
Other liabilities 2,399   2,230      
Total liabilities 23,269   24,324      
Equity:            
Stockholders' equity 9,709   9,798      
Noncontrolling interests 8,108   8,094      
Total equity 17,817 $ 17,841 17,892 $ 12,842 $ 11,926 $ 11,296
Total liabilities and equity 41,086   42,216      
Eliminations [Member]            
ASSETS            
Current assets, other than assets held-for-sale (558)   (585)      
Property, plant, equipment and mine development costs, net 0   0      
Investments in consolidated subsidiaries (17,773)   (19,064)      
Other assets (1,093)   (635)      
Total assets (19,424)   (20,284)      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale (598)   (617)      
Long-term debt, less current portion (11,743)   (11,103)      
Deferred income taxes 0   0      
Environmental and asset retirement obligations, less current portion 0   0      
Investments in consolidated subsidiaries (11,322)   (11,091)      
Other liabilities (3,487)   (3,486)      
Total liabilities (27,150)   (26,297)      
Equity:            
Stockholders' equity 2,272   601      
Noncontrolling interests 5,454   5,412      
Total equity 7,726   6,013      
Total liabilities and equity (19,424)   (20,284)      
FCX Issuer [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 84   309      
Property, plant, equipment and mine development costs, net 18   19      
Investments in consolidated subsidiaries 17,773   19,064      
Other assets 1,335   880      
Total assets 19,210   20,272      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 255   245      
Long-term debt, less current portion 8,595   9,594      
Deferred income taxes 561   524      
Environmental and asset retirement obligations, less current portion 0   0      
Investments in consolidated subsidiaries 0   0      
Other liabilities 90   111      
Total liabilities 9,501   10,474      
Equity:            
Stockholders' equity 9,709   9,798      
Noncontrolling interests 0   0      
Total equity 9,709   9,798      
Total liabilities and equity 19,210   20,272      
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 570   620      
Property, plant, equipment and mine development costs, net 2   7      
Investments in consolidated subsidiaries 0   0      
Other assets 21   23      
Total assets 593   650      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 55   34      
Long-term debt, less current portion 7,097   6,984      
Deferred income taxes 0   0      
Environmental and asset retirement obligations, less current portion 234   227      
Investments in consolidated subsidiaries 594   578      
Other liabilities 3,340   3,340      
Total liabilities 11,320   11,163      
Equity:            
Stockholders' equity (10,727)   (10,513)      
Noncontrolling interests 0   0      
Total equity (10,727)   (10,513)      
Total liabilities and equity 593   650      
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]            
ASSETS            
Current assets, other than assets held-for-sale 8,634   10,376      
Property, plant, equipment and mine development costs, net 28,821   27,984      
Investments in consolidated subsidiaries 0   0      
Other assets 3,252   3,218      
Total assets 40,707   41,578      
LIABILITIES AND EQUITY            
Current liabilities, other than liabilities held for sale 3,574   3,667      
Long-term debt, less current portion 5,963   5,649      
Deferred income taxes 3,494   3,508      
Environmental and asset retirement obligations, less current portion 3,383   3,382      
Investments in consolidated subsidiaries 10,728   10,513      
Other liabilities 2,456   2,265      
Total liabilities 29,598   28,984      
Equity:            
Stockholders' equity 8,455   9,912      
Noncontrolling interests 2,654   2,682      
Total equity 11,109   12,594      
Total liabilities and equity $ 40,707   $ 41,578      
v3.19.2
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenues $ 3,546 $ 5,168 $ 7,338 $ 10,036
Total costs and expenses 3,513 3,504 6,984 6,913
Operating income (loss) 33 1,664 354 3,123
Interest expense, net (132) (142) (278) (293)
Other Nonoperating Income (Expense) 5 29 13 57
Net gain (loss) on early extinguishment of debt 0 9 (6) 8
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (94) 1,551 89 2,887
Benefit from (provision for) income taxes 15 (515) (90) (1,021)
Equity in affiliated companies’ net earnings (losses) 5 3 2 1
Net (loss) income from continuing operations (74) 1,039 1 1,867
Net (loss) income from discontinued operations 0 (4) 1 (15)
Net income (74) 1,035 2 1,852
Net loss (income) from continuing operations attributable to noncontrolling interests 2 (166) (43) (291)
Net (loss) income attributable to common stockholders (72) 869 (41) 1,561
Other comprehensive income (loss) 12 11 23 23
Total comprehensive income (loss) (60) 880 (18) 1,584
Eliminations [Member]        
Revenues 0 0 0 0
Total costs and expenses 2 (9) 0 (10)
Operating income (loss) (2) 9 0 10
Interest expense, net 135 123 274 225
Other Nonoperating Income (Expense) (1) (123) (74) (225)
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings 132 9 200 10
Benefit from (provision for) income taxes 0 (2) 0 (2)
Equity in affiliated companies’ net earnings (losses) 92 (803) 77 (1,552)
Net (loss) income from continuing operations   (796) 277 (1,544)
Net (loss) income from discontinued operations   0 0 0
Net income 224 (796) 277 (1,544)
Net loss (income) from continuing operations attributable to noncontrolling interests 10 (64) (1) (118)
Net (loss) income attributable to common stockholders 234 (860) 276 (1,662)
Other comprehensive income (loss) (12) (11) (23) (23)
Total comprehensive income (loss) 222 (871) 253 (1,685)
FCX Issuer [Member] | Reportable Legal Entities [Member]        
Revenues 0 0 0 0
Total costs and expenses 4 4 17 13
Operating income (loss) (4) (4) (17) (13)
Interest expense, net (83) (97) (173) (201)
Other Nonoperating Income (Expense) (1) 132 64 233
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (88) 31 (126) 19
Benefit from (provision for) income taxes (7) (11) (8) (94)
Equity in affiliated companies’ net earnings (losses) 23 849 93 1,636
Net (loss) income from continuing operations   869 (41) 1,561
Net (loss) income from discontinued operations   0 0 0
Net income (72) 869 (41) 1,561
Net loss (income) from continuing operations attributable to noncontrolling interests 0 0 0 0
Net (loss) income attributable to common stockholders (72) 869 (41) 1,561
Other comprehensive income (loss) 12 11 23 23
Total comprehensive income (loss) (60) 880 (18) 1,584
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]        
Revenues 13 16 16 31
Total costs and expenses 26 (16) 26 (8)
Operating income (loss) (13) 32 (10) 39
Interest expense, net (82) (76) (168) (140)
Other Nonoperating Income (Expense) 0 2 0 2
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (95) (42) (178) (99)
Benefit from (provision for) income taxes 22 10 40 22
Equity in affiliated companies’ net earnings (losses) (21) 2 (16) (4)
Net (loss) income from continuing operations   (30) (154) (81)
Net (loss) income from discontinued operations   0 0 0
Net income (94) (30) (154) (81)
Net loss (income) from continuing operations attributable to noncontrolling interests 0 0 0 0
Net (loss) income attributable to common stockholders (94) (30) (154) (81)
Other comprehensive income (loss) 0 0 0 0
Total comprehensive income (loss) (94) (30) (154) (81)
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
Revenues 3,533 5,152 7,322 10,005
Total costs and expenses 3,481 3,525 6,941 6,918
Operating income (loss) 52 1,627 381 3,087
Interest expense, net (102) (92) (211) (177)
Other Nonoperating Income (Expense) 7 18 23 47
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (43) 1,553 193 2,957
Benefit from (provision for) income taxes 0 (512) (122) (947)
Equity in affiliated companies’ net earnings (losses) (89) (45) (152) (79)
Net (loss) income from continuing operations   996 (81) 1,931
Net (loss) income from discontinued operations   (4) 1 (15)
Net income (132) 992 (80) 1,916
Net loss (income) from continuing operations attributable to noncontrolling interests (8) (102) (42) (173)
Net (loss) income attributable to common stockholders (140) 890 (122) 1,743
Other comprehensive income (loss) 12 11 23 23
Total comprehensive income (loss) $ (128) $ 901 $ (99) $ 1,766
v3.19.2
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year $ 3,006 $ 4,141 $ 3,006 $ 4,141 $ 4,455 $ 4,710
Cash flow from operating activities:            
Net cash provided by operating activities     1,088 2,678    
Cash flow from investing activities:            
Capital expenditures (629) (482) (1,251) (884)    
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     86 (86)    
Net cash used in investing activities     (1,167) (970)    
Cash flow from financing activities:            
Proceeds from debt     328 352    
Repayments of debt     (1,563) (2,297)    
Intercompany loans     0 0    
Cash dividends paid and contributions received, net     (125) (314)    
Other, net     (10) (18)    
Net cash used in financing activities     (1,370) (2,277)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     (1,449) (569)    
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     640 442    
Dividends from (investments in) consolidated subsidiaries     (1,519) (2,564)    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     0 0    
Net cash used in investing activities     (879) (2,122)    
Cash flow from financing activities:            
Proceeds from debt     0 0    
Repayments of debt     0 0    
Intercompany loans     (640) (442)    
Cash dividends paid and contributions received, net     1,499 2,548    
Other, net     20 16    
Net cash used in financing activities     879 2,122    
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     330 (163)    
Cash flow from investing activities:            
Capital expenditures     0 (2)    
Intercompany loans     (640) (442)    
Dividends from (investments in) consolidated subsidiaries     1,470 2,519    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     (1) 4    
Net cash used in investing activities     829 2,079    
Cash flow from financing activities:            
Proceeds from debt     0 0    
Repayments of debt     (1,003) (1,826)    
Intercompany loans     0 0    
Cash dividends paid and contributions received, net     (146) (73)    
Other, net     (10) (17)    
Net cash used in financing activities     (1,159) (1,916)    
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     (204) (184)    
Cash flow from investing activities:            
Capital expenditures     0 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     91 1    
Net cash used in investing activities     91 1    
Cash flow from financing activities:            
Proceeds from debt     0 0    
Repayments of debt     0 (52)    
Intercompany loans     113 228    
Cash dividends paid and contributions received, net     0 0    
Other, net     0 0    
Net cash used in financing activities     113 176    
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 $ 3,006 $ 4,141 3,006 4,141 $ 4,455 $ 4,703
Cash flow from operating activities:            
Net cash provided by operating activities     962 3,025    
Cash flow from investing activities:            
Capital expenditures     (1,251) (882)    
Intercompany loans     0 0    
Dividends from (investments in) consolidated subsidiaries     47 45    
Proceeds From Divestiture Of Business And Interests In Affiliates And Proceeds From Sale Of Other Assets     (4) (91)    
Net cash used in investing activities     (1,208) (928)    
Cash flow from financing activities:            
Proceeds from debt     328 352    
Repayments of debt     (560) (419)    
Intercompany loans     527 214    
Cash dividends paid and contributions received, net     (1,478) (2,789)    
Other, net     (20) (17)    
Net cash used in financing activities     (1,203) (2,659)    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect     $ (1,449) $ (562)    
v3.19.2
New Accounting Standard - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Jan. 01, 2019
Lessee Disclosure [Abstract]        
Lease right-of-use assets $ 242 $ 242   $ 243
Lease liability 263 263   $ 243
Lease costs $ 40 73 $ 80  
Lease payments   $ 20    
Lease weighted-average discount rate 5.20% 5.20%    
Lease,weighted average remaining lease term 8 years 9 months 18 days 8 years 9 months 18 days    
v3.19.2
New Accounting Standard - Leases Presented in Balance Sheet (Details) - USD ($)
$ in Millions
Jun. 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) $ 242 $ 243
Short-term lease liabilities (included in accounts payable and accrued liabilities) 47  
Long-term lease liabilities (included in other liabilities) 216  
Total lease liabilities $ 263 $ 243
v3.19.2
New Accounting Standard - Operating Lease Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Lease, Cost [Abstract]      
Operating leases $ 21 $ 33  
Variable and short-term leases 19 40  
Total lease costs $ 40 $ 73 $ 80
v3.19.2
New Accounting Standard - Future Minimum Payments for Leases (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Jan. 01, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
Remaining six months of 2019 $ 27  
2020 54  
2021 40  
2022 33  
2023 30  
Thereafter 158  
Total payments 342  
Less amount representing interest (79)  
Total lease liabilities 263 $ 243
Less current portion (47)  
Long-term portion $ 216  
v3.19.2
Subsequent Events (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Aug. 15, 2019
Sep. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Aug. 01, 2019
Subsequent Event [Line Items]              
Net gain (loss) on early extinguishment of debt     $ 0 $ 9 $ (6) $ 8  
Senior Notes due 2027, 5.00% | Subsequent event              
Subsequent Event [Line Items]              
Debt             $ 600
Stated interest rate             5.00%
Senior Notes due 2029, 5.25% | Subsequent event              
Subsequent Event [Line Items]              
Debt             $ 600
Stated interest rate             5.25%
Senior Notes due 2023, 6.875%              
Subsequent Event [Line Items]              
Debt     $ 764   $ 764    
Senior Notes due 2023, 6.875% | Subsequent event              
Subsequent Event [Line Items]              
Stated interest rate 6.875%            
Forecast              
Subsequent Event [Line Items]              
Proceeds from repayment of debt $ 1,187            
Repurchase of debt $ 430            
Net gain (loss) on early extinguishment of debt   $ (15)          
Forecast | Senior Notes due 2021, 4.00%              
Subsequent Event [Line Items]              
Stated interest rate 4.00%            
Forecast | Senior Notes due 2022, 3.55%              
Subsequent Event [Line Items]              
Stated interest rate 3.55%            
Forecast | Senior Notes due 2023, 3.875%              
Subsequent Event [Line Items]              
Stated interest rate 3.875%