☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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74-2480931
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(State or other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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333 North Central Avenue
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Phoenix
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Arizona
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.10 per share
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FCX
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The New York Stock Exchange
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Portions of our proxy statement for our 2020 annual meeting of stockholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.
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TABLE OF CONTENTS
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Page
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a.
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Prior to December 21, 2018, we owned 90.64 percent of PT-FI and PT-FI had an unincorporated joint venture with Rio Tinto plc (Rio Tinto). Refer to Note 2 for further discussion of the PT-FI divestment transaction and Note 3 for discussion of the former joint venture with Rio Tinto (Rio Tinto Joint Venture).
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b.
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FMC has a 72 percent undivided interest in Morenci via an unincorporated joint venture. Refer to Note 3 for further discussion.
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Copper
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Gold
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Molybdenum
|
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|||
North America
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40
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%
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2
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%
|
|
80
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%
|
a
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South America
|
29
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|
|
—
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20
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Indonesia
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31
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98
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—
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100
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%
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100
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%
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100
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%
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a.
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Our Henderson and Climax molybdenum mines contain 20 percent of our estimated consolidated recoverable proven and probable molybdenum reserves, and our North America copper mines contain 60 percent.
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Copper
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Gold
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Molybdenum
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|||
North America
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45
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%
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2
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%
|
|
68
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%
|
a
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South America
|
36
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|
|
—
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32
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Indonesia
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19
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98
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—
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100
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%
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100
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%
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100
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%
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a.
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Our Henderson and Climax molybdenum mines produced 32 percent of our consolidated molybdenum production, and our North America copper mines produced 36 percent.
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2019
|
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2018
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|
2017
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|||
Third parties
|
34
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%
|
|
60
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%
|
|
54
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%
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PT Smelting
|
64
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|
38
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46
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|
Atlantic Copper
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2
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2
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—
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100
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%
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100
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%
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100
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%
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Location
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Number of Unions
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Number of
Union-
Represented Employees
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Expiration Date
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|||
PT-FI – Indonesia
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2
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5,020
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September 2019
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a
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Cerro Verde – Peru
|
1
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3,421
|
|
August 2021
|
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El Abra – Chile
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2
|
788
|
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April 2023
|
|
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Atlantic Copper – Spain
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3
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484
|
|
December 2019
|
b
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Kokkola - Finland
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3
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187
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November 2020
|
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Rotterdam – The Netherlands
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1
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60
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September 2022
|
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Kisanfu – Africa Exploration
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2
|
53
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N/A
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c
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Stowmarket - United Kingdom
|
1
|
44
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May 2020
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a.
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The Collective Labor Agreement (CLA) between PT-FI and its workers' unions expired in September 2019, but remains valid in accordance with Indonesia law until a new agreement is reached. A new agreement is currently under negotiation.
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b.
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The CLA between Atlantic Copper and its workers' unions expired in December 2019, but remains active by mutual agreement from both parties in accordance with Spanish law. Negotiations on a new agreement are set to begin soon.
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c.
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The CLA between Kisanfu and its unions has no expiration date, but can be amended at any time in accordance with an established process.
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2019
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2018
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2017
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|||
Third parties
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73
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%
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|
77
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%
|
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67
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%
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North America copper mines
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22
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|
|
14
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|
|
18
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South America mining
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2
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5
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15
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Indonesia mining
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3
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4
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|
—
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100
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%
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100
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%
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100
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%
|
|
•
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comprehensive job training programs
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•
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clean water and sanitation projects
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•
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public health programs, including malaria control and human immunodeficiency virus
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•
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agricultural assistance programs
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•
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small and medium enterprise development programs
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•
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basic education programs
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•
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cultural promotion and preservation programs
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•
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community infrastructure development
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•
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charitable donations
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Years Ended December 31,
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|||||||||||||||||||
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Production
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Sales
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|||||||||||||||||
COPPER (millions of recoverable pounds)
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2019
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2018
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2017
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2019
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2018
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2017
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|||||||||
(FCX’s net interest in %)
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|||||||||
North America
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|
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|
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|||||||||
Morenci (72%)a
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730
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|
684
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737
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717
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|
700
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|
|
713
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|||
Bagdad (100%)
|
218
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|
|
199
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|
|
173
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|
|
218
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|
|
197
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|
|
164
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|
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|||
Safford (100%)
|
110
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|
123
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|
150
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|
|
111
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|
|
127
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|
|
154
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|
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|||
Sierrita (100%)
|
160
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|
|
152
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|
|
160
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|
|
157
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|
|
154
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|
|
154
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|
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|||
Miami (100%)
|
15
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|
16
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19
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|
15
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16
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|
|
18
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|
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|||
Chino (100%)
|
175
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|
|
173
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|
215
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|
|
174
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|
|
176
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|
|
217
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|
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|||
Tyrone (100%)
|
48
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|
55
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|
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61
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|
|
49
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|
|
56
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|
|
61
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|
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|||
Other (100%)
|
1
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|
|
2
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|
|
3
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|
|
1
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|
|
2
|
|
|
3
|
|
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|||
Total North America
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1,457
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1,404
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|
|
1,518
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|
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1,442
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|
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1,428
|
|
|
1,484
|
|
|
|||
South America
|
|
|
|
|
|
|
|
|
|
|
|
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|||||||||
Cerro Verde (53.56%)
|
1,003
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|
|
1,049
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|
|
1,062
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|
|
1,002
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|
|
1,051
|
|
|
1,062
|
|
|
|||
El Abra (51%)
|
180
|
|
|
200
|
|
|
173
|
|
|
181
|
|
|
202
|
|
|
173
|
|
|
|||
Total South America
|
1,183
|
|
|
1,249
|
|
|
1,235
|
|
|
1,183
|
|
|
1,253
|
|
|
1,235
|
|
|
|||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Grasberg minerals districtb
|
607
|
|
|
1,160
|
|
|
984
|
|
|
667
|
|
|
1,130
|
|
|
981
|
|
|
|||
Consolidated
|
3,247
|
|
|
3,813
|
|
|
3,737
|
|
|
3,292
|
|
c
|
3,811
|
|
c
|
3,700
|
|
c
|
|||
Less noncontrolling interests
|
668
|
|
|
695
|
|
|
670
|
|
|
679
|
|
|
694
|
|
|
670
|
|
|
|||
Net
|
2,579
|
|
|
3,118
|
|
|
3,067
|
|
|
2,613
|
|
|
3,117
|
|
|
3,030
|
|
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|||
Average realized price per pound
|
|
|
|
|
|
|
$
|
2.73
|
|
|
$
|
2.91
|
|
|
$
|
2.93
|
|
|
|||
GOLD (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
North America (100%)
|
19
|
|
|
23
|
|
|
23
|
|
|
18
|
|
|
23
|
|
|
22
|
|
|
|||
Indonesiab
|
863
|
|
|
2,416
|
|
|
1,554
|
|
|
973
|
|
|
2,366
|
|
|
1,540
|
|
|
|||
Consolidated
|
882
|
|
|
2,439
|
|
|
1,577
|
|
|
991
|
|
|
2,389
|
|
|
1,562
|
|
|
|||
Less noncontrolling interests
|
162
|
|
|
228
|
|
|
145
|
|
|
182
|
|
|
223
|
|
|
144
|
|
|
|||
Net
|
720
|
|
|
2,211
|
|
|
1,432
|
|
|
809
|
|
|
2,166
|
|
|
1,418
|
|
|
|||
Average realized price per ounce
|
|
|
|
|
|
|
$
|
1,415
|
|
|
$
|
1,254
|
|
|
$
|
1,268
|
|
|
|||
MOLYBDENUM (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Henderson (100%)
|
12
|
|
|
14
|
|
|
12
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Climax (100%)
|
17
|
|
|
21
|
|
|
20
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
North America copper mines (100%)a
|
32
|
|
|
32
|
|
|
33
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Cerro Verde (53.56%)
|
29
|
|
|
28
|
|
|
27
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Consolidated
|
90
|
|
|
95
|
|
|
92
|
|
|
90
|
|
|
94
|
|
|
95
|
|
|
|||
Less noncontrolling interest
|
13
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
13
|
|
|
12
|
|
|
|||
Net
|
77
|
|
|
82
|
|
|
79
|
|
|
77
|
|
|
81
|
|
|
83
|
|
|
|||
Average realized price per pound
|
|
|
|
|
|
|
$
|
12.61
|
|
|
$
|
12.50
|
|
|
$
|
9.33
|
|
|
a.
|
Amounts are net of Morenci’s undivided joint venture partners’ interest.
|
b.
|
Effective December 21, 2018, our share ownership in PT-FI is 48.76 percent (refer to Note 2 for further discussion). Our economic interest in PT-FI is expected to approximate 81 percent through 2022 and 48.76 percent thereafter.
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c.
|
Consolidated sales volumes exclude purchased copper of 379 million pounds in 2019, 356 million pounds in 2018 and 273 million pounds in 2017.
|
|
Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2019
|
|
|||||||
|
Coppera
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|
|||
North America
|
47.2
|
|
|
0.5
|
|
|
2.87
|
|
|
South America
|
33.2
|
|
|
—
|
|
|
0.71
|
|
|
Indonesiab
|
35.6
|
|
|
29.1
|
|
|
—
|
|
|
Consolidated basisc
|
116.0
|
|
|
29.6
|
|
|
3.58
|
|
|
Net equity interestd
|
83.4
|
|
|
16.1
|
|
|
3.25
|
|
|
a.
|
Estimated consolidated recoverable copper reserves include 1.7 billion pounds in leach stockpiles and 0.5 billion pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
|
b.
|
Reflects estimates of minerals that can be recovered through 2041. Refer to Item 1A. “Risk Factors.”
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 3 for further discussion of our Morenci joint venture). Excluded from the table above are our estimated recoverable proven and probable reserves of 375 million ounces of silver, which were determined using $15 per ounce.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). Excluded from the table above are our estimated recoverable proven and probable reserves of 251 million ounces of silver. Our net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2020 through 2022 and 48.76 percent from 2023 through 2041.
|
|
|
|
Estimated Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||||||||||||||||
|
|
|
at December 31, 2019
|
||||||||||||||||||||||||||||||
|
|
|
Proven Reserves
|
|
|
Probable Reserves
|
|
||||||||||||||||||||||||||
|
|
|
|
|
Average Ore Grade
|
|
|
|
|
Average Ore Grade
|
|
||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Morenci
|
Mill
|
|
767
|
|
|
0.39
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
|
172
|
|
|
0.36
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
|
Crushed leach
|
|
419
|
|
|
0.42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
119
|
|
|
0.39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
2,229
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
729
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
Mill
|
|
1,918
|
|
|
0.33
|
|
|
—
|
|
a
|
0.02
|
|
|
1.39
|
|
|
|
592
|
|
|
0.29
|
|
|
—
|
|
a
|
0.02
|
|
|
1.19
|
|
|
|
ROM leach
|
|
14
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
11
|
|
|
0.26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford, including Lone Star
|
Crushed leach
|
|
641
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
171
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
Mill
|
|
2,662
|
|
|
0.23
|
|
|
—
|
|
a
|
0.02
|
|
|
1.17
|
|
|
|
299
|
|
|
0.18
|
|
|
—
|
|
a
|
0.02
|
|
|
0.92
|
|
|
Chino, including Cobre
|
Mill
|
|
146
|
|
|
0.52
|
|
|
0.05
|
|
|
0.01
|
|
|
0.94
|
|
|
|
79
|
|
|
0.49
|
|
|
0.04
|
|
|
—
|
|
a
|
0.85
|
|
|
|
ROM leach
|
|
91
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
8
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
ROM leach
|
|
44
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5
|
|
|
0.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
Mill
|
|
55
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|
—
|
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
|
Climax
|
Mill
|
|
152
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
|
|
|
|
9,138
|
|
|
|
|
|
|
|
|
|
|
|
2,204
|
|
b
|
|
|
|
|
|
|
|
|
||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cerro Verde
|
Mill
|
|
809
|
|
|
0.37
|
|
|
—
|
|
|
0.02
|
|
|
1.97
|
|
|
|
3,361
|
|
|
0.35
|
|
|
—
|
|
|
0.01
|
|
|
1.87
|
|
|
|
Crushed leach
|
|
39
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
10
|
|
|
0.33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
26
|
|
|
0.27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
21
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
Crushed leach
|
|
505
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
192
|
|
|
0.38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
14
|
|
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
6
|
|
|
0.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
1,393
|
|
|
|
|
|
|
|
|
|
|
|
3,590
|
|
|
|
|
|
|
|
|
|
|
||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Grasberg Block Cave
|
Mill
|
|
321
|
|
|
1.11
|
|
|
0.86
|
|
|
—
|
|
|
3.88
|
|
|
|
639
|
|
|
0.89
|
|
|
0.66
|
|
|
—
|
|
|
3.56
|
|
|
DMLZ
|
Mill
|
|
82
|
|
|
0.99
|
|
|
0.82
|
|
|
—
|
|
|
4.67
|
|
|
|
347
|
|
|
0.90
|
|
|
0.74
|
|
|
—
|
|
|
4.34
|
|
|
Big Gossan
|
Mill
|
|
17
|
|
|
2.55
|
|
|
1.03
|
|
|
—
|
|
|
15.71
|
|
|
|
38
|
|
|
2.22
|
|
|
0.95
|
|
|
—
|
|
|
13.26
|
|
|
DOZ
|
Mill
|
|
8
|
|
|
0.55
|
|
|
0.56
|
|
|
—
|
|
|
2.60
|
|
|
|
21
|
|
|
0.48
|
|
|
0.45
|
|
|
—
|
|
|
2.41
|
|
|
Kucing Liarc
|
Mill
|
|
132
|
|
|
1.33
|
|
|
1.09
|
|
|
—
|
|
|
7.03
|
|
|
|
208
|
|
|
1.20
|
|
|
1.01
|
|
|
—
|
|
|
6.43
|
|
|
|
|
|
561
|
|
b
|
|
|
|
|
|
|
|
|
|
1,252
|
|
b
|
|
|
|
|
|
|
|
|
||||||||
Total FCX - 100% Basis
|
|
|
11,091
|
|
b
|
|
|
|
|
|
|
|
|
|
7,046
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
Does not foot because of rounding.
|
c.
|
Would require additional capital investment, which could be significant, to bring into production.
|
•
|
g/t – grams per metric ton
|
•
|
Moly – Molybdenum
|
|
|
|
Estimated Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||||||||||||
|
|
|
at December 31, 2019
|
||||||||||||||||||||||||||
|
|
|
(continued)
|
||||||||||||||||||||||||||
|
|
|
Proven and
|
|
|
|
|||||||||||||||||||||||
|
|
|
Probablea
|
|
Average Ore Grade
|
|
Recoveriesb
|
|
|||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
|||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Morenci
|
Mill
|
|
939
|
|
|
0.38
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
81.5
|
|
|
—
|
|
|
49.2
|
|
|
—
|
|
|
|
Crushed leach
|
|
538
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
2,958
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
Mill
|
|
2,510
|
|
|
0.32
|
|
|
—
|
|
c
|
0.02
|
|
|
1.34
|
|
|
85.8
|
|
|
59.1
|
|
|
70.6
|
|
|
49.3
|
|
|
|
ROM leach
|
|
25
|
|
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford, including Lone Star
|
Crushed leach
|
|
812
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
Mill
|
|
2,960
|
|
|
0.23
|
|
|
—
|
|
c
|
0.02
|
|
|
1.14
|
|
|
83.0
|
|
|
58.4
|
|
|
77.7
|
|
|
49.3
|
|
|
Chino, including Cobre
|
Mill
|
|
224
|
|
|
0.51
|
|
|
0.05
|
|
|
0.01
|
|
|
0.91
|
|
|
80.0
|
|
|
77.9
|
|
|
36.8
|
|
|
78.5
|
|
|
|
ROM leach
|
|
100
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
ROM leach
|
|
49
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
Mill
|
|
67
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88.5
|
|
|
—
|
|
|
Climax
|
Mill
|
|
160
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89.5
|
|
|
—
|
|
|
|
|
|
11,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cerro Verde
|
Mill
|
|
4,170
|
|
|
0.36
|
|
|
—
|
|
|
0.01
|
|
|
1.89
|
|
|
86.3
|
|
|
—
|
|
|
54.3
|
|
|
44.7
|
|
|
|
Crushed leach
|
|
49
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
46
|
|
|
0.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
Crushed leach
|
|
697
|
|
|
0.42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
20
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
4,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Grasberg Block Cave
|
Mill
|
|
959
|
|
|
0.97
|
|
|
0.73
|
|
|
—
|
|
|
3.67
|
|
|
84.0
|
|
|
63.5
|
|
|
—
|
|
|
55.5
|
|
|
DMLZ
|
Mill
|
|
429
|
|
|
0.92
|
|
|
0.75
|
|
|
—
|
|
|
4.40
|
|
|
86.9
|
|
|
79.1
|
|
|
—
|
|
|
64.3
|
|
|
Big Gossan
|
Mill
|
|
55
|
|
|
2.33
|
|
|
0.97
|
|
|
—
|
|
|
14.04
|
|
|
91.2
|
|
|
67.7
|
|
|
—
|
|
|
63.7
|
|
|
DOZ
|
Mill
|
|
29
|
|
|
0.50
|
|
|
0.48
|
|
|
—
|
|
|
2.46
|
|
|
88.2
|
|
|
82.1
|
|
|
—
|
|
|
66.4
|
|
|
Kucing Liard
|
Mill
|
|
340
|
|
|
1.25
|
|
|
1.04
|
|
|
—
|
|
|
6.66
|
|
|
85.2
|
|
|
45.3
|
|
|
—
|
|
|
39.8
|
|
|
|
|
|
1,813
|
|
e
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total FCX - 100% Basis
|
|
|
18,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
a.
|
Amounts may not equal the sum of proven and probable reserves as presented on the previous page because of rounding.
|
b.
|
Recoveries are net of estimated mill and smelter losses.
|
c.
|
Amounts not shown because of rounding.
|
d.
|
Would require additional capital investment, which could be significant, to bring into production.
|
e.
|
Does not foot because of rounding.
|
a.
|
Does not foot because of rounding.
|
b.
|
Refer to “Mill and Leach Stockpiles” for additional information.
|
c.
|
Effective December 21, 2018, our share ownership in PT-FI is 48.76 percent (refer to Note 2 for further discussion). Our economic interest in PT-FI is expected to approximate 81 percent through 2022 and 48.76 percent thereafter.
|
d.
|
Consolidated reserves represent estimated metal quantities after reduction for Morenci’s joint venture partner interests (refer to Note 3 for further discussion).
|
e.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries). Our net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2020 through 2022 and 48.76 percent from 2023 through 2041.
|
|
Copper Equivalent Cutoff Grade (Percent)
|
|
Molybdenum
Cutoff Grade
(Percent)
|
||||
|
Mill
|
|
Crushed
Leach
|
|
ROM
Leach
|
|
Mill
|
North America
|
|
|
|
|
|
|
|
Morenci
|
0.17
|
|
0.12
|
|
0.03
|
|
—
|
Bagdad
|
0.11
|
|
—
|
|
0.03
|
|
—
|
Safford, including Lone Star
|
—
|
|
0.12
|
|
—
|
|
—
|
Sierrita
|
0.15
|
|
—
|
|
—
|
|
—
|
Chino, including Cobre
|
0.22
|
|
—
|
|
0.08
|
|
—
|
Tyrone
|
—
|
|
—
|
|
0.03
|
|
—
|
Henderson
|
—
|
|
—
|
|
—
|
|
0.12
|
Climax
|
—
|
|
—
|
|
—
|
|
0.05
|
South America
|
|
|
|
|
|
|
|
Cerro Verde
|
0.15
|
|
0.12
|
|
0.08
|
|
—
|
El Abra
|
—
|
|
0.10
|
|
0.07
|
|
—
|
Indonesia
|
|
|
|
|
|
|
|
Grasberg Block Cave
|
0.67
|
|
—
|
|
—
|
|
—
|
DMLZ
|
0.72
|
|
—
|
|
—
|
|
—
|
Big Gossan
|
1.70
|
|
—
|
|
—
|
|
—
|
DOZ
|
0.98
|
|
—
|
|
—
|
|
—
|
Kucing Liar
|
0.79
|
|
—
|
|
—
|
|
—
|
|
|
Average Drill Hole Spacing (in Meters)
|
|||||||
|
|
|
Proven
|
|
Probable
|
||||
|
Mining Unit
|
|
Mill
|
|
Leach
|
|
Mill
|
|
Leach
|
North America
|
|
|
|
|
|
|
|
|
|
Morenci
|
Open Pit
|
|
86
|
|
86
|
|
122
|
|
122
|
Bagdad
|
Open Pit
|
|
86
|
|
86
|
|
122
|
|
122
|
Safford, including Lone Star
|
Open Pit
|
|
—
|
|
86
|
|
—
|
|
122
|
Sierrita
|
Open Pit
|
|
73
|
|
—
|
|
104
|
|
—
|
Chino
|
Open Pit
|
|
43
|
|
86
|
|
86
|
|
122
|
Cobre
|
Open Pit
|
|
61
|
|
61
|
|
91
|
|
91
|
Tyrone
|
Open Pit
|
|
—
|
|
86
|
|
—
|
|
86
|
Henderson
|
Block Cave
|
|
47
|
|
—
|
|
96
|
|
—
|
Climax
|
Open Pit
|
|
61
|
|
—
|
|
91
|
|
—
|
South America
|
|
|
|
|
|
|
|
|
|
Cerro Verde
|
Open Pit
|
|
55
|
|
55
|
|
110
|
|
110
|
El Abra
|
Open Pit
|
|
—
|
|
75
|
|
—
|
|
120
|
Indonesia
|
|
|
|
|
|
|
|
|
|
Grasberg Block Cave
|
Block Cave
|
|
28
|
|
—
|
|
67
|
|
—
|
DMLZ
|
Block Cave
|
|
22
|
|
—
|
|
63
|
|
—
|
Big Gossan
|
Open Stope
|
|
13
|
|
—
|
|
37
|
|
—
|
DOZ
|
Block Cave
|
|
23
|
|
—
|
|
55
|
|
—
|
Kucing Liar
|
Block Cave
|
|
39
|
|
—
|
|
95
|
|
—
|
|
|
|
|
|
|
|
Recoverable
|
|||||
|
Million
|
|
Average
|
|
Recovery
|
|
Copper
|
|||||
|
Metric Tons
|
|
Ore Grade (%)
|
|
Rate (%)
|
|
(billion pounds)
|
|||||
Mill stockpiles
|
|
|
|
|
|
|
|
|
||||
Cerro Verde
|
99
|
|
|
0.26
|
|
|
73.1
|
|
|
0.4
|
|
|
North America copper mines
|
6
|
|
|
0.35
|
|
|
72.9
|
|
|
0.1
|
|
|
|
105
|
|
|
|
|
|
|
0.5
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Leach stockpiles
|
|
|
|
|
|
|
|
|
||||
Morenci
|
6,829
|
|
|
0.24
|
|
|
1.0
|
|
|
0.3
|
|
|
Bagdad
|
499
|
|
|
0.25
|
|
|
0.5
|
|
|
—
|
|
a
|
Safford, including Lone Star
|
316
|
|
|
0.42
|
|
|
7.5
|
|
|
0.2
|
|
|
Sierrita
|
650
|
|
|
0.15
|
|
|
9.5
|
|
|
0.2
|
|
|
Miami
|
498
|
|
|
0.39
|
|
|
1.7
|
|
|
0.1
|
|
|
Chino, including Cobre
|
1,756
|
|
|
0.25
|
|
|
3.5
|
|
|
0.3
|
|
|
Tyrone
|
1,155
|
|
|
0.28
|
|
|
1.5
|
|
|
0.1
|
|
|
Cerro Verde
|
512
|
|
|
0.47
|
|
|
4.7
|
|
|
0.2
|
|
|
El Abra
|
787
|
|
|
0.44
|
|
|
4.9
|
|
|
0.4
|
|
|
|
13,003
|
|
b
|
|
|
|
|
1.8
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total FCX - 100% basis
|
|
|
|
|
|
|
2.3
|
|
|
|||
Total FCX - Consolidated basisc
|
|
|
|
|
|
|
2.2
|
|
|
|||
Total FCX - Net equity interestd
|
|
|
|
|
|
|
1.7
|
|
|
a.
|
Rounds to less than 0.1 billion pounds of recoverable copper.
|
b.
|
Does not foot because of rounding.
|
c.
|
Consolidated stockpiles represent estimated metal quantities after reduction for Morenci’s joint venture partner interests. Refer to Note 3 for further discussion.
|
d.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of our ownership in subsidiaries).
|
Estimated Mineralized Material
|
||||||||||||||||||||||||||||
at December 31, 2019
|
||||||||||||||||||||||||||||
|
|
|
|
Milling Material
|
|
Leaching Material
|
|
Total Mineralized Materiala
|
|
|||||||||||||||||||
|
|
|
|
Million
|
|
|
|
|
|
|
|
|
|
Million
|
|
|
|
Million
|
|
|||||||||
|
|
FCX’s
|
|
metric
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
metric
|
|
Copper
|
|
metric
|
|
|||||||||
|
|
Interest
|
|
tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
tons
|
|
%
|
|
tons
|
|
|||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Morenci
|
|
72%
|
|
2,023
|
|
|
0.25
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
1,658
|
|
|
0.17
|
|
|
3,681
|
|
|
|
Bagdad
|
|
100%
|
|
426
|
|
|
0.30
|
|
|
—
|
|
b
|
0.02
|
|
|
1.3
|
|
|
1
|
|
|
0.12
|
|
|
427
|
|
|
|
Safford, including Lone Star
|
|
100%
|
|
870
|
|
|
0.46
|
|
|
0.06
|
|
|
—
|
|
|
1.2
|
|
|
962
|
|
|
0.29
|
|
|
1,832
|
|
|
|
Sierrita
|
|
100%
|
|
1,632
|
|
|
0.18
|
|
|
—
|
|
b
|
0.02
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
1,632
|
|
|
|
Chino, including Cobre
|
|
100%
|
|
282
|
|
|
0.46
|
|
|
0.04
|
|
|
0.01
|
|
|
0.8
|
|
|
29
|
|
|
0.24
|
|
|
312
|
|
|
|
Tyrone
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
0.25
|
|
|
127
|
|
|
|
Henderson
|
|
100%
|
|
103
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
|
Climax
|
|
100%
|
|
378
|
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
378
|
|
|
|
Ajo
|
|
100%
|
|
621
|
|
|
0.36
|
|
|
0.06
|
|
|
0.01
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
621
|
|
|
|
Cochise/Bisbee
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
0.44
|
|
|
298
|
|
|
|
Sanchez
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
|
0.28
|
|
|
196
|
|
|
|
Tohono
|
|
100%
|
|
275
|
|
|
0.67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
|
0.67
|
|
|
559
|
|
|
|
Twin Buttes
|
|
100%
|
|
311
|
|
|
0.47
|
|
|
—
|
|
b
|
0.03
|
|
|
5.1
|
|
|
103
|
|
|
0.21
|
|
|
413
|
|
|
|
Christmas
|
|
100%
|
|
367
|
|
|
0.38
|
|
|
0.05
|
|
|
—
|
|
b
|
1.0
|
|
|
—
|
|
|
—
|
|
|
367
|
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cerro Verde
|
|
53.56%
|
|
638
|
|
|
0.33
|
|
|
—
|
|
|
0.01
|
|
|
1.8
|
|
|
36
|
|
|
0.26
|
|
|
674
|
|
|
|
El Abra
|
|
51%
|
|
2,015
|
|
|
0.40
|
|
|
0.02
|
|
|
0.01
|
|
|
1.3
|
|
|
163
|
|
|
0.24
|
|
|
2,178
|
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Grasberg minerals district
|
|
48.76%
|
|
2,540
|
|
|
0.68
|
|
|
0.61
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
—
|
|
—
|
|
|
2,540
|
|
|
Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Kisanfuc
|
|
95%
|
|
75
|
|
|
1.84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
2.43
|
|
|
138
|
|
|
|
Total FCX - 100% basis
|
|
|
|
12,556
|
|
|
|
|
|
|
|
|
|
|
3,920
|
|
|
|
|
16,477
|
|
d
|
||||||
Total FCX - Consolidated basise
|
|
|
|
11,990
|
|
|
|
|
|
|
|
|
|
|
3,454
|
|
|
|
|
15,444
|
|
|
||||||
Total FCX - Net equity interestf
|
|
|
|
9,401
|
|
|
|
|
|
|
|
|
|
|
3,354
|
|
|
|
|
12,756
|
|
|
||||||
|
|
|
a.
|
Amounts may not equal the sum of milling and leach material because of rounding.
|
b.
|
Amounts not shown because of rounding.
|
c.
|
Stated tonnage also includes cobalt (0.95 percent for milling material and 0.99 percent for leaching material).
|
d.
|
Does not foot because of rounding.
|
e.
|
Consolidated basis represents estimated mineralized materials after reduction for Morenci’s joint venture partner interests. Refer to Note 3 for further discussion.
|
f.
|
Net equity interest represents estimated consolidated mineralized material further reduced for noncontrolling interest ownership. Refer to Note 3 for further discussion of our ownership in subsidiaries.
|
•
|
Limiting our flexibility in planning for, or reacting to, changes in the industry in which we operate;
|
•
|
Increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
Limiting our ability to fund future working capital, capital expenditures and/or material contingencies, to engage in future development activities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt;
|
•
|
Requiring us to sell assets to reduce debt; or
|
•
|
Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
|
•
|
Delays in obtaining or renewing, or the inability to obtain, maintain or renew, or the renegotiation, cancellation, revocation or forced modification of existing contracts, leases, licenses, permits or other agreements and/or approvals;
|
•
|
Expropriation or nationalization of property, protectionism, or restrictions on repatriation of earnings or capital;
|
•
|
Changes in the host country’s laws, regulations and policies (which may be applied retroactively), including, but not limited to, those relating to labor, taxation, royalties, duties, tariffs, divestment, imports, exports (including restrictions on the export of copper concentrates, copper and/or gold), trade regulations, currency and environmental matters (including land use and water use), which because of rising “resource nationalism” in countries around the world, may impose increasingly onerous requirements on foreign operations and investment;
|
•
|
Political, social and economic instability, bribery, extortion, corruption, civil unrest, acts of war, guerrilla activities, insurrection and terrorism;
|
•
|
Changes in the aspirations and expectations of local communities in which we operate with respect to our contributions to employee health and safety, infrastructure and community development and other factors that may affect our social license to operate, all of which lead to increased costs;
|
•
|
Risk of loss associated with trespass, local artisanal or illegal mining, theft and vandalism or due to potential pandemic and endemic health issues;
|
•
|
Changes in U.S. trade, tax, immigration or other policies that may harm relations with foreign countries or result in retaliatory policies;
|
•
|
Increases in training and other costs and challenges relating to requirements by governmental entities to employ the nationals of the country in which a particular operation is located;
|
•
|
Foreign exchange controls, fluctuations in foreign currency exchange rates and inflation;
|
•
|
Reduced protection for intellectual property rights; and
|
•
|
The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation.
|
•
|
Our knowledge and beliefs about complex scientific and historical facts and circumstances that in many cases occurred many decades ago;
|
•
|
Our beliefs and assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and
|
•
|
Our beliefs regarding the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
|
•
|
Authorize the Board to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class; if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us;
|
•
|
Establish advance notice requirements for nominations to the Board or for proposals that can be presented at stockholder meetings;
|
•
|
Limit who may call stockholder meetings; and
|
•
|
Require the approval of the holders of two thirds of our outstanding common stock to enter into certain business combination transactions, subject to certain exceptions, including if the consideration to be received by our common stockholders in the transaction is deemed to be a fair price.
|
Name
|
|
Age
|
|
Position or Office
|
Richard C. Adkerson
|
|
73
|
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Kathleen L. Quirk
|
|
56
|
|
Executive Vice President and Chief Financial Officer
|
Harry M. “Red” Conger, IV
|
|
64
|
|
President and Chief Operating Officer - Americas
|
Period
|
|
(a) Total
Number of
Shares Purchased
|
|
(b) Average
Price Paid Per Share
|
|
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programsa
|
|
(d) Maximum Number of Shares That May
Yet Be Purchased Under the Plans or Programsa
|
||||
October 1-31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
November 1-30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
December 1-31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
Total
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
We have an approved open-market share purchase program for up to 30 million shares, which does not have an expiration date.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
CONSOLIDATED FINANCIAL DATA
|
(In millions, except per share amounts)
|
|
||||||||||||||||||
Revenues
|
$
|
14,402
|
|
a
|
$
|
18,628
|
|
|
$
|
16,403
|
|
|
$
|
14,830
|
|
b
|
$
|
14,607
|
|
b
|
Operating income (loss)c
|
$
|
1,091
|
|
|
$
|
4,754
|
|
d,e
|
$
|
3,690
|
|
f
|
$
|
(2,729
|
)
|
g
|
$
|
(13,437
|
)
|
h
|
Net (loss) income from continuing operations
|
$
|
(192
|
)
|
i,j,k,l,m
|
$
|
2,909
|
|
k,l,m,n
|
$
|
2,029
|
|
k,l,m
|
$
|
(3,832
|
)
|
l,m
|
$
|
(12,180
|
)
|
n
|
Net income (loss) from discontinued operationso
|
$
|
3
|
|
|
$
|
(15
|
)
|
|
$
|
66
|
|
|
$
|
(193
|
)
|
|
$
|
91
|
|
|
Net (loss) income attributable to common stock
|
$
|
(239
|
)
|
|
$
|
2,602
|
|
|
$
|
1,817
|
|
|
$
|
(4,154
|
)
|
p
|
$
|
(12,236
|
)
|
|
Diluted net (loss) income per share attributable to common stock:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
$
|
1.21
|
|
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
0.04
|
|
|
(0.20
|
)
|
|
0.01
|
|
|
|||||
|
$
|
(0.17
|
)
|
|
$
|
1.78
|
|
|
$
|
1.25
|
|
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
1,451
|
|
|
1,449
|
|
|
1,447
|
|
|
1,318
|
|
|
1,082
|
|
|
|||||
Diluted
|
1,451
|
|
|
1,458
|
|
|
1,454
|
|
|
1,318
|
|
|
1,082
|
|
|
|||||
Dividends declared per share of common stock
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2605
|
|
|
Operating cash flows
|
$
|
1,482
|
|
|
$
|
3,863
|
|
|
$
|
4,666
|
|
|
$
|
3,737
|
|
|
$
|
3,220
|
|
|
Capital expenditures
|
$
|
2,652
|
|
|
$
|
1,971
|
|
|
$
|
1,410
|
|
|
$
|
2,813
|
|
|
$
|
6,353
|
|
|
At December 31:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2,020
|
|
|
$
|
4,217
|
|
|
$
|
4,526
|
|
|
$
|
4,262
|
|
|
$
|
193
|
|
|
Property, plant, equipment and mine
development costs, net
|
$
|
29,584
|
|
|
$
|
28,010
|
|
|
$
|
22,994
|
|
|
$
|
23,348
|
|
|
$
|
24,245
|
|
|
Oil and gas properties, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
7,093
|
|
|
Assets held for sale, including current portion
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
q
|
$
|
4,862
|
|
q
|
Total assets
|
$
|
40,809
|
|
|
$
|
42,216
|
|
|
$
|
37,302
|
|
|
$
|
37,317
|
|
|
$
|
46,577
|
|
|
Total debt, including current portion
|
$
|
9,826
|
|
|
$
|
11,141
|
|
|
$
|
13,229
|
|
|
$
|
16,126
|
|
|
$
|
20,428
|
|
|
Redeemable noncontrolling interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
764
|
|
|
Total stockholders’ equity
|
$
|
9,298
|
|
|
$
|
9,798
|
|
|
$
|
7,977
|
|
|
$
|
6,051
|
|
|
$
|
7,828
|
|
|
a.
|
Includes charges totaling $166 million ($91 million to net loss attributable to common stock or $0.06 per share) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT Freeport Indonesia (PT-FI) export duties (refer to Note 12).
|
b.
|
Includes net noncash mark-to-market losses associated with crude oil and natural gas derivative contracts totaling $41 million ($41 million to net loss attributable to common stock or $0.03 per share) in 2016 and $319 million ($198 million to net loss attributable to common stock or $0.18 per share) in 2015.
|
c.
|
Includes net charges (credits) for adjustments to environmental obligations and related litigation reserves of $68 million ($68 million to net loss attributable to common stock or $0.05 per share) in 2019, $57 million ($57 million to net income attributable to common stock or $0.04 per share) in 2018, $210 million ($210 million to net income attributable to common stock or $0.14 per share) in 2017, $(16) million ($(16) million to net loss attributable to common stock or $(0.01) per share) in 2016 and $43 million ($28 million to net loss attributable to common stock or $0.03 per share) in 2015.
|
d.
|
The year 2018 includes net credits totaling $96 million ($156 million to net income attributable to common stock or $0.11 per share) consisting of gains on sales of assets totaling $208 million, partly offset by net charges of $69 million associated with Cerro Verde’s collective labor agreement and $43 million mostly associated with depreciation expense at Freeport Cobalt, which was suspended while it was classified as held for sale.
|
e.
|
The year 2018 also includes net charges at PT-FI totaling $223 million ($110 million to net income attributable to common stock or $0.08 per share) consisting of $69 million for surface water tax settlements with the local regional tax authority in Papua, Indonesia, $32 million for assessments of prior period permit fees with Indonesia's Ministry of Environment and Forestry, $72 million for
|
f.
|
The year 2017 includes net charges totaling $68 million ($12 million to net income attributable to common stock or $0.01 per share) consisting of charges totaling $125 million for workforce reductions at PT-FI and other net charges of $24 million mostly for asset impairments and metals inventory adjustments, partly offset by net gains on sales of assets totaling $81 million primarily associated with oil and gas transactions.
|
g.
|
The year 2016 includes net charges totaling $4.9 billion ($4.8 billion to net loss attributable to common stock or $3.67 per share) consisting of (i) $4.3 billion for impairment of oil and gas properties, (ii) $926 million for drillship settlements/idle rig and contract termination costs, (iii) $196 million for other charges at oil and gas operations primarily associated with inventory adjustments, asset impairment and other restructuring charges and (iv) $69 million for charges at mining operations for metals inventory adjustments, PT-FI asset retirement and Cerro Verde social commitments, partly offset by (v) net gains on sales of assets totaling $649 million mostly associated with the Morenci and Timok transactions, and net of estimated losses associated with assets held for sale.
|
h.
|
The year 2015 includes net charges totaling $13.8 billion ($12.0 billion to net loss attributable to common stock or $11.10 per share) consisting of (i) $13.1 billion for impairment of oil and gas properties, (ii) $338 million for metals inventory adjustments, (iii) $188 million for charges at oil and gas operations primarily associated with other asset impairment and inventory adjustments, idle/terminated rig costs and prior year mineral tax assessments related to the California properties, (iv) $145 million for charges at mining operations primarily associated with asset impairment, restructuring and other net charges and (v) $18 million for executive retirement benefits, partly offset by (vi) a net gain of $39 million for the sale of our interest in the Luna Energy power facility.
|
i.
|
The year 2019 includes net gains of $179 million ($169 million to net loss attributable to common stock or $0.12 per share) consisting of gains on sales of assets totaling $417 million and net credits for adjustments to asset retirement obligations totaling $19 million, partly offset by metals inventory adjustments totaling $179 million and other net charges totaling $78 million, mostly associated with weather-related issues at El Abra, asset impairments, adjustments to deferred profit sharing and oil and gas inventory adjustments.
|
j.
|
The year 2019 also includes charges at PT-FI of $294 million ($288 million to net loss attributable to common stock or $0.20 per share) consisting of $234 million associated with PT-FI's historical contested tax disputes, $32 million for a currency exchange adjustment to value-added tax receivables and $28 million for an adjustment to the settlement of the historical surface water tax matters with the local regional tax authority in Papua, Indonesia.
|
k.
|
Includes charges at Cerro Verde related to disputed royalty matters for prior years totaling $7 million to net loss attributable to common stock (less than $0.01 per share) in 2019, $195 million to net income attributable to common stock ($0.13 per share) in 2018 and $186 million to net income attributable to common stock ($0.13 per share) in 2017. Charges for 2019 represent $6 million to operating income and $10 million to interest expense. Net charges for 2018 consist of $14 million to operating income, $370 million to interest expense and $22 million to other expense, net of $35 million of net income tax benefits and $176 million to noncontrolling interests. Net charges for 2017 consist of $203 million to operating income, $145 million to interest expense and $7 million to provision for income taxes, net of $169 million to noncontrolling interests. Refer to Note 12 for further discussion.
|
l.
|
Includes after-tax net (losses) gains on early extinguishment and exchanges of debt totaling $(26) million ($(0.02) per share) in 2019, $7 million (less than $0.01 per share) in 2018, $21 million ($0.01 per share) in 2017 and $26 million ($0.02 per share) in 2016.
|
m.
|
As further discussed in “Consolidated Results - Income Taxes” contained in MD&A, amounts include net tax (charges) credits of $(1) million ($34 million net of noncontrolling interests or $0.02 per share) in 2019, $632 million ($574 million net of noncontrolling interests or $0.39 per share) in 2018, $438 million ($0.30 per share) in 2017 and $370 million ($374 million net of noncontrolling interests or $0.28 per share) in 2016.
|
n.
|
The year 2018 includes a gain of $19 million to net income attributable to common stock or $0.01 per share for interest received on tax refunds. The year 2015 includes a gain of $92 million to net loss attributable to common stock or $0.09 per share related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement.
|
o.
|
Discontinued operations reflects the results of TF Holdings Limited (TFHL), through which we held an interest in the Tenke Fungurume (Tenke) mine until it was sold on November 16, 2016, and includes charges for allocated interest expense associated with the portion of the term loan that was required to be repaid as a result of the sale. Net income (loss) from discontinued operations in 2019, 2018 and 2017, primarily reflect adjustments to the fair value of the potential contingent consideration related to the sale and was adjusted through December 31, 2019. The year 2016 also includes a net charge of $198 million for the loss on disposal.
|
p.
|
The year 2016 includes a gain on redemption of a redeemable noncontrolling interest of $199 million ($0.15 per share) associated with the settlement of a preferred stock obligation.
|
q.
|
In accordance with accounting guidelines, the assets and liabilities of TFHL were presented as held for sale in the consolidated balance sheets.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
CONSOLIDATED MINING (CONTINUING OPERATIONS)a
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
3,247
|
|
|
3,813
|
|
|
3,737
|
|
|
4,222
|
|
|
3,568
|
|
|
|||||
Sales, excluding purchases
|
3,292
|
|
|
3,811
|
|
|
3,700
|
|
|
4,227
|
|
|
3,603
|
|
|
|||||
Average realized price per pound
|
$
|
2.73
|
|
|
$
|
2.91
|
|
|
$
|
2.93
|
|
|
$
|
2.28
|
|
|
$
|
2.42
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
882
|
|
|
2,439
|
|
|
1,577
|
|
|
1,088
|
|
|
1,257
|
|
|
|||||
Sales, excluding purchases
|
991
|
|
|
2,389
|
|
|
1,562
|
|
|
1,079
|
|
|
1,247
|
|
|
|||||
Average realized price per ounce
|
$
|
1,415
|
|
|
$
|
1,254
|
|
|
$
|
1,268
|
|
|
$
|
1,238
|
|
|
$
|
1,129
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
90
|
|
|
95
|
|
|
92
|
|
|
80
|
|
|
92
|
|
|
|||||
Sales, excluding purchases
|
90
|
|
|
94
|
|
|
95
|
|
|
74
|
|
|
89
|
|
|
|||||
Average realized price per pound
|
$
|
12.61
|
|
|
$
|
12.50
|
|
|
$
|
9.33
|
|
|
$
|
8.33
|
|
|
$
|
8.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NORTH AMERICA COPPER MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interestsb
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,457
|
|
|
1,404
|
|
|
1,518
|
|
|
1,831
|
|
|
1,947
|
|
|
|||||
Sales, excluding purchases
|
1,442
|
|
|
1,428
|
|
|
1,484
|
|
|
1,841
|
|
|
1,988
|
|
|
|||||
Average realized price per pound
|
$
|
2.74
|
|
|
$
|
2.96
|
|
|
$
|
2.85
|
|
|
$
|
2.24
|
|
|
$
|
2.47
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
32
|
|
|
32
|
|
|
33
|
|
|
33
|
|
|
37
|
|
|
|||||
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
750,900
|
|
|
681,400
|
|
|
679,000
|
|
|
737,400
|
|
|
913,000
|
|
|
|||||
Average copper ore grade (percent)
|
0.23
|
|
|
0.24
|
|
|
0.28
|
|
|
0.31
|
|
|
0.26
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
993
|
|
|
951
|
|
|
1,016
|
|
|
1,120
|
|
|
1,086
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
326,100
|
|
|
301,000
|
|
|
299,500
|
|
|
300,500
|
|
|
312,100
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
0.34
|
|
|
0.35
|
|
|
0.39
|
|
|
0.47
|
|
|
0.49
|
|
|
|||||
Molybdenum
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
|||||
Copper recovery rate (percent)
|
87.0
|
|
|
87.8
|
|
|
86.4
|
|
|
85.5
|
|
|
85.4
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
748
|
|
|
719
|
|
|
788
|
|
|
958
|
|
|
1,020
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SOUTH AMERICA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,183
|
|
|
1,249
|
|
|
1,235
|
|
|
1,328
|
|
|
869
|
|
|
|||||
Sales
|
1,183
|
|
|
1,253
|
|
|
1,235
|
|
|
1,332
|
|
|
871
|
|
|
|||||
Average realized price per pound
|
$
|
2.71
|
|
|
$
|
2.87
|
|
|
$
|
2.97
|
|
|
$
|
2.31
|
|
|
$
|
2.38
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
29
|
|
|
28
|
|
|
27
|
|
|
21
|
|
|
7
|
|
|
|||||
Leach operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
205,900
|
|
|
195,200
|
|
|
142,800
|
|
|
149,100
|
|
|
208,400
|
|
|
|||||
Average copper ore grade (percent)
|
0.37
|
|
|
0.33
|
|
|
0.37
|
|
|
0.41
|
|
|
0.44
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
268
|
|
|
287
|
|
|
255
|
|
|
328
|
|
|
430
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
393,100
|
|
|
387,600
|
|
|
360,100
|
|
|
353,400
|
|
|
152,100
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
0.36
|
|
|
0.38
|
|
|
0.44
|
|
|
0.43
|
|
|
0.46
|
|
|
|||||
Molybdenum
|
0.02
|
|
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
|||||
Copper recovery rate (percent)
|
83.5
|
|
|
84.3
|
|
|
81.2
|
|
|
85.8
|
|
|
81.5
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
916
|
|
|
962
|
|
|
980
|
|
|
1,000
|
|
|
439
|
|
|
a.
|
Excludes the results from the Tenke mine, which is reported as discontinued operations.
|
b.
|
Net of Morenci’s joint venture interest; effective May 31, 2016, our undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
INDONESIA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Rio Tinto Joint Venture Interesta
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
607
|
|
|
1,160
|
|
|
984
|
|
|
1,063
|
|
|
752
|
|
|
|||||
Sales
|
667
|
|
|
1,130
|
|
|
981
|
|
|
1,054
|
|
|
744
|
|
|
|||||
Average realized price per pound
|
$
|
2.72
|
|
|
$
|
2.89
|
|
|
$
|
3.00
|
|
|
$
|
2.32
|
|
|
$
|
2.33
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
863
|
|
|
2,416
|
|
|
1,554
|
|
|
1,061
|
|
|
1,232
|
|
|
|||||
Sales
|
973
|
|
|
2,366
|
|
|
1,540
|
|
|
1,054
|
|
|
1,224
|
|
|
|||||
Average realized price per ounce
|
$
|
1,416
|
|
|
$
|
1,254
|
|
|
$
|
1,268
|
|
|
$
|
1,237
|
|
|
$
|
1,129
|
|
|
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
110,100
|
|
|
178,100
|
|
|
140,400
|
|
|
165,700
|
|
|
162,500
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.84
|
|
|
0.98
|
|
|
1.01
|
|
|
0.91
|
|
|
0.67
|
|
|
|||||
Gold (grams per metric ton)
|
0.93
|
|
|
1.58
|
|
|
1.15
|
|
|
0.68
|
|
|
0.79
|
|
|
|||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
88.4
|
|
|
91.8
|
|
|
91.6
|
|
|
91.0
|
|
|
90.4
|
|
|
|||||
Gold
|
75.0
|
|
|
84.7
|
|
|
85.0
|
|
|
82.2
|
|
|
83.4
|
|
|
|||||
Production:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
607
|
|
|
1,227
|
|
|
996
|
|
|
1,063
|
|
|
752
|
|
|
|||||
Gold (thousands of recoverable ounces)
|
863
|
|
|
2,697
|
|
|
1,554
|
|
|
1,061
|
|
|
1,232
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MOLYBDENUM MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Molybdenum production (millions of recoverable pounds)
|
29
|
|
|
35
|
|
|
32
|
|
|
26
|
|
|
48
|
|
|
|||||
Ore milled (metric tons per day)
|
30,100
|
|
|
27,900
|
|
|
22,500
|
|
|
18,300
|
|
|
34,800
|
|
|
|||||
Average molybdenum ore grade (percent)
|
0.14
|
|
|
0.18
|
|
|
0.20
|
|
|
0.21
|
|
|
0.2
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OIL AND GAS OPERATIONSb
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (million barrels)
|
0.9
|
|
|
1.4
|
|
|
1.8
|
|
|
34.4
|
|
|
35.3
|
|
|
|||||
Natural gas (billion cubic feet)
|
1.1
|
|
|
10.1
|
|
|
15.8
|
|
|
65.1
|
|
|
89.7
|
|
|
|||||
Natural gas liquids (NGLs) (million barrels)
|
—
|
|
|
0.1
|
|
|
0.2
|
|
|
1.8
|
|
|
2.4
|
|
|
|||||
Million barrels of oil equivalents
|
1.1
|
|
|
3.1
|
|
|
4.6
|
|
|
47.1
|
|
|
52.6
|
|
|
|||||
Average Realizations:
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Oil (per barrel)
|
$
|
45.17
|
|
|
$
|
54.13
|
|
|
$
|
40.71
|
|
|
$
|
39.13
|
|
|
$
|
57.11
|
|
|
Natural gas (per million British thermal units)
|
$
|
3.32
|
|
|
$
|
3.15
|
|
|
$
|
3.18
|
|
|
$
|
2.38
|
|
|
$
|
2.59
|
|
|
NGLs (per barrel)
|
$
|
60.93
|
|
|
$
|
44.11
|
|
|
$
|
30.65
|
|
|
$
|
18.11
|
|
|
$
|
18.90
|
|
|
a.
|
Prior to December 21, 2018, PT-FI had an unincorporated joint venture with Rio Tinto. Refer to Notes 2 and 3 for further discussion.
|
b.
|
In 2016, we sold the majority of our oil and gas assets.
|
|
Copper
|
|
Gold
|
|
Molybdenum
|
|
|||
North America
|
45
|
%
|
|
2
|
%
|
|
68
|
%
|
a
|
South America
|
36
|
|
|
—
|
|
|
32
|
|
|
Indonesia
|
19
|
|
|
98
|
|
|
—
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
a.
|
Our North America copper mines produced 36 percent of consolidated molybdenum production, and our Henderson and Climax molybdenum mines produced 32 percent.
|
|
2020
|
|
2019
|
|
||
|
(Projected)
|
|
(Actual)
|
|
||
Copper (millions of recoverable pounds):
|
|
|
|
|
||
North America copper mines
|
1,580
|
|
|
1,442
|
|
|
South America mining
|
1,150
|
|
|
1,183
|
|
|
Indonesia mining
|
750
|
|
|
667
|
|
|
Total
|
3,480
|
|
|
3,292
|
|
|
|
|
|
|
|
||
Gold (thousands of recoverable ounces)
|
775
|
|
|
991
|
|
|
Molybdenum (millions of recoverable pounds)
|
88
|
|
a
|
90
|
|
|
a.
|
Includes 30 million pounds from our Molybdenum mines and 58 million pounds from our North America and South America copper mines.
|
|
|
Coppera
(billion
pounds)
|
|
Gold
(million
ounces)
|
|
Molybdenum
(billion
pounds)
|
|
|||
Consolidated reserves at December 31, 2017
|
|
86.7
|
|
|
23.5
|
|
|
2.84
|
|
|
PT-FI acquisition of Rio Tinto Joint Venture interest
|
|
13.0
|
|
|
10.1
|
|
|
—
|
|
|
Other net additions (revisions)
|
|
23.7
|
|
b
|
(0.4
|
)
|
|
1.04
|
|
c
|
Production
|
|
(3.8
|
)
|
|
(2.4
|
)
|
|
(0.10
|
)
|
|
Consolidated reserves at December 31, 2018
|
|
119.6
|
|
|
30.8
|
|
|
3.78
|
|
|
Net revisions
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.11
|
)
|
|
Production
|
|
(3.2
|
)
|
|
(0.9
|
)
|
|
(0.09
|
)
|
|
Consolidated reserves at December 31, 2019
|
|
116.0
|
|
|
29.6
|
|
|
3.58
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes estimated recoverable metals contained in stockpiles. See below for additional discussion of recoverable copper in stockpiles.
|
b.
|
Primarily reflects an increase in the copper price assumption from $2.00 per pound to $2.50 per pound for determining reserves in North America and South America.
|
c.
|
Primarily reflects an increase in molybdenum reserves at North America copper mines and the Cerro Verde mine in Peru.
|
|
Years Ended December 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|||||||
Revenuesa,b
|
$
|
14,402
|
|
c
|
$
|
18,628
|
|
|
Operating incomea,d,e,f
|
$
|
1,091
|
|
|
$
|
4,754
|
|
g,h
|
Net (loss) income from continuing operationsi,j,k,l
|
$
|
(192
|
)
|
m,n
|
$
|
2,909
|
|
o
|
Net income (loss) from discontinued operations
|
$
|
3
|
|
|
$
|
(15
|
)
|
|
Net (loss) income attributable to common stock
|
$
|
(239
|
)
|
|
$
|
2,602
|
|
|
Diluted net (loss) income per share attributable to common stock:
|
|
|
|
|
||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
||
|
$
|
(0.17
|
)
|
|
$
|
1.78
|
|
|
|
|
|
|
|
||||
Diluted weighted-average common shares outstanding
|
1,451
|
|
|
1,458
|
|
|
||
Operating cash flowsp
|
$
|
1,482
|
|
|
$
|
3,863
|
|
|
Capital expenditures
|
$
|
2,652
|
|
|
$
|
1,971
|
|
|
At December 31:
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,020
|
|
|
$
|
4,217
|
|
|
Total debt, including current portion
|
$
|
9,826
|
|
|
$
|
11,141
|
|
|
a.
|
Refer to Note 16 for a summary of revenues and operating income by operating division.
|
b.
|
Includes adjustments to embedded derivatives for provisionally priced concentrate and cathode sales (refer to Note 14).
|
c.
|
Includes charges totaling $166 million ($91 million to net loss attributable to common stock or $0.06 per share) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties (refer to Note 12).
|
d.
|
Includes net gains on sales of assets totaling $417 million ($339 million to net loss attributable to common stock or $0.23 per share) in 2019 and $208 million ($208 million to net income attributable to common stock or $0.14 per share) in 2018. Refer to Note 2 and “Net Gain on Sales of Assets” below for further discussion.
|
e.
|
Includes net charges for adjustments to environmental obligations and related litigation reserves of $68 million ($68 million to net loss attributable to common stock or $0.05 per share) in 2019 and $57 million ($57 million to net income attributable to common stock or $0.04 per share) in 2018.
|
f.
|
Includes metals inventory adjustments totaling $179 million ($144 million to net loss attributable to common stock or $0.10 per share) for the year 2019 and $4 million ($4 million to net income attributable to common stock or less than $0.01 per share) for the year 2018.
|
g.
|
Includes net charges at PT-FI of $223 million ($110 million to net income attributable to common stock or $0.08 per share) consisting of $69 million for surface water tax settlements with the local regional tax authority in Papua, Indonesia, $32 million for assessments for prior period permit fees with Indonesia's Ministry of Environment and Forestry, $72 million for disputed payroll withholding taxes for prior years and other tax settlements, and $62 million to write-off certain previously capitalized project costs for the new Indonesia smelter, partly offset by inventory adjustments totaling $12 million.
|
h.
|
Includes net charges of $112 million ($52 million to net income attributable to common stock or $0.04 per share) consisting of $69 million for Cerro Verde’s new three-year collective labor agreement (CLA) and $43 million, mostly associated with depreciation expense at Freeport Cobalt, which was suspended while it was classified as held for sale.
|
i.
|
Includes net charges associated with disputed Cerro Verde royalties for prior years of $7 million to net loss attributable to common stock (less than $0.01 per share) in 2019 and $195 million to net income attributable to common stock ($0.13 per share) in 2018. Net charges for the year 2019 consist of charges to production and delivery costs ($6 million) and interest expense ($10 million). Net charges for the year 2018 primarily reflect charges to production and delivery costs ($14 million), interest expense ($370 million) and other expense ($22 million), net of income tax benefits ($35 million) and noncontrolling interests ($176 million). Refer to Note 12 for further discussion.
|
j.
|
Includes after-tax net (losses) gains on early extinguishment and exchanges of debt totaling $(26) million ($(0.02) per share) in 2019 and $7 million (less than $0.01 per share) in 2018. Refer to Note 8 for further discussion.
|
k.
|
Includes net tax (charges) credits of $(1) million ($34 million net of noncontrolling interests or $0.02 per share) in 2019 and $632 million ($574 million net of noncontrolling interests or $0.39 per share) in 2018. Refer to “Income Taxes” below for further discussion.
|
l.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations - Smelting & Refining” for a summary of net impacts from changes in these deferrals.
|
m.
|
Includes charges at PT-FI of $294 million ($288 million to net loss attributable to common stock or $0.20 per share) consisting of $234 million associated with PT-FI's historical contested tax disputes, $32 million for a currency exchange adjustment to value-added tax receivables and $28 million for an adjustment to the settlement of the historical surface water tax matters with the local regional tax authority in Papua, Indonesia.
|
n.
|
The year 2019 also includes net charges totaling $59 million ($26 million to net loss attributable to common stock or $0.02 per share) primarily associated with weather-related issues at El Abra, adjustments to Cerro Verde’s deferred profit sharing and mining asset impairments, partly offset by net credits mostly for asset retirement obligation adjustments.
|
o.
|
Includes interest received on tax refunds totaling $30 million ($19 million to net income attributable to common stock or $0.01 per share), mostly associated with the refund of PT-FI’s prior years’ tax receivables.
|
p.
|
Includes net working capital and other sources (uses) totaling $349 million in 2019 and $(656) million in 2018.
|
|
Years Ended December 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
SUMMARY OPERATING DATA
|
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
3,247
|
|
|
3,813
|
|
|
||
Sales, excluding purchases
|
3,292
|
|
|
3,811
|
|
|
||
Average realized price per pound
|
$
|
2.73
|
|
|
$
|
2.91
|
|
|
Site production and delivery costs per pounda
|
$
|
2.15
|
|
|
$
|
1.76
|
|
|
Unit net cash costs per pounda
|
$
|
1.74
|
|
|
$
|
1.07
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
||||
Production
|
882
|
|
|
2,439
|
|
|
||
Sales, excluding purchases
|
991
|
|
|
2,389
|
|
|
||
Average realized price per ounce
|
$
|
1,415
|
|
|
$
|
1,254
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
90
|
|
|
95
|
|
|
||
Sales, excluding purchases
|
90
|
|
|
94
|
|
|
||
Average realized price per pound
|
$
|
12.61
|
|
|
$
|
12.50
|
|
|
a.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of the per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”
|
Consolidated revenues - 2018
|
$
|
18,628
|
|
|
Mining operations:
|
|
|
||
Lower sales volumes:
|
|
|
||
Copper
|
(1,509
|
)
|
|
|
Gold
|
(1,753
|
)
|
|
|
Molybdenum
|
(51
|
)
|
|
|
(Lower) higher averaged realized prices:
|
|
|
||
Copper
|
(593
|
)
|
|
|
Gold
|
160
|
|
|
|
Molybdenum
|
10
|
|
|
|
Adjustments for prior year provisionally priced copper sales
|
128
|
|
|
|
Higher revenues from sales of purchased copper
|
8
|
|
|
|
Lower cobalt revenues
|
(527
|
)
|
|
|
Lower Atlantic Copper revenues
|
(234
|
)
|
|
|
Lower treatment and refining charges
|
131
|
|
|
|
Lower royalties and export duties
|
92
|
|
|
|
Other, including intercompany eliminations
|
(88
|
)
|
|
|
Consolidated revenues - 2019
|
$
|
14,402
|
|
|
|
2019
|
|
2018
|
|
||||||||||||||||
|
Income (Loss)a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision) Benefit |
|
Income (Loss)a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.b
|
$
|
(277
|
)
|
|
—%
|
|
$
|
—
|
|
c,d
|
$
|
352
|
|
|
7%
|
|
$
|
(24
|
)
|
e
|
South America
|
497
|
|
|
48%
|
|
(241
|
)
|
|
706
|
|
|
43%
|
|
(303
|
)
|
|
||||
Indonesia
|
340
|
|
|
44%
|
|
(149
|
)
|
f
|
3,027
|
|
|
42%
|
|
(1,284
|
)
|
g
|
||||
PT-FI historical contested tax disputesh
|
(201
|
)
|
|
(39)%
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
—
|
|
|
||||
PT-FI export duty matteri
|
(155
|
)
|
|
31%
|
|
48
|
|
|
—
|
|
|
—
|
|
—
|
|
|
||||
Change in PT-FI tax rates
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
N/A
|
|
504
|
|
j
|
||||
Adjustment to deferred taxes
|
—
|
|
|
N/A
|
|
(49
|
)
|
k
|
—
|
|
|
N/A
|
|
—
|
|
|
||||
U.S. tax reform
|
—
|
|
|
N/A
|
|
—
|
|
|
—
|
|
|
N/A
|
|
123
|
|
l
|
||||
Cerro Verde royalty dispute
|
(16
|
)
|
|
N/A
|
|
2
|
|
|
(406
|
)
|
|
N/A
|
|
35
|
|
m
|
||||
Eliminations and other
|
118
|
|
|
N/A
|
|
(43
|
)
|
|
213
|
|
|
N/A
|
|
(42
|
)
|
|
||||
Consolidated
|
$
|
306
|
|
|
167%
|
n
|
$
|
(510
|
)
|
|
$
|
3,892
|
|
|
25%
|
|
$
|
(991
|
)
|
|
a.
|
Represents income (loss) from continuing operations by geographic location before income taxes and equity in affiliated companies’ net earnings.
|
b.
|
In addition to our North America mining operations, the U.S. jurisdiction reflects corporate-level expenses, which include interest expense associated with senior notes, general and administrative expenses, and environmental obligations and shutdown costs.
|
c.
|
Includes tax credits of $29 million associated with adjustments to the calculation of transition tax related to the 2017 Tax Cuts and Jobs Act (the Act) and $24 million associated with state law changes and the settlement of state income tax examinations.
|
d.
|
Includes a tax charge of $53 million associated with the sale of our interest in the lower zone of the Timok exploration project in Serbia.
|
e.
|
Includes net tax charges of $20 million, primarily associated with adjustments to the calculation of transition tax related to the Act and a tax credit of $5 million associated with the settlement of a state income tax examination.
|
f.
|
Includes a tax charge of $5 million ($4 million net of noncontrolling interests) primarily for non-deductible penalties related to PT-FI’s surface water tax settlement.
|
g.
|
Includes a tax credit of $20 million ($17 million net of noncontrolling interest) for adjustments to PT-FI's historical tax positions.
|
h.
|
Refer to Note 11 for further discussion of the development of a framework for resolution of these historical contested tax disputes.
|
i.
|
Refer to Note 12 for further discussion of the unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties.
|
j.
|
Reflects a tax credit of $504 million ($453 million net of noncontrolling interest) resulting from the change in PT-FI's tax rates in accordance with its special mining license (IUPK).
|
k.
|
Includes net tax charges totaling $49 million ($15 million net of noncontrolling interests) primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
|
l.
|
In December 2018, we completed our analysis of the Act and recognized benefits totaling $123 million ($119 million net of noncontrolling interest) associated with alternative minimum tax credit refunds.
|
m.
|
Refer to Note 12 for a summary of charges related to Cerro Verde’s disputed royalties for prior years.
|
n.
|
Our consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate, excluding the U.S. jurisdiction. Because our U.S. jurisdiction generated net losses during 2019 that will not result in a realized tax benefit, applicable accounting rules require us to adjust our estimated annual effective tax rate to exclude the impact of U.S. net losses.
|
|
2019
|
|
2018
|
|
||||
Operating Data, Net of Joint Venture Interests
|
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
|
||||
Production
|
1,457
|
|
|
1,404
|
|
|
||
Sales, excluding purchases
|
1,442
|
|
|
1,428
|
|
|
||
Average realized price per pound
|
$
|
2.74
|
|
|
$
|
2.96
|
|
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
||||
Productiona
|
32
|
|
|
32
|
|
|
||
|
|
|
|
|
||||
100% Operating Data
|
|
|
|
|
||||
Leach operations
|
|
|
|
|
||||
Leach ore placed in stockpiles (metric tons per day)
|
750,900
|
|
|
681,400
|
|
|
||
Average copper ore grade (percent)
|
0.23
|
|
|
0.24
|
|
|
||
Copper production (millions of recoverable pounds)
|
993
|
|
|
951
|
|
|
||
|
|
|
|
|
||||
Mill operations
|
|
|
|
|
||||
Ore milled (metric tons per day)
|
326,100
|
|
|
301,000
|
|
|
||
Average ore grade (percent):
|
|
|
|
|
||||
Copper
|
0.34
|
|
|
0.35
|
|
|
||
Molybdenum
|
0.02
|
|
|
0.02
|
|
|
||
Copper recovery rate (percent)
|
87.0
|
|
|
87.8
|
|
|
||
Copper production (millions of recoverable pounds)
|
748
|
|
|
719
|
|
|
a.
|
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denuma
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denuma
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.74
|
|
|
$
|
2.74
|
|
|
$
|
11.51
|
|
|
$
|
2.96
|
|
|
$
|
2.96
|
|
|
$
|
11.64
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.05
|
|
|
1.88
|
|
|
9.29
|
|
|
1.94
|
|
|
1.77
|
|
|
9.03
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
|
(0.26
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.11
|
|
|
—
|
|
|
0.11
|
|
|
0.10
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.92
|
|
|
1.99
|
|
|
9.29
|
|
|
1.79
|
|
|
1.87
|
|
|
9.03
|
|
||||||
DD&A
|
0.24
|
|
|
0.21
|
|
|
0.72
|
|
|
0.25
|
|
|
0.23
|
|
|
0.73
|
|
||||||
Metals inventory adjustments
|
0.02
|
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
|
0.07
|
|
|
0.29
|
|
|
0.07
|
|
|
0.06
|
|
|
0.17
|
|
||||||
Total unit costs
|
2.26
|
|
|
2.29
|
|
|
10.30
|
|
|
2.11
|
|
|
2.16
|
|
|
9.93
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
$
|
1.21
|
|
|
$
|
0.85
|
|
|
$
|
0.80
|
|
|
$
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,441
|
|
|
1,441
|
|
|
|
|
1,426
|
|
|
1,426
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)a
|
|
|
|
|
32
|
|
|
|
|
|
|
32
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
|
2019
|
|
2018
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
||||
Production
|
1,183
|
|
|
1,249
|
|
||
Sales
|
1,183
|
|
|
1,253
|
|
||
Average realized price per pound
|
$
|
2.71
|
|
|
$
|
2.87
|
|
|
|
|
|
||||
Molybdenum (millions of recoverable pounds)
|
|
|
|
||||
Productiona
|
29
|
|
|
28
|
|
||
|
|
|
|
||||
Leach operations
|
|
|
|
||||
Leach ore placed in stockpiles (metric tons per day)
|
205,900
|
|
|
195,200
|
|
||
Average copper ore grade (percent)
|
0.37
|
|
|
0.33
|
|
||
Copper production (millions of recoverable pounds)
|
268
|
|
|
287
|
|
||
|
|
|
|
||||
Mill operations
|
|
|
|
||||
Ore milled (metric tons per day)
|
393,100
|
|
|
387,600
|
|
||
Average ore grade (percent):
|
|
|
|
||||
Copper
|
0.36
|
|
|
0.38
|
|
||
Molybdenum
|
0.02
|
|
|
0.01
|
|
||
Copper recovery rate (percent)
|
83.5
|
|
|
84.3
|
|
||
Copper production (millions of recoverable pounds)
|
916
|
|
|
962
|
|
a.
|
Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.
|
|
2019
|
|
2018
|
||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||
Revenues, excluding adjustments
|
$
|
2.71
|
|
|
$
|
2.71
|
|
|
$
|
2.87
|
|
|
$
|
2.87
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.85
|
|
|
1.68
|
|
|
1.79
|
|
a
|
1.65
|
|
||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
(0.24
|
)
|
|
—
|
|
||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
0.19
|
|
|
0.19
|
|
||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
||||
Unit net cash costs
|
1.77
|
|
|
1.87
|
|
|
1.75
|
|
|
1.85
|
|
||||
DD&A
|
0.40
|
|
|
0.36
|
|
|
0.44
|
|
|
0.40
|
|
||||
Noncash and other costs, net
|
0.08
|
|
|
0.07
|
|
|
0.06
|
|
|
0.06
|
|
||||
Total unit costs
|
2.25
|
|
|
2.30
|
|
|
2.25
|
|
|
2.31
|
|
||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
||||||||
prior period open sales
|
0.03
|
|
|
0.03
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
||||
Gross profit per pound
|
$
|
0.49
|
|
|
$
|
0.44
|
|
|
$
|
0.59
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,183
|
|
|
1,183
|
|
|
1,253
|
|
|
1,253
|
|
a.
|
Includes charges totaling $0.06 per pound of copper associated with Cerro Verde’s three-year CLA.
|
|
2019
|
|
2018
|
||||
Operating Dataa
|
|
|
|
||||
Copper (millions of recoverable pounds)
|
|
|
|
||||
Production
|
607
|
|
|
1,160
|
|
||
Sales
|
667
|
|
|
1,130
|
|
||
Average realized price per pound
|
$
|
2.72
|
|
|
$
|
2.89
|
|
|
|
|
|
||||
Gold (thousands of recoverable ounces)
|
|
|
|
||||
Production
|
863
|
|
|
2,416
|
|
||
Sales
|
973
|
|
|
2,366
|
|
||
Average realized price per ounce
|
$
|
1,416
|
|
|
$
|
1,254
|
|
|
|
|
|
||||
100% Operating Data
|
|
|
|
||||
Ore milled (metric tons per day):
|
|
|
|
||||
Grasberg open pitb
|
60,100
|
|
|
133,300
|
|
||
DOZ underground minec
|
25,500
|
|
|
33,800
|
|
||
DMLZ underground minec
|
9,800
|
|
|
3,200
|
|
||
Grasberg Block Cave underground minec
|
8,600
|
|
|
4,000
|
|
||
Big Gossan underground minec
|
6,100
|
|
|
3,800
|
|
||
Total
|
110,100
|
|
|
178,100
|
|
||
|
|
|
|
||||
Average ore grade:
|
|
|
|
||||
Copper (percent)
|
0.84
|
|
|
0.98
|
|
||
Gold (grams per metric ton)
|
0.93
|
|
|
1.58
|
|
||
Recovery rates (percent):
|
|
|
|
||||
Copper
|
88.4
|
|
|
91.8
|
|
||
Gold
|
75.0
|
|
|
84.7
|
|
||
Production (recoverable):
|
|
|
|
||||
Copper (millions of pounds)
|
607
|
|
|
1,227
|
|
||
Gold (thousands of ounces)
|
863
|
|
|
2,697
|
|
a.
|
Operating data through December 21, 2018, is net of the former Rio Tinto Joint Venture interest. Refer to Note 2 for further discussion.
|
b.
|
Includes ore from related stockpiles.
|
c.
|
Reflects ore extracted, including ore from development activities that result in metal production.
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
By-
Product
|
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.72
|
|
|
$
|
2.72
|
|
|
$
|
1,416
|
|
|
$
|
2.89
|
|
|
$
|
2.89
|
|
|
$
|
1,254
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.91
|
|
|
1.63
|
|
|
849
|
|
|
1.48
|
|
|
0.77
|
|
|
335
|
|
||||||
Gold and silver credits
|
(2.13
|
)
|
|
—
|
|
|
—
|
|
|
(2.69
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.26
|
|
|
0.14
|
|
|
75
|
|
|
0.26
|
|
|
0.14
|
|
|
59
|
|
||||||
Export duties
|
0.08
|
|
|
0.05
|
|
|
25
|
|
|
0.16
|
|
|
0.08
|
|
|
36
|
|
||||||
Royalty on metals
|
0.16
|
|
|
0.09
|
|
|
49
|
|
|
0.21
|
|
|
0.11
|
|
|
48
|
|
||||||
Unit net cash costs (credits)
|
1.28
|
|
|
1.91
|
|
|
998
|
|
|
(0.58
|
)
|
|
1.10
|
|
|
478
|
|
||||||
DD&A
|
0.61
|
|
|
0.34
|
|
|
178
|
|
|
0.54
|
|
|
0.28
|
|
|
121
|
|
||||||
Metals inventory adjustments
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Noncash and other costs, net
|
0.37
|
|
a
|
0.20
|
|
|
110
|
|
|
0.21
|
|
b
|
0.11
|
|
|
48
|
|
||||||
Total unit costs
|
2.27
|
|
|
2.46
|
|
|
1,286
|
|
|
0.17
|
|
|
1.49
|
|
|
647
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
0.03
|
|
|
0.03
|
|
|
2
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
7
|
|
||||||
PT Smelting intercompany (loss) profit
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(8
|
)
|
|
0.04
|
|
|
0.03
|
|
|
12
|
|
||||||
Gross profit per pound/ounce
|
$
|
0.46
|
|
|
$
|
0.27
|
|
|
$
|
124
|
|
|
$
|
2.73
|
|
|
$
|
1.40
|
|
|
$
|
626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
667
|
|
|
667
|
|
|
|
|
1,130
|
|
|
1,130
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
973
|
|
|
|
|
|
|
2,366
|
|
a.
|
Includes charges in revenues totaling $0.25 per pound of copper primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties, partly offset by adjustments to prior year treatment charges totaling $0.03 per pound of copper. Also includes charges of $0.04 per pound of copper associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
b.
|
Includes net charges of $0.20 per pound of copper (refer to “Consolidated Results” for a summary of these charges).
|
|
2019
|
|
2018
|
||
Third parties
|
73
|
%
|
|
77
|
%
|
North America copper mines
|
22
|
|
|
14
|
|
South America mining
|
2
|
|
|
5
|
|
Indonesia mining
|
3
|
|
|
4
|
|
|
100
|
%
|
|
100
|
%
|
Cash at domestic companies
|
$
|
1.3
|
|
|
Cash at international operations
|
0.7
|
|
|
|
Total consolidated cash and cash equivalents
|
2.0
|
|
|
|
Noncontrolling interests’ share
|
(0.3
|
)
|
|
|
Cash, net of noncontrolling interests’ share
|
$
|
1.7
|
|
|
Withholding taxes
|
—
|
|
a
|
|
Net cash available
|
$
|
1.7
|
|
|
a.
|
Rounds to less than $0.1 billion.
|
|
Total
|
|
2020
|
|
2021 to
2022
|
|
2023 to
2024
|
|
Thereafter
|
|||||||||||
Debt maturities
|
$
|
9,881
|
|
|
$
|
12
|
|
|
$
|
2,916
|
|
|
$
|
2,773
|
|
|
$
|
4,180
|
|
|
Scheduled interest payment obligationsa
|
4,564
|
|
|
452
|
|
—
|
|
832
|
|
|
576
|
|
|
2,704
|
|
|||||
ARO and environmental obligationsb
|
7,862
|
|
|
440
|
|
|
696
|
|
|
436
|
|
|
6,290
|
|
||||||
Take-or-pay contractsc
|
3,608
|
|
|
1,646
|
|
|
1,031
|
|
|
544
|
|
|
387
|
|
||||||
Operating lease obligations
|
317
|
|
|
57
|
|
|
79
|
|
|
60
|
|
|
121
|
|
||||||
Totald
|
$
|
26,232
|
|
|
$
|
2,607
|
|
|
$
|
5,554
|
|
|
$
|
4,389
|
|
|
$
|
13,682
|
|
a.
|
Scheduled interest payment obligations were calculated using stated coupon rates for fixed-rate debt and interest rates applicable at December 31, 2019, for variable-rate debt.
|
b.
|
Represents estimated cash payments, on an undiscounted and unescalated basis, associated with ARO and environmental activities (including $478 million for our oil and gas operations). The timing and the amount of these payments could change as a result of changes in regulatory requirements, changes in scope and timing of ARO activities, the settlement of environmental matters and as actual spending occurs. Refer to Note 12 for additional discussion of environmental and ARO matters.
|
c.
|
Represents contractual obligations for purchases of goods or services agreements enforceable and legally binding and that specify all significant terms, and primarily include the procurement of copper concentrate ($2.3 billion), cobalt ($0.5 billion), electricity ($0.4 billion) and transportation services ($0.3 billion). Some of our take-or-pay contracts are settled based on the prevailing market rate for the service or commodity purchased, and in some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrate provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Obligations for cobalt hydroxide intermediate provide for deliveries of specified volumes to Freeport Cobalt at market-based prices. Electricity obligations are primarily for long-term power purchase agreements in North America and contractual minimum demand at the South America mines. Transportation obligations are primarily for South America contracted ocean freight.
|
d.
|
This table excludes certain other obligations in our consolidated balance sheets, such as estimated funding for pension, postretirement and other employee benefit obligations as the funding may vary from year to year based on changes in the fair value of plan assets and actuarial assumptions, commitments and contingencies totaling $122 million and unrecognized tax benefits totaling $255 million where the timing of settlement is not determinable, and other less significant amounts. This table also excludes purchase orders for inventory and other goods and services, as purchase orders typically represent authorizations to purchase rather than binding agreements.
|
|
2019
|
|
2018
|
|
||||
Revenues
|
$
|
58
|
|
|
$
|
(70
|
)
|
|
Net income attributable to common stock
|
$
|
24
|
|
|
$
|
(31
|
)
|
|
Net income per share attributable to common stock
|
$
|
0.02
|
|
|
$
|
(0.02
|
)
|
|
|
Exchange Rate per $1
at December 31,
|
Estimated Annual Payments
|
|
10% Change in
Exchange Rate
(in millions of U.S. dollars)a
|
|||||||||||||||
|
2019
|
|
2018
|
|
(in local currency)
|
|
(in millions of U.S. dollars)b
|
|
Increase
|
|
Decrease
|
||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Rupiah
|
13,832
|
|
|
14,409
|
|
|
10.2 trillion
|
|
$
|
737
|
|
|
$
|
(67
|
)
|
|
$
|
82
|
|
Australian dollar
|
1.43
|
|
|
1.41
|
|
|
199 million
|
|
$
|
139
|
|
|
$
|
(13
|
)
|
|
$
|
15
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Peruvian sol
|
3.32
|
|
|
3.38
|
|
|
2.2 billion
|
|
$
|
675
|
|
|
$
|
(61
|
)
|
|
$
|
75
|
|
Chilean peso
|
749
|
|
|
695
|
|
|
174 billion
|
|
$
|
232
|
|
|
$
|
(21
|
)
|
|
$
|
26
|
|
Atlantic Copper
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Euro
|
0.89
|
|
|
0.87
|
|
|
136 million
|
|
$
|
153
|
|
|
$
|
(14
|
)
|
|
$
|
17
|
|
a.
|
Reflects the estimated impact on annual operating costs assuming a 10 percent increase or decrease in the exchange rate reported at December 31, 2019.
|
b.
|
Based on exchange rates at December 31, 2019.
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Fair Value
|
||||||||||||||
Fixed-rate debt
|
$
|
5
|
|
|
$
|
195
|
|
|
$
|
1,880
|
|
|
$
|
1,923
|
|
|
$
|
850
|
|
|
$
|
4,163
|
|
|
$
|
9,378
|
|
Average interest rate
|
—
|
|
|
4.0
|
%
|
|
3.6
|
%
|
|
3.9
|
%
|
|
4.6
|
%
|
|
5.5
|
%
|
|
4.7
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Variable-rate debt
|
$
|
7
|
|
|
$
|
312
|
|
|
$
|
529
|
|
|
—
|
|
|
—
|
|
|
$
|
17
|
|
|
$
|
861
|
|
||
Average interest rate
|
0.8
|
%
|
|
3.6
|
%
|
|
3.7
|
%
|
|
—
|
|
|
—
|
|
|
5.4
|
%
|
|
3.7
|
%
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
3,213
|
|
|
$
|
3,213
|
|
|
$
|
358
|
|
|
$
|
3,571
|
|
Site production and delivery, before net noncash
and other costs shown below |
2,185
|
|
|
1,991
|
|
|
245
|
|
|
2,236
|
|
||||
By-product credits
|
(307
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
212
|
|
|
212
|
|
|
—
|
|
|
212
|
|
||||
Royalty on metals
|
7
|
|
|
6
|
|
|
1
|
|
|
7
|
|
||||
Net cash costs
|
2,097
|
|
|
2,209
|
|
|
246
|
|
|
2,455
|
|
||||
DD&A
|
474
|
|
|
427
|
|
|
47
|
|
|
474
|
|
||||
Metals inventory adjustments
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Noncash and other costs, net
|
94
|
|
|
90
|
|
|
4
|
|
|
94
|
|
||||
Total costs
|
2,667
|
|
|
2,728
|
|
|
297
|
|
|
3,025
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
37
|
|
|
37
|
|
|
—
|
|
|
37
|
|
||||
Gross profit
|
$
|
583
|
|
|
$
|
522
|
|
|
$
|
61
|
|
|
$
|
583
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,183
|
|
|
1,183
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.71
|
|
|
$
|
2.71
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
1.85
|
|
|
1.68
|
|
|
|
|
|
||||||
By-product credits
|
(0.27
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.18
|
|
|
0.18
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.77
|
|
|
1.87
|
|
|
|
|
|
||||||
DD&A
|
0.40
|
|
|
0.36
|
|
|
|
|
|
||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.08
|
|
|
0.07
|
|
|
|
|
|
||||||
Total unit costs
|
2.25
|
|
|
2.30
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
0.03
|
|
|
0.03
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.49
|
|
|
$
|
0.44
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Metals
|
||||||||
|
|
|
Production
|
|
|
|
Inventory
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
||||||||
Totals presented above
|
$
|
3,571
|
|
|
$
|
2,236
|
|
|
$
|
474
|
|
|
$
|
2
|
|
Treatment charges
|
(212
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Noncash and other costs, net
|
—
|
|
|
94
|
|
|
—
|
|
|
—
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Eliminations and other
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
South America mining
|
3,388
|
|
|
2,326
|
|
|
474
|
|
|
2
|
|
||||
Other miningb
|
14,052
|
|
|
12,119
|
|
|
854
|
|
|
85
|
|
||||
Corporate, other & eliminations
|
(3,038
|
)
|
|
(2,931
|
)
|
|
84
|
|
|
92
|
|
||||
As reported in our consolidated financial statements
|
$
|
14,402
|
|
|
$
|
11,514
|
|
|
$
|
1,412
|
|
|
$
|
179
|
|
a.
|
Includes silver sales of 4.7 million ounces ($16.57 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Othera
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
3,593
|
|
|
$
|
3,593
|
|
|
$
|
352
|
|
|
$
|
3,945
|
|
Site production and delivery, before net noncash
and other costs shown below |
2,244
|
|
b
|
2,065
|
|
|
226
|
|
|
2,291
|
|
||||
By-product credits
|
(305
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
243
|
|
|
243
|
|
|
—
|
|
|
243
|
|
||||
Royalty on metals
|
8
|
|
|
7
|
|
|
1
|
|
|
8
|
|
||||
Net cash costs
|
2,190
|
|
|
2,315
|
|
|
227
|
|
|
2,542
|
|
||||
DD&A
|
546
|
|
|
499
|
|
|
47
|
|
|
546
|
|
||||
Noncash and other costs, net
|
79
|
|
|
75
|
|
|
4
|
|
|
79
|
|
||||
Total costs
|
2,815
|
|
|
2,889
|
|
|
278
|
|
|
3,167
|
|
||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
(37
|
)
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||
Gross profit
|
$
|
741
|
|
|
$
|
667
|
|
|
$
|
74
|
|
|
$
|
741
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,253
|
|
|
1,253
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.87
|
|
|
$
|
2.87
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
1.79
|
|
b
|
1.65
|
|
|
|
|
|
||||||
By-product credits
|
(0.24
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.19
|
|
|
0.19
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.75
|
|
|
1.85
|
|
|
|
|
|
||||||
DD&A
|
0.44
|
|
|
0.40
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
2.25
|
|
|
2.31
|
|
|
|
|
|
||||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
(0.03
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.59
|
|
|
$
|
0.53
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
3,945
|
|
|
$
|
2,291
|
|
|
$
|
546
|
|
|
|
||
Treatment charges
|
(243
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
79
|
|
|
—
|
|
|
|
|||||
Other revenue adjustments, primarily for pricing
on prior period open sales |
(37
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
(2
|
)
|
|
(5
|
)
|
|
—
|
|
|
|
|||||
South America mining
|
3,655
|
|
|
2,365
|
|
|
546
|
|
|
|
|||||
Other miningc
|
18,099
|
|
|
12,612
|
|
|
1,083
|
|
|
|
|||||
Corporate, other & eliminations
|
(3,126
|
)
|
|
(3,290
|
)
|
|
125
|
|
|
|
|||||
As reported in our consolidated financial statements
|
$
|
18,628
|
|
|
$
|
11,687
|
|
|
$
|
1,754
|
|
|
|
a.
|
Includes silver sales of 4.5 million ounces ($15.20 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Includes charges totaling $69 million ($0.06 per pound of copper) for Cerro Verde’s three-year CLA.
|
c.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
a.
|
Includes silver sales of 2.5 million ounces ($16.15 per ounce average realized price).
|
b.
|
Includes charges in revenues totaling $166 million ($0.25 per pound of copper) primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed PT-FI export duties, partly offset by adjustments to prior year treatment charges totaling $20 million ($0.03 per pound of copper). Also includes charges of $28 million ($0.04 per pound of copper) associated with adjustments to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
c.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
a.
|
Includes silver sales of 3.8 million ounces ($15.24 per ounce average realized price).
|
b.
|
Includes net charges of $223 million ($0.20 per pound of copper). Refer to “Consolidated Results - Summary Financial Data” for a summary of these charges.
|
c.
|
Represents the combined total for our other mining operations as presented in Note 16.
|
|
|
|
Years Ended December 31,
|
|
|
|
||||||||||
(In millions)
|
|
|
2019
|
|
2018
|
|
|
|
||||||||
Revenues, excluding adjustmentsa
|
|
|
$
|
369
|
|
|
$
|
440
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
|
293
|
|
|
282
|
|
|
|
|
||||||
Treatment charges and other
|
|
|
25
|
|
|
30
|
|
|
|
|
||||||
Net cash costs
|
|
|
318
|
|
|
312
|
|
|
|
|
||||||
DD&A
|
|
|
62
|
|
|
79
|
|
|
|
|
||||||
Metals inventory adjustments
|
|
|
50
|
|
|
—
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
|
6
|
|
|
7
|
|
|
|
|
||||||
Total costs
|
|
|
436
|
|
|
398
|
|
|
|
|
||||||
Gross (loss) profit
|
|
|
$
|
(67
|
)
|
|
$
|
42
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)a
|
|
|
29
|
|
|
35
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross (loss) profit per pound of molybdenum:
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustmentsa
|
|
|
$
|
12.51
|
|
|
$
|
12.36
|
|
|
|
|
||||
Site production and delivery, before net noncash
and other costs shown below |
|
|
9.95
|
|
|
7.92
|
|
|
|
|
||||||
Treatment charges and other
|
|
|
0.85
|
|
|
0.85
|
|
|
|
|
||||||
Unit net cash costs
|
|
|
10.80
|
|
|
8.77
|
|
|
|
|
||||||
DD&A
|
|
|
2.11
|
|
|
2.21
|
|
|
|
|
||||||
Metals inventory adjustments
|
|
|
1.69
|
|
|
—
|
|
|
|
|
||||||
Noncash and other costs, net
|
|
|
0.20
|
|
|
0.19
|
|
|
|
|
||||||
Total unit costs
|
|
|
14.80
|
|
|
11.17
|
|
|
|
|
||||||
Gross (loss) profit per pound
|
|
|
$
|
(2.29
|
)
|
|
$
|
1.19
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Metals
|
|
||||||||
|
|
|
Production
|
|
|
|
Inventory
|
|
||||||||
Year Ended December 31, 2019
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
|
||||||||
Totals presented above
|
$
|
369
|
|
|
$
|
293
|
|
|
$
|
62
|
|
|
$
|
50
|
|
|
Treatment charges and other
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
||||
Molybdenum mines
|
344
|
|
|
299
|
|
|
62
|
|
|
50
|
|
|
||||
Other miningb
|
17,096
|
|
|
14,146
|
|
|
1,266
|
|
|
37
|
|
|
||||
Corporate, other & eliminations
|
(3,038
|
)
|
|
(2,931
|
)
|
|
84
|
|
|
92
|
|
|
||||
As reported in our consolidated financial statements
|
$
|
14,402
|
|
|
$
|
11,514
|
|
|
$
|
1,412
|
|
|
$
|
179
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Totals presented above
|
$
|
440
|
|
|
$
|
282
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
Treatment charges and other
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
||||
Molybdenum mines
|
410
|
|
|
289
|
|
|
79
|
|
|
—
|
|
|
||||
Other miningb
|
21,344
|
|
|
14,688
|
|
|
1,550
|
|
|
4
|
|
|
||||
Corporate, other & eliminations
|
(3,126
|
)
|
|
(3,290
|
)
|
|
125
|
|
|
—
|
|
|
||||
As reported in our consolidated financial statements
|
$
|
18,628
|
|
|
$
|
11,687
|
|
|
$
|
1,754
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Reflects sales of the Molybdenum mines’ production to the molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Represents the combined total for our other mining operations as presented in Note 16. Also includes amounts associated with the 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.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
Richard C. Adkerson
|
|
Kathleen L. Quirk
|
Vice Chairman of the Board,
|
|
Executive Vice President and
|
President and Chief Executive Officer
|
|
Chief Financial Officer
|
|
Because of the complexity of tax laws, regulations and contractual agreements with the applicable government, auditing the recognition and measurement of uncertain tax positions requires a high degree of auditor judgment and increased extent of effort, including the involvement of our tax professionals.
|
|
|
|
|
How We Addressed the Matter in Our Audit
|
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting process for uncertain tax positions. This included testing controls over management’s review of the technical merits of tax positions and disputed tax assessments, including the process to measure the financial statement impact of these tax matters.
|
|
|
|
|
|
Our audit procedures included, among others, evaluating the Company’s accounting for these tax positions by using our knowledge of and experience with the application of respective tax laws by the relevant tax authorities, or our understanding of the contractual arrangements with the applicable government, if the position is governed by a contract. We analyzed the Company’s assumptions and data used to determine the tax assessments and tested the accuracy of the calculations. We involved our tax professionals located in the respective jurisdictions to assess the technical merits of the Company’s tax positions and to evaluate the application of relevant tax laws in the Company’s recognition determination. We assessed the Company’s correspondence with the relevant tax authorities and evaluated third-party tax or legal opinions obtained by the Company. We also evaluated the adequacy of the Company’s disclosures included in Note 12 in relation to these tax matters.
|
|
|
|
|
|
Environmental obligations
|
|
Description of the Matter
|
As discussed in Note 12 to the consolidated financial statements, the Company is subject to national, state and local environmental laws and regulations governing the protection of the environment, including restoration and reclamation of environmental contamination. Liabilities for environmental contingencies are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. At December 31, 2019, the Company’s consolidated environmental obligations totaled $1.6 billion.
|
|
|
|
|
|
Auditing management’s accounting for environmental obligations was challenging, as significant judgment is required by the Company to evaluate whether an environmental loss has been incurred and to estimate the future costs to remediate the environmental matters. The significant judgment was primarily due to the inherent estimation uncertainty relating to the amount of future costs. Such uncertainties involve assumptions regarding the nature and extent of contamination at each site, the nature and extent of required cleanup efforts under existing environmental regulations, the duration and effectiveness of the chosen remedial strategy, and allocation of costs among other potentially responsible parties. Actual costs incurred in future periods could differ from amounts estimated.
|
|
|
|
|
|
|
|
How We Addressed the Matter in Our Audit
|
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s identification and measurement of the environmental loss contingencies. For example, we tested controls over management’s review of the environmental loss contingency calculations and management’s assessment to evaluate key judgments and estimates affecting the environmental loss contingencies.
|
|
|
|
|
|
To test the Company’s identification and measurement of the environmental loss contingencies, among other procedures, we inspected correspondence with regulatory agencies, obtained external legal counsel confirmation letters, and inspected environmental studies. Additionally, we assessed the appropriateness of the Company’s model and tested the significant assumptions discussed above along with the underlying data used by the Company in its analysis. We utilized our environmental specialists to search for new or contrary evidence related to the Company’s sites and to assist in evaluating the reasonableness of estimated future costs by comparing the estimated future costs to environmental permits, third party observable data such as vendor quotes, and to historical costs incurred for similar activities.
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In millions, except per share amounts)
|
||||||||||
Revenues
|
$
|
14,402
|
|
|
$
|
18,628
|
|
|
$
|
16,403
|
|
Cost of sales:
|
|
|
|
|
|
||||||
Production and delivery
|
11,514
|
|
|
11,687
|
|
|
10,258
|
|
|||
Depreciation, depletion and amortization
|
1,412
|
|
|
1,754
|
|
|
1,714
|
|
|||
Metals inventory adjustments
|
179
|
|
|
4
|
|
|
8
|
|
|||
Total cost of sales
|
13,105
|
|
|
13,445
|
|
|
11,980
|
|
|||
Selling, general and administrative expenses
|
414
|
|
|
443
|
|
|
477
|
|
|||
Mining exploration and research expenses
|
104
|
|
|
105
|
|
|
93
|
|
|||
Environmental obligations and shutdown costs
|
105
|
|
|
89
|
|
|
244
|
|
|||
Net gain on sales of assets
|
(417
|
)
|
|
(208
|
)
|
|
(81
|
)
|
|||
Total costs and expenses
|
13,311
|
|
|
13,874
|
|
|
12,713
|
|
|||
Operating income
|
1,091
|
|
|
4,754
|
|
|
3,690
|
|
|||
Interest expense, net
|
(620
|
)
|
|
(945
|
)
|
|
(801
|
)
|
|||
Net (loss) gain on early extinguishment of debt
|
(27
|
)
|
|
7
|
|
|
21
|
|
|||
Other (expense) income, net
|
(138
|
)
|
|
76
|
|
|
(8
|
)
|
|||
Income from continuing operations before income taxes and equity in affiliated companies’ net earnings
|
306
|
|
|
3,892
|
|
|
2,902
|
|
|||
Provision for income taxes
|
(510
|
)
|
|
(991
|
)
|
|
(883
|
)
|
|||
Equity in affiliated companies’ net earnings
|
12
|
|
|
8
|
|
|
10
|
|
|||
Net (loss) income from continuing operations
|
(192
|
)
|
|
2,909
|
|
|
2,029
|
|
|||
Net income (loss) from discontinued operations
|
3
|
|
|
(15
|
)
|
|
66
|
|
|||
Net (loss) income
|
(189
|
)
|
|
2,894
|
|
|
2,095
|
|
|||
Net income attributable to noncontrolling interests:
|
|
|
|
|
|
||||||
Continuing operations
|
(50
|
)
|
|
(292
|
)
|
|
(274
|
)
|
|||
Discontinued operations
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||
Net (loss) income attributable to common stockholders
|
$
|
(239
|
)
|
|
$
|
2,602
|
|
|
$
|
1,817
|
|
|
|
|
|
|
|
||||||
Basic net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.80
|
|
|
$
|
1.21
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
0.04
|
|
|||
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
||||||
Diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
$
|
1.21
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
0.04
|
|
|||
|
$
|
(0.17
|
)
|
|
$
|
1.78
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
1,451
|
|
|
1,449
|
|
|
1,447
|
|
|||
Diluted
|
1,451
|
|
|
1,458
|
|
|
1,454
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share of common stock
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In millions)
|
||||||||||
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(189
|
)
|
|
$
|
2,894
|
|
|
$
|
2,095
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
||||||
Unrealized gains on securities
|
—
|
|
|
—
|
|
|
1
|
|
|||
Defined benefit plans:
|
|
|
|
|
|
||||||
Actuarial (losses) gains arising during the period, net of taxes
|
(116
|
)
|
|
(77
|
)
|
|
14
|
|
|||
Prior service costs arising during the period
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||
Amortization or curtailment of unrecognized amounts included in net periodic benefit costs
|
47
|
|
|
48
|
|
|
54
|
|
|||
Foreign exchange gains (losses)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
Other comprehensive (loss) income
|
(68
|
)
|
|
(34
|
)
|
|
69
|
|
|||
|
|
|
|
|
|
||||||
Total comprehensive (loss) income
|
(257
|
)
|
|
2,860
|
|
|
2,164
|
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(53
|
)
|
|
(291
|
)
|
|
(286
|
)
|
|||
Total comprehensive (loss) income attributable to common stockholders
|
$
|
(310
|
)
|
|
$
|
2,569
|
|
|
$
|
1,878
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In millions)
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
||||||
Net (loss) income
|
|
$
|
(189
|
)
|
|
$
|
2,894
|
|
|
$
|
2,095
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
|
1,412
|
|
|
1,754
|
|
|
1,714
|
|
|||
Metals inventory adjustments
|
|
179
|
|
|
4
|
|
|
8
|
|
|||
Net gain on sales of assets
|
|
(417
|
)
|
|
(208
|
)
|
|
(81
|
)
|
|||
Stock-based compensation
|
|
63
|
|
|
76
|
|
|
71
|
|
|||
Net charges for environmental and asset retirement obligations, including accretion
|
|
221
|
|
|
262
|
|
|
383
|
|
|||
Payments for environmental and asset retirement obligations
|
|
(244
|
)
|
|
(239
|
)
|
|
(131
|
)
|
|||
Net charges for defined pension and postretirement plans
|
|
108
|
|
|
81
|
|
|
120
|
|
|||
Pension plan contributions
|
|
(75
|
)
|
|
(75
|
)
|
|
(174
|
)
|
|||
Net loss (gain) on early extinguishment of debt
|
|
27
|
|
|
(7
|
)
|
|
(21
|
)
|
|||
Deferred income taxes
|
|
29
|
|
|
100
|
|
|
76
|
|
|||
(Income) loss on disposal of discontinued operations
|
|
(3
|
)
|
|
15
|
|
|
(57
|
)
|
|||
Dividends received from PT Smelting, an equity method investee
|
|
40
|
|
|
—
|
|
|
—
|
|
|||
Charges for PT Freeport Indonesia (PT-FI) surface water tax, withholding tax and environmental matters
|
|
30
|
|
|
162
|
|
|
—
|
|
|||
Payments for PT-FI surface water and withholding tax matters
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|||
Charges for Cerro Verde royalty dispute
|
|
65
|
|
|
371
|
|
|
355
|
|
|||
Payments for Cerro Verde royalty dispute
|
|
(187
|
)
|
|
(56
|
)
|
|
(53
|
)
|
|||
U.S. tax reform benefit
|
|
—
|
|
|
(123
|
)
|
|
(393
|
)
|
|||
Change in PT-FI statutory tax rate
|
|
—
|
|
|
(504
|
)
|
|
—
|
|
|||
Other, net
|
|
141
|
|
|
12
|
|
|
(43
|
)
|
|||
Changes in working capital and other, excluding disposition amounts:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
119
|
|
|
649
|
|
|
427
|
|
|||
Inventories
|
|
259
|
|
|
(537
|
)
|
|
(169
|
)
|
|||
Other current assets
|
|
60
|
|
|
(28
|
)
|
|
(28
|
)
|
|||
Accounts payable and accrued liabilities
|
|
(60
|
)
|
|
(106
|
)
|
|
110
|
|
|||
Accrued income taxes and timing of other tax payments
|
|
(29
|
)
|
|
(634
|
)
|
|
457
|
|
|||
Net cash provided by operating activities
|
|
1,482
|
|
|
3,863
|
|
|
4,666
|
|
|||
Cash flow from investing activities:
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
North America copper mines
|
|
(877
|
)
|
|
(601
|
)
|
|
(167
|
)
|
|||
South America
|
|
(256
|
)
|
|
(237
|
)
|
|
(115
|
)
|
|||
Indonesia
|
|
(1,369
|
)
|
|
(1,001
|
)
|
|
(875
|
)
|
|||
Molybdenum mines
|
|
(19
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|||
Other
|
|
(131
|
)
|
|
(123
|
)
|
|
(248
|
)
|
|||
Acquisition of PT Rio Tinto Indonesia
|
|
—
|
|
|
(3,500
|
)
|
|
—
|
|
|||
Proceeds from sales of:
|
|
|
|
|
|
|
||||||
Timok exploration project and a portion of Freeport Cobalt
|
|
452
|
|
|
—
|
|
|
—
|
|
|||
PT Indonesia Papua Metal Dan Mineral
|
|
—
|
|
|
457
|
|
|
—
|
|
|||
Other assets
|
|
109
|
|
|
93
|
|
|
72
|
|
|||
Other, net
|
|
(12
|
)
|
|
(97
|
)
|
|
17
|
|
|||
Net cash used in investing activities
|
|
(2,103
|
)
|
|
(5,018
|
)
|
|
(1,321
|
)
|
|||
Cash flow from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from debt
|
|
1,879
|
|
|
632
|
|
|
955
|
|
|||
Repayments of debt
|
|
(3,197
|
)
|
|
(2,717
|
)
|
|
(3,812
|
)
|
|||
Proceeds from sale of PT-FI shares
|
|
—
|
|
|
3,500
|
|
|
—
|
|
|||
Cash dividends and distributions paid:
|
|
|
|
|
|
|
||||||
Common stock
|
|
(291
|
)
|
|
(218
|
)
|
|
(2
|
)
|
|||
Noncontrolling interests
|
|
(82
|
)
|
|
(278
|
)
|
|
(174
|
)
|
|||
Contributions from noncontrolling interests
|
|
165
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
(30
|
)
|
|
(19
|
)
|
|
(22
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(1,556
|
)
|
|
900
|
|
|
(3,055
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
|
|
(2,177
|
)
|
|
(255
|
)
|
|
290
|
|
|||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
|
4,455
|
|
|
4,710
|
|
|
4,420
|
|
|||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
|
$
|
2,278
|
|
|
$
|
4,455
|
|
|
$
|
4,710
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions, except par value)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,020
|
|
|
$
|
4,217
|
|
Trade accounts receivable
|
741
|
|
|
829
|
|
||
Income and other tax receivables
|
426
|
|
|
493
|
|
||
Inventories:
|
|
|
|
||||
Materials and supplies, net
|
1,649
|
|
|
1,528
|
|
||
Mill and leach stockpiles
|
1,143
|
|
|
1,197
|
|
||
Product
|
1,281
|
|
|
1,778
|
|
||
Other current assets
|
655
|
|
|
422
|
|
||
Total current assets
|
7,915
|
|
|
10,464
|
|
||
Property, plant, equipment and mine development costs, net
|
29,584
|
|
|
28,010
|
|
||
Long-term mill and leach stockpiles
|
1,425
|
|
|
1,570
|
|
||
Other assets
|
1,885
|
|
|
2,172
|
|
||
Total assets
|
$
|
40,809
|
|
|
$
|
42,216
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
2,576
|
|
|
$
|
2,625
|
|
Current portion of environmental and asset retirement obligations
|
436
|
|
|
449
|
|
||
Accrued income taxes
|
119
|
|
|
165
|
|
||
Dividends payable
|
73
|
|
|
73
|
|
||
Current portion of debt
|
5
|
|
|
17
|
|
||
Total current liabilities
|
3,209
|
|
|
3,329
|
|
||
Long-term debt, less current portion
|
9,821
|
|
|
11,124
|
|
||
Deferred income taxes
|
4,210
|
|
|
4,032
|
|
||
Environmental and asset retirement obligations, less current portion
|
3,630
|
|
|
3,609
|
|
||
Other liabilities
|
2,491
|
|
|
2,230
|
|
||
Total liabilities
|
23,361
|
|
|
24,324
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, par value $0.10, 1,582 shares and 1,579 shares issued, respectively
|
158
|
|
|
158
|
|
||
Capital in excess of par value
|
25,830
|
|
|
26,013
|
|
||
Accumulated deficit
|
(12,280
|
)
|
|
(12,041
|
)
|
||
Accumulated other comprehensive loss
|
(676
|
)
|
|
(605
|
)
|
||
Common stock held in treasury – 131 shares and 130 shares, respectively, at cost
|
(3,734
|
)
|
|
(3,727
|
)
|
||
Total stockholders’ equity
|
9,298
|
|
|
9,798
|
|
||
Noncontrolling interests
|
8,150
|
|
|
8,094
|
|
||
Total equity
|
17,448
|
|
|
17,892
|
|
||
Total liabilities and equity
|
$
|
40,809
|
|
|
$
|
42,216
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Accumulated Deficit
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017
|
1,574
|
|
|
$
|
157
|
|
|
$
|
26,690
|
|
|
$
|
(16,540
|
)
|
|
$
|
(548
|
)
|
|
129
|
|
|
$
|
(3,708
|
)
|
|
$
|
6,051
|
|
|
$
|
3,206
|
|
|
$
|
9,257
|
|
Exercised and issued stock-based awards
|
4
|
|
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(15
|
)
|
|
41
|
|
|
1
|
|
|
42
|
|
||||||||
Dividends, including forfeited dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(174
|
)
|
|
(173
|
)
|
||||||||
Net income attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
1,817
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,817
|
|
|
—
|
|
|
1,817
|
|
||||||||
Net income attributable to noncontrolling interests, including discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
278
|
|
|
278
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
8
|
|
|
69
|
|
||||||||
Balance at December 31, 2017
|
1,578
|
|
|
158
|
|
|
26,751
|
|
|
(14,722
|
)
|
|
(487
|
)
|
|
130
|
|
|
(3,723
|
)
|
|
7,977
|
|
|
3,319
|
|
|
11,296
|
|
||||||||
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
66
|
|
|
—
|
|
|
66
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
(278
|
)
|
|
(569
|
)
|
||||||||
Adoption of new accounting standard for reclassification of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sale of interest in PT-FI (refer to Note 2)
|
—
|
|
|
—
|
|
|
(525
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(531
|
)
|
|
4,762
|
|
|
4,231
|
|
||||||||
Net income attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
—
|
|
|
2,602
|
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
292
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(1
|
)
|
|
(34
|
)
|
||||||||
Balance at December 31, 2018
|
1,579
|
|
|
158
|
|
|
26,013
|
|
|
(12,041
|
)
|
|
(605
|
)
|
|
130
|
|
|
(3,727
|
)
|
|
9,798
|
|
|
8,094
|
|
|
17,892
|
|
||||||||
Exercised and issued stock-based awards
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Stock-based compensation, including the tender of shares
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(7
|
)
|
|
43
|
|
|
1
|
|
|
44
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
(73
|
)
|
|
(364
|
)
|
||||||||
Changes in noncontrolling interests
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(11
|
)
|
|
(12
|
)
|
||||||||
Contributions from noncontrolling interests
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
86
|
|
|
166
|
|
||||||||
Adjustment for deferred taxes
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
|
(239
|
)
|
||||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
50
|
|
||||||||
Other comprehensive (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
3
|
|
|
(68
|
)
|
||||||||
Balance at December 31, 2019
|
1,582
|
|
|
$
|
158
|
|
|
$
|
25,830
|
|
|
$
|
(12,280
|
)
|
|
$
|
(676
|
)
|
|
131
|
|
|
$
|
(3,734
|
)
|
|
$
|
9,298
|
|
|
$
|
8,150
|
|
|
$
|
17,448
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Net (loss) income from continuing operations
|
$
|
(192
|
)
|
|
$
|
2,909
|
|
|
$
|
2,029
|
|
|
Net income from continuing operations attributable to noncontrolling interests
|
(50
|
)
|
|
(292
|
)
|
|
(274
|
)
|
|
|||
Accumulated dividends and undistributed earnings allocated to participating securities
|
(3
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
|||
Net (loss) income from continuing operations attributable to common stockholders
|
(245
|
)
|
|
2,613
|
|
|
1,751
|
|
|
|||
|
|
|
|
|
|
|
||||||
Net income (loss) from discontinued operations
|
3
|
|
|
(15
|
)
|
|
66
|
|
|
|||
Net income from discontinued operations attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|||
Net income (loss) from discontinued operations attributable to common stockholders
|
3
|
|
|
(15
|
)
|
|
62
|
|
|
|||
|
|
|
|
|
|
|
||||||
Net (loss) income attributable to common stockholders
|
$
|
(242
|
)
|
|
$
|
2,598
|
|
|
$
|
1,813
|
|
|
|
|
|
|
|
|
|
||||||
Basic weighted-average shares of common stock outstanding (millions)
|
1,451
|
|
|
1,449
|
|
|
1,447
|
|
|
|||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions)
|
—
|
|
a
|
9
|
|
a
|
7
|
|
|
|||
Diluted weighted-average shares of common stock outstanding (millions)
|
1,451
|
|
|
1,458
|
|
|
1,454
|
|
|
|||
|
|
|
|
|
|
|
||||||
Basic net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.80
|
|
|
$
|
1.21
|
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
0.04
|
|
|
|||
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
||||||
Diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(0.17
|
)
|
|
$
|
1.79
|
|
|
$
|
1.21
|
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
0.04
|
|
|
|||
|
$
|
(0.17
|
)
|
|
$
|
1.78
|
|
|
$
|
1.25
|
|
|
a.
|
Excludes approximately 11 million shares of common stock in 2019 and 1 million in 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.
|
a.
|
Deferred income taxes have been recognized on the fair value adjustments to net assets using an Indonesia corporate income tax rate of 25 percent.
|
Cash
|
|
$
|
458
|
|
|
Other current assets
|
|
23
|
|
|
|
Property, plant, equipment and mine development costs:
|
|
|
|
||
Mineral reserves
|
|
3,056
|
|
|
|
Mine development, infrastructure and other
|
|
1,559
|
|
|
|
Liabilities other than taxes
|
|
(77
|
)
|
|
|
Deferred income taxes, net
|
|
(788
|
)
|
|
|
Noncontrolling interests
|
|
(4,762
|
)
|
a
|
|
Capital in excess of par value
|
|
531
|
|
|
a.
|
Primarily reflects the approximate 40 percent economic interest in the former Rio Tinto Joint Venture for the period from 2023 through 2041, which was acquired by PTI and PT Inalum.
|
|
Years Ended December 31,
|
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|
||||||
Income before income taxes and net gain (loss) on disposal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
a
|
Net gain (loss) on disposalb
|
3
|
|
|
(15
|
)
|
|
57
|
|
|
|||
Net income (loss) before income taxes
|
3
|
|
|
(15
|
)
|
|
70
|
|
|
|||
Provision for income taxes
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|||
Net income (loss) from discontinued operations
|
$
|
3
|
|
|
$
|
(15
|
)
|
|
$
|
66
|
|
|
a.
|
In accordance with accounting guidance, reflects the recognition of intercompany sales.
|
b.
|
Primarily includes gains (losses) associated with the change in the fair value of contingent consideration.
|
|
December 31,
|
|
||||||
|
2019
|
|
2018
|
|
||||
Current inventories:
|
|
|
|
|
||||
Total materials and supplies, neta
|
$
|
1,649
|
|
|
$
|
1,528
|
|
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
220
|
|
|
$
|
282
|
|
|
Leach stockpiles
|
923
|
|
|
915
|
|
b
|
||
Total current mill and leach stockpiles
|
$
|
1,143
|
|
|
$
|
1,197
|
|
b
|
|
|
|
|
|
||||
Raw materials (primarily concentrate)
|
$
|
318
|
|
|
$
|
260
|
|
|
Work-in-process
|
124
|
|
|
192
|
|
|
||
Finished goods
|
839
|
|
|
1,326
|
|
|
||
Total product
|
$
|
1,281
|
|
|
$
|
1,778
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
181
|
|
|
$
|
265
|
|
|
Leach stockpiles
|
1,244
|
|
|
1,305
|
|
b
|
||
Total long-term mill and leach stockpilesc
|
$
|
1,425
|
|
|
$
|
1,570
|
|
b
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling $24 million at December 31, 2019 and 2018.
|
b.
|
In fourth-quarter 2019, FCX changed its method of estimating the current portion of its leach stockpiles and revised its December 31, 2018, balances to conform with the new methodology resulting in a $256 million decrease in the current balance and a corresponding increase in the long-term balance.
|
c.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Proven and probable mineral reserves
|
$
|
7,087
|
|
|
$
|
7,089
|
|
VBPP
|
465
|
|
|
477
|
|
||
Mine development and other
|
8,180
|
|
|
8,195
|
|
||
Buildings and infrastructure
|
8,435
|
|
|
8,051
|
|
||
Machinery and equipment
|
13,312
|
|
|
12,985
|
|
||
Mobile equipment
|
4,320
|
|
|
4,010
|
|
||
Construction in progress
|
4,265
|
|
|
3,006
|
|
||
Oil and gas properties
|
27,293
|
|
|
27,292
|
|
||
Total
|
73,357
|
|
|
71,105
|
|
||
Accumulated depreciation, depletion, and amortizationa
|
(43,773
|
)
|
|
(43,095
|
)
|
||
Property, plant, equipment and mine development costs, net
|
$
|
29,584
|
|
|
$
|
28,010
|
|
a.
|
Includes accumulated amortization for oil and gas properties of $27.3 billion at December 31, 2019 and 2018.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Disputed tax assessments:a
|
|
|
|
||||
PT-FI
|
$
|
178
|
|
|
$
|
493
|
|
Cerro Verde
|
187
|
|
|
183
|
|
||
Long-term receivable for taxesb
|
290
|
|
|
260
|
|
||
Intangible assetsc
|
402
|
|
|
398
|
|
||
Investments:
|
|
|
|
||||
Assurance bondd
|
157
|
|
|
126
|
|
||
PT Smeltinge
|
80
|
|
|
125
|
|
||
Fixed income, equity securities and other
|
66
|
|
|
65
|
|
||
Legally restricted fundsf
|
196
|
|
|
181
|
|
||
Contingent consideration associated with sales of assetsg
|
115
|
|
|
189
|
|
||
Timok transaction receivable (refer to Note 2)
|
58
|
|
|
—
|
|
||
Long-term employee receivables
|
22
|
|
|
20
|
|
||
Other
|
134
|
|
|
132
|
|
||
Total other assets
|
$
|
1,885
|
|
|
$
|
2,172
|
|
a.
|
Refer to Note 12 for further discussion.
|
b.
|
Includes tax overpayments and refunds not expected to be realized within the next 12 months (primarily associated with U.S. tax reform, refer to Note 11).
|
c.
|
Indefinite-lived intangible assets totaled $215 million at December 31, 2019 and 2018. Accumulated amortization of definite-lived intangible assets totaled $54 million at December 31, 2019, and $51 million at December 31, 2018.
|
d.
|
Relates to PT-FI’s commitment for the development of a new smelter in Indonesia (refer to Note 13 for further discussion).
|
e.
|
PT-FI’s 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $29 million at December 31, 2019, and $11 million at December 31, 2018. Trade accounts receivable from PT Smelting totaled $261 million at December 31, 2019, and $176 million at December 31, 2018.
|
f.
|
Includes $196 million at December 31, 2019, and $180 million at December 31, 2018, held in trusts for AROs related to properties in New Mexico (refer to Note 12 for further discussion).
|
g.
|
Refer to Note 15 for further discussion.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Accounts payable
|
$
|
1,654
|
|
|
$
|
1,661
|
|
Salaries, wages and other compensation
|
249
|
|
|
273
|
|
||
Accrued interesta
|
178
|
|
|
183
|
|
||
PT-FI contingenciesb
|
115
|
|
|
162
|
|
||
Legal matters
|
88
|
|
|
16
|
|
||
Accrued taxes, other than income taxes
|
79
|
|
|
109
|
|
||
Pension, postretirement, postemployment and other employee benefitsc
|
69
|
|
|
78
|
|
||
Leasesd
|
44
|
|
|
—
|
|
||
Other
|
100
|
|
|
143
|
|
||
Total accounts payable and accrued liabilities
|
$
|
2,576
|
|
|
$
|
2,625
|
|
a.
|
Third-party interest paid, net of capitalized interest, was $591 million in 2019, $500 million in 2018 and $565 million in 2017.
|
b.
|
Refer to Note 12 for further discussion.
|
c.
|
Refer to Note 9 for long-term portion.
|
d.
|
Refer to Note 13 for further discussion.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Cerro Verde credit facility
|
826
|
|
|
1,023
|
|
||
Senior notes and debentures:
|
|
|
|
||||
Issued by FCX:
|
|
|
|
||||
3.100% Senior Notes due 2020
|
—
|
|
|
999
|
|
||
4.00% Senior Notes due 2021
|
194
|
|
|
597
|
|
||
3.55% Senior Notes due 2022
|
1,876
|
|
|
1,886
|
|
||
6.875% Senior Notes due 2023
|
—
|
|
|
768
|
|
||
3.875% Senior Notes due 2023
|
1,917
|
|
|
1,915
|
|
||
4.55% Senior Notes due 2024
|
846
|
|
|
845
|
|
||
5.00% Senior Notes due 2027
|
592
|
|
|
—
|
|
||
5.25% Senior Notes due 2029
|
592
|
|
|
—
|
|
||
5.40% Senior Notes due 2034
|
741
|
|
|
741
|
|
||
5.450% Senior Notes due 2043
|
1,844
|
|
|
1,843
|
|
||
Issued by FMC:
|
|
|
|
||||
71/8% Debentures due 2027
|
115
|
|
|
115
|
|
||
9½% Senior Notes due 2031
|
125
|
|
|
126
|
|
||
61/8% Senior Notes due 2034
|
117
|
|
|
117
|
|
||
Other
|
41
|
|
|
166
|
|
||
Total debt
|
9,826
|
|
|
11,141
|
|
||
Less current portion of debt
|
(5
|
)
|
|
(17
|
)
|
||
Long-term debt
|
$
|
9,821
|
|
|
$
|
11,124
|
|
Debt Instrument
|
|
Date
|
3.55% Senior Notes due 2022
|
|
December 1, 2021
|
3.875% Senior Notes due 2023
|
|
December 15, 2022
|
4.55% Senior Notes due 2024
|
|
August 14, 2024
|
5.40% Senior Notes due 2034
|
|
May 14, 2034
|
5.450% Senior Notes due 2043
|
|
September 15, 2042
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Principal Amount
|
|
Net Adjustments
|
|
Book Value
|
|
Redemption/Tender Value
|
|
Loss/(Gain)
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
FCX 3.100% Senior Notes due 2020
|
$
|
1,000
|
|
|
$
|
(2
|
)
|
|
$
|
998
|
|
|
$
|
1,003
|
|
|
$
|
5
|
|
FCX 6.875% Senior Notes due 2023
|
728
|
|
|
34
|
|
|
762
|
|
|
768
|
|
|
6
|
|
|||||
FCX 4.00% Senior Notes due 2021
|
405
|
|
|
(2
|
)
|
|
403
|
|
|
418
|
|
|
15
|
|
|||||
FCX 3.55% Senior Notes due 2022
|
12
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
—
|
|
|||||
Total
|
$
|
2,145
|
|
|
$
|
30
|
|
|
$
|
2,175
|
|
|
$
|
2,201
|
|
|
$
|
26
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
FCX 6.75% Senior Notes due 2022
|
$
|
404
|
|
|
$
|
22
|
|
|
$
|
426
|
|
|
$
|
418
|
|
|
$
|
(8
|
)
|
FM O&G LLC 67/8% Senior Notes due 2023
|
50
|
|
|
4
|
|
|
54
|
|
|
52
|
|
|
(2
|
)
|
|||||
Total
|
$
|
454
|
|
|
$
|
26
|
|
|
$
|
480
|
|
|
$
|
470
|
|
|
$
|
(10
|
)
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
FCX 2.375% Senior Notes due 2018
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
74
|
|
|
$
|
—
|
|
FCX 6.125% Senior Notes due 2019
|
179
|
|
|
5
|
|
|
184
|
|
|
182
|
|
|
(2
|
)
|
|||||
FM O&G LLC 6.125% Senior Notes due 2019
|
58
|
|
|
2
|
|
|
60
|
|
|
59
|
|
|
(1
|
)
|
|||||
FCX 6½% Senior Notes due 2020
|
552
|
|
|
23
|
|
|
575
|
|
|
562
|
|
|
(13
|
)
|
|||||
FM O&G LLC 6½% Senior Notes due 2020
|
65
|
|
|
3
|
|
|
68
|
|
|
66
|
|
|
(2
|
)
|
|||||
FCX 6.625% Senior Notes due 2021
|
228
|
|
|
12
|
|
|
240
|
|
|
234
|
|
|
(6
|
)
|
|||||
FM O&G LLC 6.625% Senior Notes due 2021
|
33
|
|
|
2
|
|
|
35
|
|
|
34
|
|
|
(1
|
)
|
|||||
FM O&G LLC 6.750% Senior Notes due 2022
|
45
|
|
|
2
|
|
|
47
|
|
|
46
|
|
|
(1
|
)
|
|||||
Total
|
$
|
1,234
|
|
|
$
|
49
|
|
|
$
|
1,283
|
|
|
$
|
1,257
|
|
|
$
|
(26
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Pension, postretirement, postemployment and other employment benefitsa
|
$
|
1,318
|
|
|
$
|
1,174
|
|
Cerro Verde royalty dispute
|
502
|
|
|
631
|
|
||
Provision for tax positions
|
255
|
|
|
230
|
|
||
Leasesb
|
204
|
|
|
—
|
|
||
Other
|
212
|
|
|
195
|
|
||
Total other liabilities
|
$
|
2,491
|
|
|
$
|
2,230
|
|
a.
|
Refer to Note 7 for current portion.
|
b.
|
Refer to Note 13 for further discussion.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Projected benefit obligation
|
$
|
2,522
|
|
|
$
|
2,177
|
|
Accumulated benefit obligation
|
2,361
|
|
|
2,048
|
|
||
Fair value of plan assets
|
1,615
|
|
|
1,373
|
|
|
FCX
|
|
PT-FI
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
2,230
|
|
|
$
|
2,343
|
|
|
$
|
220
|
|
|
$
|
240
|
|
Service cost
|
42
|
|
|
44
|
|
|
12
|
|
|
13
|
|
||||
Interest cost
|
95
|
|
|
84
|
|
|
17
|
|
|
14
|
|
||||
Actuarial losses (gains)
|
328
|
|
|
(124
|
)
|
|
(27
|
)
|
|
(19
|
)
|
||||
Plan amendments
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange losses (gains)
|
1
|
|
|
(1
|
)
|
|
8
|
|
|
(15
|
)
|
||||
Benefits and administrative expenses paid
|
(120
|
)
|
|
(120
|
)
|
|
(13
|
)
|
|
(13
|
)
|
||||
Benefit obligation at end of year
|
2,576
|
|
|
2,230
|
|
|
217
|
|
|
220
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
1,433
|
|
|
1,588
|
|
|
238
|
|
|
269
|
|
||||
Actual return on plan assets
|
289
|
|
|
(104
|
)
|
|
19
|
|
|
(5
|
)
|
||||
Employer contributionsa
|
74
|
|
|
70
|
|
|
—
|
|
|
4
|
|
||||
Foreign exchange gains (losses)
|
1
|
|
|
(1
|
)
|
|
10
|
|
|
(17
|
)
|
||||
Benefits and administrative expenses paid
|
(120
|
)
|
|
(120
|
)
|
|
(13
|
)
|
|
(13
|
)
|
||||
Fair value of plan assets at end of year
|
1,677
|
|
|
1,433
|
|
|
254
|
|
|
238
|
|
||||
Funded status
|
$
|
(899
|
)
|
|
$
|
(797
|
)
|
|
$
|
37
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
2,414
|
|
|
$
|
2,101
|
|
|
$
|
175
|
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average assumptions used to determine benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
3.40
|
%
|
|
4.40
|
%
|
|
7.25
|
%
|
|
8.25
|
%
|
||||
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification of funded status:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
37
|
|
|
$
|
18
|
|
Accounts payable and accrued liabilities
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
Other liabilities
|
(903
|
)
|
|
(800
|
)
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(899
|
)
|
|
$
|
(797
|
)
|
|
$
|
37
|
|
|
$
|
18
|
|
a.
|
Employer contributions for 2020 are expected to approximate $132 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2019, exchange rate of 13,832 Indonesia rupiah to one U.S. dollar).
|
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average assumptions:a
|
|
|
|
|
|
||||||
Discount rate
|
4.40
|
%
|
|
3.70
|
%
|
|
4.40
|
%
|
|||
Expected return on plan assets
|
6.50
|
%
|
|
6.50
|
%
|
|
7.00
|
%
|
|||
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
3.25
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
42
|
|
|
$
|
44
|
|
|
$
|
44
|
|
Interest cost
|
95
|
|
|
84
|
|
|
91
|
|
|||
Expected return on plan assets
|
(90
|
)
|
|
(101
|
)
|
|
(93
|
)
|
|||
Amortization of net actuarial losses
|
48
|
|
|
49
|
|
|
49
|
|
|||
Net periodic benefit cost
|
$
|
95
|
|
|
$
|
76
|
|
|
$
|
91
|
|
a.
|
The assumptions shown relate only to the FMC plans.
|
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Discount rate
|
8.25
|
%
|
|
6.75
|
%
|
|
8.25
|
%
|
|||
Expected return on plan assets
|
8.25
|
%
|
|
6.75
|
%
|
|
7.75
|
%
|
|||
Rate of compensation increase
|
4.00
|
%
|
|
4.00
|
%
|
|
8.00
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
20
|
|
Interest cost
|
17
|
|
|
14
|
|
|
23
|
|
|||
Expected return on plan assets
|
(17
|
)
|
|
(19
|
)
|
|
(21
|
)
|
|||
Amortization of prior service cost
|
1
|
|
|
2
|
|
|
2
|
|
|||
Amortization of net actuarial gains
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Curtailment loss
|
—
|
|
|
—
|
|
|
4
|
|
|||
Net periodic benefit cost
|
$
|
12
|
|
|
$
|
9
|
|
|
$
|
28
|
|
|
2019
|
|
2018
|
||||||||||||
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
||||||||
Net actuarial losses
|
$
|
710
|
|
|
$
|
604
|
|
|
$
|
659
|
|
|
$
|
539
|
|
Prior service costs
|
11
|
|
|
6
|
|
|
13
|
|
|
8
|
|
||||
|
$
|
721
|
|
|
$
|
610
|
|
|
$
|
672
|
|
|
$
|
547
|
|
|
Fair Value at December 31, 2019
|
||||||||||||||||||
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Global equity
|
$
|
425
|
|
|
$
|
425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
239
|
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. small-cap equity
|
67
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate property
|
58
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International small-cap equity
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. real estate securities
|
53
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term investments
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Fixed income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Government bonds
|
279
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|||||
Corporate bonds
|
256
|
|
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|||||
Global large-cap equity securities
|
107
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|||||
Private equity investments
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
64
|
|
|
—
|
|
|
14
|
|
|
50
|
|
|
—
|
|
|||||
Total investments
|
1,630
|
|
|
$
|
924
|
|
|
$
|
121
|
|
|
$
|
585
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and receivables
|
86
|
|
|
|
|
|
|
|
|
|
|||||||||
Payables
|
(39
|
)
|
|
|
|
|
|
|
|
|
|||||||||
Total pension plan net assets
|
$
|
1,677
|
|
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2018
|
||||||||||||||||||
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Global equity
|
$
|
291
|
|
|
$
|
291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
144
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Global fixed income securities
|
108
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Emerging markets equity
|
71
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate property
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. small-cap equity
|
54
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International small-cap equity
|
47
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. real estate securities
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term investments
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Fixed income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Government bonds
|
224
|
|
|
—
|
|
|
—
|
|
|
224
|
|
|
—
|
|
|||||
Corporate bonds
|
211
|
|
|
—
|
|
|
—
|
|
|
211
|
|
|
—
|
|
|||||
Global large-cap equity securities
|
94
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|||||
Private equity investments
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
61
|
|
|
—
|
|
|
16
|
|
|
45
|
|
|
—
|
|
|||||
Total investments
|
1,431
|
|
|
$
|
841
|
|
|
$
|
110
|
|
|
$
|
480
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and receivables
|
32
|
|
|
|
|
|
|
|
|
|
|||||||||
Payables
|
(30
|
)
|
|
|
|
|
|
|
|
|
|||||||||
Total pension plan net assets
|
$
|
1,433
|
|
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2019
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Government bonds
|
$
|
93
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stocks
|
80
|
|
|
80
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
190
|
|
|
$
|
190
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivablesa
|
65
|
|
|
|
|
|
|
|
|||||||
Payables
|
(1
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
254
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2018
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Government bonds
|
$
|
72
|
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stocks
|
72
|
|
|
72
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
164
|
|
|
$
|
164
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivablesa
|
75
|
|
|
|
|
|
|
|
|||||||
Payables
|
(1
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
238
|
|
|
|
|
|
|
|
a.
|
Cash consists primarily of short-term time deposits.
|
|
FCX
|
|
PT-FIa
|
||||
2020
|
$
|
120
|
|
|
$
|
12
|
|
2021
|
166
|
|
|
19
|
|
||
2022
|
127
|
|
|
22
|
|
||
2023
|
129
|
|
|
30
|
|
||
2024
|
131
|
|
|
32
|
|
||
2025 through 2029
|
679
|
|
|
155
|
|
a.
|
Based on a December 31, 2019, exchange rate of 13,832 Indonesia rupiah to one U.S. dollar.
|
|
Defined Benefit Plans
|
|
Unrealized Losses on Securities
|
|
Translation Adjustment
|
|
Total
|
||||||||
Balance at January 1, 2017
|
$
|
(554
|
)
|
|
$
|
(4
|
)
|
|
$
|
10
|
|
|
$
|
(548
|
)
|
Amounts arising during the perioda,b
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
|
||||
Amounts reclassifiedc
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||
Balance at December 31, 2017
|
(494
|
)
|
|
(3
|
)
|
|
10
|
|
|
(487
|
)
|
||||
Adoption of accounting standard for reclassification of income taxes
|
(79
|
)
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
||||
Amounts arising during the perioda,b
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
(84
|
)
|
||||
Amounts reclassifiedc
|
48
|
|
|
3
|
|
|
—
|
|
|
51
|
|
||||
Sale of interest in PT-FI (refer to Note 2)
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||
Balance at December 31, 2018
|
(615
|
)
|
|
—
|
|
|
10
|
|
|
(605
|
)
|
||||
Amounts arising during the perioda,b
|
(118
|
)
|
|
—
|
|
|
—
|
|
|
(118
|
)
|
||||
Amounts reclassifiedc
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
Balance at December 31, 2019
|
$
|
(686
|
)
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
(676
|
)
|
a.
|
Includes net actuarial gains (losses), net of noncontrolling interest, totaling $52 million for 2017, $(87) million for 2018 and $(111) million for 2019.
|
b.
|
Includes tax provision (benefit) totaling $45 million for 2017, $4 million for 2018 and $(8) million for 2019.
|
c.
|
Includes amortization primarily related to actuarial losses, net of taxes of $5 million for 2017, and none for 2018 and 2019.
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Selling, general and administrative expenses
|
$
|
48
|
|
|
$
|
62
|
|
|
$
|
55
|
|
|
Production and delivery
|
15
|
|
|
12
|
|
|
16
|
|
|
|||
Total stock-based compensation
|
63
|
|
|
74
|
|
|
71
|
|
|
|||
Tax benefit and noncontrolling interests’ sharea
|
(4
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
|||
Impact on net (loss) income
|
$
|
59
|
|
|
$
|
70
|
|
|
$
|
67
|
|
|
|
Number of
Options
|
|
Weighted-
Average
Exercise Price
Per Share
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|
|||||
Balance at January 1
|
46,806,364
|
|
|
$
|
27.40
|
|
|
|
|
|
|
||
Granted
|
6,425,500
|
|
|
11.88
|
|
|
|
|
|
|
|||
Exercised
|
(391,075
|
)
|
|
4.72
|
|
|
|
|
|
|
|||
Expired/Forfeited
|
(4,528,736
|
)
|
|
20.55
|
|
|
|
|
|
|
|||
Balance at December 31
|
48,312,053
|
|
|
26.16
|
|
|
4.4
|
|
$
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and exercisable at December 31
|
39,981,705
|
|
|
28.86
|
|
|
3.5
|
|
$
|
51
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Weighted-average assumptions used to value stock option awards:
|
|
|
|
|
|
|
||||||
Expected volatility
|
47.8
|
%
|
|
46.1
|
%
|
|
51.4
|
%
|
|
|||
Expected life of options (in years)
|
6.10
|
|
|
5.92
|
|
|
5.70
|
|
|
|||
Expected dividend rate
|
1.8
|
%
|
|
1.2
|
%
|
|
—
|
|
|
|||
Risk-free interest rate
|
2.5
|
%
|
|
2.6
|
%
|
|
2.0
|
%
|
|
|||
Weighted-average grant-date fair value (per option)
|
$
|
4.87
|
|
|
$
|
7.84
|
|
|
$
|
7.61
|
|
|
Intrinsic value of options exercised
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
5
|
|
|
Fair value of options vested
|
$
|
26
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
|
Number of Awards
|
|
Weighted-Average Grant-Date Fair Value Per Award
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
5,804,637
|
|
|
$
|
19.97
|
|
|
|
||
Granted
|
2,135,224
|
|
|
11.13
|
|
|
|
|||
Vested
|
(2,191,743
|
)
|
|
14.99
|
|
|
|
|||
Forfeited
|
(157,433
|
)
|
|
17.58
|
|
|
|
|||
Balance at December 31
|
5,590,685
|
|
|
18.61
|
|
|
$
|
73
|
|
|
Number of Awards
|
|
Weighted-Average Grant-Date Fair Value Per Award
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
1,486,866
|
|
|
$
|
15.61
|
|
|
|
||
Granted
|
819,000
|
|
|
11.88
|
|
|
|
|||
Vested
|
(698,817
|
)
|
|
13.70
|
|
|
|
|||
Forfeited
|
(24,162
|
)
|
|
14.43
|
|
|
|
|||
Balance at December 31
|
1,582,887
|
|
|
14.54
|
|
|
$
|
21
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
FCX shares tendered to pay the exercise price
|
|
|
|
|
|
|
||||||
and/or the minimum required taxesa
|
670,508
|
|
|
195,322
|
|
|
1,041,937
|
|
|
|||
Cash received from stock option exercises
|
$
|
2
|
|
|
$
|
8
|
|
|
$
|
5
|
|
|
Actual tax benefit realized for tax deductions
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
Amounts FCX paid for employee taxes
|
$
|
8
|
|
|
$
|
4
|
|
|
$
|
15
|
|
|
a.
|
Under terms of the related plans, upon exercise of stock options, vesting of stock-settled RSUs and payout of PSUs, employees may tender FCX shares to pay the exercise price and/or the minimum required taxes.
|
|
2019
|
|
2018
|
|
2017
|
||||||
U.S.
|
$
|
(287
|
)
|
|
$
|
390
|
|
|
$
|
20
|
|
Foreign
|
593
|
|
|
3,502
|
|
|
2,882
|
|
|||
Total
|
$
|
306
|
|
|
$
|
3,892
|
|
|
$
|
2,902
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Current income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
$
|
(23
|
)
|
a,b
|
$
|
46
|
|
a,c
|
$
|
(3
|
)
|
|
State
|
3
|
|
|
1
|
|
|
(10
|
)
|
|
|||
Foreign
|
(462
|
)
|
|
(1,445
|
)
|
c
|
(1,426
|
)
|
|
|||
Total current
|
(482
|
)
|
|
(1,398
|
)
|
|
(1,439
|
)
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
48
|
|
|
(106
|
)
|
|
64
|
|
|
|||
State
|
8
|
|
|
(8
|
)
|
|
10
|
|
|
|||
Foreign
|
(101
|
)
|
|
(102
|
)
|
|
89
|
|
|
|||
Total deferred
|
(45
|
)
|
|
(216
|
)
|
|
163
|
|
|
|||
|
|
|
|
|
|
|
||||||
Adjustments
|
12
|
|
|
504
|
|
d
|
393
|
|
e
|
|||
Operating loss carryforwards
|
5
|
|
|
119
|
|
|
—
|
|
|
|||
Provision for income taxes
|
$
|
(510
|
)
|
|
$
|
(991
|
)
|
|
$
|
(883
|
)
|
|
a.
|
As a result of the 2017 Tax Cuts and Jobs Act (the Act) guidance regarding a transition tax issued in 2018, FCX recognized a $29 million tax charge in 2018. Additional guidance released in 2019 resulted in a $29 million tax credit in 2019.
|
b.
|
Includes a tax charge of $53 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.
|
c.
|
In 2018, FCX completed its analysis of the Act and recognized benefits totaling $123 million ($76 million to the U.S. tax provision and $47 million to PT-FI’s tax provision) associated with alternative minimum tax (AMT) credit refunds.
|
d.
|
Represents net tax credits resulting from the reduction in PT-FI's statutory tax rates in accordance with its new special mining license (IUPK).
|
e.
|
Represents net tax credits associated with the Act, including $272 million for the reversal of valuation allowances associated with AMT credit refunds and $121 million for a decrease in corporate income tax rates.
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
U.S. federal statutory tax rate
|
$
|
(64
|
)
|
|
(21
|
)%
|
|
$
|
(817
|
)
|
|
(21
|
)%
|
|
$
|
(1,016
|
)
|
|
(35
|
)%
|
Valuation allowance
|
(149
|
)
|
a
|
(49
|
)
|
|
129
|
|
a
|
3
|
|
|
28
|
|
|
1
|
|
|||
PT-FI historical contested tax disputes
|
(145
|
)
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Percentage depletion
|
118
|
|
|
39
|
|
|
141
|
|
|
4
|
|
|
227
|
|
|
8
|
|
|||
Effect of foreign rates different than the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
federal statutory rate
|
(64
|
)
|
|
(21
|
)
|
|
(494
|
)
|
|
(13
|
)
|
|
17
|
|
|
1
|
|
|||
Withholding and other impacts on
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
foreign earnings
|
(55
|
)
|
|
(18
|
)
|
|
(232
|
)
|
|
(6
|
)
|
|
(216
|
)
|
|
(7
|
)
|
|||
Adjustment to deferred taxes
|
(49
|
)
|
b
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Non-deductible permanent differences
|
(47
|
)
|
|
(15
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|
(31
|
)
|
|
(1
|
)
|
|||
Uncertain tax positions
|
(47
|
)
|
|
(15
|
)
|
|
(7
|
)
|
|
—
|
|
|
(20
|
)
|
|
(1
|
)
|
|||
U.S. tax reform
|
29
|
|
c
|
9
|
|
|
94
|
|
c,d
|
2
|
|
|
393
|
|
e
|
14
|
|
|||
Foreign tax credit limitation
|
(16
|
)
|
|
(5
|
)
|
|
(195
|
)
|
|
(5
|
)
|
|
(159
|
)
|
|
(5
|
)
|
|||
State income taxes
|
16
|
|
|
6
|
|
|
7
|
|
|
1
|
|
|
(5
|
)
|
|
(1
|
)
|
|||
Cerro Verde royalty disputef
|
2
|
|
|
1
|
|
|
(55
|
)
|
|
(1
|
)
|
|
(129
|
)
|
|
(5
|
)
|
|||
Change in PT-FI tax rates
|
—
|
|
|
—
|
|
|
504
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|||
Timok exploration project sale
|
(15
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other items, net
|
(24
|
)
|
|
(9
|
)
|
|
(41
|
)
|
|
(1
|
)
|
|
28
|
|
|
1
|
|
|||
Provision for income taxes
|
$
|
(510
|
)
|
|
(166
|
)%
|
|
$
|
(991
|
)
|
|
(25
|
)%
|
|
$
|
(883
|
)
|
|
(30
|
)%
|
a.
|
Refer to “Valuation Allowance” below for discussion of changes.
|
b.
|
Represents net tax charges primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
|
c.
|
As a result of the Act guidance regarding a transition tax issued in 2018, FCX recognized a $29 million tax charge in 2018. Additional guidance released in 2019 resulted in a $29 million tax credit in 2019.
|
d.
|
In 2018, FCX completed its analysis of the Act and recognized benefits totaling $123 million ($76 million to the U.S. tax provisions and $47 million to PT-FI’s tax provision) associated with AMT credit refunds.
|
e.
|
Represents net tax credits associated with the Act, including $272 million for the reversal of valuation allowances associated with AMT credit refunds and $121 million for a decrease in corporate income tax rates.
|
f.
|
Refer to Note 12 for further discussion of the Cerro Verde royalty dispute.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Foreign tax credits
|
$
|
1,716
|
|
|
$
|
1,814
|
|
Accrued expenses
|
1,108
|
|
|
1,069
|
|
||
Net operating losses
|
2,249
|
|
|
2,235
|
|
||
Employee benefit plans
|
198
|
|
|
204
|
|
||
Other
|
267
|
|
|
270
|
|
||
Deferred tax assets
|
5,538
|
|
|
5,592
|
|
||
Valuation allowances
|
(4,576
|
)
|
|
(4,507
|
)
|
||
Net deferred tax assets
|
962
|
|
|
1,085
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant, equipment and mine development costs
|
(4,372
|
)
|
|
(4,405
|
)
|
||
Undistributed earnings
|
(639
|
)
|
|
(601
|
)
|
||
Other
|
(157
|
)
|
|
(107
|
)
|
||
Total deferred tax liabilities
|
(5,168
|
)
|
|
(5,113
|
)
|
||
Net deferred tax liabilities
|
$
|
(4,206
|
)
|
|
$
|
(4,028
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
$
|
404
|
|
|
$
|
390
|
|
|
$
|
101
|
|
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
73
|
|
|
100
|
|
|
302
|
|
|||
Current year tax positions
|
11
|
|
|
14
|
|
|
6
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(75
|
)
|
|
(86
|
)
|
|
(1
|
)
|
|||
Settlements with taxing authorities
|
(37
|
)
|
|
(9
|
)
|
|
(17
|
)
|
|||
Lapse of statute of limitations
|
—
|
|
|
(5
|
)
|
|
(1
|
)
|
|||
Balance at end of year
|
$
|
376
|
|
|
$
|
404
|
|
|
$
|
390
|
|
Jurisdiction
|
|
Years Subject to Examination
|
|
Additional Open Years
|
U.S. Federal
|
|
N/A
|
|
2014-2019
|
Indonesia
|
|
2008, 2011-2017
|
|
2018-2019
|
Peru
|
|
2013-2015
|
|
2016-2019
|
Chile
|
|
2017-2018
|
|
2019
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
$
|
1,511
|
|
|
$
|
1,439
|
|
|
$
|
1,221
|
|
Accretion expensea
|
102
|
|
|
100
|
|
|
84
|
|
|||
Additionsb
|
23
|
|
|
56
|
|
|
241
|
|
|||
Reductionsb
|
(1
|
)
|
|
—
|
|
|
(43
|
)
|
|||
Spending
|
(74
|
)
|
|
(84
|
)
|
|
(64
|
)
|
|||
Balance at end of year
|
1,561
|
|
|
1,511
|
|
|
1,439
|
|
|||
Less current portion
|
(106
|
)
|
|
(132
|
)
|
|
(134
|
)
|
|||
Long-term portion
|
$
|
1,455
|
|
|
$
|
1,379
|
|
|
$
|
1,305
|
|
a.
|
Represents accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis.
|
b.
|
Adjustments to environmental obligations that do not provide future economic benefits are charged to operating income. Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments.
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Balance at beginning of year
|
$
|
2,547
|
|
|
$
|
2,583
|
|
|
$
|
2,638
|
|
|
Liabilities incurred
|
20
|
|
|
1
|
|
|
14
|
|
|
|||
Settlements and revisions to cash flow estimates, net
|
(5
|
)
|
|
50
|
|
|
(112
|
)
|
|
|||
Accretion expense
|
118
|
|
|
110
|
|
|
124
|
|
|
|||
Dispositions
|
(5
|
)
|
|
(37
|
)
|
|
(10
|
)
|
|
|||
Spending
|
(170
|
)
|
|
(160
|
)
|
|
(71
|
)
|
|
|||
Balance at end of year
|
2,505
|
|
|
2,547
|
|
|
2,583
|
|
|
|||
Less current portion
|
(330
|
)
|
|
(317
|
)
|
|
(286
|
)
|
|
|||
Long-term portion
|
$
|
2,175
|
|
|
$
|
2,230
|
|
|
$
|
2,297
|
|
|
Royalty and related assessment charges:
|
|
2019
|
|
2018a
|
|
2017
|
|
Total
|
|
|||||||||
|
Production and delivery
|
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
203
|
|
b
|
$
|
223
|
|
|
|
Interest expense, net
|
|
10
|
|
c
|
370
|
|
|
145
|
|
|
525
|
|
|
||||
|
Other expense
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
||||
|
(Benefit from) provision for income taxes
|
|
(2
|
)
|
|
(35
|
)
|
|
7
|
|
d
|
(30
|
)
|
|
||||
|
Net loss attributable to noncontrolling interests
|
|
(7
|
)
|
|
(176
|
)
|
|
(169
|
)
|
|
(352
|
)
|
|
||||
|
|
|
$
|
7
|
|
|
$
|
195
|
|
|
$
|
186
|
|
|
$
|
388
|
|
|
a.
|
Amounts are net of gains from the refund of GEM for the period October 2012 through the year 2013.
|
b.
|
Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues).
|
c.
|
Excludes $58 million of interest costs associated with the installment payment programs.
|
d.
|
Includes tax charges of $136 million for disputed royalties ($69 million) and other related mining taxes ($67 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $129 million associated with disputed royalties and other related mining taxes for the period December 2006 through December 2013.
|
Tax Year
|
|
Tax Assessment
|
|
Penalty and Interest Assessment
|
|
Total
|
|
||||||
2003 to 2008
|
|
$
|
53
|
|
|
$
|
122
|
|
|
$
|
175
|
|
|
2009
|
|
56
|
|
|
52
|
|
|
108
|
|
|
|||
2010
|
|
63
|
|
|
107
|
|
|
170
|
|
|
|||
2011
|
|
49
|
|
|
65
|
|
|
114
|
|
|
|||
2012
|
|
52
|
|
|
11
|
|
|
63
|
|
|
|||
2014 to 2019
|
|
39
|
|
|
—
|
|
|
39
|
|
|
|||
|
|
$
|
312
|
|
|
$
|
357
|
|
|
$
|
669
|
|
|
Tax Year
|
|
Tax Assessment
|
|
Interest Assessment
|
|
Total
|
||||||
2005
|
|
$
|
73
|
|
|
$
|
35
|
|
|
$
|
108
|
|
2007
|
|
48
|
|
|
23
|
|
|
71
|
|
|||
2008, 2010 to 2011
|
|
55
|
|
|
31
|
|
|
86
|
|
|||
2012
|
|
124
|
|
|
—
|
|
|
124
|
|
|||
2013
|
|
154
|
|
|
74
|
|
|
228
|
|
|||
2014
|
|
139
|
|
|
6
|
|
|
145
|
|
|||
2015
|
|
159
|
|
|
—
|
|
|
159
|
|
|||
2016
|
|
257
|
|
|
113
|
|
|
370
|
|
|||
|
|
$
|
1,009
|
|
|
$
|
282
|
|
|
$
|
1,291
|
|
Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)
|
$
|
232
|
|
|
|
||
Short-term lease liabilities (included in accounts payable and accrued liabilities)
|
$
|
44
|
|
Long-term lease liabilities (included in other liabilities)
|
204
|
|
|
Total lease liabilities
|
$
|
248
|
|
|
|
|
||
Operating leases
|
|
$
|
55
|
|
Variable and short-term leases
|
|
79
|
|
|
Total operating lease costs
|
|
$
|
134
|
|
2020
|
$
|
57
|
|
2021
|
43
|
|
|
2022
|
36
|
|
|
2023
|
31
|
|
|
2024
|
29
|
|
|
Thereafter
|
121
|
|
|
Total payments
|
317
|
|
|
Less amount representing interest
|
(69
|
)
|
|
Present value of net minimum lease payments
|
248
|
|
|
Less current portion
|
(44
|
)
|
|
Long-term portion
|
$
|
204
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Copper futures and swap contracts:
|
|
|
|
|
|
||||||
Unrealized gains (losses):
|
|
|
|
|
|
||||||
Derivative financial instruments
|
$
|
15
|
|
|
$
|
(20
|
)
|
|
$
|
4
|
|
Hedged item – firm sales commitments
|
(15
|
)
|
|
20
|
|
|
(4
|
)
|
|||
|
|
|
|
|
|
||||||
Realized (losses) gains:
|
|
|
|
|
|
||||||
Matured derivative financial instruments
|
(8
|
)
|
|
(22
|
)
|
|
30
|
|
|
Open
|
|
Average Price
Per Unit
|
|
Maturities
|
|||||||
|
Positions
|
|
Contract
|
|
Market
|
|
Through
|
|||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
481
|
|
|
$
|
2.67
|
|
|
$
|
2.80
|
|
|
May 2020
|
Gold (thousands of ounces)
|
112
|
|
|
1,471
|
|
|
1,527
|
|
|
February 2020
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
129
|
|
|
2.64
|
|
|
2.80
|
|
|
April 2020
|
|
2019
|
|
2018
|
|
2017
|
||||||
Embedded derivatives in provisional sales contractsa
|
|
|
|
|
|
||||||
Copper
|
$
|
34
|
|
|
$
|
(310
|
)
|
|
$
|
489
|
|
Gold and other
|
20
|
|
|
(7
|
)
|
|
26
|
|
|||
Copper forward contractsb
|
(7
|
)
|
|
18
|
|
|
(15
|
)
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Commodity Derivative Assets:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
|
$
|
6
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional sales/purchase contracts
|
68
|
|
|
23
|
|
||
Total derivative assets
|
$
|
74
|
|
|
$
|
23
|
|
Commodity Derivative Liabilities:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
|
$
|
—
|
|
|
$
|
9
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional sales/purchase contracts
|
20
|
|
|
39
|
|
||
Copper forward contracts
|
1
|
|
|
—
|
|
||
Total derivative liabilities
|
$
|
21
|
|
|
$
|
48
|
|
|
|
Assets at December 31,
|
|
Liabilities at December 31,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
68
|
|
|
$
|
23
|
|
|
$
|
20
|
|
|
$
|
39
|
|
Copper derivatives
|
|
6
|
|
|
—
|
|
|
1
|
|
|
9
|
|
||||
|
|
74
|
|
|
23
|
|
|
21
|
|
|
48
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||
Copper derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
68
|
|
|
16
|
|
|
20
|
|
|
32
|
|
||||
Copper derivatives
|
|
6
|
|
|
—
|
|
|
1
|
|
|
9
|
|
||||
|
|
$
|
74
|
|
|
$
|
16
|
|
|
$
|
21
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
66
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
24
|
|
Other current assets
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
2
|
|
|
13
|
|
|
21
|
|
|
17
|
|
||||
|
|
$
|
74
|
|
|
$
|
16
|
|
|
$
|
21
|
|
|
$
|
41
|
|
|
|
December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Balance sheet components:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,020
|
|
|
$
|
4,217
|
|
Restricted cash and restricted cash equivalents included in:
|
|
|
|
|
||||
Other current assets
|
|
100
|
|
|
110
|
|
||
Other assets
|
|
158
|
|
|
128
|
|
||
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
|
|
$
|
2,278
|
|
|
$
|
4,455
|
|
|
At December 31, 2019
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
31
|
|
|
31
|
|
|
27
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
59
|
|
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
43
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
||||||
Government bonds and notes
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Corporate bonds
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||
Asset-backed securities
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
196
|
|
|
196
|
|
|
59
|
|
|
3
|
|
|
134
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional copper,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
gold and cobalt sales/purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
in a gross asset positionc
|
68
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
||||||
Copper futures and swap contractsc
|
6
|
|
|
6
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
||||||
Contingent consideration for the sale of onshore
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
California oil and gas propertiesa
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Total
|
85
|
|
|
85
|
|
|
—
|
|
|
5
|
|
|
80
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
122
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Embedded derivatives in provisional copper,
|
|
|
|
|
|
|
|
|
|
|
|
||||||
gold and cobalt sales/purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||
in a gross liability position
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
Copper forward contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt, including current portiond
|
9,826
|
|
|
10,239
|
|
|
—
|
|
|
—
|
|
|
10,239
|
|
|
—
|
|
|
At December 31, 2018
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
29
|
|
|
29
|
|
|
25
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
55
|
|
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
38
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||||
Government bonds and notes
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Corporate bonds
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||
Asset-backed securities
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
181
|
|
|
181
|
|
|
55
|
|
|
5
|
|
|
121
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional copper,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
gold and cobalt sales/purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
in a gross asset positionc
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||
Contingent consideration for the sales of TFHL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and onshore California oil and gas propertiesa
|
73
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
||||||
Total
|
96
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deepwater GOM oil and gas propertiesa
|
143
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives:c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional copper,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
gold and cobalt sales/purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
in a gross liability position
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
||||||
Copper futures and swap contracts
|
9
|
|
|
9
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
—
|
|
||||||
Total
|
48
|
|
|
48
|
|
|
—
|
|
|
7
|
|
|
41
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portiond
|
11,141
|
|
|
10,238
|
|
|
—
|
|
|
—
|
|
|
10,238
|
|
|
—
|
|
a.
|
Current portion included in other current assets and long-term portion included in other assets.
|
b.
|
Excludes time deposits (which approximated fair value) included in (i) other current assets of $100 million at December 31, 2019, and $109 million at December 31, 2018, and (ii) other assets of $157 million at December 31, 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 (refer to Note 13 for further discussion) and PT-FI’s closure and reclamation guarantees (refer to Note 12 for further discussion).
|
c.
|
Refer to Note 14 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.
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Balance at beginning of year
|
$
|
127
|
|
|
$
|
134
|
|
|
$
|
135
|
|
|
Net unrealized gains (losses) related to assets still held at the end of the year
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
|||
Settlements
|
(21
|
)
|
|
(7
|
)
|
|
—
|
|
|
|||
Balance at end of year
|
$
|
108
|
|
|
$
|
127
|
|
|
$
|
134
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Copper:
|
|
|
|
|
|
||||||
Concentrate
|
$
|
4,566
|
|
|
$
|
6,180
|
|
|
$
|
5,604
|
|
Cathode
|
3,656
|
|
|
4,366
|
|
|
3,759
|
|
|||
Rod and other refined copper products
|
2,110
|
|
|
2,396
|
|
|
2,387
|
|
|||
Purchased coppera
|
1,060
|
|
|
1,053
|
|
|
789
|
|
|||
Gold
|
1,620
|
|
|
3,231
|
|
|
2,126
|
|
|||
Molybdenum
|
1,169
|
|
|
1,190
|
|
|
896
|
|
|||
Otherb
|
905
|
|
|
1,490
|
|
|
1,159
|
|
|||
Adjustments to revenues:
|
|
|
|
|
|
||||||
Treatment charges
|
(404
|
)
|
|
(535
|
)
|
|
(536
|
)
|
|||
Royalty expensec
|
(113
|
)
|
|
(246
|
)
|
|
(181
|
)
|
|||
Export dutiesd
|
(221
|
)
|
|
(180
|
)
|
|
(115
|
)
|
|||
Revenues from contracts with customers
|
14,348
|
|
|
18,945
|
|
|
15,888
|
|
|||
Embedded derivativese
|
54
|
|
|
(317
|
)
|
|
515
|
|
|||
Total consolidated revenues
|
$
|
14,402
|
|
|
$
|
18,628
|
|
|
$
|
16,403
|
|
a.
|
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
|
b.
|
Primarily includes revenues associated with cobalt and silver.
|
c.
|
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
|
d.
|
Reflects PT-FI export duties. The year 2019 includes charges totaling $155 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
|
e.
|
Refer to Note 14 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Long-lived assets:a
|
|
|
|
||||
Indonesia
|
$
|
14,971
|
|
|
$
|
14,025
|
|
U.S.
|
8,834
|
|
|
8,476
|
|
||
Peru
|
7,215
|
|
|
7,313
|
|
||
Chile
|
1,084
|
|
|
1,077
|
|
||
Other
|
384
|
|
|
458
|
|
||
Total
|
$
|
32,488
|
|
|
$
|
31,349
|
|
a.
|
Excludes deferred tax assets and intangible assets.
|
a.
|
Revenues are attributed to countries based on the location of the customer.
|
|
North America Copper Mines
|
|
South America Mining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Corporate,
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
Other
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
Indonesia
|
|
Molybdenum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
FCX
|
|
||||||||||||||||||||||||||
|
Morenci
|
|
Bagdad
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
|
||||||||||||||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
224
|
|
|
$
|
367
|
|
|
$
|
2,576
|
|
|
$
|
499
|
|
|
$
|
3,075
|
|
|
$
|
2,713
|
|
a
|
$
|
—
|
|
|
$
|
4,457
|
|
|
$
|
2,063
|
|
|
$
|
1,727
|
|
b
|
$
|
14,402
|
|
|
Intersegment
|
1,864
|
|
|
763
|
|
|
1,392
|
|
|
4,019
|
|
|
313
|
|
|
—
|
|
|
313
|
|
|
58
|
|
|
344
|
|
|
26
|
|
|
5
|
|
|
(4,765
|
)
|
|
—
|
|
|
|||||||||||||
Production and delivery
|
1,376
|
|
|
512
|
|
|
1,431
|
|
|
3,319
|
|
|
1,852
|
|
|
474
|
|
|
2,326
|
|
|
2,055
|
|
c
|
299
|
|
|
4,475
|
|
|
1,971
|
|
|
(2,931
|
)
|
|
11,514
|
|
|
|||||||||||||
Depreciation, depletion and amortization
|
171
|
|
|
46
|
|
|
132
|
|
|
349
|
|
|
406
|
|
|
68
|
|
|
474
|
|
|
406
|
|
|
62
|
|
|
9
|
|
|
28
|
|
|
84
|
|
|
1,412
|
|
|
|||||||||||||
Metals inventory adjustments
|
1
|
|
|
—
|
|
|
29
|
|
|
30
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
179
|
|
|
|||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
125
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
257
|
|
|
414
|
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|
104
|
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
105
|
|
|
|||||||||||||
Net gain on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(417
|
)
|
d
|
(417
|
)
|
|
|||||||||||||
Operating income (loss)
|
456
|
|
|
204
|
|
|
21
|
|
|
681
|
|
|
621
|
|
|
(43
|
)
|
|
578
|
|
|
180
|
|
|
(67
|
)
|
|
(1
|
)
|
|
49
|
|
|
(329
|
)
|
|
1,091
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|
82
|
|
c
|
—
|
|
|
—
|
|
|
22
|
|
|
398
|
|
|
620
|
|
|
|||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
(11
|
)
|
|
239
|
|
|
167
|
|
c
|
—
|
|
|
—
|
|
|
5
|
|
|
99
|
|
e
|
510
|
|
|
|||||||||||||
Total assets at December 31, 2019
|
2,880
|
|
|
783
|
|
|
4,326
|
|
|
7,989
|
|
|
8,612
|
|
|
1,676
|
|
|
10,288
|
|
|
16,485
|
|
|
1,798
|
|
|
193
|
|
|
761
|
|
|
3,295
|
|
|
40,809
|
|
|
|||||||||||||
Capital expenditures
|
231
|
|
|
150
|
|
|
496
|
|
|
877
|
|
|
232
|
|
|
24
|
|
|
256
|
|
|
1,369
|
|
|
19
|
|
|
5
|
|
|
34
|
|
|
92
|
|
|
2,652
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Includes charges totaling $155 million associated with an unfavorable Indonesia Supreme Court ruling related to PT-FI export duties. Refer to Note 12 for further discussion.
|
b.
|
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
|
c.
|
Includes net charges totaling $28 million in production and delivery costs for an adjustment to the settlement of the historical surface water tax matters with the local regional tax authority in Papua, Indonesia, and $78 million in interest expense and $103 million of tax charges in provision for income taxes associated with PT-FI’s historical contested tax disputes.
|
d.
|
Includes net gains totaling $343 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $59 million for the sale of a portion of Freeport Cobalt. Refer to Note 2 for further discussion.
|
e.
|
Includes tax charges totaling $53 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $49 million primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
|
|
North America Copper Mines
|
|
South America Mining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Corporate,
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
Other
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
Indonesia
|
|
Molybdenum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
FCX
|
|
||||||||||||||||||||||||||
|
Morenci
|
|
Bagdad
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
|
||||||||||||||||||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
144
|
|
|
$
|
2,709
|
|
|
$
|
594
|
|
|
$
|
3,303
|
|
|
$
|
5,446
|
|
|
$
|
—
|
|
|
$
|
5,103
|
|
|
$
|
2,299
|
|
|
$
|
2,333
|
|
a
|
$
|
18,628
|
|
|
Intersegment
|
2,051
|
|
|
710
|
|
|
1,789
|
|
|
4,550
|
|
|
352
|
|
|
—
|
|
|
352
|
|
|
113
|
|
|
410
|
|
|
31
|
|
|
3
|
|
|
(5,459
|
)
|
|
—
|
|
|
|||||||||||||
Production and delivery
|
1,183
|
|
|
483
|
|
|
1,458
|
|
|
3,124
|
|
|
1,887
|
|
b,c
|
478
|
|
|
2,365
|
|
|
1,864
|
|
d
|
289
|
|
|
5,117
|
|
|
2,218
|
|
|
(3,290
|
)
|
|
11,687
|
|
|
|||||||||||||
Depreciation, depletion and amortization
|
176
|
|
|
41
|
|
|
143
|
|
|
360
|
|
|
456
|
|
|
90
|
|
|
546
|
|
|
606
|
|
|
79
|
|
|
11
|
|
|
27
|
|
|
125
|
|
e
|
1,754
|
|
|
|||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|||||||||||||
Selling, general and administrative expenses
|
3
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
284
|
|
|
443
|
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|
105
|
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
89
|
|
|
|||||||||||||
Net gain on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(208
|
)
|
f
|
(208
|
)
|
|
|||||||||||||
Operating income (loss)
|
779
|
|
|
185
|
|
|
231
|
|
|
1,195
|
|
|
709
|
|
|
26
|
|
|
735
|
|
|
2,966
|
|
|
42
|
|
|
6
|
|
|
36
|
|
|
(226
|
)
|
|
4,754
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
429
|
|
b
|
—
|
|
|
429
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
486
|
|
|
945
|
|
|
|||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253
|
|
b
|
15
|
|
|
268
|
|
|
755
|
|
g
|
—
|
|
|
—
|
|
|
1
|
|
|
(33
|
)
|
h
|
991
|
|
|
|||||||||||||
Total assets at December 31, 2018
|
2,922
|
|
|
671
|
|
|
3,937
|
|
|
7,530
|
|
|
8,524
|
|
|
1,707
|
|
|
10,231
|
|
|
15,646
|
|
|
1,796
|
|
|
233
|
|
|
773
|
|
|
6,007
|
|
|
42,216
|
|
|
|||||||||||||
Capital expenditures
|
216
|
|
|
39
|
|
|
346
|
|
|
601
|
|
|
220
|
|
|
17
|
|
|
237
|
|
|
1,001
|
|
|
9
|
|
|
5
|
|
|
16
|
|
|
102
|
|
|
1,971
|
|
|
a.
|
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
|
b.
|
Includes net charges totaling $14 million in production and delivery costs, $370 million in interest expense and $35 million of net tax benefits in provision for income taxes associated with disputed royalties for prior years.
|
c.
|
Includes charges totaling $69 million associated with Cerro Verde’s three-year collective labor agreement.
|
d.
|
Includes net charges of $223 million, primarily associated with surface water tax disputes with the local regional tax authority in Papua, Indonesia, assessments for prior period permit fees with Indonesia’s MOEF, disputed payroll withholding taxes for prior years and other tax settlements, and to write-off certain previously capitalized project costs for the new smelter in Indonesia, partially offset by inventory adjustments.
|
e.
|
Includes $31 million of depreciation expense at Freeport Cobalt from December 2016 through December 2017 that was suspended while it was classified as held for sale.
|
f.
|
Includes net gains totaling $97 million associated with a favorable adjustment to the estimated fair value less costs to sell for Freeport Cobalt and fair value adjustments of $31 million associated with potential contingent consideration related to the 2016 sale of onshore California oil and gas properties.
|
g.
|
Includes tax credits totaling $549 million related to the change in PT-FI’s tax rates in accordance with its IUPK ($482 million), U.S, tax reform ($47 million) and adjustments to PT-FI’s historical tax positions ($20 million).
|
h.
|
Includes net tax credits totaling $76 million, primarily related to the Act and $22 million related to the change in PT-FI’s tax rates in accordance with its IUPK. Refer to Note 11 for further discussion.
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America Mining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Corporate,
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
|
Other
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
Indonesia
|
|
Molybdenum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
FCX
|
|
||||||||||||||||||||||||||
|
Morenci
|
|
Bagdad
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Mining
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Total
|
|
||||||||||||||||||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
228
|
|
|
$
|
22
|
|
|
$
|
158
|
|
|
$
|
408
|
|
|
$
|
2,811
|
|
|
$
|
498
|
|
|
$
|
3,309
|
|
|
$
|
4,445
|
|
|
$
|
—
|
|
|
$
|
4,456
|
|
|
$
|
2,031
|
|
|
$
|
1,754
|
|
a
|
$
|
16,403
|
|
|
Intersegment
|
1,865
|
|
|
528
|
|
|
1,764
|
|
|
4,157
|
|
|
385
|
|
|
—
|
|
|
385
|
|
|
—
|
|
|
268
|
|
|
26
|
|
|
1
|
|
|
(4,837
|
)
|
|
—
|
|
|
|||||||||||||
Production and delivery
|
1,043
|
|
|
367
|
|
|
1,333
|
|
|
2,743
|
|
|
1,878
|
|
b
|
366
|
|
|
2,244
|
|
|
1,735
|
|
c
|
226
|
|
|
4,467
|
|
|
1,966
|
|
|
(3,123
|
)
|
|
10,258
|
|
|
|||||||||||||
Depreciation, depletion and amortization
|
178
|
|
|
40
|
|
|
207
|
|
|
425
|
|
|
441
|
|
|
84
|
|
|
525
|
|
|
556
|
|
|
76
|
|
|
10
|
|
|
28
|
|
|
94
|
|
|
1,714
|
|
|
|||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
8
|
|
|
|||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
126
|
|
c
|
—
|
|
|
—
|
|
|
18
|
|
|
320
|
|
|
477
|
|
|
|||||||||||||
Mining exploration and research expenses
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
93
|
|
|
|||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244
|
|
|
244
|
|
|
|||||||||||||
Net gain on sales of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|
(81
|
)
|
|
|||||||||||||
Operating income (loss)
|
870
|
|
|
143
|
|
|
376
|
|
|
1,389
|
|
|
868
|
|
|
48
|
|
|
916
|
|
|
2,028
|
|
|
(35
|
)
|
|
5
|
|
|
20
|
|
|
(633
|
)
|
|
3,690
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
212
|
|
b
|
—
|
|
|
212
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
563
|
|
|
801
|
|
|
|||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
436
|
|
b
|
10
|
|
|
446
|
|
|
869
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(437
|
)
|
d
|
883
|
|
|
|||||||||||||
Total assets at December 31, 2017
|
2,861
|
|
|
650
|
|
|
3,591
|
|
|
7,102
|
|
|
8,878
|
|
|
1,702
|
|
|
10,580
|
|
|
10,911
|
|
|
1,858
|
|
|
277
|
|
|
822
|
|
|
5,752
|
|
|
37,302
|
|
|
|||||||||||||
Capital expenditures
|
114
|
|
|
12
|
|
|
41
|
|
|
167
|
|
|
103
|
|
|
12
|
|
|
115
|
|
|
875
|
|
|
5
|
|
|
4
|
|
|
41
|
|
|
203
|
|
|
1,410
|
|
|
a.
|
Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
|
b.
|
Includes net charges totaling $203 million in production and delivery costs, $145 million in interest expense, and $7 million of net tax charges associated with disputed royalties for prior years.
|
c.
|
Includes net charges at PT-FI associated with workforce reductions totaling $120 million in production and delivery costs and $5 million in selling, general and administrative expenses.
|
d.
|
Includes net tax credits of $438 million primarily related to the Act. Refer to Note 11 for further discussion.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
$
|
154
|
|
|
$
|
657
|
|
|
$
|
7,778
|
|
|
$
|
(674
|
)
|
|
$
|
7,915
|
|
Property, plant, equipment and mine development costs, net
|
16
|
|
|
1
|
|
|
29,555
|
|
|
12
|
|
|
29,584
|
|
|||||
Investments in consolidated subsidiaries
|
17,027
|
|
|
—
|
|
|
—
|
|
|
(17,027
|
)
|
|
—
|
|
|||||
Other assets
|
1,604
|
|
|
21
|
|
|
3,137
|
|
|
(1,452
|
)
|
|
3,310
|
|
|||||
Total assets
|
$
|
18,801
|
|
|
$
|
679
|
|
|
$
|
40,470
|
|
|
$
|
(19,141
|
)
|
|
$
|
40,809
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
323
|
|
|
$
|
42
|
|
|
$
|
3,550
|
|
|
$
|
(706
|
)
|
|
$
|
3,209
|
|
Long-term debt, less current portion
|
8,602
|
|
|
7,328
|
|
|
6,292
|
|
|
(12,401
|
)
|
|
9,821
|
|
|||||
Deferred income taxes
|
468
|
|
a
|
—
|
|
|
3,742
|
|
|
—
|
|
|
4,210
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
224
|
|
|
3,406
|
|
|
—
|
|
|
3,630
|
|
|||||
Investments in consolidated subsidiary
|
—
|
|
|
652
|
|
|
10,906
|
|
|
(11,558
|
)
|
|
—
|
|
|||||
Other liabilities
|
110
|
|
|
3,340
|
|
|
2,535
|
|
|
(3,494
|
)
|
|
2,491
|
|
|||||
Total liabilities
|
9,503
|
|
|
11,586
|
|
|
30,431
|
|
|
(28,159
|
)
|
|
23,361
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity
|
9,298
|
|
|
(10,907
|
)
|
|
7,343
|
|
|
3,564
|
|
|
9,298
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
2,696
|
|
|
5,454
|
|
|
8,150
|
|
|||||
Total equity
|
9,298
|
|
|
(10,907
|
)
|
|
10,039
|
|
|
9,018
|
|
|
17,448
|
|
|||||
Total liabilities and equity
|
$
|
18,801
|
|
|
$
|
679
|
|
|
$
|
40,470
|
|
|
$
|
(19,141
|
)
|
|
$
|
40,809
|
|
a.
|
All U.S.-related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
$
|
309
|
|
|
$
|
620
|
|
|
$
|
10,120
|
|
|
$
|
(585
|
)
|
|
$
|
10,464
|
|
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
|
|
|
3,474
|
|
|
(635
|
)
|
|
3,742
|
|
|||||
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 subsidiary
|
—
|
|
|
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.
|
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
14,362
|
|
|
$
|
—
|
|
|
$
|
14,402
|
|
Total costs and expenses
|
25
|
|
|
54
|
|
|
13,244
|
|
|
(12
|
)
|
|
13,311
|
|
|||||
Operating (loss) income
|
(25
|
)
|
|
(14
|
)
|
|
1,118
|
|
|
12
|
|
|
1,091
|
|
|||||
Interest expense, net
|
(337
|
)
|
|
(322
|
)
|
|
(494
|
)
|
|
533
|
|
|
(620
|
)
|
|||||
Net loss on early extinguishment of debt
|
(26
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(27
|
)
|
|||||
Other expense, net
|
(22
|
)
|
|
—
|
|
|
(95
|
)
|
|
(21
|
)
|
|
(138
|
)
|
|||||
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
|
(410
|
)
|
|
(336
|
)
|
|
528
|
|
|
524
|
|
|
306
|
|
|||||
Benefit from (provision for) income taxes
|
58
|
|
|
76
|
|
|
(642
|
)
|
|
(2
|
)
|
|
(510
|
)
|
|||||
Equity in affiliated companies’ net earnings (losses)
|
113
|
|
|
(73
|
)
|
|
(321
|
)
|
|
293
|
|
|
12
|
|
|||||
Net (loss) income from continuing operations
|
(239
|
)
|
|
(333
|
)
|
|
(435
|
)
|
|
815
|
|
|
(192
|
)
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Net (loss) income
|
(239
|
)
|
|
(333
|
)
|
|
(432
|
)
|
|
815
|
|
|
(189
|
)
|
|||||
Net (income) loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
36
|
|
|
(50
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(239
|
)
|
|
$
|
(333
|
)
|
|
$
|
(518
|
)
|
|
$
|
851
|
|
|
$
|
(239
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive (loss) income
|
(71
|
)
|
|
—
|
|
|
(71
|
)
|
|
71
|
|
|
(71
|
)
|
|||||
Total comprehensive (loss) income
|
$
|
(310
|
)
|
|
$
|
(333
|
)
|
|
$
|
(589
|
)
|
|
$
|
922
|
|
|
$
|
(310
|
)
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
18,569
|
|
|
$
|
—
|
|
|
$
|
18,628
|
|
Total costs and expenses
|
28
|
|
|
58
|
|
|
13,798
|
|
|
(10
|
)
|
|
13,874
|
|
|||||
Operating (loss) income
|
(28
|
)
|
|
1
|
|
|
4,771
|
|
|
10
|
|
|
4,754
|
|
|||||
Interest expense, net
|
(388
|
)
|
|
(301
|
)
|
|
(734
|
)
|
|
478
|
|
|
(945
|
)
|
|||||
Net gain (loss) on early extinguishment of debt
|
7
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
7
|
|
|||||
Other income (expense), net
|
477
|
|
|
—
|
|
|
77
|
|
|
(478
|
)
|
|
76
|
|
|||||
Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
|
68
|
|
|
(298
|
)
|
|
4,112
|
|
|
10
|
|
|
3,892
|
|
|||||
(Provision for) benefit from income taxes
|
(176
|
)
|
|
61
|
|
|
(874
|
)
|
|
(2
|
)
|
|
(991
|
)
|
|||||
Equity in affiliated companies’ net earnings (losses)
|
2,710
|
|
|
10
|
|
|
(219
|
)
|
|
(2,493
|
)
|
|
8
|
|
|||||
Net income (loss) from continuing operations
|
2,602
|
|
|
(227
|
)
|
|
3,019
|
|
|
(2,485
|
)
|
|
2,909
|
|
|||||
Net loss from discontinued operations
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|||||
Net income (loss)
|
2,602
|
|
|
(227
|
)
|
|
3,004
|
|
|
(2,485
|
)
|
|
2,894
|
|
|||||
Net income attributable to noncontrolling interests:
|
—
|
|
|
—
|
|
|
(68
|
)
|
|
(224
|
)
|
|
(292
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
2,602
|
|
|
$
|
(227
|
)
|
|
$
|
2,936
|
|
|
$
|
(2,709
|
)
|
|
$
|
2,602
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive (loss) income
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
33
|
|
|
(33
|
)
|
|||||
Total comprehensive income (loss)
|
$
|
2,569
|
|
|
$
|
(227
|
)
|
|
$
|
2,903
|
|
|
$
|
(2,676
|
)
|
|
$
|
2,569
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
16,351
|
|
|
$
|
—
|
|
|
$
|
16,403
|
|
Total costs and expenses
|
39
|
|
|
78
|
|
|
12,586
|
|
|
10
|
|
|
12,713
|
|
|||||
Operating (loss) income
|
(39
|
)
|
|
(26
|
)
|
|
3,765
|
|
|
(10
|
)
|
|
3,690
|
|
|||||
Interest expense, net
|
(467
|
)
|
|
(227
|
)
|
|
(455
|
)
|
|
348
|
|
|
(801
|
)
|
|||||
Net gain (loss) on early extinguishment of debt
|
22
|
|
|
5
|
|
|
(6
|
)
|
|
—
|
|
|
21
|
|
|||||
Other income (expense), net
|
336
|
|
|
—
|
|
|
4
|
|
|
(348
|
)
|
|
(8
|
)
|
|||||
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
|
(148
|
)
|
|
(248
|
)
|
|
3,308
|
|
|
(10
|
)
|
|
2,902
|
|
|||||
Benefit from (provision for) income taxes
|
220
|
|
|
(108
|
)
|
|
(998
|
)
|
|
3
|
|
|
(883
|
)
|
|||||
Equity in affiliated companies’ net earnings (losses)
|
1,745
|
|
|
10
|
|
|
(337
|
)
|
|
(1,408
|
)
|
|
10
|
|
|||||
Net income (loss) from continuing operations
|
1,817
|
|
|
(346
|
)
|
|
1,973
|
|
|
(1,415
|
)
|
|
2,029
|
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
|
|||||
Net income (loss)
|
1,817
|
|
|
(346
|
)
|
|
2,039
|
|
|
(1,415
|
)
|
|
2,095
|
|
|||||
Net income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(124
|
)
|
|
(274
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
1,817
|
|
|
$
|
(346
|
)
|
|
$
|
1,885
|
|
|
$
|
(1,539
|
)
|
|
$
|
1,817
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
61
|
|
|
—
|
|
|
61
|
|
|
(61
|
)
|
|
61
|
|
|||||
Total comprehensive income (loss)
|
$
|
1,878
|
|
|
$
|
(346
|
)
|
|
$
|
1,946
|
|
|
$
|
(1,600
|
)
|
|
$
|
1,878
|
|
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
443
|
|
|
$
|
(444
|
)
|
|
$
|
1,483
|
|
|
$
|
—
|
|
|
$
|
1,482
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(4
|
)
|
|
(2,648
|
)
|
|
—
|
|
|
(2,652
|
)
|
|||||
Intercompany loans
|
(1,299
|
)
|
|
—
|
|
|
—
|
|
|
1,299
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
2,177
|
|
|
—
|
|
|
96
|
|
|
(2,275
|
)
|
|
(2
|
)
|
|||||
Asset sales and other, net
|
(1
|
)
|
|
104
|
|
|
448
|
|
|
—
|
|
|
551
|
|
|||||
Net cash provided by (used in) investing activities
|
877
|
|
|
100
|
|
|
(2,104
|
)
|
|
(976
|
)
|
|
(2,103
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
1,200
|
|
|
—
|
|
|
679
|
|
|
—
|
|
|
1,879
|
|
|||||
Repayments of debt
|
(2,202
|
)
|
|
—
|
|
|
(995
|
)
|
|
—
|
|
|
(3,197
|
)
|
|||||
Intercompany loans
|
—
|
|
|
344
|
|
|
955
|
|
|
(1,299
|
)
|
|
—
|
|
|||||
Cash dividends paid and distributions received, net
|
(291
|
)
|
|
—
|
|
|
(2,172
|
)
|
|
2,255
|
|
|
(208
|
)
|
|||||
Other, net
|
(27
|
)
|
|
—
|
|
|
(23
|
)
|
|
20
|
|
|
(30
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(1,320
|
)
|
|
344
|
|
|
(1,556
|
)
|
|
976
|
|
|
(1,556
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
—
|
|
|
—
|
|
|
(2,177
|
)
|
|
—
|
|
|
(2,177
|
)
|
|||||
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 year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,278
|
|
|
$
|
—
|
|
|
$
|
2,278
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
(40
|
)
|
|
$
|
(487
|
)
|
|
$
|
4,390
|
|
|
$
|
—
|
|
|
$
|
3,863
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(2
|
)
|
|
—
|
|
|
(1,969
|
)
|
|
—
|
|
|
(1,971
|
)
|
|||||
Acquisition of PT Rio Tinto Indonesia
|
—
|
|
|
—
|
|
|
(3,500
|
)
|
|
—
|
|
|
(3,500
|
)
|
|||||
Intercompany loans
|
(832
|
)
|
|
—
|
|
|
—
|
|
|
832
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
2,475
|
|
|
—
|
|
|
84
|
|
|
(2,559
|
)
|
|
—
|
|
|||||
Asset sales and other, net
|
460
|
|
|
6
|
|
|
(13
|
)
|
|
—
|
|
|
453
|
|
|||||
Net cash provided by (used in) investing activities
|
2,101
|
|
|
6
|
|
|
(5,398
|
)
|
|
(1,727
|
)
|
|
(5,018
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
—
|
|
|
—
|
|
|
632
|
|
|
—
|
|
|
632
|
|
|||||
Repayments of debt
|
(1,826
|
)
|
|
(53
|
)
|
|
(838
|
)
|
|
—
|
|
|
(2,717
|
)
|
|||||
Intercompany loans
|
—
|
|
|
526
|
|
|
306
|
|
|
(832
|
)
|
|
—
|
|
|||||
Proceeds from sale of PT Freeport Indonesia shares
|
—
|
|
|
—
|
|
|
3,710
|
|
|
(210
|
)
|
|
3,500
|
|
|||||
Cash dividends paid and distributions received, net
|
(217
|
)
|
|
—
|
|
|
(3,032
|
)
|
|
2,753
|
|
|
(496
|
)
|
|||||
Other, net
|
(18
|
)
|
|
—
|
|
|
(17
|
)
|
|
16
|
|
|
(19
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(2,061
|
)
|
|
473
|
|
|
761
|
|
|
1,727
|
|
|
900
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
|
—
|
|
|
(8
|
)
|
|
(247
|
)
|
|
—
|
|
|
(255
|
)
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
—
|
|
|
8
|
|
|
4,702
|
|
|
—
|
|
|
4,710
|
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,455
|
|
|
$
|
—
|
|
|
$
|
4,455
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
(156
|
)
|
|
$
|
(467
|
)
|
|
$
|
5,289
|
|
|
$
|
—
|
|
|
$
|
4,666
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(25
|
)
|
|
(1,385
|
)
|
|
—
|
|
|
(1,410
|
)
|
|||||
Intercompany loans
|
(777
|
)
|
|
—
|
|
|
—
|
|
|
777
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
3,226
|
|
|
(15
|
)
|
|
120
|
|
|
(3,331
|
)
|
|
—
|
|
|||||
Asset sales and other, net
|
—
|
|
|
57
|
|
|
32
|
|
|
—
|
|
|
89
|
|
|||||
Net cash provided by (used in) investing activities
|
2,449
|
|
|
17
|
|
|
(1,233
|
)
|
|
(2,554
|
)
|
|
(1,321
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
—
|
|
|
—
|
|
|
955
|
|
|
—
|
|
|
955
|
|
|||||
Repayments of debt
|
(2,281
|
)
|
|
(205
|
)
|
|
(1,326
|
)
|
|
—
|
|
|
(3,812
|
)
|
|||||
Intercompany loans
|
—
|
|
|
663
|
|
|
114
|
|
|
(777
|
)
|
|
—
|
|
|||||
Cash dividends paid and distributions received, net
|
(2
|
)
|
|
—
|
|
|
(3,440
|
)
|
|
3,266
|
|
|
(176
|
)
|
|||||
Other, net
|
(10
|
)
|
|
(10
|
)
|
|
(67
|
)
|
|
65
|
|
|
(22
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(2,293
|
)
|
|
448
|
|
|
(3,764
|
)
|
|
2,554
|
|
|
(3,055
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
|
—
|
|
|
(2
|
)
|
|
292
|
|
|
—
|
|
|
290
|
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
—
|
|
|
10
|
|
|
4,410
|
|
|
—
|
|
|
4,420
|
|
|||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
4,702
|
|
|
$
|
—
|
|
|
$
|
4,710
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Year
|
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
3,792
|
|
|
$
|
3,546
|
|
|
$
|
3,153
|
|
|
$
|
3,911
|
|
|
$
|
14,402
|
|
|
Operating income (loss)
|
321
|
|
|
33
|
|
|
(38
|
)
|
|
775
|
|
|
1,091
|
|
|
|||||
Net income (loss) from continuing operations
|
75
|
|
|
(74
|
)
|
|
(235
|
)
|
|
42
|
|
|
(192
|
)
|
|
|||||
Net income from discontinued operations
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
|||||
Net income (loss)
|
76
|
|
|
(74
|
)
|
|
(234
|
)
|
|
43
|
|
|
(189
|
)
|
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(45
|
)
|
|
2
|
|
|
27
|
|
|
(34
|
)
|
|
(50
|
)
|
|
|||||
Net income (loss) attributable to common stockholders
|
31
|
|
|
(72
|
)
|
|
(207
|
)
|
|
9
|
|
|
(239
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.02
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
—
|
|
|
$
|
(0.17
|
)
|
|
Diluted
|
$
|
0.02
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
—
|
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
1,451
|
|
|
1,451
|
|
|
1,452
|
|
|
1,452
|
|
|
1,451
|
|
|
|||||
Diluted
|
1,457
|
|
|
1,451
|
|
|
1,452
|
|
|
1,457
|
|
|
1,451
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
•
|
Charges at PT-FI totaled $460 million ($379 million to net loss attributable to common stockholders or $0.26 per share), consisting of $266 million in the fourth quarter primarily associated with historical contested tax disputes ($78 million to interest expense, net and $188 million to other expense, net), $166 million in the third quarter recorded in revenues, primarily associated with an unfavorable Indonesia Supreme Court ruling related to PT-FI export duties, and $28 million in the second quarter to production and delivery costs for an adjustment to the settlement of the historical surface water tax disputes with the local regional tax authority in Papua, Indonesia.
|
•
|
Net gains on sales of assets for the year totaled $417 million ($339 million to net loss attributable to common stockholders or $0.23 per share), primarily associated with the sales of FCX’s interest in the lower zone of the Timok exploration project in Serbia and a portion of Freeport Cobalt, most of which was recorded in the fourth quarter. Refer to Note 2 for further discussion.
|
•
|
Metals inventory adjustments for the year totaled $179 million ($144 million to net loss attributable to common stockholders or $0.10 per share) and included $59 million in the second quarter, $41 million in the third quarter and $79 million in the fourth quarter. Refer to Note 4 for further discussion.
|
•
|
Net adjustments to environmental obligations and related litigation reserves totaled $68 million to operating income and net loss attributable to common stockholders ($0.05 per share) for the year, most of which was recorded in the first quarter ($35 million) and the third quarter ($19 million). Of the charges in the third quarter, $15 million were recorded to production and delivery costs.
|
•
|
After-tax net losses on early extinguishment of debt totaled $26 million ($0.02 per share), most of which was recorded in the third quarter. Refer to Note 8 for further discussion.
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Year
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
4,868
|
|
|
$
|
5,168
|
|
|
$
|
4,908
|
|
|
$
|
3,684
|
|
|
$
|
18,628
|
|
|
Operating income
|
1,459
|
|
|
1,664
|
|
|
1,315
|
|
|
316
|
|
|
4,754
|
|
|
|||||
Net income from continuing operations
|
828
|
|
|
1,039
|
|
|
668
|
|
|
374
|
|
|
2,909
|
|
|
|||||
Net (loss) income from discontinued operations
|
(11
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
4
|
|
|
(15
|
)
|
|
|||||
Net income
|
817
|
|
|
1,035
|
|
|
664
|
|
|
378
|
|
|
2,894
|
|
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(125
|
)
|
|
(166
|
)
|
|
(108
|
)
|
|
107
|
|
|
(292
|
)
|
|
|||||
Net income attributable to common stockholders
|
692
|
|
|
869
|
|
|
556
|
|
|
485
|
|
|
2,602
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.48
|
|
|
$
|
0.60
|
|
|
$
|
0.38
|
|
|
$
|
0.33
|
|
|
$
|
1.80
|
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
|||||
|
$
|
0.47
|
|
|
$
|
0.60
|
|
|
$
|
0.38
|
|
|
$
|
0.33
|
|
|
$
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
0.48
|
|
|
$
|
0.59
|
|
|
$
|
0.38
|
|
|
$
|
0.33
|
|
|
$
|
1.79
|
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
|||||
|
$
|
0.47
|
|
|
$
|
0.59
|
|
|
$
|
0.38
|
|
|
$
|
0.33
|
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
1,449
|
|
|
1,449
|
|
|
1,450
|
|
|
1,450
|
|
|
1,449
|
|
|
|||||
Diluted
|
1,458
|
|
|
1,458
|
|
|
1,458
|
|
|
1,457
|
|
|
1,458
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
•
|
Net charges at Cerro Verde related to Peru government claims for disputed royalties totaled $195 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $14 million to production and delivery costs, $370 million to interest expense and $22 million to other expense, net), most of which was recorded in the fourth quarter. Refer to Note 12 for further discussion.
|
•
|
Net charges at PT-FI totaled $223 million ($110 million to net income attributable to common stockholders or $0.08 per share) consisting of charges to production and delivery of $69 million for surface water tax disputes with the local regional tax authority in Papua, Indonesia, $32 million for assessments of prior period permit fees with the MOEF, $72 million for disputed payroll withholding taxes for prior years and other tax settlements and $62 million to write-off certain previously capitalized project costs for the new smelter in Indonesia in fourth quarter, partly offset by inventory adjustments of $12 million recorded in second quarter. The fourth quarter also included $43 million of favorable inventory adjustments at PT-FI related to prior 2018 quarterly periods.
|
•
|
Net charges at Cerro Verde related to its new three-year collective bargaining agreement totaled $69 million ($22 million to net income attributable to common stockholders or $0.02 per share) for the year, which was recorded in the third quarter.
|
•
|
Net adjustments to environmental obligations and related litigation reserves totaled $57 million to operating income and net income attributable to common stockholders ($0.04 per share) for the year, most of which was recorded in the second quarter.
|
•
|
Net gains on sales of assets for the year totaled $208 million to operating income and net income attributable to common stockholders ($0.14 per share), mostly associated with adjustments to assets no longer classified as held for sale, adjustments to the fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties (which will continue to be adjusted through December 31, 2020) and the sale of Port Carteret (assets held for sale), and included $11 million in the first quarter, $45 million in the second quarter, $70 million in the third quarter and $82 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions.
|
•
|
Other net charges for the year totaled $50 million ($30 million to net income attributable to common stockholders or $0.02 per share), including prior period depreciation expense at Freeport Cobalt that was suspended while it was classified as held for sale ($48 million in fourth-quarter and $31 million for the year).
|
•
|
Net tax credits for the year totaled $632 million ($574 million net of noncontrolling interest or $0.39 per share), primarily associated with a reduction in PT-FI’s statutory rates in accordance with the IUPK ($504 million) and benefits associated with the Act ($123 million), most of which was recorded in the fourth quarter. Refer to Note 11 for further discussion.
|
|
Estimated Recoverable Proven and Probable Mineral Reserves
|
|||||||
|
at December 31, 2019
|
|||||||
|
Coppera
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||
North America
|
47.2
|
|
|
0.5
|
|
|
2.87
|
|
South America
|
33.2
|
|
|
—
|
|
|
0.71
|
|
Indonesiab
|
35.6
|
|
|
29.1
|
|
|
—
|
|
Consolidatedc
|
116.0
|
|
|
29.6
|
|
|
3.58
|
|
|
|
|
|
|
|
|||
Net equity interestd
|
83.4
|
|
|
16.1
|
|
|
3.25
|
|
a.
|
Estimated consolidated recoverable copper reserves included 1.7 billion pounds in leach stockpiles and 0.5 billion pounds in mill stockpiles.
|
b.
|
Reflects estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 3 for further discussion). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 375 million ounces of silver, which were determined using $15 per ounce.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of FCX’s ownership in subsidiaries). FCX's net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2020 through 2022 and 48.76 percent from 2023 through 2041. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 251 million ounces of silver.
|
|
|
Estimated Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||
|
|
at December 31, 2019
|
|||||||||||||||||||
|
|
|
|
Average Ore Grade
Per Metric Tona
|
|
Recoverable Proven and
Probable Reservesb
|
|||||||||||||||
|
|
Orea
(million metric tons)
|
|
Copper (%)
|
|
Gold (grams)
|
|
Molybdenum (%)
|
|
Copper
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Morenci
|
|
4,435
|
|
|
0.23
|
|
|
—
|
|
|
—
|
|
c
|
14.5
|
|
|
—
|
|
|
0.19
|
|
Sierrita
|
|
2,960
|
|
|
0.23
|
|
|
—
|
|
c
|
0.02
|
|
|
12.5
|
|
|
0.1
|
|
|
1.23
|
|
Bagdad
|
|
2,535
|
|
|
0.32
|
|
|
—
|
|
c
|
0.02
|
|
|
15.3
|
|
|
0.2
|
|
|
0.79
|
|
Safford, including
Lone Stard |
|
812
|
|
|
0.45
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
Chino, including Cobre
|
|
324
|
|
|
0.45
|
|
|
0.03
|
|
|
—
|
|
c
|
2.7
|
|
|
0.3
|
|
|
0.01
|
|
Climax
|
|
160
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
0.49
|
|
Henderson
|
|
67
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
0.22
|
|
Tyrone
|
|
49
|
|
|
0.25
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
Miami
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cerro Verde
|
|
4,265
|
|
|
0.35
|
|
|
—
|
|
|
0.01
|
|
|
29.3
|
|
|
—
|
|
|
0.71
|
|
El Abra
|
|
717
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Indonesiae
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Grasberg Block Cave
|
|
959
|
|
|
0.97
|
|
|
0.73
|
|
|
—
|
|
|
17.2
|
|
|
14.2
|
|
|
—
|
|
Deep Mill Level Zone
|
|
429
|
|
|
0.92
|
|
|
0.75
|
|
|
—
|
|
|
7.6
|
|
|
8.2
|
|
|
—
|
|
Big Gossan
|
|
55
|
|
|
2.33
|
|
|
0.97
|
|
|
—
|
|
|
2.6
|
|
|
1.2
|
|
|
—
|
|
Deep Ore Zone
|
|
29
|
|
|
0.50
|
|
|
0.48
|
|
|
—
|
|
|
0.3
|
|
|
0.4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Kucing Liar
|
|
340
|
|
|
1.25
|
|
|
1.04
|
|
|
—
|
|
|
8.0
|
|
|
5.1
|
|
|
—
|
|
Total 100% basis
|
|
18,137
|
|
f
|
|
|
|
|
|
|
120.0
|
|
f
|
29.6
|
|
f
|
3.64
|
|
|||
Consolidatedg
|
|
|
|
|
|
|
|
|
|
116.0
|
|
|
29.6
|
|
|
3.58
|
|
||||
FCX’s equity shareh
|
|
|
|
|
|
|
|
|
|
83.4
|
|
|
16.1
|
|
|
3.25
|
|
a.
|
Excludes material contained in stockpiles.
|
b.
|
Includes estimated recoverable metals contained in stockpiles.
|
c.
|
Amounts not shown because of rounding.
|
d.
|
The Lone Star leachable ores project is under development.
|
e.
|
Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK.
|
f.
|
Does not foot because of rounding.
|
g.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America. Refer to Note 3 for further discussion.
|
h.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. FCX's net equity interest for estimated metal quantities in Indonesia reflects an approximate 81 percent from 2020 through 2022 and 48.76 percent from 2023 through 2041. Refer to Note 3 for further discussion of FCX’s ownership in subsidiaries.
|
|
Number of Securities To be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
||||
|
(a)
|
|
(b)
|
(c)
|
||||
Equity compensation plans approved by security holders
|
53,425,056
|
|
a
|
$
|
26.04
|
|
46,897,262
|
|
Equity compensation plans not approved by security holders
|
2,778,165
|
|
b
|
$
|
28.17
|
|
—
|
|
Total
|
56,203,221
|
|
|
26.16
|
|
46,897,262
|
|
a.
|
Includes shares of our common stock issuable upon the vesting of 2,995,643 restricted stock units (RSUs) and 3,683,625 performance share units (PSUs) at maximum performance levels, and the termination of deferrals with respect to 1,198,400 RSUs that were vested as of December 31, 2019. These awards are not reflected in column (b) because they do not have an exercise price. The number of securities to be issued in column (a) does not include RSUs granted under our phantom stock plan, which are payable solely in cash.
|
b.
|
Represents securities to be issued under awards assumed in our acquisition of McMoRan Exploration Co. Includes shares issuable upon the vesting of 13,500 RSUs that were assumed in prior acquisitions. These awards are not reflected in column (b) because they do not have an exercise price.
|
|
|
|
|
Additions (Deductions)
|
|
|
|
|
||||||||||||
|
|
Balance at
|
|
Charged to
|
|
Charged to
|
|
Other
|
|
Balance at
|
||||||||||
|
|
Beginning of
|
|
Costs and
|
|
Other
|
|
Additions
|
|
End of
|
||||||||||
|
|
Year
|
|
Expense
|
|
Accounts
|
|
(Deductions)
|
|
Year
|
||||||||||
Reserves and allowances deducted
|
|
|
|
|
|
|
|
|
|
|
||||||||||
from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for deferred tax assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2019
|
|
$
|
4,507
|
|
|
$
|
50
|
|
a
|
$
|
19
|
|
b
|
$
|
—
|
|
|
$
|
4,576
|
|
Year Ended December 31, 2018
|
|
4,575
|
|
|
(345
|
)
|
c
|
8
|
|
b
|
269
|
|
d
|
4,507
|
|
|||||
Year Ended December 31, 2017
|
|
6,058
|
|
|
(1,484
|
)
|
e
|
1
|
|
b
|
—
|
|
|
4,575
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserves for non-income taxes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2019
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
f
|
$
|
58
|
|
Year Ended December 31, 2018
|
|
58
|
|
|
7
|
|
|
(1
|
)
|
|
(2
|
)
|
f
|
62
|
|
|||||
Year Ended December 31, 2017
|
|
64
|
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
f
|
58
|
|
a.
|
Primarily relates to a $208 million increase in United States (U.S.) federal deferred tax assets for which no benefit is expected to be realized, partly offset by a $98 million decrease in U.S. foreign tax credits associated with expirations and prior year adjustments, and a $44 million decrease in U.S. federal and state net operating loss carryforwards.
|
b.
|
Relates to a valuation allowance for tax benefits primarily associated with actuarial losses for U.S. defined benefit plans included in other comprehensive (loss) income.
|
c.
|
Primarily relates to a $315 million decrease in U.S. foreign tax credits associated with expirations and 2017 U.S. tax reform adjustments, and a decrease of $45 million in U.S. federal net operating losses associated with 2018 usage and 2017 U.S tax reform.
|
d.
|
Primarily relates to a $244 million increase in foreign net operating losses for which no benefit is expected to be realized resulting from PT Freeport Indonesia’s acquisition of PT Rio Tinto Indonesia.
|
e.
|
Relates to a $1.1 billion decrease associated with a reduction in the corporate income tax rate applicable to U.S. federal deferred tax assets and $371 million for the reversal of valuation allowances on U.S. federal alternative minimum tax credits.
|
f.
|
Represents amounts paid or adjustments to reserves based on revised estimates.
|
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
Agreement and Plan of Merger dated as of November 18, 2006, by and among FCX, Phelps Dodge Corporation and Panther Acquisition Corporation.
|
|
8-K
|
001-11307-01
|
11/20/2006
|
|
Stock Purchase Agreement, dated as of October 6, 2014, among LMC Candelaria SpA, LMC Ojos del Salado SpA and Freeport Minerals Corporation.
|
|
10-Q
|
001-11307-01
|
11/7/2014
|
|
Purchase Agreement dated February 15, 2016, between Sumitomo Metal Mining America Inc., Sumitomo Metal Mining Co., Ltd., Freeport-McMoRan Morenci Inc., Freeport Minerals Corporation, and FCX.
|
|
8-K
|
001-11307-01
|
2/16/2016
|
|
Stock Purchase Agreement dated May 9, 2016, among CMOC Limited, China Molybdenum Co., Ltd., Phelps Dodge Katanga Corporation and FCX.
|
|
8-K
|
001-11307-01
|
2/9/2016
|
|
Purchase and Sale Agreement dated September 12, 2016, between Freeport-McMoRan Oil & Gas LLC, Freeport-McMoRan Exploration & Production LLC, Plains Offshore Operations Inc. and Anadarko US Offshore LLC.
|
|
10-Q
|
001-11307-01
|
11/9/2016
|
|
PT-FI Divestment Agreement dated as of September 27, 2018 among FCX, International Support LLC, PT Freeport Indonesia, PT Indocopper Investama (subsequently renamed PT Indonesia Papua Metal Dan Mineral) and PT Indonesia Asahan Aluminium (Persero).
|
|
10-Q
|
001-11307-01
|
11/9/2018
|
|
Supplemental and Amendment Agreement to the PT-FI Divestment Agreement, dated December 21, 2018, among FCX, PT Freeport Indonesia, PT Indonesia Papua Metal Dan Mineral (f/k/a PT Indocopper Investama), PT Indonesia Asahan Aluminium (Persero) and International Support LLC.
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
|
Amended and Restated Certificate of Incorporation of FCX, effective as of June 8, 2016.
|
|
8-K
|
001-11307-01
|
6/9/2016
|
Amended and Restated By-Laws of FCX, effective as of June 8, 2016.
|
|
8-K
|
001-11307-01
|
6/9/2016
|
|
Description of Common Stock of Freeport-McMoRan Inc.
|
X
|
|
|
|
|
Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
2/13/2012
|
|
Third Supplemental Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022).
|
|
8-K
|
001-11307-01
|
2/13/2012
|
|
Fourth Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
|
Sixth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.00% Senior Notes due 2021).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
Seventh Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.55% Senior Notes due 2024).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
|
|
Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034).
|
|
8-K
|
001-11307-01
|
11/14/2014
|
|
Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC, as guarantor, and U.S. Bank National Association, as Trustee (relating to the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
S-3
|
333-36415
|
9/25/1997
|
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).
|
|
8-K
|
001-00082
|
11/3/1997
|
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).
|
|
8-K
|
001-00082
|
5/30/2001
|
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-00082
|
3/7/2005
|
|
Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-11307-01
|
2/26/2016
|
|
Form of Certificate representing shares of common stock, par value $0.10.
|
|
8-A/A
|
001-11307-01
|
8/10/2015
|
|
Indenture dated as of August 15, 2019, between FCX and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027 and the 5.25% Senior Notes due 2029).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
First Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.00% Senior Notes due 2027).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
Second Supplemental Indenture dated as of August 15, 2019, among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and U.S. Bank National Association, as Trustee (relating to the 5.25% Senior Notes due 2029).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Form of 5.00% Senior Notes due 2027 (included in Exhibit 4.18).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Form of 5.25% Senior Notes due 2029 (included in Exhibit 4.9).
|
|
8-K
|
001-11307-01
|
8/15/2019
|
|
Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
S-3
|
333-72760
|
11/5/2001
|
|
Amendment No. 1, dated as of March 19, 1998, Amendment No. 2 dated as of December 1, 2000, Amendment No. 3 dated as of January 1, 2003, Amendment No. 4 dated as of May 10, 2004, Amendment No. 5 dated as of March 19, 2009, Amendment No. 6 dated as of January 1, 2011, and Amendment No. 7 dated as of October 29, 2012, to the Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
Amendment No. 8 dated as of April 16, 2014 to the Concentrate Purchase and Sales Agreement dated December 11,1996 between PT Freeport Indonesia and PT Smelting.
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
Amendment No. 9 dated as of April 10, 2017 to the Concentrate Purchase and Sales Agreement dated December 11,1996 between PT Freeport Indonesia and PT Smelting.
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
Shareholders Agreement dated as of December 21, 2018, among FCX, PT Freeport Indonesia, PT Indonesia Papua Metal Dan Mineral and PT Indonesia Asahan Aluminium (Persero).
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
PT Freeport Indonesia Special Mining License (IUPK) from the Minister of Energy and Mineral Resources of the Republic of Indonesia (English translation).
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
Third Amended and Restated Joint Venture and Shareholders Agreement dated as of December 11, 2003 among PT Freeport Indonesia, Mitsubishi Corporation, Nippon Mining & Metals Company, Limited and PT Smelting, as amended by the First Amendment dated as of September 30, 2005, and the Second Amendment dated as of April 30, 2008.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
Participation Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation, Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Summit Global Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
3/22/2005
|
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
Shareholders Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Summit Global Management B.V., a Dutch corporation, SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
6/7/2005
|
|
Revolving Credit Agreement dated as of April 20, 2018, among FCX, PT Freeport Indonesia, Freeport-McMoRan Oil & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-0
|
4/23/2018
|
|
First Amendment dated as of May 2, 2019 to the Revolving Credit Agreement dated as of April 20, 2018, among Freeport-McMoRan Inc., PT Freeport Indonesia, Freeport-McMoRan Oil & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
5/2/2019
|
|
Second Amendment dated as of November 25, 2019 to the Revolving Credit Agreement dated as of April 20, 2018, as amended by that certain First Amendment dated as of May 2, 2019, among Freeport-McMoRan Inc., PT Freeport Indonesia, Freeport-McMoRan Oil & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto.
|
|
8-K
|
001-11307-01
|
11/25/2019
|
|
Letter Agreement dated as of December 19, 2013, by and between FCX and Richard C. Adkerson.
|
|
8-K
|
001-11307-01
|
12/23/2013
|
|
FCX Director Compensation.
|
X
|
|
|
|
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and Kathleen L. Quirk.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
|
Amendment to Amended and Restated Executive Employment Agreement dated December 2, 2008, by and between FCX and Kathleen L. Quirk, dated April 27, 2011.
|
|
8-K
|
001-11307-01
|
4/29/2011
|
|
FCX Executive Services Program.
|
|
10-K
|
001-11307-01
|
2/24/2017
|
|
FCX Supplemental Executive Retirement Plan, as amended and restated.
|
|
8-K
|
001-11307-01
|
2/5/2007
|
|
FCX Supplemental Executive Capital Accumulation Plan.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
|
FCX Supplemental Executive Capital Accumulation Plan Amendment One.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Two.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Three.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Four.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
FCX 2005 Supplemental Executive Capital Accumulation Plan, as amended and restated effective January 1, 2015.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
Freeport Minerals Corporation Supplemental Retirement Plan, as amended and restated.
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
FCX Amended and Restated 1999 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
|
FCX 2003 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
FCX 2004 Director Compensation Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
8/6/2010
|
|
FCX Amended and Restated 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/27/2014
|
|
FCX 2016 Stock Incentive Plan.
|
|
8-K
|
001-11307-01
|
6/9/2016
|
|
Form of Notice of Grant of Nonqualified Stock Options and Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors and advisory directors).
|
|
8-K
|
001-11307-01
|
6/14/2010
|
|
Form of Nonqualified Stock Options Grant Agreement under the FCX stock incentive plans (effective February 2014).
|
|
10-K
|
001-11307-01
|
2/27/2014
|
|
Form of Notice of Grant of Restricted Stock Units (for grants made to non-management directors).
|
|
10-K
|
001-11307-01
|
2/24/2017
|
|
Form of Restricted Stock Unit Agreement (effective February 2015).
|
|
10-K
|
001-11307-01
|
2/27/2015
|
|
Form of Performance Share Unit Agreement (effective March 2016).
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
Form of Performance Share Unit Agreement (effective February 2018).
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
Form of Nonqualified Stock Options Grant Agreement (effective February 2018).
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
Form of Restricted Stock Unit Agreement (effective February 2018).
|
|
10-K
|
001-11307-01
|
2/20/2018
|
|
FCX Annual Incentive Plan (effective January 2019).
|
|
10-K
|
001-11307-01
|
2/15/2019
|
|
FCX Principles of Business Conduct.
|
X
|
|
|
|
|
Subsidiaries of FCX.
|
X
|
|
|
|
|
Consent of Ernst & Young LLP.
|
X
|
|
|
|
|
Certified resolution of the Board of Directors of FCX authorizing this report to be signed on behalf of any officer or director pursuant to a Power of Attorney.
|
X
|
|
|
|
|
Powers of Attorney pursuant to which this report has been signed on behalf of certain officers and directors of FCX.
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
|
|
|
|
Mine Safety Disclosure.
|
X
|
|
|
|
|
101.INS
|
XBRL Instance Document - the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
X
|
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema.
|
X
|
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase.
|
X
|
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
|
|
|
104
|
The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL.
|
X
|
|
|
|
/s/ Richard C. Adkerson
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Richard C. Adkerson
|
(Principal Executive Officer)
|
|
|
/s/ Kathleen L. Quirk
|
Executive Vice President and Chief Financial Officer
|
Kathleen L. Quirk
|
(Principal Financial Officer)
|
|
|
*
|
Vice President and Controller - Financial Reporting
|
C. Donald Whitmire, Jr.
|
(Principal Accounting Officer)
|
|
|
*
|
Chairman of the Board
|
Gerald J. Ford
|
|
|
|
*
|
Director
|
Lydia H. Kennard
|
|
|
|
*
|
Director
|
Dustan E. McCoy
|
|
|
|
*
|
Director
|
John J. Stephens
|
|
|
|
*
|
Director
|
Frances Fragos Townsend
|
|
|
|
* By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Attorney-in-Fact
|
|