Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | NEWMONT MINING CORP /DE/ | ||
Entity Central Index Key | 1,164,727 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 17,235,370,395 | ||
Entity Common Stock, Shares Outstanding | 533,474,863 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
Sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 | |
Costs and expenses | ||||||||||||
Costs applicable to sales (1) | [1] | 4,038 | 3,772 | 3,578 | ||||||||
Depreciation and amortization | 1,249 | 1,220 | 1,102 | |||||||||
Reclamation and remediation (Note 6) | 177 | 179 | 253 | |||||||||
Exploration | 179 | 148 | 156 | |||||||||
Advanced projects, research and development | 143 | 134 | 126 | |||||||||
General and administrative | 237 | 233 | 241 | |||||||||
Impairment of long-lived assets (Note 7) | 14 | 977 | 56 | |||||||||
Other expense, net (Note 8) | 32 | 58 | 116 | |||||||||
Total costs and expenses | 6,069 | 6,721 | 5,628 | |||||||||
Other income (expense): | ||||||||||||
Other income, net (Note 9) | 54 | 69 | 135 | |||||||||
Interest expense, net of capitalized interest of $22, $33 and $40, respectively | (241) | (273) | (297) | |||||||||
Total other income (expense) | (187) | (204) | (162) | |||||||||
Income (loss) before income and mining tax and other items | 1,092 | (214) | 295 | |||||||||
Income and mining tax benefit (expense) (Note 10) | (1,125) | (563) | (391) | |||||||||
Equity income (loss) of affiliates | (16) | (13) | (45) | |||||||||
Net income (loss) from continuing operations | (49) | (790) | (141) | |||||||||
Net income (loss) from discontinued operations (Note 3) | (38) | (133) | 445 | |||||||||
Net income (loss) | (87) | (923) | 304 | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Continuing operations (Note 12) | (11) | 570 | 140 | |||||||||
Discontinued operations (Note 3) | (274) | (224) | ||||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | (11) | 296 | (84) | |||||||||
Net income (loss) attributable to Newmont stockholders | (527) | 206 | 177 | 46 | (344) | (358) | 23 | 52 | (98) | (627) | 220 | |
Net income (loss) attributable to Newmont stockholders: | ||||||||||||
Continuing operations | (534) | 213 | 192 | 69 | (391) | 169 | 14 | (12) | (60) | (220) | (1) | |
Discontinued operations | 7 | (7) | (15) | (23) | 47 | (527) | 9 | 64 | (38) | (407) | 221 | |
Net income (loss) attributable to Newmont stockholders | $ (527) | $ 206 | $ 177 | $ 46 | $ (344) | $ (358) | $ 23 | $ 52 | $ (98) | $ (627) | $ 220 | |
Net income (loss) per common share, Basic (Note 13) | ||||||||||||
Continuing operations (in dollars per share) | $ (0.99) | $ 0.39 | $ 0.36 | $ 0.13 | $ (0.73) | $ 0.32 | $ 0.02 | $ (0.02) | $ (0.11) | $ (0.41) | ||
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | $ 0.43 | |
Income (loss) per common share, basic | (0.98) | 0.38 | 0.33 | 0.09 | (0.65) | (0.67) | 0.04 | 0.10 | (0.18) | (1.18) | 0.43 | |
Net income (loss) per common share, Diluted (Note 13) | ||||||||||||
Continuing operations (in dollars per share) | (0.99) | 0.39 | 0.36 | 0.13 | (0.73) | 0.32 | 0.02 | (0.02) | (0.11) | (0.41) | ||
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | 0.43 | |
Income (loss) per common share, diluted | (0.98) | 0.38 | 0.33 | 0.09 | (0.65) | (0.67) | 0.04 | 0.10 | (0.18) | (1.18) | 0.43 | |
Cash dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.050 | $ 0.050 | $ 0.050 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.250 | $ 0.125 | $ 0.100 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Capitalized interest | $ 22 | $ 33 | $ 40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (87) | $ (923) | $ 304 |
Other comprehensive income (loss): | |||
Change in marketable securities, net of $-, $- and $- tax benefit (expense), respectively | (15) | (58) | 99 |
Foreign currency translation adjustments | 12 | 2 | (11) |
Change in pension and other post-retirement benefits, net of $(8), $9 and $(23) tax benefit (expense), respectively | 15 | (16) | 42 |
Change in fair value of cash flow hedge instruments, net of $(15), $(31) and $(6) tax benefit (expense), respectively | 30 | 72 | 14 |
Other comprehensive income (loss) | 42 | 144 | |
Comprehensive income (loss) | (45) | (923) | 448 |
Comprehensive income (loss) attributable to: | |||
Newmont stockholders | (56) | (627) | 364 |
Noncontrolling interests | 11 | (296) | 84 |
Comprehensive income (loss) | $ (45) | $ (923) | $ 448 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | $ 0 | $ 0 | $ 0 |
Change in pension and other post-retirement benefits, tax benefit (expense) | (8) | 9 | (23) |
Change in fair value of cash flow hedge instruments, tax benefit (expense) | $ (15) | $ (31) | $ (6) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating activities: | ||||
Net income (loss) | $ (87) | $ (923) | $ 304 | |
Adjustments: | ||||
Depreciation and amortization | 1,249 | 1,220 | 1,102 | |
Stock-based compensation (Note 15) | 70 | 70 | 77 | |
Reclamation and remediation | 165 | 168 | 246 | |
Loss (income) from discontinued operations (Note 3) | 38 | 133 | (445) | |
Impairment of long-lived assets | 14 | 977 | 56 | |
Impairment of investments | 0 | 0 | 115 | |
Deferred income taxes | 795 | 434 | 198 | |
Gain on asset and investment sales, net | (23) | (108) | (118) | |
Gain on deconsolidation of TMAC | (76) | |||
Write-downs of inventory and stockpiles and ore on leach pads | 212 | 298 | 236 | |
Other operating adjustments | 91 | 138 | 99 | |
Net change in operating assets and liabilities (Note 25) | (174) | (484) | (206) | |
Net cash provided by (used in) operating activities of continuing operations | 2,350 | 1,923 | 1,588 | |
Net cash provided by (used in) operating activities of discontinued operations (1) | [1] | (15) | 869 | 557 |
Net cash provided by (used in) operating activities | 2,335 | 2,792 | 2,145 | |
Investing activities: | ||||
Additions to property, plant and mine development | (866) | (1,133) | (1,311) | |
Purchases of investments | (130) | (15) | (17) | |
Proceeds from sales of investments | 35 | 195 | 29 | |
Proceeds from sales of other assets | 5 | 9 | 203 | |
Acquisitions, net | (15) | (6) | (823) | |
Proceeds from sale of Batu Hijau | 920 | |||
Other | 10 | (4) | (32) | |
Net cash provided by (used in) investing activities of continuing operations | (961) | (34) | (1,951) | |
Net cash provided by (used in) investing activities of discontinued operations | (46) | (90) | ||
Net cash provided by (used in) investing activities | (961) | (80) | (2,041) | |
Financing activities: | ||||
Repayment of debt | (580) | (1,312) | (229) | |
Distributions to noncontrolling interests | (178) | (3) | ||
Dividends paid to common stockholders | (134) | (67) | (52) | |
Funding from noncontrolling interests | 94 | 66 | 109 | |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) | ||
Dividends paid to noncontrolling interests | (146) | (3) | ||
Acquisition of noncontrolling interests | (48) | (19) | (8) | |
Proceeds from stock issuance, net | 675 | |||
Proceeds from sale of noncontrolling interests | 37 | |||
Other | (5) | 1 | (2) | |
Net cash provided by (used in) financing activities of continuing operations | (864) | (1,486) | 527 | |
Net cash provided by (used in) financing activities of discontinued operations | (331) | (225) | ||
Net cash provided by (used in) financing activities | (864) | (1,817) | 302 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6 | 2 | (24) | |
Net change in cash and cash equivalents | 516 | 897 | 382 | |
Less net cash provided by (used in) Batu Hijau discontinued operations | 503 | 254 | ||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 516 | 394 | 128 | |
Cash and cash equivalents at beginning of period | 2,782 | 2,388 | 2,260 | |
Cash and cash equivalents at end of period | 3,298 | 2,782 | 2,388 | |
Other information | ||||
Net income (loss) from discontinued operations included in Net cash provided by operating activities of discontinued operations | 0 | |||
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Total cash, cash equivalents and restricted cash | 2,782 | 2,388 | 2,260 | |
Discontinued operations disposed of by sale | ||||
Adjustments: | ||||
Loss (income) from discontinued operations (Note 3) | 38 | |||
Holt Royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||||
Adjustments: | ||||
Loss (income) from discontinued operations (Note 3) | 44 | 50 | (27) | |
Net cash provided by (used in) operating activities of discontinued operations (1) | (12) | (11) | (12) | |
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | ||||
Other information | ||||
Closing costs included in Net cash provided by operating activities of discontinued operations | $ (3) | |||
Net income (loss) from discontinued operations included in Net cash provided by operating activities of discontinued operations | $ 880 | $ 569 | ||
[1] | Net cash provided by operating activities of discontinued operations includes $(3) related to closing costs for the sale of Batu Hijau that were paid in 2017, $-, $880 and $569 related to the operating activities of Batu Hijau in 2017, 2016 and 2015, respectively, and $(12), $(11) and $(12) for 2017, 2016 and 2015, respectively, related to the Holt royalty obligation, all of which were paid out of Cash and cash equivalents. For additional information regarding our discontinued operations, including cash flows from Batu Hijau, see Note 3. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 3,259 | $ 2,756 |
Trade receivables | 124 | 160 |
Other accounts receivables | 113 | 183 |
Investments (Note 18) | 62 | 56 |
Inventories (Note 19) | 679 | 617 |
Stockpiles and ore on leach pads (Note 20) | 676 | 763 |
Other current assets | 153 | 142 |
Current assets | 5,066 | 4,677 |
Property, plant and mine development, net (Note 21) | 12,267 | 12,485 |
Investments (Note 18) | 280 | 207 |
Stockpiles and ore on leach pads (Note 20) | 1,848 | 1,864 |
Deferred income tax assets (Note 10) | 537 | 1,331 |
Other non-current assets | 565 | 467 |
Total assets | 20,563 | 21,031 |
LIABILITIES | ||
Debt (Note 22) | 4 | 566 |
Accounts payable | 375 | 320 |
Employee-related benefits (Note 14) | 309 | 304 |
Income and mining taxes payable | 248 | 153 |
Other current liabilities (Note 23) | 459 | 407 |
Current liabilities | 1,395 | 1,750 |
Debt (Note 22) | 4,061 | 4,049 |
Reclamation and remediation liabilities (Note 6) | 2,154 | 2,029 |
Deferred income tax liabilities (Note 10) | 595 | 592 |
Employee-related benefits (Note 14) | 386 | 411 |
Other non-current liabilities (Note 23) | 342 | 326 |
Total liabilities | 8,933 | 9,157 |
EQUITY | ||
Common stock - $1.60 par value; Authorized - 750 million shares; Outstanding shares - 534 million and 531 million issued shares, less 915,000 and 535,000 treasury shares, respectively | 853 | 849 |
Additional paid-in capital | 9,564 | 9,490 |
Accumulated other comprehensive income (loss) (Note 24) | (292) | (334) |
Retained earnings | 484 | 716 |
Newmont stockholders' equity | 10,609 | 10,721 |
Noncontrolling interests | 1,021 | 1,153 |
Total equity | 11,630 | 11,874 |
Total liabilities and equity | $ 20,563 | $ 21,031 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 1.60 | $ 1.60 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 534,000,000 | 531,000,000 |
Treasury shares | 915,000 | 535,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | Total |
Balance at beginning of period at Dec. 31, 2014 | $ 798 | $ 8,712 | $ (478) | $ 1,242 | $ 2,815 | $ 13,089 |
Balance at beginning of period, shares at Dec. 31, 2014 | 499 | |||||
Changes in Equity | ||||||
Net income (loss) | 220 | 84 | 304 | |||
Other comprehensive income (loss) | 144 | 144 | ||||
Dividends paid | (52) | (3) | (55) | |||
Cash calls requested from noncontrolling interests (2) | 90 | 90 | ||||
Acquisition of noncontrolling interests | (8) | (8) | ||||
Sale of noncontrolling interest, net | 12 | (36) | (24) | |||
Equity Issuance | $ 46 | 629 | 675 | |||
Equity Issuance, shares | 29 | |||||
Stock-based awards and related share issuances | $ 3 | 74 | 77 | |||
Stock-based awards and related share issuances, shares | 2 | |||||
Balance at end of period at Dec. 31, 2015 | $ 847 | 9,427 | (334) | 1,410 | 2,942 | 14,292 |
Balance at end of period, shares at Dec. 31, 2015 | 530 | |||||
Changes in Equity | ||||||
Net income (loss) | (627) | (296) | (923) | |||
Dividends paid | (67) | (146) | (213) | |||
Distributions declared to noncontrolling interests | (21) | (21) | ||||
Cash calls requested from noncontrolling interests (2) | 81 | 81 | ||||
Acquisition of noncontrolling interests | (19) | (19) | ||||
Divestiture of noncontrolling interests, net | (1,388) | (1,388) | ||||
Stock-based awards and related share issuances | $ 2 | 63 | 65 | |||
Stock-based awards and related share issuances, shares | 2 | |||||
Balance at end of period at Dec. 31, 2016 | $ 849 | 9,490 | (334) | 716 | 1,153 | 11,874 |
Balance at end of period, shares at Dec. 31, 2016 | 532 | |||||
Changes in Equity | ||||||
Net income (loss) | (98) | 11 | (87) | |||
Other comprehensive income (loss) | 42 | 42 | ||||
Dividends paid | (134) | (134) | ||||
Distributions declared to noncontrolling interests | (170) | (170) | ||||
Cash calls requested from noncontrolling interests (2) | 97 | 97 | ||||
Acquisition of noncontrolling interests | 22 | (70) | (48) | |||
Stock-based awards and related share issuances | $ 4 | 52 | 56 | |||
Stock-based awards and related share issuances, shares | 1 | |||||
Balance at end of period at Dec. 31, 2017 | $ 853 | $ 9,564 | $ (292) | $ 484 | $ 1,021 | $ 11,630 |
Balance at end of period, shares at Dec. 31, 2017 | 533 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
THE COMPANY | |
THE COMPANY | NOTE 1 THE COMPANY Newmont Mining Corporation and its affiliates and subsidiaries (collectively, “Newmont,” “we,” “us” or the “Company”) predominantly operate in the mining industry, focused on the production of and exploration for gold and copper. The Company has significant assets and/or operations in the United States (“U.S.”), Australia, Peru, Ghana and Suriname. The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold and copper. The prices of gold and copper are affected by numerous factors beyond the Company’s control. References to “A$” refer to Australian currency and “C$” refer to Canadian currency. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold and copper. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net ; Inventories ; Stockpiles and ore on leach pads ; and Deferred income tax assets are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. Minera Yanacocha S.R.L. (“Yanacocha”) includes the mining operations at Yanacocha and the Conga project in Peru. Under the current social and political environment, the Company does not anticipate being able to develop Conga for at least the next five years. As a result of the uncertainty surrounding the Conga project, the Company has allocated its development capital to other projects. Should the Company be unable to develop the Conga project, the Company may have to consider other alternatives for the project, which may result in a future impairment charge. The total assets at Conga as of December 31, 2017 and 2016 were $1,650 and $1,666 respectively. Use of Estimates The Company’s Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of goodwill, long-lived assets and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable securities and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from those amounts estimated in these financial statements. Principles of Consolidation The Consolidated Financial Statements include the accounts of Newmont Mining Corporation and the more-than-50%-owned subsidiaries that it controls. The Company also includes its pro-rata share of assets, liabilities and operations for unincorporated joint ventures in which it has an interest. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is the U.S. dollar. The Company follows the Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). On November 22, 2013, Newmont entered into a Partnership Agreement with Staatsolie Maatschappij Suriname N.V. (“Staatsolie”) (a company wholly owned by the Republic of Suriname). The Partnership Agreement gave Staatsolie the option to participate in the Merian gold mine (“Merian”) for up to 25% of the partnership. Staatsolie exercised that option in November 2014. At December 31, 2017, Newmont has a 75.0% ownership in Merian. Newmont has identified Merian as a VIE under ASC guidance for consolidation. The Company has determined itself to be the primary beneficiary of this entity, as it controls the operations of Merian and has the obligation to absorb losses and the right to receive benefits that are significant to Merian; therefore, the Company consolidates Merian in its financial statements. Assets Held for Sale and Discontinued Operations The Company reports a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and recognition of a completed sale is expected to occur within one year, the sales price is reasonable in relation to its current fair value and actions required to complete the sale indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn, in accordance with ASC 360, Property, Plant and Equipment. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current- and prior-year balance sheets in the period in which the business is classified as held for sale. The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. The results of discontinued operations are reported in Net income (loss) from discontinued operations , net of tax in the accompanying Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. On November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). As a result, Newmont presents Batu Hijau as a discontinued operation for all periods presented. Accordingly, (i) our Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (ii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3. Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are held in overnight bank deposits or are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current or non-current assets. Restricted cash is held primarily for the purpose of settling asset retirement obligations. Investments Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company’s ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in non-current assets. Additionally, the Company has certain restricted investments, which are classified as Other non-current assets. The Company accounts for both its restricted and non-restricted marketable security investments as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company’s carrying value are other-than-temporary in accordance with ASC guidance. The Company’s policy is to generally treat a decline in the investment’s quoted market value that has lasted continuously for more than six to nine months as an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Company’s ability to hold the investment until a forecasted recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Company’s carrying value deemed to be other-than-temporary are charged to Other income, net. Stockpiles, Ore on Leach Pads and Inventories As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories to net realizable value are reported as a component of Costs applicable to sales and Depreciation and amortization . The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months and utilize the short-term metal price assumption in estimating net realizable value. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as non-current and utilize the long-term metal price assumption in estimating net realizable value. The major classifications are as follows: Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed. The Company generally processes the highest ore grade material first to maximize metal production; however, a blend of gold ore stockpiles may be processed to balance hardness and/or metallurgy in order to maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed. Sulfide copper ores are subject to oxidation over time which can reduce expected future recoveries. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are added to stockpiles based on current mining costs incurred including applicable overhead and depreciation and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. Stockpiles are recorded at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly. Net realizable value represents the estimated future sales price based on short-term and long-term metals price assumptions, less estimated costs to complete production and bring the product to sale. Ore on Leach Pads Ore on leach pads represent ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the gold or extract the copper. The recovery of copper from leach pads is further described below in the Copper Cathode Inventory section. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or pound of copper on the leach pad. Estimates of recoverable ore on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete. Although the quantities of recoverable ore placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company’s operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of metal on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. In-process Inventory In-process inventories represent material that is currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, flotation, leach and carbon-in-leach. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads, plus the in-process conversion costs, including applicable amortization relating to the process facilities incurred to that point in the process. Precious Metals Inventory Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company’s mining and processing activities are valued at the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs. Copper Cathode Inventory Copper heap leaching is performed on copper oxide ore and enriched copper sulfide ore to produce copper cathodes. Heap leaching is accomplished by stacking uncrushed ore onto synthetically lined pads where it is contacted with a dilute sulfuric acid solution, thus leaching the acid soluble minerals into a copper sulfate solution. The copper sulfate solution is then collected and pumped to the solvent extraction (“SX”) plant. The SX process consists of two steps. During the first step, the copper is extracted into an organic solvent solution. The loaded organic solution is then pumped to the second step where copper is stripped with a strong acid solution before being sent through the electrowinning process. Cathodes produced in electrowinning are 99.99% copper. Copper cathode is produced at the Company’s Phoenix operations by solvent extraction and electrowinning. The inventory is valued at the lower of average cost to produce the cathode or net realizable value. Concentrate Inventory Concentrate inventories represent copper and gold concentrate available for shipment or in transit for further processing when the sales process has not been completed. The Company values concentrate inventory at average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on metal in the concentrate and are valued at the lower of average cost or net realizable value. Materials and Supplies Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. Property, Plant and Mine Development Facilities and Equipment Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. Facilities and equipment acquired as a part of a capital lease, build-to-suit or other financing arrangement are capitalized and recorded based on the contractual lease terms. The facilities and equipment are depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives of such facilities. These estimated productive lives do not exceed the related estimated mine lives, which are based on proven and probable reserves. Mine Development Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves. Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales . The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. The Company’s definition of a mine and the mine’s production phase may differ from that of other companies in the mining industry resulting in incomparable allocations of stripping costs to deferred mine development and production costs. Other mining companies may expense pre-stripping costs associated with subsequent pits within a mining complex. Other mining companies may capitalize stripping costs incurred in connection with the production phase. Mine development costs are amortized using the units-of-production method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area. Mineral Interests Mineral interests include acquired interests in production, development and exploration stage properties. Mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material within pits; mineralized material with insufficient drill spacing to qualify as proven and probable reserves; and mineralized material in close proximity to proven and probable reserves; (ii) around-mine exploration potential not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of current mineralized material and is comprised mainly of material outside of the immediate mine area; (iv) greenfield exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company’s mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material. Impairment of Long-lived Assets The Company reviews and evaluates its long-lived assets for impairment at least annually, or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment loss is measured and recorded based on the estimated fair value of the long-lived assets being tested for impairment, and their carrying amounts. Fair value is typically determined through the use of an income approach utilizing estimates of discounted pre-tax future cash flows or a market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. Occasionally, such as when an asset is held for sale, market prices are used. The Company believes its estimates and models used to determine fair value are similar to what a market participant would use. The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of the Company’s mining operations are derived from current business plans, which are developed using short-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to short- and long-term metal price assumptions, other assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable estimates; estimated future closure costs; and the use of appropriate discount rates. In estimating undiscounted cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of undiscounted cash flows from other asset groups. The Company’s estimates of undiscounted cash flows are based on numerous assumptions and it is possible that actual cash flows will be significantly different than the estimates, as actual produced reserves, metal prices, commodity-based and other costs, and closure costs are each subject to significant risks and uncertainties. Revenue Recognition Revenue is recognized from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, risk and the title has been transferred to the customer and collection of the sales price is reasonably assured. Revenues from concentrate sales are recorded net of treatment and refining charges. Revenues from by-product sales are credited to Costs applicable to sales as a by-product credit. Concentrate sales are initially recorded based on 100% of the provisional sales prices. Until final settlement occurs, adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices for the estimated month of settlement. For changes in metal quantities upon receipt of new information and assays, the provisional sales quantities are also adjusted. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations between the date initially recorded and the date of final settlement. If a significant decline in metal prices occurs between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the sales proceeds received based on the provisional invoice. The Company’s sales based on a provisional price contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward exchange price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. Effective January 1, 2018, the Company will adopt changes to its revenue recognition policy. Refer to Recently Issued Accounting Pronouncements below for further details. Income and Mining Taxes The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The financial statement effects of changes in tax law are recorded as discrete items in the period enacted as part of income tax expense or benefit from continuing operations, regardless of the category of income or loss to which the deferred taxes relate. The Company determines if the assessment of a particular income tax effect is “complete” or “incomplete” as of the due date of the financial statements. Those effects for which the accounting is determined to be complete are reported in the enactment period financial statements. For those effects determined to be incomplete, the Company determines whether a reasonable estimate of those effects can be made. If a reasonable estimate can be made, the estimate is recognized as a provisional amount. If a reasonable estimate cannot be made, no effects are recognized as provisional amounts until the first reporting period in which a reasonable estimate can be made. Provisional amounts are updated when additional information becomes available and the evaluation of such information is complete. The Company completes the accounting for all provisional amounts within a measurement period of up to one year from the enactment date. Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes. As such, taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies. Newmont’s operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. Newmont and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the tax liabilities. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax benefit (expense). In certain jurisdictions, Newmont must pay a portion of the disputed amount to the local government in order to formally appeal the assessment. Such payment is recorded as a receivable if Newmont believes the amount is collectible. Valuation of Deferred Tax Assets The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence. Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified. The Company looks to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date and the existence and frequency of prior cumulative pretax losses. Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to: · Earnings history; · Projected future financial and taxable income based upon existing reserves; and long-term estimates of commodity prices; · The duration of statutory carry forward periods; · Prudent and feasible tax planning strategi |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 3 DISCONTINUED OPERATIONS The details of our Net income (loss) from discontinued operations, net of tax are set forth below: Years Ended December 31, 2017 2016 2015 Holt royalty obligation $ (44) $ (50) $ 27 Batu Hijau contingent consideration 6 — — Batu Hijau operations — 517 418 Loss on sale of Batu Hijau — (600) — Net income (loss) from discontinued operations $ (38) $ (133) $ 445 The Holt Royalty Obligation Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. St. Andrew was acquired by Kirkland Lake Gold Ltd. (formerly known as Kirkland Lake Gold Inc.) in January 2016. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a royalty on production from Holt, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the royalty obligation, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the royalty and it will increase or decrease with changes in gold price, discount rate, and gold production scenarios. Refer to Note 16 for additional information on the Holt royalty. At December 31, 2017 and 2016, the estimated fair value of the Holt royalty obligation was $243 and $187, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations, net of tax. For the years ended 2017, 2016 and 2015, the Company recorded a gain (loss) of $(44), $(50) and $27, net of tax benefit (expense) of $24, $19 and $(11), respectively, related to the Holt royalty obligation. During 2017, 2016 and 2015, the Company paid $12, $11 and $12, respectively, related to the Holt royalty obligation. The Batu Hijau Transaction On November 2, 2016, Nusa Tenggara Partnership B.V. (owned 56.25% by the Company and 43.75% by Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation) completed the sale and purchase agreement with PT Amman Mineral Internasional (“PTAMI”) to sell its 56% ownership interest in PTNNT, which operated the Batu Hijau copper and gold mine in Indonesia. In addition, NVL (USA) Limited (“NVL”), a wholly owned subsidiary of the Company, (i) sold a loan made to PT Pukuafu Indah (“PTPI”), secured by PTPI’s 17.8% interest in PTNNT, to PTAMI, and (ii) consented to PT Indonesia Masabaga Investama (“PTIMI”) selling its 2.2% interest in PTNNT to PTAMI with sale proceeds applied toward repayment of an NVL loan to PTIMI. Through these transactions, Newmont has effectively sold its 48.5% economic interest in PTNNT to PTAMI and has no remaining interest. The sales proceeds received by the Company for its 48.5% economic interest in PTNNT includes $920 in cash attributable to Newmont that was received, as well as contingent payments totaling up to $403 attributable to Newmont. The contingent payments include (i) a Metal Price Upside deferred payment of up to $133, (ii) an Elang Development deferred payment of $118 and (iii) a Contingent Payment of up to $152. The contingent payment amounts are determined based on certain metal price, shipment or project development criteria, as described below. The Metal Price Upside contingent payment of up to $133 is payable for any quarter in which the London Metal Exchange (“LME”) quarterly average copper price exceeds $3.75 per pound. It is calculated as 30% of the product of (i) the difference between the LME quarterly average copper price and $3.75 and (ii) 96.5% of the total pounds of copper contained in shipments of mineral products mined or produced from Batu Hijau that arrived in a buyers’ or customers’ designated port for delivery during the previous quarter. The Elang Development deferred payment totaling $118 is payable no later than the first anniversary of the first shipment of any form of saleable copper, gold or silver product produced from the Elang development area. The Contingent Payment of up to $152 is payable (i) as a payment of $76 if in any year after 2022 in which there is production from Phase 7 of the Batu Hijau mine and the LME annual average copper price is $2.75 or more per pound and (ii) if the full Contingent Payment amount has not already been paid, a payment of $76 in any year in which the LME annual average copper price in respect to such year is $3.25 or more per pound and after both the second anniversary of the first shipment of concentrate (or any other form of saleable copper, gold or silver product) produced from the Elang development area and December 31, 2023. The Contingent Payment and the Elang Development deferred payment deeds are derivatives under ASC 815 and were recorded at fair value of $23 and $13 as of December 31, 2017 and 2016, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded net of tax to Net income (loss) from discontinued operations . For the year ended 2017, the Company recorded a gain of $6, net of tax expense of $4 related to the contingent consideration. For further information about the valuation of the Batu Hijau Contingent Consideration, see Note 16. Newmont recognized a loss on sale of $600 in 2016, calculated using the gross cash proceeds of $920 and certain contingent payments deemed to be derivatives, less the carrying value of the PTNNT disposal group and selling costs. Net income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations that relates to Batu Hijau consists of the following: Years Ended December 31, 2016 2015 Sales $ 1,668 $ 1,644 Costs and expenses: Costs applicable to sales (1) 668 772 Depreciation and amortization 134 137 Reclamation and remediation 14 13 Advanced projects, research and development 2 7 General and administrative 10 6 Other expense (income), net (1) 10 827 945 Interest expense, net (15) (28) Income (loss) before income and mining tax and other items 826 671 Income and mining tax benefit (expense) (309) (253) Net income (loss) from discontinued operations 517 418 Loss on sale of Batu Hijau, net of tax (600) — (83) 418 Net loss (income) attributable to noncontrolling interests (274) (224) Net income (loss) from discontinued operations attributable to Newmont stockholders $ (357) $ 194 (1) Excludes Depreciation and amortization and Reclamation and remediation. The Consolidated Statements of Comprehensive Income (Loss) were not impacted by discontinued operations as PTNNT did not have any Other comprehensive income (loss) . Cash flows from Batu Hijau consisted of the following: Years Ended December 31, 2016 2015 Net cash provided by (used in) operating activities $ 880 $ 569 Net cash provided by (used in) investing activities (46) (90) Net cash provided by (used in) financing activities (331) (225) Net cash provided by (used in) Batu Hijau discontinued operations $ 503 $ 254 During the second quarter and third quarter of 2016, the Company paid $140 and $190, respectively, extinguishing the PTNNT revolving credit facility. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS ACQUISITION | |
BUSINESS ACQUISITION | NOTE 4 BUSINESS ACQUISITION On June 8, 2015, the Company announced an agreement with AngloGold Ashanti Limited to acquire 100% ownership in the Cripple Creek & Victor (“CC&V”) gold mining business in Colorado. CC&V is a surface mine with heap leach operations that provides ore to a crusher and leaching facilities. During 2015, the Company received $675 in net proceeds from a common stock issuance. Newmont used the proceeds, supplemented with cash from the Company’s balance sheet, to fund the acquisition. On August 3, 2015, the Company completed the acquisition of CC&V for $821, plus a 2.5% net smelter return royalty on future gold production from underground ore which had no fair value at the acquisition date. In connection with the acquisition, the Company incurred acquisition costs of $12 for the year ended December 31, 2015 which were recorded in Other expense, net . The acquisition is not material to the Company's results of operations, individually or in the aggregate; as a result, no pro forma financial information is provided. The Company retained an independent third-party appraiser to assist in the valuation. In valuing acquired assets and assumed liabilities, fair values were based on, but not limited to quoted market prices, where available; expected future cash flows; current replacement cost for similar capacity for certain fixed assets; market rate assumptions for contractual obligations; and appropriate discount rates. The fair value measurement of inventories, stockpiles and ore on leach pads, property, plant and mine development, and reclamation and remediation were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. In accordance with the acquisition method of accounting, the purchase price of CC&V has been allocated to the acquired assets and assumed liabilities based on their estimated fair values on the acquisition date. The fair value estimates were based on, but not limited to quoted market prices, where available; expected future cash flows based on estimated reserve quantities; costs to produce and develop reserves; current replacement cost for similar capacity for certain fixed assets; and appropriate discount rates and growth rates. The excess of the total consideration over the estimated fair value of the amounts initially assigned to the identifiable acquired assets and liabilities assumed has been recorded as mineral interest. During the second quarter of 2016, the final valuation of acquired assets and liabilities assumed was completed. There were no adjustments to the purchase price allocation since December 31, 2015. The following table summarizes the final purchase price allocation for CC&V: Assets: Cash and cash equivalents $ 2 Inventories 15 Stockpiles and ore on leach pads 75 Other current assets 1 Current assets 93 Property, plant and mine development, net 671 Stockpiles and ore on leach pads 175 Total assets $ 939 Liabilities: Debt $ 3 Accounts payable 28 Employee-related benefits 2 Other current liabilities 12 Current liabilities 45 Debt 10 Reclamation and remediation liabilities 63 Total liabilities $ 118 Net assets acquired $ 821 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 5 SEGMENT INFORMATION The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Australia and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and has chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other. Although they are not required to be included in this footnote, they are provided for reconciliation purposes. In the first quarter of 2017, the Company renamed its Asia Pacific reporting segment to Australia. Segment results for the prior period have been retrospectively revised to reflect this change. Unless otherwise noted, we present only the reportable segments of our continuing operations in the tables below. The financial information relating to the Company’s segments is as follows: Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2017 Carlin $ 1,217 $ 795 $ 221 $ 18 $ 139 $ 2,292 $ 174 Phoenix: Gold 257 181 47 Copper 88 55 15 Total Phoenix 345 236 62 5 31 884 25 Twin Creeks 465 226 63 9 163 1,142 52 Long Canyon 219 59 74 23 63 1,083 10 CC&V 575 285 124 10 153 897 33 Other North America — — 1 26 (29) 676 9 North America 2,821 1,601 545 91 520 6,974 303 Yanacocha 671 504 134 41 (64) 1,388 51 Merian 643 238 91 14 297 967 105 Other South America — — 14 43 (72) 1,661 — South America 1,314 742 239 98 161 4,016 156 Boddington: Gold 981 562 113 Copper 227 108 22 Total Boddington 1,208 670 135 2 372 2,108 80 Tanami 514 251 67 21 181 688 108 Kalgoorlie 458 234 19 9 190 403 21 Other Australia — — 6 8 (37) 54 5 Australia 2,180 1,155 227 40 706 3,253 214 Ahafo 439 268 72 24 70 1,685 181 Akyem 594 272 154 10 152 1,049 26 Other Africa — — 1 6 (13) 1 — Africa 1,033 540 227 40 209 2,735 207 Corporate and Other — — 11 53 (504) 3,585 10 Consolidated $ 7,348 $ 4,038 $ 1,249 $ 322 $ 1,092 $ 20,563 $ 890 (1) Includes an increase in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $866. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2016 Carlin $ 1,182 $ 797 $ 200 $ 19 $ 144 $ 2,278 $ 173 Phoenix: Gold 248 164 51 Copper 86 99 27 Total Phoenix 334 263 78 1 (20) 917 22 Twin Creeks 563 234 51 8 266 1,135 37 Long Canyon 27 4 5 20 (3) 1,123 119 CC&V 491 216 108 11 150 1,042 59 Other North America — — 1 12 (11) 696 9 North America 2,597 1,514 443 71 526 7,191 419 Yanacocha 792 525 275 35 (1,152) 1,549 83 Merian 117 34 12 24 46 984 221 Other South America — — 14 36 (55) 1,677 — South America 909 559 301 95 (1,161) 4,210 304 Boddington: Gold 973 530 110 Copper 164 126 24 Total Boddington 1,137 656 134 1 328 2,075 65 Tanami 575 238 82 13 242 621 145 Kalgoorlie 467 257 19 5 184 379 20 Other Australia — — 9 8 (25) 63 4 Australia 2,179 1,151 244 27 729 3,138 234 Ahafo 436 313 94 28 (8) 1,734 87 Akyem 590 235 127 8 214 1,232 22 Other Africa — — 1 2 (8) 2 — Africa 1,026 548 222 38 198 2,968 109 Corporate and Other — — 10 51 (506) 3,524 11 Consolidated $ 6,711 $ 3,772 $ 1,220 $ 282 $ (214) $ 21,031 $ 1,077 (1) Includes a decrease in accrued capital expenditures of $56; consolidated capital expenditures on a cash basis were $1,133. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2015 Carlin $ 1,027 $ 790 $ 198 $ 16 $ 12 $ 2,240 $ 270 Phoenix: Gold 221 163 42 Copper 109 91 21 Total Phoenix 330 254 63 3 (12) 1,002 25 Twin Creeks 551 246 51 8 240 1,141 48 Long Canyon — — — 22 (22) 1,003 128 CC&V 91 44 19 3 23 1,043 66 Other North America — — 1 8 8 711 8 North America 1,999 1,334 332 60 249 7,140 545 Yanacocha 1,070 564 320 37 40 2,628 100 Merian — — — 12 (12) 764 356 Other South America — — 14 46 (66) 1,688 — South America 1,070 564 334 95 (38) 5,080 456 Boddington: Gold 910 570 113 Copper 171 140 26 Total Boddington 1,081 710 139 3 222 2,066 58 Tanami 504 225 82 7 192 539 98 Waihi (2) 136 55 14 3 59 — 12 Kalgoorlie 360 272 21 3 65 391 21 Other Australia — — 16 5 (46) 71 5 Australia 2,081 1,262 272 21 492 3,067 194 Ahafo 387 206 53 24 74 1,752 92 Akyem 548 212 96 8 227 1,241 45 Other Africa — — — 2 (13) 2 — Africa 935 418 149 34 288 2,995 137 Corporate and Other (3) — — 15 72 (696) 6,848 38 Consolidated $ 6,085 $ 3,578 $ 1,102 $ 282 $ 295 $ 25,130 $ 1,370 (1) Includes an increase in accrued capital expenditures of $59; consolidated capital expenditures on a cash basis were $1,311. (2) In October 2015, the Company sold the Waihi mine. (3) Total assets for Corporate and Other include assets held for sale related to our discontinued operations. See Note 3 for additional information regarding our discontinued operations. Revenues from sales attributed to countries based on the customer’s location were as follows: Years Ended December 31, 2017 2016 2015 United Kingdom $ 5,490 $ 5,413 $ 4,954 Switzerland 657 148 39 Korea 384 298 334 Philippines 310 283 208 Germany 168 191 166 Canada 96 124 104 United States 91 70 69 Japan 87 59 111 Other 65 125 100 $ 7,348 $ 6,711 $ 6,085 As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. In 2017, sales to Toronto Dominion Bank were $2,727 (37%) and JPMorgan Chase were $1,380 (19%). In 2016, sales to Toronto Dominion Bank were $1,829 (27%), JPMorgan Chase were $1,471 (22%), Bank of Nova Scotia were $1,067 (16%) and HSBC were $952 (14%) of total gold sales. In 2015, sales to Bank of Nova Scotia were $1,074 (14%) and sales to Credit Agricole Corporate and Investment were $762 (10%) of total gold sales. The Company sells copper predominantly in the form of copper concentrates which are sold directly to smelters located in Asia and to a lesser extent North America and Europe. The copper concentrates are sold under long-term supply contracts with processing fees based on the demand for these concentrates in the global market place. In Nevada, the Company also produces copper cathode which is sold to one customer in the North American market. Long-lived assets, excluding deferred tax assets, investments and restricted assets, were as follows: At December 31, 2017 2016 United States $ 6,490 $ 6,625 Australia 2,833 2,753 Ghana 2,401 2,423 Peru 2,008 2,109 Suriname 835 818 Other 11 — $ 14,578 $ 14,728 |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 12 Months Ended |
Dec. 31, 2017 | |
RECLAMATION AND REMEDIATION | |
RECLAMATION AND REMEDIATION | NOTE 6 RECLAMATION AND REMEDIATION The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on current legal and regulatory requirements. In December 2016, t he Company completed a comprehensive study of the Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. As a result, the Company recorded an increase to the reclamation obligation at Yanacocha of $425. This increase to the reclamation obligation resulted in an increase to the recorded asset retirement cost asset of $348 related to the producing portions of the mine and a non-cash charge to reclamation expense for the quarter ended December 31, 2016 of $77 related to the areas of Yanacocha’s operations no longer in production. The increase to the reclamation obligation was primarily due to higher estimated long-term water management costs, heap leach earthworks and related support activities. There were minimal changes to the updated closure plan in 2017 prior to submitting to Peruvian regulators in September 2017. The regulators completed their review and approved the updated closure plan in November 2017. The Company’s Reclamation and remediation expense consisted of: Years Ended December 31, 2017 2016 2015 Reclamation adjustments $ 32 $ 83 $ 5 Reclamation accretion 100 75 74 Total reclamation expense 132 158 79 Remediation adjustments 40 16 170 Remediation accretion 5 5 4 Total remediation expense 45 21 174 $ 177 $ 179 $ 253 Reclamation expense decreased in 2017 compared to 2016 and increased in 2016 compared to 2015, primarily due to the 2016 revision in Yanacocha’s closure plan which resulted in an increase in reclamation expense related to operations no longer in production. In 2017, additional reclamation adjustments were recorded for revisions in the closure plan for the Rain mine, which is a non-operating site that is a part of the Carlin mine complex. Remediation expense increased in 2017 compared to 2016, primarily due to increased water management and monitoring costs at the Resurrection and San Luis remediation sites, as well as increased costs for project activities at the Midnite mine and Dawn mill sites. Remediation expense decreased in 2016 compared to 2015, primarily due to increased costs in 2015 related to the Midnite mine site. The following is a reconciliation of Reclamation and remediation obligations: Reclamation Remediation Total Balance at January 1, 2016 $ 1,300 $ 318 $ 1,618 Additions, changes in estimates and other 441 5 446 Payments and other (24) (30) (54) Accretion expense 75 5 80 Balance December 31, 2016 1,792 298 2,090 Additions, changes in estimates and other 107 30 137 Payments and other (34) (44) (78) Accretion expense 100 5 105 Balance December 31, 2017 $ 1,965 $ 289 $ 2,254 The current portion of reclamation was $59 and $28 at December 31, 2017 and 2016, respectively, and is included in Other current liabilities . The current portion of remediation was $41 and $33 at December 31, 2017 and 2016, respectively, and is included in Other current liabilities . At December 31, 2017 and 2016, $1,965 and $1,792, respectively, were accrued for reclamation obligations relating to operating and formerly operating properties. In addition, the Company is involved in several matters concerning environmental remediation obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At December 31, 2017 and 2016, $289 and $298, respectively, were accrued for such environmental remediation obligations. As of December 31, 2017 and 2016, environmental remediation liabilities for historic mining operations were lower by $72 and $66, respectively, as a result of discounting water treatment costs using discount rates ranging between 2% and 5% and between 2% and 6%, respectively. Additions, changes in estimates and other, increased the reclamation obligations by $107 in 2017, primarily due to revised cost estimates from ongoing study work being conducted at Rain, a non-operating site that is a part of the Carlin mine complex in North America and Boddington in Australia, as well as increased disturbance from 2017 mining activity at Akyem. The reclamation obligations increased by $441 in 2016, primarily due to the revision in Yanacocha’s closure plan outlined above. Additions of $30 in 2017 for remediation obligations at Corporate were primarily due to higher estimated water management and monitoring costs at the Resurrection and San Luis remediation sites, as well as increased costs for project activities at the Midnite mine and Dawn Mill remediation sites. Additions of $5 in 2016 for remediation obligations were primarily related to the Con mine. Non-current restricted cash held for purposes of settling asset retirement obligations was $38 and $23, at December 31, 2017 and 2016, respectively. Of the amount in 2017, $25 is related to the Ahafo and Akyem mines in Ghana, Africa, $6 is related to the Con mine in Yellowknife, NWT, Canada, $6 is related to the San Jose Reservoir in Yanacocha, Peru, and $1 is related to the Midnite mine site in Washington State. Of the amount in 2016, $14 is related to the Ahafo and Akyem mines, $7 is related to the Con mine, $1 is related to the Midnite mine site and $1 is related to the San Jose Reservoir. Included in Other non-current assets at December 31, 2017 and 2016, are $64 and $61, respectively, of non-current restricted investments, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir, Midnite mine site and for various locations in Nevada. |
IMPAIRMENT OF LONG-LIVED ASSETS
IMPAIRMENT OF LONG-LIVED ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
IMPAIRMENT OF LONG-LIVED ASSETS | |
IMPAIRMENT OF LONG-LIVED ASSETS | NOTE 7 IMPAIRMENT OF LONG-LIVED ASSETS Years Ended December 31, 2017 2016 2015 North America $ — $ 1 $ — South America 4 976 44 Australia 6 — — Africa — — 6 Corporate and Other 4 — 6 $ 14 $ 977 $ Impairment of long-lived assets totaled $14, $977 and $56 in 2017, 2016 and 2015, respectively. The 2017 impairments related to assets in South America, Australia and Corporate. The 2016 impairments were primarily related to Yanacocha, reported in the South America segment. The Company determined that an impairment indicator existed as the Company completed a comprehensive study of the Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. As a result of the impairment indicator, a recoverability test was performed and the Company concluded the Property, plant and mine development, net at Yanacocha was impaired. The Company measured the impairment by comparing the total fair value of existing operations using the income approach and the fair value of exploration potential using the income and market approach to the carrying value of the corresponding assets. Refer to Note 16, Fair Value Accounting, for detail of the assumptions used in the determination of the fair value of the long-lived assets tested for impairment. As a result, a non-cash impairment charge of $970 was recorded during the fourth quarter of 2016. For further information regarding management’s assessment of the Yanacocha closure plan, see Note 6. The 2015 impairments were primarily related to assets in South America, non-essential equipment unrelated to operations at Corporate and Other and an intangible asset in Africa. |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER EXPENSE, NET | |
OTHER EXPENSE, NET | NOTE 8 OTHER EXPENSE, NET Years Ended December 31, 2017 2016 2015 Restructuring and other $ 14 $ 32 $ 34 Acquisition cost adjustments 2 10 19 Ghana Investment Agreement — — 27 Other 16 16 36 $ 32 $ 58 $ 116 Restructuring and other . Restructuring and other primarily represents certain costs associated with severance and outsourcing for all periods presented. The costs also include system integration costs during 2016 related to our acquisition of CC&V in August 2015. Acquisition cost adjustments. Acquisition cost adjustments represent net adjustments to the contingent consideration and related liabilities associated with the acquisition of the final 33.33% interest in Boddington in June 2009 for all periods presented. The adjustments also include costs during the third and fourth quarter of 2015 related to our acquisition of CC&V in August 2015. Ghana Investment Agreement. In December 2015, the Company paid $27 for the ratification of revised investment agreements by Ghana’s Parliament. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME, NET. | |
OTHER INCOME, NET | NOTE 9 OTHER INCOME, NET Years Ended December 31, 2017 2016 2015 Foreign currency exchange, net $ (28) $ (9) $ 31 Interest 28 11 6 Gain on asset and investment sales, net 23 108 118 Tanami insurance proceeds 13 — — Loss on debt repayment — (55) — Impairment of investments — — (115) Gain on deconsolidation of TMAC — — 76 Other 18 14 19 $ 54 $ 69 $ 135 Foreign currency exchange, net. Although the majority of the Company’s balances are denominated in U.S. dollars, foreign currency exchange gains (losses) are recognized on balances to be satisfied in local currencies. These balances primarily relate to the timing of payments for employee-related benefits and other current liabilities in Australia, Peru and Suriname. Gain on asset and investment sales, net. In June 2017, the Company exchanged its interest in the Fort á la Corne joint venture for equity ownership in Shore Gold Inc. (“Shore Gold”), resulting in a pre-tax gain of $15. For additional information regarding this transaction, see Note 18. In March 2016, the Company sold its investment in Regis Resources Ltd. (“Regis”) for $184, resulting in a pre-tax gain of $103. The cost of the investment sold was determined using the specific identification method. In March 2015, the Company recorded a gain of $38 from sales of Hemlo mineral rights in Canada and the Relief Canyon mine in Nevada. In July 2015, the Company recorded a gain of $53 related to the sale of its 60.64% ownership interest in European Gold Refinery Holdings (“EGR”). In October 2015, the Company recorded a gain of $10 related to the sale of Waihi. Tanami insurance proceeds. In June 2017, the Company recorded business interruption insurance proceeds of $13 associated with the heavy rainfall at Tanami during the first quarter of 2017. Loss on debt repayment. In 2016, the Company recorded charges of $55 from the debt tender offer on its 2019 Senior Notes and 2039 Senior Notes in March 2016 and the extinguishment of its 2022 Senior Notes and associated forward starting swaps, reclassified from Other Comprehensive Income (Loss) , in November 2016. Impairment of investments. During 2015, the Company recognized investment impairments for other-than-temporary declines in value, primarily related to holdings of Regis for $72, Gabriel Resources Ltd. for $24, Pilot Gold for $8 and UltraGold for $7. Gain on deconsolidation of TMAC. In July 2015, Newmont determined that TMAC Resources, Inc. (“TMAC”) was no longer considered a variable interest entity and should no longer be consolidated into Newmont’s financial results due to a number of financing events, which took place during the year. Newmont deconsolidated the assets, liabilities and noncontrolling interest related to TMAC and recognized a gain of $76. The fair value of the retained investment was valued utilizing the market approach applying the initial public offering share price. Newmont’s retained investment in TMAC is accounted for as an equity method investment. |
INCOME AND MINING TAXES
INCOME AND MINING TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME AND MINING TAXES | |
INCOME AND MINING TAXES | NOTE 10 INCOME AND MINING TAXES The Company’s Income and mining tax benefit (expense) consisted of: Years Ended December 31, 2017 2016 2015 Current: United States $ (40) $ 101 $ 18 Foreign (290) (230) (211) (330) (129) (193) Deferred: United States (773) (547) 54 Foreign (22) 113 (252) (795) (434) (198) $ (1,125) $ (563) $ (391) The Company’s Income (loss) before income and mining tax and other items consisted of: Years Ended December 31, 2017 2016 2015 United States $ 245 $ (4) $ (283) Foreign 847 (210) 578 $ 1,092 $ (214) $ 295 The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons: Years Ended December 31, 2017 2016 2015 Income (loss) before income and mining tax and other items $ 1,092 $ (214) $ 295 Tax at statutory rate 35 % $ (382) 35 % $ 75 35 % $ (103) Reconciling items: Re-measurement due to the Tax Cuts and Jobs Act (1) 28 (306) — — — — Tax restructuring related to the Tax Cuts and Jobs Act (2) 36 (395) — — — — Percentage depletion (7) 81 40 85 (19) 56 Change in valuation allowance on deferred tax assets 7 (78) (226) (485) 51 (153) Mining and other taxes 4 (41) (29) (61) 20 (58) U.S. tax effect of noncontrolling interest attributable to non-U.S. investees — 1 (100) (213) 41 (120) Tax impact on sale of assets — — 17 36 7 (20) Effect of foreign earnings, net of credits — (4) — — (6) 19 Other — (1) — — 4 (12) Income and mining tax expense 103 % $ (1,125) (263) % $ (563) 133 % $ (391) (1) Includes the release of a valuation allowance on AMT credits of $48 and elimination of $8 of deferred tax assets due to changes to executive compensation deductions. (2) See discussion below. Factors that Significantly Impact Effective Tax Rate The Tax Cuts and Jobs Act The most influential factors that impact the effective tax rate for the current reporting period stem from the Tax Cuts and Jobs Act (“the Act”) which was enacted on December 22, 2017. The Act significantly changes U.S. income tax law and is the first major overhaul of the federal income tax code in more than 30 years. Key provisions of the Act that impact Newmont include: (i) reduction of the U.S. federal corporate income tax rate from 35% to 21%, (ii) repeal of the Corporate Alternative Minimum Tax (“AMT”) system (iii) replacement of the worldwide taxation system with a territorial tax system which exempts certain foreign operations from U.S. taxation, and (iv) further limitation on the deductibility of certain executive compensation. Other provisions of the Act that do not have a current impact on Newmont but could impact the Company in the future include: (i) modification of earnings calculations for certain foreign subsidiaries that were previously tax deferred to a one-time tax, (ii) creation of a new minimum tax on certain foreign earnings and a new base erosion anti-abuse tax, (iii) repeal of the domestic production deductions, (iv) allowance for immediate capital expensing of certain qualified property, (v) limitation on the deduction for net interest expense incurred by a U.S. corporation, and (vi) modification and/or repeal of a number of other international provisions. The Company has completed its assessment for the income tax effects of the Act for the following items: · Repeal of the corporate AMT system: The Company’s AMT credits as of December 31, 2017 will be refunded over the next five years. The Company has determined that it will receive a refund of existing AMT credits equal to $52. The valuation allowance previously recorded against these credits has been released for this amount and a tax benefit of $48 was recorded as a component of income tax expense from continuing operations. The Company’s accounting policy regarding the balance sheet presentation of the credits is to continue to reflect the balance as a deferred tax asset. Once a return is filed claiming the credit, the amount will be presented as a tax receivable. · One-time tax on deferred foreign earnings: The Company does not have any undistributed earnings from its foreign subsidiaries and is not impacted by the one-time transition tax. Going forward, the Company will recognize any effects of global intangible low-taxed income or GILTI, as a component of income tax expense in the period the tax arises. The Company has not completed its assessment for the income tax effects of the Act but has recorded a reasonable estimate of the effects for the items below. The Company anticipates completing the analysis for these estimates, within the one year measurement period for the following items: · Re-measurement of deferred tax assets and liabilities: Deferred tax assets and liabilities attributable to the U.S. were re-measured from 35% to the reduced tax rate of 21%. The Company recorded a provisional amount of $346 for the re-measurement. The Company is still analyzing certain aspects of the Act and refining the calculations, which could potentially affect the measurement of these balances. Information needed to complete the accounting is as follows: (i) the completion of the analysis needed to appropriately separate foreign attributable assets from U.S. assets, and (ii) filing of both U.S. and foreign tax returns for the 2017 tax years relative to the subsidiaries. · Tax restructuring decisions implemented as a result of the Act: Due to changes the Act made to certain international tax provisions, it was prudent for the Company to restructure the holding of its non-U.S. operations for U.S. federal income tax purposes. This was accomplished by executing and filing various “check the box” elections made with respect to certain non-U.S. subsidiaries of the Company. The elections resulted in the conversions of these subsidiaries from branches and/or foreign partnerships to regarded foreign corporations. The conversion resulted in the application of the accounting rules which restrict the recognition of a deferred tax asset for the excess of the tax basis over the financial reporting basis of these investments (outside basis difference) until such time that it is apparent that the temporary difference will reverse in the foreseeable future. The Company recorded a provisional amount of $395 relating to the removal of certain deferred tax assets carried on the U.S. parent books. It also includes the removal of the deferred tax asset representing the future foreign tax credits attributable to these operations. Information needed to complete the accounting is as follows: (i) the completion of the analysis needed to appropriately separate foreign attributable assets from U.S. assets, and (ii) filing of both U.S. and foreign tax returns for the 2017 tax years relative to the subsidiaries. · Elimination of executive compensation exemptions: The Act made changes to the $1 million limit on deductible compensation paid to certain executive employees. The Act eliminated exemptions for qualified performance based compensation and compensation paid after termination and expanded the number of employees to which the limit applies. The Company recorded a provisional amount of $8 for the impact of these changes related to the elimination of deferred tax assets that are no longer realizable. The Company is still analyzing the impact of transitional rules in the Act. The provisional amount may change upon the release of further guidance addressing these rules. The Company has not completed its assessment for the income tax effects of the Act and is unable to calculate a reasonable estimate of such effect for the items below. The Company anticipates completing the analysis for these items once regulatory guidance is available, within the one year measurement period: · Changes to international taxation: The Act modifies various aspects of international taxation and the application of these changes to the current foreign tax credit system is unclear. These rules are complex and require further clarity through the issuance of regulations and final technical interpretation. The Company has a deferred tax asset of $558 relating to foreign tax credits that carry a full valuation allowance. Depending upon the final interpretation of the new Act, it may be more likely than not that realization of a portion of the credits may occur. The Company has determined that a reasonable estimate cannot be made at this time. Information needed to complete the accounting is as follows: (i) final technical analysis of the new tax law, and (ii) finalization of necessary calculations, including an assessment on how these new provisions will impact the utilization of these credits in the future. · Sequestration charge on AMT credits: As stated above, the Company expects to receive a refund of existing AMT credits as of December 31, 2017 of $52. The refund may or may not be subject to a 6.9% sequestration charge which could amount to $4. The application of this charge is unclear at this time. Clarification on the application of this charge is needed to complete the accounting for this item. · Deferred tax assets and liabilities on amounts in accumulated other comprehensive income: The re-measurement of the Company’s deferred tax assets and liabilities includes items that were originally recognized in accumulated other comprehensive income. The effect of the re-measurement of these items is reflected in income from continuing operations. As a result, the income tax effects of items within accumulated other comprehensive income do not reflect the appropriate tax rate. This discrepancy is often referred to as “stranded tax effects”. Recently proposed accounting guidance would require the Company to reclassify these stranded tax effects from accumulated other comprehensive income to retained earnings. Final guidance is needed to complete the accounting for this item. Other Percentage depletion allowances (tax deductions for depletion that may exceed the tax basis in the mineral reserves) are available to the Company under the income tax laws of the United States for operations conducted in the United States or through branches and partnerships owned by U.S. subsidiaries included in the consolidated United States income tax return. These deductions are highly sensitive to the price of gold and other minerals produced by the Company. A valuation allowance is provided for those deferred income tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, we consider estimated future taxable income as well as feasible tax planning strategies in each jurisdiction. If we determine that we will not realize all or a portion of our deferred income tax assets, we will increase our valuation allowance. Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. On the basis of available information at December 31, 2017, the Company has provided a valuation allowance for certain deferred tax assets where the Company believes it is more likely than not that some portion or all of such assets will not be realized. The valuation allowance totaled $2,795 and $3,844 at December 31, 2017 and 2016, respectively. The Company released $41 of valuation allowance on U.S. foreign tax credits due to a refund of Australian taxes related to the filing of amended tax returns for the 2011-2016 tax years. Changes in the Company’s U.S. foreign tax credits, due to U.S. tax restructuring related to U.S. tax reform, will not impact the effective tax rate. These credits were utilized to offset gains on the conversions of non-U.S. subsidiaries from branches to regarded foreign corporations, for which the Company will no longer carry a deferred tax asset on outside basis differences. Changes in valuation allowance for other items such as depreciation in marketable securities are reflected in Other comprehensive income (loss) . Mining taxes in Nevada, Peru and Australia represent state and provincial taxes levied on mining operations and are classified as income taxes as such taxes are based on a percentage of mining profits. The Company consolidates certain subsidiaries of which it does not own 100% of the outstanding equity. However, for tax purposes, the Company is only responsible for the income taxes on the portion of the taxable earnings attributable to its ownership interest of each consolidated entity. Components of the Company's deferred income tax assets (liabilities) are as follows: At December 31, 2017 2016 Deferred income tax assets: Property, plant and mine development $ 1,352 $ 1,109 Inventory 74 72 Reclamation and remediation 295 339 Net operating losses, capital losses and tax credits 1,276 2,226 Investment in partnerships and subsidiaries 86 909 Employee-related benefits 254 374 Derivative instruments and unrealized loss on investments 101 187 Other 263 229 3,701 5,445 Valuation allowances (2,795) (3,844) $ 906 $ 1,601 Deferred income tax liabilities: Property, plant and mine development $ (841) $ (639) Inventory (64) (167) Reclamation and remediation (12) — Net undistributed earnings of subsidiaries — (6) Derivative instruments and unrealized gain on investments — (4) Other (47) (46) (964) (862) Net deferred income tax assets (liabilities) $ (58) $ 739 These amounts reflect the classification and presentation that is reported for each tax jurisdiction in which the Company operates. Net deferred income tax assets and liabilities consist of: At December 31, 2017 2016 Non-current deferred income tax assets $ 537 $ 1,331 Non-current deferred income tax liabilities (595) (592) $ (58) $ 739 Company’s Unrecognized Tax Benefits At December 31, 2017, 2016 and 2015, the Company had $68, $68 and $62 of total gross unrecognized tax benefits, respectively. The additions to the unrecognized tax benefits in 2017 is a result of changes to positions in previously open tax years in the United States. The $30 addition to unrecognized tax benefits for positions taken in the current period is directly offset by a reduction in positions taken in a prior period, which is related to the sale of Batu Hijau. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2017 2016 2015 Total amount of gross unrecognized tax benefits at beginning of year $ 68 $ 62 $ 394 Additions for tax positions of prior years (27) 48 (24) Additions for tax positions of current year 30 — — Reductions due to settlements with taxing authorities — (23) (302) Reductions due to lapse of statute of limitations (3) (19) (6) Total amount of gross unrecognized tax benefits at end of year $ 68 $ 68 $ 62 At December 31, 2017, 2016 and 2015, $72, $64 and $35, respectively, represent the amount of unrecognized tax benefits that, if recognized, would impact the Company’s effective income tax rate. The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved. The Company continues to carry an assessment of tax and interest of $54 relating to a pre-acquisition transaction of Fronteer Gold, Inc. and subsidiaries. The taxing authority is disputing the tax attribute that was created as part of the pre-acquisition transaction claimed on Fronteer’s tax return. Due to procedural requirements, the Company paid half of the assessment in the third quarter of 2016. The Company intends to vigorously defend its position through all processes available. The Australian Taxation Office (“ATO”) is conducting a limited review of the Company’s prior year tax returns. The ATO is focused on reviewing an internal reorganization executed in 2011 when Newmont completed a restructure of the shareholding in the Company’s Australian subsidiaries. To date, the Company has responded to inquiries from the ATO and provided them with supporting documentation for the transaction and the Company’s associated tax positions. One aspect of the ATO review relates to an Australian capital gains tax that applies to sales or transfers of stock in certain types of entities. In the fourth quarter of 2017, the ATO notified the Company that it believes the 2011 reorganization is subject to capital gains tax of approximately $83 (including interest and penalties). The Company disputes this conclusion and intends to vigorously defend its position that the transaction is not subject to this tax. In the fourth quarter of 2017, the Company made a $25 payment to the ATO and lodged an Appeal with the Australian Federal Court to preserve its right to contest the ATO conclusions on this matter. The Company reflects this payment as a receivable as it believes that it will ultimately prevail in this dispute. The Company continues to monitor the status of the ATO’s review which it expects to continue into 2018. The Company and/or subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for years before 2011. As a result of (i) statute of limitations that will begin to expire within the next 12 months in various jurisdictions, and (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $10 to $15 in the next 12 months. The Company’s practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income and mining tax expense. At December 31, 2017 and 2016, the total amount of accrued income-tax-related interest and penalties included in the Consolidated Balance Sheets was $19 and $16, respectively. During 2017, 2016, and 2015 the Company accrued $3, $-, and released $1 of interest and penalties, respectively, through the Consolidated Statements of Operations. Valuation of Deferred Tax Assets The Company’s recent earnings history and forecasted future results, driven by its existing reserves and the forecasted long-term commodity prices, points to the full realization of those deferred tax assets in the U.S. and Australia not previously subject to a valuation allowance. We are in a cumulative three year loss in Peru and based on the declining production profile at Yanacocha, it is more likely than not that the net deferred tax assets in Peru will not be realized in the future. Accordingly, an additional valuation allowance of $40 on these assets was recognized at December 31, 2017. Due to changes the Act made to certain international tax provisions, it was prudent for the Company to restructure the holding of its non-U.S. operations for U.S. federal income tax purposes. This was accomplished by executing and filing various “check the box” elections made with respect to certain non-U.S. subsidiaries of the Company. The elections resulted in the conversions of these subsidiaries from branches and/or foreign partnerships to regarded foreign corporations. One result of these conversions is the Company no longer carries a U.S. deferred tax asset related to the investment in Yanacocha and released the valuation allowance of $292 which was originally recorded on December 31, 2016. The Company determined that the realization of deferred tax assets related to certain carry forwards such as tax losses and tax pools in Canada, capital losses in the U.S. and Australia and foreign tax credits in the U.S., does not meet the more likely than not standard. Accordingly, these assets continue to be subject to a valuation allowance. At December 31, 2017, the valuation allowance related to these assets was $1,296. Realization is dependent not only on generating sufficient taxable income in the period that net deferred tax assets reverse but also on the character/classification of that income. The alternative minimum tax was removed by the Act, and the Company’s alternative minimum tax credit carryforward will be refunded over a 5 year period. Therefore, the Company removed $48 of the remaining valuation allowance on alternative minimum tax credits for December 31, 2017. The re-measurement of the Company’s deferred tax assets due to the Tax Cuts and Jobs Act also impacted related valuation allowances; see Schedule II-Valuation and Qualifying Accounts. Refer to Note 2 for additional risk factors that could impact the Company’s ability to realize the deferred tax assets. Tax Loss Carryforwards, Foreign Tax Credits, and AMT Credits At December 31, 2017 and 2016, the Company had (i) $498 and $216 of net operating loss carry forwards, respectively; and (ii) $610 and $837 of tax credit carry forwards, respectively. At December 31, 2017 and 2016, $92 and $134, respectively, of net operating loss carry forwards are attributable to Australia and France for which current tax law provides no expiration period. The remaining net operating loss carry forward in Canada will expire by 2036. Valuation allowances have been recorded on net operating loss carry forwards where the Company believes, based on the available evidence, it is more likely than not that the net operating losses will not be realized. Tax credit carry forwards for 2017 and 2016 of $558 and $779 consist of foreign tax credits available in the United States; substantially all such credits not utilized will expire at the end of 2027. Other credit carry forwards at the end of 2017 and 2016 in the amounts of $52 and $58, respectively, represent alternative minimum tax credits attributable to the Company’s U.S. operations for which the current tax law provides no period of expiration and which will be refunded by the end of 2023. Differences in tax rates and other foreign income tax law variations make the ability to fully utilize all available foreign income tax credits on a year-by-year basis highly dependent on the selling price of the gold and copper produced by the Company and the costs of production, since lower selling prices or higher costs can result in having insufficient sources of taxable income in the United States to utilize all available foreign tax credits. Such credits have limited carry back and carry forward periods and can only be used to reduce the United States income tax imposed on foreign earnings included in the annual United States consolidated income tax return. Accordingly, a valuation allowance has been established. Other No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. |
EQUITY INCOME (LOSS) OF AFFILIA
EQUITY INCOME (LOSS) OF AFFILIATES | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY INCOME (LOSS) OF AFFILIATES | |
EQUITY INCOME (LOSS) OF AFFILIATES | NOTE 11 EQUITY INCOME (LOSS) OF AFFILIATES Years Ended December 31, 2017 2016 2015 TMAC Resources Inc. $ (6) $ (7) $ (7) Minera La Zanja S.R.L. (5) — (30) Euronimba Ltd. (5) (6) (9) Novo Resources Corp. — — 1 $ $ $ TMAC Resources Inc. Newmont holds a 28.79% interest in TMAC. Refer to Note 18 for additional information. Minera La Zanja S.R.L. Newmont holds a 46.94% interest in Minera La Zanja, S.R.L. (“La Zanja”), a gold mine near the city of Cajamarca, Peru. The remaining interest is held by Compañia de Minas Buenaventura, S.A.A. (“ Buenaventura”). The mine commenced operations in September 2011 and is operated by Buenaventura. Euronimba Ltd. Newmont holds a 45% interest in Euronimba Ltd. (“Euronimba”), with the remaining interests held by BHP Billiton (45%) and Areva (10%). Euronimba owns 95% of the Nimba iron ore project located in the Republic of Guinea. Novo Resources Corp. In September 2016, Novo Resources Corp. (“Novo”) issued 765,115 common shares to Talga Resources Ltd. for payment of the purchase price for certain projects. As a result, Newmont now accounts for its investment in Novo at fair value as it no longer qualifies as an equity method investment. For a more detailed discussion, see Note 18. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | NOTE 12 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS Years Ended December 31, 2017 2016 2015 Merian $ 69 $ 10 $ (3) Yanacocha (57) (579) (126) Other (1) (1) (11) $ 11 $ (570) $ (140) Newmont has a 75% economic interest in Merian, with the remaining interests held by Staatsolie. Newmont consolidates Merian in its Consolidated Financial Statements as the primary beneficiary in the variable interest entity. Newmont consolidates Merian through Suriname, LLC (formerly known as Surgold), a company wholly owned by Newmont. Merian reached commercial production in October 2016. In December 2017, Yanacocha repurchased 64 million shares (a 5% ownership) from International Finance Corporation, which resulted in Newmont’s ownership in Yanacocha increasing from 51.35% to 54.05%, with the remaining interests held by Buenaventura (which increased from 43.65% to 45.95%). Newmont consolidates Yanacocha in its Consolidated Financial Statements due to a majority voting interest. The following summarizes the consolidated assets and liabilities of Merian. At December 31, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 27 $ 50 Inventories 79 57 Stockpiles and ore on leach pads 21 23 Other current assets (1) 6 37 133 167 Non-current assets: Property, plant and mine development, net 769 746 Other non-current assets (2) 8 8 Total assets $ 910 $ 921 Current liabilities: Other current liabilities (3) $ 50 $ 43 50 43 Non-current liabilities: Reclamation and remediation liabilities 17 11 Other non-current liabilities (4) 1 — Total liabilities $ 68 $ 54 (1) Other current assets include trade and other accounts receivable, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include accounts payable, employee-related benefits and other current liabilities. (4) Other non-current liabilities include employee related benefits. . |
NEWMONT EQUITY AND INCOME (LOSS
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE | |
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE | NOTE 13 NEWMONT EQUITY AND INCOME (LOSS) PER SHARE Newmont Common Stock In September 2015, Newmont filed a shelf registration statement on Form S-3 under which it can issue an indeterminate number or amount of common stock, preferred stock, debt securities, guarantees of debt securities and warrants from time to time at indeterminate prices. It also included the resale of an indeterminate amount of common stock, preferred stock and debt securities from time to time upon exercise of warrants or conversion of convertible securities. Net Income (Loss) per Common Share Basic income (loss) per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation. Years Ended December 31, 2017 2016 2015 Net income (loss) attributable to Newmont stockholders: Continuing operations $ (60) $ (220) $ (1) Discontinued operations (38) (407) 221 $ (98) $ (627) $ 220 Weighted average common shares (millions): Basic 533 530 516 Effect of employee stock-based awards 2 2 — Diluted 535 532 516 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ (0.11) $ (0.41) $ — Discontinued operations (0.07) (0.77) 0.43 $ (0.18) $ (1.18) $ 0.43 Diluted: Continuing operations $ (0.11) $ (0.41) $ — Discontinued operations (0.07) (0.77) 0.43 $ (0.18) $ (1.18) $ 0.43 The Company reported a loss from continuing operations attributable to Newmont stockholders for the years ended December 31, 2017, 2016 and 2015. Therefore, the potentially dilutive effects at December 31, 2017, 2016 and 2015 were not included in the computation of diluted loss per common share attributable to Newmont stockholders because their inclusion would have been anti-dilutive to the computation. In July 2007, Newmont issued $575 of Convertible Senior Notes due in 2017 that, if converted, may have had a dilutive effect on the Company’s weighted average number of common shares. The effect of contingently convertible instruments on diluted earnings per share was calculated under the net share settlement method in accordance with ASC guidance. The conversion price for the notes exceeded the Company’s share price for the years ended December 31, 2016, and 2015 therefore, no additional shares were included in the computation of diluted weighted average common shares. In July 2017, the 2017 Notes were retired. |
EMPLOYEE-RELATED BENEFITS
EMPLOYEE-RELATED BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE-RELATED BENEFITS | |
EMPLOYEE-RELATED BENEFITS | NOTE 14 EMPLOYEE-RELATED BENEFITS At December 31, 2017 2016 Current: Accrued payroll and withholding taxes $ 264 $ 262 Peruvian workers’ participation and other bonuses 22 13 Employee pension benefits 7 12 Other post-retirement plans 5 4 Accrued severance 1 2 Other employee-related payables 10 11 $ 309 $ 304 Non-current: Employee pension benefits $ 129 $ 180 Accrued severance 162 140 Other post-retirement benefit plans 81 80 Other employee-related payables 14 11 $ 386 $ 411 Pension and Other Benefit Plans The Company provides defined benefit pension plans to eligible employees. Benefits are generally based on years of service and the employee’s average annual compensation. Various international pension plans are based on local laws and requirements. Pension costs are determined annually by independent actuaries and pension contributions to the qualified plans are made based on funding standards established under the Employee Retirement Income Security Act of 1974, as amended. The following tables provide a reconciliation of changes in the plans’ benefit obligations and assets’ fair values for 2017 and 2016: Pension Benefits Other Benefits 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 1,025 $ 948 $ 84 $ 92 Service cost 29 28 1 2 Interest cost 44 45 4 4 Actuarial loss (gain) 73 60 2 (11) Amendments — 2 (2) — Settlement payments (10) (11) — — Benefits paid (40) (47) (3) (3) Projected benefit obligation at end of year $ 1,121 $ 1,025 N/A N/A Accumulated benefit obligation $ 1,098 $ 1,010 $ 86 $ 84 Change in fair value of assets: Fair value of assets at beginning of year $ 833 $ 760 $ — $ — Actual return on plan assets 130 59 — — Employer contributions 72 72 3 3 Settlement payments (10) (11) — — Benefits paid (40) (47) (3) (3) Fair value of assets at end of year $ 985 $ 833 $ — $ — Unfunded status, net $ 136 $ 192 $ 86 $ 84 The Company’s qualified pension plans are funded with cash contributions in compliance with Internal Revenue Service rules and regulations. The Company’s non-qualified and other benefit plans are currently not funded, but exist as general corporate obligations. The information contained in the above tables presents the combined funded status of qualified and non-qualified plans. The Company reviews its retirement benefit programs on a regular basis and will consider market conditions and the funded status of its qualified pension plans in determining whether additional contributions are appropriate in calendar year 2018. The following table provides the net pension and other benefits amounts recognized in the Consolidated Balance Sheets at December 31: Pension Benefits Other Benefits 2017 2016 2017 2016 Accrued employee benefit liability $ 136 $ 192 $ 86 $ 84 Accumulated other comprehensive income (loss): Net actuarial gain (loss) Prior service credit Less: Income taxes $ (236) $ (254) $ 28 $ 32 The following table provides components of the net periodic pension and other benefits costs for the years ended December 31: Pension Benefit Costs Other Benefit Costs 2017 2016 2015 2017 2016 2015 Service cost $ 29 $ 28 $ 30 $ 1 $ 2 $ 3 Interest cost Expected return on plan assets — — — Amortization, net Net periodic benefit cost $ $ $ $ (2) $ — $ Settlements 5 6 3 — — — Total benefit cost $ 45 $ 46 $ 43 $ (2) $ — $ 5 The following table provides the components recognized in Other comprehensive income (loss) for the years ended December 31: Pension Benefits Other Benefits 2017 2016 2015 2017 2016 2015 Net loss (gain) $ 5 $ 61 $ 24 $ — $ (11) $ (62) Amortization, net (30) (25) (27) 7 6 3 Settlements (5) (6) (3) — — — Total recognized in other comprehensive income (loss) $ (30) $ 30 $ (6) $ 7 $ (5) $ (59) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 15 $ 76 $ 37 $ 5 $ (5) $ (54) Actuarial losses in excess of 10 percent of the greater of the projected benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service period of the current active participants. The expected recognition of amounts in Accumulated other comprehensive income (loss) is $40 and $(8) for net actuarial loss and prior service credit for pension benefits in 2018, respectively, and $(1) and $(6) for net actuarial gain and prior service credit for other benefits in 2018, respectively. The significant assumptions used in measuring the Company’s benefit obligation were mortality assumptions and discount rate. The mortality assumptions used to measure the pension and other post retirement obligation incorporate future mortality improvements from tables published by the Society of Actuaries. During 2014, the Society of Actuaries released new RP-2014 mortality tables with MP-2014 generational projection scales, which are believed to better reflect mortality improvements and are to be used in calculating defined benefit pension obligations and other benefits obligations. These mortality scales have been updated by the Society of Actuaries every year since 2014. The Company has utilized the respective years’ updated generational projection scales to measure the pension and other post retirement obligations as of December 31, 2017 and 2016. Yield curves matching the Company’s benefit obligations were derived using a model based on high quality corporate bond data from Bloomberg. The model develops a discount rate by selecting a portfolio of high quality corporate bonds whose projected cash flows match the projected benefit payments of the plan. The resulting curves were used to identify a weighted average discount rate for the Company of 3.77% and 4.36% at December 31, 2017 and 2016, respectively, based on the timing of future benefit payments. The significant assumptions used in measuring the Company’s net periodic benefit cost were discount rate and expected return on plan assets: Pension Benefits Other Benefits Years Ended December 31, Years Ended December 31, 2017 2016 2015 2017 2016 2015 Weighted average assumptions used in measuring the net periodic benefit cost: Discount rate % % % % % % Expected return on plan assets % % % N/A N/A N/A The expected long-term return on plan assets used for each period in the three years ended December 31, 2017 was determined based on an analysis of the asset returns over multiple time horizons for the Company’s actual plan and for other comparable U.S. corporations. At December 31, 2017, Newmont has estimated the expected long-term return on plan assets to be 7.25% in calculating its benefit obligation, which will be used in determining future net periodic benefit cost. Determination of the long-term return on plan assets is a result of considering the most recent capital market forecasts and the plans’ current allocation as well as the actual return on plan assets as compared to the expected return on assets over the last 5 years. The average actual return on plan assets during the 29 years ended December 31, 2017 approximated 8.49%. Newmont has two pension calculations for salaried U.S. employees. The first is a “Final Average Pay” pension calculation which pays a monthly amount to employees in retirement based in part on their highest five year eligible earnings and years of credited service. The second is the “Stable Value” calculation which provides a lump sum payment to employees upon retirement. The amount of the lump sum is the total of annual accruals based on the employee’s eligible earnings and years of service during that year. The benefits accrued under the Final Average Pay formula were frozen on June 30, 2014 for those eligible employees. Beginning July 1, 2014, all future accruals are based on the terms and features of the Stable Value calculation. The pension plans employ an independent investment firm which invests the assets of the plans in certain approved funds that correspond to specific asset classes with associated target allocations. The goal of the pension fund investment program is to achieve prudent actuarial funding ratios while maintaining acceptable risk levels. The investment performance of the plans and that of the individual investment firms is measured against recognized market indices. The performance of the pension funds are monitored by an investment committee comprised of members of the Company’s management, which is advised by an independent investment consultant. With the exception of global capital market economic risks, the Company has identified no significant portfolio risks associated to asset classes. The following is a summary of the target asset allocations for 2017 and the actual asset allocation at December 31, 2017. Actual at December 31, Asset Allocation Target 2017 U.S. equity investments 11 % 11 % International equity investments 12 % 12 % World equity fund (U.S. and International equity investments) 20 % 20 % Fixed income investments 49 % 49 % Other 8 % 8 % The following table sets forth the Company’s pension plan assets measured at fair value at December 31, 2017 and 2016: Fair Value at December 31, 2017 2016 Plan Assets: Cash and cash equivalents $ 3 $ 2 Commingled funds 982 831 $ 985 $ 833 Cash and cash equivalent instruments are valued based on quoted market prices in active markets, which are primarily money market securities and U.S. Treasury securities. The pension plans’ commingled fund investments are managed by several fund managers and are valued at the net asset value per share for each fund. Although the majority of the underlying assets in the funds consist of actively traded equity securities and bonds, the unit of account is considered to be at the fund level. These funds require less than a month’s notice for redemptions and can be redeemed at the net asset value per share. The assumed health care trend rate used to measure the expected cost of benefits is 6.20% in 2018 and decreases gradually each year to 5.00% in 2022, which is used thereafter. A one percent change in the assumed health care cost trend rates would have the following effects: One-percentage-point One-percentage-point Increase Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 2 $ (2) Cash Flows Benefit payments expected to be paid to pension plan participants are as follows: $55 in 2018, $57 in 2019, $61 in 2020, $65 in 2021, $69 in 2022, and $375 in total over the five years from 2023 through 2026. Benefit payments made to other benefit plan participants are expected to be as follows: $4 in 2018, $5 in 2019, $5 in 2020, $5 in 2021, $5 in 2022, and $27 in total over the five years from 2023 through 2026. Savings Plans The Company has two qualified defined contribution savings plans in the U.S.; one that covers salaried and non-union hourly employees and one that covers substantially all hourly union employees. In addition, the Company has one non-qualified supplemental savings plan for salaried employees whose benefits under the qualified plan are limited by federal regulations. When an employee meets eligibility requirements, the Company matches 100% of employee contributions of up to 6% of eligible earnings for the salaried and hourly union plans. Hourly non-union employees receive an additional retirement contribution to the participant’s retirement contribution account equal to an amount which is paid and determined by the Company. Matching contributions are made in cash. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 15 STOCK-BASED COMPENSATION The Company has stock incentive plans for directors, executives and eligible employees. Stock incentive awards include restricted stock units (“RSUs”), performance leveraged stock units (“PSUs”), and strategic stock units (“SSUs”). The SSU program was discontinued and no additional SSUs were granted after 2015. The Company issues new shares of common stock to satisfy exercises and vesting under all of its stock incentive awards. Prior to 2012, the Company also granted options to purchase shares of stock with exercise prices not less than fair market value of the underlying stock at the date of grant. At December 31, 2017, 11,339,741 shares were authorized for future stock incentive plan awards. Employee Stock Options Stock options granted under the Company’s stock incentive plans vest over periods of three years or more and are exercisable over a period of time not to exceed 10 years from the grant date. The value of each option award is estimated at the grant date using the Black-Scholes option pricing model. There were no options granted in 2017, 2016 or 2015. At December 31, 2017, there were 1,108,899 shares outstanding and exercisable, at a weighted average exercise price of $51.74, with a weighted average remaining contractual life of 2 years. Other Stock-Based Compensation The Company grants RSUs to executives and eligible employees. Awards are determined as a target percentage of base salary and, for eligible employees, are subject to a personal performance factor. RSUs vest over periods of three years or more. Prior to vesting, holders of RSUs do not have the right to vote the underlying shares; however, executives accrue dividend equivalents on their RSUs, which are paid at the time the RSUs vest. The accrued dividend equivalents are not paid if shares are forfeited. The RSUs are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one share of the Company’s common stock for each restricted stock unit. The Company grants PSUs to eligible executives, based upon certain measures of shareholder return. These measures include absolute shareholder return and relative shareholder return compared to our proxy peer group. The actual number of PSUs that vest are determined at the end of a three year performance period. From 2013 to 2015, the Company granted SSUs to eligible executives, based upon certain measures of adjusted earnings before income tax, depreciation and amortization (“Adjusted EBITDA”), based on a targeted number of shares at the beginning of each performance period. At the end of the performance period, one third of the SSUs are issued without restriction in the form of common stock, and two-thirds of the award is paid in RSUs that vest in equal annual increments at the second and third anniversaries of the start of the performance period. A summary of the status and activity of non-vested RSUs, PSUs, and SSUs for the year ended December 31, 2017 is as follows: RSU PSU SSU Weighted Weighted Weighted Average Average Average Number of Grant-Date Number of Grant-Date Number of Grant-Date Shares Fair Value Shares Fair Value Shares Fair Value Non-vested at beginning of year 2,948,345 $ 26.05 3,027,876 $ 37.90 157,476 $ 25.26 Granted 1,191,380 $ 35.01 1,475,133 $ 41.92 — $ — Vested (1,199,020) $ 25.12 (1,594,869) $ 34.12 (154,296) $ 25.56 Forfeited (324,165) $ 27.56 (313,570) $ 39.26 (3,180) $ 25.56 Non-vested at end of year 2,616,540 $ 30.39 2,594,570 $ 42.27 — $ — The total intrinsic value and fair value of RSUs that vested in 2017, 2016 and 2015 was $43, $27 and $21, respectively. The total intrinsic value and fair value of PSUs that vested in 2017, 2016 and 2015 was $56, $16 and $3, respectively. The total intrinsic value and fair value of SSUs that vested in 2017, 2016 and 2015 was $6, $7 and $9, respectively. Cash flows resulting from excess tax benefits are classified as part of cash flows from operating activities. Excess tax benefits are realized tax benefits from tax deductions for vested RSUs, settled PSUs, and exercised options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. The Company recorded $5 in excess tax benefits for the year ended December 31, 2017 and no excess tax benefits for the years ended December 31, 2016 and 2015. At December 31, 2017, there was $43 and $38 of unrecognized compensation costs related to the unvested RSU and PSUs, respectively. This cost is expected to be recognized over a weighted average period of approximately two years. The Company recognized stock-based compensation as follows: Years Ended December 31, 2017 2016 2015 Stock-based compensation: Performance leveraged stock units $ 35 $ 34 $ 39 Restricted stock units 34 31 31 Strategic stock units 1 5 7 $ 70 $ 70 $ 77 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 16 FAIR VALUE ACCOUNTING Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,259 $ 3,259 $ — $ — Restricted cash 39 39 — — Trade receivable from provisional copper and gold concentrate sales, net 111 — 111 — Derivative instruments, net: Diesel forward contracts 6 — 6 — Marketable equity securities 165 165 — — Restricted marketable debt securities 55 17 38 — Restricted other assets 9 9 — — Batu Hijau contingent consideration 23 — — 23 $ 3,667 $ 3,489 $ 155 $ 23 Liabilities: Debt (1) $ 4,671 $ — $ 4,671 $ — Derivative instruments, net: Foreign exchange forward contracts 1 — 1 — Holt royalty obligation 243 — — 243 $ 4,915 $ — $ 4,672 $ 243 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted cash 26 26 — — Trade receivable from provisional copper and gold concentrate sales, net 113 — 113 — Marketable equity securities 56 56 — — Marketable debt securities Asset backed commercial paper 18 — — 18 Restricted marketable debt securities 49 16 33 — Restricted other assets 13 13 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 2,867 $ 146 $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Holt royalty obligation 187 — — 187 $ 5,093 $ — $ 4,906 $ 187 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,040 and $4,599 at December 31, 2017 and 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 17. All other fair value disclosures in the above table are presented on a gross basis. The Company’s cash and cash equivalent and restricted cash (which includes restricted cash and cash equivalent) instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments and restricted cash are valued based on quoted market prices in active markets and are primarily money market securities and U.S. Treasury securities. The Company’s net trade receivables from provisional copper and gold concentrate sales, which contain an embedded derivative and are subject to final pricing, are valued using quoted market prices based on forward curves for the particular metal. As the contracts themselves are not traded on an exchange, these receivables are classified within Level 2 of the fair value hierarchy. The Company’s derivative instruments are valued using pricing models, and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility, and correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities are calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The Company’s restricted marketable debt securities are primarily U.S. government issued bonds and international bonds. The Company’s South American debt securities are classified within Level 1 of the fair value hierarchy, and they are valued using published market prices of actively traded securities. The Company’s North American debt securities are classified within Level 2 of the fair value hierarchy as they are valued using pricing models which are based on prices of similar, actively traded securities. The Company’s restricted other assets primarily consist of bank issued certificate of deposits that have maturities over 90 days and marketable equity securities. Both are classified within Level 1 of the fair value hierarchy as their fair values are based on quoted prices available in active markets. The estimated value of the Batu Hijau contingent consideration was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future copper prices using the Company’s long-term copper price, and (iii) estimated production and/or development dates for Batu Hijau Phase 7 and the Elang projects in Indonesia. The contingent consideration is classified within Level 3 of the fair value hierarchy. The estimated fair value of the Holt royalty obligation was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold prices using the Company’s long-term gold price, (iii) various gold production scenarios from reserve and resource information and (iv) a weighted average discount rate. The royalty obligation is classified within Level 3 of the fair value hierarchy. The Company’s marketable debt securities consisted of investments in asset backed commercial paper. The Company reviewed the fair value of the asset backed commercial paper on a quarterly basis prior to the investments being redeemed in November 2016 and January 2017, respectively. The marketable debt securities were traded in markets that were not active, traded infrequently and had little price transparency. Therefore, the investments were classified as Level 3 of the fair value hierarchy. The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at December 31, 2017 and 2016: At December 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 23 Monte Carlo Discount rate 17.50 % Short-term copper price $ Long-term copper price $ Holt royalty obligation $ 243 Monte Carlo Discount rate 3.32 % Short-term gold price $ 1,275 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 402 -1,779 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332 - 1,570 The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Auction Backed Batu Hijau Holt Rate Commercial Contingent Total Royalty Total Securities (1) Paper (1) Consideration (2) Assets Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ — $ 25 $ 129 $ 129 Settlements (8) (3) — (11) (11) (11) Revaluation 1 3 — 4 69 69 Valuation — — 13 13 — — Fair value at December 31, 2016 $ — $ 18 $ 13 $ 31 $ 187 $ 187 Settlements — (18) — (18) (12) (12) Revaluation — — 10 10 68 68 Fair value at December 31, 2017 $ — $ — $ 23 $ 23 $ 243 $ 243 (1) The gain (loss) recognized is included in Other income, net. (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . During the year ended December 31, 2016, the Company performed a non-recurring fair value measurement (i.e. Level 3 of the fair value hierarchy) in connection with recoverability and impairment tests performed as a result of the updated Yanacocha long-term mining and closure plans and related increases in estimated future closure costs. The estimated fair value of Yanacocha’s existing operations was determined using (i) a country specific discount rate of 7.1%, (ii) a short-term gold price of $1,221 based on the fourth quarter average of the London PM fix, (iii) a long-term gold price of $1,300, and (iv) updated cash flow information from the Company’s business plan. The Company utilized an income and market approach for exploration potential. For further information regarding management’s assessment of the Yanacocha long-term mining and closure plans and the associated impairment charge, see Note 6 and Note 7, respectively. . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 17 DERIVATIVE INSTRUMENTS The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. Cash Flow Hedges The following foreign currency and diesel contracts were transacted for risk management purposes and qualify as cash flow hedges. The effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings . Foreign Currency Contracts The Company had the following foreign currency derivative contracts in Australia outstanding at December 31, 2017: Expected Maturity Date 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 6 6 Average rate ($/A$) 0.92 0.92 Newmont utilizes foreign currency contracts to reduce the variability of the U.S dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. The A$ hedges run through the first quarter of 2018. Diesel Fixed Forward Contracts The Company had the following diesel derivative contracts in Nevada, within North America, outstanding at December 31, 2017: Expected Maturity Date 2018 2019 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 16 2 18 Average rate ($/gallon) 1.63 1.72 1.64 Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts which run through the second quarter of 2019. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at December 31, 2017 and 2016: Fair Values of Derivative Instruments At December 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 1 $ — Diesel fixed forwards 6 — — — $ 6 $ — $ 1 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — $ 4 $ — $ 27 $ 1 As of December 31, 2017 and 2016, all hedging instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of December 31, 2017 and 2016 the potential effect of netting derivative assets against liabilities due to the master netting agreement was not significant. The following table shows the location and amount of gains (losses) reported in the Company’s Consolidated Financial Statements related to the Company’s hedges. Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2017 2016 2015 2017 2016 2015 2017 2016 2015 For the year ended December 31, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 5 $ 3 $ (39) $ 3 $ 9 $ (23) $ — $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (25) $ (37) $ (39) $ (2) $ (22) $ (27) $ (10) $ (33) $ (18) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ — $ 1 $ 2 $ — $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense, net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, net . Based on fair values at December 31, 2017, the amount to be reclassified from Accumulated other comprehensive income (loss) , net of tax to income for derivative instruments during the next 12 months is a loss of approximately $5. Batu Hijau Contingent Consideration Consideration received by the Company in conjunction with the sale of PTNNT included the Contingent Payment and the Elang Development deferred payment deeds, are classified as derivatives under ASC 815. See Note 3 for additional information regarding the sale and refer to Note 16 for more information regarding the inputs of the fair value determination. During the year, the estimated fair value of these derivatives increased by $10 to $23. This change, net of tax of $4, was included in Net income (loss) from discontinued operations in the Company’s Consolidated Statements of Comprehensive Income (Loss) and is recorded in Other non-current assets in the Company's Consolidated Balance Sheets. Provisional Gold and Copper Sales The Company’s provisional gold and copper concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. At December 31, 2017, Newmont had gold and copper sales of 76,000 ounces and 21 million pounds priced at an average of $1,299 per ounce and $3.26 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS | |
INVESTMENTS | NOTE 18 INVESTMENTS At December 31, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 38 $ 32 $ (8) $ 62 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (8) $ 101 Other marketable equity securities 4 — (2) 2 113 — (10) 103 Other investments, at cost 12 — — 12 Equity method investments: TMAC Resources Inc. (28.79%) 115 — — 115 Minera La Zanja S.R.L. (46.94%) 50 — — 50 165 — — 165 $ 290 $ — $ (10) $ 280 Non-current restricted investments: (1) Marketable debt securities $ 58 $ — $ (3) $ 55 Other assets 8 1 — 9 $ 66 $ 1 $ (3) $ 64 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Other investments, at cost 6 — — 6 Equity method investments: TMAC Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 205 $ 2 $ — $ 207 Non-current restricted investments: (1) Marketable debt securities $ 48 $ 1 $ — $ 49 Other assets 12 1 — 13 $ 60 $ 2 $ — $ 62 (1) Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations . These amounts are included in Other non-current assets . For further information regarding these amounts see Note 6. In November 2017, Newmont participated in the TMAC offering acquiring 2 million shares at a price of C$7.00 per share for $1 2 , maintaining its 28.79% ownership interest, which is diluted from 2016 due primarily to the exercising of warrants held by other shareholders. At December 31, 2016, Newmont’s ownership was diluted to 29.00% due primarily to the exercising of warrants held by other shareholders. In August 2017, Newmont sold approximately two-thirds of its interest in Novo for $15, resulting in a pre-tax gain of $5 recorded in Other income, net . Newmont continues to hold approximately 6 million common shares of Novo. The cost of the investment sold was determined using the specific identification method. In June 2017, Newmont exchanged its 31% interest in the Fort á la Corne joint venture in consideration for 54 million common shares and 1 million common share warrants in Shore Gold, valued at $15. Following the transaction, Newmont held a 19.9% equity ownership in Shore Gold. This investment has been classified as current. In May 2017, Newmont purchased 37 million common shares of Continental Gold Inc. (“Continental”) at C$4.00 per share. Continental is developing the high-grade Buriticá gold project in Colombia. Total consideration paid by Newmont was $109 for a 19.9% equity ownership in Continental. In April 2017, Newmont purchased 13 million units (one common share and one warrant per unit) of Goldstrike Resources Ltd. (“Goldstrike”) at a price of C$0.47 per share for $4. The investment secures rights to explore and develop the Plateau property located in a highly prospective mineralized trend in Canada’s Yukon Territory with Goldstrike, with the ability to earn additional ownership in the project through exploration investment. This investment has been classified as non-current. In January 2017, the Company’s remaining asset backed commercial paper was called at par resulting in no realized gain or loss. In November 2016, $8 of the Company’s auction rate securities were called at par resulting in no realized gain or loss. In September 2016, Novo issued 765,115 common shares to Talga Resources Ltd. for payment of the purchase price for certain projects. As a result of the issuance of these additional shares, Newmont’s ownership in Novo decreased to 19.97%. The Company determined that Novo no longer qualified as an equity method investment and is now accounting for this investment as an available for sale security. At December 31, 2016, Newmont recognized an unrealized loss of $4 in Accumulated other comprehensive income (loss) related to Novo. In March 2016, the Company sold its investment in Regis for $184, resulting in a pre-tax gain of $103 recorded in Other income, net . The cost of the investment sold was determined using the specific identification method. In February 2015, the Company’s $25 certificate of deposit matured. There were no investment impairments for other-than-temporary declines in value or significant changes in fair value on those available-for-sale securities previously impaired in 2017. In 2016, the Company recognized no investment impairments for other-than-temporary declines in value. As of December 31, 2016, there was a $28 increase in the fair value of available-for-sale securities previously impaired, primarily due to an $18 increase in Gabriel Resources Ltd, $4 increase in EMX Royalty Corp. (formerly known as Eurasian Minerals), $2 increase in Pilot Gold and a $2 increase in Loncor Resources. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
INVENTORIES | |
INVENTORIES | NOTE 19 INVENTORIES At December 31, At December 31, 2017 2016 Materials and supplies $ 416 $ 391 In-process 131 130 Concentrate and copper cathode 83 67 Precious metals 49 29 $ 679 $ 617 In 2017, the Company recorded write-downs of $14 and $2, classified as components of Costs applicable to sales and Depreciation and amortization, respectively. Of the write-downs in 2017, $4 were at Carlin, $4 at Phoenix, $4 at CC&V, and $4 at Yanacocha. In 2016, the Company recorded write-downs of $15 and $3, classified as components of Costs applicable to sales and Depreciation and amortization, respectively. Of the write-downs in 2016, $2 were at Carlin, $12 at Phoenix, $1 at Twin Creeks, and $3 at Yanacocha. In 2015, the Company recorded write-downs of $10 and $2, classified as components of Costs applicable to sales and Depreciation and amortization , respectively. Of the write-downs in 2015, $4 were at Carlin, $5 at Phoenix, and $3 at Yanacocha. |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 12 Months Ended |
Dec. 31, 2017 | |
Stockpiles and ore on leach pads | |
STOCKPILES AND ORE ON LEACH PADS | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 20 STOCKPILES AND ORE ON LEACH PADS At December 31, At December 31, 2017 2016 Current: Stockpiles $ 330 $ 393 Ore on leach pads 346 370 $ 676 $ 763 Non-current: Stockpiles $ 1,502 $ 1,506 Ore on leach pads 346 358 $ 1,848 $ 1,864 At December 31, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 441 $ 421 Phoenix 68 80 Twin Creeks 340 328 Long Canyon 34 9 CC&V 314 369 Yanacocha 270 367 Merian 25 27 Boddington 431 394 Tanami 4 19 Kalgoorlie 125 113 Ahafo 409 386 Akyem 63 114 $ 2,524 $ 2,627 In 2017, the Company recorded write-downs of $198 and $77, classified as components of Costs applicable to sales and Depreciation and amortization, respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2017, $83 were related to Carlin, $46 to Twin Creeks, $70 to Yanacocha, $31 to Ahafo, and $45 to Akyem. In 2016, the Company recorded write-downs of $283 and $131, classified as components of Costs applicable to sales and Depreciation and amortization , respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2016, $105 were related to Carlin, $22 to Twin Creeks, $187 to Yanacocha and $100 to Ahafo. In 2015, the Company recorded write-downs of $226 and $116, classified as components of Costs applicable to sales and Depreciation and amortization , respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2015, $163 were related to Carlin, $20 to Twin Creeks, $138 to Yanacocha and $21 to Boddington. |
PROPERTY, PLANT AND MINE DEVELO
PROPERTY, PLANT AND MINE DEVELOPMENT | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND MINE DEVELOPMENT | |
PROPERTY, PLANT AND MINE DEVELOPMENT | NOTE 21 PROPERTY, PLANT AND MINE DEVELOPMENT Depreciable At December 31, 2017 At December 31, 2016 Life Accumulated Net Book Accumulated Net Book (in years) Cost Depreciation Value Cost Depreciation Value Land $ 222 $ — $ 222 $ 218 $ — $ 218 Facilities and equipment - 27 15,979 (9,760) 6,219 15,115 (8,774) 6,341 Mine development - 27 5,260 (3,026) 2,234 4,773 (2,602) 2,171 Mineral interests - 27 1,975 (624) 1,351 1,975 (577) 1,398 Asset retirement cost - 27 876 (607) 269 833 (595) 238 Construction-in-progress 1,972 — 1,972 2,119 — 2,119 $ 26,284 $ (14,017) $ 12,267 $ 25,033 $ (12,548) $ 12,485 Leased assets included above in facilities and equipment - 27 $ 27 $ (15) $ 12 $ 27 $ (11) $ 16 Depreciable At December 31, 2017 At December 31, 2016 Life Accumulated Net Book Accumulated Net Book Mineral Interests (in years) Cost Depreciation Value Cost Depreciation Value Production stage - 22 $ 865 $ (624) $ 241 $ 816 $ (577) $ 239 Development stage 39 — 39 66 — 66 Exploration stage 1,071 — 1,071 1,093 — 1,093 $ 1,975 $ (624) $ 1,351 $ 1,975 $ (577) $ 1,398 Construction-in-progress at December 31, 2017 of $1,972 included $121 at North America related to construction at Carlin, CC&V, Long Canyon and other infrastructure at Nevada, $1,389 at South America primarily related to engineering and construction at Conga and Suriname and infrastructure at Yanacocha, $139 at Australia related to infrastructure at Tanami, Boddington, Kalgoorlie and the Tanami Power project and $316 at Africa related to the Subika underground project and Ahafo Mill expansion and other infrastructure at Akyem. There have been no costs capitalized during 2017 for the Conga project in South America, reported in Other South America. Construction-in-progress at December 31, 2016 of $2,119 included $141 at North America related to construction at Carlin, CC&V, Long Canyon and other infrastructure at Nevada, $1,425 at South America primarily related to engineering and construction at Conga and Suriname and infrastructure at Yanacocha, $155 at Australia related to infrastructure at Tanami, Boddington, and Kalgoorlie and $387 at Africa related to the Subika underground project and Ahafo Mill expansion and other infrastructure at Akyem and Ahafo. There have been no costs capitalized during 2016 for the Conga project in South America, reported in Other South America. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
DEBT | |
DEBT | NOTE 22 DEBT At December 31, 2017 At December 31, 2016 Current Non-Current Current Non-Current 2017 Convertible Senior Notes, net $ — $ — $ 561 $ — 2019 Senior Notes, net — — 624 2022 Senior Notes, net — 985 — 984 2035 Senior Notes, net — 594 — 594 2039 Senior Notes, net — 859 — 858 2042 Senior Notes, net — 984 — 984 Other (1) 4 14 5 5 $ 4 $ 4,061 $ 566 $ 4,049 (1) As of December 31, 2017, $14 of other financing obligations has been recorded related to the assets under construction for the Tanami Power project. All outstanding Senior Notes are unsecured and rank equally with one another. Scheduled minimum debt repayments are $- in 2018, $626 in 2019, $- in 2020, $- in 2021, $992 in 2022 and $2,474 thereafter. Scheduled minimum capital lease repayments are $4 in 2018, $3 in 2019, $1 in 2020, $1 in 2021, $1 in 2022 and $1 thereafter. In December 2017, the Company began the early phases of the Tanami Power project which includes the construction of a gas pipeline to the Tanami site, and construction and operation of two on-site power stations under agreements that qualify for build-to-suit lease accounting. As of December 31, 2017, the financing obligations under the build-to-suit arrangements were $14. Corporate Revolving Credit Facilities In May 2011, the Company entered into a $2,500 revolving credit facility, which was increased to $3,000 in May 2012. The facility is with a syndicate of financial institutions, provides for borrowings in U.S. dollars and contains a letter of credit-sub facility. Facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, non-current debt. Borrowings under the facility bear interest at a market based rate plus a margin determined by the Company’s credit rating. During 2017, the credit facility was extended to May 25, 2022. Fees and other debt issuance costs related to the extension of the facility were recorded as a reduction to the carrying value of debt and amortized over the term of the facility. At December 31, 2017, the Company had no borrowings outstanding under the facility. There was $80 outstanding on the sub-facility letters of credit at December 31, 2017 and 2016. In September 2013, the Company entered into a Letter of Credit Facility Agreement (“LC Agreement”) with BNP Paribas, New York Branch. The LC Agreement established a $175 letter of credit facility for a three year period to support reclamation obligations. In 2017, the agreement was extended to September 30, 2020. The LC Agreement had a balance of $172 at December 31, 2017 and 2016. 2017 Convertible Senior Notes In July 2017, the Company repaid the $575 outstanding aggregate principal amount of the 2017 Convertible Senior Notes at maturity. The Company’s Consolidated Balance Sheets report the following related to the 2017 Convertible Senior Notes: At December 31, 2016 Additional paid-in capital $ 123 Principal amount $ 575 Unamortized debt discount and issuance costs (14) Net carrying amount $ 561 For the years ended December 31, 2017, 2016, and 2015, the Company recorded $5, $9, and $9 of interest expense for the contractual interest coupon and $14, $24, and $23 of amortization of the debt discount, respectively, related to the Convertible Senior Notes. 2019 Term Loan In August 2016, the Company paid the remaining principal balance on the Term Loan of $275. No premiums were paid as a result of early payment. 2019 and 2039 Senior Notes In September 2009, the Company completed a two part public offering of $900 and $1,100 uncollateralized Senior Notes maturing on October 1, 2019 and October 1, 2039, respectively. Net proceeds from the 2019 and 2039 Senior Notes were $895 and $1,080, respectively. The 2019 Senior Notes pay interest semi-annually at a rate of 5.13% per annum and the 2039 Senior Notes pay semi-annual interest of 6.25% per annum. In March 2016, the Company purchased approximately $274 of its 2019 Senior Notes and $226 of its 2039 Senior Notes through a debt tender offer. The Company recorded a net pre-tax loss of $4 in Other income, net as a result of the debt tender offer. Additionally, the Company reclassified $2 in Interest expense, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized gains on the treasury rate lock contracts which were entered into upon issuance of the Senior Notes in 2009. Using prevailing interest rates on similar instruments, the estimated fair value of the 2019 and 2039 Senior Notes was $662 and $1,132, respectively, at December 31, 2017 and $678 and $981, respectively, at December 31, 2016. The foregoing fair value estimates were based on an independent third party pricing source and may or may not reflect the actual trading value of this debt. 2022 and 2042 Senior Notes In March 2012, the Company completed a two part public offering of $1,500 and $1,000 uncollateralized Senior Notes maturing on March 15, 2022 and March 15, 2042, respectively. Net proceeds from the 2022 and 2042 Senior Notes were $1,479 and $983, respectively. The 2022 Senior Notes pay interest semi-annually at a rate of 3.50% per annum and the 2042 Senior Notes pay semi-annual interest of 4.88% per annum. In November 2016, the Company purchased approximately $508 of its 2022 Senior Notes through a debt tender offer. The Company recorded a net pre-tax loss of $31 in Other income, net as a result of the debt tender offer. Additionally, the Company recognized a loss of $20 in Other income, net from Accumulated other comprehensive income (loss) related to the acceleration of the unrealized losses on the forward starting swap contracts which were previously settled with the issuance of the Senior Notes. Using prevailing interest rates on similar instruments, the estimated fair value of the 2022 and 2042 Senior Notes was $1,021 and $1,117, respectively, at December 31, 2017 and $1,016 and $959, respectively, at December 31, 2016. The foregoing fair value estimates were based on an independent third party pricing source and may or may not reflect the actual trading value of this debt. 2035 Senior Notes In March 2005, Newmont issued uncollateralized Senior Notes with a principal amount of $600 due April 2035 bearing an annual interest rate of 5.88%. Interest on the notes is paid semi-annually in April and October. Using prevailing interest rates on similar instruments, the estimated fair value of these Senior Notes was $739 and $656 at December 31, 2017 and 2016, respectively. The foregoing fair value estimate was based on an independent third party pricing source and may or may not reflect the actual trading value of this debt. Subsidiary Financings Ahafo Project Finance Facility In June 2015, the Company paid the remaining outstanding balance of $25 of the Ahafo Project Finance Facility. Debt Covenants The Company’s senior notes and revolving credit facility contain various covenants and default provisions including payment defaults, limitation on liens, leases, sales and leaseback agreements and merger restrictions. The corporate revolving credit facility contains a financial ratio covenant requiring the Company to maintain a net debt (total debt net of cash and cash equivalents) to total capitalization ratio of less than or equal to 62.50% in addition to the covenants noted above. Furthermore, the corporate revolving credit facility contains covenants limiting the sale of all or substantially all of the Company’s assets, certain change of control provisions and a negative pledge on certain assets. At December 31, 2017 and 2016, the Company and its related entities were in compliance with all debt covenants and provisions related to potential defaults. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 23 OTHER LIABILITIES At December 31, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 124 $ 99 Reclamation and remediation liabilities 100 61 Accrued capital expenditures 77 53 Royalties 63 52 Accrued interest 52 57 Holt royalty obligation 15 13 Taxes other than income and mining 7 8 Derivative instruments 1 27 Other 20 37 $ 459 $ 407 Other non-current liabilities: Holt royalty obligation $ 228 $ 174 Income and mining taxes 47 50 Power supply agreements 32 31 Social development obligations 22 25 Other 13 46 $ 342 $ 326 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 24 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Pension and Unrealized Gain Unrealized Gain Foreign Other (Loss) on (Loss) on Currency Post-retirement Cash flow Marketable Translation Benefit Hedge Securities, net Adjustments Adjustments Instruments Total Balance at December 31, 2015 $ (43) $ 116 $ (207) $ (200) $ (334) Change in other comprehensive income (loss) before reclassifications 45 2 (32) 11 26 Reclassifications from accumulated other comprehensive income (loss) (103) — 16 61 (26) Net current-period other comprehensive income (loss) (58) 2 (16) 72 — Balance at December 31, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (10) 12 (3) 5 4 Reclassifications from accumulated other comprehensive income (loss) (5) — 18 25 38 Net current-period other comprehensive income (loss) (15) 12 15 30 42 Balance at December 31, 2017 $ (116) $ 130 $ (208) $ (98) $ (292) Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations Years Ended December 31, 2017 2016 2015 Marketable securities adjustments: Sale of marketable securities $ (5) $ (103) $ — Other income, net Impairment of marketable securities — — 107 Other income, net Total before tax (5) (103) 107 Tax benefit (expense) — — — Net of tax $ (5) $ (103) $ 107 Pension and other post-retirement benefit adjustments: Amortization $ 23 $ 19 $ 24 (1) Settlements 5 6 3 Other expense, net Total before tax 28 25 27 Tax benefit (expense) (10) (9) (9) Net of tax $ 18 $ 16 $ 18 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 27 $ 59 $ 66 Costs applicable to sales Operating cash flow hedges (ineffective portion) — (1) (2) Other income, net Interest rate contracts 10 33 18 Interest expense, net Total before tax 37 91 82 Tax benefit (expense) (12) (30) (26) Net of tax $ 25 $ 61 $ 56 Total reclassifications for the period, net of tax $ 38 $ (26) $ 181 (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 for information on costs that benefit the inventory/production process. . |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 25 NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities is composed of the following: Years Ended December 31, 2017 2016 2015 Decrease (increase) in operating assets: Trade and other accounts receivables $ 66 $ (130) $ 97 Inventories, stockpiles and ore on leach pads (221) (302) (287) EGR refinery and other assets (1) — — (36) Other assets (52) (83) 49 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 18 26 8 EGR refinery and other liabilities (1) — — 36 Reclamation and remediation liabilities (78) (54) (61) Accrued tax liabilities 93 59 (12) $ (174) $ (484) $ (206) (1) In July 2015, the Company sold its ownership interest in EGR. . |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 26 SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31, 2017 2016 2015 Income and mining taxes paid, net of refunds $ 214 $ 85 $ 77 Interest paid, net of amounts capitalized $ 239 $ 276 $ 306 Non-cash Investing Activities During 2017, the Company recorded a non-cash increase to construction-in-progress included as part of Property, plant and mine development, net and a corresponding increase to financing obligations included in Debt of $14 under build-to-suit arrangements related to the Tanami Power project. During 2016 the Company entered into an agreement at Boddington waiving certain mining requirements which resulted in a non-cash increase to Other non-current assets of $22. Non-cash Financing Activities Distributions declared to noncontrolling interests of $170 and $21 for the years ended December 31, 2017 and 2016, respectively, represent distributions declared to Staatsolie from Merian. The Company paid $178 and $3 in distributions during the years ended December 31, 2017 and 2016, respectively, related to current and prior period distributions declared. Differences are due to timing of payments. There were no distributions prior to Merian achieving commercial production in October 2016. Cash calls requested from noncontrolling interests of $97, $81 and $90 for the years ended December 31, 2017, 2016 and 2015, respectively, represent cash calls requested from Staatsolie, of which $94, $66 and $109 had been paid as of December 31, 2017, 2016 and 2015, respectively. Differences are due to timing of receipts. |
OPERATING LEASE COMMITMENTS
OPERATING LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
OPERATING LEASE COMMITMENTS | |
OPERATING LEASE COMMITMENTS | NOTE 27 OPERATING LEASE COMMITMENTS The Company leases certain assets, such as equipment and facilities, under operating leases expiring at various dates through 2029. Future minimum annual lease payments are $8 in 2018, $7 in 2019, $5 in 2020, $2 in 2021, $1 in 2022 and $3 thereafter, totaling $26. Rent expense for 2017, 2016 and 2015 was $43, $43 and $45, respectively. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | NOTE 28 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan. Year Ended December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,934 $ 5,414 $ — $ 7,348 Costs and expenses: Costs applicable to sales (1) — 1,190 2,848 — 4,038 Depreciation and amortization 4 351 894 — 1,249 Reclamation and remediation — 49 128 — 177 Exploration — 43 136 — 179 Advanced projects, research and development — 21 122 — 143 General and administrative — 80 157 — 237 Impairment of long-lived assets — — 14 — 14 Other expense, net — 12 20 — 32 4 1,746 4,319 — 6,069 Other income (expense): Other income, net 41 6 7 — 54 Interest income - intercompany 149 43 41 (233) — Interest expense - intercompany (39) (4) (190) 233 — Interest expense, net (222) (7) (12) — (241) (71) 38 (154) — (187) Income (loss) before income and mining tax and other items (75) 226 941 — 1,092 Income and mining tax benefit (expense) (34) (21) (1,070) — (1,125) Equity income (loss) of affiliates 11 (124) (16) 113 (16) Net income (loss) from continuing operations (98) 81 (145) 113 (49) Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) (98) 81 (183) 113 (87) Net loss (income) attributable to noncontrolling interests: Continuing operations — — (11) — (11) Discontinued operations — — — — — — — (11) — (11) Net income (loss) attributable to Newmont stockholders $ (98) $ 81 $ (194) $ 113 $ (98) Comprehensive income (loss) $ (56) $ 92 $ (194) $ 113 $ (45) Comprehensive loss (income) attributable to noncontrolling interests — — (11) — (11) Comprehensive income (loss) attributable to Newmont stockholders $ (56) $ 92 $ (205) $ 113 $ (56) (1) Excludes Depreciation and amortization and Reclamation and remediation . Year Ended December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,972 $ 4,739 $ — $ 6,711 Costs and expenses: Costs applicable to sales (1) — 1,227 2,545 — 3,772 Depreciation and amortization 4 335 881 — 1,220 Reclamation and remediation — 24 155 — 179 Exploration — 35 113 — 148 Advanced projects, research and development — 11 123 — 134 General and administrative — 90 143 — 233 Impairment of long-lived assets — 1 976 — 977 Other expense, net — 30 28 — 58 4 1,753 4,964 — 6,721 Other income (expense): Other income, net (69) 14 124 — 69 Interest income - intercompany 132 — 46 (178) — Interest expense - intercompany (45) — (133) 178 — Interest expense, net (254) (6) (13) — (273) (236) 8 24 — (204) Income (loss) before income and mining tax and other items (240) 227 (201) — (214) Income and mining tax benefit (expense) 232 (55) (740) — (563) Equity income (loss) of affiliates (619) (1,344) 411 1,539 (13) Net income (loss) from continuing operations (627) (1,172) (530) 1,539 (790) Net income (loss) from discontinued operations — — (133) — (133) Net income (loss) (627) (1,172) (663) 1,539 (923) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 570 — 570 Discontinued operations — — (274) — (274) — — 296 — 296 Net income (loss) attributable to Newmont stockholders $ (627) $ (1,172) $ (367) $ 1,539 $ (627) Comprehensive income (loss) $ (627) $ (1,170) $ (665) $ 1,539 $ (923) Comprehensive loss (income) attributable to noncontrolling interests — — 296 — 296 Comprehensive income (loss) attributable to Newmont stockholders $ (627) $ (1,170) $ (369) $ 1,539 $ (627) (1) Excludes Depreciation and amortization and Reclamation and remediation . Year Ended December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,829 $ 4,256 $ — $ 6,085 Costs and expenses: Costs applicable to sales (1) — 1,225 2,353 — 3,578 Depreciation and amortization 4 319 779 — 1,102 Reclamation and remediation — 25 228 — 253 Exploration — 30 126 — 156 Advanced projects, research and development — 12 114 — 126 General and administrative — 72 169 — 241 Impairment of long-lived assets — 4 52 — 56 Other expense, net — 29 87 — 116 4 1,716 3,908 — 5,628 Other income (expense): Other income, net (10) 29 116 — 135 Interest income - intercompany 130 8 23 (161) — Interest expense - intercompany (20) — (141) 161 — Interest expense, net (289) (7) (1) — (297) (189) 30 (3) — (162) Income (loss) before income and mining tax and other items (193) 143 345 — 295 Income and mining tax benefit (expense) 67 (10) (448) — (391) Equity income (loss) of affiliates 346 (304) (7) (80) (45) Net income (loss) from continuing operations 220 (171) (110) (80) (141) Net income (loss) from discontinued operations — — 445 — 445 Net income (loss) 220 (171) 335 (80) 304 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 140 — 140 Discontinued operations — — (284) 60 (224) — — (144) 60 (84) Net income (loss) attributable to Newmont stockholders $ 220 $ (171) $ 191 $ (20) $ 220 Comprehensive income (loss) $ 364 $ (127) $ 422 $ (211) $ 448 Comprehensive loss (income) attributable to noncontrolling interests — — (139) 55 (84) Comprehensive income (loss) attributable to Newmont stockholders $ 364 $ (127) $ 283 $ (156) $ 364 (1) Excludes Depreciation and amortization and Reclamation and remediation . Year Ended December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ (129) $ (207) $ 2,686 $ — $ 2,350 Net cash provided by (used in) operating activities of discontinued operations — — (15) — (15) Net cash provided by (used in) operating activities (129) (207) 2,671 — 2,335 Investing activities: Additions to property, plant and mine development — (253) (613) — (866) Purchase of investments (114) — (16) — (130) Proceeds from sales of investments — — 35 — 35 Acquisitions, net — — (15) — (15) Proceeds from sales of other assets — — 5 — 5 Proceeds from sale of Batu Hijau — — — — — Other — 2 8 — 10 Net cash provided by (used in) investing activities of continuing operations (114) (251) (596) — (961) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (114) (251) (596) — (961) Financing activities: Repayment of debt (575) (3) (2) — (580) Distributions to noncontrolling interests — — (178) — (178) Dividends paid to common stockholders (134) — — — (134) Funding from noncontrolling interests — — 94 — 94 Acquisition of noncontrolling interests — — (48) — (48) Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Dividends paid to noncontrolling interests — — — — — Proceeds from stock issuance, net — — — — — Sale of noncontrolling interests — — — — — Net intercompany borrowings (repayments) 955 473 (1,428) — — Other (3) — (2) — (5) Net cash provided by (used in) financing activities of continuing operations 243 457 (1,564) — (864) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 243 457 (1,564) — (864) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 6 — 6 Net change in cash, cash equivalents and restricted cash — (1) 517 — 516 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 517 — 516 Cash, cash equivalents and restricted cash at beginning of period — 1 2,781 — 2,782 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,298 $ — $ 3,298 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 38 — 38 Total cash, cash equivalents and restricted cash $ — $ — $ 3,298 $ — $ 3,298 Year Ended December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 2,240 $ 1,342 $ 123 $ (1,782) $ 1,923 Net cash provided by (used in) operating activities of discontinued operations — — 869 — 869 Net cash provided by (used in) operating activities 2,240 1,342 992 (1,782) 2,792 Investing activities: Additions to property, plant and mine development — (261) (872) — (1,133) Purchases of investments — — (15) — (15) Proceeds from sales of investments — 8 187 — 195 Acquisitions, net — — (6) — (6) Proceeds from sales of other assets — — — 9 Proceeds from sale of Batu Hijau — — 920 — 920 Other — — (4) — (4) Net cash provided by (used in) investing activities of continuing operations — (253) 219 — (34) Net cash provided by (used in) investing activities of discontinued operations — — (46) — (46) Net cash provided by (used in) investing activities — (253) 173 — (80) Financing activities: Repayment of debt (1,307) (3) (2) — (1,312) Distributions to noncontrolling interests — — (3) — (3) Dividends paid to common stockholders (67) (1,512) (270) 1,782 (67) Funding from noncontrolling interests — — 66 — 66 Acquisition of noncontrolling interests — — (19) — (19) Payments for withholding of employee taxes related to stock-based compensation — (6) — — (6) Dividends paid to noncontrolling interests — — (146) — (146) Proceeds from stock issuance, net — — — — — Proceeds from sale of noncontrolling interests — — — — — Net intercompany borrowings (repayments) (866) (748) 1,614 — — Other — — 1 — 1 Net cash provided by (used in) financing activities of continuing operations (2,240) (2,269) 1,241 1,782 (1,486) Net cash provided by (used in) financing activities of discontinued operations — — (331) — (331) Net cash provided by (used in) financing activities (2,240) (2,269) 910 1,782 (1,817) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net change in cash, cash equivalents and restricted cash — (1,180) 2,077 — 897 Less net cash provided by (used in) Batu Hijau discontinued operations — — 503 — 503 — (1,180) 1,574 — 394 Cash, cash equivalents and restricted cash at beginning of period — 1,181 1,207 — 2,388 Cash, cash equivalents and restricted cash at end of period $ — $ 1 $ 2,781 $ — $ 2,782 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 25 — 25 Total cash, cash equivalents and restricted cash $ — $ 1 $ 2,781 $ — $ 2,782 Year Ended December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 7 $ 422 $ 1,159 $ — $ 1,588 Net cash provided by (used in) operating activities of discontinued operations — — 557 — 557 Net cash provided by (used in) operating activities 7 422 1,716 — 2,145 Investing activities: Additions to property, plant and mine development — (326) (985) — (1,311) Purchases of investments — — (17) — (17) Proceeds from sales of investments — 25 4 — 29 Acquisitions, net (821) — (2) — (823) Proceeds from sales of other assets 102 18 83 — 203 Proceeds from sale of Batu Hijau — — — — — Other — — (32) — (32) Net cash provided by (used in) investing activities of continuing operations (719) (283) (949) — (1,951) Net cash provided by (used in) investing activities of discontinued operations — — (90) — (90) Net cash provided by (used in) investing activities (719) (283) (1,039) — (2,041) Financing activities: Repayment of debt (200) (2) (27) — (229) Distributions of noncontrolling interests — — — — — Dividends paid to common stockholders (52) — — — (52) Funding from noncontrolling interests — — 109 — 109 Acquisition of noncontrolling interests — — (8) — (8) Payments for withholding of employee taxes related to stock-based compensation — — — — — Dividends paid to noncontrolling interests — — (3) — (3) Proceeds from stock issuance, net 675 — — — 675 Proceeds from sale of noncontrolling interests — 3 34 — 37 Net intercompany borrowings (repayments) 291 (57) (234) — — Other (2) 1 (1) — (2) Net cash provided by (used in) financing activities of continuing operations 712 (55) (130) — 527 Net cash provided by (used in) financing activities of discontinued operations — — (225) — (225) Net cash provided by (used in) financing activities 712 (55) (355) — 302 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (24) — (24) Net change in cash, cash equivalents and restricted cash — 84 298 — 382 Less net cash provided by (used in) Batu Hijau discontinued operations — — 254 — 254 — 84 44 — 128 Cash, cash equivalents and restricted cash at beginning of period — 1,097 1,163 — 2,260 Cash, cash equivalents and restricted cash at end of period $ — $ 1,181 $ 1,207 $ — $ 2,388 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ 1,181 $ 1,182 $ — $ 2,363 Restricted cash included in Other current assets — — — — — Restricted cash included in Other noncurrent assets — — 25 — 25 Total cash, cash equivalents and restricted cash $ — $ 1,181 $ 1,207 $ — $ 2,388 At December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Trade receivables — 18 106 — 124 Other accounts receivables — — 113 — 113 Intercompany receivable 2,053 4,601 3,484 (10,138) — Investments — — 62 — 62 Inventories — 181 498 — 679 Stockpiles and ore on leach pads — 196 480 — 676 Other current assets — 38 115 — 153 Current assets 2,053 5,034 8,117 (10,138) 5,066 Property, plant and mine development, net 17 3,067 9,210 (27) 12,267 Investments 106 4 170 — 280 Investments in subsidiaries 12,086 (311) — (11,775) — Stockpiles and ore on leach pads — 648 1,200 — 1,848 Deferred income tax assets 84 (1) 454 — 537 Non-current intercompany receivable 1,700 401 7 (2,108) — Other non-current assets — 255 310 — 565 Total assets $ 16,046 $ 9,097 $ 19,468 $ (24,048) $ 20,563 Liabilities: Debt $ — $ 1 $ 3 $ — $ 4 Accounts payable — 83 292 — 375 Intercompany payable 1,338 2,145 6,655 (10,138) — Employee-related benefits — 143 166 — 309 Income and mining taxes — 18 230 — 248 Other current liabilities 52 163 244 — 459 Current liabilities 1,390 2,553 7,590 (10,138) 1,395 Debt 4,040 4 17 — 4,061 Reclamation and remediation liabilities — 287 1,867 — 2,154 Deferred income tax liabilities — 121 474 — 595 Employee-related benefits — 222 164 — 386 Non-current intercompany payable 7 — 2,128 (2,135) — Other non-current liabilities — 18 324 — 342 Total liabilities 5,437 3,205 12,564 (12,273) 8,933 Equity: Newmont stockholders’ equity 10,609 5,892 5,883 (11,775) 10,609 Noncontrolling interests — — 1,021 — 1,021 Total equity 10,609 5,892 6,904 (11,775) 11,630 Total liabilities and equity $ 16,046 $ 9,097 $ 19,468 $ (24,048) $ 20,563 At December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 139 — 160 Other accounts receivables — 2 181 — 183 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 199 — 207 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 243 — 467 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 29 COMMITMENTS AND CONTINGENCIES General Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Operating Segments The Company’s operating and reportable segments are identified in Note 5. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other in Note 5. The Yanacocha matters relate to the South America reportable segment. The Fronteer matters relate to the North America reportable segment. Environmental Matters The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. In early 2015, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”), issued proposed water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria would modify the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards. In response, in February 2017, Yanacocha submitted its proposed modification to the previously approved Environmental Impact Assessment to the Mining Ministry (“MINEM”), which is still under review. After approval, MINEM may allow up to three years to develop and implement the modifications to the water management system. In the event Yanacocha is unsuccessful in implementing the modifications in compliance with the new regulations and deadlines, it could result in fines and penalties relating to potential intermittent non-compliant exceedances. In addition, if accepted the treatment options will result in increased costs. These impacts may adversely impact the future cost and financial performance of our operations in Peru. In December 2016, t he Company completed a comprehensive study of the Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. As a result, the Company recorded an increase to the reclamation obligation at Yanacocha of $425. There were minimal changes to the updated closure plan in 2017 prior to submitting to Peruvian regulators in September 2017. The regulators completed their review and approved the updated closure plan in November 2017. See Note 6 and Note 7 for additional information regarding the Company’s update to the Yanacocha long-term mining and closure plan for submission to the Peruvian regulators and the resulting non-cash impairment charge of $970 recorded for Yanacocha as of December 31, 2016. Estimated future reclamation costs are based principally on legal and regulatory requirements. At December 31, 2017 and 2016, $1,965 and $1,792, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $59 and $28 at December 31, 2017 and 2016, respectively, are included in Other current liabilities . In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $289 and $298 were accrued for such obligations at December 31, 2017 and 2016, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities . Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 44% greater or 0% lower than the amount accrued at December 31, 2017. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised. Refer to Note 6 for further information regarding reclamation and remediation. Details about certain of the more significant matters are discussed below. Newmont USA Limited - 100% Newmont Owned Ross-Adams mine site. By letter dated June 5, 2007, the U.S. Forest Service (“USFS”) notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the USFS. During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs. Newmont anticipates that the USFS will issue an Action Memorandum to select the preferred Removal Action alternative identified in the EE/CA. During the third quarter of 2016, Newmont received a notice of completion of work per the ASAOC from the USFS. Newmont is continuing discussions with the USFS and the U.S. Department of Justice to determine the next steps. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter. Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned Midnite mine site and Dawn mill site . Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the U. S. Environmental Protection Agency (“EPA”). As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite mine site cleanup costs; and (v) Newmont would post a surety bond for work at the site. During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite mine site in a lump sum payment of $42, which Newmont classified as restricted assets with interest on the Consolidated Balance Sheets for all periods presented. In 2016, Newmont completed the remedial design process (with the exception of the new water treatment plant (“WTP”) design which was awaiting the approval of the new NPDES permit). Subsequently, the new NPDES permit was received in 2017 and new WTP design will re-commence in 2018. The procured contractor continued implementing Phase 1 remedial actions during the 2017 construction season with Pit 4 backfill preparations. The Dawn mill site is regulated by the Washington Department of Health and is in the process of being closed. Remediation at the Dawn mill site began in 2013. The Tailing Disposal Area 1-4 reclamation earthworks component was completed during 2017 with the exception of the embankment erosion protection anticipated to be completed in 2018. The remaining closure activity will consist primarily of addressing groundwater issues. The remediation liability for the Midnite mine site and Dawn mill site is approximately $185 at December 31, 2017. Other Legal Matters Minera Yanacocha S.R.L. - 54.05% Newmont Owned Administrative Actions . The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, 2013, 2015, 2016 and 2017, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. In 2015 and 2016, the water authority of Cajamarca issued notices of alleged regulatory violations, and resolved some allegations in 2017 with no findings. The experience with OEFA and the water authority is that in the case of a finding of violation, remedial action is often the outcome rather than a significant fine. The alleged OEFA violations currently range from zero to 11,310 units and the water authority alleged violations range from zero to 10,054 units, with each unit having a potential fine equivalent to approximately $.001224 based on current exchange rates ($0 to $26). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations. Conga Project Constitutional Claim . On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of the Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: (i) plaintiffs had not exhausted previous administrative proceedings; (ii) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; (iii) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment and; (iv) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation. Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $75. While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation. NWG Investments Inc. v. Fronteer Gold Inc. In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”). Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada. NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement. On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014. On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C$1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome. Investigations We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We previously conducted an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the U.S. The investigation included a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company worked with the U.S. SEC and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one-year agreement with the U.S. SEC tolling the statute of limitations relating to the investigation, and in April 2016, entered into a similar agreement with the U.S. Department of Justice. Both of the initial tolling agreements were effective through October 29, 2016. In September 2016, the Company agreed to extend its tolling agreement with the Department of Justice through April 2017, and agreed to a similar extension with the SEC in October 2016. In late February 2017, the Company received a declination letter from the SEC relating to this investigation indicating that they do not intend to recommend an enforcement action. In June 2017, the Company received a similar letter from the U.S. Department of Justice acknowledging the Company’s cooperation in the investigation and indicating that the Department of Justice had closed its inquiry into the matter. Other Commitments and Contingencies The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Royalty payments payable, net of recoverable amounts, are $31 in 2018, $31 in 2019, $22 in 2020, $- in 2021, $- in 2022 and $- thereafter. On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62. At December 31, 2017 and 2016, the estimated fair value of the unpaid contingent consideration was approximately $7 and $14, respectively. This contingent royalty is capped at $100 in aggregate payments, of which $93 has been paid to date. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net . The Company paid $15 and $6 during 2017 and 2016, respectively, and made no payments during 2015. As of December 31, 2017, the Company expects to pay the remaining $7 of which the Company expects to pay $3 in the next 12 months. As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At December 31, 2017 and 2016, there were $2,321 and $2,227, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise. Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations. |
UNAUDITED SUPPLEMENTARY DATA
UNAUDITED SUPPLEMENTARY DATA | 12 Months Ended |
Dec. 31, 2017 | |
UNAUDITED SUPPLEMENTARY DATA | |
UNAUDITED SUPPLEMENTARY DATA | NOTE 30 UNAUDITED SUPPLEMENTARY DATA Quarterly Data The following is a summary of selected quarterly financial information (unaudited): 2017 Three Months Ended March 31 June 30 September 30 December 31 Sales $ 1,659 $ 1,875 $ 1,879 $ 1,935 Gross profit (1) $ 403 $ 524 $ 470 $ 487 Income (loss) from continuing operations (2) $ 69 $ 192 $ 213 $ (534) Income (loss) from discontinued operations (2) (23) (15) (7) 7 Net income (loss) attributable to Newmont stockholders $ 46 $ 177 $ 206 $ (527) Income (loss) per common share Basic: Continuing operations $ 0.13 $ 0.36 $ 0.39 $ (0.99) Discontinued operations (0.04) (0.03) (0.01) 0.01 $ 0.09 $ 0.33 $ 0.38 $ (0.98) Diluted: Continuing operations $ 0.13 $ 0.36 $ 0.39 $ (0.99) Discontinued operations (0.04) (0.03) (0.01) 0.01 $ 0.09 $ 0.33 $ 0.38 $ (0.98) Weighted average common shares (millions) Basic 532 533 533 533 Diluted 533 535 536 536 Cash dividends declared per common share $ 0.050 $ 0.050 $ 0.075 $ 0.075 Closing price of common stock $ 32.96 $ 32.39 $ 37.51 $ 37.52 2016 Three Months Ended March 31 June 30 September 30 December 31 Sales $ 1,462 $ 1,669 $ 1,791 $ 1,789 Gross profit (1) $ 314 $ 465 $ 448 $ 313 Income (loss) from continuing operations (2) $ (12) $ 14 $ 169 $ (391) Income (loss) from discontinued operations (2) 64 9 (527) 47 Net income (loss) attributable to Newmont stockholders $ 52 $ 23 $ (358) $ (344) Income (loss) per common share Basic: Continuing operations $ (0.02) $ 0.02 $ 0.32 $ (0.73) Discontinued operations 0.12 0.02 (0.99) 0.08 $ 0.10 $ 0.04 $ (0.67) $ (0.65) Diluted: Continuing operations $ (0.02) $ 0.02 $ 0.32 $ (0.73) Discontinued operations 0.12 0.02 (0.99) 0.08 $ 0.10 $ 0.04 $ (0.67) $ (0.65) Weighted average common shares (millions) Basic 530 531 531 531 Diluted 531 533 533 534 Cash dividends declared per common share $ 0.025 $ 0.025 $ 0.025 $ 0.050 Closing price of common stock $ 26.58 $ 39.12 $ 39.29 $ 34.07 (1) Sales less Costs applicable to sales , Depreciation and amortization and Reclamation and remediation . (2) Attributable to Newmont stockholders. . |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2017 2016 2015 (in millions) Deferred Income Tax Valuation Allowance Balance at beginning of year $ 3,844 $ 2,735 $ 2,565 Additions to deferred income tax expense 574 1,612 530 Reduction of deferred income tax expense (443) (503) (360) Reduction due to Tax Cuts and Jobs Act (1,180) — — Balance at end of year $ 2,795 $ 3,844 $ 2,735 Refer to Note 10 of the Consolidated Financial Statements for additional information. |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Risks and Uncertainties | Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold and copper. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development, net ; Inventories ; Stockpiles and ore on leach pads ; and Deferred income tax assets are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. Minera Yanacocha S.R.L. (“Yanacocha”) includes the mining operations at Yanacocha and the Conga project in Peru. Under the current social and political environment, the Company does not anticipate being able to develop Conga for at least the next five years. As a result of the uncertainty surrounding the Conga project, the Company has allocated its development capital to other projects. Should the Company be unable to develop the Conga project, the Company may have to consider other alternatives for the project, which may result in a future impairment charge. The total assets at Conga as of December 31, 2017 and 2016 were $1,650 and $1,666 respectively. |
Use of Estimates | Use of Estimates The Company’s Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of goodwill, long-lived assets and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable securities and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from those amounts estimated in these financial statements. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Newmont Mining Corporation and the more-than-50%-owned subsidiaries that it controls. The Company also includes its pro-rata share of assets, liabilities and operations for unincorporated joint ventures in which it has an interest. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations is the U.S. dollar. The Company follows the Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). On November 22, 2013, Newmont entered into a Partnership Agreement with Staatsolie Maatschappij Suriname N.V. (“Staatsolie”) (a company wholly owned by the Republic of Suriname). The Partnership Agreement gave Staatsolie the option to participate in the Merian gold mine (“Merian”) for up to 25% of the partnership. Staatsolie exercised that option in November 2014. At December 31, 2017, Newmont has a 75.0% ownership in Merian. Newmont has identified Merian as a VIE under ASC guidance for consolidation. The Company has determined itself to be the primary beneficiary of this entity, as it controls the operations of Merian and has the obligation to absorb losses and the right to receive benefits that are significant to Merian; therefore, the Company consolidates Merian in its financial statements. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations The Company reports a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is probable and recognition of a completed sale is expected to occur within one year, the sales price is reasonable in relation to its current fair value and actions required to complete the sale indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn, in accordance with ASC 360, Property, Plant and Equipment. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, less cost to sell, a loss is recognized. Assets and liabilities related to a business classified as held for sale are segregated in the current- and prior-year balance sheets in the period in which the business is classified as held for sale. The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. The results of discontinued operations are reported in Net income (loss) from discontinued operations , net of tax in the accompanying Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. On November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operates the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). As a result, Newmont presents Batu Hijau as a discontinued operation for all periods presented. Accordingly, (i) our Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (ii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are held in overnight bank deposits or are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current or non-current assets. Restricted cash is held primarily for the purpose of settling asset retirement obligations. |
Investments | Investments Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company’s ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in non-current assets. Additionally, the Company has certain restricted investments, which are classified as Other non-current assets. The Company accounts for both its restricted and non-restricted marketable security investments as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company’s carrying value are other-than-temporary in accordance with ASC guidance. The Company’s policy is to generally treat a decline in the investment’s quoted market value that has lasted continuously for more than six to nine months as an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Company’s ability to hold the investment until a forecasted recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Company’s carrying value deemed to be other-than-temporary are charged to Other income, net. |
Stockpiles, Ore on Leach Pads and Inventories | Stockpiles, Ore on Leach Pads and Inventories As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories to net realizable value are reported as a component of Costs applicable to sales and Depreciation and amortization . The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months and utilize the short-term metal price assumption in estimating net realizable value. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as non-current and utilize the long-term metal price assumption in estimating net realizable value. The major classifications are as follows: Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed. The Company generally processes the highest ore grade material first to maximize metal production; however, a blend of gold ore stockpiles may be processed to balance hardness and/or metallurgy in order to maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed. Sulfide copper ores are subject to oxidation over time which can reduce expected future recoveries. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are added to stockpiles based on current mining costs incurred including applicable overhead and depreciation and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. Stockpiles are recorded at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly. Net realizable value represents the estimated future sales price based on short-term and long-term metals price assumptions, less estimated costs to complete production and bring the product to sale. Ore on Leach Pads Ore on leach pads represent ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the gold or extract the copper. The recovery of copper from leach pads is further described below in the Copper Cathode Inventory section. Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or pound of copper on the leach pad. Estimates of recoverable ore on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete. Although the quantities of recoverable ore placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company’s operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of metal on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. In-process Inventory In-process inventories represent material that is currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, flotation, leach and carbon-in-leach. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads, plus the in-process conversion costs, including applicable amortization relating to the process facilities incurred to that point in the process. Precious Metals Inventory Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company’s mining and processing activities are valued at the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs. Copper Cathode Inventory Copper heap leaching is performed on copper oxide ore and enriched copper sulfide ore to produce copper cathodes. Heap leaching is accomplished by stacking uncrushed ore onto synthetically lined pads where it is contacted with a dilute sulfuric acid solution, thus leaching the acid soluble minerals into a copper sulfate solution. The copper sulfate solution is then collected and pumped to the solvent extraction (“SX”) plant. The SX process consists of two steps. During the first step, the copper is extracted into an organic solvent solution. The loaded organic solution is then pumped to the second step where copper is stripped with a strong acid solution before being sent through the electrowinning process. Cathodes produced in electrowinning are 99.99% copper. Copper cathode is produced at the Company’s Phoenix operations by solvent extraction and electrowinning. The inventory is valued at the lower of average cost to produce the cathode or net realizable value. Concentrate Inventory Concentrate inventories represent copper and gold concentrate available for shipment or in transit for further processing when the sales process has not been completed. The Company values concentrate inventory at average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on metal in the concentrate and are valued at the lower of average cost or net realizable value. Materials and Supplies Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. |
Property, Plant and Mine Development | Property, Plant and Mine Development Facilities and Equipment Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. Facilities and equipment acquired as a part of a capital lease, build-to-suit or other financing arrangement are capitalized and recorded based on the contractual lease terms. The facilities and equipment are depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives of such facilities. These estimated productive lives do not exceed the related estimated mine lives, which are based on proven and probable reserves. Mine Development Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves. Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales . The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. The Company’s definition of a mine and the mine’s production phase may differ from that of other companies in the mining industry resulting in incomparable allocations of stripping costs to deferred mine development and production costs. Other mining companies may expense pre-stripping costs associated with subsequent pits within a mining complex. Other mining companies may capitalize stripping costs incurred in connection with the production phase. Mine development costs are amortized using the units-of-production method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area. Mineral Interests Mineral interests include acquired interests in production, development and exploration stage properties. Mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material within pits; mineralized material with insufficient drill spacing to qualify as proven and probable reserves; and mineralized material in close proximity to proven and probable reserves; (ii) around-mine exploration potential not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of current mineralized material and is comprised mainly of material outside of the immediate mine area; (iv) greenfield exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company’s mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews and evaluates its long-lived assets for impairment at least annually, or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment loss is measured and recorded based on the estimated fair value of the long-lived assets being tested for impairment, and their carrying amounts. Fair value is typically determined through the use of an income approach utilizing estimates of discounted pre-tax future cash flows or a market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. Occasionally, such as when an asset is held for sale, market prices are used. The Company believes its estimates and models used to determine fair value are similar to what a market participant would use. The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of the Company’s mining operations are derived from current business plans, which are developed using short-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to short- and long-term metal price assumptions, other assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable estimates; estimated future closure costs; and the use of appropriate discount rates. In estimating undiscounted cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of undiscounted cash flows from other asset groups. The Company’s estimates of undiscounted cash flows are based on numerous assumptions and it is possible that actual cash flows will be significantly different than the estimates, as actual produced reserves, metal prices, commodity-based and other costs, and closure costs are each subject to significant risks and uncertainties. |
Revenue Recognition | Revenue Recognition Revenue is recognized from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, risk and the title has been transferred to the customer and collection of the sales price is reasonably assured. Revenues from concentrate sales are recorded net of treatment and refining charges. Revenues from by-product sales are credited to Costs applicable to sales as a by-product credit. Concentrate sales are initially recorded based on 100% of the provisional sales prices. Until final settlement occurs, adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices for the estimated month of settlement. For changes in metal quantities upon receipt of new information and assays, the provisional sales quantities are also adjusted. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations between the date initially recorded and the date of final settlement. If a significant decline in metal prices occurs between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the sales proceeds received based on the provisional invoice. The Company’s sales based on a provisional price contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward exchange price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. Effective January 1, 2018, the Company will adopt changes to its revenue recognition policy. Refer to Recently Issued Accounting Pronouncements below for further details. |
Income and Mining Taxes and Valuation of Deferred Tax Assets | Income and Mining Taxes The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The financial statement effects of changes in tax law are recorded as discrete items in the period enacted as part of income tax expense or benefit from continuing operations, regardless of the category of income or loss to which the deferred taxes relate. The Company determines if the assessment of a particular income tax effect is “complete” or “incomplete” as of the due date of the financial statements. Those effects for which the accounting is determined to be complete are reported in the enactment period financial statements. For those effects determined to be incomplete, the Company determines whether a reasonable estimate of those effects can be made. If a reasonable estimate can be made, the estimate is recognized as a provisional amount. If a reasonable estimate cannot be made, no effects are recognized as provisional amounts until the first reporting period in which a reasonable estimate can be made. Provisional amounts are updated when additional information becomes available and the evaluation of such information is complete. The Company completes the accounting for all provisional amounts within a measurement period of up to one year from the enactment date. Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes. As such, taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies. Newmont’s operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. Newmont and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the tax liabilities. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax benefit (expense). In certain jurisdictions, Newmont must pay a portion of the disputed amount to the local government in order to formally appeal the assessment. Such payment is recorded as a receivable if Newmont believes the amount is collectible. Valuation of Deferred Tax Assets The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence. Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified. The Company looks to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date and the existence and frequency of prior cumulative pretax losses. Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to: · Earnings history; · Projected future financial and taxable income based upon existing reserves; and long-term estimates of commodity prices; · The duration of statutory carry forward periods; · Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference; · Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and · The sensitivity of future forecasted results to commodity prices and other factors. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. The Company utilizes a rolling twelve quarters of pre-tax income or loss as a measure of its cumulative results in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. The Company also considers all other available positive and negative evidence in its analysis. |
Reclamation and Remediation Costs | Reclamation and Remediation Costs Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Changes in reclamation estimates at non-operating mines are reflected in earnings in the period an estimate is revised. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for asset retirement obligations. Remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates may include ongoing care, maintenance and monitoring costs. Changes in remediation estimates at legacy sites are reflected in earnings in the period an estimate is revised. Water treatment costs included in environmental remediation obligations are discounted to their present value as cash flows are readily estimable. All other costs of future expenditures for environmental remediation obligations are not discounted to their present value. |
Foreign Currency | Foreign Currency The functional currency for the majority of the Company’s operations, including the Australian operations, is the U.S. dollar. All monetary assets and liabilities where the functional currency is the U.S. dollar are translated at current exchange rates and the resulting adjustments are included in Other income, net . All assets and liabilities recorded in functional currencies other than U.S. dollars are translated at current exchange rates and the resulting adjustments are charged or credited directly to Accumulated other comprehensive income (loss) in Total equity. Revenues and expenses in foreign currencies are translated at the weighted average exchange rates for the period. The gains or losses on foreign currency rates on cash holdings in foreign currencies are included in Effect of exchange rate changes on cash in the Company’s Consolidated Statements of Cash Flows. |
Derivative Instruments | Derivative Instruments Newmont has forward contracts designated as cash flow hedges in place to hedge against changes in foreign exchanges rates and diesel prices. The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the Consolidated Balance Sheets. To the extent these hedges are effective in offsetting forecasted cash flows from production costs (the “effective portion”), changes in fair value are deferred in Accumulated other comprehensive income (loss) . Amounts deferred in Accumulated other comprehensive income (loss) are reclassified to income when the hedged transaction has occurred. The ineffective portion of the change in the fair value of the derivative is recorded in Other income, net in each period. Cash transactions related to the Company’s derivative contracts accounted for as hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows. When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the related amount in Accumulated other comprehensive income (loss) at the settlement date is deferred and reclassified to earnings, when the originally designated hedged transaction impacts earnings. Newmont assesses the effectiveness of the derivative contracts using either regression analysis or the dollar offset approach, both retrospectively and prospectively, to determine whether the hedging instruments have been highly effective in offsetting changes in the fair value of the hedged items. The Company also assesses whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive income (loss) until the hedged item affects earnings. |
Stock Based Compensation | Stock-Based Compensation The Company records stock-based compensation awards exchanged for employee services at fair value on the date of the grant and expenses the awards in the Consolidated Statements of Operations over the requisite employee service period. The fair value of stock options is determined using the Black-Scholes valuation model. The fair value of restricted stock units (“RSUs”) and strategic stock units (“SSUs”) are based on the Newmont stock price on the date of grant. The fair value of performance leverage stock units (“PSUs”) is determined using a Monte Carlo simulation model. Stock-based compensation expense related to awards with a market or performance condition is generally recognized over the vesting period of the award utilizing the cliff vesting method, while all other awards are recognized on a straight-line basis. The Company recognizes forfeitures as they occur. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee stock option exercise behaviors, additional stock option grants, the Company's performance and related tax impacts. |
Debt | Debt The Company carries its Senior Notes at amortized cost. Debt issuance costs and debt premiums and discounts, which are included in Debt , and unrealized gains or losses related to treasury rate lock contracts and forward starting swap contracts, which are included in Accumulated other comprehensive income (loss) , are amortized using the effective interest method over the terms of the respective Senior Notes as a component of Interest expense, net within the Consolidated Statements of Operations. When repurchasing its debt, the Company records the resulting gain or loss as well as the accelerated portion of related debt issuance costs, premiums and discounts, and any unrealized gains or losses from the associated treasury rate lock contracts and/or associated forward starting swap contracts in Other Income, net . |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic and diluted income per share are presented for Net income (loss) attributable to Newmont stockholders . Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income per common share is computed similarly except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are excluded from the calculation of diluted weighted average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss from continuing operations. |
Comprehensive Income | Comprehensive Income (Loss) In addition to Net income (loss), Comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable securities available for sale or other investments, except those resulting from investments by and distributions to owners. |
Reclassifications | Reclassifications Certain amounts in prior years have been reclassified to conform to the 2017 presentation. Reclassified amounts were not material to the financial statements. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Inventory In July 2015, Accounting Standard Update (“ASU”) No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company records inventory at the lower of cost or net realizable value and the adoption of this guidance, effective January 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Stock-based compensation I n March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification of cash payments related to tax withholdings on behalf of employees on the Consolidated Statements of Cash Flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company adopted this guidance as of January 1, 2017, and reclassified $(6) from Net cash provided by (used in) operating activities of continuing operations to Net cash provided by (used in) financing activities of continuing operations for the year ended December 31, 2016. There was no impact in 2015. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Restricted cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows present the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The Company retrospectively adopted this guidance as of December 31, 2017, which resulted in the removal of the changes in restricted cash activity of $(10) and $8 from Net cash provided by (used in) financing activities of discontinued operations within financing activities and $- and $(2) from Other within financing activities on the Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015, respectively. Furthermore, the Company has included a reconciliation of Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Consolidated Statements of Cash Flows. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Business combinations In January 2017, ASU No. 2017-01 was issued clarifying the definition of a business and providing additional guidance for determining whether transactions should be accounted for as acquisitions of assets or businesses. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The new guidance is required to be applied on a prospective basis. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Goodwill In January 2017, ASU No. 2017-04 was issued, which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016, December 2016, and September 2017 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12, No. 2016-20 and No. 2017-13, respectively. The new guidance provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. The Company has performed an assessment of the revised guidance and the impacts on the Company’s Consolidated Financial Statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance will primarily impact the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Currently, revenue is recognized for these contracts based on varying contractual terms indicating when risk of loss and title have transferred to the buyer. Upon adoption, revenue related to concentrate sales will typically be recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligations. The Company completed its evaluation of variable consideration for concentrate sales related to the variable nature of the price and metal quantity. Based on our current analysis, the estimate of revenue recognized for concentrates will remain unchanged as sales will initially be recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities delivered based on weighing and assay data. The Company believes changes in the underlying weight and metal content are not significant to the sale as a whole and therefore do not preclude the recognition of revenue upon transfer of control. The Company’s provisional gold and copper concentrate sales will continue to contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. The Company will adopt the new guidance effective January 1, 2018. The guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company will adopt the guidance retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. Based on the contracts outstanding as of December 31, 2017, there will be no cumulative effect adjustment required to be recognized at January 1, 2018. Under the Company’s adoption approach, results for reporting periods beginning after January 1, 2018, will be presented in the Consolidated Financial Statements under the new guidance, while prior period amounts will not be adjusted and continue to be reported under the guidance in effect for those periods. In the related disclosures, results for reporting periods beginning after January 1, 2018, will be presented under prior guidance along with prior period amounts for comparative purposes. The Company plans to provide expanded disclosures that will include gold revenue from doré production, gold and copper revenue from concentrate sales and copper revenue from cathode sales, as well as information pertaining to receivable balances, and revenue recognized in the current reporting period related to changes in price and metal quantity from performance obligations satisfied in previous periods, if material. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and upon adoption, an entity should apply the amendments with the cumulative effect of initially applying the guidance recognized at January 1, 2018. Early adoption is not permitted. The Company expects the updated guidance to result in a reclassification of unrealized holding gains and losses and deferred income taxes related to investments in marketable equity securities from Accumulated other comprehensive income (loss) to Retained earnings in the Consolidated Balance Sheets upon adoption. Accumulated other comprehensive income (loss) at December 31, 2017, included $115 of net unrealized holding losses and deferred income taxes related to marketable equity securities that will be reclassified to Retained earnings upon adoption. Leases In February 2016, ASU No. 2016-02 was issued related to leases, which was further amended in September 2017 by ASU No. 2017-13 and in January 2018 by ASU 2018-01. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting the new guidance effective January 1, 2019. The Company has begun its assessment of the new guidance and the impact it will have on the Consolidated Financial Statements and disclosures, and expects to complete its analysis in 2018. To date, the Company has reviewed a sample of contracts that are representative of the Company’s various contracts. Management is still completing its assessment of the impacts; however, based on the sample reviewed, management anticipates certain service contracts will contain embedded leases under the revised guidance. The Company continues to assess other potential impacts of the new standard. Based on preliminary findings, the Company expects that the majority of its identified leases will be required to be reported on the Consolidated Balance Sheets; however, the Company expects there will be minimal impacts to the Consolidated Statements of Operations. The Company expects to have an update to the impacts of the standard in the second quarter of 2018. Statement of cash flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. While the Company had anticipated early adoption of this guidance, upon further analysis the Company has determined it will adopt the guidance effective January 1, 2018. Upon adoption, the Company expects to reclassify $196 of Repayment of debt , previously reported as a cash outflow from financing activities, to operating activities on the Consolidated Statements of Cash Flows related to accreted interest from the debt discount on the 2017 convertible notes repaid in July 2017. Additionally, the Company expects to reclassify $15 and $6 for 2017 and 2016, respectively, of Acquisitions, net previously reported as a cash outflow from investing activities, to operating activities on the Consolidated Statements of Cash Flows related to contingent consideration payments. Intra-entity transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017, and early adoption is permitted. The Company anticipates adopting this new guidance effective January 1, 2018, and does not expect the adoption to have an impact on the Consolidated Financial Statements or disclosures. Employee benefits In March 2017, ASU No. 2017-07 was issued related to the presentation of net periodic pension and postretirement cost. The new guidance requires the service cost component of net benefit costs to be classified similar to other compensation costs arising from services rendered by employees. Other components of net benefit costs are required to be classified separately from the service cost and outside income from operations. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The Company anticipates adopting this new guidance effective January 1, 2018. The adoption of this guidance will result in the recognition of other components of net benefit costs within Other income, net rather than Costs applicable to sales or General and administrative and will no longer be included in costs that benefit the inventory/production process. The adoption of this guidance will not have a material impact on the Consolidated Financial Statements or disclosures. Hedging In August 2017, ASU No. 2017-12 was issued related to hedge accounting. The new guidance expands the ability to hedge nonfinancial risk components, eliminates the current requirement to separately measure and report hedge ineffectiveness, and requires the entire change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item, when reclassified from Accumulated other comprehensive income (loss) . The guidance also eases certain hedge effectiveness documentation and assessment requirements. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting this new guidance effective January 1, 2018, and does not expect the adoption to have a material impact on the Consolidated Financial Statements or disclosures. Other comprehensive income reclassifications related to tax reform In February 2018, ASU 2018-02 was issued allowing companies the option to reclassify to retained earnings the tax effects related to items in Accumulated other comprehensive income (loss) as a result of the Tax Cuts and Jobs Act that was enacted on December 22, 2017. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. The Company is still completing its assessment of the impacts including the timing of adoption. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) - Discontinued operations - held-for-sale or disposed of | 12 Months Ended |
Dec. 31, 2017 | |
DISCONTINUED OPERATIONS | |
Schedule of Net Income (Loss) from Discontinued Operations, Net of Tax | Years Ended December 31, 2017 2016 2015 Holt royalty obligation $ (44) $ (50) $ 27 Batu Hijau contingent consideration 6 — — Batu Hijau operations — 517 418 Loss on sale of Batu Hijau — (600) — Net income (loss) from discontinued operations $ (38) $ (133) $ 445 |
PTNNT | |
DISCONTINUED OPERATIONS | |
Schedule of Net Income (Loss) from Discontinued Operations, Net of Tax | Years Ended December 31, 2016 2015 Sales $ 1,668 $ 1,644 Costs and expenses: Costs applicable to sales (1) 668 772 Depreciation and amortization 134 137 Reclamation and remediation 14 13 Advanced projects, research and development 2 7 General and administrative 10 6 Other expense (income), net (1) 10 827 945 Interest expense, net (15) (28) Income (loss) before income and mining tax and other items 826 671 Income and mining tax benefit (expense) (309) (253) Net income (loss) from discontinued operations 517 418 Loss on sale of Batu Hijau, net of tax (600) — (83) 418 Net loss (income) attributable to noncontrolling interests (274) (224) Net income (loss) from discontinued operations attributable to Newmont stockholders $ (357) $ 194 (1) Excludes Depreciation and amortization and Reclamation and remediation. |
Schedule of Cash Flows | Years Ended December 31, 2016 2015 Net cash provided by (used in) operating activities $ 880 $ 569 Net cash provided by (used in) investing activities (46) (90) Net cash provided by (used in) financing activities (331) (225) Net cash provided by (used in) Batu Hijau discontinued operations $ 503 $ 254 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS ACQUISITION | |
Summary of final purchase price allocation for CC&V | Assets: Cash and cash equivalents $ 2 Inventories 15 Stockpiles and ore on leach pads 75 Other current assets 1 Current assets 93 Property, plant and mine development, net 671 Stockpiles and ore on leach pads 175 Total assets $ 939 Liabilities: Debt $ 3 Accounts payable 28 Employee-related benefits 2 Other current liabilities 12 Current liabilities 45 Debt 10 Reclamation and remediation liabilities 63 Total liabilities $ 118 Net assets acquired $ 821 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
Financial Information of Company's Segments | Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2017 Carlin $ 1,217 $ 795 $ 221 $ 18 $ 139 $ 2,292 $ 174 Phoenix: Gold 257 181 47 Copper 88 55 15 Total Phoenix 345 236 62 5 31 884 25 Twin Creeks 465 226 63 9 163 1,142 52 Long Canyon 219 59 74 23 63 1,083 10 CC&V 575 285 124 10 153 897 33 Other North America — — 1 26 (29) 676 9 North America 2,821 1,601 545 91 520 6,974 303 Yanacocha 671 504 134 41 (64) 1,388 51 Merian 643 238 91 14 297 967 105 Other South America — — 14 43 (72) 1,661 — South America 1,314 742 239 98 161 4,016 156 Boddington: Gold 981 562 113 Copper 227 108 22 Total Boddington 1,208 670 135 2 372 2,108 80 Tanami 514 251 67 21 181 688 108 Kalgoorlie 458 234 19 9 190 403 21 Other Australia — — 6 8 (37) 54 5 Australia 2,180 1,155 227 40 706 3,253 214 Ahafo 439 268 72 24 70 1,685 181 Akyem 594 272 154 10 152 1,049 26 Other Africa — — 1 6 (13) 1 — Africa 1,033 540 227 40 209 2,735 207 Corporate and Other — — 11 53 (504) 3,585 10 Consolidated $ 7,348 $ 4,038 $ 1,249 $ 322 $ 1,092 $ 20,563 $ 890 (1) Includes an increase in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $866. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2016 Carlin $ 1,182 $ 797 $ 200 $ 19 $ 144 $ 2,278 $ 173 Phoenix: Gold 248 164 51 Copper 86 99 27 Total Phoenix 334 263 78 1 (20) 917 22 Twin Creeks 563 234 51 8 266 1,135 37 Long Canyon 27 4 5 20 (3) 1,123 119 CC&V 491 216 108 11 150 1,042 59 Other North America — — 1 12 (11) 696 9 North America 2,597 1,514 443 71 526 7,191 419 Yanacocha 792 525 275 35 (1,152) 1,549 83 Merian 117 34 12 24 46 984 221 Other South America — — 14 36 (55) 1,677 — South America 909 559 301 95 (1,161) 4,210 304 Boddington: Gold 973 530 110 Copper 164 126 24 Total Boddington 1,137 656 134 1 328 2,075 65 Tanami 575 238 82 13 242 621 145 Kalgoorlie 467 257 19 5 184 379 20 Other Australia — — 9 8 (25) 63 4 Australia 2,179 1,151 244 27 729 3,138 234 Ahafo 436 313 94 28 (8) 1,734 87 Akyem 590 235 127 8 214 1,232 22 Other Africa — — 1 2 (8) 2 — Africa 1,026 548 222 38 198 2,968 109 Corporate and Other — — 10 51 (506) 3,524 11 Consolidated $ 6,711 $ 3,772 $ 1,220 $ 282 $ (214) $ 21,031 $ 1,077 (1) Includes a decrease in accrued capital expenditures of $56; consolidated capital expenditures on a cash basis were $1,133. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Total Capital Sales to Sales Amortization and Exploration and Other Items Assets Expenditures (1) Year Ended December 31, 2015 Carlin $ 1,027 $ 790 $ 198 $ 16 $ 12 $ 2,240 $ 270 Phoenix: Gold 221 163 42 Copper 109 91 21 Total Phoenix 330 254 63 3 (12) 1,002 25 Twin Creeks 551 246 51 8 240 1,141 48 Long Canyon — — — 22 (22) 1,003 128 CC&V 91 44 19 3 23 1,043 66 Other North America — — 1 8 8 711 8 North America 1,999 1,334 332 60 249 7,140 545 Yanacocha 1,070 564 320 37 40 2,628 100 Merian — — — 12 (12) 764 356 Other South America — — 14 46 (66) 1,688 — South America 1,070 564 334 95 (38) 5,080 456 Boddington: Gold 910 570 113 Copper 171 140 26 Total Boddington 1,081 710 139 3 222 2,066 58 Tanami 504 225 82 7 192 539 98 Waihi (2) 136 55 14 3 59 — 12 Kalgoorlie 360 272 21 3 65 391 21 Other Australia — — 16 5 (46) 71 5 Australia 2,081 1,262 272 21 492 3,067 194 Ahafo 387 206 53 24 74 1,752 92 Akyem 548 212 96 8 227 1,241 45 Other Africa — — — 2 (13) 2 — Africa 935 418 149 34 288 2,995 137 Corporate and Other (3) — — 15 72 (696) 6,848 38 Consolidated $ 6,085 $ 3,578 $ 1,102 $ 282 $ 295 $ 25,130 $ 1,370 (1) Includes an increase in accrued capital expenditures of $59; consolidated capital expenditures on a cash basis were $1,311. (2) In October 2015, the Company sold the Waihi mine. (3) Total assets for Corporate and Other include assets held for sale related to our discontinued operations. See Note 3 for additional information regarding our discontinued operations. |
Revenues from Sales Based on the Customer's Location | Years Ended December 31, 2017 2016 2015 United Kingdom $ 5,490 $ 5,413 $ 4,954 Switzerland 657 148 39 Korea 384 298 334 Philippines 310 283 208 Germany 168 191 166 Canada 96 124 104 United States 91 70 69 Japan 87 59 111 Other 65 125 100 $ 7,348 $ 6,711 $ 6,085 |
Long-Lived Assets, Excluding Deferred Tax Assets, Investments and Restricted Cash, by Country | At December 31, 2017 2016 United States $ 6,490 $ 6,625 Australia 2,833 2,753 Ghana 2,401 2,423 Peru 2,008 2,109 Suriname 835 818 Other 11 — $ 14,578 $ 14,728 |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Years Ended December 31, 2017 2016 2015 Reclamation adjustments $ 32 $ 83 $ 5 Reclamation accretion 100 75 74 Total reclamation expense 132 158 79 Remediation adjustments 40 16 170 Remediation accretion 5 5 4 Total remediation expense 45 21 174 $ 177 $ 179 $ 253 |
Reconciliation of Reclamation Liabilities | Reclamation Remediation Total Balance at January 1, 2016 $ 1,300 $ 318 $ 1,618 Additions, changes in estimates and other 441 5 446 Payments and other (24) (30) (54) Accretion expense 75 5 80 Balance December 31, 2016 1,792 298 2,090 Additions, changes in estimates and other 107 30 137 Payments and other (34) (44) (78) Accretion expense 100 5 105 Balance December 31, 2017 $ 1,965 $ 289 $ 2,254 |
Reconciliation of Remediation Liabilities | Reclamation Remediation Total Balance at January 1, 2016 $ 1,300 $ 318 $ 1,618 Additions, changes in estimates and other 441 5 446 Payments and other (24) (30) (54) Accretion expense 75 5 80 Balance December 31, 2016 1,792 298 2,090 Additions, changes in estimates and other 107 30 137 Payments and other (34) (44) (78) Accretion expense 100 5 105 Balance December 31, 2017 $ 1,965 $ 289 $ 2,254 |
IMPAIRMENT OF LONG-LIVED ASSE46
IMPAIRMENT OF LONG-LIVED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
IMPAIRMENT OF LONG-LIVED ASSETS | |
Schedule of impairment of long-lived assets | Years Ended December 31, 2017 2016 2015 North America $ — $ 1 $ — South America 4 976 44 Australia 6 — — Africa — — 6 Corporate and Other 4 — 6 $ 14 $ 977 $ |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER EXPENSE, NET | |
Other Expense, Net | Years Ended December 31, 2017 2016 2015 Restructuring and other $ 14 $ 32 $ 34 Acquisition cost adjustments 2 10 19 Ghana Investment Agreement — — 27 Other 16 16 36 $ 32 $ 58 $ 116 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME, NET. | |
Other Income, Net | Years Ended December 31, 2017 2016 2015 Foreign currency exchange, net $ (28) $ (9) $ 31 Interest 28 11 6 Gain on asset and investment sales, net 23 108 118 Tanami insurance proceeds 13 — — Loss on debt repayment — (55) — Impairment of investments — — (115) Gain on deconsolidation of TMAC — — 76 Other 18 14 19 $ 54 $ 69 $ 135 |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME AND MINING TAXES | |
Income and Mining Tax (Expense) Benefit - Current vs Deferred | Years Ended December 31, 2017 2016 2015 Current: United States $ (40) $ 101 $ 18 Foreign (290) (230) (211) (330) (129) (193) Deferred: United States (773) (547) 54 Foreign (22) 113 (252) (795) (434) (198) $ (1,125) $ (563) $ (391) |
Income and Mining Tax (Expense) Benefit - Domestic Vs Foreign | Years Ended December 31, 2017 2016 2015 United States $ 245 $ (4) $ (283) Foreign 847 (210) 578 $ 1,092 $ (214) $ 295 |
Income and Mining Tax Expense Reconciliation | Years Ended December 31, 2017 2016 2015 Income (loss) before income and mining tax and other items $ 1,092 $ (214) $ 295 Tax at statutory rate 35 % $ (382) 35 % $ 75 35 % $ (103) Reconciling items: Re-measurement due to the Tax Cuts and Jobs Act (1) 28 (306) — — — — Tax restructuring related to the Tax Cuts and Jobs Act (2) 36 (395) — — — — Percentage depletion (7) 81 40 85 (19) 56 Change in valuation allowance on deferred tax assets 7 (78) (226) (485) 51 (153) Mining and other taxes 4 (41) (29) (61) 20 (58) U.S. tax effect of noncontrolling interest attributable to non-U.S. investees — 1 (100) (213) 41 (120) Tax impact on sale of assets — — 17 36 7 (20) Effect of foreign earnings, net of credits — (4) — — (6) 19 Other — (1) — — 4 (12) Income and mining tax expense 103 % $ (1,125) (263) % $ (563) 133 % $ (391) (1) Includes the release of a valuation allowance on AMT credits of $48 and elimination of $8 of deferred tax assets due to changes to executive compensation deductions. (2) See discussion below. |
Components of Deferred Tax Assets (Liabilities) | Components of the Company's deferred income tax assets (liabilities) are as follows: At December 31, 2017 2016 Deferred income tax assets: Property, plant and mine development $ 1,352 $ 1,109 Inventory 74 72 Reclamation and remediation 295 339 Net operating losses, capital losses and tax credits 1,276 2,226 Investment in partnerships and subsidiaries 86 909 Employee-related benefits 254 374 Derivative instruments and unrealized loss on investments 101 187 Other 263 229 3,701 5,445 Valuation allowances (2,795) (3,844) $ 906 $ 1,601 Deferred income tax liabilities: Property, plant and mine development $ (841) $ (639) Inventory (64) (167) Reclamation and remediation (12) — Net undistributed earnings of subsidiaries — (6) Derivative instruments and unrealized gain on investments — (4) Other (47) (46) (964) (862) Net deferred income tax assets (liabilities) $ (58) $ 739 These amounts reflect the classification and presentation that is reported for each tax jurisdiction in which the Company operates. Net deferred income tax assets and liabilities consist of: At December 31, 2017 2016 Non-current deferred income tax assets $ 537 $ 1,331 Non-current deferred income tax liabilities (595) (592) $ (58) $ 739 |
Reconciliation of Gross Unrecognized Tax Benefits | 2017 2016 2015 Total amount of gross unrecognized tax benefits at beginning of year $ 68 $ 62 $ 394 Additions for tax positions of prior years (27) 48 (24) Additions for tax positions of current year 30 — — Reductions due to settlements with taxing authorities — (23) (302) Reductions due to lapse of statute of limitations (3) (19) (6) Total amount of gross unrecognized tax benefits at end of year $ 68 $ 68 $ 62 |
EQUITY INCOME (LOSS) OF AFFIL50
EQUITY INCOME (LOSS) OF AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY INCOME (LOSS) OF AFFILIATES | |
Equity Income (Loss) of Affiliates | Years Ended December 31, 2017 2016 2015 TMAC Resources Inc. $ (6) $ (7) $ (7) Minera La Zanja S.R.L. (5) — (30) Euronimba Ltd. (5) (6) (9) Novo Resources Corp. — — 1 $ $ $ |
NET INCOME (LOSS) ATTRIBUTABL51
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests | Years Ended December 31, 2017 2016 2015 Merian $ 69 $ 10 $ (3) Yanacocha (57) (579) (126) Other (1) (1) (11) $ 11 $ (570) $ (140) |
Schedule summarizing the consolidated assets and liabilities of VIE | At December 31, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 27 $ 50 Inventories 79 57 Stockpiles and ore on leach pads 21 23 Other current assets (1) 6 37 133 167 Non-current assets: Property, plant and mine development, net 769 746 Other non-current assets (2) 8 8 Total assets $ 910 $ 921 Current liabilities: Other current liabilities (3) $ 50 $ 43 50 43 Non-current liabilities: Reclamation and remediation liabilities 17 11 Other non-current liabilities (4) 1 — Total liabilities $ 68 $ 54 (1) Other current assets include trade and other accounts receivable, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include accounts payable, employee-related benefits and other current liabilities. (4) Other non-current liabilities include employee related benefits. |
NEWMONT EQUITY AND INCOME (LO52
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE | |
Summary of Income (Loss) per Common Share, Basic and Diluted | Years Ended December 31, 2017 2016 2015 Net income (loss) attributable to Newmont stockholders: Continuing operations $ (60) $ (220) $ (1) Discontinued operations (38) (407) 221 $ (98) $ (627) $ 220 Weighted average common shares (millions): Basic 533 530 516 Effect of employee stock-based awards 2 2 — Diluted 535 532 516 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ (0.11) $ (0.41) $ — Discontinued operations (0.07) (0.77) 0.43 $ (0.18) $ (1.18) $ 0.43 Diluted: Continuing operations $ (0.11) $ (0.41) $ — Discontinued operations (0.07) (0.77) 0.43 $ (0.18) $ (1.18) $ 0.43 |
EMPLOYEE-RELATED BENEFITS (Tabl
EMPLOYEE-RELATED BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE-RELATED BENEFITS | |
Schedule of current and long-term employee-related benefits | At December 31, 2017 2016 Current: Accrued payroll and withholding taxes $ 264 $ 262 Peruvian workers’ participation and other bonuses 22 13 Employee pension benefits 7 12 Other post-retirement plans 5 4 Accrued severance 1 2 Other employee-related payables 10 11 $ 309 $ 304 Non-current: Employee pension benefits $ 129 $ 180 Accrued severance 162 140 Other post-retirement benefit plans 81 80 Other employee-related payables 14 11 $ 386 $ 411 |
Schedule of reconciliation of changes in the obligations and fair value of pension and other benefits | Pension Benefits Other Benefits 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 1,025 $ 948 $ 84 $ 92 Service cost 29 28 1 2 Interest cost 44 45 4 4 Actuarial loss (gain) 73 60 2 (11) Amendments — 2 (2) — Settlement payments (10) (11) — — Benefits paid (40) (47) (3) (3) Projected benefit obligation at end of year $ 1,121 $ 1,025 N/A N/A Accumulated benefit obligation $ 1,098 $ 1,010 $ 86 $ 84 Change in fair value of assets: Fair value of assets at beginning of year $ 833 $ 760 $ — $ — Actual return on plan assets 130 59 — — Employer contributions 72 72 3 3 Settlement payments (10) (11) — — Benefits paid (40) (47) (3) (3) Fair value of assets at end of year $ 985 $ 833 $ — $ — Unfunded status, net $ 136 $ 192 $ 86 $ 84 |
Schedule of net pension and other employee benefit amounts recognized in the consolidated balance sheets | Pension Benefits Other Benefits 2017 2016 2017 2016 Accrued employee benefit liability $ 136 $ 192 $ 86 $ 84 Accumulated other comprehensive income (loss): Net actuarial gain (loss) Prior service credit Less: Income taxes $ (236) $ (254) $ 28 $ 32 |
Schedule of components of the net periodic pension and other benefits costs | Pension Benefit Costs Other Benefit Costs 2017 2016 2015 2017 2016 2015 Service cost $ 29 $ 28 $ 30 $ 1 $ 2 $ 3 Interest cost Expected return on plan assets — — — Amortization, net Net periodic benefit cost $ $ $ $ (2) $ — $ Settlements 5 6 3 — — — Total benefit cost $ 45 $ 46 $ 43 $ (2) $ — $ 5 |
Schedule of components recognized in Other comprehensive income (loss) | Pension Benefits Other Benefits 2017 2016 2015 2017 2016 2015 Net loss (gain) $ 5 $ 61 $ 24 $ — $ (11) $ (62) Amortization, net (30) (25) (27) 7 6 3 Settlements (5) (6) (3) — — — Total recognized in other comprehensive income (loss) $ (30) $ 30 $ (6) $ 7 $ (5) $ (59) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 15 $ 76 $ 37 $ 5 $ (5) $ (54) |
Schedule of significant assumptions used in measuring the benefit obligation and net periodic pension benefit cost | Pension Benefits Other Benefits Years Ended December 31, Years Ended December 31, 2017 2016 2015 2017 2016 2015 Weighted average assumptions used in measuring the net periodic benefit cost: Discount rate % % % % % % Expected return on plan assets % % % N/A N/A N/A |
Schedule of target and actual asset allocations | The following is a summary of the target asset allocations for 2017 and the actual asset allocation at December 31, 2017. Actual at December 31, Asset Allocation Target 2017 U.S. equity investments 11 % 11 % International equity investments 12 % 12 % World equity fund (U.S. and International equity investments) 20 % 20 % Fixed income investments 49 % 49 % Other 8 % 8 % The following table sets forth the Company’s pension plan assets measured at fair value at December 31, 2017 and 2016: Fair Value at December 31, 2017 2016 Plan Assets: Cash and cash equivalents $ 3 $ 2 Commingled funds 982 831 $ 985 $ 833 |
Schedule of effect of one percentage point change in assumed health care cost trend rates | One-percentage-point One-percentage-point Increase Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 2 $ (2) |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCK-BASED COMPENSATION | |
Schedule of status and activity of non-vested RSUs, PSUs, and SSUs | RSU PSU SSU Weighted Weighted Weighted Average Average Average Number of Grant-Date Number of Grant-Date Number of Grant-Date Shares Fair Value Shares Fair Value Shares Fair Value Non-vested at beginning of year 2,948,345 $ 26.05 3,027,876 $ 37.90 157,476 $ 25.26 Granted 1,191,380 $ 35.01 1,475,133 $ 41.92 — $ — Vested (1,199,020) $ 25.12 (1,594,869) $ 34.12 (154,296) $ 25.56 Forfeited (324,165) $ 27.56 (313,570) $ 39.26 (3,180) $ 25.56 Non-vested at end of year 2,616,540 $ 30.39 2,594,570 $ 42.27 — $ — |
Schedule of stock based compensation by award | Years Ended December 31, 2017 2016 2015 Stock-based compensation: Performance leveraged stock units $ 35 $ 34 $ 39 Restricted stock units 34 31 31 Strategic stock units 1 5 7 $ 70 $ 70 $ 77 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,259 $ 3,259 $ — $ — Restricted cash 39 39 — — Trade receivable from provisional copper and gold concentrate sales, net 111 — 111 — Derivative instruments, net: Diesel forward contracts 6 — 6 — Marketable equity securities 165 165 — — Restricted marketable debt securities 55 17 38 — Restricted other assets 9 9 — — Batu Hijau contingent consideration 23 — — 23 $ 3,667 $ 3,489 $ 155 $ 23 Liabilities: Debt (1) $ 4,671 $ — $ 4,671 $ — Derivative instruments, net: Foreign exchange forward contracts 1 — 1 — Holt royalty obligation 243 — — 243 $ 4,915 $ — $ 4,672 $ 243 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted cash 26 26 — — Trade receivable from provisional copper and gold concentrate sales, net 113 — 113 — Marketable equity securities 56 56 — — Marketable debt securities Asset backed commercial paper 18 — — 18 Restricted marketable debt securities 49 16 33 — Restricted other assets 13 13 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 2,867 $ 146 $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Holt royalty obligation 187 — — 187 $ 5,093 $ — $ 4,906 $ 187 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,040 and $4,599 at December 31, 2017 and 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. |
Fair Value Inputs Assets Liabilities Quantitative Information | At December 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 23 Monte Carlo Discount rate 17.50 % Short-term copper price $ Long-term copper price $ Holt royalty obligation $ 243 Monte Carlo Discount rate 3.32 % Short-term gold price $ 1,275 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 402 -1,779 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332 - 1,570 |
Changes in the Fair Value of the Company's Level 3 Financial Assets | The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Auction Backed Batu Hijau Holt Rate Commercial Contingent Total Royalty Total Securities (1) Paper (1) Consideration (2) Assets Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ — $ 25 $ 129 $ 129 Settlements (8) (3) — (11) (11) (11) Revaluation 1 3 — 4 69 69 Valuation — — 13 13 — — Fair value at December 31, 2016 $ — $ 18 $ 13 $ 31 $ 187 $ 187 Settlements — (18) — (18) (12) (12) Revaluation — — 10 10 68 68 Fair value at December 31, 2017 $ — $ — $ 23 $ 23 $ 243 $ 243 (1) The gain (loss) recognized is included in Other income, net. (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . |
Changes in the Fair Value of the Company's Level 3 Financial Liabilities | The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Auction Backed Batu Hijau Holt Rate Commercial Contingent Total Royalty Total Securities (1) Paper (1) Consideration (2) Assets Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ — $ 25 $ 129 $ 129 Settlements (8) (3) — (11) (11) (11) Revaluation 1 3 — 4 69 69 Valuation — — 13 13 — — Fair value at December 31, 2016 $ — $ 18 $ 13 $ 31 $ 187 $ 187 Settlements — (18) — (18) (12) (12) Revaluation — — 10 10 68 68 Fair value at December 31, 2017 $ — $ — $ 23 $ 23 $ 243 $ 243 (1) The gain (loss) recognized is included in Other income, net. (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At December 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 1 $ — Diesel fixed forwards 6 — — — $ 6 $ — $ 1 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — $ 4 $ — $ 27 $ 1 |
Location and Amount of Gains (Losses) Reported in Consolidated Financial Statements | Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2017 2016 2015 2017 2016 2015 2017 2016 2015 For the year ended December 31, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 5 $ 3 $ (39) $ 3 $ 9 $ (23) $ — $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (25) $ (37) $ (39) $ (2) $ (22) $ (27) $ (10) $ (33) $ (18) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ — $ 1 $ 2 $ — $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense, net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, net . |
Cash Flow Hedges | Foreign exchange forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 6 6 Average rate ($/A$) 0.92 0.92 |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2018 2019 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 16 2 18 Average rate ($/gallon) 1.63 1.72 1.64 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS | |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At December 31, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 38 $ 32 $ (8) $ 62 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (8) $ 101 Other marketable equity securities 4 — (2) 2 113 — (10) 103 Other investments, at cost 12 — — 12 Equity method investments: TMAC Resources Inc. (28.79%) 115 — — 115 Minera La Zanja S.R.L. (46.94%) 50 — — 50 165 — — 165 $ 290 $ — $ (10) $ 280 Non-current restricted investments: (1) Marketable debt securities $ 58 $ — $ (3) $ 55 Other assets 8 1 — 9 $ 66 $ 1 $ (3) $ 64 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Other investments, at cost 6 — — 6 Equity method investments: TMAC Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 205 $ 2 $ — $ 207 Non-current restricted investments: (1) Marketable debt securities $ 48 $ 1 $ — $ 49 Other assets 12 1 — 13 $ 60 $ 2 $ — $ 62 (1) Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations . These amounts are included in Other non-current assets . For further information regarding these amounts see Note 6. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | |
Summary of Inventories | At December 31, At December 31, 2017 2016 Materials and supplies $ 416 $ 391 In-process 131 130 Concentrate and copper cathode 83 67 Precious metals 49 29 $ 679 $ 617 |
STOCKPILES AND ORE ON LEACH P59
STOCKPILES AND ORE ON LEACH PADS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At December 31, At December 31, 2017 2016 Current: Stockpiles $ 330 $ 393 Ore on leach pads 346 370 $ 676 $ 763 Non-current: Stockpiles $ 1,502 $ 1,506 Ore on leach pads 346 358 $ 1,848 $ 1,864 |
Stockpiles and Ore on Leach Pads, by Segment | At December 31, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 441 $ 421 Phoenix 68 80 Twin Creeks 340 328 Long Canyon 34 9 CC&V 314 369 Yanacocha 270 367 Merian 25 27 Boddington 431 394 Tanami 4 19 Kalgoorlie 125 113 Ahafo 409 386 Akyem 63 114 $ 2,524 $ 2,627 |
PROPERTY, PLANT AND MINE DEVE60
PROPERTY, PLANT AND MINE DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND MINE DEVELOPMENT | |
Property, Plant and Mine Development | Depreciable At December 31, 2017 At December 31, 2016 Life Accumulated Net Book Accumulated Net Book (in years) Cost Depreciation Value Cost Depreciation Value Land $ 222 $ — $ 222 $ 218 $ — $ 218 Facilities and equipment - 27 15,979 (9,760) 6,219 15,115 (8,774) 6,341 Mine development - 27 5,260 (3,026) 2,234 4,773 (2,602) 2,171 Mineral interests - 27 1,975 (624) 1,351 1,975 (577) 1,398 Asset retirement cost - 27 876 (607) 269 833 (595) 238 Construction-in-progress 1,972 — 1,972 2,119 — 2,119 $ 26,284 $ (14,017) $ 12,267 $ 25,033 $ (12,548) $ 12,485 Leased assets included above in facilities and equipment - 27 $ 27 $ (15) $ 12 $ 27 $ (11) $ 16 Depreciable At December 31, 2017 At December 31, 2016 Life Accumulated Net Book Accumulated Net Book Mineral Interests (in years) Cost Depreciation Value Cost Depreciation Value Production stage - 22 $ 865 $ (624) $ 241 $ 816 $ (577) $ 239 Development stage 39 — 39 66 — 66 Exploration stage 1,071 — 1,071 1,093 — 1,093 $ 1,975 $ (624) $ 1,351 $ 1,975 $ (577) $ 1,398 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt | |
Debt | At December 31, 2017 At December 31, 2016 Current Non-Current Current Non-Current 2017 Convertible Senior Notes, net $ — $ — $ 561 $ — 2019 Senior Notes, net — — 624 2022 Senior Notes, net — 985 — 984 2035 Senior Notes, net — 594 — 594 2039 Senior Notes, net — 859 — 858 2042 Senior Notes, net — 984 — 984 Other (1) 4 14 5 5 $ 4 $ 4,061 $ 566 $ 4,049 (1) As of December 31, 2017, $14 of other financing obligations has been recorded related to the assets under construction for the Tanami Power project. |
2017 Convertible Senior Notes, net | |
Debt | |
Schedule of convertible debt | At December 31, 2016 Additional paid-in capital $ 123 Principal amount $ 575 Unamortized debt discount and issuance costs (14) Net carrying amount $ 561 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES | |
Other Liabilities | At December 31, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 124 $ 99 Reclamation and remediation liabilities 100 61 Accrued capital expenditures 77 53 Royalties 63 52 Accrued interest 52 57 Holt royalty obligation 15 13 Taxes other than income and mining 7 8 Derivative instruments 1 27 Other 20 37 $ 459 $ 407 Other non-current liabilities: Holt royalty obligation $ 228 $ 174 Income and mining taxes 47 50 Power supply agreements 32 31 Social development obligations 22 25 Other 13 46 $ 342 $ 326 |
RECLASSIFICATIONS OUT OF ACCU63
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Change in Accumulated Other Comprehensive Income (Loss) | Pension and Unrealized Gain Unrealized Gain Foreign Other (Loss) on (Loss) on Currency Post-retirement Cash flow Marketable Translation Benefit Hedge Securities, net Adjustments Adjustments Instruments Total Balance at December 31, 2015 $ (43) $ 116 $ (207) $ (200) $ (334) Change in other comprehensive income (loss) before reclassifications 45 2 (32) 11 26 Reclassifications from accumulated other comprehensive income (loss) (103) — 16 61 (26) Net current-period other comprehensive income (loss) (58) 2 (16) 72 — Balance at December 31, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (10) 12 (3) 5 4 Reclassifications from accumulated other comprehensive income (loss) (5) — 18 25 38 Net current-period other comprehensive income (loss) (15) 12 15 30 42 Balance at December 31, 2017 $ (116) $ 130 $ (208) $ (98) $ (292) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations Years Ended December 31, 2017 2016 2015 Marketable securities adjustments: Sale of marketable securities $ (5) $ (103) $ — Other income, net Impairment of marketable securities — — 107 Other income, net Total before tax (5) (103) 107 Tax benefit (expense) — — — Net of tax $ (5) $ (103) $ 107 Pension and other post-retirement benefit adjustments: Amortization $ 23 $ 19 $ 24 (1) Settlements 5 6 3 Other expense, net Total before tax 28 25 27 Tax benefit (expense) (10) (9) (9) Net of tax $ 18 $ 16 $ 18 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 27 $ 59 $ 66 Costs applicable to sales Operating cash flow hedges (ineffective portion) — (1) (2) Other income, net Interest rate contracts 10 33 18 Interest expense, net Total before tax 37 91 82 Tax benefit (expense) (12) (30) (26) Net of tax $ 25 $ 61 $ 56 Total reclassifications for the period, net of tax $ 38 $ (26) $ 181 (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSET64
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities | Years Ended December 31, 2017 2016 2015 Decrease (increase) in operating assets: Trade and other accounts receivables $ 66 $ (130) $ 97 Inventories, stockpiles and ore on leach pads (221) (302) (287) EGR refinery and other assets (1) — — (36) Other assets (52) (83) 49 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 18 26 8 EGR refinery and other liabilities (1) — — 36 Reclamation and remediation liabilities (78) (54) (61) Accrued tax liabilities 93 59 (12) $ (174) $ (484) $ (206) (1) In July 2015, the Company sold its ownership interest in EGR. |
SUPPLEMENTAL CASH FLOW INFORM65
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Supplemental Cash Flow Information | Years Ended December 31, 2017 2016 2015 Income and mining taxes paid, net of refunds $ 214 $ 85 $ 77 Interest paid, net of amounts capitalized $ 239 $ 276 $ 306 |
CONDENSED CONSOLIDATING FINAN66
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Year Ended December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,934 $ 5,414 $ — $ 7,348 Costs and expenses: Costs applicable to sales (1) — 1,190 2,848 — 4,038 Depreciation and amortization 4 351 894 — 1,249 Reclamation and remediation — 49 128 — 177 Exploration — 43 136 — 179 Advanced projects, research and development — 21 122 — 143 General and administrative — 80 157 — 237 Impairment of long-lived assets — — 14 — 14 Other expense, net — 12 20 — 32 4 1,746 4,319 — 6,069 Other income (expense): Other income, net 41 6 7 — 54 Interest income - intercompany 149 43 41 (233) — Interest expense - intercompany (39) (4) (190) 233 — Interest expense, net (222) (7) (12) — (241) (71) 38 (154) — (187) Income (loss) before income and mining tax and other items (75) 226 941 — 1,092 Income and mining tax benefit (expense) (34) (21) (1,070) — (1,125) Equity income (loss) of affiliates 11 (124) (16) 113 (16) Net income (loss) from continuing operations (98) 81 (145) 113 (49) Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) (98) 81 (183) 113 (87) Net loss (income) attributable to noncontrolling interests: Continuing operations — — (11) — (11) Discontinued operations — — — — — — — (11) — (11) Net income (loss) attributable to Newmont stockholders $ (98) $ 81 $ (194) $ 113 $ (98) Comprehensive income (loss) $ (56) $ 92 $ (194) $ 113 $ (45) Comprehensive loss (income) attributable to noncontrolling interests — — (11) — (11) Comprehensive income (loss) attributable to Newmont stockholders $ (56) $ 92 $ (205) $ 113 $ (56) (1) Excludes Depreciation and amortization and Reclamation and remediation . Year Ended December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,972 $ 4,739 $ — $ 6,711 Costs and expenses: Costs applicable to sales (1) — 1,227 2,545 — 3,772 Depreciation and amortization 4 335 881 — 1,220 Reclamation and remediation — 24 155 — 179 Exploration — 35 113 — 148 Advanced projects, research and development — 11 123 — 134 General and administrative — 90 143 — 233 Impairment of long-lived assets — 1 976 — 977 Other expense, net — 30 28 — 58 4 1,753 4,964 — 6,721 Other income (expense): Other income, net (69) 14 124 — 69 Interest income - intercompany 132 — 46 (178) — Interest expense - intercompany (45) — (133) 178 — Interest expense, net (254) (6) (13) — (273) (236) 8 24 — (204) Income (loss) before income and mining tax and other items (240) 227 (201) — (214) Income and mining tax benefit (expense) 232 (55) (740) — (563) Equity income (loss) of affiliates (619) (1,344) 411 1,539 (13) Net income (loss) from continuing operations (627) (1,172) (530) 1,539 (790) Net income (loss) from discontinued operations — — (133) — (133) Net income (loss) (627) (1,172) (663) 1,539 (923) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 570 — 570 Discontinued operations — — (274) — (274) — — 296 — 296 Net income (loss) attributable to Newmont stockholders $ (627) $ (1,172) $ (367) $ 1,539 $ (627) Comprehensive income (loss) $ (627) $ (1,170) $ (665) $ 1,539 $ (923) Comprehensive loss (income) attributable to noncontrolling interests — — 296 — 296 Comprehensive income (loss) attributable to Newmont stockholders $ (627) $ (1,170) $ (369) $ 1,539 $ (627) (1) Excludes Depreciation and amortization and Reclamation and remediation . Year Ended December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,829 $ 4,256 $ — $ 6,085 Costs and expenses: Costs applicable to sales (1) — 1,225 2,353 — 3,578 Depreciation and amortization 4 319 779 — 1,102 Reclamation and remediation — 25 228 — 253 Exploration — 30 126 — 156 Advanced projects, research and development — 12 114 — 126 General and administrative — 72 169 — 241 Impairment of long-lived assets — 4 52 — 56 Other expense, net — 29 87 — 116 4 1,716 3,908 — 5,628 Other income (expense): Other income, net (10) 29 116 — 135 Interest income - intercompany 130 8 23 (161) — Interest expense - intercompany (20) — (141) 161 — Interest expense, net (289) (7) (1) — (297) (189) 30 (3) — (162) Income (loss) before income and mining tax and other items (193) 143 345 — 295 Income and mining tax benefit (expense) 67 (10) (448) — (391) Equity income (loss) of affiliates 346 (304) (7) (80) (45) Net income (loss) from continuing operations 220 (171) (110) (80) (141) Net income (loss) from discontinued operations — — 445 — 445 Net income (loss) 220 (171) 335 (80) 304 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 140 — 140 Discontinued operations — — (284) 60 (224) — — (144) 60 (84) Net income (loss) attributable to Newmont stockholders $ 220 $ (171) $ 191 $ (20) $ 220 Comprehensive income (loss) $ 364 $ (127) $ 422 $ (211) $ 448 Comprehensive loss (income) attributable to noncontrolling interests — — (139) 55 (84) Comprehensive income (loss) attributable to Newmont stockholders $ 364 $ (127) $ 283 $ (156) $ 364 (1) Excludes Depreciation and amortization and Reclamation and remediation . |
Condensed Consolidating Statement of Cash Flows | Year Ended December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ (129) $ (207) $ 2,686 $ — $ 2,350 Net cash provided by (used in) operating activities of discontinued operations — — (15) — (15) Net cash provided by (used in) operating activities (129) (207) 2,671 — 2,335 Investing activities: Additions to property, plant and mine development — (253) (613) — (866) Purchase of investments (114) — (16) — (130) Proceeds from sales of investments — — 35 — 35 Acquisitions, net — — (15) — (15) Proceeds from sales of other assets — — 5 — 5 Proceeds from sale of Batu Hijau — — — — — Other — 2 8 — 10 Net cash provided by (used in) investing activities of continuing operations (114) (251) (596) — (961) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (114) (251) (596) — (961) Financing activities: Repayment of debt (575) (3) (2) — (580) Distributions to noncontrolling interests — — (178) — (178) Dividends paid to common stockholders (134) — — — (134) Funding from noncontrolling interests — — 94 — 94 Acquisition of noncontrolling interests — — (48) — (48) Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Dividends paid to noncontrolling interests — — — — — Proceeds from stock issuance, net — — — — — Sale of noncontrolling interests — — — — — Net intercompany borrowings (repayments) 955 473 (1,428) — — Other (3) — (2) — (5) Net cash provided by (used in) financing activities of continuing operations 243 457 (1,564) — (864) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 243 457 (1,564) — (864) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 6 — 6 Net change in cash, cash equivalents and restricted cash — (1) 517 — 516 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 517 — 516 Cash, cash equivalents and restricted cash at beginning of period — 1 2,781 — 2,782 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,298 $ — $ 3,298 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 38 — 38 Total cash, cash equivalents and restricted cash $ — $ — $ 3,298 $ — $ 3,298 Year Ended December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 2,240 $ 1,342 $ 123 $ (1,782) $ 1,923 Net cash provided by (used in) operating activities of discontinued operations — — 869 — 869 Net cash provided by (used in) operating activities 2,240 1,342 992 (1,782) 2,792 Investing activities: Additions to property, plant and mine development — (261) (872) — (1,133) Purchases of investments — — (15) — (15) Proceeds from sales of investments — 8 187 — 195 Acquisitions, net — — (6) — (6) Proceeds from sales of other assets — — — 9 Proceeds from sale of Batu Hijau — — 920 — 920 Other — — (4) — (4) Net cash provided by (used in) investing activities of continuing operations — (253) 219 — (34) Net cash provided by (used in) investing activities of discontinued operations — — (46) — (46) Net cash provided by (used in) investing activities — (253) 173 — (80) Financing activities: Repayment of debt (1,307) (3) (2) — (1,312) Distributions to noncontrolling interests — — (3) — (3) Dividends paid to common stockholders (67) (1,512) (270) 1,782 (67) Funding from noncontrolling interests — — 66 — 66 Acquisition of noncontrolling interests — — (19) — (19) Payments for withholding of employee taxes related to stock-based compensation — (6) — — (6) Dividends paid to noncontrolling interests — — (146) — (146) Proceeds from stock issuance, net — — — — — Proceeds from sale of noncontrolling interests — — — — — Net intercompany borrowings (repayments) (866) (748) 1,614 — — Other — — 1 — 1 Net cash provided by (used in) financing activities of continuing operations (2,240) (2,269) 1,241 1,782 (1,486) Net cash provided by (used in) financing activities of discontinued operations — — (331) — (331) Net cash provided by (used in) financing activities (2,240) (2,269) 910 1,782 (1,817) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net change in cash, cash equivalents and restricted cash — (1,180) 2,077 — 897 Less net cash provided by (used in) Batu Hijau discontinued operations — — 503 — 503 — (1,180) 1,574 — 394 Cash, cash equivalents and restricted cash at beginning of period — 1,181 1,207 — 2,388 Cash, cash equivalents and restricted cash at end of period $ — $ 1 $ 2,781 $ — $ 2,782 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 25 — 25 Total cash, cash equivalents and restricted cash $ — $ 1 $ 2,781 $ — $ 2,782 Year Ended December 31, 2015 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 7 $ 422 $ 1,159 $ — $ 1,588 Net cash provided by (used in) operating activities of discontinued operations — — 557 — 557 Net cash provided by (used in) operating activities 7 422 1,716 — 2,145 Investing activities: Additions to property, plant and mine development — (326) (985) — (1,311) Purchases of investments — — (17) — (17) Proceeds from sales of investments — 25 4 — 29 Acquisitions, net (821) — (2) — (823) Proceeds from sales of other assets 102 18 83 — 203 Proceeds from sale of Batu Hijau — — — — — Other — — (32) — (32) Net cash provided by (used in) investing activities of continuing operations (719) (283) (949) — (1,951) Net cash provided by (used in) investing activities of discontinued operations — — (90) — (90) Net cash provided by (used in) investing activities (719) (283) (1,039) — (2,041) Financing activities: Repayment of debt (200) (2) (27) — (229) Distributions of noncontrolling interests — — — — — Dividends paid to common stockholders (52) — — — (52) Funding from noncontrolling interests — — 109 — 109 Acquisition of noncontrolling interests — — (8) — (8) Payments for withholding of employee taxes related to stock-based compensation — — — — — Dividends paid to noncontrolling interests — — (3) — (3) Proceeds from stock issuance, net 675 — — — 675 Proceeds from sale of noncontrolling interests — 3 34 — 37 Net intercompany borrowings (repayments) 291 (57) (234) — — Other (2) 1 (1) — (2) Net cash provided by (used in) financing activities of continuing operations 712 (55) (130) — 527 Net cash provided by (used in) financing activities of discontinued operations — — (225) — (225) Net cash provided by (used in) financing activities 712 (55) (355) — 302 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (24) — (24) Net change in cash, cash equivalents and restricted cash — 84 298 — 382 Less net cash provided by (used in) Batu Hijau discontinued operations — — 254 — 254 — 84 44 — 128 Cash, cash equivalents and restricted cash at beginning of period — 1,097 1,163 — 2,260 Cash, cash equivalents and restricted cash at end of period $ — $ 1,181 $ 1,207 $ — $ 2,388 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ 1,181 $ 1,182 $ — $ 2,363 Restricted cash included in Other current assets — — — — — Restricted cash included in Other noncurrent assets — — 25 — 25 Total cash, cash equivalents and restricted cash $ — $ 1,181 $ 1,207 $ — $ 2,388 |
Condensed Consolidating Balance Sheet | At December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Trade receivables — 18 106 — 124 Other accounts receivables — — 113 — 113 Intercompany receivable 2,053 4,601 3,484 (10,138) — Investments — — 62 — 62 Inventories — 181 498 — 679 Stockpiles and ore on leach pads — 196 480 — 676 Other current assets — 38 115 — 153 Current assets 2,053 5,034 8,117 (10,138) 5,066 Property, plant and mine development, net 17 3,067 9,210 (27) 12,267 Investments 106 4 170 — 280 Investments in subsidiaries 12,086 (311) — (11,775) — Stockpiles and ore on leach pads — 648 1,200 — 1,848 Deferred income tax assets 84 (1) 454 — 537 Non-current intercompany receivable 1,700 401 7 (2,108) — Other non-current assets — 255 310 — 565 Total assets $ 16,046 $ 9,097 $ 19,468 $ (24,048) $ 20,563 Liabilities: Debt $ — $ 1 $ 3 $ — $ 4 Accounts payable — 83 292 — 375 Intercompany payable 1,338 2,145 6,655 (10,138) — Employee-related benefits — 143 166 — 309 Income and mining taxes — 18 230 — 248 Other current liabilities 52 163 244 — 459 Current liabilities 1,390 2,553 7,590 (10,138) 1,395 Debt 4,040 4 17 — 4,061 Reclamation and remediation liabilities — 287 1,867 — 2,154 Deferred income tax liabilities — 121 474 — 595 Employee-related benefits — 222 164 — 386 Non-current intercompany payable 7 — 2,128 (2,135) — Other non-current liabilities — 18 324 — 342 Total liabilities 5,437 3,205 12,564 (12,273) 8,933 Equity: Newmont stockholders’ equity 10,609 5,892 5,883 (11,775) 10,609 Noncontrolling interests — — 1,021 — 1,021 Total equity 10,609 5,892 6,904 (11,775) 11,630 Total liabilities and equity $ 16,046 $ 9,097 $ 19,468 $ (24,048) $ 20,563 At December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 139 — 160 Other accounts receivables — 2 181 — 183 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 199 — 207 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 243 — 467 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
UNAUDITED SUPPLEMENTARY DATA (T
UNAUDITED SUPPLEMENTARY DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
UNAUDITED SUPPLEMENTARY DATA | |
Quarterly Financial Information Tables | 2017 Three Months Ended March 31 June 30 September 30 December 31 Sales $ 1,659 $ 1,875 $ 1,879 $ 1,935 Gross profit (1) $ 403 $ 524 $ 470 $ 487 Income (loss) from continuing operations (2) $ 69 $ 192 $ 213 $ (534) Income (loss) from discontinued operations (2) (23) (15) (7) 7 Net income (loss) attributable to Newmont stockholders $ 46 $ 177 $ 206 $ (527) Income (loss) per common share Basic: Continuing operations $ 0.13 $ 0.36 $ 0.39 $ (0.99) Discontinued operations (0.04) (0.03) (0.01) 0.01 $ 0.09 $ 0.33 $ 0.38 $ (0.98) Diluted: Continuing operations $ 0.13 $ 0.36 $ 0.39 $ (0.99) Discontinued operations (0.04) (0.03) (0.01) 0.01 $ 0.09 $ 0.33 $ 0.38 $ (0.98) Weighted average common shares (millions) Basic 532 533 533 533 Diluted 533 535 536 536 Cash dividends declared per common share $ 0.050 $ 0.050 $ 0.075 $ 0.075 Closing price of common stock $ 32.96 $ 32.39 $ 37.51 $ 37.52 2016 Three Months Ended March 31 June 30 September 30 December 31 Sales $ 1,462 $ 1,669 $ 1,791 $ 1,789 Gross profit (1) $ 314 $ 465 $ 448 $ 313 Income (loss) from continuing operations (2) $ (12) $ 14 $ 169 $ (391) Income (loss) from discontinued operations (2) 64 9 (527) 47 Net income (loss) attributable to Newmont stockholders $ 52 $ 23 $ (358) $ (344) Income (loss) per common share Basic: Continuing operations $ (0.02) $ 0.02 $ 0.32 $ (0.73) Discontinued operations 0.12 0.02 (0.99) 0.08 $ 0.10 $ 0.04 $ (0.67) $ (0.65) Diluted: Continuing operations $ (0.02) $ 0.02 $ 0.32 $ (0.73) Discontinued operations 0.12 0.02 (0.99) 0.08 $ 0.10 $ 0.04 $ (0.67) $ (0.65) Weighted average common shares (millions) Basic 530 531 531 531 Diluted 531 533 533 534 Cash dividends declared per common share $ 0.025 $ 0.025 $ 0.025 $ 0.050 Closing price of common stock $ 26.58 $ 39.12 $ 39.29 $ 34.07 (1) Sales less Costs applicable to sales , Depreciation and amortization and Reclamation and remediation . (2) Attributable to Newmont stockholders. |
SUMMARY OF SIGNIFICANT ACCOUN68
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risks and Uncertainties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Risks and Uncertainties | |||
Total Assets | $ 20,563 | $ 21,031 | $ 25,130 |
Conga | Political and financial results contingencies | |||
Risks and Uncertainties | |||
Total Assets | $ 1,650 | $ 1,666 | |
Conga | Political and financial results contingencies | Minimum | |||
Risks and Uncertainties | |||
Pre-development period | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN69
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation - Other (Details) - Merian | 1 Months Ended | 12 Months Ended |
Nov. 30, 2014 | Dec. 31, 2017 | |
Staatsolie | ||
Principles of Consolidation | ||
Option to participate, maximum (as a percent) | 25.00% | |
Primary Beneficiary | ||
Principles of Consolidation | ||
Ownership interest held (as a percent) | 75.00% |
SUMMARY OF SIGNIFICANT ACCOUN70
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Investments | |
Period of continuous impairment to qualify as other than temporary decline | 6 months |
Maximum | |
Investments | |
Period of continuous impairment to qualify as other than temporary decline | 9 months |
SUMMARY OF SIGNIFICANT ACCOUN71
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets Held for Sale and Discontinued Operations (Details) | Nov. 02, 2016 |
PTNNT | Discontinued operations disposed of by sale | PTNNT | |
Agreement terms and other information | |
Ownership interest held (as a percent) | 48.50% |
SUMMARY OF SIGNIFICANT ACCOUN72
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stockpiles and Ore on Leach Pads (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Stockpiles, Ore on Leach Pads and Inventories | |
Percentage of copper in cathodes produced in electrowinning | 99.99% |
Minimum | |
Stockpiles, Ore on Leach Pads and Inventories | |
Leach pad recovery rate | 50.00% |
Maximum | |
Stockpiles, Ore on Leach Pads and Inventories | |
Leach pad recovery rate | 95.00% |
SUMMARY OF SIGNIFICANT ACCOUN73
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Income and Mining Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue Recognition | ||
Concentrate sales, percentage of provisional sales prices | 100.00% | |
Income and Mining Taxes | ||
Deferred tax on unremitted earnings | $ 0 | $ 6 |
Look-back period | 3 years | |
Maximum | ||
Income and Mining Taxes | ||
Provisional accounting estimates, period | 1 year |
SUMMARY OF SIGNIFICANT ACCOUN74
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements - Stock-based compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recently Adopted Accounting Pronouncements | |||
Net cash provided by operating activities of continuing operations | $ (2,350) | $ (1,923) | $ (1,588) |
Net cash provided by (used in) financing activities of continuing operations | $ (864) | (1,486) | $ 527 |
ASU No. 2016-09 - Stock-based compensation | Reclassified | |||
Recently Adopted Accounting Pronouncements | |||
Net cash provided by operating activities of continuing operations | (6) | ||
Net cash provided by (used in) financing activities of continuing operations | $ (6) |
SUMMARY OF SIGNIFICANT ACCOUN75
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements - Restricted Cash (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Recently Adopted Accounting Pronouncements | |||
Net cash provided by (used in) financing activities of discontinued operations | $ (331) | $ (225) | |
Other | $ (5) | 1 | (2) |
ASU No. 2016-18 - Restricted Cash | |||
Recently Adopted Accounting Pronouncements | |||
Net cash provided by (used in) financing activities of discontinued operations | (10) | 8 | |
Other | $ 0 | $ (2) |
SUMMARY OF SIGNIFICANT ACCOUN76
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements - Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments | |||
Accumulated other comprehensive income (loss) | $ (292) | $ (334) | |
Retained earnings | 484 | 716 | |
Statement of cash flows | |||
Net cash provided by (used in) financing activities | (864) | (1,817) | $ 302 |
Net cash provided by (used in) investing activities | (961) | (80) | (2,041) |
Net cash provided by (used in) operating activities | 2,335 | 2,792 | $ 2,145 |
Forecast adjustment | ASU No. 2014-09 Revenue Recognition | |||
Revenue Recognition | |||
Cumulative effect adjustment | 0 | ||
Forecast adjustment | ASU No. 2016-01 Financial Instruments | |||
Investments | |||
Accumulated other comprehensive income (loss) | 115 | ||
Retained earnings | 115 | ||
Forecast adjustment | Accreted interest reclassification | ASU No. 2016-15 Statement of Cash Flows | |||
Statement of cash flows | |||
Net cash provided by (used in) financing activities | 196 | ||
Net cash provided by (used in) operating activities | (196) | ||
Forecast adjustment | Contingent consideration reclassification | ASU No. 2016-15 Statement of Cash Flows | |||
Statement of cash flows | |||
Net cash provided by (used in) investing activities | 15 | 6 | |
Net cash provided by (used in) operating activities | $ (15) | $ (6) |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) from discontinued operations, net of tax | |||
Batu Hijau operations | $ 0 | ||
Net income (loss) from discontinued operations (Note 3) | (38) | $ (133) | $ 445 |
Discontinued operations disposed of by sale | |||
Net income (loss) from discontinued operations, net of tax | |||
Net income (loss) from discontinued operations (Note 3) | (38) | ||
Discontinued operations - held-for-sale or disposed of | |||
Net income (loss) from discontinued operations, net of tax | |||
Net income (loss) from discontinued operations (Note 3) | (133) | 445 | |
PTNNT | Discontinued operations - Held-for-sale | |||
Net income (loss) from discontinued operations, net of tax | |||
Batu Hijau operations | 418 | ||
Net income (loss) from discontinued operations (Note 3) | 418 | ||
PTNNT | Discontinued operations - held-for-sale or disposed of | |||
Net income (loss) from discontinued operations, net of tax | |||
Batu Hijau operations | 517 | ||
Net income (loss) from discontinued operations (Note 3) | (83) | ||
Loss on sale of Batu Hijau | (600) | ||
Holt Royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | |||
Net income (loss) from discontinued operations, net of tax | |||
Net income (loss) from discontinued operations (Note 3) | $ (44) | $ (50) | $ 27 |
DISCONTINUED OPERATIONS - Holt
DISCONTINUED OPERATIONS - Holt Royalty Obligation (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2011 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disposal group | ||||
Net income (loss) from discontinued operations (Note 3) | $ (38) | $ (133) | $ 445 | |
Discontinued operations disposed of by sale | ||||
Disposal group | ||||
Net income (loss) from discontinued operations (Note 3) | (38) | |||
Holloway Mining Company | Discontinued operations disposed of by sale | Holt Royalty obligation | ||||
Disposal group | ||||
Fair value of royalty obligation | 243 | 187 | ||
Net income (loss) from discontinued operations (Note 3) | (44) | (50) | 27 | |
Income and mining tax benefit (expense) | 24 | 19 | (11) | |
Royalty paid | $ 12 | $ 11 | $ 12 | |
Holloway Mining Company | Discontinued operations disposed of by sale | Holt Royalty obligation | Ontario Court Of Appeal Ruling | Newmont Canada | ||||
Disposal group | ||||
Sliding scale royalty, percentage of net smelter returns | 0.013% |
DISCONTINUED OPERATIONS - Batu
DISCONTINUED OPERATIONS - Batu Hijau Terms (Details) $ in Millions | Nov. 02, 2016USD ($)$ / lb | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Agreement terms and other information | |||
Cash proceeds from sale of ownership interest | $ 920 | ||
PTNNT | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Increase in fair value of contingent payments receivable | $ 6 | ||
PTNNT | PTNNT | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest held before transaction (as a percent) | 48.50% | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Cash proceeds from sale of ownership interest | $ 920 | ||
Batu Hijau contingent consideration | $ 13 | ||
Loss on sale of Batu Hijau | 600 | ||
Increase in fair value of contingent payments receivable | 6 | ||
Tax expense related to change in fair value of contingent consideration | 4 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Maximum | |||
Agreement terms and other information | |||
Contingent payments receivable | $ 403 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Metal Price Upside contingent payment | |||
Agreement terms and other information | |||
Minimum quarterly average copper price per pound threshold (dollars per pound) | $ / lb | 3.75 | ||
Contingent consideration, percentage of the product of the difference used in calculation | 30.00% | ||
Pounds of copper shipped, percentage threshold for contingent consideration | 96.50% | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Metal Price Upside contingent payment | Maximum | |||
Agreement terms and other information | |||
Contingent payments receivable | $ 133 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Elang Development deferred payment | |||
Agreement terms and other information | |||
Contingent payments receivable | 118 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Contingent Payment | |||
Agreement terms and other information | |||
Batu Hijau contingent consideration | $ 23 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Contingent Payment | Maximum | |||
Agreement terms and other information | |||
Contingent payments receivable | 152 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Contingent Payment, Phase 7 Production | |||
Agreement terms and other information | |||
Contingent consideration, partial payment due, Phase 7 and Copper Price thresholds are met | $ 76 | ||
Minimum annual average copper price per pound threshold (dollars per pound) | $ / lb | 2.75 | ||
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | Contingent Payment, Concentrate Shipment Requirement | |||
Agreement terms and other information | |||
Minimum annual average copper price per pound threshold (dollars per pound) | $ / lb | 3.25 | ||
Contingent Consideration, payment due after both the second anniversary of the first shipment of concentrate is produced and in which the LME annual average copper price exceeds threshold | $ 76 | ||
Batu Hijau share sale and purchase agreement | Nusa Tenggara Partnership | PTNNT | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Percent ownership held by Newmont | 56.25% | ||
Batu Hijau share sale and purchase agreement | Nusa Tenggara Partnership | PTNNT | Nusa Tenggara Mining Corporation | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest in partnership (as a percent) | 43.75% | ||
Batu Hijau share sale and purchase agreement | PTNNT | PTNNT | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest held before transaction (as a percent) | 48.50% | ||
Ownership interest held after transaction (as a percent) | 0.00% | ||
Batu Hijau share sale and purchase agreement | PTNNT | PTNNT | Nusa Tenggara Partnership | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest held (as a percent) | 56.00% | ||
Batu Hijau share sale and purchase agreement | PTNNT | PTNNT | PTPI | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest provided as security for loan, percentage | 17.80% | ||
Batu Hijau share sale and purchase agreement | PTNNT | PTNNT | PTIMI | Discontinued operations disposed of by sale | |||
Agreement terms and other information | |||
Ownership interest held (as a percent) | 2.20% |
DISCONTINUED OPERATIONS - Bat80
DISCONTINUED OPERATIONS - Batu Hijau Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Costs and expenses | |||||||||||
Net income (loss) from discontinued operations | $ 0 | ||||||||||
Net income (loss) from discontinued operations, net of tax | (38) | $ (133) | $ 445 | ||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | (274) | (224) | |||||||||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ 7 | $ (7) | $ (15) | $ (23) | $ 47 | $ (527) | $ 9 | $ 64 | (38) | (407) | 221 |
Discontinued operations - held-for-sale or disposed of | |||||||||||
Costs and expenses | |||||||||||
Net income (loss) from discontinued operations, net of tax | (133) | 445 | |||||||||
Discontinued operations disposed of by sale | |||||||||||
Costs and expenses | |||||||||||
Net income (loss) from discontinued operations, net of tax | $ (38) | ||||||||||
PTNNT | Discontinued operations - held-for-sale or disposed of | |||||||||||
Net income (loss) from discontinued operations, net of tax | |||||||||||
Sales | 1,668 | ||||||||||
Costs and expenses | |||||||||||
Costs applicable to sales (1) | 668 | ||||||||||
Depreciation and amortization | 134 | ||||||||||
Reclamation and remediation | 14 | ||||||||||
Advanced projects, research and development | 2 | ||||||||||
General and administrative | 10 | ||||||||||
Other expense (income), net | (1) | ||||||||||
Total Costs and expenses | 827 | ||||||||||
Interest expense, net | (15) | ||||||||||
Income (loss) before income and mining tax and other items | 826 | ||||||||||
Income and mining tax benefit (expense) | (309) | ||||||||||
Net income (loss) from discontinued operations | 517 | ||||||||||
Loss on sale of Batu Hijau, net of tax | 600 | ||||||||||
Net income (loss) from discontinued operations, net of tax | (83) | ||||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | (274) | ||||||||||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ (357) | ||||||||||
PTNNT | Discontinued operations - Held-for-sale | |||||||||||
Net income (loss) from discontinued operations, net of tax | |||||||||||
Sales | 1,644 | ||||||||||
Costs and expenses | |||||||||||
Costs applicable to sales (1) | 772 | ||||||||||
Depreciation and amortization | 137 | ||||||||||
Reclamation and remediation | 13 | ||||||||||
Advanced projects, research and development | 7 | ||||||||||
General and administrative | 6 | ||||||||||
Other expense (income), net | 10 | ||||||||||
Total Costs and expenses | 945 | ||||||||||
Interest expense, net | (28) | ||||||||||
Income (loss) before income and mining tax and other items | 671 | ||||||||||
Income and mining tax benefit (expense) | (253) | ||||||||||
Net income (loss) from discontinued operations | 418 | ||||||||||
Net income (loss) from discontinued operations, net of tax | 418 | ||||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | (224) | ||||||||||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ 194 |
DISCONTINUED OPERATIONS - PTNNT
DISCONTINUED OPERATIONS - PTNNT Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows | ||||||
Net cash provided by (used in) operating activities | [1] | $ (15) | $ 869 | $ 557 | ||
Net cash provided by (used in) investing activities | (46) | (90) | ||||
Net cash provided by (used in) financing activities | (331) | (225) | ||||
Repayments of Long-term Debt | $ 580 | 1,312 | 229 | |||
Discontinued operations - held-for-sale or disposed of | PTNNT | ||||||
Cash flows | ||||||
Net cash provided by (used in) operating activities | 880 | |||||
Net cash provided by (used in) investing activities | (46) | |||||
Net cash provided by (used in) financing activities | (331) | |||||
Net cash provided by (used in) discontinued operations | $ 503 | |||||
Discontinued operations - Held-for-sale | PTNNT | ||||||
Cash flows | ||||||
Net cash provided by (used in) operating activities | 569 | |||||
Net cash provided by (used in) investing activities | (90) | |||||
Net cash provided by (used in) financing activities | (225) | |||||
Net cash provided by (used in) discontinued operations | $ 254 | |||||
Discontinued operations - Held-for-sale | PTNNT | PTNNT Revolving Credit Facility | ||||||
Cash flows | ||||||
Repayments of Long-term Debt | $ 190 | $ 140 | ||||
[1] | Net cash provided by operating activities of discontinued operations includes $(3) related to closing costs for the sale of Batu Hijau that were paid in 2017, $-, $880 and $569 related to the operating activities of Batu Hijau in 2017, 2016 and 2015, respectively, and $(12), $(11) and $(12) for 2017, 2016 and 2015, respectively, related to the Holt royalty obligation, all of which were paid out of Cash and cash equivalents. For additional information regarding our discontinued operations, including cash flows from Batu Hijau, see Note 3. |
BUSINESS ACQUISITION - Consider
BUSINESS ACQUISITION - Consideration (Details) - USD ($) $ in Millions | Aug. 03, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 08, 2015 |
Acquisition price | |||||
Proceeds from stock issuance, net | $ 675 | ||||
Acquisition costs | $ 2 | $ 10 | 19 | ||
Cripple Creek & Victor mine | |||||
Acquisition price | |||||
Ownership interest acquired | 100.00% | ||||
Acquisition price | $ 821 | ||||
Adjustments to the purchase price allocation | $ 0 | $ 0 | |||
Smelter Return Royalty | Cripple Creek & Victor mine | |||||
Acquisition price | |||||
Net smelter return royalty (as a percent) | 2.50% | ||||
Fair value of net smelter return royalty | $ 0 | ||||
Other expense, net | Cripple Creek & Victor mine | |||||
Acquisition price | |||||
Acquisition costs | $ 12 |
BUSINESS ACQUISITION - Recogniz
BUSINESS ACQUISITION - Recognized assets and liabilities (Details) - Cripple Creek & Victor mine $ in Millions | Jun. 30, 2016USD ($) |
Assets: | |
Cash and cash equivalents | $ 2 |
Inventories | 15 |
Stockpiles and ore on leach pads | 75 |
Other current assets | 1 |
Current assets | 93 |
Property, plant and mine development, net | 671 |
Stockpiles and ore on leach pads | 175 |
Total assets | 939 |
Liabilities: | |
Debt | 3 |
Accounts Payable | 28 |
Employee-related benefits | 2 |
Other current liabilities | 12 |
Current liabilities | 45 |
Debt | 10 |
Reclamation and remediation liabilities | 63 |
Total liabilities | 118 |
Net assets acquired | $ 821 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Segment Information | ||||||||||||
Number of operating segments | segment | 4 | |||||||||||
Sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 | |
Costs applicable to sales | [1] | 4,038 | 3,772 | 3,578 | ||||||||
Depreciation and amortization | 1,249 | 1,220 | 1,102 | |||||||||
Advanced Projects, Research and Development, and Exploration | 322 | 282 | 282 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 1,092 | (214) | 295 | |||||||||
Total Assets | 20,563 | 21,031 | 20,563 | 21,031 | 25,130 | |||||||
Capital Expenditures | 890 | 1,077 | 1,370 | |||||||||
Additional disclosures | ||||||||||||
Increase (decrease) in accrued capital expenditures | 24 | (56) | 59 | |||||||||
Consolidated capital expenditures on a cash basis | 866 | 1,133 | 1,311 | |||||||||
Corporate and other | ||||||||||||
Segment Information | ||||||||||||
Depreciation and amortization | 11 | 10 | 15 | |||||||||
Advanced Projects, Research and Development, and Exploration | 53 | 51 | 72 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (504) | (506) | (696) | |||||||||
Total Assets | 3,585 | 3,524 | 3,585 | 3,524 | 6,848 | |||||||
Capital Expenditures | 10 | 11 | 38 | |||||||||
North America | Operating Segments | ||||||||||||
Segment Information | ||||||||||||
Sales | 2,821 | 2,597 | 1,999 | |||||||||
Costs applicable to sales | 1,601 | 1,514 | 1,334 | |||||||||
Depreciation and amortization | 545 | 443 | 332 | |||||||||
Advanced Projects, Research and Development, and Exploration | 91 | 71 | 60 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 520 | 526 | 249 | |||||||||
Total Assets | 6,974 | 7,191 | 6,974 | 7,191 | 7,140 | |||||||
Capital Expenditures | 303 | 419 | 545 | |||||||||
North America | Operating Segments | Carlin | ||||||||||||
Segment Information | ||||||||||||
Sales | 1,217 | 1,182 | 1,027 | |||||||||
Costs applicable to sales | 795 | 797 | 790 | |||||||||
Depreciation and amortization | 221 | 200 | 198 | |||||||||
Advanced Projects, Research and Development, and Exploration | 18 | 19 | 16 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 139 | 144 | 12 | |||||||||
Total Assets | 2,292 | 2,278 | 2,292 | 2,278 | 2,240 | |||||||
Capital Expenditures | 174 | 173 | 270 | |||||||||
North America | Operating Segments | Phoenix | ||||||||||||
Segment Information | ||||||||||||
Sales | 345 | 334 | 330 | |||||||||
Costs applicable to sales | 236 | 263 | 254 | |||||||||
Depreciation and amortization | 62 | 78 | 63 | |||||||||
Advanced Projects, Research and Development, and Exploration | 5 | 1 | 3 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 31 | (20) | (12) | |||||||||
Total Assets | 884 | 917 | 884 | 917 | 1,002 | |||||||
Capital Expenditures | 25 | 22 | 25 | |||||||||
North America | Operating Segments | Phoenix | Gold | ||||||||||||
Segment Information | ||||||||||||
Sales | 257 | 248 | 221 | |||||||||
Costs applicable to sales | 181 | 164 | 163 | |||||||||
Depreciation and amortization | 47 | 51 | 42 | |||||||||
North America | Operating Segments | Phoenix | Copper | ||||||||||||
Segment Information | ||||||||||||
Sales | 88 | 86 | 109 | |||||||||
Costs applicable to sales | 55 | 99 | 91 | |||||||||
Depreciation and amortization | 15 | 27 | 21 | |||||||||
North America | Operating Segments | Twin Creeks | ||||||||||||
Segment Information | ||||||||||||
Sales | 465 | 563 | 551 | |||||||||
Costs applicable to sales | 226 | 234 | 246 | |||||||||
Depreciation and amortization | 63 | 51 | 51 | |||||||||
Advanced Projects, Research and Development, and Exploration | 9 | 8 | 8 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 163 | 266 | 240 | |||||||||
Total Assets | 1,142 | 1,135 | 1,142 | 1,135 | 1,141 | |||||||
Capital Expenditures | 52 | 37 | 48 | |||||||||
North America | Operating Segments | Long Canyon | ||||||||||||
Segment Information | ||||||||||||
Sales | 219 | 27 | ||||||||||
Costs applicable to sales | 59 | 4 | ||||||||||
Depreciation and amortization | 74 | 5 | ||||||||||
Advanced Projects, Research and Development, and Exploration | 23 | 20 | 22 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 63 | (3) | (22) | |||||||||
Total Assets | 1,083 | 1,123 | 1,083 | 1,123 | 1,003 | |||||||
Capital Expenditures | 10 | 119 | 128 | |||||||||
North America | Operating Segments | Cripple Creek & Victor mine | ||||||||||||
Segment Information | ||||||||||||
Sales | 575 | 491 | ||||||||||
Costs applicable to sales | 285 | 216 | ||||||||||
Depreciation and amortization | 124 | 108 | ||||||||||
Advanced Projects, Research and Development, and Exploration | 10 | 11 | ||||||||||
Income (Loss) before Income and Mining Tax and Other Items | 153 | 150 | ||||||||||
Total Assets | 897 | 1,042 | 897 | 1,042 | ||||||||
Capital Expenditures | 33 | 59 | ||||||||||
North America | Operating Segments | La Herradura | ||||||||||||
Segment Information | ||||||||||||
Sales | 91 | |||||||||||
Costs applicable to sales | 44 | |||||||||||
Depreciation and amortization | 19 | |||||||||||
Advanced Projects, Research and Development, and Exploration | 3 | |||||||||||
Income (Loss) before Income and Mining Tax and Other Items | 23 | |||||||||||
Total Assets | 1,043 | |||||||||||
Capital Expenditures | 66 | |||||||||||
North America | Operating Segments | Other North America | ||||||||||||
Segment Information | ||||||||||||
Depreciation and amortization | 1 | 1 | 1 | |||||||||
Advanced Projects, Research and Development, and Exploration | 26 | 12 | 8 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (29) | (11) | 8 | |||||||||
Total Assets | 676 | 696 | 676 | 696 | 711 | |||||||
Capital Expenditures | 9 | 9 | 8 | |||||||||
South America | Operating Segments | ||||||||||||
Segment Information | ||||||||||||
Sales | 1,314 | 909 | 1,070 | |||||||||
Costs applicable to sales | 742 | 559 | 564 | |||||||||
Depreciation and amortization | 239 | 301 | 334 | |||||||||
Advanced Projects, Research and Development, and Exploration | 98 | 95 | 95 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 161 | (1,161) | (38) | |||||||||
Total Assets | 4,016 | 4,210 | 4,016 | 4,210 | 5,080 | |||||||
Capital Expenditures | 156 | 304 | 456 | |||||||||
South America | Operating Segments | Yanacocha | ||||||||||||
Segment Information | ||||||||||||
Sales | 671 | 792 | 1,070 | |||||||||
Costs applicable to sales | 504 | 525 | 564 | |||||||||
Depreciation and amortization | 134 | 275 | 320 | |||||||||
Advanced Projects, Research and Development, and Exploration | 41 | 35 | 37 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (64) | (1,152) | 40 | |||||||||
Total Assets | 1,388 | 1,549 | 1,388 | 1,549 | 2,628 | |||||||
Capital Expenditures | 51 | 83 | 100 | |||||||||
South America | Operating Segments | Merian | ||||||||||||
Segment Information | ||||||||||||
Sales | 643 | 117 | ||||||||||
Costs applicable to sales | 238 | 34 | ||||||||||
Depreciation and amortization | 91 | 12 | ||||||||||
Advanced Projects, Research and Development, and Exploration | 14 | 24 | 12 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 297 | 46 | (12) | |||||||||
Total Assets | 967 | 984 | 967 | 984 | 764 | |||||||
Capital Expenditures | 105 | 221 | 356 | |||||||||
South America | Operating Segments | Other South America | ||||||||||||
Segment Information | ||||||||||||
Depreciation and amortization | 14 | 14 | 14 | |||||||||
Advanced Projects, Research and Development, and Exploration | 43 | 36 | 46 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (72) | (55) | (66) | |||||||||
Total Assets | 1,661 | 1,677 | 1,661 | 1,677 | 1,688 | |||||||
Australia | Operating Segments | ||||||||||||
Segment Information | ||||||||||||
Sales | 2,180 | 2,179 | 2,081 | |||||||||
Costs applicable to sales | 1,155 | 1,151 | 1,262 | |||||||||
Depreciation and amortization | 227 | 244 | 272 | |||||||||
Advanced Projects, Research and Development, and Exploration | 40 | 27 | 21 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 706 | 729 | 492 | |||||||||
Total Assets | 3,253 | 3,138 | 3,253 | 3,138 | 3,067 | |||||||
Capital Expenditures | 214 | 234 | 194 | |||||||||
Australia | Operating Segments | Boddington | ||||||||||||
Segment Information | ||||||||||||
Sales | 1,208 | 1,137 | 1,081 | |||||||||
Costs applicable to sales | 670 | 656 | 710 | |||||||||
Depreciation and amortization | 135 | 134 | 139 | |||||||||
Advanced Projects, Research and Development, and Exploration | 2 | 1 | 3 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 372 | 328 | 222 | |||||||||
Total Assets | 2,108 | 2,075 | 2,108 | 2,075 | 2,066 | |||||||
Capital Expenditures | 80 | 65 | 58 | |||||||||
Australia | Operating Segments | Boddington | Gold | ||||||||||||
Segment Information | ||||||||||||
Sales | 981 | 973 | 910 | |||||||||
Costs applicable to sales | 562 | 530 | 570 | |||||||||
Depreciation and amortization | 113 | 110 | 113 | |||||||||
Australia | Operating Segments | Boddington | Copper | ||||||||||||
Segment Information | ||||||||||||
Sales | 227 | 164 | 171 | |||||||||
Costs applicable to sales | 108 | 126 | 140 | |||||||||
Depreciation and amortization | 22 | 24 | 26 | |||||||||
Australia | Operating Segments | Tanami | ||||||||||||
Segment Information | ||||||||||||
Sales | 514 | 575 | 504 | |||||||||
Costs applicable to sales | 251 | 238 | 225 | |||||||||
Depreciation and amortization | 67 | 82 | 82 | |||||||||
Advanced Projects, Research and Development, and Exploration | 21 | 13 | 7 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 181 | 242 | 192 | |||||||||
Total Assets | 688 | 621 | 688 | 621 | 539 | |||||||
Capital Expenditures | 108 | 145 | 98 | |||||||||
Australia | Operating Segments | Waihi | ||||||||||||
Segment Information | ||||||||||||
Sales | 136 | |||||||||||
Costs applicable to sales | 55 | |||||||||||
Depreciation and amortization | 14 | |||||||||||
Advanced Projects, Research and Development, and Exploration | 3 | |||||||||||
Income (Loss) before Income and Mining Tax and Other Items | 59 | |||||||||||
Capital Expenditures | 12 | |||||||||||
Australia | Operating Segments | Kalgoorlie | ||||||||||||
Segment Information | ||||||||||||
Sales | 458 | 467 | 360 | |||||||||
Costs applicable to sales | 234 | 257 | 272 | |||||||||
Depreciation and amortization | 19 | 19 | 21 | |||||||||
Advanced Projects, Research and Development, and Exploration | 9 | 5 | 3 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 190 | 184 | 65 | |||||||||
Total Assets | 403 | 379 | 403 | 379 | 391 | |||||||
Capital Expenditures | 21 | 20 | 21 | |||||||||
Australia | Operating Segments | Other Australia | ||||||||||||
Segment Information | ||||||||||||
Depreciation and amortization | 6 | 9 | 16 | |||||||||
Advanced Projects, Research and Development, and Exploration | 8 | 8 | 5 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (37) | (25) | (46) | |||||||||
Total Assets | 54 | 63 | 54 | 63 | 71 | |||||||
Capital Expenditures | 5 | 4 | 5 | |||||||||
Africa | Operating Segments | ||||||||||||
Segment Information | ||||||||||||
Sales | 1,033 | 1,026 | 935 | |||||||||
Costs applicable to sales | 540 | 548 | 418 | |||||||||
Depreciation and amortization | 227 | 222 | 149 | |||||||||
Advanced Projects, Research and Development, and Exploration | 40 | 38 | 34 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 209 | 198 | 288 | |||||||||
Total Assets | 2,735 | 2,968 | 2,735 | 2,968 | 2,995 | |||||||
Capital Expenditures | 207 | 109 | 137 | |||||||||
Africa | Operating Segments | Ahafo | ||||||||||||
Segment Information | ||||||||||||
Sales | 439 | 436 | 387 | |||||||||
Costs applicable to sales | 268 | 313 | 206 | |||||||||
Depreciation and amortization | 72 | 94 | 53 | |||||||||
Advanced Projects, Research and Development, and Exploration | 24 | 28 | 24 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 70 | (8) | 74 | |||||||||
Total Assets | 1,685 | 1,734 | 1,685 | 1,734 | 1,752 | |||||||
Capital Expenditures | 181 | 87 | 92 | |||||||||
Africa | Operating Segments | Akyem | ||||||||||||
Segment Information | ||||||||||||
Sales | 594 | 590 | 548 | |||||||||
Costs applicable to sales | 272 | 235 | 212 | |||||||||
Depreciation and amortization | 154 | 127 | 96 | |||||||||
Advanced Projects, Research and Development, and Exploration | 10 | 8 | 8 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | 152 | 214 | 227 | |||||||||
Total Assets | 1,049 | 1,232 | 1,049 | 1,232 | 1,241 | |||||||
Capital Expenditures | 26 | 22 | 45 | |||||||||
Africa | Operating Segments | Other Africa | ||||||||||||
Segment Information | ||||||||||||
Depreciation and amortization | 1 | 1 | ||||||||||
Advanced Projects, Research and Development, and Exploration | 6 | 2 | 2 | |||||||||
Income (Loss) before Income and Mining Tax and Other Items | (13) | (8) | (13) | |||||||||
Total Assets | $ 1 | $ 2 | $ 1 | $ 2 | $ 2 | |||||||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues by Location (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Information | |||||||||||
Revenue from sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 |
United Kingdom | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 5,490 | 5,413 | 4,954 | ||||||||
Korea | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 384 | 298 | 334 | ||||||||
Philippines | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 310 | 283 | 208 | ||||||||
Germany | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 168 | 191 | 166 | ||||||||
Switzerland | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 657 | 148 | 39 | ||||||||
Canada | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 96 | 124 | 104 | ||||||||
U.S. | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 91 | 70 | 69 | ||||||||
Japan | |||||||||||
Segment Information | |||||||||||
Revenue from sales | 87 | 59 | 111 | ||||||||
Other Countries | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 65 | $ 125 | $ 100 |
SEGMENT INFORMATION - Concentra
SEGMENT INFORMATION - Concentration Risk (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Information | |||||||||||
Revenue from sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 |
Sales Revenue, Product Line | Customers | Copper Cathode | North America | |||||||||||
Segment Information | |||||||||||
Number of customers | customer | 1 | ||||||||||
Sales Revenue, Product Line | Toronto Dominion Bank | Customers | Gold | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 2,727 | $ 1,829 | |||||||||
Percentage of sales by customer | 37.00% | 27.00% | |||||||||
Sales Revenue, Product Line | JPMorgan Chase | Customers | Gold | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 1,380 | $ 1,471 | |||||||||
Percentage of sales by customer | 19.00% | 22.00% | |||||||||
Sales Revenue, Product Line | Bank Of Nova Scotia | Customers | Gold | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 1,067 | $ 1,074 | |||||||||
Percentage of sales by customer | 16.00% | 14.00% | |||||||||
Sales Revenue, Product Line | HSBC | Customers | Gold | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 952 | ||||||||||
Percentage of sales by customer | 14.00% | ||||||||||
Sales Revenue, Product Line | Credit Agricole Corporate and Investment | Customers | Gold | |||||||||||
Segment Information | |||||||||||
Revenue from sales | $ 762 | ||||||||||
Percentage of sales by customer | 10.00% |
SEGMENT INFORMATION - Long-live
SEGMENT INFORMATION - Long-lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Information | ||
Long-Lived Assets | $ 14,578 | $ 14,728 |
U.S. | ||
Segment Information | ||
Long-Lived Assets | 6,490 | 6,625 |
Australia | ||
Segment Information | ||
Long-Lived Assets | 2,833 | 2,753 |
Ghana | ||
Segment Information | ||
Long-Lived Assets | 2,401 | 2,423 |
Peru | ||
Segment Information | ||
Long-Lived Assets | 2,008 | 2,109 |
Suriname | ||
Segment Information | ||
Long-Lived Assets | 835 | $ 818 |
Other Countries | ||
Segment Information | ||
Long-Lived Assets | $ 11 |
RECLAMATION AND REMEDIATION - I
RECLAMATION AND REMEDIATION - Impairment Assessment (Details) - Yanacocha - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | |
Reclamation and remediation expense | |||
Frequency of closure plan updates (in years) | 5 years | ||
Increase in asset retirement obligation | $ 425 | ||
Increase to the recorded asset retirement cost asset | $ 348 | ||
Non-cash charge to reclamation expense | $ 970 | ||
Reclamation and Remediation Charges | |||
Reclamation and remediation expense | |||
Non-cash charge to reclamation expense | $ 77 |
RECLAMATION AND REMEDIATION - E
RECLAMATION AND REMEDIATION - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RECLAMATION AND REMEDIATION | |||
Reclamation adjustment | $ 32 | $ 83 | $ 5 |
Reclamation accretion | 100 | 75 | 74 |
Total reclamation expense | 132 | 158 | 79 |
Remediation adjustment | 40 | 16 | 170 |
Remediation accretion | 5 | 5 | 4 |
Total remediation expense | 45 | 21 | 174 |
Reclamation and remediation expense | $ 177 | $ 179 | $ 253 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in reclamation liability | |||
Balance at beginning of period | $ 1,792 | $ 1,300 | |
Additions, changes in estimates and other | 107 | 441 | |
Payments and other | (34) | (24) | |
Accretion expense | 100 | 75 | $ 74 |
Balance at end of period | 1,965 | 1,792 | 1,300 |
Change in remediation liability | |||
Balance at beginning of period | 298 | 318 | |
Additions, changes in estimates and other | 30 | 5 | |
Payments and other | (44) | (30) | |
Accretion Expense | 5 | 5 | 4 |
Balance at end of period | 289 | 298 | 318 |
Change in Reclamation and Remediation Liabilities | |||
Balance at beginning of period | 2,090 | 1,618 | |
Additions, changes in estimates and other | 137 | 446 | |
Payments and other | (78) | (54) | |
Accretion expense | 105 | 80 | |
Balance at end of period | 2,254 | 2,090 | $ 1,618 |
Impact of discounting water treatment costs | |||
Discount of water treatment costs | $ 72 | $ 66 | |
Minimum | |||
Impact of discounting water treatment costs | |||
Discount of water treatment costs, discount percentage | 2.00% | 2.00% | |
Maximum | |||
Impact of discounting water treatment costs | |||
Discount of water treatment costs, discount percentage | 5.00% | 6.00% | |
Other current liabilities | |||
Current portion of reclamation and remediation obligations | |||
Reclamation obligation, current | $ 59 | $ 28 | |
Remediation obligation, current | $ 41 | $ 33 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - Other noncurrent assets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Reclamation and remediation | ||
Asset retirement obligation restricted assets | $ 38 | $ 23 |
Environmental remediation obligation restricted assets | 64 | 61 |
Ahafo and Akyem Mines | ||
Reclamation and remediation | ||
Asset retirement obligation restricted assets | 25 | 14 |
Con Mine | ||
Reclamation and remediation | ||
Asset retirement obligation restricted assets | 6 | 7 |
San Jose Reservoir | ||
Reclamation and remediation | ||
Asset retirement obligation restricted assets | 6 | 1 |
Midnite Mine | ||
Reclamation and remediation | ||
Asset retirement obligation restricted assets | $ 1 | $ 1 |
IMPAIRMENT OF LONG-LIVED ASSE92
IMPAIRMENT OF LONG-LIVED ASSETS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | $ 14 | $ 977 | $ 56 | ||
Yanacocha | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Frequency of closure plan updates (in years) | 5 years | ||||
Corporate and other | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | 4 | 6 | |||
North America | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | 1 | ||||
South America | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | 4 | $ 976 | 44 | ||
South America | Yanacocha | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Frequency of closure plan updates (in years) | 5 years | ||||
Australia | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | $ 6 | ||||
Africa | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | $ 6 | ||||
Property Plant And Mine Development | South America | Yanacocha | |||||
IMPAIRMENT OF LONG-LIVED ASSETS | |||||
Impairment of long-lived assets | $ 970 |
OTHER EXPENSE, NET - Summary (D
OTHER EXPENSE, NET - Summary (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER EXPENSE, NET | ||||
Restructuring and other | $ 14 | $ 32 | $ 34 | |
Acquisition cost adjustments | 2 | 10 | 19 | |
Ghana Investment Agreement | $ 27 | 27 | ||
Other | 16 | 16 | 36 | |
Other expense, net | $ 32 | $ 58 | $ 116 |
OTHER EXPENSE, NET - Other info
OTHER EXPENSE, NET - Other information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2009 | Jun. 25, 2009 | |
Ghana Investment Agreement | ||||
Costs associated with ratification of revised investment agreements | $ 27 | $ 27 | ||
Boddington | ||||
Acquisition cost adjustments | ||||
Boddington final interest acquired | 33.33% | 33.33% |
OTHER INCOME, NET - Summary (De
OTHER INCOME, NET - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER INCOME, NET | |||
Foreign currency exchange, net | $ (28) | $ (9) | $ 31 |
Interest | 28 | 11 | 6 |
Gain on asset and investment sales, net | 23 | 108 | 118 |
Tanami insurance proceeds | 13 | ||
Loss on debt repayment | (55) | ||
Impairment of investments | 0 | 0 | 115 |
Gain on deconsolidation of TMAC | 76 | ||
Other | 18 | 14 | 19 |
Other Income, net | $ 54 | $ 69 | $ 135 |
OTHER INCOME, NET - Other infor
OTHER INCOME, NET - Other information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017 | Mar. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other information | ||||||||
Gain on asset and investment sales, net | $ 23 | $ 108 | $ 118 | |||||
Loss on debt repayment | 55 | |||||||
Impairment of investments | 0 | 0 | 115 | |||||
Tanami insurance proceeds | $ 13 | |||||||
Gain from derecognization of assets, liabilities, and non-controlling interest | 76 | |||||||
Regis Resources Ltd. | ||||||||
Other information | ||||||||
Proceeds from sale of available for sale securities | $ 184 | |||||||
Disposal by sale | EGR | ||||||||
Other information | ||||||||
Ownership/Economic interest | 60.64% | |||||||
Other income, net | ||||||||
Other information | ||||||||
Loss on debt repayment | $ 55 | |||||||
Tanami insurance proceeds | $ 13 | |||||||
Other income, net | Hemlo Canada and Relief Canyon Nevada | ||||||||
Other information | ||||||||
Gain on asset and investment sales, net | $ 38 | |||||||
Other income, net | Waihi Mine | ||||||||
Other information | ||||||||
Gain on asset and investment sales, net | $ 10 | |||||||
Other income, net | Fort a' la Corne | ||||||||
Other information | ||||||||
Gain on sale of investments, net | $ 15 | |||||||
Other income, net | Regis Resources Ltd. | ||||||||
Other information | ||||||||
Gain on sale of investments, net | $ 103 | |||||||
Impairment of investments | 72 | |||||||
Other income, net | Gabriel Resources Ltd | ||||||||
Other information | ||||||||
Impairment of investments | 24 | |||||||
Other income, net | Pilot Gold | ||||||||
Other information | ||||||||
Impairment of investments | 8 | |||||||
Other income, net | UltraGold | ||||||||
Other information | ||||||||
Impairment of investments | $ 7 | |||||||
Other income, net | Disposal by sale | EGR | ||||||||
Other information | ||||||||
Gain on disposal | $ 53 | |||||||
TMAC | ||||||||
Other information | ||||||||
Gain from derecognization of assets, liabilities, and non-controlling interest | $ 76 |
INCOME AND MINING TAXES - Incom
INCOME AND MINING TAXES - Income and mining tax benefit (expense) - Current vs Deferred (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Current: United States | $ (40) | $ 101 | $ 18 |
Current: Foreign | (290) | (230) | (211) |
Current income taxes | (330) | (129) | (193) |
Deferred: | |||
Deferred: United States | (773) | (547) | 54 |
Deferred: Foreign | (22) | 113 | (252) |
Deferred income taxes | (795) | (434) | (198) |
Income and mining tax benefit (expense) | $ (1,125) | $ (563) | $ (391) |
INCOME AND MINING TAXES - Domes
INCOME AND MINING TAXES - Domestic Vs Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) before income and mining tax and other items | |||
United States | $ 245 | $ (4) | $ (283) |
Foreign | 847 | (210) | 578 |
Income (loss) before income and mining tax and other items | $ 1,092 | $ (214) | $ 295 |
INCOME AND MINING TAXES - Tax E
INCOME AND MINING TAXES - Tax Expense Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciling item, percentage | |||
Tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Re-measurement due to the Tax Custs and Jobs Act (as a percent) | 28.00% | ||
Tax Restructuring related to the Tax Cuts and Jobs Act (as a percent) | 36.00% | ||
Percentage depletion (as a percent) | (7.00%) | 40.00% | (19.00%) |
Change in valuation allowance on deferred tax assets (as a percent) | 7.00% | (226.00%) | 51.00% |
Mining and other taxes (as a percent) | 4.00% | (29.00%) | 20.00% |
U.S. tax effect of noncontrolling interest attributable to non-U.S. investees | (100.00%) | 41.00% | |
Tax impact on sale of assets (as a percent) | 17.00% | 7.00% | |
Effect of foreign earnings, net of credits | (6.00%) | ||
Other (as a percent) | 4.00% | ||
Income and mining tax expense (as a percent) | 103.00% | (263.00%) | 133.00% |
Reconciling item, amount | |||
Income (loss) before income and mining tax and other items | $ 1,092 | $ (214) | $ 295 |
Tax at statutory rate | (382) | 75 | (103) |
Re-measurement due to the Tax Cuts and Jobs Act | (306) | ||
Tax restructuring related to the Tax Cuts and Jobs Act | (395) | ||
Percentage depletion | 81 | 85 | 56 |
Change in valuation allowance on deferred tax assets | (78) | (485) | (153) |
Mining and other taxes | (41) | (61) | (58) |
U.S. tax effect of noncontrolling interest attributable to non-U.S. investees | 1 | (213) | (120) |
Tax impact on sale of assets | 36 | (20) | |
Effect of foreign earnings, net of credits | (4) | 19 | |
Other | (1) | (12) | |
Income and mining tax benefit (expense) | (1,125) | $ (563) | $ (391) |
Valuation allowance released, AMT credits | 48 | ||
Elimination of deferred tax assets due to changes in executive compensation deductions | $ 8 |
INCOME AND MINING TAXES - Tax C
INCOME AND MINING TAXES - Tax Cuts and Jobs Act Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
The Tax Cuts and Jobs Act | ||||
Period of time since last major overhaul of federal income tax code | 30 years | |||
Tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | |
Period of refund for AMT credits | 5 years | |||
Amount of expected refund of AMT credits | $ 52 | |||
Tax benefit for release of AMT credits | (48) | |||
Undistributed earnings of foreign subsidiaries | $ 0 | |||
Measurement period | 1 year | |||
Provisional income tax expense, impact of change in rate on deferred taxes | $ 346 | |||
Provisional income tax expense, impact of restructuring | 395 | |||
Limit on deductions for executive compensation | 1 | |||
Provisional income tax expense, impact of elimination of executive compensation exemptions | $ 8 | |||
Possible sequestration charge applicable to AMT refund, percent | 6.90% | |||
Possible sequestration charge applicable to AMT refund, amount | $ 4 | |||
Forecast | ||||
The Tax Cuts and Jobs Act | ||||
Tax at statutory rate (as a percent) | 21.00% |
INCOME AND MINING TAXES - Other
INCOME AND MINING TAXES - Other Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
INCOME AND MINING TAXES | ||
Deferred tax assets, valuation allowance | $ 2,795 | $ 3,844 |
INCOME AND MINING TAXES - Chang
INCOME AND MINING TAXES - Changes in valuation allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Factors that Significantly Impact Effective Tax Rate | ||
Deferred tax assets, valuation allowance | $ 2,795 | $ 3,844 |
Consolidation of subsidiaries for tax purposes, ownership percentage considered | 100.00% | |
Australian Amended Tax Return | ||
Factors that Significantly Impact Effective Tax Rate | ||
Change in valuation allowance | $ (41) |
INCOME AND MINING TAXES - Compo
INCOME AND MINING TAXES - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Property, plant and mine development | $ 1,352 | $ 1,109 |
Inventory | 74 | 72 |
Reclamation and remediation | 295 | 339 |
Net operating losses, capital losses and tax credits | 1,276 | 2,226 |
Investment in partnerships and subsidiaries | 86 | 909 |
Employee-related benefits | 254 | 374 |
Derivative instruments and unrealized loss on investments | 101 | 187 |
Other | 263 | 229 |
Deferred tax assets gross | 3,701 | 5,445 |
Valuation allowances | (2,795) | (3,844) |
Deferred tax assets net | 906 | 1,601 |
Deferred income tax liabilities: | ||
Property, plant and mine development | (841) | (639) |
Inventory | 64 | 167 |
Reclamation and remediation | (12) | |
Net undistributed earnings of subsidiaries | 0 | (6) |
Derivative instruments and unrealized gain on investments | (4) | |
Other | (47) | (46) |
Deferred tax liabilities | 964 | 862 |
Net deferred income tax assets (liabilities) | (58) | |
Net deferred income tax assets (liabilities) | 739 | |
Net deferred income tax assets and liabilities consist of: | ||
Non-current deferred income tax assets | 537 | 1,331 |
Non-current deferred income tax liabilities | (595) | (592) |
Net deferred income tax assets (liabilities) | $ (58) | |
Net deferred income tax assets (liabilities) | $ 739 |
INCOME AND MINING TAXES - Unrec
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Unrecognized Tax Benefits | |||
Total amount of gross unrecognized tax benefits at beginning of year | $ 68 | $ 62 | $ 394 |
Decreases for tax positions of prior years | (27) | (24) | |
Additions for tax positions of prior years | 48 | ||
Additions for tax positions of current year | 30 | ||
Reductions due to settlements with taxing authorities | (23) | (302) | |
Reductions due to lapse of statute of limitations | (3) | (19) | (6) |
Total amount of gross unrecognized tax benefits at end of year | $ 68 | $ 68 | $ 62 |
INCOME AND MINING TAXES - Un105
INCOME AND MINING TAXES - Unrecognized Tax Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrecognized Tax Benefits, other information | ||||
Unrecognized tax benefits affecting effective tax rate | $ 72 | $ 72 | $ 64 | $ 35 |
Accrued income-tax-related interest and penalties | 19 | 19 | 16 | |
Increase (decrease) in income tax expense for adjustments to previous accruals for interest and penalties | 3 | $ 0 | $ (1) | |
Australian Taxation Office ("ATO") | ||||
Unrecognized Tax Benefits, other information | ||||
Tax, penalties and interest accrued | 83 | 83 | ||
Amount paid to preserve right to contest conclusions of ATO | 25 | |||
Minimum | ||||
Unrecognized Tax Benefits, other information | ||||
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 10 | 10 | ||
Maximum | ||||
Unrecognized Tax Benefits, other information | ||||
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 15 | 15 | ||
Fronteer | ||||
Unrecognized Tax Benefits, other information | ||||
Tax, penalties and interest accrued | $ 54 | $ 54 |
INCOME AND MINING TAXES - Valua
INCOME AND MINING TAXES - Valuation of Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation of Deferred Tax Assets | ||
Look-back period | 3 years | |
Deferred tax assets, valuation allowance | $ 2,795 | $ 3,844 |
Period of refund for AMT credits | 5 years | |
Tax benefit for release of AMT credits | $ (48) | |
Deferred Tax Asset, Investment in Yanacocha | ||
Valuation of Deferred Tax Assets | ||
Change in valuation allowance | $ (292) | |
Deferred Tax Asset, Peru Operations | ||
Valuation of Deferred Tax Assets | ||
Look-back period | 3 years | |
Change in valuation allowance | $ 40 | |
Deferred Tax Asset, Canada Operations | ||
Valuation of Deferred Tax Assets | ||
Deferred tax assets, valuation allowance | $ 1,296 |
INCOME AND MINING TAXES - Tax L
INCOME AND MINING TAXES - Tax Loss Carryforwards, Foreign Tax Credits, and AMT Credits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carryforwards | ||
Operating loss carryforwards | $ 498 | $ 216 |
Tax credit carryforwards | 610 | 837 |
Australia and France Tax Authorities | ||
Carryforwards | ||
Operating loss carryforwards | 92 | 134 |
U.S. Tax Authority | Foreign Tax Credits | ||
Carryforwards | ||
Tax credit carryforwards | 558 | 779 |
U.S. Tax Authority | AMT | ||
Carryforwards | ||
Tax credit carryforwards | $ 52 | $ 58 |
INCOME AND MINING TAXES - Ta108
INCOME AND MINING TAXES - Tax Cuts and Jobs Act Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME AND MINING TAXES | |||
Tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Provision related to tax restructuring | $ 395 | ||
Deferred tax assets, valuation allowance | $ 2,795 | $ 3,844 |
EQUITY INCOME (LOSS) OF AFFI109
EQUITY INCOME (LOSS) OF AFFILIATES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity method investments | |||
Equity income (loss) of affiliates | $ (16) | $ (13) | $ (45) |
TMAC | |||
Equity method investments | |||
Equity income (loss) of affiliates | (6) | (7) | (7) |
Minera La Zanja S.R.L. | |||
Equity method investments | |||
Equity income (loss) of affiliates | (5) | (30) | |
Euronimba Ltd | |||
Equity method investments | |||
Equity income (loss) of affiliates | $ (5) | $ (6) | (9) |
Novo Resources Corp. | |||
Equity method investments | |||
Equity income (loss) of affiliates | $ 1 |
EQUITY INCOME (LOSS) OF AFFI110
EQUITY INCOME (LOSS) OF AFFILIATES - Additional Information (Details) - shares | 1 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | |
Minera La Zanja S.R.L. | ||||
Ownership interests | ||||
Newmont equity interest ownership (as a percent) | 46.94% | 46.94% | ||
Euronimba Ltd | ||||
Ownership interests | ||||
Newmont equity interest ownership (as a percent) | 45.00% | 43.50% | ||
TMAC | ||||
Ownership interests | ||||
Newmont equity interest ownership (as a percent) | 28.79% | 28.79% | 29.00% | |
BHP Billiton | Euronimba Ltd | ||||
Ownership interests | ||||
Ownership interest held (as a percent) | 45.00% | |||
Areva | Euronimba Ltd | ||||
Ownership interests | ||||
Ownership interest held (as a percent) | 10.00% | |||
Euronimba Ltd | Nimba Project | ||||
Ownership interests | ||||
Ownership interest held (as a percent) | 95.00% | |||
Novo Resources Corp | Private issuance | Talga Resources Ltd. | ||||
Ownership interests | ||||
Shares issued in subsidiary sale of stock | 765,115 |
NET INCOME (LOSS) ATTRIBUTAB111
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Net income (loss) attributable to noncontrolling interests | $ 11 | $ (570) | $ (140) |
Merian | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Net income (loss) attributable to noncontrolling interests | 69 | 10 | (3) |
Minera Yanacocha | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Net income (loss) attributable to noncontrolling interests | (57) | (579) | (126) |
Other | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Net income (loss) attributable to noncontrolling interests | $ (1) | $ (1) | $ (11) |
NET INCOME (LOSS) ATTRIBUTAB112
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Ownership (Details) - shares shares in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Nov. 30, 2017 | |
Minera Yanacocha | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Shares repurchased | 64 | ||
Minera Yanacocha | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Ownership/Economic interest in subsidiaries | 54.05% | 54.05% | 51.35% |
Minera Yanacocha | Minera Yanacocha | International Finance Corporation | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Percentage of total shares repurchased | 5.00% | ||
Minera Yanacocha | Buenaventura | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 45.95% | 45.95% | 43.65% |
Primary Beneficiary | Merian | |||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Ownership interest held (as a percent) | 75.00% |
NET INCOME (LOSS) ATTRIBUTAB113
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Consolidated Assets and Liabilities of VIE (Details) - Primary Beneficiary - Merian - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets and liabilities of VIE | ||
Current assets | $ 133 | $ 167 |
Total assets | 910 | 921 |
Current liabilities | 50 | 43 |
Total liabilities | 68 | 54 |
Cash And Cash Equivalents | ||
Assets and liabilities of VIE | ||
Current assets | 27 | 50 |
Inventories | ||
Assets and liabilities of VIE | ||
Current assets | 79 | 57 |
Stockpiles and ore on leach pads | ||
Assets and liabilities of VIE | ||
Current assets | 21 | 23 |
Other current assets | ||
Assets and liabilities of VIE | ||
Current assets | 6 | 37 |
Other noncurrent assets | ||
Assets and liabilities of VIE | ||
Non-current assets | 8 | 8 |
Property Plant And Mine Development | ||
Assets and liabilities of VIE | ||
Non-current assets | 769 | 746 |
Other current liabilities | ||
Assets and liabilities of VIE | ||
Current liabilities | 50 | 43 |
Reclamation and remediation liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | 17 | $ 11 |
Other non-current liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | $ 1 |
NEWMONT EQUITY AND INCOME (L114
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) attributable to Newmont stockholders: | |||||||||||
Continuing operations | $ (534) | $ 213 | $ 192 | $ 69 | $ (391) | $ 169 | $ 14 | $ (12) | $ (60) | $ (220) | $ (1) |
Discontinued operations | $ 7 | $ (7) | $ (15) | $ (23) | $ 47 | $ (527) | $ 9 | $ 64 | (38) | (407) | 221 |
Net income (loss) attributable to Newmont stockholders | $ (98) | $ (627) | $ 220 | ||||||||
Weighted average common shares (millions): | |||||||||||
Basic | 533 | 533 | 533 | 532 | 531 | 531 | 531 | 530 | 533 | 530 | 516 |
Effect of employee stock-based awards | 2 | 2 | |||||||||
Diluted | 536 | 536 | 535 | 533 | 534 | 533 | 533 | 531 | 535 | 532 | 516 |
Net income (loss) per common share: Basic: | |||||||||||
Continuing operations (in dollars per share) | $ (0.99) | $ 0.39 | $ 0.36 | $ 0.13 | $ (0.73) | $ 0.32 | $ 0.02 | $ (0.02) | $ (0.11) | $ (0.41) | |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | $ 0.43 |
Net income (loss) per common share, basic | (0.98) | 0.38 | 0.33 | 0.09 | (0.65) | (0.67) | 0.04 | 0.10 | (0.18) | (1.18) | 0.43 |
Net income (loss) per common share: Diluted | |||||||||||
Continuing operations (in dollars per share) | (0.99) | 0.39 | 0.36 | 0.13 | (0.73) | 0.32 | 0.02 | (0.02) | (0.11) | (0.41) | |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | 0.43 |
Net income (loss) per common share, diluted | $ (0.98) | $ 0.38 | $ 0.33 | $ 0.09 | $ (0.65) | $ (0.67) | $ 0.04 | $ 0.10 | $ (0.18) | $ (1.18) | $ 0.43 |
NEWMONT EQUITY AND INCOME (L115
NEWMONT EQUITY AND INCOME (LOSS) PER SHARE - Additional Information (Details) - 2017 Convertible Senior Notes, net - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2007 | |
Convertible Debt - impact on earnings (loss) per share | |||
Debt issued | $ 575 | ||
Common shares | |||
Convertible Debt - impact on earnings (loss) per share | |||
Convertible debt, number of additional shares included in diluted weighted-average shares | 0 | 0 |
EMPLOYEE-RELATED BENEFITS - Cur
EMPLOYEE-RELATED BENEFITS - Current and Long-Term Employee-Related Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current: | ||
Accrued payroll and withholding taxes | $ 264 | $ 262 |
Peruvian workers' participation | 22 | 13 |
Employee pension benefits | 7 | 12 |
Other post-retirement plans | 5 | 4 |
Accrued severance | 1 | 2 |
Other employee-related payables | 10 | 11 |
Employee-related benefits, Current | 309 | 304 |
Non-current: | ||
Employee pension benefits | 129 | 180 |
Accrued severance | 81 | 80 |
Other post-retirement benefit plans | 162 | 140 |
Other employee-related payables | 14 | 11 |
Employee-related benefits, Non-current | $ 386 | $ 411 |
EMPLOYEE-RELATED BENEFITS - Ben
EMPLOYEE-RELATED BENEFITS - Benefit Obligations and Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 1,025 | $ 948 | |
Service cost | 29 | 28 | $ 30 |
Interest cost | 44 | 45 | 41 |
Actuarial loss (gain) | 73 | 60 | |
Amendments | 2 | ||
Settlement payments | (10) | (11) | |
Benefits paid | (40) | (47) | |
Projected benefit obligation at end of year | 1,121 | 1,025 | 948 |
Accumulated benefit obligation | 1,098 | 1,010 | |
Change in Fair Value of Assets: | |||
Fair value of assets at beginning of year | 833 | 760 | |
Actual return on plan assets | 130 | 59 | |
Employer contributions | 72 | 72 | |
Settlement payments | (10) | (11) | |
Benefits paid | (40) | (47) | |
Fair value of assets at end of year | 985 | 833 | 760 |
Unfunded status, net | 136 | 192 | |
Other Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 84 | 92 | |
Service cost | 1 | 2 | 3 |
Interest cost | 4 | 4 | 5 |
Actuarial loss (gain) | 2 | (11) | |
Amendments | (2) | ||
Benefits paid | (3) | (3) | |
Projected benefit obligation at end of year | 84 | 92 | |
Accumulated benefit obligation | 86 | 84 | |
Change in Fair Value of Assets: | |||
Fair value of assets at beginning of year | 0 | 0 | |
Employer contributions | 3 | 3 | |
Benefits paid | (3) | (3) | |
Fair value of assets at end of year | 0 | $ 0 | |
Unfunded status, net | $ 86 | $ 84 |
EMPLOYEE-RELATED BENEFITS - Net
EMPLOYEE-RELATED BENEFITS - Net Pension Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated other comprehensive income (loss): | ||||
Total equity | $ 11,630 | $ 11,874 | $ 14,292 | $ 13,089 |
Pension Benefits | ||||
Pension and other post-retirement costs, net | ||||
Accrued employee benefit liability | 136 | 192 | ||
Pension Benefits | Net pension and other benefits included in AOCI | ||||
Accumulated other comprehensive income (loss): | ||||
Net actuarial gain (loss) | (409) | (446) | ||
Prior service credit | 46 | 54 | ||
Accumulated other comprehensive income (loss) before tax | (363) | (392) | ||
Less: Income taxes | 127 | 138 | ||
Total equity | (236) | (254) | ||
Other Benefits | ||||
Pension and other post-retirement costs, net | ||||
Accrued employee benefit liability | 86 | 84 | ||
Other Benefits | Net pension and other benefits included in AOCI | ||||
Accumulated other comprehensive income (loss): | ||||
Net actuarial gain (loss) | 14 | 18 | ||
Prior service credit | 29 | 32 | ||
Accumulated other comprehensive income (loss) before tax | 43 | 50 | ||
Less: Income taxes | (15) | (18) | ||
Total equity | $ 28 | $ 32 |
EMPLOYEE-RELATED BENEFITS - 119
EMPLOYEE-RELATED BENEFITS - Net Periodic Pension Costs and Components Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Net periodic pension and other benefits costs | |||
Service cost | $ 29 | $ 28 | $ 30 |
Interest cost | 44 | 45 | 41 |
Expected return on plan assets | (63) | (58) | (58) |
Amortization, net | 30 | 25 | 27 |
Net periodic benefit cost | 40 | 40 | 40 |
Settlements | 5 | 6 | 3 |
Total benefit cost | 45 | 46 | 43 |
Components recognized in Other comprehensive income (loss) | |||
Net loss (gain) | 5 | 61 | 24 |
Amortization, net | (30) | (25) | (27) |
Settlements | (5) | (6) | (3) |
Total recognized in Other comprehensive income (loss) | (30) | 30 | (6) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 15 | 76 | 37 |
Expected recognition of amounts in AOCI | |||
Expected recognition of amounts in AOCI for net actuarial (gain) loss | 40 | ||
Expected recognition of amounts in AOCI for prior service credit | (8) | ||
Other Benefits | |||
Net periodic pension and other benefits costs | |||
Service cost | 1 | 2 | 3 |
Interest cost | 4 | 4 | 5 |
Amortization, net | (7) | (6) | (3) |
Net periodic benefit cost | (2) | 5 | |
Total benefit cost | (2) | 5 | |
Components recognized in Other comprehensive income (loss) | |||
Net loss (gain) | (11) | (62) | |
Amortization, net | 7 | 6 | 3 |
Total recognized in Other comprehensive income (loss) | 7 | (5) | (59) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 5 | $ (5) | $ (54) |
Expected recognition of amounts in AOCI | |||
Expected recognition of amounts in AOCI for net actuarial (gain) loss | (1) | ||
Expected recognition of amounts in AOCI for prior service credit | $ (6) |
EMPLOYEE-RELATED BENEFITS - Sig
EMPLOYEE-RELATED BENEFITS - Significant Assumptions (Details) - item | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other information | |||
Expected long term return on plan assets for calculating benefit obligation | 7.25% | ||
Look-back period used for comparing actual returns to expected returns | 5 years | ||
Period for look-back of average actual return on plan assets | 29 years | ||
Actual return on plan assets | 8.49% | ||
Pension Benefits | |||
Weighted-average assumptions used in measuring the Company?s benefit obligation: | |||
Discount rate (as a percent) | 3.77% | 4.36% | |
Weighted-average assumptions used in measuring the net periodic pension benefit cost: | |||
Discount long-term rate | 4.36% | 4.80% | 4.32% |
Expected return on plan assets | 7.25% | 7.25% | 7.75% |
Other information | |||
Number of calculation methods for salaried U.S. employees | 2 | ||
Final Average Pay, number of years included in calculation | 5 years | ||
Other Benefits | |||
Weighted-average assumptions used in measuring the Company?s benefit obligation: | |||
Discount rate (as a percent) | 3.77% | ||
Weighted-average assumptions used in measuring the net periodic pension benefit cost: | |||
Discount long-term rate | 4.36% | 4.80% | 4.32% |
EMPLOYEE-RELATED BENEFITS - Ass
EMPLOYEE-RELATED BENEFITS - Asset Allocation (Details) - Pension Benefits | Dec. 31, 2017 |
U.S. equity investments | |
Pension and other post-retirement costs, net | |
Target asset allocation | 11.00% |
Actual asset allocation (as a percent) | 11.00% |
International equity investments | |
Pension and other post-retirement costs, net | |
Target asset allocation | 12.00% |
Actual asset allocation (as a percent) | 12.00% |
World Equity Fund [Member] | |
Pension and other post-retirement costs, net | |
Target asset allocation | 20.00% |
Actual asset allocation (as a percent) | 20.00% |
Fixed income investments | |
Pension and other post-retirement costs, net | |
Target asset allocation | 49.00% |
Actual asset allocation (as a percent) | 49.00% |
Other assets | |
Pension and other post-retirement costs, net | |
Target asset allocation | 8.00% |
Actual asset allocation (as a percent) | 8.00% |
EMPLOYEE-RELATED BENEFITS - Fai
EMPLOYEE-RELATED BENEFITS - Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Plan Assets: | |||
Fair value of assets | $ 985 | $ 833 | $ 760 |
Cash And Cash Equivalents | |||
Plan Assets: | |||
Fair value of assets | 3 | 2 | |
Commingled Funds | |||
Plan Assets: | |||
Fair value of assets | $ 982 | $ 831 |
EMPLOYEE-RELATED BENEFITS - Eff
EMPLOYEE-RELATED BENEFITS - Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates (Details) - Other Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Assumed health care trend rates | |
Assumed health care cost trend rate for next fiscal year | 6.20% |
Assumed ultimate health care cost trend rate | 5.00% |
Year when health care costs reach ultimate trend rate | 2,022 |
Assumed health care trend rates, one-percent change | |
One-percentage-point increase effect on the health care component of the accumulated post-retirement benefit obligation | $ 2 |
One-percentage-point decrease effect on the health care component of the accumulated post-retirement benefit obligation | $ (2) |
EMPLOYEE-RELATED BENEFITS - Hea
EMPLOYEE-RELATED BENEFITS - Health Care Trend Rates (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Cash Flows | |
2,018 | $ 55 |
2,019 | 57 |
2,020 | 61 |
2,021 | 65 |
2,022 | 69 |
2023 - 2026 | 375 |
Other Benefits | |
Cash Flows | |
2,018 | 4 |
2,019 | 5 |
2,020 | 5 |
2,021 | 5 |
2,022 | 5 |
2023 - 2026 | $ 27 |
EMPLOYEE-RELATED BENEFITS - Def
EMPLOYEE-RELATED BENEFITS - Defined Contribution Plans (Details) - U.S. | 12 Months Ended |
Dec. 31, 2017plan | |
Qualified Plans | |
Savings Plans | |
Number of plans | 2 |
Percentage of employee contributions matched | 100.00% |
Qualified Plans | Maximum | |
Savings Plans | |
Maximum employer match, as a percentage of eligible earnings | 6.00% |
Qualified Defined Contribution Plan - Salaried and other non-union employees | |
Savings Plans | |
Number of plans | 1 |
Qualified Defined Contribution Plan - Hourly union employees | |
Savings Plans | |
Number of plans | 1 |
Non-qualified plan | |
Savings Plans | |
Number of plans | 1 |
Percentage of employee contributions matched | 100.00% |
Non-qualified plan | Maximum | |
Savings Plans | |
Maximum employer match, as a percentage of eligible earnings | 6.00% |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option and General Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based compensation | |||
Shares authorized for future stock incentive plan awards | 11,339,741 | ||
Employee Stock Options | |||
Options granted (in shares) | 0 | 0 | 0 |
Options outstanding (in shares) | 1,108,899 | ||
Options exercisable (in shares) | 1,108,899 | ||
Options outstanding - weighted-average exercise price (in dollars per share) | $ 51.74 | ||
Options exercisable - weighted-average exercise price | $ 51.74 | ||
Options outstanding - weighted average remaining contractual life | 2 years | ||
Options exercisable - weighted average remaining contractual life | 2 years | ||
Minimum | Stock options | |||
Employee Stock Options | |||
Stock award vesting period | 3 years | ||
Maximum | Stock options | |||
Employee Stock Options | |||
Stock award expiration period | 10 years |
STOCK-BASED COMPENSATION - Othe
STOCK-BASED COMPENSATION - Other Stock Based Compensation (Details) | 12 Months Ended | 36 Months Ended |
Dec. 31, 2017 | Dec. 31, 2015 | |
PSU | ||
Other Stock Based Compensation | ||
Stock award vesting period | 3 years | |
SSU | ||
Other Stock Based Compensation | ||
Percentage of vested awards issued without restriction in common shares | 33.30% | |
Percentage of vested awards issued with restrictions | 66.70% | |
Common shares | RSU | ||
Other Stock Based Compensation | ||
Common shares received per each unit vested under award | 1 | |
Minimum | RSU | ||
Other Stock Based Compensation | ||
Stock award vesting period | 3 years |
STOCK-BASED COMPENSATION - Non-
STOCK-BASED COMPENSATION - Non-option Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RSU | |||
Number of Shares | |||
Non-vested at beginning of year (in shares) | 2,948,345 | ||
Granted (in shares) | 1,191,380 | ||
Vested (in shares) | (1,199,020) | ||
Forfeited (in shares) | (324,165) | ||
Non-vested at end of year (in shares) | 2,616,540 | 2,948,345 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 26.05 | ||
Granted (in dollars per share) | 35.01 | ||
Vested (in dollars per share) | 25.12 | ||
Forfeited (in dollars per share) | 27.56 | ||
Nonvested at end of year (in dollars per share) | $ 30.39 | $ 26.05 | |
Other information | |||
Total intrinsic value, vested shares (in dollars) | $ 43 | $ 27 | $ 21 |
Total fair value, vested shares (in dollars) | $ 43 | $ 27 | 21 |
PSU | |||
Number of Shares | |||
Non-vested at beginning of year (in shares) | 3,027,876 | ||
Granted (in shares) | 1,475,133 | ||
Vested (in shares) | (1,594,869) | ||
Forfeited (in shares) | (313,570) | ||
Non-vested at end of year (in shares) | 2,594,570 | 3,027,876 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 37.90 | ||
Granted (in dollars per share) | 41.92 | ||
Vested (in dollars per share) | 34.12 | ||
Forfeited (in dollars per share) | 39.26 | ||
Nonvested at end of year (in dollars per share) | $ 42.27 | $ 37.90 | |
Other information | |||
Total intrinsic value, vested shares (in dollars) | $ 56 | $ 16 | 3 |
Total fair value, vested shares (in dollars) | $ 56 | $ 16 | 3 |
SSU | |||
Number of Shares | |||
Non-vested at beginning of year (in shares) | 157,476 | ||
Vested (in shares) | (154,296) | ||
Forfeited (in shares) | (3,180) | ||
Non-vested at end of year (in shares) | 157,476 | ||
Weighted Average Grant-Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 25.26 | ||
Vested (in dollars per share) | 25.56 | ||
Forfeited (in dollars per share) | $ 25.56 | ||
Nonvested at end of year (in dollars per share) | $ 25.26 | ||
Other information | |||
Total intrinsic value, vested shares (in dollars) | $ 6 | $ 7 | 9 |
Total fair value, vested shares (in dollars) | $ 6 | $ 7 | $ 9 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based compensation | |||
Excess tax benefit recognized | $ 5 | $ 0 | $ 0 |
Stock-based compensation: | |||
Stock-based compensation | 70 | 70 | 77 |
PSU | |||
Unrecognized compensation | |||
Unrecognized compensation cost related to unvested stock | $ 38 | ||
Unrecognized compensation cost expected to be recognized on a weighted-average basis, period | 2 years | ||
Stock-based compensation: | |||
Stock-based compensation | $ 35 | 34 | 39 |
RSU | |||
Unrecognized compensation | |||
Unrecognized compensation cost related to unvested stock | $ 43 | ||
Unrecognized compensation cost expected to be recognized on a weighted-average basis, period | 2 years | ||
Stock-based compensation: | |||
Stock-based compensation | $ 34 | 31 | 31 |
SSU | |||
Stock-based compensation: | |||
Stock-based compensation | $ 1 | $ 5 | $ 7 |
FAIR VALUE ACCOUNTING - Recurri
FAIR VALUE ACCOUNTING - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value | Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 3,259 | $ 2,756 |
Restricted cash | 39 | 26 |
Total assets | 3,667 | 3,044 |
Liabilities: | ||
Debt (1) | 4,671 | 4,882 |
Total liabilities | 4,915 | 5,093 |
Fair Value | Recurring | Holt Royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 243 | 187 |
Fair Value | Recurring | Other Assets | ||
Assets: | ||
Restricted assets | 9 | 13 |
Fair Value | Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 111 | 113 |
Fair Value | Recurring | Contingent Payment | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 23 | 13 |
Fair Value | Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 1 | 24 |
Fair Value | Recurring | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 6 | |
Fair Value | Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 3,259 | 2,756 |
Restricted cash | 39 | 26 |
Total assets | 3,489 | 2,867 |
Fair Value | Recurring | Level 1 | Other Assets | ||
Assets: | ||
Restricted assets | 9 | 13 |
Fair Value | Recurring | Level 2 | ||
Assets: | ||
Total assets | 155 | 146 |
Liabilities: | ||
Debt (1) | 4,671 | 4,882 |
Total liabilities | 4,672 | 4,906 |
Fair Value | Recurring | Level 2 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 111 | 113 |
Fair Value | Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 1 | 24 |
Fair Value | Recurring | Level 2 | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 6 | |
Fair Value | Recurring | Level 3 | ||
Assets: | ||
Total assets | 23 | 31 |
Liabilities: | ||
Total liabilities | 243 | 187 |
Fair Value | Recurring | Level 3 | Holt Royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 243 | 187 |
Fair Value | Recurring | Level 3 | Contingent Payment | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 23 | 13 |
Fair Value | Recurring | Marketable equity securities | ||
Assets: | ||
Marketable securities | 165 | 56 |
Fair Value | Recurring | Marketable equity securities | Level 1 | ||
Assets: | ||
Marketable securities | 165 | 56 |
Fair Value | Recurring | Marketable debt securities | ||
Assets: | ||
Restricted assets | 55 | 49 |
Fair Value | Recurring | Marketable debt securities | Asset-backed commercial paper | ||
Assets: | ||
Marketable securities | 18 | |
Fair Value | Recurring | Marketable debt securities | Level 1 | ||
Assets: | ||
Restricted assets | 17 | 16 |
Fair Value | Recurring | Marketable debt securities | Level 2 | ||
Assets: | ||
Restricted assets | 38 | 33 |
Fair Value | Recurring | Marketable debt securities | Level 3 | Asset-backed commercial paper | ||
Assets: | ||
Marketable securities | 18 | |
Carrying value | ||
Liabilities: | ||
Debt (1) | $ 4,040 | $ 4,599 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)oz$ / oz$ / lb | Dec. 31, 2016USD ($)oz$ / oz$ / lb | Dec. 31, 2015USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | $ 23 | $ 31 | $ 25 |
Financial liabilities, fair value | 243 | 187 | 129 |
Holt Royalty obligation | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial liabilities, fair value | 243 | 187 | 129 |
Batu Hijau Contingent Consideration | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | 23 | 13 | |
Marketable debt securities | Asset-backed commercial paper | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | 0 | 18 | $ 18 |
Level 3 | Risk-Adjusted Indicative Price | Marketable debt securities | Asset-backed commercial paper | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | $ 18 | ||
Level 3 | Risk-Adjusted Indicative Price | Marketable debt securities | Asset-backed commercial paper | Weighted Average | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Recoverability Rate | 97.00% | ||
Level 3 | Monte Carlo | Holt Royalty obligation | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial liabilities, fair value | $ 243 | $ 187 | |
Level 3 | Monte Carlo | Holt Royalty obligation | Weighted Average | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Discount Rate (as a percent) | 3.32% | 3.36% | |
Short-term gold price (in dollars per ounce) | $ / oz | 1,275 | 1,221 | |
Long-term gold price (in dollars per ounce) | $ / oz | 1,300 | 1,300 | |
Level 3 | Monte Carlo | Holt Royalty obligation | Minimum | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Gold production scenarios (in 000's of ounces) | oz | 402 | 332 | |
Level 3 | Monte Carlo | Holt Royalty obligation | Maximum | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Gold production scenarios (in 000's of ounces) | oz | 1,779 | 1,570 | |
Contingent Payment | Level 3 | Monte Carlo | Batu Hijau Contingent Consideration | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | $ 23 | ||
Contingent Payment | Level 3 | Monte Carlo | Batu Hijau Contingent Consideration | Weighted Average | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Discount Rate (as a percent) | 17.50% | 17.10% | |
Short-term copper price (in dollars per pound) | $ / lb | 3.09 | 2.39 | |
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 | |
Contingent Payment | Level 3 | Monte Carlo | Marketable debt securities | Batu Hijau Contingent Consideration | |||
Quantitative and Qualitative Information - Unobservable Inputs | |||
Financial assets, fair value | $ 13 |
FAIR VALUE ACCOUNTING - Changes
FAIR VALUE ACCOUNTING - Changes in the Fair Value of Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | $ 31 | $ 25 |
Settlements | (18) | (11) |
Revaluation | 10 | 4 |
Valuation | 13 | |
Balance at end of period, assets | 23 | 31 |
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 187 | 129 |
Settlements | (12) | (11) |
Revaluation | 68 | 69 |
Balance at end of period, liabilities | 243 | 187 |
Holt Royalty obligation | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 187 | 129 |
Settlements | (12) | (11) |
Revaluation | 68 | 69 |
Balance at end of period, liabilities | 243 | 187 |
Batu Hijau Contingent Consideration | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 13 | |
Revaluation | 10 | |
Valuation | 13 | |
Balance at end of period, assets | 23 | 13 |
Marketable debt securities | Auction rate securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 0 | 7 |
Settlements | 0 | (8) |
Revaluation | 1 | |
Balance at end of period, assets | 0 | 0 |
Marketable debt securities | Asset-backed commercial paper | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | 18 |
Settlements | (18) | (3) |
Revaluation | 3 | |
Balance at end of period, assets | $ 0 | $ 18 |
FAIR VALUE ACCOUNTING - Nonrecu
FAIR VALUE ACCOUNTING - Nonrecurring measurement (Details) - Yanacocha - Nonrecurring - Level 3 | 12 Months Ended |
Dec. 31, 2016$ / oz | |
Nonrecurring fair value assumptions | |
Discount Rate (as a percent) | 7.10% |
Short-term gold price (in dollars per ounce) | 1,221 |
Long-term gold price (in dollars per ounce) | 1,300 |
DERIVATIVE INSTRUMENTS - Foreig
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) - Cash Flow Hedges - AUD AUD in Millions | Dec. 31, 2017AUD$ / AUD |
Foreign exchange forward contracts | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 6 |
Average rate | $ / AUD | 0.92 |
Expected Maturity Date - 2018 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 6 |
Average rate | $ / AUD | 0.92 |
DERIVATIVE INSTRUMENTS - Diesel
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) - Cash Flow Hedges gal in Millions | 12 Months Ended |
Dec. 31, 2017$ / galgal | |
Diesel forward contracts | |
Derivative contracts | |
Diesel gallons (millions) | gal | 18 |
Average rate ($/gallon) | $ / gal | 1.64 |
Diesel forward contracts maturing in 2018 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 16 |
Average rate ($/gallon) | $ / gal | 1.63 |
Diesel forward contracts maturing in 2019 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 2 |
Average rate ($/gallon) | $ / gal | 1.72 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - Cash Flow Hedges - Designated Hedge - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other current assets | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 6 | $ 4 |
Other current assets | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 6 | 4 |
Other current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | 27 |
Other current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 | 23 |
Other current liabilities | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 4 | |
Other non-current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | |
Other non-current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 |
DERIVATIVE INSTRUMENTS - Locati
DERIVATIVE INSTRUMENTS - Location and Amount of Gains (Losses) Reported in Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative contracts | |||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 5 | ||
Cash Flow Hedges | Foreign exchange forward contracts | |||
Derivative contracts | |||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | 5 | $ 3 | $ (39) |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (25) | (37) | (39) |
Cash Flow Hedges | Diesel forward contracts | |||
Derivative contracts | |||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | 3 | 9 | (23) |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (2) | (22) | (27) |
Cash Flow Hedges | Interest rate contracts | |||
Derivative contracts | |||
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | $ (10) | (33) | (18) |
Other income, net | Cash Flow Hedges | Diesel forward contracts | |||
Derivative contracts | |||
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) | $ 1 | $ 2 |
DERIVATIVE INSTRUMENTS - Batu H
DERIVATIVE INSTRUMENTS - Batu Hijau Contingent Consideration (Details) - Contingent Payment - Not Designated as Hedging Instrument $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Net income (loss) from discontinued operations | |
Batu Hijau Contingent Consideration | |
Change in value of contingent consideration | $ 10 |
Tax effect | 4 |
Other noncurrent assets | |
Batu Hijau Contingent Consideration | |
Batu Hijau contingent consideration | $ 23 |
DERIVATIVE INSTRUMENTS - Embedd
DERIVATIVE INSTRUMENTS - Embedded Derivatives (Details) oz in Thousands, lb in Millions | 12 Months Ended |
Dec. 31, 2017lboz$ / oz$ / lb | |
Gold Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | oz | 76 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,299 |
Copper Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | lb | 21 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 3.26 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 |
Investments | |||
Investments, Fair/Equity Basis | $ 280 | $ 207 | |
TMAC | |||
Investments | |||
Ownership interest (as a percent) | 28.79% | 28.79% | 29.00% |
Minera La Zanja S.R.L. | |||
Investments | |||
Ownership interest (as a percent) | 46.94% | 46.94% | |
Euronimba Ltd | |||
Investments | |||
Ownership interest (as a percent) | 45.00% | 43.50% | |
Investments - current | Marketable equity securities | |||
Investments | |||
Cost/Equity Basis | $ 38 | $ 33 | |
Unrealized Gain | 32 | 27 | |
Unrealized Loss | (8) | (4) | |
Fair/Equity Basis - Current Marketable Equity Securities | 62 | 56 | |
Investments - noncurrent | |||
Investments | |||
Investments, Cost/Equity Basis | 290 | 205 | |
Unrealized Gain | 2 | ||
Unrealized Loss | (10) | ||
Investments, Fair/Equity Basis | 280 | 207 | |
Equity Method Investments | 165 | 183 | |
Investments - noncurrent | TMAC | |||
Investments | |||
Equity Method Investments | 115 | 108 | |
Investments - noncurrent | Minera La Zanja S.R.L. | |||
Investments | |||
Equity Method Investments | 50 | 71 | |
Investments - noncurrent | Euronimba Ltd | |||
Investments | |||
Equity Method Investments | 4 | ||
Investments - noncurrent | Other investments, at cost | |||
Investments | |||
Other investments, at cost | 12 | 6 | |
Investments - noncurrent | Marketable equity securities | |||
Investments | |||
Cost/Equity Basis | 113 | ||
Unrealized Loss | (10) | ||
Fair/Equity Basis - Long-Term Marketable Securities | 103 | ||
Investments - noncurrent | Marketable equity securities | Continental | |||
Investments | |||
Cost/Equity Basis | 109 | ||
Unrealized Loss | (8) | ||
Fair/Equity Basis - Long-Term Marketable Securities | 101 | ||
Investments - noncurrent | Other marketable equity securities | |||
Investments | |||
Cost/Equity Basis | 4 | ||
Unrealized Loss | (2) | ||
Fair/Equity Basis - Long-Term Marketable Securities | 2 | ||
Investments - noncurrent | Asset-backed commercial paper | |||
Investments | |||
Cost/Equity Basis | 16 | ||
Unrealized Gain | 2 | ||
Fair/Equity Basis - Long-Term Marketable Securities | 18 | ||
Other noncurrent assets | |||
Investments | |||
Non-current restricted investments, Cost/Equity Basis | 66 | 60 | |
Unrealized Gain | 1 | 2 | |
Unrealized Loss | (3) | ||
Non-current restricted investments, Fair/Equity Basis | 64 | 62 | |
Other noncurrent assets | Marketable debt securities | |||
Investments | |||
Non-current restricted investments, Cost/Equity Basis | 58 | 48 | |
Unrealized Gain | 1 | ||
Unrealized Loss | (3) | ||
Non-current restricted investments, Fair/Equity Basis | 55 | 49 | |
Other noncurrent assets | Other assets | |||
Investments | |||
Non-current restricted investments, Cost/Equity Basis | 8 | 12 | |
Unrealized Gain | 1 | 1 | |
Non-current restricted investments, Fair/Equity Basis | $ 9 | $ 13 |
INVESTMENTS - Purchases, Sales,
INVESTMENTS - Purchases, Sales, and Exchanges (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||
Nov. 30, 2017USD ($)shares | Aug. 31, 2017USD ($)shares | Jun. 30, 2017USD ($)shares | May 31, 2017USD ($)shares | Apr. 30, 2017USD ($)shares | Jan. 31, 2017USD ($) | Nov. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Feb. 28, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2017CAD / shares | May 31, 2017CAD / shares | Apr. 30, 2017CAD / shares | |
Investments acquired | |||||||||||||||
Total consideration paid | $ 130 | $ 15 | $ 17 | ||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Maturities of certificates of deposit | $ 25 | ||||||||||||||
Asset-backed commercial paper | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Realized gain (loss) | $ 0 | ||||||||||||||
Auction rate securities | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Proceeds from securities called at par | $ 8 | ||||||||||||||
Realized gain (loss) | $ 0 | ||||||||||||||
TMAC | |||||||||||||||
Investments acquired | |||||||||||||||
Shares acquired | shares | 2,000,000 | ||||||||||||||
Price paid per share | CAD / shares | CAD 7 | ||||||||||||||
Equity method investment acquired | $ 12 | ||||||||||||||
Ownership interest (as a percent) | 28.79% | 29.00% | 28.79% | ||||||||||||
Fort a' la Corne | Shore Gold | |||||||||||||||
Investments acquired | |||||||||||||||
Shares received from sale of investment | shares | 54,000,000 | ||||||||||||||
Warrants received from sale of investment | shares | 1,000,000 | ||||||||||||||
Marketable equity securities | $ 15 | ||||||||||||||
Novo Resources Corp | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Proceeds from sale of investment | $ 15 | ||||||||||||||
Shares held after transaction | shares | 6,000,000 | ||||||||||||||
Novo Resources Corp | Other income, net | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Gain on sale of investments, net | $ 5 | ||||||||||||||
Continental | |||||||||||||||
Investments acquired | |||||||||||||||
Shares acquired | shares | 37,000,000 | ||||||||||||||
Price paid per share | CAD / shares | CAD 4 | ||||||||||||||
Total consideration paid | $ 109 | ||||||||||||||
Goldstrike Resources | |||||||||||||||
Investments acquired | |||||||||||||||
Price paid per share | CAD / shares | CAD 0.47 | ||||||||||||||
Total consideration paid | $ 4 | ||||||||||||||
Number of units acquired | shares | 13,000,000 | ||||||||||||||
Number of common shares included in each unit acquired | shares | 1 | ||||||||||||||
Number of warrants included in each unit acquired | shares | 1 | ||||||||||||||
Regis Resources Ltd. | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Proceeds from sale of investment | $ 184 | ||||||||||||||
Regis Resources Ltd. | Other income, net | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Gain on sale of investments, net | $ 103 | ||||||||||||||
Novo Resources Corp | |||||||||||||||
Investments sold or matured or called at par | |||||||||||||||
Percentage of interest sold | 66.60% | ||||||||||||||
Fort a' la Corne | Shore Gold | |||||||||||||||
Investments acquired | |||||||||||||||
Ownership interest held (as a percent) | 31.00% | ||||||||||||||
Shore Gold | Fort a' la Corne | |||||||||||||||
Investments acquired | |||||||||||||||
Ownership interest held (as a percent) | 19.90% | ||||||||||||||
Continental | |||||||||||||||
Investments acquired | |||||||||||||||
Ownership interest held (as a percent) | 19.90% |
INVESTMENTS - Other Changes - N
INVESTMENTS - Other Changes - Novo (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Sep. 30, 2016 | Feb. 28, 2015 | Dec. 31, 2016 | |
Investments | |||
Maturities of Certificates of Deposit | $ 25 | ||
Novo Resources Corp | Unrealized gain (loss) on marketable securities, net | |||
Novo Resources Stock Sale | |||
Unrealized gain in Accumulated other comprehensive income (loss) | $ 4 | ||
Novo Resources Corp | |||
Novo Resources Stock Sale | |||
Ownership interest held after sale (as a percent) | 19.97% | ||
Novo Resources Corp | Talga Resources Ltd. | |||
Novo Resources Stock Sale | |||
Shares issued | 765,115 |
INVESTMENTS - Impairments and O
INVESTMENTS - Impairments and Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairments | |||
Impairment of investments | $ 0 | $ 0 | $ 115 |
Increase (decrease) in fair value of marketable securities previously impaired | 28 | ||
Gabriel Resources Ltd | |||
Impairments | |||
Increase (decrease) in fair value of marketable securities previously impaired | 18 | ||
EMX Royalty Corp. | |||
Impairments | |||
Increase (decrease) in fair value of marketable securities previously impaired | 4 | ||
Pilot Gold | |||
Impairments | |||
Increase (decrease) in fair value of marketable securities previously impaired | 2 | ||
Loncor Resources | |||
Impairments | |||
Increase (decrease) in fair value of marketable securities previously impaired | $ 2 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory, net | ||
Materials and supplies | $ 416 | $ 391 |
In-process | 131 | 130 |
Concentrate and copper cathode | 83 | 67 |
Precious metals | 49 | 29 |
Total inventories | $ 679 | $ 617 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVENTORIES | |||
Inventory write-downs | $ 212 | $ 298 | $ 236 |
Cripple Creek & Victor mine | |||
INVENTORIES | |||
Inventory write-downs | 4 | ||
Carlin | |||
INVENTORIES | |||
Inventory write-downs | 4 | 2 | 4 |
Phoenix | |||
INVENTORIES | |||
Inventory write-downs | 4 | 12 | 5 |
Twin Creeks | |||
INVENTORIES | |||
Inventory write-downs | 1 | ||
Yanacocha | |||
INVENTORIES | |||
Inventory write-downs | 4 | 3 | 3 |
Costs applicable to sales | |||
INVENTORIES | |||
Inventory write-downs | 14 | 15 | 10 |
Depreciation and amortization | |||
INVENTORIES | |||
Inventory write-downs | $ 2 | $ 3 | $ 2 |
STOCKPILES AND ORE ON LEACH 146
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 676 | $ 763 |
Long-term stockpiles and ore on leach pads | 1,848 | 1,864 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 330 | 393 |
Long-term stockpiles and ore on leach pads | 1,502 | 1,506 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 346 | 370 |
Long-term stockpiles and ore on leach pads | 346 | 358 |
Operating Segments | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 2,524 | 2,627 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 441 | 421 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 68 | 80 |
Operating Segments | Twin Creeks | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 340 | 328 |
Operating Segments | Long Canyon | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 34 | 9 |
Operating Segments | Cripple Creek & Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 314 | 369 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 270 | 367 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 25 | 27 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 431 | 394 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 4 | 19 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 125 | 113 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 409 | 386 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 63 | $ 114 |
STOCKPILES AND ORE ON LEACH 147
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Write-downs | |||
Inventory write-downs | $ 212 | $ 298 | $ 236 |
Carlin | |||
Write-downs | |||
Inventory write-downs | 4 | 2 | 4 |
Twin Creeks | |||
Write-downs | |||
Inventory write-downs | 1 | ||
Yanacocha | |||
Write-downs | |||
Inventory write-downs | 4 | 3 | 3 |
Phoenix | |||
Write-downs | |||
Inventory write-downs | 4 | 12 | 5 |
Depreciation and amortization | |||
Write-downs | |||
Inventory write-downs | 2 | 3 | 2 |
Stockpiles and ore on leach pads | Carlin | |||
Write-downs | |||
Inventory write-downs | 83 | 105 | 163 |
Stockpiles and ore on leach pads | Twin Creeks | |||
Write-downs | |||
Inventory write-downs | 46 | 22 | 20 |
Stockpiles and ore on leach pads | Yanacocha | |||
Write-downs | |||
Inventory write-downs | 70 | 187 | 138 |
Stockpiles and ore on leach pads | Ahafo | |||
Write-downs | |||
Inventory write-downs | 31 | 100 | |
Stockpiles and ore on leach pads | Akyem | |||
Write-downs | |||
Inventory write-downs | 45 | ||
Stockpiles and ore on leach pads | Boddington | |||
Write-downs | |||
Inventory write-downs | 21 | ||
Stockpiles and ore on leach pads | Costs applicable to sales | |||
Write-downs | |||
Inventory write-downs | 198 | 283 | 226 |
Stockpiles and ore on leach pads | Depreciation and amortization | |||
Write-downs | |||
Inventory write-downs | $ 77 | $ 131 | $ 116 |
PROPERTY, PLANT AND MINE DEV148
PROPERTY, PLANT AND MINE DEVELOPMENT - Property, Plant and Mine Development (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | ||
Cost | $ 26,284 | $ 25,033 |
Accumulated Depreciation | (14,017) | (12,548) |
Property, Plant and Equipment, Net, Total | 12,267 | 12,485 |
Land | ||
Property, Plant and Equipment | ||
Cost | 222 | 218 |
Property, Plant and Equipment, Net, Total | 222 | 218 |
Facilities and equipment | ||
Property, Plant and Equipment | ||
Cost | 15,979 | 15,115 |
Accumulated Depreciation | (9,760) | (8,774) |
Property, Plant and Equipment, Net, Total | $ 6,219 | 6,341 |
Facilities and equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Facilities and equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 27 years | |
Mine development | ||
Property, Plant and Equipment | ||
Cost | $ 5,260 | 4,773 |
Accumulated Depreciation | (3,026) | (2,602) |
Property, Plant and Equipment, Net, Total | $ 2,234 | 2,171 |
Mine development | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Mine development | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 27 years | |
Mineral interests | ||
Property, Plant and Equipment | ||
Cost | $ 1,975 | 1,975 |
Accumulated Depreciation | (624) | (577) |
Property, Plant and Equipment, Net, Total | 1,351 | 1,398 |
Mineral Interests, Cost | 1,975 | 1,975 |
Mineral Interests Accumulated Depreciation | (624) | (577) |
Mineral Interests Net Book Value | $ 1,351 | 1,398 |
Mineral interests | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Mineral interests | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 27 years | |
Production stage | ||
Property, Plant and Equipment | ||
Mineral Interests, Cost | $ 865 | 816 |
Mineral Interests Accumulated Depreciation | (624) | (577) |
Mineral Interests Net Book Value | $ 241 | 239 |
Production stage | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Production stage | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 22 years | |
Development stage | ||
Property, Plant and Equipment | ||
Mineral Interests, Cost | $ 39 | 66 |
Mineral Interests Net Book Value | 39 | 66 |
Exploration stage | ||
Property, Plant and Equipment | ||
Mineral Interests, Cost | 1,071 | 1,093 |
Mineral Interests Net Book Value | 1,071 | 1,093 |
Asset retirement cost | ||
Property, Plant and Equipment | ||
Cost | 876 | 833 |
Accumulated Depreciation | (607) | (595) |
Property, Plant and Equipment, Net, Total | $ 269 | 238 |
Asset retirement cost | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Asset retirement cost | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 27 years | |
Construction-in-progress | ||
Property, Plant and Equipment | ||
Cost | $ 1,972 | 2,119 |
Property, Plant and Equipment, Net, Total | 1,972 | 2,119 |
Leased assets included above in facilities and equipment | ||
Property, Plant and Equipment | ||
Cost | 27 | 27 |
Accumulated Depreciation | (15) | (11) |
Property, Plant and Equipment, Net, Total | $ 12 | $ 16 |
Leased assets included above in facilities and equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable Life | 1 year | |
Leased assets included above in facilities and equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable Life | 27 years |
PROPERTY, PLANT AND MINE DEV149
PROPERTY, PLANT AND MINE DEVELOPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant And Mine Development | |||
Construction-in-progress | $ 1,972 | $ 2,119 | |
Costs capitalized during period | 890 | 1,077 | $ 1,370 |
North America | |||
Property, Plant And Mine Development | |||
Construction-in-progress | 121 | 141 | |
South America | |||
Property, Plant And Mine Development | |||
Construction-in-progress | 1,389 | 1,425 | |
Australia | |||
Property, Plant And Mine Development | |||
Construction-in-progress | 139 | 155 | |
Africa | |||
Property, Plant And Mine Development | |||
Construction-in-progress | 316 | 387 | |
Conga | South America | Other South America | |||
Property, Plant And Mine Development | |||
Costs capitalized during period | $ 0 | $ 0 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt | ||
Total Debt Current | $ 4 | $ 566 |
Total Debt Non-Current | 4,061 | 4,049 |
2017 Convertible Senior Notes, net | ||
Debt | ||
Total Debt Current | 561 | |
2019 Senior Notes, net | ||
Debt | ||
Total Debt Non-Current | 625 | 624 |
2022 Senior Notes, net | ||
Debt | ||
Total Debt Non-Current | 985 | 984 |
2035 Senior Notes, net | ||
Debt | ||
Total Debt Non-Current | 594 | 594 |
2039 Senior Notes, net | ||
Debt | ||
Total Debt Non-Current | 859 | 858 |
2042 Senior Notes, net | ||
Debt | ||
Total Debt Non-Current | 984 | 984 |
Other | ||
Debt | ||
Total Debt Current | 4 | 5 |
Total Debt Non-Current | 14 | $ 5 |
Other | Tanami Power project | Construction-in-progress | ||
Debt | ||
Total Debt Non-Current | $ 14 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2017USD ($)facility | |
Scheduled minimum debt repayments | |
2,018 | $ 0 |
2,019 | 626 |
2,020 | 0 |
2,021 | 0 |
2,022 | 992 |
Debt repayments, thereafter | 2,474 |
Scheduled minimum capital lease repayments | |
2,018 | 4 |
2,019 | 3 |
2,020 | 1 |
2,021 | 1 |
2,022 | 1 |
Capital lease repayments, thereafter | $ 1 |
Construction-in-progress | Tanami Power project | Other | |
Other information | |
Number of on-site power stations | facility | 2 |
Financing obligation | $ 14 |
DEBT - Corporate Revolving Cred
DEBT - Corporate Revolving Credit Facilities (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Sep. 30, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2012 | May 31, 2011 | |
Corporate Revolving Credit Facility | |||||
Debt | |||||
Line of credit facility maximum borrowing capacity | $ 3,000 | $ 2,500 | |||
Credit facility, amount outstanding | $ 0 | ||||
Corporate Revolving Credit Facility | Revolver sub-facility | |||||
Debt | |||||
Letters of credit outstanding | 80 | $ 80 | |||
LC Agreement | BNP Paribas | |||||
Debt | |||||
Line of credit facility maximum borrowing capacity | 175 | ||||
Credit facility, amount outstanding | $ 172 | $ 172 | |||
Debt term | 3 years |
DEBT - 2017 Convertible Senior
DEBT - 2017 Convertible Senior Notes and 2019 Term Loan (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | Aug. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt | |||||
Debt payments | $ 580 | $ 1,312 | $ 229 | ||
Additional paid-in capital | 9,564 | 9,490 | |||
2017 Convertible Senior Notes, net | |||||
Debt | |||||
Debt payments | $ 575 | ||||
Additional paid-in capital | 123 | ||||
Principal amount | 575 | ||||
Unamortized debt discount and issuance costs | (14) | ||||
Net carrying amount | 561 | ||||
Interest expense, net | 5 | 9 | 9 | ||
Amortization of debt discount | $ 14 | $ 24 | $ 23 | ||
2019 Term Loan | |||||
Debt | |||||
Debt payments | $ 275 | ||||
Premiums paid for extinguishment of debt | $ 0 |
DEBT - 2019 and 2039 Senior Not
DEBT - 2019 and 2039 Senior Notes (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Sep. 30, 2009USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | |
Debt | ||||
Pre-tax loss on debt repurchased | $ 55,000,000 | |||
Other income, net | ||||
Debt | ||||
Pre-tax loss on debt repurchased | 55,000,000 | |||
2019 and 2039 Notes | ||||
Debt | ||||
Number of public offerings | item | 2 | |||
2019 and 2039 Notes | Other income, net | ||||
Debt | ||||
Pre-tax loss on debt repurchased | $ 4,000,000 | |||
2019 and 2039 Notes | Interest expense, net | Reclassification Out of Accumulated Other Comprehensive Income | ||||
Debt | ||||
Interest expense, net | 2,000,000 | |||
2019 Senior Notes, net | ||||
Debt | ||||
Principal amount | $ 900,000,000 | |||
Net proceeds | 895,000,000 | |||
Debt instrument, interest rate, stated percentage | 5.13% | |||
Amount of debt repurchased | 274,000,000 | |||
Estimated fair value of outstanding debt | 678,000,000 | $ 662,000,000 | ||
2039 Senior Notes, net | ||||
Debt | ||||
Principal amount | 1,100,000,000 | |||
Net proceeds | $ 1,080,000,000 | |||
Debt instrument, interest rate, stated percentage | 6.25% | |||
Amount of debt repurchased | $ 226,000,000 | |||
Estimated fair value of outstanding debt | $ 981,000,000 | $ 1,132,000,000 |
DEBT - 2022 and 2042 Senior Not
DEBT - 2022 and 2042 Senior Notes (Details) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2016USD ($) | Mar. 31, 2012USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt | |||||
Pre-tax loss on debt repurchased | $ 55,000,000 | ||||
Other income, net | $ (54,000,000) | (69,000,000) | $ (135,000,000) | ||
Other income, net | |||||
Debt | |||||
Pre-tax loss on debt repurchased | 55,000,000 | ||||
2022 and 2042 Senior Notes | |||||
Debt | |||||
Number of public offerings | item | 2 | ||||
2022 Senior Notes, net | |||||
Debt | |||||
Debt instrument principal amount | $ 1,500,000,000 | ||||
Net proceeds | 1,479,000,000 | ||||
Debt instrument, interest rate, stated percentage | 3.50% | ||||
Amount of debt repurchased | $ 508,000,000 | ||||
Estimated fair value of outstanding debt | $ 1,021,000,000 | 1,016,000,000 | |||
2022 Senior Notes, net | Reclassification Out of Accumulated Other Comprehensive Income | |||||
Debt | |||||
Other income, net | 20,000,000 | ||||
2022 Senior Notes, net | Other income, net | |||||
Debt | |||||
Pre-tax loss on debt repurchased | $ 31,000,000 | ||||
2042 Senior Notes, net | |||||
Debt | |||||
Debt instrument principal amount | 1,000,000,000 | ||||
Net proceeds | $ 983,000,000 | ||||
Debt instrument, interest rate, stated percentage | 4.88% | ||||
Estimated fair value of outstanding debt | $ 1,117,000,000 | $ 959,000,000 |
DEBT - 2035 Senior Notes (Detai
DEBT - 2035 Senior Notes (Details) - 2035 Senior Notes, net - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2005 |
Debt | |||
Debt instrument principal amount | $ 600,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.88% | ||
Estimated fair value of outstanding debt | $ 739,000,000 | $ 656,000,000 |
DEBT - Subsidiary Financings an
DEBT - Subsidiary Financings and Debt Covenants (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Information pertaining to debt | ||||
Debt payments | $ 580 | $ 1,312 | $ 229 | |
Corporate Revolving Credit Facility | Maximum | ||||
Information pertaining to debt | ||||
Debt to capitalization ratio, maximum allowed under covenant | 0.625 | |||
Ahafo Project Finance Facility | ||||
Information pertaining to debt | ||||
Debt payments | $ 25 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other current liabilities: | ||
Accrued operating costs | $ 124 | $ 99 |
Reclamation and remediation liabilities | 100 | 61 |
Accrued capital expenditures | 77 | 53 |
Royalties | 63 | 52 |
Accrued interest | 52 | 57 |
Holt royalty obligation | 15 | 13 |
Taxes other than income and mining | 7 | 8 |
Derivative instruments | 1 | 27 |
Other | 20 | 37 |
Other current liabilities, total | 459 | 407 |
Other long-term liabilities: | ||
Holt property royalty | 228 | 174 |
Income and mining taxes | 47 | 50 |
Power supply agreements | 32 | 31 |
Social development obligations | 22 | 25 |
Other | 13 | 46 |
Other long-term liabilities, total | $ 342 | $ 326 |
RECLASSIFICATIONS OUT OF ACC159
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | $ 11,874 | $ 14,292 | $ 13,089 |
Reclassifications from accumulated other comprehensive income (loss) | 38 | (26) | 181 |
Other comprehensive income (loss) | 42 | 144 | |
Balance at end of period | 11,630 | 11,874 | 14,292 |
Unrealized gain (loss) on marketable securities, net | |||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | (101) | (43) | |
Change in other comprehensive income (loss) before reclassifications | (10) | 45 | |
Reclassifications from accumulated other comprehensive income (loss) | (5) | (103) | |
Other comprehensive income (loss) | (15) | (58) | |
Balance at end of period | (116) | (101) | (43) |
Foreign Currency Translation Adjustments | |||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | 118 | 116 | |
Change in other comprehensive income (loss) before reclassifications | 12 | 2 | |
Other comprehensive income (loss) | 12 | 2 | |
Balance at end of period | 130 | 118 | 116 |
Pension and other post-retirement benefit adjustments | |||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | (223) | (207) | |
Change in other comprehensive income (loss) before reclassifications | (3) | (32) | |
Reclassifications from accumulated other comprehensive income (loss) | 18 | 16 | 18 |
Other comprehensive income (loss) | 15 | (16) | |
Balance at end of period | (208) | (223) | (207) |
Unrealized Gain (Loss) on Cash flow Hedge Instruments | |||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | (128) | (200) | |
Change in other comprehensive income (loss) before reclassifications | 5 | 11 | |
Reclassifications from accumulated other comprehensive income (loss) | 25 | 61 | |
Other comprehensive income (loss) | 30 | 72 | |
Balance at end of period | (98) | (128) | (200) |
Accumulated Other Comprehensive Income (Loss) | |||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
Balance at beginning of period | (334) | (334) | (478) |
Change in other comprehensive income (loss) before reclassifications | 4 | 26 | |
Reclassifications from accumulated other comprehensive income (loss) | 38 | (26) | |
Other comprehensive income (loss) | 42 | 144 | |
Balance at end of period | $ (292) | $ (334) | $ (334) |
RECLASSIFICATIONS OUT OF ACC160
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Costs applicable to sales | [1] | $ 4,038 | $ 3,772 | $ 3,578 |
Other income, net | (54) | (69) | (135) | |
Interest expense, net | 241 | 273 | 297 | |
Net of tax | 38 | (26) | 181 | |
Total before tax | (1,092) | 214 | (295) | |
Tax benefit (expense) | 1,125 | 563 | 391 | |
Net of tax | 87 | 923 | (304) | |
Unrealized gain (loss) on marketable securities, net | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Net of tax | (5) | (103) | ||
Total before tax | (5) | (103) | 107 | |
Net of tax | (5) | (103) | 107 | |
Accumulated net marketable securities adjustments - Sale of marketable securities | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Other income, net | (5) | (103) | ||
Accumulated net marketable securities adjustments - Impairment of marketable securities | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Other income, net | 107 | |||
Pension and other post-retirement benefit adjustments | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Total before tax | 28 | 25 | 27 | |
Tax benefit (expense) | (10) | (9) | (9) | |
Net of tax | 18 | 16 | 18 | |
Accumulated defined benefit pension plans adjustment, amortization | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Total before tax | 23 | 19 | 24 | |
Accumulated defined benefit pension plans adjustment, settlements | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Total before tax | 5 | 6 | 3 | |
Unrealized Gain (Loss) on Cash flow Hedge Instruments | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Net of tax | 25 | 61 | ||
Total before tax | 37 | 91 | 82 | |
Tax benefit (expense) | 12 | 30 | 26 | |
Net of tax | (25) | (61) | (56) | |
Operating cash flow hedges | Unrealized Gain (Loss) on Cash flow Hedge Instruments | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Costs applicable to sales | 27 | 59 | 66 | |
Other income, net | 1 | 2 | ||
Interest rate contracts | Unrealized Gain (Loss) on Cash flow Hedge Instruments | ||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Interest expense, net | $ (10) | $ (33) | $ (18) | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSE161
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Decrease (increase) in operating assets: | |||
Trade and other accounts receivables | $ 66 | $ (130) | $ 97 |
Inventories, stockpiles and ore on leach pads | (221) | (302) | (287) |
EGR refinery and other assets | (36) | ||
Other assets | (52) | (83) | 49 |
Increase (decrease) in operating liabilities: | |||
Accounts payable and other accrued liabilities | 18 | 26 | 8 |
EGR refinery and other liabilities | 36 | ||
Reclamation and remediation liabilities | (78) | (54) | (61) |
Accrued tax liabilities | 93 | 59 | (12) |
Net change in operating assets and liabilities | $ (174) | $ (484) | $ (206) |
SUPPLEMENTAL CASH FLOW INFOR162
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income and mining taxes, net of refunds | $ 214 | $ 85 | $ 77 |
Interest, net of amounts capitalized | $ 239 | $ 276 | $ 306 |
SUPPLEMENTAL CASH FLOW INFOR163
SUPPLEMENTAL CASH FLOW INFORMATION - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash Investing Activities | |||
Non-cash assets received | $ 22 | ||
Construction in progress under built-to-suit arrangements | 14 | ||
Non-cash Financing Activities | |||
Payments of distributions to noncontrolling interests | 178 | $ 3 | |
Cash calls requested from noncontrolling interest | 97 | 81 | $ 90 |
Funding from noncontrolling interests | 94 | 66 | $ 109 |
Noncontrolling Interests | Distributions declared | |||
Non-cash Financing Activities | |||
Dividends Payable | $ 170 | $ 21 |
OPERATING LEASE COMMITMENTS (De
OPERATING LEASE COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum annual lease payments: | |||
Operating leases future minimum payments due - 2018 | $ 8 | ||
Operating leases future minimum payments due - 2019 | 7 | ||
Operating leases future minimum payments due - 2020 | 5 | ||
Operating leases future minimum payments due - 2021 | 2 | ||
Operating leases future minimum payments due - 2022 | 1 | ||
Operating leases future minimum payments due - Thereafter | 3 | ||
Operating Leases, Future Minimum Payments Due, Total | 26 | ||
Rent expense | $ 43 | $ 43 | $ 45 |
CONDENSED CONSOLIDATING FINA165
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Dec. 31, 2017 |
Newmont USA | |
Condensed Financial Statements | |
Percent ownership held by Newmont | 100.00% |
CONDENSED CONSOLIDATING FINA166
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Consolidating Statement of Operations | ||||||||||||
Revenue from sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 | |
Costs and expenses | ||||||||||||
Costs applicable to sales (1) | [1] | 4,038 | 3,772 | 3,578 | ||||||||
Depreciation and amortization | 1,249 | 1,220 | 1,102 | |||||||||
Reclamation and remediation | 177 | 179 | 253 | |||||||||
Exploration | 179 | 148 | 156 | |||||||||
Advanced projects, research and development | 143 | 134 | 126 | |||||||||
General and administrative | 237 | 233 | 241 | |||||||||
Impairment of long-lived assets | 14 | 977 | 56 | |||||||||
Other expense, net | 32 | 58 | 116 | |||||||||
Total costs and expenses | 6,069 | 6,721 | 5,628 | |||||||||
Other income (expense): | ||||||||||||
Other income, net | 54 | 69 | 135 | |||||||||
Interest expense, net | (241) | (273) | (297) | |||||||||
Total other income (expense) | (187) | (204) | (162) | |||||||||
Income (loss) before income and mining tax and other items | 1,092 | (214) | 295 | |||||||||
Income and mining tax benefit (expense) | (1,125) | (563) | (391) | |||||||||
Equity income (loss) of affiliates | (16) | (13) | (45) | |||||||||
Net income (loss) from continuing operations | (49) | (790) | (141) | |||||||||
Net income (loss) from discontinued operations (Note 3) | (38) | (133) | 445 | |||||||||
Net income (loss) | (87) | (923) | 304 | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Continuing operations | (11) | 570 | 140 | |||||||||
Discontinued operations | (274) | (224) | ||||||||||
Net loss (income) attributable to noncontrolling interests | (11) | 296 | (84) | |||||||||
Net income (loss) attributable to Newmont stockholders | $ (527) | $ 206 | $ 177 | $ 46 | $ (344) | $ (358) | $ 23 | $ 52 | (98) | (627) | 220 | |
Comprehensive income (loss) | (45) | (923) | 448 | |||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (11) | 296 | (84) | |||||||||
Comprehensive income (loss) attributable to Newmont stockholders | (56) | (627) | 364 | |||||||||
Eliminations | ||||||||||||
Other income (expense): | ||||||||||||
Interest income - intercompany | (233) | (178) | (161) | |||||||||
Interest expense - intercompany | 233 | 178 | 161 | |||||||||
Equity income (loss) of affiliates | 113 | 1,539 | (80) | |||||||||
Net income (loss) from continuing operations | 113 | 1,539 | (80) | |||||||||
Net income (loss) | 113 | 1,539 | (80) | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Discontinued operations | 60 | |||||||||||
Net loss (income) attributable to noncontrolling interests | 60 | |||||||||||
Net income (loss) attributable to Newmont stockholders | 113 | 1,539 | (20) | |||||||||
Comprehensive income (loss) | 113 | 1,539 | (211) | |||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 55 | |||||||||||
Comprehensive income (loss) attributable to Newmont stockholders | 113 | 1,539 | (156) | |||||||||
Newmont Mining Corporation | Reportable Legal Entities | ||||||||||||
Costs and expenses | ||||||||||||
Depreciation and amortization | 4 | 4 | 4 | |||||||||
Total costs and expenses | 4 | 4 | 4 | |||||||||
Other income (expense): | ||||||||||||
Other income, net | 41 | (69) | (10) | |||||||||
Interest income - intercompany | 149 | 132 | 130 | |||||||||
Interest expense - intercompany | (39) | (45) | (20) | |||||||||
Interest expense, net | (222) | (254) | (289) | |||||||||
Total other income (expense) | (71) | (236) | (189) | |||||||||
Income (loss) before income and mining tax and other items | (75) | (240) | (193) | |||||||||
Income and mining tax benefit (expense) | (34) | 232 | 67 | |||||||||
Equity income (loss) of affiliates | 11 | (619) | 346 | |||||||||
Net income (loss) from continuing operations | (98) | (627) | 220 | |||||||||
Net income (loss) | (98) | (627) | 220 | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Net income (loss) attributable to Newmont stockholders | (98) | (627) | 220 | |||||||||
Comprehensive income (loss) | (56) | (627) | 364 | |||||||||
Comprehensive income (loss) attributable to Newmont stockholders | (56) | (627) | 364 | |||||||||
Newmont USA | Reportable Legal Entities | ||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||
Revenue from sales | 1,934 | 1,972 | 1,829 | |||||||||
Costs and expenses | ||||||||||||
Costs applicable to sales (1) | 1,190 | 1,227 | 1,225 | |||||||||
Depreciation and amortization | 351 | 335 | 319 | |||||||||
Reclamation and remediation | 49 | 24 | 25 | |||||||||
Exploration | 43 | 35 | 30 | |||||||||
Advanced projects, research and development | 21 | 11 | 12 | |||||||||
General and administrative | 80 | 90 | 72 | |||||||||
Impairment of long-lived assets | 1 | 4 | ||||||||||
Other expense, net | 12 | 30 | 29 | |||||||||
Total costs and expenses | 1,746 | 1,753 | 1,716 | |||||||||
Other income (expense): | ||||||||||||
Other income, net | 6 | 14 | 29 | |||||||||
Interest income - intercompany | 43 | 8 | ||||||||||
Interest expense - intercompany | (4) | |||||||||||
Interest expense, net | (7) | (6) | (7) | |||||||||
Total other income (expense) | 38 | 8 | 30 | |||||||||
Income (loss) before income and mining tax and other items | 226 | 227 | 143 | |||||||||
Income and mining tax benefit (expense) | (21) | (55) | (10) | |||||||||
Equity income (loss) of affiliates | (124) | (1,344) | (304) | |||||||||
Net income (loss) from continuing operations | 81 | (1,172) | (171) | |||||||||
Net income (loss) | 81 | (1,172) | (171) | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Net income (loss) attributable to Newmont stockholders | 81 | (1,172) | (171) | |||||||||
Comprehensive income (loss) | 92 | (1,170) | (127) | |||||||||
Comprehensive income (loss) attributable to Newmont stockholders | 92 | (1,170) | (127) | |||||||||
Other Subsidiaries | Reportable Legal Entities | ||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||
Revenue from sales | 5,414 | 4,739 | 4,256 | |||||||||
Costs and expenses | ||||||||||||
Costs applicable to sales (1) | 2,848 | 2,545 | 2,353 | |||||||||
Depreciation and amortization | 894 | 881 | 779 | |||||||||
Reclamation and remediation | 128 | 155 | 228 | |||||||||
Exploration | 136 | 113 | 126 | |||||||||
Advanced projects, research and development | 122 | 123 | 114 | |||||||||
General and administrative | 157 | 143 | 169 | |||||||||
Impairment of long-lived assets | 14 | 976 | 52 | |||||||||
Other expense, net | 20 | 28 | 87 | |||||||||
Total costs and expenses | 4,319 | 4,964 | 3,908 | |||||||||
Other income (expense): | ||||||||||||
Other income, net | 7 | 124 | 116 | |||||||||
Interest income - intercompany | 41 | 46 | 23 | |||||||||
Interest expense - intercompany | (190) | (133) | (141) | |||||||||
Interest expense, net | (12) | (13) | (1) | |||||||||
Total other income (expense) | (154) | 24 | (3) | |||||||||
Income (loss) before income and mining tax and other items | 941 | (201) | 345 | |||||||||
Income and mining tax benefit (expense) | (1,070) | (740) | (448) | |||||||||
Equity income (loss) of affiliates | (16) | 411 | (7) | |||||||||
Net income (loss) from continuing operations | (145) | (530) | (110) | |||||||||
Net income (loss) from discontinued operations (Note 3) | (38) | (133) | 445 | |||||||||
Net income (loss) | (183) | (663) | 335 | |||||||||
Net loss (income) attributable to noncontrolling interests, net of tax | ||||||||||||
Continuing operations | (11) | 570 | 140 | |||||||||
Discontinued operations | (274) | (284) | ||||||||||
Net loss (income) attributable to noncontrolling interests | (11) | 296 | (144) | |||||||||
Net income (loss) attributable to Newmont stockholders | (194) | (367) | 191 | |||||||||
Comprehensive income (loss) | (194) | (665) | 422 | |||||||||
Comprehensive loss (income) attributable to noncontrolling interests | (11) | 296 | (139) | |||||||||
Comprehensive income (loss) attributable to Newmont stockholders | $ (205) | $ (369) | $ 283 | |||||||||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINA167
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | $ 2,350 | $ 1,923 | $ 1,588 | ||||
Net cash provided by (used in) operating activities of discontinued operations | [1] | (15) | 869 | 557 | |||
Net cash provided by (used in) operating activities | 2,335 | 2,792 | 2,145 | ||||
Investing activities: | |||||||
Additions to property, plant and mine development | (866) | (1,133) | (1,311) | ||||
Purchases of investments | (130) | (15) | (17) | ||||
Proceeds from sales of investments | 35 | 195 | 29 | ||||
Acquisitions, net | (15) | (6) | (823) | ||||
Proceeds from sales of other assets | 5 | 9 | 203 | ||||
Proceeds from sale of Batu Hijau | 920 | ||||||
Other | 10 | (4) | (32) | ||||
Net cash provided by (used in) investing activities of continuing operations | (961) | (34) | (1,951) | ||||
Net cash provided by (used in) investing activities of discontinued operations | (46) | (90) | |||||
Net cash provided by (used in) investing activities | (961) | (80) | (2,041) | ||||
Financing activities: | |||||||
Repayment of debt | (580) | (1,312) | (229) | ||||
Distributions to noncontrolling interests | (178) | (3) | |||||
Dividends paid to common stockholders | (134) | (67) | (52) | ||||
Funding from noncontrolling interests | 94 | 66 | 109 | ||||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) | |||||
Dividends paid to noncontrolling interests | (146) | (3) | |||||
Acquisition of noncontrolling interests | (48) | (19) | (8) | ||||
Proceeds from stock issuance, net | 675 | ||||||
Sale of noncontrolling interests | 37 | ||||||
Other | (5) | 1 | (2) | ||||
Net cash provided by (used in) financing activities of continuing operations | (864) | (1,486) | 527 | ||||
Net cash provided by (used in) financing activities of discontinued operations | (331) | (225) | |||||
Net cash provided by (used in) financing activities | (864) | (1,817) | 302 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6 | 2 | (24) | ||||
Net change in cash and cash equivalents | 516 | 897 | 382 | ||||
Less net cash provided by (used in) Batu Hijau discontinued operations | 503 | 254 | |||||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 516 | 394 | 128 | ||||
Cash and cash equivalents at beginning of period | 2,782 | 2,388 | 2,260 | ||||
Cash and cash equivalents at end of period | 3,298 | 2,782 | 2,388 | ||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ 3,259 | $ 2,756 | |||||
Total cash, cash equivalents and restricted cash | 2,782 | 2,388 | 2,260 | 3,298 | 2,782 | $ 2,388 | |
Cash And Cash Equivalents | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 3,259 | 2,756 | 2,363 | ||||
Other current assets | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Restricted cash | 1 | 1 | |||||
Other noncurrent assets | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Restricted cash | 38 | 25 | 25 | ||||
Eliminations | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | (1,782) | ||||||
Net cash provided by (used in) operating activities | (1,782) | ||||||
Financing activities: | |||||||
Dividends paid to common stockholders | 1,782 | ||||||
Net cash provided by (used in) financing activities of continuing operations | 1,782 | ||||||
Net cash provided by (used in) financing activities | 1,782 | ||||||
Newmont Mining Corporation | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | (129) | 2,240 | 7 | ||||
Net cash provided by (used in) operating activities | (129) | 2,240 | 7 | ||||
Investing activities: | |||||||
Purchases of investments | (114) | ||||||
Acquisitions, net | (821) | ||||||
Proceeds from sales of other assets | 102 | ||||||
Net cash provided by (used in) investing activities of continuing operations | (114) | (719) | |||||
Net cash provided by (used in) investing activities | (114) | (719) | |||||
Financing activities: | |||||||
Repayment of debt | (575) | (1,307) | (200) | ||||
Dividends paid to common stockholders | (134) | (67) | (52) | ||||
Proceeds from stock issuance, net | 675 | ||||||
Net intercompany borrowings (repayments) | 955 | (866) | 291 | ||||
Other | (3) | (2) | |||||
Net cash provided by (used in) financing activities of continuing operations | 243 | (2,240) | 712 | ||||
Net cash provided by (used in) financing activities | 243 | (2,240) | 712 | ||||
Newmont USA | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | (207) | 1,342 | 422 | ||||
Net cash provided by (used in) operating activities | (207) | 1,342 | 422 | ||||
Investing activities: | |||||||
Additions to property, plant and mine development | (253) | (261) | (326) | ||||
Proceeds from sales of investments | 8 | 25 | |||||
Proceeds from sales of other assets | 18 | ||||||
Other | 2 | ||||||
Net cash provided by (used in) investing activities of continuing operations | (251) | (253) | (283) | ||||
Net cash provided by (used in) investing activities | (251) | (253) | (283) | ||||
Financing activities: | |||||||
Repayment of debt | (3) | (3) | (2) | ||||
Dividends paid to common stockholders | (1,512) | ||||||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) | |||||
Sale of noncontrolling interests | 3 | ||||||
Net intercompany borrowings (repayments) | 473 | (748) | (57) | ||||
Other | 1 | ||||||
Net cash provided by (used in) financing activities of continuing operations | 457 | (2,269) | (55) | ||||
Net cash provided by (used in) financing activities | 457 | (2,269) | (55) | ||||
Net change in cash and cash equivalents | (1) | (1,180) | 84 | ||||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | (1) | (1,180) | 84 | ||||
Cash and cash equivalents at beginning of period | 1 | 1,181 | 1,097 | ||||
Cash and cash equivalents at end of period | 1 | 1,181 | |||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 1 | ||||||
Total cash, cash equivalents and restricted cash | 1 | 1,181 | 1,097 | 1 | 1,181 | ||
Newmont USA | Reportable Legal Entities | Cash And Cash Equivalents | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 1 | 1,181 | |||||
Other Subsidiaries | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | 2,686 | 123 | 1,159 | ||||
Net cash provided by (used in) operating activities of discontinued operations | (15) | 869 | 557 | ||||
Net cash provided by (used in) operating activities | 2,671 | 992 | 1,716 | ||||
Investing activities: | |||||||
Additions to property, plant and mine development | (613) | (872) | (985) | ||||
Purchases of investments | (16) | (15) | (17) | ||||
Proceeds from sales of investments | 35 | 187 | 4 | ||||
Acquisitions, net | (15) | (6) | (2) | ||||
Proceeds from sales of other assets | 5 | 9 | 83 | ||||
Proceeds from sale of Batu Hijau | 920 | ||||||
Other | 8 | (4) | (32) | ||||
Net cash provided by (used in) investing activities of continuing operations | (596) | 219 | (949) | ||||
Net cash provided by (used in) investing activities of discontinued operations | (46) | (90) | |||||
Net cash provided by (used in) investing activities | (596) | 173 | (1,039) | ||||
Financing activities: | |||||||
Repayment of debt | (2) | (2) | (27) | ||||
Distributions to noncontrolling interests | (178) | (3) | |||||
Dividends paid to common stockholders | (270) | ||||||
Funding from noncontrolling interests | 94 | 66 | 109 | ||||
Dividends paid to noncontrolling interests | (146) | (3) | |||||
Acquisition of noncontrolling interests | (48) | (19) | (8) | ||||
Sale of noncontrolling interests | 34 | ||||||
Net intercompany borrowings (repayments) | (1,428) | 1,614 | (234) | ||||
Other | (2) | 1 | (1) | ||||
Net cash provided by (used in) financing activities of continuing operations | (1,564) | 1,241 | (130) | ||||
Net cash provided by (used in) financing activities of discontinued operations | (331) | (225) | |||||
Net cash provided by (used in) financing activities | (1,564) | 910 | (355) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 6 | 2 | (24) | ||||
Net change in cash and cash equivalents | 517 | 2,077 | 298 | ||||
Less net cash provided by (used in) Batu Hijau discontinued operations | 503 | 254 | |||||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 517 | 1,574 | 44 | ||||
Cash and cash equivalents at beginning of period | 2,781 | 1,207 | 1,163 | ||||
Cash and cash equivalents at end of period | 3,298 | 2,781 | 1,207 | ||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 3,259 | 2,755 | |||||
Total cash, cash equivalents and restricted cash | $ 2,781 | $ 1,207 | $ 1,163 | 3,298 | 2,781 | 1,207 | |
Other Subsidiaries | Reportable Legal Entities | Cash And Cash Equivalents | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 3,259 | 2,755 | 1,182 | ||||
Other Subsidiaries | Reportable Legal Entities | Other current assets | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Restricted cash | 1 | 1 | |||||
Other Subsidiaries | Reportable Legal Entities | Other noncurrent assets | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Restricted cash | $ 38 | $ 25 | $ 25 | ||||
[1] | Net cash provided by operating activities of discontinued operations includes $(3) related to closing costs for the sale of Batu Hijau that were paid in 2017, $-, $880 and $569 related to the operating activities of Batu Hijau in 2017, 2016 and 2015, respectively, and $(12), $(11) and $(12) for 2017, 2016 and 2015, respectively, related to the Holt royalty obligation, all of which were paid out of Cash and cash equivalents. For additional information regarding our discontinued operations, including cash flows from Batu Hijau, see Note 3. |
CONDENSED CONSOLIDATING FINA168
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 3,259 | $ 2,756 | ||
Trade receivables | 124 | 160 | ||
Other accounts receivables | 113 | 183 | ||
Investments | 62 | 56 | ||
Inventories | 679 | 617 | ||
Stockpiles and ore on leach pads | 676 | 763 | ||
Other current assets | 153 | 142 | ||
Current assets | 5,066 | 4,677 | ||
Property, plant and mine development, net | 12,267 | 12,485 | ||
Investments | 280 | 207 | ||
Stockpiles and ore on leach pads | 1,848 | 1,864 | ||
Deferred income tax assets | 537 | 1,331 | ||
Other non-current assets | 565 | 467 | ||
Total assets | 20,563 | 21,031 | $ 25,130 | |
Liabilities | ||||
Debt | 4 | 566 | ||
Accounts payable | 375 | 320 | ||
Employee-related benefits | 309 | 304 | ||
Income and mining taxes | 248 | 153 | ||
Other current liabilities | 459 | 407 | ||
Current liabilities | 1,395 | 1,750 | ||
Debt | 4,061 | 4,049 | ||
Reclamation and remediation liabilities | 2,154 | 2,029 | ||
Deferred income tax liabilities | 595 | 592 | ||
Employee-related benefits | 386 | 411 | ||
Other non-current liabilities | 342 | 326 | ||
Total liabilities | 8,933 | 9,157 | ||
Equity | ||||
Newmont stockholders' equity | 10,609 | 10,721 | ||
Noncontrolling interests | 1,021 | 1,153 | ||
Total equity | 11,630 | 11,874 | $ 14,292 | $ 13,089 |
Total liabilities and equity | 20,563 | 21,031 | ||
Eliminations | ||||
Assets | ||||
Intercompany receivable | (10,138) | (24,667) | ||
Current assets | (10,138) | (24,667) | ||
Property, plant and mine development, net | (27) | (34) | ||
Investments in subsidiaries | (11,775) | (13,759) | ||
Deferred income tax assets | (490) | |||
Non-current intercompany receivable | (2,108) | (3,780) | ||
Total assets | (24,048) | (42,730) | ||
Liabilities | ||||
Intercompany payable | (10,138) | (24,667) | ||
Current liabilities | (10,138) | (24,667) | ||
Deferred income tax liabilities | (490) | |||
Non-current intercompany payable | (2,135) | (3,814) | ||
Total liabilities | (12,273) | (28,971) | ||
Equity | ||||
Newmont stockholders' equity | (11,775) | (13,759) | ||
Total equity | (11,775) | (13,759) | ||
Total liabilities and equity | (24,048) | (42,730) | ||
Newmont Mining Corporation | Reportable Legal Entities | ||||
Assets | ||||
Intercompany receivable | 2,053 | 7,255 | ||
Current assets | 2,053 | 7,255 | ||
Property, plant and mine development, net | 17 | 20 | ||
Investments | 106 | |||
Investments in subsidiaries | 12,086 | 13,222 | ||
Deferred income tax assets | 84 | 477 | ||
Non-current intercompany receivable | 1,700 | 2,219 | ||
Total assets | 16,046 | 23,193 | ||
Liabilities | ||||
Debt | 560 | |||
Intercompany payable | 1,338 | 7,720 | ||
Other current liabilities | 52 | 62 | ||
Current liabilities | 1,390 | 8,342 | ||
Debt | 4,040 | 4,038 | ||
Deferred income tax liabilities | 9 | |||
Non-current intercompany payable | 7 | 83 | ||
Total liabilities | 5,437 | 12,472 | ||
Equity | ||||
Newmont stockholders' equity | 10,609 | 10,721 | ||
Total equity | 10,609 | 10,721 | ||
Total liabilities and equity | 16,046 | 23,193 | ||
Newmont USA | Reportable Legal Entities | ||||
Assets | ||||
Cash and cash equivalents | 1 | |||
Trade receivables | 18 | 21 | ||
Other accounts receivables | 2 | |||
Intercompany receivable | 4,601 | 6,065 | ||
Inventories | 181 | 155 | ||
Stockpiles and ore on leach pads | 196 | 224 | ||
Other current assets | 38 | 83 | ||
Current assets | 5,034 | 6,551 | ||
Property, plant and mine development, net | 3,067 | 3,144 | ||
Investments | 4 | 8 | ||
Investments in subsidiaries | (311) | 537 | ||
Stockpiles and ore on leach pads | 648 | 599 | ||
Deferred income tax assets | (1) | 48 | ||
Non-current intercompany receivable | 401 | 606 | ||
Other non-current assets | 255 | 224 | ||
Total assets | 9,097 | 11,717 | ||
Liabilities | ||||
Debt | 1 | 3 | ||
Accounts payable | 83 | 62 | ||
Intercompany payable | 2,145 | 4,795 | ||
Employee-related benefits | 143 | 148 | ||
Income and mining taxes | 18 | 13 | ||
Other current liabilities | 163 | 109 | ||
Current liabilities | 2,553 | 5,130 | ||
Debt | 4 | 4 | ||
Reclamation and remediation liabilities | 287 | 247 | ||
Deferred income tax liabilities | 121 | 93 | ||
Employee-related benefits | 222 | 269 | ||
Other non-current liabilities | 18 | 21 | ||
Total liabilities | 3,205 | 5,764 | ||
Equity | ||||
Newmont stockholders' equity | 5,892 | 5,953 | ||
Total equity | 5,892 | 5,953 | ||
Total liabilities and equity | 9,097 | 11,717 | ||
Other Subsidiaries | Reportable Legal Entities | ||||
Assets | ||||
Cash and cash equivalents | 3,259 | 2,755 | ||
Trade receivables | 106 | 139 | ||
Other accounts receivables | 113 | 181 | ||
Intercompany receivable | 3,484 | 11,347 | ||
Investments | 62 | 56 | ||
Inventories | 498 | 462 | ||
Stockpiles and ore on leach pads | 480 | 539 | ||
Other current assets | 115 | 59 | ||
Current assets | 8,117 | 15,538 | ||
Property, plant and mine development, net | 9,210 | 9,355 | ||
Investments | 170 | 199 | ||
Stockpiles and ore on leach pads | 1,200 | 1,265 | ||
Deferred income tax assets | 454 | 1,296 | ||
Non-current intercompany receivable | 7 | 955 | ||
Other non-current assets | 310 | 243 | ||
Total assets | 19,468 | 28,851 | ||
Liabilities | ||||
Debt | 3 | 3 | ||
Accounts payable | 292 | 258 | ||
Intercompany payable | 6,655 | 12,152 | ||
Employee-related benefits | 166 | 156 | ||
Income and mining taxes | 230 | 140 | ||
Other current liabilities | 244 | 236 | ||
Current liabilities | 7,590 | 12,945 | ||
Debt | 17 | 7 | ||
Reclamation and remediation liabilities | 1,867 | 1,782 | ||
Deferred income tax liabilities | 474 | 980 | ||
Employee-related benefits | 164 | 142 | ||
Non-current intercompany payable | 2,128 | 3,731 | ||
Other non-current liabilities | 324 | 305 | ||
Total liabilities | 12,564 | 19,892 | ||
Equity | ||||
Newmont stockholders' equity | 5,883 | 7,806 | ||
Noncontrolling interests | 1,021 | 1,153 | ||
Total equity | 6,904 | 8,959 | ||
Total liabilities and equity | $ 19,468 | $ 28,851 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Accrual for future reclamation costs | ||||||
Asset retirement obligation | $ 1,792 | $ 1,792 | $ 1,792 | $ 1,965 | $ 1,300 | |
Environmental remediation obligations | $ 298 | 298 | 298 | 289 | $ 318 | |
Yanacocha | ||||||
Accrual for future reclamation costs | ||||||
Frequency of closure plan updates (in years) | 5 years | |||||
Increase in asset retirement obligation | $ 425 | |||||
Increase to the recorded asset retirement cost asset | 348 | |||||
Non-cash charge to reclamation expense | $ 970 | |||||
Yanacocha | Maximum | ||||||
Accrual for future reclamation costs | ||||||
Modification period | 3 years | |||||
Yanacocha | Reclamation and Remediation Charges | ||||||
Accrual for future reclamation costs | ||||||
Non-cash charge to reclamation expense | 77 | |||||
South America | Yanacocha | ||||||
Accrual for future reclamation costs | ||||||
Frequency of closure plan updates (in years) | 5 years | |||||
Other current liabilities | ||||||
Accrual for future reclamation costs | ||||||
Reclamation obligation, current | $ 28 | $ 28 | $ 28 | $ 59 | ||
Reclamation and remediation liabilities | ||||||
Accrual for future reclamation costs | ||||||
Range of reclamation and remediation liabilities upper limit | 44.00% | |||||
Range of reclamation and remediation liabilities lower limit | 0.00% |
COMMITMENTS AND CONTINGENCIE170
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Loss contingencies | |||||
Environmental remediation obligations | $ 289 | $ 298 | $ 318 | ||
Newmont USA | |||||
Loss contingencies | |||||
Percent ownership held by Newmont | 100.00% | ||||
Newmont USA | Environmental remediation | Ross-Adams Mine Site | |||||
Loss contingencies | |||||
Damages sought | $ 0.3 | ||||
Dawn Mining Company | |||||
Loss contingencies | |||||
Percent ownership held by Newmont | 51.00% | ||||
Dawn Mining Company | Environmental remediation | Midnite Mine | |||||
Loss contingencies | |||||
Department of Interior contribution for past and future cleanup costs | $ 42 | ||||
Environmental remediation obligations | $ 185 |
COMMITMENTS AND CONTINGENCIE171
COMMITMENTS AND CONTINGENCIES - Other Legal Matters - Administrative Matters (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2015judgment | Dec. 31, 2017USD ($)item$ / item | Dec. 31, 2000USD ($) | Nov. 30, 2017 | |
Minera Yanacocha | ||||
Loss contingencies | ||||
Percent ownership held by Newmont | 54.05% | 51.35% | ||
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | ||||
Loss contingencies | ||||
Intangible asset acquired | $ | $ 29 | |||
Number of rulings overturned | judgment | 2 | |||
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | Maximum | ||||
Loss contingencies | ||||
Intangible asset, useful life | 10 years | |||
Potential liability, including fines and interest | $ | $ 75 | |||
South America | Minera Yanacocha | OEFA | Minimum | ||||
Loss contingencies | ||||
Number of units with alleged violations | item | 0 | |||
South America | Minera Yanacocha | OEFA | Maximum | ||||
Loss contingencies | ||||
Number of units with alleged violations | item | 11,310 | |||
South America | Minera Yanacocha | Water Authority | Minimum | ||||
Loss contingencies | ||||
Number of units with alleged violations | item | 0 | |||
South America | Minera Yanacocha | Water Authority | Maximum | ||||
Loss contingencies | ||||
Number of units with alleged violations | item | 10,054 | |||
South America | Minera Yanacocha | Environmental remediation | ||||
Loss contingencies | ||||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.001224 | |||
South America | Minera Yanacocha | Environmental remediation | Minimum | ||||
Loss contingencies | ||||
Potential fine for alleged violations | $ | $ 0 | |||
South America | Minera Yanacocha | Environmental remediation | Maximum | ||||
Loss contingencies | ||||
Potential fine for alleged violations | $ | $ 26 |
COMMITMENTS AND CONTINGENCIE172
COMMITMENTS AND CONTINGENCIES - NWG Investments Inc v. Fronteer Gold Inc. (Details) $ in Millions, CAD in Billions | Feb. 26, 2014CAD | Sep. 24, 2012USD ($) | Apr. 08, 2008 | Sep. 30, 2007 |
North America | Pending Litigation | ||||
Loss contingencies | ||||
Uranium mining moratorium term | 3 years | |||
Jacob Safra | NWG Investments Inc | ||||
Loss contingencies | ||||
Ownership interest held (as a percent) | 100.00% | |||
NWG Investments Inc | NewWest Gold | ||||
Loss contingencies | ||||
Ownership/Economic interest | 86.00% | |||
NWG Investments Inc | NWG Ontario Complaint | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | CAD | CAD 1.2 | |||
NWG Investments Inc | North America | NWG New York Case | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | $ | $ 750 | |||
Fronteer | Aurora | ||||
Loss contingencies | ||||
Ownership interest held (as a percent) | 47.00% |
COMMITMENTS AND CONTINGENCIE173
COMMITMENTS AND CONTINGENCIES - Investigations (Details) | 1 Months Ended |
Mar. 31, 2016 | |
Compliance Review Investigations | |
Investigations | |
Agreement term | 1 year |
COMMITMENTS AND CONTINGENCIE174
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) $ in Millions | Jun. 25, 2009USD ($)$ / oz | Dec. 31, 2017USD ($)location | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2009 |
Corporate and other | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Number of mines subject to minimum royalty obligations | location | 1 | ||||
2,018 | $ 31 | ||||
2,019 | 22 | ||||
Contingent consideration expected to be paid in next 12 months | 31 | ||||
Boddington | |||||
Minimum Royalty Obligations | |||||
Boddington final interest acquired | 33.33% | 33.33% | |||
Acquisition price | $ 982 | ||||
Contingent consideration paid to date | 93 | ||||
Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Boddington contingent consideration liability | $ 62 | 7 | $ 14 | ||
Percentage of average operating margin | 50.00% | ||||
Operating margin per ounce (in dollars per ounce) | $ / oz | 600 | ||||
Contingent consideration payable as a percentage of gold sales | 33.30% | ||||
Contingent consideration cash paid | 15 | $ 6 | $ 0 | ||
Contingent consideration expected to be paid in next 12 months | 3 | ||||
Contingent consideration, high end of range | 7 | ||||
Maximum | Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Boddington contingent consideration liability | $ 100 | $ 100 |
COMMITMENTS AND CONTINGENCIE175
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Corporate and other | ||
Other commitments | ||
Letters of credit surety bonds and bank guarantees, outstanding | $ 2,321 | $ 2,227 |
UNAUDITED SUPPLEMENTARY DATA (D
UNAUDITED SUPPLEMENTARY DATA (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
UNAUDITED SUPPLEMENTARY DATA | |||||||||||
Revenue from sales | $ 1,935 | $ 1,879 | $ 1,875 | $ 1,659 | $ 1,789 | $ 1,791 | $ 1,669 | $ 1,462 | $ 7,348 | $ 6,711 | $ 6,085 |
Gross profit | 487 | 470 | 524 | 403 | 313 | 448 | 465 | 314 | |||
Income (loss) from continuing operations | (534) | 213 | 192 | 69 | (391) | 169 | 14 | (12) | (60) | (220) | (1) |
Income (loss) from discontinued operations | 7 | (7) | (15) | (23) | 47 | (527) | 9 | 64 | (38) | (407) | 221 |
Net income (loss) attributable to Newmont stockholders | $ (527) | $ 206 | $ 177 | $ 46 | $ (344) | $ (358) | $ 23 | $ 52 | $ (98) | $ (627) | $ 220 |
Income (loss) from continuing operations, per common share, basic | $ (0.99) | $ 0.39 | $ 0.36 | $ 0.13 | $ (0.73) | $ 0.32 | $ 0.02 | $ (0.02) | $ (0.11) | $ (0.41) | |
Income (loss) from discontinued operations, per common share, basic | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | $ 0.43 |
Net income (loss) per common share, basic | (0.98) | 0.38 | 0.33 | 0.09 | (0.65) | (0.67) | 0.04 | 0.10 | (0.18) | (1.18) | 0.43 |
Income (loss) from continuing operations, per common share, diluted | (0.99) | 0.39 | 0.36 | 0.13 | (0.73) | 0.32 | 0.02 | (0.02) | (0.11) | (0.41) | |
Income (loss) from discontinued operations, per common share, diluted | 0.01 | (0.01) | (0.03) | (0.04) | 0.08 | (0.99) | 0.02 | 0.12 | (0.07) | (0.77) | 0.43 |
Net income (loss) per common share, diluted | $ (0.98) | $ 0.38 | $ 0.33 | $ 0.09 | $ (0.65) | $ (0.67) | $ 0.04 | $ 0.10 | $ (0.18) | $ (1.18) | $ 0.43 |
Basic weighted-average shares outstanding | 533 | 533 | 533 | 532 | 531 | 531 | 531 | 530 | 533 | 530 | 516 |
Diluted weighted-average shares outstanding | 536 | 536 | 535 | 533 | 534 | 533 | 533 | 531 | 535 | 532 | 516 |
Cash dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.050 | $ 0.050 | $ 0.050 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.250 | $ 0.125 | $ 0.100 |
Closing price of common stock | $ 37.52 | $ 37.51 | $ 32.39 | $ 32.96 | $ 34.07 | $ 39.29 | $ 39.12 | $ 26.58 |
SCHEDULE II_VALUATION AND QUALI
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||
Reduction due to Tax Cuts and Jobs Act | $ (1,180) | ||
Valuation Allowance of Deferred Tax Assets | |||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at beginning of year | 3,844 | $ 2,735 | $ 2,565 |
Additions to deferred income tax expense | 574 | 1,612 | 530 |
Reduction of deferred income tax expense | (443) | (503) | (360) |
Balance at end of year | $ 2,795 | $ 3,844 | $ 2,735 |