Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FREEPORT-MCMORAN INC | ||
Entity Central Index Key | 831,259 | ||
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 | $ 19.1 | ||
Entity Common Stock, Shares Outstanding | 1,252,141,504 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q1 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 331 | $ 224 | |
Trade accounts receivable | 837 | 689 | |
Income and other tax receivables | 1,182 | 1,414 | |
Other accounts receivable | 122 | 174 | |
Inventories: | |||
Materials and supplies, net | [1] | 1,714 | 1,869 |
Mill and leach stockpiles | 1,644 | 1,724 | |
Product | 1,170 | 1,195 | |
Other current assets | 233 | 173 | |
Total current assets | 7,233 | 7,462 | |
Property, plant, equipment and mining development costs, net | 27,376 | 27,509 | |
Oil and gas properties, net - full cost method | |||
Subject to amortization, less accumulated amortization and impairment | 1,700 | 2,262 | |
Not subject to amortization | 1,743 | 4,831 | |
Long-term mill and leach stockpiles | 2,324 | 2,271 | |
Other assets | 2,288 | 2,242 | |
Total assets | 42,664 | 46,577 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 2,987 | 3,363 | |
Current portion of debt | 1,139 | 649 | |
Current portion of environmental and asset retirement obligations | 270 | 272 | |
Accrued income taxes | 30 | 23 | |
Total current liabilities | 4,426 | 4,307 | |
Long-term debt, less current portion | 19,638 | 19,779 | |
Deferred income taxes | 4,442 | 4,288 | |
Environmental and asset retirement obligations, less current portion | 3,762 | 3,739 | |
Other liabilities | 1,659 | 1,656 | |
Total liabilities | 33,927 | 33,769 | |
Redeemable noncontrolling interest | 767 | 764 | |
Stockholders’ equity: | |||
Common stock | 138 | 137 | |
Capital in excess of par value | 24,333 | 24,283 | |
Accumulated deficit | (16,570) | (12,387) | |
Accumulated other comprehensive loss | (503) | (503) | |
Common stock held in treasury | (3,706) | (3,702) | |
Total stockholders’ equity | 3,692 | 7,828 | |
Noncontrolling interests | 4,278 | 4,216 | |
Total equity | 7,970 | 12,044 | |
Total liabilities and equity | $ 42,664 | $ 46,577 | |
[1] | Materials and supplies inventory was net of obsolescence reserves totaling $28 million at March 31, 2016, and $29 million at December 31, 2015. |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | $ 3,527 | $ 4,153 |
Cost of sales: | ||
Production and delivery | 2,725 | 2,912 |
Depreciation, depletion and amortization | 722 | 939 |
Impairment of oil and gas properties | 3,787 | 3,104 |
Total cost of sales | 7,234 | 6,955 |
Selling, general and administrative expenses | 140 | 154 |
Mining exploration and research expenses | 19 | 33 |
Environmental obligations and shutdown costs | 10 | 13 |
Net gain on sale of assets | 0 | (39) |
Total costs and expenses | 7,403 | 7,116 |
Operating loss | (3,876) | (2,963) |
Interest expense, net | (200) | (146) |
Other income, net | 38 | 7 |
Loss before income taxes and equity in affiliated companies' net earnings | (4,038) | (3,102) |
(Provision for) benefit from income taxes | (70) | 695 |
Equity in affiliated companies’ net earnings | 7 | 1 |
Net loss | (4,101) | (2,406) |
Net income attributable to noncontrolling interests | (72) | (58) |
Preferred dividends attributable to redeemable noncontrolling interest | (11) | (10) |
Net loss attributable to common stockholders | $ (4,184) | $ (2,474) |
Basic and diluted net loss per share attributable to common stockholders | $ (3.35) | $ (2.38) |
Basic and diluted weighted-average common shares outstanding | 1,251 | 1,040 |
Dividends declared per share of common stock | $ 0 | $ 0.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Inventory Write-down | $ 35 | $ 4 |
Net loss | (4,101) | (2,406) |
Defined benefit plans: | ||
Amortization of unrecognized amounts included in net periodic benefit costs | 8 | 8 |
Foreign exchange (losses) gains | (9) | 4 |
Other comprehensive (loss) income | (1) | 12 |
Total comprehensive loss | (4,102) | (2,394) |
Total comprehensive income attributable to noncontrolling interests | (71) | (58) |
Preferred dividends attributable to redeemable noncontrolling interest | (11) | (10) |
Total comprehensive loss attributable to common stockholders | $ (4,184) | $ (2,462) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flow from operating activities: | ||
Net loss | $ (4,101) | $ (2,406) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 722 | 939 |
Impairment of oil and gas properties | 3,787 | 3,104 |
Oil and gas inventory write downs | 35 | 4 |
Net gain on sale of assets | 0 | (39) |
Net charges for environmental and asset retirement obligations, including accretion | 57 | 53 |
Payments for environmental and asset retirement obligations | (90) | (42) |
Deferred income taxes | 152 | (709) |
Increase in long-term mill and leach stockpiles | (53) | (82) |
Net gains on crude oil derivative contracts | 0 | (52) |
Other, net | 43 | 33 |
Changes in working capital and other tax payments, excluding amounts from disposition: | ||
Accounts receivable | 93 | 316 |
Inventories | 114 | 165 |
Other current assets | (68) | (42) |
Accounts payable and accrued liabilities | 9 | (402) |
Accrued income taxes and changes in other tax payments | 40 | (123) |
Net cash provided by operating activities | 740 | 717 |
Capital expenditures: | ||
North America copper mines | (34) | (107) |
South America | (157) | (445) |
Indonesia | (225) | (225) |
Africa | (35) | (39) |
Molybdenum mines | (1) | (3) |
United States oil and gas operations | (480) | (1,018) |
Other | (50) | (30) |
Other, net | 2 | 127 |
Net cash used in investing activities | (980) | (1,740) |
Cash flow from financing activities: | ||
Proceeds from debt | 1,796 | 2,273 |
Repayments of debt | (1,442) | (802) |
Net proceeds from sale of common Stock | 32 | 0 |
Cash dividends and distributions paid: | ||
Common stock | (4) | (327) |
Noncontrolling interests | (18) | (23) |
Stock-based awards net payments, including excess tax benefit | (4) | (6) |
Debt financing costs and other, net | (13) | (7) |
Net cash provided by financing activities | 347 | 1,108 |
Net increase in cash and cash equivalents | 107 | 85 |
Cash and cash equivalents at beginning of year | 224 | 464 |
Cash and cash equivalents at end of period | $ 331 | $ 549 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) shares in Millions, $ in Millions | Total | Total FCX Stockholders' Equity [Member] | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Common Stock Held in Treasury [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2015 | $ 12,044 | $ 7,828 | $ 137 | $ 24,283 | $ (12,387) | $ (503) | $ (3,702) | $ 4,216 |
Balance (in shares) at Dec. 31, 2015 | 1,374 | 128 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Sale of common stock | 32 | 32 | $ 1 | 31 | 0 | 0 | $ 0 | 0 |
Sale of common stock (in shares) | 5 | 0 | ||||||
Exercised and issued stock-based awards | 0 | 0 | $ 0 | 0 | 0 | 0 | $ 0 | 0 |
Exercised and issued stock-based awards (in shares) | 2 | 0 | ||||||
Stock-based compensation | 23 | 23 | $ 0 | 23 | 0 | 0 | $ 0 | 0 |
Reserve on tax benefit for stock-based awards | (3) | (3) | 0 | (3) | 0 | 0 | 0 | 0 |
Tender of shares for stock-based awards | (4) | (4) | $ 0 | 0 | 0 | 0 | $ (4) | 0 |
Tender of shares for stock-based awards (in shares) | 0 | 1 | ||||||
Dividends on common stock | 1 | 1 | $ 0 | 0 | 1 | 0 | $ 0 | 0 |
Dividends to noncontrolling interests | (10) | 0 | 0 | 0 | 0 | 0 | 0 | (10) |
Noncontrolling interests' share of contributed capital in subsidiary | 0 | (1) | 0 | (1) | 0 | 0 | 0 | 1 |
Net loss attributable to common stockholders | (4,184) | (4,184) | 0 | 0 | (4,184) | 0 | 0 | 0 |
Net income attributable to noncontrolling interests | 72 | 0 | 0 | 0 | 0 | 0 | 0 | 72 |
Other comprehensive loss | (1) | 0 | 0 | 0 | 0 | 0 | 0 | (1) |
Balance at Mar. 31, 2016 | $ 7,970 | $ 3,692 | $ 138 | $ 24,333 | $ (16,570) | $ (503) | $ (3,706) | $ 4,278 |
Balance (in shares) at Mar. 31, 2016 | 1,381 | 129 |
General Information (Unaudited)
General Information (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
General Information [Abstract] | |
General Information | GENERAL INFORMATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.'s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2015. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. With the exception of the oil and gas properties impairment discussed below and the related tax charges to establish a deferred tax valuation allowance (refer to Note 4 ), all such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three -month period ended March 31, 2016 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . Asset Dispositions. On February 15, 2016 , FCX announced it had entered into a definitive agreement to sell a 13 percent undivided interest in its Morenci unincorporated joint venture to Sumitomo Metal Mining Co., Ltd. (SMM) for $1.0 billion in cash. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in second-quarter 2016. FCX expects to record an approximate $550 million gain on the transaction and use losses to offset cash taxes on the transaction. Proceeds from the transaction will be used to repay borrowings under FCX's unsecured bank term loan (Term Loan) and revolving credit facility. The Morenci unincorporated joint venture is currently owned 85 percent by FCX and 15 percent by Sumitomo Metal Mining Arizona Inc. (Sumitomo). Following completion of the transaction, the unincorporated joint venture will be owned 72 percent by FCX, 15 percent by Sumitomo and 13 percent by an affiliate that is wholly owned by SMM. On April 21, 2016 , FM O&G entered into a definitive purchase and sale agreement to sell certain oil and gas royalty interests to Black Stone Minerals, L.P. for cash consideration of $102 million , subject to certain purchase price adjustments at closing. The transaction is expected to close in second-quarter 2016. On May 2, 2016 , Freeport Minerals Corporation (FMC), a wholly owned subsidiary of FCX, completed the sale of an interest in the Timok exploration project in Serbia to Reservoir Minerals Inc. for consideration of $135 million in cash at closing and contingent consideration of up to $128 million upon the achievement of development milestones and events defined in the transaction agreements. On May 9, 2016 , FCX announced it had entered into a definitive agreement to sell its 70 percent interest in TF Holdings Limited (TFHL) to China Molybdenum Co., Ltd. (CMOC) for $2.65 billion in cash, before closing adjustments, and contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019. Through its interest in TFHL, FCX has an effective 56 percent interest in Tenke Fungurume Mining S.A. (Tenke) located in the Democratic Republic of Congo (DRC). The transaction is expected to close in fourth-quarter 2016, subject to regulatory approvals, CMOC shareholder approval and other customary closing conditions. The transaction is also subject to Lundin Mining Corporation’s (Lundin) right of first offer (ROFO), which will be open for 90 days from Lundin's receipt of the ROFO notice. Lundin holds the remaining 30 percent interest in TFHL. FCX does not expect to record a material gain or loss on the transaction and expects to use the proceeds to repay debt. In addition, FCX has agreed to negotiate exclusively with CMOC (until December 31, 2016) to enter into a definitive agreement to sell its interest in Freeport Cobalt for $100 million and the Kisanfu exploration project in the DRC for $50 million in separate transactions. Freeport Cobalt includes the large-scale cobalt refinery in Kokkola, Finland, and the related sales and marketing business, in which FCX owns an effective 56 percent interest. Kisanfu is a copper and exploration project, located near Tenke, in which FCX holds a 100 percent interest. Oil and Gas Properties. Under the U.S. Securities and Exchange Commission's (SEC) full cost accounting rules, FCX reviews the carrying value of its oil and gas properties in the full cost pool for impairment each quarter on a country-by-country basis. Under these rules, capitalized costs of oil and gas properties (net of accumulated depreciation, depletion, amortization and impairment, and related deferred income taxes) for each cost center may not exceed a “ceiling” equal to: • the present value, discounted at 10 percent , of estimated future net cash flows from the related proved oil and gas reserves, net of estimated future income taxes; plus • the cost of the related unproved properties not being amortized; plus • the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects). These rules require that FCX price its future oil and gas production at the twelve-month average of the first-day-of-the-month historical reference prices as adjusted for location and quality differentials. FCX's reference prices are West Texas Intermediate (WTI) for oil and the Henry Hub spot price for natural gas. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. The estimated future net cash flows also exclude future cash outflows associated with settling asset retirement obligations included in the net book value of the oil and gas properties. The rules require an impairment if the capitalized costs exceed this “ceiling.” In addition, following the first-quarter 2016 evaluation of alternatives for the oil and gas business and the current limitations and cost of capital available for future drilling, FCX Oil & Gas Inc. (FM O&G, a wholly owned subsidiary of FCX) determined that the carrying values of certain of its unevaluated properties were impaired as of March 31, 2016. As a result, FM O&G transferred $3.1 billion of costs associated with unevaluated properties to the full cost pool, mostly reflecting impairment of the carrying values of unevaluated properties. Combined with the impact of the reduction in twelve-month historical prices, net capitalized costs exceeded the related ceiling test limitation under full cost accounting rules, which resulted in the recognition of a first-quarter 2016 impairment charge of $3.8 billion . The twelve-month average price (using WTI as the reference oil price) was $46.26 per barrel at March 31, 2016 , compared with $50.28 per barrel at December 31, 2015. |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE FCX’s basic net loss per share of common stock was computed by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was computed using the most dilutive of (a) the two-class method or (b) the treasury stock method. Under the two-class method, net income is allocated to each class of common stock and participating securities as if all of the earnings for the period had been distributed. FCX’s participating securities consist of vested restricted stock units (RSUs) for which the underlying common shares are not yet issued and entitle holders to non-forfeitable dividends. A reconciliation of net loss and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net loss per share follows (in millions, except per share amounts): Three Months Ended March 31, 2016 2015 Net loss $ (4,101 ) $ (2,406 ) Net income attributable to noncontrolling interests (72 ) (58 ) Preferred dividends on redeemable noncontrolling interest (11 ) (10 ) Undistributed earnings allocable to participating securities (3 ) (3 ) Net loss allocable to common stockholders $ (4,187 ) $ (2,477 ) Basic weighted-average shares of common stock outstanding 1,251 1,040 Add shares issuable upon exercise or vesting of dilutive stock options and RSUs — a — a Diluted weighted-average shares of common stock outstanding 1,251 1,040 Basic and diluted net loss per share attributable to common stockholders $ (3.35 ) $ (2.38 ) a. Excludes approximately 10 million shares of common stock for first-quarter 2016 and 14 million for first-quarter 2015 associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive. Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. Stock options for 47 million shares of common stock were excluded for first-quarter 2016 and 40 million were excluded for first-quarter 2015 . |
Inventories, Including Long-Ter
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories, Including Long Term Mill and Leach Stockpiles [Abstract] | |
Inventories, Including Long-Term Mill and Leach Stockpiles | INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES The components of inventories follow (in millions): March 31, December 31, 2015 Current inventories: Total materials and supplies, net a $ 1,714 $ 1,869 Mill stockpiles $ 139 $ 137 Leach stockpiles 1,505 1,587 Total current mill and leach stockpiles $ 1,644 $ 1,724 Raw materials (primarily concentrate) $ 247 $ 220 Work-in-process 118 108 Finished goods 805 867 Total product inventories $ 1,170 $ 1,195 Long-term inventories: Mill stockpiles $ 521 $ 480 Leach stockpiles 1,803 1,791 Total long-term mill and leach stockpiles b $ 2,324 $ 2,271 a. Materials and supplies inventory was net of obsolescence reserves totaling $28 million at March 31, 2016 , and $29 million at December 31, 2015 . b. Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
Income Taxes (Unaudited)
Income Taxes (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Variations in the relative proportions of jurisdictional income result in fluctuations to FCX's consolidated effective income tax rate. FCX’s consolidated effective income tax rate was (2) percent for first-quarter 2016 and 22 percent for first-quarter 2015 . Geographic sources of FCX's (provision for) benefit from income taxes follow (in millions): Three Months Ended March 31, 2016 2015 U.S. operations $ 11 $ 835 International operations (81 ) (140 ) Total $ (70 ) $ 695 As a result of the impairment to U.S. oil and gas properties, FCX recorded tax charges of $1.4 billion in first-quarter 2016 and $458 million in first-quarter 2015 to establish a valuation allowance primarily against U.S. federal and state deferred tax assets that will not generate a future benefit. Excluding these charges, FCX's consolidated effective income tax rate was 34 percent in first-quarter 2016 and 37 percent in first-quarter 2015 . Applicable accounting standards provide that FCX estimate an annual effective tax rate and apply that rate to each year-to-date interim period. However, because FCX’s estimated effective income tax rate for 2016 is highly variable ( i.e. , minor changes in FCX’s estimated annual (loss) income would have a significant effect on the consolidated annual effective income tax rate), the actual effective income tax rate for the year-to-date reporting period represents a better estimate of the consolidated annual effective income tax rate. Accordingly, for the three months ended March 31, 2016, the actual consolidated effective tax income rate was used to determine FCX’s income tax provision. |
Debt and Equity Transactions (U
Debt and Equity Transactions (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Debt and Equity Transactions [Abstract] | |
Debt and Equity Transactions | DEBT AND EQUITY Debt. The components of debt follow: March 31, December 31, 2015 Term Loan $ 3,011 $ 3,032 Revolving credit facility 480 — Lines of credit 332 442 Cerro Verde credit facility 1,783 1,781 Cerro Verde shareholder loans 261 259 Senior notes and debentures: Issued by FCX 11,911 11,908 Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) 2,532 2,539 Issued by FMC 359 359 Other (including equipment capital leases and other short-term borrowings) 108 108 Total debt a 20,777 20,428 Less current portion of debt (1,139 ) (649 ) Long-term debt $ 19,638 $ 19,779 a. Includes additions for unamortized fair value adjustments totaling $203 million at March 31, 2016, and $210 million at December 31, 2015, and net reductions for unamortized debt issuance costs and unamortized discounts of $130 million at March 31, 2016, and $129 million at December 31, 2015. On February 26, 2016 , FCX amended its revolving credit facility and Term Loan. The amendments include (i) modification of the maximum leverage ratio and the minimum interest expense coverage ratio, and (ii) the addition of a springing collateral and guarantee trigger. In addition, the commitment under the revolving credit facility was reduced from $4.0 billion to $3.5 billion , and the mandatory prepayment provision was modified under the Term Loan. Refer to Note 18 of FCX's annual report on Form 10-K for the year ended December 31, 2015, for further discussion of these amendments. At March 31, 2016 , there were $480 million of borrowings outstanding and $38 million of letters of credit issued under FCX's revolving credit facility, resulting in availability of approximately $3.0 billion , of which approximately $1.5 billion could be used for additional letters of credit. Consolidated interest expense (excluding capitalized interest) totaled $228 million in first-quarter 2016 and $210 million in first-quarter 2015 . Capitalized interest added to property, plant, equipment and mining development costs, net, totaled $20 million in first-quarter 2016 and $45 million in first-quarter 2015 . Capitalized interest added to oil and gas properties not subject to amortization totaled $8 million in first-quarter 2016 and $19 million in first-quarter 2015 . Equity. In 2015 and through January 5, 2016, FCX generated approximately $2 billion in gross proceeds (net proceeds of $1.97 billion after $20 million of commissions and expenses) through the sale of 210 million shares of common stock under its at-the-market equity programs. At April 29, 2016, FCX has approximately $12 million remaining under its at-the-market equity programs. |
Financial Instruments (Unaudite
Financial Instruments (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates. Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As of March 31, 2016 , and December 31, 2015 , FCX had no price protection contracts relating to its mine production or future sales of oil and gas. A discussion of FCX’s derivative contracts and programs follows. Derivatives Designated as Hedging Instruments – Fair Value Hedges Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange, average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses during the three -month periods ended March 31, 2016 and 2015 , resulting from hedge ineffectiveness. At March 31, 2016 , FCX held copper futures and swap contracts that qualified for hedge accounting for 69 million pounds at an average contract price of $2.23 per pound, with maturities through March 2018 . A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item follows (in millions): Three Months Ended March 31, 2016 2015 Copper futures and swap contracts: Unrealized gains (losses): Derivative financial instruments $ 7 $ 6 Hedged item – firm sales commitments (7 ) (6 ) Realized losses: Matured derivative financial instruments (4 ) (10 ) Derivatives Not Designated as Hedging Instruments Embedded Derivatives. As described in Note 1 to FCX's annual report on Form 10-K for the year ended December 31, 2015, under “Revenue Recognition,” certain FCX copper concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract. Similarly, FCX purchases copper under contracts that provide for provisional pricing. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host sales agreements since the contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain an embedded derivative ( i.e. , the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price or the London gold price as defined in the contract. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in cost of sales as production and delivery costs for purchase contracts. A summary of FCX’s embedded commodity derivatives at March 31, 2016 , follows: Open Positions Average Price Per Unit Maturities Through Contract Market Embedded derivatives in provisional sales contracts: Copper (millions of pounds) 776 $ 2.14 $ 2.20 September 2016 Gold (thousands of ounces) 89 1,224 1,236 June 2016 Embedded derivatives in provisional purchase contracts: Copper (millions of pounds) 156 2.17 2.20 July 2016 Crude Oil Contracts. As a result of the acquisition of the oil and gas business, FCX had derivative contracts for 2015 that consisted of crude oil options. These derivatives were not designated as hedging instruments and were recorded at fair value with the mark-to-market gains and losses recorded in revenues. The crude oil options were entered into to protect the realized price of a portion of expected future sales in order to limit the effects of crude oil price decreases. The remaining contacts matured in 2015. Copper Forward Contracts. Atlantic Copper, FCX's wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At March 31, 2016 , Atlantic Copper held net copper forward purchase contracts for 47 million pounds at an average contract price of $2.24 per pound, with maturities through May 2016 . Summary of Gains (Losses). A summary of the realized and unrealized gains (losses) recognized in the loss before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions): Three Months Ended March 31, 2016 2015 Embedded derivatives in provisional copper and gold sales contracts a $ 77 $ (72 ) Copper forward contracts b 7 (1 ) Crude oil options a — 52 a. Amounts recorded in revenues. b. Amounts recorded in cost of sales as production and delivery costs. Unsettled Derivative Financial Instruments A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions): March 31, December 31, 2015 Commodity Derivative Assets: Derivatives designated as hedging instruments: Copper futures and swap contracts a $ 4 $ 1 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper and gold sales/purchase contracts 68 21 Total derivative assets $ 72 $ 22 Commodity Derivative Liabilities: Derivatives designated as hedging instruments: Copper futures and swap contracts a $ 6 $ 11 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper and gold sales/purchase contracts 25 82 Copper forward contracts 2 — Total derivative liabilities $ 33 $ 93 a. FCX paid $5 million to brokers at March 31, 2016 , and $10 million at December 31, 2015 , for margin requirements (recorded in other current assets). FCX's commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX's policy to offset balances by counterparty on its balance sheet. FCX's embedded derivatives on provisional sales/purchases are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheet follows (in millions): Assets Liabilities March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Gross amounts recognized: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts $ 68 $ 21 $ 25 $ 82 Copper derivatives 4 1 8 11 72 22 33 93 Less gross amounts of offset: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 4 6 4 6 Copper derivatives 4 1 4 1 8 7 8 7 Net amounts presented in balance sheet: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 64 15 21 76 Copper derivatives — — 4 10 $ 64 $ 15 $ 25 $ 86 Balance sheet classification: Trade accounts receivable $ 61 $ 10 $ 9 $ 52 Accounts payable and accrued liabilities 3 5 16 34 $ 64 $ 15 $ 25 $ 86 Credit Risk. FCX is exposed to credit loss when financial institutions with which FCX has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of March 31, 2016 , the maximum amount of credit exposure associated with derivative transactions was $57 million . Other Financial Instruments. Other financial instruments include cash and cash equivalents, accounts receivable, restricted cash, investment securities, legally restricted funds, accounts payable and accrued liabilities, and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $39 million at March 31, 2016 , and $34 million at December 31, 2015), accounts receivable, restricted cash, and accounts payable and accrued liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt). |
Fair Value Measurement (Unaudit
Fair Value Measurement (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for first -quarter 2016 . FCX retrospectively adopted the May 2015 Accounting Standards Update (ASU) associated with investments for which fair value is measured using the net asset value (NAV) per share as a practical expedient. As a result, investments valued using NAV per share are shown in the tables below in a column separate from the levels within the fair value hierarchy. A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities (refer to Note 6 ) follows (in millions): At March 31, 2016 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund at NAV $ 23 $ 23 $ 23 $ — $ — $ — Money market funds 22 22 — 22 — — Equity securities 4 4 — 4 — — Total 49 49 23 26 — — Legally restricted funds: a,b,c,d U.S. core fixed income fund at NAV 53 53 53 — — — Government bonds and notes 33 33 — — 33 — Government mortgage-backed securities 32 32 — — 32 — Corporate bonds 29 29 — — 29 — Asset-backed securities 14 14 — — 14 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 7 7 — 7 — — Municipal bonds 1 1 — — 1 — Total 176 176 53 7 116 — Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross asset position 68 68 — — 68 — Copper futures and swap contracts 4 4 — 3 1 — Total 72 72 — 3 69 — Total assets $ 297 $ 76 $ 36 $ 185 $ — Liabilities Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross liability position $ 25 $ 25 $ — $ — $ 25 $ — Copper futures and swap contracts 6 6 — 3 3 — Copper forward contracts 2 2 — 2 — — Total 33 33 — 5 28 — Long-term debt, including current portion f 20,777 16,679 — — 16,679 — Total liabilities $ 16,712 $ — $ 5 $ 16,707 $ — At December 31, 2015 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund at NAV $ 23 $ 23 $ 23 $ — $ — $ — Money market funds 21 21 — 21 — — Equity securities 3 3 — 3 — — Total 47 47 23 24 — — Legally restricted funds: a,b,c,d U.S. core fixed income fund at NAV 52 52 52 — — — Government bonds and notes 37 37 — — 37 — Government mortgage-backed securities 28 28 — — 28 — Corporate bonds 26 26 — — 26 — Asset-backed securities 13 13 — — 13 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 7 7 — 7 — — Municipal bonds 1 1 — — 1 — Total 171 171 52 7 112 — Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross asset position 21 21 — — 21 — Copper futures and swap contracts 1 1 — 1 — — Total 22 22 — 1 21 — Total assets $ 240 $ 75 $ 32 $ 133 $ — Liabilities Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross liability position $ 82 $ 82 $ — $ — $ 82 $ — Copper futures and swap contracts 11 11 — 7 4 — Total 93 93 — 7 86 — Long-term debt, including current portion f 20,428 13,987 — — 13,987 — Total liabilities $ 14,080 $ — $ 7 $ 14,073 $ — a. Recorded at fair value. b. Current portion included in other current assets and long-term portion included in other assets. c. Excludes time deposits (which approximated fair value) included in other assets of $119 million at March 31, 2016 , and $118 million at December 31, 2015 , associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia. d. Excludes time deposits (which approximated fair value) included in other current assets of $29 million at March 31, 2016 , and $28 million at December 31, 2015 . e. Refer to Note 6 for further discussion and balance sheet classifications. f. Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. Valuation Techniques Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy. Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy. FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity (refer to Note 6 for further discussion); however, FCX's contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy. FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices. Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (usually within one business day of notice). The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at March 31, 2016 . |
Contingencies and Commitments (
Contingencies and Commitments (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | CONTINGENCIES AND COMMITMENTS Litigation. During first-quarter 2016, there were no significant updates to previously reported legal proceedings included in Note 12 of FCX's annual report on Form 10-K for the year ended December 31, 2015. Tax and Other Matters. Cerro Verde Royalty Dispute. As reported in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2015, SUNAT, the Peruvian national tax authority, has assessed mining royalties on ore processed by the Cerro Verde concentrator, which commenced operations in late 2006, for the period December 2006 to December 2007 and the years 2008 and 2009. In April 2016, SUNAT issued assessments for the year 2010 and the period January 2011 to September 2011. The aggregate amount of the assessments covering the period December 2006 to September 2011 totals $413 million (based on the exchange rate as of March 31, 2016), including estimated accumulated interest and penalties. Cerro Verde is contesting or will contest these assessments. Additionally, in April 2016, Peru’s Twentieth Contentious Administrative Court, which specializes in taxation matters, rendered its decision upholding the Peruvian Tax Tribunal’s July 2013 decision affirming SUNAT’s assessments for the period December 2006 through December 2007. On May 2, 2016, Cerro Verde appealed this decision to Peru’s Twentieth Contentious Administrative Court. SUNAT may make additional assessments for mining royalties and associated penalties and interest for the period from October 2011 through December 2013, which Cerro Verde will contest. FCX estimates the total exposure associated with these mining royalties for the period from December 2006 through December 2013 approximates $515 million (based on the exchange rate as of March 31, 2016), including estimated accumulated interest and penalties. No amounts have been accrued for these assessments as of March 31, 2016, because Cerro Verde believes its 1998 stability agreement exempts it from these royalties and believes any payments will be recoverable. Other Peruvian Tax Matters. There were no significant changes to other Peruvian tax matters during first-quarter 2016 (refer to Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2015 , for further discussion of these matters). Indonesia Tax Matters. The following information includes a discussion of updates to previously reported Indonesia tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2015. In December 2009, PT-FI was notified by Indonesian tax authorities that it was obligated to pay value-added taxes on certain goods imported after the year 2000. In December 2014, PT-FI paid $269 million for valued-added taxes for the period from November 2005 through the year 2009 and sought a refund. In March 2016, PT-FI collected a cash refund of $196 million and $38 million was offset against other tax liabilities. The remaining balance of the amount originally paid was reduced by currency exchange and other losses. PT-FI received assessments from the local regional tax authority in Papua, Indonesia, for additional taxes and penalties related to surface water taxes for the period from January 2011 through January 2016. PT-FI has filed or will file objections to these assessments. The local government of Papua rejected PT-FI’s objections to the assessments related to the period from January 2011 through December 2015, and PT-FI has filed or will file appeals with the Indonesian tax court. The aggregate amount of all assessments received through April 29, 2016, including penalties, was 2.7 trillion Indonesian rupiah ( $207 million based on the exchange rate as of March 31, 2016). Additional penalties, which could be significant, may be assessed depending on the outcome of the appeals process. No amounts have been accrued for these assessments as of March 31, 2016, because PT-FI believes its Contract of Work (COW) exempts it from these payments and that it has the right to contest these assessments in the tax court and ultimately the Indonesian Supreme Court. Indonesia Mining Contract. There were no significant updates related to PT-FI's COW during first-quarter 2016 (refer to Note 13 of FCX’s annual report on Form 10-K for the year ended December 31, 2015 , for further discussion). |
Business Segments (Unaudited)
Business Segments (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS FCX has organized its mining operations into five primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. For oil and gas operations, FCX determines its operating segments on a country-by-country basis. Separately disclosed in the following table are FCX's reportable segments, which include the Morenci, Cerro Verde, Grasberg and Tenke Fungurume copper mines, the Rod & Refining operations and the U.S. Oil & Gas operations. Intersegment sales between FCX’s mining operations are based on similar arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums. FCX defers recognizing profits on sales from its mines to other divisions, including Atlantic Copper (FCX's wholly owned smelter and refinery in Spain) and on 25 percent of PT-FI's sales to PT Smelting (PT-FI's 25 percent -owned smelter and refinery in Indonesia), until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX's net deferred profits and quarterly earnings. FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in corporate, other & eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or individual segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity. Financial Information by Business Segments (In millions) Mining Operations North America Copper Mines South America Indonesia Africa Atlantic Other Corporate, Molyb- Copper Mining U.S. Other Cerro denum Rod & Smelting & Elimi- Total Oil & Gas & Elimi- FCX Morenci Other Total Verde Other Total Grasberg Tenke Mines Refining & Refining nations Mining Operations nations Total Three Months Ended March 31, 2016 Revenues: Unaffiliated customers $ 162 $ 56 $ 218 $ 486 $ 144 $ 630 $ 498 a $ 286 $ — $ 971 $ 422 $ 207 b $ 3,232 $ 295 $ — $ 3,527 Intersegment 357 561 918 41 — 41 58 31 45 8 1 (1,102 ) — — — — Production and delivery 340 448 788 291 119 410 394 226 52 970 393 (918 ) 2,315 407 c 3 2,725 Depreciation, depletion and amortization 62 82 144 101 31 132 81 60 19 2 8 18 464 255 3 722 Impairment of oil and gas properties — — — — — — — — — — — — — 3,771 16 d 3,787 Selling, general and administrative expenses — 1 1 2 — 2 14 2 — — 4 4 27 49 64 140 Mining exploration and research expenses — 1 1 — — — — — — — — 18 19 — — 19 Environmental obligations and shutdown costs — — — — — — — — — — — 10 10 — — 10 Operating income (loss) 117 85 202 133 (6 ) 127 67 29 (26 ) 7 18 (27 ) 397 (4,187 ) (86 ) (3,876 ) Interest expense, net 1 — 1 22 — 22 — — — — 4 20 47 71 82 200 Provision for (benefit from) income taxes — — — 45 (6 ) 39 36 3 — — — — 78 — (8 ) 70 Total assets at March 31, 2016 3,490 4,751 8,241 9,495 1,623 11,118 9,354 5,088 1,983 236 653 1,292 37,965 4,360 339 42,664 Capital expenditures 28 6 34 156 1 157 225 35 1 1 2 4 459 480 e 43 982 Three Months Ended March 31, 2015 Revenues: Unaffiliated customers $ 106 $ 115 $ 221 $ 248 $ 231 $ 479 $ 621 a $ 382 $ — $ 1,062 $ 540 $ 348 b $ 3,653 $ 500 f $ — $ 4,153 Intersegment 450 664 1,114 14 (7 ) g 7 (14 ) g 28 113 7 6 (1,261 ) — — — — Production and delivery 374 569 943 198 147 345 439 235 83 1,063 519 (1,001 ) 2,626 283 c 3 2,912 Depreciation, depletion and amortization 51 82 133 37 38 75 70 73 26 2 10 16 405 530 4 939 Impairment of oil and gas properties — — — — — — — — — — — — — 3,104 — 3,104 Selling, general and administrative expenses 1 — 1 1 — 1 25 3 — — 5 6 41 54 59 154 Mining exploration and research expenses — 3 3 — — — — — — — — 30 33 — — 33 Environmental obligations and shutdown costs — — — — — — — — — — — 13 13 — — 13 Net gain on sale of assets — (39 ) (39 ) — — — — — — — — — (39 ) — — (39 ) Operating income (loss) 130 164 294 26 39 65 73 99 4 4 12 23 574 (3,471 ) (66 ) (2,963 ) Interest expense, net 1 — 1 1 — 1 — — — — 3 40 45 37 64 146 Provision for (benefit from) income taxes — — — 5 19 24 29 26 — — — — 79 — (774 ) (695 ) Total assets at March 31, 2015 3,802 5,646 9,448 7,991 1,970 9,961 8,882 5,108 2,075 314 809 1,379 37,976 17,887 202 56,065 Capital expenditures 84 23 107 431 14 445 225 39 3 1 4 10 834 1,018 e 15 1,867 a. Includes PT-FI’s sales to PT Smelting totaling $277 million in first-quarter 2016 and $350 million in first-quarter 2015 . b. Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines. c. Includes charges at oil and gas operations totaling (i) $165 million in first-quarter 2016 and $13 million in first-quarter 2015 for idle rig costs and (ii) $35 million in first-quarter 2016 and $4 million in first-quarter 2015 primarily for inventory write downs. d. Reflects impairment charges for international oil and gas properties primarily in Morocco. e. Excludes international oil and gas capital expenditures totaling $43 million in first-quarter 2016 and $15 million in first-quarter 2015 , primarily related to the Morocco oil and gas properties, which are included in corporate, other & eliminations. f. Includes net mark-to-market gains of $52 million associated with crude oil derivative contracts. g. Reflects net reductions for provisional pricing adjustments to prior period open sales. |
Guarantor Financial Statements
Guarantor Financial Statements (Unaudited) (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantor Financial Statements [Abstract] | |
Guarantor Financial Statements [Text Block] | GUARANTOR FINANCIAL STATEMENTS All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100 -percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under the revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC's future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC's subsidiaries. The indentures provide that FM O&G LLC's guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolver, the Term Loan or any other senior debt. The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at March 31, 2016 , and December 31, 2015 , and the related condensed consolidating statements of comprehensive (loss) income and cash flows for the three months ended March 31, 2016 and 2015 (in millions), which should be read in conjunction with FCX's notes to the consolidated financial statements. CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 272 $ 2,600 $ 8,092 $ (3,731 ) $ 7,233 Property, plant, equipment and mining development costs, net 25 59 27,292 — 27,376 Oil and gas properties, net - full cost method: Subject to amortization, less accumulated amortization and impairments — 517 1,183 — 1,700 Not subject to amortization — 415 1,326 2 1,743 Investments in consolidated subsidiaries 20,674 — — (20,674 ) — Other assets 1,135 34 4,533 (1,090 ) 4,612 Total assets $ 22,106 $ 3,625 $ 42,426 $ (25,493 ) $ 42,664 LIABILITIES AND EQUITY Current liabilities $ 2,714 $ 660 $ 4,782 $ (3,730 ) $ 4,426 Long-term debt, less current portion 14,599 6,592 11,818 (13,371 ) 19,638 Deferred income taxes 1,060 a — 3,382 — 4,442 Environmental and asset retirement obligations, less current portion — 310 3,452 — 3,762 Investments in consolidated subsidiaries — 483 7,775 (8,258 ) — Other liabilities 41 3,355 1,751 (3,488 ) 1,659 Total liabilities 18,414 11,400 32,960 (28,847 ) 33,927 Redeemable noncontrolling interest — — 767 — 767 Equity: Stockholders' equity 3,692 (7,775 ) 4,966 2,809 3,692 Noncontrolling interests — — 3,733 545 4,278 Total equity 3,692 (7,775 ) 8,699 3,354 7,970 Total liabilities and equity $ 22,106 $ 3,625 $ 42,426 $ (25,493 ) $ 42,664 a. All U.S. related deferred income taxes are recorded at the parent company. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 181 $ 3,831 $ 10,982 $ (7,532 ) $ 7,462 Property, plant, equipment and mining development costs, net 26 57 27,426 — 27,509 Oil and gas properties, net - full cost method: Subject to amortization, less accumulated amortization and impairments — 710 1,552 — 2,262 Not subject to amortization — 1,393 3,432 6 4,831 Investments in consolidated subsidiaries 24,311 — — (24,311 ) — Other assets 5,038 1,826 4,447 (6,798 ) 4,513 Total assets $ 29,556 $ 7,817 $ 47,839 $ (38,635 ) $ 46,577 LIABILITIES AND EQUITY Current liabilities $ 6,012 $ 666 $ 5,155 $ (7,526 ) $ 4,307 Long-term debt, less current portion 14,735 5,883 11,594 (12,433 ) 19,779 Deferred income taxes 941 a — 3,347 — 4,288 Environmental and asset retirement obligations, less current portion — 305 3,434 — 3,739 Investment in consolidated subsidiary — — 2,397 (2,397 ) — Other liabilities 40 3,360 1,747 (3,491 ) 1,656 Total liabilities 21,728 10,214 27,674 (25,847 ) 33,769 Redeemable noncontrolling interest — — 764 — 764 Equity: Stockholders' equity 7,828 (2,397 ) 15,725 (13,328 ) 7,828 Noncontrolling interests — — 3,676 540 4,216 Total equity 7,828 (2,397 ) 19,401 (12,788 ) 12,044 Total liabilities and equity $ 29,556 $ 7,817 $ 47,839 $ (38,635 ) $ 46,577 a. All U.S. related deferred income taxes are recorded at the parent company. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Three Months Ended March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 78 $ 3,449 $ — $ 3,527 Total costs and expenses 27 1,629 a 5,741 a 6 7,403 Operating loss (27 ) (1,551 ) (2,292 ) (6 ) (3,876 ) Interest expense, net (137 ) (4 ) (114 ) 55 (200 ) Other income (expense), net 50 — 42 (54 ) 38 Loss before income taxes and equity in affiliated companies' net (losses) earnings (114 ) (1,555 ) (2,364 ) (5 ) (4,038 ) (Provision for) benefit from income taxes (1,783 ) 616 1,095 2 (70 ) Equity in affiliated companies' net (losses) earnings (2,286 ) (2,704 ) (3,630 ) 8,627 7 Net (loss) income (4,183 ) (3,643 ) (4,899 ) 8,624 (4,101 ) Net income and preferred dividends attributable to noncontrolling interests — — (77 ) (6 ) (83 ) Net (loss) income attributable to common stockholders $ (4,183 ) $ (3,643 ) $ (4,976 ) $ 8,618 $ (4,184 ) Other comprehensive income (loss) — — — — — Total comprehensive (loss) income $ (4,183 ) $ (3,643 ) $ (4,976 ) $ 8,618 $ (4,184 ) a. Includes charges totaling $1.3 billion at the FM O&G LLC guarantor and $2.5 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. Three Months Ended March 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 181 $ 3,972 $ — $ 4,153 Total costs and expenses 16 1,318 a 5,798 a (16 ) 7,116 Operating (loss) income (16 ) (1,137 ) (1,826 ) 16 (2,963 ) Interest expense, net (115 ) (4 ) (57 ) 30 (146 ) Other income (expense), net 29 — 8 (30 ) 7 (Loss) income before income taxes and equity in affiliated companies' net (losses) earnings (102 ) (1,141 ) (1,875 ) 16 (3,102 ) (Provision for) benefit from income taxes (421 ) 1,157 (35 ) (6 ) 695 Equity in affiliated companies' net (losses) earnings (1,951 ) (2,359 ) (3,530 ) 7,841 1 Net (loss) income (2,474 ) (2,343 ) (5,440 ) 7,851 (2,406 ) Net income and preferred dividends attributable to noncontrolling interests — — (56 ) (12 ) (68 ) Net (loss) income attributable to common stockholders $ (2,474 ) $ (2,343 ) $ (5,496 ) $ 7,839 $ (2,474 ) Other comprehensive income (loss) 12 — 12 (12 ) 12 Total comprehensive (loss) income $ (2,462 ) $ (2,343 ) $ (5,484 ) $ 7,827 $ (2,462 ) a. Includes charges totaling $1.1 billion at the FM O&G LLC guarantor and $2.0 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Cash flow from operating activities: Net (loss) income $ (4,183 ) $ (3,643 ) $ (4,899 ) $ 8,624 $ (4,101 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation, depletion and amortization 1 51 677 (7 ) 722 Impairment of oil and gas properties — 1,291 2,483 13 3,787 Equity in losses (earnings) of consolidated subsidiaries 2,286 2,704 3,630 (8,627 ) (7 ) Other, net 127 7 17 — 151 Changes in working capital and other tax payments 1,652 (442 ) (1,024 ) 2 188 Net cash (used in) provided by operating activities (117 ) (32 ) 884 5 740 Cash flow from investing activities: Capital expenditures — (244 ) (736 ) (2 ) (982 ) Intercompany loans (561 ) (377 ) — 938 — Dividends from (investments in) consolidated subsidiaries 358 (41 ) 35 (352 ) — Other, net — 2 — — 2 Net cash (used in) provided by investing activities (203 ) (660 ) (701 ) 584 (980 ) Cash flow from financing activities: Proceeds from debt 1,060 — 736 — 1,796 Repayments of debt (750 ) — (692 ) — (1,442 ) Intercompany loans — 716 222 (938 ) — Net proceeds from sale of common stock 32 — 42 (42 ) 32 Cash dividends and distributions paid, and contributions received (4 ) — (373 ) 355 (22 ) Other, net (18 ) (24 ) (11 ) 36 (17 ) Net cash provided by (used in) financing activities 320 692 (76 ) (589 ) 347 Net increase in cash and cash equivalents — — 107 — 107 Cash and cash equivalents at beginning of period — — 224 — 224 Cash and cash equivalents at end of period $ — $ — $ 331 $ — $ 331 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Cash flow from operating activities: Net (loss) income $ (2,474 ) $ (2,343 ) $ (5,440 ) $ 7,851 $ (2,406 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation, depletion and amortization 1 119 835 (16 ) 939 Impairment of oil and gas properties — 1,062 2,042 — 3,104 Net gains on crude oil derivative contracts — (52 ) — — (52 ) Equity in losses (earnings) of consolidated subsidiaries 1,951 2,359 3,530 (7,841 ) (1 ) Other, net (701 ) 6 (86 ) — (781 ) Changes in working capital and other tax payments 1,171 (1,321 ) 58 6 (86 ) Net cash (used in) provided by operating activities (52 ) (170 ) 939 — 717 Cash flow from investing activities: Capital expenditures — (302 ) (1,565 ) — (1,867 ) Intercompany loans (905 ) (400 ) — 1,305 — Dividends from (investments in) consolidated subsidiaries 310 (14 ) 32 (328 ) — Other, net — — 127 — 127 Net cash (used in) provided by investing activities (595 ) (716 ) (1,406 ) 977 (1,740 ) Cash flow from financing activities: Proceeds from debt 1,515 — 758 — 2,273 Repayments of debt (530 ) — (272 ) — (802 ) Intercompany loans — 903 402 (1,305 ) — Cash dividends and distributions paid, and contributions received (327 ) — (319 ) 296 (350 ) Other, net (11 ) (18 ) (16 ) 32 (13 ) Net cash provided by (used in) financing activities 647 885 553 (977 ) 1,108 Net (decrease) increase in cash and cash equivalents — (1 ) 86 — 85 Cash and cash equivalents at beginning of period — 1 463 — 464 Cash and cash equivalents at end of period $ — $ — $ 549 $ — $ 549 |
New Accounting Standard (Unaudi
New Accounting Standard (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standard | NEW ACCOUNTING STANDARDS In May 2015, the Financial Accounting Standards Board (FASB) issued an ASU that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share (or its equivalent) as a practical expedient. FCX adopted this ASU effective January 1, 2016, and the prior period disclosures have been restated to remove these investments from the levels within the fair value hierarchy (refer to Note 7). In January 2016, FASB issued an ASU that amends the current guidance on the classification and measurement of financial instruments. This ASU makes limited changes to existing guidance and amends certain disclosure requirements. For public entities, this ASU is effective for interim and annual periods beginning after December 15, 2017. Early adoption is not permitted, except for the provision on recording fair value changes for financial liabilities under the fair value option. FCX is currently evaluating the impact this ASU will have on its financial reporting and disclosures, but at this time does not expect the adoption of this ASU will have a material impact on its financial statements. In February 2016, FASB issued an ASU that will require lessees to recognize most leases on the balance sheet. This ASU allows lessees to make an accounting policy election to not recognize a lease asset and liability for leases with a term of 12 months or less and do not have a purchase option that is expected to be exercised. For public entities, this ASU is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. This ASU must be applied using the modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. FCX is currently evaluating the impact this guidance will have on its financial statements. In March 2016, FASB issued an ASU that simplifies various aspects of the accounting for share-based payment transactions, including the income tax consequences, statutory tax withholding requirements, an accounting policy election for forfeitures and the classification on the statement of cash flows. For public entities, this ASU is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. Each of the amendments in this ASU provides specific transition requirements. FCX is currently evaluating the impact this guidance will have on its financial statements. |
Subsequent Events (Unaudited)
Subsequent Events (Unaudited) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On May 10, 2016 , FCX negotiated a termination and settlement of FM O&G's two drilling rig contracts with Noble Drilling (U.S.) LLC, a subsidiary of Noble Corporation plc. Under the settlement, FCX will provide Noble with $540 million in value over a 30-day period payable at FCX's option in cash, FCX's common stock, or bonds issued by Noble or its affiliates with maturities through December 31, 2019, subject to a limit of $200 million of bonds. FCX also agreed to provide Noble with contingent payments of up to $75 million depending on the price of crude oil over the next 12 -month period. As a result of the settlement, Noble has released FM O&G from $0.8 billion in payment obligations under the two drilling rig contracts. FCX evaluated events after March 31, 2016 , and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements. |
Earnings Per Share (Unaudited)
Earnings Per Share (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of net income and weighted-average shares of common stock outstanding | A reconciliation of net loss and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net loss per share follows (in millions, except per share amounts): Three Months Ended March 31, 2016 2015 Net loss $ (4,101 ) $ (2,406 ) Net income attributable to noncontrolling interests (72 ) (58 ) Preferred dividends on redeemable noncontrolling interest (11 ) (10 ) Undistributed earnings allocable to participating securities (3 ) (3 ) Net loss allocable to common stockholders $ (4,187 ) $ (2,477 ) Basic weighted-average shares of common stock outstanding 1,251 1,040 Add shares issuable upon exercise or vesting of dilutive stock options and RSUs — a — a Diluted weighted-average shares of common stock outstanding 1,251 1,040 Basic and diluted net loss per share attributable to common stockholders $ (3.35 ) $ (2.38 ) a. Excludes approximately 10 million shares of common stock for first-quarter 2016 and 14 million for first-quarter 2015 associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive. |
Inventories, Including Long-T20
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories, Including Long Term Mill and Leach Stockpiles [Abstract] | |
Schedule of Inventory [Table Text Block] | The components of inventories follow (in millions): March 31, December 31, 2015 Current inventories: Total materials and supplies, net a $ 1,714 $ 1,869 Mill stockpiles $ 139 $ 137 Leach stockpiles 1,505 1,587 Total current mill and leach stockpiles $ 1,644 $ 1,724 Raw materials (primarily concentrate) $ 247 $ 220 Work-in-process 118 108 Finished goods 805 867 Total product inventories $ 1,170 $ 1,195 Long-term inventories: Mill stockpiles $ 521 $ 480 Leach stockpiles 1,803 1,791 Total long-term mill and leach stockpiles b $ 2,324 $ 2,271 a. Materials and supplies inventory was net of obsolescence reserves totaling $28 million at March 31, 2016 , and $29 million at December 31, 2015 . b. Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
Income Taxes (Unaudited) (Table
Income Taxes (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Geographic Sources of Provision for Income Taxes | Geographic sources of FCX's (provision for) benefit from income taxes follow (in millions): Three Months Ended March 31, 2016 2015 U.S. operations $ 11 $ 835 International operations (81 ) (140 ) Total $ (70 ) $ 695 |
Debt and Equity Transactions 22
Debt and Equity Transactions (Unaudited) Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | The components of debt follow: March 31, December 31, 2015 Term Loan $ 3,011 $ 3,032 Revolving credit facility 480 — Lines of credit 332 442 Cerro Verde credit facility 1,783 1,781 Cerro Verde shareholder loans 261 259 Senior notes and debentures: Issued by FCX 11,911 11,908 Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) 2,532 2,539 Issued by FMC 359 359 Other (including equipment capital leases and other short-term borrowings) 108 108 Total debt a 20,777 20,428 Less current portion of debt (1,139 ) (649 ) Long-term debt $ 19,638 $ 19,779 a. Includes additions for unamortized fair value adjustments totaling $203 million at March 31, 2016, and $210 million at December 31, 2015, and net reductions for unamortized debt issuance costs and unamortized discounts of $130 million at March 31, 2016, and $129 million at December 31, 2015. |
Financial Instruments (Unaudi23
Financial Instruments (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item | A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item follows (in millions): Three Months Ended March 31, 2016 2015 Copper futures and swap contracts: Unrealized gains (losses): Derivative financial instruments $ 7 $ 6 Hedged item – firm sales commitments (7 ) (6 ) Realized losses: Matured derivative financial instruments (4 ) (10 ) |
Schedule of Derivative Instruments | A summary of FCX’s embedded commodity derivatives at March 31, 2016 , follows: Open Positions Average Price Per Unit Maturities Through Contract Market Embedded derivatives in provisional sales contracts: Copper (millions of pounds) 776 $ 2.14 $ 2.20 September 2016 Gold (thousands of ounces) 89 1,224 1,236 June 2016 Embedded derivatives in provisional purchase contracts: Copper (millions of pounds) 156 2.17 2.20 July 2016 |
Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions | A summary of the realized and unrealized gains (losses) recognized in the loss before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions): Three Months Ended March 31, 2016 2015 Embedded derivatives in provisional copper and gold sales contracts a $ 77 $ (72 ) Copper forward contracts b 7 (1 ) Crude oil options a — 52 a. Amounts recorded in revenues. b. Amounts recorded in cost of sales as production and delivery costs. |
Fair Values of Unsettled Derivative Financial Instruments | A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions): March 31, December 31, 2015 Commodity Derivative Assets: Derivatives designated as hedging instruments: Copper futures and swap contracts a $ 4 $ 1 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper and gold sales/purchase contracts 68 21 Total derivative assets $ 72 $ 22 Commodity Derivative Liabilities: Derivatives designated as hedging instruments: Copper futures and swap contracts a $ 6 $ 11 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper and gold sales/purchase contracts 25 82 Copper forward contracts 2 — Total derivative liabilities $ 33 $ 93 a. FCX paid $5 million to brokers at March 31, 2016 , and $10 million at December 31, 2015 , for margin requirements (recorded in other current assets). A summary of these unsettled commodity contracts that are offset in the balance sheet follows (in millions): Assets Liabilities March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Gross amounts recognized: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts $ 68 $ 21 $ 25 $ 82 Copper derivatives 4 1 8 11 72 22 33 93 Less gross amounts of offset: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 4 6 4 6 Copper derivatives 4 1 4 1 8 7 8 7 Net amounts presented in balance sheet: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 64 15 21 76 Copper derivatives — — 4 10 $ 64 $ 15 $ 25 $ 86 Balance sheet classification: Trade accounts receivable $ 61 $ 10 $ 9 $ 52 Accounts payable and accrued liabilities 3 5 16 34 $ 64 $ 15 $ 25 $ 86 |
Fair Value Measurement (Unaud24
Fair Value Measurement (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Value of Other Financial Instruments | A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities (refer to Note 6 ) follows (in millions): At March 31, 2016 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund at NAV $ 23 $ 23 $ 23 $ — $ — $ — Money market funds 22 22 — 22 — — Equity securities 4 4 — 4 — — Total 49 49 23 26 — — Legally restricted funds: a,b,c,d U.S. core fixed income fund at NAV 53 53 53 — — — Government bonds and notes 33 33 — — 33 — Government mortgage-backed securities 32 32 — — 32 — Corporate bonds 29 29 — — 29 — Asset-backed securities 14 14 — — 14 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 7 7 — 7 — — Municipal bonds 1 1 — — 1 — Total 176 176 53 7 116 — Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross asset position 68 68 — — 68 — Copper futures and swap contracts 4 4 — 3 1 — Total 72 72 — 3 69 — Total assets $ 297 $ 76 $ 36 $ 185 $ — Liabilities Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross liability position $ 25 $ 25 $ — $ — $ 25 $ — Copper futures and swap contracts 6 6 — 3 3 — Copper forward contracts 2 2 — 2 — — Total 33 33 — 5 28 — Long-term debt, including current portion f 20,777 16,679 — — 16,679 — Total liabilities $ 16,712 $ — $ 5 $ 16,707 $ — At December 31, 2015 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund at NAV $ 23 $ 23 $ 23 $ — $ — $ — Money market funds 21 21 — 21 — — Equity securities 3 3 — 3 — — Total 47 47 23 24 — — Legally restricted funds: a,b,c,d U.S. core fixed income fund at NAV 52 52 52 — — — Government bonds and notes 37 37 — — 37 — Government mortgage-backed securities 28 28 — — 28 — Corporate bonds 26 26 — — 26 — Asset-backed securities 13 13 — — 13 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 7 7 — 7 — — Municipal bonds 1 1 — — 1 — Total 171 171 52 7 112 — Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross asset position 21 21 — — 21 — Copper futures and swap contracts 1 1 — 1 — — Total 22 22 — 1 21 — Total assets $ 240 $ 75 $ 32 $ 133 $ — Liabilities Derivatives: a,e Embedded derivatives in provisional sales/ purchase contracts in a gross liability position $ 82 $ 82 $ — $ — $ 82 $ — Copper futures and swap contracts 11 11 — 7 4 — Total 93 93 — 7 86 — Long-term debt, including current portion f 20,428 13,987 — — 13,987 — Total liabilities $ 14,080 $ — $ 7 $ 14,073 $ — a. Recorded at fair value. b. Current portion included in other current assets and long-term portion included in other assets. c. Excludes time deposits (which approximated fair value) included in other assets of $119 million at March 31, 2016 , and $118 million at December 31, 2015 , associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia. d. Excludes time deposits (which approximated fair value) included in other current assets of $29 million at March 31, 2016 , and $28 million at December 31, 2015 . e. Refer to Note 6 for further discussion and balance sheet classifications. f. Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. |
Business Segments (Unaudited) (
Business Segments (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information By Segment | Financial Information by Business Segments (In millions) Mining Operations North America Copper Mines South America Indonesia Africa Atlantic Other Corporate, Molyb- Copper Mining U.S. Other Cerro denum Rod & Smelting & Elimi- Total Oil & Gas & Elimi- FCX Morenci Other Total Verde Other Total Grasberg Tenke Mines Refining & Refining nations Mining Operations nations Total Three Months Ended March 31, 2016 Revenues: Unaffiliated customers $ 162 $ 56 $ 218 $ 486 $ 144 $ 630 $ 498 a $ 286 $ — $ 971 $ 422 $ 207 b $ 3,232 $ 295 $ — $ 3,527 Intersegment 357 561 918 41 — 41 58 31 45 8 1 (1,102 ) — — — — Production and delivery 340 448 788 291 119 410 394 226 52 970 393 (918 ) 2,315 407 c 3 2,725 Depreciation, depletion and amortization 62 82 144 101 31 132 81 60 19 2 8 18 464 255 3 722 Impairment of oil and gas properties — — — — — — — — — — — — — 3,771 16 d 3,787 Selling, general and administrative expenses — 1 1 2 — 2 14 2 — — 4 4 27 49 64 140 Mining exploration and research expenses — 1 1 — — — — — — — — 18 19 — — 19 Environmental obligations and shutdown costs — — — — — — — — — — — 10 10 — — 10 Operating income (loss) 117 85 202 133 (6 ) 127 67 29 (26 ) 7 18 (27 ) 397 (4,187 ) (86 ) (3,876 ) Interest expense, net 1 — 1 22 — 22 — — — — 4 20 47 71 82 200 Provision for (benefit from) income taxes — — — 45 (6 ) 39 36 3 — — — — 78 — (8 ) 70 Total assets at March 31, 2016 3,490 4,751 8,241 9,495 1,623 11,118 9,354 5,088 1,983 236 653 1,292 37,965 4,360 339 42,664 Capital expenditures 28 6 34 156 1 157 225 35 1 1 2 4 459 480 e 43 982 Three Months Ended March 31, 2015 Revenues: Unaffiliated customers $ 106 $ 115 $ 221 $ 248 $ 231 $ 479 $ 621 a $ 382 $ — $ 1,062 $ 540 $ 348 b $ 3,653 $ 500 f $ — $ 4,153 Intersegment 450 664 1,114 14 (7 ) g 7 (14 ) g 28 113 7 6 (1,261 ) — — — — Production and delivery 374 569 943 198 147 345 439 235 83 1,063 519 (1,001 ) 2,626 283 c 3 2,912 Depreciation, depletion and amortization 51 82 133 37 38 75 70 73 26 2 10 16 405 530 4 939 Impairment of oil and gas properties — — — — — — — — — — — — — 3,104 — 3,104 Selling, general and administrative expenses 1 — 1 1 — 1 25 3 — — 5 6 41 54 59 154 Mining exploration and research expenses — 3 3 — — — — — — — — 30 33 — — 33 Environmental obligations and shutdown costs — — — — — — — — — — — 13 13 — — 13 Net gain on sale of assets — (39 ) (39 ) — — — — — — — — — (39 ) — — (39 ) Operating income (loss) 130 164 294 26 39 65 73 99 4 4 12 23 574 (3,471 ) (66 ) (2,963 ) Interest expense, net 1 — 1 1 — 1 — — — — 3 40 45 37 64 146 Provision for (benefit from) income taxes — — — 5 19 24 29 26 — — — — 79 — (774 ) (695 ) Total assets at March 31, 2015 3,802 5,646 9,448 7,991 1,970 9,961 8,882 5,108 2,075 314 809 1,379 37,976 17,887 202 56,065 Capital expenditures 84 23 107 431 14 445 225 39 3 1 4 10 834 1,018 e 15 1,867 a. Includes PT-FI’s sales to PT Smelting totaling $277 million in first-quarter 2016 and $350 million in first-quarter 2015 . b. Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines. c. Includes charges at oil and gas operations totaling (i) $165 million in first-quarter 2016 and $13 million in first-quarter 2015 for idle rig costs and (ii) $35 million in first-quarter 2016 and $4 million in first-quarter 2015 primarily for inventory write downs. d. Reflects impairment charges for international oil and gas properties primarily in Morocco. e. Excludes international oil and gas capital expenditures totaling $43 million in first-quarter 2016 and $15 million in first-quarter 2015 , primarily related to the Morocco oil and gas properties, which are included in corporate, other & eliminations. f. Includes net mark-to-market gains of $52 million associated with crude oil derivative contracts. g. Reflects net reductions for provisional pricing adjustments to prior period open sales. |
Guarantor Financial Statement26
Guarantor Financial Statements (Unaudited) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantor Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets [Table Text Block] | CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 272 $ 2,600 $ 8,092 $ (3,731 ) $ 7,233 Property, plant, equipment and mining development costs, net 25 59 27,292 — 27,376 Oil and gas properties, net - full cost method: Subject to amortization, less accumulated amortization and impairments — 517 1,183 — 1,700 Not subject to amortization — 415 1,326 2 1,743 Investments in consolidated subsidiaries 20,674 — — (20,674 ) — Other assets 1,135 34 4,533 (1,090 ) 4,612 Total assets $ 22,106 $ 3,625 $ 42,426 $ (25,493 ) $ 42,664 LIABILITIES AND EQUITY Current liabilities $ 2,714 $ 660 $ 4,782 $ (3,730 ) $ 4,426 Long-term debt, less current portion 14,599 6,592 11,818 (13,371 ) 19,638 Deferred income taxes 1,060 a — 3,382 — 4,442 Environmental and asset retirement obligations, less current portion — 310 3,452 — 3,762 Investments in consolidated subsidiaries — 483 7,775 (8,258 ) — Other liabilities 41 3,355 1,751 (3,488 ) 1,659 Total liabilities 18,414 11,400 32,960 (28,847 ) 33,927 Redeemable noncontrolling interest — — 767 — 767 Equity: Stockholders' equity 3,692 (7,775 ) 4,966 2,809 3,692 Noncontrolling interests — — 3,733 545 4,278 Total equity 3,692 (7,775 ) 8,699 3,354 7,970 Total liabilities and equity $ 22,106 $ 3,625 $ 42,426 $ (25,493 ) $ 42,664 a. All U.S. related deferred income taxes are recorded at the parent company. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 181 $ 3,831 $ 10,982 $ (7,532 ) $ 7,462 Property, plant, equipment and mining development costs, net 26 57 27,426 — 27,509 Oil and gas properties, net - full cost method: Subject to amortization, less accumulated amortization and impairments — 710 1,552 — 2,262 Not subject to amortization — 1,393 3,432 6 4,831 Investments in consolidated subsidiaries 24,311 — — (24,311 ) — Other assets 5,038 1,826 4,447 (6,798 ) 4,513 Total assets $ 29,556 $ 7,817 $ 47,839 $ (38,635 ) $ 46,577 LIABILITIES AND EQUITY Current liabilities $ 6,012 $ 666 $ 5,155 $ (7,526 ) $ 4,307 Long-term debt, less current portion 14,735 5,883 11,594 (12,433 ) 19,779 Deferred income taxes 941 a — 3,347 — 4,288 Environmental and asset retirement obligations, less current portion — 305 3,434 — 3,739 Investment in consolidated subsidiary — — 2,397 (2,397 ) — Other liabilities 40 3,360 1,747 (3,491 ) 1,656 Total liabilities 21,728 10,214 27,674 (25,847 ) 33,769 Redeemable noncontrolling interest — — 764 — 764 Equity: Stockholders' equity 7,828 (2,397 ) 15,725 (13,328 ) 7,828 Noncontrolling interests — — 3,676 540 4,216 Total equity 7,828 (2,397 ) 19,401 (12,788 ) 12,044 Total liabilities and equity $ 29,556 $ 7,817 $ 47,839 $ (38,635 ) $ 46,577 a. All U.S. related deferred income taxes are recorded at the parent company. |
Condensed Consolidating Statements of Income [Table Text Block] | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Three Months Ended March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 78 $ 3,449 $ — $ 3,527 Total costs and expenses 27 1,629 a 5,741 a 6 7,403 Operating loss (27 ) (1,551 ) (2,292 ) (6 ) (3,876 ) Interest expense, net (137 ) (4 ) (114 ) 55 (200 ) Other income (expense), net 50 — 42 (54 ) 38 Loss before income taxes and equity in affiliated companies' net (losses) earnings (114 ) (1,555 ) (2,364 ) (5 ) (4,038 ) (Provision for) benefit from income taxes (1,783 ) 616 1,095 2 (70 ) Equity in affiliated companies' net (losses) earnings (2,286 ) (2,704 ) (3,630 ) 8,627 7 Net (loss) income (4,183 ) (3,643 ) (4,899 ) 8,624 (4,101 ) Net income and preferred dividends attributable to noncontrolling interests — — (77 ) (6 ) (83 ) Net (loss) income attributable to common stockholders $ (4,183 ) $ (3,643 ) $ (4,976 ) $ 8,618 $ (4,184 ) Other comprehensive income (loss) — — — — — Total comprehensive (loss) income $ (4,183 ) $ (3,643 ) $ (4,976 ) $ 8,618 $ (4,184 ) a. Includes charges totaling $1.3 billion at the FM O&G LLC guarantor and $2.5 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. Three Months Ended March 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 181 $ 3,972 $ — $ 4,153 Total costs and expenses 16 1,318 a 5,798 a (16 ) 7,116 Operating (loss) income (16 ) (1,137 ) (1,826 ) 16 (2,963 ) Interest expense, net (115 ) (4 ) (57 ) 30 (146 ) Other income (expense), net 29 — 8 (30 ) 7 (Loss) income before income taxes and equity in affiliated companies' net (losses) earnings (102 ) (1,141 ) (1,875 ) 16 (3,102 ) (Provision for) benefit from income taxes (421 ) 1,157 (35 ) (6 ) 695 Equity in affiliated companies' net (losses) earnings (1,951 ) (2,359 ) (3,530 ) 7,841 1 Net (loss) income (2,474 ) (2,343 ) (5,440 ) 7,851 (2,406 ) Net income and preferred dividends attributable to noncontrolling interests — — (56 ) (12 ) (68 ) Net (loss) income attributable to common stockholders $ (2,474 ) $ (2,343 ) $ (5,496 ) $ 7,839 $ (2,474 ) Other comprehensive income (loss) 12 — 12 (12 ) 12 Total comprehensive (loss) income $ (2,462 ) $ (2,343 ) $ (5,484 ) $ 7,827 $ (2,462 ) a. Includes charges totaling $1.1 billion at the FM O&G LLC guarantor and $2.0 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. |
Condensed Consolidating Statements of Cash Flows [Table Text Block] | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Cash flow from operating activities: Net (loss) income $ (4,183 ) $ (3,643 ) $ (4,899 ) $ 8,624 $ (4,101 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation, depletion and amortization 1 51 677 (7 ) 722 Impairment of oil and gas properties — 1,291 2,483 13 3,787 Equity in losses (earnings) of consolidated subsidiaries 2,286 2,704 3,630 (8,627 ) (7 ) Other, net 127 7 17 — 151 Changes in working capital and other tax payments 1,652 (442 ) (1,024 ) 2 188 Net cash (used in) provided by operating activities (117 ) (32 ) 884 5 740 Cash flow from investing activities: Capital expenditures — (244 ) (736 ) (2 ) (982 ) Intercompany loans (561 ) (377 ) — 938 — Dividends from (investments in) consolidated subsidiaries 358 (41 ) 35 (352 ) — Other, net — 2 — — 2 Net cash (used in) provided by investing activities (203 ) (660 ) (701 ) 584 (980 ) Cash flow from financing activities: Proceeds from debt 1,060 — 736 — 1,796 Repayments of debt (750 ) — (692 ) — (1,442 ) Intercompany loans — 716 222 (938 ) — Net proceeds from sale of common stock 32 — 42 (42 ) 32 Cash dividends and distributions paid, and contributions received (4 ) — (373 ) 355 (22 ) Other, net (18 ) (24 ) (11 ) 36 (17 ) Net cash provided by (used in) financing activities 320 692 (76 ) (589 ) 347 Net increase in cash and cash equivalents — — 107 — 107 Cash and cash equivalents at beginning of period — — 224 — 224 Cash and cash equivalents at end of period $ — $ — $ 331 $ — $ 331 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Cash flow from operating activities: Net (loss) income $ (2,474 ) $ (2,343 ) $ (5,440 ) $ 7,851 $ (2,406 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation, depletion and amortization 1 119 835 (16 ) 939 Impairment of oil and gas properties — 1,062 2,042 — 3,104 Net gains on crude oil derivative contracts — (52 ) — — (52 ) Equity in losses (earnings) of consolidated subsidiaries 1,951 2,359 3,530 (7,841 ) (1 ) Other, net (701 ) 6 (86 ) — (781 ) Changes in working capital and other tax payments 1,171 (1,321 ) 58 6 (86 ) Net cash (used in) provided by operating activities (52 ) (170 ) 939 — 717 Cash flow from investing activities: Capital expenditures — (302 ) (1,565 ) — (1,867 ) Intercompany loans (905 ) (400 ) — 1,305 — Dividends from (investments in) consolidated subsidiaries 310 (14 ) 32 (328 ) — Other, net — — 127 — 127 Net cash (used in) provided by investing activities (595 ) (716 ) (1,406 ) 977 (1,740 ) Cash flow from financing activities: Proceeds from debt 1,515 — 758 — 2,273 Repayments of debt (530 ) — (272 ) — (802 ) Intercompany loans — 903 402 (1,305 ) — Cash dividends and distributions paid, and contributions received (327 ) — (319 ) 296 (350 ) Other, net (11 ) (18 ) (16 ) 32 (13 ) Net cash provided by (used in) financing activities 647 885 553 (977 ) 1,108 Net (decrease) increase in cash and cash equivalents — (1 ) 86 — 85 Cash and cash equivalents at beginning of period — 1 463 — 464 Cash and cash equivalents at end of period $ — $ — $ 549 $ — $ 549 |
General Information (Unaudite27
General Information (Unaudited) Asset Dispositions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | |
Morenci [Member] | ||||
Percentage Of Undivided Interest Owned By Company | 85.00% | |||
Morenci [Member] | Sumitomo Metal Mining Arizona Inc. [Member] | ||||
Percent Of Undivided Interest Owned By Third Party | 15.00% | |||
Morenci [Member] | Subsequent Event [Member] | ||||
Disposal Date | Feb. 15, 2016 | |||
Proceeds from Sale of Productive Assets | $ 1,000,000,000 | |||
Change in Ownership, Percentage | 13.00% | |||
Gain (Loss) on Sale of Previously Unissued Stock by Subsidiary | $ 550,000,000 | |||
Percentage Of Undivided Interest Owned By Company | 72.00% | |||
Morenci [Member] | Subsequent Event [Member] | Sumitomo Metal Mining Arizona Inc. [Member] | ||||
Percent Of Undivided Interest Owned By Third Party | 15.00% | |||
Morenci [Member] | Subsequent Event [Member] | Sumitomo Metal Mining Co., Ltd. [Member] | ||||
Percent Of Undivided Interest Owned By Third Party | 13.00% | |||
Oil and Gas Royalty Interests [Member] | Subsequent Event [Member] | ||||
Disposal Date | Apr. 21, 2016 | |||
Proceeds from Sale of Productive Assets | $ 102,000,000 | |||
Serbia [Member] | Subsequent Event [Member] | ||||
Disposal Date | May 2, 2016 | |||
Proceeds from Sale of Productive Assets | $ 135,000,000 | |||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 128,000,000 | |||
Tenke Fungurume [Member] | Tenke Segments [Member] | ||||
Percentage Of Undivided Interest Owned By Company | 56.00% | |||
Tenke Fungurume [Member] | Lundin Mining Corporation [Member] | ||||
Percent Of Undivided Interest Owned By Third Party | 30.00% | |||
Tenke Fungurume [Member] | Subsequent Event [Member] | ||||
Disposal Date | May 9, 2016 | |||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 2,650,000,000 | |||
Percentage Of Undivided Interest Owned By Company | 70.00% | |||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 120,000,000 | |||
Tenke Fungurume [Member] | Copper [Member] | Subsequent Event [Member] | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 60,000,000 | |||
Contingent Consideration, Reference Price | 3.50 | |||
Tenke Fungurume [Member] | Cobalt [Member] | Subsequent Event [Member] | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 60,000,000 | |||
Contingent Consideration, Reference Price | 20 | |||
Freeport Cobalt [Member] | ||||
Percentage Of Undivided Interest Owned By Company | 56.00% | |||
Freeport Cobalt [Member] | Subsequent Event [Member] | ||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | 100,000,000 | |||
Kisanfu Exploration Project [Member] | ||||
Percentage Of Undivided Interest Owned By Company | 100.00% | |||
Kisanfu Exploration Project [Member] | Subsequent Event [Member] | ||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 50,000,000 |
General Information (Unaudite28
General Information (Unaudited) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)$ / bbl | Mar. 31, 2015USD ($) | Dec. 31, 2015$ / bbl | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Fair Value Inputs, Discount Rate | 10.00% | ||
Accumulated Costs Related to Unproved Properties Transferred to Full Cost Pool | $ 3,100 | ||
Impairment of oil and gas properties | $ (3,787) | $ (3,104) | |
Crude Oil [Member] | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Average Sales Prices | $ / bbl | 46.26 | 50.28 |
Earnings Per Share (Unaudited29
Earnings Per Share (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share [Abstract] | |||
Net loss | $ (4,101) | $ (2,406) | |
Net income attributable to noncontrolling interests | (72) | (58) | |
Preferred dividends on redeemable noncontrolling interest | (11) | (10) | |
Undistributed earnings allocable to participating securities | (3) | (3) | |
Net loss allocable to common stockholders | $ (4,187) | $ (2,477) | |
Basic weighted-average shares of common stock outstanding | 1,251 | 1,040 | |
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs | [1] | 0 | 0 |
Diluted weighted-average shares of common stock outstanding | 1,251 | 1,040 | |
Basic and diluted net loss per share attributable to common stockholders | $ (3.35) | $ (2.38) | |
Potential anti-dilutive additional shares of common stock (in shares) | 10 | 14 | |
Outstanding stock options with exercise prices greater than average market price of common stock (in shares) | 47 | 40 | |
[1] | Excludes approximately 10 million shares of common stock for first-quarter 2016 and 14 million for first-quarter 2015 associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive. |
Inventories, Including Long-T30
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Components of Inventories [Line Items] | |||
Total materials and supplies, net | [1] | $ 1,714 | $ 1,869 |
Total mill and leach stockpiles | 1,644 | 1,724 | |
Raw materials (primarily concentrate) | 247 | 220 | |
Work-in-process | 118 | 108 | |
Finished goods | 805 | 867 | |
Total product inventories | 1,170 | 1,195 | |
Total long-term mill and leach stockpiles | 2,324 | 2,271 | |
Inventory obsolescence reserves | 28 | 29 | |
Current [Member] | |||
Components of Inventories [Line Items] | |||
Mill stockpiles | 139 | 137 | |
Leach stockpiles | 1,505 | 1,587 | |
Total mill and leach stockpiles | 1,644 | 1,724 | |
Long-Term [Member] | |||
Components of Inventories [Line Items] | |||
Mill stockpiles | 521 | 480 | |
Leach stockpiles | 1,803 | 1,791 | |
Total long-term mill and leach stockpiles | [2] | $ 2,324 | $ 2,271 |
[1] | Materials and supplies inventory was net of obsolescence reserves totaling $28 million at March 31, 2016, and $29 million at December 31, 2015. | ||
[2] | Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
Income Taxes (Unaudited) (Detai
Income Taxes (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Consolidated effective income tax rate (percent) | (2.00%) | 22.00% |
U.S. operations | $ 11 | $ 835 |
International operations | (81) | (140) |
Total | (70) | 695 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,400 | $ 458 |
Effective Income Tax Rate, Adjusted, Percent | 34.00% | 37.00% |
Debt and Equity Transactions 32
Debt and Equity Transactions (Unaudited) (Details) - USD ($) $ in Thousands, shares in Millions | Apr. 29, 2016 | Jan. 05, 2016 | Feb. 26, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | [1] | $ 20,777,000 | $ 20,428,000 | |||
Debt, Current | (1,139,000) | (649,000) | ||||
Long-term debt, less current portion | 19,638,000 | 19,779,000 | ||||
Liabilities, Fair Value Adjustment | 203,000 | 210,000 | ||||
Unamortized Debt Issuance Expense | 130,000 | 129,000 | ||||
Stock Issued During Period, Shares, New Issues | 210 | |||||
Proceeds from Issuance of Common Stock, Gross | $ 1,970,000 | |||||
Fees and Commissions | $ 20,000 | |||||
Bank Term Loan [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 3,011,000 | 3,032,000 | ||||
Credit Facility [Domain] | Revolving Credit Facility [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 480,000 | 0 | ||||
Debt Instrument, Amendment Date | Feb. 26, 2016 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | 4,000,000 | ||||
Letters of Credit Issued, Amount | 38,000 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 3,000,000 | |||||
Line Of Credit Facility Remaining Borrowing Capacity Available For Letters Of Credit | 1,500,000 | |||||
Line of Credit [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 332,000 | 442,000 | ||||
Senior Notes [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 11,911,000 | 11,908,000 | ||||
Notes Payable, Other Payables [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 108,000 | 108,000 | ||||
Cerro Verde [Member] | Credit Facility [Domain] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 1,783,000 | 1,781,000 | ||||
Cerro Verde [Member] | Shareholder Loan [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 261,000 | 259,000 | ||||
Freeport-McMoRan Oil & Gas [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term debt, less current portion | 6,592,000 | 5,883,000 | ||||
Freeport-McMoRan Oil & Gas [Member] | Senior Notes [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | 2,532,000 | 2,539,000 | ||||
Freeport McMoRan Corporation [Member] | Subordinated Debt [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Long-term Debt, Gross | $ 359,000 | 359,000 | ||||
Subsequent Event [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Common Stock, Value of Shares Authorized for Issue in Transaction | $ 12,000 | |||||
Common Stock [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 5 | |||||
Proceeds from Issuance of Common Stock, Gross | $ 2,000,000 | |||||
[1] | a.Includes additions for unamortized fair value adjustments totaling $203 million at March 31, 2016, and $210 million at December 31, 2015, and net reductions for unamortized debt issuance costs and unamortized discounts of $130 million at March 31, 2016, and $129 million at December 31, 2015. |
Debt and Equity Transactions 33
Debt and Equity Transactions (Unaudited) Interest, Dividends and Maturities (Details) - USD ($) $ in Thousands, shares in Millions | Apr. 29, 2016 | Jan. 05, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Capitalized Interest [Line Items] | ||||
Interest costs incurred | $ 228,000 | $ 210,000 | ||
Stock Issued During Period, Shares, New Issues | 210 | |||
Proceeds from Issuance of Common Stock, Gross | $ 1,970,000 | |||
Fees and Commissions | $ 20,000 | |||
Property, Plant, Equipment and Mining Development Costs, Net [Member] | ||||
Capitalized Interest [Line Items] | ||||
Interest costs capitalized | 20,000 | 45,000 | ||
Oil and Gas Properties Not Subject to Amortization [Member] | ||||
Capitalized Interest [Line Items] | ||||
Interest costs capitalized | $ 8,000 | $ 19,000 | ||
Subsequent Event [Member] | ||||
Capitalized Interest [Line Items] | ||||
Common Stock, Value of Shares Authorized for Issue in Transaction | $ 12,000 |
Financial Instruments (Unaudi34
Financial Instruments (Unaudited) (Details) - Commodity Contract [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Fair Value Hedging [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative financial instruments | $ 7 | $ 6 | |
Hedged item – firm sales commitments | (7) | (6) | |
Matured derivative financial instruments | (4) | (10) | |
Derivatives not designated as hedging instruments [Member] | Embedded derivatives in provisional sales contracts [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and unrealized gains (losses) | [1] | 77 | (72) |
Derivatives not designated as hedging instruments [Member] | Copper forward contracts [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and unrealized gains (losses) | [2] | 7 | (1) |
Derivatives not designated as hedging instruments [Member] | Plains Exploration & Production Company [Member] | Crude Oil Options [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized and unrealized gains (losses) | [1] | $ 0 | $ 52 |
[1] | Amounts recorded in revenues. | ||
[2] | Amounts recorded in cost of sales as production and delivery costs. |
Financial Instruments (Unaudi35
Financial Instruments (Unaudited) Open Positions (Details) oz in Thousands, lb in Millions | 3 Months Ended |
Mar. 31, 2016lboz$ / lb$ / oz | |
Embedded derivatives in provisional sales contracts - Copper [Member] | Derivatives not designated as hedging instruments [Member] | |
Derivative [Line Items] | |
Open positions (in lbs except gold in oz) | lb | 776 |
Average contract price | 2.14 |
Average market price | 2.20 |
Maturities through | Sep. 30, 2016 |
Embedded derivatives in provisional sales contracts - Gold [Member] | Derivatives not designated as hedging instruments [Member] | |
Derivative [Line Items] | |
Open positions (in lbs except gold in oz) | oz | 89 |
Average contract price | $ / oz | 1,224 |
Average market price | $ / oz | 1,236 |
Maturities through | Jun. 30, 2016 |
Embedded derivatives in provisional purchase contracts - Copper [Member] | Derivatives not designated as hedging instruments [Member] | |
Derivative [Line Items] | |
Open positions (in lbs except gold in oz) | lb | 156 |
Average contract price | 2.17 |
Average market price | 2.20 |
Maturities through | Jul. 31, 2016 |
Fair Value Hedging [Member] | FMC's Copper Futures and Swap Contracts [Member] | Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Open positions (in lbs except gold in oz) | lb | 69 |
Average contract price | 2.23 |
Maturities through | Mar. 31, 2018 |
Atlantic Copper [Member] | Forward Contracts [Member] | Derivatives not designated as hedging instruments [Member] | |
Derivative [Line Items] | |
Open positions (in lbs except gold in oz) | lb | 47 |
Average contract price | 2.24 |
Maturities through | May 31, 2016 |
Financial Instruments (Unaudi36
Financial Instruments (Unaudited) Unsettled Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | $ 64 | $ 15 | |
Derivative Liability | 25 | 86 | |
Paid to brokers associated with margin requirements | 5 | 10 | |
Trade Accounts Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 61 | 10 | |
Derivative Liability | 9 | 52 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 3 | 5 | |
Derivative Liability | 16 | 34 | |
Commodity Contract [Member] | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Asset position | 72 | 22 | |
Liability position | 33 | 93 | |
Derivative Asset, Fair Value, Gross Liability | 8 | 7 | |
Derivative Liability, Fair Value, Gross Asset | 8 | 7 | |
Derivative Asset | 64 | 15 | |
Derivative Liability | 25 | 86 | |
Commodity Contract [Member] | Copper Derivatives [Member] | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Asset position | 4 | 1 | |
Liability position | 8 | 11 | |
Derivative Asset, Fair Value, Gross Liability | 4 | 1 | |
Derivative Liability, Fair Value, Gross Asset | 4 | 1 | |
Derivative Asset | 0 | 0 | |
Derivative Liability | 4 | 10 | |
Commodity Contract [Member] | Copper futures and swap contracts [Member] | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Asset position | [1] | 4 | 1 |
Liability position | [1] | 6 | 11 |
Commodity Contract [Member] | Copper forward contracts [Member] | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Liability position | 2 | 0 | |
Commodity Contract [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Asset position | 68 | 21 | |
Liability position | 25 | 82 | |
Derivative Asset, Fair Value, Gross Liability | 4 | 6 | |
Derivative Liability, Fair Value, Gross Asset | 4 | 6 | |
Derivative Asset | 64 | 15 | |
Derivative Liability | $ 21 | $ 76 | |
[1] | FCX paid $5 million to brokers at March 31, 2016, and $10 million at December 31, 2015, for margin requirements (recorded in other current assets). |
Financial Instruments (Unaudi37
Financial Instruments (Unaudited) Other Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Credit Derivative, Maximum Exposure, Undiscounted | $ 57 | |||
Cash and cash equivalents | 331 | $ 224 | $ 549 | $ 464 |
Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 39 | $ 34 |
Fair Value Measurement (Unaud38
Fair Value Measurement (Unaudited) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives: | |||
Derivative assets | $ 64 | $ 15 | |
Derivatives: | |||
Derivative Liability | 25 | 86 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 26 | 24 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Derivatives: | |||
Derivative assets | [2],[5] | 3 | 1 |
Total assets | 36 | 32 | |
Derivatives: | |||
Derivative Liability | [2],[5] | 5 | 7 |
Long-term debt, including current portion | [6] | 0 | 0 |
Total liabilities | 5 | 7 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 116 | 112 |
Derivatives: | |||
Derivative assets | [2],[5] | 69 | 21 |
Total assets | 185 | 133 | |
Derivatives: | |||
Derivative Liability | [2],[5] | 28 | 86 |
Long-term debt, including current portion | [6] | 16,679 | 13,987 |
Total liabilities | 16,707 | 14,073 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Total assets | 0 | 0 | |
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Long-term debt, including current portion | [6] | 0 | 0 |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 25 | 82 |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 3 | 7 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 3 | 4 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 2 | |
Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | |
Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 22 | 21 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 4 | 3 |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 33 | 37 |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 32 | 28 |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 29 | 26 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 14 | 13 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 1 | 1 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 68 | 21 |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 3 | 1 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 1 | 0 |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 49 | 47 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 176 | 171 |
Derivatives: | |||
Derivative assets | [2],[5] | 72 | 22 |
Derivatives: | |||
Derivative Liability | [2],[5] | 33 | 93 |
Long-term debt, including current portion | [6] | 20,777 | 20,428 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 25 | 82 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 6 | 11 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 2 | |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 23 | 23 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 53 | 52 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 22 | 21 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 4 | 3 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 33 | 37 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 32 | 28 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 29 | 26 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 14 | 13 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 1 | 1 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 68 | 21 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 4 | 1 |
Reported Value Measurement [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Time Deposits [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | 29 | 28 | |
Reported Value Measurement [Member] | Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Time Deposits [Member] | |||
Derivatives: | |||
Escrow Deposit Disbursements Related to Property Acquisition | 119 | 118 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 49 | 47 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 176 | 171 |
Derivatives: | |||
Derivative assets | [2],[5] | 72 | 22 |
Total assets | 297 | 240 | |
Derivatives: | |||
Derivative Liability | [2],[5] | 33 | 93 |
Long-term debt, including current portion | [6] | 16,679 | 13,987 |
Total liabilities | 16,712 | 14,080 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 25 | 82 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 6 | 11 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 2 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 23 | 23 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 53 | 52 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 22 | 21 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 4 | 3 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 33 | 37 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 32 | 28 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 29 | 26 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 14 | 13 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 7 | 7 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 1 | 1 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 68 | 21 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 4 | 1 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 23 | 23 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 53 | 52 |
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Total assets | 76 | 75 | |
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Long-term debt, including current portion | [6] | 0 | 0 |
Total liabilities | 0 | 0 | |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Copper forward contracts [Member] | |||
Derivatives: | |||
Derivative Liability | [2],[5] | 0 | |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 23 | 23 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 53 | 52 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Investment securities (current and long-term): | |||
Investment securities | [1],[2] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized mortgage-backed securities [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | |||
Legally restricted funds (long-term): | |||
Legally restricted funds | [1],[2],[3],[4] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | 0 | 0 |
Net Asset Value [Member] | Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | |||
Derivatives: | |||
Derivative assets | [2],[5] | $ 0 | $ 0 |
[1] | Current portion included in other current assets and long-term portion included in other assets. | ||
[2] | Recorded at fair value. | ||
[3] | Excludes time deposits (which approximated fair value) included in other assets of $119 million at March 31, 2016, and $118 million at December 31, 2015, associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia. | ||
[4] | Excludes time deposits (which approximated fair value) included in other current assets of $29 million at March 31, 2016, and$28 million at December 31, 2015 | ||
[5] | Refer to Note 6 for further discussion and balance sheet classifications. | ||
[6] | Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. |
Contingencies and Commitments39
Contingencies and Commitments (Unaudited) (Details) IDR in Trillions | Apr. 29, 2016USD ($) | Apr. 29, 2016IDR | Mar. 31, 2016USD ($) | Dec. 31, 2014USD ($) |
PT Freeport Indonesia [Member] | ||||
Loss Contingencies [Line Items] | ||||
Value Added Tax Receivable | $ 269,000,000 | |||
Income Tax Examination, Penalties Accrued | $ 0 | |||
Subsequent Event [Member] | PT Freeport Indonesia [Member] | ||||
Loss Contingencies [Line Items] | ||||
Assessment By Foreign Government Of Alleged Obligations | $ 207,000,000 | |||
Assessment By Foreign Government of Alleged Obligations, Expressed in Foreign Currency | IDR | IDR 2.7 | |||
Royalty Tax [Member] | Cerro Verde [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Estimate of Possible Loss | 515,000,000 | |||
RelatingtotheperiodDecember2006throughSeptember2011 [Member] | Royalty Tax [Member] | Cerro Verde [Member] | ||||
Loss Contingencies [Line Items] | ||||
Assessment By Foreign Government Of Alleged Obligations | 413,000,000 | |||
Cash and Cash Equivalents [Member] | PT Freeport Indonesia [Member] | ||||
Loss Contingencies [Line Items] | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 196,000,000 | |||
Other Liabilities [Member] | PT Freeport Indonesia [Member] | ||||
Loss Contingencies [Line Items] | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 38,000,000 |
Business Segments (Unaudited)40
Business Segments (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||||
Revenues: | ||||||
Unaffiliated customers | $ 3,527 | $ 4,153 | ||||
Intersegment | 0 | 0 | ||||
Production and delivery | 2,725 | 2,912 | ||||
Depreciation, depletion and amortization | 722 | 939 | ||||
Impairment of oil and gas properties | 3,787 | 3,104 | ||||
Selling, general and administrative expenses | 140 | 154 | ||||
Mining exploration and research expenses | 19 | 33 | ||||
Environmental obligations and shutdown costs | 10 | 13 | ||||
Net gain on sale of assets | 0 | (39) | ||||
Operating income (loss) | (3,876) | (2,963) | ||||
Interest expense, net | 200 | 146 | ||||
Provision for (benefit from) income taxes | 70 | (695) | ||||
Total Assets | 42,664 | 56,065 | $ 46,577 | |||
Capital expenditures | 982 | 1,867 | ||||
Oil and gas inventory write downs | (35) | (4) | ||||
Mining Operations [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 3,232 | 3,653 | ||||
Intersegment | 0 | 0 | ||||
Production and delivery | 2,315 | 2,626 | ||||
Depreciation, depletion and amortization | 464 | 405 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 27 | 41 | ||||
Mining exploration and research expenses | 19 | 33 | ||||
Environmental obligations and shutdown costs | 10 | 13 | ||||
Net gain on sale of assets | (39) | |||||
Operating income (loss) | 397 | 574 | ||||
Interest expense, net | 47 | 45 | ||||
Provision for (benefit from) income taxes | 78 | 79 | ||||
Total Assets | 37,965 | 37,976 | ||||
Capital expenditures | 459 | 834 | ||||
North America Copper Mines [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 218 | 221 | ||||
Intersegment | 918 | 1,114 | ||||
Production and delivery | 788 | 943 | ||||
Depreciation, depletion and amortization | 144 | 133 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 1 | 1 | ||||
Mining exploration and research expenses | 1 | 3 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | (39) | |||||
Operating income (loss) | 202 | 294 | ||||
Interest expense, net | 1 | 1 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 8,241 | 9,448 | ||||
Capital expenditures | 34 | 107 | ||||
Morenci [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 162 | 106 | ||||
Intersegment | 357 | 450 | ||||
Production and delivery | 340 | 374 | ||||
Depreciation, depletion and amortization | 62 | 51 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 1 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 117 | 130 | ||||
Interest expense, net | 1 | 1 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 3,490 | 3,802 | ||||
Capital expenditures | 28 | 84 | ||||
Other North America Copper Mines [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 56 | 115 | ||||
Intersegment | 561 | 664 | ||||
Production and delivery | 448 | 569 | ||||
Depreciation, depletion and amortization | 82 | 82 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 1 | 0 | ||||
Mining exploration and research expenses | 1 | 3 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | (39) | |||||
Operating income (loss) | 85 | 164 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 4,751 | 5,646 | ||||
Capital expenditures | 6 | 23 | ||||
South America Mines [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 630 | 479 | ||||
Intersegment | 41 | 7 | ||||
Production and delivery | 410 | 345 | ||||
Depreciation, depletion and amortization | 132 | 75 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 2 | 1 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 127 | 65 | ||||
Interest expense, net | 22 | 1 | ||||
Provision for (benefit from) income taxes | 39 | 24 | ||||
Total Assets | 11,118 | 9,961 | ||||
Capital expenditures | 157 | 445 | ||||
Cerro Verde [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 486 | 248 | ||||
Intersegment | 41 | 14 | ||||
Production and delivery | 291 | 198 | ||||
Depreciation, depletion and amortization | 101 | 37 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 2 | 1 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 133 | 26 | ||||
Interest expense, net | 22 | 1 | ||||
Provision for (benefit from) income taxes | 45 | 5 | ||||
Total Assets | 9,495 | 7,991 | ||||
Capital expenditures | 156 | 431 | ||||
Other South America Mines [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 144 | 231 | ||||
Intersegment | 0 | (7) | [1] | |||
Production and delivery | 119 | 147 | ||||
Depreciation, depletion and amortization | 31 | 38 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | (6) | 39 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | (6) | 19 | ||||
Total Assets | 1,623 | 1,970 | ||||
Capital expenditures | 1 | 14 | ||||
Indonesia - Grasberg [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | [2] | 498 | 621 | |||
Intersegment | 58 | (14) | [1] | |||
Production and delivery | 394 | 439 | ||||
Depreciation, depletion and amortization | 81 | 70 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 14 | 25 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 67 | 73 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | 36 | 29 | ||||
Total Assets | 9,354 | 8,882 | ||||
Capital expenditures | 225 | 225 | ||||
Africa - Tenke [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 286 | 382 | ||||
Intersegment | 31 | 28 | ||||
Production and delivery | 226 | 235 | ||||
Depreciation, depletion and amortization | 60 | 73 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 2 | 3 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 29 | 99 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | 3 | 26 | ||||
Total Assets | 5,088 | 5,108 | ||||
Capital expenditures | 35 | 39 | ||||
Molybdenum mines [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 0 | 0 | ||||
Intersegment | 45 | 113 | ||||
Production and delivery | 52 | 83 | ||||
Depreciation, depletion and amortization | 19 | 26 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | (26) | 4 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 1,983 | 2,075 | ||||
Capital expenditures | 1 | 3 | ||||
Rod & Refining [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 971 | 1,062 | ||||
Intersegment | 8 | 7 | ||||
Production and delivery | 970 | 1,063 | ||||
Depreciation, depletion and amortization | 2 | 2 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 7 | 4 | ||||
Interest expense, net | 0 | 0 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 236 | 314 | ||||
Capital expenditures | 1 | 1 | ||||
Atlantic Copper Smelting & Refining [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 422 | 540 | ||||
Intersegment | 1 | 6 | ||||
Production and delivery | 393 | 519 | ||||
Depreciation, depletion and amortization | 8 | 10 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 4 | 5 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | 18 | 12 | ||||
Interest expense, net | 4 | 3 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 653 | 809 | ||||
Capital expenditures | 2 | 4 | ||||
Other Mining & Eliminations [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | [3] | 207 | 348 | |||
Intersegment | (1,102) | (1,261) | ||||
Production and delivery | (918) | (1,001) | ||||
Depreciation, depletion and amortization | 18 | 16 | ||||
Impairment of oil and gas properties | 0 | 0 | ||||
Selling, general and administrative expenses | 4 | 6 | ||||
Mining exploration and research expenses | 18 | 30 | ||||
Environmental obligations and shutdown costs | 10 | 13 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | (27) | 23 | ||||
Interest expense, net | 20 | 40 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 1,292 | 1,379 | ||||
Capital expenditures | 4 | 10 | ||||
U.S. Oil & Gas Operations [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 295 | 500 | [4] | |||
Intersegment | 0 | 0 | ||||
Production and delivery | [5] | 407 | 283 | |||
Depreciation, depletion and amortization | 255 | 530 | ||||
Impairment of oil and gas properties | 3,771 | 3,104 | ||||
Selling, general and administrative expenses | 49 | 54 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | (4,187) | (3,471) | ||||
Interest expense, net | 71 | 37 | ||||
Provision for (benefit from) income taxes | 0 | 0 | ||||
Total Assets | 4,360 | 17,887 | ||||
Capital expenditures | [6] | 480 | 1,018 | |||
Idle Rig Costs | (165) | (13) | ||||
Oil and gas inventory write downs | (35) | (4) | ||||
Corporate, Other & Eliminations [Member] | ||||||
Revenues: | ||||||
Unaffiliated customers | 0 | 0 | ||||
Intersegment | 0 | 0 | ||||
Production and delivery | 3 | 3 | ||||
Depreciation, depletion and amortization | 3 | 4 | ||||
Impairment of oil and gas properties | 16 | [7] | 0 | |||
Selling, general and administrative expenses | 64 | 59 | ||||
Mining exploration and research expenses | 0 | 0 | ||||
Environmental obligations and shutdown costs | 0 | 0 | ||||
Net gain on sale of assets | 0 | |||||
Operating income (loss) | (86) | (66) | ||||
Interest expense, net | 82 | 64 | ||||
Provision for (benefit from) income taxes | (8) | (774) | ||||
Total Assets | 339 | 202 | ||||
Capital expenditures | $ 43 | 15 | ||||
Crude oil and natural gas swaps [Member] | ||||||
Revenues: | ||||||
Net mark-to-market gains on derivative contracts | 52 | |||||
Pt Smelting [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Deferred Intercompany Profit, Percentage | 25.00% | |||||
Equity Method Investment, Ownership Percentage | 25.00% | |||||
Revenues: | ||||||
Revenues | $ 277 | 350 | ||||
Morocco | Corporate, Other & Eliminations [Member] | ||||||
Revenues: | ||||||
Capital expenditures | [6] | $ 43 | $ 15 | |||
[1] | Reflects net reductions for provisional pricing adjustments to prior period open sales. | |||||
[2] | Includes PT-FI’s sales to PT Smelting totaling $277 million in first-quarter 2016 and $350 million in first-quarter 2015. | |||||
[3] | Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines. | |||||
[4] | Includes net mark-to-market gains of $52 million associated with crude oil derivative contracts. | |||||
[5] | Includes charges at oil and gas operations totaling (i) $165 million in first-quarter 2016 and $13 million in first-quarter 2015 for idle rig costs and (ii) $35 million in first-quarter 2016 and $4 million in first-quarter 2015 primarily for inventory write downs. | |||||
[6] | Excludes international oil and gas capital expenditures totaling $43 million in first-quarter 2016 and $15 million in first-quarter 2015, primarily related to the Morocco oil and gas properties, which are included in corporate, other & eliminations. | |||||
[7] | Reflects impairment charges for international oil and gas properties primarily in Morocco |
Guarantor Financial Statement41
Guarantor Financial Statements (Unaudited) (Details) | Mar. 31, 2016 |
FM O&G LLC Guarantor [Member] | |
Debt Instrument [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Guarantor Financial Statement42
Guarantor Financial Statements (Unaudited) Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
ASSETS | ||||
Current assets | $ 7,233 | $ 7,462 | ||
Property, plant, equipment and mining development costs, net | 27,376 | 27,509 | ||
Oil and gas properties, net - full cost method | ||||
Subject to amortization, less accumulated amortization and impairment | 1,700 | 2,262 | ||
Not subject to amortization | 1,743 | 4,831 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 4,612 | 4,513 | ||
Total assets | 42,664 | 46,577 | $ 56,065 | |
LIABILITIES AND EQUITY | ||||
Current liabilities | 4,426 | 4,307 | ||
Long-term debt, less current portion | 19,638 | 19,779 | ||
Deferred income taxes | 4,442 | 4,288 | ||
Environmental and asset retirement obligations, less current portion | 3,762 | 3,739 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 1,659 | 1,656 | ||
Total liabilities | 33,927 | 33,769 | ||
Redeemable noncontrolling interest | 767 | 764 | ||
Equity: | ||||
Stockholders' equity | 3,692 | 7,828 | ||
Noncontrolling interests | 4,278 | 4,216 | ||
Total equity | 7,970 | 12,044 | ||
Total liabilities and equity | 42,664 | 46,577 | ||
FCX Issuer [Member] | ||||
ASSETS | ||||
Current assets | 272 | 181 | ||
Property, plant, equipment and mining development costs, net | 25 | 26 | ||
Oil and gas properties, net - full cost method | ||||
Subject to amortization, less accumulated amortization and impairment | 0 | 0 | ||
Not subject to amortization | 0 | 0 | ||
Investments in consolidated subsidiaries | 20,674 | 24,311 | ||
Other assets | 1,135 | 5,038 | ||
Total assets | 22,106 | 29,556 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 2,714 | 6,012 | ||
Long-term debt, less current portion | 14,599 | 14,735 | ||
Deferred income taxes | [1] | 1,060 | 941 | |
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 41 | 40 | ||
Total liabilities | 18,414 | 21,728 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Stockholders' equity | 3,692 | 7,828 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,692 | 7,828 | ||
Total liabilities and equity | 22,106 | 29,556 | ||
FM O&G LLC Guarantor [Member] | ||||
ASSETS | ||||
Current assets | 2,600 | 3,831 | ||
Property, plant, equipment and mining development costs, net | 59 | 57 | ||
Oil and gas properties, net - full cost method | ||||
Subject to amortization, less accumulated amortization and impairment | 517 | 710 | ||
Not subject to amortization | 415 | 1,393 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 34 | 1,826 | ||
Total assets | 3,625 | 7,817 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 660 | 666 | ||
Long-term debt, less current portion | 6,592 | 5,883 | ||
Deferred income taxes | 0 | 0 | ||
Environmental and asset retirement obligations, less current portion | 310 | 305 | ||
Investments in consolidated subsidiaries | 483 | 0 | ||
Other liabilities | 3,355 | 3,360 | ||
Total liabilities | 11,400 | 10,214 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Stockholders' equity | (7,775) | (2,397) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (7,775) | (2,397) | ||
Total liabilities and equity | 3,625 | 7,817 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Current assets | 8,092 | 10,982 | ||
Property, plant, equipment and mining development costs, net | 27,292 | 27,426 | ||
Oil and gas properties, net - full cost method | ||||
Subject to amortization, less accumulated amortization and impairment | 1,183 | 1,552 | ||
Not subject to amortization | 1,326 | 3,432 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 4,533 | 4,447 | ||
Total assets | 42,426 | 47,839 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 4,782 | 5,155 | ||
Long-term debt, less current portion | 11,818 | 11,594 | ||
Deferred income taxes | 3,382 | 3,347 | ||
Environmental and asset retirement obligations, less current portion | 3,452 | 3,434 | ||
Investments in consolidated subsidiaries | 7,775 | 2,397 | ||
Other liabilities | 1,751 | 1,747 | ||
Total liabilities | 32,960 | 27,674 | ||
Redeemable noncontrolling interest | 767 | 764 | ||
Equity: | ||||
Stockholders' equity | 4,966 | 15,725 | ||
Noncontrolling interests | 3,733 | 3,676 | ||
Total equity | 8,699 | 19,401 | ||
Total liabilities and equity | 42,426 | 47,839 | ||
Eliminations [Member] | ||||
ASSETS | ||||
Current assets | (3,731) | (7,532) | ||
Property, plant, equipment and mining development costs, net | 0 | 0 | ||
Oil and gas properties, net - full cost method | ||||
Subject to amortization, less accumulated amortization and impairment | 0 | 0 | ||
Not subject to amortization | 2 | 6 | ||
Investments in consolidated subsidiaries | (20,674) | (24,311) | ||
Other assets | (1,090) | (6,798) | ||
Total assets | (25,493) | (38,635) | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | (3,730) | (7,526) | ||
Long-term debt, less current portion | (13,371) | (12,433) | ||
Deferred income taxes | 0 | 0 | ||
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||
Investments in consolidated subsidiaries | (8,258) | (2,397) | ||
Other liabilities | (3,488) | (3,491) | ||
Total liabilities | (28,847) | (25,847) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Stockholders' equity | 2,809 | (13,328) | ||
Noncontrolling interests | 545 | 540 | ||
Total equity | 3,354 | (12,788) | ||
Total liabilities and equity | $ (25,493) | $ (38,635) | ||
[1] | All U.S. related deferred income taxes are recorded at the parent company. |
Guarantor Financial Statement43
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Revenues | $ 3,527 | $ 4,153 | ||
Total costs and expenses | 7,403 | 7,116 | ||
Operating (loss) income | (3,876) | (2,963) | ||
Interest expense, net | (200) | (146) | ||
Other income (expense), net | 38 | 7 | ||
Loss before income taxes and equity in affiliated companies' net earnings | (4,038) | (3,102) | ||
(Provision for) benefit from income taxes | (70) | 695 | ||
Equity in affiliated companies' net (losses) earnings | 7 | 1 | ||
Net loss | (4,101) | (2,406) | ||
Net income and preferred dividends attributable to noncontrolling interests | (83) | (68) | ||
Net loss attributable to common stockholders | (4,184) | (2,474) | ||
Other comprehensive income (loss) | 0 | 12 | ||
Total comprehensive (loss) income | (4,184) | (2,462) | ||
Impairment of oil and gas properties | 3,787 | 3,104 | ||
FCX Issuer [Member] | ||||
Revenues | 0 | 0 | ||
Total costs and expenses | 27 | 16 | ||
Operating (loss) income | (27) | (16) | ||
Interest expense, net | (137) | (115) | ||
Other income (expense), net | 50 | 29 | ||
Loss before income taxes and equity in affiliated companies' net earnings | (114) | (102) | ||
(Provision for) benefit from income taxes | (1,783) | (421) | ||
Equity in affiliated companies' net (losses) earnings | (2,286) | (1,951) | ||
Net loss | (4,183) | (2,474) | ||
Net income and preferred dividends attributable to noncontrolling interests | 0 | 0 | ||
Net loss attributable to common stockholders | (4,183) | (2,474) | ||
Other comprehensive income (loss) | 0 | 12 | ||
Total comprehensive (loss) income | (4,183) | (2,462) | ||
Impairment of oil and gas properties | 0 | 0 | ||
FM O&G LLC Guarantor [Member] | ||||
Revenues | 78 | 181 | ||
Total costs and expenses | 1,629 | [1] | 1,318 | [2] |
Operating (loss) income | (1,551) | (1,137) | ||
Interest expense, net | (4) | (4) | ||
Other income (expense), net | 0 | 0 | ||
Loss before income taxes and equity in affiliated companies' net earnings | (1,555) | (1,141) | ||
(Provision for) benefit from income taxes | 616 | 1,157 | ||
Equity in affiliated companies' net (losses) earnings | (2,704) | (2,359) | ||
Net loss | (3,643) | (2,343) | ||
Net income and preferred dividends attributable to noncontrolling interests | 0 | 0 | ||
Net loss attributable to common stockholders | (3,643) | (2,343) | ||
Other comprehensive income (loss) | 0 | 0 | ||
Total comprehensive (loss) income | (3,643) | (2,343) | ||
Impairment of oil and gas properties | 1,291 | 1,062 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | 3,449 | 3,972 | ||
Total costs and expenses | 5,741 | [1] | 5,798 | [2] |
Operating (loss) income | (2,292) | (1,826) | ||
Interest expense, net | (114) | (57) | ||
Other income (expense), net | 42 | 8 | ||
Loss before income taxes and equity in affiliated companies' net earnings | (2,364) | (1,875) | ||
(Provision for) benefit from income taxes | 1,095 | (35) | ||
Equity in affiliated companies' net (losses) earnings | (3,630) | (3,530) | ||
Net loss | (4,899) | (5,440) | ||
Net income and preferred dividends attributable to noncontrolling interests | (77) | (56) | ||
Net loss attributable to common stockholders | (4,976) | (5,496) | ||
Other comprehensive income (loss) | 0 | 12 | ||
Total comprehensive (loss) income | (4,976) | (5,484) | ||
Impairment of oil and gas properties | 2,483 | 2,042 | ||
Eliminations [Member] | ||||
Revenues | 0 | 0 | ||
Total costs and expenses | 6 | (16) | ||
Operating (loss) income | (6) | 16 | ||
Interest expense, net | 55 | 30 | ||
Other income (expense), net | (54) | (30) | ||
Loss before income taxes and equity in affiliated companies' net earnings | (5) | 16 | ||
(Provision for) benefit from income taxes | 2 | (6) | ||
Equity in affiliated companies' net (losses) earnings | 8,627 | 7,841 | ||
Net loss | 8,624 | 7,851 | ||
Net income and preferred dividends attributable to noncontrolling interests | (6) | (12) | ||
Net loss attributable to common stockholders | 8,618 | 7,839 | ||
Other comprehensive income (loss) | 0 | (12) | ||
Total comprehensive (loss) income | 8,618 | 7,827 | ||
Impairment of oil and gas properties | $ 13 | $ 0 | ||
[1] | Includes charges totaling $1.3 billion at the FM O&G LLC guarantor and $2.5 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. | |||
[2] | Includes charges totaling $1.1 billion at the FM O&G LLC guarantor and $2.0 billion at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules. |
Guarantor Financial Statement44
Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flow from operating activities: | ||
Net loss | $ (4,101) | $ (2,406) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | 722 | 939 |
Impairment of oil and gas properties | 3,787 | 3,104 |
Net gains on crude oil derivative contracts | 0 | (52) |
Equity in losses (earnings) of consolidated subsidiaries | (7) | (1) |
Other, net | 151 | (781) |
Changes in working capital and other tax payments | 188 | (86) |
Net cash provided by operating activities | 740 | 717 |
Cash flow from investing activities: | ||
Capital expenditures | (982) | (1,867) |
Intercompany loans | 0 | 0 |
Dividends from (investments in) consolidated subsidiaries | 0 | 0 |
Other, net | 2 | 127 |
Net cash used in investing activities | (980) | (1,740) |
Cash flow from financing activities: | ||
Proceeds from debt | 1,796 | 2,273 |
Repayments of debt | (1,442) | (802) |
Intercompany loans | 0 | 0 |
Net proceeds from sale of common Stock | 32 | 0 |
Cash dividends and distributions paid, and contributions received | (22) | (350) |
Other, net | (17) | (13) |
Net cash provided by financing activities | 347 | 1,108 |
Net increase in cash and cash equivalents | 107 | 85 |
Cash and cash equivalents at beginning of year | 224 | 464 |
Cash and cash equivalents at end of period | 331 | 549 |
FCX Issuer [Member] | ||
Cash flow from operating activities: | ||
Net loss | (4,183) | (2,474) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | 1 | 1 |
Impairment of oil and gas properties | 0 | 0 |
Net gains on crude oil derivative contracts | 0 | |
Equity in losses (earnings) of consolidated subsidiaries | 2,286 | 1,951 |
Other, net | 127 | (701) |
Changes in working capital and other tax payments | 1,652 | 1,171 |
Net cash provided by operating activities | (117) | (52) |
Cash flow from investing activities: | ||
Capital expenditures | 0 | 0 |
Intercompany loans | (561) | (905) |
Dividends from (investments in) consolidated subsidiaries | 358 | 310 |
Other, net | 0 | 0 |
Net cash used in investing activities | (203) | (595) |
Cash flow from financing activities: | ||
Proceeds from debt | 1,060 | 1,515 |
Repayments of debt | (750) | (530) |
Intercompany loans | 0 | 0 |
Net proceeds from sale of common Stock | 32 | |
Cash dividends and distributions paid, and contributions received | (4) | (327) |
Other, net | (18) | (11) |
Net cash provided by financing activities | 320 | 647 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
FM O&G LLC Guarantor [Member] | ||
Cash flow from operating activities: | ||
Net loss | (3,643) | (2,343) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | 51 | 119 |
Impairment of oil and gas properties | 1,291 | 1,062 |
Net gains on crude oil derivative contracts | (52) | |
Equity in losses (earnings) of consolidated subsidiaries | 2,704 | 2,359 |
Other, net | 7 | 6 |
Changes in working capital and other tax payments | (442) | (1,321) |
Net cash provided by operating activities | (32) | (170) |
Cash flow from investing activities: | ||
Capital expenditures | (244) | (302) |
Intercompany loans | (377) | (400) |
Dividends from (investments in) consolidated subsidiaries | (41) | (14) |
Other, net | 2 | 0 |
Net cash used in investing activities | (660) | (716) |
Cash flow from financing activities: | ||
Proceeds from debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany loans | 716 | 903 |
Net proceeds from sale of common Stock | 0 | |
Cash dividends and distributions paid, and contributions received | 0 | 0 |
Other, net | (24) | (18) |
Net cash provided by financing activities | 692 | 885 |
Net increase in cash and cash equivalents | 0 | (1) |
Cash and cash equivalents at beginning of year | 0 | 1 |
Cash and cash equivalents at end of period | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flow from operating activities: | ||
Net loss | (4,899) | (5,440) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | 677 | 835 |
Impairment of oil and gas properties | 2,483 | 2,042 |
Net gains on crude oil derivative contracts | 0 | |
Equity in losses (earnings) of consolidated subsidiaries | 3,630 | 3,530 |
Other, net | 17 | (86) |
Changes in working capital and other tax payments | (1,024) | 58 |
Net cash provided by operating activities | 884 | 939 |
Cash flow from investing activities: | ||
Capital expenditures | (736) | (1,565) |
Intercompany loans | 0 | 0 |
Dividends from (investments in) consolidated subsidiaries | 35 | 32 |
Other, net | 0 | 127 |
Net cash used in investing activities | (701) | (1,406) |
Cash flow from financing activities: | ||
Proceeds from debt | 736 | 758 |
Repayments of debt | (692) | (272) |
Intercompany loans | 222 | 402 |
Net proceeds from sale of common Stock | 42 | |
Cash dividends and distributions paid, and contributions received | (373) | (319) |
Other, net | (11) | (16) |
Net cash provided by financing activities | (76) | 553 |
Net increase in cash and cash equivalents | 107 | 86 |
Cash and cash equivalents at beginning of year | 224 | 463 |
Cash and cash equivalents at end of period | 331 | 549 |
Eliminations [Member] | ||
Cash flow from operating activities: | ||
Net loss | 8,624 | 7,851 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | (7) | (16) |
Impairment of oil and gas properties | 13 | 0 |
Net gains on crude oil derivative contracts | 0 | |
Equity in losses (earnings) of consolidated subsidiaries | (8,627) | (7,841) |
Other, net | 0 | 0 |
Changes in working capital and other tax payments | 2 | 6 |
Net cash provided by operating activities | 5 | 0 |
Cash flow from investing activities: | ||
Capital expenditures | (2) | 0 |
Intercompany loans | 938 | 1,305 |
Dividends from (investments in) consolidated subsidiaries | (352) | (328) |
Other, net | 0 | 0 |
Net cash used in investing activities | 584 | 977 |
Cash flow from financing activities: | ||
Proceeds from debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany loans | (938) | (1,305) |
Net proceeds from sale of common Stock | (42) | |
Cash dividends and distributions paid, and contributions received | 355 | 296 |
Other, net | 36 | 32 |
Net cash provided by financing activities | (589) | (977) |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |
Subsequent Events (Unaudited) (
Subsequent Events (Unaudited) (Details) - Ultra-deepwater Drillship Contracts [Member] - Subsequent Event [Member] - USD ($) $ in Millions | 1 Months Ended | |
May. 31, 2016 | May. 10, 2016 | |
Subsequent Event [Line Items] | ||
Subsequent Event, Date | May 10, 2016 | |
Gain (Loss) on Contract Termination | $ (540) | |
Period, Contingent Consideration | 12 years | |
Unrecorded Unconditional Purchase Obligation, Change of Amount as Result of Variable Components | $ 800 | |
Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Bonds Issued, Contract Termination | $ 200 | |
Contingent Payments, Contract Termination | $ 75 |