DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
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 | $ 22.4 | ||
Entity Common Stock, Shares Outstanding | 1,449,058,885 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Period End Date | Dec. 31, 2018 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 |
Cost of sales: | |||||||||||
Production and delivery | 11,691 | 10,266 | 10,687 | ||||||||
Cost, Depreciation, Amortization and Depletion | 1,754 | 1,714 | 2,530 | ||||||||
Impairment of Oil and Gas Properties | 0 | 0 | 4,317 | ||||||||
Total cost of sales | 13,445 | 11,980 | 17,534 | ||||||||
Selling, general and administrative expenses | 443 | 477 | 597 | ||||||||
Exploration Expense | 105 | 93 | 63 | ||||||||
Environmental obligations and shutdown costs | 89 | 244 | 14 | ||||||||
Net gain on sales of assets | (82) | (70) | (45) | (11) | (15) | (33) | (10) | (23) | (208) | (81) | (649) |
Total costs and expenses | 13,874 | 12,713 | 17,559 | ||||||||
Operating income (loss) | 316 | 1,315 | 1,664 | 1,459 | 1,479 | 928 | 686 | 597 | 4,754 | 3,690 | (2,729) |
Interest expense, net | (945) | (801) | (755) | ||||||||
Net gain on early extinguishment and exchanges of debt | 7 | 21 | 26 | ||||||||
Other income (expense), net | 76 | (8) | (14) | ||||||||
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings | 3,892 | 2,902 | (3,472) | ||||||||
Provision for (benefit from) income taxes | (991) | (883) | (371) | ||||||||
Equity in affiliated companies’ net earnings | 8 | 10 | 11 | ||||||||
Net income (loss) from continuing operations | 374 | 668 | 1,039 | 828 | 1,193 | 242 | 326 | 268 | 2,909 | 2,029 | (3,832) |
Net (loss) income from discontinued operations | 4 | (4) | (4) | (11) | 16 | 3 | 9 | 38 | (15) | 66 | (193) |
Net income (loss) | 378 | 664 | 1,035 | 817 | 1,209 | 245 | 335 | 306 | 2,894 | 2,095 | (4,025) |
Net income from continuing operations attributable to noncontrolling interests | (292) | (274) | (227) | ||||||||
Net income attributable to noncontrolling interests: Discontinued Operations | 0 | 0 | (1) | (3) | 0 | (4) | (63) | ||||
Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest | 0 | 0 | 161 | ||||||||
Net income (loss) attributable to common stockholders | $ 485 | $ 556 | $ 869 | $ 692 | $ 1,041 | $ 280 | $ 268 | $ 228 | $ 2,602 | $ 1,817 | $ (4,154) |
Basic net income (loss) per share attributable to common stockholders: | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.33 | $ 0.38 | $ 0.60 | $ 0.48 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.13 | $ 1.80 | $ 1.21 | $ (2.96) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Basic | 0.33 | 0.38 | 0.60 | 0.47 | 0.72 | 0.19 | 0.18 | 0.16 | 1.79 | 1.25 | (3.16) |
Diluted net income (loss) per share attributable to common stockholders: | |||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.33 | 0.38 | 0.59 | 0.48 | 0.70 | 0.19 | 0.18 | 0.13 | 1.79 | 1.21 | (2.96) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Diluted | $ 0.33 | $ 0.38 | $ 0.59 | $ 0.47 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.16 | $ 1.78 | $ 1.25 | $ (3.16) |
Weighted Average Number of Shares Outstanding, Basic | 1,450,000,000 | 1,450,000,000 | 1,449,000,000 | 1,449,000,000 | 1,448,000,000 | 1,448,000,000 | 1,447,000,000 | 1,446,000,000 | 1,449,000,000 | 1,447,000,000 | 1,318,000,000 |
Weighted Average Number of Shares Outstanding, Diluted | 1,457,000,000 | 1,458,000,000 | 1,458,000,000 | 1,458,000,000 | 1,455,000,000 | 1,454,000,000 | 1,453,000,000 | 1,454,000,000 | 1,458,000,000 | 1,454,000,000 | 1,318,000,000 |
Dividends declared per share of common stock (in dollars per share) | $ 0.2 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 2,894 | $ 2,095 | $ (4,025) |
Other comprehensive income (loss), net of taxes: | |||
Unrealized gains on securities | 0 | 1 | 2 |
Defined benefit plans: | |||
Actuarial (losses) gains arising during the period, net of taxes | 77 | (14) | 88 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 4 | 0 | 0 |
Amortization or curtailment of unrecognized amounts included in net periodic benefit costs | 48 | 54 | 44 |
Foreign exchange losses | (1) | 0 | (1) |
Other comprehensive (loss) income | (34) | 69 | (43) |
Total comprehensive income (loss) | 2,860 | 2,164 | (4,068) |
Total comprehensive income attributable to noncontrolling interests | (291) | (286) | (292) |
Gain on redemption and preferred dividends attributable to noncontrolling interests | 0 | 0 | 161 |
Total comprehensive income (loss) attributable to common stockholders | $ 2,569 | $ 1,878 | $ (4,199) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flow from operating activities: | |||
Net income (loss) | $ 2,894 | $ 2,095 | $ (4,025) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 1,754 | 1,714 | 2,610 |
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | (123) | (393) | 0 |
Litigation Settlement, Expense | 371 | 355 | 0 |
Payments for Legal Settlements | (56) | (53) | (30) |
Impairment of Oil and Gas Properties | 0 | 0 | 4,317 |
Oil and gas noncash drillship settlement costs and other adjustments | 0 | (33) | 803 |
Net gain on sales of assets | (208) | (81) | (649) |
Stock-based compensation | 76 | 71 | 86 |
Net charges for environmental and asset retirement obligations, including accretion | 262 | 383 | 191 |
Payments for environmental and asset retirement obligations | 239 | 131 | 242 |
Pension and Other Postretirement Benefits Expense (Reversal of Expense), Noncash | 81 | 120 | 113 |
Payment for Pension and Other Postretirement Benefits | (75) | (174) | (57) |
Net gain on early extinguishment and exchanges of debt | (7) | (21) | (26) |
Deferred income taxes | (404) | 76 | 239 |
Loss on disposal of discontinued operations | (15) | 57 | (198) |
Decrease in long-term mill and leach stockpiles | 94 | 224 | 10 |
Other Operating Activities, Cash Flow Statement | 16 | (2) | 112 |
Changes in working capital and other tax payments, excluding disposition amounts: | |||
Accounts receivable | 649 | 427 | (175) |
Inventories | (631) | (393) | 117 |
Other current assets | (28) | (28) | 37 |
Accounts payable and accrued liabilities | (106) | 110 | (28) |
Accrued income taxes and timing of other tax payments | (472) | 457 | 136 |
Net cash provided by operating activities | 3,863 | 4,666 | 3,737 |
Cash flow from investing activities: | |||
Capital expenditures | (1,971) | (1,410) | (2,813) |
Acquisition of PT Rio Tinto Indonesia | (3,500) | 0 | 0 |
Proceeds from sales of: | |||
Other assets | 93 | 72 | 423 |
Other, net | (97) | 17 | 11 |
Net cash (used in) provided by investing activities | (5,018) | (1,321) | 3,553 |
Cash flow from financing activities: | |||
Proceeds from debt | 632 | 955 | 3,681 |
Repayments of debt | (2,717) | (3,812) | (7,625) |
Proceeds from sale of PT Freeport Indonesia shares | 3,500 | 0 | 0 |
Net proceeds from sale of common stock | 0 | 0 | 1,515 |
Cash dividends and distributions paid: | |||
Common stock | (218) | (2) | (6) |
Noncontrolling interests, including redemption | (278) | (174) | (693) |
Other, net | (19) | (22) | (38) |
Net cash provided by (used in) financing activities | 900 | (3,055) | (3,166) |
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 4,124 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (255) | 290 | 4,124 |
Increase in cash and cash equivalents in assets held for sale | 0 | 0 | (45) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,455 | 4,710 | 4,420 |
PT Indonesia Papua Metal dan Mineral | |||
Proceeds from sales of: | |||
Proceeds from sales | 457 | 0 | 0 |
Tenke Fungurume mine | |||
Proceeds from sales of: | |||
Proceeds from sales | 0 | 0 | 2,664 |
Deepwater Gulf of Mexico and onshore California oil and gas properties | |||
Proceeds from sales of: | |||
Proceeds from sales | 0 | 0 | 2,272 |
Morenci | |||
Proceeds from sales of: | |||
Proceeds from sales | 0 | 0 | 996 |
North America copper mines | |||
Cash flow from investing activities: | |||
Capital expenditures | (601) | (167) | (102) |
South America | |||
Cash flow from investing activities: | |||
Capital expenditures | (237) | (115) | (382) |
Indonesia | |||
Cash flow from investing activities: | |||
Capital expenditures | (1,001) | (875) | (1,025) |
Molybdenum mines | |||
Cash flow from investing activities: | |||
Capital expenditures | (9) | (5) | (2) |
Other, including oil and gas operations | |||
Cash flow from investing activities: | |||
Capital expenditures | $ (123) | $ (248) | $ (1,302) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 4,217 | $ 4,526 |
Trade accounts receivable | 829 | 1,322 |
Income and other tax receivables | 493 | 343 |
Inventories: | ||
Total materials and supplies, net | 1,528 | 1,323 |
Mill and leach stockpiles | 1,453 | 1,422 |
Product | 1,778 | 1,404 |
Other current assets | 422 | 286 |
Total current assets | 10,720 | 10,626 |
Property, plant, equipment and mine development costs, net | 28,010 | 22,994 |
Long-term mill and leach stockpiles | 1,314 | 1,409 |
Other assets | 2,172 | 2,273 |
Total assets | 42,216 | 37,302 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 2,625 | 2,497 |
Accrued income taxes | 165 | 583 |
Current portion of environmental and asset retirement obligations | 449 | 420 |
Dividends Payable, Current | 73 | 0 |
Current portion of debt | 17 | 1,414 |
Total current liabilities | 3,329 | 4,914 |
Long-term debt, less current portion | 11,124 | 11,815 |
Deferred income taxes | 4,032 | 3,663 |
Environmental and asset retirement obligations, less current portion | 3,609 | 3,602 |
Other liabilities | 2,230 | 2,012 |
Total liabilities | 24,324 | 26,006 |
Stockholders’ equity: | ||
Common stock, par value $0.10, 1,579 shares and 1,578 shares issued, respectively | 158 | 158 |
Capital in excess of par value | 26,013 | 26,751 |
Accumulated deficit | (12,041) | (14,722) |
Accumulated other comprehensive loss | (605) | (487) |
Common stock held in treasury – 130 shares, at cost | (3,727) | (3,723) |
Total stockholders’ equity | 9,798 | 7,977 |
Noncontrolling interests | 8,094 | 3,319 |
Total equity | 17,892 | 11,296 |
Total liabilities and equity | $ 42,216 | $ 37,302 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued (in shares) | 1,579 | 1,578 |
Common stock hold in treasury (in shares) | 130 | 129 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Loss | Common Stock Held in Treasury | Total Stockholders’ Equity | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2015 | 1,374 | 128 | ||||||
Balance at Dec. 31, 2015 | $ 12,044 | $ 137 | $ 24,283 | $ (12,387) | $ (503) | $ (3,702) | $ 7,828 | $ 4,216 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock Issued During Period, Shares, New Issues | 197 | |||||||
Issuance of common stock | 2,366 | $ 20 | 2,346 | 2,366 | ||||
Exercised and issued stock-based awards (in shares) | 3 | |||||||
Exercised and issued stock-based awards | 0 | 0 | 0 | |||||
Stock-based compensation, including tax benefit and the tender of shares | 55 | 61 | $ (6) | 55 | 0 | |||
Stock-based compensation, including tax benefit and the tender of shares (in shares) | 1 | |||||||
Dividends | (89) | 1 | 1 | (90) | ||||
Changes in noncontrolling interests | (6) | 0 | 0 | (6) | ||||
Sale of Candelaria and Ojos del Salado mines | (1,206) | (1,206) | ||||||
Net loss attributable to common stockholders | (4,154) | (4,154) | (4,154) | |||||
Net income attributable to noncontrolling interests, including discontinued operations | 290 | 290 | ||||||
Other comprehensive (loss) income | (43) | (45) | (45) | 2 | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (4,068) | |||||||
Balance (in shares) at Dec. 31, 2016 | 1,574 | 129 | ||||||
Balance at Dec. 31, 2016 | 9,257 | $ 157 | 26,690 | (16,540) | (548) | $ (3,708) | 6,051 | 3,206 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercised and issued stock-based awards (in shares) | 4 | |||||||
Exercised and issued stock-based awards | 6 | $ 1 | 5 | 6 | ||||
Stock-based compensation, including tax benefit and the tender of shares | 42 | 56 | $ (15) | 41 | 1 | |||
Stock-based compensation, including tax benefit and the tender of shares (in shares) | 1 | |||||||
Dividends | (173) | 1 | 1 | (174) | ||||
Net loss attributable to common stockholders | 1,817 | 1,817 | 1,817 | |||||
Net income attributable to noncontrolling interests, including discontinued operations | 278 | 278 | ||||||
Other comprehensive (loss) income | 69 | 61 | 61 | 8 | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 2,164 | |||||||
Balance (in shares) at Dec. 31, 2017 | 1,578 | 130 | ||||||
Balance at Dec. 31, 2017 | 11,296 | $ 158 | 26,751 | (14,722) | (487) | $ (3,723) | 7,977 | 3,319 |
Tender of shares for stock based awards shares | 0 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercised and issued stock-based awards (in shares) | 1 | 0 | ||||||
Exercised and issued stock-based awards | 8 | $ 0 | 8 | 0 | 0 | $ 0 | 8 | 0 |
Stock-based compensation, including tax benefit and the tender of shares | 66 | 0 | 70 | 0 | 0 | $ (4) | 66 | 0 |
Stock-based compensation, including tax benefit and the tender of shares (in shares) | 0 | |||||||
Dividends | (569) | 0 | (291) | 0 | 0 | $ 0 | (291) | (278) |
Net loss attributable to common stockholders | 2,602 | 0 | 2,602 | 0 | 2,602 | 0 | ||
Net income attributable to noncontrolling interests, including discontinued operations | (292) | 0 | 0 | 0 | (292) | |||
Noncontrolling Interest, Change in Redemption Value | 0 | 0 | 0 | |||||
Other comprehensive (loss) income | (34) | $ 0 | 0 | (33) | $ 0 | (33) | (1) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 2,860 | 0 | ||||||
Balance (in shares) at Dec. 31, 2018 | 1,579 | 130 | ||||||
Balance at Dec. 31, 2018 | 17,892 | $ 158 | 26,013 | (12,041) | (605) | $ (3,727) | 9,798 | 8,094 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 4,231 | (525) | (6) | (531) | $ 4,762 | |||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | $ 0 | 0 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ 79 | $ (79) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation. The consolidated financial statements of Freeport-McMoRan Inc. (FCX) include the accounts of those subsidiaries where it directly or indirectly has more than 50 percent of the voting rights and/or has control over the subsidiary. As of December 31, 2018, the most significant entities that FCX consolidates include its 48.76 percent -owned subsidiary PT Freeport Indonesia (PT-FI), and the following wholly owned subsidiaries: Freeport Minerals Corporation (FMC) and Atlantic Copper, S.L.U. (Atlantic Copper). Refer to Notes 2 and 3 for further discussion, including FCX’s conclusion to consolidate PT-FI. During 2016, FCX completed sales of its Africa mining operation held by FMC and substantially all of its oil and gas operations. Refer to Note 2 for further discussion. FCX’s unincorporated joint ventures are reflected using the proportionate consolidation method (refer to Note 3 for further discussion). Investments in unconsolidated companies owned 20 percent or more are recorded using the equity method. Investments in companies owned less than 20 percent , and for which FCX does not exercise significant influence, are recorded using the cost method. All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts. Business Segments. FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. FCX’s reportable segments include the Morenci, Cerro Verde and Grasberg (Indonesia mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining. Refer to Note 16 for further discussion. Use of Estimates. The preparation of FCX’s financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include minerals reserve estimation; asset lives for depreciation, depletion and amortization; environmental obligations; asset retirement obligations; estimates of recoverable copper in mill and leach stockpiles; deferred taxes and valuation allowances; reserves for contingencies and litigation; asset acquisitions and impairment, including estimates used to derive future cash flows associated with those assets; pension benefits; and valuation of derivative instruments. Actual results could differ from those estimates. Functional Currency. The functional currency for the majority of FCX’s foreign operations is the U.S. dollar. For foreign subsidiaries whose functional currency is the U.S. dollar, monetary assets and liabilities denominated in the local currency are translated at current exchange rates, and non-monetary assets and liabilities, such as inventories, property, plant, equipment and mine development costs, are translated at historical rates. Gains and losses resulting from translation of such account balances are included in other income, net, as are gains and losses from foreign currency transactions. Foreign currency gains (losses) totaled $14 million in 2018 , $(5) million in 2017 and $32 million in 2016 . Cash Equivalents. Highly liquid investments purchased with maturities of three months or less are considered cash equivalents. Restricted Cash and Restricted Cash Equivalents. FCX’s restricted cash and restricted cash equivalents are primarily related to PT-FI’s commitment for the development of a new smelter in Indonesia; guarantees and commitments for certain mine closure and reclamation obligations, and customs duty taxes; and funds held as cash collateral for surety bonds related to plugging and abandonment obligations of certain oil and gas properties. Restricted cash and restricted cash equivalents are classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. Restricted cash and restricted cash equivalents are comprised of time deposits and money market funds. Inventories. Inventories include materials and supplies, mill and leach stockpiles, and product inventories. Inventories are stated at the lower of weighted-average cost or net realizable value (NRV). Mill and Leach Stockpiles. Mill and leach stockpiles are work-in-process inventories for FCX’s mining operations. Mill and leach stockpiles contain ore that has been extracted from an ore body and is available for metal recovery. Mill stockpiles contain sulfide ores, and recovery of metal is through milling, concentrating and smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities ( i.e., solution extraction and electrowinning (SX/EW)). The recorded cost of mill and leach stockpiles includes mining and haulage costs incurred to deliver ore to stockpiles, depreciation, depletion, amortization and site overhead costs. Material is removed from the stockpiles at a weighted-average cost per pound. Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grade of the material delivered to mill and leach stockpiles. Expected copper recovery rates for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. Expected copper recovery rates for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90 percent depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80 percent of the total copper recovery may occur during the first year, and the remaining copper may be recovered over many years. Processes and recovery rates for mill and leach stockpiles are monitored regularly, and recovery rate estimates are adjusted periodically as additional information becomes available and as related technology changes. Adjustments to recovery rates will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper. Product. Product inventories include raw materials, work-in-process and finished goods. Raw materials are primarily unprocessed concentrate at Atlantic Copper’s smelting and refining operations. Work-in-process inventories are primarily copper concentrate at various stages of conversion into anode and cathode at Atlantic Copper’s operations. Atlantic Copper’s in-process inventories are valued at the weighted-average cost of the material fed to the smelting and refining process plus in-process conversion costs. Finished goods for mining operations represent salable products ( e.g. , copper and molybdenum concentrate, copper anode, copper cathode, copper rod, copper wire, molybdenum oxide, and high-purity molybdenum chemicals and other metallurgical products). Finished goods are valued based on the weighted-average cost of source material plus applicable conversion costs relating to associated process facilities. Costs of finished goods and work-in-process ( i.e. , not raw materials) inventories include labor and benefits, supplies, energy, depreciation, depletion, amortization, site overhead costs and other necessary costs associated with the extraction and processing of ore, including, depending on the process, mining, haulage, milling, concentrating, smelting, leaching, solution extraction, refining, roasting and chemical processing. Corporate general and administrative costs are not included in inventory costs. Property, Plant, Equipment and Mine Development Costs. Property, plant, equipment and mine development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. Additionally, interest expense allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance ( i.e. , turnarounds) are charged to expense as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production (UOP) method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for primary molybdenum mines). Development costs and acquisition costs for proven and probable mineral reserves that relate to a specific ore body are depreciated using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. Depreciation, depletion and amortization using the UOP method is recorded upon extraction of the recoverable copper or molybdenum from the ore body, at which time it is allocated to inventory cost and then included as a component of cost of goods sold. Other assets are depreciated on a straight-line basis over estimated useful lives of up to 40 years for buildings and three to 30 years for machinery and equipment, and mobile equipment. Included in property, plant, equipment and mine development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of FMC in 2007. The concept of VBPP may be interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) mineralized material, which includes measured and indicated amounts, that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential. Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. Refer to Note 5 for further discussion. Impairment of Long-Lived Mining Assets. FCX assesses the carrying values of its long-lived mining assets for impairment when events or changes in circumstances indicate that the related carrying amounts of such assets may not be recoverable. In evaluating long-lived mining assets for recoverability, estimates of pre-tax undiscounted future cash flows of FCX’s individual mines are used. An impairment is considered to exist if total estimated undiscounted future cash flows are less than the carrying amount of the asset. Once it is determined that an impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value. The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of FCX’s mining operations are derived from current business plans, which are developed using near-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to near- and long-term metal price assumptions, other key assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; VBPP estimates; and the use of appropriate discount rates in the measurement of fair value. FCX believes its estimates and models used to determine fair value are similar to what a market participant would use. As quoted market prices are unavailable for FCX’s individual mining operations, fair value is determined through the use of after-tax discounted estimated future cash flows ( i.e. , Level 3 measurement). Oil and Gas Properties. FCX follows the full cost method of accounting specified by the U.S. Securities and Exchange Commission’s (SEC) rules whereby all costs associated with oil and gas property acquisition, exploration and development activities are capitalized into a cost center on a country-by-country basis. Such costs include internal general and administrative costs, such as payroll and related benefits and costs directly attributable to employees engaged in acquisition, exploration and development activities. General and administrative costs associated with production, operations, marketing and general corporate activities are charged to expense as incurred. Capitalized costs, along with estimated future costs to develop proved reserves and asset retirement costs that are not already included in oil and gas properties, net of related salvage value, are amortized to expense under the UOP method using engineers’ estimates of the related, by-country proved oil and natural gas reserves. The costs of unproved oil and gas properties were excluded from amortization until the properties were evaluated. Costs were transferred into the amortization base on an ongoing basis as the properties were evaluated and proved oil and natural gas reserves were established or if impairment was determined. Unproved oil and gas properties were assessed periodically, at least annually, to determine whether impairment had occurred. FCX assessed unproved oil and gas properties for impairment on an individual basis or as a group if properties were individually insignificant. The assessment considered the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves, the economic viability of development if proved reserves were assigned and other current market conditions. During any period in which these factors indicated an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs were transferred to the full cost pool and were then subject to amortization. Including amounts determined to be impaired, FCX transferred $4.9 billion of costs associated with unevaluated properties to the full cost pool in 2016. The transfer of costs into the amortization base involved a significant amount of judgment. Costs not subject to amortization consisted primarily of capitalized costs incurred for undeveloped acreage and wells in progress pending determination, together with capitalized interest for these projects. Following the completion of the sales of oil and gas properties discussed in Note 2, FCX had no unproved oil and gas properties in the consolidated balance sheets at December 31, 2018 or 2017. Interest costs totaling $7 million in 2016 were capitalized on oil and gas properties not subject to amortization and in the process of development. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless the reduction causes a significant change in proved reserves, which, absent other factors, is generally described as a 25 percent or greater change, and significantly alters the relationship between capitalized costs and proved reserves attributable to a cost center, in which case a gain or loss is recognized. Impairment of Oil and Gas Properties. Under the SEC full cost accounting rules, FCX reviewed 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 natural 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 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 reserve estimates exclude the effect of any crude oil and natural gas derivatives FCX has in place. 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 2016, net capitalized costs with respect to FCX’s proved oil and gas properties exceeded the related ceiling test limitation; therefore, impairment charges of $4.3 billion were recorded primarily because of the lower twelve-month average of the first-day-of-the-month historical reference oil price and reserve revisions. Deferred Mining Costs. Stripping costs ( i.e. , the costs of removing overburden and waste material to access mineral deposits) incurred during the production phase of a mine are considered variable production costs and are included as a component of inventory produced during the period in which stripping costs are incurred. Major development expenditures, including stripping costs to prepare unique and identifiable areas outside the current mining area for future production that are considered to be pre-production mine development, are capitalized and amortized using the UOP method based on estimated recoverable proven and probable reserves for the ore body benefited. However, where a second or subsequent pit or major expansion is considered to be a continuation of existing mining activities, stripping costs are accounted for as a current production cost and a component of the associated inventory. Environmental Obligations. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 12 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to outside law firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation. Environmental obligations assumed in the acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur. FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly. Asset Retirement Obligations. FCX records the fair value of estimated asset retirement obligations (AROs) associated with tangible long-lived assets in the period incurred. Retirement obligations associated with long-lived assets are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to cost of sales. In addition, asset retirement costs (ARCs) are capitalized as part of the related asset’s carrying value and are depreciated over the asset’s respective useful life. For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition. For oil and gas properties, the fair value of the legal obligation is recognized as an ARO and as a related ARC in the period in which the well is drilled or acquired and is amortized on a UOP basis together with other capitalized costs. Substantially all of FCX’s oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores; remove platforms, tanks, production equipment and flow lines; and restore the wellsite. For non-operating properties without reserves, changes to the ARO are recorded in earnings. At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. Refer to Note 12 for further discussion. Revenue Recognition. Effective January 1, 2018, FCX adopted the new revenue recognition accounting standard, which did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations. FCX recognizes revenue for all of its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 14 for further discussion). For provisionally priced sales, 90 percent to 100 percent of the provisional payment is made upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average copper settlement prices on the London Metal Exchange (LME) or the Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange, and quoted monthly average London Bullion Market Association (LBMA) gold settlement prices. FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Moreover, because a portion of the metals contained in copper concentrate is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners that are generally fixed. Refer to Note 16 for a summary of revenue by product type. Gold sales are priced according to individual contract terms, generally the average LBMA gold settlement price for a specified month near the month of shipment. The majority of FCX’s molybdenum sales are priced based on the average published Metals Week price, plus conversion premiums for products that undergo additional processing, such as ferromolybdenum and molybdenum chemical products, for the month prior to the month of shipment. Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value for stock-settled restricted stock units (RSUs) is based on FCX’s stock price on the date of grant. Shares of common stock are issued at the vesting date for stock-settled RSUs. The fair value of performance share units (PSUs) are determined using FCX’s stock price and a Monte-Carlo simulation model. The fair value for liability-classified awards ( i.e. , cash-settled stock appreciation rights (SARs), cash-settled RSUs and cash-settled PSUs) is remeasured each reporting period using the Black-Scholes-Merton option valuation model for SARs and FCX’s stock price for cash-settled RSUs and cash-settled PSUs. FCX has elected to recognize compensation costs for stock option awards and SARs that vest over several years on a straight-line basis over the vesting period, and for RSUs and cash-settled PSUs on the graded-vesting method over the vesting period. Refer to Note 10 for further discussion. Earnings Per Share. FCX calculates its basic net income (loss) per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the year. Diluted net income (loss) per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive. Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share for the years ended December 31 follow: 2018 2017 2016 Net income (loss) from continuing operations $ 2,909 $ 2,029 $ (3,832 ) Net income from continuing operations attributable to noncontrolling interests (292 ) (274 ) (227 ) Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest — — 161 Accumulated dividends and undistributed earnings allocated to participating securities (4 ) (4 ) (3 ) Net income (loss) from continuing operations attributable to common stockholders 2,613 1,751 (3,901 ) Net (loss) income from discontinued operations (15 ) 66 (193 ) Net income from discontinued operations attributable to noncontrolling interests — (4 ) (63 ) Net (loss) income from discontinued operations attributable to common stockholders (15 ) 62 (256 ) Net income (loss) attributable to common stockholders $ 2,598 $ 1,813 $ (4,157 ) Basic weighted-average shares of common stock outstanding (millions) 1,449 1,447 1,318 Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) 9 a 7 — a Diluted weighted-average shares of common stock outstanding (millions) 1,458 1,454 1,318 Basic net income (loss) per share attributable to common stockholders: Continuing operations $ 1.80 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.79 $ 1.25 $ (3.16 ) Diluted net income (loss) per share attributable to common stockholders: Continuing operations $ 1.79 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.78 $ 1.25 $ (3.16 ) a. Excludes approximately 1 million in 2018 and 12 million in 2016 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 year are excluded from the computation of diluted net income (loss) per share of common stock. Stock options for 37 million shares of common stock were excluded in 2018 , 41 million in 2017 and 46 million in 2016 . New Accounting Standards. Following is a discussion of new accounting standards. Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to revenue recognition. FCX adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations (refer to Revenue Recognition policy in this note). In connection with the adoption of the standard and consistent with FCX’s policy prior to adoption of the standard, FCX has elected to account for shipping and handling activities performed after control of goods has been transferred to a customer as a fulfillment cost recorded in production and delivery costs on the consolidated statements of operations. Financial Instruments. In January 2016, FASB issued an ASU that amends the guidance on the classification and measurement of financial instruments. This ASU makes limited changes to prior guidance and amends certain disclosure requirements. FCX adopt |
DISPOSITIONS AND ACQUISITIONS D
DISPOSITIONS AND ACQUISITIONS DISPOSITIONS AND ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Dispositions And Acquisitions [Abstract] | |
DISPOSITIONS AND ACQUISITIONS | DISPOSITIONS PT-FI Divestment. On December 21, 2018, FCX completed the transaction with the Indonesian government regarding PT-FI’s long-term mining rights and share ownership. Pursuant to the previously announced divestment agreement and related documents, PT Indonesia Asahan Aluminium (Persero) (PT Inalum), an Indonesian state-owned enterprise, acquired for cash consideration of $3.85 billion all of Rio Tinto plc's (Rio Tinto) interests associated with its joint venture with PT-FI (the former Rio Tinto Joint Venture) and 100 percent of FCX's interests in PT Indonesia Papua Metal Dan Mineral (PTI - formerly known as PT Indocopper Investama), which at the time owned 9.36 percent of PT-FI. Of the $3.85 billion in cash consideration, Rio Tinto received $3.5 billion , and FCX received $350 million . In addition, Rio Tinto paid FCX $107 million for its share of the 2018 joint venture cash flows. In connection with the transaction, an aggregate 40 percent share ownership in PT-FI was issued to PT Inalum and PTI (which is expected to be owned by PT Inalum and the provincial/regional government in Papua). Based on a subscription of PT Inalum’s rights to acquire for cash consideration of $3.5 billion all of Rio Tinto’s interests in the former Rio Tinto Joint Venture, PT-FI acquired all of the common stock of the entity (PT Rio Tinto Indonesia) that held Rio Tinto’s interest. After the transaction, PT Inalum’s ( 26.24 percent ) and PTI’s ( 25.00 percent ) collective share ownership of PT-FI totals 51.24 percent and FCX's share ownership totals 48.76 percent . The arrangements provide for FCX and the other pre-transaction PT-FI shareholders ( i.e. , PT Inalum and PTI) to retain the economics of the revenue and cost sharing arrangements under the former Rio Tinto Joint Venture. As a result, FCX’s economic interest in PT-FI is expected to approximate 81 percent from 2019 through 2022. The divestment agreement provides that FCX will indemnify PT Inalum and PTI from any losses (reduced by receipts) arising from any tax disputes of PT-FI disclosed to PT Inalum in a Jakarta, Indonesia tax court letter limited to PTI’s respective percentage share at the time the loss is finally incurred. Any net obligations arising from any tax settlement would be paid on December 21, 2025. FCX, PT-FI, PTI and PT Inalum entered into a shareholders agreement (the PT-FI Shareholders Agreement), which includes provisions related to the governance and management of PT-FI. FCX considered the terms of the PT-FI Shareholders Agreement and related governance structure, including whether PT Inalum has substantive participating rights, and concluded that it has retained control and would continue to consolidate PT-FI in its financial statements following the transaction. Among other terms, the governance arrangements under the PT-FI Shareholders Agreement transfers control over the management of PT-FI’s mining operations to an operating committee, which is controlled by FCX. Additionally, as discussed above, the existing PT-FI shareholders will retain the economics of the revenue and cost-sharing arrangements under the former Rio Tinto Joint Venture, so that FCX’s economic interest in the project through 2041 will not be significantly affected by the transaction. FCX believes its conclusion to continue to consolidate PT-FI in its financial statements is in accordance with SEC Regulation S-X, Rule 3A-02 (a), which provides for situations in which consolidation of an entity, notwithstanding the lack of majority ownership, is necessary to present fairly the financial position and results of operations of the registrant, because of the existence of a parent-subsidiary relationship by means other than record ownership of voting stock. FCX also analyzed PT-FI’s acquisition of the Rio Tinto Joint Venture interests and concluded the transaction should be accounted for as an asset acquisition as substantially all of the fair value of the gross assets acquired is concentrated in mineral reserves and related long-lived mining assets. The acquisition was a single asset because substantially all of the acquired assets are linked to each other and cannot be physically removed without causing a significant diminution to the fair value of the other assets. PT-FI allocated the $3.5 billion purchase price to the assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The fair value estimates were based on, but not limited to, long-term metal price assumptions of $3.00 per pound of copper and $1,300 per ounce of gold; expected future cash flows based on estimated reserve quantities; costs to produce and develop the related reserves; current replacement cost for similar capacity for certain fixed assets; and appropriate discount rates using an estimated international cost of capital of 14 percent. The estimates were primarily based on significant inputs not observable in the market (as discussed above) and thus represent Level 3 measurements. The following table summarizes the allocation of the purchase price: Current assets $ 25 Property, plant, equipment and mine development costs: Mineral reserves 3,056 Mine development, infrastructure and other 1,559 Liabilities other than taxes (77 ) Deferred income taxes, net (1,063 ) a Total purchase price $ 3,500 a. Deferred income taxes have been recognized on the fair value adjustments to net assets using an Indonesia corporate income tax rate of 25 percent . Under applicable accounting guidance, changes in ownership that do not result in a change in control are accounted for as equity transactions with no impact on net income. The following table summarizes the consolidated impact of the transaction discussed above on FCX’s consolidated balance sheet as of December 21, 2018: Cash $ 458 Other current assets 23 Property, plant, equipment and mine development costs: Mineral reserves 3,056 Mine development, infrastructure and other 1,559 Liabilities other than taxes (77 ) Deferred income taxes, net (788 ) Noncontrolling interests (4,762 ) a Capital in excess of par value 531 a. Primarily reflects the approximate 40 percent economic interest in the former Rio Tinto Joint Venture for the period from 2023 through 2041, which was acquired by PTI and PT Inalum. FCX considered if the adjustment to capital in excess of par value was an indicator of impairment and after considering other factors, such as PT-FI’s historical results and projected undiscounted cash flows, concluded that it did not indicate a potential impairment at PT-FI. TF Holdings Limited - Discontinued Operations. On November 16, 2016 , FCX completed the sale of 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 the 24-month period beginning January 1, 2018. One-half of the proceeds from this transaction was used to repay borrowings under FCX’s unsecured bank term loan. The contingent consideration is considered a derivative, and the fair value will be adjusted through December 31, 2019. The fair value of the contingent consideration derivative (included in other assets in the consolidated balance sheets) was $57 million at December 31, 2018 , and $74 million at December 31, 2017. (Losses) gains resulting from changes in the fair value of the contingent consideration derivative ( $(17) million in 2018, $61 million in 2017 and $13 million in 2016) are included in net (loss) income from discontinued operations and primarily resulted from fluctuations in cobalt and copper prices. Future changes in the fair value of the contingent consideration derivative will continue to be recorded in discontinued operations. In accordance with accounting guidance, FCX reported the results of operations of TFHL as discontinued operations in the consolidated statements of operations because the disposal represents a strategic shift that had a major effect on operations. The consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as TFHL did not have any other comprehensive income (loss), and the consolidated statements of cash flows are reported on a combined basis without separately presenting discontinued operations. Net (loss) income from discontinued operations in the consolidated statements of operations consists of the following: Years Ended December 31, 2018 2017 2016 Revenues a $ — $ 13 $ 959 Costs and expenses: Production and delivery costs — — 833 Depreciation, depletion and amortization — — 80 b Interest expense allocated from parent — — 39 c Other costs and expenses, net — — 10 Income (loss) before income taxes and net (loss) gain on disposal — 13 (3 ) Net (loss) gain on disposal (15 ) d 57 d (198 ) e Net (loss) income before income taxes (15 ) 70 (201 ) (Provision for) benefit from income taxes — (4 ) 8 Net (loss) income from discontinued operations $ (15 ) $ 66 $ (193 ) a. In accordance with accounting guidance, amounts are net of recognition (eliminations) of intercompany sales totaling $13 million in 2017 and $(157) million in 2016 . b. In accordance with accounting guidance, depreciation, depletion and amortization was suspended subsequent to classification as assets held for sale, which occurred in May 2016. c. In accordance with accounting guidance, interest associated with FCX’s unsecured bank term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations. d. Includes a (loss) gain of $(17) million in 2018 and $61 million in 2017 associated with the change in the fair value of contingent consideration. e. Includes a charge of $33 million associated with the settlement agreement entered into with Gécamines, partly offset by a gain of $13 million for the fair value of contingent consideration. Cash flows from discontinued operations included in the consolidated statements of cash flows for the year ended December 31, 2016, follow: Net cash provided by operating activities $ 241 Net cash used in investing activities (73 ) Net cash used in financing activities (123 ) Increase in cash and cash equivalents $ 45 Assets Held for Sale. As a result of the 2016 sale of TFHL, FCX planned to sell its effective 56 percent interest in Freeport Cobalt and its wholly owned Kisanfu exploration project. Freeport Cobalt includes the large-scale cobalt refinery in Kokkola, Finland, and the related sales and marketing business. Kisanfu is a copper and cobalt exploration project, located near Tenke in the Democratic Republic of Congo (DRC). The assets and liabilities of Freeport Cobalt and Kisanfu were previously classified as held for sale in the consolidated balance sheet at December 31, 2017, and a $110 million estimated loss on disposal was recognized in 2016 when these assets were classified as held for sale (included in net gain on sales of assets in the consolidated statements of operations). FCX is continuing to assess opportunities for its Kisanfu copper and cobalt exploration project, including development of the project on its own or a sale of all or a minority stake in the project. In 2017, a gain of $13 million was recorded to adjust the Kisanfu assets to their carrying value when they were initially classified as held for sale. In second-quarter 2018, management concluded it no longer believes that it is probable an outright sale will occur in the near term and the related assets and liabilities should no longer be classified as held for sale. Because of this conclusion, revisions to the consolidated balance sheet as of December 31, 2017, included a $90 million increase to property, plant, equipment and mine development costs, net, with an offsetting reduction in current assets held for sale, and a $27 million increase to deferred income taxes, with an offsetting reduction in current liabilities held for sale. FCX continues to market the Freeport Cobalt assets, but concluded that they no longer qualified as held for sale as of December 31, 2018. In accordance with applicable accounting guidance, during 2018, FCX recorded a gain of $97 million to adjust the Freeport Cobalt assets to their carrying value when they were initially classified as held for sale. During fourth-quarter 2018, FCX also recorded $48 million of depreciation, depletion and amortization expense that was suspended while the assets were held for sale from December 2016 through September 2018. The carrying amounts of Freeport Cobalt’s major classes of assets and liabilities, which were reclassified from held for sale in the consolidated balance sheet at December 31, 2017, follow: Assets Cash and cash equivalents $ 79 Trade receivables 76 Inventories 256 Other receivables and current assets 20 Property, plant, equipment and mine development costs, net 60 Other assets 3 Total previously included in current assets held for sale $ 494 Liabilities Accounts payable and accrued liabilities $ 176 Accrued income taxes 18 Long-term debt 112 Deferred income taxes and asset retirement obligations 17 Total previously included in current liabilities held for sale $ 323 Morenci. In May 2016, FCX sold a 13 percent undivided interest in its Morenci unincorporated joint venture to SMM Morenci, Inc. for $1.0 billion in cash. FCX recorded a $576 million gain on the transaction and used losses to offset cash taxes on the transaction. A portion of the proceeds from the transaction was used to repay borrowings under FCX’s unsecured bank term loan and revolving credit facility. The Morenci unincorporated joint venture was owned 85 percent by FCX and 15 percent by Sumitomo Metal Mining Arizona, Inc. (Sumitomo). As a result of the transaction, the unincorporated joint venture is owned 72 percent by FCX, 15 percent by Sumitomo and 13 percent by SMM Morenci, Inc. (an affiliate of Sumitomo Metal Mining Co, Ltd.). Timok. In May 2016, FMC sold an interest in the Timok exploration project in Serbia to Global Reservoir Minerals Inc. (now known as Nevsun Resources, Ltd.) for consideration of $135 million in cash and contingent consideration of up to $107 million payable to FCX in stages upon achievement of defined development milestones. As a result of this transaction, FCX recorded a gain of $133 million in 2016, and no amounts were recorded for contingent consideration under the loss recovery approach. A portion of the proceeds from the transaction was used to repay borrowings under FCX’s unsecured bank term loan. Oil and Gas Operations. In 2018, FCX Oil & Gas LLC (FM O&G) disposed of certain property interests that resulted in the recognition of a gain of $27 million , primarily associated with the abandonment obligations that were assumed by the acquirer. In 2017, FM O&G sold certain property interests for cash consideration of $80 million (before closing adjustments). Under the full cost accounting rules, the sales resulted in the recognition of gains of $49 million in 2017 . In December 2016, FM O&G completed the sale of its onshore California oil and gas properties to Sentinel Peak Resources California LLC (Sentinel) for cash consideration of $592 million (before closing adjustments from the July 1, 2016, effective date) and contingent consideration of up to $150 million , consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. The contingent consideration is considered a derivative, and the fair value will be adjusted through the year 2020. The fair value of the contingent consideration derivative (included in other assets in the consolidated balance sheets) was $16 million at December 31, 2018 , and $34 million at December 31, 2017 . The contingent consideration of $50 million for 2018 was realized because the average Brent crude oil price exceeded $70 per barrel for the year and was included in other current assets in the consolidated balance sheet at December 31, 2018. Future changes in the fair value of the contingent consideration derivative will continue to be recorded in operating income. Sentinel assumed abandonment obligations associated with the properties. In December 2016, FM O&G completed the sale of its Deepwater Gulf of Mexico (GOM) oil and gas properties to Anadarko Petroleum Corporation (Anadarko) for cash consideration of $2.0 billion (before closing adjustments from the August 1, 2016, effective date) and up to $150 million in contingent payments. The contingent payments were recorded under the loss recovery approach, whereby contingent gains are recorded up to the amount of any loss on the sale, and reduced the loss on the sale in 2016. The contingent payments were included in other current assets ( $27 million ) and other assets ( $116 million ) at December 31, 2018, and in other current assets ( $24 million ) and other assets ( $126 million ) at December 31, 2017, in the consolidated balance sheets. The contingent payments will be received over time ( $7 million was collected in 2018) as Anadarko realizes future cash flows in connection with a third-party production handling agreement for an offshore platform. Anadarko assumed abandonment obligations associated with these properties. A portion of the proceeds from this transaction was used to repay FCX’s remaining outstanding borrowings under its unsecured bank term loan. Under the full cost accounting rules, the sales of the Deepwater GOM and onshore California oil and gas properties required gain (loss) recognition (net loss of $9 million in 2016, which was net of $150 million for contingent payments associated with the Deepwater GOM sale and $33 million for the fair value of contingent consideration from the onshore California sale) because of their significance to the full cost pool. In connection with the sale of the Deepwater GOM oil and gas properties, FM O&G entered into an agreement to amend the terms of the Plains Offshore Operations Inc. Preferred Stock that was reported as redeemable noncontrolling interest on FCX’s financial statements. The amendment provided FM O&G the right to call these securities for $582 million . FM O&G exercised this option in December 2016 and recorded a $199 million gain on redemption to retained earnings. In July 2016, FM O&G sold its Haynesville shale assets for cash consideration of $87 million , before closing adjustments. In June 2016, FM O&G sold certain oil and gas royalty interests to Black Stone Minerals, L.P. for cash consideration of $102 million , before closing adjustments. Under the full cost accounting rules, the proceeds from these transactions were recorded as a reduction of capitalized oil and gas properties, with no gain or loss recognition in 2016 because the reserves were not significant to the full cost pool. |
OWNERSHIP IN SUBSIDIARIES AND J
OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Ownership In Subsidiaries And Joint Ventures | OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES Ownership in Subsidiaries. FMC produces copper and molybdenum, with mines in North America and South America. At December 31, 2018 , FMC’s operating mines in North America were Morenci, Bagdad, Safford, Sierrita and Miami located in Arizona; Tyrone and Chino located in New Mexico; and Henderson and Climax located in Colorado. FCX has a 72 percent interest (subsequent to the sale of a 13 percent undivided interest on May 31, 2016) in Morenci (refer to “Joint Ventures – Sumitomo and SMM Morenci, Inc.”) and owns 100 percent of the other North America mines. At December 31, 2018 , operating mines in South America were Cerro Verde ( 53.56 percent owned) located in Peru and El Abra ( 51 percent owned) located in Chile. At December 31, 2018 , FMC’s net assets totaled $16.0 billion and its accumulated deficit totaled $14.0 billion . FCX had no loans outstanding to FMC at December 31, 2018 . FCX’s direct share ownership in PT-FI totaled 81.28 percent through December 21, 2018, and 48.76 percent thereafter. PTI owned 9.36 percent of PT-FI through December 21, 2018, and FCX owned 100 percent of PTI through December 21, 2018. Refer to Note 2 for a discussion of the PT-FI divestment. Refer to “Joint Ventures - Former Rio Tinto Joint Venture” for discussion of PT-FI’s unincorporated joint venture. At December 31, 2018 , PT-FI’s net assets totaled $10.5 billion and its retained earnings totaled $6.6 billion . FCX had $76 million in intercompany loans to PT-FI outstanding at December 31, 2018 . FCX owns 100 percent of the outstanding Atlantic Copper common stock. At December 31, 2018 , Atlantic Copper’s net liabilities totaled $23 million and its accumulated deficit totaled $436 million . FCX had $434 million in intercompany loans to Atlantic Copper outstanding at December 31, 2018 . FCX owns 100 percent of FM O&G, which, as of December 31, 2018, has oil and gas assets that primarily include natural gas production onshore in South Louisiana and oil production offshore California. At December 31, 2018 , FM O&G’s net liabilities totaled $14.2 billion and its accumulated deficit totaled $25.8 billion . FCX had $10.6 billion in intercompany loans to FM O&G outstanding at December 31, 2018 , which were fully impaired. Joint Ventures. FCX has the following unincorporated joint ventures. Former Rio Tinto Joint Venture. On December 21, 2018, PT-FI acquired Rio Tinto’s interest in the joint venture and is consolidating 100 percent of the Indonesia operations (refer to Note 2 for discussion of the PT-FI divestment). Pursuant to Rio Tinto’s previous joint venture agreement with PT-FI, Rio Tinto had a 40 percent interest in certain assets and future production exceeding specified annual amounts of copper, gold and silver through 2022 in Block A of PT-FI’s former Contract of Work (COW), and, after 2022, a 40 percent interest in all production from Block A. The amount due Rio Tinto for its share of joint venture cash flows was $30 million at December 31, 2017 . Sumitomo and SMM Morenci, Inc. FMC owns a 72 percent undivided interest in Morenci via an unincorporated joint venture. The remaining 28 percent is owned by Sumitomo ( 15 percent ) and SMM Morenci, Inc. ( 13 percent ). Each partner takes in kind its share of Morenci’s production. FMC purchased 178 million pounds of Morenci’s copper cathode from Sumitomo and SMM Morenci, Inc. at market prices for $519 million during 2018 . FMC had receivables from Sumitomo and SMM Morenci, Inc. totaling $13 million at December 31, 2018 , and $18 million at December 31, 2017 . |
INVENTORIES, INCLUDING LONG-TER
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Including Long-Term Mill And Leach Stockpiles | INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES The components of inventories follow: December 31, 2018 2017 Current inventories: Total materials and supplies, net a $ 1,528 $ 1,323 Mill stockpiles $ 282 $ 360 Leach stockpiles 1,171 1,062 Total current mill and leach stockpiles $ 1,453 $ 1,422 Raw materials (primarily concentrate) $ 260 $ 265 Work-in-process 192 154 Finished goods 1,326 985 Total product inventories $ 1,778 $ 1,404 Long-term inventories: Mill stockpiles $ 265 $ 300 Leach stockpiles 1,049 1,109 Total long-term inventories b $ 1,314 $ 1,409 a. Materials and supplies inventory was net of obsolescence reserves totaling $24 million at December 31, 2018 , and $29 million at December 31, 2017 . b. Estimated metals in stockpiles not expected to be recovered within the next 12 months. FCX recorded charges for adjustments to metals inventory carrying values of $4 million in 2018 , $8 million in 2017 and $36 million in 2016 (primarily for molybdenum inventories). |
PROPERTY, PLANT, EQUIPMENT AND
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant, Equipment and Mining Development Costs, Net | PROPERTY, PLANT, EQUIPMENT AND MINE DEVELOPMENT COSTS, NET The components of net property, plant, equipment and mine development costs follow: December 31, 2018 2017 Proven and probable mineral reserves $ 7,089 $ 3,974 VBPP 477 536 Mine development and other 8,195 6,213 Buildings and infrastructure 8,051 7,553 Machinery and equipment 12,985 12,330 Mobile equipment 4,010 3,766 Construction in progress 3,006 2,971 Oil and gas properties 27,292 27,453 Total 71,105 64,796 Accumulated depreciation, depletion, and amortization a (43,095 ) (41,802 ) Property, plant, equipment and mine development costs, net $ 28,010 $ 22,994 a. Includes accumulated amortization of $27.3 billion and $27.4 billion for oil and gas properties at December 31, 2018 and 2017, respectively. In 2018, FCX recorded $4.6 billion for proven and probable mineral reserves and other property, plant, equipment and mine development costs associated with the acquisition of PT Rio Tinto Indonesia (refer to Note 2 for further discussion). FCX recorded $1.7 billion for VBPP in connection with the FMC acquisition in 2007 (excluding $544 million associated with mining operations that were sold) and transferred $59 million to proven and probable mineral reserves during 2018 and $752 million prior to 2018 ( $112 million in 2017 ). Cumulative impairments of VBPP total $485 million , which were primarily recorded in 2008. Capitalized interest, which primarily related to FCX’s mining operations’ capital projects, totaled $96 million in 2018 , $121 million in 2017 and $92 million in 2016 . During 2017 and 2018, FCX concluded there were no events or changes in circumstances that would indicate that the carrying amount of its long-lived mining assets might not be recoverable. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets Disclosure | OTHER ASSETS The components of other assets follow: December 31, 2018 2017 Disputed tax assessments: a PT-FI $ 493 $ 417 Cerro Verde 183 185 Long-term receivable for taxes b 260 445 Intangible assets c 398 307 Investments: Assurance bond d 126 123 PT Smelting e 125 61 Fixed income and equity securities 29 30 Other 36 48 Contingent consideration associated with sales of assets f 189 234 Legally restricted funds g 181 189 Rio Tinto’s share of ARO — 68 Long-term employee receivables 20 20 Other 132 146 Total other assets $ 2,172 $ 2,273 a. Refer to Note 12 for further discussion. b. Includes tax overpayments and refunds not expected to be realized within the next 12 months (primarily associated with U.S. tax reform, refer to Note 11). c. Indefinite-lived intangible assets totaled $215 million at December 31, 2018 and 2017 . Accumulated amortization of definite-lived intangible assets totaled $51 million at December 31, 2018 , and $46 million at December 31, 2017 . d. Relates to PT-FI’s commitment for the development of a new smelter in Indonesia (refer to Note 13 for further discussion). e. PT-FI’s 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $11 million at December 31, 2018 , and $68 million at December 31, 2017 . Trade accounts receivable from PT Smelting totaled $176 million at December 31, 2018 , and $308 million at December 31, 2017 . f. Refer to Note 2 for further discussion. g. Includes $180 million at December 31, 2018 and 2017 , held in trusts for AROs related to properties in New Mexico (refer to Note 12 for further discussion). |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The components of accounts payable and accrued liabilities follow: December 31, 2018 2017 Accounts payable $ 1,661 $ 1,546 Salaries, wages and other compensation 273 241 Accrued interest a 183 168 PT-FI contingencies b 162 — Accrued taxes, other than income taxes 109 129 Pension, postretirement, postemployment and other employee benefits c 78 114 Deferred revenue 35 91 Accrued mining royalties 29 68 Other 95 140 Total accounts payable and accrued liabilities $ 2,625 $ 2,497 a. Third-party interest paid, net of capitalized interest, was $500 million in 2018 , $565 million in 2017 and $743 million in 2016 . b. Refer to Note 12 for further discussion. c. Refer to Note 9 for long-term portion. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT FCX’s debt at December 31, 2018 , included additions of $58 million ( $97 million at December 31, 2017 ) for unamortized fair value adjustments (primarily from the 2013 oil and gas acquisitions), and is net of reductions of $69 million ( $85 million at December 31, 2017 ) for unamortized net discounts and unamortized debt issuance costs. The components of debt follow: December 31, 2018 2017 Revolving credit facility $ — $ — Cerro Verde credit facility 1,023 1,269 Senior notes and debentures: Issued by FCX: 2.375% Senior Notes due 2018 — 1,408 3.100% Senior Notes due 2020 999 997 4.00% Senior Notes due 2021 597 596 6.75% Senior Notes due 2022 — 427 3.55% Senior Notes due 2022 1,886 1,884 6 7 / 8 % Senior Notes due 2023 768 776 3.875% Senior Notes due 2023 1,915 1,914 4.55% Senior Notes due 2024 845 845 5.40% Senior Notes due 2034 741 740 5.450% Senior Notes due 2043 1,843 1,842 Issued by FMC: 7 1 / 8 % Debentures due 2027 115 115 9½% Senior Notes due 2031 126 127 6 1 / 8 % Senior Notes due 2034 117 116 Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC): 6 7 / 8 % Senior Notes due 2023 — 54 Other 166 119 Total debt 11,141 13,229 Less current portion of debt (17 ) (1,414 ) Long-term debt $ 11,124 $ 11,815 Revolving Credit Facility. At December 31, 2018 , there were no borrowings outstanding and $13 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion , of which approximately $1.5 billion could be used for additional letters of credit. In April 2018, FCX, PT-FI and FM O&G LLC entered into a new $3.5 billion , five -year, unsecured revolving credit facility, which replaced FCX’s prior revolving credit facility (scheduled to mature on May 31, 2019). The new revolving credit facility is available until April 20, 2023, with $500 million available to PT-FI, and up to $1.5 billion available in letters of credit, and has a substantially similar structure and terms as the prior revolving credit facility. Interest on loans made under the new revolving credit facility is, at the option of FCX, determined based on the adjusted London Interbank Offered rate (LIBOR) or the alternate base rate (each as defined in the new revolving credit facility) plus a spread to be determined by reference to FCX’s credit ratings. Cerro Verde Credit Facility. In March 2014, Cerro Verde entered into a five -year, $1.8 billion senior unsecured credit facility that is nonrecourse to FCX and the other shareholders of Cerro Verde. In June 2017, Cerro Verde’s credit facility was amended (balance outstanding at the time of amendment was $1.275 billion ) to increase the commitment by $225 million to $1.5 billion , to modify the amortization schedule and to extend the maturity date to June 19, 2022. The amended credit facility amortizes in four installments, with $225 million due on December 31, 2020 (of which $5 million was prepaid during 2018 and $220 million was prepaid during 2017), $225 million due on June 30, 2021 (which was fully prepaid during 2018), $525 million due on December 31, 2021 (of which $20 million was prepaid during 2018), and the remaining balance due on the maturity date of June 19, 2022. All other terms, including the interest rates, remain the same. Interest under the term loan is based on LIBOR plus a spread based on Cerro Verde’s total net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio as defined in the agreement. The interest rate on Cerro Verde’s credit facility was 4.42 percent at December 31, 2018. Cerro Verde Shareholder Loans. In December 2014, Cerro Verde entered into loan agreements with three of its shareholders for borrowings up to $800 million . In June 2017, Cerro Verde used the proceeds from its amended credit facility plus available cash to repay the balance of its outstanding shareholder loans. The remaining availability for borrowings under these agreements totals $200 million . Senior Notes issued by FCX. In December 2016, FCX completed an exchange offer and consent solicitation associated with FM O&G LLC senior notes. Holders representing 89 percent of the outstanding FM O&G LLC senior notes tendered their notes and received new FCX senior notes. Each series of newly issued FCX senior notes have an interest rate that is identical to the interest rate of the applicable series of FM O&G LLC senior notes. The newly issued FCX senior notes are senior unsecured obligations of FCX and rank equally in right of payment with all other existing and future senior unsecured indebtedness of FCX. A summary of the tenders follows: Principal Amount Outstanding Principal Amount Tendered Book Value of New FCX Senior Notes 6.125% Senior Notes due 2019 $ 237 $ 179 $ 186 6½% Senior Notes due 2020 617 552 583 6.625% Senior Notes due 2021 261 228 242 6.75% Senior Notes due 2022 449 404 432 6 7 / 8 % Senior Notes due 2023 778 728 785 $ 2,342 $ 2,091 $ 2,228 The principal amounts were increased by $151 million to reflect the remaining unamortized acquisition-date fair market value adjustments associated with the 2013 oil and gas acquisitions. In addition, FCX paid $14 million in cash consideration for FM O&G LLC’s senior notes that were tendered, which reduced the book value of the new FCX senior notes. All of these senior notes, except the 6.75% Senior Notes due 2022 and the 6 7 / 8 % Senior Notes due 2023, were redeemed during 2017 and the 6.75% Senior Notes due 2022 were redeemed during 2018 (refer to Early Extinguishment and Exchanges of Debt in this note). The 6 7 / 8 % Senior Notes due 2023 are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to February 15, 2020, and at a specified redemption price thereafter. As of December 31, 2018, the book value of these senior notes totaled $768 million , which reflects the remaining unamortized acquisition-date fair market value adjustments ( $46 million ) and the cash consideration ( $6 million ) that are being amortized over the term of these senior notes and recorded as a net reduction of interest expense. In November 2014, FCX sold $750 million of 2.30% Senior Notes due 2017 (which matured and were repaid in 2017), $600 million of 4.00% Senior Notes due 2021, $850 million of 4.55% Senior Notes due 2024 and $800 million of 5.40% Senior Notes due 2034 for total net proceeds of $2.97 billion . In March 2013, in connection with the financing of the 2013 oil and gas acquisitions, FCX issued $6.5 billion of unsecured senior notes in four tranches. FCX sold $1.5 billion of 2.375% Senior Notes due March 2018 (which matured and were repaid in 2018), $1.0 billion of 3.100% Senior Notes due March 2020, $2.0 billion of 3.875% Senior Notes due March 2023 and $2.0 billion of 5.450% Senior Notes due March 2043 for total net proceeds of $6.4 billion . In February 2012, FCX sold $500 million of 2.15% Senior Notes due 2017 (which matured and were repaid in 2017) and $2.0 billion of 3.55% Senior Notes due 2022 for total net proceeds of $2.47 billion . The 3.100% Senior Notes due 2020 and 4.00% Senior Notes due 2021 are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price. The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, and beginning on the dates stated below at 100 percent of principal. Debt Instrument Date 3.55% Senior Notes due 2022 December 1, 2021 3.875% Senior Notes due 2023 December 15, 2022 4.55% Senior Notes due 2024 August 14, 2024 5.40% Senior Notes due 2034 May 14, 2034 5.450% Senior Notes due 2043 September 15, 2042 These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. Early Extinguishment and Exchanges of Debt. During 2018, FCX redeemed in full certain senior notes, and holders received the principal amounts together with the redemption premiums and accrued and unpaid interest up to the redemption date. A summary of these redemptions follows: Principal Amount Net Adjustments Book Value Redemption Value Gain FCX 6.75% Senior Notes due 2022 $ 404 $ 22 $ 426 $ 418 $ 8 FM O&G LLC 6 7 / 8 % Senior Notes due 2023 50 4 54 52 2 $ 454 $ 26 $ 480 $ 470 $ 10 Partially offsetting the $10 million gain were losses of $3 million , primarily associated with Cerro Verde’s prepayments in 2018 and entering into the new revolving credit facility in April 2018. During 2017, FCX redeemed in full or purchased in open-market transactions certain senior notes. A summary of these debt extinguishments follows: Principal Amount Net Adjustments Book Value Redemption Value Gain 2.375% Senior Notes due 2018 $ 74 $ — $ 74 $ 74 $ — FCX 6.125% Senior Notes due 2019 179 5 184 182 2 FM O&G LLC 6.125% Senior Notes due 2019 58 2 60 59 1 FCX 6½% Senior Notes due 2020 552 23 575 562 13 FM O&G LLC 6½% Senior Notes due 2020 65 3 68 66 2 FCX 6.625% Senior Notes due 2021 228 12 240 234 6 FM O&G LLC 6.625% Senior Notes due 2021 33 2 35 34 1 FM O&G LLC 6.750% Senior Notes due 2022 45 2 47 46 1 $ 1,234 $ 49 $ 1,283 $ 1,257 $ 26 Partially offsetting the $26 million gain was a net loss of $5 million , primarily associated with the modification of Cerro Verde’s credit facility in June 2017 and Cerro Verde’s prepayment in December 2017. During 2016, FCX redeemed certain senior notes in exchange for its common stock (refer to Note 10 for further discussion) and purchased certain senior notes in open-market transactions. A summary of these transactions follows: Principal Amount Net Adjustments Book Value Redemption Value Gain 2.30% Senior Notes due 2017 $ 20 $ — $ 20 $ 20 $ — 2.375% Senior Notes due 2018 18 — 18 18 — 3.55% Senior Notes due 2022 108 (1 ) 107 96 11 3.875% Senior Notes due 2023 77 — 77 68 9 5.40% Senior Notes due 2034 50 (1 ) 49 41 8 5.450% Senior Notes due 2043 134 (2 ) 132 106 26 $ 407 $ (4 ) $ 403 $ 349 $ 54 Partially offsetting the $54 million gain was $28 million in losses, primarily related to deferred debt issuance costs for an unsecured bank term loan that was repaid and costs associated with the December 2016 senior note exchange offer and consent solicitation. Guarantees. Refer to Note 17 for a discussion of FCX’s senior notes guaranteed by FM O&G LLC. Restrictive Covenants. FCX’s revolving credit facility contains customary affirmative covenants and representations, and also contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX’s or its subsidiaries’ abilities to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s revolving credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage. FCX’s leverage ratio (ratio of total debt to consolidated EBITDA, as defined in the credit agreement) cannot exceed 3.75 x, and the minimum interest expense coverage ratio (ratio of consolidated EBITDA to consolidated cash interest expense, as defined in the credit agreement) is 2.25 x. FCX’s senior notes contain limitations on liens. At December 31, 2018 , FCX was in compliance with all of its covenants. Maturities. Maturities of debt instruments based on the principal amounts and terms outstanding at December 31, 2018 , total $17 million in 2019 , $1.0 billion in 2020 , $1.1 billion in 2021 , $2.4 billion in 2022 , $2.7 billion in 2023 and $3.9 billion thereafter. |
OTHER LIABILITIES, INCLUDING EM
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Including Employee Benefits [Abstract] | |
Other Liabilities | OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS The components of other liabilities follow: December 31, 2018 2017 Pension, postretirement, postemployment and other employment benefits a $ 1,174 $ 1,154 Cerro Verde royalty dispute 631 368 Provision for tax positions 230 291 Other 195 199 Total other liabilities $ 2,230 $ 2,012 a. Refer to Note 7 for current portion. Pension Plans. Following is a discussion of FCX’s pension plans. FMC Plans. FMC has U.S. trusteed, non-contributory pension plans covering substantially all of its U.S. employees and some employees of its international subsidiaries hired before 2007. The applicable FMC plan design determines the manner in which benefits are calculated for any particular group of employees. Benefits are calculated based on final average monthly compensation and years of service or based on a fixed amount for each year of service. Non-bargained FMC employees hired after December 31, 2006, are not eligible to participate in the FMC U.S. pension plan. FCX’s funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time. FCX’s policy for determining asset-mix targets for the FMC plan assets held in a master trust (Master Trust) includes the periodic development of asset allocation studies and review of the liabilities to determine expected long-term rates of return and expected risk for various investment portfolios. FCX’s retirement plan administration and investment committee considers these studies in the formal establishment of asset-mix targets defined in the investment policy. FCX’s investment objective emphasizes diversification through both the allocation of the Master Trust assets among various asset classes and the selection of investment managers whose various styles are fundamentally complementary to one another and serve to achieve satisfactory rates of return. Diversification, by asset class and by investment manager, is FCX’s principal means of reducing volatility and exercising prudent investment judgment. FCX’s present target asset allocation approximates 41 percent equity investments (primarily global equities), 51 percent fixed income (primarily long-term treasury STRIPS or “separate trading or registered interest and principal securities”; long-term U.S. treasury/agency bonds; global fixed income securities; long-term, high-credit quality corporate bonds; high-yield and emerging markets fixed income securities; and fixed income debt securities) and 8 percent alternative investments (private real estate, real estate investment trusts and private equity). The expected rate of return on plan assets is evaluated at least annually, taking into consideration asset allocation, historical and expected future performance on the types of assets held in the Master Trust, and the current economic environment. Based on these factors, FCX expects the pension assets will earn an average of 6.5 percent per annum beginning January 1, 2019. The 6.5 percent estimation was based on a passive return on a compound basis of 6.0 percent and a premium for active management of 0.5 percent reflecting the target asset allocation and current investment array. For estimation purposes, FCX assumes the long-term asset mix for these plans generally will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension costs, the funded status of the plans and the need for future cash contributions. A lower-than-expected return on assets also would decrease plan assets and increase the amount of recorded pension costs in future years. When calculating the expected return on plan assets, FCX uses the market value of assets. Among the assumptions used to estimate the pension benefit obligation is a discount rate used to calculate the present value of expected future benefit payments for service to date. The discount rate assumption for FCX’s U.S. plans is designed to reflect yields on high-quality, fixed-income investments for a given duration. The determination of the discount rate for these plans is based on expected future benefit payments for service to date together with the Mercer Pension Discount Curve - Above Mean Yield. The Mercer Pension Discount Curve - Above Mean Yield is constructed from the bonds in the Mercer Pension Discount Curve that have a yield higher than the regression mean yield curve. The Mercer Pension Discount Curve consists of spot ( i.e. , zero coupon) interest rates at one-half-year increments for each of the next 30 years and is developed based on pricing and yield information for high-quality corporate bonds. Changes in the discount rate are reflected in FCX’s benefit obligation and, therefore, in future pension costs. SERP Plan. FCX has an unfunded Supplemental Executive Retirement Plan (SERP) for its chief executive officer. The SERP provides for retirement benefits payable in the form of a joint and survivor annuity, life annuity or an equivalent lump sum, which is determined on January 1 of the year in which the participant completed 25 years of credited service. The annuity will equal a percentage of the participant’s highest average compensation for any consecutive three-year period during the five years immediately preceding the completion of 25 years of credited service. The SERP benefit will be reduced by the value of all benefits from current and former retirement plans (qualified and nonqualified) sponsored by FCX, by FM Services Company, FCX’s wholly owned subsidiary, or by any predecessor employer (including FCX’s former parent company), except for benefits produced by accounts funded exclusively by deductions from the participant’s pay. PT-FI Plan. PT-FI has a defined benefit pension plan denominated in Indonesian rupiah covering substantially all of its Indonesian national employees. PT-FI funds the plan and invests the assets in accordance with Indonesian pension guidelines. The pension obligation was valued at an exchange rate of 14,409 rupiah to one U.S. dollar on December 31, 2018 , and 13,480 rupiah to one U.S. dollar on December 31, 2017 . Indonesian labor laws require that companies provide a minimum level of benefits to employees upon employment termination based on the reason for termination and the employee’s years of service. PT-FI’s pension benefit obligation includes benefits related to this law. PT-FI’s expected rate of return on plan assets is evaluated at least annually, taking into consideration its long-range estimated return for the plan based on the asset mix. Based on these factors, PT-FI expects its pension assets will earn an average of 7.75 percent per annum beginning January 1, 2019. The discount rate assumption for PT-FI’s plan is based on the Mercer Indonesian zero coupon bond yield curve derived from the Indonesian Government Security Yield Curve. Changes in the discount rate are reflected in PT-FI’s benefit obligation and, therefore, in future pension costs. Plan Information. FCX uses a measurement date of December 31 for its plans. Information for those plans where the projected benefit obligations and the accumulated benefit obligations exceed the fair value of plan assets follows: December 31, 2018 2017 Projected benefit obligation $ 2,177 $ 2,287 Accumulated benefit obligation 2,048 2,163 Fair value of plan assets 1,373 1,521 Information on the FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows: FCX PT-FI 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,343 $ 2,135 $ 240 $ 374 Service cost 44 44 13 20 Interest cost 84 91 14 23 Actuarial (gains) losses (124 ) 188 (19 ) (61 ) Plan amendments 4 — — — Foreign exchange (gains) losses (1 ) 3 (15 ) (2 ) Curtailment a — — — (62 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Benefit obligation at end of year 2,230 2,343 220 240 Change in plan assets: Fair value of plan assets at beginning of year 1,588 1,329 269 284 Actual return on plan assets (104 ) 230 (5 ) 11 Employer contributions b 70 145 4 28 Foreign exchange (losses) gains (1 ) 2 (17 ) (2 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Fair value of plan assets at end of year 1,433 1,588 238 269 Funded status $ (797 ) $ (755 ) $ 18 $ 29 Accumulated benefit obligation $ 2,101 $ 2,218 $ 181 $ 194 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.40 % 3.70 % 8.25 % 6.75 % Rate of compensation increase 3.25 % 3.25 % 4.00 % 4.00 % Balance sheet classification of funded status: Other assets $ 7 $ 11 $ 18 $ 29 Accounts payable and accrued liabilities (4 ) (4 ) — — Other liabilities (800 ) (762 ) — — Total $ (797 ) $ (755 ) $ 18 $ 29 a. Resulted from the 2017 PT-FI reductions in workforce (refer to Restructuring Charges in this note for further discussion). b. Employer contributions for 2019 are expected to approximate $74 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar). During 2018, the actuarial gain of $124 million for the FCX pension plans primarily resulted from the increase in the discount rate from 3.70 percent to 4.40 percent ( $205 million ), partially offset by new census data incorporated into the valuations ( $33 million ) and updated demographic assumptions ( $49 million ) mainly resulting from mortality updates. During 2017, the actuarial loss of $188 million for the FCX pension plans primarily resulted from the decrease in the discount rate from 4.40 percent to 3.70 percent and the update to the actuarial basis for lump sum conversions. During 2018, the actuarial gain of $19 million for the PT-FI pension plan primarily resulted from the increase in the discount rate from 6.75 percent to 8.25 percent and demographic experience gains. During 2017, the actuarial gain of $61 million resulted primarily because of the workforce reduction during 2017, experience gains and a decline in the rate of compensation increase, partially offset by the decrease in the discount rate from 8.25 percent to 6.75 percent . The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: a Discount rate 3.70 % 4.40 % 4.60 % Expected return on plan assets 6.50 % 7.00 % 7.25 % Rate of compensation increase 3.25 % 3.25 % 3.25 % Service cost $ 44 $ 44 $ 27 Interest cost 84 91 93 Expected return on plan assets (101 ) (93 ) (96 ) Amortization of net actuarial losses 49 49 42 Net periodic benefit cost $ 76 $ 91 $ 66 a. The assumptions shown relate only to the FMC plans. The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: Discount rate 6.75 % 8.25 % 9.00 % Expected return on plan assets 6.75 % 7.75 % 7.75 % Rate of compensation increase 4.00 % 8.00 % 9.40 % Service cost $ 13 $ 20 $ 27 Interest cost 14 23 29 Expected return on plan assets (19 ) (21 ) (17 ) Amortization of prior service cost 2 2 3 Amortization of net actuarial (gain) loss (1 ) — 5 Curtailment loss — 4 — Net periodic benefit cost $ 9 $ 28 $ 47 Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31: 2018 2017 Before Taxes After Taxes and Noncontrolling Interests Before Taxes After Taxes and Noncontrolling Interests Net actuarial loss $ 659 $ 539 $ 620 $ 412 Prior service costs 13 8 10 6 $ 672 $ 547 $ 630 $ 418 Plan assets are classified within a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), then to significant observable inputs (Level 2) and the lowest priority to significant unobservable inputs (Level 3). A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows: Fair Value at December 31, 2018 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 291 $ 291 $ — $ — $ — Fixed income securities 144 144 — — — Global fixed income securities 108 108 — — — Emerging markets equity 71 71 — — — Real estate property 55 55 — — — U.S. small-cap equity 54 54 — — — International small-cap equity 47 47 — — — U.S. real estate securities 41 41 — — — Short-term investments 15 15 — — — Fixed income: Government bonds 224 — — 224 — Corporate bonds 211 — — 211 — Global large-cap equity securities 94 — 94 — — Private equity investments 15 15 — — — Other investments 61 — 16 45 — Total investments 1,431 $ 841 $ 110 $ 480 $ — Cash and receivables 32 Payables (30 ) Total pension plan net assets $ 1,433 Fair Value at December 31, 2017 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 404 $ 404 $ — $ — $ — Fixed income securities 154 154 — — — Global fixed income securities 115 115 — — — Emerging markets equity 87 87 — — — International small-cap equity 72 72 — — — U.S. small-cap equity 67 67 — — — Real estate property 50 50 — — — U.S. real estate securities 45 45 — — — Short-term investments 12 12 — — — Fixed income: Government bonds 208 — — 208 — Corporate bonds 168 — — 168 — Global large-cap equity securities 119 — 119 — — Private equity investments 20 20 — — — Other investments 62 — 19 43 — Total investments 1,583 $ 1,026 $ 138 $ 419 $ — Cash and receivables 21 Payables (16 ) Total pension plan net assets $ 1,588 Following is a description of the pension plan asset categories and the valuation techniques used to measure fair value. There have been no changes to the techniques used to measure fair value. Commingled/collective funds are managed by several fund managers and are valued at the NAV per unit of the fund. For most of these funds, the majority of the underlying assets are actively traded securities. These funds (except the real estate property fund) require up to a 60-day notice for redemptions. The real estate property fund is valued at NAV using information from independent appraisal firms, who have knowledge and expertise about the current market values of real property in the same vicinity as the investments. Redemptions of the real estate property fund are allowed once per quarter, subject to available cash. Fixed income investments include government and corporate bonds held directly by the Master Trust. Fixed income securities are valued using a bid-evaluation price or a mid-evaluation price and, as such, are classified within Level 2 of the fair value hierarchy. 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. Common stocks included in global large-cap equity securities and preferred stocks included in other investments 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. Private equity investments are valued at NAV using information from general partners and have inherent restrictions on redemptions that may affect the ability to sell the investments at their NAV in the near term. A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 Government bonds $ 72 $ 72 $ — $ — Common stocks 72 72 — — Mutual funds 20 20 — — Total investments 164 $ 164 $ — $ — Cash and receivables a 75 Payables (1 ) Total pension plan net assets $ 238 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Government bonds $ 81 $ 81 $ — $ — Common stocks 78 78 — — Mutual funds 16 16 — — Total investments 175 $ 175 $ — $ — Cash and receivables a 94 Total pension plan net assets $ 269 a. Cash consists primarily of short-term time deposits. Following is a description of the valuation techniques used for pension plan assets measured at fair value associated with the PT-FI plan. There have been no changes to the techniques used to measure fair value. Common stocks, government bonds and mutual funds 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. The techniques described above may produce a fair value calculation that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with those used by other market participants, the use of different techniques or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The expected benefit payments for FCX’s and PT-FI’s pension plans follow: FCX PT-FI a 2019 $ 117 $ 45 2020 160 11 2021 123 19 2022 126 22 2023 128 30 2024 through 2028 664 160 a. Based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar. Postretirement and Other Benefits. FCX also provides postretirement medical and life insurance benefits for certain U.S. employees and, in some cases, employees of certain international subsidiaries. These postretirement benefits vary among plans, and many plans require contributions from retirees. The expected cost of providing such postretirement benefits is accrued during the years employees render service. The benefit obligation (funded status) for the postretirement medical and life insurance benefit plans consisted of a current portion of $13 million (included in accounts payable and accrued liabilities) and a long-term portion of $115 million (included in other liabilities) at December 31, 2018 , and a current portion of $14 million and a long-term portion of $129 million at December 31, 2017 . The discount rate used to determine the benefit obligation for these plans, which was determined on the same basis as FCX’s pension plans, was 4.20 percent at December 31, 2018 , and 3.50 percent at December 31, 2017 . Expected benefit payments for these plans total $13 million for 2019 , $13 million for 2020 , $13 million for 2021 , $12 million for 2022 , $11 million for 2023 and $47 million for 2024 through 2028 . The net periodic benefit cost charged to operations for FCX’s postretirement benefits (primarily for interest costs) totaled $5 million in 2018 , $5 million in 2017 and $4 million in 2016 . The discount rate used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s postretirement benefits was 3.50 percent in 2018 , 3.80 percent in 2017 and 4.10 percent in 2016 . The medical-care trend rates assumed the first year trend rate was 7.75 percent at December 31, 2018 , which declines over the next 15 years with an ultimate trend rate of 4.25 percent . FCX has a number of postemployment plans covering severance, long-term disability income, continuation of health and life insurance coverage for disabled employees or other welfare benefits. The accumulated postemployment benefit consisted of a current portion of $6 million (included in accounts payable and accrued liabilities) and a long-term portion of $39 million (included in other liabilities) at December 31, 2018 , and a current portion of $5 million and a long-term portion of $38 million at December 31, 2017 . FCX also sponsors savings plans for the majority of its U.S. employees. The plans allow employees to contribute a portion of their pre-tax income in accordance with specified guidelines. These savings plans are principally qualified 401(k) plans for all U.S. salaried and non-bargained hourly employees. In these plans, participants exercise control and direct the investment of their contributions and account balances among various investment options. FCX contributes to these plans at varying rates and matches a percentage of employee pre-tax deferral contributions up to certain limits, which vary by plan. For employees whose eligible compensation exceeds certain levels, FCX provides an unfunded defined contribution plan, which had a liability balance of $45 million at December 31, 2018 , and $46 million at December 31, 2017 , all of which was included in other liabilities. The costs charged to operations for employee savings plans totaled $75 million in 2018 ( none of which was capitalized), $65 million in 2017 ( none of which was capitalized) and $78 million in 2016 (of which $4 million was capitalized to oil and gas properties). FCX has other employee benefit plans, certain of which are related to FCX’s financial results, which are recognized in operating costs. Restructuring Charges. As a result of the first-quarter 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT-FI took actions to adjust its cost structure, reduce its workforce and slow investments in its underground development projects and new smelter. These actions included workforce reductions through furlough and voluntary retirement programs. Following the furlough and voluntary retirement programs, a significant number of employees and contractors elected to participate in an illegal strike action beginning in May 2017, and were subsequently deemed to have voluntarily resigned under the existing Indonesian laws and regulations. As a result, PT-FI recorded charges in 2017 to production costs of $120 million , and selling, general and administrative costs of $5 million for employee severance and related costs, and a pension curtailment loss of $4 million in production costs. In early 2016, FCX restructured its oil and gas business to reduce costs and in late 2016, FCX sold substantially all of its remaining oil and gas properties. As a result, FCX recorded charges of $85 million to selling, general and administrative expenses and $6 million to production costs for net restructuring-related costs in 2016. |
Employee Benefits | OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS The components of other liabilities follow: December 31, 2018 2017 Pension, postretirement, postemployment and other employment benefits a $ 1,174 $ 1,154 Cerro Verde royalty dispute 631 368 Provision for tax positions 230 291 Other 195 199 Total other liabilities $ 2,230 $ 2,012 a. Refer to Note 7 for current portion. Pension Plans. Following is a discussion of FCX’s pension plans. FMC Plans. FMC has U.S. trusteed, non-contributory pension plans covering substantially all of its U.S. employees and some employees of its international subsidiaries hired before 2007. The applicable FMC plan design determines the manner in which benefits are calculated for any particular group of employees. Benefits are calculated based on final average monthly compensation and years of service or based on a fixed amount for each year of service. Non-bargained FMC employees hired after December 31, 2006, are not eligible to participate in the FMC U.S. pension plan. FCX’s funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time. FCX’s policy for determining asset-mix targets for the FMC plan assets held in a master trust (Master Trust) includes the periodic development of asset allocation studies and review of the liabilities to determine expected long-term rates of return and expected risk for various investment portfolios. FCX’s retirement plan administration and investment committee considers these studies in the formal establishment of asset-mix targets defined in the investment policy. FCX’s investment objective emphasizes diversification through both the allocation of the Master Trust assets among various asset classes and the selection of investment managers whose various styles are fundamentally complementary to one another and serve to achieve satisfactory rates of return. Diversification, by asset class and by investment manager, is FCX’s principal means of reducing volatility and exercising prudent investment judgment. FCX’s present target asset allocation approximates 41 percent equity investments (primarily global equities), 51 percent fixed income (primarily long-term treasury STRIPS or “separate trading or registered interest and principal securities”; long-term U.S. treasury/agency bonds; global fixed income securities; long-term, high-credit quality corporate bonds; high-yield and emerging markets fixed income securities; and fixed income debt securities) and 8 percent alternative investments (private real estate, real estate investment trusts and private equity). The expected rate of return on plan assets is evaluated at least annually, taking into consideration asset allocation, historical and expected future performance on the types of assets held in the Master Trust, and the current economic environment. Based on these factors, FCX expects the pension assets will earn an average of 6.5 percent per annum beginning January 1, 2019. The 6.5 percent estimation was based on a passive return on a compound basis of 6.0 percent and a premium for active management of 0.5 percent reflecting the target asset allocation and current investment array. For estimation purposes, FCX assumes the long-term asset mix for these plans generally will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension costs, the funded status of the plans and the need for future cash contributions. A lower-than-expected return on assets also would decrease plan assets and increase the amount of recorded pension costs in future years. When calculating the expected return on plan assets, FCX uses the market value of assets. Among the assumptions used to estimate the pension benefit obligation is a discount rate used to calculate the present value of expected future benefit payments for service to date. The discount rate assumption for FCX’s U.S. plans is designed to reflect yields on high-quality, fixed-income investments for a given duration. The determination of the discount rate for these plans is based on expected future benefit payments for service to date together with the Mercer Pension Discount Curve - Above Mean Yield. The Mercer Pension Discount Curve - Above Mean Yield is constructed from the bonds in the Mercer Pension Discount Curve that have a yield higher than the regression mean yield curve. The Mercer Pension Discount Curve consists of spot ( i.e. , zero coupon) interest rates at one-half-year increments for each of the next 30 years and is developed based on pricing and yield information for high-quality corporate bonds. Changes in the discount rate are reflected in FCX’s benefit obligation and, therefore, in future pension costs. SERP Plan. FCX has an unfunded Supplemental Executive Retirement Plan (SERP) for its chief executive officer. The SERP provides for retirement benefits payable in the form of a joint and survivor annuity, life annuity or an equivalent lump sum, which is determined on January 1 of the year in which the participant completed 25 years of credited service. The annuity will equal a percentage of the participant’s highest average compensation for any consecutive three-year period during the five years immediately preceding the completion of 25 years of credited service. The SERP benefit will be reduced by the value of all benefits from current and former retirement plans (qualified and nonqualified) sponsored by FCX, by FM Services Company, FCX’s wholly owned subsidiary, or by any predecessor employer (including FCX’s former parent company), except for benefits produced by accounts funded exclusively by deductions from the participant’s pay. PT-FI Plan. PT-FI has a defined benefit pension plan denominated in Indonesian rupiah covering substantially all of its Indonesian national employees. PT-FI funds the plan and invests the assets in accordance with Indonesian pension guidelines. The pension obligation was valued at an exchange rate of 14,409 rupiah to one U.S. dollar on December 31, 2018 , and 13,480 rupiah to one U.S. dollar on December 31, 2017 . Indonesian labor laws require that companies provide a minimum level of benefits to employees upon employment termination based on the reason for termination and the employee’s years of service. PT-FI’s pension benefit obligation includes benefits related to this law. PT-FI’s expected rate of return on plan assets is evaluated at least annually, taking into consideration its long-range estimated return for the plan based on the asset mix. Based on these factors, PT-FI expects its pension assets will earn an average of 7.75 percent per annum beginning January 1, 2019. The discount rate assumption for PT-FI’s plan is based on the Mercer Indonesian zero coupon bond yield curve derived from the Indonesian Government Security Yield Curve. Changes in the discount rate are reflected in PT-FI’s benefit obligation and, therefore, in future pension costs. Plan Information. FCX uses a measurement date of December 31 for its plans. Information for those plans where the projected benefit obligations and the accumulated benefit obligations exceed the fair value of plan assets follows: December 31, 2018 2017 Projected benefit obligation $ 2,177 $ 2,287 Accumulated benefit obligation 2,048 2,163 Fair value of plan assets 1,373 1,521 Information on the FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows: FCX PT-FI 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,343 $ 2,135 $ 240 $ 374 Service cost 44 44 13 20 Interest cost 84 91 14 23 Actuarial (gains) losses (124 ) 188 (19 ) (61 ) Plan amendments 4 — — — Foreign exchange (gains) losses (1 ) 3 (15 ) (2 ) Curtailment a — — — (62 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Benefit obligation at end of year 2,230 2,343 220 240 Change in plan assets: Fair value of plan assets at beginning of year 1,588 1,329 269 284 Actual return on plan assets (104 ) 230 (5 ) 11 Employer contributions b 70 145 4 28 Foreign exchange (losses) gains (1 ) 2 (17 ) (2 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Fair value of plan assets at end of year 1,433 1,588 238 269 Funded status $ (797 ) $ (755 ) $ 18 $ 29 Accumulated benefit obligation $ 2,101 $ 2,218 $ 181 $ 194 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.40 % 3.70 % 8.25 % 6.75 % Rate of compensation increase 3.25 % 3.25 % 4.00 % 4.00 % Balance sheet classification of funded status: Other assets $ 7 $ 11 $ 18 $ 29 Accounts payable and accrued liabilities (4 ) (4 ) — — Other liabilities (800 ) (762 ) — — Total $ (797 ) $ (755 ) $ 18 $ 29 a. Resulted from the 2017 PT-FI reductions in workforce (refer to Restructuring Charges in this note for further discussion). b. Employer contributions for 2019 are expected to approximate $74 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar). During 2018, the actuarial gain of $124 million for the FCX pension plans primarily resulted from the increase in the discount rate from 3.70 percent to 4.40 percent ( $205 million ), partially offset by new census data incorporated into the valuations ( $33 million ) and updated demographic assumptions ( $49 million ) mainly resulting from mortality updates. During 2017, the actuarial loss of $188 million for the FCX pension plans primarily resulted from the decrease in the discount rate from 4.40 percent to 3.70 percent and the update to the actuarial basis for lump sum conversions. During 2018, the actuarial gain of $19 million for the PT-FI pension plan primarily resulted from the increase in the discount rate from 6.75 percent to 8.25 percent and demographic experience gains. During 2017, the actuarial gain of $61 million resulted primarily because of the workforce reduction during 2017, experience gains and a decline in the rate of compensation increase, partially offset by the decrease in the discount rate from 8.25 percent to 6.75 percent . The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: a Discount rate 3.70 % 4.40 % 4.60 % Expected return on plan assets 6.50 % 7.00 % 7.25 % Rate of compensation increase 3.25 % 3.25 % 3.25 % Service cost $ 44 $ 44 $ 27 Interest cost 84 91 93 Expected return on plan assets (101 ) (93 ) (96 ) Amortization of net actuarial losses 49 49 42 Net periodic benefit cost $ 76 $ 91 $ 66 a. The assumptions shown relate only to the FMC plans. The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: Discount rate 6.75 % 8.25 % 9.00 % Expected return on plan assets 6.75 % 7.75 % 7.75 % Rate of compensation increase 4.00 % 8.00 % 9.40 % Service cost $ 13 $ 20 $ 27 Interest cost 14 23 29 Expected return on plan assets (19 ) (21 ) (17 ) Amortization of prior service cost 2 2 3 Amortization of net actuarial (gain) loss (1 ) — 5 Curtailment loss — 4 — Net periodic benefit cost $ 9 $ 28 $ 47 Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31: 2018 2017 Before Taxes After Taxes and Noncontrolling Interests Before Taxes After Taxes and Noncontrolling Interests Net actuarial loss $ 659 $ 539 $ 620 $ 412 Prior service costs 13 8 10 6 $ 672 $ 547 $ 630 $ 418 Plan assets are classified within a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), then to significant observable inputs (Level 2) and the lowest priority to significant unobservable inputs (Level 3). A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows: Fair Value at December 31, 2018 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 291 $ 291 $ — $ — $ — Fixed income securities 144 144 — — — Global fixed income securities 108 108 — — — Emerging markets equity 71 71 — — — Real estate property 55 55 — — — U.S. small-cap equity 54 54 — — — International small-cap equity 47 47 — — — U.S. real estate securities 41 41 — — — Short-term investments 15 15 — — — Fixed income: Government bonds 224 — — 224 — Corporate bonds 211 — — 211 — Global large-cap equity securities 94 — 94 — — Private equity investments 15 15 — — — Other investments 61 — 16 45 — Total investments 1,431 $ 841 $ 110 $ 480 $ — Cash and receivables 32 Payables (30 ) Total pension plan net assets $ 1,433 Fair Value at December 31, 2017 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 404 $ 404 $ — $ — $ — Fixed income securities 154 154 — — — Global fixed income securities 115 115 — — — Emerging markets equity 87 87 — — — International small-cap equity 72 72 — — — U.S. small-cap equity 67 67 — — — Real estate property 50 50 — — — U.S. real estate securities 45 45 — — — Short-term investments 12 12 — — — Fixed income: Government bonds 208 — — 208 — Corporate bonds 168 — — 168 — Global large-cap equity securities 119 — 119 — — Private equity investments 20 20 — — — Other investments 62 — 19 43 — Total investments 1,583 $ 1,026 $ 138 $ 419 $ — Cash and receivables 21 Payables (16 ) Total pension plan net assets $ 1,588 Following is a description of the pension plan asset categories and the valuation techniques used to measure fair value. There have been no changes to the techniques used to measure fair value. Commingled/collective funds are managed by several fund managers and are valued at the NAV per unit of the fund. For most of these funds, the majority of the underlying assets are actively traded securities. These funds (except the real estate property fund) require up to a 60-day notice for redemptions. The real estate property fund is valued at NAV using information from independent appraisal firms, who have knowledge and expertise about the current market values of real property in the same vicinity as the investments. Redemptions of the real estate property fund are allowed once per quarter, subject to available cash. Fixed income investments include government and corporate bonds held directly by the Master Trust. Fixed income securities are valued using a bid-evaluation price or a mid-evaluation price and, as such, are classified within Level 2 of the fair value hierarchy. 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. Common stocks included in global large-cap equity securities and preferred stocks included in other investments 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. Private equity investments are valued at NAV using information from general partners and have inherent restrictions on redemptions that may affect the ability to sell the investments at their NAV in the near term. A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 Government bonds $ 72 $ 72 $ — $ — Common stocks 72 72 — — Mutual funds 20 20 — — Total investments 164 $ 164 $ — $ — Cash and receivables a 75 Payables (1 ) Total pension plan net assets $ 238 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Government bonds $ 81 $ 81 $ — $ — Common stocks 78 78 — — Mutual funds 16 16 — — Total investments 175 $ 175 $ — $ — Cash and receivables a 94 Total pension plan net assets $ 269 a. Cash consists primarily of short-term time deposits. Following is a description of the valuation techniques used for pension plan assets measured at fair value associated with the PT-FI plan. There have been no changes to the techniques used to measure fair value. Common stocks, government bonds and mutual funds 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. The techniques described above may produce a fair value calculation that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with those used by other market participants, the use of different techniques or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The expected benefit payments for FCX’s and PT-FI’s pension plans follow: FCX PT-FI a 2019 $ 117 $ 45 2020 160 11 2021 123 19 2022 126 22 2023 128 30 2024 through 2028 664 160 a. Based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar. Postretirement and Other Benefits. FCX also provides postretirement medical and life insurance benefits for certain U.S. employees and, in some cases, employees of certain international subsidiaries. These postretirement benefits vary among plans, and many plans require contributions from retirees. The expected cost of providing such postretirement benefits is accrued during the years employees render service. The benefit obligation (funded status) for the postretirement medical and life insurance benefit plans consisted of a current portion of $13 million (included in accounts payable and accrued liabilities) and a long-term portion of $115 million (included in other liabilities) at December 31, 2018 , and a current portion of $14 million and a long-term portion of $129 million at December 31, 2017 . The discount rate used to determine the benefit obligation for these plans, which was determined on the same basis as FCX’s pension plans, was 4.20 percent at December 31, 2018 , and 3.50 percent at December 31, 2017 . Expected benefit payments for these plans total $13 million for 2019 , $13 million for 2020 , $13 million for 2021 , $12 million for 2022 , $11 million for 2023 and $47 million for 2024 through 2028 . The net periodic benefit cost charged to operations for FCX’s postretirement benefits (primarily for interest costs) totaled $5 million in 2018 , $5 million in 2017 and $4 million in 2016 . The discount rate used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s postretirement benefits was 3.50 percent in 2018 , 3.80 percent in 2017 and 4.10 percent in 2016 . The medical-care trend rates assumed the first year trend rate was 7.75 percent at December 31, 2018 , which declines over the next 15 years with an ultimate trend rate of 4.25 percent . FCX has a number of postemployment plans covering severance, long-term disability income, continuation of health and life insurance coverage for disabled employees or other welfare benefits. The accumulated postemployment benefit consisted of a current portion of $6 million (included in accounts payable and accrued liabilities) and a long-term portion of $39 million (included in other liabilities) at December 31, 2018 , and a current portion of $5 million and a long-term portion of $38 million at December 31, 2017 . FCX also sponsors savings plans for the majority of its U.S. employees. The plans allow employees to contribute a portion of their pre-tax income in accordance with specified guidelines. These savings plans are principally qualified 401(k) plans for all U.S. salaried and non-bargained hourly employees. In these plans, participants exercise control and direct the investment of their contributions and account balances among various investment options. FCX contributes to these plans at varying rates and matches a percentage of employee pre-tax deferral contributions up to certain limits, which vary by plan. For employees whose eligible compensation exceeds certain levels, FCX provides an unfunded defined contribution plan, which had a liability balance of $45 million at December 31, 2018 , and $46 million at December 31, 2017 , all of which was included in other liabilities. The costs charged to operations for employee savings plans totaled $75 million in 2018 ( none of which was capitalized), $65 million in 2017 ( none of which was capitalized) and $78 million in 2016 (of which $4 million was capitalized to oil and gas properties). FCX has other employee benefit plans, certain of which are related to FCX’s financial results, which are recognized in operating costs. Restructuring Charges. As a result of the first-quarter 2017 regulatory restrictions and uncertainties regarding long-term investment stability, PT-FI took actions to adjust its cost structure, reduce its workforce and slow investments in its underground development projects and new smelter. These actions included workforce reductions through furlough and voluntary retirement programs. Following the furlough and voluntary retirement programs, a significant number of employees and contractors elected to participate in an illegal strike action beginning in May 2017, and were subsequently deemed to have voluntarily resigned under the existing Indonesian laws and regulations. As a result, PT-FI recorded charges in 2017 to production costs of $120 million , and selling, general and administrative costs of $5 million for employee severance and related costs, and a pension curtailment loss of $4 million in production costs. In early 2016, FCX restructured its oil and gas business to reduce costs and in late 2016, FCX sold substantially all of its remaining oil and gas properties. As a result, FCX recorded charges of $85 million to selling, general and administrative expenses and $6 million to production costs for net restructuring-related costs in 2016. |
STOCKHOLDERS' EQUITY AND STOCK-
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION FCX’s authorized shares of capital stock total 3.05 billion shares, consisting of 3.0 billion shares of common stock and 50 million shares of preferred stock. Common Stock. In November 2016, FCX completed a $1.5 billion registered at-the-market equity offering of common stock that was announced on July 27, 2016. FCX sold 116.5 million shares of its common stock at an average price of $12.87 per share, which generated gross proceeds of $1.5 billion (net proceeds of $1.48 billion after $15 million of commissions and expenses). During 2016, FCX issued 48.1 million shares of its common stock (with a value of $540 million , excluding $5 million of commissions paid by FCX) in connection with the settlement of two drilling rig contracts. Also during 2016, FCX negotiated private exchange transactions exempt from registration under the Securities Act of 1933, as amended, whereby 27.7 million shares of FCX’s common stock were issued (with an aggregate value of $311 million ), in exchange for $369 million principal amount of FCX’s senior notes. From January 1, 2016, through January 5, 2016, FCX sold 4.3 million shares of its common stock, which generated proceeds of $29 million (after $0.3 million of commissions and expenses). FCX used the proceeds to repay indebtedness. In February 2018, FCX’s Board of Directors (the Board) reinstated a cash dividend on FCX’s common stock with an annual rate of $0.20 per share. The declaration of dividends is at the discretion of the Board and will depend on FCX’s financial results, cash requirements, future prospects and other factors deemed relevant by the Board. Accumulated Other Comprehensive Loss. A summary of changes in the balances of each component of accumulated other comprehensive loss, net of tax, follows: Defined Benefit Plans Unrealized Losses on Securities Translation Adjustment Total Balance at January 1, 2016 $ (507 ) $ (6 ) $ 10 $ (503 ) Amounts arising during the period a,b (91 ) 2 — (89 ) Amounts reclassified c 44 — — 44 Balance at December 31, 2016 (554 ) (4 ) 10 (548 ) Amounts arising during the period a,b 7 1 — 8 Amounts reclassified c 53 — — 53 Balance at December 31, 2017 (494 ) (3 ) 10 (487 ) Adoption of new accounting standard for reclassification of income taxes (refer to Note 1) (79 ) — — (79 ) Amounts arising during the period a,b (84 ) — — (84 ) Amounts reclassified c 48 3 — 51 Sale of interest in PT-FI (refer to Note 2) (6 ) — — (6 ) Balance at December 31, 2018 $ (615 ) $ — $ 10 $ (605 ) a. Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(79) million for 2016 , $52 million for 2017 and $(87) million for 2018 . b. Includes tax provision totaling $11 million for 2016 , $45 million for 2017 and $4 million for 2018 . c. Includes amortization primarily related to actuarial losses, net of taxes of $4 million for 2016 , $5 million for 2017 and none for 2018. Stock Award Plans. FCX currently has awards outstanding under various stock-based compensation plans. The stockholder-approved 2016 Stock Incentive Plan (the 2016 Plan) provides for the issuance of stock options, SARs, restricted stock, RSUs, PSUs and other stock-based awards for up to 72 million common shares. As of December 31, 2018 , 58.6 million shares were available for grant under the 2016 Plan, and no shares were available under other plans. Stock-Based Compensation Cost. Compensation cost charged against earnings for stock-based awards for the years ended December 31 follows: 2018 2017 2016 Selling, general and administrative expenses $ 62 $ 55 $ 69 Production and delivery 12 16 16 Capitalized costs — — 4 Total stock-based compensation 74 71 89 Less capitalized costs — — (4 ) Tax benefit and noncontrolling interests’ share (4 ) a (4 ) a (3 ) a Impact on net income (loss) from continuing operations $ 70 $ 67 $ 82 a. Charges in the U.S. are not expected to generate a future tax benefit. Stock Options. Stock options granted under the plans generally expire 10 years after the date of grant. Stock options granted prior to 2018 generally vest in 25 percent annual increments and beginning in 2018 awards granted vest in 33 percent annual increments beginning one year from the date of grant. The award agreements provide that participants will receive the following year’s vesting upon retirement. Therefore, on the date of grant, FCX accelerates one year of amortization for retirement-eligible employees. Stock options provide for accelerated vesting only upon certain qualifying terminations of employment within one year following a change of control. A summary of stock options outstanding as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balance at January 1 48,014,688 $ 28.63 Granted 3,315,000 18.74 Exercised (801,706 ) 10.05 Expired/Forfeited (3,721,618 ) 39.26 Balance at December 31 46,806,364 27.40 4.5 $ 38 Vested and exercisable at December 31 39,919,885 29.80 3.8 $ 26 The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option valuation model. Expected volatility is based on implied volatilities from traded options on FCX’s common stock and historical volatility of FCX’s common stock. FCX uses historical data to estimate future option exercises, forfeitures and expected life. When appropriate, separate groups of employees who have similar historical exercise behavior are considered separately for valuation purposes. The expected dividend rate is calculated using the annual dividend (excluding supplemental dividends) at the date of grant. The risk-free interest rate is based on Federal Reserve rates in effect for bonds with maturity dates equal to the expected term of the option. Information related to stock options during the years ended December 31 follows: 2018 2017 2016 Weighted-average assumptions used to value stock option awards: Expected volatility 46.1 % 51.4 % 71.6 % Expected life of options (in years) 5.92 5.70 5.34 Expected dividend rate 1.2 % — — Risk-free interest rate 2.6 % 2.0 % 1.3 % Weighted-average grant-date fair value (per share) $ 7.84 $ 7.61 $ 2.64 Intrinsic value of options exercised $ 7 $ 5 $ — a Fair value of options vested $ 24 $ 25 $ 43 a. Rounds to less than $1 million. As of December 31, 2018 , FCX had $23 million of total unrecognized compensation cost related to unvested stock options expected to be recognized over a weighted-average period of approximately 1.4 years . Stock-Settled PSUs and RSUs. Beginning in 2014, FCX’s executive officers were granted PSUs that vest after three years. For the PSUs granted in 2017 and 2016, the final number of shares to be issued to the executive officers will be determined based on (i) FCX’s achievement of certain financial and operational performance metrics and (ii) FCX’s total shareholder return compared to the shareholder return of a peer group. The total grant date target shares related to the PSU grants were 0.6 million for 2017 and 1.5 million for 2016, of which the executive officers will earn (i) between 0 percent and 175 percent of the target shares based on achievement of financial and operating metrics and (ii) +/- 25 percent of the target shares based on FCX’s total shareholder return compared to a peer group. For the PSUs granted in 2018, the final number of shares to be issued to the executive officers will be determined based on (i) FCX’s achievement of certain financial metrics and (ii) FCX’s total shareholder return compared to the shareholder return of a peer group. The total grant date target shares related to the PSU grants were 0.5 million for 2018, of which the executive officers will earn (i) between 0 percent and 200 percent of the target shares based on achievement of financial metrics and (ii) +/- 25 percent of the target shares based on FCX’s total shareholder return compared to a peer group. All of FCX’s executive officers are retirement eligible, and their PSU awards are therefore non-forfeitable. As such, FCX charges the estimated fair value of the PSU awards to expense at the time the financial and operational, if applicable, metrics are established. FCX grants RSUs that vest over a period of three years to certain employees. FCX also grants RSUs to its directors. Beginning in December 2015, RSUs granted to directors vest on the first anniversary of the grant. Prior to December 2015, RSUs granted to directors generally vest over a period of four years. The fair value of the RSUs is amortized over the vesting period or the period until the director becomes retirement eligible, whichever is shorter. Upon a director’s retirement, all of their unvested RSUs immediately vest. For retirement-eligible directors, the fair value of RSUs is recognized in earnings on the date of grant. The award agreements provide for accelerated vesting of all RSUs held by directors if there is a change of control (as defined in the award agreements) and for accelerated vesting of all RSUs held by employees if they experience a qualifying termination within one year following a change of control. Dividends attributable to RSUs and PSUs accrue and are paid if the award vests. A summary of outstanding stock-settled RSUs and PSUs as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Awards Weighted-Average Grant-Date Fair Value Per Award Aggregate Intrinsic Value Balance at January 1 5,206,624 $ 18.48 Granted 2,127,785 a 19.11 Vested (753,806 ) 15.53 Forfeited (775,966 ) 11.91 Balance at December 31 5,804,637 19.97 $ 60 a. Excludes 187 thousand PSUs related to 2017 grants for which the performance metrics have not yet been established. The total fair value of stock-settled RSUs and PSUs granted was $41 million during 2018 , $32 million during 2017 and $37 million during 2016 . The total intrinsic value of stock-settled RSUs vested was $14 million during 2018 , $45 million during 2017 and $22 million during 2016 . As of December 31, 2018 , FCX had $6 million of total unrecognized compensation cost related to unvested stock-settled RSUs expected to be recognized over approximately 1.1 years . Cash-Settled RSUs and PSUs. Cash-settled RSUs are similar to stock-settled RSUs, but are settled in cash rather than in shares of common stock. These cash-settled RSUs generally vest over three years of service. The award agreements for cash-settled RSUs provide for accelerated vesting upon certain qualifying terminations of employment within one year following a change of control (as defined in the award agreements). In 2015, certain members of FM O&G’s senior management were granted cash-settled PSUs that vested over three years. The total grant date target shares related to the 2015 cash-settled PSU grants were 582 thousand shares, of which FM O&G’s senior management earned a total of 487 thousand shares at maturity during 2018 based on the achievement of applicable performance goals. The cash-settled RSUs and PSUs are classified as liability awards, and the fair value of these awards is remeasured each reporting period until the vesting dates. Dividends attributable to cash-settled RSUs and PSUs accrue and are paid if the award vests. A summary of outstanding cash-settled RSUs and PSUs as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Awards Weighted-Average Grant-Date Fair Value Per Award Aggregate Intrinsic Value Balance at January 1 1,307,235 $ 13.32 Granted 870,312 17.91 Vested (666,975 ) 14.12 Forfeited (23,706 ) 15.92 Balance at December 31 1,486,866 15.61 $ 15 The total grant-date fair value of cash-settled RSUs was $16 million during 2018 , $10 million during 2017 and $4 million during 2016 . The intrinsic value of cash-settled RSUs and PSUs vested was $12 million during 2018 , $27 million during 2017 and $15 million during 2016. The accrued liability associated with cash-settled RSUs consisted of a current portion of $7 million (included in accounts payable and accrued liabilities) and a long-term portion of $3 million (included in other liabilities) at December 31, 2018 , and a current portion of $11 million and a long-term portion of $5 million at December 31, 2017. Other Information. The following table includes amounts related to exercises of stock options and vesting of RSUs during the years ended December 31 : 2018 2017 2016 FCX shares tendered to pay the exercise price and/or the minimum required taxes a 195,322 1,041,937 906,120 Cash received from stock option exercises $ 8 $ 5 $ — b Actual tax benefit realized for tax deductions $ 3 $ 1 $ — b Amounts FCX paid for employee taxes $ 4 $ 15 $ 6 a. Under terms of the related plans, upon exercise of stock options and vesting of stock-settled RSUs, employees may tender FCX shares to pay the exercise price and/or the minimum required taxes. b. Rounds to less than $1 million. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Geographic sources of income (losses) before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following: 2018 2017 2016 U.S. $ 390 $ 20 $ (5,179 ) Foreign 3,502 2,882 1,707 Total $ 3,892 $ 2,902 $ (3,472 ) Income taxes are provided on the earnings of FCX’s material foreign subsidiaries under the assumption that these earnings will be distributed. FCX has not provided deferred income taxes for other differences between the book and tax carrying amounts of its investments in material foreign subsidiaries as FCX considers its ownership positions to be permanent in duration, and quantification of the related deferred tax liability is not practicable. FCX’s (provision for) benefit from income taxes for the years ended December 31 consist of the following: 2018 2017 2016 Current income taxes: Federal $ 46 a $ (3 ) $ 164 State 1 (10 ) 17 Foreign (1,445 ) a (1,426 ) (352 ) Total current (1,398 ) (1,439 ) (171 ) Deferred income taxes: Federal (106 ) 64 137 State (8 ) 10 41 Foreign (102 ) 89 (451 ) Total deferred (216 ) 163 (273 ) Adjustments 504 b 393 c 13 d Operating loss carryforwards 119 — 60 Provision for income taxes $ (991 ) $ (883 ) $ (371 ) a. In 2018, FCX completed its analysis of the Act and recognized benefits totaling $123 million ( $76 million to the U.S. tax provision and $47 million to PT-FI’s tax provision) associated with alternative minimum tax (AMT) credit refunds. b. Includes net tax credits totaling $504 million resulting from the reduction in PT-FI's statutory tax rates in accordance with PT-FI’s new special mining license (IUPK). c. Includes net tax credits totaling $393 million associated with the Act, including $272 million for the reversal of valuation allowances associated with AMT credit refunds and $121 million for a decrease in corporate income tax rates. d. Benefit related to changes in Peruvian tax rules. A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows: 2018 2017 2016 Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ (817 ) (21 )% $ (1,016 ) (35 )% $ 1,215 (35 )% Valuation allowance, net 129 a 3 28 1 (1,680 ) b 48 Foreign tax credit limitation (195 ) (5 ) (159 ) (5 ) (598 ) 17 U.S. tax reform c 123 3 393 14 — — Cerro Verde royalty dispute d (55 ) (1 ) (129 ) (5 ) — — Change in PT-FI tax rates 504 13 — — — — Impairment of oil and gas properties — — — — 520 e (15 ) Percentage depletion 141 4 227 8 211 (6 ) Withholding and other impacts on foreign earnings (232 ) (6 ) (216 ) (7 ) (93 ) 3 Effect of foreign rates different than the U.S. federal statutory rate (494 ) (13 ) 17 1 45 (1 ) State income taxes 7 1 (5 ) (1 ) 46 b (1 ) Other items, net (102 ) (3 ) (23 ) (1 ) (37 ) 1 Provision for income taxes $ (991 ) (25 )% $ (883 ) (30 )% $ (371 ) 11 % a. Refer to “Valuation Allowance” below for discussion of changes. b. Includes tax charges totaling $1.6 billion in 2016 as a result of the impairment to U.S. oil and gas properties to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit. c. Refer to discussion of 2017 U.S. Tax Reform below. d. Refer to Note 12 for further discussion of the Cerro Verde royalty dispute. e. Reflects a loss under U.S. federal income tax law related to the impairment of investments in oil and gas properties. FCX paid federal, state and foreign income taxes totaling $2 billion in 2018 , $702 million in 2017 and $203 million in 2016 (including $27 million for discontinued operations). FCX received refunds of federal, state and foreign income taxes of $108 million in 2018 , $329 million in 2017 and $247 million in 2016 . The components of deferred taxes follow: December 31, 2018 2017 Deferred tax assets: Foreign tax credits $ 1,814 $ 2,129 Accrued expenses 881 789 Oil and gas properties — 236 Net operating losses 2,235 2,043 Employee benefit plans 245 248 Other 212 260 Deferred tax assets 5,387 5,705 Valuation allowances (4,507 ) (4,575 ) Net deferred tax assets 880 1,130 Deferred tax liabilities: Property, plant, equipment and mine development costs (4,200 ) (3,754 ) Undistributed earnings (578 ) (811 ) Other (130 ) (223 ) Total deferred tax liabilities (4,908 ) (4,788 ) Net deferred tax liabilities $ (4,028 ) $ (3,658 ) Tax Attributes. At December 31, 2018 , FCX had (i) U.S. foreign tax credits of $1.8 billion that will expire between 2019 and 2027, (ii) U.S. federal net operating losses of $6.0 billion that expire between 2036 and 2037, (iii) U.S. state net operating losses of $10.5 billion that expire between 2019 and 2038, (iv) Spanish net operating losses of $537 million that can be carried forward indefinitely and (v) Indonesian net operating losses of $975 million that expire between 2020 and 2025. Valuation Allowance. On the basis of available information at December 31, 2018 , including positive and negative evidence, FCX has provided valuation allowances for certain of its deferred tax assets where it believes it is more likely than not that some portion or all of such assets will not be realized. Valuation allowances totaled $4.5 billion at December 31, 2018 , and $4.6 billion at December 31, 2017 , and covered all of FCX’s U.S. foreign tax credits, U.S. federal net operating losses, foreign net operating losses and substantially all of its U.S. state net operating losses. FCX’s valuation allowances at December 31, 2017 , also covered all of its U.S. federal capital losses. The valuation allowance related to FCX’s U.S. foreign tax credits totaled $1.8 billion at December 31, 2018 . FCX has operations in tax jurisdictions where statutory income taxes and withholding taxes are in excess of the U.S. federal income tax rate. Valuation allowances are recorded on foreign tax credits for which no benefit is expected to be realized. The valuation allowance related to FCX’s U.S. federal, state and foreign net operating losses and foreign deferred tax assets totaled $2.2 billion and $458 million , respectively, at December 31, 2018 . Net operating losses and deferred tax assets represent future deductions for which a benefit will only be realized to the extent these deductions offset future income. FCX develops an estimate of which future tax deductions will be realized and provides a valuation allowance to the extent these deductions are not expected to be realized in future periods. Valuation allowances will continue to be carried on U.S. foreign tax credits, U.S. federal, state and foreign net operating losses and U.S. federal, state and foreign deferred tax assets, until such time that (i) FCX generates taxable income against which any of the assets, credits or net operating losses can be used, (ii) forecasts of future income provide sufficient positive evidence to support reversal of the valuation allowances or (iii) FCX identifies a prudent and feasible means of securing the benefit of the assets, credits or net operating losses that can be implemented. The $68 million net decrease in the valuation allowances during 2018 primarily related to decreases totaling $305 million in U.S. foreign tax credits associated with expirations and 2017 tax reform adjustments, and $54 million in U.S. federal net operating losses associated with 2018 usage and 2017 tax reform adjustments, partly offset by a $244 million increase in foreign net operating losses for which no benefit is expected to be realized. 2017 U.S. Tax Reform. The Act, which was enacted on December 22, 2017, included significant modifications to then-existing U.S. tax laws and created many new complex tax provisions. The Act reduced the corporate income tax rate to 21 percent , eliminated the corporate AMT, provided for a refund of AMT credits, maintained hard minerals percentage depletion, allowed for immediate expensing of certain qualified property and generally broadened the tax base. The Act also created a territorial tax system (with a one-time mandatory tax on previously deferred foreign earnings), created anti-base erosion rules that require companies to pay a minimum tax on foreign earnings and may disallow certain payments from U.S. corporations to foreign related parties. In December 2018, FCX completed its analysis of the Act and recognized benefits totaling $123 million associated with AMT credit refunds. In 2017, FCX recorded net tax benefits related to specific provisions of the Act totaling $393 million , reflecting the reversal of valuation allowances associated with anticipated refunds of AMT credits through 2021 ( $272 million ) and a decrease in corporate income tax rates ( $121 million ). Elimination of Corporate AMT and Refund of AMT Credits. For tax years beginning after December 31, 2017, the corporate AMT was repealed. FCX has historically incurred an AMT liability in excess of regular tax liability, resulting in accumulated AMT credits totaling $490 million as of December 31, 2017. The Act allows the use of existing corporate AMT credits to offset regular tax liability for tax years after December 31, 2017. AMT credits in excess of regular liability are refundable in the years 2018 through 2021. Prior to the Act, FCX recognized a $110 million benefit for AMT credits expected to be refunded. As a result of the Act, FCX recognized a provisional net benefit of $272 million in 2017, consisting of a $380 million tax benefit for historical AMT credits expected to be refunded, partially offset by a $108 million tax charge to establish a reserve for uncertain tax positions. At December 31, 2018, FCX recognized an additional $123 million net benefit for historical AMT credits consisting of $51 million in additional refundable credits and $72 million in reduction to reserves. Reduction in Corporate Income Tax Rate. The Act reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent . While applicable for years after December 31, 2017, existing income tax accounting guidance requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. In fourth-quarter 2017, FCX recognized this change in the federal statutory rate and recorded a provisional net benefit of $121 million , consisting of a $1.1 billion tax benefit associated with changes in related valuation allowances, partly offset by a $975 million tax charge related to existing net U.S. federal deferred tax assets and liabilities. In fourth-quarter 2018, FCX finalized the impact of this change in federal statutory rate resulting in a net zero impact, consisting of a $32 million tax benefit associated with changes in related valuation allowances offset by a $32 million tax charge related to existing net U.S. federal deferred tax assets and liabilities. Transition Tax on Previously Deferred Foreign Earnings. Under the Act, U.S. shareholders owning at least 10 percent of a foreign subsidiary generally must recognize taxable income equal to the shareholder’s pro rata share of accumulated post-1986 historical Earnings and Profits (E&P). The portion of any E&P associated with cash or cash equivalents is taxed at a rate of 15.5 percent , while any remaining E&P is taxed at a reduced rate of 8 percent . The resulting tax liability (Transition Tax) may be reduced by available foreign tax credits. Because FCX operates in foreign jurisdictions with statutory tax rates in excess of the U.S. historical statutory tax rate of 35 percent , the December 31, 2017, Transition Tax was fully offset by foreign tax credits generated in 2017. During fourth-quarter 2018, additional guidance was released by the IRS clarifying the computation of Transition Tax liability. As a result of this additional guidance, FCX recognized a $29 million tax charge related to Transition Tax for 2018. Anti-Base Erosion Rules. For tax years that begin after December 31, 2017, applicable taxpayers are required to pay the Base Erosion Anti-Abuse Tax (BEAT). BEAT is an alternative tax calculation that disallows deduction of certain amounts paid or accrued by a U.S. taxpayer to a foreign related party. The BEAT provisions do not currently impact FCX’s computation of U.S. federal taxable income. The Act also included provisions to tax a new class of income called Global Intangible Low-Taxed Income (GILTI). Under the new GILTI provisions, FCX will use U.S. federal net operating loss carryforwards in current and future tax years against income that would otherwise not generate a net tax liability absent the availability of net operating losses. As a result, FCX does not consider GILTI to be a source of income against which a benefit for U.S. federal net operating losses can be realized. Under U.S. generally accepted accounting principles, FCX is allowed to make an accounting policy choice of either (i) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred or (ii) factoring such amounts into the measurement of deferred taxes. FCX has elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred. Executive Compensation Limitation. For tax years beginning after December 31, 2017, tax deductible compensation of covered employees is limited to $1 million . In addition, the definition of covered employees is revised to include the principal executive officer, the principal financial officer, and the three other highest paid officers. If an individual is a covered employee for a tax year beginning after December 31, 2016, the individual remains a covered employee for all future years. Under a transition rule, the changes do not apply to any remuneration under specified contracts in effect on November 2, 2017. During fourth-quarter 2018, FCX determined that only immaterial adjustments were needed in relation to future disallowance of deferred executive compensation balances as of December 31, 2017. Other. As of December 31, 2018 , FCX has offset $5.4 billion of foreign source income with U.S. source losses. Under existing U.S. tax law, FCX has the ability to re-characterize $5.4 billion of future U.S. source income into foreign source income. While utilization of U.S. foreign tax credits is dependent upon FCX generating future U.S. tax liabilities within the carryforward period, this re-sourcing may permit FCX to utilize up to $1.1 billion of the $1.8 billion foreign tax credits that would otherwise expire unused. Other Events. On December 21, 2018, FCX completed the transaction with the Indonesian government regarding PT-FI’s long-term mining rights and share ownership. Concurrent with closing the transaction, the Indonesian government granted PT-FI an IUPK to replace its former COW. Under the terms of the IUPK, PT-FI is subject to a 25 percent corporate income tax rate and a 10 percent profits tax on net income beginning in 2019. As a result of the change in statutory tax rate applicable to deferred income tax liabilities, during fourth-quarter 2018, FCX recognized a tax credit of $504 million . SUNAT, the Peru national tax authority, has assessed mining royalties on ore processed by the Cerro Verde concentrator for the period December 2006 to December 2013, which Cerro Verde has contested on the basis that its 1998 stability agreement exempts from royalties all minerals extracted from its mining concessions, irrespective of the method used for processing those minerals. Refer to Note 12 for further discussion of the Cerro Verde royalty dispute and net charges recorded in 2018 and 2017. In December 2016, the Peruvian parliament passed tax legislation that, in part, modified the applicable tax rates established in its December 2014 tax legislation, which progressively decreased the corporate income tax rate from 30 percent in 2014 to 26 percent in 2019 and thereafter, and also increased the dividend tax rate on distributions from 4.1 percent in 2014 to 9.3 percent in 2019 and thereafter. Under the tax legislation, which was effective January 1, 2017, the corporate income tax rate was 29.5 percent , and the dividend tax rate on distributions of earnings was 5 percent . Cerro Verde’s current mining stability agreement subjects FCX to a stable income tax rate of 32 percent through the expiration of the agreement on December 31, 2028. The tax rate on dividend distributions is not stabilized by the agreement. In September 2014, the Chilean legislature approved a tax reform package that implemented a dual tax system, which was amended in January 2016. Under previous rules, FCX’s share of income from Chilean operations was subject to an effective 35 percent tax rate allocated between income taxes and dividend withholding taxes. Under the amended tax reform package, FCX’s Chilean operation is subject to the “Partially-Integrated System,” resulting in FCX’s share of income from El Abra being subject to progressively increasing effective tax rates of 35 percent through 2019 and 44.5 percent in 2020 and thereafter. In November 2017, the progression of increasing tax rates was delayed by the Chilean legislature so that the 35 percent rate continues through 2021 increasing to 44.5 percent in 2022 and thereafter. In 2010, the Chilean legislature approved an increase in mining royalty taxes to help fund earthquake reconstruction activities, education and health programs. Mining royalty taxes at FCX’s El Abra mine were 4 percent for the years 2013 through 2017. Beginning in 2018, and through 2023, rates moved to a sliding scale of 5 to 14 percent (depending on a defined operational margin). Uncertain Tax Positions. FCX accounts for uncertain income tax positions using a threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FCX’s policy associated with uncertain tax positions is to record accrued interest in interest expense and accrued penalties in other income and expense rather than in the provision for income taxes. A summary of the activities associated with FCX’s reserve for unrecognized tax benefits for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 390 $ 101 $ 110 Additions: Prior year tax positions 100 302 5 Current year tax positions 14 6 28 Decreases: Prior year tax positions (86 ) (1 ) (3 ) Settlements with taxing authorities (9 ) (17 ) — Lapse of statute of limitations (5 ) (1 ) (39 ) Balance at end of year $ 404 $ 390 $ 101 The total amount of accrued interest and penalties associated with unrecognized tax benefits included in the consolidated balance sheets was $186 million at December 31, 2018 , primarily relating to unrecognized tax benefits associated with royalties and other related mining taxes, and $22 million at December 31, 2017, and $19 million at December 31, 2016. The reserve for unrecognized tax benefits of $404 million at December 31, 2018 , included $296 million ( $147 million net of income tax benefits and valuation allowances) that, if recognized, would reduce FCX’s provision for income taxes. Changes to the reserve for unrecognized tax benefits associated with current year tax positions were primarily related to uncertainties associated with FCX ’ s tax treatment of social welfare payments and cost recovery methods. Changes in the reserve for unrecognized tax benefits associated with prior year tax positions were primarily related to uncertainties associated with royalties and other related mining taxes and AMT credit refunds. Changes to the reserve for unrecognized tax benefits associated with the lapse of statute of limitations were primarily related to social welfare payments. There continues to be uncertainty related to the timing of settlements with taxing authorities, but if additional settlements are agreed upon during 2019 , FCX could experience a change in its reserve for unrecognized tax benefits. FCX or its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows: Jurisdiction Years Subject to Examination Additional Open Years U.S. Federal N/A 2014-2018 Indonesia 2008, 2011-2016 2017-2018 Peru 2012-2013 2014-2018 Chile 2016-2017 2018 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Environmental. FCX subsidiaries are subject to various national, state and local environmental laws and regulations that govern emissions of air pollutants; discharges of water pollutants; generation, handling, storage and disposal of hazardous substances, hazardous wastes and other toxic materials; and remediation, restoration and reclamation of environmental contamination. FCX subsidiaries that operate in the U.S. also are subject to potential liabilities arising under CERCLA and similar state laws that impose responsibility on current and previous owners and operators of a facility for the remediation of hazardous substances released from the facility into the environment, including damages to natural resources, in some cases irrespective of when the damage to the environment occurred or who caused it. Remediation liability also extends to persons who arranged for the disposal of hazardous substances or transported the hazardous substances to a disposal site selected by the transporter. These liabilities are often shared on a joint and several basis, meaning that each responsible party is fully responsible for the remediation, if some or all of the other historical owners or operators no longer exist, do not have the financial ability to respond or cannot be found. As a result, because of FCX’s acquisition of FMC in 2007, many of the subsidiary companies FCX now owns are responsible for a wide variety of environmental remediation projects throughout the U.S., and FCX expects to spend substantial sums annually for many years to address those remediation issues. Certain FCX subsidiaries have been advised by the U.S. Environmental Protection Agency (EPA), the Department of the Interior, the Department of Agriculture and various state agencies that, under CERCLA or similar state laws and regulations, they may be liable for costs of responding to environmental conditions at a number of sites that have been or are being investigated to determine whether releases of hazardous substances have occurred and, if so, to develop and implement remedial actions to address environmental concerns. FCX is also subject to claims where the release of hazardous substances is alleged to have damaged natural resources (NRD) and to litigation by individuals allegedly exposed to hazardous substances. As of December 31, 2018 , FCX had more than 100 active remediation projects, including NRD claims, in 26 U.S. states. A summary of changes in estimated environmental obligations for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 1,439 $ 1,221 $ 1,215 Accretion expense a 100 84 81 Additions b 56 241 26 Reductions b — (43 ) (43 ) Spending (84 ) (64 ) (58 ) Balance at end of year 1,511 1,439 1,221 Less current portion (132 ) (134 ) (129 ) Long-term portion $ 1,379 $ 1,305 $ 1,092 a. Represents accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis. b. Adjustments to environmental obligations that do not provide future economic benefits are charged to operating income. Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments. Estimated future environmental cash payments (on an undiscounted and unescalated basis) total $132 million in 2019 , $117 million in 2020 , $119 million in 2021 , $88 million in 2022 , $100 million in 2023 and $2.7 billion thereafter. The amount and timing of these estimated payments will change as a result of changes in regulatory requirements, changes in scope and timing of remediation activities, the settlement of environmental matters and as actual spending occurs. At December 31, 2018 , FCX’s environmental obligations totaled $1.5 billion , including $1.4 billion recorded on a discounted basis for those obligations assumed in the FMC acquisition at fair value. On an undiscounted and unescalated basis, these obligations totaled $3.3 billion . FCX estimates it is reasonably possible that these obligations could range between $2.7 billion and $3.7 billion on an undiscounted and unescalated basis. At December 31, 2018 , the most significant environmental obligations were associated with the Pinal Creek site in Arizona; the Newtown Creek site in New York City; historical smelter sites principally located in Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma and Pennsylvania; and uranium mining sites in the western U.S. The recorded environmental obligations for these sites totaled $1.3 billion at December 31, 2018 . FCX may also be subject to litigation brought by private parties, regulators and local governmental authorities related to these historical sites. A discussion of these sites follows. Pinal Creek. The Pinal Creek site was listed under the Arizona Department of Environmental Quality’s (ADEQ) Water Quality Assurance Revolving Fund program in 1989 for contamination in the shallow alluvial aquifers within the Pinal Creek drainage near Miami, Arizona. Since that time, environmental remediation has been performed by members of the Pinal Creek Group, consisting of Freeport-McMoRan Miami Inc. (Miami), an indirect wholly owned subsidiary of FCX, and two other companies. Pursuant to a 2010 settlement agreement, Miami agreed to take full responsibility for future groundwater remediation at the Pinal Creek site, with limited exceptions. Remediation work consisting of groundwater extraction and treatment plus source control capping are expected to continue for many years in the future. Newtown Creek. From the 1930s until 1964, Phelps Dodge Refining Corporation (PDRC), an indirect wholly owned subsidiary of FCX, operated a copper smelter, and from the 1930s until 1984 operated a copper refinery, on the banks of Newtown Creek (the creek), which is a 3.5-mile-long waterway that forms part of the boundary between Brooklyn and Queens in New York City. Heavy industrialization along the banks of the creek and discharges from the City of New York’s sewer system over more than a century resulted in significant environmental contamination of the waterway. In 2010, EPA notified PDRC, four other companies and the City of New York that EPA considers them to be PRPs under CERCLA. The notified parties began working with EPA to identify other PRPs. In 2010, EPA designated the creek as a Superfund site, and in 2011, PDRC and five other parties entered an Administrative Order on Consent (AOC) to perform a remedial investigation/feasibility study (RI/FS) to assess the nature and extent of environmental contamination in the creek and identify potential remedial options. The parties ’ RI/FS work under the AOC and their efforts to identify other PRPs are ongoing. EPA recently identified eight additional parties as PRPs for the creek. The draft RI was submitted to EPA in November 2016, and the draft FS is expected to be submitted to EPA by the end of 2020. EPA is not expected to propose a final remedy until after the RI/FS is completed, but has recently considered allowing for interim remedial measures as suggested by the PRPs. EPA’s remedial decision could be made in 2021 and remedial design could begin in 2022, with the actual remediation construction starting several years later. The actual costs of fulfilling this remedial obligation and the allocation of costs among PRPs are uncertain and subject to change based on the results of the RI/FS, the remedy ultimately selected by EPA and related allocation determinations. The overall cost and the portion ultimately allocated to PDRC could be material to FCX. During 2017, FCX recorded charges of $138 million for revised cost estimates for the Newtown Creek environmental obligation. Historical Smelter Sites . FCX subsidiaries and their predecessors at various times owned or operated copper, zinc and lead smelters or refineries in states including Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma and Pennsylvania. For some of these former processing sites, certain FCX subsidiaries have been advised by EPA or state agencies that they may be liable for costs of investigating and, if appropriate, remediating environmental conditions associated with these former processing facilities. At other sites, certain FCX subsidiaries have entered into state voluntary remediation programs to investigate and, if appropriate, remediate onsite and offsite conditions associated with the facilities. The historical processing sites are in various stages of assessment and remediation. At some of these sites, disputes with local residents and elected officials regarding alleged health effects or the effectiveness of remediation efforts have resulted in litigation of various types, and similar litigation at other sites is possible. From 1920 until 1986, United States Metals Refining Company (USMR), an indirect wholly owned subsidiary of FCX, owned and operated a copper smelter and refinery in the Borough of Carteret, New Jersey. Since the early 1980s, the site has been the subject of environmental investigation and remediation, under the direction and supervision of the New Jersey Department of Environmental Protection. On January 30, 2017, a class action titled Juan Duarte, Betsy Duarte and N.D., Infant, by Parents and Natural Guardians Juan Duarte and Betsy Duarte, Leroy Nobles and Betty Nobles, on behalf of themselves and all others similarly situated v. United States Metals Refining Company, Freeport-McMoRan Copper & Gold Inc. and Amax Realty Development, Inc. , Docket No. 734-17, was filed in the Superior Court of New Jersey against USMR, FCX, and Amax Realty Development, Inc. The defendants removed this litigation to the U.S. District Court for the District of New Jersey, where it remains pending. In December 2017, the plaintiffs amended their complaint and FCX was dismissed as a defendant and FMC was added as a defendant to the lawsuit. The suit alleges that USMR generated and disposed of smelter waste at the site and allegedly released contaminants onsite and offsite through discharges to surface water and air emissions over a period of decades and seeks unspecified damages for economic losses, including loss of property value, medical monitoring, punitive damages and other damages. In October 2018, the magistrate judge denied the plaintiffs’ July 2018 request to amend the complaint to rejoin FCX as a defendant, and the plaintiffs have appealed that decision. FCX continues to vigorously defend this matter. As a result of off-site soil sampling in public and private areas near the former Carteret smelter, FCX increased its associated environmental obligation for known and potential off-site environmental remediation by recording a $59 million charge to operating income in 2017. Additional sampling and analysis occurred through 2018 and is ongoing and could result in additional adjustments to the related environmental remediation obligation in future periods. Uranium Mining Sites. During a period between 1940 and the early 1970s, certain FCX subsidiaries and their predecessors were involved in uranium exploration and mining in the western U.S., primarily on federal and tribal lands in the Four Corners region of the southwest. Similar exploration and mining activities by other companies have also caused environmental impacts warranting remediation. In January 2017, the Department of Justice, EPA, Navajo Nation, and two FCX subsidiaries reached an agreement regarding the financial contribution of the U.S. Government and the FCX subsidiaries and the scope of the environmental investigation and remediation work for 94 former uranium mining sites on tribal lands. The settlement terms are outlined in a Consent Decree that was filed on January 17, 2017, in the U.S. District Court for the District of Arizona. Under the Consent Decree, which the U.S. Government valued at over $600 million , the U.S. contributed $335 million into a trust fund to cover the government’s initial share of the costs, and FCX’s subsidiaries are proceeding with the environmental investigation and remediation work at the 94 sites. The program is expected to take more than 20 years to complete. Based on updated cash flow and timing estimates, FCX reduced its associated obligation by recording a $41 million credit to operating income in 2017 after receiving court approval of the Consent Decree. In addition to uranium activities on tribal lands, FCX is conducting site surveys of historical uranium mining claims associated with FCX subsidiaries on non-tribal federal lands in the Four Corners region. Under a memorandum of understanding with the U.S. Bureau of Land Management (BLM), site surveys are being performed on over 10,000 mining claims, ranging from undisturbed claims to claims with mining features. Based on these surveys, BLM may provide no further action determinations for undisturbed claims or requests for additional assessment or reclamation activities for others. AROs. FCX’s ARO estimates are reflected on a third-party cost basis and are based on FCX’s legal obligation to retire tangible, long-lived assets. A summary of changes in FCX’s AROs for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 2,583 $ 2,638 $ 2,774 Liabilities incurred 1 14 12 Settlements and revisions to cash flow estimates, net 50 (112 ) 529 a Accretion expense 110 124 137 Dispositions b (37 ) (10 ) (626 ) Spending (160 ) (71 ) (188 ) Balance at end of year 2,547 2,583 2,638 Less current portion (317 ) (286 ) (240 ) Long-term portion $ 2,230 $ 2,297 $ 2,398 a. Revisions to cash flow estimates were primarily related to revised estimates for an overburden stockpile in Indonesia and at certain oil and gas properties. b. Primarily reflects the sale of certain oil and gas properties. ARO costs may increase or decrease significantly in the future as a result of changes in regulations, changes in engineering designs and technology, permit modifications or updates, changes in mine plans, settlements, inflation or other factors and as reclamation (concurrent with mining operations or post mining) spending occurs. ARO activities and expenditures for mining operations generally are made over an extended period of time commencing near the end of the mine life; however, certain reclamation activities may be accelerated if legally required or if determined to be economically beneficial. The methods used or required to plug and abandon non-producing oil and gas wellbores; remove platforms, tanks, production equipment and flow lines; and restore wellsites could change over time. Financial Assurance. New Mexico, Arizona, Colorado and other states, as well as federal regulations governing mine operations on federal land, require financial assurance to be provided for the estimated costs of mine reclamation and closure, including groundwater quality protection programs. FCX has satisfied financial assurance requirements by using a variety of mechanisms, primarily involving parent company performance guarantees and financial capability demonstrations, but also including trust funds, surety bonds, letters of credit and other collateral. The applicable regulations specify financial strength tests that are designed to confirm a company’s or guarantor’s financial capability to fund estimated reclamation and closure costs. The amount of financial assurance FCX subsidiaries are required to provide will vary with changes in laws, regulations, reclamation and closure requirements, and cost estimates. At December 31, 2018 , FCX’s financial assurance obligations associated with these U.S. mine closure and reclamation/restoration costs totaled $1.2 billion , of which $703 million was in the form of guarantees issued by FCX and FMC. At December 31, 2018 , FCX had trust assets totaling $180 million (included in other assets), which are legally restricted to be used to satisfy its financial assurance obligations for its mining properties in New Mexico. In addition, FCX subsidiaries have financial assurance obligations for its oil and gas properties associated with plugging and abandoning wells and facilities totaling $545 million . Where oil and gas guarantees associated with the Bureau of Ocean Energy Management do not include a stated cap, the amounts reflect management’s estimates of the potential exposure. New Mexico Environmental and Reclamation Programs. FCX’s New Mexico operations are regulated under the New Mexico Water Quality Act and regulations adopted by the Water Quality Control Commission (WQCC). In connection with discharge permits, the New Mexico Environment Department (NMED) has required each of these operations to submit closure plans for NMED’s approval. The closure plans must include measures to assure meeting applicable groundwater quality standards following the closure of discharging facilities and to abate groundwater or surface water contamination to meet applicable standards. In 2013, the WQCC adopted Supplemental Permitting Requirements for Copper Mining Facilities, which became effective on December 1, 2013, and specify closure requirements for copper mine facilities. The rules were adopted after an extensive stakeholder process in which FCX participated and were jointly supported by FCX and NMED. The New Mexico Supreme Court upheld the rules in 2018, following a challenge by certain environmental organizations and the New Mexico Attorney General. Finalized closure plans that meet the requirements of these rules will be submitted in 2019 and will result in material increases in closure costs for FCX’s New Mexico operations. FCX’s New Mexico operations also are subject to regulation under the 1993 New Mexico Mining Act (the Mining Act) and the related rules that are administered by the Mining and Minerals Division (MMD) of the New Mexico Energy, Minerals and Natural Resources Department. Under the Mining Act, mines are required to obtain approval of plans describing the reclamation to be performed following cessation of mining operations. At December 31, 2018 , FCX had accrued reclamation and closure costs of $450 million for its New Mexico operations. Additional accruals may be required based on the state’s periodic review of FCX’s updated closure plans and any resulting permit conditions, and the amount of those accruals could be material. Arizona Environmental and Reclamation Programs. FCX’s Arizona properties are subject to regulatory oversight in several areas. ADEQ has adopted regulations for its aquifer protection permit (APP) program that require permits for, among other things, certain facilities, activities and structures used for mining, leaching, concentrating and smelting, and require compliance with aquifer water quality standards at an applicable point of compliance well or location during both operations and closure. The APP program also may require mitigation and discharge reduction or elimination of some discharges. An application for an APP requires a proposed closure strategy that will meet applicable groundwater protection requirements following cessation of operations and an estimate of the cost to implement the closure strategy. An APP application specifies closure obligations, including post-closure monitoring and maintenance. A more detailed closure plan must be submitted within 90 days after a permitted entity notifies ADEQ of its intent to cease operations. A permit applicant must demonstrate its financial ability to meet the closure costs approved by ADEQ. In 2014, the state enacted legislation requiring closure costs for facilities covered by APPs to be updated no more frequently than every six years and financial assurance mechanisms to be updated no more frequently than every two years. In 2016, ADEQ approved a closure plan update for Sierrita, which resulted in increased closure costs. FCX will continue updating its closure strategy and closure cost estimates at other Arizona sites and intends to submit an updated tailings dam system closure cost for Morenci in April 2019. FCX expects to update the closure strategy and closure costs for Morenci’s stockpiles in 2020. FCX intends to update Bagdad closure costs in 2021. FCX has also proposed a closure strategy and closure costs for a former leach stockpile at Bisbee (a discontinued operation), which is currently under review by ADEQ. Portions of Arizona mining facilities that operated after January 1, 1986, also are subject to the Arizona Mined Land Reclamation Act (AMLRA). AMLRA requires reclamation to achieve stability and safety consistent with post-mining land use objectives specified in a reclamation plan. Reclamation plans must be approved by the State Mine Inspector and must include an estimate of the cost to perform the reclamation measures specified in the plan along with financial assurance. During 2017, Safford submitted an update to its reclamation plan to include the Lone Star expansion, which increased its reclamation costs. FCX will continue to evaluate options for future reclamation and closure activities at its operating and non-operating sites, which are likely to result in adjustments to FCX’s AROs, and those adjustments could be material. At December 31, 2018 , FCX had accrued reclamation and closure costs of $367 million for its Arizona operations. Colorado Reclamation Programs. FCX’s Colorado operations are regulated by the Colorado Mined Land Reclamation Act (Reclamation Act) and regulations promulgated thereunder. Under the Reclamation Act, mines are required to obtain approval of plans for reclamation of lands affected by mining operations to be performed during mining or upon cessation of mining operations. During 2016, at the request of the Colorado Division of Reclamation Mining & Safety, the Climax mine submitted a revised cost estimate for its current reclamation plan, which did not materially change the closure plan cost. In 2017, Henderson began considering alternatives for the closure of the tailings facility and, in 2018, began evaluating potential options for long-term water treatment, which are likely to result in adjustments to FCX’s AROs, and those adjustments could be material. As of December 31, 2018 , FCX had accrued reclamation and closure costs of $61 million for its Colorado operations. In 2019, a bill has been introduced in the Colorado legislature that requires financial assurance for long-term water management and eliminates the potential for future permits for mining sites that include long-term water management as part of the closure strategy. The long-term water management component of the bill will apply to Climax and Henderson operations and AROs. Chilean Reclamation and Closure Programs. In July 2011, the Chilean senate passed legislation regulating mine closure, which established new requirements for closure plans. In compliance with the requirement for five-year updates, in November 2018, FCX’s El Abra operation submitted an updated plan with closure cost estimates based on the existing approved closure plan. Approval is expected in 2019. This update will not result in a material increase to closure costs. At December 31, 2018 , FCX had accrued reclamation and closure costs of $63 million for its El Abra operation. Peruvian Reclamation and Closure Programs . Cerro Verde is subject to regulation under the Mine Closure Law administered by the Peruvian Ministry of Energy and Mines. Under the closure regulations, mines must submit a closure plan that includes the reclamation methods, closure cost estimates, methods of control and verification, closure and post-closure plans, and financial assurance. In compliance with the five year closure plan and cost update required by the Mine Closure Law, the latest closure plan and cost estimate for the Cerro Verde mine expansion were submitted to the Peruvian regulatory authorities in 2017 and approved in February 2018. This update did not result in a material increase to closure costs. At December 31, 2018 , FCX had accrued reclamation and closure costs of $105 million for its Cerro Verde operation. Indonesian Reclamation and Closure Programs. The ultimate amount of reclamation and closure costs to be incurred at PT-FI’s operations will be determined based on applicable laws and regulations and PT-FI’s assessment of appropriate remedial activities in the circumstances, after consultation with governmental authorities, affected local residents and other affected parties and cannot currently be projected with precision. Some reclamation costs will be incurred during mining activities, while the remaining reclamation costs will be incurred at the end of mining activities, which are currently estimated to continue through 2041. At the end of 2016, PT-FI revised its estimates for an overburden stockpile to address ongoing erosion that occurred during 2016, a design change that increased the volume and updated cost estimates reflecting more recent productivity and costs at the overburden stockpile, which resulted in an increase in the ARO of $372 million . At December 31, 2018 , FCX had accrued reclamation and closure costs of $991 million for its PT-FI operations. PT-FI is currently mining in the final phase of the Grasberg open pit and expects to transition to the underground mine in the first half of 2019. As a result, beginning in 2019, any adjustments to the costs for the overburden stockpile will impact earnings. In December 2009, PT-FI submitted its revised mine closure plan to the Department of Energy and Mineral Resources for review and addressed comments received during the course of this review process. In December 2010, the Indonesian government issued a regulation regarding mine reclamation and closure, which requires a company to provide a mine closure guarantee in the form of a time deposit placed in a state-owned bank in Indonesia. In December 2018, PT-FI, in conjunction with the issuance of the IUPK, submitted a revised mine closure plan to reflect the extension of operations to 2041. At December 31, 2018 , PT-FI funded $90 million into a restricted time deposit account for mine closure guarantees and $11 million for reclamation guarantees. In October 2017, Indonesia’s Ministry of Environment and Forestry (the MOEF) notified PT-FI of administrative sanctions related to certain activities the MOEF indicated are not reflected in its environmental permit. The MOEF also notified PT-FI that certain operational activities were inconsistent with factors set forth in its environmental permitting studies and that additional monitoring and improvements need to be undertaken related to air quality, water drainage, treatment and handling of certain wastes, and tailings management. In December 2018, the MOEF issued a revised environmental permit to PT-FI to address many of the operational activities that it alleged were inconsistent with earlier studies. The remaining administrative sanctions are being resolved through adoption of revised practices and, in a few situations, PT-FI has agreed with the MOEF on an appropriate multi-year work plan, including the closure of an overburden stockpile. PT-FI and the MOEF also established a new framework for continuous improvement in environmental practices in PT-FI’s operations, including initiatives that PT-FI will pursue to increase tailings retention and to evaluate large-scale beneficial uses of tailings within Indonesia. The MOEF issued a new decree that incorporates various initiatives and studies to be completed by PT-FI that would target continuous improvement in a manner that would not impose new technical risks or significant long-term costs to PT-FI’s operations. The new framework enables PT-FI to maintain compliance with site-specific standards and provides for ongoing monitoring by the MOEF. In 2018, PT-FI recorded a $32 million charge for assessments of prior period permit fees with the MOEF. Oil and Gas Properties. Substantially all of FM O&G’s oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores, remove equipment and facilities from leased acreage, and restore land in accordance with applicable local, state and federal laws. Following several sales transactions in 2016, 2017 and 2018, FM O&G’s remaining operating areas include offshore California and onshore in South Louisiana as of December 31, 2018 . FM O&G AROs cover approximately 210 wells and 120 platforms and other structures. At December 31, 2018 , FM O&G had accrued $476 million associated with its AROs. Litigation. FCX is involved in numerous legal proceedings that arise in the ordinary course of business or are associated with environmental issues as discussed in this note under “Environmental.” FCX is also involved periodically in reviews, inquiries, investigations and other proceedings initiated by or involving government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Management does not believe, based on currently available information, that the outcome of any legal proceeding will have a material adverse effect on FCX’s financial condition, although individual or cumulative outcomes could be material to FCX’s operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period. FM O&G LLC, an indirect wholly owned subsidiary of FCX, is a defendant in a purported class action titled David Garcia v. Freeport-McMoRan Oil & Gas LLC filed on April 1, 2016, in the Superior Court of the State of California for the County of Santa Barbara (Case No. 16CV01305) and subsequently removed to the U.S. District Court for the Central District of California (the District Court). The plaintiff, a former FM O&G LLC employee who worked on offshore production platforms in federal waters, alleged violations of various California wage and hour laws and sought relief for past wages, overtime, penalties, interest and attorney’s fees. The case was dismissed by the District Court on the basis that federal law, not state law, applied, and the complaint alleged no violations of federal law. The dismissal was appealed by the plaintiff to the U.S. Court of Appeals for the Ninth Circuit where the case is currently stayed in deference to the ongoing appeal of a similar case. Based on recent developments, FCX has concluded that its exposure in the Garcia case is not material to its consolidated financial statements. Asbestos and Talc Claims. Since approximately 1990, various FCX affiliates have been named as defendants in a large number of lawsuits alleging personal injury from exposure to asbestos or talc allegedly contained in industrial products such as electrical wire and cable, raw materials such as paint and joint compounds, talc-based lubricants used in rubber manufacturing or from asbestos contained in buildings and facilities located at properties owned or operated by affiliates of FCX. Many of these suits involve a large number of codefendants. Based on litigation results to date and facts currently known, FCX believes there is a reasonable possibility that losses may have been incurred related to these matters; however, FCX also believes that the amounts of any such losses, individually or in the aggregate, are not material to its consolidated financial statements. There can be no assurance that future developments will not alter this conclusion. There has been a recent significant increase in the number of cases alleging the presence of asbestos contamination in talc-based personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. In these cases, plaintiffs allege serious health risks and often fatal diseases, including mesothelioma and ovarian cancer, allegedly caused by long-term use of talc-based cosmetic and personal care products. Nationwide trial results in these cases have ranged from outright dismissals to large jury awards of both compensatory and punitive damages. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, is one of those targets. One of CAMC’s wholly owned subsidiaries, Cyprus Mines Corporation, was involved in talc mining until 1992 when it exited that business. CAMC has contractual indemnification rights, subject to limited reservations, against the ultimate successor to the business, which has acknowledged those indemnification obligations, and has taken responsibility for all cases tendered to it to date. |
COMMITMENTS AND GUARANTEES
COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees | COMMITMENTS AND GUARANTEES Operating Leases. FCX leases various types of properties, including offices and equipment. Future minimum rentals under non-cancelable leases at December 31, 2018 , total $53 million in 2019 , $42 million in 2020 , $38 million in 2021 , $32 million in 2022 , $29 million in 2023 and $171 million thereafter. Minimum payments under operating leases have not been reduced by aggregate minimum sublease rentals, which are minimal. Total aggregate rental expense under operating leases was $80 million in 2018 , $59 million in 2017 and $71 million 2016 . Contractual Obligations. At December 31, 2018 , based on applicable prices on that date, FCX has unconditional purchase obligations of $2.9 billion , primarily comprising the procurement of copper concentrate ( $1.5 billion ), cobalt ( $0.5 billion ), electricity ( $0.4 billion ) and transportation services ( $0.3 billion ). Some of FCX’s unconditional purchase obligations are settled based on the prevailing market rate for the service or commodity purchased. In some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrate provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Obligations for cobalt hydroxide intermediate provide for deliveries of specified volumes to Freeport Cobalt at market-based prices. Electricity obligations are primarily for long-term power purchase agreements in North America and contractual minimum demand at the South America mines. Transportation obligations are primarily for South America contracted ocean freight. FCX’s unconditional purchase obligations by year total $2.1 billion in 2019 , $234 million in 2020 , $147 million in 2021 , $50 million in 2022 , $44 million in 2023 and $301 million thereafter. During the three-year period ended December 31, 2018 , FCX fulfilled its minimum contractual purchase obligations. Special Mining License (IUPK) - Indonesia. As discussed in Note 2, on December 21, 2018, FCX completed the transaction with the Indonesian government regarding PT-FI’s long-term mining rights and share ownership. Concurrent with the closing of the transaction, the Indonesian government granted PT-FI an IUPK to replace its former COW, enabling PT-FI to conduct operations in the Grasberg minerals district through 2041. Under the terms of the IUPK, PT-FI has been granted an extension of mining rights through 2031, with rights to extend mining rights through 2041, subject to PT-FI completing the construction of a new smelter in Indonesia within five years of closing the transaction and fulfilling its defined fiscal obligations to the Indonesian government. The IUPK, and related documentation, contains legal and fiscal terms and is legally enforceable through 2041. In addition, FCX, as a foreign investor, has rights to resolve investment disputes with the Indonesian government through international arbitration. The key fiscal terms set forth in the IUPK include a 25 percent corporate income tax rate, a 10 percent profits tax on net income, and royalty rates of 4 percent for copper, 3.75 percent for gold and 3.25 percent for silver. PT-FI’s royalties totaled $238 million in 2018, $173 million in 2017 and $131 million in 2016. The IUPK also requires PT-FI to pay export duties of 5 percent , declining to 2.5 percent when smelter development progress exceeds 30 percent and eliminated when smelter progress exceeds 50 percent . PT-FI had previously agreed to and has been paying export duties since July 2014 (refer to Note 12 for further discussion of disputed export duties for the period April 2017 to December 21, 2018). PT-FI’s export duties charged against revenues totaled $180 million in 2018, $115 million in 2017 and $95 million in 2016. The IUPK also requires PT-FI to pay surface water taxes of $15 million annually, beginning in 2019. In connection with a memorandum of understanding previously entered into with the Indonesian government in July 2014, PT-FI provided an assurance bond at that time to support its commitment to construct a new smelter in Indonesia ( $126 million based on exchange rate as of December 31, 2018). PT-FI has applied for a one-year extension of its export license, which currently expires on February 16, 2019. Other. In 2016, FCX negotiated the termination and settlement of FM O&G’s drilling rig contracts with Noble Drilling (U.S.) LLC (Noble) and Rowan Companies plc (Rowan). Under the settlement with Noble, FCX issued 48.1 million shares of its common stock (representing a value of $540 million ) during second-quarter 2016, and Noble immediately sold these shares. Under the settlement with Rowan, FCX paid $215 million in cash during 2016. FCX also agreed to provide contingent payments of up to $75 million to Noble and up to $30 million to Rowan, depending on the average price of crude oil over the 12-month period ending June 30, 2017. In January 2017, FCX paid $6 million to early settle a portion of the Rowan contingent payments and no additional payments were due when the contingency period ended on June 30, 2017. As a result of the settlements, FM O&G was released from a total of $1.1 billion in payment obligations under its three drilling rig contracts. Community Development Programs. FCX has adopted policies that govern its working relationships with the communities where it operates. These policies are designed to guide its practices and programs in a manner that respects and promotes basic human rights and the culture of the local people impacted by FCX’s operations. FCX continues to make significant expenditures on community development, education, training and cultural programs. In 1996, PT-FI established the Freeport Partnership Fund for Community Development (Partnership Fund) through which PT-FI has made available funding and technical assistance to support community development initiatives in the areas of health, education, economic development and local infrastructure of the area. PT-FI has committed through June 30, 2019, to provide one percent of its annual revenue for the development of the local communities in its area of operations through the Partnership Fund. PT-FI charged $55 million in 2018 , $44 million in 2017 and $33 million in 2016 to cost of sales for this commitment. Guarantees. FCX provides certain financial guarantees (including indirect guarantees of the indebtedness of others) and indemnities. Prior to its acquisition by FCX, FMC and its subsidiaries have, as part of merger, acquisition, divestiture and other transactions, from time to time, indemnified certain sellers, buyers or other parties related to the transaction from and against certain liabilities associated with conditions in existence (or claims associated with actions taken) prior to the closing date of the transaction. As part of these transactions, FMC indemnified the counterparty from and against certain excluded or retained liabilities existing at the time of sale that would otherwise have been transferred to the party at closing. These indemnity provisions generally now require FCX to indemnify the party against certain liabilities that may arise in the future from the pre-closing activities of FMC for assets sold or purchased. The indemnity classifications include environmental, tax and certain operating liabilities, claims or litigation existing at closing and various excluded liabilities or obligations. Most of these indemnity obligations arise from transactions that closed many years ago, and given the nature of these indemnity obligations, it is not possible to estimate the maximum potential exposure. Except as described in the following sentence, FCX does not consider any of such obligations as having a probable likelihood of payment that is reasonably estimable, and accordingly, has not recorded any obligations associated with these indemnities. With respect to FCX’s environmental indemnity obligations, any expected costs from these guarantees are accrued when potential environmental obligations are considered by management to be probable and the costs can be reasonably estimated. |
FINANCIAL INSTRUMENTS (Notes)
FINANCIAL INSTRUMENTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates. Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As a result of the acquisition of the oil and gas business in 2013, FCX assumed a variety of crude oil and natural gas commodity derivatives to hedge the exposure to the volatility of crude oil and natural gas commodity prices, all of which had matured by December 31, 2015. As of December 31, 2018 and 2017 , FCX had no price protection contracts relating to its mine production. A discussion of FCX’s derivative contracts and programs follows. Derivatives Designated as Hedging Instruments – Fair Value Hedges Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the COMEX average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses during the three years ended December 31, 2018 , resulting from hedge ineffectiveness. At December 31, 2018 , FCX held copper futures and swap contracts that qualified for hedge accounting for 68 million pounds at an average contract price of $2.77 per pound, with maturities through June 2020 . A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item for the years ended December 31 follows: 2018 2017 2016 Copper futures and swap contracts: Unrealized (losses) gains: Derivative financial instruments $ (20 ) $ 4 $ 16 Hedged item – firm sales commitments 20 (4 ) (16 ) Realized (losses) gains: Matured derivative financial instruments (22 ) 30 1 Derivatives Not Designated as Hedging Instruments Embedded Derivatives. Certain FCX concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the LME copper price or the COMEX copper price and the LMBA gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded to revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX prices, which results in an embedded derivative ( i.e. , a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end forward prices, until the date of final pricing. Similarly, FCX purchases copper and cobalt under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts. A summary of FCX’s embedded derivatives at December 31, 2018 , follows: Open Average Price Per Unit Maturities Positions Contract Market Through Embedded derivatives in provisional sales contracts: Copper (millions of pounds) 489 $ 2.78 $ 2.70 May 2019 Gold (thousands of ounces) 119 1,229 1,286 April 2019 Embedded derivatives in provisional purchase contracts: Copper (millions of pounds) 117 2.79 2.71 May 2019 Cobalt (millions of pounds) 9 19.58 19.25 March 2019 Crude Oil and Natural Gas Contracts. FCX had no outstanding crude oil or natural gas derivative contracts as of December 31, 2018 or 2017. As part of the terms of the agreement to sell its onshore California oil and gas properties, FM O&G entered into derivative contracts during October 2016. Sentinel assumed these contracts at the time of the sale in December 2016. These derivative contracts were not designated as hedges for accounting purposes, and were recorded at fair value with the mark-to-market gains and losses recorded in revenues (oil contracts) and production costs (natural gas contracts). 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 December 31, 2018 , Atlantic Copper held net copper forward sales contracts for 8 million pounds at an average contract price of $2.76 per pound, with maturities through February 2019 . Summary of (Losses) Gains. A summary of the realized and unrealized (losses) gains recognized in operating income (loss) for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows: 2018 2017 2016 Embedded derivatives in provisional sales contracts a Copper $ (310 ) $ 489 $ 262 Gold and other (7 ) 26 4 Crude oil options and swaps a — — (35 ) Copper forward contracts b 18 (15 ) 5 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: December 31, 2018 2017 Commodity Derivative Assets: Derivatives designated as hedging instruments: Copper futures and swap contracts $ — $ 11 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts 23 155 Copper forward contracts — 1 Total derivative assets $ 23 $ 167 Commodity Derivative Liabilities: Derivatives designated as hedging instruments: Copper futures and swap contracts $ 9 $ — Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts 39 55 Copper forward contracts — 2 Total derivative liabilities $ 48 $ 57 FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheet follows: Assets at December 31, Liabilities at December 31, 2018 2017 2018 2017 Gross amounts recognized: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts $ 23 $ 155 $ 39 $ 55 Copper derivatives — 12 9 2 23 167 48 57 Less gross amounts of offset: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 7 — 7 — Copper derivatives — 1 — 1 7 1 7 1 Net amounts presented in balance sheet: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 16 155 32 55 Copper derivatives — 11 9 1 $ 16 $ 166 $ 41 $ 56 Balance sheet classification: Trade accounts receivable $ 3 $ 151 $ 24 $ — Other current assets — 11 — — Accounts payable and accrued liabilities 13 4 17 56 $ 16 $ 166 $ 41 $ 56 Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of December 31, 2018 , the maximum amount of credit exposure associated with derivative transactions was $16 million . Other Financial Instruments. Other financial instruments include cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $2.3 billion at December 31, 2018 , and $2.9 billion at December 31, 2017 ), restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 15 for the fair values of investment securities, legally restricted funds and long-term debt). In addition, as of December 31, 2018 , FCX has contingent consideration assets related to certain 2016 asset sales (refer to Note 15 for the related fair value and to Note 2 for further discussion of these instruments). Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows to the components presented in the consolidated balance sheets: December 31, 2018 December 31, 2017 Balance sheet components: Cash and cash equivalents $ 4,217 $ 4,526 Restricted cash and restricted cash equivalents included in: Other current assets 110 52 Other assets 128 132 Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows $ 4,455 $ 4,710 |
FAIR VALUE MEASUREMENT (Notes)
FAIR VALUE MEASUREMENT (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENT Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 for 2018 . FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater GOM oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at NAV as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 14) follows: At December 31, 2018 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund $ 25 $ 25 $ 25 $ — $ — $ — Equity securities 4 4 — 4 — — Total 29 29 25 4 — — Legally restricted funds: a U.S. core fixed income fund 55 55 55 — — — Government mortgage-backed securities 38 38 — — 38 — Government bonds and notes 36 36 — — 36 — Corporate bonds 28 28 — — 28 — Asset-backed securities 11 11 — — 11 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 5 5 — 5 — — Municipal bonds 1 1 — — 1 — Total 181 181 55 5 121 — Derivatives: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position c 23 23 — — 23 — Contingent consideration for the sales of TFHL and onshore California oil and gas properties a 73 73 — — 73 — Total 96 96 — — 96 — Contingent consideration for the sale of the Deepwater GOM oil and gas properties a 143 127 — — — 127 Liabilities Derivatives: c Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position $ 39 $ 39 $ — $ — $ 39 $ — Copper futures and swap contracts 9 9 — 7 2 — Total 48 48 — 7 41 — Long-term debt, including current portion d 11,141 10,238 — — 10,238 — At December 31, 2017 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund $ 25 $ 25 $ 25 $ — $ — $ — Equity securities 5 5 — 5 — — Total 30 30 25 5 — — Legally restricted funds: a U.S. core fixed income fund 55 55 55 — — — Government bonds and notes 40 40 — — 40 — Corporate bonds 32 32 — — 32 — Government mortgage-backed securities 27 27 — — 27 — Asset-backed securities 15 15 — — 15 — Money market funds 11 11 — 11 — — Collateralized mortgage-backed securities 8 8 — — 8 — Municipal bonds 1 1 — — 1 — Total 189 189 55 11 123 — Derivatives: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position c 155 155 — — 155 — Copper futures and swap contracts c 11 11 — 9 2 — Copper forward contracts c 1 1 — — 1 — Contingent consideration for the sales of TFHL and onshore California oil and gas properties a 108 108 — — 108 — Total 275 275 — 9 266 — Contingent consideration for the sale of the Deepwater GOM oil and gas properties a 150 134 — — — 134 Liabilities Derivatives: c Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position $ 55 $ 55 $ — $ — $ 55 $ — Copper forward contracts 2 2 — 1 1 — Total 57 57 — 1 56 — Long-term debt, including current portion d 13,229 13,381 — — 13,381 — a. Current portion included in other current assets and long-term portion included in other assets. b. Excludes time deposits (which approximated fair value) included in (i) other current assets of $109 million at December 31, 2018 , and $52 million at December 31, 2017 , and (ii) other assets of $126 million at December 31, 2018 , and $123 million at December 31, 2017 , primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter in Indonesia (refer to Note 13 for further discussion) and PT-FI’s closure and reclamation guarantees (refer to Note 12 for further discussion). c. Refer to Note 14 for further discussion and balance sheet classifications. d. Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates. Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice). 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. 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 adjusted LBMA gold prices at each reporting date based on the month of maturity (refer to Note 14 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. FCX’s embedded derivatives on provisional cobalt purchases are valued using quoted monthly LME cobalt forward prices or average published Metals Bulletin cobalt prices, subject to certain adjustments as specified by the terms of the contracts, at each reporting date based on the month of maturity. As a result, these derivatives are classified within Level 2 of the fair value hierarchy. FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 14 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. The fair value of contingent consideration for the sales of TFHL and onshore California oil and gas properties (refer to Note 2 for further discussion) is calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy. The fair value of contingent consideration for the sale of Deepwater GOM oil and gas properties (refer to Note 2 for further discussion) is calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy. Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy. The techniques described above may produce a fair value calculation that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with those used by 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 December 31, 2018 . A summary of the changes in the fair value of FCX ’ s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 134 $ 135 $ — Net unrealized (losses) gains related to assets still held at the end of the year — (1 ) 135 Settlements (7 ) — — Balance at the end of the year $ 127 $ 134 $ 135 Refer to Notes 1, 2 and 5 for a discussion of the fair value estimates associated with other assets acquired and liabilities assumed related to the PT-FI divestment, which were determined based on inputs not observable in the market and thus represent Level 3 measurements. |
BUSINESS SEGMENTS INFORMATION
BUSINESS SEGMENTS INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Product Revenues. FCX’s revenues attributable to the products it sold for the years ended December 31 follow: 2018 2017 2016 Copper: Concentrate $ 6,180 $ 5,604 $ 5,048 Cathode 4,366 3,759 3,495 Rod, and other refined copper products 2,396 2,387 2,082 Purchased copper a 1,053 789 428 Gold 3,231 2,126 1,592 Molybdenum 1,190 896 659 Other b 1,490 1,159 2,145 Adjustments to revenues: Treatment charges (535 ) (536 ) (652 ) Royalty expense c (246 ) (181 ) (138 ) Export duties d (180 ) (115 ) (95 ) Revenues from contracts with customers 18,945 15,888 14,564 Embedded derivatives e (317 ) 515 266 Total consolidated revenues $ 18,628 $ 16,403 $ 14,830 a. FCX purchases copper cathode primarily for processing by its Rod & Refining operations. b. Primarily includes revenues associated with cobalt, silver, oil, gas and natural gas liquids. c. Reflects royalties for sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and the prices of copper and gold. d. Refer to Note 13 for discussion of PT-FI export duties. e. Refer to Note 14 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts. Geographic Area. Information concerning financial data by geographic area follows: December 31, 2018 2017 2016 Long-lived assets: a Indonesia $ 14,025 $ 8,938 $ 8,794 U.S. 8,208 8,312 8,282 Peru 7,274 7,485 7,981 Chile 1,128 1,221 1,269 Other 458 408 378 Total $ 31,093 $ 26,364 $ 26,704 a. Excludes deferred tax assets and intangible assets. Years Ended December 31, 2018 2017 2016 Revenues: a U.S. $ 5,790 $ 5,344 $ 5,896 Switzerland 2,941 1,200 1,147 Indonesia 2,226 2,023 1,402 Japan 1,946 1,882 1,350 Spain 1,070 1,086 878 China 873 1,136 1,125 India 389 782 553 United Kingdom 296 226 204 Chile 294 248 250 Belgium 278 39 87 Korea 269 364 219 Germany 256 161 162 France 255 122 80 Philippines 221 378 261 Bermuda 207 226 273 Other 1,317 1,186 943 Total $ 18,628 $ 16,403 $ 14,830 a. Revenues are attributed to countries based on the location of the customer. Major Customers and Affiliated Companies. Copper concentrate sales to PT Smelting totaled 12 percent of FCX’s consolidated revenues for both the years ended December 31, 2018 and 2017, which is the only customer that accounted for 10 percent or more of FCX’s consolidated revenues during the three years ended December 31, 2018 . Consolidated revenues include sales to the noncontrolling interest owners of FCX’s South America mining operations totaling $1.2 billion in 2018 , $1.1 billion in 2017 and $1.0 billion in 2016 , and PT-FI’s sales to PT Smelting totaling $2.2 billion in 2018 , $2.0 billion in 2017 and $1.4 billion in 2016 . Labor Matters . As of December 31, 2018 , approximately 37 percent of FCX’s global labor force was covered by collective bargaining agreements, and approximately 21 percent was covered by agreements that expired and are currently being negotiated or will expire within one year. Business Segments. FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining. Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums. FCX defers recognizing profits on sales from its mines to other 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 Financial Information by Business Segment reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity. North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCX’s Rod & Refining segment. In addition to copper, certain of FCX’s North America copper mines also produce molybdenum concentrate, gold and silver. The Morenci open-pit mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate. The Morenci mine produced 49 percent of FCX’s North America copper during 2018 . South America Mining. South America mining includes two operating copper mines – Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. The Cerro Verde mine produced 84 percent of FCX’s South America copper during 2018 . Indonesia Mining. Indonesia mining includes PT-FI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver. Molybdenum Mines. Molybdenum mines include the wholly owned Henderson underground mine and Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. Rod & Refining. The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery, three rod mills and a specialty copper products facility, which are combined in accordance with segment reporting aggregation guidance. These operations process copper produced at FCX’s North America copper mines and purchased copper into copper cathode, rod and custom copper shapes. At times these operations refine copper and produce copper rod and shapes for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products. Atlantic Copper Smelting & Refining. Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During 2018 , Atlantic Copper purchased 14 percent of its concentrate requirements from the North America copper mines, 5 percent from the South America mining operations and 4 percent from the Indonesia mining operations, with the remainder purchased from unaffiliated third parties. Corporate, Other & Eliminations. Corporate, Other & Eliminations consists of FCX’s other mining and eliminations, oil and gas operations and other corporate and elimination items. Other mining and eliminations include the Miami smelter (a smelter at FCX’s Miami, Arizona, mining operation), Freeport Cobalt, molybdenum conversion facilities in the U.S. and Europe, five non-operating copper mines in North America (Ajo, Bisbee, Tohono, Twin Buttes and Christmas in Arizona) and other mining support entities. Financial Information by Business Segment North America Copper Mines South America Atlantic Corporate, Copper Other Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total Year Ended December 31, 2018 Revenues: Unaffiliated customers $ 90 $ 54 $ 144 $ 2,709 $ 594 $ 3,303 $ 5,446 $ — $ 5,103 $ 2,299 $ 2,333 a $ 18,628 Intersegment 2,051 2,499 4,550 352 — 352 113 410 31 3 (5,459 ) — Production and delivery 1,183 1,945 3,128 1,887 b,c 478 2,365 1,864 d 289 5,117 2,218 (3,290 ) 11,691 Depreciation, depletion and amortization 176 184 360 456 90 546 606 79 11 27 125 e 1,754 Selling, general and administrative expenses 3 3 6 9 — 9 123 — — 21 284 443 Mining exploration and research expenses — 3 3 — — — — — — — 102 105 Environmental obligations and shutdown costs — 2 2 — — — — — — — 87 89 Net gain on sales of assets — — — — — — — — — — (208 ) f (208 ) Operating income (loss) 779 416 1,195 709 26 735 2,966 42 6 36 (226 ) 4,754 Interest expense, net 3 1 4 429 c — 429 1 — — 25 486 945 Provision for (benefit from) income taxes — — — 253 c 15 268 755 g — — 1 (33 ) h 991 Total assets at December 31, 2018 2,922 4,608 7,530 8,524 1,707 10,231 15,646 1,796 233 773 6,007 42,216 Capital expenditures 216 385 601 220 17 237 1,001 9 5 16 102 1,971 Year Ended December 31, 2017 Revenues: Unaffiliated customers $ 228 $ 180 $ 408 $ 2,811 $ 498 $ 3,309 $ 4,445 $ — $ 4,456 $ 2,031 $ 1,754 a $ 16,403 Intersegment 1,865 2,292 4,157 385 — 385 — 268 26 1 (4,837 ) — Production and delivery 1,043 1,702 2,745 1,878 c 366 2,244 1,735 i 227 4,467 1,966 (3,118 ) 10,266 j Depreciation, depletion and amortization 178 247 425 441 84 525 556 76 10 28 94 1,714 Selling, general and administrative expenses 2 2 4 9 — 9 126 i — — 18 320 477 Mining exploration and research expenses — 2 2 — — — — — — — 91 93 Environmental obligations and shutdown costs — — — — — — — — — — 244 244 Net gain on sales of assets — — — — — — — — — — (81 ) f (81 ) Operating income (loss) 870 519 1,389 868 48 916 2,028 (35 ) 5 20 (633 ) 3,690 Interest expense, net 3 1 4 212 c — 212 4 — — 18 563 801 Provision for (benefit from) income taxes — — — 436 c 10 446 869 — — 5 (437 ) h 883 Total assets at December 31, 2017 2,861 4,241 7,102 8,878 1,702 10,580 10,911 1,858 277 822 5,752 37,302 Capital expenditures 114 53 167 103 12 115 875 5 4 41 203 1,410 a. Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. b. Includes charges totaling $69 million associated with Cerro Verde’s new three-year collective labor agreement. c. Includes net charges totaling $14 million in production and delivery costs in 2018 and $203 million in 2017, $370 million in interest expense in 2018 and $145 million in 2017, and $35 million of net tax benefits in provision for income taxes in 2018 and $7 million of net tax charges in 2017 associated with disputed royalties for prior years. d. Includes net charges of $223 million primarily associated with surface water tax disputes with the local regional tax authority in Papua, assessments of prior period permit fees with the MOEF, disputed payroll withholding taxes for prior years and other tax settlements, and to write-off certain previously capitalized project costs for the new smelter in Indonesia, partially offset by inventory adjustments. e. Includes $31 million of depreciation expense at Freeport Cobalt from December 2016 through December 2017 that was suspended while it was classified as held for sale. f. Includes net gains in 2018 totaling $97 million associated with a favorable adjustment to the estimated fair value less costs to sell for Freeport Cobalt and fair value adjustments of $31 million associated with potential contingent consideration related to the 2016 sale of onshore California oil and gas properties; and net gains in 2017, primarily associated with sales of oil and gas properties of $49 million and a favorable adjustment of $13 million associated with the estimated fair value less costs to sell for the Kisanfu exploration project. Refer to Note 2 for further discussion. g. Includes tax credits totaling $571 million related to the change in PT-FI's tax rates in accordance with its IUPK ( $504 million ), U.S. tax reform ( $47 million ) and adjustment to PT-FI's historical tax positions ( $20 million ). h. Includes net tax credits totaling $76 million in 2018 and $438 million in 2017 primarily related to U.S. tax reform. Refer to Note 11 for further discussion. i. Includes net charges at PT-FI associated with workforce reductions totaling $120 million in production and delivery costs and $5 million in selling, general and administrative expenses. j. Includes a $42 million decrease related to the adoption of the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 1 for further discussion). North America Copper Mines South America Atlantic Corporate, Copper Other Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total Year Ended December 31, 2016 Revenues: Unaffiliated customers $ 444 $ 240 $ 684 $ 2,241 $ 510 $ 2,751 $ 3,233 $ — $ 3,833 $ 1,825 $ 2,504 a,b $ 14,830 Intersegment 1,511 2,179 3,690 187 — 187 62 186 29 5 (4,159 ) — Production and delivery 1,162 1,752 2,914 1,351 407 1,758 1,775 212 3,833 1,712 (1,517 ) c 10,687 d Depreciation, depletion and amortization 217 313 530 443 110 553 384 68 10 29 956 2,530 Impairment of oil and gas properties — — — — — — — — — — 4,317 4,317 Selling, general and administrative expenses 2 3 5 8 1 9 88 — — 17 478 c 597 Mining exploration and research expenses — 3 3 — — — — — — — 60 63 Environmental obligations and shutdown costs — — — — — — — — — — 14 14 Net gain on sales of assets (576 ) — (576 ) — — — — — — — (73 ) (649 ) Operating income (loss) 1,150 348 1,498 626 (8 ) 618 1,048 (94 ) 19 72 (5,890 ) (2,729 ) Interest expense, net 3 1 4 82 — 82 — — — 15 654 755 Provision for (benefit from) income taxes — — — 222 (6 ) 216 442 — — 9 (296 ) 371 Total assets at December 31, 2016 2,863 4,448 7,311 9,076 1,533 10,609 10,493 1,934 220 658 6,092 37,317 Capital expenditures 77 25 102 380 2 382 1,025 2 1 17 1,284 e 2,813 a. Includes revenues from FCX’s molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. b. Includes net mark-to-market losses totaling $35 million associated with oil derivative contracts, which were entered into as part of the terms to sell the onshore California oil and gas properties in 2016. c. Includes net charges for oil and gas operations totaling $1.0 billion in production and delivery costs, primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments, asset impairments and other net charges, and $85 million in selling, general and administrative expenses for net restructuring charges. d. Includes a $46 million decrease related to the adoption of the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 1 for further discussion). e. Includes $1.2 billion associated with oil and gas operations and $73 million associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations. |
GUARANTOR FINANCIAL STATEMENTS
GUARANTOR FINANCIAL STATEMENTS GUARANTOR FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor Financial Statements [Abstract] | |
Guarantor Financial Statements | GUARANTOR FINANCIAL STATEMENTS All of the senior notes issued by FCX and discussed in Note 8 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 FCX’s revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC’s future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC’s subsidiaries. The indentures provide that FM O&G LLC’s guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof. The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at December 31, 2018 and 2017 , and the related condensed consolidating statements of comprehensive income (loss) and the condensed consolidating statements of cash flows for the three years ended December 31, 2018 , which should be read in conjunction with FCX’s notes to the consolidated financial statements. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 309 $ 620 $ 10,376 $ (585 ) $ 10,720 Property, plant, equipment and mine development costs, net 19 7 27,984 — 28,010 Investments in consolidated subsidiaries 19,064 — — (19,064 ) — Other assets 880 23 3,218 (635 ) 3,486 Total assets $ 20,272 $ 650 $ 41,578 $ (20,284 ) $ 42,216 LIABILITIES AND EQUITY Current liabilities $ 245 $ 34 $ 3,667 $ (617 ) $ 3,329 Long-term debt, less current portion 9,594 6,984 5,649 (11,103 ) 11,124 Deferred income taxes 524 a — 3,508 — 4,032 Environmental and asset retirement obligations, less current portion — 227 3,382 — 3,609 Investments in consolidated subsidiary — 578 10,513 (11,091 ) — Other liabilities 111 3,340 2,265 (3,486 ) 2,230 Total liabilities 10,474 11,163 28,984 (26,297 ) 24,324 Equity: Stockholders’ equity 9,798 (10,513 ) 9,912 601 9,798 Noncontrolling interests — — 2,682 5,412 8,094 Total equity 9,798 (10,513 ) 12,594 6,013 17,892 Total liabilities and equity $ 20,272 $ 650 $ 41,578 $ (20,284 ) $ 42,216 a. All U.S.-related deferred income taxes are recorded at the parent company. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 75 $ 671 $ 10,670 $ (790 ) $ 10,626 Property, plant, equipment and mine development costs, net 14 11 22,979 (10 ) 22,994 Investments in consolidated subsidiaries 19,570 — — (19,570 ) — Other assets 943 48 3,182 (491 ) 3,682 Total assets $ 20,602 $ 730 $ 36,831 $ (20,861 ) $ 37,302 LIABILITIES AND EQUITY Current liabilities $ 1,683 $ 220 $ 3,949 $ (938 ) $ 4,914 Long-term debt, less current portion 10,021 6,512 5,552 (10,270 ) 11,815 Deferred income taxes 748 a — 2,915 — 3,663 Environmental and asset retirement obligations, less current portion — 201 3,401 — 3,602 Investments in consolidated subsidiary — 853 10,397 (11,250 ) — Other liabilities 173 3,340 1,987 (3,488 ) 2,012 Total liabilities 12,625 11,126 28,201 (25,946 ) 26,006 Equity: Stockholders’ equity 7,977 (10,396 ) 5,916 4,480 7,977 Noncontrolling interests — — 2,714 605 3,319 Total equity 7,977 (10,396 ) 8,630 5,085 11,296 Total liabilities and equity $ 20,602 $ 730 $ 36,831 $ (20,861 ) $ 37,302 a. All U.S.-related deferred income taxes are recorded at the parent company . CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 59 $ 18,569 $ — $ 18,628 Total costs and expenses 28 58 13,798 (10 ) 13,874 Operating (loss) income (28 ) 1 4,771 10 4,754 Interest expense, net (388 ) (301 ) (734 ) 478 (945 ) Net gain (loss) on early extinguishment of debt 7 2 (2 ) — 7 Other income (expense), net 477 — 77 (478 ) 76 Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses) 68 (298 ) 4,112 10 3,892 (Provision for) benefit from income taxes (176 ) 61 (874 ) (2 ) (991 ) Equity in affiliated companies’ net earnings (losses) 2,710 10 (219 ) (2,493 ) 8 Net income (loss) from continuing operations 2,602 (227 ) 3,019 (2,485 ) 2,909 Net loss from discontinued operations — — (15 ) — (15 ) Net income (loss) 2,602 (227 ) 3,004 (2,485 ) 2,894 Net income attributable to noncontrolling interests — — (68 ) (224 ) (292 ) Net income (loss) attributable to common stockholders $ 2,602 $ (227 ) $ 2,936 $ (2,709 ) $ 2,602 Other comprehensive (loss) income (33 ) — (33 ) 33 (33 ) Total comprehensive income (loss) $ 2,569 $ (227 ) $ 2,903 $ (2,676 ) $ 2,569 Year Ended December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 52 $ 16,351 $ — $ 16,403 Total costs and expenses 39 78 12,586 10 12,713 Operating (loss) income (39 ) (26 ) 3,765 (10 ) 3,690 Interest expense, net (467 ) (227 ) (455 ) 348 (801 ) Net gain (loss) on early extinguishment of debt 22 5 (6 ) — 21 Other income (expense), net 336 — 4 (348 ) (8 ) (Loss) income before income taxes and equity in affiliated companies’ net earnings (losses) (148 ) (248 ) 3,308 (10 ) 2,902 Benefit from (Provision for) income taxes 220 (108 ) (998 ) 3 (883 ) Equity in affiliated companies’ net earnings (losses) 1,745 10 (337 ) (1,408 ) 10 Net income (loss) from continuing operations 1,817 (346 ) 1,973 (1,415 ) 2,029 Net income from discontinued operations — — 66 — 66 Net income (loss) 1,817 (346 ) 2,039 (1,415 ) 2,095 Net income attributable to noncontrolling interests: Continuing operations — — (150 ) (124 ) (274 ) Discontinued operations — — (4 ) — (4 ) Net income (loss) attributable to common stockholders $ 1,817 $ (346 ) $ 1,885 $ (1,539 ) $ 1,817 Other comprehensive income (loss) 61 — 61 (61 ) 61 Total comprehensive income (loss) $ 1,878 $ (346 ) $ 1,946 $ (1,600 ) $ 1,878 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 379 $ 14,451 $ — $ 14,830 Total costs and expenses 72 3,074 a 14,403 a 10 17,559 Operating (loss) income (72 ) (2,695 ) 48 (10 ) (2,729 ) Interest expense, net (534 ) (56 ) (498 ) 333 (755 ) Net gain on early extinguishment of debt 26 — — — 26 Other income (expense), net 268 — 10 (292 ) (14 ) (Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings (312 ) (2,751 ) (440 ) 31 (3,472 ) (Provision for) benefit from income taxes (2,233 ) 1,053 821 (12 ) (371 ) Equity in affiliated companies’ net (losses) earnings (1,609 ) (3,101 ) (4,790 ) 9,511 11 Net (loss) income from continuing operations (4,154 ) (4,799 ) (4,409 ) 9,530 (3,832 ) Net income from discontinued operations — — (154 ) (39 ) (193 ) Net (loss) income (4,154 ) (4,799 ) (4,563 ) 9,491 (4,025 ) Net income and gain on redemption and preferred dividends attributable to noncontrolling interests: Continuing operations — — — (66 ) (66 ) Discontinued operations — — (63 ) — (63 ) Net (loss) income attributable to common stockholders $ (4,154 ) $ (4,799 ) $ (4,626 ) $ 9,425 $ (4,154 ) Other comprehensive (loss) income (45 ) — (45 ) 45 (45 ) Total comprehensive (loss) income $ (4,199 ) $ (4,799 ) $ (4,671 ) $ 9,470 $ (4,199 ) a. Includes impairment charges totaling $1.5 billion at the FM O&G LLC Guarantor and $2.8 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX’s oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (40 ) $ (487 ) $ 4,390 $ — $ 3,863 Cash flow from investing activities: Capital expenditures (2 ) — (1,969 ) — (1,971 ) Acquisition of PT Rio Tinto Indonesia — — (3,500 ) — (3,500 ) Intercompany loans (832 ) — — 832 — Dividends from (investments in) consolidated subsidiaries 2,475 — 84 (2,559 ) — Asset sales and other, net 460 6 (13 ) — 453 Net cash provided by (used in) investing activities 2,101 6 (5,398 ) (1,727 ) (5,018 ) Cash flow from financing activities: Proceeds from debt — — 632 — 632 Repayments of debt (1,826 ) (53 ) (838 ) — (2,717 ) Intercompany loans — 526 306 (832 ) — Proceeds from sale of PT Freeport Indonesia shares — — 3,710 (210 ) 3,500 Cash dividends paid and distributions received, net (217 ) — (3,032 ) 2,753 (496 ) Other, net (18 ) — (17 ) 16 (19 ) Net cash (used in) provided by financing activities (2,061 ) 473 761 1,727 900 Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents — (8 ) (247 ) — (255 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — 8 4,702 — 4,710 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ — $ 4,455 $ — $ 4,455 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (156 ) $ (467 ) $ 5,289 $ — $ 4,666 Cash flow from investing activities: Capital expenditures — (25 ) (1,385 ) — (1,410 ) Intercompany loans (777 ) — — 777 — Dividends from (investments in) consolidated subsidiaries 3,226 (15 ) 120 (3,331 ) — Asset sales and other, net — 57 32 — 89 Net cash provided by (used in) investing activities 2,449 17 (1,233 ) (2,554 ) (1,321 ) Cash flow from financing activities: Proceeds from debt — — 955 — 955 Repayments of debt (2,281 ) (205 ) (1,326 ) — (3,812 ) Intercompany loans — 663 114 (777 ) — Cash dividends and distributions paid, including redemption (2 ) — (3,440 ) 3,266 (176 ) Other, net (10 ) (10 ) (67 ) 65 (22 ) Net cash (used in) provided by financing activities (2,293 ) 448 (3,764 ) 2,554 (3,055 ) Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents — (2 ) 292 — 290 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — 10 4,410 — 4,420 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ 8 $ 4,702 $ — $ 4,710 Year Ended December 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (137 ) $ (263 ) $ 4,135 $ 2 $ 3,737 Cash flow from investing activities: Capital expenditures — (567 ) (2,248 ) 2 (2,813 ) Intercompany loans 481 (346 ) — (135 ) — Dividends from (investments in) consolidated subsidiaries 1,469 (45 ) 176 (1,600 ) — Asset sales and other, net 2 1,673 4,695 (4 ) 6,366 Net cash provided by (used in) investing activities 1,952 715 2,623 (1,737 ) 3,553 Cash flow from financing activities: Proceeds from debt 1,721 — 1,960 — 3,681 Repayments of debt (5,011 ) — (2,614 ) — (7,625 ) Intercompany loans — (332 ) 197 135 — Net proceeds from sale of common stock 1,515 — 3,388 (3,388 ) 1,515 Cash dividends and distributions paid (6 ) (107 ) (5,555 ) 4,969 (699 ) Other, net (34 ) (3 ) (20 ) 19 (38 ) Net cash (used in) provided by financing activities (1,815 ) (442 ) (2,644 ) 1,735 (3,166 ) Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents — 10 4,114 — 4,124 Increase in cash and cash equivalents in assets held for sale — — (45 ) — (45 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — — 341 — 341 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ 10 $ 4,410 $ — $ 4,420 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS FCX evaluated events after December 31, 2018 , and through the date the 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 financial statements. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter Year 2018 Revenues $ 4,868 $ 5,168 $ 4,908 $ 3,684 $ 18,628 Operating income 1,459 1,664 1,315 316 4,754 Net income from continuing operations 828 1,039 668 374 2,909 Net (loss) income from discontinued operations (11 ) (4 ) (4 ) 4 (15 ) Net income 817 1,035 664 378 2,894 Net (income) loss attributable to noncontrolling interests from continuing operations (125 ) (166 ) (108 ) 107 (292 ) Net income attributable to common stockholders 692 869 556 485 2,602 Basic net income (loss) per share attributable to common stockholders: Continuing operations $ 0.48 $ 0.60 $ 0.38 $ 0.33 $ 1.80 Discontinued operations (0.01 ) — — — (0.01 ) $ 0.47 $ 0.60 $ 0.38 $ 0.33 $ 1.79 Basic weighted-average shares outstanding 1,449 1,449 1,450 1,450 1,449 Diluted net income (loss) per share attributable to common stockholders: Continuing operations $ 0.48 $ 0.59 $ 0.38 $ 0.33 $ 1.79 Discontinued operations (0.01 ) — — — (0.01 ) $ 0.47 $ 0.59 $ 0.38 $ 0.33 $ 1.78 Diluted weighted-average shares outstanding 1,458 1,458 1,458 1,457 1,458 Following summarizes significant charges (credits) included in FCX’s net income attributable to common stockholders for the 2018 quarters: • Net charges at Cerro Verde related to Peruvian government claims for disputed royalties (refer to Note 12 for further discussion) totaled $195 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $14 million to production and delivery costs, $370 million to interest expense, $22 million to other expense, net of income tax benefits of $35 million and noncontrolling interests of $176 million ), most of which was recorded in the fourth quarter. • Net charges at PT-FI totaled $223 million ( $110 million to net income attributable to common stockholders or $0.08 per share) consisting of charges to production and delivery of $69 million for surface water tax disputes with the local regional tax authority in Papua, Indonesia, $32 million for assessments of prior period permit fees with the MOEF, $72 million for disputed payroll withholding taxes for prior years and other tax settlements and $62 million to write-off certain previously capitalized project costs for the new smelter in Indonesia in fourth quarter, partly offset by inventory adjustments of $12 million recorded in second quarter. The fourth quarter also included $43 million of inventory adjustments at PT-FI related to prior 2018 quarterly periods. • Net charges at Cerro Verde related to Cerro Verde’s new three-year collective bargaining agreement totaled $69 million ( $22 million to net income attributable to common stockholders or $0.02 per share) for the year, which was recorded in the third quarter. • Net adjustments to environmental obligations and related litigation reserves totaled $57 million to operating income and net income attributable to common stockholders ( $0.04 per share) for the year, most of which was recorded in the second quarter. • Net gains on sales of assets for the year totaled $208 million to operating income and net income attributable to common stockholders ( $0.14 per share), mostly associated with adjustments to assets no longer classified as held for sale, adjustments to the fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties (which will continue to be adjusted through December 31, 2020) and the sale of Port Carteret (assets held for sale), and included $11 million in the first quarter, $45 million in the second quarter, $70 million in the third quarter and $82 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions. • Other net charges for the year totaled $50 million ( $30 million to net income attributable to common stockholders or $0.02 per share), including prior period depreciation expense at Freeport Cobalt that was suspended while it was classified as held for sale ( $48 million in fourth-quarter and $31 million for the year). • Net tax credits for the year totaled $632 million ( $574 million net of noncontrolling interest or $0.39 per share), primarily associated with a reduction in PT-FI’s statutory rates in accordance with the IUPK ( $504 million ) and benefits associated with U.S. tax reform ( $123 million ), most of which was recorded in the fourth quarter. Refer to Note 11 for further discussion. • In November 2016, FCX completed the sale of its interest in TFHL (refer to Note 2 for further discussion), and, in accordance with accounting guidance, reported the results of operations of TFHL as discontinued operations for all periods presented. Net (loss) income from discontinued operations for the 2018 periods primarily reflects adjustments to the fair value of the potential contingent consideration related to the sale, which will continue to be adjusted through December 31, 2019. First Quarter Second Quarter Third Quarter Fourth Quarter Year 2017 Revenues $ 3,341 $ 3,711 $ 4,310 $ 5,041 $ 16,403 Operating income 597 686 928 1,479 3,690 Net income from continuing operations 268 326 242 1,193 2,029 Net income from discontinued operations 38 9 3 16 66 Net income 306 335 245 1,209 2,095 Net (income) loss attributable to noncontrolling interests: Continuing operations (75 ) (66 ) 35 (168 ) (274 ) Discontinued operations (3 ) (1 ) — — (4 ) Net income attributable to common stockholders 228 268 280 1,041 1,817 Basic net income per share attributable to common stockholders: Continuing operations $ 0.13 $ 0.18 $ 0.19 $ 0.71 $ 1.21 Discontinued operations 0.03 — — 0.01 0.04 $ 0.16 $ 0.18 $ 0.19 $ 0.72 $ 1.25 Basic weighted-average shares outstanding 1,446 1,447 1,448 1,448 1,447 Diluted net income per share attributable to common stockholders: Continuing operations $ 0.13 $ 0.18 $ 0.19 $ 0.70 $ 1.21 Discontinued operations 0.03 — — 0.01 0.04 $ 0.16 $ 0.18 $ 0.19 $ 0.71 $ 1.25 Diluted weighted-average shares outstanding 1,454 1,453 1,454 1,455 1,454 Following summarizes significant charges (credits) included in FCX’s net income attributable to common stockholders for the 2017 quarters: • Net charges at Cerro Verde related to Peruvian government claims for disputed royalties (refer to Note 12 for further discussion) totaled $186 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $203 million to operating income, $145 million to interest expense and $7 million to provision for income taxes, net of $169 million to noncontrolling interests), most of which was recorded in the third quarter. • Net charges associated with PT-FI workforce reductions for the year totaled $125 million to operating income ( $66 million to net income attributable to common stockholders or $0.04 per share) and included $21 million in the first quarter, $87 million in the second quarter, $9 million in the third quarter and $8 million in the fourth quarter. • Net adjustments to environmental obligations and related litigation reserves totaled $210 million to operating income and net income attributable to common stockholders ( $0.14 per share) for the year, and included net charges (credits) of $19 million in the first quarter, $(30) million in the second quarter, $64 million in the third quarter and $157 million in the fourth quarter. • Net gains on sales of assets totaled $81 million to operating income and net income attributable to common stockholders ( $0.06 per share) for the year, mostly associated with sales of oil and gas properties, and included $23 million in the first quarter, $10 million in the second quarter, $33 million in the third quarter and $15 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions. • Net tax credits totaled $438 million to net income attributable to common stockholders ( $0.30 per share) for the year, primarily associated with provisional tax credits associated with U.S. tax reform ( $393 million ), which were recorded in the fourth quarter. Refer to Note 11 for further discussion. • Net income from discontinued operations for the 2017 periods primarily reflected adjustments to the fair value of the potential contingent consideration related to the 2016 TFHL sale. |
SUPPLEMENTARY MINERAL RESERVE I
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) SUPPLEMENTARY MINERAL RESERVE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Mineral Reserve Information [Abstract] | |
Estimated Recoverable Proven and Probable Reserves by Location | SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) Recoverable proven and probable reserves have been calculated as of December 31, 2018 , in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCX’s proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term “reserve,” as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “proven reserves” means reserves for which (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. FCX’s reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies. Estimated recoverable proven and probable reserves at December 31, 2018 , were determined using $2.50 per pound for copper in North America and South America and $2.00 per pound for copper in Indonesia, $1,000 per ounce for gold and $10 per pound for molybdenum. Reserves for Indonesia would not significantly change if assessed under a long-term price of $2.50 per pound of copper as PT-FI’s reserve plan is mill-constrained by the term of its IUPK, which contains rights to extend mining rights through 2041. For the three-year period ended December 31, 2018 , LME copper settlement prices averaged $2.65 per pound, LBMA gold prices averaged $1,259 per ounce and the weekly average price for molybdenum quoted by Metals Week averaged $8.85 per pound. The recoverable proven and probable reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economically and legally extracted or produced at the time of the reserve determination. Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2018 Copper a (billion pounds) Gold (million ounces) Molybdenum (billion pounds) North America 49.9 0.6 3.06 South America 33.5 — 0.72 Indonesia 36.2 b 30.2 b — Consolidated c 119.6 30.8 3.78 Net equity interest d 86.8 17.0 3.44 a. Estimated consolidated recoverable copper reserves included 2.0 billion pounds in leach stockpiles and 0.6 billion pounds in mill stockpiles. b. Includes 13.0 billion pounds of copper and 10.1 million ounces of gold associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest. Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK. c. Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 3 for further discussion). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 393.1 million ounces of silver, which were determined using $15 per ounce and include 55.7 million ounces associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest. d. Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of FCX’s ownership in subsidiaries). FCX's net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 269.3 million ounces of silver. Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2018 Average Ore Grade Per Metric Ton a Recoverable Proven and Probable Reserves b Ore a (million metric tons) Copper (%) Gold (grams) Molybdenum (%) Copper (billion pounds) Gold (million ounces) Molybdenum (billion pounds) North America Developed and producing: Morenci 4,619 0.24 — — c 15.6 — 0.18 Sierrita 3,369 0.23 — c 0.02 14.0 0.2 1.42 Bagdad 2,426 0.32 — c 0.02 14.7 0.1 0.74 Safford, including d 839 0.44 — — 6.2 — — Chino, including Cobre 395 0.46 0.03 0.01 3.4 0.3 0.01 Climax 168 — — 0.15 — — 0.52 Henderson 71 — — 0.17 — — 0.24 Tyrone 55 0.25 — — 0.3 — — Miami — — — — 0.1 — — South America Developed and producing: Cerro Verde 4,324 0.35 — 0.01 29.6 — 0.72 El Abra 705 0.42 — — 3.9 — — Indonesia e Developed and producing: Deep Mill Level Zone 432 0.92 0.76 — 7.6 8.4 — Deep Ore Zone 51 0.50 0.57 — 0.5 0.8 — Big Gossan 57 2.30 1.02 — 2.6 1.3 — Grasberg open pit 5 1.26 1.98 — 0.2 0.4 — Under development: Grasberg Block Cave 963 0.96 0.72 — 17.2 14.1 — Undeveloped: Kucing Liar 349 1.24 1.03 — 8.1 5.2 — Total 100% basis 18,828 124.0 30.8 3.83 Consolidated f 119.6 30.8 3.78 FCX’s equity share g 86.8 17.0 3.44 a. Excludes material contained in stockpiles. b. Includes estimated recoverable metals contained in stockpiles. c. Amounts not shown because of rounding. d. The Lone Star oxide project is under development. e. Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK. f. Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America. Refer to Note 3 for further discussion. g. Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. FCX's net equity interest for estimated metal quantities in Indonesia reflects an approximate 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Refer to Note 3 for further discussion of FCX’s ownership in subsidiaries. |
SUPPLEMENTARY OIL AND GAS INFOR
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) Following the sales of substantially all of FCX’s oil and gas properties, including the sale of its Deepwater GOM, onshore California and Haynesville oil and gas properties in 2016, along with the sales of its property interests in the Madden area in central Wyoming and certain property interests in the GOM Shelf in 2017 and 2018, FCX’s oil and gas producing activities are not considered significant beginning in 2017. Refer to Note 2 for further discussion. Costs Incurred. A summary of the costs incurred for FCX’s oil and gas acquisition, exploration and development activities for the year ended December 31, 2016, follows: Property acquisition costs for unproved properties $ 7 Exploration costs 22 Development costs 749 $ 778 These amounts included increases in AROs of $37 million , capitalized general and administrative expenses of $78 million , and capitalized interest of $7 million . Capitalized Costs. The aggregate capitalized costs subject to amortization for oil and gas properties and the aggregate related accumulated amortization as of December 31, 2016, follow: Properties subject to amortization $ 27,507 Accumulated amortization a (27,433 ) $ 74 a. Includes charges of $4.3 billion in 2016 to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. The average amortization rate per barrel of oil equivalents (BOE) was $17.58 in 2016 . Costs Not Subject to Amortization. Including amounts determined to be impaired, FCX transferred $4.9 billion of costs associated with unevaluated properties to the full cost pool in 2016. Sales of unevaluated properties totaled $1.6 billion in 2016. Following FCX’s disposition of its Deepwater GOM and onshore California oil and gas properties in fourth-quarter 2016, the carrying value of all of FCX’s remaining oil and gas properties was included in the amortization base at December 31, 2018, and 2017. Results of Operations for Oil and Gas Producing Activities. The results of operations from oil and gas producing activities for the year ended December 31, 2016, presented below, excludes non-oil and gas revenues, general and administrative expenses, interest expense and interest income. Income tax benefit was determined by applying the statutory rates to pre-tax operating results: Revenues from oil and gas producing activities $ 1,513 Production and delivery costs a (1,829 ) Depreciation, depletion and amortization (839 ) Impairment of oil and gas properties (4,317 ) Income tax benefit (based on FCX’s U.S. federal statutory tax rate) b — Results of operations from oil and gas producing activities $ (5,472 ) a. Includes $926 million in charges related to drillship settlements/idle rig and contract termination costs. b. FCX has provided a full valuation allowance on losses associated with oil and gas activities. Proved Oil and Natural Gas Reserve Information. The following information summarizes the net proved reserves of oil (including condensate and natural gas liquids (NGLs)), and natural gas and the standardized measure as described below for the year ended December 31, 2016. All of FCX’s oil and natural gas reserves are located in the U.S. Management believes the reserve estimates presented herein are reasonable and prepared in accordance with guidelines established by the SEC as prescribed in Regulation S-X, Rule 4-10. However, there are numerous uncertainties inherent in estimating quantities and values of proved reserves and in projecting future rates of production and the amount and timing of development expenditures, including many factors beyond FCX’s control. Reserve engineering is a subjective process of estimating the recovery from underground accumulations of oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Because all oil and natural gas reserve estimates are to some degree subjective, the quantities of oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures, and future crude oil and natural gas sales prices may all differ from those assumed in these estimates. In addition, different reserve engineers may make different estimates of reserve quantities and cash flows based upon the same available data. Therefore, the standardized measure of discounted future net cash flows (Standardized Measure) shown below represents estimates only and should not be construed as the current market value of the estimated reserves attributable to FCX’s oil and gas properties. In this regard, the information set forth in the following tables includes revisions of reserve estimates attributable to proved properties acquired in the 2013 oil and gas acquisitions, and reflects additional information from subsequent development activities, production history of the properties involved and any adjustments in the projected economic life of such properties resulting from changes in product prices. Estimated Quantities of Oil and Natural Gas Reserves. The following table sets forth certain data pertaining to proved, proved developed and proved undeveloped reserves, all of which are in the U.S., for the year ended December 31, 2016 . Oil Gas Total (MMBbls) a,b (Bcf) a (MMBOE) a 2016 Proved reserves: Balance at beginning of year 207 274 252 Extensions and discoveries — — — Acquisitions of reserves in-place — — — Revisions of previous estimates 1 — 1 Sale of reserves in-place (168 ) (118 ) (187 ) Production (36 ) (69 ) (48 ) Balance at end of year 4 87 18 Proved developed reserves at December 31, 2016 4 87 18 Proved undeveloped reserves at December 31, 2016 — — — a. MMBbls = million barrels; Bcf = billion cubic feet; MMBOE = million BOE b. Includes NGL proved reserves of 1 MMBbls (all developed) at December 31, 2016 . The average realized sales prices used in FCX’s reserve reports as of December 31, 2016 , were $34.26 per barrel of crude oil and $2.40 per one thousand cubic feet (Mcf) of natural gas. For the year ended December 31, 2016 , FCX sold reserves in-place totaling 187 MMBOE, primarily representing all of its Deepwater GOM, onshore California and Haynesville properties. Standardized Measure. The Standardized Measure (discounted at 10 percent ) from production of proved oil and natural gas reserves has been developed in accordance with SEC guidelines. FCX estimated the quantity of proved oil and natural gas reserves and the future periods in which they were expected to be produced based on year-end economic conditions. Estimates of future net revenues from FCX’s proved oil and gas properties and the present value thereof were made using the twelve-month average of the first-day-of-the-month historical reference prices as adjusted for location and quality differentials, which were held constant throughout the life of the oil and gas properties, except where such guidelines permit alternate treatment, including the use of fixed and determinable contractual price escalations (excluding the impact of crude oil derivative contracts). Future gross revenues were reduced by estimated future operating costs (including production and ad valorem taxes) and future development and abandonment costs, all of which were based on current costs in effect at December 31, 2016 , and held constant throughout the life of the oil and gas properties. Future income taxes were calculated by applying the statutory federal and state income tax rate to pre-tax future net cash flows, net of the tax basis of the respective oil and gas properties and utilization of FCX’s available tax carryforwards related to its oil and gas operations. The Standardized Measure related to proved oil and natural gas reserves as of December 31, 2016, follows: Future cash inflows $ 345 Future production expense (175 ) Future development costs a (439 ) Future income tax expense — Future net cash flows (269 ) Discounted at 10% per year 32 Standardized Measure $ (237 ) a. Includes estimated asset retirement costs of $0.4 billion at December 31, 2016 . A summary of the principal sources of changes in the Standardized Measure for the year ended December 31, 2016, follows: Balance at beginning of year $ 1,392 Changes during the year: Sales, net of production expenses (831 ) Net changes in sales and transfer prices, net of production expenses (341 ) Extensions, discoveries and improved recoveries — Changes in estimated future development costs, including timing and other 146 Previously estimated development costs incurred during the year 295 Sales of reserves in-place (1,049 ) Revisions of quantity estimates 12 Accretion of discount 139 Net change in income taxes — Total changes (1,629 ) Balance at end of year $ (237 ) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Additions (Deductions) Balance at Charged to Charged to Other Balance at Beginning of Costs and Other Additions End of Year Expense Accounts (Deductions) Year Reserves and allowances deducted from asset accounts: Valuation allowance for deferred tax assets Year Ended December 31, 2018 $ 4,575 $ (345 ) a $ 8 b $ 269 c $ 4,507 Year Ended December 31, 2017 6,058 (1,484 ) d 1 b — 4,575 Year Ended December 31, 2016 4,183 1,852 23 b — 6,058 Reserves for non-income taxes: Year Ended December 31, 2018 $ 58 $ 7 $ (1 ) $ (2 ) e $ 62 Year Ended December 31, 2017 64 (2 ) — (4 ) e 58 Year Ended December 31, 2016 83 13 (3 ) (29 ) e 64 a. Primarily relates to a $305 million decrease in U.S. foreign tax credits associated with expirations and 2017 tax reform adjustments, and a decrease of $54 million in U.S. federal net operating losses associated with 2018 usage and 2017 tax reform. b. Relates to a valuation allowance for tax benefits primarily associated with actuarial losses for U.S. defined benefit plans included in other comprehensive income (loss). c. Primarily relates to a $244 million increase in foreign net operating losses for which no benefit is expected to be realized resulting from PT-FI’s acquisition of PT Rio Tinto Indonesia. d. Relates to a $1.1 billion decrease associated with a reduction in the corporate income tax rate applicable to U.S. federal deferred tax assets and $371 million for the reversal of valuation allowances on U.S. federal alternative minimum tax credits. e. Represents amounts paid or adjustments to reserves based on revised estimates. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The consolidated financial statements of Freeport-McMoRan Inc. (FCX) include the accounts of those subsidiaries where it directly or indirectly has more than 50 percent of the voting rights and/or has control over the subsidiary. As of December 31, 2018, the most significant entities that FCX consolidates include its 48.76 percent -owned subsidiary PT Freeport Indonesia (PT-FI), and the following wholly owned subsidiaries: Freeport Minerals Corporation (FMC) and Atlantic Copper, S.L.U. (Atlantic Copper). Refer to Notes 2 and 3 for further discussion, including FCX’s conclusion to consolidate PT-FI. During 2016, FCX completed sales of its Africa mining operation held by FMC and substantially all of its oil and gas operations. Refer to Note 2 for further discussion. FCX’s unincorporated joint ventures are reflected using the proportionate consolidation method (refer to Note 3 for further discussion). Investments in unconsolidated companies owned 20 percent or more are recorded using the equity method. Investments in companies owned less than 20 percent , and for which FCX does not exercise significant influence, are recorded using the cost method. All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts. |
Business Segments | Business Segments. FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. FCX’s reportable segments include the Morenci, Cerro Verde and Grasberg (Indonesia mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining. Refer to Note 16 for further discussion. |
Use of Estimates | Use of Estimates. The preparation of FCX’s financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include minerals reserve estimation; asset lives for depreciation, depletion and amortization; environmental obligations; asset retirement obligations; estimates of recoverable copper in mill and leach stockpiles; deferred taxes and valuation allowances; reserves for contingencies and litigation; asset acquisitions and impairment, including estimates used to derive future cash flows associated with those assets; pension benefits; and valuation of derivative instruments. Actual results could differ from those estimates. |
Functional Currency | Functional Currency. The functional currency for the majority of FCX’s foreign operations is the U.S. dollar. For foreign subsidiaries whose functional currency is the U.S. dollar, monetary assets and liabilities denominated in the local currency are translated at current exchange rates, and non-monetary assets and liabilities, such as inventories, property, plant, equipment and mine development costs, are translated at historical rates. Gains and losses resulting from translation of such account balances are included in other income, net, as are gains and losses from foreign currency transactions. Foreign currency gains (losses) totaled $14 million in 2018 , $(5) million in 2017 and $32 million in 2016 . |
Cash Equivalents | Cash Equivalents. Highly liquid investments purchased with maturities of three months or less are considered cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash and Restricted Cash Equivalents. FCX’s restricted cash and restricted cash equivalents are primarily related to PT-FI’s commitment for the development of a new smelter in Indonesia; guarantees and commitments for certain mine closure and reclamation obligations, and customs duty taxes; and funds held as cash collateral for surety bonds related to plugging and abandonment obligations of certain oil and gas properties. Restricted cash and restricted cash equivalents are classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. Restricted cash and restricted cash equivalents are comprised of time deposits and money market funds. |
Inventories | Inventories. Inventories include materials and supplies, mill and leach stockpiles, and product inventories. Inventories are stated at the lower of weighted-average cost or net realizable value (NRV). Mill and Leach Stockpiles. Mill and leach stockpiles are work-in-process inventories for FCX’s mining operations. Mill and leach stockpiles contain ore that has been extracted from an ore body and is available for metal recovery. Mill stockpiles contain sulfide ores, and recovery of metal is through milling, concentrating and smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities ( i.e., solution extraction and electrowinning (SX/EW)). The recorded cost of mill and leach stockpiles includes mining and haulage costs incurred to deliver ore to stockpiles, depreciation, depletion, amortization and site overhead costs. Material is removed from the stockpiles at a weighted-average cost per pound. Because it is impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grade of the material delivered to mill and leach stockpiles. Expected copper recovery rates for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. Expected copper recovery rates for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90 percent depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80 percent of the total copper recovery may occur during the first year, and the remaining copper may be recovered over many years. Processes and recovery rates for mill and leach stockpiles are monitored regularly, and recovery rate estimates are adjusted periodically as additional information becomes available and as related technology changes. Adjustments to recovery rates will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper. Product. Product inventories include raw materials, work-in-process and finished goods. Raw materials are primarily unprocessed concentrate at Atlantic Copper’s smelting and refining operations. Work-in-process inventories are primarily copper concentrate at various stages of conversion into anode and cathode at Atlantic Copper’s operations. Atlantic Copper’s in-process inventories are valued at the weighted-average cost of the material fed to the smelting and refining process plus in-process conversion costs. Finished goods for mining operations represent salable products ( e.g. , copper and molybdenum concentrate, copper anode, copper cathode, copper rod, copper wire, molybdenum oxide, and high-purity molybdenum chemicals and other metallurgical products). Finished goods are valued based on the weighted-average cost of source material plus applicable conversion costs relating to associated process facilities. Costs of finished goods and work-in-process ( i.e. , not raw materials) inventories include labor and benefits, supplies, energy, depreciation, depletion, amortization, site overhead costs and other necessary costs associated with the extraction and processing of ore, including, depending on the process, mining, haulage, milling, concentrating, smelting, leaching, solution extraction, refining, roasting and chemical processing. Corporate general and administrative costs are not included in inventory costs. |
Property, Plant, Equipment and Mine Development Costs | Property, Plant, Equipment and Mine Development Costs. Property, plant, equipment and mine development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. Additionally, interest expense allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance ( i.e. , turnarounds) are charged to expense as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production (UOP) method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for primary molybdenum mines). Development costs and acquisition costs for proven and probable mineral reserves that relate to a specific ore body are depreciated using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. Depreciation, depletion and amortization using the UOP method is recorded upon extraction of the recoverable copper or molybdenum from the ore body, at which time it is allocated to inventory cost and then included as a component of cost of goods sold. Other assets are depreciated on a straight-line basis over estimated useful lives of up to 40 years for buildings and three to 30 years for machinery and equipment, and mobile equipment. Included in property, plant, equipment and mine development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of FMC in 2007. The concept of VBPP may be interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) mineralized material, which includes measured and indicated amounts, that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential. Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. Refer to Note 5 for further discussion. |
Impairment of Long-Lived Mining Assets | Impairment of Long-Lived Mining Assets. FCX assesses the carrying values of its long-lived mining assets for impairment when events or changes in circumstances indicate that the related carrying amounts of such assets may not be recoverable. In evaluating long-lived mining assets for recoverability, estimates of pre-tax undiscounted future cash flows of FCX’s individual mines are used. An impairment is considered to exist if total estimated undiscounted future cash flows are less than the carrying amount of the asset. Once it is determined that an impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value. The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of FCX’s mining operations are derived from current business plans, which are developed using near-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to near- and long-term metal price assumptions, other key assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; VBPP estimates; and the use of appropriate discount rates in the measurement of fair value. FCX believes its estimates and models used to determine fair value are similar to what a market participant would use. As quoted market prices are unavailable for FCX’s individual mining operations, fair value is determined through the use of after-tax discounted estimated future cash flows ( i.e. , Level 3 measurement). |
Oil and Gas Properties | Oil and Gas Properties. FCX follows the full cost method of accounting specified by the U.S. Securities and Exchange Commission’s (SEC) rules whereby all costs associated with oil and gas property acquisition, exploration and development activities are capitalized into a cost center on a country-by-country basis. Such costs include internal general and administrative costs, such as payroll and related benefits and costs directly attributable to employees engaged in acquisition, exploration and development activities. General and administrative costs associated with production, operations, marketing and general corporate activities are charged to expense as incurred. Capitalized costs, along with estimated future costs to develop proved reserves and asset retirement costs that are not already included in oil and gas properties, net of related salvage value, are amortized to expense under the UOP method using engineers’ estimates of the related, by-country proved oil and natural gas reserves. The costs of unproved oil and gas properties were excluded from amortization until the properties were evaluated. Costs were transferred into the amortization base on an ongoing basis as the properties were evaluated and proved oil and natural gas reserves were established or if impairment was determined. Unproved oil and gas properties were assessed periodically, at least annually, to determine whether impairment had occurred. FCX assessed unproved oil and gas properties for impairment on an individual basis or as a group if properties were individually insignificant. The assessment considered the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves, the economic viability of development if proved reserves were assigned and other current market conditions. During any period in which these factors indicated an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs were transferred to the full cost pool and were then subject to amortization. Including amounts determined to be impaired, FCX transferred $4.9 billion of costs associated with unevaluated properties to the full cost pool in 2016. The transfer of costs into the amortization base involved a significant amount of judgment. Costs not subject to amortization consisted primarily of capitalized costs incurred for undeveloped acreage and wells in progress pending determination, together with capitalized interest for these projects. Following the completion of the sales of oil and gas properties discussed in Note 2, FCX had no unproved oil and gas properties in the consolidated balance sheets at December 31, 2018 or 2017. Interest costs totaling $7 million in 2016 were capitalized on oil and gas properties not subject to amortization and in the process of development. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless the reduction causes a significant change in proved reserves, which, absent other factors, is generally described as a 25 percent or greater change, and significantly alters the relationship between capitalized costs and proved reserves attributable to a cost center, in which case a gain or loss is recognized. Impairment of Oil and Gas Properties. Under the SEC full cost accounting rules, FCX reviewed 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 natural 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 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 reserve estimates exclude the effect of any crude oil and natural gas derivatives FCX has in place. 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 2016, net capitalized costs with respect to FCX’s proved oil and gas properties exceeded the related ceiling test limitation; therefore, impairment charges of $4.3 billion were recorded primarily because of the lower twelve-month average of the first-day-of-the-month historical reference oil price and reserve revisions. |
Deferred Mining Costs | Deferred Mining Costs. Stripping costs ( i.e. , the costs of removing overburden and waste material to access mineral deposits) incurred during the production phase of a mine are considered variable production costs and are included as a component of inventory produced during the period in which stripping costs are incurred. Major development expenditures, including stripping costs to prepare unique and identifiable areas outside the current mining area for future production that are considered to be pre-production mine development, are capitalized and amortized using the UOP method based on estimated recoverable proven and probable reserves for the ore body benefited. However, where a second or subsequent pit or major expansion is considered to be a continuation of existing mining activities, stripping costs are accounted for as a current production cost and a component of the associated inventory. |
Environmental Expenditures | Environmental Obligations. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 12 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to outside law firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation. Environmental obligations assumed in the acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur. FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly. |
Asset Retirement Obligations | Asset Retirement Obligations. FCX records the fair value of estimated asset retirement obligations (AROs) associated with tangible long-lived assets in the period incurred. Retirement obligations associated with long-lived assets are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to cost of sales. In addition, asset retirement costs (ARCs) are capitalized as part of the related asset’s carrying value and are depreciated over the asset’s respective useful life. For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition. For oil and gas properties, the fair value of the legal obligation is recognized as an ARO and as a related ARC in the period in which the well is drilled or acquired and is amortized on a UOP basis together with other capitalized costs. Substantially all of FCX’s oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores; remove platforms, tanks, production equipment and flow lines; and restore the wellsite. For non-operating properties without reserves, changes to the ARO are recorded in earnings. At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. |
Revenue Recognition | Revenue Recognition. Effective January 1, 2018, FCX adopted the new revenue recognition accounting standard, which did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations. FCX recognizes revenue for all of its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 14 for further discussion). For provisionally priced sales, 90 percent to 100 percent of the provisional payment is made upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average copper settlement prices on the London Metal Exchange (LME) or the Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange, and quoted monthly average London Bullion Market Association (LBMA) gold settlement prices. FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Moreover, because a portion of the metals contained in copper concentrate is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners that are generally fixed. Refer to Note 16 for a summary of revenue by product type. Gold sales are priced according to individual contract terms, generally the average LBMA gold settlement price for a specified month near the month of shipment. The majority of FCX’s molybdenum sales are priced based on the average published Metals Week price, plus conversion premiums for products that undergo additional processing, such as ferromolybdenum and molybdenum chemical products, for the month prior to the month of shipment. |
Stock-Based Compensation | Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value for stock-settled restricted stock units (RSUs) is based on FCX’s stock price on the date of grant. Shares of common stock are issued at the vesting date for stock-settled RSUs. The fair value of performance share units (PSUs) are determined using FCX’s stock price and a Monte-Carlo simulation model. The fair value for liability-classified awards ( i.e. , cash-settled stock appreciation rights (SARs), cash-settled RSUs and cash-settled PSUs) is remeasured each reporting period using the Black-Scholes-Merton option valuation model for SARs and FCX’s stock price for cash-settled RSUs and cash-settled PSUs. FCX has elected to recognize compensation costs for stock option awards and SARs that vest over several years on a straight-line basis over the vesting period, and for RSUs and cash-settled PSUs on the graded-vesting method over the vesting period. Refer to Note 10 for further discussion. |
Earnings Per Share | Earnings Per Share. FCX calculates its basic net income (loss) per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the year. Diluted net income (loss) per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive. Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share for the years ended December 31 follow: 2018 2017 2016 Net income (loss) from continuing operations $ 2,909 $ 2,029 $ (3,832 ) Net income from continuing operations attributable to noncontrolling interests (292 ) (274 ) (227 ) Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest — — 161 Accumulated dividends and undistributed earnings allocated to participating securities (4 ) (4 ) (3 ) Net income (loss) from continuing operations attributable to common stockholders 2,613 1,751 (3,901 ) Net (loss) income from discontinued operations (15 ) 66 (193 ) Net income from discontinued operations attributable to noncontrolling interests — (4 ) (63 ) Net (loss) income from discontinued operations attributable to common stockholders (15 ) 62 (256 ) Net income (loss) attributable to common stockholders $ 2,598 $ 1,813 $ (4,157 ) Basic weighted-average shares of common stock outstanding (millions) 1,449 1,447 1,318 Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) 9 a 7 — a Diluted weighted-average shares of common stock outstanding (millions) 1,458 1,454 1,318 Basic net income (loss) per share attributable to common stockholders: Continuing operations $ 1.80 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.79 $ 1.25 $ (3.16 ) Diluted net income (loss) per share attributable to common stockholders: Continuing operations $ 1.79 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.78 $ 1.25 $ (3.16 ) a. Excludes approximately 1 million in 2018 and 12 million in 2016 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 year are excluded from the computation of diluted net income (loss) per share of common stock. Stock options for 37 million shares of common stock were excluded in 2018 , 41 million in 2017 and 46 million in 2016 . |
New Accounting Standards | New Accounting Standards. Following is a discussion of new accounting standards. Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) related to revenue recognition. FCX adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations (refer to Revenue Recognition policy in this note). In connection with the adoption of the standard and consistent with FCX’s policy prior to adoption of the standard, FCX has elected to account for shipping and handling activities performed after control of goods has been transferred to a customer as a fulfillment cost recorded in production and delivery costs on the consolidated statements of operations. Financial Instruments. In January 2016, FASB issued an ASU that amends the guidance on the classification and measurement of financial instruments. This ASU makes limited changes to prior guidance and amends certain disclosure requirements. FCX adopted this ASU effective January 1, 2018, and adoption did not have a material impact on its financial statements. In June 2016, FASB issued an ASU that requires entities to estimate all expected credit losses for most financial assets held at the reporting date based on an expected loss model, which requires consideration of historical experience, current conditions, and reasonable and supportable forecasts. This ASU also requires enhanced disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. FCX is currently evaluating the impact this ASU will have on its financial statements. Leases. In February 2016, FASB issued an ASU that will require lessees to recognize most leases on the balance sheet. FCX adopted this ASU effective January 1, 2019, and elected the practical expedient allowing it to apply the provisions of the updated lease guidance at the January 1, 2019, effective date, without adjusting the comparative periods presented. FCX also elected an accounting policy to not recognize a lease asset and liability for leases with a term of 12 months or less and a purchase option that is not expected to be exercised. FCX completed an assessment of its lease portfolio, implemented a new information technology system, and designed processes and controls to account for its leases in accordance with the new standard. FCX has concluded that the adoption of this ASU did not have a material impact on its financial statements. FCX will begin making the required lease disclosures under the ASU beginning with its March 31, 2019, quarterly report on Form 10-Q. Statement of Cash Flows. In November 2016, FASB issued an ASU that changes the classification and presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that a statement of cash flows include the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. FCX adopted this ASU effective January 1, 2018, and adjusted its consolidated statement of cash flows for the years ended December 31, 2017 and 2016, to include restricted cash and restricted cash equivalents with cash and cash equivalents. The impact of adopting this ASU for the years ended December 31 follows: 2017 Previously Reported Impact of Adoption After Adoption a Accrued income taxes and changes in other tax payments included in cash flow from operating activities $ 473 $ (16 ) $ 457 Net cash provided by operating activities 4,682 (16 ) 4,666 Other, net included in cash flow from investing activities (25 ) 42 17 Net cash used in investing activities (1,363 ) 42 (1,321 ) Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents 264 26 290 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 4,245 158 4,403 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 4,447 184 4,631 2016 Previously Reported Impact of Adoption After Adoption a Other, net included in cash flow from operating activities $ 48 $ 8 $ 56 Net cash provided by operating activities 3,729 8 3,737 Other, net included in cash flow from investing activities 8 3 11 Net cash provided by investing activities 3,550 3 3,553 Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents 4,113 11 4,124 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 177 147 324 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 4,245 158 4,403 a. Excludes the reclassification of assets held for sale and other adjustments to conform with the current year presentation. Net Periodic Pension and Postretirement Benefit Cost. In March 2017, FASB issued an ASU that changes how entities with defined benefit pension or other postretirement benefit plans present net periodic benefit cost in the income statement. This ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item or items as other compensation costs for those employees who are receiving the benefit. In addition, only the service cost component is eligible for capitalization when applicable ( i.e. , as a cost of inventory or an internally constructed asset). The other components of net periodic benefit cost are required to be presented separately from the service cost component and outside of operating income. These other components of net periodic benefit cost are not eligible for capitalization, and FCX elected to include these other components in other income (expense), net. FCX adopted this ASU effective January 1, 2018, and adjusted its presentation in the consolidated statements of operations for the years ended December 31, 2017 and 2016, to conform with the new guidance. The impact of adopting this ASU for the years ended December 31 follows: 2017 Previously Reported Impact of Adoption Current Presentation Production and delivery $ 10,308 a $ (42 ) $ 10,266 Total cost of sales 12,022 (42 ) 11,980 Selling, general and administrative expenses 484 (7 ) 477 Mining exploration and research expenses 94 (1 ) 93 Environmental obligations and shutdown costs 251 (7 ) 244 Total costs and expenses 12,770 (57 ) 12,713 Operating income 3,633 57 3,690 Other income (expense), net 49 (57 ) (8 ) 2016 Previously Reported Impact of Adoption Current Presentation Production and delivery $ 10,733 a $ (46 ) $ 10,687 Total cost of sales 17,580 (46 ) 17,534 Selling, general and administrative expenses 607 (10 ) 597 Mining exploration and research expenses 64 (1 ) 63 Environmental obligations and shutdown costs 20 (6 ) 14 Total costs and expenses 17,622 (63 ) 17,559 Operating loss (2,792 ) 63 (2,729 ) Other income (expense), net 49 (63 ) (14 ) a. Includes $8 million for metals inventory adjustments in 2017 and $36 million in 2016. Tax Reform Reclassification. In February 2018, FASB issued an ASU that allows entities to elect to reclassify the stranded income tax effects caused by the December 2017 Tax Cuts and Jobs Act (the Act) in accumulated other comprehensive income (AOCI) to retained earnings. This election applies to the U.S. federal income tax rate change from 35 percent to 21 percent. FCX elected to early adopt this standard effective July 1, 2018, which resulted in a one-time reclassification totaling $79 million from AOCI to retained earnings in third-quarter 2018. FCX has not elected to reclassify other “indirect” income tax effects of the Act stranded in AOCI. Any additional income tax effects stranded in AOCI will continue to pass through earnings in future periods as specific classes of AOCI items are reversed. Fair Value Measurement. In August 2018, FASB issued an ASU in connection with the disclosure framework project that modifies the disclosure requirements on fair value measurements. FCX early adopted this ASU in third-quarter 2018, which did not have a material impact on its financial statements. Defined Benefit Plans . In August 2018, FASB issued an ASU in connection with the disclosure framework project that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. FCX early adopted this ASU in fourth-quarter 2018, which did not have a material impact on its financial statements. Reclassifications. As a result of adopting new accounting standards in 2018 (refer to New Accounting Standards in this Note) and the reclassification of assets held for sale (refer to Note 2), certain prior year amounts have been reclassified to conform with the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of diluted earnings per share | Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share for the years ended December 31 follow: 2018 2017 2016 Net income (loss) from continuing operations $ 2,909 $ 2,029 $ (3,832 ) Net income from continuing operations attributable to noncontrolling interests (292 ) (274 ) (227 ) Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest — — 161 Accumulated dividends and undistributed earnings allocated to participating securities (4 ) (4 ) (3 ) Net income (loss) from continuing operations attributable to common stockholders 2,613 1,751 (3,901 ) Net (loss) income from discontinued operations (15 ) 66 (193 ) Net income from discontinued operations attributable to noncontrolling interests — (4 ) (63 ) Net (loss) income from discontinued operations attributable to common stockholders (15 ) 62 (256 ) Net income (loss) attributable to common stockholders $ 2,598 $ 1,813 $ (4,157 ) Basic weighted-average shares of common stock outstanding (millions) 1,449 1,447 1,318 Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) 9 a 7 — a Diluted weighted-average shares of common stock outstanding (millions) 1,458 1,454 1,318 Basic net income (loss) per share attributable to common stockholders: Continuing operations $ 1.80 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.79 $ 1.25 $ (3.16 ) Diluted net income (loss) per share attributable to common stockholders: Continuing operations $ 1.79 $ 1.21 $ (2.96 ) Discontinued operations (0.01 ) 0.04 (0.20 ) $ 1.78 $ 1.25 $ (3.16 ) a. Excludes approximately 1 million in 2018 and 12 million in 2016 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. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The impact of adopting this ASU for the years ended December 31 follows: 2017 Previously Reported Impact of Adoption After Adoption a Accrued income taxes and changes in other tax payments included in cash flow from operating activities $ 473 $ (16 ) $ 457 Net cash provided by operating activities 4,682 (16 ) 4,666 Other, net included in cash flow from investing activities (25 ) 42 17 Net cash used in investing activities (1,363 ) 42 (1,321 ) Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents 264 26 290 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 4,245 158 4,403 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 4,447 184 4,631 2016 Previously Reported Impact of Adoption After Adoption a Other, net included in cash flow from operating activities $ 48 $ 8 $ 56 Net cash provided by operating activities 3,729 8 3,737 Other, net included in cash flow from investing activities 8 3 11 Net cash provided by investing activities 3,550 3 3,553 Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents 4,113 11 4,124 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 177 147 324 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 4,245 158 4,403 a. Excludes the reclassification of assets held for sale and other adjustments to conform with the current year presentation. The impact of adopting this ASU for the years ended December 31 follows: 2017 Previously Reported Impact of Adoption Current Presentation Production and delivery $ 10,308 a $ (42 ) $ 10,266 Total cost of sales 12,022 (42 ) 11,980 Selling, general and administrative expenses 484 (7 ) 477 Mining exploration and research expenses 94 (1 ) 93 Environmental obligations and shutdown costs 251 (7 ) 244 Total costs and expenses 12,770 (57 ) 12,713 Operating income 3,633 57 3,690 Other income (expense), net 49 (57 ) (8 ) 2016 Previously Reported Impact of Adoption Current Presentation Production and delivery $ 10,733 a $ (46 ) $ 10,687 Total cost of sales 17,580 (46 ) 17,534 Selling, general and administrative expenses 607 (10 ) 597 Mining exploration and research expenses 64 (1 ) 63 Environmental obligations and shutdown costs 20 (6 ) 14 Total costs and expenses 17,622 (63 ) 17,559 Operating loss (2,792 ) 63 (2,729 ) Other income (expense), net 49 (63 ) (14 ) a. Includes $8 million for metals inventory adjustments in 2017 and $36 million in 2016. |
DISPOSITIONS AND ACQUISITIONS (
DISPOSITIONS AND ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Dispositions And Acquisitions [Abstract] | |
Allocation of Purchase Price | The following table summarizes the allocation of the purchase price: Current assets $ 25 Property, plant, equipment and mine development costs: Mineral reserves 3,056 Mine development, infrastructure and other 1,559 Liabilities other than taxes (77 ) Deferred income taxes, net (1,063 ) a Total purchase price $ 3,500 a. Deferred income taxes have been recognized on the fair value adjustments to net assets using an Indonesia corporate income tax rate of 25 percent . |
Consolidated Impact of Transaction | The following table summarizes the consolidated impact of the transaction discussed above on FCX’s consolidated balance sheet as of December 21, 2018: Cash $ 458 Other current assets 23 Property, plant, equipment and mine development costs: Mineral reserves 3,056 Mine development, infrastructure and other 1,559 Liabilities other than taxes (77 ) Deferred income taxes, net (788 ) Noncontrolling interests (4,762 ) a Capital in excess of par value 531 |
Carrying Amounts of Freeport Cobalt's Major Classes of Assets and Liabilities | The carrying amounts of Freeport Cobalt’s major classes of assets and liabilities, which were reclassified from held for sale in the consolidated balance sheet at December 31, 2017, follow: Assets Cash and cash equivalents $ 79 Trade receivables 76 Inventories 256 Other receivables and current assets 20 Property, plant, equipment and mine development costs, net 60 Other assets 3 Total previously included in current assets held for sale $ 494 Liabilities Accounts payable and accrued liabilities $ 176 Accrued income taxes 18 Long-term debt 112 Deferred income taxes and asset retirement obligations 17 Total previously included in current liabilities held for sale $ 323 |
Schedule of Disposal | Net (loss) income from discontinued operations in the consolidated statements of operations consists of the following: Years Ended December 31, 2018 2017 2016 Revenues a $ — $ 13 $ 959 Costs and expenses: Production and delivery costs — — 833 Depreciation, depletion and amortization — — 80 b Interest expense allocated from parent — — 39 c Other costs and expenses, net — — 10 Income (loss) before income taxes and net (loss) gain on disposal — 13 (3 ) Net (loss) gain on disposal (15 ) d 57 d (198 ) e Net (loss) income before income taxes (15 ) 70 (201 ) (Provision for) benefit from income taxes — (4 ) 8 Net (loss) income from discontinued operations $ (15 ) $ 66 $ (193 ) a. In accordance with accounting guidance, amounts are net of recognition (eliminations) of intercompany sales totaling $13 million in 2017 and $(157) million in 2016 . b. In accordance with accounting guidance, depreciation, depletion and amortization was suspended subsequent to classification as assets held for sale, which occurred in May 2016. c. In accordance with accounting guidance, interest associated with FCX’s unsecured bank term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations. d. Includes a (loss) gain of $(17) million in 2018 and $61 million in 2017 associated with the change in the fair value of contingent consideration. e. Includes a charge of $33 million associated with the settlement agreement entered into with Gécamines, partly offset by a gain of $13 million for the fair value of contingent consideration. Cash flows from discontinued operations included in the consolidated statements of cash flows for the year ended December 31, 2016, follow: Net cash provided by operating activities $ 241 Net cash used in investing activities (73 ) Net cash used in financing activities (123 ) Increase in cash and cash equivalents $ 45 |
INVENTORIES, INCLUDING LONG-T_2
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories follow: December 31, 2018 2017 Current inventories: Total materials and supplies, net a $ 1,528 $ 1,323 Mill stockpiles $ 282 $ 360 Leach stockpiles 1,171 1,062 Total current mill and leach stockpiles $ 1,453 $ 1,422 Raw materials (primarily concentrate) $ 260 $ 265 Work-in-process 192 154 Finished goods 1,326 985 Total product inventories $ 1,778 $ 1,404 Long-term inventories: Mill stockpiles $ 265 $ 300 Leach stockpiles 1,049 1,109 Total long-term inventories b $ 1,314 $ 1,409 a. Materials and supplies inventory was net of obsolescence reserves totaling $24 million at December 31, 2018 , and $29 million at December 31, 2017 . b. Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
PROPERTY, PLANT, EQUIPMENT AN_2
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant, Equipment and Mining Development Costs, Net | The components of net property, plant, equipment and mine development costs follow: December 31, 2018 2017 Proven and probable mineral reserves $ 7,089 $ 3,974 VBPP 477 536 Mine development and other 8,195 6,213 Buildings and infrastructure 8,051 7,553 Machinery and equipment 12,985 12,330 Mobile equipment 4,010 3,766 Construction in progress 3,006 2,971 Oil and gas properties 27,292 27,453 Total 71,105 64,796 Accumulated depreciation, depletion, and amortization a (43,095 ) (41,802 ) Property, plant, equipment and mine development costs, net $ 28,010 $ 22,994 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | The components of other assets follow: December 31, 2018 2017 Disputed tax assessments: a PT-FI $ 493 $ 417 Cerro Verde 183 185 Long-term receivable for taxes b 260 445 Intangible assets c 398 307 Investments: Assurance bond d 126 123 PT Smelting e 125 61 Fixed income and equity securities 29 30 Other 36 48 Contingent consideration associated with sales of assets f 189 234 Legally restricted funds g 181 189 Rio Tinto’s share of ARO — 68 Long-term employee receivables 20 20 Other 132 146 Total other assets $ 2,172 $ 2,273 a. Refer to Note 12 for further discussion. b. Includes tax overpayments and refunds not expected to be realized within the next 12 months (primarily associated with U.S. tax reform, refer to Note 11). c. Indefinite-lived intangible assets totaled $215 million at December 31, 2018 and 2017 . Accumulated amortization of definite-lived intangible assets totaled $51 million at December 31, 2018 , and $46 million at December 31, 2017 . d. Relates to PT-FI’s commitment for the development of a new smelter in Indonesia (refer to Note 13 for further discussion). e. PT-FI’s 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $11 million at December 31, 2018 , and $68 million at December 31, 2017 . Trade accounts receivable from PT Smelting totaled $176 million at December 31, 2018 , and $308 million at December 31, 2017 . f. Refer to Note 2 for further discussion. g. Includes $180 million at December 31, 2018 and 2017 , held in trusts for AROs related to properties in New Mexico (refer to Note 12 for further discussion). |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Additional information regarding accounts payable and accrued liabilities | The components of accounts payable and accrued liabilities follow: December 31, 2018 2017 Accounts payable $ 1,661 $ 1,546 Salaries, wages and other compensation 273 241 Accrued interest a 183 168 PT-FI contingencies b 162 — Accrued taxes, other than income taxes 109 129 Pension, postretirement, postemployment and other employee benefits c 78 114 Deferred revenue 35 91 Accrued mining royalties 29 68 Other 95 140 Total accounts payable and accrued liabilities $ 2,625 $ 2,497 a. Third-party interest paid, net of capitalized interest, was $500 million in 2018 , $565 million in 2017 and $743 million in 2016 . b. Refer to Note 12 for further discussion. c. Refer to Note 9 for long-term portion. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Components | The components of debt follow: December 31, 2018 2017 Revolving credit facility $ — $ — Cerro Verde credit facility 1,023 1,269 Senior notes and debentures: Issued by FCX: 2.375% Senior Notes due 2018 — 1,408 3.100% Senior Notes due 2020 999 997 4.00% Senior Notes due 2021 597 596 6.75% Senior Notes due 2022 — 427 3.55% Senior Notes due 2022 1,886 1,884 6 7 / 8 % Senior Notes due 2023 768 776 3.875% Senior Notes due 2023 1,915 1,914 4.55% Senior Notes due 2024 845 845 5.40% Senior Notes due 2034 741 740 5.450% Senior Notes due 2043 1,843 1,842 Issued by FMC: 7 1 / 8 % Debentures due 2027 115 115 9½% Senior Notes due 2031 126 127 6 1 / 8 % Senior Notes due 2034 117 116 Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC): 6 7 / 8 % Senior Notes due 2023 — 54 Other 166 119 Total debt 11,141 13,229 Less current portion of debt (17 ) (1,414 ) Long-term debt $ 11,124 $ 11,815 |
Schedule of Long-term Debt Instruments [Table Text Block] | A summary of the tenders follows: Principal Amount Outstanding Principal Amount Tendered Book Value of New FCX Senior Notes 6.125% Senior Notes due 2019 $ 237 $ 179 $ 186 6½% Senior Notes due 2020 617 552 583 6.625% Senior Notes due 2021 261 228 242 6.75% Senior Notes due 2022 449 404 432 6 7 / 8 % Senior Notes due 2023 778 728 785 $ 2,342 $ 2,091 $ 2,228 |
Debt Instrument Redemption [Table Text Block] | The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, and beginning on the dates stated below at 100 percent of principal. Debt Instrument Date 3.55% Senior Notes due 2022 December 1, 2021 3.875% Senior Notes due 2023 December 15, 2022 4.55% Senior Notes due 2024 August 14, 2024 5.40% Senior Notes due 2034 May 14, 2034 5.450% Senior Notes due 2043 September 15, 2042 |
Schedule of Extinguishment of Debt | A summary of these transactions follows: Principal Amount Net Adjustments Book Value Redemption Value Gain 2.30% Senior Notes due 2017 $ 20 $ — $ 20 $ 20 $ — 2.375% Senior Notes due 2018 18 — 18 18 — 3.55% Senior Notes due 2022 108 (1 ) 107 96 11 3.875% Senior Notes due 2023 77 — 77 68 9 5.40% Senior Notes due 2034 50 (1 ) 49 41 8 5.450% Senior Notes due 2043 134 (2 ) 132 106 26 $ 407 $ (4 ) $ 403 $ 349 $ 54 A summary of these redemptions follows: Principal Amount Net Adjustments Book Value Redemption Value Gain FCX 6.75% Senior Notes due 2022 $ 404 $ 22 $ 426 $ 418 $ 8 FM O&G LLC 6 7 / 8 % Senior Notes due 2023 50 4 54 52 2 $ 454 $ 26 $ 480 $ 470 $ 10 A summary of these debt extinguishments follows: Principal Amount Net Adjustments Book Value Redemption Value Gain 2.375% Senior Notes due 2018 $ 74 $ — $ 74 $ 74 $ — FCX 6.125% Senior Notes due 2019 179 5 184 182 2 FM O&G LLC 6.125% Senior Notes due 2019 58 2 60 59 1 FCX 6½% Senior Notes due 2020 552 23 575 562 13 FM O&G LLC 6½% Senior Notes due 2020 65 3 68 66 2 FCX 6.625% Senior Notes due 2021 228 12 240 234 6 FM O&G LLC 6.625% Senior Notes due 2021 33 2 35 34 1 FM O&G LLC 6.750% Senior Notes due 2022 45 2 47 46 1 $ 1,234 $ 49 $ 1,283 $ 1,257 $ 26 |
OTHER LIABILITIES, INCLUDING _2
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Including Employee Benefits [Abstract] | |
Components of Other Liabilities | The components of other liabilities follow: December 31, 2018 2017 Pension, postretirement, postemployment and other employment benefits a $ 1,174 $ 1,154 Cerro Verde royalty dispute 631 368 Provision for tax positions 230 291 Other 195 199 Total other liabilities $ 2,230 $ 2,012 a. Refer to Note 7 for current portion. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | FCX uses a measurement date of December 31 for its plans. Information for those plans where the projected benefit obligations and the accumulated benefit obligations exceed the fair value of plan assets follows: December 31, 2018 2017 Projected benefit obligation $ 2,177 $ 2,287 Accumulated benefit obligation 2,048 2,163 Fair value of plan assets 1,373 1,521 |
Schedule of Changes Benefit Obligation, Fair Value of Plan Assets, and Funded Status of Plan | Information on the FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows: FCX PT-FI 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,343 $ 2,135 $ 240 $ 374 Service cost 44 44 13 20 Interest cost 84 91 14 23 Actuarial (gains) losses (124 ) 188 (19 ) (61 ) Plan amendments 4 — — — Foreign exchange (gains) losses (1 ) 3 (15 ) (2 ) Curtailment a — — — (62 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Benefit obligation at end of year 2,230 2,343 220 240 Change in plan assets: Fair value of plan assets at beginning of year 1,588 1,329 269 284 Actual return on plan assets (104 ) 230 (5 ) 11 Employer contributions b 70 145 4 28 Foreign exchange (losses) gains (1 ) 2 (17 ) (2 ) Benefits and administrative expenses paid (120 ) (118 ) (13 ) (52 ) Fair value of plan assets at end of year 1,433 1,588 238 269 Funded status $ (797 ) $ (755 ) $ 18 $ 29 Accumulated benefit obligation $ 2,101 $ 2,218 $ 181 $ 194 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.40 % 3.70 % 8.25 % 6.75 % Rate of compensation increase 3.25 % 3.25 % 4.00 % 4.00 % Balance sheet classification of funded status: Other assets $ 7 $ 11 $ 18 $ 29 Accounts payable and accrued liabilities (4 ) (4 ) — — Other liabilities (800 ) (762 ) — — Total $ (797 ) $ (755 ) $ 18 $ 29 a. Resulted from the 2017 PT-FI reductions in workforce (refer to Restructuring Charges in this note for further discussion). b. Employer contributions for 2019 are expected to approximate $74 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar). |
Schedule of Assumptions Used | The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: a Discount rate 3.70 % 4.40 % 4.60 % Expected return on plan assets 6.50 % 7.00 % 7.25 % Rate of compensation increase 3.25 % 3.25 % 3.25 % Service cost $ 44 $ 44 $ 27 Interest cost 84 91 93 Expected return on plan assets (101 ) (93 ) (96 ) Amortization of net actuarial losses 49 49 42 Net periodic benefit cost $ 76 $ 91 $ 66 a. The assumptions shown relate only to the FMC plans. The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow: 2018 2017 2016 Weighted-average assumptions: Discount rate 6.75 % 8.25 % 9.00 % Expected return on plan assets 6.75 % 7.75 % 7.75 % Rate of compensation increase 4.00 % 8.00 % 9.40 % Service cost $ 13 $ 20 $ 27 Interest cost 14 23 29 Expected return on plan assets (19 ) (21 ) (17 ) Amortization of prior service cost 2 2 3 Amortization of net actuarial (gain) loss (1 ) — 5 Curtailment loss — 4 — Net periodic benefit cost $ 9 $ 28 $ 47 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31: 2018 2017 Before Taxes After Taxes and Noncontrolling Interests Before Taxes After Taxes and Noncontrolling Interests Net actuarial loss $ 659 $ 539 $ 620 $ 412 Prior service costs 13 8 10 6 $ 672 $ 547 $ 630 $ 418 |
Schedule of Allocation of Plan Assets | A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 Government bonds $ 72 $ 72 $ — $ — Common stocks 72 72 — — Mutual funds 20 20 — — Total investments 164 $ 164 $ — $ — Cash and receivables a 75 Payables (1 ) Total pension plan net assets $ 238 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Government bonds $ 81 $ 81 $ — $ — Common stocks 78 78 — — Mutual funds 16 16 — — Total investments 175 $ 175 $ — $ — Cash and receivables a 94 Total pension plan net assets $ 269 a. Cash consists primarily of short-term time deposits. A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows: Fair Value at December 31, 2018 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 291 $ 291 $ — $ — $ — Fixed income securities 144 144 — — — Global fixed income securities 108 108 — — — Emerging markets equity 71 71 — — — Real estate property 55 55 — — — U.S. small-cap equity 54 54 — — — International small-cap equity 47 47 — — — U.S. real estate securities 41 41 — — — Short-term investments 15 15 — — — Fixed income: Government bonds 224 — — 224 — Corporate bonds 211 — — 211 — Global large-cap equity securities 94 — 94 — — Private equity investments 15 15 — — — Other investments 61 — 16 45 — Total investments 1,431 $ 841 $ 110 $ 480 $ — Cash and receivables 32 Payables (30 ) Total pension plan net assets $ 1,433 Fair Value at December 31, 2017 Total NAV Level 1 Level 2 Level 3 Commingled/collective funds: Global equity $ 404 $ 404 $ — $ — $ — Fixed income securities 154 154 — — — Global fixed income securities 115 115 — — — Emerging markets equity 87 87 — — — International small-cap equity 72 72 — — — U.S. small-cap equity 67 67 — — — Real estate property 50 50 — — — U.S. real estate securities 45 45 — — — Short-term investments 12 12 — — — Fixed income: Government bonds 208 — — 208 — Corporate bonds 168 — — 168 — Global large-cap equity securities 119 — 119 — — Private equity investments 20 20 — — — Other investments 62 — 19 43 — Total investments 1,583 $ 1,026 $ 138 $ 419 $ — Cash and receivables 21 Payables (16 ) Total pension plan net assets $ 1,588 |
Schedule of Expected Benefit Payments | The expected benefit payments for FCX’s and PT-FI’s pension plans follow: FCX PT-FI a 2019 $ 117 $ 45 2020 160 11 2021 123 19 2022 126 22 2023 128 30 2024 through 2028 664 160 a. Based on a December 31, 2018 , exchange rate of 14,409 Indonesian rupiah to one U.S. dollar. |
STOCKHOLDERS' EQUITY AND STOC_2
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of changes in the balances of each component of accumulated other comprehensive loss, net of tax, follows: Defined Benefit Plans Unrealized Losses on Securities Translation Adjustment Total Balance at January 1, 2016 $ (507 ) $ (6 ) $ 10 $ (503 ) Amounts arising during the period a,b (91 ) 2 — (89 ) Amounts reclassified c 44 — — 44 Balance at December 31, 2016 (554 ) (4 ) 10 (548 ) Amounts arising during the period a,b 7 1 — 8 Amounts reclassified c 53 — — 53 Balance at December 31, 2017 (494 ) (3 ) 10 (487 ) Adoption of new accounting standard for reclassification of income taxes (refer to Note 1) (79 ) — — (79 ) Amounts arising during the period a,b (84 ) — — (84 ) Amounts reclassified c 48 3 — 51 Sale of interest in PT-FI (refer to Note 2) (6 ) — — (6 ) Balance at December 31, 2018 $ (615 ) $ — $ 10 $ (605 ) a. Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(79) million for 2016 , $52 million for 2017 and $(87) million for 2018 . b. Includes tax provision totaling $11 million for 2016 , $45 million for 2017 and $4 million for 2018 . c. Includes amortization primarily related to actuarial losses, net of taxes of $4 million for 2016 , $5 million for 2017 and none for 2018. |
Compensation costs charged against earnings | Compensation cost charged against earnings for stock-based awards for the years ended December 31 follows: 2018 2017 2016 Selling, general and administrative expenses $ 62 $ 55 $ 69 Production and delivery 12 16 16 Capitalized costs — — 4 Total stock-based compensation 74 71 89 Less capitalized costs — — (4 ) Tax benefit and noncontrolling interests’ share (4 ) a (4 ) a (3 ) a Impact on net income (loss) from continuing operations $ 70 $ 67 $ 82 a. Charges in the U.S. are not expected to generate a future tax benefit. |
Summary of stock options and SARs outstanding and changes during the period | A summary of stock options outstanding as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balance at January 1 48,014,688 $ 28.63 Granted 3,315,000 18.74 Exercised (801,706 ) 10.05 Expired/Forfeited (3,721,618 ) 39.26 Balance at December 31 46,806,364 27.40 4.5 $ 38 Vested and exercisable at December 31 39,919,885 29.80 3.8 $ 26 |
Weighted average assumptions used to value stock option awards | Information related to stock options during the years ended December 31 follows: 2018 2017 2016 Weighted-average assumptions used to value stock option awards: Expected volatility 46.1 % 51.4 % 71.6 % Expected life of options (in years) 5.92 5.70 5.34 Expected dividend rate 1.2 % — — Risk-free interest rate 2.6 % 2.0 % 1.3 % Weighted-average grant-date fair value (per share) $ 7.84 $ 7.61 $ 2.64 Intrinsic value of options exercised $ 7 $ 5 $ — a Fair value of options vested $ 24 $ 25 $ 43 a. Rounds to less than $1 million. |
Summary Of Outstanding Stock-settled RSUs and PSUs | A summary of outstanding stock-settled RSUs and PSUs as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Awards Weighted-Average Grant-Date Fair Value Per Award Aggregate Intrinsic Value Balance at January 1 5,206,624 $ 18.48 Granted 2,127,785 a 19.11 Vested (753,806 ) 15.53 Forfeited (775,966 ) 11.91 Balance at December 31 5,804,637 19.97 $ 60 |
Summary of Outstanding Cash-Settled RSUs and PSUs | A summary of outstanding cash-settled RSUs and PSUs as of December 31, 2018 , and activity during the year ended December 31, 2018 , follows: Number of Awards Weighted-Average Grant-Date Fair Value Per Award Aggregate Intrinsic Value Balance at January 1 1,307,235 $ 13.32 Granted 870,312 17.91 Vested (666,975 ) 14.12 Forfeited (23,706 ) 15.92 Balance at December 31 1,486,866 15.61 $ 15 |
Schedule of amounts related to exercises of stock options and stock appreciation rights and the vesting of restricted stock units and restricted stock awards | The following table includes amounts related to exercises of stock options and vesting of RSUs during the years ended December 31 : 2018 2017 2016 FCX shares tendered to pay the exercise price and/or the minimum required taxes a 195,322 1,041,937 906,120 Cash received from stock option exercises $ 8 $ 5 $ — b Actual tax benefit realized for tax deductions $ 3 $ 1 $ — b Amounts FCX paid for employee taxes $ 4 $ 15 $ 6 a. Under terms of the related plans, upon exercise of stock options and vesting of stock-settled RSUs, employees may tender FCX shares to pay the exercise price and/or the minimum required taxes. b. Rounds to less than $1 million. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes and equity in affiliated companies' net earnings | Geographic sources of income (losses) before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following: 2018 2017 2016 U.S. $ 390 $ 20 $ (5,179 ) Foreign 3,502 2,882 1,707 Total $ 3,892 $ 2,902 $ (3,472 ) |
Schedule of Benefit from (Provision for) income taxes | FCX’s (provision for) benefit from income taxes for the years ended December 31 consist of the following: 2018 2017 2016 Current income taxes: Federal $ 46 a $ (3 ) $ 164 State 1 (10 ) 17 Foreign (1,445 ) a (1,426 ) (352 ) Total current (1,398 ) (1,439 ) (171 ) Deferred income taxes: Federal (106 ) 64 137 State (8 ) 10 41 Foreign (102 ) 89 (451 ) Total deferred (216 ) 163 (273 ) Adjustments 504 b 393 c 13 d Operating loss carryforwards 119 — 60 Provision for income taxes $ (991 ) $ (883 ) $ (371 ) a. In 2018, FCX completed its analysis of the Act and recognized benefits totaling $123 million ( $76 million to the U.S. tax provision and $47 million to PT-FI’s tax provision) associated with alternative minimum tax (AMT) credit refunds. b. Includes net tax credits totaling $504 million resulting from the reduction in PT-FI's statutory tax rates in accordance with PT-FI’s new special mining license (IUPK). c. Includes net tax credits totaling $393 million associated with the Act, including $272 million for the reversal of valuation allowances associated with AMT credit refunds and $121 million for a decrease in corporate income tax rates. d. Benefit related to changes in Peruvian tax rules. |
Reconciliation of the U.S. federal statutory tax rate to effective income tax rate | reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows: 2018 2017 2016 Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ (817 ) (21 )% $ (1,016 ) (35 )% $ 1,215 (35 )% Valuation allowance, net 129 a 3 28 1 (1,680 ) b 48 Foreign tax credit limitation (195 ) (5 ) (159 ) (5 ) (598 ) 17 U.S. tax reform c 123 3 393 14 — — Cerro Verde royalty dispute d (55 ) (1 ) (129 ) (5 ) — — Change in PT-FI tax rates 504 13 — — — — Impairment of oil and gas properties — — — — 520 e (15 ) Percentage depletion 141 4 227 8 211 (6 ) Withholding and other impacts on foreign earnings (232 ) (6 ) (216 ) (7 ) (93 ) 3 Effect of foreign rates different than the U.S. federal statutory rate (494 ) (13 ) 17 1 45 (1 ) State income taxes 7 1 (5 ) (1 ) 46 b (1 ) Other items, net (102 ) (3 ) (23 ) (1 ) (37 ) 1 Provision for income taxes $ (991 ) (25 )% $ (883 ) (30 )% $ (371 ) 11 % a. Refer to “Valuation Allowance” below for discussion of changes. b. Includes tax charges totaling $1.6 billion in 2016 as a result of the impairment to U.S. oil and gas properties to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit. c. Refer to discussion of 2017 U.S. Tax Reform below. d. Refer to Note 12 for further discussion of the Cerro Verde royalty dispute. e. Reflects a loss under U.S. federal income tax law related to the impairment of investments in oil and gas properties. |
Components of deferred tax assets and liabilities | The components of deferred taxes follow: December 31, 2018 2017 Deferred tax assets: Foreign tax credits $ 1,814 $ 2,129 Accrued expenses 881 789 Oil and gas properties — 236 Net operating losses 2,235 2,043 Employee benefit plans 245 248 Other 212 260 Deferred tax assets 5,387 5,705 Valuation allowances (4,507 ) (4,575 ) Net deferred tax assets 880 1,130 Deferred tax liabilities: Property, plant, equipment and mine development costs (4,200 ) (3,754 ) Undistributed earnings (578 ) (811 ) Other (130 ) (223 ) Total deferred tax liabilities (4,908 ) (4,788 ) Net deferred tax liabilities $ (4,028 ) $ (3,658 ) |
Reserve for unrecognized tax benefits, interest and penalties | A summary of the activities associated with FCX’s reserve for unrecognized tax benefits for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 390 $ 101 $ 110 Additions: Prior year tax positions 100 302 5 Current year tax positions 14 6 28 Decreases: Prior year tax positions (86 ) (1 ) (3 ) Settlements with taxing authorities (9 ) (17 ) — Lapse of statute of limitations (5 ) (1 ) (39 ) Balance at end of year $ 404 $ 390 $ 101 |
Summary of income tax examinations | The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows: Jurisdiction Years Subject to Examination Additional Open Years U.S. Federal N/A 2014-2018 Indonesia 2008, 2011-2016 2017-2018 Peru 2012-2013 2014-2018 Chile 2016-2017 2018 Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s previous imposition of a 7.5 percent export duty that PT-FI paid under protest during the period April 2017 to December 21, 2018 (refer to Note 13), a summary of these assessments follows: Tax Year Tax Assessment Interest Assessment Total 2005 $ 73 $ 35 $ 108 2007 47 23 70 2008, 2010 to 2011 55 37 92 2012 124 — 124 2013 154 74 228 2014 139 6 145 2015 158 — 158 2016 266 113 379 $ 1,016 $ 288 $ 1,304 A summary of these assessments follows: Tax Year Tax Assessment Penalty and Interest Assessment Total 2003 to 2008 $ 56 $ 130 $ 186 2009 57 51 108 2010 63 105 168 2011 49 65 114 2014 to 2018 32 — 32 $ 257 $ 351 $ 608 |
CONTINGENCIES (Tables)
CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Obligations | A summary of changes in estimated environmental obligations for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 1,439 $ 1,221 $ 1,215 Accretion expense a 100 84 81 Additions b 56 241 26 Reductions b — (43 ) (43 ) Spending (84 ) (64 ) (58 ) Balance at end of year 1,511 1,439 1,221 Less current portion (132 ) (134 ) (129 ) Long-term portion $ 1,379 $ 1,305 $ 1,092 a. Represents accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis. b. Adjustments to environmental obligations that do not provide future economic benefits are charged to operating income. Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments. |
Schedule of Asset Retirement Obligations | A summary of changes in FCX’s AROs for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 2,583 $ 2,638 $ 2,774 Liabilities incurred 1 14 12 Settlements and revisions to cash flow estimates, net 50 (112 ) 529 a Accretion expense 110 124 137 Dispositions b (37 ) (10 ) (626 ) Spending (160 ) (71 ) (188 ) Balance at end of year 2,547 2,583 2,638 Less current portion (317 ) (286 ) (240 ) Long-term portion $ 2,230 $ 2,297 $ 2,398 a. Revisions to cash flow estimates were primarily related to revised estimates for an overburden stockpile in Indonesia and at certain oil and gas properties. b. Primarily reflects the sale of certain oil and gas properties. |
Summary of income tax examinations | The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows: Jurisdiction Years Subject to Examination Additional Open Years U.S. Federal N/A 2014-2018 Indonesia 2008, 2011-2016 2017-2018 Peru 2012-2013 2014-2018 Chile 2016-2017 2018 Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s previous imposition of a 7.5 percent export duty that PT-FI paid under protest during the period April 2017 to December 21, 2018 (refer to Note 13), a summary of these assessments follows: Tax Year Tax Assessment Interest Assessment Total 2005 $ 73 $ 35 $ 108 2007 47 23 70 2008, 2010 to 2011 55 37 92 2012 124 — 124 2013 154 74 228 2014 139 6 145 2015 158 — 158 2016 266 113 379 $ 1,016 $ 288 $ 1,304 A summary of these assessments follows: Tax Year Tax Assessment Penalty and Interest Assessment Total 2003 to 2008 $ 56 $ 130 $ 186 2009 57 51 108 2010 63 105 168 2011 49 65 114 2014 to 2018 32 — 32 $ 257 $ 351 $ 608 |
Schedule of Charges for the Cerro Verde Royalty Dispute | summary of the charges recorded in 2018 and 2017 for the Cerro Verde royalty dispute follows: Royalty and related assessment charges: 2018 a 2017 Total Production and delivery $ 14 $ 203 b $ 217 Interest expense, net 370 145 515 Other expense 22 — 22 (Benefit from) provision for income taxes (35 ) 7 c (28 ) Net loss attributable to noncontrolling interests (176 ) (169 ) (345 ) $ 195 $ 186 $ 381 a. Amounts are net of gains from the refund of GEM for the period October 2012 through the year 2013. b. Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues). c. Includes tax charges of $136 million for disputed royalties ( $69 million ) and other related mining taxes ( $67 million ) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $129 million associated with disputed royalties and other related mining taxes for the period December 2006 through December 2013. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows to the components presented in the consolidated balance sheets: December 31, 2018 December 31, 2017 Balance sheet components: Cash and cash equivalents $ 4,217 $ 4,526 Restricted cash and restricted cash equivalents included in: Other current assets 110 52 Other assets 128 132 Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows $ 4,455 $ 4,710 |
Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item | A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item for the years ended December 31 follows: 2018 2017 2016 Copper futures and swap contracts: Unrealized (losses) gains: Derivative financial instruments $ (20 ) $ 4 $ 16 Hedged item – firm sales commitments 20 (4 ) (16 ) Realized (losses) gains: Matured derivative financial instruments (22 ) 30 1 |
Schedule of Derivative Instruments | A summary of FCX’s embedded derivatives at December 31, 2018 , follows: Open Average Price Per Unit Maturities Positions Contract Market Through Embedded derivatives in provisional sales contracts: Copper (millions of pounds) 489 $ 2.78 $ 2.70 May 2019 Gold (thousands of ounces) 119 1,229 1,286 April 2019 Embedded derivatives in provisional purchase contracts: Copper (millions of pounds) 117 2.79 2.71 May 2019 Cobalt (millions of pounds) 9 19.58 19.25 March 2019 |
Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions | A summary of the realized and unrealized (losses) gains recognized in operating income (loss) for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows: 2018 2017 2016 Embedded derivatives in provisional sales contracts a Copper $ (310 ) $ 489 $ 262 Gold and other (7 ) 26 4 Crude oil options and swaps a — — (35 ) Copper forward contracts b 18 (15 ) 5 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: December 31, 2018 2017 Commodity Derivative Assets: Derivatives designated as hedging instruments: Copper futures and swap contracts $ — $ 11 Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts 23 155 Copper forward contracts — 1 Total derivative assets $ 23 $ 167 Commodity Derivative Liabilities: Derivatives designated as hedging instruments: Copper futures and swap contracts $ 9 $ — Derivatives not designated as hedging instruments: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts 39 55 Copper forward contracts — 2 Total derivative liabilities $ 48 $ 57 |
Offsetting Liabilities [Table Text Block] | A summary of these unsettled commodity contracts that are offset in the balance sheet follows: Assets at December 31, Liabilities at December 31, 2018 2017 2018 2017 Gross amounts recognized: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts $ 23 $ 155 $ 39 $ 55 Copper derivatives — 12 9 2 23 167 48 57 Less gross amounts of offset: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 7 — 7 — Copper derivatives — 1 — 1 7 1 7 1 Net amounts presented in balance sheet: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 16 155 32 55 Copper derivatives — 11 9 1 $ 16 $ 166 $ 41 $ 56 Balance sheet classification: Trade accounts receivable $ 3 $ 151 $ 24 $ — Other current assets — 11 — — Accounts payable and accrued liabilities 13 4 17 56 $ 16 $ 166 $ 41 $ 56 |
Offsetting Assets [Table Text Block] | A summary of these unsettled commodity contracts that are offset in the balance sheet follows: Assets at December 31, Liabilities at December 31, 2018 2017 2018 2017 Gross amounts recognized: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts $ 23 $ 155 $ 39 $ 55 Copper derivatives — 12 9 2 23 167 48 57 Less gross amounts of offset: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 7 — 7 — Copper derivatives — 1 — 1 7 1 7 1 Net amounts presented in balance sheet: Commodity contracts: Embedded derivatives in provisional sales/purchase contracts 16 155 32 55 Copper derivatives — 11 9 1 $ 16 $ 166 $ 41 $ 56 Balance sheet classification: Trade accounts receivable $ 3 $ 151 $ 24 $ — Other current assets — 11 — — Accounts payable and accrued liabilities 13 4 17 56 $ 16 $ 166 $ 41 $ 56 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Inputs Disclosure | A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at NAV as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 14) follows: At December 31, 2018 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund $ 25 $ 25 $ 25 $ — $ — $ — Equity securities 4 4 — 4 — — Total 29 29 25 4 — — Legally restricted funds: a U.S. core fixed income fund 55 55 55 — — — Government mortgage-backed securities 38 38 — — 38 — Government bonds and notes 36 36 — — 36 — Corporate bonds 28 28 — — 28 — Asset-backed securities 11 11 — — 11 — Collateralized mortgage-backed securities 7 7 — — 7 — Money market funds 5 5 — 5 — — Municipal bonds 1 1 — — 1 — Total 181 181 55 5 121 — Derivatives: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position c 23 23 — — 23 — Contingent consideration for the sales of TFHL and onshore California oil and gas properties a 73 73 — — 73 — Total 96 96 — — 96 — Contingent consideration for the sale of the Deepwater GOM oil and gas properties a 143 127 — — — 127 Liabilities Derivatives: c Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position $ 39 $ 39 $ — $ — $ 39 $ — Copper futures and swap contracts 9 9 — 7 2 — Total 48 48 — 7 41 — Long-term debt, including current portion d 11,141 10,238 — — 10,238 — At December 31, 2017 Carrying Fair Value Amount Total NAV Level 1 Level 2 Level 3 Assets Investment securities: a,b U.S. core fixed income fund $ 25 $ 25 $ 25 $ — $ — $ — Equity securities 5 5 — 5 — — Total 30 30 25 5 — — Legally restricted funds: a U.S. core fixed income fund 55 55 55 — — — Government bonds and notes 40 40 — — 40 — Corporate bonds 32 32 — — 32 — Government mortgage-backed securities 27 27 — — 27 — Asset-backed securities 15 15 — — 15 — Money market funds 11 11 — 11 — — Collateralized mortgage-backed securities 8 8 — — 8 — Municipal bonds 1 1 — — 1 — Total 189 189 55 11 123 — Derivatives: Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross asset position c 155 155 — — 155 — Copper futures and swap contracts c 11 11 — 9 2 — Copper forward contracts c 1 1 — — 1 — Contingent consideration for the sales of TFHL and onshore California oil and gas properties a 108 108 — — 108 — Total 275 275 — 9 266 — Contingent consideration for the sale of the Deepwater GOM oil and gas properties a 150 134 — — — 134 Liabilities Derivatives: c Embedded derivatives in provisional copper, gold and cobalt sales/purchase contracts in a gross liability position $ 55 $ 55 $ — $ — $ 55 $ — Copper forward contracts 2 2 — 1 1 — Total 57 57 — 1 56 — Long-term debt, including current portion d 13,229 13,381 — — 13,381 — a. Current portion included in other current assets and long-term portion included in other assets. b. Excludes time deposits (which approximated fair value) included in (i) other current assets of $109 million at December 31, 2018 , and $52 million at December 31, 2017 , and (ii) other assets of $126 million at December 31, 2018 , and $123 million at December 31, 2017 , primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter in Indonesia (refer to Note 13 for further discussion) and PT-FI’s closure and reclamation guarantees (refer to Note 12 for further discussion). c. Refer to Note 14 for further discussion and balance sheet classifications. d. Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | A summary of the changes in the fair value of FCX ’ s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, for the years ended December 31 follows: 2018 2017 2016 Balance at beginning of year $ 134 $ 135 $ — Net unrealized (losses) gains related to assets still held at the end of the year — (1 ) 135 Settlements (7 ) — — Balance at the end of the year $ 127 $ 134 $ 135 Refer to Notes 1, 2 and 5 for a discussion of the fair value estimates associated with other assets acquired and liabilities assumed related to the PT-FI divestment, which were determined based on inputs not observable in the market and thus represent Level 3 measurements. |
BUSINESS SEGMENTS INFORMATION (
BUSINESS SEGMENTS INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues by product | FCX’s revenues attributable to the products it sold for the years ended December 31 follow: 2018 2017 2016 Copper: Concentrate $ 6,180 $ 5,604 $ 5,048 Cathode 4,366 3,759 3,495 Rod, and other refined copper products 2,396 2,387 2,082 Purchased copper a 1,053 789 428 Gold 3,231 2,126 1,592 Molybdenum 1,190 896 659 Other b 1,490 1,159 2,145 Adjustments to revenues: Treatment charges (535 ) (536 ) (652 ) Royalty expense c (246 ) (181 ) (138 ) Export duties d (180 ) (115 ) (95 ) Revenues from contracts with customers 18,945 15,888 14,564 Embedded derivatives e (317 ) 515 266 Total consolidated revenues $ 18,628 $ 16,403 $ 14,830 |
Long-lived assets by geographic area | Information concerning financial data by geographic area follows: December 31, 2018 2017 2016 Long-lived assets: a Indonesia $ 14,025 $ 8,938 $ 8,794 U.S. 8,208 8,312 8,282 Peru 7,274 7,485 7,981 Chile 1,128 1,221 1,269 Other 458 408 378 Total $ 31,093 $ 26,364 $ 26,704 a. Excludes deferred tax assets and intangible assets |
Revenues by geographic area of customer | Years Ended December 31, 2018 2017 2016 Revenues: a U.S. $ 5,790 $ 5,344 $ 5,896 Switzerland 2,941 1,200 1,147 Indonesia 2,226 2,023 1,402 Japan 1,946 1,882 1,350 Spain 1,070 1,086 878 China 873 1,136 1,125 India 389 782 553 United Kingdom 296 226 204 Chile 294 248 250 Belgium 278 39 87 Korea 269 364 219 Germany 256 161 162 France 255 122 80 Philippines 221 378 261 Bermuda 207 226 273 Other 1,317 1,186 943 Total $ 18,628 $ 16,403 $ 14,830 a. Revenues are attributed to countries based on the location of the customer. |
Schedule of financial information by business segment | Financial Information by Business Segment North America Copper Mines South America Atlantic Corporate, Copper Other Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total Year Ended December 31, 2018 Revenues: Unaffiliated customers $ 90 $ 54 $ 144 $ 2,709 $ 594 $ 3,303 $ 5,446 $ — $ 5,103 $ 2,299 $ 2,333 a $ 18,628 Intersegment 2,051 2,499 4,550 352 — 352 113 410 31 3 (5,459 ) — Production and delivery 1,183 1,945 3,128 1,887 b,c 478 2,365 1,864 d 289 5,117 2,218 (3,290 ) 11,691 Depreciation, depletion and amortization 176 184 360 456 90 546 606 79 11 27 125 e 1,754 Selling, general and administrative expenses 3 3 6 9 — 9 123 — — 21 284 443 Mining exploration and research expenses — 3 3 — — — — — — — 102 105 Environmental obligations and shutdown costs — 2 2 — — — — — — — 87 89 Net gain on sales of assets — — — — — — — — — — (208 ) f (208 ) Operating income (loss) 779 416 1,195 709 26 735 2,966 42 6 36 (226 ) 4,754 Interest expense, net 3 1 4 429 c — 429 1 — — 25 486 945 Provision for (benefit from) income taxes — — — 253 c 15 268 755 g — — 1 (33 ) h 991 Total assets at December 31, 2018 2,922 4,608 7,530 8,524 1,707 10,231 15,646 1,796 233 773 6,007 42,216 Capital expenditures 216 385 601 220 17 237 1,001 9 5 16 102 1,971 Year Ended December 31, 2017 Revenues: Unaffiliated customers $ 228 $ 180 $ 408 $ 2,811 $ 498 $ 3,309 $ 4,445 $ — $ 4,456 $ 2,031 $ 1,754 a $ 16,403 Intersegment 1,865 2,292 4,157 385 — 385 — 268 26 1 (4,837 ) — Production and delivery 1,043 1,702 2,745 1,878 c 366 2,244 1,735 i 227 4,467 1,966 (3,118 ) 10,266 j Depreciation, depletion and amortization 178 247 425 441 84 525 556 76 10 28 94 1,714 Selling, general and administrative expenses 2 2 4 9 — 9 126 i — — 18 320 477 Mining exploration and research expenses — 2 2 — — — — — — — 91 93 Environmental obligations and shutdown costs — — — — — — — — — — 244 244 Net gain on sales of assets — — — — — — — — — — (81 ) f (81 ) Operating income (loss) 870 519 1,389 868 48 916 2,028 (35 ) 5 20 (633 ) 3,690 Interest expense, net 3 1 4 212 c — 212 4 — — 18 563 801 Provision for (benefit from) income taxes — — — 436 c 10 446 869 — — 5 (437 ) h 883 Total assets at December 31, 2017 2,861 4,241 7,102 8,878 1,702 10,580 10,911 1,858 277 822 5,752 37,302 Capital expenditures 114 53 167 103 12 115 875 5 4 41 203 1,410 a. Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. b. Includes charges totaling $69 million associated with Cerro Verde’s new three-year collective labor agreement. c. Includes net charges totaling $14 million in production and delivery costs in 2018 and $203 million in 2017, $370 million in interest expense in 2018 and $145 million in 2017, and $35 million of net tax benefits in provision for income taxes in 2018 and $7 million of net tax charges in 2017 associated with disputed royalties for prior years. d. Includes net charges of $223 million primarily associated with surface water tax disputes with the local regional tax authority in Papua, assessments of prior period permit fees with the MOEF, disputed payroll withholding taxes for prior years and other tax settlements, and to write-off certain previously capitalized project costs for the new smelter in Indonesia, partially offset by inventory adjustments. e. Includes $31 million of depreciation expense at Freeport Cobalt from December 2016 through December 2017 that was suspended while it was classified as held for sale. f. Includes net gains in 2018 totaling $97 million associated with a favorable adjustment to the estimated fair value less costs to sell for Freeport Cobalt and fair value adjustments of $31 million associated with potential contingent consideration related to the 2016 sale of onshore California oil and gas properties; and net gains in 2017, primarily associated with sales of oil and gas properties of $49 million and a favorable adjustment of $13 million associated with the estimated fair value less costs to sell for the Kisanfu exploration project. Refer to Note 2 for further discussion. g. Includes tax credits totaling $571 million related to the change in PT-FI's tax rates in accordance with its IUPK ( $504 million ), U.S. tax reform ( $47 million ) and adjustment to PT-FI's historical tax positions ( $20 million ). h. Includes net tax credits totaling $76 million in 2018 and $438 million in 2017 primarily related to U.S. tax reform. Refer to Note 11 for further discussion. i. Includes net charges at PT-FI associated with workforce reductions totaling $120 million in production and delivery costs and $5 million in selling, general and administrative expenses. j. Includes a $42 million decrease related to the adoption of the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 1 for further discussion). North America Copper Mines South America Atlantic Corporate, Copper Other Cerro Indonesia Molybdenum Rod & Smelting & Elimi- FCX Morenci Other Total Verde Other Total Mining Mines Refining & Refining nations Total Year Ended December 31, 2016 Revenues: Unaffiliated customers $ 444 $ 240 $ 684 $ 2,241 $ 510 $ 2,751 $ 3,233 $ — $ 3,833 $ 1,825 $ 2,504 a,b $ 14,830 Intersegment 1,511 2,179 3,690 187 — 187 62 186 29 5 (4,159 ) — Production and delivery 1,162 1,752 2,914 1,351 407 1,758 1,775 212 3,833 1,712 (1,517 ) c 10,687 d Depreciation, depletion and amortization 217 313 530 443 110 553 384 68 10 29 956 2,530 Impairment of oil and gas properties — — — — — — — — — — 4,317 4,317 Selling, general and administrative expenses 2 3 5 8 1 9 88 — — 17 478 c 597 Mining exploration and research expenses — 3 3 — — — — — — — 60 63 Environmental obligations and shutdown costs — — — — — — — — — — 14 14 Net gain on sales of assets (576 ) — (576 ) — — — — — — — (73 ) (649 ) Operating income (loss) 1,150 348 1,498 626 (8 ) 618 1,048 (94 ) 19 72 (5,890 ) (2,729 ) Interest expense, net 3 1 4 82 — 82 — — — 15 654 755 Provision for (benefit from) income taxes — — — 222 (6 ) 216 442 — — 9 (296 ) 371 Total assets at December 31, 2016 2,863 4,448 7,311 9,076 1,533 10,609 10,493 1,934 220 658 6,092 37,317 Capital expenditures 77 25 102 380 2 382 1,025 2 1 17 1,284 e 2,813 a. Includes revenues from FCX’s molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines. b. Includes net mark-to-market losses totaling $35 million associated with oil derivative contracts, which were entered into as part of the terms to sell the onshore California oil and gas properties in 2016. c. Includes net charges for oil and gas operations totaling $1.0 billion in production and delivery costs, primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments, asset impairments and other net charges, and $85 million in selling, general and administrative expenses for net restructuring charges. d. Includes a $46 million decrease related to the adoption of the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 1 for further discussion). e. Includes $1.2 billion associated with oil and gas operations and $73 million associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations. |
GUARANTOR FINANCIAL STATEMENT_2
GUARANTOR FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor Financial Statements [Abstract] | |
Condensed Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 309 $ 620 $ 10,376 $ (585 ) $ 10,720 Property, plant, equipment and mine development costs, net 19 7 27,984 — 28,010 Investments in consolidated subsidiaries 19,064 — — (19,064 ) — Other assets 880 23 3,218 (635 ) 3,486 Total assets $ 20,272 $ 650 $ 41,578 $ (20,284 ) $ 42,216 LIABILITIES AND EQUITY Current liabilities $ 245 $ 34 $ 3,667 $ (617 ) $ 3,329 Long-term debt, less current portion 9,594 6,984 5,649 (11,103 ) 11,124 Deferred income taxes 524 a — 3,508 — 4,032 Environmental and asset retirement obligations, less current portion — 227 3,382 — 3,609 Investments in consolidated subsidiary — 578 10,513 (11,091 ) — Other liabilities 111 3,340 2,265 (3,486 ) 2,230 Total liabilities 10,474 11,163 28,984 (26,297 ) 24,324 Equity: Stockholders’ equity 9,798 (10,513 ) 9,912 601 9,798 Noncontrolling interests — — 2,682 5,412 8,094 Total equity 9,798 (10,513 ) 12,594 6,013 17,892 Total liabilities and equity $ 20,272 $ 650 $ 41,578 $ (20,284 ) $ 42,216 a. All U.S.-related deferred income taxes are recorded at the parent company. CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX ASSETS Current assets $ 75 $ 671 $ 10,670 $ (790 ) $ 10,626 Property, plant, equipment and mine development costs, net 14 11 22,979 (10 ) 22,994 Investments in consolidated subsidiaries 19,570 — — (19,570 ) — Other assets 943 48 3,182 (491 ) 3,682 Total assets $ 20,602 $ 730 $ 36,831 $ (20,861 ) $ 37,302 LIABILITIES AND EQUITY Current liabilities $ 1,683 $ 220 $ 3,949 $ (938 ) $ 4,914 Long-term debt, less current portion 10,021 6,512 5,552 (10,270 ) 11,815 Deferred income taxes 748 a — 2,915 — 3,663 Environmental and asset retirement obligations, less current portion — 201 3,401 — 3,602 Investments in consolidated subsidiary — 853 10,397 (11,250 ) — Other liabilities 173 3,340 1,987 (3,488 ) 2,012 Total liabilities 12,625 11,126 28,201 (25,946 ) 26,006 Equity: Stockholders’ equity 7,977 (10,396 ) 5,916 4,480 7,977 Noncontrolling interests — — 2,714 605 3,319 Total equity 7,977 (10,396 ) 8,630 5,085 11,296 Total liabilities and equity $ 20,602 $ 730 $ 36,831 $ (20,861 ) $ 37,302 a. All U.S.-related deferred income taxes are recorded at the parent company . |
Condensed Income Statement | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 59 $ 18,569 $ — $ 18,628 Total costs and expenses 28 58 13,798 (10 ) 13,874 Operating (loss) income (28 ) 1 4,771 10 4,754 Interest expense, net (388 ) (301 ) (734 ) 478 (945 ) Net gain (loss) on early extinguishment of debt 7 2 (2 ) — 7 Other income (expense), net 477 — 77 (478 ) 76 Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses) 68 (298 ) 4,112 10 3,892 (Provision for) benefit from income taxes (176 ) 61 (874 ) (2 ) (991 ) Equity in affiliated companies’ net earnings (losses) 2,710 10 (219 ) (2,493 ) 8 Net income (loss) from continuing operations 2,602 (227 ) 3,019 (2,485 ) 2,909 Net loss from discontinued operations — — (15 ) — (15 ) Net income (loss) 2,602 (227 ) 3,004 (2,485 ) 2,894 Net income attributable to noncontrolling interests — — (68 ) (224 ) (292 ) Net income (loss) attributable to common stockholders $ 2,602 $ (227 ) $ 2,936 $ (2,709 ) $ 2,602 Other comprehensive (loss) income (33 ) — (33 ) 33 (33 ) Total comprehensive income (loss) $ 2,569 $ (227 ) $ 2,903 $ (2,676 ) $ 2,569 Year Ended December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 52 $ 16,351 $ — $ 16,403 Total costs and expenses 39 78 12,586 10 12,713 Operating (loss) income (39 ) (26 ) 3,765 (10 ) 3,690 Interest expense, net (467 ) (227 ) (455 ) 348 (801 ) Net gain (loss) on early extinguishment of debt 22 5 (6 ) — 21 Other income (expense), net 336 — 4 (348 ) (8 ) (Loss) income before income taxes and equity in affiliated companies’ net earnings (losses) (148 ) (248 ) 3,308 (10 ) 2,902 Benefit from (Provision for) income taxes 220 (108 ) (998 ) 3 (883 ) Equity in affiliated companies’ net earnings (losses) 1,745 10 (337 ) (1,408 ) 10 Net income (loss) from continuing operations 1,817 (346 ) 1,973 (1,415 ) 2,029 Net income from discontinued operations — — 66 — 66 Net income (loss) 1,817 (346 ) 2,039 (1,415 ) 2,095 Net income attributable to noncontrolling interests: Continuing operations — — (150 ) (124 ) (274 ) Discontinued operations — — (4 ) — (4 ) Net income (loss) attributable to common stockholders $ 1,817 $ (346 ) $ 1,885 $ (1,539 ) $ 1,817 Other comprehensive income (loss) 61 — 61 (61 ) 61 Total comprehensive income (loss) $ 1,878 $ (346 ) $ 1,946 $ (1,600 ) $ 1,878 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Revenues $ — $ 379 $ 14,451 $ — $ 14,830 Total costs and expenses 72 3,074 a 14,403 a 10 17,559 Operating (loss) income (72 ) (2,695 ) 48 (10 ) (2,729 ) Interest expense, net (534 ) (56 ) (498 ) 333 (755 ) Net gain on early extinguishment of debt 26 — — — 26 Other income (expense), net 268 — 10 (292 ) (14 ) (Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings (312 ) (2,751 ) (440 ) 31 (3,472 ) (Provision for) benefit from income taxes (2,233 ) 1,053 821 (12 ) (371 ) Equity in affiliated companies’ net (losses) earnings (1,609 ) (3,101 ) (4,790 ) 9,511 11 Net (loss) income from continuing operations (4,154 ) (4,799 ) (4,409 ) 9,530 (3,832 ) Net income from discontinued operations — — (154 ) (39 ) (193 ) Net (loss) income (4,154 ) (4,799 ) (4,563 ) 9,491 (4,025 ) Net income and gain on redemption and preferred dividends attributable to noncontrolling interests: Continuing operations — — — (66 ) (66 ) Discontinued operations — — (63 ) — (63 ) Net (loss) income attributable to common stockholders $ (4,154 ) $ (4,799 ) $ (4,626 ) $ 9,425 $ (4,154 ) Other comprehensive (loss) income (45 ) — (45 ) 45 (45 ) Total comprehensive (loss) income $ (4,199 ) $ (4,799 ) $ (4,671 ) $ 9,470 $ (4,199 ) a. Includes impairment charges totaling $1.5 billion at the FM O&G LLC Guarantor and $2.8 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX’s oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge. |
Condensed Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2018 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (40 ) $ (487 ) $ 4,390 $ — $ 3,863 Cash flow from investing activities: Capital expenditures (2 ) — (1,969 ) — (1,971 ) Acquisition of PT Rio Tinto Indonesia — — (3,500 ) — (3,500 ) Intercompany loans (832 ) — — 832 — Dividends from (investments in) consolidated subsidiaries 2,475 — 84 (2,559 ) — Asset sales and other, net 460 6 (13 ) — 453 Net cash provided by (used in) investing activities 2,101 6 (5,398 ) (1,727 ) (5,018 ) Cash flow from financing activities: Proceeds from debt — — 632 — 632 Repayments of debt (1,826 ) (53 ) (838 ) — (2,717 ) Intercompany loans — 526 306 (832 ) — Proceeds from sale of PT Freeport Indonesia shares — — 3,710 (210 ) 3,500 Cash dividends paid and distributions received, net (217 ) — (3,032 ) 2,753 (496 ) Other, net (18 ) — (17 ) 16 (19 ) Net cash (used in) provided by financing activities (2,061 ) 473 761 1,727 900 Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents — (8 ) (247 ) — (255 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — 8 4,702 — 4,710 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ — $ 4,455 $ — $ 4,455 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (156 ) $ (467 ) $ 5,289 $ — $ 4,666 Cash flow from investing activities: Capital expenditures — (25 ) (1,385 ) — (1,410 ) Intercompany loans (777 ) — — 777 — Dividends from (investments in) consolidated subsidiaries 3,226 (15 ) 120 (3,331 ) — Asset sales and other, net — 57 32 — 89 Net cash provided by (used in) investing activities 2,449 17 (1,233 ) (2,554 ) (1,321 ) Cash flow from financing activities: Proceeds from debt — — 955 — 955 Repayments of debt (2,281 ) (205 ) (1,326 ) — (3,812 ) Intercompany loans — 663 114 (777 ) — Cash dividends and distributions paid, including redemption (2 ) — (3,440 ) 3,266 (176 ) Other, net (10 ) (10 ) (67 ) 65 (22 ) Net cash (used in) provided by financing activities (2,293 ) 448 (3,764 ) 2,554 (3,055 ) Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents — (2 ) 292 — 290 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — 10 4,410 — 4,420 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ 8 $ 4,702 $ — $ 4,710 Year Ended December 31, 2016 FCX FM O&G LLC Non-guarantor Consolidated Issuer Guarantor Subsidiaries Eliminations FCX Net cash (used in) provided by operating activities $ (137 ) $ (263 ) $ 4,135 $ 2 $ 3,737 Cash flow from investing activities: Capital expenditures — (567 ) (2,248 ) 2 (2,813 ) Intercompany loans 481 (346 ) — (135 ) — Dividends from (investments in) consolidated subsidiaries 1,469 (45 ) 176 (1,600 ) — Asset sales and other, net 2 1,673 4,695 (4 ) 6,366 Net cash provided by (used in) investing activities 1,952 715 2,623 (1,737 ) 3,553 Cash flow from financing activities: Proceeds from debt 1,721 — 1,960 — 3,681 Repayments of debt (5,011 ) — (2,614 ) — (7,625 ) Intercompany loans — (332 ) 197 135 — Net proceeds from sale of common stock 1,515 — 3,388 (3,388 ) 1,515 Cash dividends and distributions paid (6 ) (107 ) (5,555 ) 4,969 (699 ) Other, net (34 ) (3 ) (20 ) 19 (38 ) Net cash (used in) provided by financing activities (1,815 ) (442 ) (2,644 ) 1,735 (3,166 ) Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents — 10 4,114 — 4,124 Increase in cash and cash equivalents in assets held for sale — — (45 ) — (45 ) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year — — 341 — 341 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year $ — $ 10 $ 4,410 $ — $ 4,420 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information | First Quarter Second Quarter Third Quarter Fourth Quarter Year 2018 Revenues $ 4,868 $ 5,168 $ 4,908 $ 3,684 $ 18,628 Operating income 1,459 1,664 1,315 316 4,754 Net income from continuing operations 828 1,039 668 374 2,909 Net (loss) income from discontinued operations (11 ) (4 ) (4 ) 4 (15 ) Net income 817 1,035 664 378 2,894 Net (income) loss attributable to noncontrolling interests from continuing operations (125 ) (166 ) (108 ) 107 (292 ) Net income attributable to common stockholders 692 869 556 485 2,602 Basic net income (loss) per share attributable to common stockholders: Continuing operations $ 0.48 $ 0.60 $ 0.38 $ 0.33 $ 1.80 Discontinued operations (0.01 ) — — — (0.01 ) $ 0.47 $ 0.60 $ 0.38 $ 0.33 $ 1.79 Basic weighted-average shares outstanding 1,449 1,449 1,450 1,450 1,449 Diluted net income (loss) per share attributable to common stockholders: Continuing operations $ 0.48 $ 0.59 $ 0.38 $ 0.33 $ 1.79 Discontinued operations (0.01 ) — — — (0.01 ) $ 0.47 $ 0.59 $ 0.38 $ 0.33 $ 1.78 Diluted weighted-average shares outstanding 1,458 1,458 1,458 1,457 1,458 Following summarizes significant charges (credits) included in FCX’s net income attributable to common stockholders for the 2018 quarters: • Net charges at Cerro Verde related to Peruvian government claims for disputed royalties (refer to Note 12 for further discussion) totaled $195 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $14 million to production and delivery costs, $370 million to interest expense, $22 million to other expense, net of income tax benefits of $35 million and noncontrolling interests of $176 million ), most of which was recorded in the fourth quarter. • Net charges at PT-FI totaled $223 million ( $110 million to net income attributable to common stockholders or $0.08 per share) consisting of charges to production and delivery of $69 million for surface water tax disputes with the local regional tax authority in Papua, Indonesia, $32 million for assessments of prior period permit fees with the MOEF, $72 million for disputed payroll withholding taxes for prior years and other tax settlements and $62 million to write-off certain previously capitalized project costs for the new smelter in Indonesia in fourth quarter, partly offset by inventory adjustments of $12 million recorded in second quarter. The fourth quarter also included $43 million of inventory adjustments at PT-FI related to prior 2018 quarterly periods. • Net charges at Cerro Verde related to Cerro Verde’s new three-year collective bargaining agreement totaled $69 million ( $22 million to net income attributable to common stockholders or $0.02 per share) for the year, which was recorded in the third quarter. • Net adjustments to environmental obligations and related litigation reserves totaled $57 million to operating income and net income attributable to common stockholders ( $0.04 per share) for the year, most of which was recorded in the second quarter. • Net gains on sales of assets for the year totaled $208 million to operating income and net income attributable to common stockholders ( $0.14 per share), mostly associated with adjustments to assets no longer classified as held for sale, adjustments to the fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties (which will continue to be adjusted through December 31, 2020) and the sale of Port Carteret (assets held for sale), and included $11 million in the first quarter, $45 million in the second quarter, $70 million in the third quarter and $82 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions. • Other net charges for the year totaled $50 million ( $30 million to net income attributable to common stockholders or $0.02 per share), including prior period depreciation expense at Freeport Cobalt that was suspended while it was classified as held for sale ( $48 million in fourth-quarter and $31 million for the year). • Net tax credits for the year totaled $632 million ( $574 million net of noncontrolling interest or $0.39 per share), primarily associated with a reduction in PT-FI’s statutory rates in accordance with the IUPK ( $504 million ) and benefits associated with U.S. tax reform ( $123 million ), most of which was recorded in the fourth quarter. Refer to Note 11 for further discussion. • In November 2016, FCX completed the sale of its interest in TFHL (refer to Note 2 for further discussion), and, in accordance with accounting guidance, reported the results of operations of TFHL as discontinued operations for all periods presented. Net (loss) income from discontinued operations for the 2018 periods primarily reflects adjustments to the fair value of the potential contingent consideration related to the sale, which will continue to be adjusted through December 31, 2019. First Quarter Second Quarter Third Quarter Fourth Quarter Year 2017 Revenues $ 3,341 $ 3,711 $ 4,310 $ 5,041 $ 16,403 Operating income 597 686 928 1,479 3,690 Net income from continuing operations 268 326 242 1,193 2,029 Net income from discontinued operations 38 9 3 16 66 Net income 306 335 245 1,209 2,095 Net (income) loss attributable to noncontrolling interests: Continuing operations (75 ) (66 ) 35 (168 ) (274 ) Discontinued operations (3 ) (1 ) — — (4 ) Net income attributable to common stockholders 228 268 280 1,041 1,817 Basic net income per share attributable to common stockholders: Continuing operations $ 0.13 $ 0.18 $ 0.19 $ 0.71 $ 1.21 Discontinued operations 0.03 — — 0.01 0.04 $ 0.16 $ 0.18 $ 0.19 $ 0.72 $ 1.25 Basic weighted-average shares outstanding 1,446 1,447 1,448 1,448 1,447 Diluted net income per share attributable to common stockholders: Continuing operations $ 0.13 $ 0.18 $ 0.19 $ 0.70 $ 1.21 Discontinued operations 0.03 — — 0.01 0.04 $ 0.16 $ 0.18 $ 0.19 $ 0.71 $ 1.25 Diluted weighted-average shares outstanding 1,454 1,453 1,454 1,455 1,454 Following summarizes significant charges (credits) included in FCX’s net income attributable to common stockholders for the 2017 quarters: • Net charges at Cerro Verde related to Peruvian government claims for disputed royalties (refer to Note 12 for further discussion) totaled $186 million to net income attributable to common stockholders or $0.13 per share for the year (consisting of $203 million to operating income, $145 million to interest expense and $7 million to provision for income taxes, net of $169 million to noncontrolling interests), most of which was recorded in the third quarter. • Net charges associated with PT-FI workforce reductions for the year totaled $125 million to operating income ( $66 million to net income attributable to common stockholders or $0.04 per share) and included $21 million in the first quarter, $87 million in the second quarter, $9 million in the third quarter and $8 million in the fourth quarter. • Net adjustments to environmental obligations and related litigation reserves totaled $210 million to operating income and net income attributable to common stockholders ( $0.14 per share) for the year, and included net charges (credits) of $19 million in the first quarter, $(30) million in the second quarter, $64 million in the third quarter and $157 million in the fourth quarter. • Net gains on sales of assets totaled $81 million to operating income and net income attributable to common stockholders ( $0.06 per share) for the year, mostly associated with sales of oil and gas properties, and included $23 million in the first quarter, $10 million in the second quarter, $33 million in the third quarter and $15 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions. • Net tax credits totaled $438 million to net income attributable to common stockholders ( $0.30 per share) for the year, primarily associated with provisional tax credits associated with U.S. tax reform ( $393 million ), which were recorded in the fourth quarter. Refer to Note 11 for further discussion. • Net income from discontinued operations for the 2017 periods primarily reflected adjustments to the fair value of the potential contingent consideration related to the 2016 TFHL sale. |
SUPPLEMENTARY MINERAL RESERVE_2
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Mineral Industries Disclosures [Abstract] | |
Schedule Of Estimated Recoverable Proven And Probable Reserves By Location [Text Block] | Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2018 Copper a (billion pounds) Gold (million ounces) Molybdenum (billion pounds) North America 49.9 0.6 3.06 South America 33.5 — 0.72 Indonesia 36.2 b 30.2 b — Consolidated c 119.6 30.8 3.78 Net equity interest d 86.8 17.0 3.44 a. Estimated consolidated recoverable copper reserves included 2.0 billion pounds in leach stockpiles and 0.6 billion pounds in mill stockpiles. b. Includes 13.0 billion pounds of copper and 10.1 million ounces of gold associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest. Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK. c. Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America (refer to Note 3 for further discussion). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 393.1 million ounces of silver, which were determined using $15 per ounce and include 55.7 million ounces associated with PT-FI's acquisition of the Rio Tinto Joint Venture interest. d. Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note 3 for further discussion of FCX’s ownership in subsidiaries). FCX's net equity interest for estimated metal quantities in Indonesia reflects approximately 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 269.3 million ounces of silver. |
Supplementary Reserve Information at 100% Basis by Location | Estimated Recoverable Proven and Probable Mineral Reserves at December 31, 2018 Average Ore Grade Per Metric Ton a Recoverable Proven and Probable Reserves b Ore a (million metric tons) Copper (%) Gold (grams) Molybdenum (%) Copper (billion pounds) Gold (million ounces) Molybdenum (billion pounds) North America Developed and producing: Morenci 4,619 0.24 — — c 15.6 — 0.18 Sierrita 3,369 0.23 — c 0.02 14.0 0.2 1.42 Bagdad 2,426 0.32 — c 0.02 14.7 0.1 0.74 Safford, including d 839 0.44 — — 6.2 — — Chino, including Cobre 395 0.46 0.03 0.01 3.4 0.3 0.01 Climax 168 — — 0.15 — — 0.52 Henderson 71 — — 0.17 — — 0.24 Tyrone 55 0.25 — — 0.3 — — Miami — — — — 0.1 — — South America Developed and producing: Cerro Verde 4,324 0.35 — 0.01 29.6 — 0.72 El Abra 705 0.42 — — 3.9 — — Indonesia e Developed and producing: Deep Mill Level Zone 432 0.92 0.76 — 7.6 8.4 — Deep Ore Zone 51 0.50 0.57 — 0.5 0.8 — Big Gossan 57 2.30 1.02 — 2.6 1.3 — Grasberg open pit 5 1.26 1.98 — 0.2 0.4 — Under development: Grasberg Block Cave 963 0.96 0.72 — 17.2 14.1 — Undeveloped: Kucing Liar 349 1.24 1.03 — 8.1 5.2 — Total 100% basis 18,828 124.0 30.8 3.83 Consolidated f 119.6 30.8 3.78 FCX’s equity share g 86.8 17.0 3.44 a. Excludes material contained in stockpiles. b. Includes estimated recoverable metals contained in stockpiles. c. Amounts not shown because of rounding. d. The Lone Star oxide project is under development. e. Estimated recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through 2041. Refer to Note 13 for discussion of PT-FI’s IUPK. f. Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America. Refer to Note 3 for further discussion. g. Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. FCX's net equity interest for estimated metal quantities in Indonesia reflects an approximate 81 percent from 2019 through 2022 and 48.76 percent from 2023 through 2041. Refer to Note 3 for further discussion of FCX’s ownership in subsidiaries. |
SUPPLEMENTARY OIL AND GAS INF_2
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | A summary of the costs incurred for FCX’s oil and gas acquisition, exploration and development activities for the year ended December 31, 2016, follows: Property acquisition costs for unproved properties $ 7 Exploration costs 22 Development costs 749 $ 778 |
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure | The aggregate capitalized costs subject to amortization for oil and gas properties and the aggregate related accumulated amortization as of December 31, 2016, follow: Properties subject to amortization $ 27,507 Accumulated amortization a (27,433 ) $ 74 a. Includes charges of $4.3 billion in 2016 to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. |
Results of Operations for Oil and Gas Producing Activities Disclosure | The results of operations from oil and gas producing activities for the year ended December 31, 2016, presented below, excludes non-oil and gas revenues, general and administrative expenses, interest expense and interest income. Income tax benefit was determined by applying the statutory rates to pre-tax operating results: Revenues from oil and gas producing activities $ 1,513 Production and delivery costs a (1,829 ) Depreciation, depletion and amortization (839 ) Impairment of oil and gas properties (4,317 ) Income tax benefit (based on FCX’s U.S. federal statutory tax rate) b — Results of operations from oil and gas producing activities $ (5,472 ) a. Includes $926 million in charges related to drillship settlements/idle rig and contract termination costs. b. FCX has provided a full valuation allowance on losses associated with oil and gas activities. |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The following table sets forth certain data pertaining to proved, proved developed and proved undeveloped reserves, all of which are in the U.S., for the year ended December 31, 2016 . Oil Gas Total (MMBbls) a,b (Bcf) a (MMBOE) a 2016 Proved reserves: Balance at beginning of year 207 274 252 Extensions and discoveries — — — Acquisitions of reserves in-place — — — Revisions of previous estimates 1 — 1 Sale of reserves in-place (168 ) (118 ) (187 ) Production (36 ) (69 ) (48 ) Balance at end of year 4 87 18 Proved developed reserves at December 31, 2016 4 87 18 Proved undeveloped reserves at December 31, 2016 — — — a. MMBbls = million barrels; Bcf = billion cubic feet; MMBOE = million BOE b. Includes NGL proved reserves of 1 MMBbls (all developed) at December 31, 2016 . |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | The Standardized Measure related to proved oil and natural gas reserves as of December 31, 2016, follows: Future cash inflows $ 345 Future production expense (175 ) Future development costs a (439 ) Future income tax expense — Future net cash flows (269 ) Discounted at 10% per year 32 Standardized Measure $ (237 ) a. Includes estimated asset retirement costs of $0.4 billion at December 31, 2016 . |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | A summary of the principal sources of changes in the Standardized Measure for the year ended December 31, 2016, follows: Balance at beginning of year $ 1,392 Changes during the year: Sales, net of production expenses (831 ) Net changes in sales and transfer prices, net of production expenses (341 ) Extensions, discoveries and improved recoveries — Changes in estimated future development costs, including timing and other 146 Previously estimated development costs incurred during the year 295 Sales of reserves in-place (1,049 ) Revisions of quantity estimates 12 Accretion of discount 139 Net change in income taxes — Total changes (1,629 ) Balance at end of year $ (237 ) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from Other Operating Activities | $ 56 | |||||||||||
Metals inventory adjustments | $ 12 | $ 4 | $ 8 | 36 | ||||||||
Production and delivery | 11,691 | 10,266 | 10,687 | |||||||||
Total cost of sales | 13,445 | 11,980 | 17,534 | |||||||||
Selling, general and administrative expenses | 443 | 477 | 597 | |||||||||
Exploration Expense | 105 | 93 | 63 | |||||||||
Environmental obligations and shutdown costs | 89 | 244 | 14 | |||||||||
Costs and Expenses | 13,874 | 12,713 | 17,559 | |||||||||
Operating income (loss) | $ 316 | $ 1,315 | $ 1,664 | $ 1,459 | $ 1,479 | $ 928 | $ 686 | $ 597 | 4,754 | 3,690 | (2,729) | |
Accrued income taxes and timing of other tax payments | (472) | 457 | 136 | |||||||||
Net cash (used in) provided by operating activities | 3,863 | 4,666 | 3,737 | |||||||||
Reclassification to Well, Facilities, and Equipment Based on Determination of Proved Reserves | 4,900 | |||||||||||
Impairment of Oil and Gas Properties | 0 | 0 | 4,317 | |||||||||
Foreign currency transaction gains (losses), before tax | 14 | (5) | 32 | |||||||||
Payments for (Proceeds from) Other Investing Activities | (97) | 17 | 11 | |||||||||
Net cash provided by (used in) investing activities | (5,018) | (1,321) | 3,553 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (255) | 290 | 4,124 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Before Reclassification of Assets Held for Sale | 4,631 | 4,631 | 4,403 | $ 324 | ||||||||
Other income (expense), net | 76 | (8) | (14) | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | $ 0 | ||||||||||
United States oil and gas operations | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Capitalized interest | 7 | |||||||||||
Copper | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Percentage of ultimate copper recovery from leach stockpiles | 90.00% | |||||||||||
Percentage of copper ultimately recoverable from newly placed material on active stockpiles extracted during the first year | 80.00% | |||||||||||
PT-FI | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Metals inventory adjustments | $ 43 | |||||||||||
Ownership percentage of subsidiary | 48.76% | 48.76% | ||||||||||
Previously Reported [Member] | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from Other Operating Activities | 48 | |||||||||||
Production and delivery | 10,308 | 10,733 | ||||||||||
Total cost of sales | 12,022 | 17,580 | ||||||||||
Selling, general and administrative expenses | 484 | 607 | ||||||||||
Exploration Expense | 94 | 64 | ||||||||||
Environmental obligations and shutdown costs | 251 | 20 | ||||||||||
Costs and Expenses | 12,770 | 17,622 | ||||||||||
Operating income (loss) | 3,633 | (2,792) | ||||||||||
Accrued income taxes and timing of other tax payments | 473 | |||||||||||
Net cash (used in) provided by operating activities | 4,682 | 3,729 | ||||||||||
Payments for (Proceeds from) Other Investing Activities | (25) | 8 | ||||||||||
Net cash provided by (used in) investing activities | (1,363) | 3,550 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 264 | 4,113 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Before Reclassification of Assets Held for Sale | 4,447 | 4,447 | 4,245 | 177 | ||||||||
Other income (expense), net | 49 | 49 | ||||||||||
Accounting Standards Update 2017-05 [Member] | Restatement Adjustment | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Production and delivery | (42) | (46) | ||||||||||
Total cost of sales | (42) | (46) | ||||||||||
Selling, general and administrative expenses | (7) | (10) | ||||||||||
Exploration Expense | (1) | (1) | ||||||||||
Environmental obligations and shutdown costs | (7) | (6) | ||||||||||
Costs and Expenses | (57) | (63) | ||||||||||
Operating income (loss) | 57 | 63 | ||||||||||
Other income (expense), net | (57) | (63) | ||||||||||
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from Other Operating Activities | 8 | |||||||||||
Accrued income taxes and timing of other tax payments | (16) | |||||||||||
Net cash (used in) provided by operating activities | (16) | 8 | ||||||||||
Payments for (Proceeds from) Other Investing Activities | 42 | 3 | ||||||||||
Net cash provided by (used in) investing activities | 42 | 3 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 26 | 11 | ||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Before Reclassification of Assets Held for Sale | $ 184 | $ 184 | $ 158 | $ 147 | ||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
Schedule of Significant Accounting Policies [Line Items] | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (79) | $ (79) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and mine development, useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and mine development, useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and mine development, useful life | 30 years | ||
Mobile equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and mine development, useful life | 3 years | ||
Mobile equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and mine development, useful life | 30 years | ||
United States oil and gas operations | |||
Property, Plant and Equipment [Line Items] | |||
Interest Costs Capitalized | $ 7 | ||
United States oil and gas operations | Oil and Gas Properties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest Costs Capitalized | $ 7 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||||||||||
Net income (loss) from continuing operations | $ 374 | $ 668 | $ 1,039 | $ 828 | $ 1,193 | $ 242 | $ 326 | $ 268 | $ 2,909 | $ 2,029 | $ (3,832) |
Net income from continuing operations attributable to noncontrolling interests | (292) | (274) | (227) | ||||||||
Gain on redemption and preferred dividends attributable to noncontrolling interests | 0 | 0 | 161 | ||||||||
Accumulated dividends and undistributed earnings allocated to participating securities | (4) | (4) | (3) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 2,613 | 1,751 | (3,901) | ||||||||
Net (loss) income from discontinued operations | $ 4 | $ (4) | $ (4) | $ (11) | 16 | 3 | 9 | 38 | (15) | 66 | (193) |
Net income from discontinued operations attributable to noncontrolling interests | $ 0 | $ 0 | $ (1) | $ (3) | 0 | (4) | (63) | ||||
Net (loss) income from discontinued operations attributable to common stockholders | (15) | 62 | (256) | ||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 2,598 | $ 1,813 | $ (4,157) | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 1,450,000,000 | 1,450,000,000 | 1,449,000,000 | 1,449,000,000 | 1,448,000,000 | 1,448,000,000 | 1,447,000,000 | 1,446,000,000 | 1,449,000,000 | 1,447,000,000 | 1,318,000,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 9,000,000 | 7,000,000 | 0 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 1,457,000,000 | 1,458,000,000 | 1,458,000,000 | 1,458,000,000 | 1,455,000,000 | 1,454,000,000 | 1,453,000,000 | 1,454,000,000 | 1,458,000,000 | 1,454,000,000 | 1,318,000,000 |
Basic net income (loss) per share attributable to common stockholders: | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.33 | $ 0.38 | $ 0.60 | $ 0.48 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.13 | $ 1.80 | $ 1.21 | $ (2.96) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Basic | 0.33 | 0.38 | 0.60 | 0.47 | 0.72 | 0.19 | 0.18 | 0.16 | 1.79 | 1.25 | (3.16) |
Diluted net income (loss) per share attributable to common stockholders: | |||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.33 | 0.38 | 0.59 | 0.48 | 0.70 | 0.19 | 0.18 | 0.13 | 1.79 | 1.21 | (2.96) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Diluted | $ 0.33 | $ 0.38 | $ 0.59 | $ 0.47 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.16 | $ 1.78 | $ 1.25 | $ (3.16) |
Potential anti-dilutive securities | 1,000,000 | 12,000,000 | |||||||||
Outstanding options with exercise prices greater than market price of common stock | 37,000,000 | 41,000,000 | 46,000,000 |
DISPOSITIONS AND ACQUISITIONS_2
DISPOSITIONS AND ACQUISITIONS (PT-FI Divestment) (Details) - USD ($) $ in Millions | Dec. 21, 2018 | Jan. 01, 2023 | Jan. 01, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture, net | $ 350 | |||
Rio Tinto Share In Joint Venture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture, net | $ 107 | |||
PT Indonesia Papua Metal dan Mineral | PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest by parent subsequent to business acquisition | 25.00% | |||
Rio Tinto | Rio Tinto Share In Joint Venture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture, net | $ 3,500 | |||
PT Indonesia Asahan Aluminium (Persero) (Inalum) | PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture, net | $ 3,850 | |||
PT Indonesia Asahan Aluminium (Persero) (Inalum) | Interest In PT Indocopper Investama | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percentage of voting interest | 100.00% | |||
PT Indonesia Asahan Aluminium (Persero) (Inalum) | PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percentage of voting interest | 40.00% | |||
Ownership interest by parent subsequent to business acquisition | 26.24% | |||
PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage of subsidiary | 48.76% | |||
PT-FI | PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest by parent subsequent to business acquisition | 51.24% | |||
PT-FI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage of subsidiary | 48.76% | |||
PT-FI | Scenario, forecast | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage of subsidiary | 49.00% | 81.00% | ||
PT-FI | PT Indonesia Papua Metal dan Mineral | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 9.36% |
DISPOSITIONS AND ACQUISITIONS_3
DISPOSITIONS AND ACQUISITIONS (Purchase Price Allocation) (Details) $ in Millions | Dec. 21, 2018USD ($)$ / lb$ / oz | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Income tax rate | 21.00% | 35.00% | 35.00% | |
Tax Authority, In Papua, Indonesia | ||||
Business Acquisition [Line Items] | ||||
Income tax rate | 25.00% | |||
PT-FI | Rio Tinto Share In Joint Venture | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 25 | |||
Mineral reserves | 3,056 | |||
Mine development, infrastructure and other | 1,559 | |||
Liabilities other than taxes | (77) | |||
Deferred income taxes, net | (1,063) | |||
Total purchase price | $ 3,500 | |||
PT-FI | Rio Tinto Share In Joint Venture | Copper | ||||
Business Acquisition [Line Items] | ||||
Price assumption per unit (in dollars per unit) | $ / lb | 3 | |||
PT-FI | Rio Tinto Share In Joint Venture | Gold | ||||
Business Acquisition [Line Items] | ||||
Price assumption per unit (in dollars per unit) | $ / oz | 1,300 |
DISPOSITIONS AND ACQUISITIONS_4
DISPOSITIONS AND ACQUISITIONS (FCX Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 21, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Other current assets | $ 422 | $ 286 | |
Property, plant, equipment and mine development costs, net | 28,010 | 22,994 | |
Noncontrolling interests | (8,094) | (3,319) | |
Capital in excess of par value | $ 26,013 | $ 26,751 | |
PT-FI | Rio Tinto Share In Joint Venture | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | $ 458 | ||
Other current assets | 23 | ||
Liabilities other than taxes | (77) | ||
Deferred income taxes, net | (788) | ||
Noncontrolling interests | (4,762) | ||
Capital in excess of par value | 531 | ||
PT-FI | Rio Tinto Share In Joint Venture | Mineral reserves | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, plant, equipment and mine development costs, net | 3,056 | ||
PT-FI | Rio Tinto Share In Joint Venture | Mine development, infrastructure and other | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, plant, equipment and mine development costs, net | $ 1,559 |
DISPOSITIONS AND ACQUISITIONS_5
DISPOSITIONS AND ACQUISITIONS (TF Holdings Limited) (Details) $ in Millions | Dec. 21, 2018USD ($) | Nov. 16, 2016USD ($)$ / lb | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 15, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture, net | $ 350 | |||||
Other assets | $ 2,172 | $ 2,273 | ||||
Freeport Cobalt | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Other assets | 3 | |||||
Kisanfu Exploration Project | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 56.00% | |||||
Disposed of by Sale, Discontinued Operations | TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | 0 | $ 13 | $ 959 | |||
Proceeds from divestiture, net | $ 2,650 | |||||
Contingent receivable | 120 | |||||
Other assets | 57 | 74 | ||||
Chainge in fair value of contingent consideration | $ (17) | 61 | 13 | |||
TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 70.00% | |||||
Copper | Disposed of by Sale, Discontinued Operations | TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent receivable | 60 | |||||
Cobalt | Disposed of by Sale, Discontinued Operations | TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent receivable | $ 60 | |||||
Contingent consideration, reference threshold, price per barrel (in us dollars per pound) | $ / lb | 20 | |||||
Eliminations | Disposed of by Sale, Discontinued Operations | TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | $ (13) | $ 157 | ||||
Maximum | Copper | Disposed of by Sale, Discontinued Operations | TF Holdings Limited | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent consideration, reference threshold, price per barrel (in us dollars per pound) | $ / lb | 3.50 |
DISPOSITIONS AND ACQUISITIONS_6
DISPOSITIONS AND ACQUISITIONS (Net Income (Loss) from Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) gain on disposal | $ (15) | $ 57 | $ (198) | ||||||||
Net (loss) income from discontinued operations | $ 4 | $ (4) | $ (4) | $ (11) | $ 16 | $ 3 | $ 9 | $ 38 | (15) | 66 | (193) |
Eliminations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) income from discontinued operations | 0 | 0 | (39) | ||||||||
TF Holdings Limited | Disposed of by Sale, Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | 0 | 13 | 959 | ||||||||
Production and delivery costs | 0 | 0 | 833 | ||||||||
Depreciation, depletion and amortization | 0 | 0 | 80 | ||||||||
Interest expense allocated from parent | 0 | 0 | 39 | ||||||||
Other costs and expenses, net | 0 | 0 | 10 | ||||||||
Income (loss) before income taxes and net (loss) gain on disposal | 0 | 13 | (3) | ||||||||
Net (loss) gain on disposal | (15) | 57 | (198) | ||||||||
Net (loss) income before income taxes | (15) | 70 | (201) | ||||||||
(Provision for) benefit from income taxes | 0 | (4) | 8 | ||||||||
Net (loss) income from discontinued operations | (15) | 66 | (193) | ||||||||
Chainge in fair value of contingent consideration | $ (17) | 61 | 13 | ||||||||
Provision for loss (gain) | 33 | ||||||||||
TF Holdings Limited | Disposed of by Sale, Discontinued Operations | Eliminations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ (13) | $ 157 |
DISPOSITIONS AND ACQUISITIONS_7
DISPOSITIONS AND ACQUISITIONS (Cash Flows from Discontinued Operations) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Dispositions And Acquisitions [Abstract] | |
Net cash provided by operating activities | $ 241 |
Net cash used in investing activities | (73) |
Net cash used in financing activities | (123) |
Increase in cash and cash equivalents | $ 45 |
DISPOSITIONS AND ACQUISITIONS_8
DISPOSITIONS AND ACQUISITIONS (Assets Held for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Gain (Loss) on Disposition of Assets | $ (82) | $ (70) | $ (45) | $ (11) | $ (15) | $ (33) | $ (10) | $ (23) | $ (208) | $ (81) | $ (649) |
Deferred income taxes | 4,032 | 3,663 | 4,032 | 3,663 | |||||||
Property, plant, equipment and mine development costs, net | 28,010 | $ 22,994 | 28,010 | 22,994 | |||||||
Depreciation, depletion and amortization | 1,754 | $ 1,714 | 2,610 | ||||||||
Kisanfu Exploration Project | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Ownership percentage | 56.00% | 56.00% | |||||||||
Freeport Cobalt And Kisanfu Exploration Project | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Gain (Loss) on Disposition of Assets | $ 110 | ||||||||||
Freeport Cobalt | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Increase (Decrease) in Assets Held-for-sale | 97 | ||||||||||
Property, plant, equipment and mine development costs, net | $ 60 | $ 60 | |||||||||
Kisanfu Exploration Project | Restatement Adjustment | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Deferred income taxes | $ 27 | $ 27 | |||||||||
Property, plant, equipment and mine development costs, net | $ 90 | $ 90 |
DISPOSITIONS AND ACQUISITIONS_9
DISPOSITIONS AND ACQUISITIONS (Assets Held for Sale - Freeport Cobalt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Cash and cash equivalents | $ 4,217 | $ 4,526 | |
Trade accounts receivable | 829 | 1,322 | |
Property, plant, equipment and mine development costs, net | 28,010 | 22,994 | |
Other assets | 2,172 | 2,273 | |
Total previously included in current assets held for sale | 42,216 | 37,302 | $ 37,317 |
Liabilities | |||
Accounts payable and accrued liabilities | 2,625 | 2,497 | |
Accrued income taxes | 165 | 583 | |
Long-term debt | 11,124 | 11,815 | |
Deferred income taxes and asset retirement obligations | 4,028 | 3,658 | |
Total previously included in current liabilities held for sale | 24,324 | $ 26,006 | |
Freeport Cobalt | |||
Assets | |||
Cash and cash equivalents | 79 | ||
Trade accounts receivable | 76 | ||
Inventories | 256 | ||
Other receivables and current assets | 20 | ||
Property, plant, equipment and mine development costs, net | 60 | ||
Other assets | 3 | ||
Total previously included in current assets held for sale | 494 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 176 | ||
Accrued income taxes | 18 | ||
Long-term debt | 112 | ||
Deferred income taxes and asset retirement obligations | 17 | ||
Total previously included in current liabilities held for sale | $ 323 |
DISPOSITIONS AND ACQUISITION_10
DISPOSITIONS AND ACQUISITIONS (Morenci) (Details) - USD ($) $ in Millions | Dec. 21, 2018 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture, net | $ 350 | ||||
Net gain (loss) on sales of assets | $ 208 | $ 81 | $ 649 | ||
Morenci | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 85.00% | ||||
Proceeds from divestiture, net | $ 1,000 | ||||
Net gain (loss) on sales of assets | $ 576 | ||||
Morenci | SMM Morenci Inc. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 13.00% | ||||
Morenci | Sumitomo Metal Mining Co., Ltd. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 15.00% | ||||
Morenci | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 72.00% | ||||
Morenci | SMM Morenci Inc. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 13.00% | ||||
Morenci | Sumitomo Metal Mining Co., Ltd. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership percentage | 15.00% |
DISPOSITIONS AND ACQUISITION_11
DISPOSITIONS AND ACQUISITIONS (Timok) (Details) - USD ($) $ in Millions | Dec. 21, 2018 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 02, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture, net | $ 350 | |||||
Net gain (loss) on sales of assets | $ 208 | $ 81 | $ 649 | |||
Timok | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture, net | $ 135 | |||||
Amount of contingent liabilities remaining | $ 107 | |||||
Net gain (loss) on sales of assets | $ 133 |
DISPOSITIONS AND ACQUISITION_12
DISPOSITIONS AND ACQUISITIONS (Oil and Gas Operations) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($)$ / bbl | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)$ / bbl | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Net gain on sales of assets | $ 82 | $ 70 | $ 45 | $ 11 | $ 15 | $ 33 | $ 10 | $ 23 | $ 208 | $ 81 | $ 649 | |||||
Net gain (loss) on sales of assets | 208 | 81 | 649 | |||||||||||||
Other current assets | (422) | (286) | (422) | (286) | ||||||||||||
Other assets | (2,172) | (2,273) | (2,172) | (2,273) | ||||||||||||
Deepwater Gulf of Mexico and onshore California oil and gas properties | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | 0 | 0 | 2,272 | |||||||||||||
Freeport-McMoRan Oil & Gas | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | 80 | |||||||||||||||
Net gain (loss) on sales of assets | 27 | |||||||||||||||
Freeport-McMoRan Oil & Gas | Deepwater Gulf of Mexico and onshore California oil and gas properties | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Net gain (loss) on sales of assets | (9) | |||||||||||||||
Preferred stock redemption amount | $ 582 | 582 | ||||||||||||||
Gain on redemption of preferred stock | 199 | |||||||||||||||
Freeport-McMoRan Oil & Gas | Onshore California | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | 592 | |||||||||||||||
Contingent receivable | 33 | 150 | 150 | 33 | ||||||||||||
Contingent consideration asset, per year | 50 | |||||||||||||||
Other assets | $ (16) | (34) | $ (16) | (34) | ||||||||||||
Freeport-McMoRan Oil & Gas | Onshore California | Crude Oil | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Contingent consideration, reference threshold, price per barrel (in us dollars per pound) | $ / bbl | 70 | 70 | ||||||||||||||
Freeport-McMoRan Oil & Gas | Deepwater Gulf of Mexico Interests | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | 2,000 | |||||||||||||||
Contingent receivable | $ 150 | $ 150 | ||||||||||||||
Contingent payments, collections | $ 7 | |||||||||||||||
Other current assets | $ (27) | (24) | (27) | (24) | ||||||||||||
Other assets | $ (116) | $ (126) | $ (116) | $ (126) | ||||||||||||
Freeport-McMoRan Oil & Gas | Haynesville | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | $ 87 | |||||||||||||||
Freeport-McMoRan Oil & Gas | Black Stone Minerals, L.P. | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Proceeds from sales | $ 102 | |||||||||||||||
Scenario, Forecast [Member] | Freeport-McMoRan Oil & Gas | Onshore California | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Contingent receivable | $ 50 | $ 50 |
OWNERSHIP IN SUBSIDIARIES AND_2
OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES (Details) oz in Millions, lb in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2018USD ($)lboz | Dec. 21, 2018 | Dec. 31, 2017USD ($) | May 31, 2016 | |
Summary of investment holdings [Line Items] | |||||
Retained Earnings (accumulated deficit) | $ (12,041,000,000) | $ (14,722,000,000) | |||
Freeport-McMoRan Corporation [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Number of pounds of copper purchased from Sumitomo (in pounds) | lb | 178 | ||||
Sumitomo Metal Mining, Ltd. and SMM Morenci Inc. [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Dollar value of pounds purchased from Sumitomo | $ 519,000,000 | ||||
Due from Joint Ventures, Current | 13,000,000 | ||||
PT-FI | |||||
Summary of investment holdings [Line Items] | |||||
Net assets (liabilities) in subsidiary | (10,500,000,000) | ||||
Retained Earnings (accumulated deficit) | $ 6,600,000,000 | ||||
Rio Tinto Share In Joint Venture | |||||
Summary of investment holdings [Line Items] | |||||
Percent interest in certain assets and future production per terms of the joint venture agreement | 40.00% | ||||
Sumitomo Metal Mining Co., Ltd. [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Due from Joint Ventures, Current | 18,000,000 | ||||
Copper | |||||
Summary of investment holdings [Line Items] | |||||
Estimated Recoverable Proven And Probable Reserves (in pounds) | lb | 124,000 | ||||
Gold | |||||
Summary of investment holdings [Line Items] | |||||
Estimated Recoverable Proven And Probable Reserves (in pounds) | oz | 30.8 | ||||
Morenci | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 72.00% | ||||
Morenci | SMM Morenci Inc. | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 13.00% | ||||
Morenci | Sumitomo Metal Mining Co., Ltd. [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 15.00% | ||||
Cerro Verde [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 53.56% | ||||
Other North America Mines [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 100.00% | ||||
El Abra [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 51.00% | ||||
PT Indocopper Investama [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Freeport Minerals Corporation [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Loans outstanding | $ 0 | ||||
Freeport Minerals Corporation [Member] | Subsidiaries [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Net assets (liabilities) in subsidiary | (16,000,000,000) | ||||
Retained Earnings (accumulated deficit) | $ (14,000,000,000) | ||||
PT-FI | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 48.76% | 81.28% | |||
Loans outstanding | $ 76,000,000 | ||||
PT-FI | PT Indocopper Investama [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 9.36% | ||||
Atlantic Copper [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Net assets (liabilities) in subsidiary | $ 23,000,000 | ||||
Retained Earnings (accumulated deficit) | (436,000,000) | ||||
Loans outstanding | $ 434,000,000 | ||||
Freeport-McMoRan Oil & Gas | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Net assets (liabilities) in subsidiary | $ 14,200,000,000 | ||||
Retained Earnings (accumulated deficit) | (25,800,000,000) | ||||
Loans outstanding | $ 10,600,000,000 | ||||
Rio Tinto | Co-venturer [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Due to Related Parties, Current | $ 30,000,000 | ||||
Scenario, Forecast [Member] | Rio Tinto Share In Joint Venture | |||||
Summary of investment holdings [Line Items] | |||||
Percent interest in certain assets and future production per terms of the joint venture agreement | 40.00% | ||||
Morenci | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 85.00% | ||||
Morenci | SMM Morenci Inc. | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 13.00% | ||||
Morenci | Sumitomo Metal Mining Co., Ltd. [Member] | |||||
Summary of investment holdings [Line Items] | |||||
Ownership percentage | 15.00% |
INVENTORIES, INCLUDING LONG-T_3
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES (Components of Inventories) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Inventories [Line Items] | ||||
Total materials and supplies, net | $ 1,528 | $ 1,323 | ||
Mill stockpiles | 282 | 360 | ||
Leach stockpiles | 1,171 | 1,062 | ||
Total current mill and leach stockpiles | 1,453 | 1,422 | ||
Raw materials (primarily concentrate) | 260 | 265 | ||
Work-in-process | 192 | 154 | ||
Finished goods | 1,326 | 985 | ||
Total product inventories | 1,778 | 1,404 | ||
Mill stockpiles | 265 | 300 | ||
Leach stockpiles | 1,049 | 1,109 | ||
Total long-term inventories | 1,314 | 1,409 | ||
Inventory obsolescence reserves | 24 | 29 | $ 29 | |
Metals inventory adjustments | $ 12 | $ 4 | $ 8 | $ 36 |
PROPERTY, PLANT, EQUIPMENT AN_3
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET (Schedule of PPE) (Details) - USD ($) | 12 Months Ended | 132 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 30, 2008 | Dec. 31, 2007 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | $ 71,105,000,000 | $ 64,796,000,000 | $ 64,796,000,000 | |||
Accumulated depreciation, depletion and amortization | (43,095,000,000) | (41,802,000,000) | (41,802,000,000) | |||
Property, plant, equipment and mining development costs, net | 28,010,000,000 | 22,994,000,000 | 22,994,000,000 | |||
Proven and probable reserves [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 7,089,000,000 | 3,974,000,000 | 3,974,000,000 | |||
Transfer From Value Beyond Proven And Probable Reserves To Proven And Probable Reserves | 59,000,000 | 112,000,000 | 752,000,000 | |||
Value beyond proven and probable reserves (VBPP) [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Payments to Acquire Mineral Rights | $ 1,700,000,000 | |||||
Property, plant, equipment and mining development costs | 477,000,000 | 536,000,000 | 536,000,000 | |||
Property, Plant and Equipment, Transfers and Changes | $ 485,000,000 | |||||
Mine development and other | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 8,195,000,000 | 6,213,000,000 | 6,213,000,000 | |||
Buildings and infrastructure | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 8,051,000,000 | 7,553,000,000 | 7,553,000,000 | |||
Machinery and equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 12,985,000,000 | 12,330,000,000 | 12,330,000,000 | |||
Mobile equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 4,010,000,000 | 3,766,000,000 | 3,766,000,000 | |||
Construction in progress | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 3,006,000,000 | 2,971,000,000 | 2,971,000,000 | |||
Oil and Gas Properties [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | 27,292,000,000 | 27,453,000,000 | 27,453,000,000 | |||
Accumulated depreciation, depletion and amortization | (27,300,000,000) | (27,400,000,000) | $ (27,400,000,000) | |||
Discontinued Operations | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Payments to Acquire Mineral Rights | $ 544,000,000 | |||||
Mining Operations [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Capitalized interest | 96,000,000 | $ 121,000,000 | $ 92,000,000 | |||
PT Rio Tinto Indonesia [Domain] | Proven and probable reserves [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant, equipment and mining development costs | $ 4,600,000,000 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Other Assets [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 215 | $ 215 | |
Intangible assetsc | 398 | 307 | |
Investments: [Abstract] | |||
Assurance bond | 126 | 123 | |
Fixed income and equity securities | 29 | 30 | |
Other | 36 | 48 | |
Disposal group, contingent consideration | 189 | 234 | |
Legally restricted fundsg | 181 | 189 | |
Long-term receivable for taxes | 260 | 445 | |
Rio Tinto’s share of ARO | 0 | 68 | |
Long-term employee receivables | 20 | 20 | |
Other | 132 | 146 | |
Total other assets | 2,172 | 2,273 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 51 | 46 | |
Equity in affiliated companies’ net earnings | 8 | 10 | $ 11 |
PT-FI | |||
Investments: [Abstract] | |||
Long-term receivable for taxes | 493 | 417 | |
Cerro Verde | |||
Investments: [Abstract] | |||
Long-term receivable for taxes | 183 | 185 | |
PT Smelting | |||
Investments: [Abstract] | |||
PT Smelting | $ 125 | 61 | |
Ownership percentage | 25.00% | ||
Equity in affiliated companies’ net earnings | $ 11 | 68 | |
Accounts Receivable, Gross, Current | 176 | 308 | |
NEW MEXICO | |||
Investments: [Abstract] | |||
Legally restricted funds for asset retirement obligations at New Mexico mines | $ 180 | $ 180 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Line Items] | |||
Accounts Payable and Other Accrued Liabilities, Current | $ 95 | $ 140 | |
Accounts payable | 1,661 | 1,546 | |
Salaries, wages and other compensation | 273 | 241 | |
Accrued interest | 183 | 168 | |
Accrued taxes, other than income taxes | 109 | 129 | |
Pension, postretirement, postemployment and other employee benefits | 78 | 114 | |
Deferred revenue | 35 | 91 | |
Accrued Royalties, Current | 29 | 68 | |
Total accounts payable and accrued liabilities | 2,625 | 2,497 | |
Cash interest paid, net | 500 | 565 | $ 743 |
Tax Authority, In Papua, Indonesia | PT-FI | |||
Accounts Payable and Accrued Liabilities [Line Items] | |||
Loss Contingency, Accrual, Current | $ 162 | $ 0 |
DEBT (Details)
DEBT (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2018USD ($)payment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | May 30, 2016USD ($) | Dec. 31, 2014USD ($) | Nov. 30, 2014USD ($) | Mar. 31, 2013USD ($) | Feb. 28, 2012USD ($) | |
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $ 1,000,000,000 | |||||||||||
Long-term Debt | $ 2,228,000,000 | |||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | (11,141,000,000) | $ (13,229,000,000) | ||||||||||
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | (17,000,000) | (1,414,000,000) | ||||||||||
Long-term debt, less current portion | 11,124,000,000 | 11,815,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Term of Debt Agreement | 5 years | |||||||||||
Extinguishment of Debt, Principal Amount | 2,342,000,000 | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 14,000,000 | |||||||||||
Long-term Debt | 800,000,000 | |||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 454,000,000 | 1,234,000,000 | 407,000,000 | $ 6,500,000,000 | ||||||||
Other Debt [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | (166,000,000) | (119,000,000) | ||||||||||
2.15% Senior Notes due 2017 [Member] | Senior Notes [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | $ 500,000,000 | |||||||||||
2.30% Senior Notes Due 2017 | Senior Notes [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 20,000,000 | $ 750,000,000 | ||||||||||
6.125% Senior Notes due 2019 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 186,000,000 | |||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 179,000,000 | 237,000,000 | ||||||||||
2.375% Senior Notes due March 2018 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 0 | 1,408,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 74,000,000 | 18,000,000 | 1,500,000,000 | |||||||||
6.5% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 583,000,000 | |||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 552,000,000 | 617,000,000 | ||||||||||
6.625% Senior Notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 242,000,000 | |||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 228,000,000 | 261,000,000 | ||||||||||
6.75% Senior Notes due 2022 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 0 | 427,000,000 | 432,000,000 | |||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 404,000,000 | 449,000,000 | ||||||||||
3.55% Senior Notes due 2022 | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 999,000,000 | 997,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 1,000,000,000 | |||||||||||
6.875% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 768,000,000 | 776,000,000 | 785,000,000 | |||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 778,000,000 | |||||||||||
4.00% Senior Notes Due 2021 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 597,000,000 | 596,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 600,000,000 | |||||||||||
3.55% Senior Notes Due 2022 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 1,886,000,000 | 1,884,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 108,000,000 | $ 2,000,000,000 | ||||||||||
3.875% Senior Notes due March 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 1,915,000,000 | 1,914,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 77,000,000 | 2,000,000,000 | ||||||||||
senior notes 4.55 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 845,000,000 | 845,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 850,000,000 | |||||||||||
Senior Notes due 2034 5 point 4 percent [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 741,000,000 | 740,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 50,000,000 | $ 800,000,000 | ||||||||||
5.450% Senior Notes due March 2043 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 1,843,000,000 | 1,842,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | $ 134,000,000 | $ 2,000,000,000 | ||||||||||
Cerro Verde | Line of Credit [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | (1,269,000,000) | |||||||||||
Cerro Verde | Shareholder Loan [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | $ 800,000,000 | |||||||||||
Related Party Transaction, Remaining Borrowing Capacity | 200,000,000 | |||||||||||
Freeport McMoRan Corporation [Member] | 7.125% Debentures due 2027 [Member] | Debentures [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 115,000,000 | 115,000,000 | ||||||||||
Freeport McMoRan Corporation [Member] | 9.5% Senior Notes due 2031 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 126,000,000 | 127,000,000 | ||||||||||
Freeport McMoRan Corporation [Member] | 6.125% Senior Notes due 2034 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 117,000,000 | 116,000,000 | ||||||||||
Freeport-McMoRan Oil & Gas | 6.875% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 0 | 54,000,000 | ||||||||||
Cerro Verde [Abstract] | ||||||||||||
Extinguishment of Debt, Principal Amount | 50,000,000 | |||||||||||
Line of Credit [Member] | Cerro Verde | Line of Credit [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | $ 1,023,000,000 | $ 1,500,000,000 | $ 1,275,000,000 | |||||||||
Revolving Credit Facility [Abstract] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,800,000,000 | |||||||||||
Cerro Verde [Abstract] | ||||||||||||
Term of Debt Agreement | 5 years | |||||||||||
Line of Credit Facility, Increase (Decrease), Net | $ 225,000,000 | |||||||||||
Number of Installment Payments under Installment Program | payment | 4 | |||||||||||
Debt Instrument, Periodic Payment | $ 20,000,000 | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.42% | |||||||||||
Letter of Credit [Member] | Line of Credit [Member] | ||||||||||||
Revolving Credit Facility [Abstract] | ||||||||||||
Long-term Line of Credit | $ 13,000,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,500,000,000 | 1,500,000,000 | ||||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt | 0 | 0 | ||||||||||
Revolving Credit Facility [Abstract] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,500,000,000 | |||||||||||
Amount of revolving credit facility available to PT Freeport Indonesia | $ 500,000,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 3,500,000,000 | |||||||||||
Debt Instrument, Payment Period One [Member] | Line of Credit [Member] | Cerro Verde | Line of Credit [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Debt Instrument, Periodic Payment | 225,000,000 | |||||||||||
Repayments of Lines of Credit | 5,000,000 | $ 220,000,000 | ||||||||||
June 30, 2021 [Member] | Line of Credit [Member] | Cerro Verde | Line of Credit [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Debt Instrument, Periodic Payment | 225,000,000 | |||||||||||
Debt Instrument, Payment Period Three [Member] | Line of Credit [Member] | Cerro Verde | Line of Credit [Member] | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Debt Instrument, Periodic Payment | $ 525,000,000 | |||||||||||
Maximum | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Debt Instrument, Leverage Ratio | 3.75 | |||||||||||
Minimum | ||||||||||||
Cerro Verde [Abstract] | ||||||||||||
Debt Instrument, Coverage Ratio | 2.25 |
DEBT - Components of Debt (Deta
DEBT - Components of Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2018 | Mar. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | May 30, 2016 | Nov. 30, 2014 | Mar. 31, 2013 | Feb. 28, 2012 | |
Debt Instruments [Line Items] | ||||||||||
Long-term Debt | $ 2,228 | |||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 11,141 | $ 13,229 | ||||||||
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | 17 | 1,414 | ||||||||
Long-term debt, less current portion | 11,124 | 11,815 | ||||||||
Term of Debt Agreement | 5 years | |||||||||
Senior Notes [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Long-term Debt | $ 800 | |||||||||
Senior Notes [Member] | 2.15% Senior Notes due 2017 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||||||||
Senior Notes [Member] | 2.30% Senior Notes Due 2017 | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | 2.30% | ||||||||
Senior Notes [Member] | 2.375% Senior Notes due March 2018 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | 2.375% | ||||||||
Long-term Debt | $ 0 | $ 1,408 | ||||||||
Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||||||||
Long-term Debt | 186 | |||||||||
Senior Notes [Member] | 3.100% Senior Notes due March 2020 | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||||||||
Long-term Debt | $ 999 | $ 997 | ||||||||
Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | ||||||||
Long-term Debt | 583 | |||||||||
Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | ||||||||
Long-term Debt | 242 | |||||||||
Senior Notes [Member] | 4.00% Senior Notes Due 2021 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | ||||||||
Long-term Debt | $ 597 | $ 596 | ||||||||
Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | 6.75% | ||||||||
Long-term Debt | $ 0 | $ 427 | 432 | |||||||
Senior Notes [Member] | 3.55% Senior Notes Due 2022 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% | ||||||||
Long-term Debt | $ 1,886 | $ 1,884 | ||||||||
Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | ||||||||
Long-term Debt | $ 768 | $ 776 | $ 785 | |||||||
Senior Notes [Member] | 3.875% Senior Notes due March 2023 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | 3.875% | ||||||||
Long-term Debt | $ 1,915 | 1,914 | ||||||||
Senior Notes [Member] | senior notes 4.55 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | 4.55% | ||||||||
Long-term Debt | $ 845 | 845 | ||||||||
Senior Notes [Member] | Senior Notes due 2034 5 point 4 percent [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||||||||
Long-term Debt | $ 741 | 740 | ||||||||
Senior Notes [Member] | 5.450% Senior Notes due March 2043 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | 5.45% | ||||||||
Long-term Debt | $ 1,843 | 1,842 | ||||||||
Other Debt [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 166 | 119 | ||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Long-term Debt | 0 | 0 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 3,500 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500 | |||||||||
Amount of revolving credit facility available to PT Freeport Indonesia | 500 | |||||||||
Letter of Credit [Member] | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Long-term Line of Credit | 13 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,500 | 1,500 | ||||||||
Cerro Verde | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,269 | |||||||||
Cerro Verde | Line of Credit [Member] | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Periodic Payment | 20 | |||||||||
Long-term Debt | $ 1,023 | $ 1,500 | $ 1,275 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,800 | |||||||||
Term of Debt Agreement | 5 years | |||||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |||||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |||||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | |||||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |||||||||
Long-term Debt | $ 0 | 54 | ||||||||
Freeport McMoRan Corporation [Member] | Senior Notes [Member] | Senior Notes Due 2031 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||||||||
Long-term Debt | $ 126 | 127 | ||||||||
Freeport McMoRan Corporation [Member] | Senior Notes [Member] | Senior Notes Due 2034 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |||||||||
Long-term Debt | $ 117 | 116 | ||||||||
Freeport McMoRan Corporation [Member] | Debentures [Member] | Debentures Due 2027 [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | |||||||||
Long-term Debt | $ 115 | 115 | ||||||||
Debt Instrument, Payment Period One [Member] | Cerro Verde | Line of Credit [Member] | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Periodic Payment | 225 | |||||||||
Repayments of Lines of Credit | 5 | $ 220 | ||||||||
Debt Instrument, Payment Period Three [Member] | Cerro Verde | Line of Credit [Member] | Line of Credit [Member] | ||||||||||
Debt Instruments [Line Items] | ||||||||||
Debt Instrument, Periodic Payment | $ 525 |
DEBT - Schedule of Senior Notes
DEBT - Schedule of Senior Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2014 | Mar. 30, 2013 | Feb. 29, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2013 | |
Debt Instruments [Line Items] | |||||||
Liabilities, Fair Value Adjustment | $ 58 | $ 97 | |||||
Debt Instrument, Face Amount | $ 2,342 | ||||||
Principal Amount of Senior Notes Tendered | 2,091 | ||||||
Long-term Debt | $ 2,228 | ||||||
Senior Notes [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Percentage of FM O&G LLC senior notes tendered for new FCX senior notes | 89.00% | ||||||
Debt Instrument, Unamortized Consideration Paid | 6 | ||||||
Liabilities, Fair Value Adjustment | 49 | $ 151 | |||||
Debt Instrument, Unamortized Fair Value Adjustments | 46 | ||||||
Debt Instrument, Face Amount | 454 | 1,234 | 407 | $ 6,500 | |||
Proceeds from Issuance of Long-term Debt | $ 2,970 | $ 6,400 | $ 2,470 | ||||
Long-term Debt | $ 800 | ||||||
Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Liabilities, Fair Value Adjustment | $ 5 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | |||||
Debt Instrument, Face Amount | $ 179 | 237 | |||||
Principal Amount of Senior Notes Tendered | 179 | ||||||
Long-term Debt | 186 | ||||||
Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Liabilities, Fair Value Adjustment | $ 23 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |||||
Debt Instrument, Face Amount | $ 552 | 617 | |||||
Principal Amount of Senior Notes Tendered | 552 | ||||||
Long-term Debt | 583 | ||||||
Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Liabilities, Fair Value Adjustment | $ 12 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | |||||
Debt Instrument, Face Amount | $ 228 | 261 | |||||
Principal Amount of Senior Notes Tendered | 228 | ||||||
Long-term Debt | 242 | ||||||
Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | 6.75% | |||||
Debt Instrument, Face Amount | $ 404 | 449 | |||||
Principal Amount of Senior Notes Tendered | 404 | ||||||
Long-term Debt | $ 0 | $ 427 | 432 | ||||
Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | |||||
Debt Instrument, Face Amount | 778 | ||||||
Principal Amount of Senior Notes Tendered | 728 | ||||||
Long-term Debt | $ 768 | $ 776 | $ 785 | ||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | ||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | |||||||
Debt Instruments [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | ||||||
Debt Instrument, Face Amount | $ 50 | ||||||
Long-term Debt | $ 0 | $ 54 |
DEBT - Debt Extinguishment (Det
DEBT - Debt Extinguishment (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2014 | Mar. 31, 2013 | Feb. 28, 2012 | |
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | $ 2,342,000,000 | |||||
Debt Issuance Costs, Net | $ (69,000,000) | $ (85,000,000) | ||||
Liabilities, Fair Value Adjustment | 58,000,000 | 97,000,000 | ||||
Gain (Loss) on Extinguishment of Debt | 7,000,000 | 21,000,000 | 26,000,000 | |||
Senior Notes [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 454,000,000 | 1,234,000,000 | 407,000,000 | $ 6,500,000,000 | ||
Debt Issuance Costs, Net | (26,000,000) | (4,000,000) | ||||
Liabilities, Fair Value Adjustment | 49,000,000 | 151,000,000 | ||||
Extinguishment of Debt, Amount | 480,000,000 | 1,283,000,000 | 403,000,000 | |||
Extinguishment Of Debt, Redemption Value | 470,000,000 | 1,257,000,000 | 349,000,000 | |||
Gain (Loss) on Extinguishment of Debt | 10,000,000 | 26,000,000 | 54,000,000 | |||
Gains (losses) primarily associated with modification of credit facility | 3,000,000 | (5,000,000) | ||||
Losses related to deferred debt issuance costs and senior note exchange offer | 28,000,000 | |||||
Senior Notes [Member] | 2.30% Senior Notes Due 2017 | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 20,000,000 | $ 750,000,000 | ||||
Debt Issuance Costs, Net | 0 | |||||
Extinguishment of Debt, Amount | 20,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 20,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 0 | |||||
Senior Notes [Member] | 2.375% Senior Notes due March 2018 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 74,000,000 | 18,000,000 | 1,500,000,000 | |||
Debt Issuance Costs, Net | 0 | |||||
Liabilities, Fair Value Adjustment | 0 | |||||
Extinguishment of Debt, Amount | 74,000,000 | 18,000,000 | ||||
Extinguishment Of Debt, Redemption Value | 74,000,000 | 18,000,000 | ||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | ||||
Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 179,000,000 | 237,000,000 | ||||
Liabilities, Fair Value Adjustment | 5,000,000 | |||||
Extinguishment of Debt, Amount | 184,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 182,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 2,000,000 | |||||
Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 552,000,000 | 617,000,000 | ||||
Liabilities, Fair Value Adjustment | 23,000,000 | |||||
Extinguishment of Debt, Amount | 575,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 562,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 13,000,000 | |||||
Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 228,000,000 | 261,000,000 | ||||
Liabilities, Fair Value Adjustment | 12,000,000 | |||||
Extinguishment of Debt, Amount | 240,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 234,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 6,000,000 | |||||
Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 404,000,000 | 449,000,000 | ||||
Debt Issuance Costs, Net | (22,000,000) | |||||
Extinguishment of Debt, Amount | 426,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 418,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 8,000,000 | |||||
Senior Notes [Member] | 3.55% Senior Notes Due 2022 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 108,000,000 | $ 2,000,000,000 | ||||
Debt Issuance Costs, Net | (1,000,000) | |||||
Extinguishment of Debt, Amount | 107,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 96,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 11,000,000 | |||||
Senior Notes [Member] | 3.875% Senior Notes due March 2023 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 77,000,000 | 2,000,000,000 | ||||
Debt Issuance Costs, Net | 0 | |||||
Extinguishment of Debt, Amount | 77,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 68,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 9,000,000 | |||||
Senior Notes [Member] | Senior Notes due 2034 5 point 4 percent [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 50,000,000 | $ 800,000,000 | ||||
Debt Issuance Costs, Net | (1,000,000) | |||||
Extinguishment of Debt, Amount | 49,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 41,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 8,000,000 | |||||
Senior Notes [Member] | 5.450% Senior Notes due March 2043 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 134,000,000 | $ 2,000,000,000 | ||||
Debt Issuance Costs, Net | (2,000,000) | |||||
Extinguishment of Debt, Amount | 132,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 106,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 26,000,000 | |||||
Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | $ 778,000,000 | |||||
Freeport-McMoRan Oil & Gas LLC [Member] | Senior Notes [Member] | 6.125% Senior Notes due 2019 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 58,000,000 | |||||
Liabilities, Fair Value Adjustment | 2,000,000 | |||||
Extinguishment of Debt, Amount | 60,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 59,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 1,000,000 | |||||
Freeport-McMoRan Oil & Gas LLC [Member] | Senior Notes [Member] | 6.5% Senior Notes due 2020 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 65,000,000 | |||||
Liabilities, Fair Value Adjustment | 3,000,000 | |||||
Extinguishment of Debt, Amount | 68,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 66,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 2,000,000 | |||||
Freeport-McMoRan Oil & Gas LLC [Member] | Senior Notes [Member] | 6.625% Senior Notes due 2021 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 33,000,000 | |||||
Liabilities, Fair Value Adjustment | 2,000,000 | |||||
Extinguishment of Debt, Amount | 35,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 34,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | 1,000,000 | |||||
Freeport-McMoRan Oil & Gas LLC [Member] | Senior Notes [Member] | 6.75% Senior Notes due 2022 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 45,000,000 | |||||
Liabilities, Fair Value Adjustment | 2,000,000 | |||||
Extinguishment of Debt, Amount | 47,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 46,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | $ 1,000,000 | |||||
Freeport-McMoRan Oil & Gas | Senior Notes [Member] | 6.875% Senior Notes due 2023 [Member] | ||||||
Debt Instruments [Line Items] | ||||||
Debt Instrument, Face Amount | 50,000,000 | |||||
Debt Issuance Costs, Net | (4,000,000) | |||||
Extinguishment of Debt, Amount | 54,000,000 | |||||
Extinguishment Of Debt, Redemption Value | 52,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | $ 2,000,000 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Billions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 1 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1.1 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2.4 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 2.7 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 3.9 |
OTHER LIABILITIES, INCLUDING _3
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS OTHER LIABILITEIS, INCLUDING EMPLOYEE BENEFIT (Components of Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Including Employee Benefits [Abstract] | ||
Pension, postretirement, postemployment and other employment benefits | $ 1,174 | $ 1,154 |
Estimated Litigation Liability | 631 | 368 |
Provision for tax positions | 230 | 291 |
Other | 195 | 199 |
Total other liabilities | $ 2,230 | $ 2,012 |
OTHER LIABILITIES, INCLUDING _4
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Penion Plans) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Rp / $ | Dec. 31, 2017USD ($)Rp / $ | Dec. 31, 2016USD ($) | |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 2,230 | $ 2,343 | $ 2,135 |
Discount rate | 4.40% | 3.70% | 4.40% |
Expected return on plan assets | 6.50% | ||
Estimated future average expected rate of return on passively managed pension assets | 6.00% | ||
Estimated future average expected premium on actively managed pension assets | 0.50% | ||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 124 | $ (188) | |
Service cost | 44 | 44 | $ 27 |
Interest cost | 84 | 91 | 93 |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 1 | (3) | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 120 | 118 | |
Total pension plan net assets | 1,433 | 1,588 | 1,329 |
Actual return on plan assets | (104) | 230 | |
Employer contributions | 70 | 145 | |
Foreign exchange (losses) gains | (1) | 2 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 120 | 118 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (797) | (755) | |
Accumulated benefit obligation | $ 2,101 | $ 2,218 | |
Rate of compensation increase | 3.25% | 3.25% | |
Other assets | $ 7 | $ 11 | |
Accounts payable and accrued liabilities | 4 | 4 | |
Liability, Defined Benefit Plan, Noncurrent | 800 | 762 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | $ (797) | (755) | |
Domestic Plan [Member] | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 41.00% | ||
Domestic Plan [Member] | Fixed Income Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 51.00% | ||
Domestic Plan [Member] | Alternative Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of assets | 8.00% | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Years of service required for annuity to equal percentage of executive's highest average compensation for any consecutive three-year period during the preceeding five years before retirement | 25 years | ||
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 220 | $ 240 | $ 374 |
Discount rate | 8.25% | 6.75% | 8.25% |
Expected return on plan assets | 7.75% | ||
Foreign currency exchange rate | Rp / $ | 14,409 | 13,480 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 19 | $ 61 | |
Service cost | 13 | 20 | $ 27 |
Interest cost | 14 | 23 | 29 |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 15 | 2 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | (62) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 13 | 52 | |
Total pension plan net assets | 238 | 269 | $ 284 |
Actual return on plan assets | (5) | 11 | |
Employer contributions | 4 | 28 | |
Foreign exchange (losses) gains | (17) | (2) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 13 | 52 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 18 | 29 | |
Accumulated benefit obligation | $ 181 | $ 194 | |
Rate of compensation increase | 4.00% | 4.00% | |
Other assets | $ 18 | $ 29 | |
Accounts payable and accrued liabilities | 0 | 0 | |
Liability, Defined Benefit Plan, Noncurrent | 0 | 0 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 18 | 29 | |
FCX [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 4 | 0 | |
PT Freeport Indonesia, Subsidiary | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | $ 0 | |
Measurement Input, Census Data [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (33) | ||
Measurement Input, Mortality Rate [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (49) | ||
Measurement Input, Discount Rate [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ (205) |
OTHER LIABILITIES, INCLUDING _5
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Schedule of Disclosures) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Rp / $ | Dec. 31, 2017USD ($)Rp / $ | Dec. 31, 2016USD ($) | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | $ 2,177 | $ 2,287 | |
Accumulated benefit obligation | 2,048 | 2,163 | |
Fair value of plan assets | 1,373 | 1,521 | |
Amounts recognized in other comprehensive loss (income) [Abstract] | |||
Prior service (credit) cost, net of tax | 4 | 0 | $ 0 |
Domestic Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,343 | 2,135 | |
Service cost | 44 | 44 | 27 |
Interest cost | 84 | 91 | 93 |
Actuarial (gains) losses | (124) | 188 | |
Foreign exchange (gains) losses | (1) | 3 | |
Curtailment | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 120 | 118 | |
Benefits obligation at end of year | 2,230 | 2,343 | 2,135 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 1,588 | 1,329 | |
Actual return on plan assets | (104) | 230 | |
Employer contributions | 70 | 145 | |
Foreign exchange (losses) gains | (1) | 2 | |
Benefits and administrative expenses paid | (120) | (118) | |
Fair value of plan assets at end of year | 1,433 | 1,588 | $ 1,329 |
Funded status at end of year | (797) | (755) | |
Accumulated benefit obligation | $ 2,101 | $ 2,218 | |
Weighted-average assumptions used to determine benefit obligations [Abstract] | |||
Discount rate | 4.40% | 3.70% | 4.40% |
Rate of compensation increase | 3.25% | 3.25% | |
Balance sheet classification of funded status: | |||
Other assets | $ 7 | $ 11 | |
Accounts payable and accrued liabilities | (4) | (4) | |
Other liabilities | (800) | (762) | |
Total | (797) | $ (755) | |
Estimated future employer contributions in next fiscal year | $ 74 | ||
Weighted-average assumptions used to determine benefit obligations [Abstract] | |||
Discount rate | 3.70% | 4.40% | 4.60% |
Expected return on plan assets | 6.50% | 7.00% | 7.25% |
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Components of net periodic benefit (income) cost and other amounts recognized in other comprehensive income [Abstract] | |||
Service cost | $ 44 | $ 44 | $ 27 |
Interest cost | 84 | 91 | 93 |
Expected return on plan assets | (101) | (93) | (96) |
Amortization of net actuarial losses | 49 | 49 | 42 |
Net periodic benefit cost | 76 | 91 | 66 |
Foreign Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 240 | 374 | |
Service cost | 13 | 20 | 27 |
Interest cost | 14 | 23 | 29 |
Actuarial (gains) losses | (19) | (61) | |
Foreign exchange (gains) losses | (15) | (2) | |
Curtailment | 0 | (62) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 13 | 52 | |
Benefits obligation at end of year | 220 | 240 | 374 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 269 | 284 | |
Actual return on plan assets | (5) | 11 | |
Employer contributions | 4 | 28 | |
Foreign exchange (losses) gains | (17) | (2) | |
Benefits and administrative expenses paid | (13) | (52) | |
Fair value of plan assets at end of year | 238 | 269 | $ 284 |
Funded status at end of year | 18 | 29 | |
Accumulated benefit obligation | $ 181 | $ 194 | |
Weighted-average assumptions used to determine benefit obligations [Abstract] | |||
Discount rate | 8.25% | 6.75% | 8.25% |
Rate of compensation increase | 4.00% | 4.00% | |
Balance sheet classification of funded status: | |||
Other assets | $ 18 | $ 29 | |
Accounts payable and accrued liabilities | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total | 18 | $ 29 | |
Estimated future employer contributions in next fiscal year | $ 2 | ||
Foreign currency exchange rate | Rp / $ | 14,409 | 13,480 | |
Weighted-average assumptions used to determine benefit obligations [Abstract] | |||
Discount rate | 6.75% | 8.25% | 9.00% |
Expected return on plan assets | 6.75% | 7.75% | 7.75% |
Rate of compensation increase | 4.00% | 8.00% | 9.40% |
Components of net periodic benefit (income) cost and other amounts recognized in other comprehensive income [Abstract] | |||
Service cost | $ 13 | $ 20 | $ 27 |
Interest cost | 14 | 23 | 29 |
Expected return on plan assets | (19) | (21) | (17) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 2 | 2 | 3 |
Amortization of net actuarial losses | (1) | 0 | 5 |
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment | 0 | 4 | 0 |
Net periodic benefit cost | 9 | 28 | $ 47 |
Pension Plan | |||
Amounts recognized in other comprehensive loss (income) [Abstract] | |||
Actuarial net loss (gain), Before Taxes | 659 | 620 | |
Prior service (credit), Before Taxes | 13 | 10 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 672 | 630 | |
Actuarial net loss (gain), net of tax | 539 | 412 | |
Prior service (credit) cost, net of tax | 8 | 6 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | $ 547 | $ 418 |
OTHER LIABILITIES, INCLUDING _6
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Schedule of FV of Financial Assets for Pension Plans) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic Plan [Member] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | $ 1,433 | $ 1,588 | $ 1,329 |
Domestic Plan [Member] | Global equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 291 | 404 | |
NAV | 291 | 404 | |
Domestic Plan [Member] | Fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 144 | 154 | |
NAV | 144 | 154 | |
Domestic Plan [Member] | Global fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 108 | 115 | |
NAV | 108 | 115 | |
Domestic Plan [Member] | Real estate property | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 55 | 50 | |
NAV | 55 | 50 | |
Domestic Plan [Member] | Emerging markets equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 71 | 87 | |
NAV | 71 | 87 | |
Domestic Plan [Member] | U.S. small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 54 | 67 | |
NAV | 54 | 67 | |
Domestic Plan [Member] | International small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 47 | 72 | |
NAV | 47 | 72 | |
Domestic Plan [Member] | U.S. real estate securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 41 | 45 | |
NAV | 41 | 45 | |
Domestic Plan [Member] | Short-term investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 15 | 12 | |
NAV | 15 | 12 | |
Domestic Plan [Member] | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 224 | 208 | |
NAV | 0 | 0 | |
Domestic Plan [Member] | Corporate bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 211 | 168 | |
NAV | 0 | 0 | |
Domestic Plan [Member] | Global large-cap equity securities [Domain] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 94 | 119 | |
NAV | 0 | 0 | |
Domestic Plan [Member] | Private equity investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 15 | 20 | |
NAV | 15 | 20 | |
Domestic Plan [Member] | Other investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 61 | 62 | |
NAV | 0 | 0 | |
Domestic Plan [Member] | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 1,431 | 1,583 | |
NAV | 841 | 1,026 | |
Domestic Plan [Member] | Cash and receivables | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 32 | 21 | |
Domestic Plan [Member] | Payables | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | (30) | (16) | |
Domestic Plan [Member] | Level 1 | Global equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Global fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Real estate property | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Emerging markets equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | U.S. small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | International small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | U.S. real estate securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Short-term investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Corporate bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Global large-cap equity securities [Domain] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 94 | 119 | |
Domestic Plan [Member] | Level 1 | Private equity investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 | Other investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 16 | 19 | |
Domestic Plan [Member] | Level 1 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 110 | 138 | |
Domestic Plan [Member] | Level 2 | Global equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Global fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Real estate property | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Emerging markets equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | U.S. small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | International small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | U.S. real estate securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Short-term investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 224 | 208 | |
Domestic Plan [Member] | Level 2 | Corporate bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 211 | 168 | |
Domestic Plan [Member] | Level 2 | Global large-cap equity securities [Domain] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Private equity investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 | Other investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 45 | 43 | |
Domestic Plan [Member] | Level 2 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 480 | 419 | |
Domestic Plan [Member] | Level 3 | Global equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Global fixed income securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Real estate property | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Emerging markets equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | U.S. small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | International small-cap equity | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | U.S. real estate securities | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Short-term investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Corporate bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Global large-cap equity securities [Domain] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Private equity investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Other investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 238 | 269 | $ 284 |
Foreign Plan [Member] | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 164 | 175 | |
Foreign Plan [Member] | Common Stock | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 72 | 78 | |
Foreign Plan [Member] | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 72 | 81 | |
Foreign Plan [Member] | Mutual funds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 20 | 16 | |
Foreign Plan [Member] | Cash and receivables | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 75 | 94 | |
Foreign Plan [Member] | Payables | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | (1) | ||
Foreign Plan [Member] | Level 1 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 164 | 175 | |
Foreign Plan [Member] | Level 1 | Common Stock | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 72 | 78 | |
Foreign Plan [Member] | Level 1 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 72 | 81 | |
Foreign Plan [Member] | Level 1 | Mutual funds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 20 | 16 | |
Foreign Plan [Member] | Level 2 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 | Common Stock | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 | Mutual funds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 | Total investments | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 | Common Stock | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 | Government bonds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 | Mutual funds | |||
Fair value of plan assets measurement [Line items] | |||
Total pension plan net assets | $ 0 | $ 0 |
OTHER LIABILITIES, INCLUDING _7
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Domestic Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 117 |
2,020 | 160 |
2,021 | 123 |
2,022 | 126 |
2,023 | 128 |
2024 through 2028 | 664 |
Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 45 |
2,020 | 11 |
2,021 | 19 |
2,022 | 22 |
2,023 | 30 |
2024 through 2028 | $ 160 |
OTHER LIABILITIES, INCLUDING _8
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Postretirement and Other Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Selling, general and administrative expenses | $ 443 | $ 477 | $ 597 |
Postemployment Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accounts payable and accrued liabilities | 6 | 5 | |
Other non-current liabilities | 39 | 38 | |
Postretirement Medical and Life Insurance Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accounts payable and accrued liabilities | 13 | 14 | |
Other non-current liabilities | $ 115 | $ 129 | |
Discount rate | 4.20% | 3.50% | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2,019 | $ 13 | ||
2,020 | 13 | ||
2,021 | 13 | ||
2,022 | 12 | ||
2,023 | 11 | ||
2024 through 2028 | 47 | ||
Net periodic benefit cost | $ 5 | $ 5 | $ 4 |
Discount rate | 3.50% | 3.80% | 4.10% |
Health care cost trend rates for the next fiscal year | 7.75% | ||
Ultimate health care cost trend rate | 4.25% |
OTHER LIABILITIES, INCLUDING _9
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Defined Contribution Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Liabilities | $ 24,324 | $ 26,006 | |
Other liabilities | 2,230 | 2,012 | |
Costs charged to operations for employee savings plans and defined contribution plans | 75 | 65 | $ 78 |
Costs capitalized to oil and gas properties for employee savings plans and defined benefit contribution plans | 0 | 0 | $ 4 |
401K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Liabilities | $ 45 | $ 46 |
OTHER LIABILITIES, INCLUDING_10
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Production and delivery | $ 11,691 | $ 10,266 | $ 10,687 | |
Selling, general and administrative expenses | 443 | 477 | 597 | |
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 85 | |||
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 6 | |||
Foreign Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (4) | |||
Indonesia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production and delivery | $ 62 | |||
Indonesia | Operating Segments | Grasberg Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production and delivery | 1,864 | 1,735 | 1,775 | |
Selling, general and administrative expenses | $ 123 | 126 | $ 88 | |
Indonesia | Operating Segments | Grasberg Segment [Member] | One-time Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Production and delivery | 120 | |||
Selling, general and administrative expenses | $ 5 |
STOCKHOLDERS' EQUITY AND STOC_3
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Common Stock) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 05, 2016 | Jun. 30, 2016 | Nov. 23, 2016 | Aug. 04, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Authorized shares of capital stock | 3,050 | ||||||
Authorized shares of common stock | 3,000 | ||||||
Authorized shares of preferred stock | 50 | ||||||
Issuance of common stock | $ 2,366 | ||||||
Proceeds from sale of common stock | $ 0 | $ 0 | 1,515 | ||||
Debt Instrument, Face Amount | $ 2,342 | ||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.2 | $ 0 | $ 0 | ||||
Common stocks | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock | $ 1,500 | $ 20 | |||||
Stock Issued During Period, Shares, New Issues | 4.3 | 48.1 | 116.5 | 27.7 | 197 | ||
Shares Issued, Price Per Share | $ 12.87 | ||||||
Proceeds from sale of common stock | $ 29 | $ 1,500 | $ 311 | ||||
Proceeds From Issuance Of Common Stock Net | 1,480 | ||||||
Payments of Stock Issuance Costs | $ 0.3 | $ 15 | |||||
Debt Instrument, Face Amount | $ 369 | ||||||
Ultra-deepwater Drillship Contracts [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 48.1 | ||||||
Proceeds from sale of common stock | $ 540 | ||||||
Payments of Stock Issuance Costs | $ 5 |
STOCKHOLDERS' EQUITY AND STOC_4
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, stockholders' equity | 7,977 | ||
Actuarial (losses) gains arising during the period, net of taxes | 77 | $ (14) | $ 88 |
Ending balance, stockholders' equity | 9,798 | 7,977 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (79) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Reclassification Adjustment, before Tax | (87) | 52 | (79) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, stockholders' equity | (494) | (554) | (507) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (84) | 7 | (91) |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 48 | 53 | 44 |
Ending balance, stockholders' equity | (615) | (494) | (554) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, stockholders' equity | (3) | (4) | (6) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 1 | 2 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 3 | 0 | 0 |
Ending balance, stockholders' equity | 0 | (3) | (4) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, stockholders' equity | 10 | 10 | 10 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | 0 | 0 |
Ending balance, stockholders' equity | 10 | 10 | 10 |
Accumulated Other Comprehensive Loss | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (79) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, stockholders' equity | (487) | (548) | (503) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (84) | 8 | (89) |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 51 | 53 | 44 |
Ending balance, stockholders' equity | (605) | (487) | (548) |
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest [Member] | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 4 | 45 | 11 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 0 | $ (5) | $ (4) |
PT Freeport Indonesia [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Actuarial (losses) gains arising during the period, net of taxes | (6) | ||
PT Freeport Indonesia [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Actuarial (losses) gains arising during the period, net of taxes | 0 | ||
PT Freeport Indonesia [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Actuarial (losses) gains arising during the period, net of taxes | 0 | ||
PT Freeport Indonesia [Member] | Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Actuarial (losses) gains arising during the period, net of taxes | $ (6) |
STOCKHOLDERS' EQUITY AND STOC_5
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common shares available for issuance under each of the stock award plans | 72,000 | ||
Number of shares available for grant | 58,600 | ||
Capitalized costs | $ 0 | $ 0 | $ 4 |
Total stock-based compensation | 74 | 71 | 89 |
Tax benefit of compensation costs | (4) | (4) | (3) |
Impact on net income | 70 | 67 | 82 |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 62 | 55 | 69 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 12 | $ 16 | $ 16 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted in period (number of RSUs and PSUs) | 500 | 600 | 1,500 |
2017 [Member] | Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted in period (number of RSUs and PSUs) | 187 |
STOCKHOLDERS' EQUITY AND STOC_6
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Stock Option and SARs) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Balance at beginning of period (in number of options/units) | 48,014,688 | ||
Granted (in number of options/units) | 3,315,000 | ||
Exercised (in number of options/units) | (801,706) | ||
Expired/Forfeited (in number of options/units) | (3,721,618) | ||
Balance at end of period (in number of options/units) | 46,806,364 | 48,014,688 | |
Weighted-average exercise price at beginning of period (in dollars per option) | $ 28.63 | ||
Granted, Exercise Price (in dollars per option) | 18.74 | ||
Exercised, Exercise Price (in dollars per option) | 10.05 | ||
Expired/Forfeited, Exercise Price (in dollars per option) | 39.26 | ||
Weighted-average exercise price at end of period (in dollars per option) | $ 27.40 | $ 28.63 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 38 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 39,919,885 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 29.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 9 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 26 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Annual vesting percentage | 33.00% | 25.00% | |
Total unrecognized compensation cost related to unvested options expected to be recognized over a weighted-average period | $ 23 | ||
Weighted-average period used in calculating unrecognized compensation cost, stock options (in years) | 1 year 5 months | ||
Fair value assumptions and methodology [Abstract] | |||
Weighted-average expected volatility | 46.10% | 51.40% | 71.60% |
Expected life of options (in years) | 5 years 11 months | 5 years 8 months 11 days | 5 years 4 months 3 days |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.20% | 0.00% | 0.00% |
Risk free interest rate | 2.60% | 2.00% | 1.30% |
Weighted-average grant-date fair value (in dollars per option) | $ 7.84 | $ 7.61 | $ 2.64 |
Total intrinsic value of options exercised | $ 7 | $ 5 | $ 0 |
Fair value of options vested | $ 24 | $ 25 | $ 43 |
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual vesting percentage | 33.00% |
STOCKHOLDERS' EQUITY AND STOC_7
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Equity RSUs and PSUs) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent Addition or Reduction In Restricted Stock Units If Performance Is Below Level Defined In Agreement | 25.00% | 25.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted in period (number of RSUs and PSUs) | 500,000 | 600,000 | 1,500,000 | |
Performance Shares [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Performance Share Unit Payout | 200.00% | 175.00% | ||
Performance Shares [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance Share Unit Payout | 0.00% | 0.00% | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Restricted Stock Units (RSUs) and Performance Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Balance at beginning of period (in number of RSUs and PSUs) | 5,206,624 | |||
Granted in period (number of RSUs and PSUs) | 2,127,785 | |||
Vested in Period (number of RSUs and PSUs) | (753,806) | |||
Forfeited in Period (number of RSUs and PSUs) | (775,966) | |||
Balance at end of period (in number of RSUs and PSUs) | 5,804,637 | 5,206,624 | ||
Beginning Balance - weighted average grant date fair value | $ 18.48 | |||
Granted - Weighted average grant date fair value | 19.11 | |||
Vested - weighted average grant date fair value | 15.53 | |||
Forfeited - weighted average grant date fair value | 11.91 | |||
Ending balance - weighted average grant date fair value | $ 19.97 | $ 18.48 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 60 | |||
Fair value of RSUs and PSUs granted | 41 | $ 32 | $ 37 | |
Intrinsic value of RSUs and PSUs vested | 14 | $ 45 | $ 22 | $ 22 |
Total unrecognized compensation cost related to unvested RSUs and PSUs expected to be recognized over a weighted-average period | $ 6 | |||
Weighted-average period used in calculating unrecognized compensation cost, RSUs and PSUs (in years) | 1 year 1 month | |||
Outside Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Outside Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
2017 [Member] | Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted in period (number of RSUs and PSUs) | 187,000 |
STOCKHOLDERS' EQUITY AND STOC_8
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Cash-settled RSUs and PSUs) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Accounts payable and accrued liabilities | $ 2,625 | $ 2,497 | ||
Cash Settled Restricted Stock Units (RSUs) and Performance Share Units (PSU's) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Balance at beginning of period (in number of RSUs and PSUs) | 1,307,235 | |||
Granted in period (number of RSUs and PSUs) | 870,312 | |||
Vested in Period (number of RSUs and PSUs) | (666,975) | |||
Forfeited in Period (number of RSUs and PSUs) | (23,706) | |||
Balance at end of period (in number of RSUs and PSUs) | 1,486,866 | 1,307,235 | ||
Beginning Balance - weighted average grant date fair value | $ 13.32 | |||
Granted - Weighted average grant date fair value | 17.91 | |||
Vested - weighted average grant date fair value | 14.12 | |||
Forfeited - weighted average grant date fair value | 15.92 | |||
Ending balance - weighted average grant date fair value | $ 15.61 | $ 13.32 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 15 | |||
Fair value of RSUs and PSUs granted | 16 | $ 10 | $ 4 | |
Intrinsic value of RSUs and PSUs vested | 12 | 27 | $ 15 | |
Other Liabilities | 3 | 5 | ||
Accounts payable and accrued liabilities | $ 7 | $ 11 | ||
Cash Settled Restricted Stock Units (RSUs) and Performance Share Units (PSU's) [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Cash settled Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Cash Settled Performance Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Granted in period (number of RSUs and PSUs) | 582,000 | |||
Vested in Period (number of RSUs and PSUs) | (487,000) |
STOCKHOLDERS' EQUITY AND STOC_9
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Other info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 195,322 | 1,041,937 | 906,120 |
Proceeds from Stock Options Exercised | $ 8 | $ 5 | $ 0 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options (Deprecated 2017-01-31) | 3 | 1 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 4 | $ 15 | $ 6 |
INCOME TAXES (Income before Inc
INCOME TAXES (Income before Income taxes and equity in affiliated companies' net earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 390 | $ 20 | $ (5,179) |
Foreign | 3,502 | 2,882 | 1,707 |
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings | $ 3,892 | $ 2,902 | $ (3,472) |
INCOME TAXES (Provision for (be
INCOME TAXES (Provision for (benefit from) income taxes) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||
Federal | $ (46,000,000) | $ 3,000,000 | $ (164,000,000) | ||
State | (1,000,000) | 10,000,000 | (17,000,000) | ||
Foreign | 1,445,000,000 | 1,426,000,000 | 352,000,000 | ||
Total current | 1,398,000,000 | 1,439,000,000 | 171,000,000 | ||
Deferred income taxes: | |||||
Federal | 106,000,000 | (64,000,000) | (137,000,000) | ||
State | 8,000,000 | (10,000,000) | (41,000,000) | ||
Foreign | 102,000,000 | (89,000,000) | 451,000,000 | ||
Total deferred | 216,000,000 | (163,000,000) | 273,000,000 | ||
Adjustments | (504,000,000) | (393,000,000) | (13,000,000) | ||
Operating loss carryforwards | (119,000,000) | 0 | (60,000,000) | ||
Provision for income taxes | 991,000,000 | 883,000,000 | 371,000,000 | ||
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | (123,000,000) | (393,000,000) | 0 | ||
Change in PT-FI tax rates | 504,000,000 | 0 | $ 0 | ||
Tax Cuts and Jobs Act of 2017, deferred tax assets, existing income tax expense (benefit) | $ 32,000,000 | $ 975,000,000 | 123,000,000 | (272,000,000) | |
Tax Cuts and Jobs Act of 2017, change in tax rate, provisional income tax expense (benefit) | $ 0 | $ (121,000,000) | (121,000,000) | ||
Minimum Tax Credit Carryforwards [Member] | |||||
Deferred income taxes: | |||||
Federal Income Tax Expense (Benefit), Continuing Operations | 76,000,000 | $ 438,000,000 | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 47,000,000 | ||||
Tax Authority, In Papau, Indonesia | |||||
Deferred income taxes: | |||||
Change in PT-FI tax rates | $ 504,000,000 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of U.S. federal statutory rate to effective tax rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||
U.S. federal statutory tax rate | $ (817) | $ (1,016) | $ 1,215 |
Valuation allowance, net | 129 | 28 | (1,680) |
Foreign tax credit limitation | (195) | (159) | (598) |
U.S. tax reformc | 123 | 393 | 0 |
Cerro Verde royalty disputed | (55) | (129) | 0 |
Change in PT-FI tax rates | 504 | 0 | 0 |
Impairment of oil and gas properties | 0 | 0 | 520 |
Percentage depletion | 141 | 227 | 211 |
Withholding and other impacts on foreign earnings | (232) | (216) | (93) |
Effect of foreign rates different than the U.S. federal statutory rate | (494) | 17 | 45 |
State income taxes | 7 | (5) | 46 |
Other items, net | (102) | (23) | (37) |
Provision for income taxes | $ (991) | $ (883) | $ (371) |
Percent | |||
U.S. federal statutory tax rate | (21.00%) | (35.00%) | (35.00%) |
Valuation allowance, net | 3.00% | 1.00% | 48.00% |
Foreign tax credit limitation | (5.00%) | (5.00%) | 17.00% |
U.S. tax reformc | 3.00% | 14.00% | (0.00%) |
Cerro Verde royalty disputed | (1.00%) | (5.00%) | (0.00%) |
Change in PT-FI tax rates | 13.00% | (0.00%) | (0.00%) |
Impairment of oil and gas properties | (0.00%) | (0.00%) | (15.00%) |
Percentage depletion | 4.00% | 8.00% | (6.00%) |
Withholding and other impacts on foreign earnings | (6.00%) | (7.00%) | 3.00% |
Effect of foreign rates different than the U.S. federal statutory rate | (13.00%) | 1.00% | (1.00%) |
State income taxes | 1.00% | (1.00%) | (1.00%) |
Other items, net | (3.00%) | (1.00%) | 1.00% |
Provision for income taxes | (25.00%) | (30.00%) | 11.00% |
Valuation allowances | $ 4,507 | $ 4,575 | |
Impairment To Oil And Gas Properties | |||
Percent | |||
Valuation allowances | $ 1,600 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Income Taxes [Line Items] | |||||||
Total income taxes paid to all jurisdictions | $ 2,000,000,000 | $ 702,000,000 | $ 203,000,000 | ||||
Tax refunds received from all jurisdictions | 108,000,000 | 329,000,000 | 247,000,000 | ||||
Tax Attributes | |||||||
Foreign tax credits | $ 1,814,000,000 | $ 2,129,000,000 | 1,814,000,000 | 2,129,000,000 | |||
Valuation allowances | 4,507,000,000 | 4,575,000,000 | 4,507,000,000 | 4,575,000,000 | |||
Valuation allowance, increase (decrease) | (68,000,000) | ||||||
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | (123,000,000) | (393,000,000) | 0 | ||||
Tax Cuts and Jobs Act of 2017, deferred tax assets, existing income tax expense (benefit) | 32,000,000 | 975,000,000 | 123,000,000 | (272,000,000) | |||
Tax Cuts and Jobs Act of 2017, change in tax rate, provisional income tax expense (benefit) | 0 | (121,000,000) | (121,000,000) | ||||
AMT credits | 490,000,000 | 490,000,000 | |||||
Reversal of valuation allowances due to 2017 Tax Cuts and Jobs Act | 272,000,000 | ||||||
Tax charge to establish a reserve for uncertain tax positions | 108,000,000 | 108,000,000 | |||||
Tax Cuts and Jobs Act of 2017, change in deferred tax asset valuation allowance | 32,000,000 | 1,100,000,000 | 244,000,000 | 1,100,000,000 | |||
Tax Cuts and Jobs Act of 2017, transition tax | (29,000,000) | ||||||
Income (loss) from continuing operation, foreign | 3,502,000,000 | 2,882,000,000 | 1,707,000,000 | ||||
Income (loss) from continuing operations, domestic | 390,000,000 | 20,000,000 | (5,179,000,000) | ||||
Change in PT-FI tax rates | $ 504,000,000 | $ 0 | $ 0 | ||||
U.S. federal statutory tax rate | 21.00% | 35.00% | 35.00% | ||||
Interest on income taxes accrued | 186,000,000 | 22,000,000 | $ 186,000,000 | $ 22,000,000 | $ 19,000,000 | ||
Unrecognized tax benefits | 404,000,000 | 390,000,000 | 404,000,000 | 390,000,000 | 101,000,000 | $ 110,000,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 296,000,000 | 296,000,000 | |||||
Unrecognized tax benefits that would impact the effective tax rate, net of tax benefits | 147,000,000 | 147,000,000 | |||||
Valuation allowance for operating loss carryforwards | |||||||
Tax Attributes | |||||||
Valuation allowances | 2,200,000,000 | 2,200,000,000 | |||||
Foreign Tax Credits | |||||||
Tax Attributes | |||||||
Valuation allowance, increase (decrease) | (305,000,000) | ||||||
Impairment To Oil And Gas Properties | |||||||
Tax Attributes | |||||||
Valuation allowances | 1,600,000,000 | ||||||
Net Operating Losses | |||||||
Tax Attributes | |||||||
Valuation allowance, increase (decrease) | $ (54,000,000) | ||||||
Discontinued Operations | |||||||
Schedule Of Income Taxes [Line Items] | |||||||
Total income taxes paid to all jurisdictions | 27,000,000 | ||||||
SUNAT | Cerro Verde | |||||||
Tax Attributes | |||||||
Foreign income tax rate under new stability agreement | 32.00% | ||||||
Foreign Tax Authority | |||||||
Tax Attributes | |||||||
Foreign tax credits | 1,100,000,000 | $ 1,100,000,000 | |||||
Tax Credit Carryforward, Valuation Allowance | 1,800,000,000 | 1,800,000,000 | |||||
Income (loss) from continuing operation, foreign | 5,400,000,000 | ||||||
Foreign Tax Authority | Tax Authority, Spain | |||||||
Tax Attributes | |||||||
Operating Loss Carryforwards | 537,000,000 | 537,000,000 | |||||
Foreign Tax Authority | Tax Authority, In Papau, Indonesia | |||||||
Tax Attributes | |||||||
Operating Loss Carryforwards | 975,000,000 | $ 975,000,000 | |||||
Foreign Tax Authority | Chili - Service of Internal Taxes | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 35.00% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Prior to September 2014 [Member] | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 35.00% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | 2020 and thereafter | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 44.50% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Tax years 2017 through 2021 [Member] | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 35.00% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Tax Year 2022 and Thereafter | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 44.50% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Tax Years 2013 to 2017 | |||||||
Tax Attributes | |||||||
Mining royalty tax rate | 4.00% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Tax Years 2018 to 2023 | Minimum | |||||||
Tax Attributes | |||||||
Mining royalty tax rate | 5.00% | ||||||
Foreign Tax Authority | Chili - Service of Internal Taxes | Tax Years 2018 to 2023 | Maximum | |||||||
Tax Attributes | |||||||
Mining royalty tax rate | 14.00% | ||||||
Foreign Tax Authority | SUNAT | 2014 | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 30.00% | ||||||
Dividend tax rate | 4.10% | ||||||
Foreign Tax Authority | SUNAT | 2019 and thereafter | |||||||
Tax Attributes | |||||||
U.S. federal statutory tax rate | 26.00% | ||||||
Dividend tax rate | 9.30% | ||||||
Foreign Tax Authority | SUNAT | Tax Year 2017 | |||||||
Tax Attributes | |||||||
Dividend tax rate | 5.00% | ||||||
Corporate Income Tax Rate | 29.50% | ||||||
Tax Authority, In Papau, Indonesia | |||||||
Tax Attributes | |||||||
Change in PT-FI tax rates | $ 504,000,000 | ||||||
Domestic Tax Authority | |||||||
Tax Attributes | |||||||
Operating Loss Carryforwards | 6,000,000,000 | 6,000,000,000 | |||||
Valuation allowances | $ 458,000,000 | 458,000,000 | |||||
Income (loss) from continuing operations, domestic | 5,400,000,000 | ||||||
State and Local Jurisdiction | |||||||
Tax Attributes | |||||||
Operating Loss Carryforwards | $ 10,500,000,000 | 10,500,000,000 | |||||
Alternative Minimum Tax Credit | |||||||
Tax Attributes | |||||||
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | 51,000,000 | $ (380,000,000) | |||||
AMT credit carryforwards | $ 110,000,000 | ||||||
Reserve for Taxes, Other than Income Taxes [Member] | |||||||
Tax Attributes | |||||||
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | $ 72,000,000 |
INCOME TAXES (Components of def
INCOME TAXES (Components of deferred tax assets and liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Foreign tax credits | $ 1,814 | $ 2,129 |
Accrued expenses | 881 | 789 |
Oil and gas properties | 0 | 236 |
Net operating losses | 2,235 | 2,043 |
Employee benefit plans | 245 | 248 |
Other | 212 | 260 |
Deferred tax assets | 5,387 | 5,705 |
Valuation allowances | (4,507) | (4,575) |
Net deferred tax assets | 880 | 1,130 |
Deferred tax liabilities: | ||
Property, plant, equipment and mine development costs | (4,200) | (3,754) |
Undistributed earnings | (578) | (811) |
Other | (130) | (223) |
Total deferred tax liabilities | (4,908) | (4,788) |
Net deferred tax liabilities | $ (4,028) | $ (3,658) |
INCOME TAXES (Reserve for unrec
INCOME TAXES (Reserve for unrecognized tax benefits, interest and penalties) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 390 | $ 101 | $ 110 |
Additions: | |||
Prior year tax positions | 100 | 302 | 5 |
Current year tax positions | 14 | 6 | 28 |
Decreases: | |||
Prior year tax positions | (86) | (1) | (3) |
Settlements with taxing authorities | (9) | (17) | 0 |
Lapse of statute of limitations | (5) | (1) | (39) |
Balance at end of year | $ 404 | $ 390 | $ 101 |
CONTINGENCIES (Environmental Ob
CONTINGENCIES (Environmental Obligations) (Details) site in Thousands, $ in Millions | Jan. 17, 2017USD ($)sitedivisions | Dec. 31, 2018USD ($)stateproject | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Site Contingency [Line Items] | ||||
Number of remediation projects | project | 100 | |||
Number of US States with remediation projects | state | 26 | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at beginning of year | $ 1,439 | $ 1,221 | $ 1,215 | |
Accretion Expense | 100 | 84 | 81 | |
Additionsb | 56 | 241 | 26 | |
Reductions | 0 | (43) | (43) | |
Spending | (84) | (64) | (58) | |
Balance at end of year | 1,511 | 1,439 | 1,221 | |
Less current portion | (132) | (134) | (129) | |
Long-term portion | 1,379 | 1,305 | $ 1,092 | |
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||
2,019 | 132 | |||
2,020 | 117 | |||
2,021 | 119 | |||
2,022 | 88 | |||
2,023 | 100 | |||
Thereafter | 2,700 | |||
Estimated environmental obligations on a discounted basis | 1,400 | |||
Estimated environmental obligations on an undiscounted and unescalated | 3,300 | |||
Environmental Loss Contingency, Number of Uranium Sites on Tribal Lands | divisions | 94 | |||
Value of Consent Decree, Uranium Mines on Tribal Lands | $ 600 | |||
Remediation work related to Uranium mines, amount to be contributed by the U.S. Government | $ 335 | |||
Uranium mine remediation work, program term, in years | 20 years | |||
Number of site surveys being performed to mining claims | site | 10 | |||
Minimum | ||||
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||
Estimated environmental obligations on an undiscounted and unescalated | 2,700 | |||
Maximum | ||||
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||
Estimated environmental obligations on an undiscounted and unescalated | 3,700 | |||
Pinal Creek, AZ; Newtown Creek, NY; Smelter Sites in Arizona, Indiana, Kansas, Missouri, New Jersey, Oklahoma, Pennsylvania; and Uranium Mining in Wester United States | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Balance at end of year | $ 1,300 | |||
Newtown Creek | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Additionsb | 138 | |||
Borough of Carteret | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Additionsb | 59 | |||
Uranium Mining Sites | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Reductions | $ (41) |
CONTINGENCIES (Asset Retirement
CONTINGENCIES (Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of year | $ 2,583 | $ 2,638 | $ 2,774 |
Liabilities incurred | 1 | 14 | 12 |
Settlements and revisions to cash flow estimates, net | 50 | (112) | 529 |
Accretion expense | 110 | 124 | 137 |
Dispositions | (37) | (10) | (626) |
Spending | (160) | (71) | (188) |
Balance at end of year | 2,547 | 2,583 | 2,638 |
Less current portion | (317) | (286) | (240) |
Long-term portion | $ 2,230 | $ 2,297 | $ 2,398 |
CONTINGENCIES (Financial Assura
CONTINGENCIES (Financial Assurances) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Freeport-McMoRan Oil & Gas | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, carrying value | $ 545 | |
NEW MEXICO | ||
Guarantor Obligations [Line Items] | ||
Legally restricted funds for asset retirement obligations at New Mexico mines | 180 | $ 180 |
New Mexico, Arizona, Colorado and Other States | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, carrying value | 1,200 | |
New Mexico, Arizona, Colorado and Other States | Guarantee | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, carrying value | $ 703 |
CONTINGENCIES (Environmental an
CONTINGENCIES (Environmental and Reclamation Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Site Contingency [Line Items] | |||
ARO, change in estimate | $ 50 | $ (112) | $ 529 |
PT-FI | |||
Site Contingency [Line Items] | |||
Reclamation and Mine Shutdown Provision | $ 372 | ||
New Mexico Environmental And Reclamation Programs | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 450 | ||
Arizona Environmental And Reclamation Programs | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 367 | ||
Colorado Environmental And Reclamation Programs | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 61 | ||
El Abra | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 63 | ||
Cerro Verde | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 105 | ||
Pt Freeport Indonesia Environmental And Reclamation Programs [Member] | |||
Site Contingency [Line Items] | |||
Accrued reclamation and closure costs | 991 | ||
Mine Closure | |||
Site Contingency [Line Items] | |||
Funding restricted time deposit during period for closure and reclamation guarantees | 90 | ||
Mine Reclamation | |||
Site Contingency [Line Items] | |||
Funding restricted time deposit during period for closure and reclamation guarantees | 11 | ||
MOEF Framework | |||
Site Contingency [Line Items] | |||
Permit Fees | $ 32 |
CONTINGENCIES (Oil and Gas Prop
CONTINGENCIES (Oil and Gas Properties) (Details) $ in Millions | Dec. 31, 2018USD ($)platformwell | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
ARO, noncurrent | $ 2,547 | $ 2,583 | $ 2,638 | $ 2,774 |
Freeport-McMoRan Oil & Gas | ||||
Loss Contingencies [Line Items] | ||||
Number of productive oil wells | well | 210 | |||
Number of platforms and other structures | platform | 120 | |||
ARO, noncurrent | $ 476 |
CONTINGENCIES (Tax and Other Ma
CONTINGENCIES (Tax and Other Matters) (Details) $ in Millions, Rp in Trillions | Jan. 01, 2014 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018IDR (Rp) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 21, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Income Tax Examination [Line Items] | |||||||||
Payments for legal settlements | $ 56 | $ 53 | $ 30 | ||||||
Provision for (benefit from) income taxes | (991) | (883) | (371) | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | (292) | (274) | $ (227) | ||||||
Long-term receivable for taxes | 260 | 445 | $ 260 | $ 260 | |||||
Other assets | $ 2,172 | 2,273 | 2,172 | 2,172 | |||||
Smelter development export duty, threshold | 50.00% | 50.00% | |||||||
Cerro Verde | |||||||||
Income Tax Examination [Line Items] | |||||||||
Stability agreement, term | 15 years | ||||||||
Cerro Verde | Tax Year 2012 to Tax Year 2013 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, loss in period | $ 14 | ||||||||
Provision for (benefit from) income taxes | 17 | ||||||||
Cerro Verde Royalty Dispute | Cerro Verde | Royalty Assessments | |||||||||
Income Tax Examination [Line Items] | |||||||||
Provision for (benefit from) income taxes | 35 | (7) | 28 | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 176 | 169 | 345 | ||||||
Cerro Verde Royalty Dispute | Cerro Verde | December 2006 to Tax Year 2013 | Royalty Assessments | |||||||||
Income Tax Examination [Line Items] | |||||||||
Provision for (benefit from) income taxes | 129 | ||||||||
Judicial Ruling | Cerro Verde Royalty Dispute | Tax Year 2006 To Tax Year 2008 | Royalty Assessments | |||||||||
Income Tax Examination [Line Items] | |||||||||
Payments for legal settlements | 188 | ||||||||
Judicial Ruling | Cerro Verde Royalty Dispute | December 2006 to Tax Year 2013 | Unfavorable Regulatory Actions | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, loss in period | (348) | ||||||||
Loss contingency, loss in period, including tax charges | (186) | ||||||||
Provision for (benefit from) income taxes | (7) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | $ 169 | ||||||||
Judicial Ruling | Cerro Verde Royalty Dispute | Tax Year 2009 to Tax Year 2013 | Unfavorable Regulatory Actions | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, loss in period | (420) | ||||||||
Loss contingency, loss in period, including tax charges | (211) | ||||||||
Provision for (benefit from) income taxes | 18 | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 191 | ||||||||
PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Other assets | $ 350 | 350 | 350 | ||||||
Progressive export duty on copper concentrates, lower threshold, percent | 2.50% | 2.50% | 5.00% | ||||||
Progressive export duty on copper concentrates, higher threshold, percent | 5.00% | 5.00% | 7.50% | 7.50% | |||||
Progressive export duty on copper concentrates, change, percent | 2.50% | ||||||||
Smelter development export duty, threshold | 50.00% | 50.00% | |||||||
Restricted Cash and Cash Equivalents | $ 144 | $ 38 | 144 | 144 | |||||
SUNAT | Cerro Verde | October 2011 to September 2012 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Tax refund, requested | 57 | 57 | 57 | ||||||
SUNAT | Cerro Verde | |||||||||
Income Tax Examination [Line Items] | |||||||||
Long-term receivable for taxes | 386 | 386 | 386 | ||||||
Increase (decrease) in income taxes receivable | 203 | 203 | 203 | ||||||
Tax Authority, In Papau, Indonesia | PT-FI | Penalties | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss Contingency, Offer to Other Party | 69 | ||||||||
Tax Authority, In Papau, Indonesia | PT-FI | January 2016 through April 2017 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $ 48 | 80 | $ 48 | $ 48 | |||||
Change in loss contingency, percent | 40.00% | 40.00% | 40.00% | ||||||
Tax Authority, In Papau, Indonesia | PT-FI | August 2015 through March 2018 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $ 174 | $ 174 | $ 174 | ||||||
Tax Authority, In Papau, Indonesia | PT-FI | August 2015 through March 2018 | Penalties | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, estimate of possible loss | 87 | 87 | 87 | ||||||
Loss Contingency, Offer to Other Party | 69 | Rp 1 | |||||||
Tax Authority, In Papau, Indonesia | PT-FI | Tax Years 2013 to 2017 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, estimate of possible loss | 251 | 251 | 251 | ||||||
Indonesian Supreme Court | PT-FI | The year 2005 and the year 2007 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, loss in period | (61) | ||||||||
Cerro Verde | |||||||||
Income Tax Examination [Line Items] | |||||||||
Long-term receivable for taxes | 183 | 185 | 183 | 183 | |||||
PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Long-term receivable for taxes | 493 | 417 | 493 | 493 | |||||
FCX | Cerro Verde | Tax Year 2012 to Tax Year 2013 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Loss contingency, loss in period, including tax charges | 16 | ||||||||
Noncontrolling Interests | Cerro Verde | Tax Year 2012 to Tax Year 2013 | |||||||||
Income Tax Examination [Line Items] | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | (15) | ||||||||
Income and Other Tax Receivables | PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Restricted Cash and Cash Equivalents | 15 | 15 | 15 | ||||||
Other Current Assets | PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Restricted Cash and Cash Equivalents | 7 | 22 | 7 | 7 | |||||
Other Assets | PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Restricted Cash and Cash Equivalents | $ 122 | $ 16 | $ 122 | $ 122 | |||||
Scenario, Forecast [Member] | Annual Surface Water Tax Payments [Member] | PT-FI | |||||||||
Income Tax Examination [Line Items] | |||||||||
Acquire water systems | $ 15 |
CONTINGENCIES (Royalty Dispute
CONTINGENCIES (Royalty Dispute Schedule) (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Production and delivery | $ 11,691 | $ 10,266 | $ 10,687 | |
Interest expense, net | 945 | 801 | 755 | |
Provision for (benefit from) income taxes | (991) | (883) | (371) | |
Net loss attributable to noncontrolling interests | 292 | 274 | $ 227 | |
Cerro Verde | Cerro Verde Royalty Dispute | Royalty Assessments | ||||
Loss Contingencies [Line Items] | ||||
Production and delivery | 14 | 203 | $ 217 | |
Interest expense, net | 370 | 145 | 515 | |
Other expense | 22 | 0 | 22 | |
Provision for (benefit from) income taxes | 35 | (7) | 28 | |
Net loss attributable to noncontrolling interests | (176) | (169) | (345) | |
Loss contingency, loss In period, attributable to parent | $ 195 | 186 | $ 381 | |
December 2006 To September 2011 | Cerro Verde | Cerro Verde Royalty Dispute | Royalty Assessments | ||||
Loss Contingencies [Line Items] | ||||
Production and delivery | 175 | |||
October 2011 to 2013 | Cerro Verde | Cerro Verde Royalty Dispute | Royalty Assessments | ||||
Loss Contingencies [Line Items] | ||||
Provision for (benefit from) income taxes | 69 | |||
October 2011 to 2013 | Cerro Verde | Cerro Verde Royalty Dispute | Disputed Royalty Assessments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Provision for (benefit from) income taxes | (136) | |||
October 2011 to 2013 | Cerro Verde | Cerro Verde Royalty Dispute | Royalty Assessments, Taxes [Member] | ||||
Loss Contingencies [Line Items] | ||||
Provision for (benefit from) income taxes | (67) | |||
December 2006 to Tax Year 2013 | Cerro Verde | Cerro Verde Royalty Dispute | Royalty Assessments | ||||
Loss Contingencies [Line Items] | ||||
Provision for (benefit from) income taxes | $ 129 |
CONTINGENCIES (Tax Matters by T
CONTINGENCIES (Tax Matters by Tax Year) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Examination [Line Items] | ||
Income Taxes Receivable, Noncurrent | $ 260 | $ 445 |
SUNAT | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Income Taxes Receivable, Noncurrent | 386 | |
Tax Assessment | 257 | |
Penalty and Interest Assessment | 351 | |
Total | 608 | |
SUNAT | 2003 to 2008 | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 56 | |
Penalty and Interest Assessment | 130 | |
Total | 186 | |
SUNAT | 2009 | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 57 | |
Penalty and Interest Assessment | 51 | |
Total | 108 | |
SUNAT | 2010 | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 63 | |
Penalty and Interest Assessment | 105 | |
Total | 168 | |
SUNAT | 2011 | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 49 | |
Penalty and Interest Assessment | 65 | |
Total | 114 | |
SUNAT | 2014 to 2018 | Cerro Verde | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 32 | |
Penalty and Interest Assessment | 0 | |
Total | 32 | |
Indonesian Tax Authority | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 1,016 | |
Interest Assessment | 288 | |
Total | 1,304 | |
Indonesian Tax Authority | 2005 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 73 | |
Interest Assessment | 35 | |
Total | 108 | |
Indonesian Tax Authority | 2007 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 47 | |
Interest Assessment | 23 | |
Total | 70 | |
Indonesian Tax Authority | 2009, 2010 to 2011 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 55 | |
Interest Assessment | 37 | |
Total | 92 | |
Indonesian Tax Authority | 2012 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 124 | |
Interest Assessment | 0 | |
Total | 124 | |
Indonesian Tax Authority | 2013 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 154 | |
Interest Assessment | 74 | |
Total | 228 | |
Indonesian Tax Authority | 2014 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 139 | |
Interest Assessment | 6 | |
Total | 145 | |
Indonesian Tax Authority | 2015 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 158 | |
Interest Assessment | 0 | |
Total | 158 | |
Indonesian Tax Authority | 2016 | PT-FI | ||
Income Tax Examination [Line Items] | ||
Tax Assessment | 266 | |
Interest Assessment | 113 | |
Total | 379 | |
PT-FI | ||
Income Tax Examination [Line Items] | ||
Income Taxes Receivable, Noncurrent | $ 493 | $ 417 |
CONTINGENCIES (Letters of Credi
CONTINGENCIES (Letters of Credit, Bank Guarantees and Surety Bonds) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Surety Bond | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, carrying value | $ 342 |
Cerro Verde | |
Guarantor Obligations [Line Items] | |
Outstanding Standby Letters Of Credit | $ 528 |
CONTINGENCIES (Insurance) (Deta
CONTINGENCIES (Insurance) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Self insurance reserve | $ 60 |
Self insurance reserve, current | 11 |
Self insurance reserve, non-current | 49 |
Insurance receivables | 15 |
Insurance receivables, current | 2 |
Insurance receivables, noncurrent | $ 13 |
COMMITMENTS AND GUARANTEES (Ope
COMMITMENTS AND GUARANTEES (Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating leases, future minimum payments due: | |||
2,019 | $ 53 | ||
2,020 | 42 | ||
2,021 | 38 | ||
2,022 | 32 | ||
2,023 | 29 | ||
Thereafter | 171 | ||
Total aggregate rental expense under operating leases | $ 80 | $ 59 | $ 71 |
COMMITMENTS AND GUARANTEES (Con
COMMITMENTS AND GUARANTEES (Contractual Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Unconditional purchase obligations [Line Items] | |
Unconditional purchase obligations | $ 2,900 |
2,019 | 2,100 |
2,020 | 234 |
2,021 | 147 |
2,022 | 50 |
2,023 | 44 |
Thereafter | 301 |
Copper concentrates | |
Unconditional purchase obligations [Line Items] | |
Unconditional purchase obligations | 1,500 |
Cobalt | |
Unconditional purchase obligations [Line Items] | |
Unconditional purchase obligations | 500 |
Electricity | |
Unconditional purchase obligations [Line Items] | |
Unconditional purchase obligations | 400 |
Transportation | |
Unconditional purchase obligations [Line Items] | |
Unconditional purchase obligations | $ 300 |
COMMITMENTS AND GUARANTEES (Spe
COMMITMENTS AND GUARANTEES (Special Mining License (IUPK)) (Details) - USD ($) $ in Millions | 12 Months Ended | 21 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 21, 2018 | |
Contractual Obligations Mining Contracts [Line Items] | ||||
Smelter Development Progress, Higher Threshold, Percent | 50.00% | |||
Royalty Expense | $ 246 | $ 181 | $ 138 | |
Export Duties Expense | 180 | $ 115 | 95 | |
Surety Bond | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Assurance Bond, Smelter Development | $ 342 | |||
PT-FI | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Progressive export duty on copper concentrates, lower threshold, percent | 2.50% | 5.00% | ||
Progressive export duty on copper concentrates, higher threshold, percent | 5.00% | 7.50% | 7.50% | |
Progressive export duty on copper concentrates, change, percent | 2.50% | |||
Restricted Cash and Cash Equivalents | $ 144 | $ 38 | ||
Smelter Development Progress, Lower Threshold, Percent | 30.00% | |||
Smelter Development Progress, Higher Threshold, Percent | 50.00% | |||
Royalty Expense | $ 238 | 173 | 131 | |
Export Duties Expense | $ 180 | 115 | $ 95 | |
PT-FI | Copper | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Royalty Interest in Future Production | 4.00% | |||
PT-FI | Gold | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Royalty Interest in Future Production | 3.75% | |||
PT-FI | Silver | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Royalty Interest in Future Production | 3.25% | |||
PT-FI | Construction Contracts | Surety Bond | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Assurance Bond, Smelter Development | $ 126 | |||
Other Current Assets | PT-FI | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 7 | $ 22 | ||
PT-FI | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Ownership percentage | 48.76% | 81.28% | ||
PT-FI | PT Indocopper Investama [Member] | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Ownership percentage | 9.36% | |||
Tax Authority, In Papua, Indonesia | ||||
Contractual Obligations Mining Contracts [Line Items] | ||||
Foreign income tax rate under new stability agreement | 25.00% | |||
Foreign Profits Tax Rate on Net Income Under New Stability Agreement | 10.00% |
COMMITMENTS AND GUARANTEES (Oth
COMMITMENTS AND GUARANTEES (Other and Community Development Programs) (Details) - USD ($) shares in Millions, $ in Millions | Jan. 05, 2016 | Jan. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Nov. 23, 2016 | Aug. 04, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | |||||||||
Total cost of sales | $ 13,445 | $ 11,980 | $ 17,534 | ||||||
Community Development Programs | PT-FI | |||||||||
Other Commitments [Line Items] | |||||||||
Total cost of sales | $ 55 | 44 | 33 | ||||||
Percentage of annual revenue committed for the development of the local people in the area of operations | 1.00% | ||||||||
Ultra-deepwater Drillship Contracts [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 48.1 | ||||||||
Proceeds from Issuance of Common Stock, Gross | $ 540 | ||||||||
Rowan Companies plc [Member] | Contract Termination [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Loss Contingency Accrual, Payments | $ 6 | $ 0 | 215 | ||||||
Ultra-deepwater Drillship Contracts [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Unrecorded Unconditional Purchase Obligation, Change of Amount as Result of Variable Components | $ 1,100 | ||||||||
Ultra-deepwater Drillship Contracts [Member] | Rowan Companies plc [Member] | Maximum | |||||||||
Other Commitments [Line Items] | |||||||||
Contingent Payments, Contract Termination | 30 | ||||||||
Ultra-deepwater Drillship Contracts [Member] | Noble Drilling LLC [Member] | Maximum | |||||||||
Other Commitments [Line Items] | |||||||||
Contingent Payments, Contract Termination | $ 75 | ||||||||
Common Stock | |||||||||
Other Commitments [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 4.3 | 48.1 | 116.5 | 27.7 | 197 |
FINANCIAL INSTRUMENTS (Unrealiz
FINANCIAL INSTRUMENTS (Unrealized gains losses) (Details) oz in Thousands, lb in Millions, $ in Millions | Dec. 31, 2018lboz$ / lb$ / lb$ / oz | Dec. 31, 2018USD ($)$ / lb$ / lb$ / oz | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Derivatives Not Designated as Hedging Instruments | Amounts recorded in Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ | $ (317) | $ 515 | $ 266 | |
Commodity Contract [Member] | ||||
Unrealized gains (losses): | ||||
Derivative financial instruments | $ | (20) | 4 | 16 | |
Hedged item – firm sales commitments | $ | 20 | (4) | (16) | |
Realized gains (losses): | ||||
Matured derivative financial instruments | $ | $ (22) | 30 | 1 | |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | lb | 68 | |||
Derivative, Average Forward Price | $ / lb | 2.77 | 2.77 | ||
Crude Oil Options [Member] | Derivatives Not Designated as Hedging Instruments | Freeport-McMoRan Oil & Gas | Amounts recorded in Sales [Member] | ||||
Realized gains (losses): | ||||
Matured derivative financial instruments | $ | $ 0 | 0 | (35) | |
Copper Forward Contracts [Member] | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | lb | 8 | |||
Derivative, Average Forward Price | $ / lb | 2.76 | 2.76 | ||
Copper Forward Contracts [Member] | Derivatives Not Designated as Hedging Instruments | Amounts recorded in Cost of Sales | ||||
Realized gains (losses): | ||||
Matured derivative financial instruments | $ | $ 18 | (15) | 5 | |
Copper | Derivatives Not Designated as Hedging Instruments | Amounts recorded in Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ | $ (310) | 489 | 262 | |
Copper | Short [Member] | Embedded Derivative Financial Instruments [Member] | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | lb | 489 | |||
Derivative, Average Forward Price | $ / lb | 2.78 | 2.78 | ||
Realized gains (losses): | ||||
Derivative Average Market Price | $ / lb | 2.70 | 2.70 | ||
Copper | Long [Member] | Embedded Derivative Financial Instruments [Member] | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | lb | 117 | |||
Derivative, Average Forward Price | $ / lb | 2.79 | 2.79 | ||
Realized gains (losses): | ||||
Derivative Average Market Price | $ / lb | 2.71 | 2.71 | ||
Gold | Short [Member] | Embedded Derivative Financial Instruments [Member] | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | oz | 119 | |||
Derivative, Average Forward Price | $ / oz | 1,229 | 1,229 | ||
Realized gains (losses): | ||||
Derivative Average Market Price | $ / oz | 1,286 | 1,286 | ||
Cobalt | Long [Member] | Embedded Derivative Financial Instruments [Member] | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Nonmonetary Notional Amount, Mass | lb | 9 | |||
Derivative, Average Forward Price | $ / lb | 19.58 | 19.58 | ||
Realized gains (losses): | ||||
Derivative Average Market Price | $ / lb | 19.25 | 19.25 | ||
gold and other [Member] | Derivatives Not Designated as Hedging Instruments | Amounts recorded in Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ | $ (7) | $ 26 | $ 4 |
FINANCIAL INSTRUMENTS (Unsettle
FINANCIAL INSTRUMENTS (Unsettled Derivatives) (Details) lb in Millions, $ in Millions | Dec. 31, 2018USD ($)lb | Dec. 31, 2017USD ($) |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 23 | $ 167 |
Derivative Liability, Fair Value, Gross Liability | 48 | 57 |
Derivative Liability, Fair Value, Gross Asset | 7 | 1 |
Derivative Asset, Fair Value, Gross Liability | 7 | 1 |
Derivative Asset | 16 | 166 |
Derivative Liability | 41 | 56 |
Trade accounts receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 3 | 151 |
Derivative Liability | 24 | 0 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 11 |
Derivative Liability | 0 | 0 |
Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 13 | 4 |
Derivative Liability | 17 | 56 |
Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 12 |
Derivative Liability, Fair Value, Gross Liability | 9 | 2 |
Derivative Liability, Fair Value, Gross Asset | 0 | 1 |
Derivative Asset, Fair Value, Gross Liability | 0 | 1 |
Derivative Asset | 0 | 11 |
Derivative Liability | 9 | 1 |
Embedded Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 23 | 155 |
Derivative Liability, Fair Value, Gross Liability | 39 | 55 |
Derivative Liability, Fair Value, Gross Asset | 7 | 0 |
Derivative Asset, Fair Value, Gross Liability | 7 | 0 |
Derivative Asset | 16 | 155 |
Derivative Liability | 32 | 55 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | 11 |
Derivative, Nonmonetary Notional Amount, Mass | lb | 68 | |
Derivatives Not Designated as Hedging Instruments | Embedded Derivative Financial Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 23 | 155 |
Derivative Liability, Fair Value, Gross Liability | $ 39 | 55 |
Derivatives Not Designated as Hedging Instruments | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Mass | lb | 8 | |
Future [Member] | Derivatives Not Designated as Hedging Instruments | FMC's Copper Futures and Swap Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 9 | 0 |
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 2 |
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments | Forward Contracts [Member] | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 1 |
FINANCIAL INSTRUMENTS (Derivati
FINANCIAL INSTRUMENTS (Derivative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 4,217 | $ 4,526 | ||
Restricted Cash and Cash Equivalents, Current | 110 | 52 | ||
Restricted Cash and Cash Equivalents, Noncurrent | 128 | 132 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,455 | 4,710 | $ 4,420 | $ 341 |
Credit Derivative, Maximum Exposure, Undiscounted | 16 | |||
Bank Time Deposits [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 2,300 | $ 2,900 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Other current assets | $ 422 | $ 286 |
Other assets | 2,172 | 2,273 |
Derivative Liability, Fair Value, Gross Liability | 48 | 57 |
Derivatives: | ||
Derivative Asset | 16 | 166 |
Derivatives: [Abstract] | ||
Derivative Liability | 41 | 56 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 25 | 25 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 55 | 55 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 4 | 5 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 5 | 11 |
Derivatives: | ||
Derivative Asset | 0 | 9 |
Contingent receivable | 0 | 0 |
Derivatives: [Abstract] | ||
Derivative Liability | 7 | 1 |
Long-term debt, including current portion | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 121 | 123 |
Derivatives: | ||
Derivative Asset | 96 | 266 |
Contingent receivable | 0 | 0 |
Derivatives: [Abstract] | ||
Derivative Liability | 41 | 56 |
Long-term debt, including current portion | 10,238 | 13,381 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Derivatives: | ||
Derivative Asset | 0 | 0 |
Contingent receivable | 127 | 134 |
Derivatives: [Abstract] | ||
Derivative Liability | 0 | 0 |
Long-term debt, including current portion | 0 | 0 |
Carrying Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 29 | 30 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 181 | 189 |
Derivatives: | ||
Derivative Asset | 96 | 275 |
Contingent receivable | 143 | 150 |
Derivatives: [Abstract] | ||
Derivative Liability | 48 | 57 |
Long-term debt, including current portion | 11,141 | 13,229 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 29 | 30 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 181 | 189 |
Derivatives: | ||
Derivative Asset | 96 | 275 |
Contingent receivable | 127 | 134 |
Derivatives: [Abstract] | ||
Derivative Liability | 48 | 57 |
Long-term debt, including current portion | 10,238 | 13,381 |
Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 39 | 55 |
Derivatives: | ||
Derivative Asset | 16 | 155 |
Derivatives: [Abstract] | ||
Derivative Liability | 32 | 55 |
Embedded Derivative Financial Instruments [Member] | Level 1 | ||
Derivatives: | ||
Derivative Asset | 0 | 0 |
Derivatives: [Abstract] | ||
Derivative Liability | 0 | 0 |
Embedded Derivative Financial Instruments [Member] | Level 2 | ||
Derivatives: | ||
Derivative Asset | 23 | 155 |
Derivatives: [Abstract] | ||
Derivative Liability | 39 | 55 |
Embedded Derivative Financial Instruments [Member] | Level 3 | ||
Derivatives: | ||
Derivative Asset | 0 | 0 |
Derivatives: [Abstract] | ||
Derivative Liability | 0 | 0 |
Embedded Derivative Financial Instruments [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Derivatives: | ||
Derivative Asset | 23 | 155 |
Derivatives: [Abstract] | ||
Derivative Liability | 39 | 55 |
Embedded Derivative Financial Instruments [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivatives: | ||
Derivative Asset | 23 | 155 |
Derivatives: [Abstract] | ||
Derivative Liability | 39 | 55 |
Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 9 | 2 |
Derivatives: | ||
Derivative Asset | 0 | 11 |
Derivatives: [Abstract] | ||
Derivative Liability | 9 | 1 |
Commodity Contract [Member] | Level 1 | ||
Derivatives: | ||
Derivative Asset | 9 | |
Derivatives: [Abstract] | ||
Derivative Liability | 7 | |
Commodity Contract [Member] | Level 2 | ||
Derivatives: | ||
Derivative Asset | 2 | |
Derivatives: [Abstract] | ||
Derivative Liability | 2 | |
Commodity Contract [Member] | Level 3 | ||
Derivatives: | ||
Derivative Asset | 0 | |
Derivatives: [Abstract] | ||
Derivative Liability | 0 | |
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Derivatives: | ||
Derivative Asset | 11 | |
Derivatives: [Abstract] | ||
Derivative Liability | 9 | |
Commodity Contract [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivatives: | ||
Derivative Asset | 11 | |
Derivatives: [Abstract] | ||
Derivative Liability | 9 | |
Forward Contracts [Member] | Level 1 | ||
Derivatives: | ||
Derivative Asset | 0 | |
Derivatives: [Abstract] | ||
Derivative Liability | 1 | |
Forward Contracts [Member] | Level 2 | ||
Derivatives: | ||
Derivative Asset | 1 | |
Derivatives: [Abstract] | ||
Derivative Liability | 1 | |
Forward Contracts [Member] | Level 3 | ||
Derivatives: | ||
Derivative Asset | 0 | |
Derivatives: [Abstract] | ||
Derivative Liability | 0 | |
Forward Contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Derivatives: | ||
Derivative Asset | 1 | |
Derivatives: [Abstract] | ||
Derivative Liability | 2 | |
Forward Contracts [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivatives: | ||
Derivative Asset | 1 | |
Derivatives: [Abstract] | ||
Derivative Liability | 2 | |
Africa and onshore California [Member] | Commodity Contract [Member] | Level 1 | ||
Derivatives: | ||
Derivative Asset | 0 | 0 |
Africa and onshore California [Member] | Commodity Contract [Member] | Level 2 | ||
Derivatives: | ||
Derivative Asset | 73 | 108 |
Africa and onshore California [Member] | Commodity Contract [Member] | Level 3 | ||
Derivatives: | ||
Derivative Asset | 0 | 0 |
Africa and onshore California [Member] | Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Derivatives: | ||
Derivative Asset | 73 | 108 |
Africa and onshore California [Member] | Commodity Contract [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivatives: | ||
Derivative Asset | 73 | 108 |
U.S. core fixed income fund [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 25 | 25 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 55 | 55 |
U.S. core fixed income fund [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 0 | 0 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
U.S. core fixed income fund [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 0 | 0 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
U.S. core fixed income fund [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 0 | 0 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 25 | 25 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 55 | 55 |
U.S. core fixed income fund [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 25 | 25 |
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 55 | 55 |
Money market funds [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 5 | 11 |
Money market funds [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Money market funds [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 5 | 11 |
Money market funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 5 | 11 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 4 | 5 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 0 | 0 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 0 | 0 |
Equity securities | Carrying Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 4 | 5 |
Equity securities | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable Securities | 4 | 5 |
Government bonds | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Government bonds | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 36 | 40 |
Government bonds | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Government bonds | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 36 | 40 |
Government bonds | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 36 | 40 |
Government mortgage-backed securities [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Government mortgage-backed securities [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 38 | 27 |
Government mortgage-backed securities [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 38 | 27 |
Government mortgage-backed securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 38 | 27 |
Corporate bonds [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Corporate bonds [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 28 | 32 |
Corporate bonds [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 28 | 32 |
Corporate bonds [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 28 | 32 |
Asset-backed securities [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Asset-backed securities [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 11 | 15 |
Asset-backed securities [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Asset-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 11 | 15 |
Asset-backed securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 11 | 15 |
Collateralized Mortgage Backed Securities [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 7 | 8 |
Collateralized Mortgage Backed Securities [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Collateralized Mortgage Backed Securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 7 | 8 |
Collateralized Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 7 | 8 |
Municipal bonds [Member] | Level 1 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Municipal bonds [Member] | Level 2 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 1 | 1 |
Municipal bonds [Member] | Level 3 | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 0 | 0 |
Municipal bonds [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 1 | 1 |
Municipal bonds [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets [Abstract] | ||
Trust Assets Fair Value Disclosure | 1 | 1 |
Bank Time Deposits [Member] | Carrying Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Other current assets | 109 | 52 |
Other assets | 126 | 123 |
Derivatives Not Designated as Hedging Instruments | Embedded Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 39 | $ 55 |
FAIR VALUE MEASUREMENT FAIR VAL
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT (Unobservable inputs) (Details) - Gulf of Mexico Contingent Consideration [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | $ 0 | $ (1) | $ 135 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (7) | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 127 | $ 134 | $ 135 | $ 0 |
BUSINESS SEGMENTS INFORMATION_2
BUSINESS SEGMENTS INFORMATION (Product Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product revenue [Line Items] | |||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 |
Treatment and refining charges included in copper concentrates revenues | (535) | (536) | (652) | ||||||||
Royalty Expense | (246) | (181) | (138) | ||||||||
Export Duties Expense | (180) | (115) | (95) | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 18,945 | 15,888 | 14,564 | ||||||||
Copper in concentrate | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 6,180 | 5,604 | 5,048 | ||||||||
Rod, and other refined copper products | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 2,396 | 2,387 | 2,082 | ||||||||
Purchased Copper [Member] | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,053 | 789 | 428 | ||||||||
Copper Cathode | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 4,366 | 3,759 | 3,495 | ||||||||
Gold | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 3,231 | 2,126 | 1,592 | ||||||||
Molybdenum | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,190 | 896 | 659 | ||||||||
Other | |||||||||||
Product revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,490 | 1,159 | 2,145 | ||||||||
Derivatives Not Designated as Hedging Instruments | Sales [Member] | |||||||||||
Product revenue [Line Items] | |||||||||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ (317) | $ 515 | $ 266 |
BUSINESS SEGMENTS INFORMATION_3
BUSINESS SEGMENTS INFORMATION (Long Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | $ 31,093 | $ 26,364 | $ 26,704 |
Indonesia | |||
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | 14,025 | 8,938 | 8,794 |
U.S. | |||
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | 8,208 | 8,312 | 8,282 |
Peru | |||
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | 7,274 | 7,485 | 7,981 |
Chile | |||
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | 1,128 | 1,221 | 1,269 |
Other | |||
Long Lived assets by geographic area of customer [Line Items] | |||
Long-lived assets | $ 458 | $ 408 | $ 378 |
BUSINESS SEGMENTS INFORMATION_4
BUSINESS SEGMENTS INFORMATION (Revenues by Geographic Area of Customer) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 |
U.S. | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 5,790 | 5,344 | 5,896 | ||||||||
Indonesia | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 2,226 | 2,023 | 1,402 | ||||||||
Japan | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 1,946 | 1,882 | 1,350 | ||||||||
Switzerland | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 2,941 | 1,200 | 1,147 | ||||||||
China | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 873 | 1,136 | 1,125 | ||||||||
Spain | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 1,070 | 1,086 | 878 | ||||||||
India | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 389 | 782 | 553 | ||||||||
PHILIPPINES | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 221 | 378 | 261 | ||||||||
Korea | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 269 | 364 | 219 | ||||||||
GERMANY | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 256 | 161 | 162 | ||||||||
FRANCE | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 255 | 122 | 80 | ||||||||
Chile | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 294 | 248 | 250 | ||||||||
BELGIUM | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 278 | 39 | 87 | ||||||||
BERMUDA | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 207 | 226 | 273 | ||||||||
UNITED KINGDOM | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | 296 | 226 | 204 | ||||||||
Other | |||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||
Revenues | $ 1,317 | $ 1,186 | $ 943 |
BUSINESS SEGMENTS INFORMATION_5
BUSINESS SEGMENTS INFORMATION (Customers and Labor Matters) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major Customer and Labor Matters [Line Items] | ||||||||||||
Segment Reporting, Disclosure of Major Customers | 0.12 | .12 | ||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 | |
Affiliated Entity | Noncontrolling Interest Owners Of South America Mining Operations | ||||||||||||
Major Customer and Labor Matters [Line Items] | ||||||||||||
Revenues | 1,200 | 1,100 | 1,000 | $ 1,000 | ||||||||
Affiliated Entity | PT Smelting | ||||||||||||
Major Customer and Labor Matters [Line Items] | ||||||||||||
Revenues | 2,200 | 2,000 | 1,400 | |||||||||
Indonesia | ||||||||||||
Major Customer and Labor Matters [Line Items] | ||||||||||||
Revenues | $ 2,226 | $ 2,023 | $ 1,402 |
BUSINESS SEGMENTS INFORMATION_6
BUSINESS SEGMENTS INFORMATION (Business Segments Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Workforce Subject to Collective Bargaining Arrangements | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 37.00% |
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 21.00% |
North America | Inventory, Copper Metal Production | Product Concentration Risk | Morenci | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 49.00% |
North America | Cost of Goods, Product Line | Supplier Concentration Risk | Atlantic Copper Smelting & Refining | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 14.00% |
South America | Inventory, Copper Metal Production | Product Concentration Risk | Cerro Verde | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 84.00% |
South America | Cost of Goods, Product Line | Supplier Concentration Risk | Atlantic Copper Smelting & Refining | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 5.00% |
Indonesia | Cost of Goods, Product Line | Supplier Concentration Risk | Atlantic Copper Smelting & Refining | |
Mining Segment Reporting Information [Line Items] | |
Concentration risk percentage | 4.00% |
PT Smelting | |
Mining Segment Reporting Information [Line Items] | |
Deferred intercompany profit | 25.00% |
Morenci | |
Mining Segment Reporting Information [Line Items] | |
Ownership percentage | 72.00% |
BUSINESS SEGMENTS INFORMATION_7
BUSINESS SEGMENTS INFORMATION (Segment Reporting) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 | ||
Production and delivery | 11,691 | 10,266 | 10,687 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 1,754 | 1,714 | 2,530 | ||||||||||
Impairment of oil and gas properties | 0 | 0 | 4,317 | ||||||||||
Metals inventory adjustments | 12 | 4 | 8 | 36 | |||||||||
Selling, general and administrative expenses | 443 | 477 | 597 | ||||||||||
Exploration Expense | 105 | 93 | 63 | ||||||||||
Environmental obligations and shutdown costs | 89 | 244 | 14 | ||||||||||
Net gain on sales of assets | (82) | (70) | (45) | (11) | (15) | (33) | (10) | (23) | (208) | (81) | (649) | ||
Change in PT-FI tax rates | 504 | 0 | 0 | ||||||||||
Operating income (loss) | 316 | $ 1,315 | $ 1,664 | $ 1,459 | 1,479 | $ 928 | $ 686 | $ 597 | 4,754 | 3,690 | (2,729) | ||
Interest expense, net | 945 | 801 | 755 | ||||||||||
Provision for (benefit from) income taxes | (991) | (883) | (371) | ||||||||||
Total assets | 42,216 | 37,302 | 42,216 | 37,302 | 37,317 | $ 42,216 | |||||||
Payments to Acquire Productive Assets | 1,971 | 1,410 | 2,813 | ||||||||||
Grasberg Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Payments to Acquire Productive Assets | 1,001 | 875 | 1,025 | ||||||||||
Molybdenum | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Payments to Acquire Productive Assets | 9 | 5 | 2 | ||||||||||
South America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Payments to Acquire Productive Assets | 237 | 115 | 382 | ||||||||||
North America copper mines | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Payments to Acquire Productive Assets | 601 | 167 | 102 | ||||||||||
Indonesia | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,226 | 2,023 | 1,402 | ||||||||||
Production and delivery | 62 | ||||||||||||
Operating Segments | Molybdenum | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Production and delivery | 289 | 227 | 212 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 79 | 76 | 68 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 42 | (35) | (94) | ||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||||
Total assets | 1,796 | 1,858 | 1,796 | 1,858 | 1,934 | 1,796 | |||||||
Payments to Acquire Productive Assets | 9 | 5 | 2 | ||||||||||
Operating Segments | Rod & Refining | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 5,103 | 4,456 | 3,833 | ||||||||||
Production and delivery | 5,117 | 4,467 | 3,833 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 11 | 10 | 10 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 6 | 5 | 19 | ||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||||
Total assets | 233 | 277 | 233 | 277 | 220 | 233 | |||||||
Payments to Acquire Productive Assets | 5 | 4 | 1 | ||||||||||
Operating Segments | Atlantic Copper Smelting & Refining | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,299 | 2,031 | 1,825 | ||||||||||
Production and delivery | 2,218 | 1,966 | 1,712 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 27 | 28 | 29 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 21 | 18 | 17 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 36 | 20 | 72 | ||||||||||
Interest expense, net | 25 | 18 | 15 | ||||||||||
Provision for (benefit from) income taxes | (1) | (5) | (9) | ||||||||||
Total assets | 773 | 822 | 773 | 822 | 658 | 773 | |||||||
Payments to Acquire Productive Assets | 16 | 41 | 17 | ||||||||||
Operating Segments | North America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 144 | 408 | 684 | ||||||||||
Production and delivery | 3,128 | 2,745 | 2,914 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 360 | 425 | 530 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 6 | 4 | 5 | ||||||||||
Exploration Expense | 3 | 2 | 3 | ||||||||||
Environmental obligations and shutdown costs | 2 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | (576) | ||||||||||
Operating income (loss) | 1,195 | 1,389 | 1,498 | ||||||||||
Interest expense, net | 4 | 4 | 4 | ||||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||||
Total assets | 7,530 | 7,102 | 7,530 | 7,102 | 7,311 | 7,530 | |||||||
Payments to Acquire Productive Assets | 601 | 167 | 102 | ||||||||||
Operating Segments | North America | Morenci | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 90 | 228 | 444 | ||||||||||
Production and delivery | 1,183 | 1,043 | 1,162 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 176 | 178 | 217 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 3 | 2 | 2 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | (576) | ||||||||||
Operating income (loss) | 779 | 870 | 1,150 | ||||||||||
Interest expense, net | 3 | 3 | 3 | ||||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||||
Total assets | 2,922 | 2,861 | 2,922 | 2,861 | 2,863 | 2,922 | |||||||
Payments to Acquire Productive Assets | 216 | 114 | 77 | ||||||||||
Operating Segments | North America | Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 54 | 180 | 240 | ||||||||||
Production and delivery | 1,945 | 1,702 | 1,752 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 184 | 247 | 313 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 3 | 2 | 3 | ||||||||||
Exploration Expense | 3 | 2 | 3 | ||||||||||
Environmental obligations and shutdown costs | 2 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 416 | 519 | 348 | ||||||||||
Interest expense, net | 1 | 1 | 1 | ||||||||||
Provision for (benefit from) income taxes | 0 | 0 | 0 | ||||||||||
Total assets | 4,608 | 4,241 | 4,608 | 4,241 | 4,448 | 4,608 | |||||||
Payments to Acquire Productive Assets | 385 | 53 | 25 | ||||||||||
Operating Segments | South America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 3,303 | 3,309 | 2,751 | ||||||||||
Production and delivery | 2,365 | 2,244 | 1,758 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 546 | 525 | 553 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 9 | 9 | 9 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 735 | 916 | 618 | ||||||||||
Interest expense, net | 429 | 212 | 82 | ||||||||||
Provision for (benefit from) income taxes | (268) | (446) | (216) | ||||||||||
Total assets | 10,231 | 10,580 | 10,231 | 10,580 | 10,609 | 10,231 | |||||||
Payments to Acquire Productive Assets | 237 | 115 | 382 | ||||||||||
Operating Segments | South America | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,709 | 2,811 | 2,241 | ||||||||||
Production and delivery | 1,887 | 1,878 | 1,351 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 456 | 441 | 443 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 9 | 9 | 8 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 709 | 868 | 626 | ||||||||||
Interest expense, net | 429 | 212 | 82 | ||||||||||
Provision for (benefit from) income taxes | (253) | (436) | (222) | ||||||||||
Total assets | 8,524 | 8,878 | 8,524 | 8,878 | 9,076 | 8,524 | |||||||
Payments to Acquire Productive Assets | 220 | 103 | 380 | ||||||||||
Operating Segments | South America | Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 594 | 498 | 510 | ||||||||||
Production and delivery | 478 | 366 | 407 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 90 | 84 | 110 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 0 | 0 | 1 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 26 | 48 | (8) | ||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||
Provision for (benefit from) income taxes | (15) | (10) | 6 | ||||||||||
Total assets | 1,707 | 1,702 | 1,707 | 1,702 | 1,533 | 1,707 | |||||||
Payments to Acquire Productive Assets | 17 | 12 | 2 | ||||||||||
Operating Segments | Indonesia | Grasberg Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 5,446 | 4,445 | 3,233 | ||||||||||
Production and delivery | 1,864 | 1,735 | 1,775 | ||||||||||
Cost, Depreciation, Amortization and Depletion | 606 | 556 | 384 | ||||||||||
Impairment of oil and gas properties | 0 | ||||||||||||
Selling, general and administrative expenses | 123 | 126 | 88 | ||||||||||
Exploration Expense | 0 | 0 | 0 | ||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Adjustment to Historical Tax Positions | 20 | ||||||||||||
Operating income (loss) | 2,966 | 2,028 | 1,048 | ||||||||||
Interest expense, net | 1 | 4 | 0 | ||||||||||
Provision for (benefit from) income taxes | (755) | (869) | (442) | ||||||||||
Total assets | 15,646 | 10,911 | 15,646 | 10,911 | 10,493 | 15,646 | |||||||
Payments to Acquire Productive Assets | 1,001 | 875 | 1,025 | ||||||||||
Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,333 | 1,754 | 2,504 | ||||||||||
Production and delivery | (3,290) | (3,118) | (1,517) | ||||||||||
Cost, Depreciation, Amortization and Depletion | 125 | 94 | 956 | ||||||||||
Impairment of oil and gas properties | 4,317 | ||||||||||||
Selling, general and administrative expenses | 284 | 320 | 478 | ||||||||||
Exploration Expense | 102 | 91 | 60 | ||||||||||
Environmental obligations and shutdown costs | 87 | 244 | 14 | ||||||||||
Net gain on sales of assets | (208) | (81) | (73) | ||||||||||
Operating income (loss) | (226) | (633) | (5,890) | ||||||||||
Interest expense, net | 486 | 563 | 654 | ||||||||||
Provision for (benefit from) income taxes | 33 | 437 | 296 | ||||||||||
Total assets | 6,007 | $ 5,752 | 6,007 | 5,752 | 6,092 | 6,007 | |||||||
Payments to Acquire Productive Assets | 102 | 203 | 1,284 | ||||||||||
Corporate And Eliminations [Member] | United States oil and gas operations | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Gain (loss) on energy contracts | 35 | ||||||||||||
Oil and Gas drillship settlements, idle rig credits (costs) and inventory adjustments | 1,000 | ||||||||||||
Restructuring charges | (85) | ||||||||||||
Capital expenditures | 1,200 | ||||||||||||
Other Mining & Eliminations | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Capital expenditures | 73 | ||||||||||||
Intersegment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Intersegment | Molybdenum | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 410 | 268 | 186 | ||||||||||
Intersegment | Rod & Refining | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 31 | 26 | 29 | ||||||||||
Intersegment | Atlantic Copper Smelting & Refining | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 3 | 1 | 5 | ||||||||||
Intersegment | Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | (5,459) | (4,837) | (4,159) | ||||||||||
Intersegment | North America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 4,550 | 4,157 | 3,690 | ||||||||||
Intersegment | North America | Morenci | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,051 | 1,865 | 1,511 | ||||||||||
Intersegment | North America | Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 2,499 | 2,292 | 2,179 | ||||||||||
Intersegment | South America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 352 | 385 | 187 | ||||||||||
Intersegment | South America | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 352 | 385 | 187 | ||||||||||
Intersegment | South America | Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Intersegment | Indonesia | Grasberg Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 113 | 0 | 62 | ||||||||||
One-time Termination Benefits | Grasberg Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | (125) | ||||||||||||
One-time Termination Benefits | Operating Segments | Indonesia | Grasberg Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | 120 | ||||||||||||
Selling, general and administrative expenses | 5 | ||||||||||||
Royalty Assessments | Operating Segments | South America | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | 203 | ||||||||||||
Interest expense, net | 145 | ||||||||||||
Cerro Verde Royalty Dispute | Operating Segments | South America | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | 14 | ||||||||||||
Interest expense, net | 370 | ||||||||||||
Cerro Verde Royalty Dispute | Royalty Assessments | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | 14 | 203 | 217 | ||||||||||
Interest expense, net | 370 | 145 | 515 | ||||||||||
Provision for (benefit from) income taxes | 35 | (7) | 28 | ||||||||||
Kisanfu Exploration Project | Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net gain on sales of assets | (13) | ||||||||||||
Deepwater Gulf of Mexico and Onshore California Oil And Gas Properties [Member] | Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net gain on sales of assets | (49) | ||||||||||||
Onshore California | Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net gain on sales of assets | (31) | ||||||||||||
Freeport Cobalt | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | 50 | ||||||||||||
Total assets | 494 | 494 | $ 494 | ||||||||||
Freeport Cobalt | Corporate And Eliminations [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net gain on sales of assets | (97) | ||||||||||||
Depreciation Expense on Reclassified Assets | $ 48 | 31 | |||||||||||
Cerro Verde Collective Labor Agreement [Member] | Operating Segments | South America | Cerro Verde | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | $ (69) | (69) | |||||||||||
Minimum Tax Credit Carryforwards [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Foreign Income Tax Expense (Benefit), Continuing Operations | 47 | ||||||||||||
Federal Income Tax Expense (Benefit), Continuing Operations | 76 | 438 | |||||||||||
Tax Authority, In Papau, Indonesia | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Change in PT-FI tax rates | $ 504 | ||||||||||||
Accounting Standards Update 2017-05 [Member] | Restatement Adjustment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Production and delivery | (42) | (46) | |||||||||||
Selling, general and administrative expenses | (7) | (10) | |||||||||||
Exploration Expense | (1) | (1) | |||||||||||
Environmental obligations and shutdown costs | (7) | (6) | |||||||||||
Operating income (loss) | $ 57 | $ 63 |
GUARANTOR FINANCIAL STATEMENT_3
GUARANTOR FINANCIAL STATEMENTS (Details) | Dec. 31, 2017 |
FM O&G LLC Guarantor | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of subsidiary | 100.00% |
GUARANTOR FINANCIAL STATEMENT_4
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Assets, Current | $ 10,720 | $ 10,626 | ||
Property, plant, equipment and mine development costs, net | 28,010 | 22,994 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 3,486 | 3,682 | ||
Total assets | 42,216 | 37,302 | $ 37,317 | |
LIABILITIES AND EQUITY | ||||
Liabilities, Current | 3,329 | 4,914 | ||
Long-term debt, less current portion | 11,124 | 11,815 | ||
Deferred income taxes | 4,032 | 3,663 | ||
Environmental and asset retirement obligations, less current portion | 3,609 | 3,602 | ||
Investments in consolidated subsidiary | 0 | 0 | ||
Other Liabilities, Noncurrent | 2,230 | 2,012 | ||
Total liabilities | 24,324 | 26,006 | ||
Equity: | ||||
Stockholders’ equity | 9,798 | 7,977 | ||
Noncontrolling interests | 8,094 | 3,319 | ||
Total equity | 17,892 | 11,296 | $ 9,257 | $ 12,044 |
Total liabilities and equity | 42,216 | 37,302 | ||
Eliminations | ||||
ASSETS | ||||
Assets, Current | (585) | (790) | ||
Property, plant, equipment and mine development costs, net | 0 | (10) | ||
Investments in consolidated subsidiaries | (19,064) | (19,570) | ||
Other assets | (635) | (491) | ||
Total assets | (20,284) | (20,861) | ||
LIABILITIES AND EQUITY | ||||
Liabilities, Current | (617) | (938) | ||
Long-term debt, less current portion | (11,103) | (10,270) | ||
Deferred income taxes | 0 | 0 | ||
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||
Investments in consolidated subsidiary | (11,091) | (11,250) | ||
Other Liabilities, Noncurrent | (3,486) | (3,488) | ||
Total liabilities | (26,297) | (25,946) | ||
Equity: | ||||
Stockholders’ equity | 601 | 4,480 | ||
Noncontrolling interests | 5,412 | 605 | ||
Total equity | 6,013 | 5,085 | ||
Total liabilities and equity | (20,284) | (20,861) | ||
FCX Issuer | Reportable Legal Entities | ||||
ASSETS | ||||
Assets, Current | 309 | 75 | ||
Property, plant, equipment and mine development costs, net | 19 | 14 | ||
Investments in consolidated subsidiaries | 19,064 | 19,570 | ||
Other assets | 880 | 943 | ||
Total assets | 20,272 | 20,602 | ||
LIABILITIES AND EQUITY | ||||
Liabilities, Current | 245 | 1,683 | ||
Long-term debt, less current portion | 9,594 | 10,021 | ||
Deferred income taxes | 524 | 748 | ||
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||
Investments in consolidated subsidiary | 0 | 0 | ||
Other Liabilities, Noncurrent | 111 | 173 | ||
Total liabilities | 10,474 | 12,625 | ||
Equity: | ||||
Stockholders’ equity | 9,798 | 7,977 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 9,798 | 7,977 | ||
Total liabilities and equity | 20,272 | 20,602 | ||
FM O&G LLC Guarantor | Reportable Legal Entities | ||||
ASSETS | ||||
Assets, Current | 620 | 671 | ||
Property, plant, equipment and mine development costs, net | 7 | 11 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 23 | 48 | ||
Total assets | 650 | 730 | ||
LIABILITIES AND EQUITY | ||||
Liabilities, Current | 34 | 220 | ||
Long-term debt, less current portion | 6,984 | 6,512 | ||
Deferred income taxes | 0 | 0 | ||
Environmental and asset retirement obligations, less current portion | 227 | 201 | ||
Investments in consolidated subsidiary | 578 | 853 | ||
Other Liabilities, Noncurrent | 3,340 | 3,340 | ||
Total liabilities | 11,163 | 11,126 | ||
Equity: | ||||
Stockholders’ equity | (10,513) | (10,396) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (10,513) | (10,396) | ||
Total liabilities and equity | 650 | 730 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
ASSETS | ||||
Assets, Current | 10,376 | 10,670 | ||
Property, plant, equipment and mine development costs, net | 27,984 | 22,979 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 3,218 | 3,182 | ||
Total assets | 41,578 | 36,831 | ||
LIABILITIES AND EQUITY | ||||
Liabilities, Current | 3,667 | 3,949 | ||
Long-term debt, less current portion | 5,649 | 5,552 | ||
Deferred income taxes | 3,508 | 2,915 | ||
Environmental and asset retirement obligations, less current portion | 3,382 | 3,401 | ||
Investments in consolidated subsidiary | 10,513 | 10,397 | ||
Other Liabilities, Noncurrent | 2,265 | 1,987 | ||
Total liabilities | 28,984 | 28,201 | ||
Equity: | ||||
Stockholders’ equity | 9,912 | 5,916 | ||
Noncontrolling interests | 2,682 | 2,714 | ||
Total equity | 12,594 | 8,630 | ||
Total liabilities and equity | $ 41,578 | $ 36,831 |
GUARANTOR FINANCIAL STATEMENT_5
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidating Comprehensive (Loss) Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 |
Costs and Expenses | 13,874 | 12,713 | 17,559 | ||||||||
Operating income (loss) | 316 | 1,315 | 1,664 | 1,459 | 1,479 | 928 | 686 | 597 | 4,754 | 3,690 | (2,729) |
Interest expense, net | (945) | (801) | (755) | ||||||||
Other income (expense), net | 76 | (8) | (14) | ||||||||
Net gain on early extinguishment and exchanges of debt | 7 | 21 | 26 | ||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 76 | (8) | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,892 | 2,902 | (3,472) | ||||||||
Benefit from (provision for) income taxes | (991) | (883) | (371) | ||||||||
Equity in affiliated companies’ net earnings (losses) | 8 | 10 | 11 | ||||||||
Net income (loss) from continuing operations | 374 | 668 | 1,039 | 828 | 1,193 | 242 | 326 | 268 | 2,909 | 2,029 | (3,832) |
Net (loss) income from discontinued operations | 4 | (4) | (4) | (11) | 16 | 3 | 9 | 38 | (15) | 66 | (193) |
Net income (loss) | 378 | 664 | 1,035 | 817 | 1,209 | 245 | 335 | 306 | 2,894 | 2,095 | (4,025) |
Net income from continuing operations attributable to noncontrolling interests | (66) | ||||||||||
Net income (loss) attributable to noncontrolling interests: Discontinued Operations | 0 | 0 | 1 | 3 | 0 | 4 | 63 | ||||
Net (loss) income attributable to common stockholders | $ 485 | $ 556 | $ 869 | $ 692 | $ 1,041 | $ 280 | $ 268 | $ 228 | 2,602 | 1,817 | (4,154) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | ||||||||
Total comprehensive income (loss) attributable to common stockholders | 2,569 | 1,878 | (4,199) | ||||||||
Eliminations | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses | (10) | 10 | 10 | ||||||||
Operating income (loss) | 10 | (10) | (10) | ||||||||
Interest expense, net | 478 | 348 | 333 | ||||||||
Other income (expense), net | (292) | ||||||||||
Net gain on early extinguishment and exchanges of debt | 0 | 0 | 0 | ||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | (478) | (348) | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 10 | (10) | 31 | ||||||||
Benefit from (provision for) income taxes | (2) | 3 | (12) | ||||||||
Equity in affiliated companies’ net earnings (losses) | (2,493) | (1,408) | 9,511 | ||||||||
Net income (loss) from continuing operations | (2,485) | (1,415) | 9,530 | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | (39) | ||||||||
Net income (loss) | (2,485) | (1,415) | 9,491 | ||||||||
Net income from continuing operations attributable to noncontrolling interests | (66) | ||||||||||
Net income (loss) attributable to noncontrolling interests: Discontinued Operations | 0 | 0 | |||||||||
Net (loss) income attributable to common stockholders | (2,709) | (1,539) | 9,425 | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 33 | (61) | 45 | ||||||||
Total comprehensive income (loss) attributable to common stockholders | (2,676) | (1,600) | 9,470 | ||||||||
FCX Issuer | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Net gain on early extinguishment and exchanges of debt | 22 | ||||||||||
FCX Issuer | Reportable Legal Entities | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses | 28 | 39 | 72 | ||||||||
Operating income (loss) | (28) | (39) | (72) | ||||||||
Interest expense, net | (388) | (467) | (534) | ||||||||
Other income (expense), net | 268 | ||||||||||
Net gain on early extinguishment and exchanges of debt | 7 | 26 | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 477 | 336 | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 68 | (148) | (312) | ||||||||
Benefit from (provision for) income taxes | (176) | 220 | (2,233) | ||||||||
Equity in affiliated companies’ net earnings (losses) | 2,710 | 1,745 | (1,609) | ||||||||
Net income (loss) from continuing operations | 2,602 | 1,817 | (4,154) | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | 2,602 | 1,817 | (4,154) | ||||||||
Net income from continuing operations attributable to noncontrolling interests | 0 | ||||||||||
Net income (loss) attributable to noncontrolling interests: Discontinued Operations | 0 | 0 | |||||||||
Net (loss) income attributable to common stockholders | 2,602 | 1,817 | (4,154) | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | ||||||||
Total comprehensive income (loss) attributable to common stockholders | 2,569 | 1,878 | (4,199) | ||||||||
FM O&G LLC Guarantor | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Impairment of oil and gas properties | 1,500 | ||||||||||
FM O&G LLC Guarantor | Reportable Legal Entities | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Revenues | 59 | 52 | 379 | ||||||||
Costs and Expenses | 58 | 78 | 3,074 | ||||||||
Operating income (loss) | 1 | (26) | (2,695) | ||||||||
Interest expense, net | (301) | (227) | (56) | ||||||||
Other income (expense), net | 0 | ||||||||||
Net gain on early extinguishment and exchanges of debt | 2 | 5 | 0 | ||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 0 | 0 | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (298) | (248) | (2,751) | ||||||||
Benefit from (provision for) income taxes | 61 | (108) | 1,053 | ||||||||
Equity in affiliated companies’ net earnings (losses) | 10 | 10 | (3,101) | ||||||||
Net income (loss) from continuing operations | (227) | (346) | (4,799) | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (227) | (346) | (4,799) | ||||||||
Net income from continuing operations attributable to noncontrolling interests | 0 | ||||||||||
Net income (loss) attributable to noncontrolling interests: Discontinued Operations | 0 | 0 | |||||||||
Net (loss) income attributable to common stockholders | (227) | (346) | (4,799) | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 | ||||||||
Total comprehensive income (loss) attributable to common stockholders | (227) | (346) | (4,799) | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Impairment of oil and gas properties | 2,800 | ||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | |||||||||||
Revenues | 18,569 | 16,351 | 14,451 | ||||||||
Costs and Expenses | 13,798 | 12,586 | 14,403 | ||||||||
Operating income (loss) | 4,771 | 3,765 | 48 | ||||||||
Interest expense, net | (734) | (455) | (498) | ||||||||
Other income (expense), net | 10 | ||||||||||
Net gain on early extinguishment and exchanges of debt | (2) | (6) | 0 | ||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 77 | 4 | |||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 4,112 | 3,308 | (440) | ||||||||
Benefit from (provision for) income taxes | (874) | (998) | 821 | ||||||||
Equity in affiliated companies’ net earnings (losses) | (219) | (337) | (4,790) | ||||||||
Net income (loss) from continuing operations | 3,019 | 1,973 | (4,409) | ||||||||
Net (loss) income from discontinued operations | (15) | 66 | (154) | ||||||||
Net income (loss) | 3,004 | 2,039 | (4,563) | ||||||||
Net income from continuing operations attributable to noncontrolling interests | 0 | ||||||||||
Net income (loss) attributable to noncontrolling interests: Discontinued Operations | 4 | 63 | |||||||||
Net (loss) income attributable to common stockholders | 2,936 | 1,885 | (4,626) | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | ||||||||
Total comprehensive income (loss) attributable to common stockholders | $ 2,903 | $ 1,946 | $ (4,671) |
GUARANTOR FINANCIAL STATEMENT_6
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidated Cash Flow Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements [Line Items] | ||||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,455 | 4,710 | 4,455 | 4,710 | 4,420 | $ 341 | ||||||
Cash flow from operating activities: | ||||||||||||
Net income (loss) | 378 | 664 | 1,035 | 817 | 1,209 | 245 | 335 | 306 | 2,894 | 2,095 | (4,025) | |
Costs and Expenses | 13,874 | 12,713 | 17,559 | |||||||||
Operating income (loss) | 316 | 1,315 | 1,664 | 1,459 | 1,479 | 928 | 686 | 597 | 4,754 | 3,690 | (2,729) | |
Interest expense, net | (945) | (801) | (755) | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 76 | (8) | ||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,892 | 2,902 | (3,472) | |||||||||
Provision for (benefit from) income taxes | 991 | 883 | 371 | |||||||||
Net income (loss) from continuing operations | 374 | 668 | 1,039 | 828 | 1,193 | 242 | 326 | 268 | 2,909 | 2,029 | (3,832) | |
Net (loss) income from discontinued operations | 4 | (4) | (4) | (11) | 16 | 3 | 9 | 38 | (15) | 66 | (193) | |
Net income from continuing operations attributable to noncontrolling interests | (292) | (274) | (227) | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 1 | 3 | 0 | 4 | 63 | |||||
Net (loss) income attributable to common stockholders | 485 | $ 556 | $ 869 | $ 692 | 1,041 | $ 280 | $ 268 | $ 228 | 2,602 | 1,817 | (4,154) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | |||||||||
Total comprehensive income (loss) attributable to common stockholders | 2,569 | 1,878 | (4,199) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation, depletion and amortization | 1,754 | 1,714 | 2,610 | |||||||||
Impairment of Oil and Gas Properties | 0 | 0 | 4,317 | |||||||||
Net gain on sales of assets | (208) | (81) | (649) | |||||||||
Equity in affiliated companies’ net earnings | 8 | 10 | 11 | |||||||||
Net cash (used in) provided by operating activities | 3,863 | 4,666 | 3,737 | |||||||||
Cash flow from investing activities: | ||||||||||||
Capital expenditures | (1,971) | (1,410) | (2,813) | |||||||||
Acquisition of PT Rio Tinto Indonesia | (3,500) | 0 | 0 | |||||||||
Intercompany loans | 0 | 0 | 0 | |||||||||
Dividends from (investments in) consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Other, net | 453 | |||||||||||
Other, net | (89) | 6,366 | ||||||||||
Net cash provided by (used in) investing activities | (5,018) | (1,321) | 3,553 | |||||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from debt | 632 | 955 | 3,681 | |||||||||
Repayments of debt | (2,717) | (3,812) | (7,625) | |||||||||
Intercompany loans | 0 | 0 | 0 | |||||||||
Proceeds from sale of common stock | 0 | 0 | 1,515 | |||||||||
Proceeds from sale of PT Freeport Indonesia shares of Equity | 3,500 | 0 | 0 | |||||||||
Cash dividends paid and distributions received, net | (496) | (176) | (699) | |||||||||
Other, net | (19) | (22) | (38) | |||||||||
Net cash provided by (used in) financing activities | 900 | (3,055) | (3,166) | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (255) | 290 | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 4,124 | |||||||||||
Increase in cash and cash equivalents in assets held for sale | 0 | 0 | (45) | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year | 4,217 | 4,526 | 4,217 | 4,526 | ||||||||
Reportable Legal Entities | FCX Issuer | ||||||||||||
Condensed Cash Flow Statements [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Cash flow from operating activities: | ||||||||||||
Net income (loss) | 2,602 | 1,817 | (4,154) | |||||||||
Costs and Expenses | 28 | 39 | 72 | |||||||||
Operating income (loss) | (28) | (39) | (72) | |||||||||
Interest expense, net | (388) | (467) | (534) | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 477 | 336 | ||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 68 | (148) | (312) | |||||||||
Provision for (benefit from) income taxes | 176 | (220) | 2,233 | |||||||||
Net income (loss) from continuing operations | 2,602 | 1,817 | (4,154) | |||||||||
Net (loss) income from discontinued operations | 0 | 0 | 0 | |||||||||
Net income from continuing operations attributable to noncontrolling interests | 0 | 0 | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||||||||
Net (loss) income attributable to common stockholders | 2,602 | 1,817 | (4,154) | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | |||||||||
Total comprehensive income (loss) attributable to common stockholders | 2,569 | 1,878 | (4,199) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in affiliated companies’ net earnings | 2,710 | 1,745 | (1,609) | |||||||||
Net cash (used in) provided by operating activities | (40) | (156) | (137) | |||||||||
Cash flow from investing activities: | ||||||||||||
Capital expenditures | (2) | 0 | 0 | |||||||||
Acquisition of PT Rio Tinto Indonesia | 0 | |||||||||||
Intercompany loans | (832) | (777) | 481 | |||||||||
Dividends from (investments in) consolidated subsidiaries | 2,475 | 3,226 | 1,469 | |||||||||
Other, net | 460 | |||||||||||
Other, net | 0 | 2 | ||||||||||
Net cash provided by (used in) investing activities | 2,101 | 2,449 | 1,952 | |||||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from debt | 0 | 0 | 1,721 | |||||||||
Repayments of debt | (1,826) | (2,281) | (5,011) | |||||||||
Intercompany loans | 0 | 0 | 0 | |||||||||
Proceeds from sale of common stock | 1,515 | |||||||||||
Proceeds from sale of PT Freeport Indonesia shares of Equity | 0 | |||||||||||
Cash dividends paid and distributions received, net | (217) | (2) | (6) | |||||||||
Other, net | (18) | (10) | (34) | |||||||||
Net cash provided by (used in) financing activities | (2,061) | (2,293) | (1,815) | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | |||||||||||
Increase in cash and cash equivalents in assets held for sale | 0 | |||||||||||
Reportable Legal Entities | FM O&G LLC Guarantor | ||||||||||||
Condensed Cash Flow Statements [Line Items] | ||||||||||||
Revenues | 59 | 52 | 379 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 8 | 0 | 8 | 10 | 0 | ||||||
Cash flow from operating activities: | ||||||||||||
Net income (loss) | (227) | (346) | (4,799) | |||||||||
Costs and Expenses | 58 | 78 | 3,074 | |||||||||
Operating income (loss) | 1 | (26) | (2,695) | |||||||||
Interest expense, net | (301) | (227) | (56) | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 0 | 0 | ||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (298) | (248) | (2,751) | |||||||||
Provision for (benefit from) income taxes | (61) | 108 | (1,053) | |||||||||
Net income (loss) from continuing operations | (227) | (346) | (4,799) | |||||||||
Net (loss) income from discontinued operations | 0 | 0 | 0 | |||||||||
Net income from continuing operations attributable to noncontrolling interests | 0 | 0 | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||||||||
Net (loss) income attributable to common stockholders | (227) | (346) | (4,799) | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 0 | 0 | |||||||||
Total comprehensive income (loss) attributable to common stockholders | (227) | (346) | (4,799) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in affiliated companies’ net earnings | 10 | 10 | (3,101) | |||||||||
Net cash (used in) provided by operating activities | (487) | (467) | (263) | |||||||||
Cash flow from investing activities: | ||||||||||||
Capital expenditures | 0 | (25) | (567) | |||||||||
Acquisition of PT Rio Tinto Indonesia | 0 | |||||||||||
Intercompany loans | 0 | 0 | (346) | |||||||||
Dividends from (investments in) consolidated subsidiaries | 0 | (15) | (45) | |||||||||
Other, net | 6 | |||||||||||
Other, net | (57) | 1,673 | ||||||||||
Net cash provided by (used in) investing activities | 6 | 17 | 715 | |||||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from debt | 0 | 0 | 0 | |||||||||
Repayments of debt | (53) | (205) | 0 | |||||||||
Intercompany loans | 526 | 663 | (332) | |||||||||
Proceeds from sale of common stock | 0 | |||||||||||
Proceeds from sale of PT Freeport Indonesia shares of Equity | 0 | |||||||||||
Cash dividends paid and distributions received, net | 0 | 0 | (107) | |||||||||
Other, net | 0 | (10) | (3) | |||||||||
Net cash provided by (used in) financing activities | 473 | 448 | (442) | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (8) | (2) | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 10 | |||||||||||
Increase in cash and cash equivalents in assets held for sale | 0 | |||||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||||||||||
Condensed Cash Flow Statements [Line Items] | ||||||||||||
Revenues | 18,569 | 16,351 | 14,451 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,455 | 4,702 | 4,455 | 4,702 | 4,410 | 341 | ||||||
Cash flow from operating activities: | ||||||||||||
Net income (loss) | 3,004 | 2,039 | (4,563) | |||||||||
Costs and Expenses | 13,798 | 12,586 | 14,403 | |||||||||
Operating income (loss) | 4,771 | 3,765 | 48 | |||||||||
Interest expense, net | (734) | (455) | (498) | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | 77 | 4 | ||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 4,112 | 3,308 | (440) | |||||||||
Provision for (benefit from) income taxes | 874 | 998 | (821) | |||||||||
Net income (loss) from continuing operations | 3,019 | 1,973 | (4,409) | |||||||||
Net (loss) income from discontinued operations | (15) | 66 | (154) | |||||||||
Net income from continuing operations attributable to noncontrolling interests | (68) | (150) | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 4 | 63 | ||||||||||
Net (loss) income attributable to common stockholders | 2,936 | 1,885 | (4,626) | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (33) | 61 | (45) | |||||||||
Total comprehensive income (loss) attributable to common stockholders | 2,903 | 1,946 | (4,671) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in affiliated companies’ net earnings | (219) | (337) | (4,790) | |||||||||
Net cash (used in) provided by operating activities | 4,390 | 5,289 | 4,135 | |||||||||
Cash flow from investing activities: | ||||||||||||
Capital expenditures | (1,969) | (1,385) | (2,248) | |||||||||
Acquisition of PT Rio Tinto Indonesia | (3,500) | |||||||||||
Intercompany loans | 0 | 0 | 0 | |||||||||
Dividends from (investments in) consolidated subsidiaries | 84 | 120 | 176 | |||||||||
Other, net | (13) | |||||||||||
Other, net | (32) | 4,695 | ||||||||||
Net cash provided by (used in) investing activities | (5,398) | (1,233) | 2,623 | |||||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from debt | 632 | 955 | 1,960 | |||||||||
Repayments of debt | (838) | (1,326) | (2,614) | |||||||||
Intercompany loans | 306 | 114 | 197 | |||||||||
Proceeds from sale of common stock | 3,388 | |||||||||||
Proceeds from sale of PT Freeport Indonesia shares of Equity | 3,710 | |||||||||||
Cash dividends paid and distributions received, net | (3,032) | (3,440) | (5,555) | |||||||||
Other, net | (17) | (67) | (20) | |||||||||
Net cash provided by (used in) financing activities | 761 | (3,764) | (2,644) | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (247) | 292 | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 4,114 | |||||||||||
Increase in cash and cash equivalents in assets held for sale | (45) | |||||||||||
Eliminations | ||||||||||||
Condensed Cash Flow Statements [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||||||
Cash flow from operating activities: | ||||||||||||
Net income (loss) | (2,485) | (1,415) | 9,491 | |||||||||
Costs and Expenses | (10) | 10 | 10 | |||||||||
Operating income (loss) | 10 | (10) | (10) | |||||||||
Interest expense, net | 478 | 348 | 333 | |||||||||
Other Operating Income (Expense) Including Gain (Loss) on Early Extinguishment of Debt | (478) | (348) | ||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 10 | (10) | 31 | |||||||||
Provision for (benefit from) income taxes | 2 | (3) | 12 | |||||||||
Net income (loss) from continuing operations | (2,485) | (1,415) | 9,530 | |||||||||
Net (loss) income from discontinued operations | 0 | 0 | (39) | |||||||||
Net income from continuing operations attributable to noncontrolling interests | (224) | (124) | ||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||||||||||
Net (loss) income attributable to common stockholders | (2,709) | (1,539) | 9,425 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 33 | (61) | 45 | |||||||||
Total comprehensive income (loss) attributable to common stockholders | (2,676) | (1,600) | 9,470 | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in affiliated companies’ net earnings | (2,493) | (1,408) | 9,511 | |||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 2 | |||||||||
Cash flow from investing activities: | ||||||||||||
Capital expenditures | 0 | 0 | 2 | |||||||||
Acquisition of PT Rio Tinto Indonesia | 0 | |||||||||||
Intercompany loans | 832 | 777 | (135) | |||||||||
Dividends from (investments in) consolidated subsidiaries | (2,559) | (3,331) | (1,600) | |||||||||
Other, net | 0 | |||||||||||
Other, net | 0 | (4) | ||||||||||
Net cash provided by (used in) investing activities | (1,727) | (2,554) | (1,737) | |||||||||
Cash flow from financing activities: | ||||||||||||
Proceeds from debt | 0 | 0 | 0 | |||||||||
Repayments of debt | 0 | 0 | 0 | |||||||||
Intercompany loans | (832) | (777) | 135 | |||||||||
Proceeds from sale of common stock | (3,388) | |||||||||||
Proceeds from sale of PT Freeport Indonesia shares of Equity | (210) | |||||||||||
Cash dividends paid and distributions received, net | 2,753 | 3,266 | 4,969 | |||||||||
Other, net | 16 | 65 | 19 | |||||||||
Net cash provided by (used in) financing activities | 1,727 | 2,554 | 1,735 | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | |||||||||||
Increase in cash and cash equivalents in assets held for sale | $ 0 | |||||||||||
Freeport-McMoRan Oil & Gas | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Net gain on sales of assets | $ (27) | |||||||||||
Cash flow from investing activities: | ||||||||||||
Proceeds from sales | $ 80 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Quarterly Disclosures) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,684 | $ 4,908 | $ 5,168 | $ 4,868 | $ 5,041 | $ 4,310 | $ 3,711 | $ 3,341 | $ 18,628 | $ 16,403 | $ 14,830 |
Operating income (loss) | 316 | 1,315 | 1,664 | 1,459 | 1,479 | 928 | 686 | 597 | 4,754 | 3,690 | (2,729) |
Net (loss) income from continuing operations | 374 | 668 | 1,039 | 828 | 1,193 | 242 | 326 | 268 | 2,909 | 2,029 | (3,832) |
Net (loss) income from discontinued operations | 4 | (4) | (4) | (11) | 16 | 3 | 9 | 38 | (15) | 66 | (193) |
Net income | 378 | 664 | 1,035 | 817 | 1,209 | 245 | 335 | 306 | 2,894 | 2,095 | (4,025) |
Net loss (income) and preferred dividends attributable to noncontrolling interests | 107 | (108) | (166) | (125) | (168) | 35 | (66) | (75) | (292) | (274) | |
Net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | (1) | (3) | 0 | (4) | (63) | ||||
Net income (loss) attributable to common stockholders | $ 485 | $ 556 | $ 869 | $ 692 | $ 1,041 | $ 280 | $ 268 | $ 228 | $ 2,602 | $ 1,817 | $ (4,154) |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.33 | $ 0.38 | $ 0.60 | $ 0.48 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.13 | $ 1.80 | $ 1.21 | $ (2.96) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Basic | $ 0.33 | $ 0.38 | $ 0.60 | $ 0.47 | $ 0.72 | $ 0.19 | $ 0.18 | $ 0.16 | $ 1.79 | $ 1.25 | $ (3.16) |
Weighted Average Number of Shares Outstanding, Basic | 1,450,000,000 | 1,450,000,000 | 1,449,000,000 | 1,449,000,000 | 1,448,000,000 | 1,448,000,000 | 1,447,000,000 | 1,446,000,000 | 1,449,000,000 | 1,447,000,000 | 1,318,000,000 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.33 | $ 0.38 | $ 0.59 | $ 0.48 | $ 0.70 | $ 0.19 | $ 0.18 | $ 0.13 | $ 1.79 | $ 1.21 | $ (2.96) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | (0.01) | 0.01 | 0 | 0 | 0.03 | (0.01) | 0.04 | (0.20) |
Earnings Per Share, Diluted | $ 0.33 | $ 0.38 | $ 0.59 | $ 0.47 | $ 0.71 | $ 0.19 | $ 0.18 | $ 0.16 | $ 1.78 | $ 1.25 | $ (3.16) |
Weighted Average Number of Shares Outstanding, Diluted | 1,457,000,000 | 1,458,000,000 | 1,458,000,000 | 1,458,000,000 | 1,455,000,000 | 1,454,000,000 | 1,453,000,000 | 1,454,000,000 | 1,458,000,000 | 1,454,000,000 | 1,318,000,000 |
QUARTERLY FINANCIAL INFORMATI_4
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Footnotes) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | $ (11,691) | $ (10,266) | $ (10,687) | ||||||||||
Interest expense, net | (945) | (801) | (755) | ||||||||||
Provision for (benefit from) income taxes | 991 | 883 | 371 | ||||||||||
Net income from continuing operations attributable to noncontrolling interests | (292) | (274) | (227) | ||||||||||
Payroll withholding taxes | $ 72 | 72 | $ 72 | ||||||||||
Metals inventory adjustments | $ 12 | 4 | 8 | 36 | |||||||||
Environmental obligations and shutdown costs | 57 | ||||||||||||
Net gain on sales of assets | 82 | $ 70 | 45 | $ 11 | $ 15 | $ 33 | $ 10 | $ 23 | $ 208 | $ 81 | 649 | ||
Net gains on sales of assets (usd per share) | $ 0.14 | $ 0.06 | |||||||||||
Income Tax Credits and Adjustments, Net of Noncontrolling Interest | $ 574 | ||||||||||||
Income Tax Credits and Adjustments, Net of Noncontrolling Interests, Per Share | $ 0.39 | ||||||||||||
Earnings per share attributable to common stockholders related to Tax Reform (usd per share) | $ 0.30 | ||||||||||||
Change in PT-FI tax rates | $ 504 | $ 0 | 0 | ||||||||||
Tax Cuts and Jobs Act of 2017, provisional income tax expense (benefit) | (123) | (393) | 0 | ||||||||||
Operating income (loss) | 316 | $ 1,315 | $ 1,664 | $ 1,459 | 1,479 | 928 | 686 | 597 | $ 4,754 | 3,690 | (2,729) | ||
Freeport Cobalt | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Continuing operations (in dollars per share) | $ 0.02 | ||||||||||||
Net income from continuing operations attributable to noncontrolling interests | $ (30) | ||||||||||||
Operating income (loss) | 50 | ||||||||||||
PT Freeport Indonesia [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Metals inventory adjustments | 43 | ||||||||||||
Cerro Verde Royalty Dispute | Royalty Assessments | Cerro Verde | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Loss contingency, loss In period, attributable to parent | $ (195) | $ (186) | (381) | ||||||||||
Continuing operations (in dollars per share) | $ (0.13) | $ 0.13 | |||||||||||
Production and delivery | $ (14) | $ (203) | (217) | ||||||||||
Interest expense, net | (370) | (145) | (515) | ||||||||||
Other expense | (22) | 0 | (22) | ||||||||||
Provision for (benefit from) income taxes | (35) | 7 | (28) | ||||||||||
Net income from continuing operations attributable to noncontrolling interests | 176 | $ 169 | $ 345 | ||||||||||
One-time Termination Benefits | Grasberg Segment [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Continuing operations (in dollars per share) | $ 0.04 | ||||||||||||
Net income from continuing operations attributable to noncontrolling interests | $ 66 | ||||||||||||
Operating income (loss) | (125) | ||||||||||||
One-time Termination Benefits | Grasberg Segment [Member] | Operating Income (Loss) | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | 8 | 9 | 87 | 21 | |||||||||
Minimum Tax Credit Carryforwards [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Income Tax Credits and Adjustments | 632 | ||||||||||||
Federal Income Tax Expense (Benefit), Continuing Operations | 76 | $ 438 | |||||||||||
MOEF Framework | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Permit Fees | $ 32 | ||||||||||||
Site Remediation, Reclamation and Closure Costs | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Continuing operations (in dollars per share) | $ 0.04 | $ 0.14 | |||||||||||
Environmental obligations and shutdown costs | $ 157 | $ 64 | $ (30) | $ 19 | $ 210 | ||||||||
Indonesia | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | (62) | ||||||||||||
Operating Segments | South America | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | $ (2,365) | (2,244) | (1,758) | ||||||||||
Interest expense, net | (429) | (212) | (82) | ||||||||||
Provision for (benefit from) income taxes | 268 | 446 | 216 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 735 | 916 | 618 | ||||||||||
Operating Segments | South America | Cerro Verde | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | (1,887) | (1,878) | (1,351) | ||||||||||
Interest expense, net | (429) | (212) | (82) | ||||||||||
Provision for (benefit from) income taxes | 253 | 436 | 222 | ||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 709 | 868 | 626 | ||||||||||
Operating Segments | South America | Cerro Verde Royalty Dispute | Cerro Verde | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | (14) | ||||||||||||
Interest expense, net | (370) | ||||||||||||
Other expense | (22) | ||||||||||||
Operating Segments | Indonesia | Grasberg Segment [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Loss contingency, loss In period, attributable to parent | $ (110) | ||||||||||||
Continuing operations (in dollars per share) | $ 0.08 | ||||||||||||
Production and delivery | $ (1,864) | (1,735) | (1,775) | ||||||||||
Interest expense, net | (1) | (4) | 0 | ||||||||||
Provision for (benefit from) income taxes | 755 | 869 | 442 | ||||||||||
Loss Contingency, Loss in Period | 223 | ||||||||||||
Net gain on sales of assets | 0 | 0 | 0 | ||||||||||
Operating income (loss) | 2,966 | 2,028 | 1,048 | ||||||||||
Operating Segments | Indonesia | One-time Termination Benefits | Grasberg Segment [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | (120) | ||||||||||||
Corporate And Eliminations [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Production and delivery | 3,290 | 3,118 | 1,517 | ||||||||||
Interest expense, net | (486) | (563) | (654) | ||||||||||
Provision for (benefit from) income taxes | (33) | (437) | (296) | ||||||||||
Net gain on sales of assets | 208 | 81 | 73 | ||||||||||
Operating income (loss) | (226) | $ (633) | $ (5,890) | ||||||||||
Corporate And Eliminations [Member] | Freeport Cobalt | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Net gain on sales of assets | 97 | ||||||||||||
Depreciation Expense on Reclassified Assets | $ (48) | (31) | |||||||||||
Tax Authority, In Papau, Indonesia | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Change in PT-FI tax rates | 504 | ||||||||||||
Tax Authority, In Papau, Indonesia | Penalties | PT Freeport Indonesia [Member] | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Loss Contingency, Offer to Other Party | $ 69 | ||||||||||||
Cerro Verde Collective Labor Agreement [Member] | Operating Segments | South America | Cerro Verde | |||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||
Continuing operations (in dollars per share) | $ (0.02) | ||||||||||||
Production and delivery | $ 69 | $ 69 | |||||||||||
Cost of Goods Sold, Excluding Depreciation, Depletion and Amortization, Net of Noncontrolling Interest | $ 22 |
SUPPLEMENTARY MINERAL RESERVE_3
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Details) oz in Millions, lb in Millions | Dec. 31, 2018lboz$ / lb$ / oz |
Copper | |
Estimated Recoverable Proven And Probable Reserves | lb | 124,000 |
Three Year Average Price | 2.65 |
Gold | |
Estimated Recoverable Proven And Probable Reserves | oz | 30.8 |
Long Term Average Price Used To Estimate Recoverable Reserves | $ / oz | 1,000 |
Three Year Average Price | $ / oz | 1,259 |
Molybdenum | |
Estimated Recoverable Proven And Probable Reserves | lb | 3,830 |
Long Term Average Price Used To Estimate Recoverable Reserves | 10 |
Three Year Average Price | 8.85 |
Silver | |
Long Term Average Price Used To Estimate Recoverable Reserves | $ / oz | 15 |
North America [Member] | Copper | |
Long Term Average Price Used To Estimate Recoverable Reserves | 2.50 |
Indonesia | Copper | |
Long Term Average Price Used To Estimate Recoverable Reserves | 2 |
SUPPLEMENTARY MINERAL RESERVE_4
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Recoverable Reserves) (Details) oz in Millions, lb in Millions | Jan. 01, 2023 | Jan. 01, 2019 | Dec. 31, 2018lboz$ / lb$ / oz | Dec. 21, 2018 |
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated recoverable proven and probable copper reserves in leach stockpiles (in pounds) | 2,000 | |||
Estimated recoverable proven and probable copper reserves in mill stockpiles (in pounds) | 600 | |||
Copper | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 124,000 | |||
Copper | Indonesia | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Long Term Average Price Used To Estimate Recoverable Reserves | $ / lb | 2 | |||
Gold (ounces) [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 30.8 | |||
Long Term Average Price Used To Estimate Recoverable Reserves | $ / oz | 1,000 | |||
Molybdenum mines | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 3,830 | |||
Long Term Average Price Used To Estimate Recoverable Reserves | $ / lb | 10 | |||
Silver | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Long Term Average Price Used To Estimate Recoverable Reserves | $ / oz | 15 | |||
Net Equity Interest [Member] | Copper | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 86,800 | |||
Net Equity Interest [Member] | Gold (ounces) [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 17 | |||
Net Equity Interest [Member] | Molybdenum mines | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 3,440 | |||
Net Equity Interest [Member] | Silver | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 269.3 | |||
Consolidated Basis [Member] | Copper | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 119,600 | |||
Consolidated Basis [Member] | Copper | North America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 49,900 | |||
Consolidated Basis [Member] | Copper | South America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 33,500 | |||
Consolidated Basis [Member] | Copper | Indonesia | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 36,200 | |||
Consolidated Basis [Member] | Gold (ounces) [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 30.8 | |||
Consolidated Basis [Member] | Gold (ounces) [Member] | North America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 0.6 | |||
Consolidated Basis [Member] | Gold (ounces) [Member] | South America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 0 | |||
Consolidated Basis [Member] | Gold (ounces) [Member] | Indonesia | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 30.2 | |||
Consolidated Basis [Member] | Molybdenum mines | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 3,780 | |||
Consolidated Basis [Member] | Molybdenum mines | North America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 3,060 | |||
Consolidated Basis [Member] | Molybdenum mines | South America | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 720 | |||
Consolidated Basis [Member] | Molybdenum mines | Indonesia | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 0 | |||
Consolidated Basis [Member] | Silver | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 393.1 | |||
PT Freeport Indonesia [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Ownership percentage of subsidiary | 48.76% | |||
PT Freeport Indonesia [Member] | Rio Tinto Share In Joint Venture | Consolidated Basis [Member] | Copper | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | 13,000 | |||
PT Freeport Indonesia [Member] | Rio Tinto Share In Joint Venture | Consolidated Basis [Member] | Gold (ounces) [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 10.1 | |||
PT Freeport Indonesia [Member] | Rio Tinto Share In Joint Venture | Consolidated Basis [Member] | Silver | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves | oz | 55.7 | |||
PT Freeport Indonesia [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Ownership percentage of subsidiary | 48.76% | |||
Scenario, Forecast [Member] | PT Freeport Indonesia [Member] | ||||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||||
Ownership percentage of subsidiary | 49.00% | 81.00% |
SUPPLEMENTARY MINERAL RESERVE_5
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Ore Reserves) (Details) oz in Millions, lb in Millions, T in Millions | Dec. 31, 2018lbozgT |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 18,828 |
Copper | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 124,000 |
Copper | Consolidated Basis [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 119,600 |
Copper | Net Equity Interest [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 86,800 |
Gold | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 30.8 |
Gold | Consolidated Basis [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 30.8 |
Gold | Net Equity Interest [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 17 |
Molybdenum | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 3,830 |
Molybdenum | Consolidated Basis [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 3,780 |
Molybdenum | Net Equity Interest [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 3,440 |
Morenci | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 4,619 |
Average ore grade of copper per metric ton | 0.24% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.00% |
Morenci | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 15,600 |
Morenci | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Morenci | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 180 |
Bagdad [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 2,426 |
Average ore grade of copper per metric ton | 0.32% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.02% |
Bagdad [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 14,700 |
Bagdad [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0.1 |
Bagdad [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 740 |
Safford [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 839 |
Average ore grade of copper per metric ton | 0.44% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.00% |
Safford [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 6,200 |
Safford [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Safford [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Sierrita [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 3,369 |
Average ore grade of copper per metric ton | 0.23% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.02% |
Sierrita [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 14,000 |
Sierrita [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0.2 |
Sierrita [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 1,420 |
Tyrone [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 55 |
Average ore grade of copper per metric ton | 0.25% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.00% |
Tyrone [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 300 |
Tyrone [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Tyrone [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Chino [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 395 |
Average ore grade of copper per metric ton | 0.46% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0.03 |
Average ore grade of molybdenum per metric ton | 0.01% |
Chino [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 3,400 |
Chino [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0.3 |
Chino [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 10 |
Miami [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 0 |
Average ore grade of copper per metric ton | 0.00% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.00% |
Miami [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 100 |
Miami [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Miami [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Henderson [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 71 |
Average ore grade of copper per metric ton | 0.00% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.17% |
Henderson [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Henderson [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Henderson [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 240 |
Climax [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 168 |
Average ore grade of copper per metric ton | 0.00% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.15% |
Climax [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Climax [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Climax [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 520 |
Cerro Verde | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 4,324 |
Average ore grade of copper per metric ton | 0.35% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.01% |
Cerro Verde | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 29,600 |
Cerro Verde | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
Cerro Verde | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 720 |
El Abra | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 705 |
Average ore grade of copper per metric ton | 0.42% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0 |
Average ore grade of molybdenum per metric ton | 0.00% |
El Abra | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 3,900 |
El Abra | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0 |
El Abra | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Grasberg open pit [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 5 |
Average ore grade of copper per metric ton | 1.26% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 1.98 |
Average ore grade of molybdenum per metric ton | 0.00% |
Grasberg open pit [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 200 |
Grasberg open pit [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0.4 |
Grasberg open pit [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Deep Ore Zone [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 51 |
Average ore grade of copper per metric ton | 0.50% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0.57 |
Average ore grade of molybdenum per metric ton | 0.00% |
Deep Ore Zone [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 500 |
Deep Ore Zone [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 0.8 |
Deep Ore Zone [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Big Gossan [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 57 |
Average ore grade of copper per metric ton | 2.30% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 1.02 |
Average ore grade of molybdenum per metric ton | 0.00% |
Big Gossan [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 2,600 |
Big Gossan [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 1.3 |
Big Gossan [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Grasberg block cave [Member] | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 963 |
Average ore grade of copper per metric ton | 0.96% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0.72 |
Average ore grade of molybdenum per metric ton | 0.00% |
Grasberg block cave [Member] | Copper | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 17,200 |
Grasberg block cave [Member] | Gold | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 14.1 |
Grasberg block cave [Member] | Molybdenum | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Kucing Liar [Member] | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 349 |
Average ore grade of copper per metric ton | 1.24% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 1.03 |
Average ore grade of molybdenum per metric ton | 0.00% |
Kucing Liar [Member] | Copper | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 8,100 |
Kucing Liar [Member] | Gold | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 5.2 |
Kucing Liar [Member] | Molybdenum | Undeveloped [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
Deep Mill Level Zone [Member] | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Amount of ore reserves (in metric tons of ore) | T | 432 |
Average ore grade of copper per metric ton | 0.92% |
Average ore grade of gold per metric ton (in grams per metric ton) | g | 0.76 |
Average ore grade of molybdenum per metric ton | 0.00% |
Deep Mill Level Zone [Member] | Copper | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 7,600 |
Deep Mill Level Zone [Member] | Gold | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | oz | 8.4 |
Deep Mill Level Zone [Member] | Molybdenum | Productive Land [Member] | |
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | |
Estimated Recoverable Proven And Probable Reserves | 0 |
SUPPLEMENTARY OIL AND GAS INF_3
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Costs Incurred) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Property acquisition costs: | |
Unproved properties | $ 7 |
Exploration costs | 22 |
Development costs | 749 |
Total | 778 |
Asset Retirement Obligation, Period Increase (Decrease) | 37 |
United States oil and gas operations | |
Property acquisition costs: | |
General and Administrative Costs Capitalized | 78 |
Capitalized interest | $ 7 |
SUPPLEMENTARY OIL AND GAS INF_4
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Capitalized Costs) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / Boe | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |||
Properties subject to amortization | $ 27,507 | ||
Accumulated amortizationa | (27,433) | ||
Total | 74 | ||
Impairment of Oil and Gas Properties | $ 0 | $ 0 | $ 4,317 |
Average Depletion Depreciation and Amortization Expense Per Unit of Production | $ / Boe | 17.58 |
SUPPLEMENTARY OIL AND GAS INF_5
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Costs Not Subject to Amortization) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |
Reclassification to Well, Facilities, and Equipment Based on Determination of Proved Reserves | $ 4.9 |
Unproved properties [Member] | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |
Proceeds from sales | $ 1.6 |
SUPPLEMENTARY OIL AND GAS INF_6
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Results of Operations for Oil and Gas Producing Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |||
Revenues from oil and gas producing activities | $ 1,513 | ||
Production and delivery costsa | (1,829) | ||
Depreciation, depletion and amortization | (839) | ||
Impairment of Oil and Gas Properties | $ 0 | $ 0 | (4,317) |
Income tax benefit (based on FCX’s U.S. federal statutory tax rate)b | 0 | ||
Results of operations from oil and gas producing activities | (5,472) | ||
Oil and Gas Drillship settlements/Idle rig and Contract termination costs | $ 926 |
SUPPLEMENTARY OIL AND GAS INF_7
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Estimated Quantities of Oil and Natural Gas Reserves) (Details) bbl in Millions, Boe in Millions, ft³ in Billions | 12 Months Ended | |
Dec. 31, 2016Boe$ / bbl$ / Mcfft³bbl | Dec. 31, 2015ft³bbl | |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | ||
Balance at beginning of year (Energy) | Boe | 252 | |
Extensions and discoveries (Energy) | Boe | 0 | |
Acquisitions of reserves in-place (Energy) | Boe | 0 | |
Revisions of previous estimates (Energy) | Boe | 1 | |
Sales of reserves in-place (Energy) | Boe | 187 | |
Production (Energy) | Boe | 48 | |
Balance at end of year (Energy) | Boe | 18 | |
Proved developed reserves (Energy) | Boe | 18 | |
Proved undeveloped reserves (Energy) | Boe | 0 | |
Deepwater Gulf of Mexico, Onshore California and Haynesville Oil And Gas Properties [Member] | ||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | ||
Sales of reserves in-place (Energy) | Boe | 187 | |
Natural Gas Liquids [Member] | ||
Proved reserves: | ||
Balance at beginning of year | 1 | |
Balance at end of year | 1 | |
Oil [Member] | ||
Proved reserves: | ||
Balance at beginning of year | 4 | 207 |
Proved Developed and Undeveloped Reserves, Extensions, Discoveries, and Additions | 0 | |
Proved Developed and Undeveloped Reserves, Purchases of Minerals in Place | 0 | |
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | 1 | |
Sale of reserves in-place | (168) | |
Production | (36) | |
Balance at end of year | 4 | 207 |
Proved developed reserves | 4 | |
Proved undeveloped reserves | 0 | |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | ||
Realized Sales Prices Used in Reserve Reports | $ / bbl | 34.26 | |
Natural Gas [Member] | ||
Proved reserves: | ||
Balance at beginning of year | ft³ | 87 | 274 |
Proved Developed and Undeveloped Reserves, Extensions, Discoveries, and Additions | ft³ | 0 | |
Proved Developed and Undeveloped Reserves, Purchases of Minerals in Place | ft³ | 0 | |
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | ft³ | 0 | |
Sale of reserves in-place | ft³ | (118) | |
Production | ft³ | (69) | |
Balance at end of year | ft³ | 87 | 274 |
Proved developed reserves | ft³ | 87 | |
Proved undeveloped reserves | ft³ | 0 | |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | ||
Realized Sales Prices Used in Reserve Reports | $ / Mcf | 2.40 |
SUPPLEMENTARY OIL AND GAS INF_8
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Standardized Measure of Future Net Cash Flows) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash inflows | $ 345 | |||
Future production expense | (175) | |||
Future development costs | (439) | |||
Future income tax expense | 0 | |||
Future net cash flows | (269) | |||
Discounted at 10% per year | 32 | |||
Standardized Measure | (237) | $ 1,392 | ||
Asset Retirement Obligation | $ 2,547 | $ 2,583 | 2,638 | $ 2,774 |
United States oil and gas operations | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Asset Retirement Obligation | $ 400 |
SUPPLEMENTARY OIL AND GAS INF_9
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Changes in the Standardized Measure) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | |
Balance at beginning of year | $ 1,392 |
Sales, net of production expenses | (831) |
Net changes in sales and transfer prices, net of production expenses | (341) |
Extensions, discoveries and improved recoveries | 0 |
Changes in estimated future development costs, including timing and other | 146 |
Previously estimated development costs incurred during the year | 295 |
Sales of reserves in-place | (1,049) |
Revisions of quantity estimates | 12 |
Accretion of discount | 139 |
Net change in income taxes | 0 |
Total changes | (1,629) |
Balance at end of year | $ (237) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Valuation allowance, increase (decrease) | $ (68) | ||||
Tax Cuts and Jobs Act of 2017, change in deferred tax asset valuation allowance | $ 32 | $ 1,100 | 244 | $ 1,100 | |
Tax Cuts and Jobs Act of 2017, Tax Credit Carryforwards, Alternative Minimum Tax | 371 | ||||
Valuation allowance for deferred tax assets | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Year | 4,575 | 6,058 | $ 4,183 | ||
Other Additions (Deductions) | (345) | (1,484) | 1,852 | ||
Additons Charged to Other Accounts | 8 | 1 | 23 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Period Increase (Decrease) | 269 | ||||
Balance at End of Year | 4,507 | 4,575 | 4,507 | 4,575 | 6,058 |
Reserve for Taxes, Other than Income Taxes [Member] | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Year | 58 | 64 | 83 | ||
Other Additions (Deductions) | 7 | (2) | 13 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (1) | (3) | |||
SEC Schedule, 12-09, Valuation Allowance and Reserves, Deduction, Other | (2) | (4) | (29) | ||
Balance at End of Year | $ 62 | $ 58 | 62 | $ 58 | $ 64 |
Foreign Tax Credits | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Valuation allowance, increase (decrease) | (305) | ||||
Net Operating Losses | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Valuation allowance, increase (decrease) | $ (54) |