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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-K
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(Mark One)
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[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2016
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OR
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Commission File Number: 001-11307-01
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Freeport-McMoRan Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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74-2480931
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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333 North Central Avenue
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Phoenix, Arizona
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85004-2189
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(Address of principal executive offices)
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(Zip Code)
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(602) 366-8100
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(Registrant's telephone number, including area code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $0.10 per share
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New York Stock Exchange
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Portions of our proxy statement for our 2017 annual meeting of stockholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.
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TABLE OF CONTENTS
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Page
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a.
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Effective May 31, 2016, FMC’s undivided interest in Morenci via an unincorporated joint venture was prospectively reduced from 85 percent to 72 percent (refer to Note
2
for further discussion). Additionally, PT-FI has an unincorporated joint venture with Rio Tinto plc (Rio Tinto) related to our Indonesia operations. Refer to Note 3 for further discussion of our ownership in subsidiaries and joint ventures.
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Copper
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Gold
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Molybdenum
|
|
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|||
North America
|
35
|
%
|
|
1
|
%
|
|
78
|
%
|
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South America
|
34
|
|
|
—
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|
22
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|
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Indonesia
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31
|
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|
99
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|
|
—
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|
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100
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%
|
|
100
|
%
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|
100
|
%
|
|
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Copper
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Gold
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|
Molybdenum
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|||
North America
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43
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%
|
|
2
|
%
|
|
74
|
%
|
a
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South America
|
32
|
|
|
—
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|
26
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|
Indonesia
|
25
|
|
|
98
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|
|
—
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100
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%
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|
100
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%
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|
100
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%
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a.
|
Our Henderson and Climax molybdenum mines produced
33 percent
of consolidated molybdenum production, and our North America copper mines produced
41 percent
.
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2016
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|
2015
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|
2014
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|||
Third parties
|
56
|
%
|
|
61
|
%
|
|
36
|
%
|
PT Smelting
|
42
|
|
|
37
|
|
|
58
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|
Atlantic Copper
|
2
|
|
|
2
|
|
|
6
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|
|
100
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%
|
|
100
|
%
|
|
100
|
%
|
Location
|
Number of Unions
|
Number of
Union-
Represented Employees
|
Expiration Date
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PT-FI – Indonesia
|
2
|
9,456
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|
September 2017
|
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|
Cerro Verde – Peru
|
1
|
3,023
|
|
August 2018
|
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|
El Abra – Chile
|
2
|
583
|
|
April 2020
|
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|
Atlantic Copper – Spain
|
2
|
422
|
|
December 2015
|
a
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|
Kokkola - Finland
|
3
|
409
|
|
November 2017
|
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|
Rotterdam – The Netherlands
|
1
|
61
|
|
September 2018
|
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|
Stowmarket – United Kingdom
|
1
|
39
|
|
May 2017
|
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a.
|
The Collective Labor Agreement between Atlantic Copper and its workers' unions expired in December 2015, but has been extended through December 2017 by mutual agreement from both parties in accordance with Spanish law.
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2016
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|
2015
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2014
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Third parties
|
77
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%
|
|
71
|
%
|
|
50
|
%
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|
North America copper mines
|
13
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|
|
23
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|
|
21
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South America mining
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7
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|
3
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|
a
|
21
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Indonesia mining
|
3
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|
3
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|
|
8
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|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
a.
|
Lower purchases from the South America mines primarily reflect the impact of the November 2014 sale of the Candelaria and Ojos del Salado mines.
|
•
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comprehensive job training programs
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•
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basic education programs
|
•
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public health programs, including malaria control and human immunodeficiency virus
|
•
|
agricultural assistance programs
|
•
|
small and medium enterprise development programs
|
•
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cultural promotion and preservation programs
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•
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clean water and sanitation projects
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•
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community infrastructure development
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•
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charitable donations
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Years Ended December 31,
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|||||||||||||||||||
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Production
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Sales
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COPPER
(millions of recoverable pounds)
|
2016
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|
2015
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|
2014
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2016
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2015
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|
2014
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|||||||||
(FCX’s net interest in %)
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North America
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Morenci (72%)
a
|
848
|
|
|
902
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|
691
|
|
|
855
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|
915
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|
|
680
|
|
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|||
Bagdad (100%)
|
177
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|
|
210
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|
237
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|
180
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|
|
222
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|
|
240
|
|
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|||
Safford (100%)
|
230
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|
|
202
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|
|
139
|
|
|
229
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|
|
198
|
|
|
142
|
|
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|||
Sierrita (100%)
|
162
|
|
|
189
|
|
|
195
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|
|
162
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|
|
196
|
|
|
196
|
|
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|||
Miami (100%)
|
25
|
|
|
43
|
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|
57
|
|
|
27
|
|
|
46
|
|
|
60
|
|
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|||
Chino (100%)
|
308
|
|
|
314
|
|
|
250
|
|
|
308
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|
|
319
|
|
|
243
|
|
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|||
Tyrone (100%)
|
76
|
|
|
84
|
|
|
94
|
|
|
75
|
|
|
89
|
|
|
96
|
|
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|||
Other (100%)
|
5
|
|
|
3
|
|
|
7
|
|
|
5
|
|
|
3
|
|
|
7
|
|
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|||
Total North America
|
1,831
|
|
|
1,947
|
|
|
1,670
|
|
|
1,841
|
|
|
1,988
|
|
|
1,664
|
|
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|||
South America
|
|
|
|
|
|
|
|
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Cerro Verde (53.56%)
|
1,108
|
|
|
545
|
|
|
500
|
|
|
1,105
|
|
|
544
|
|
|
501
|
|
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|||
El Abra (51%)
|
220
|
|
|
324
|
|
|
367
|
|
|
227
|
|
|
327
|
|
|
366
|
|
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|||
Candelaria/Ojos del Salado (80%)
b
|
—
|
|
|
—
|
|
|
284
|
|
|
—
|
|
|
—
|
|
|
268
|
|
|
|||
Total South America
|
1,328
|
|
|
869
|
|
|
1,151
|
|
|
1,332
|
|
|
871
|
|
|
1,135
|
|
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|||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
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|||||||||
Grasberg (90.64%)
c
|
1,063
|
|
|
752
|
|
|
636
|
|
|
1,054
|
|
|
744
|
|
|
664
|
|
|
|||
Consolidated - continuing operations
|
4,222
|
|
|
3,568
|
|
|
3,457
|
|
|
4,227
|
|
d
|
3,603
|
|
d
|
3,463
|
|
d
|
|||
Discontinued operations
e
|
425
|
|
|
449
|
|
|
447
|
|
|
424
|
|
|
467
|
|
|
425
|
|
|
|||
Total
|
4,647
|
|
|
4,017
|
|
|
3,904
|
|
|
4,651
|
|
|
4,070
|
|
|
3,888
|
|
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|||
Less noncontrolling interests
|
909
|
|
|
680
|
|
|
725
|
|
|
910
|
|
|
688
|
|
|
715
|
|
|
|||
Net
|
3,738
|
|
|
3,337
|
|
|
3,179
|
|
|
3,741
|
|
|
3,382
|
|
|
3,173
|
|
|
|||
Average realized price per pound (continuing operations)
|
|
|
|
|
|
|
$
|
2.28
|
|
|
$
|
2.42
|
|
|
$
|
3.09
|
|
|
|||
GOLD
(thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
North America (100%)
|
27
|
|
|
25
|
|
|
12
|
|
|
25
|
|
|
23
|
|
|
13
|
|
|
|||
South America (80%)
b
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
|||
Indonesia (90.64%)
c
|
1,061
|
|
|
1,232
|
|
|
1,130
|
|
|
1,054
|
|
|
1,224
|
|
|
1,168
|
|
|
|||
Consolidated
|
1,088
|
|
|
1,257
|
|
|
1,214
|
|
|
1,079
|
|
|
1,247
|
|
|
1,248
|
|
|
|||
Less noncontrolling interests
|
99
|
|
|
115
|
|
|
120
|
|
|
99
|
|
|
115
|
|
|
123
|
|
|
|||
Net
|
989
|
|
|
1,142
|
|
|
1,094
|
|
|
980
|
|
|
1,132
|
|
|
1,125
|
|
|
|||
Average realized price per ounce
|
|
|
|
|
|
|
$
|
1,238
|
|
|
$
|
1,129
|
|
|
$
|
1,231
|
|
|
|||
MOLYBDENUM
(millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Henderson (100%)
|
10
|
|
|
25
|
|
|
30
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Climax (100%)
|
16
|
|
|
23
|
|
|
21
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
North America copper mines (100%)
a
|
33
|
|
|
37
|
|
|
33
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Cerro Verde (53.56%)
|
21
|
|
|
7
|
|
|
11
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|||
Consolidated
|
80
|
|
|
92
|
|
|
95
|
|
|
74
|
|
|
89
|
|
|
95
|
|
|
|||
Less noncontrolling interest
|
9
|
|
|
3
|
|
|
5
|
|
|
6
|
|
|
4
|
|
|
5
|
|
|
|||
Net
|
71
|
|
|
89
|
|
|
90
|
|
|
68
|
|
|
85
|
|
|
90
|
|
|
|||
Average realized price per pound
|
|
|
|
|
|
|
$
|
8.33
|
|
|
$
|
8.70
|
|
|
$
|
12.74
|
|
|
a.
|
Amounts are net of Morenci’s undivided joint venture partners' interest; effective May 31, 2016, FCX's undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent.
|
b.
|
In November 2014, we completed the sale of our 80 percent interests in the Candelaria and Ojos del Salado mines.
|
c.
|
Amounts are net of Grasberg's joint venture partner interest, which varies in accordance with terms of the joint venture agreement (refer to Note 3). Under the joint venture agreement, PT-FI's share of copper production and sales was
100 percent
in
2016
and
2015
and
98 percent
in
2014
. PT-FI's share of gold production and sales was 100 percent in 2016, 2015 and 2014.
|
d.
|
Consolidated sales volumes exclude purchased copper of
188 million
pounds for 2016,
121 million
pounds for 2015 and
125 million
pounds for 2014.
|
e.
|
In November 2016, we completed the sale of our interest in TFHL, through which we held an interest in the Tenke mine, which is reported as a discontinued operation for all periods presented (refer to Note 2 for further discussion).
|
|
Recoverable Proven and Probable Mineral Reserves
Estimated at December 31, 2016
|
|
|||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|
|||
North America
|
30.4
|
|
|
0.3
|
|
|
2.31
|
|
|
South America
|
29.5
|
|
|
—
|
|
|
0.64
|
|
|
Indonesia
b
|
26.9
|
|
|
25.8
|
|
|
—
|
|
|
Consolidated basis
c
|
86.8
|
|
|
26.1
|
|
|
2.95
|
|
|
Net equity interest
d
|
70.5
|
|
|
23.7
|
|
|
2.65
|
|
|
a.
|
Consolidated recoverable copper reserves include
2.2 billion
pounds in leach stockpiles and
1.0 billion
pounds in mill stockpiles (refer to “Mill and Leach Stockpiles” for further discussion).
|
b.
|
Recoverable proven and probable reserves from Indonesia reflect estimates of minerals that can be recovered through the end of 2041. Refer to Note
13
and to Item 1A. "Risk Factors" for discussion of PT-FI's COW and Indonesian regulatory matters.
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia (refer to Note
3
for further discussion of our joint ventures). Excluded from the table above were our estimated recoverable proven and probable reserves of 281.8 million ounces of silver in North America, South America and Indonesia, which were determined using a long term average price of $15 per ounce.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note
3
for further discussion of our ownership in subsidiaries). Excluded from the table above were our estimated recoverable proven and probable reserves of 226.0 million ounces of silver in North America, South America and Indonesia.
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2016
|
|||||||||||||||||||||||||||||||
|
|
|
Proven Reserves
|
|
Probable Reserves
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
Average Ore Grade
|
|
|
|
Average Ore Grade
|
|
||||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
|
||||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
|
||||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Morenci
|
Mill
|
|
591
|
|
|
0.43
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
|
93
|
|
|
0.40
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
|
|
Crushed leach
|
|
290
|
|
|
0.52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
66
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
1,711
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
523
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Bagdad
|
Mill
|
|
969
|
|
|
0.35
|
|
|
—
|
|
a
|
0.02
|
|
|
1.46
|
|
|
|
136
|
|
|
0.32
|
|
|
—
|
|
a
|
0.02
|
|
|
1.36
|
|
|
|
|
ROM leach
|
|
88
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
51
|
|
|
0.14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Safford
|
Crushed leach
|
|
50
|
|
|
0.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
25
|
|
|
0.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Sierrita
|
Mill
|
|
2,220
|
|
|
0.23
|
|
|
—
|
|
a
|
0.03
|
|
|
1.39
|
|
|
|
214
|
|
|
0.19
|
|
|
—
|
|
a
|
0.02
|
|
|
1.10
|
|
|
|
Chino
|
Mill
|
|
87
|
|
|
0.61
|
|
|
0.04
|
|
|
0.01
|
|
|
0.51
|
|
|
|
48
|
|
|
0.56
|
|
|
0.04
|
|
|
—
|
|
a
|
0.49
|
|
|
|
|
ROM leach
|
|
73
|
|
|
0.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
18
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Tyrone
|
ROM leach
|
|
6
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
a
|
1.23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Henderson
|
Mill
|
|
63
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|
—
|
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
|
—
|
|
|
|
Climax
|
Mill
|
|
146
|
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|
—
|
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
|
|
Cobre
b
|
Mill
|
|
13
|
|
|
0.57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
a
|
0.49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
72
|
|
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
1
|
|
|
0.22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
6,379
|
|
|
|
|
|
|
|
|
|
|
|
1,213
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cerro Verde
|
Mill
|
|
854
|
|
|
0.38
|
|
|
—
|
|
|
0.01
|
|
|
1.92
|
|
|
|
2,698
|
|
|
0.37
|
|
|
—
|
|
|
0.01
|
|
|
1.88
|
|
|
|
|
Crushed leach
|
|
32
|
|
|
0.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
40
|
|
|
0.34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
11
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
38
|
|
|
0.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
El Abra
|
Crushed leach
|
|
333
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
86
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
ROM leach
|
|
9
|
|
|
0.19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
3
|
|
|
0.21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
1,239
|
|
|
|
|
|
|
|
|
|
|
|
2,865
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DMLZ
|
Mill
|
|
73
|
|
|
1.00
|
|
|
0.83
|
|
|
—
|
|
|
4.75
|
|
|
|
366
|
|
|
0.88
|
|
|
0.74
|
|
|
—
|
|
|
4.27
|
|
|
|
Grasberg open pit
|
Mill
|
|
20
|
|
|
1.81
|
|
|
3.65
|
|
|
—
|
|
|
5.14
|
|
|
|
36
|
|
|
0.95
|
|
|
1.25
|
|
|
—
|
|
|
2.76
|
|
|
|
DOZ
|
Mill
|
|
30
|
|
|
0.54
|
|
|
0.71
|
|
|
—
|
|
|
2.25
|
|
|
|
70
|
|
|
0.50
|
|
|
0.69
|
|
|
—
|
|
|
2.04
|
|
|
|
Big Gossan
|
Mill
|
|
18
|
|
|
2.33
|
|
|
1.00
|
|
|
—
|
|
|
14.62
|
|
|
|
42
|
|
|
2.13
|
|
|
0.96
|
|
|
—
|
|
|
12.69
|
|
|
|
Grasberg Block Cave
b
|
Mill
|
|
374
|
|
|
1.14
|
|
|
0.89
|
|
|
—
|
|
|
4.12
|
|
|
|
590
|
|
|
0.96
|
|
|
0.70
|
|
|
—
|
|
|
3.26
|
|
|
|
Kucing Liar
b
|
Mill
|
|
152
|
|
|
1.34
|
|
|
1.16
|
|
|
—
|
|
|
7.09
|
|
|
|
256
|
|
|
1.22
|
|
|
1.06
|
|
|
—
|
|
|
5.94
|
|
|
|
|
|
|
667
|
|
|
|
|
|
|
|
|
|
|
|
1,360
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total FCX - 100% Basis
|
|
|
8,285
|
|
|
|
|
|
|
|
|
|
|
|
5,438
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Grade not shown because of rounding.
|
b.
|
Would require additional capital investment, which could be significant, to bring into production.
|
•
|
g/t – grams per metric ton
|
•
|
Moly – Molybdenum
|
•
|
ROM – Run of Mine
|
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||||||||||||
|
|
|
Estimated at December 31, 2016
|
||||||||||||||||||||||||||
|
|
|
(continued)
|
||||||||||||||||||||||||||
|
|
|
Proven and
|
|
|
|
|||||||||||||||||||||||
|
|
|
Probable
|
|
Average Ore Grade
|
|
Recoveries
a
|
||||||||||||||||||||||
|
Processing
|
|
Million
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
|||||||||
|
Method
|
|
metric tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Morenci
|
Mill
|
|
684
|
|
|
0.42
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
81.4
|
|
|
—
|
|
|
49.3
|
|
|
—
|
|
|
|
Crushed leach
|
|
356
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
2,234
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
Mill
|
|
1,105
|
|
|
0.34
|
|
|
—
|
|
b
|
0.02
|
|
|
1.45
|
|
|
86.3
|
|
|
59.1
|
|
|
70.8
|
|
|
49.3
|
|
|
|
ROM leach
|
|
139
|
|
|
0.16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford
|
Crushed leach
|
|
75
|
|
|
0.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
Mill
|
|
2,434
|
|
|
0.23
|
|
|
—
|
|
b
|
0.02
|
|
|
1.36
|
|
|
83.1
|
|
|
59.3
|
|
|
79.5
|
|
|
49.3
|
|
|
Chino
|
Mill
|
|
135
|
|
|
0.59
|
|
|
0.04
|
|
|
0.01
|
|
|
0.50
|
|
|
82.1
|
|
|
86.6
|
|
|
40.7
|
|
|
87.3
|
|
|
|
ROM leach
|
|
91
|
|
|
0.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
ROM leach
|
|
6
|
|
|
0.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
Mill
|
|
77
|
|
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86.3
|
|
|
—
|
|
|
Climax
|
Mill
|
|
170
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89.6
|
|
|
—
|
|
|
Cobre
c
|
Mill
|
|
13
|
|
|
0.57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
73
|
|
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
7,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cerro Verde
|
Mill
|
|
3,552
|
|
|
0.37
|
|
|
—
|
|
|
0.01
|
|
|
1.89
|
|
|
86.3
|
|
|
—
|
|
|
54.3
|
|
|
44.8
|
|
|
|
Crushed leach
|
|
72
|
|
|
0.41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
49
|
|
|
0.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
Crushed leach
|
|
419
|
|
|
0.46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
ROM leach
|
|
12
|
|
|
0.20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
4,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
DMLZ
|
Mill
|
|
439
|
|
|
0.90
|
|
|
0.75
|
|
|
—
|
|
|
4.35
|
|
|
86.9
|
|
|
79.3
|
|
|
—
|
|
|
64.3
|
|
|
Grasberg open pit
|
Mill
|
|
56
|
|
|
1.26
|
|
|
2.11
|
|
|
—
|
|
|
3.62
|
|
|
89.0
|
|
|
86.5
|
|
|
—
|
|
|
45.2
|
|
|
DOZ
|
Mill
|
|
100
|
|
|
0.51
|
|
|
0.70
|
|
|
—
|
|
|
2.10
|
|
|
90.2
|
|
|
81.9
|
|
|
—
|
|
|
67.1
|
|
|
Big Gossan
|
Mill
|
|
60
|
|
|
2.19
|
|
|
0.97
|
|
|
—
|
|
|
13.29
|
|
|
91.5
|
|
|
67.2
|
|
|
—
|
|
|
63.7
|
|
|
Grasberg Block Cave
c
|
Mill
|
|
964
|
|
|
1.03
|
|
|
0.78
|
|
|
—
|
|
|
3.60
|
|
|
84.4
|
|
|
65.3
|
|
|
—
|
|
|
56.9
|
|
|
Kucing Liar
c
|
Mill
|
|
408
|
|
|
1.26
|
|
|
1.10
|
|
|
—
|
|
|
6.37
|
|
|
85.3
|
|
|
46.5
|
|
|
—
|
|
|
39.5
|
|
|
|
|
|
2,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total FCX - 100% Basis
|
|
|
13,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
a.
|
Recoveries are net of estimated mill and smelter losses.
|
b.
|
Grade not shown because of rounding.
|
c.
|
Would require additional capital investment, which could be significant, to bring into production.
|
Recoverable Proven and Probable Mineral Reserves
|
||||||||||||||||
Estimated at December 31, 2016
|
||||||||||||||||
(continued)
|
||||||||||||||||
|
|
|
|
|
Recoverable Reserves
|
|||||||||||
|
|
|
|
|
Copper
|
|
Gold
|
|
Moly
|
|
Silver
|
|
||||
|
FCX’s
|
|
Processing
|
|
billion
|
|
million
|
|
billion
|
|
million
|
|
||||
|
Interest
|
|
Method
|
|
lbs.
|
|
ozs.
|
|
lbs.
|
|
ozs.
|
|
||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Morenci
|
72%
|
|
Mill
|
|
5.2
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
|
|
|
Crushed leach
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
ROM leach
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Bagdad
|
100%
|
|
Mill
|
|
7.2
|
|
|
0.1
|
|
|
0.36
|
|
|
25.4
|
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Safford
|
100%
|
|
Crushed leach
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Sierrita
|
100%
|
|
Mill
|
|
10.2
|
|
|
0.1
|
|
|
1.04
|
|
|
52.5
|
|
|
Chino
|
100%
|
|
Mill
|
|
1.4
|
|
|
0.1
|
|
|
0.01
|
|
|
1.9
|
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Tyrone
|
100%
|
|
ROM leach
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Henderson
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.25
|
|
|
—
|
|
|
Climax
|
100%
|
|
Mill
|
|
—
|
|
|
—
|
|
|
0.52
|
|
|
—
|
|
|
Cobre
|
100%
|
|
Mill
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
ROM leach
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
32.1
|
|
|
0.3
|
|
|
2.33
|
|
|
79.8
|
|
|
Recoverable metal in stockpiles
a
|
|
|
|
1.9
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
|
100% operations
|
|
|
|
34.0
|
|
|
0.3
|
|
|
2.35
|
|
|
79.8
|
|
|
|
Consolidated
b
|
|
|
|
30.4
|
|
|
0.3
|
|
|
2.31
|
|
|
79.8
|
|
|
|
Net equity interest
c
|
|
|
|
30.4
|
|
|
0.3
|
|
|
2.31
|
|
|
79.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cerro Verde
|
53.56%
|
|
Mill
|
|
25.0
|
|
|
—
|
|
|
0.62
|
|
|
96.7
|
|
|
|
|
|
Crushed leach
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
ROM leach
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
El Abra
|
51%
|
|
Crushed leach
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
ROM leach
|
|
—
|
|
d
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
28.2
|
|
|
—
|
|
|
0.62
|
|
|
96.7
|
|
|
Recoverable metal in stockpiles
a
|
|
|
|
1.3
|
|
|
—
|
|
|
0.02
|
|
|
2.9
|
|
|
|
100% operations
|
|
|
|
29.5
|
|
|
—
|
|
|
0.64
|
|
|
99.6
|
|
|
|
Consolidated
b
|
|
|
|
29.5
|
|
|
—
|
|
|
0.64
|
|
|
99.6
|
|
|
|
Net equity interest
c
|
|
|
|
15.7
|
|
|
—
|
|
|
0.34
|
|
|
53.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
DMLZ
|
e
|
|
Mill
|
|
7.6
|
|
|
8.4
|
|
|
—
|
|
|
39.5
|
|
|
Grasberg open pit
|
e
|
|
Mill
|
|
1.4
|
|
|
3.3
|
|
|
—
|
|
|
2.9
|
|
|
DOZ
|
e
|
|
Mill
|
|
1.0
|
|
|
1.8
|
|
|
—
|
|
|
4.5
|
|
|
Big Gossan
|
e
|
|
Mill
|
|
2.6
|
|
|
1.3
|
|
|
—
|
|
|
16.3
|
|
|
Grasberg Block Cave
|
e
|
|
Mill
|
|
18.5
|
|
|
15.7
|
|
|
—
|
|
|
63.5
|
|
|
Kucing Liar
|
e
|
|
Mill
|
|
9.7
|
|
|
6.7
|
|
|
—
|
|
|
33.0
|
|
|
|
|
|
|
|
40.8
|
|
|
37.2
|
|
|
—
|
|
|
159.7
|
|
|
Recoverable metal in stockpiles
a
|
|
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
|
|
100% operations
|
|
|
|
41.1
|
|
|
37.3
|
|
|
—
|
|
|
160.3
|
|
|
|
Consolidated
b
|
|
|
|
26.9
|
|
|
25.8
|
|
|
—
|
|
|
102.4
|
|
|
|
Net equity interest
c
|
|
|
|
24.4
|
|
|
23.4
|
|
|
—
|
|
|
92.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total FCX – 100% basis
|
|
|
|
104.6
|
|
|
37.6
|
|
|
2.99
|
|
|
339.7
|
|
|
|
Total FCX – Consolidated basis
b
|
|
|
|
86.8
|
|
|
26.1
|
|
|
2.95
|
|
|
281.8
|
|
|
|
Total FCX – Net equity interest
c
|
|
|
|
70.5
|
|
|
23.7
|
|
|
2.65
|
|
|
226.0
|
|
|
a.
|
Refer to "Mill and Leach Stockpiles" for additional information.
|
b.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Refer to Note
3
for further discussion of our joint ventures.
|
c.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Refer to Note
3
for further discussion of our ownership in subsidiaries.
|
d.
|
Amount not shown because of rounding.
|
e.
|
Our joint venture agreement with Rio Tinto provides that PT-FI will receive cash flow from specified annual amounts of copper, gold and silver through 2022, calculated by reference to its proven and probable reserves as of December 31,1994, and 60 percent of all remaining cash flow.
|
|
Copper Equivalent Cutoff Grade (Percent)
|
|
Molybdenum
Cutoff Grade
(Percent)
|
||||
|
Mill
|
|
Crushed or
Agitation Leach
|
|
ROM
Leach
|
|
Mill
|
North America
|
|
|
|
|
|
|
|
Morenci
|
0.27
|
|
0.17
|
|
0.03
|
|
—
|
Bagdad
|
0.20
|
|
—
|
|
0.06
|
|
—
|
Safford
|
—
|
|
0.12
|
|
—
|
|
—
|
Sierrita
|
0.17
|
|
—
|
|
—
|
|
—
|
Chino
|
0.23
|
|
—
|
|
0.08
|
|
—
|
Tyrone
|
—
|
|
—
|
|
0.11
|
|
—
|
Henderson
|
—
|
|
—
|
|
—
|
|
0.12
|
Climax
|
—
|
|
—
|
|
—
|
|
0.05
|
Cobre
|
0.28
|
|
—
|
|
0.10
|
|
—
|
South America
|
|
|
|
|
|
|
|
Cerro Verde
|
0.17
|
|
0.14
|
|
0.14
|
|
—
|
El Abra
|
—
|
|
0.10
|
|
0.08
|
|
—
|
Indonesia
|
|
|
|
|
|
|
|
DMLZ
|
0.85
|
|
—
|
|
—
|
|
—
|
Grasberg open pit
|
0.25
|
|
—
|
|
—
|
|
—
|
DOZ
|
0.92
|
|
—
|
|
—
|
|
—
|
Big Gossan
|
1.52
|
|
—
|
|
—
|
|
—
|
Grasberg Block Cave
|
0.78
|
|
—
|
|
—
|
|
—
|
Kucing Liar
|
1.01
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
Recoverable
|
|||||
|
Million
|
|
Average
|
|
Recovery
|
|
Copper
|
|||||
|
Metric Tons
|
|
Ore Grade (%)
|
|
Rate (%)
|
|
(billion pounds)
|
|||||
Mill stockpiles
|
|
|
|
|
|
|
|
|
||||
Cerro Verde
|
151
|
|
|
0.32
|
|
|
73.1
|
|
|
0.8
|
|
|
Grasberg minerals district
|
33
|
|
|
0.53
|
|
|
65.8
|
|
|
0.3
|
|
|
|
184
|
|
|
|
|
|
|
1.1
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Leach stockpiles
|
|
|
|
|
|
|
|
|
||||
Morenci
|
6,204
|
|
|
0.24
|
|
|
2.2
|
|
|
0.7
|
|
|
Bagdad
|
499
|
|
|
0.24
|
|
|
0.9
|
|
|
—
|
|
a
|
Safford
|
237
|
|
|
0.47
|
|
|
10.9
|
|
|
0.3
|
|
|
Sierrita
|
650
|
|
|
0.15
|
|
|
10.7
|
|
|
0.2
|
|
|
Miami
|
498
|
|
|
0.39
|
|
|
2.3
|
|
|
0.1
|
|
|
Chino
|
1,722
|
|
|
0.25
|
|
|
4.9
|
|
|
0.5
|
|
|
Tyrone
|
1,130
|
|
|
0.28
|
|
|
1.9
|
|
|
0.1
|
|
|
Cerro Verde
|
436
|
|
|
0.50
|
|
|
4.8
|
|
|
0.2
|
|
|
El Abra
|
670
|
|
|
0.44
|
|
|
4.9
|
|
|
0.3
|
|
|
|
12,046
|
|
|
|
|
|
|
2.4
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total FCX - 100% basis
|
|
|
|
|
|
|
3.5
|
|
|
|||
Total FCX - Consolidated basis
b
|
|
|
|
|
|
|
3.2
|
|
|
|||
Total FCX - Net equity interest
c
|
|
|
|
|
|
|
2.6
|
|
|
|||
|
|
|
|
|
|
|
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
Consolidated stockpiles represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Refer to Note
3
for further discussion of our joint ventures.
|
c.
|
Net equity interest represents estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Refer to Note
3
for further discussion of our ownership in subsidiaries.
|
Mineralized Material
|
|||||||||||||||||||||||||||
Estimated at December 31, 2016
|
|||||||||||||||||||||||||||
|
|
|
|
Milling Material
|
|
Leaching Material
|
|
Total Mineralized Material
|
|
||||||||||||||||||
|
|
|
|
Million
|
|
|
|
|
|
|
|
|
|
Million
|
|
|
|
Million
|
|
||||||||
|
|
FCX’s
|
|
metric
|
|
Copper
|
|
Gold
|
|
Moly
|
|
SIlver
|
|
metric
|
|
Copper
|
|
metric
|
|
||||||||
|
|
Interest
|
|
tons
|
|
%
|
|
g/t
|
|
%
|
|
g/t
|
|
tons
|
|
%
|
|
tons
|
|
||||||||
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Morenci
|
|
72%
|
|
551
|
|
|
0.30
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
905
|
|
|
0.22
|
|
|
1,456
|
|
|
Bagdad
|
|
100%
|
|
839
|
|
|
0.27
|
|
|
—
|
|
a
|
0.02
|
|
|
1.2
|
|
|
4
|
|
|
0.19
|
|
|
843
|
|
|
Safford
|
|
100%
|
|
226
|
|
|
0.63
|
|
|
0.12
|
|
|
—
|
|
|
2.4
|
|
|
116
|
|
|
0.26
|
|
|
342
|
|
|
Sierrita
|
|
100%
|
|
1,768
|
|
|
0.18
|
|
|
—
|
|
a
|
0.02
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1,768
|
|
|
Chino
|
|
100%
|
|
146
|
|
|
0.48
|
|
|
0.03
|
|
|
0.01
|
|
|
0.4
|
|
|
11
|
|
|
0.26
|
|
|
157
|
|
|
Tyrone
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
0.38
|
|
|
18
|
|
|
Henderson
|
|
100%
|
|
77
|
|
|
—
|
|
|
—
|
|
|
0.14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
Climax
|
|
100%
|
|
414
|
|
|
—
|
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
414
|
|
|
Cobre
|
|
100%
|
|
30
|
|
|
0.46
|
|
|
0.07
|
|
|
—
|
|
|
1.1
|
|
|
4
|
|
|
0.29
|
|
|
34
|
|
|
Ajo
|
|
100%
|
|
438
|
|
|
0.40
|
|
|
0.06
|
|
|
0.01
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
438
|
|
|
Cochise/Bisbee
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
255
|
|
|
0.46
|
|
|
255
|
|
|
Lone Star
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
642
|
|
|
0.47
|
|
|
642
|
|
|
Sanchez
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153
|
|
|
0.29
|
|
|
153
|
|
|
Tohono
|
|
100%
|
|
230
|
|
|
0.71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
271
|
|
|
0.67
|
|
|
501
|
|
|
Twin Buttes
|
|
100%
|
|
76
|
|
|
0.61
|
|
|
—
|
|
|
0.04
|
|
|
6.3
|
|
|
42
|
|
|
0.23
|
|
|
118
|
|
|
Christmas
|
|
100%
|
|
203
|
|
|
0.40
|
|
|
0.05
|
|
|
—
|
|
a
|
1.0
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cerro Verde
|
|
53.56%
|
|
972
|
|
|
0.36
|
|
|
—
|
|
|
0.02
|
|
|
1.8
|
|
|
8
|
|
|
0.34
|
|
|
980
|
|
|
El Abra
|
|
51%
|
|
1,999
|
|
|
0.45
|
|
|
0.02
|
|
|
0.01
|
|
|
1.4
|
|
|
188
|
|
|
0.28
|
|
|
2,187
|
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Grasberg minerals district
|
|
54.38%
b
|
|
2,004
|
|
|
0.72
|
|
|
0.64
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
2,004
|
|
|
Total FCX - 100% basis
|
|
|
|
9,973
|
|
|
|
|
|
|
|
|
|
|
2,617
|
|
|
|
|
12,590
|
|
c
|
|||||
Total FCX - Consolidated basis
d
|
|
|
|
9,017
|
|
|
|
|
|
|
|
|
|
|
2,363
|
|
|
|
|
11,380
|
|
|
|||||
Total FCX - Net equity interest
e
|
|
|
|
7,474
|
|
|
|
|
|
|
|
|
|
|
2,267
|
|
|
|
|
9,741
|
|
|
|||||
|
|
|
a.
|
Amounts not shown because of rounding.
|
b.
|
FCX's interest in the Grasberg minerals district reflects our 60 percent joint venture ownership further reduced by noncontrolling interest ownership.
|
c.
|
Excludes mineralized material of 89 million metric tons associated with Kisanfu, which in accordance with accounting guidelines is included in assets held for sale.
|
d.
|
Consolidated basis represents estimated mineralized materials after reduction for joint venture partner interests in the Morenci mine in North America and the Grasberg minerals district in Indonesia. Refer to Note
3
for further discussion of our joint ventures.
|
e.
|
Net equity interest represents estimated consolidated mineralized material further reduced for noncontrolling interest ownership. Refer to Note
3
for further discussion of our ownership in subsidiaries.
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
GOM
a
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
22.9
|
|
|
22.2
|
|
|
19.7
|
|
|
|||
Natural gas (Bcf)
|
39.0
|
|
b
|
35.9
|
|
b
|
28.7
|
|
|
|||
NGLs (MMBbls)
|
1.7
|
|
|
2.2
|
|
|
2.0
|
|
|
|||
MMBOE
|
31.1
|
|
|
30.3
|
|
|
26.5
|
|
|
|||
|
|
|
|
|
|
|
||||||
California
c
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
11.4
|
|
|
12.9
|
|
|
13.7
|
|
|
|||
Natural gas (Bcf)
|
1.8
|
|
b
|
2.2
|
|
b
|
2.4
|
|
b
|
|||
NGLs (MMBbls)
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
|||
MMBOE
|
11.8
|
|
|
13.5
|
|
|
14.3
|
|
|
|||
|
|
|
|
|
|
|
||||||
Haynesville/Madden/Other
d
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
|||
Natural gas (Bcf)
|
24.3
|
|
|
51.6
|
|
|
42.4
|
|
|
|||
MMBOE
|
4.2
|
|
|
8.8
|
|
|
7.3
|
|
|
|||
|
|
|
|
|
|
|
||||||
Eagle Ford
e
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
—
|
|
|
—
|
|
|
6.5
|
|
|
|||
Natural gas (Bcf)
|
—
|
|
|
—
|
|
|
7.4
|
|
|
|||
NGLs (MMBbls)
|
—
|
|
|
—
|
|
|
1.0
|
|
|
|||
MMBOE
|
—
|
|
|
—
|
|
|
8.7
|
|
|
|||
|
|
|
|
|
|
|
||||||
Total U.S. oil and gas operations
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
34.4
|
|
|
35.3
|
|
|
40.1
|
|
|
|||
Natural gas (Bcf)
|
65.1
|
|
|
89.7
|
|
|
80.9
|
|
|
|||
NGLs (MMBbls)
|
1.8
|
|
|
2.4
|
|
|
3.2
|
|
|
|||
MMBOE
|
47.1
|
|
|
52.6
|
|
|
56.8
|
|
|
|||
Average cost per BOE:
|
|
|
|
|
|
|
||||||
Production costs
f
|
$
|
14.51
|
|
|
$
|
17.14
|
|
|
$
|
18.00
|
|
|
Production and ad valorem taxes
|
0.68
|
|
|
1.45
|
|
|
2.08
|
|
|
|||
Cash production costs
g
|
$
|
15.19
|
|
|
$
|
18.59
|
|
|
$
|
20.08
|
|
|
a.
|
Includes properties in the Deepwater GOM and on the Shelf. In December 2016, we completed the sale of the Deepwater GOM properties, which had sales volumes of 26.4 MMBOE in 2016.
|
b.
|
Natural gas sales from GOM are net of fuel used in operations totaling 3.8 Bcf in 2016 and 1.1 Bcf in 2015. Natural gas sales from California are net of fuel used in operations totaling 0.1 Bcf in 2016, 0.6 Bcf in 2015 and 1.2 Bcf in 2014.
|
c.
|
Includes properties onshore and offshore California. In December 2016, we completed the sale of the onshore California properties, which had sales volumes of 10.2 MMBOE in 2016.
|
d.
|
In July 2016, we completed the sale of the Haynesville shale assets, which had sales volumes of 2.7 MMBOE in 2016. In January 2017, we entered into an agreement to sell our property interests in the Madden area, which had sales volumes of 1.2 MMBOE in 2016.
|
e.
|
In June 2014, we completed the sale of Eagle Ford shale assets.
|
f.
|
Reflects costs incurred to operate and maintain wells and related equipment and facilities.
|
g.
|
Refer to MD&A for further discussion of cash production costs per BOE and for a reconciliation to production costs reported in our consolidated financial statements.
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
|
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
Exploratory
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Productive:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Oil
|
2
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
25
|
|
|
21
|
|
|
|
Gas
|
1
|
|
|
—
|
|
|
31
|
|
|
5
|
|
|
21
|
|
|
2
|
|
|
|
Dry
|
—
|
|
|
—
|
|
|
4
|
|
|
3
|
|
|
10
|
|
|
7
|
|
|
|
|
|
3
|
|
|
2
|
|
|
37
|
|
|
9
|
|
|
56
|
|
|
30
|
|
Development
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Productive:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Oil
|
8
|
|
|
5
|
|
|
7
|
|
|
3
|
|
|
184
|
|
|
174
|
|
|
|
Gas
|
1
|
|
|
—
|
|
|
17
|
|
|
2
|
|
|
75
|
|
|
10
|
|
|
|
Dry
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
|
|
|
9
|
|
|
5
|
|
|
26
|
|
|
7
|
|
|
261
|
|
|
184
|
|
|
|
|
12
|
|
|
7
|
|
|
63
|
|
|
16
|
|
|
317
|
|
|
214
|
|
•
|
Limiting our flexibility in planning for, or reacting to, changes in the industries in which we operate;
|
•
|
Increasing our vulnerability to general adverse economic and industry conditions;
|
•
|
Limiting our ability to fund future working capital, capital expenditures and/or material contingencies, to engage in future development activities, or to otherwise realize the value of our assets and opportunities fully because of the need to dedicate a substantial portion of our cash flows from operations to payments on our debt;
|
•
|
Requiring us to sell assets to reduce debt; or
|
•
|
Placing us at a competitive disadvantage compared to our competitors that have less debt and/or fewer financial commitments.
|
•
|
Renegotiation, cancellation or forced modification of existing contracts;
|
•
|
Expropriation or nationalization of property;
|
•
|
Changes in the host country's laws, regulations and policies, including those relating to labor, taxation, royalties, divestment, imports, exports, trade regulations, currency and environmental matters, which because of rising "resource nationalism" in countries around the world, may impose increasingly onerous requirements on foreign operations and investment;
|
•
|
Political instability, bribery, extortion, corruption, civil strife, acts of war, guerrilla activities, insurrection and terrorism;
|
•
|
Changes in the aspirations and expectations of local communities in which we operate with respect to our contributions to employee health and safety, infrastructure and community development and other factors that may affect our social license to operate, all of which lead to increased costs;
|
•
|
Changes in U.S. trade, tax, immigration or other policies that may harm relations with foreign countries or result in retaliatory policies;
|
•
|
Foreign exchange controls and movements in foreign currency exchange rates; and
|
•
|
The risk of having to submit to the jurisdiction of an international court or arbitration panel or having to enforce the judgment of an international court or arbitration panel against a sovereign nation within its own territory.
|
•
|
Restrictions on PT-FI’s basic right to export mining products in violation of the COW;
|
•
|
Imposition of export duties other than those taxes and other charges expressly provided for in the COW;
|
•
|
Imposition of surface water taxes in excess of the restrictions imposed by the COW (refer to Note 12 for further discussion of these assessments);
|
•
|
Requirement for PT-FI to build a smelter, while such requirements are not contained in the COW;
|
•
|
Unreasonable withholding and delay in granting approval of two successive ten-year extensions of the term of the COW; and
|
•
|
Imposition of divestment requirements that are not provided for in the COW.
|
•
|
Our knowledge and beliefs about complex scientific and historical facts and circumstances that in many cases occurred many decades ago;
|
•
|
Our beliefs and assumptions regarding the nature, extent and duration of remediation activities that we will be required to undertake and the estimated costs of those remediation activities, which are subject to varying interpretations; and
|
•
|
Our beliefs regarding the requirements that are imposed on us by existing laws and regulations and, in some cases, the clarification of uncertain regulatory requirements that could materially affect our environmental obligation estimates.
|
•
|
Authorize the Board to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class; if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us;
|
•
|
Establish advance notice requirements for nominations to the Board or for proposals that can be presented at stockholder meetings;
|
•
|
Limit who may call stockholder meetings; and
|
•
|
Require the approval of the holders of two thirds of our outstanding common stock to enter into certain business combination transactions, subject to certain exceptions, including if the consideration to be received by our common stockholders in the transaction is deemed to be a fair price.
|
Name
|
|
Age
|
|
Position or Office
|
Richard C. Adkerson
|
|
70
|
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Kathleen L. Quirk
|
|
53
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Harry M. "Red" Conger, IV
|
|
61
|
|
President and Chief Operating Officer - Americas
|
Michael J. Arnold
|
|
64
|
|
Executive Vice President and Chief Administrative Officer
|
|
|
2016
|
|
2015
|
||||
|
|
High
|
|
Low
|
|
High
|
|
Low
|
First Quarter
|
|
$11.45
|
|
$3.52
|
|
$23.72
|
|
$16.43
|
Second Quarter
|
|
$14.06
|
|
$8.76
|
|
$23.97
|
|
$18.11
|
Third Quarter
|
|
$13.59
|
|
$9.43
|
|
$18.84
|
|
$7.76
|
Fourth Quarter
|
|
$16.42
|
|
$9.24
|
|
$14.20
|
|
$6.08
|
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
First Quarter
|
|
$0.3125
|
|
01/15/2015
|
|
02/02/2015
|
Second Quarter
|
|
$0.0500
|
|
04/15/2015
|
|
05/01/2015
|
Special Dividend
|
|
$0.1105
|
|
07/15/2015
|
|
08/03/2015
|
Third Quarter
|
|
$0.0500
|
|
07/15/2015
|
|
08/03/2015
|
Fourth Quarter
|
|
$0.0500
|
|
10/15/2015
|
|
11/02/2015
|
Period
|
|
(a) Total
Number of
Shares Purchased
|
|
(b) Average
Price Paid Per Share
|
|
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs
a
|
|
(d) Maximum Number of Shares That May
Yet Be Purchased Under the Plans or Programs
a
|
|||||
October 1-31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
23,685,500
|
|
November 1-30, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
December 1-31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
|
Total
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,685,500
|
|
a.
|
On July 21, 2008, the Board approved an increase in our open-market share purchase program for up to 30 million shares. The program does not have an expiration date.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
a
|
|
2012
|
|
||||||||||
CONSOLIDATED FINANCIAL DATA
|
(In millions, except per share amounts)
|
|
||||||||||||||||||
Revenues
|
$
|
14,830
|
|
b
|
$
|
14,607
|
|
b
|
$
|
20,001
|
|
b
|
$
|
19,331
|
|
b
|
$
|
16,661
|
|
|
Operating (loss) income
c
|
$
|
(2,792
|
)
|
d
|
$
|
(13,512
|
)
|
e
|
$
|
(298
|
)
|
f
|
$
|
4,820
|
|
g
|
$
|
5,299
|
|
h
|
Net (loss) income from continuing operations
|
$
|
(3,832
|
)
|
i,j
|
$
|
(12,180
|
)
|
k
|
$
|
(1,022
|
)
|
i,j
|
$
|
3,053
|
|
i,j,l
|
$
|
3,578
|
|
i,j
|
Net (loss) income from discontinued operations
m
|
$
|
(193
|
)
|
|
$
|
91
|
|
|
$
|
277
|
|
|
$
|
388
|
|
|
$
|
402
|
|
|
Net (loss) income attributable to common stock
|
$
|
(4,154
|
)
|
n
|
$
|
(12,236
|
)
|
|
$
|
(1,308
|
)
|
|
$
|
2,658
|
|
|
$
|
3,041
|
|
|
Basic net (loss) income per share attributable to common stock:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
$
|
(1.37
|
)
|
|
$
|
2.45
|
|
|
$
|
2.96
|
|
|
Discontinued operations
|
(0.20
|
)
|
|
0.01
|
|
|
0.11
|
|
|
0.20
|
|
|
0.24
|
|
|
|||||
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
2.65
|
|
|
$
|
3.20
|
|
|
Basic weighted-average common shares outstanding
|
1,318
|
|
|
1,082
|
|
|
1,039
|
|
|
1,002
|
|
|
949
|
|
|
|||||
Diluted net (loss) income per share attributable to common stock:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
$
|
(1.37
|
)
|
|
$
|
2.44
|
|
|
$
|
2.94
|
|
|
Discontinued operations
|
(0.20
|
)
|
|
0.01
|
|
|
0.11
|
|
|
0.20
|
|
|
0.25
|
|
|
|||||
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
2.64
|
|
|
$
|
3.19
|
|
|
Diluted weighted-average common shares outstanding
|
1,318
|
|
|
1,082
|
|
|
1,039
|
|
|
1,006
|
|
|
954
|
|
|
|||||
Dividends declared per share of common stock
|
$
|
—
|
|
|
$
|
0.2605
|
|
|
$
|
1.25
|
|
|
$
|
2.25
|
|
|
$
|
1.25
|
|
|
Operating cash flows
|
$
|
3,729
|
|
|
$
|
3,220
|
|
|
$
|
5,631
|
|
|
$
|
6,139
|
|
|
$
|
3,774
|
|
|
Capital expenditures
|
$
|
2,813
|
|
|
$
|
6,353
|
|
|
$
|
7,215
|
|
|
$
|
5,286
|
|
|
$
|
3,494
|
|
|
At December 31:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
4,245
|
|
|
$
|
177
|
|
|
$
|
298
|
|
|
$
|
1,864
|
|
|
$
|
3,567
|
|
|
Property, plant, equipment and mine development costs, net
|
$
|
23,219
|
|
|
$
|
23,986
|
|
|
$
|
22,649
|
|
|
$
|
20,401
|
|
|
$
|
17,499
|
|
|
Oil and gas properties, net
|
$
|
74
|
|
|
$
|
7,093
|
|
|
$
|
19,274
|
|
|
$
|
23,359
|
|
|
$
|
—
|
|
|
Assets held for sale, including current portion
o
|
$
|
344
|
|
|
$
|
5,306
|
|
|
$
|
5,339
|
|
|
$
|
5,128
|
|
|
$
|
4,717
|
|
|
Total assets
|
$
|
37,317
|
|
|
$
|
46,577
|
|
|
$
|
58,674
|
|
|
$
|
63,385
|
|
|
$
|
35,421
|
|
|
Total debt, including current portion
|
$
|
16,027
|
|
|
$
|
20,324
|
|
|
$
|
18,741
|
|
|
$
|
20,476
|
|
|
$
|
3,340
|
|
|
Redeemable noncontrolling interest
|
$
|
—
|
|
|
$
|
764
|
|
|
$
|
751
|
|
|
$
|
716
|
|
|
$
|
—
|
|
|
Total stockholders’ equity
|
$
|
6,051
|
|
|
$
|
7,828
|
|
|
$
|
18,287
|
|
|
$
|
20,934
|
|
|
$
|
17,543
|
|
|
a.
|
Includes the results of oil and gas operations beginning June 1, 2013.
|
b.
|
Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling
$(41) million
(
$(41) million
to net loss attributable to common stock or
$(0.03)
per share) in
2016
,
$(319) million
(
$(198) million
to net loss attributable to common stock or
$(0.18)
per share) in
2015
,
$627 million
(
$389 million
to net loss attributable to common stock or
$0.37
per share) in
2014
and $(312) million ($(194) million to net income attributable to common stock or $(0.19) per share) for the seven-month period from June 1, 2013, to
December 31, 2013
.
|
c.
|
Includes net (credits) charges for adjustments to environmental obligations and related litigation reserves of
$(16) million
(
$(16) million
to net loss attributable to common stock or
$(0.01)
per share) in
2016
,
$43 million
(
$28 million
to net loss attributable to common stock or
$0.03
per share) in
2015
,
$76 million
(
$50 million
to net loss attributable to common stock or
$0.05
per share) in
2014
, $19 million ($17 million to net income attributable to common stock or $0.02 per share) in 2013 and $(62) million ($(40) million to net income attributable to common stock or $(0.04) per share) in 2012.
|
d.
|
The year 2016 includes net charges totaling $4.9 billion to operating loss ($4.8 billion to net loss attributable to common stock or $3.67 per share) consisting of (i) $4.3 billion for impairment of oil and gas properties, (ii) $926 million for drillship settlements/idle
|
e.
|
The year 2015 includes net charges totaling $13.8 billion to operating loss ($12.0 billion to net loss attributable to common stock or $11.10 per share) consisting of (i) $13.1 billion for impairment of oil and gas properties, (ii) $338 million for metals inventory adjustments, (iii) $188 million for charges at oil and gas operations primarily associated with other asset impairment and inventory adjustments, idle/terminated rig costs and prior year mineral tax assessments related to the California properties, (iv) $145 million for charges at mining operations primarily associated with asset impairment, restructuring and other net charges and (v) $18 million for executive retirement benefits, partly offset by (vi) a net gain of $39 million for the sale of our interest in the Luna Energy power facility.
|
f.
|
The year 2014 includes net charges totaling $4.8 billion to operating loss ($3.6 billion to net loss attributable to common stock or $3.46 per share) consisting of (i) $3.7 billion for impairment of oil and gas properties, (ii) $1.7 billion
to impair the full carrying value of goodwill, (ii) $46 million for charges at oil and gas operations primarily associated with idle/terminated rig costs and inventory adjustments and (iv) $6 million for adjustments to molybdenum inventories, partly offset by (v) net gains on sales of assets of $717 million primarily from the sale of our 80 percent interests in the Candelaria and Ojos del Salado mining operations.
|
g.
|
The year 2013 includes net charges totaling $232 million to operating income ($137 million to net income attributable to common stock or $0.14 per share) consisting of (i) $80 million for transaction and related costs principally associated with oil and gas acquisitions, (ii) $76 million associated with updated mine plans at Morenci that resulted in a loss in recoverable leach stockpiles, (iii) $37 million for restructuring an executive employment arrangement, (iv) $36 million associated with a labor agreement at Cerro Verde and (v) $3 million for adjustments to molybdenum inventories.
|
h.
|
The year 2012 includes net charges totaling $16 million to operating income ($8 million to net income attributable to common stockholders or $0.01 per share) associated with a labor agreement at Candelaria.
|
i.
|
Includes after-tax net gains (losses) on exchanges and early extinguishment of debt totaling
$26 million
(
$0.02
per share) in
2016
,
$3 million
(less than $0.01 per share) in
2014
, $(28) million ($(0.03) per share) in 2013 and
$(149) million
(
$(0.16)
per share) in 2012.
|
j.
|
As further discussed in "Consolidated Results - Income Taxes" contained in MD&A, amounts include net tax credits (charges) of $370 million ($374 million net of noncontrolling interests or $0.28 per share) in 2016 and $(121) million ($(103) million net of noncontrolling interests or $(0.10) per share) in 2014. In addition, the year 2013 includes a net tax benefit of
$199 million
(
$0.20
per share) for reductions in our valuation allowances resulting from the oil and gas acquisitions and the year 2012 includes a net tax benefit of $205 million ($98 million net of noncontrolling interests or $0.11 per share) primarily for adjustments to Cerro Verde's deferred income taxes.
|
k.
|
The year 2015 includes a gain of $92 million ($92 million to net loss attributable to common stock or $0.09 per share) related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement.
|
l.
|
The year 2013 includes a gain of $128 million ($0.13 per share) related to our preferred stock investments in and the subsequent acquisition of McMoRan Exploration Co.
|
m.
|
Reflects the results of TFHL through November 16, 2016, and includes charges for allocated interest expense associated with the portion of the term loan that was required to be repaid as a result of the sale of our interest in TFHL. The year 2016 also includes a net charge of $198 million for the loss on disposal.
|
n.
|
The year 2016 includes a gain on redemption of a redeemable noncontrolling interest of $199 million ($0.15 per share) associated with the settlement of a preferred stock obligation at our Plains Offshore Operations Inc. subsidiary.
|
o.
|
In accordance with accounting guidelines, the assets and liabilities of TFHL, Freeport Cobalt and the Kisanfu exploration project have been presented as held for sale in the consolidated balance sheets for all periods presented.
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||||||
CONSOLIDATED MINING (CONTINUING OPERATIONS)
a,b
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
4,222
|
|
|
3,568
|
|
|
3,457
|
|
|
3,669
|
|
|
3,315
|
|
|
|||||
Sales, excluding purchases
|
4,227
|
|
|
3,603
|
|
|
3,463
|
|
|
3,632
|
|
|
3,312
|
|
|
|||||
Average realized price per pound
|
$
|
2.28
|
|
|
$
|
2.42
|
|
|
$
|
3.09
|
|
|
$
|
3.32
|
|
|
$
|
3.61
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,088
|
|
|
1,257
|
|
|
1,214
|
|
|
1,250
|
|
|
958
|
|
|
|||||
Sales, excluding purchases
|
1,079
|
|
|
1,247
|
|
|
1,248
|
|
|
1,204
|
|
|
1,010
|
|
|
|||||
Average realized price per ounce
|
$
|
1,238
|
|
|
$
|
1,129
|
|
|
$
|
1,231
|
|
|
$
|
1,315
|
|
|
$
|
1,665
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
80
|
|
|
92
|
|
|
95
|
|
|
94
|
|
|
85
|
|
|
|||||
Sales, excluding purchases
|
74
|
|
|
89
|
|
|
95
|
|
|
93
|
|
|
83
|
|
|
|||||
Average realized price per pound
|
$
|
8.33
|
|
|
$
|
8.70
|
|
|
$
|
12.74
|
|
|
$
|
11.85
|
|
|
$
|
14.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NORTH AMERICA COPPER MINES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,831
|
|
|
1,947
|
|
|
1,670
|
|
|
1,431
|
|
|
1,363
|
|
|
|||||
Sales, excluding purchases
|
1,841
|
|
|
1,988
|
|
|
1,664
|
|
|
1,422
|
|
|
1,351
|
|
|
|||||
Average realized price per pound
|
$
|
2.24
|
|
|
$
|
2.47
|
|
|
$
|
3.13
|
|
|
$
|
3.36
|
|
|
$
|
3.64
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
33
|
|
|
37
|
|
|
33
|
|
|
32
|
|
|
36
|
|
|
|||||
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Solution extraction/electrowinning (SX/EW) operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
739,200
|
|
|
909,900
|
|
|
1,005,300
|
|
|
1,003,500
|
|
|
998,600
|
|
|
|||||
Average copper ore grade (percent)
|
0.31
|
|
|
0.26
|
|
|
0.25
|
|
|
0.22
|
|
|
0.22
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
1,224
|
|
|
1,134
|
|
|
963
|
|
|
889
|
|
|
866
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
300,500
|
|
|
312,100
|
|
|
273,800
|
|
|
246,500
|
|
|
239,600
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
0.47
|
|
|
0.49
|
|
|
0.45
|
|
|
0.39
|
|
|
0.37
|
|
|
|||||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|
|||||
Copper recovery rate (percent)
|
85.5
|
|
|
85.4
|
|
|
85.8
|
|
|
85.3
|
|
|
83.9
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
854
|
|
|
972
|
|
|
828
|
|
|
642
|
|
|
592
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SOUTH AMERICA MINING
b
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,328
|
|
|
869
|
|
|
1,151
|
|
|
1,323
|
|
|
1,257
|
|
|
|||||
Sales
|
1,332
|
|
|
871
|
|
|
1,135
|
|
|
1,325
|
|
|
1,245
|
|
|
|||||
Average realized price per pound
|
$
|
2.31
|
|
|
$
|
2.38
|
|
|
$
|
3.08
|
|
|
$
|
3.30
|
|
|
$
|
3.58
|
|
|
Molybdenum (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
21
|
|
|
7
|
|
|
11
|
|
|
13
|
|
|
8
|
|
|
|||||
SX/EW operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leach ore placed in stockpiles (metric tons per day)
|
151,600
|
|
|
193,900
|
|
|
275,200
|
|
|
274,600
|
|
|
229,300
|
|
|
|||||
Average copper ore grade (percent)
|
0.41
|
|
|
0.44
|
|
|
0.48
|
|
|
0.50
|
|
|
0.55
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
328
|
|
|
430
|
|
|
491
|
|
|
448
|
|
|
457
|
|
|
|||||
Mill operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
353,400
|
|
|
152,100
|
|
|
180,500
|
|
|
192,600
|
|
|
191,400
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.43
|
|
|
0.46
|
|
|
0.54
|
|
|
0.65
|
|
|
0.60
|
|
|
|||||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
|||||
Copper recovery rate (percent)
|
85.8
|
|
|
81.5
|
|
|
88.1
|
|
|
90.9
|
|
|
90.1
|
|
|
|||||
Copper production (millions of recoverable pounds)
|
1,000
|
|
|
439
|
|
|
660
|
|
|
875
|
|
|
800
|
|
|
|
Years Ended December 31,
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||||||
INDONESIA MINING
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,063
|
|
|
752
|
|
|
636
|
|
|
915
|
|
|
695
|
|
|
|||||
Sales
|
1,054
|
|
|
744
|
|
|
664
|
|
|
885
|
|
|
716
|
|
|
|||||
Average realized price per pound
|
$
|
2.32
|
|
|
$
|
2.33
|
|
|
$
|
3.01
|
|
|
$
|
3.28
|
|
|
$
|
3.58
|
|
|
Gold (thousands of recoverable ounces)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
1,061
|
|
|
1,232
|
|
|
1,130
|
|
|
1,142
|
|
|
862
|
|
|
|||||
Sales
|
1,054
|
|
|
1,224
|
|
|
1,168
|
|
|
1,096
|
|
|
915
|
|
|
|||||
Average realized price per ounce
|
$
|
1,237
|
|
|
$
|
1,129
|
|
|
$
|
1,229
|
|
|
$
|
1,312
|
|
|
$
|
1,664
|
|
|
100% Operating Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ore milled (metric tons per day)
|
165,700
|
|
|
162,500
|
|
|
120,500
|
|
|
179,200
|
|
|
165,000
|
|
|
|||||
Average ore grade:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (percent)
|
0.91
|
|
|
0.67
|
|
|
0.79
|
|
|
0.76
|
|
|
0.62
|
|
|
|||||
Gold (grams per metric ton)
|
0.68
|
|
|
0.79
|
|
|
0.99
|
|
|
0.69
|
|
|
0.59
|
|
|
|||||
Recovery rates (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
91.0
|
|
|
90.4
|
|
|
90.3
|
|
|
90.0
|
|
|
88.7
|
|
|
|||||
Gold
|
82.2
|
|
|
83.4
|
|
|
83.2
|
|
|
80.0
|
|
|
75.7
|
|
|
|||||
Production:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
1,063
|
|
|
752
|
|
|
651
|
|
|
928
|
|
|
695
|
|
|
|||||
Gold (thousands of recoverable ounces)
|
1,061
|
|
|
1,232
|
|
|
1,132
|
|
|
1,142
|
|
|
862
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MOLYBDENUM MINES
c
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Molybdenum production (millions of recoverable pounds)
|
26
|
|
|
48
|
|
|
51
|
|
|
49
|
|
|
41
|
|
|
|||||
Ore milled (metric tons per day)
|
18,300
|
|
|
34,800
|
|
|
39,400
|
|
|
35,700
|
|
|
20,800
|
|
|
|||||
Average molybdenum ore grade (percent)
|
0.21
|
|
|
0.20
|
|
|
0.19
|
|
|
0.19
|
|
|
0.23
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OIL AND GAS OPERATIONS
d
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (million barrels)
|
34.4
|
|
|
35.3
|
|
|
40.1
|
|
|
26.6
|
|
|
|
|
||||||
Natural gas (billion cubic feet)
|
65.1
|
|
|
89.7
|
|
|
80.8
|
|
|
54.2
|
|
|
—
|
|
|
|||||
Natural gas liquids (NGLs) (million barrels)
|
1.8
|
|
|
2.4
|
|
|
3.2
|
|
|
2.4
|
|
|
—
|
|
|
|||||
Million barrels of oil equivalents
|
47.1
|
|
|
52.6
|
|
|
56.8
|
|
|
38.1
|
|
|
—
|
|
|
|||||
Average Realizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil (per barrel)
|
$
|
39.13
|
|
|
$
|
57.11
|
|
|
$
|
90.00
|
|
|
$
|
98.32
|
|
|
—
|
|
|
|
Natural gas
(per million British thermal units)
|
$
|
2.38
|
|
|
$
|
2.59
|
|
|
$
|
4.23
|
|
|
$
|
3.99
|
|
|
—
|
|
|
|
NGLs (per barrel)
|
$
|
18.11
|
|
|
$
|
18.90
|
|
|
$
|
39.73
|
|
|
$
|
38.20
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AFRICA MINING (DISCONTINUED OPERATIONS)
e
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper (millions of recoverable pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
425
|
|
|
449
|
|
|
447
|
|
|
462
|
|
|
348
|
|
|
|||||
Sales
|
424
|
|
|
467
|
|
|
425
|
|
|
454
|
|
|
336
|
|
|
|||||
Average realized price per pound
|
$
|
2.10
|
|
|
$
|
2.42
|
|
|
$
|
3.06
|
|
|
$
|
3.21
|
|
|
$
|
3.51
|
|
|
Cobalt (millions of contained pounds)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Production
|
32
|
|
|
35
|
|
|
29
|
|
|
28
|
|
|
26
|
|
|
|||||
Sales
|
33
|
|
|
35
|
|
|
30
|
|
|
25
|
|
|
25
|
|
|
|||||
Average realized price per pound
|
$
|
7.45
|
|
|
$
|
8.21
|
|
|
$
|
9.66
|
|
|
$
|
8.02
|
|
|
$
|
7.83
|
|
|
Ore milled (metric tons per day)
|
15,200
|
|
|
14,900
|
|
|
14,700
|
|
|
14,900
|
|
|
13,000
|
|
|
|||||
Average ore grade (percent):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Copper
|
4.18
|
|
|
4.00
|
|
|
4.06
|
|
|
4.22
|
|
|
3.62
|
|
|
|||||
Cobalt
|
0.44
|
|
|
0.43
|
|
|
0.34
|
|
|
0.37
|
|
|
0.37
|
|
|
|||||
Copper recovery rate (percent)
|
93.6
|
|
|
94.0
|
|
|
92.6
|
|
|
91.4
|
|
|
92.4
|
|
|
a.
|
Excludes the results from Africa mining, which is reported as discontinued operations.
|
b.
|
Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014.
|
c.
|
Includes production from the Climax molybdenum mine beginning in May 2012.
|
d.
|
Represents the results of FM O&G beginning June 1, 2013. In June 2014, we completed the sale of the Eagle Ford shale assets, in July 2016, we completed the sale of the Haynesville shale assets and in December 2016, we completed the sales of the Deepwater Gulf of Mexico and onshore California oil and gas properties.
|
e.
|
On November 16, 2016, we completed the sale of our interest in TFHL, through which we held an interest in the Tenke mine.
|
|
Years Ended December 31,
|
||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
Ratio of earnings to fixed charges
|
—
|
a
|
—
|
a
|
—
|
a
|
6.8x
|
|
18.3x
|
a.
|
As a result of the losses recorded in 2016, 2015 and 2014, the ratio coverage was less than 1:1. To achieve coverage of 1:1, FCX would have needed to generate additional earnings of $3.5 billion in 2016, $14.3 billion in 2015 and $1.0 billion in 2014.
|
|
Copper
|
|
Gold
|
|
Molybdenum
|
|
|||
North America
|
43
|
%
|
|
2
|
%
|
|
74
|
%
|
a
|
South America
|
32
|
|
|
—
|
|
|
26
|
|
|
Indonesia
|
25
|
|
|
98
|
|
|
—
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
a.
|
Our Henderson and Climax molybdenum mines produced
33 percent
of consolidated molybdenum production, and our North America copper mines produced
41 percent
.
|
|
2017
|
|
2016
|
|
||
|
(Projected)
|
|
(Actual)
|
|
||
Copper
(millions of recoverable pounds):
|
|
|
|
|
||
North America copper mines
|
1,465
|
|
|
1,841
|
|
|
South America mining
|
1,315
|
|
|
1,332
|
|
|
Indonesia mining
|
1,325
|
|
|
1,054
|
|
|
|
4,105
|
|
|
4,227
|
|
|
|
|
|
|
|
||
Gold
(thousands of recoverable ounces)
|
2,170
|
|
|
1,079
|
|
|
Molybdenum
(millions of recoverable pounds)
|
92
|
|
a
|
74
|
|
|
a.
|
Projected molybdenum sales include
36 million
pounds produced by our Molybdenum mines and
56 million
pounds produced by our North and South America copper mines.
|
|
|
Copper
a
(billion
pounds)
|
|
Gold
(million
ounces)
|
|
Molybdenum
(billion
pounds)
|
|
Consolidated reserves at December 31, 2014
|
|
103.5
|
|
|
28.5
|
|
3.11
|
Net additions/revisions
|
|
—
|
|
|
(0.1)
|
|
0.03
|
Production
|
|
(4.0
|
)
|
|
(1.3)
|
|
(0.09)
|
Consolidated reserves at December 31, 2015
|
|
99.5
|
|
|
27.1
|
|
3.05
|
Net additions
|
|
0.5
|
|
|
0.1
|
|
—
|
Production
|
|
(4.6
|
)
|
b
|
(1.1)
|
|
(0.08)
|
Sale of interest in Tenke
|
|
(6.8
|
)
|
|
—
|
|
—
|
Sale of 13 percent interest in Morenci
|
|
(1.8
|
)
|
|
—
|
|
(0.02)
|
Consolidated reserves at December 31, 2016
|
|
86.8
|
|
|
26.1
|
|
2.95
|
|
|
|
|
|
|
|
a.
|
Includes estimated recoverable metals contained in stockpiles. See below for additional discussion of recoverable copper in stockpiles.
|
b.
|
Includes copper production of 0.4 billion pounds from the Tenke mine.
|
|
Years Ended December 31,
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
a
|
|
||||||
SUMMARY FINANCIAL DATA
|
(in millions, except per share amounts)
|
|
||||||||||
Revenues
b,c,d
|
$
|
14,830
|
|
|
$
|
14,607
|
|
|
$
|
20,001
|
|
|
Operating loss
b,e,f,g,h,i
|
$
|
(2,792
|
)
|
j
|
$
|
(13,512
|
)
|
j
|
$
|
(298
|
)
|
k
|
Net loss
from continuing operations
l
|
$
|
(3,832
|
)
|
m,n
|
$
|
(12,180
|
)
|
o
|
$
|
(1,022
|
)
|
m,n
|
Net (loss) income from discontinued operations
p
|
$
|
(193
|
)
|
|
$
|
91
|
|
|
$
|
277
|
|
|
Net loss attributable to common stock
|
$
|
(4,154
|
)
|
q
|
$
|
(12,236
|
)
|
|
$
|
(1,308
|
)
|
|
Diluted net (loss) income per share attributable to common stock:
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
$
|
(1.37
|
)
|
|
Discontinued operations
|
(0.20
|
)
|
|
0.01
|
|
|
0.11
|
|
|
|||
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
$
|
(1.26
|
)
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted-average common shares outstanding
|
1,318
|
|
|
1,082
|
|
|
1,039
|
|
|
|||
Operating cash flows
r
|
$
|
3,729
|
|
|
$
|
3,220
|
|
|
$
|
5,631
|
|
|
Capital expenditures
|
$
|
2,813
|
|
|
$
|
6,353
|
|
|
$
|
7,215
|
|
|
At December 31:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
4,245
|
|
|
$
|
177
|
|
|
$
|
298
|
|
|
Total debt, including current portion
|
$
|
16,027
|
|
|
$
|
20,324
|
|
|
$
|
18,741
|
|
|
a.
|
Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014, and the results of the Eagle Ford shale assets prior to their sale in June 2014.
|
b.
|
As further detailed in Note 16, following is a summary of revenues and operating income (loss) by operating division (in millions):
|
|
Years Ended December 31,
|
||||||||||
Revenues
|
2016
|
|
2015
|
|
2014
|
||||||
North America copper mines
|
$
|
4,374
|
|
|
$
|
5,126
|
|
|
$
|
5,616
|
|
South America mining
|
2,938
|
|
|
1,934
|
|
|
3,532
|
|
|||
Indonesia mining
|
3,295
|
|
|
2,653
|
|
|
3,071
|
|
|||
Molybdenum mines
|
186
|
|
|
348
|
|
|
587
|
|
|||
Rod & Refining
|
3,862
|
|
|
4,154
|
|
|
4,655
|
|
|||
Atlantic Copper Smelting & Refining
|
1,830
|
|
|
1,970
|
|
|
2,412
|
|
|||
U.S. Oil & Gas operations
|
1,513
|
|
|
1,994
|
|
|
4,710
|
|
|||
Other mining, corporate, other & eliminations
|
(3,168
|
)
|
|
(3,572
|
)
|
|
(4,582
|
)
|
|||
Total revenues
|
$
|
14,830
|
|
|
$
|
14,607
|
|
|
$
|
20,001
|
|
|
|
|
|
|
|
||||||
Operating income (loss)
|
|
|
|
|
|
||||||
North America copper mines
|
$
|
1,479
|
|
|
$
|
648
|
|
|
$
|
1,698
|
|
South America mining
|
618
|
|
|
67
|
|
|
1,220
|
|
|||
Indonesia mining
|
1,027
|
|
|
449
|
|
|
719
|
|
|||
Molybdenum mines
|
(96
|
)
|
|
(72
|
)
|
|
167
|
|
|||
Rod & Refining
|
16
|
|
|
16
|
|
|
12
|
|
|||
Atlantic Copper Smelting & Refining
|
72
|
|
|
67
|
|
|
(2
|
)
|
|||
U.S. Oil & Gas operations
|
(5,711
|
)
|
|
(14,189
|
)
|
|
(4,479
|
)
|
|||
Other mining, corporate, other & eliminations
|
(197
|
)
|
|
(498
|
)
|
|
367
|
|
|||
Total operating loss
|
$
|
(2,792
|
)
|
|
$
|
(13,512
|
)
|
|
$
|
(298
|
)
|
c.
|
Includes favorable (unfavorable) adjustments to provisionally priced concentrate and cathode copper sales recognized in prior periods totaling
$5 million
(
$2 million
to net loss attributable to common stock or less than $0.01 per share) in
2016
,
$(100) million
(
$(50) million
to net loss attributable to common stock or
$(0.05)
per share) in
2015
and
$(117) million
(
$(65) million
to net loss attributable to common stock or
$(0.06)
per share) in
2014
. Refer to “Revenues” for further discussion.
|
d.
|
Includes net noncash mark-to-market (losses) gains associated with crude oil and natural gas derivative contracts totaling
$(41) million
(
$(41) million
to net loss attributable to common stock or
$(0.03)
per share) in
2016
,
$(319) million
(
$(198) million
to net loss attributable to common stock or
$(0.18)
per share) in
2015
and
$627 million
(
$389 million
to net loss attributable to common stock or
$0.37
per share) in
2014
. Refer to "Revenues" for further discussion.
|
e.
|
Includes the following charges to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules (in millions except per share amounts):
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Operating loss
|
$
|
4,317
|
|
|
$
|
13,144
|
|
|
$
|
3,737
|
|
Net loss attributable to common stock
|
4,317
|
|
|
11,598
|
|
|
2,324
|
|
|||
Net loss per share of common stock
|
3.28
|
|
|
10.72
|
|
|
2.24
|
|
f.
|
Includes net charges at oil and gas operations totaling $1.1 billion ($1.1 billion to net loss attributable to common stock or $0.84 per share) in
2016
, primarily for drillship settlements/idle rig costs, the termination of contracts for support vessels and equipment, inventory adjustments, asset impairment and restructuring charges,
$188 million
(
$117 million
to net loss attributable to common stock or $0.11 per share) in
2015
, primarily for asset impairments, inventory adjustments and idle rig costs, and
$46 million
(
$29 million
to net loss attributable to common stock or
$0.03
per share) in
2014
, primarily for idle rig costs and inventory adjustments.
|
g.
|
Includes charges for metals inventory adjustments totaling
$36 million
(
$36 million
to net loss attributable to common stock or
$0.03
per share) in
2016
,
$338 million
(
$217 million
to net loss attributable to common stock or
$0.20
per share) in
2015
and
$6 million
(
$4 million
to net loss attributable to common stock or less than $0.01 per share) in
2014
.
|
h.
|
Includes net (credits) charges for adjustments to environmental obligations and related litigation reserves of
$(16) million
(
$(16) million
to net loss attributable to common stock or
$(0.01)
per share) in
2016
,
$43 million
(
$28 million
to net loss attributable to common stock or
$0.03
per share) in
2015
and
$76 million
(
$50 million
to net loss attributable to common stock or
$0.05
per share) in
2014
.
|
i.
|
Includes net gains on sales of assets of
$649 million
(
$649 million
to net loss attributable to common stock or
$0.49
per share) in 2016,
$39 million
(
$25 million
to net loss attributable to common stock or
$0.02
per share) in 2015 and
$717 million
(
$481 million
to net loss attributable to common stockholders or
$0.46
per share) in 2014. Refer to Note 2 and "Net Gain on Sales of Assets" below for further discussion.
|
j.
|
Includes net charges at mining operations totaling
$33 million
(
$14 million
to net loss attributable to common stock or
$0.01
per share) in 2016 for an asset retirement at PT-FI and social commitments at Cerro Verde and
$145 million
(
$90 million
to net loss attributable to common stock or
$0.08
per share) in 2015 for asset impairment, restructuring and other net charges. The year 2015 also includes
$18 million
(
$12 million
to net loss attributable to common stock or
$0.01
per share) for executive retirement benefits.
|
k.
|
Includes an impairment charge of
$1.7 billion
(
$1.7 billion
to net loss attributable to common stockholders or
$1.65
per share) for the full carrying value of goodwill associated with our 2013 oil and gas acquisitions.
|
l.
|
We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to "Operations - Smelting & Refining" for a summary of net impacts from changes in these deferrals.
|
m.
|
Includes net gains on exchanges and early extinguishment of debt totaling
$26 million
(
$26 million
to net loss attributable to common stock or
$0.02
per share) in 2016 and
$73 million
(
$3 million
to net loss attributable to common stock or less than $0.01 per share) in 2014. Refer to Note
8
for further discussion.
|
n.
|
Includes net tax credits (charges) of
$374 million
(
$0.28
per share) in 2016 and
$(103) million
(
$(0.10)
per share) in 2014. Refer to "Income Taxes" below for further discussion.
|
o.
|
The year 2015 includes a gain of $92 million ($92 million to net loss attributable to common stock or $0.09 per share) related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement.
|
p.
|
Reflects the results of TFHL through November 16, 2016, and includes charges for allocated interest expense associated with the portion of our term loan that was required to be repaid as a result of the sale of our interest in TFHL. The year
|
q.
|
Includes a gain on redemption of noncontrolling interest of $199 million for the settlement of our preferred stock obligation at our Plains Offshore Operations Inc. (Plains Offshore) subsidiary.
|
r.
|
Includes net working capital sources (uses) and changes in other tax payments of
$57 million
in
2016
,
$373 million
in
2015
and
$(632) million
in
2014
.
|
|
Years Ended December 31,
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
a,b
|
|
||||||
SUMMARY OPERATING DATA
|
|
|
|
|
|
|
||||||
Copper
(millions of recoverable pounds)
c
|
|
|
|
|
|
|
||||||
Production
|
4,222
|
|
|
3,568
|
|
|
3,457
|
|
|
|||
Sales, excluding purchases
|
4,227
|
|
|
3,603
|
|
|
3,463
|
|
|
|||
Average realized price per pound
|
$
|
2.28
|
|
|
$
|
2.42
|
|
|
$
|
3.09
|
|
|
Site production and delivery costs per pound
d
|
$
|
1.42
|
|
|
$
|
1.81
|
|
|
$
|
1.95
|
|
|
Unit net cash costs per pound
d
|
$
|
1.26
|
|
|
$
|
1.57
|
|
|
$
|
1.55
|
|
|
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
|
||||||
Production
|
1,088
|
|
|
1,257
|
|
|
1,214
|
|
|
|||
Sales, excluding purchases
|
1,079
|
|
|
1,247
|
|
|
1,248
|
|
|
|||
Average realized price per ounce
|
$
|
1,238
|
|
|
$
|
1,129
|
|
|
$
|
1,231
|
|
|
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
|
||||||
Production
|
80
|
|
|
92
|
|
|
95
|
|
|
|||
Sales, excluding purchases
|
74
|
|
|
89
|
|
|
95
|
|
|
|||
Average realized price per pound
|
$
|
8.33
|
|
|
$
|
8.70
|
|
|
$
|
12.74
|
|
|
Oil Equivalents
|
|
|
|
|
|
|
||||||
Sales volumes:
|
|
|
|
|
|
|
||||||
Million barrels of oil equivalent (MMBOE)
|
47.1
|
|
|
52.6
|
|
|
56.8
|
|
|
|||
Thousand BOE (MBOE) per day
|
128
|
|
|
144
|
|
|
156
|
|
|
|||
Cash operating margin per BOE:
e
|
|
|
|
|
|
|
||||||
Realized revenues
f
|
$
|
32.59
|
|
|
$
|
43.54
|
|
|
$
|
71.83
|
|
|
Cash production costs
|
(15.19
|
)
|
|
(18.59
|
)
|
|
(20.08
|
)
|
|
|||
Cash operating margin
|
$
|
17.40
|
|
|
$
|
24.95
|
|
|
$
|
51.75
|
|
|
a.
|
Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014. Sales volumes from the Candelaria and Ojos del Salado mines totaled
268 million
pounds of copper and
67 thousand
ounces of gold in 2014.
|
b.
|
Includes the results of the Eagle Ford shale assets prior to their sale in June 2014. Sales volumes from Eagle Ford totaled
8.7
MMBOE (
24
MBOE per day) in 2014; excluding Eagle Ford, oil and gas cash production costs were
$21.36
per BOE for the year 2014.
|
c.
|
Excludes results from the Tenke mine, which is reported as a discontinued operation. Refer to "Discontinued Operations" for further discussion of Tenke's operating results.
|
d.
|
Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of the per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”
|
e.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues and cash production costs per BOE to revenues and production and delivery costs reported in our consolidated financial statements, refer to "Product Revenues and Production Costs."
|
f.
|
Includes realized cash gains (losses) on crude oil and natural gas derivative contracts of
$0.13
per BOE in 2016,
$7.72
per BOE in 2015 and
$(2.15)
per BOE in 2014. We do not have any oil and gas derivative contracts in place for future periods.
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
||||
Consolidated revenues - prior year
|
$
|
14,607
|
|
|
$
|
20,001
|
|
|
Mining operations:
|
|
|
|
|
||||
Higher (lower) sales volumes:
|
|
|
|
|
||||
Copper
|
1,508
|
|
|
433
|
|
|
||
Gold
|
(190
|
)
|
|
(1
|
)
|
|
||
Molybdenum
|
(128
|
)
|
|
(72
|
)
|
|
||
(Lower) higher averaged realized prices:
|
|
|
|
|
||||
Copper
|
(592
|
)
|
|
(2,414
|
)
|
|
||
Gold
|
117
|
|
|
(127
|
)
|
|
||
Molybdenum
|
(27
|
)
|
|
(360
|
)
|
|
||
Net adjustments for prior year provisionally priced copper sales
|
105
|
|
|
17
|
|
|
||
Higher (lower) revenues from purchased copper
|
117
|
|
|
(95
|
)
|
|
||
Lower Atlantic Copper revenues
|
(140
|
)
|
|
(442
|
)
|
|
||
Oil and gas operations:
|
|
|
|
|
||||
Lower oil sales volumes
|
(40
|
)
|
|
(451
|
)
|
|
||
Lower oil average realized prices, excluding derivative contracts
|
(228
|
)
|
|
(1,663
|
)
|
|
||
Net mark-to-market adjustments on derivative contracts
|
(122
|
)
|
|
(418
|
)
|
|
||
Other, including intercompany eliminations
|
(157
|
)
|
|
199
|
|
|
||
Consolidated revenues - current year
|
$
|
14,830
|
|
|
$
|
14,607
|
|
|
|
2016
|
|
2015
|
|
||||||||||||||||
|
Income (Loss)
a
|
|
Effective
Tax Rate
|
|
Income Tax
(Provision) Benefit |
|
Income (Loss)
a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||||||
U.S.
|
$
|
(865
|
)
|
|
41%
|
|
$
|
357
|
|
b
|
$
|
(1,626
|
)
|
c
|
44%
|
|
$
|
720
|
|
|
South America
|
501
|
|
|
43%
|
|
(216
|
)
|
d
|
(40
|
)
|
|
(10)%
|
|
(4
|
)
|
|
||||
Indonesia
|
1,058
|
|
|
42%
|
|
(442
|
)
|
|
430
|
|
|
45%
|
|
(195
|
)
|
|
||||
Impairment of oil and gas properties
|
(4,317
|
)
|
|
38%
|
|
1,632
|
|
|
(13,144
|
)
|
|
37%
|
|
4,884
|
|
|
||||
Valuation allowance, net
e
|
—
|
|
|
N/A
|
|
(1,632
|
)
|
|
—
|
|
|
N/A
|
|
(3,338
|
)
|
|
||||
Eliminations and other
|
151
|
|
|
N/A
|
|
(70
|
)
|
|
252
|
|
|
N/A
|
|
(116
|
)
|
|
||||
Consolidated FCX
|
$
|
(3,472
|
)
|
|
(11)%
|
|
$
|
(371
|
)
|
|
$
|
(14,128
|
)
|
|
14%
|
|
$
|
1,951
|
|
|
|
2014
|
|
||||||||
|
Income (Loss)
a
|
|
Effective
Tax Rate |
|
Income Tax
(Provision) Benefit |
|
||||
U.S.
|
$
|
1,881
|
|
|
28%
|
|
$
|
(527
|
)
|
f
|
South America
|
1,221
|
|
|
43%
|
|
(531
|
)
|
g
|
||
Indonesia
|
709
|
|
|
41%
|
|
(293
|
)
|
|
||
Impairment of oil and gas properties
|
(3,737
|
)
|
|
38%
|
|
1,413
|
|
|
||
Gain on sale of Candelaria and Ojos del Salado mines
|
671
|
|
|
33%
|
|
(221
|
)
|
|
||
Eliminations and other
|
172
|
|
|
N/A
|
|
(66
|
)
|
|
||
|
917
|
|
|
25%
|
|
(225
|
)
|
|
||
Adjustments
|
(1,717
|
)
|
h
|
N/A
|
|
—
|
|
|
||
Consolidated FCX
|
$
|
(800
|
)
|
|
(28)%
|
|
$
|
(225
|
)
|
|
a.
|
Represents income (loss) by geographic location before income taxes and equity in affiliated companies’ net earnings(losses).
|
b.
|
Includes net tax credits of
$357 million
associated with alternative minimum tax credits, changes to valuation allowances and net operating loss carryback claims.
|
c.
|
Includes a gain of $92 million related to net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement for which there was no related tax provision.
|
d.
|
Includes a net tax credit of
$13 million
(
$17 million
net of noncontrolling interests) related to changes in Peruvian tax rules.
|
e.
|
As a result of the impairment to U.S. oil and gas properties, we recorded tax charges to establish valuation allowances against U.S. federal and state deferred tax assets that will not generate a future benefit.
|
f.
|
Includes a charge of
$84 million
for deferred taxes recorded in connection with the allocation of goodwill to the sale of Eagle Ford shale assets; partly offset by a net benefit of
$41 million
(comprised of
$57 million
related to changes in U.S. state income tax filing positions and a charge of
$16 million
for a change in U.S. federal income tax law regulations).
|
g.
|
Includes charges of
$78 million
(
$60 million
net of noncontrolling interests) related to changes in Chilean and Peruvian tax rules.
|
h.
|
Reflects goodwill impairment charges, which were non-deductible for tax purposes.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
1,831
|
|
|
1,947
|
|
|
1,670
|
|
|||
Sales, excluding purchases
|
1,841
|
|
|
1,988
|
|
|
1,664
|
|
|||
Average realized price per pound
|
$
|
2.24
|
|
|
$
|
2.47
|
|
|
$
|
3.13
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
a
|
33
|
|
|
37
|
|
|
33
|
|
|||
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
739,200
|
|
|
909,900
|
|
|
1,005,300
|
|
|||
Average copper ore grade (percent)
|
0.31
|
|
|
0.26
|
|
|
0.25
|
|
|||
Copper production (millions of recoverable pounds)
|
1,224
|
|
|
1,134
|
|
|
963
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
300,500
|
|
|
312,100
|
|
|
273,800
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
||||||
Copper
|
0.47
|
|
|
0.49
|
|
|
0.45
|
|
|||
Molybdenum
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
|||
Copper recovery rate (percent)
|
85.5
|
|
|
85.4
|
|
|
85.8
|
|
|||
Copper production (millions of recoverable pounds)
|
854
|
|
|
972
|
|
|
828
|
|
a.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at the North America copper mines.
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.24
|
|
|
$
|
2.24
|
|
|
$
|
6.34
|
|
|
$
|
2.47
|
|
|
$
|
2.47
|
|
|
$
|
7.02
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.42
|
|
|
1.35
|
|
|
4.93
|
|
|
1.68
|
|
|
1.59
|
|
|
5.61
|
|
||||||
By-product credits
|
(0.12
|
)
|
|
—
|
|
|
—
|
|
|
(0.13
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.11
|
|
|
0.10
|
|
|
—
|
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.41
|
|
|
1.45
|
|
|
4.93
|
|
|
1.67
|
|
|
1.71
|
|
|
5.61
|
|
||||||
DD&A
|
0.29
|
|
|
0.27
|
|
|
0.60
|
|
|
0.28
|
|
|
0.27
|
|
|
0.53
|
|
||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
0.07
|
|
|
0.07
|
|
|
0.07
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.05
|
|
|
0.06
|
|
|
0.12
|
|
b
|
0.11
|
|
|
0.16
|
|
||||||
Total unit costs
|
1.75
|
|
|
1.77
|
|
|
5.59
|
|
|
2.14
|
|
|
2.16
|
|
|
6.37
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
0.49
|
|
|
$
|
0.47
|
|
|
$
|
0.75
|
|
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,836
|
|
|
1,836
|
|
|
|
|
1,985
|
|
|
1,985
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
33
|
|
|
|
|
|
|
37
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$99 million
(
$0.05
per pound) in 2015 for asset impairment, restructuring and other net charges.
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
By-
|
|
Co-Product Method
|
|
By-
|
|
Co-Product Method
|
||||||||||||||||
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
|
Product
Method
|
|
Copper
|
|
Molyb-
denum
a
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.47
|
|
|
$
|
2.47
|
|
|
$
|
7.02
|
|
|
$
|
3.13
|
|
|
$
|
3.13
|
|
|
$
|
11.74
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.68
|
|
|
1.59
|
|
|
5.61
|
|
|
1.85
|
|
|
1.73
|
|
|
6.85
|
|
||||||
By-product credits
|
(0.13
|
)
|
|
—
|
|
|
—
|
|
|
(0.24
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.12
|
|
|
0.12
|
|
|
—
|
|
|
0.12
|
|
|
0.12
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.67
|
|
|
1.71
|
|
|
5.61
|
|
|
1.73
|
|
|
1.85
|
|
|
6.85
|
|
||||||
DD&A
|
0.28
|
|
|
0.27
|
|
|
0.53
|
|
|
0.29
|
|
|
0.27
|
|
|
0.60
|
|
||||||
Metals inventory adjustments
|
0.07
|
|
|
0.07
|
|
|
0.07
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Noncash and other costs, net
|
0.12
|
|
b
|
0.11
|
|
|
0.16
|
|
|
0.09
|
|
|
0.09
|
|
|
0.07
|
|
||||||
Total unit costs
|
2.14
|
|
|
2.16
|
|
|
6.37
|
|
|
2.11
|
|
|
2.21
|
|
|
7.52
|
|
||||||
Revenue adjustments, primarily for pricing on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gross profit per pound
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
0.65
|
|
|
$
|
1.02
|
|
|
$
|
0.92
|
|
|
$
|
4.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,985
|
|
|
1,985
|
|
|
|
|
1,657
|
|
|
1,657
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
|
|
37
|
|
|
|
|
|
|
33
|
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes
$99 million
(
$0.05
per pound) in 2015 for asset impairment, restructuring and other net charges.
|
|
2016
|
|
2015
|
|
2014
a
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
1,328
|
|
|
869
|
|
|
1,151
|
|
|||
Sales
|
1,332
|
|
|
871
|
|
|
1,135
|
|
|||
Average realized price per pound
|
$
|
2.31
|
|
|
$
|
2.38
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
||||||
Molybdenum
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
b
|
21
|
|
|
7
|
|
|
11
|
|
|||
|
|
|
|
|
|
||||||
SX/EW operations
|
|
|
|
|
|
||||||
Leach ore placed in stockpiles (metric tons per day)
|
151,600
|
|
|
193,900
|
|
|
275,200
|
|
|||
Average copper ore grade (percent)
|
0.41
|
|
|
0.44
|
|
|
0.48
|
|
|||
Copper production (millions of recoverable pounds)
|
328
|
|
|
430
|
|
|
491
|
|
|||
|
|
|
|
|
|
||||||
Mill operations
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
353,400
|
|
|
152,100
|
|
|
180,500
|
|
|||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.43
|
|
|
0.46
|
|
|
0.54
|
|
|||
Molybdenum (percent)
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|||
Copper recovery rate (percent)
|
85.8
|
|
|
81.5
|
|
|
88.1
|
|
|||
Copper production (millions of recoverable pounds)
|
1,000
|
|
|
439
|
|
|
660
|
|
a.
|
Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014; sales volumes from the Candelaria and Ojos del Salado mines totaled
268 million
pounds of copper in 2014.
|
b.
|
Refer to "Consolidated Results" for our consolidated molybdenum sales volumes, which includes sales of molybdenum produced at Cerro Verde.
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
|
By-Product
Method
|
|
Co-Product
Method
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.31
|
|
|
$
|
2.31
|
|
|
$
|
2.38
|
|
|
$
|
2.38
|
|
|
$
|
3.08
|
|
|
$
|
3.08
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.26
|
|
|
1.20
|
|
|
1.60
|
|
|
1.56
|
|
|
1.62
|
|
|
1.51
|
|
||||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
(0.05
|
)
|
|
—
|
|
|
(0.22
|
)
|
|
—
|
|
||||||
Treatment charges
|
0.24
|
|
|
0.24
|
|
|
0.19
|
|
|
0.19
|
|
|
0.17
|
|
|
0.17
|
|
||||||
Royalty on metals
|
0.01
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
||||||
Unit net cash costs
|
1.41
|
|
|
1.44
|
|
|
1.74
|
|
|
1.75
|
|
|
1.58
|
|
a
|
1.68
|
|
||||||
DD&A
|
0.41
|
|
|
0.39
|
|
|
0.40
|
|
|
0.39
|
|
|
0.32
|
|
|
0.31
|
|
||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
0.08
|
|
|
0.08
|
|
|
—
|
|
|
—
|
|
||||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
0.05
|
|
|
0.05
|
|
|
0.06
|
|
|
0.06
|
|
||||||
Total unit costs
|
1.85
|
|
|
1.86
|
|
|
2.27
|
|
|
2.27
|
|
|
1.96
|
|
|
2.05
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
0.01
|
|
|
0.01
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
(0.05
|
)
|
|
(0.05
|
)
|
||||||
Gross profit per pound
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
$
|
1.07
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,332
|
|
|
1,332
|
|
|
871
|
|
|
871
|
|
|
1,135
|
|
|
1,135
|
|
a.
|
Excluding the results of Candelaria and Ojos del Salado mines, South America mining's unit net cash costs averaged $1.57 per pound of copper in 2014.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating Data, Net of Joint Venture Interest
|
|
|
|
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
||||||
Production
|
1,063
|
|
|
752
|
|
|
636
|
|
|||
Sales
|
1,054
|
|
|
744
|
|
|
664
|
|
|||
Average realized price per pound
|
$
|
2.32
|
|
|
$
|
2.33
|
|
|
$
|
3.01
|
|
|
|
|
|
|
|
||||||
Gold
(thousands of recoverable ounces)
|
|
|
|
|
|
||||||
Production
|
1,061
|
|
|
1,232
|
|
|
1,130
|
|
|||
Sales
|
1,054
|
|
|
1,224
|
|
|
1,168
|
|
|||
Average realized price per ounce
|
$
|
1,237
|
|
|
$
|
1,129
|
|
|
$
|
1,229
|
|
|
|
|
|
|
|
||||||
100% Operating Data
|
|
|
|
|
|
||||||
Ore milled (metric tons per day):
a
|
|
|
|
|
|
||||||
Grasberg open pit
|
119,700
|
|
|
115,900
|
|
|
69,100
|
|
|||
DOZ underground mine
b
|
38,000
|
|
|
43,700
|
|
|
50,500
|
|
|||
DMLZ underground mine
|
4,400
|
|
|
2,900
|
|
|
—
|
|
|||
Grasberg Block Cave underground mine
|
2,700
|
|
|
—
|
|
|
—
|
|
|||
Big Gossan underground mine
|
900
|
|
|
—
|
|
|
900
|
|
|||
Total
|
165,700
|
|
|
162,500
|
|
|
120,500
|
|
|||
|
|
|
|
|
|
||||||
Average ore grade:
|
|
|
|
|
|
||||||
Copper (percent)
|
0.91
|
|
|
0.67
|
|
|
0.79
|
|
|||
Gold (grams per metric ton)
|
0.68
|
|
|
0.79
|
|
|
0.99
|
|
|||
Recovery rates (percent):
|
|
|
|
|
|
||||||
Copper
|
91.0
|
|
|
90.4
|
|
|
90.3
|
|
|||
Gold
|
82.2
|
|
|
83.4
|
|
|
83.2
|
|
|||
Production (recoverable):
|
|
|
|
|
|
||||||
Copper (millions of pounds)
|
1,063
|
|
|
752
|
|
|
651
|
|
|||
Gold (thousands of ounces)
|
1,061
|
|
|
1,232
|
|
|
1,132
|
|
a.
|
Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine and from development activities that result in metal production.
|
b.
|
Ore milled from the DOZ underground mine is expected to ramp up to over 60,000 metric tons of ore per day in 2017.
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-
Product
|
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.32
|
|
|
$
|
2.32
|
|
|
$
|
1,237
|
|
|
$
|
2.33
|
|
|
$
|
2.33
|
|
|
$
|
1,129
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.63
|
|
|
1.05
|
|
|
559
|
|
|
2.39
|
|
|
1.32
|
|
|
638
|
|
||||||
Gold and silver credits
|
(1.30
|
)
|
|
—
|
|
|
—
|
|
|
(1.91
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.28
|
|
|
0.18
|
|
|
97
|
|
|
0.31
|
|
|
0.17
|
|
|
83
|
|
||||||
Export duties
|
0.09
|
|
|
0.06
|
|
|
31
|
|
|
0.15
|
|
|
0.08
|
|
|
39
|
|
||||||
Royalty on metals
|
0.13
|
|
|
0.07
|
|
|
47
|
|
|
0.15
|
|
|
0.09
|
|
|
41
|
|
||||||
Unit net cash costs
|
0.83
|
|
|
1.36
|
|
|
734
|
|
|
1.09
|
|
|
1.66
|
|
|
801
|
|
||||||
DD&A
|
0.36
|
|
|
0.24
|
|
|
125
|
|
|
0.39
|
|
|
0.22
|
|
|
105
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.03
|
|
|
17
|
|
|
0.05
|
|
|
0.03
|
|
|
14
|
|
||||||
Total unit costs
|
1.24
|
|
|
1.63
|
|
|
876
|
|
|
1.53
|
|
|
1.91
|
|
|
920
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
—
|
|
|
—
|
|
|
16
|
|
|
(0.07
|
)
|
|
(0.06
|
)
|
|
7
|
|
||||||
PT Smelting intercompany (loss) profit
|
(0.02
|
)
|
|
(0.02
|
)
|
|
(8
|
)
|
|
0.01
|
|
|
0.01
|
|
|
4
|
|
||||||
Gross profit per pound/ounce
|
$
|
1.06
|
|
|
$
|
0.67
|
|
|
$
|
369
|
|
|
$
|
0.74
|
|
|
$
|
0.37
|
|
|
$
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
1,054
|
|
|
1,054
|
|
|
|
|
744
|
|
|
744
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
1,054
|
|
|
|
|
|
|
1,224
|
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
By-
Product |
|
Co-Product Method
|
|
By-
Product |
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Gold
|
|
Method
|
|
Copper
|
|
Gold
|
||||||||||||
Revenues, excluding adjustments
|
$
|
2.33
|
|
|
$
|
2.33
|
|
|
$
|
1,129
|
|
|
$
|
3.01
|
|
|
$
|
3.01
|
|
|
$
|
1,229
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
2.39
|
|
|
1.32
|
|
|
638
|
|
|
2.76
|
|
a
|
1.59
|
|
|
648
|
|
||||||
Gold and silver credits
|
(1.91
|
)
|
|
—
|
|
|
—
|
|
|
(2.25
|
)
|
|
—
|
|
|
—
|
|
||||||
Treatment charges
|
0.31
|
|
|
0.17
|
|
|
83
|
|
|
0.26
|
|
|
0.15
|
|
|
61
|
|
||||||
Export duties
|
0.15
|
|
|
0.08
|
|
|
39
|
|
|
0.12
|
|
|
0.06
|
|
|
27
|
|
||||||
Royalty on metals
|
0.15
|
|
|
0.09
|
|
|
41
|
|
|
0.17
|
|
|
0.10
|
|
|
41
|
|
||||||
Unit net cash costs
|
1.09
|
|
|
1.66
|
|
|
801
|
|
|
1.06
|
|
|
1.90
|
|
|
777
|
|
||||||
DD&A
|
0.39
|
|
|
0.22
|
|
|
105
|
|
|
0.40
|
|
|
0.23
|
|
|
94
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.03
|
|
|
14
|
|
|
0.29
|
|
a
|
0.17
|
|
|
68
|
|
||||||
Total unit costs
|
1.53
|
|
|
1.91
|
|
|
920
|
|
|
1.75
|
|
|
2.30
|
|
|
939
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
(0.07
|
)
|
|
(0.06
|
)
|
|
7
|
|
|
(0.08
|
)
|
|
(0.08
|
)
|
|
15
|
|
||||||
PT Smelting intercompany profit
|
0.01
|
|
|
0.01
|
|
|
4
|
|
|
0.05
|
|
|
0.03
|
|
|
12
|
|
||||||
Gross profit per pound/ounce
|
$
|
0.74
|
|
|
$
|
0.37
|
|
|
$
|
220
|
|
|
$
|
1.23
|
|
|
$
|
0.66
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
744
|
|
|
744
|
|
|
|
|
664
|
|
|
664
|
|
|
|
||||||||
Gold sales (thousands of recoverable ounces)
|
|
|
|
|
1,224
|
|
|
|
|
|
|
1,168
|
|
a.
|
Fixed costs totaling $0.22 per pound of copper charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates are excluded from site production and delivery and included in net noncash and other costs in
2014
.
|
|
2016
|
|
2015
|
|
2014
|
|||
North America copper mines
|
13
|
%
|
|
23
|
%
|
|
21
|
%
|
South America mining
|
7
|
|
|
3
|
|
a
|
21
|
|
Indonesia mining
|
3
|
|
|
3
|
|
|
8
|
|
Third parties
|
77
|
|
|
71
|
|
|
50
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
a.
|
The decrease in purchases from the South America mines, compared to 2014, primarily reflects the impact of the November 2014 sale of the Candelaria and Ojos del Salado mines.
|
|
|
2016
|
|
2015
|
|
2014
a
|
||||||
Sales Volumes
|
|
|
|
|
|
|
||||||
Oil (MMBbls)
|
|
34.4
|
|
|
35.3
|
|
|
40.1
|
|
|||
Natural gas (Bcf)
|
|
65.1
|
|
|
89.7
|
|
|
80.8
|
|
|||
NGLs (MMBbls)
|
|
1.8
|
|
|
2.4
|
|
|
3.2
|
|
|||
MMBOE
|
|
47.1
|
|
|
52.6
|
|
|
56.8
|
|
|||
|
|
|
|
|
|
|
||||||
Average Realizations
b
|
|
|
|
|
|
|
||||||
Oil (per barrel)
|
|
$
|
39.13
|
|
|
$
|
57.11
|
|
|
$
|
90.00
|
|
Natural gas
(per MMBtu)
|
|
$
|
2.38
|
|
|
$
|
2.59
|
|
|
$
|
4.23
|
|
NGLs (per barrel)
|
|
$
|
18.11
|
|
|
$
|
18.90
|
|
|
$
|
39.73
|
|
|
|
|
|
|
|
|
||||||
Gross Loss per BOE
|
|
|
|
|
|
|
||||||
Realized revenues
b
|
|
$
|
32.59
|
|
|
$
|
43.54
|
|
|
$
|
71.83
|
|
Cash production costs
b
|
|
(15.19
|
)
|
|
(18.59
|
)
|
|
(20.08
|
)
|
|||
Cash operating margin
b
|
|
17.40
|
|
|
24.95
|
|
|
51.75
|
|
|||
DD&A
|
|
(18.47
|
)
|
|
(34.28
|
)
|
|
(40.34
|
)
|
|||
Impairment of oil and gas properties
|
|
(91.35
|
)
|
|
(246.67
|
)
|
|
(65.80
|
)
|
|||
Accretion and other costs
|
|
(23.10
|
)
|
c
|
(4.41
|
)
|
c
|
(1.69
|
)
|
|||
Net noncash mark-to-market (losses) gains on derivative contracts
|
|
(0.87
|
)
|
|
(6.07
|
)
|
|
11.03
|
|
|||
Other revenues
|
|
0.44
|
|
|
0.43
|
|
|
0.06
|
|
|||
Gross loss
|
|
$
|
(115.95
|
)
|
|
$
|
(266.05
|
)
|
|
$
|
(44.99
|
)
|
a.
|
Includes results of the Eagle Ford shale assets prior to their sale in June 2014.
|
b.
|
Cash operating margin for oil and gas operations reflects realized revenues less cash production costs. Realized revenues exclude noncash mark-to-market adjustments on derivative contracts, and cash production costs exclude accretion and other costs. For reconciliations of realized revenues (including average realizations for oil, natural gas and NGLs) and cash production costs to revenues and production and delivery costs reported in our consolidated financial statements, refer to the supplemental schedule, "Product Revenues and Production Costs."
|
c.
|
Includes $21.63 per BOE in 2016 and $3.58 per BOE in 2015 primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments and other asset impairments.
|
|
|
2016
|
|
2015
|
|
2014
|
|
|||
Sales Volumes (MBOE per day):
|
|
|
|
|
|
|
|
|||
GOM
a
|
|
85
|
|
|
83
|
|
|
73
|
|
|
California
a
|
|
32
|
|
|
37
|
|
|
39
|
|
|
Haynesville/Madden/Other
b
|
|
11
|
|
|
24
|
|
|
20
|
|
|
Eagle Ford
c
|
|
—
|
|
|
—
|
|
|
24
|
|
|
Total oil and gas operations
|
|
128
|
|
|
144
|
|
|
156
|
|
|
a.
|
In December 2016, we completed the sales of the Deepwater GOM and onshore California oil and gas properties, which had average sales volumes of 100 MBOE per day in 2016.
|
b.
|
In July 2016, we completed the sale of the Haynesville shale assets, which contributed 7 MBOE per day to the 2016 average daily sales volumes.
|
c.
|
In June 2014, we completed the sale of the Eagle Ford shale assets.
|
|
2016
a
|
|
2015
|
|
2014
|
|
||||||
Copper
(millions of recoverable pounds)
|
|
|
|
|
|
|
||||||
Production
|
425
|
|
|
449
|
|
|
447
|
|
|
|||
Sales
|
424
|
|
|
467
|
|
|
425
|
|
|
|||
Average realized price per pound
b
|
$
|
2.10
|
|
|
$
|
2.42
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
||||||
Cobalt
(millions of contained pounds)
|
|
|
|
|
|
|
||||||
Production
|
32
|
|
|
35
|
|
|
29
|
|
|
|||
Sales
|
33
|
|
|
35
|
|
|
30
|
|
|
|||
Average realized price per pound
|
$
|
7.45
|
|
|
$
|
8.21
|
|
|
$
|
9.66
|
|
|
|
|
|
|
|
|
|
||||||
Ore milled (metric tons per day)
|
15,200
|
|
|
14,900
|
|
|
14,700
|
|
|
|||
Average ore grade (percent):
|
|
|
|
|
|
|
||||||
Copper
|
4.18
|
|
|
4.00
|
|
|
4.06
|
|
|
|||
Cobalt
|
0.44
|
|
|
0.43
|
|
|
0.34
|
|
|
|||
Copper recovery rate (percent)
|
93.6
|
|
|
94.0
|
|
|
92.6
|
|
|
a.
|
Includes the results of Tenke through November 16, 2016.
|
b.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.10
|
|
|
$
|
2.10
|
|
|
$
|
7.45
|
|
|
$
|
2.42
|
|
|
$
|
2.42
|
|
|
$
|
8.21
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.58
|
|
|
1.37
|
|
|
5.25
|
|
|
1.58
|
|
|
1.37
|
|
|
5.40
|
|
||||||
Cobalt credits
b
|
(0.39
|
)
|
|
—
|
|
|
—
|
|
|
(0.42
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.12
|
|
|
0.05
|
|
|
0.04
|
|
|
0.14
|
|
||||||
Unit net cash costs
|
1.24
|
|
|
1.41
|
|
|
5.37
|
|
|
1.21
|
|
|
1.41
|
|
|
5.54
|
|
||||||
DD&A
|
0.50
|
|
|
0.41
|
|
|
1.16
|
|
|
0.55
|
|
|
0.46
|
|
|
1.26
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.12
|
|
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
||||||
Total unit costs
|
1.79
|
|
|
1.86
|
|
|
6.65
|
|
|
1.83
|
|
|
1.93
|
|
|
6.96
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.12
|
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
||||||
Gross profit per pound
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.92
|
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
424
|
|
|
424
|
|
|
|
|
467
|
|
|
467
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
33
|
|
|
|
|
|
|
35
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
By-Product
|
|
Co-Product Method
|
|
By-Product
|
|
Co-Product Method
|
||||||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Method
|
|
Copper
|
|
Cobalt
|
||||||||||||
Revenues, excluding adjustments
a
|
$
|
2.42
|
|
|
$
|
2.42
|
|
|
$
|
8.21
|
|
|
$
|
3.06
|
|
|
$
|
3.06
|
|
|
$
|
9.66
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and other costs shown below
|
1.58
|
|
|
1.37
|
|
|
5.40
|
|
|
1.56
|
|
|
1.39
|
|
|
5.30
|
|
||||||
Cobalt credits
b
|
(0.42
|
)
|
|
—
|
|
|
—
|
|
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
||||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.14
|
|
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
||||||
Unit net cash costs
|
1.21
|
|
|
1.41
|
|
|
5.54
|
|
|
1.15
|
|
|
1.45
|
|
|
5.46
|
|
||||||
DD&A
|
0.55
|
|
|
0.46
|
|
|
1.26
|
|
|
0.54
|
|
|
0.46
|
|
|
1.13
|
|
||||||
Noncash and other costs, net
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
||||||
Total unit costs
|
1.83
|
|
|
1.93
|
|
|
6.96
|
|
|
1.74
|
|
|
1.95
|
|
|
6.70
|
|
||||||
Revenue adjustments, primarily for pricing on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
|
|
0.07
|
|
||||||
Gross profit per pound
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.23
|
|
|
$
|
1.32
|
|
|
$
|
1.11
|
|
|
$
|
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Copper sales (millions of recoverable pounds)
|
467
|
|
|
467
|
|
|
|
|
425
|
|
|
425
|
|
|
|
||||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
35
|
|
|
|
|
|
|
30
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
Cash at domestic companies
|
$
|
3,908
|
|
Cash at international operations
|
337
|
|
|
Total consolidated cash and cash equivalents
|
4,245
|
|
|
Noncontrolling interests’ share
|
(95
|
)
|
|
Cash, net of noncontrolling interests’ share
|
4,150
|
|
|
Withholding taxes and other
|
(22
|
)
|
|
Net cash available
|
$
|
4,128
|
|
|
|
|
Weighted-
|
||
|
|
|
Average
|
||
|
|
|
Interest Rate
|
||
Senior Notes
|
$
|
14.4
|
|
|
4.4%
|
Cerro Verde Credit Facility
|
1.4
|
|
|
2.7%
|
|
Other FCX debt
|
0.2
|
|
|
3.1%
|
|
Total debt
|
$
|
16.0
|
|
|
4.2%
|
|
|
|
|
|
Total
|
|
2017
|
|
2018 to
2019
|
|
2020 to
2021
|
|
Thereafter
|
||||||||||
Debt maturities
|
$
|
15,948
|
|
|
$
|
1,234
|
|
|
$
|
3,381
|
|
|
$
|
2,479
|
|
|
$
|
8,854
|
|
Scheduled interest payment obligations
a
|
6,134
|
|
|
654
|
|
|
1,174
|
|
|
995
|
|
|
3,311
|
|
|||||
ARO and environmental obligations
b
|
7,285
|
|
|
500
|
|
|
783
|
|
|
482
|
|
|
5,520
|
|
|||||
Take-or-pay contracts
c
|
3,435
|
|
|
1,753
|
|
|
1,032
|
|
|
308
|
|
|
342
|
|
|||||
Operating lease obligations
|
251
|
|
|
45
|
|
|
58
|
|
|
39
|
|
|
109
|
|
|||||
Total
d
|
$
|
33,053
|
|
|
$
|
4,186
|
|
|
$
|
6,428
|
|
|
$
|
4,303
|
|
|
$
|
18,136
|
|
a.
|
Scheduled interest payment obligations were calculated using stated coupon rates for fixed-rate debt and interest rates applicable at
December 31, 2016
, for variable-rate debt.
|
b.
|
Represents estimated cash payments, on an undiscounted and unescalated basis, associated with ARO and environmental activities (including $714 million for our oil and gas operations). The timing and the amount of these payments could change as a result of changes in regulatory requirements, changes in scope and timing of ARO activities, the settlement of environmental matters and as actual spending occurs. Refer to Note
12
for additional discussion of environmental and ARO matters.
|
c.
|
Represents contractual obligations for purchases of goods or services agreements enforceable and legally binding and that specify all significant terms, and primarily include the procurement of copper concentrate (
$1.4 billion
), cobalt ($0.8 billion), electricity (
$0.5 billion
) and transportation services (
$0.4 billion
). Some of our take-or-pay contracts are settled based on the prevailing market rate for the service or commodity purchased, and in some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrate provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Obligations for cobalt provide for deliveries of specified volumes to Freeport Cobalt at market-based prices. Electricity obligations are primarily for long-term power purchase agreements in North America and contractual minimum demand at the South America mines. Transportation obligations are primarily for South America contracted ocean freight.
|
d.
|
This table excludes certain other obligations in our consolidated balance sheets, such as estimated funding for pension, postretirement and other employee benefit obligations as the funding may vary from year to year based on changes in the fair value of plan assets and actuarial assumptions, commitments and contingencies totaling $102 million and unrecognized tax benefits totaling
$167 million
where the timing of settlement is not determinable, and other less significant amounts. This table also excludes purchase orders for inventory and other goods and services, as purchase orders typically represent authorizations to purchase rather than binding agreements.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues
|
$
|
5
|
|
|
$
|
(100
|
)
|
|
$
|
(117
|
)
|
Net income attributable to common stock
|
$
|
2
|
|
|
$
|
(50
|
)
|
|
$
|
(65
|
)
|
Net income per share attributable to common stock
|
$
|
—
|
|
|
$
|
(0.05
|
)
|
|
$
|
(0.06
|
)
|
|
Exchange Rate per $1
at December 31,
|
|
Estimated Annual Payments
|
|
10% Change in
Exchange Rate
(in millions)
a
|
|||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
(in local currency)
|
|
(in millions)
b
|
|
Increase
|
|
Decrease
|
|||||||||
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Rupiah
|
13,369
|
|
|
13,726
|
|
|
12,378
|
|
|
7.7 trillion
|
|
$
|
576
|
|
|
$
|
(52
|
)
|
|
$
|
64
|
|
Australian dollar
|
1.39
|
|
|
1.37
|
|
|
1.22
|
|
|
230 million
|
|
$
|
166
|
|
|
$
|
(15
|
)
|
|
$
|
18
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Peruvian sol
|
3.36
|
|
|
3.41
|
|
|
2.99
|
|
|
1.08 billion
|
|
$
|
321
|
|
|
$
|
(29
|
)
|
|
$
|
36
|
|
Chilean peso
|
670
|
|
|
710
|
|
|
607
|
|
|
104 billion
|
|
$
|
155
|
|
|
$
|
(14
|
)
|
|
$
|
17
|
|
Atlantic Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Euro
|
0.95
|
|
|
0.92
|
|
|
0.82
|
|
|
140 million
|
|
$
|
147
|
|
|
$
|
(13
|
)
|
|
$
|
16
|
|
a.
|
Reflects the estimated impact on annual operating costs assuming a 10 percent increase or decrease in the exchange rate reported at
December 31, 2016
.
|
b.
|
Based on exchange rates at
December 31, 2016
.
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Fair Value
|
||||||||||||||
Fixed-rate debt
|
$
|
1,234
|
|
|
$
|
1,483
|
|
|
$
|
237
|
|
|
$
|
1,617
|
|
|
$
|
862
|
|
|
$
|
8,854
|
|
|
$
|
13,590
|
|
Average interest rate
|
2.2
|
%
|
|
2.4
|
%
|
|
6.1
|
%
|
|
4.4
|
%
|
|
4.8
|
%
|
|
4.9
|
%
|
|
4.4
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Variable-rate debt
|
—
|
|
|
$
|
770
|
|
|
$
|
891
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
1,606
|
|
||||
Average interest rate
|
—
|
|
|
2.7
|
%
|
|
2.8
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
%
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs
.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Includes
$99 million
(
$0.05
per pound) for asset impairment, restructuring and other net charges.
|
d.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.
|
b.
|
Includes gold and silver product revenues and production costs.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
3,077
|
|
|
$
|
3,077
|
|
|
$
|
176
|
|
|
$
|
3,253
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,681
|
|
|
1,601
|
|
|
120
|
|
|
1,721
|
|
||||
By-product credits
|
(136
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
320
|
|
|
320
|
|
|
—
|
|
|
320
|
|
||||
Royalty on metals
|
7
|
|
|
6
|
|
|
1
|
|
|
7
|
|
||||
Net cash costs
|
1,872
|
|
|
1,927
|
|
|
121
|
|
|
2,048
|
|
||||
DD&A
|
552
|
|
|
523
|
|
|
29
|
|
|
552
|
|
||||
Noncash and other costs, net
|
40
|
|
|
38
|
|
|
2
|
|
|
40
|
|
||||
Total costs
|
2,464
|
|
|
2,488
|
|
|
152
|
|
|
2,640
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||
Gross profit
|
$
|
624
|
|
|
$
|
600
|
|
|
$
|
24
|
|
|
$
|
624
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,332
|
|
|
1,332
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.31
|
|
|
$
|
2.31
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.26
|
|
|
1.20
|
|
|
|
|
|
||||||
By-product credits
|
(0.10
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.24
|
|
|
0.24
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.41
|
|
|
1.44
|
|
|
|
|
|
||||||
DD&A
|
0.41
|
|
|
0.39
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.03
|
|
|
0.03
|
|
|
|
|
|
||||||
Total unit costs
|
1.85
|
|
|
1.86
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
0.01
|
|
|
0.01
|
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
3,253
|
|
|
$
|
1,721
|
|
|
$
|
552
|
|
|
|
||
Treatment charges
|
(320
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
40
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
11
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
1
|
|
|
(3
|
)
|
|
1
|
|
|
|
|||||
South America mining
|
2,938
|
|
|
1,758
|
|
|
553
|
|
|
|
|||||
Other mining & eliminations
b
|
10,379
|
|
|
7,085
|
|
|
1,094
|
|
|
|
|||||
Total mining
|
13,317
|
|
|
8,843
|
|
|
1,647
|
|
|
|
|||||
U.S. oil & gas operations
|
1,513
|
|
|
1,801
|
|
|
869
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
53
|
|
|
14
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
14,830
|
|
|
$
|
10,697
|
|
|
$
|
2,530
|
|
|
|
a.
|
Includes silver sales of
3.7 million
ounces (
$18.05
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
2,075
|
|
|
$
|
2,075
|
|
|
$
|
65
|
|
|
$
|
2,140
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,393
|
|
|
1,355
|
|
|
59
|
|
|
1,414
|
|
||||
By-product credits
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
161
|
|
|
161
|
|
|
—
|
|
|
161
|
|
||||
Royalty on metals
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Net cash costs
|
1,514
|
|
|
1,520
|
|
|
59
|
|
|
1,579
|
|
||||
DD&A
|
352
|
|
|
341
|
|
|
11
|
|
|
352
|
|
||||
Metals inventory adjustments
|
73
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||||
Noncash and other costs, net
|
41
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||
Total costs
|
1,980
|
|
|
1,975
|
|
|
70
|
|
|
2,045
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
||||
Gross profit (loss)
|
$
|
67
|
|
|
$
|
72
|
|
|
$
|
(5
|
)
|
|
$
|
67
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
871
|
|
|
871
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
2.38
|
|
|
$
|
2.38
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.60
|
|
|
1.56
|
|
|
|
|
|
||||||
By-product credits
|
(0.05
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.19
|
|
|
0.19
|
|
|
|
|
|
||||||
Royalty on metals
|
—
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.74
|
|
|
1.75
|
|
|
|
|
|
||||||
DD&A
|
0.40
|
|
|
0.39
|
|
|
|
|
|
||||||
Metals inventory adjustments
|
0.08
|
|
|
0.08
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.05
|
|
|
0.05
|
|
|
|
|
|
||||||
Total unit costs
|
2.27
|
|
|
2.27
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.03
|
)
|
|
(0.03
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
Metals
|
||||||||
|
|
|
Production
|
|
|
|
Inventory
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
||||||||
Totals presented above
|
$
|
2,140
|
|
|
$
|
1,414
|
|
|
$
|
352
|
|
|
$
|
73
|
|
Treatment charges
|
(161
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Noncash and other costs, net
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Eliminations and other
|
(13
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
||||
South America mining
|
1,934
|
|
|
1,438
|
|
|
352
|
|
|
73
|
|
||||
Other mining & eliminations
b
|
10,678
|
|
|
8,045
|
|
|
1,070
|
|
|
265
|
|
||||
Total mining
|
12,612
|
|
|
9,483
|
|
|
1,422
|
|
|
338
|
|
||||
U.S. oil & gas operations
|
1,994
|
|
|
1,211
|
|
|
1,804
|
|
|
—
|
|
||||
Corporate, other & eliminations
|
1
|
|
|
(1
|
)
|
|
14
|
|
|
—
|
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
14,607
|
|
|
$
|
10,693
|
|
|
$
|
3,240
|
|
|
$
|
338
|
|
a.
|
Includes silver sales of
2.0 million
ounces (
$14.48
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Other
a
|
|
Total
|
||||||||
Revenues, excluding adjustments
|
$
|
3,498
|
|
|
$
|
3,498
|
|
|
$
|
269
|
|
|
$
|
3,767
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1,839
|
|
|
1,710
|
|
|
151
|
|
|
1,861
|
|
||||
By-product credits
|
(247
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treatment charges
|
191
|
|
|
191
|
|
|
—
|
|
|
191
|
|
||||
Royalty on metals
|
6
|
|
|
5
|
|
|
1
|
|
|
6
|
|
||||
Net cash costs
|
1,789
|
|
b
|
1,906
|
|
|
152
|
|
|
2,058
|
|
||||
DD&A
|
367
|
|
|
345
|
|
|
22
|
|
|
367
|
|
||||
Noncash and other costs, net
|
67
|
|
|
64
|
|
|
3
|
|
|
67
|
|
||||
Total costs
|
2,223
|
|
|
2,315
|
|
|
177
|
|
|
2,492
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(65
|
)
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||
Gross profit
|
$
|
1,210
|
|
|
$
|
1,118
|
|
|
$
|
92
|
|
|
$
|
1,210
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
1,135
|
|
b
|
1,135
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
|
|
|
||||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.62
|
|
|
1.51
|
|
|
|
|
|
||||||
By-product credits
|
(0.22
|
)
|
|
—
|
|
|
|
|
|
||||||
Treatment charges
|
0.17
|
|
|
0.17
|
|
|
|
|
|
||||||
Royalty on metals
|
0.01
|
|
|
—
|
|
|
|
|
|
||||||
Unit net cash costs
|
1.58
|
|
b
|
1.68
|
|
|
|
|
|
||||||
DD&A
|
0.32
|
|
|
0.31
|
|
|
|
|
|
||||||
Noncash and other costs, net
|
0.06
|
|
|
0.06
|
|
|
|
|
|
||||||
Total unit costs
|
1.96
|
|
|
2.05
|
|
|
|
|
|
||||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.05
|
)
|
|
(0.05
|
)
|
|
|
|
|
||||||
Gross profit per pound
|
$
|
1.07
|
|
|
$
|
0.98
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
3,767
|
|
|
$
|
1,861
|
|
|
$
|
367
|
|
|
|
||
Treatment charges
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
67
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other
|
27
|
|
|
11
|
|
|
—
|
|
|
|
|||||
South America mining
|
3,532
|
|
|
1,939
|
|
|
367
|
|
|
|
|||||
Other mining & eliminations
c
|
11,759
|
|
|
7,938
|
|
|
963
|
|
|
|
|||||
Total mining
|
15,291
|
|
|
9,877
|
|
|
1,330
|
|
|
|
|||||
U.S. oil & gas operations
|
4,710
|
|
|
1,237
|
|
|
2,291
|
|
|
|
|||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
14
|
|
|
|
|||||
As reported in FCX’s consolidated financial statements
|
$
|
20,001
|
|
|
$
|
11,116
|
|
|
$
|
3,635
|
|
|
|
a.
|
Includes gold sales of
67 thousand
ounces (
$1,271
per ounce average realized price) and silver sales of
2.9 million
ounces (
$18.54
per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.
|
|
Net Cash Costs
(in millions)
|
|
Copper Sales
(millions of recoverable pounds)
|
|
Unit Net
Cash Costs
(per pound
of copper)
|
|
|||||
Presented above
|
$
|
1,789
|
|
|
1,135
|
|
|
$
|
1.58
|
|
|
Less: Candelaria and Ojos del Salado
|
425
|
|
|
268
|
|
|
|
|
|||
|
$
|
1,364
|
|
|
867
|
|
|
$
|
1.57
|
|
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.1 million
ounces (
$14.81
per ounce average realized price).
|
b.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
a.
|
Includes silver sales of
2.2 million
ounces (
$17.42
per ounce average realized price).
|
b.
|
Includes $143 million ($0.22 per pound) of fixed costs charged directly to cost of sales as a result of the impact of export restrictions on PT-FI's operating rates.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
.
|
|
|
|
Years Ended December 31,
|
|
||||||||||||
(In millions)
|
|
|
2016
|
|
2015
|
|
2014
|
|
||||||||
Revenues, excluding adjustments
a
|
|
|
$
|
208
|
|
|
$
|
388
|
|
|
$
|
630
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
|
195
|
|
|
299
|
|
|
321
|
|
|
|||||
Treatment charges and other
|
|
|
22
|
|
|
40
|
|
|
43
|
|
|
|||||
Net cash costs
|
|
|
217
|
|
|
339
|
|
|
364
|
|
|
|||||
DD&A
|
|
|
68
|
|
|
97
|
|
|
92
|
|
|
|||||
Metals inventory adjustments
|
|
|
15
|
|
|
11
|
|
|
—
|
|
|
|||||
Noncash and other costs, net
|
|
|
4
|
|
|
13
|
|
b
|
7
|
|
|
|||||
Total costs
|
|
|
304
|
|
|
460
|
|
|
463
|
|
|
|||||
Gross (loss) profit
|
|
|
$
|
(96
|
)
|
|
$
|
(72
|
)
|
|
$
|
167
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Molybdenum sales (millions of recoverable pounds)
a
|
|
|
26
|
|
|
48
|
|
|
51
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
Gross (loss) profit per pound of molybdenum:
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
|
|
$
|
8.02
|
|
|
$
|
8.14
|
|
|
$
|
12.28
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
|
|
7.50
|
|
|
6.27
|
|
|
6.24
|
|
|
|||||
Treatment charges and other
|
|
|
0.86
|
|
|
0.84
|
|
|
0.84
|
|
|
|||||
Unit net cash costs
|
|
|
8.36
|
|
|
7.11
|
|
|
7.08
|
|
|
|||||
DD&A
|
|
|
2.62
|
|
|
2.04
|
|
|
1.80
|
|
|
|||||
Metals inventory adjustments
|
|
|
0.58
|
|
|
0.22
|
|
|
—
|
|
|
|||||
Noncash and other costs, net
|
|
|
0.15
|
|
|
0.28
|
|
b
|
0.15
|
|
|
|||||
Total unit costs
|
|
|
11.71
|
|
|
9.65
|
|
|
9.03
|
|
|
|||||
Gross (loss) profit per pound
|
|
|
$
|
(3.69
|
)
|
|
$
|
(1.51
|
)
|
|
$
|
3.25
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
Metals
|
|
||||||||
|
|
|
Production
|
|
|
|
Inventory
|
|
||||||||
Year Ended December 31, 2016
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Adjustments
|
|
||||||||
Totals presented above
|
$
|
208
|
|
|
$
|
195
|
|
|
$
|
68
|
|
|
$
|
15
|
|
|
Treatment charges and other
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
||||
Molybdenum mines
|
186
|
|
|
199
|
|
|
68
|
|
|
15
|
|
|
||||
Other mining & eliminations
c
|
13,131
|
|
|
8,644
|
|
|
1,579
|
|
|
21
|
|
|
||||
Total mining
|
13,317
|
|
|
8,843
|
|
|
1,647
|
|
|
36
|
|
|
||||
U.S. oil & gas operations
|
1,513
|
|
|
1,801
|
|
|
869
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
53
|
|
|
14
|
|
|
—
|
|
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
14,830
|
|
|
$
|
10,697
|
|
|
$
|
2,530
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Totals presented above
|
$
|
388
|
|
|
$
|
299
|
|
|
$
|
97
|
|
|
$
|
11
|
|
|
Treatment charges and other
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
||||
Molybdenum mines
|
348
|
|
|
312
|
|
|
97
|
|
|
11
|
|
|
||||
Other mining & eliminations
c
|
12,264
|
|
|
9,171
|
|
|
1,325
|
|
|
327
|
|
|
||||
Total mining
|
12,612
|
|
|
9,483
|
|
|
1,422
|
|
|
338
|
|
|
||||
U.S. oil & gas operations
|
1,994
|
|
|
1,211
|
|
|
1,804
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
1
|
|
|
(1
|
)
|
|
14
|
|
|
—
|
|
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
14,607
|
|
|
$
|
10,693
|
|
|
$
|
3,240
|
|
|
$
|
338
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
||||||||
Totals presented above
|
$
|
630
|
|
|
$
|
321
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
Treatment charges and other
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Noncash and other costs, net
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
||||
Molybdenum mines
|
587
|
|
|
328
|
|
|
92
|
|
|
—
|
|
|
||||
Other mining & eliminations
c
|
14,704
|
|
|
9,549
|
|
|
1,238
|
|
|
6
|
|
|
||||
Total mining
|
15,291
|
|
|
9,877
|
|
|
1,330
|
|
|
6
|
|
|
||||
U.S. oil & gas operations
|
4,710
|
|
|
1,237
|
|
|
2,291
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
14
|
|
|
—
|
|
|
||||
As reported in FCX’s consolidated financial statements
|
$
|
20,001
|
|
|
$
|
11,116
|
|
|
$
|
3,635
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Reflects sales of the Molybdenum mines' production to the molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, the consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.
|
b.
|
Includes restructuring charges of
$7 million
(
$0.15
per pound) in 2015.
|
c.
|
Represents the combined total for all other mining operations and the related eliminations, as presented in Note
16
. Also includes amounts associated with the molybdenum sales company, which includes sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines.
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
Total
|
|
||||||||
|
|
|
Natural
|
|
|
|
U.S. Oil
|
|
||||||||
|
Oil
|
|
Gas
|
|
NGLs
|
|
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
1,339
|
|
|
$
|
155
|
|
|
$
|
33
|
|
|
$
|
1,527
|
|
|
Cash gains on derivative contracts
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
||||
Realized revenues
|
$
|
1,345
|
|
|
$
|
155
|
|
|
$
|
33
|
|
|
1,533
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(714
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
819
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(869
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(4,299
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(1,087
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(41
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
21
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(5,456
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
34.4
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
65.1
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
1.8
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
47.1
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMBtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
38.96
|
|
|
$
|
2.38
|
|
|
$
|
18.11
|
|
|
$
|
32.46
|
|
|
Cash gains on derivative contracts
|
0.17
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
|
||||
Realized revenues
|
$
|
39.13
|
|
|
$
|
2.38
|
|
|
$
|
18.11
|
|
|
32.59
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(15.19
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
17.40
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(18.47
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(91.35
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(23.10
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(0.87
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.44
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(115.95
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|||||||||||||||
(In millions)
|
|
|
|
|
|
|
Impairment of
|
|
||||||||
|
|
|
Production
|
|
|
|
Oil and Gas
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Properties
|
|
||||||||
Totals presented above
|
$
|
1,527
|
|
|
$
|
714
|
|
|
$
|
869
|
|
|
$
|
4,299
|
|
|
Cash gains on derivative contracts
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net noncash mark-to-market losses on derivative contracts
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Accretion and other costs
|
—
|
|
|
1,087
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
1,513
|
|
|
1,801
|
|
|
869
|
|
|
4,299
|
|
|
||||
Total mining
b
|
13,317
|
|
|
8,843
|
|
|
1,647
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
53
|
|
|
14
|
|
|
18
|
|
c
|
||||
As reported in FCX's consolidated financial statements
|
$
|
14,830
|
|
|
$
|
10,697
|
|
|
$
|
2,530
|
|
|
$
|
4,317
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
a.
|
Includes charges of
$1.0 billion
($21.63 per BOE) primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments and asset impairments, partly offset by adjustments to prior year mineral tax assessments related to the California properties.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
16
.
|
c.
|
Reflects impairment of international oil and gas properties, primarily in Morocco.
|
Year Ended December 31, 2015
|
|
|
|
|
Total
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
U.S. Oil
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
1,607
|
|
|
$
|
232
|
|
|
$
|
46
|
|
|
$
|
1,885
|
|
|
Cash gains on derivative contracts
|
406
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
||||
Realized revenues
|
$
|
2,013
|
|
|
$
|
232
|
|
|
$
|
46
|
|
|
2,291
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(979
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
1,312
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(1,804
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(12,980
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(232
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(319
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
22
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(14,001
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
35.3
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
89.7
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
2.4
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
52.6
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMbtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
45.58
|
|
|
$
|
2.59
|
|
|
$
|
18.90
|
|
|
$
|
35.82
|
|
|
Cash gains on derivative contracts
|
11.53
|
|
|
—
|
|
|
—
|
|
|
7.72
|
|
|
||||
Realized revenues
|
$
|
57.11
|
|
|
$
|
2.59
|
|
|
$
|
18.90
|
|
|
43.54
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(18.59
|
)
|
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
24.95
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(34.28
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(246.67
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(4.41
|
)
|
a
|
|||||||
Net noncash mark-to-market losses on derivative contracts
|
|
|
|
|
|
|
(6.07
|
)
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.43
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(266.05
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
|
|
|
|
|
|
Impairment of
|
|
||||||||
|
|
|
Production
|
|
|
|
Oil and Gas
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Properties
|
|
||||||||
Totals presented above
|
$
|
1,885
|
|
|
$
|
979
|
|
|
$
|
1,804
|
|
|
$
|
12,980
|
|
|
Cash gains on derivative contracts
|
406
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net noncash mark-to-market losses on derivative contracts
|
(319
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Accretion and other costs
|
—
|
|
|
232
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
1,994
|
|
|
1,211
|
|
|
1,804
|
|
|
12,980
|
|
|
||||
Total mining
b
|
12,612
|
|
|
9,483
|
|
|
1,422
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
1
|
|
|
(1
|
)
|
|
14
|
|
|
164
|
|
c
|
||||
As reported in FCX's consolidated financial statements
|
$
|
14,607
|
|
|
$
|
10,693
|
|
|
$
|
3,240
|
|
|
$
|
13,144
|
|
|
a.
|
Includes
$188 million
($3.58 per BOE) primarily for asset impairments and inventory adjustments, idle/terminated rig costs and prior year mineral tax assessments related to the California properties.
|
b.
|
Represents the combined total for mining operations and the related eliminations, as presented in Note
16
.
|
c.
|
Reflects impairment of international oil and gas properties, primarily in Morocco.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
Total
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
U.S. Oil
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
& Gas
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
3,721
|
|
|
$
|
353
|
|
|
$
|
128
|
|
|
$
|
4,202
|
|
|
Cash losses on derivative contracts
|
(111
|
)
|
|
(11
|
)
|
|
—
|
|
|
(122
|
)
|
|
||||
Realized revenues
|
$
|
3,610
|
|
|
$
|
342
|
|
|
$
|
128
|
|
|
4,080
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(1,140
|
)
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
2,940
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(2,291
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(3,737
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(97
|
)
|
b
|
|||||||
Net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
627
|
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
3
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(2,555
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil (MMBbls)
|
40.1
|
|
|
|
|
|
|
|
|
|||||||
Gas (Bcf)
|
|
|
80.8
|
|
|
|
|
|
|
|||||||
NGLs (MMBbls)
|
|
|
|
|
3.2
|
|
|
|
|
|||||||
Oil Equivalents (MMBOE)
|
|
|
|
|
|
|
56.8
|
|
a
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Oil
|
|
Natural Gas
|
|
NGLs
|
|
|
|
||||||||
|
(per barrel)
|
|
(per MMbtu)
|
|
(per barrel)
|
|
Per BOE
|
|
||||||||
Oil and gas revenues before derivatives
|
$
|
92.76
|
|
|
$
|
4.37
|
|
|
$
|
39.73
|
|
|
$
|
73.98
|
|
|
Cash losses on derivative contracts
|
(2.76
|
)
|
|
(0.14
|
)
|
|
—
|
|
|
(2.15
|
)
|
|
||||
Realized revenues
|
$
|
90.00
|
|
|
$
|
4.23
|
|
|
$
|
39.73
|
|
|
71.83
|
|
|
|
Cash production costs
|
|
|
|
|
|
|
(20.08
|
)
|
a
|
|||||||
Cash operating margin
|
|
|
|
|
|
|
51.75
|
|
|
|||||||
DD&A
|
|
|
|
|
|
|
(40.34
|
)
|
|
|||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
(65.80
|
)
|
|
|||||||
Accretion and other costs
|
|
|
|
|
|
|
(1.69
|
)
|
b
|
|||||||
Net noncash mark-to-market gains on derivative contracts
|
|
|
|
|
|
|
11.03
|
|
|
|||||||
Other revenue
|
|
|
|
|
|
|
0.06
|
|
|
|||||||
Gross loss
|
|
|
|
|
|
|
$
|
(44.99
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
||||||||||||||||
(In millions)
|
|
|
|
|
|
|
Impairment of
|
|
||||||||
|
|
|
Production
|
|
|
|
Oil and Gas
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
Properties
|
|
||||||||
Totals presented above
|
$
|
4,202
|
|
|
$
|
1,140
|
|
|
$
|
2,291
|
|
|
$
|
3,737
|
|
|
Cash losses on derivative contracts
|
(122
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net noncash mark-to-market gains on derivative contracts
|
627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Accretion and other costs
|
—
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
||||
Other revenue
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
U.S. oil & gas operations
|
4,710
|
|
|
1,237
|
|
|
2,291
|
|
|
3,737
|
|
|
||||
Total mining
c
|
15,291
|
|
|
9,877
|
|
|
1,330
|
|
|
—
|
|
|
||||
Corporate, other & eliminations
|
—
|
|
|
2
|
|
|
14
|
|
|
—
|
|
|
||||
As reported in FCX's consolidated financial statements
|
$
|
20,001
|
|
|
$
|
11,116
|
|
|
$
|
3,635
|
|
|
$
|
3,737
|
|
|
|
Cash Production Costs
(in millions)
|
|
Oil Equivalents (MMBOE)
|
|
Cash Production Costs Per BOE
|
|
|||||
Presented above
|
$
|
1,140
|
|
|
56.8
|
|
|
$
|
20.08
|
|
|
Less: Eagle Ford
|
113
|
|
|
8.7
|
|
|
$
|
12.97
|
|
|
|
|
$
|
1,027
|
|
|
48.1
|
|
|
$
|
21.36
|
|
|
b.
|
Includes
$46 million
($0.81 per BOE) primarily for idle/terminated rig costs and inventory adjustments.
|
c.
|
Represents the combined total for all mining operations and the related eliminations, as presented in Note
16
.
|
January 1, 2016, through November 16, 2016
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
893
|
|
|
$
|
893
|
|
|
$
|
243
|
|
|
$
|
1,136
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
673
|
|
|
583
|
|
|
172
|
|
|
755
|
|
||||
Cobalt credits
b
|
(165
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
20
|
|
|
16
|
|
|
4
|
|
|
20
|
|
||||
Net cash costs
|
528
|
|
|
599
|
|
|
176
|
|
|
775
|
|
||||
DD&A
|
210
|
|
|
172
|
|
|
38
|
|
|
210
|
|
||||
Noncash and other costs, net
|
21
|
|
|
17
|
|
|
4
|
|
|
21
|
|
||||
Total costs
|
759
|
|
|
788
|
|
|
218
|
|
|
1,006
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(4
|
)
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
||||
Gross profit
|
$
|
130
|
|
|
$
|
101
|
|
|
$
|
29
|
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
424
|
|
|
424
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
33
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.10
|
|
|
$
|
2.10
|
|
|
$
|
7.45
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.58
|
|
|
1.37
|
|
|
5.25
|
|
|
|
|||||
Cobalt credits
b
|
(0.39
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.12
|
|
|
|
|||||
Unit net cash costs
|
1.24
|
|
|
1.41
|
|
|
5.37
|
|
|
|
|||||
DD&A
|
0.50
|
|
|
0.41
|
|
|
1.16
|
|
|
|
|||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.12
|
|
|
|
|||||
Total unit costs
|
1.79
|
|
|
1.86
|
|
|
6.65
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.12
|
|
|
|
|||||
Gross profit per pound
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.92
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
1,136
|
|
|
$
|
755
|
|
|
$
|
210
|
|
|
|
||
Royalty on metals
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
21
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(157
|
)
|
|
57
|
|
|
(130
|
)
|
|
|
|||||
Total
d
|
$
|
959
|
|
|
$
|
833
|
|
|
$
|
80
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with the presentation of Tenke as discontinued operations, including the elimination of intercompany sales to our consolidated subsidiaries and the impact of discontinuing DD&A in May 2016.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net (loss) income from discontinued operations as reported in our consolidated financial statements.
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
1,129
|
|
|
$
|
1,129
|
|
|
$
|
287
|
|
|
$
|
1,416
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
738
|
|
|
639
|
|
|
189
|
|
|
828
|
|
||||
Cobalt credits
b
|
(196
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
25
|
|
|
20
|
|
|
5
|
|
|
25
|
|
||||
Net cash costs
|
567
|
|
|
659
|
|
|
194
|
|
|
853
|
|
||||
DD&A
|
257
|
|
|
213
|
|
|
44
|
|
|
257
|
|
||||
Noncash and other costs, net
|
32
|
|
|
27
|
|
|
5
|
|
|
32
|
|
||||
Total costs
|
856
|
|
|
899
|
|
|
243
|
|
|
1,142
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(6
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(7
|
)
|
||||
Gross profit
|
$
|
267
|
|
|
$
|
224
|
|
|
$
|
43
|
|
|
$
|
267
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
467
|
|
|
467
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
35
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
2.42
|
|
|
$
|
2.42
|
|
|
$
|
8.21
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.58
|
|
|
1.37
|
|
|
5.40
|
|
|
|
|||||
Cobalt credits
b
|
(0.42
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.05
|
|
|
0.04
|
|
|
0.14
|
|
|
|
|||||
Unit net cash costs
|
1.21
|
|
|
1.41
|
|
|
5.54
|
|
|
|
|||||
DD&A
|
0.55
|
|
|
0.46
|
|
|
1.26
|
|
|
|
|||||
Noncash and other costs, net
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
|
|||||
Total unit costs
|
1.83
|
|
|
1.93
|
|
|
6.96
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
|
|||||
Gross profit per pound
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.23
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
1,416
|
|
|
$
|
828
|
|
|
$
|
257
|
|
|
|
||
Royalty on metals
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
32
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(114
|
)
|
|
(8
|
)
|
|
—
|
|
|
|
|||||
Total
d
|
$
|
1,270
|
|
|
$
|
852
|
|
|
$
|
257
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with the presentation of Tenke as discontinued operations, including the elimination of intercompany sales to our consolidated subsidiaries.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net (loss) income from discontinued operations as reported in our consolidated financial statements.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
By-Product
|
|
Co-Product Method
|
||||||||||||
|
Method
|
|
Copper
|
|
Cobalt
|
|
Total
|
||||||||
Revenues, excluding adjustments
a
|
$
|
1,301
|
|
|
$
|
1,301
|
|
|
$
|
285
|
|
|
$
|
1,586
|
|
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
665
|
|
|
591
|
|
|
157
|
|
|
748
|
|
||||
Cobalt credits
b
|
(204
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Royalty on metals
|
29
|
|
|
24
|
|
|
5
|
|
|
29
|
|
||||
Net cash costs
|
490
|
|
|
615
|
|
|
162
|
|
|
777
|
|
||||
DD&A
|
228
|
|
|
195
|
|
|
33
|
|
|
228
|
|
||||
Noncash and other costs, net
|
22
|
|
|
19
|
|
|
3
|
|
|
22
|
|
||||
Total costs
|
740
|
|
|
829
|
|
|
198
|
|
|
1,027
|
|
||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
||||
Gross profit
|
$
|
560
|
|
|
$
|
471
|
|
|
$
|
89
|
|
|
$
|
560
|
|
|
|
|
|
|
|
|
|
||||||||
Copper sales (millions of recoverable pounds)
|
425
|
|
|
425
|
|
|
|
|
|
||||||
Cobalt sales (millions of contained pounds)
|
|
|
|
|
30
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit per pound of copper/cobalt:
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues, excluding adjustments
a
|
$
|
3.06
|
|
|
$
|
3.06
|
|
|
$
|
9.66
|
|
|
|
||
Site production and delivery, before net noncash
|
|
|
|
|
|
|
|
||||||||
and other costs shown below
|
1.56
|
|
|
1.39
|
|
|
5.30
|
|
|
|
|||||
Cobalt credits
b
|
(0.48
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Royalty on metals
|
0.07
|
|
|
0.06
|
|
|
0.16
|
|
|
|
|||||
Unit net cash costs
|
1.15
|
|
|
1.45
|
|
|
5.46
|
|
|
|
|||||
DD&A
|
0.54
|
|
|
0.46
|
|
|
1.13
|
|
|
|
|||||
Noncash and other costs, net
|
0.05
|
|
|
0.04
|
|
|
0.11
|
|
|
|
|||||
Total unit costs
|
1.74
|
|
|
1.95
|
|
|
6.70
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
|
|
|
|
|
|
|
|
||||||||
on prior period open sales
|
—
|
|
|
—
|
|
|
0.07
|
|
|
|
|||||
Gross profit per pound
|
$
|
1.32
|
|
|
$
|
1.11
|
|
|
$
|
3.03
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Amounts Reported
|
|
|
|
|
|
|
|
||||||||
(In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
Production
|
|
|
|
|
||||||||
|
Revenues
|
|
and Delivery
|
|
DD&A
|
|
|
||||||||
Totals presented above
|
$
|
1,586
|
|
|
$
|
748
|
|
|
$
|
228
|
|
|
|
||
Royalty on metals
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
|
|||||
Noncash and other costs, net
|
—
|
|
|
22
|
|
|
—
|
|
|
|
|||||
Revenue adjustments, primarily for pricing
on prior period open sales
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Eliminations and other adjustments
c
|
(121
|
)
|
|
12
|
|
|
—
|
|
|
|
|||||
Total
d
|
$
|
1,437
|
|
|
$
|
782
|
|
|
$
|
228
|
|
|
|
a.
|
Includes point-of-sale transportation costs as negotiated in customer contracts.
|
b.
|
Net of cobalt downstream processing and freight costs.
|
c.
|
Reflects adjustments associated with reporting Tenke as discontinued operations, including the elimination of intercompany sales to our consolidated subsidiaries.
|
d.
|
Refer to Note 2 for a reconciliation of these amounts to net (loss) income from discontinued operations as reported in our consolidated financial statements.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
Richard C. Adkerson
|
|
Kathleen L. Quirk
|
Vice Chairman of the Board,
|
|
Executive Vice President,
|
President and Chief Executive Officer
|
|
Chief Financial Officer and Treasurer
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In millions, except per share amounts)
|
||||||||||
Revenues
|
$
|
14,830
|
|
|
$
|
14,607
|
|
|
$
|
20,001
|
|
Cost of sales:
|
|
|
|
|
|
||||||
Production and delivery
|
10,697
|
|
|
10,693
|
|
|
11,116
|
|
|||
Depreciation, depletion and amortization
|
2,530
|
|
|
3,240
|
|
|
3,635
|
|
|||
Impairment of oil and gas properties
|
4,317
|
|
|
13,144
|
|
|
3,737
|
|
|||
Metals inventory adjustments
|
36
|
|
|
338
|
|
|
6
|
|
|||
Total cost of sales
|
17,580
|
|
|
27,415
|
|
|
18,494
|
|
|||
Selling, general and administrative expenses
|
607
|
|
|
558
|
|
|
580
|
|
|||
Mining exploration and research expenses
|
64
|
|
|
107
|
|
|
106
|
|
|||
Environmental obligations and shutdown costs
|
20
|
|
|
78
|
|
|
119
|
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
1,717
|
|
|||
Net gain on sales of assets
|
(649
|
)
|
|
(39
|
)
|
|
(717
|
)
|
|||
Total costs and expenses
|
17,622
|
|
|
28,119
|
|
|
20,299
|
|
|||
Operating loss
|
(2,792
|
)
|
|
(13,512
|
)
|
|
(298
|
)
|
|||
Interest expense, net
|
(755
|
)
|
|
(617
|
)
|
|
(606
|
)
|
|||
Net gain on exchanges and early extinguishment of debt
|
26
|
|
|
—
|
|
|
73
|
|
|||
Other income, net
|
49
|
|
|
1
|
|
|
31
|
|
|||
Loss from continuing operations before income taxes and equity in affiliated companies' net earnings (losses)
|
(3,472
|
)
|
|
(14,128
|
)
|
|
(800
|
)
|
|||
(Provision for) benefit from income taxes
|
(371
|
)
|
|
1,951
|
|
|
(225
|
)
|
|||
Equity in affiliated companies’ net earnings (losses)
|
11
|
|
|
(3
|
)
|
|
3
|
|
|||
Net loss from continuing operations
|
(3,832
|
)
|
|
(12,180
|
)
|
|
(1,022
|
)
|
|||
Net (loss) income from discontinued operations
|
(193
|
)
|
|
91
|
|
|
277
|
|
|||
Net loss
|
(4,025
|
)
|
|
(12,089
|
)
|
|
(745
|
)
|
|||
Net income attributable to noncontrolling interests:
|
|
|
|
|
|
||||||
Continuing operations
|
(227
|
)
|
|
(27
|
)
|
|
(358
|
)
|
|||
Discontinued operations
|
(63
|
)
|
|
(79
|
)
|
|
(165
|
)
|
|||
Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest
|
161
|
|
|
(41
|
)
|
|
(40
|
)
|
|||
Net loss attributable to common stockholders
|
$
|
(4,154
|
)
|
|
$
|
(12,236
|
)
|
|
$
|
(1,308
|
)
|
|
|
|
|
|
|
||||||
Basic and diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
$
|
(1.37
|
)
|
Discontinued operations
|
(0.20
|
)
|
|
0.01
|
|
|
0.11
|
|
|||
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
$
|
(1.26
|
)
|
|
|
|
|
|
|
||||||
Basic and diluted weighted-average common shares outstanding
|
1,318
|
|
|
1,082
|
|
|
1,039
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared per share of common stock
|
$
|
—
|
|
|
$
|
0.2605
|
|
|
$
|
1.25
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In millions)
|
||||||||||
Net loss
|
$
|
(4,025
|
)
|
|
$
|
(12,089
|
)
|
|
$
|
(745
|
)
|
|
|
|
|
|
|
||||||
Other comprehensive (loss) income, net of taxes:
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
||||||
Actuarial losses arising during the period
|
(88
|
)
|
|
(5
|
)
|
|
(166
|
)
|
|||
Amortization of unrecognized amounts included in net periodic benefit costs
|
44
|
|
|
38
|
|
|
25
|
|
|||
Foreign exchange (losses) gains
|
(1
|
)
|
|
8
|
|
|
1
|
|
|||
Unrealized gains (losses) on securities
|
2
|
|
|
—
|
|
|
(1
|
)
|
|||
Other comprehensive (loss) income
|
(43
|
)
|
|
41
|
|
|
(141
|
)
|
|||
|
|
|
|
|
|
||||||
Total comprehensive loss
|
(4,068
|
)
|
|
(12,048
|
)
|
|
(886
|
)
|
|||
Total comprehensive income attributable to noncontrolling interests
|
(292
|
)
|
|
(106
|
)
|
|
(521
|
)
|
|||
Gain on redemption and preferred dividends attributable to
|
|
|
|
|
|
||||||
redeemable noncontrolling interest
|
161
|
|
|
(41
|
)
|
|
(40
|
)
|
|||
Total comprehensive loss attributable to common stockholders
|
$
|
(4,199
|
)
|
|
$
|
(12,195
|
)
|
|
$
|
(1,447
|
)
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
(In millions)
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
||||||
Net loss
|
|
$
|
(4,025
|
)
|
|
$
|
(12,089
|
)
|
|
$
|
(745
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization
|
|
2,610
|
|
|
3,497
|
|
|
3,863
|
|
|||
Impairment of oil and gas properties and goodwill
|
|
4,317
|
|
|
13,144
|
|
|
5,454
|
|
|||
Non-cash oil and gas drillship settlements
|
|
689
|
|
|
—
|
|
|
—
|
|
|||
Metals inventory adjustments
|
|
36
|
|
|
338
|
|
|
6
|
|
|||
Other asset impairments, oil and gas inventory adjustments, and restructuring
|
|
134
|
|
|
256
|
|
|
18
|
|
|||
Net gain on sales of assets
|
|
(649
|
)
|
|
(39
|
)
|
|
(717
|
)
|
|||
Stock-based compensation
|
|
86
|
|
|
85
|
|
|
106
|
|
|||
Net charges for environmental and asset retirement obligations, including accretion
|
|
191
|
|
|
209
|
|
|
200
|
|
|||
Payments for environmental and asset retirement obligations
|
|
(242
|
)
|
|
(198
|
)
|
|
(176
|
)
|
|||
Net gain on exchanges and early extinguishment of debt
|
|
(26
|
)
|
|
—
|
|
|
(73
|
)
|
|||
Deferred income taxes
|
|
239
|
|
|
(2,039
|
)
|
|
(929
|
)
|
|||
Loss on disposal of discontinued operations
|
|
198
|
|
|
—
|
|
|
—
|
|
|||
Decrease (increase) in long-term mill and leach stockpiles
|
|
10
|
|
|
(212
|
)
|
|
(233
|
)
|
|||
Net loss (gain) on crude oil and natural gas derivative contracts
|
|
35
|
|
|
(87
|
)
|
|
(504
|
)
|
|||
Other, net
|
|
69
|
|
|
(18
|
)
|
|
(7
|
)
|
|||
Changes in working capital and other tax payments, excluding amounts from acquisitions and dispositions:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(175
|
)
|
|
813
|
|
|
215
|
|
|||
Inventories
|
|
117
|
|
|
379
|
|
|
(249
|
)
|
|||
Other current assets
|
|
37
|
|
|
97
|
|
|
—
|
|
|||
Accounts payable and accrued liabilities
|
|
(28
|
)
|
|
(217
|
)
|
|
(394
|
)
|
|||
Accrued income taxes and changes in other tax payments
|
|
106
|
|
|
(699
|
)
|
|
(204
|
)
|
|||
Net cash provided by operating activities
|
|
3,729
|
|
|
3,220
|
|
|
5,631
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
|
||||||
North America copper mines
|
|
(102
|
)
|
|
(355
|
)
|
|
(969
|
)
|
|||
South America
|
|
(382
|
)
|
|
(1,722
|
)
|
|
(1,785
|
)
|
|||
Indonesia
|
|
(1,025
|
)
|
|
(901
|
)
|
|
(935
|
)
|
|||
Molybdenum mines
|
|
(2
|
)
|
|
(13
|
)
|
|
(54
|
)
|
|||
United States oil and gas operations
|
|
(1,127
|
)
|
|
(2,948
|
)
|
|
(3,205
|
)
|
|||
Other
|
|
(175
|
)
|
|
(414
|
)
|
|
(267
|
)
|
|||
Proceeds from sales of:
|
|
|
|
|
|
|
||||||
Tenke Fungurume mine
|
|
2,664
|
|
|
—
|
|
|
—
|
|
|||
Deepwater Gulf of Mexico and onshore California oil and gas properties
|
|
2,272
|
|
|
—
|
|
|
—
|
|
|||
Additional interest in Morenci joint venture
|
|
996
|
|
|
—
|
|
|
—
|
|
|||
Eagle Ford shale assets
|
|
—
|
|
|
—
|
|
|
2,910
|
|
|||
Candelaria and Ojos del Salado mines
|
|
—
|
|
|
—
|
|
|
1,709
|
|
|||
Other assets
|
|
423
|
|
|
160
|
|
|
—
|
|
|||
Acquisitions of Deepwater Gulf of Mexico interests
|
|
—
|
|
|
—
|
|
|
(1,426
|
)
|
|||
Other, net
|
|
8
|
|
|
(53
|
)
|
|
221
|
|
|||
Net cash provided by (used in) investing activities
|
|
3,550
|
|
|
(6,246
|
)
|
|
(3,801
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from debt
|
|
3,681
|
|
|
8,272
|
|
|
8,710
|
|
|||
Repayments of debt
|
|
(7,625
|
)
|
|
(6,677
|
)
|
|
(10,306
|
)
|
|||
Net proceeds from sale of common stock
|
|
1,515
|
|
|
1,936
|
|
|
—
|
|
|||
Cash dividends and distributions paid:
|
|
|
|
|
|
|
||||||
Common stock
|
|
(6
|
)
|
|
(605
|
)
|
|
(1,305
|
)
|
|||
Noncontrolling interests, including redemption
|
|
(693
|
)
|
|
(120
|
)
|
|
(424
|
)
|
|||
Stock-based awards net (payments) proceeds, including excess tax benefit
|
|
(6
|
)
|
|
(4
|
)
|
|
9
|
|
|||
Debt financing costs and other, net
|
|
(32
|
)
|
|
(16
|
)
|
|
(35
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(3,166
|
)
|
|
2,786
|
|
|
(3,351
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
4,113
|
|
|
(240
|
)
|
|
(1,521
|
)
|
|||
(Increase) decrease in cash and cash equivalents in assets held for sale
|
|
(45
|
)
|
|
119
|
|
|
(45
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
177
|
|
|
298
|
|
|
1,864
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
4,245
|
|
|
$
|
177
|
|
|
$
|
298
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In millions, except par value)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,245
|
|
|
$
|
177
|
|
Trade accounts receivable
|
1,126
|
|
|
645
|
|
||
Income and other tax receivables
|
879
|
|
|
1,332
|
|
||
Other accounts receivable
|
89
|
|
|
152
|
|
||
Inventories:
|
|
|
|
||||
Materials and supplies, net
|
1,306
|
|
|
1,575
|
|
||
Mill and leach stockpiles
|
1,338
|
|
|
1,539
|
|
||
Product
|
998
|
|
|
961
|
|
||
Other current assets
|
110
|
|
|
161
|
|
||
Assets held for sale
|
344
|
|
|
920
|
|
||
Total current assets
|
10,435
|
|
|
7,462
|
|
||
Property, plant, equipment and mine development costs, net
|
23,219
|
|
|
23,986
|
|
||
Oil and gas properties, net - full cost method:
|
|
|
|
||||
Subject to amortization, less accumulated amortization and impairment of $27,433 and $22,276, respectively
|
74
|
|
|
2,262
|
|
||
Not subject to amortization
|
—
|
|
|
4,831
|
|
||
Long-term mill and leach stockpiles
|
1,633
|
|
|
1,663
|
|
||
Other assets
|
1,956
|
|
|
1,987
|
|
||
Assets held for sale
|
—
|
|
|
4,386
|
|
||
Total assets
|
$
|
37,317
|
|
|
$
|
46,577
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
2,393
|
|
|
$
|
3,232
|
|
Current portion of debt
|
1,232
|
|
|
649
|
|
||
Current portion of environmental and asset retirement obligations
|
369
|
|
|
272
|
|
||
Accrued income taxes
|
66
|
|
|
23
|
|
||
Liabilities held for sale
|
205
|
|
|
131
|
|
||
Total current liabilities
|
4,265
|
|
|
4,307
|
|
||
Long-term debt, less current portion
|
14,795
|
|
|
19,675
|
|
||
Deferred income taxes
|
3,768
|
|
|
3,567
|
|
||
Environmental and asset retirement obligations, less current portion
|
3,487
|
|
|
3,714
|
|
||
Other liabilities
|
1,745
|
|
|
1,641
|
|
||
Liabilities held for sale
|
—
|
|
|
865
|
|
||
Total liabilities
|
28,060
|
|
|
33,769
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interest
|
—
|
|
|
764
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, par value $0.10, 1,574 shares and 1,374 shares issued, respectively
|
157
|
|
|
137
|
|
||
Capital in excess of par value
|
26,690
|
|
|
24,283
|
|
||
Accumulated deficit
|
(16,540
|
)
|
|
(12,387
|
)
|
||
Accumulated other comprehensive loss
|
(548
|
)
|
|
(503
|
)
|
||
Common stock held in treasury – 129 shares and 128 shares, respectively, at cost
|
(3,708
|
)
|
|
(3,702
|
)
|
||
Total stockholders’ equity
|
6,051
|
|
|
7,828
|
|
||
Noncontrolling interests
|
3,206
|
|
|
4,216
|
|
||
Total equity
|
9,257
|
|
|
12,044
|
|
||
Total liabilities and equity
|
$
|
37,317
|
|
|
$
|
46,577
|
|
|
Stockholders' Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
(Accumulated Deficit) Retained Earnings
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at January 1, 2014
|
1,165
|
|
|
$
|
117
|
|
|
$
|
22,161
|
|
|
$
|
2,742
|
|
|
$
|
(405
|
)
|
|
127
|
|
|
$
|
(3,681
|
)
|
|
$
|
20,934
|
|
|
$
|
4,297
|
|
|
$
|
25,231
|
|
Exercised and issued stock-based awards
|
2
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||||
Stock-based compensation, including tax benefit and the tender of shares
|
—
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(14
|
)
|
|
95
|
|
|
1
|
|
|
96
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306
|
)
|
|
(396
|
)
|
|
(1,702
|
)
|
||||||||
Changes in noncontrolling interests
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
7
|
|
|
6
|
|
||||||||
Sale of Candelaria and Ojos del Salado mines
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(243
|
)
|
|
(243
|
)
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,308
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,308
|
)
|
|
—
|
|
|
(1,308
|
)
|
||||||||
Net income attributable to noncontrolling interests, including discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
523
|
|
|
523
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
(2
|
)
|
|
(141
|
)
|
||||||||
Balance at December 31, 2014
|
1,167
|
|
|
117
|
|
|
22,281
|
|
|
128
|
|
|
(544
|
)
|
|
128
|
|
|
(3,695
|
)
|
|
18,287
|
|
|
4,187
|
|
|
22,474
|
|
||||||||
Sale of common stock
|
206
|
|
|
20
|
|
|
1,916
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,936
|
|
|
—
|
|
|
1,936
|
|
||||||||
Exercised and issued stock-based awards
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Stock-based compensation, including tax reserve and the tender of shares
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
83
|
|
|
7
|
|
|
90
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(279
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(279
|
)
|
|
(91
|
)
|
|
(370
|
)
|
||||||||
Changes in noncontrolling interests
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
—
|
|
||||||||
Net loss attributable to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,236
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,236
|
)
|
|
—
|
|
|
(12,236
|
)
|
||||||||
Net income attributable to noncontrolling interests, including discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106
|
|
|
106
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||||||
Balance at December 31, 2015
|
1,374
|
|
|
$
|
137
|
|
|
$
|
24,283
|
|
|
$
|
(12,387
|
)
|
|
$
|
(503
|
)
|
|
128
|
|
|
$
|
(3,702
|
)
|
|
$
|
7,828
|
|
|
$
|
4,216
|
|
|
$
|
12,044
|
|
|
Stockholders’ Equity
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
|
|
(Accumulated Deficit) Retained Earnings
|
|
Accumu-
lated
Other Compre-hensive
Loss
|
|
Common Stock
Held in Treasury
|
|
Total
Stock-
holders’
Equity
|
|
|
|
|
||||||||||||||||||||||
|
Number
of
Shares
|
|
At Par
Value
|
|
Capital in
Excess of
Par Value
|
|
|
|
Number
of
Shares
|
|
At
Cost
|
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||||
|
(In millions)
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015
|
1,374
|
|
|
$
|
137
|
|
|
$
|
24,283
|
|
|
$
|
(12,387
|
)
|
|
$
|
(503
|
)
|
|
128
|
|
|
$
|
(3,702
|
)
|
|
$
|
7,828
|
|
|
$
|
4,216
|
|
|
$
|
12,044
|
|
Issuance of common stock
|
197
|
|
|
20
|
|
|
2,346
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,366
|
|
|
—
|
|
|
2,366
|
|
||||||||
Exercised and issued stock-based awards
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Stock-based compensation, including tax benefit and the tender of shares
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(6
|
)
|
|
55
|
|
|
—
|
|
|
55
|
|
||||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(90
|
)
|
|
(89
|
)
|
||||||||
Change in noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||||
Sale of interest in TF Holdings Limited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
2
|
|
|
(43
|
)
|
||||||||
Balance at December 31, 2016
|
1,574
|
|
|
$
|
157
|
|
|
$
|
26,690
|
|
|
$
|
(16,540
|
)
|
|
$
|
(548
|
)
|
|
129
|
|
|
$
|
(3,708
|
)
|
|
$
|
6,051
|
|
|
$
|
3,206
|
|
|
$
|
9,257
|
|
•
|
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).
|
Balance at January 1, 2014
|
$
|
1,916
|
|
Purchase accounting adjustments
|
22
|
|
|
Disposal of Eagle Ford shale assets (see Note 2)
|
(221
|
)
|
|
Impairment charge in 2014
|
(1,717
|
)
|
|
Balance at December 31, 2014
|
$
|
—
|
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Net loss from continuing operations
|
$
|
(3,832
|
)
|
|
$
|
(12,180
|
)
|
|
$
|
(1,022
|
)
|
|
Net income from continuing operations attributable to noncontrolling interests
|
(227
|
)
|
|
(27
|
)
|
|
(358
|
)
|
|
|||
Gain on redemption and preferred dividends attributable to redeemable noncontrolling interest
|
161
|
|
|
(41
|
)
|
|
(40
|
)
|
|
|||
Accumulated dividends on participating securities
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
|||
Net loss from continuing operations attributable to common stockholders
|
$
|
(3,901
|
)
|
|
$
|
(12,251
|
)
|
|
$
|
(1,423
|
)
|
|
|
|
|
|
|
|
|
||||||
Net (loss) income from discontinued operations
|
(193
|
)
|
|
91
|
|
|
277
|
|
|
|||
Net income from discontinued operations attributable to noncontrolling interests
|
(63
|
)
|
|
(79
|
)
|
|
(165
|
)
|
|
|||
Net (loss) income from discontinued operations attributable to common stockholders
|
$
|
(256
|
)
|
|
$
|
12
|
|
|
$
|
112
|
|
|
|
|
|
|
|
|
|
||||||
Net loss attributable to common stockholders
|
$
|
(4,157
|
)
|
|
$
|
(12,239
|
)
|
|
$
|
(1,311
|
)
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted weighted-average shares of common stock outstanding (millions)
|
1,318
|
|
a
|
1,082
|
|
a
|
1,039
|
|
a
|
|||
|
|
|
|
|
|
|
||||||
Basic and diluted net (loss) income per share attributable to common stockholders:
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
(2.96
|
)
|
|
$
|
(11.32
|
)
|
|
$
|
(1.37
|
)
|
|
Discontinued operations
|
(0.20
|
)
|
|
0.01
|
|
|
0.11
|
|
|
|||
|
$
|
(3.16
|
)
|
|
$
|
(11.31
|
)
|
|
$
|
(1.26
|
)
|
|
|
|
|
|
|
|
|
a.
|
Excludes approximately
12 million
shares of common stock in
2016
,
9 million
in
2015
and
10 million
in
2014
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.
|
Assets
|
|
|
||
Cash and cash equivalents
|
$
|
29
|
|
|
Inventories
|
584
|
|
|
|
Receivables and other current assets
|
131
|
|
|
|
Total current assets held for sale
|
$
|
744
|
|
a
|
|
|
|
||
Property, plant, equipment and mine development costs, net
|
$
|
3,261
|
|
|
Inventories
|
608
|
|
|
|
Other assets
|
241
|
|
|
|
Total long-term assets held for sale
|
$
|
4,110
|
|
a
|
|
|
|
||
Liabilities
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
108
|
|
|
Total current liabilities held for sale
|
$
|
108
|
|
a
|
|
|
|
||
Deferred income taxes
|
$
|
681
|
|
|
Asset retirement obligations and other liabilities
|
37
|
|
|
|
Total long-term liabilities held for sale
|
$
|
718
|
|
a
|
|
|
|
||
Noncontrolling interests
|
$
|
1,178
|
|
|
a.
|
Amount differs from the totals on FCX's consolidated balance sheets because of other assets held for sale.
|
|
Years Ended December 31,
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|
||||||
Revenues
a
|
$
|
959
|
|
|
$
|
1,270
|
|
|
$
|
1,437
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
||||||
Production and delivery costs
|
833
|
|
|
852
|
|
|
782
|
|
|
|||
Depreciation, depletion and amortization
|
80
|
|
b
|
257
|
|
|
228
|
|
|
|||
Interest expense allocated from parent
c
|
39
|
|
|
28
|
|
|
24
|
|
|
|||
Other costs and expenses, net
|
10
|
|
|
26
|
|
|
27
|
|
|
|||
(Loss) income before income taxes and loss on disposal
|
(3
|
)
|
|
107
|
|
|
376
|
|
|
|||
Loss on disposal
|
(198
|
)
|
d
|
—
|
|
|
—
|
|
|
|||
Net (loss) income before income taxes
|
(201
|
)
|
|
107
|
|
|
376
|
|
|
|||
Benefit from (provision for) income taxes
|
8
|
|
|
(16
|
)
|
|
(99
|
)
|
|
|||
Net (loss) income from discontinued operations
|
$
|
(193
|
)
|
|
$
|
91
|
|
|
$
|
277
|
|
|
a.
|
In accordance with accounting guidance, amounts are net of eliminations of intercompany sales totaling
$157 million
in
2016
,
$114 million
in
2015
and
$121 million
in
2014
.
|
b.
|
In accordance with accounting guidance, depreciation, depletion and amortization is not recognized 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 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.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net cash provided by operating activities
|
$
|
241
|
|
|
$
|
217
|
|
|
$
|
529
|
|
Net cash used in investing activities
|
(73
|
)
|
|
(253
|
)
|
|
(174
|
)
|
|||
Net cash used in financing activities
|
(123
|
)
|
|
(82
|
)
|
|
(285
|
)
|
|||
Increase (decrease) in cash and cash equivalents in assets held for sale
|
$
|
45
|
|
|
$
|
(118
|
)
|
|
$
|
70
|
|
Current assets
|
$
|
482
|
|
Long-term assets
|
1,155
|
|
|
Current liabilities
|
129
|
|
|
Long-term liabilities
|
89
|
|
|
Noncontrolling interests
|
243
|
|
|
December 31,
|
|
||||||
|
2016
|
|
2015
|
|
||||
Current inventories:
|
|
|
|
|
||||
Total materials and supplies, net
a
|
$
|
1,306
|
|
|
$
|
1,575
|
|
|
|
|
|
|
|
||||
Mill stockpiles
|
$
|
259
|
|
|
$
|
137
|
|
|
Leach stockpiles
|
1,079
|
|
|
1,402
|
|
|
||
Total current mill and leach stockpiles
|
$
|
1,338
|
|
|
$
|
1,539
|
|
|
|
|
|
|
|
||||
Raw materials (primarily concentrate)
|
$
|
255
|
|
|
$
|
220
|
|
|
Work-in-process
|
114
|
|
|
108
|
|
|
||
Finished goods
|
629
|
|
|
633
|
|
|
||
Total product inventories
|
$
|
998
|
|
|
$
|
961
|
|
|
|
|
|
|
|
||||
Long-term inventories:
|
|
|
|
|
||||
Mill stockpiles
|
$
|
487
|
|
|
$
|
480
|
|
|
Leach stockpiles
|
1,146
|
|
|
1,183
|
|
|
||
Total long-term inventories
b
|
$
|
1,633
|
|
|
$
|
1,663
|
|
|
a.
|
Materials and supplies inventory was net of obsolescence reserves totaling
$29 million
at
December 31, 2016
, and
$26 million
at
December 31, 2015
.
|
b.
|
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Proven and probable mineral reserves
|
$
|
3,863
|
|
|
$
|
3,880
|
|
VBPP
|
559
|
|
|
559
|
|
||
Mine development and other
|
5,755
|
|
|
4,878
|
|
||
Buildings and infrastructure
|
7,479
|
|
|
6,964
|
|
||
Machinery and equipment
|
11,744
|
|
|
11,558
|
|
||
Mobile equipment
|
3,725
|
|
|
3,843
|
|
||
Construction in progress
|
2,831
|
|
|
3,716
|
|
||
Property, plant, equipment and mine development costs
|
35,956
|
|
|
35,398
|
|
||
Accumulated depreciation, depletion and amortization
|
(12,737
|
)
|
|
(11,412
|
)
|
||
Property, plant, equipment and mine development costs, net
|
$
|
23,219
|
|
|
$
|
23,986
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Disputed tax assessments:
a
|
|
|
|
||||
PT-FI
|
$
|
331
|
|
|
$
|
209
|
|
Cerro Verde
|
277
|
|
|
245
|
|
||
Intangible assets
b
|
305
|
|
|
316
|
|
||
Investments:
|
|
|
|
||||
Assurance bond
c
|
120
|
|
|
118
|
|
||
PT Smelting
d
|
83
|
|
|
112
|
|
||
Available-for-sale securities
|
50
|
|
|
47
|
|
||
Other
|
50
|
|
|
50
|
|
||
Contingent consideration associated with sales of assets
e
|
196
|
|
|
—
|
|
||
Legally restricted funds
f
|
182
|
|
|
171
|
|
||
Long-term receivable for taxes
g
|
129
|
|
|
261
|
|
||
Rio Tinto's share of ARO
|
71
|
|
|
49
|
|
||
Long-lead equipment
|
17
|
|
|
187
|
|
||
Deferred drillship costs
|
—
|
|
|
81
|
|
||
Other
|
145
|
|
|
141
|
|
||
Total other assets
|
$
|
1,956
|
|
|
$
|
1,987
|
|
a.
|
Refer to Note
12
for further discussion.
|
b.
|
Intangible assets were net of accumulated amortization totaling
$37 million
at
December 31, 2016
, and
$61 million
at
December 31, 2015
.
|
c.
|
Relates to PT-FI's commitment for smelter development in Indonesia (refer to Note
13
for further discussion).
|
d.
|
FCX'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
$39 million
at
December 31, 2016
, and
$14 million
at
December 31, 2015
. Trade accounts receivable from PT Smelting totaled
$283 million
at
December 31, 2016
, and
$160 million
at
December 31, 2015
.
|
e.
|
Refer to Note 2 for further discussion.
|
f.
|
Includes
$173 million
at
December 31, 2016
, and
$169 million
at
December 31, 2015
, held in trusts for AROs related to properties in New Mexico (refer to Note
12
for further discussion).
|
g.
|
Includes tax overpayments and refunds not expected to be realized within the next 12 months (primarily at PT-FI and Cerro Verde).
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Accounts payable
|
$
|
1,540
|
|
|
$
|
2,251
|
|
Salaries, wages and other compensation
|
225
|
|
|
212
|
|
||
Accrued interest
a
|
129
|
|
|
165
|
|
||
Accrued taxes, other than income taxes
|
90
|
|
|
201
|
|
||
Deferred revenue
|
82
|
|
|
41
|
|
||
Pension, postretirement, postemployment and other employee benefits
b
|
76
|
|
|
125
|
|
||
Accrued mining royalties
|
46
|
|
|
33
|
|
||
Oil and gas royalty and revenue payable
|
37
|
|
|
53
|
|
||
Other
|
168
|
|
|
151
|
|
||
Total accounts payable and accrued liabilities
|
$
|
2,393
|
|
|
$
|
3,232
|
|
a.
|
Third-party interest paid, net of capitalized interest, was
$743 million
in
2016
,
$570 million
in
2015
and
$637 million
(including
$3 million
for discontinued operations) in
2014
.
|
b.
|
Refer to Note
9
for long-term portion.
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Bank term loan
|
$
|
—
|
|
|
$
|
3,032
|
|
Revolving credit facility
|
—
|
|
|
—
|
|
||
Lines of credit
|
—
|
|
|
442
|
|
||
Cerro Verde credit facility
|
1,390
|
|
|
1,781
|
|
||
Cerro Verde shareholder loans
|
261
|
|
|
259
|
|
||
Senior notes and debentures:
|
|
|
|
||||
Issued by FCX:
|
|
|
|
||||
2.15% Senior Notes due 2017
|
500
|
|
|
499
|
|
||
2.30% Senior Notes due 2017
|
728
|
|
|
747
|
|
||
2.375% Senior Notes due 2018
|
1,480
|
|
|
1,495
|
|
||
6.125% Senior Notes due 2019
|
186
|
|
|
—
|
|
||
3.100% Senior Notes due 2020
|
996
|
|
|
995
|
|
||
6½% Senior Notes due 2020
|
583
|
|
|
—
|
|
||
6.625% Senior Notes due 2021
|
242
|
|
|
—
|
|
||
4.00% Senior Notes due 2021
|
595
|
|
|
594
|
|
||
6.75% Senior Notes due 2022
|
432
|
|
|
—
|
|
||
3.55% Senior Notes due 2022
|
1,882
|
|
|
1,987
|
|
||
6
7
/
8
% Senior Notes due 2023
|
784
|
|
|
—
|
|
||
3.875% Senior Notes due 2023
|
1,912
|
|
|
1,987
|
|
||
4.55% Senior Notes due 2024
|
844
|
|
|
843
|
|
||
5.40% Senior Notes due 2034
|
739
|
|
|
788
|
|
||
5.450% Senior Notes due 2043
|
1,842
|
|
|
1,973
|
|
||
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC):
|
|
|
|
||||
6.125% Senior Notes due 2019
|
60
|
|
|
251
|
|
||
6½% Senior Notes due 2020
|
69
|
|
|
662
|
|
||
6.625% Senior Notes due 2021
|
35
|
|
|
281
|
|
||
6.75% Senior Notes due 2022
|
48
|
|
|
488
|
|
||
6
7
/
8
% Senior Notes due 2023
|
55
|
|
|
857
|
|
||
Issued by FMC:
|
|
|
|
||||
7
1
/
8
% Debentures due 2027
|
115
|
|
|
115
|
|
||
9½% Senior Notes due 2031
|
128
|
|
|
128
|
|
||
6
1
/
8
% Senior Notes due 2034
|
116
|
|
|
116
|
|
||
Other
|
5
|
|
|
4
|
|
||
Total debt
|
16,027
|
|
|
20,324
|
|
||
Less current portion of debt
|
(1,232
|
)
|
|
(649
|
)
|
||
Long-term debt
|
$
|
14,795
|
|
|
$
|
19,675
|
|
|
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
|
|
Date
|
3.55% Senior Notes due 2022
|
|
December 1, 2021
|
3.875% Senior Notes due 2023
|
|
December 15, 2022
|
4.55% Senior Notes due 2024
|
|
August 14, 2024
|
5.40% Senior Notes due 2034
|
|
May 14, 2034
|
5.450% Senior Notes due 2043
|
|
September 15, 2042
|
|
Principal Amount
|
|
Discounts/Deferred Debt Issuance Costs
|
|
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
|
|
|
Principal Amount
|
|
Purchase Accounting Fair- Value Adjustments
|
|
Book Value
|
|
Redemption Value
|
|
Gain (Loss)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
1.40% Senior Notes due 2015
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
501
|
|
|
$
|
(1
|
)
|
6.125% Senior Notes due 2019
|
513
|
|
|
40
|
|
|
553
|
|
|
555
|
|
|
(2
|
)
|
|||||
8.625% Senior Notes due 2019
|
400
|
|
|
41
|
|
|
441
|
|
|
417
|
|
|
24
|
|
|||||
7.625% Senior Notes due 2020
|
300
|
|
|
32
|
|
|
332
|
|
|
318
|
|
|
14
|
|
|||||
6½% Senior Notes due 2020
|
883
|
|
|
79
|
|
|
962
|
|
|
952
|
|
|
10
|
|
|||||
6.625% Senior Notes due 2021
|
339
|
|
|
31
|
|
|
370
|
|
|
367
|
|
|
3
|
|
|||||
6.75% Senior Notes due 2022
|
551
|
|
|
57
|
|
|
608
|
|
|
600
|
|
|
8
|
|
|||||
6
7
/
8
% Senior Notes due 2023
|
722
|
|
|
84
|
|
|
806
|
|
|
785
|
|
|
21
|
|
|||||
|
$
|
4,208
|
|
|
$
|
364
|
|
|
$
|
4,572
|
|
|
$
|
4,495
|
|
|
$
|
77
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Pension, postretirement, postemployment and other employment benefits
a
|
$
|
1,345
|
|
|
$
|
1,260
|
|
Provision for tax positions
|
167
|
|
|
152
|
|
||
Legal matters
|
77
|
|
|
77
|
|
||
Insurance claim reserves
|
51
|
|
|
59
|
|
||
Accrued oil and gas contract commitments
|
43
|
|
|
—
|
|
||
Other
|
62
|
|
|
93
|
|
||
Total other liabilities
|
$
|
1,745
|
|
|
$
|
1,641
|
|
a.
|
Refer to Note
7
for current portion.
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Projected benefit obligation
|
$
|
2,127
|
|
|
$
|
2,139
|
|
Accumulated benefit obligation
|
2,014
|
|
|
2,037
|
|
||
Fair value of plan assets
|
1,312
|
|
|
1,399
|
|
|
FCX
|
|
PT-FI
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning
|
|
|
|
|
|
|
|
||||||||
of year
|
$
|
2,104
|
|
|
$
|
2,179
|
|
|
$
|
318
|
|
|
$
|
318
|
|
Service cost
|
27
|
|
|
36
|
|
|
27
|
|
|
26
|
|
||||
Interest cost
|
93
|
|
|
87
|
|
|
29
|
|
|
23
|
|
||||
Actuarial losses (gains)
|
92
|
|
|
(118
|
)
|
|
2
|
|
|
(7
|
)
|
||||
Foreign exchange (gains) losses
|
(4
|
)
|
|
(2
|
)
|
|
8
|
|
|
(32
|
)
|
||||
Special retirement benefits
a
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(177
|
)
|
|
(100
|
)
|
|
(10
|
)
|
|
(10
|
)
|
||||
Benefit obligation at end of year
|
2,135
|
|
|
2,104
|
|
|
374
|
|
|
318
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at
|
|
|
|
|
|
|
|
||||||||
beginning of year
|
1,379
|
|
|
1,416
|
|
|
204
|
|
|
185
|
|
||||
Actual return on plan assets
|
88
|
|
|
(26
|
)
|
|
47
|
|
|
6
|
|
||||
Employer contributions
b
|
42
|
|
|
90
|
|
|
38
|
|
|
42
|
|
||||
Foreign exchange (losses) gains
|
(3
|
)
|
|
(1
|
)
|
|
5
|
|
|
(19
|
)
|
||||
Benefits paid
|
(177
|
)
|
|
(100
|
)
|
|
(10
|
)
|
|
(10
|
)
|
||||
Fair value of plan assets at end
|
|
|
|
|
|
|
|
||||||||
of year
|
1,329
|
|
|
1,379
|
|
|
284
|
|
|
204
|
|
||||
Funded status
|
$
|
(806
|
)
|
|
$
|
(725
|
)
|
|
$
|
(90
|
)
|
|
$
|
(114
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligation
|
$
|
2,022
|
|
|
$
|
2,001
|
|
|
$
|
225
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average assumptions
|
|
|
|
|
|
|
|
||||||||
used to determine benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
4.40
|
%
|
|
4.60
|
%
|
|
8.25
|
%
|
|
9.00
|
%
|
||||
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
8.00
|
%
|
|
9.40
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification of
|
|
|
|
|
|
|
|
||||||||
funded status:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payable and
|
|
|
|
|
|
|
|
||||||||
accrued liabilities
|
(4
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
||||
Other liabilities
|
(811
|
)
|
|
(698
|
)
|
|
(90
|
)
|
|
(114
|
)
|
||||
Total
|
$
|
(806
|
)
|
|
$
|
(725
|
)
|
|
$
|
(90
|
)
|
|
$
|
(114
|
)
|
a.
|
Resulted from the 2015 revised mine operating plans and reductions in the workforce (refer to Note 5 for further discussion).
|
b.
|
Employer contributions for
2017
are expected to approximate
$140 million
for the FCX plans and
$32 million
for the PT-FI plan (based on a
December 31, 2016
, exchange rate of
13,369
Indonesian rupiah to one U.S. dollar).
|
|
2016
|
|
2015
|
|
2014
|
||||||
Weighted-average assumptions:
a
|
|
|
|
|
|
||||||
Discount rate
|
4.60
|
%
|
|
4.10
|
%
|
|
5.00
|
%
|
|||
Expected return on plan assets
|
7.25
|
%
|
|
7.25
|
%
|
|
7.50
|
%
|
|||
Rate of compensation increase
|
3.25
|
%
|
|
3.25
|
%
|
|
3.75
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
27
|
|
|
$
|
36
|
|
|
$
|
30
|
|
Interest cost
|
93
|
|
|
87
|
|
|
92
|
|
|||
Expected return on plan assets
|
(96
|
)
|
|
(102
|
)
|
|
(98
|
)
|
|||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Amortization of net actuarial losses
|
42
|
|
|
45
|
|
|
28
|
|
|||
Special retirement benefits
|
—
|
|
|
22
|
|
|
—
|
|
|||
Net periodic benefit cost
|
$
|
66
|
|
|
$
|
88
|
|
|
$
|
51
|
|
a.
|
The assumptions shown relate only to the FMC plans.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Weighted-average assumptions:
|
|
|
|
|
|
||||||
Discount rate
|
9.00
|
%
|
|
8.25
|
%
|
|
9.00
|
%
|
|||
Expected return on plan assets
|
7.75
|
%
|
|
7.75
|
%
|
|
7.75
|
%
|
|||
Rate of compensation increase
|
9.40
|
%
|
|
9.00
|
%
|
|
9.00
|
%
|
|||
|
|
|
|
|
|
||||||
Service cost
|
$
|
27
|
|
|
$
|
26
|
|
|
$
|
22
|
|
Interest cost
|
29
|
|
|
23
|
|
|
23
|
|
|||
Expected return on plan assets
|
(17
|
)
|
|
(14
|
)
|
|
(10
|
)
|
|||
Amortization of prior service cost
|
3
|
|
|
3
|
|
|
3
|
|
|||
Amortization of net actuarial loss
|
5
|
|
|
6
|
|
|
8
|
|
|||
Net periodic benefit cost
|
$
|
47
|
|
|
$
|
44
|
|
|
$
|
46
|
|
|
2016
|
|
2015
|
||||||||||||
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
|
Before Taxes
|
|
After Taxes and Noncontrolling Interests
|
||||||||
Net actuarial loss
|
$
|
722
|
|
|
$
|
466
|
|
|
$
|
697
|
|
|
$
|
426
|
|
Prior service costs
|
21
|
|
|
11
|
|
|
23
|
|
|
12
|
|
||||
|
$
|
743
|
|
|
$
|
477
|
|
|
$
|
720
|
|
|
$
|
438
|
|
|
Fair Value at December 31, 2016
|
||||||||||||||||||
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Global equity
|
$
|
420
|
|
|
$
|
420
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
129
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Global fixed income securities
|
107
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate property
|
72
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Emerging markets equity
|
66
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. small-cap equity
|
60
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International small-cap equity
|
51
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. real estate securities
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term investments
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Fixed income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Government bonds
|
160
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|
—
|
|
|||||
Corporate bonds
|
141
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
—
|
|
|||||
Private equity investments
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
36
|
|
|
—
|
|
|
1
|
|
|
35
|
|
|
—
|
|
|||||
Total investments
|
1,326
|
|
|
$
|
989
|
|
|
$
|
1
|
|
|
$
|
336
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and receivables
|
4
|
|
|
|
|
|
|
|
|
|
|||||||||
Payables
|
(1
|
)
|
|
|
|
|
|
|
|
|
|||||||||
Total pension plan net assets
|
$
|
1,329
|
|
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2015
|
||||||||||||||||||
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Commingled/collective funds:
|
|
|
|
|
|
|
|
|
|
||||||||||
Global equity
|
$
|
399
|
|
|
$
|
399
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed income securities
|
129
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Global fixed income securities
|
101
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate property
|
66
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Emerging markets equity
|
60
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. small-cap equity
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
International small-cap equity
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
U.S. real estate securities
|
55
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Short-term investments
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Fixed income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Government bonds
|
215
|
|
|
—
|
|
|
—
|
|
|
215
|
|
|
—
|
|
|||||
Corporate bonds
|
145
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|||||
Private equity investments
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
39
|
|
|
—
|
|
|
1
|
|
|
38
|
|
|
—
|
|
|||||
Total investments
|
1,377
|
|
|
$
|
978
|
|
|
$
|
1
|
|
|
$
|
398
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and receivables
|
6
|
|
|
|
|
|
|
|
|
|
|||||||||
Payables
|
(4
|
)
|
|
|
|
|
|
|
|
|
|||||||||
Total pension plan net assets
|
$
|
1,379
|
|
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2016
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Government bonds
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stocks
|
72
|
|
|
72
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
166
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
119
|
|
|
|
|
|
|
|
|||||||
Payables
|
(1
|
)
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
284
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2015
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Common stocks
|
$
|
43
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government bonds
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
96
|
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and receivables
a
|
108
|
|
|
|
|
|
|
|
|||||||
Total pension plan net assets
|
$
|
204
|
|
|
|
|
|
|
|
a.
|
Cash consists primarily of short-term time deposits.
|
|
FCX
|
|
PT-FI
a
|
||||
2017
|
$
|
109
|
|
|
$
|
29
|
|
2018
|
146
|
|
|
16
|
|
||
2019
|
113
|
|
|
30
|
|
||
2020
|
115
|
|
|
38
|
|
||
2021
|
117
|
|
|
40
|
|
||
2022 through 2026
|
623
|
|
|
292
|
|
a.
|
Based on a
December 31, 2016
, exchange rate of
13,369
Indonesian rupiah to one U.S. dollar.
|
|
Defined Benefit Plans
|
|
Unrealized Losses on Securities
|
|
Translation Adjustment
|
|
Total
|
||||||||
Balance at January 1, 2014
|
$
|
(410
|
)
|
|
$
|
(5
|
)
|
|
$
|
10
|
|
|
$
|
(405
|
)
|
Amounts arising during the period
a,b
|
(162
|
)
|
|
(1
|
)
|
|
—
|
|
|
(163
|
)
|
||||
Amounts reclassified
c
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||
Balance at December 31, 2014
|
(548
|
)
|
|
(6
|
)
|
|
10
|
|
|
(544
|
)
|
||||
Amounts arising during the period
a,b
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Amounts reclassified
c
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
||||
Balance at December 31, 2015
|
(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
|
)
|
a.
|
Includes net actuarial losses, net of noncontrolling interest, totaling
$252 million
for
2014
,
$7 million
for
2015
and
$79 million
for
2016
.
|
b.
|
Includes tax benefits (provision) totaling
$89 million
for
2014
,
$2 million
for
2015
and
$(11) million
for
2016
.
|
c.
|
Includes amortization primarily related to actuarial losses, net of taxes, of
$14 million
for
2014
,
$16 million
for
2015
and
$4 million
for
2016
.
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Selling, general and administrative expenses
|
|
$
|
69
|
|
|
$
|
67
|
|
|
$
|
79
|
|
Production and delivery
|
|
16
|
|
|
17
|
|
|
26
|
|
|||
Capitalized costs
|
|
4
|
|
|
11
|
|
|
23
|
|
|||
Total stock-based compensation
|
|
89
|
|
|
95
|
|
|
128
|
|
|||
Less capitalized costs
|
|
(4
|
)
|
|
(11
|
)
|
|
(23
|
)
|
|||
Tax benefit and noncontrolling interests' share
|
|
(3
|
)
|
a
|
(31
|
)
|
|
(41
|
)
|
|||
Impact on net loss from continuing operations
|
|
$
|
82
|
|
|
$
|
53
|
|
|
$
|
64
|
|
|
Number of
Options and SARs
|
|
Weighted-
Average
Exercise Price
Per Share
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
|
|
|||||
Balance at January 1
|
49,303,879
|
|
|
$
|
34.10
|
|
|
|
|
|
|
||
Granted
|
7,167,000
|
|
|
4.35
|
|
|
|
|
|
|
|||
Exercised
|
(14,750
|
)
|
|
12.12
|
|
|
|
|
|
|
|||
Expired/Forfeited
|
(2,661,894
|
)
|
|
31.80
|
|
|
|
|
|
|
|||
Balance at December 31
|
53,794,235
|
|
|
30.25
|
|
|
4.6
|
|
$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and exercisable at December 31
|
44,314,195
|
|
|
34.20
|
|
|
3.8
|
|
$
|
14
|
|
|
|
Number of Awards
|
|
Weighted-Average Grant-Date Fair Value Per Award
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
7,220,300
|
|
|
$
|
27.12
|
|
|
|
||
Granted
|
3,557,366
|
|
a
|
10.46
|
|
|
|
|||
Vested
|
(3,042,860
|
)
|
|
28.81
|
|
|
|
|||
Forfeited
|
(516,579
|
)
|
|
25.91
|
|
|
|
|||
Balance at December 31
|
7,218,227
|
|
|
18.08
|
|
|
$
|
95
|
|
|
Number of Awards
|
|
Weighted-Average Grant-Date Fair Value Per Award
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance at January 1
|
4,612,536
|
|
|
$
|
24.89
|
|
|
|
||
Granted
|
676,000
|
|
|
6.05
|
|
|
|
|||
Vested
|
(2,148,558
|
)
|
|
25.83
|
|
|
|
|||
Forfeited
|
(608,234
|
)
|
|
23.92
|
|
|
|
|||
Balance at December 31
|
2,531,744
|
|
|
19.30
|
|
|
$
|
33
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
FCX shares tendered to pay the exercise price
|
|
|
|
|
|
||||||
and/or the minimum required taxes
a
|
906,120
|
|
|
349,122
|
|
|
474,480
|
|
|||
Cash received from stock option exercises
|
$
|
—
|
|
b
|
$
|
3
|
|
|
$
|
12
|
|
Actual tax benefit realized for tax deductions
|
$
|
—
|
|
b
|
$
|
11
|
|
|
$
|
16
|
|
Amounts FCX paid for employee taxes
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
8
|
|
a.
|
Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender FCX shares to pay the exercise price and/or the minimum required taxes.
|
b.
|
Rounds to less than $1 million.
|
|
2016
|
|
2015
|
|
2014
|
||||||
U.S.
|
$
|
(5,179
|
)
|
|
$
|
(14,589
|
)
|
|
$
|
(2,973
|
)
|
Foreign
|
1,707
|
|
|
461
|
|
|
2,173
|
|
|||
Total
|
$
|
(3,472
|
)
|
|
$
|
(14,128
|
)
|
|
$
|
(800
|
)
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Current income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
$
|
164
|
|
|
$
|
89
|
|
|
$
|
(269
|
)
|
|
State
|
17
|
|
|
2
|
|
|
(34
|
)
|
|
|||
Foreign
|
(352
|
)
|
|
(160
|
)
|
|
(1,066
|
)
|
|
|||
Total current
|
(171
|
)
|
|
(69
|
)
|
|
(1,369
|
)
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred income taxes:
|
|
|
|
|
|
|
||||||
Federal
|
137
|
|
|
3,403
|
|
|
616
|
|
|
|||
State
|
41
|
|
|
154
|
|
|
214
|
|
|
|||
Foreign
|
(451
|
)
|
|
(163
|
)
|
|
(19
|
)
|
|
|||
Total deferred
|
(273
|
)
|
|
3,394
|
|
|
811
|
|
|
|||
|
|
|
|
|
|
|
||||||
Adjustments
|
13
|
|
a
|
(1,374
|
)
|
b
|
—
|
|
|
|||
Operating loss carryforwards
|
60
|
|
c
|
—
|
|
|
333
|
|
c
|
|||
(Provision for) benefit from income taxes
|
$
|
(371
|
)
|
|
$
|
1,951
|
|
|
$
|
(225
|
)
|
|
|
|
|
|
|
|
|
a.
|
Benefit related to changes in Peruvian tax rules.
|
b.
|
Adjustments include net provisions of
$1.2 billion
associated with an increase in the beginning of the year valuation allowance related to the impairment of U.S. oil and gas properties and
$0.2 billion
resulting from the termination of PT-FI's Delaware domestication.
|
c.
|
Benefit from the use of operating loss carryforwards.
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
U.S. federal statutory tax rate
|
$
|
1,215
|
|
|
(35
|
)%
|
|
$
|
4,945
|
|
|
(35
|
)%
|
|
$
|
280
|
|
|
(35
|
)%
|
Valuation allowance, net
|
(1,680
|
)
|
a
|
48
|
|
|
(2,955
|
)
|
a
|
21
|
|
|
—
|
|
|
—
|
|
|||
Foreign tax credit limitation
|
(598
|
)
|
|
17
|
|
|
(228
|
)
|
|
2
|
|
|
(136
|
)
|
|
17
|
|
|||
Impairment of oil and gas properties
|
520
|
b
|
(15
|
)
|
|
0
|
|
—
|
|
|
0
|
|
—
|
|
||||||
Percentage depletion
|
211
|
|
|
(6
|
)
|
|
186
|
|
|
(1
|
)
|
|
263
|
|
c
|
(33
|
)
|
|||
Withholding and other impacts on
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
foreign earnings
|
(93
|
)
|
|
3
|
|
|
(193
|
)
|
|
1
|
|
|
(161
|
)
|
|
20
|
|
|||
Effect of foreign rates different than the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
federal statutory rate
|
45
|
|
|
(1
|
)
|
|
12
|
|
|
—
|
|
|
69
|
|
|
(9
|
)
|
|||
Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(601
|
)
|
|
75
|
|
|||
Goodwill transferred to full cost pool
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
10
|
|
|||
State income taxes
|
46
|
|
a
|
(1
|
)
|
|
105
|
|
a
|
(1
|
)
|
|
116
|
|
|
(14
|
)
|
|||
Other items, net
|
(37
|
)
|
|
1
|
|
|
79
|
|
|
(1
|
)
|
|
22
|
|
|
(3
|
)
|
|||
(Provision for) benefit from income taxes
|
$
|
(371
|
)
|
d
|
11
|
%
|
|
$
|
1,951
|
|
|
(14
|
)%
|
|
$
|
(225
|
)
|
e,f
|
28
|
%
|
a.
|
Includes tax charges totaling
$1.6 billion
in 2016 and
$3.3 billion
in 2015 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.
|
b.
|
Reflects a loss under U.S. federal income tax law related to the impairment of investments in oil and gas properties.
|
c.
|
Includes a net tax charge of
$16 million
in 2014 related to a change in U.S. federal income tax law.
|
d.
|
Includes a net tax benefit related to changes in Peruvian tax rules of
$13 million
.
|
e.
|
Includes a net tax charge of
$221 million
related to the sale of the Candelaria and Ojos del Salado mines.
|
f.
|
Includes tax charges related to changes in Chilean and Peruvian tax rules of
$54 million
and
$24 million
, respectively.
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
||||
Foreign tax credits
|
$
|
2,094
|
|
|
$
|
1,552
|
|
Accrued expenses
|
923
|
|
|
1,167
|
|
||
Oil and gas properties
|
346
|
|
|
1,422
|
|
||
Minimum tax credits
|
444
|
|
|
569
|
|
||
Net operating loss carryforwards
|
2,898
|
|
|
621
|
|
||
Employee benefit plans
|
403
|
|
|
442
|
|
||
Other
|
485
|
|
|
478
|
|
||
Deferred tax assets
|
7,593
|
|
|
6,251
|
|
||
Valuation allowances
|
(6,058
|
)
|
|
(4,183
|
)
|
||
Net deferred tax assets
|
1,535
|
|
|
2,068
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant, equipment and mine development costs
|
(4,326
|
)
|
|
(4,765
|
)
|
||
Undistributed earnings
|
(779
|
)
|
|
(852
|
)
|
||
Other
|
(195
|
)
|
|
(55
|
)
|
||
Total deferred tax liabilities
|
(5,300
|
)
|
|
(5,672
|
)
|
||
Net deferred tax liabilities
|
$
|
(3,765
|
)
|
|
$
|
(3,604
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
$
|
110
|
|
|
$
|
104
|
|
|
$
|
110
|
|
Additions:
|
|
|
|
|
|
||||||
Prior year tax positions
|
5
|
|
|
7
|
|
|
4
|
|
|||
Current year tax positions
|
28
|
|
|
11
|
|
|
11
|
|
|||
Decreases:
|
|
|
|
|
|
||||||
Prior year tax positions
|
(3
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|||
Settlements with taxing authorities
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||
Lapse of statute of limitations
|
(39
|
)
|
|
(6
|
)
|
|
—
|
|
|||
Balance at end of year
|
$
|
101
|
|
|
$
|
110
|
|
|
$
|
104
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
$
|
1,215
|
|
|
$
|
1,174
|
|
|
$
|
1,167
|
|
Accretion expense
a
|
81
|
|
|
78
|
|
|
77
|
|
|||
Additions
|
26
|
|
|
33
|
|
|
16
|
|
|||
Reductions
b
|
(43
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|||
Spending
|
(58
|
)
|
|
(67
|
)
|
|
(80
|
)
|
|||
Balance at end of year
|
1,221
|
|
|
1,215
|
|
|
1,174
|
|
|||
Less current portion
|
(129
|
)
|
|
(100
|
)
|
|
(105
|
)
|
|||
Long-term portion
|
$
|
1,092
|
|
|
$
|
1,115
|
|
|
$
|
1,069
|
|
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.
|
Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments.
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Balance at beginning of year
|
$
|
2,771
|
|
|
$
|
2,744
|
|
|
$
|
2,316
|
|
|
Liabilities incurred
|
12
|
|
|
97
|
|
|
429
|
|
a
|
|||
Settlements and revisions to cash flow estimates, net
|
529
|
|
b
|
(66
|
)
|
|
56
|
|
|
|||
Accretion expense
|
137
|
|
|
131
|
|
|
116
|
|
|
|||
Dispositions
|
(626
|
)
|
c
|
—
|
|
|
(61
|
)
|
|
|||
Spending
|
(188
|
)
|
|
(132
|
)
|
|
(101
|
)
|
|
|||
Other
|
—
|
|
|
(3
|
)
|
|
(11
|
)
|
|
|||
Balance at end of year
|
2,635
|
|
|
2,771
|
|
|
2,744
|
|
|
|||
Less current portion
|
(240
|
)
|
|
(172
|
)
|
|
(189
|
)
|
|
|||
Long-term portion
|
$
|
2,395
|
|
|
$
|
2,599
|
|
|
$
|
2,555
|
|
|
a.
|
Primarily reflects updates to the closure approach to reclaim an overburden stockpile in Indonesia.
|
b.
|
Revisions to cash flow estimates were primarily related to revised estimates for an overburden stockpile in Indonesia and at certain oil and gas properties.
|
c.
|
Primarily reflects the sale of certain oil and gas properties.
|
Tax Year
|
|
Tax Assessment
|
|
Penalty and Interest Assessment
|
|
Total
|
|
||||||
2002 to 2005
|
|
$
|
16
|
|
|
$
|
51
|
|
|
$
|
67
|
|
|
2006
|
|
7
|
|
|
49
|
|
|
56
|
|
|
|||
2007
|
|
12
|
|
|
18
|
|
|
30
|
|
|
|||
2008
|
|
21
|
|
|
13
|
|
|
34
|
|
|
|||
2009
|
|
56
|
|
|
48
|
|
|
104
|
|
|
|||
2010
|
|
66
|
|
|
98
|
|
|
164
|
|
|
|||
2011, 2014 to 2016
|
|
22
|
|
|
3
|
|
|
25
|
|
|
|||
|
|
$
|
200
|
|
|
$
|
280
|
|
|
$
|
480
|
|
|
Tax Year
|
|
Tax Assessment
|
|
Interest Assessment
|
|
Total
|
||||||
2005
|
|
$
|
103
|
|
|
$
|
49
|
|
|
$
|
152
|
|
2006
|
|
22
|
|
|
10
|
|
|
32
|
|
|||
2007
|
|
91
|
|
|
44
|
|
|
135
|
|
|||
2008
|
|
62
|
|
|
52
|
|
|
114
|
|
|||
2011
|
|
78
|
|
|
13
|
|
|
91
|
|
|||
2012
|
|
123
|
|
|
—
|
|
|
123
|
|
|||
2014
|
|
152
|
|
|
—
|
|
|
152
|
|
|||
|
|
$
|
631
|
|
|
$
|
168
|
|
|
$
|
799
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Copper futures and swap contracts:
|
|
|
|
|
|
||||||
Unrealized gains (losses):
|
|
|
|
|
|
||||||
Derivative financial instruments
|
$
|
16
|
|
|
$
|
(3
|
)
|
|
$
|
(12
|
)
|
Hedged item – firm sales commitments
|
(16
|
)
|
|
3
|
|
|
12
|
|
|||
|
|
|
|
|
|
||||||
Realized gains (losses):
|
|
|
|
|
|
||||||
Matured derivative financial instruments
|
1
|
|
|
(34
|
)
|
|
(9
|
)
|
|
Open
|
|
Average Price
Per Unit
|
|
Maturities
|
|||||||
|
Positions
|
|
Contract
|
|
Market
|
|
Through
|
|||||
Embedded derivatives in provisional sales contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
698
|
|
|
$
|
2.36
|
|
|
$
|
2.51
|
|
|
June 2017
|
Gold (thousands of ounces)
|
207
|
|
|
1,195
|
|
|
1,161
|
|
|
March 2017
|
||
Embedded derivatives in provisional purchase contracts:
|
|
|
|
|
|
|
|
|||||
Copper (millions of pounds)
|
140
|
|
|
2.37
|
|
|
2.51
|
|
|
April 2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
|||||||
sales contracts
a
|
$
|
266
|
|
|
$
|
(406
|
)
|
|
$
|
(280
|
)
|
|
Crude oil options and swaps
a
|
(35
|
)
|
|
87
|
|
|
513
|
|
||||
Natural gas swaps
a
|
—
|
|
|
—
|
|
—
|
|
(8
|
)
|
|||
Copper forward contracts
b
|
5
|
|
|
(15
|
)
|
|
(4
|
)
|
a.
|
Amounts recorded in revenues.
|
b.
|
Amounts recorded in cost of sales as production and delivery costs.
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Commodity Derivative Assets:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
|
$
|
9
|
|
|
$
|
1
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
|
|
||
sales/purchase contracts
|
137
|
|
|
19
|
|
||
Total derivative assets
|
$
|
146
|
|
|
$
|
20
|
|
Commodity Derivative Liabilities:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Copper futures and swap contracts
|
$
|
2
|
|
|
$
|
11
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Embedded derivatives in provisional copper and gold
|
|
|
|
||||
sales/purchase contracts
|
56
|
|
|
81
|
|
||
Total derivative liabilities
|
$
|
58
|
|
|
$
|
92
|
|
|
|
Assets at December 31,
|
|
Liabilities at December 31,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts recognized:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
$
|
137
|
|
|
$
|
19
|
|
|
$
|
56
|
|
|
$
|
81
|
|
Copper derivatives
|
|
9
|
|
|
1
|
|
|
2
|
|
|
11
|
|
||||
|
|
146
|
|
|
20
|
|
|
58
|
|
|
92
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Less gross amounts of offset:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
12
|
|
|
5
|
|
|
12
|
|
|
5
|
|
||||
Copper derivatives
|
|
2
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
|
|
14
|
|
|
6
|
|
|
14
|
|
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net amounts presented in balance sheet:
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts:
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional
|
|
|
|
|
|
|
|
|
||||||||
sales/purchase contracts
|
|
125
|
|
|
14
|
|
|
44
|
|
|
76
|
|
||||
Copper derivatives
|
|
7
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
|
|
$
|
132
|
|
|
$
|
14
|
|
|
$
|
44
|
|
|
$
|
86
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet classification:
|
|
|
|
|
|
|
|
|
||||||||
Trade accounts receivable
|
|
$
|
119
|
|
|
$
|
9
|
|
|
$
|
13
|
|
|
$
|
51
|
|
Other current assets
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accounts payable and accrued liabilities
|
|
6
|
|
|
5
|
|
|
31
|
|
|
35
|
|
||||
|
|
$
|
132
|
|
|
$
|
14
|
|
|
$
|
44
|
|
|
$
|
86
|
|
|
At December 31, 2016
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
22
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
5
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
50
|
|
|
50
|
|
|
23
|
|
|
27
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:
a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
53
|
|
|
53
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government bonds and notes
|
36
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||||
Corporate bonds
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||||
Asset-backed securities
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||||
Money market funds
|
12
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
183
|
|
|
183
|
|
|
53
|
|
|
12
|
|
|
118
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
contracts in a gross asset position
c
|
137
|
|
|
137
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
—
|
|
||||||
Copper futures and swap contracts
c
|
9
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
||||||
Contingent consideration for the sales of TFHL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and onshore California oil and gas properties
a
|
46
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
||||||
Total
|
192
|
|
|
192
|
|
|
—
|
|
|
8
|
|
|
184
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent consideration for the sale of the Deepwater GOM oil and gas properties
a
|
150
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
|
$
|
560
|
|
|
$
|
76
|
|
|
$
|
47
|
|
|
$
|
302
|
|
|
$
|
135
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
c
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
contracts in a gross liability position
|
$
|
56
|
|
|
$
|
56
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
Copper futures and swap contracts
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
58
|
|
|
58
|
|
|
—
|
|
|
2
|
|
|
56
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contingent payments for the settlements of drilling rig contracts
d
|
23
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portion
e
|
16,027
|
|
|
15,196
|
|
|
—
|
|
|
—
|
|
|
15,196
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
|
$
|
15,277
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
15,275
|
|
|
$
|
—
|
|
|
At December 31, 2015
|
||||||||||||||||||||||
|
Carrying
|
|
Fair Value
|
||||||||||||||||||||
|
Amount
|
|
Total
|
|
NAV
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:
a,b
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
21
|
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
47
|
|
|
47
|
|
|
23
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Legally restricted funds:
a
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. core fixed income fund
|
52
|
|
|
52
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Government bonds and notes
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
||||||
Government mortgage-backed securities
|
28
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||||
Corporate bonds
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||||
Asset-backed securities
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
Collateralized mortgage-backed securities
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Money market funds
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
171
|
|
|
171
|
|
|
52
|
|
|
7
|
|
|
112
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
contracts in a gross asset position
|
19
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||
Copper futures and swap contracts
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
20
|
|
|
20
|
|
|
—
|
|
|
1
|
|
|
19
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
|
$
|
238
|
|
|
$
|
75
|
|
|
$
|
32
|
|
|
$
|
131
|
|
|
$
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives:
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Embedded derivatives in provisional sales/purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
contracts in a gross liability position
|
$
|
81
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
—
|
|
Copper futures and swap contracts
|
11
|
|
|
11
|
|
|
—
|
|
|
7
|
|
|
4
|
|
|
—
|
|
||||||
Total
|
92
|
|
|
92
|
|
|
—
|
|
|
7
|
|
|
85
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current portion
e
|
20,428
|
|
|
13,987
|
|
|
—
|
|
|
—
|
|
|
13,987
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
|
$
|
14,079
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
14,072
|
|
|
$
|
—
|
|
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
$28 million
at
December 31, 2016
and
2015
, and (ii) other assets of
$122 million
at
December 31, 2016
, and
$118 million
at
December 31, 2015
, primarily associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note
13
for further discussion).
|
c.
|
Refer to Note
14
for further discussion and balance sheet classifications.
|
d.
|
Included in accounts payable and accrued liabilities.
|
e.
|
Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.
|
|
Contingent Consideration
|
|
Crude Oil Options
|
|
||||||||
|
2016
|
|
2015
|
|
2014
|
|
||||||
Balance at beginning of year
|
$
|
—
|
|
|
$
|
316
|
|
|
$
|
(309
|
)
|
|
Net realized gains (losses)
|
—
|
|
|
86
|
|
a
|
(42
|
)
|
a
|
|||
Net unrealized gains related to assets and liabilities still held at the end of the year
|
135
|
|
b
|
—
|
|
|
430
|
|
c
|
|||
Net settlements
|
—
|
|
|
(402
|
)
|
d
|
237
|
|
d
|
|||
Balance at the end of the year
|
$
|
135
|
|
|
$
|
—
|
|
|
$
|
316
|
|
|
a.
|
Includes net realized gains (losses) of
$87 million
recorded in revenues in
2015
and
$(41) million
in
2014
, and
$1 million
of interest expense associated with deferred premiums in both
2015
and
2014
.
|
b.
|
Reflects contingent consideration associated with the sale of the Deepwater GOM oil and gas properties in December 2016 (see Note 2 for further discussion).
|
c.
|
Includes unrealized gains recorded in revenues of
$432 million
and
$2 million
of interest expense associated with deferred premiums.
|
d.
|
Includes interest payments of
$4 million
in
2015
and
$5 million
in
2014
.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Refined copper products
|
$
|
5,888
|
|
|
$
|
6,699
|
|
|
$
|
8,187
|
|
Copper in concentrate
a
|
4,502
|
|
|
2,869
|
|
|
3,366
|
|
|||
Gold
|
1,512
|
|
|
1,538
|
|
|
1,584
|
|
|||
Molybdenum
|
651
|
|
|
783
|
|
|
1,207
|
|
|||
Oil
|
1,304
|
|
|
1,694
|
|
|
4,233
|
|
|||
Other
|
973
|
|
|
1,024
|
|
|
1,424
|
|
|||
Total
|
$
|
14,830
|
|
|
$
|
14,607
|
|
|
$
|
20,001
|
|
a.
|
Amounts are net of treatment and refining charges totaling
$652 million
in
2016
,
$485 million
in
2015
and
$374 million
in
2014
.
|
|
December 31,
|
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
|
||||||
Long-lived assets:
a
|
|
|
|
|
|
|
||||||
U.S.
|
$
|
8,282
|
|
b
|
$
|
16,569
|
|
b
|
$
|
29,468
|
|
|
Indonesia
|
8,794
|
|
|
7,701
|
|
|
6,961
|
|
|
|||
Peru
|
7,981
|
|
|
8,432
|
|
|
6,848
|
|
|
|||
Chile
|
1,269
|
|
|
1,387
|
|
|
1,542
|
|
|
|||
Other
c
|
248
|
|
|
4,706
|
|
|
4,593
|
|
|
|||
Total
|
$
|
26,574
|
|
|
$
|
38,795
|
|
|
$
|
49,412
|
|
|
a.
|
Long-lived assets exclude deferred tax assets and intangible assets.
|
b.
|
Decrease in 2016 is primarily because of impairment charges related to oil and gas properties and asset dispositions, and decrease in 2015 is primarily because of impairment charges related to oil and gas properties (refer to Notes 1 and 2 for further discussion).
|
c.
|
Includes long-lived assets held for sale totaling
$4.4 billion
at December 31, 2015, and
$4.3 billion
at December 31, 2014, primarily associated with discontinued operations. Refer to Note 2 for further discussion.
|
a.
|
Revenues are attributed to countries based on the location of the customer.
|
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||
|
Morenci
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
|
|
Total
|
|
Grasberg
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
a
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
444
|
|
|
$
|
240
|
|
|
$
|
684
|
|
|
$
|
2,241
|
|
|
$
|
510
|
|
|
$
|
2,751
|
|
|
$
|
3,233
|
|
|
$
|
—
|
|
|
$
|
3,833
|
|
|
$
|
1,825
|
|
|
$
|
991
|
|
b
|
$
|
13,317
|
|
|
$
|
1,513
|
|
c
|
$
|
—
|
|
|
$
|
14,830
|
|
Intersegment
|
1,511
|
|
|
2,179
|
|
|
3,690
|
|
|
187
|
|
|
—
|
|
|
187
|
|
|
62
|
|
|
186
|
|
|
29
|
|
|
5
|
|
|
(4,159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||
Production and delivery
|
1,169
|
|
|
1,763
|
|
|
2,932
|
|
|
1,351
|
|
d
|
407
|
|
|
1,758
|
|
|
1,794
|
|
d
|
199
|
|
|
3,836
|
|
|
1,712
|
|
|
(3,388
|
)
|
|
8,843
|
|
|
1,801
|
|
e
|
53
|
|
|
10,697
|
|
|||||||||||||||
Depreciation, depletion and amortization
|
217
|
|
|
313
|
|
|
530
|
|
|
443
|
|
|
110
|
|
|
553
|
|
|
384
|
|
|
68
|
|
|
10
|
|
|
29
|
|
|
73
|
|
|
1,647
|
|
|
869
|
|
|
14
|
|
|
2,530
|
|
|||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,299
|
|
|
18
|
|
f
|
4,317
|
|
|||||||||||||||
Metals inventory adjustments
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
3
|
|
|
5
|
|
|
8
|
|
|
1
|
|
|
9
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
15
|
|
|
136
|
|
|
254
|
|
g
|
217
|
|
|
607
|
|
|||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
|
—
|
|
|
1
|
|
|
20
|
|
|||||||||||||||
Net (gain) loss on sales of assets
|
(576
|
)
|
|
—
|
|
|
(576
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67
|
)
|
|
(643
|
)
|
|
1
|
|
|
(7
|
)
|
|
(649
|
)
|
|||||||||||||||
Operating income (loss)
|
1,143
|
|
|
336
|
|
|
1,479
|
|
|
626
|
|
|
(8
|
)
|
|
618
|
|
|
1,027
|
|
|
(96
|
)
|
|
16
|
|
|
72
|
|
|
99
|
|
|
3,215
|
|
|
(5,711
|
)
|
|
(296
|
)
|
|
(2,792
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
82
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
80
|
|
|
181
|
|
|
369
|
|
|
205
|
|
|
755
|
|
|||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|
(6
|
)
|
|
216
|
|
|
442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
658
|
|
|
—
|
|
|
(287
|
)
|
|
371
|
|
|||||||||||||||
Total assets at December 31, 2016
|
2,863
|
|
|
4,448
|
|
|
7,311
|
|
|
9,076
|
|
|
1,533
|
|
|
10,609
|
|
|
10,954
|
|
|
1,934
|
|
|
220
|
|
|
658
|
|
|
1,444
|
|
|
33,130
|
|
|
467
|
|
|
3,720
|
|
|
37,317
|
|
|||||||||||||||
Capital expenditures
|
77
|
|
|
25
|
|
|
102
|
|
|
380
|
|
|
2
|
|
|
382
|
|
|
1,025
|
|
|
2
|
|
|
1
|
|
|
17
|
|
|
109
|
|
h
|
1,638
|
|
|
1,127
|
|
i
|
48
|
|
|
2,813
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
558
|
|
|
$
|
351
|
|
|
$
|
909
|
|
|
$
|
1,065
|
|
|
$
|
808
|
|
|
$
|
1,873
|
|
|
$
|
2,617
|
|
|
$
|
—
|
|
|
$
|
4,125
|
|
|
$
|
1,955
|
|
|
$
|
1,133
|
|
b
|
$
|
12,612
|
|
|
$
|
1,994
|
|
c
|
$
|
1
|
|
|
$
|
14,607
|
|
Intersegment
|
1,646
|
|
|
2,571
|
|
|
4,217
|
|
|
68
|
|
|
(7
|
)
|
j
|
61
|
|
|
36
|
|
|
348
|
|
|
29
|
|
|
15
|
|
|
(4,706
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||
Production and delivery
d
|
1,523
|
|
|
2,276
|
|
|
3,799
|
|
|
815
|
|
|
623
|
|
|
1,438
|
|
|
1,808
|
|
|
312
|
|
|
4,129
|
|
|
1,848
|
|
|
(3,851
|
)
|
|
9,483
|
|
|
1,211
|
|
e
|
(1
|
)
|
|
10,693
|
|
|||||||||||||||
Depreciation, depletion and amortization
|
217
|
|
|
343
|
|
|
560
|
|
|
219
|
|
|
133
|
|
|
352
|
|
|
293
|
|
|
97
|
|
|
9
|
|
|
39
|
|
|
72
|
|
|
1,422
|
|
|
1,804
|
|
|
14
|
|
|
3,240
|
|
|||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,980
|
|
|
164
|
|
f
|
13,144
|
|
|||||||||||||||
Metals inventory adjustments
|
—
|
|
|
142
|
|
|
142
|
|
|
—
|
|
|
73
|
|
|
73
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
338
|
|
|
—
|
|
|
—
|
|
|
338
|
|
|||||||||||||||
Selling, general and administrative expenses
|
3
|
|
|
3
|
|
|
6
|
|
|
3
|
|
|
1
|
|
|
4
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
20
|
|
|
149
|
|
|
188
|
|
|
221
|
|
|
558
|
|
|||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
77
|
|
|
—
|
|
|
1
|
|
|
78
|
|
|||||||||||||||
Net gain on sales of assets
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|||||||||||||||
Operating income (loss)
|
461
|
|
|
187
|
|
|
648
|
|
|
96
|
|
|
(29
|
)
|
|
67
|
|
|
449
|
|
|
(72
|
)
|
|
16
|
|
|
67
|
|
|
(100
|
)
|
|
1,075
|
|
|
(14,189
|
)
|
|
(398
|
)
|
|
(13,512
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest expense, net
|
2
|
|
|
2
|
|
|
4
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
75
|
|
|
105
|
|
|
186
|
|
|
326
|
|
|
617
|
|
|||||||||||||||
Provision for (benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
(9
|
)
|
|
4
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
(2,150
|
)
|
|
(1,951
|
)
|
|||||||||||||||
Total assets at December 31, 2015
|
3,567
|
|
|
4,878
|
|
|
8,445
|
|
|
9,445
|
|
|
1,661
|
|
|
11,106
|
|
|
9,357
|
|
|
1,999
|
|
|
219
|
|
|
612
|
|
|
6,417
|
|
h
|
38,155
|
|
|
8,141
|
|
|
281
|
|
|
46,577
|
|
|||||||||||||||
Capital expenditures
|
253
|
|
|
102
|
|
|
355
|
|
|
1,674
|
|
|
48
|
|
|
1,722
|
|
|
901
|
|
|
13
|
|
|
4
|
|
|
23
|
|
|
277
|
|
h
|
3,295
|
|
|
2,948
|
|
i
|
110
|
|
|
6,353
|
|
a.
|
Includes the results of the Deepwater GOM and onshore California oil and gas properties prior to their sale in December 2016.
|
b.
|
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
c.
|
Includes net mark-to-market (losses) gains of
$(35) million
in
2016
and
$87 million
in
2015
associated with oil derivative contracts. The 2016 oil derivative contracts were entered into as part of the terms to sell the onshore California oil and gas properties.
|
d.
|
The year
2016
includes charges of
$16 million
at Cerro Verde for social commitments and
$17 million
at Indonesia for asset impairment. The year
2015
includes asset impairment and restructuring charges totaling
$145 million
, including
$99 million
at other North America copper mines, and restructuring charges totaling
$13 million
at South America mines,
$7 million
at Molybdenum mines,
$3 million
at Rod & Refining,
$20 million
at Other Mining & Eliminations and
$3 million
at Corporate, Other & Eliminations.
|
e.
|
Includes net charges for oil and gas operations totaling
$1.0 billion
in
2016
and
$188 million
in
2015
, primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments other asset impairments and net charges.
|
f.
|
Reflects impairment charges for international oil and gas properties primarily in Morocco.
|
g.
|
Includes
$85 million
for net restructuring charges at oil and gas operations.
|
h.
|
Includes (i) assets held for sale totaling
$4.9 billion
at
December 31, 2015
, and (ii) capital expenditures totaling
$73 million
in
2016
and
$229 million
in
2015
associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.
|
i.
|
Excludes international oil and gas capital expenditures totaling
$47 million
in
2016
and
$100 million
in
2015
, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.
|
j.
|
Reflects net reductions for provisional pricing adjustments to prior open sales.
|
|
Mining Operations
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
North America Copper Mines
|
|
South America
|
|
Indonesia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlantic
|
|
Other
|
|
|
|
|
|
Corporate,
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molyb-
|
|
|
|
Copper
|
|
Mining
|
|
|
|
U.S.
|
|
Other
|
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Cerro
|
|
|
|
|
|
|
|
denum
|
|
Rod &
|
|
Smelting
|
|
& Elimi-
|
|
Total
|
|
Oil & Gas
|
|
& Elimi-
|
|
FCX
|
||||||||||||||||||||||||||||||
|
Morenci
|
|
Other
|
|
Total
|
|
Verde
|
|
Other
a
|
|
Total
|
|
Grasberg
|
|
Mines
|
|
Refining
|
|
& Refining
|
|
nations
|
|
Mining
|
|
Operations
b
|
|
nations
|
|
Total
|
||||||||||||||||||||||||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Unaffiliated customers
|
$
|
364
|
|
|
$
|
336
|
|
|
$
|
700
|
|
|
$
|
1,282
|
|
|
$
|
1,740
|
|
|
$
|
3,022
|
|
|
$
|
2,848
|
|
|
$
|
—
|
|
|
$
|
4,626
|
|
|
$
|
2,391
|
|
|
$
|
1,704
|
|
c
|
$
|
15,291
|
|
|
$
|
4,710
|
|
d
|
$
|
—
|
|
|
$
|
20,001
|
|
Intersegment
|
1,752
|
|
|
3,164
|
|
|
4,916
|
|
|
206
|
|
|
304
|
|
|
510
|
|
|
223
|
|
|
587
|
|
|
29
|
|
|
21
|
|
|
(6,286
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||||||
Production and delivery
|
1,287
|
|
|
2,153
|
|
|
3,440
|
|
|
741
|
|
|
1,198
|
|
|
1,939
|
|
|
1,988
|
|
|
328
|
|
|
4,633
|
|
|
2,356
|
|
|
(4,807
|
)
|
|
9,877
|
|
|
1,237
|
|
e
|
2
|
|
|
11,116
|
|
|||||||||||||||
Depreciation, depletion and amortization
|
168
|
|
|
316
|
|
|
484
|
|
|
159
|
|
|
208
|
|
|
367
|
|
|
266
|
|
|
92
|
|
|
10
|
|
|
41
|
|
|
70
|
|
|
1,330
|
|
|
2,291
|
|
|
14
|
|
|
3,635
|
|
|||||||||||||||
Impairment of oil and gas properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,737
|
|
|
—
|
|
|
3,737
|
|
|||||||||||||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||||||||||||
Selling, general and administrative expenses
|
2
|
|
|
3
|
|
|
5
|
|
|
3
|
|
|
3
|
|
|
6
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
25
|
|
|
151
|
|
|
207
|
|
|
222
|
|
|
580
|
|
|||||||||||||||
Mining exploration and research expenses
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
106
|
|
|||||||||||||||
Environmental obligations and shutdown costs
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
118
|
|
|
—
|
|
|
1
|
|
|
119
|
|
|||||||||||||||
Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,717
|
|
|
—
|
|
|
1,717
|
|
|||||||||||||||
Net gain on sales of assets
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(703
|
)
|
f
|
(717
|
)
|
|
—
|
|
|
—
|
|
|
(717
|
)
|
|||||||||||||||
Operating income (loss)
|
659
|
|
|
1,039
|
|
|
1,698
|
|
|
585
|
|
|
635
|
|
|
1,220
|
|
|
719
|
|
|
167
|
|
|
12
|
|
|
(2
|
)
|
|
606
|
|
|
4,420
|
|
|
(4,479
|
)
|
|
(239
|
)
|
|
(298
|
)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Interest expense, net
|
3
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
84
|
|
|
102
|
|
|
241
|
|
|
263
|
|
|
606
|
|
|||||||||||||||
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
265
|
|
|
266
|
|
|
531
|
|
|
293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
221
|
|
f
|
1,045
|
|
|
—
|
|
|
(820
|
)
|
|
225
|
|
|||||||||||||||
Total assets at December 31, 2014
|
3,780
|
|
|
5,611
|
|
|
9,391
|
|
|
7,490
|
|
|
1,993
|
|
|
9,483
|
|
|
8,592
|
|
|
2,095
|
|
|
235
|
|
|
898
|
|
|
6,426
|
|
g
|
37,120
|
|
|
20,834
|
|
|
720
|
|
|
58,674
|
|
|||||||||||||||
Capital expenditures
|
826
|
|
|
143
|
|
|
969
|
|
|
1,691
|
|
|
94
|
|
|
1,785
|
|
|
935
|
|
|
54
|
|
|
4
|
|
|
17
|
|
|
217
|
|
g
|
3,981
|
|
|
3,205
|
|
h
|
29
|
|
|
7,215
|
|
a.
|
Includes the results of the Candelaria and Ojos del Salado mines prior to their sale in November 2014.
|
b.
|
Includes the results of Eagle Ford shale assets prior to their sale in June 2014.
|
c.
|
Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North and South America copper mines.
|
d.
|
Includes net mark-to-market gains associated with crude oil and natural gas derivative contracts totaling
$505 million
.
|
e.
|
Includes charges at U.S. Oil & Gas operations totaling
$46 million
primarily for idle/terminated rig costs and inventory adjustments.
|
f.
|
Includes the gain and related income tax provision associated with the sale of the Candelaria and Ojos del Salado mines.
|
g.
|
Includes (i) assets held for sale totaling
$4.8 billion
and (ii) capital expenditures totaling
$159 million
associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.
|
h.
|
Excludes international oil and gas capital expenditures totaling
$19 million
, primarily related to Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets, other than assets held for sale
|
$
|
230
|
|
|
$
|
1,790
|
|
|
$
|
11,331
|
|
|
$
|
(3,260
|
)
|
|
$
|
10,091
|
|
Current assets held for sale
|
—
|
|
|
—
|
|
|
344
|
|
|
—
|
|
|
344
|
|
|||||
Property, plant, equipment and mine development costs, net
|
19
|
|
|
24
|
|
|
23,176
|
|
|
—
|
|
|
23,219
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization and impairments
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
|||||
Investments in consolidated subsidiaries
|
21,110
|
|
|
—
|
|
|
—
|
|
|
(21,110
|
)
|
|
—
|
|
|||||
Other assets
|
1,985
|
|
|
47
|
|
|
3,522
|
|
|
(1,965
|
)
|
|
3,589
|
|
|||||
Total assets
|
$
|
23,344
|
|
|
$
|
1,861
|
|
|
$
|
38,447
|
|
|
$
|
(26,335
|
)
|
|
$
|
37,317
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities, other than liabilities held for sale
|
$
|
3,895
|
|
|
$
|
308
|
|
|
$
|
3,101
|
|
|
$
|
(3,244
|
)
|
|
$
|
4,060
|
|
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
205
|
|
|
—
|
|
|
205
|
|
|||||
Long-term debt, less current portion
|
12,517
|
|
|
6,062
|
|
|
11,297
|
|
|
(15,081
|
)
|
|
14,795
|
|
|||||
Deferred income taxes
|
826
|
|
a
|
—
|
|
|
2,942
|
|
|
—
|
|
|
3,768
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
200
|
|
|
3,287
|
|
|
—
|
|
|
3,487
|
|
|||||
Investments in consolidated subsidiary
|
—
|
|
|
893
|
|
|
8,995
|
|
|
(9,888
|
)
|
|
—
|
|
|||||
Other liabilities
|
55
|
|
|
3,393
|
|
|
1,784
|
|
|
(3,487
|
)
|
|
1,745
|
|
|||||
Total liabilities
|
17,293
|
|
|
10,856
|
|
|
31,611
|
|
|
(31,700
|
)
|
|
28,060
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
6,051
|
|
|
(8,995
|
)
|
|
4,237
|
|
|
4,758
|
|
|
6,051
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
2,599
|
|
|
607
|
|
|
3,206
|
|
|||||
Total equity
|
6,051
|
|
|
(8,995
|
)
|
|
6,836
|
|
|
5,365
|
|
|
9,257
|
|
|||||
Total liabilities and equity
|
$
|
23,344
|
|
|
$
|
1,861
|
|
|
$
|
38,447
|
|
|
$
|
(26,335
|
)
|
|
$
|
37,317
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets, other than assets held for sale
|
$
|
181
|
|
|
$
|
3,831
|
|
|
$
|
10,062
|
|
|
$
|
(7,532
|
)
|
|
$
|
6,542
|
|
Current assets held for sale
|
—
|
|
|
—
|
|
|
920
|
|
|
—
|
|
|
920
|
|
|||||
Property, plant, equipment and mine development costs, net
|
26
|
|
|
57
|
|
|
23,903
|
|
|
—
|
|
|
23,986
|
|
|||||
Oil and gas properties, net - full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Subject to amortization, less accumulated amortization and impairments
|
—
|
|
|
710
|
|
|
1,552
|
|
|
—
|
|
|
2,262
|
|
|||||
Not subject to amortization
|
—
|
|
|
1,393
|
|
|
3,432
|
|
|
6
|
|
|
4,831
|
|
|||||
Investments in consolidated subsidiaries
|
24,311
|
|
|
—
|
|
|
—
|
|
|
(24,311
|
)
|
|
—
|
|
|||||
Other assets
|
5,038
|
|
|
1,826
|
|
|
3,584
|
|
|
(6,798
|
)
|
|
3,650
|
|
|||||
Assets held for sale
|
—
|
|
|
—
|
|
|
4,386
|
|
|
—
|
|
|
4,386
|
|
|||||
Total assets
|
$
|
29,556
|
|
|
$
|
7,817
|
|
|
$
|
47,839
|
|
|
$
|
(38,635
|
)
|
|
$
|
46,577
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities, other than liabilities held for sale
|
$
|
6,012
|
|
|
$
|
666
|
|
|
$
|
5,024
|
|
|
$
|
(7,526
|
)
|
|
$
|
4,176
|
|
Current liabilities held for sale
|
—
|
|
|
—
|
|
|
131
|
|
|
—
|
|
|
131
|
|
|||||
Long-term debt, less current portion
|
14,735
|
|
|
5,883
|
|
|
11,490
|
|
|
(12,433
|
)
|
|
19,675
|
|
|||||
Deferred income taxes
|
941
|
|
a
|
—
|
|
|
2,626
|
|
|
—
|
|
|
3,567
|
|
|||||
Environmental and asset retirement obligations, less current portion
|
—
|
|
|
305
|
|
|
3,409
|
|
|
—
|
|
|
3,714
|
|
|||||
Investment in consolidated subsidiary
|
—
|
|
|
—
|
|
|
2,397
|
|
|
(2,397
|
)
|
|
—
|
|
|||||
Other liabilities
|
40
|
|
|
3,360
|
|
|
1,732
|
|
|
(3,491
|
)
|
|
1,641
|
|
|||||
Liabilities held for sale
|
—
|
|
|
—
|
|
|
865
|
|
|
—
|
|
|
865
|
|
|||||
Total liabilities
|
21,728
|
|
|
10,214
|
|
|
27,674
|
|
|
(25,847
|
)
|
|
33,769
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
764
|
|
|
—
|
|
|
764
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
7,828
|
|
|
(2,397
|
)
|
|
15,725
|
|
|
(13,328
|
)
|
|
7,828
|
|
|||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
3,676
|
|
|
540
|
|
|
4,216
|
|
|||||
Total equity
|
7,828
|
|
|
(2,397
|
)
|
|
19,401
|
|
|
(12,788
|
)
|
|
12,044
|
|
|||||
Total liabilities and equity
|
$
|
29,556
|
|
|
$
|
7,817
|
|
|
$
|
47,839
|
|
|
$
|
(38,635
|
)
|
|
$
|
46,577
|
|
a.
|
All U.S. related deferred income taxes are recorded at the parent company
.
|
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
|
75
|
|
|
3,074
|
|
a
|
14,463
|
|
a
|
10
|
|
|
17,622
|
|
|||||
Operating loss
|
(75
|
)
|
|
(2,695
|
)
|
|
(12
|
)
|
|
(10
|
)
|
|
(2,792
|
)
|
|||||
Interest expense, net
|
(534
|
)
|
|
(56
|
)
|
|
(498
|
)
|
|
333
|
|
|
(755
|
)
|
|||||
Other income (expense), net
|
271
|
|
|
—
|
|
|
70
|
|
|
(292
|
)
|
|
49
|
|
|||||
Net gain on exchanges and early extinguishment of debt
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|||||
(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 loss 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 charges totaling
$1.5 billion
at the FM O&G LLC Guarantor and
$2.8 billion
at the non-guarantor subsidiaries related to impairment of FCX's oil and gas properties pursuant to full cost accounting rules.
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
613
|
|
|
$
|
13,994
|
|
|
$
|
—
|
|
|
$
|
14,607
|
|
Total costs and expenses
|
60
|
|
|
5,150
|
|
a
|
22,920
|
|
a
|
(11
|
)
|
|
28,119
|
|
|||||
Operating (loss) income
|
(60
|
)
|
|
(4,537
|
)
|
|
(8,926
|
)
|
|
11
|
|
|
(13,512
|
)
|
|||||
Interest expense, net
|
(489
|
)
|
|
(8
|
)
|
|
(272
|
)
|
|
152
|
|
|
(617
|
)
|
|||||
Other income (expense), net
|
225
|
|
|
1
|
|
|
(86
|
)
|
|
(139
|
)
|
|
1
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
|
(324
|
)
|
|
(4,544
|
)
|
|
(9,284
|
)
|
|
24
|
|
|
(14,128
|
)
|
|||||
(Provision for) benefit from income taxes
|
(3,227
|
)
|
|
1,718
|
|
|
3,469
|
|
|
(9
|
)
|
|
1,951
|
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(8,685
|
)
|
|
(9,976
|
)
|
|
(12,838
|
)
|
|
31,496
|
|
|
(3
|
)
|
|||||
Net (loss) income from continuing operations
|
(12,236
|
)
|
|
(12,802
|
)
|
|
(18,653
|
)
|
|
31,511
|
|
|
(12,180
|
)
|
|||||
Net income from discontinued operations
|
—
|
|
|
—
|
|
|
91
|
|
|
—
|
|
|
91
|
|
|||||
Net (loss) income
|
(12,236
|
)
|
|
(12,802
|
)
|
|
(18,562
|
)
|
|
31,511
|
|
|
(12,089
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(33
|
)
|
|
(68
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
—
|
|
|
(79
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(12,236
|
)
|
|
$
|
(12,802
|
)
|
|
$
|
(18,676
|
)
|
|
$
|
31,478
|
|
|
$
|
(12,236
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
41
|
|
|
—
|
|
|
41
|
|
|
(41
|
)
|
|
41
|
|
|||||
Total comprehensive (loss) income
|
$
|
(12,195
|
)
|
|
$
|
(12,802
|
)
|
|
$
|
(18,635
|
)
|
|
$
|
31,437
|
|
|
$
|
(12,195
|
)
|
a.
|
Includes impairment charges totaling
$4.2 billion
at the FM O&G LLC Guarantor and
$8.9 billion
at the non-guarantor subsidiaries related to FCX's oil and gas properties pursuant to full cost accounting rules.
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
2,356
|
|
|
$
|
17,645
|
|
|
$
|
—
|
|
|
$
|
20,001
|
|
Total costs and expenses
|
59
|
|
|
3,498
|
|
a
|
16,720
|
|
a
|
22
|
|
|
20,299
|
|
|||||
Operating (loss) income
|
(59
|
)
|
|
(1,142
|
)
|
|
925
|
|
|
(22
|
)
|
|
(298
|
)
|
|||||
Interest expense, net
|
(382
|
)
|
|
(139
|
)
|
|
(165
|
)
|
|
80
|
|
|
(606
|
)
|
|||||
Net (loss) gain on early extinguishment of debt
|
(5
|
)
|
|
78
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|||||
Other income (expense), net
|
72
|
|
|
3
|
|
|
36
|
|
|
(80
|
)
|
|
31
|
|
|||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
(374
|
)
|
|
(1,200
|
)
|
|
796
|
|
|
(22
|
)
|
|
(800
|
)
|
|||||
Benefit from (provision for) income taxes
|
96
|
|
|
281
|
|
|
(610
|
)
|
|
8
|
|
|
(225
|
)
|
|||||
Equity in affiliated companies' net (losses) earnings
|
(1,007
|
)
|
|
(3,429
|
)
|
|
(4,633
|
)
|
|
9,072
|
|
|
3
|
|
|||||
Net (loss) income from continuing operations
|
(1,285
|
)
|
|
(4,348
|
)
|
|
(4,447
|
)
|
|
9,058
|
|
|
(1,022
|
)
|
|||||
Net (loss) income from discontinued operations
|
(23
|
)
|
|
—
|
|
|
300
|
|
|
—
|
|
|
277
|
|
|||||
Net (loss) income
|
(1,308
|
)
|
|
(4,348
|
)
|
|
(4,147
|
)
|
|
9,058
|
|
|
(745
|
)
|
|||||
Net income and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
(44
|
)
|
|
(398
|
)
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
(165
|
)
|
|
—
|
|
|
(165
|
)
|
|||||
Net (loss) income attributable to common stockholders
|
$
|
(1,308
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,666
|
)
|
|
$
|
9,014
|
|
|
$
|
(1,308
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive (loss) income
|
(139
|
)
|
|
—
|
|
|
(139
|
)
|
|
139
|
|
|
(139
|
)
|
|||||
Total comprehensive (loss) income
|
$
|
(1,447
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,805
|
)
|
|
$
|
9,153
|
|
|
$
|
(1,447
|
)
|
a.
|
Includes impairment charges totaling
$1.9 billion
at the FM O&G LLC Guarantor and
$3.5 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.
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(4,154
|
)
|
|
$
|
(4,799
|
)
|
|
$
|
(4,563
|
)
|
|
$
|
9,491
|
|
|
$
|
(4,025
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
5
|
|
|
192
|
|
|
2,430
|
|
|
(17
|
)
|
|
2,610
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
1,531
|
|
|
2,765
|
|
|
21
|
|
|
4,317
|
|
|||||
Non-cash oil and gas drillship settlements
|
—
|
|
|
689
|
|
|
—
|
|
|
—
|
|
|
689
|
|
|||||
Net gain on sales of assets
|
—
|
|
|
(86
|
)
|
|
(567
|
)
|
|
4
|
|
|
(649
|
)
|
|||||
Equity in losses (earnings) of consolidated subsidiaries
|
1,609
|
|
|
3,101
|
|
|
4,790
|
|
|
(9,511
|
)
|
|
(11
|
)
|
|||||
Other, net
|
(95
|
)
|
|
30
|
|
|
807
|
|
|
(1
|
)
|
|
741
|
|
|||||
Changes in working capital and other tax payments, excluding amounts from dispositions
|
2,498
|
|
|
(929
|
)
|
|
(1,527
|
)
|
|
15
|
|
|
57
|
|
|||||
Net cash (used in) provided by operating activities
|
(137
|
)
|
|
(271
|
)
|
|
4,135
|
|
|
2
|
|
|
3,729
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
)
|
|
—
|
|
|||||
Proceeds from sales of assets
|
2
|
|
|
1,670
|
|
|
4,687
|
|
|
(4
|
)
|
|
6,355
|
|
|||||
Other, net
|
—
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
8
|
|
|||||
Net cash provided by (used in) investing activities
|
1,952
|
|
|
715
|
|
|
2,620
|
|
|
(1,737
|
)
|
|
3,550
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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, including redemption
|
(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 and cash equivalents
|
—
|
|
|
2
|
|
|
4,111
|
|
|
—
|
|
|
4,113
|
|
|||||
Increase in cash and cash equivalents in assets held for sale
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
177
|
|
|
—
|
|
|
177
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
4,243
|
|
|
$
|
—
|
|
|
$
|
4,245
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(12,236
|
)
|
|
$
|
(12,802
|
)
|
|
$
|
(18,562
|
)
|
|
$
|
31,511
|
|
|
$
|
(12,089
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
5
|
|
|
370
|
|
|
3,195
|
|
|
(73
|
)
|
|
3,497
|
|
|||||
Impairment of oil and gas properties
|
—
|
|
|
4,220
|
|
|
8,862
|
|
|
62
|
|
|
13,144
|
|
|||||
Metals inventory adjustments
|
—
|
|
|
—
|
|
|
338
|
|
|
—
|
|
|
338
|
|
|||||
Other asset impairments, oil and gas inventory adjustments, and restructuring
|
—
|
|
|
11
|
|
|
245
|
|
|
—
|
|
|
256
|
|
|||||
Net gains on crude oil and natural gas derivative contracts
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|||||
Equity in losses (earnings) of consolidated subsidiaries
|
8,685
|
|
|
9,976
|
|
|
12,838
|
|
|
(31,496
|
)
|
|
3
|
|
|||||
Other, net
|
(2,127
|
)
|
|
2
|
|
|
(90
|
)
|
|
—
|
|
|
(2,215
|
)
|
|||||
Changes in working capital and other tax payments
|
5,506
|
|
|
(1,428
|
)
|
|
(3,714
|
)
|
|
9
|
|
|
373
|
|
|||||
Net cash (used in) provided by operating activities
|
(167
|
)
|
|
262
|
|
|
3,112
|
|
|
13
|
|
|
3,220
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(7
|
)
|
|
(847
|
)
|
|
(5,486
|
)
|
|
(13
|
)
|
|
(6,353
|
)
|
|||||
Intercompany loans
|
(1,812
|
)
|
|
(1,310
|
)
|
|
—
|
|
|
3,122
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
852
|
|
|
(71
|
)
|
|
130
|
|
|
(913
|
)
|
|
(2
|
)
|
|||||
Other, net
|
(21
|
)
|
|
(2
|
)
|
|
111
|
|
|
21
|
|
|
109
|
|
|||||
Net cash (used in) provided by investing activities
|
(988
|
)
|
|
(2,230
|
)
|
|
(5,245
|
)
|
|
2,217
|
|
|
(6,246
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
4,503
|
|
|
—
|
|
|
3,769
|
|
|
—
|
|
|
8,272
|
|
|||||
Repayments of debt
|
(4,660
|
)
|
|
—
|
|
|
(2,017
|
)
|
|
—
|
|
|
(6,677
|
)
|
|||||
Intercompany loans
|
—
|
|
|
2,038
|
|
|
1,084
|
|
|
(3,122
|
)
|
|
—
|
|
|||||
Net proceeds from sale of common stock
|
1,936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,936
|
|
|||||
Cash dividends and distributions paid
|
(605
|
)
|
|
—
|
|
|
(924
|
)
|
|
804
|
|
|
(725
|
)
|
|||||
Other, net
|
(19
|
)
|
|
(71
|
)
|
|
(18
|
)
|
|
88
|
|
|
(20
|
)
|
|||||
Net cash provided by (used in) financing activities
|
1,155
|
|
|
1,967
|
|
|
1,894
|
|
|
(2,230
|
)
|
|
2,786
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net decrease in cash and cash equivalents
|
—
|
|
|
(1
|
)
|
|
(239
|
)
|
|
—
|
|
|
(240
|
)
|
|||||
Decrease in cash and cash equivalents in assets held for sale
|
—
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
119
|
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
1
|
|
|
297
|
|
|
—
|
|
|
298
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
177
|
|
|
$
|
—
|
|
|
$
|
177
|
|
|
FCX
|
|
FM O&G LLC
|
|
Non-guarantor
|
|
|
|
Consolidated
|
||||||||||
|
Issuer
|
|
Guarantor
|
|
Subsidiaries
|
|
Eliminations
|
|
FCX
|
||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income
|
$
|
(1,308
|
)
|
|
$
|
(4,348
|
)
|
|
$
|
(4,147
|
)
|
|
$
|
9,058
|
|
|
$
|
(745
|
)
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
4
|
|
|
806
|
|
|
3,077
|
|
|
(24
|
)
|
|
3,863
|
|
|||||
Impairment of oil and gas properties and goodwill
|
—
|
|
|
1,922
|
|
|
3,486
|
|
|
46
|
|
|
5,454
|
|
|||||
Net gains on crude oil and natural gas derivative contracts
|
—
|
|
|
(504
|
)
|
|
—
|
|
|
—
|
|
|
(504
|
)
|
|||||
Equity in losses (earnings) of consolidated subsidiaries
|
1,007
|
|
|
3,429
|
|
|
4,633
|
|
|
(9,072
|
)
|
|
(3
|
)
|
|||||
Other, net
|
(882
|
)
|
|
(113
|
)
|
|
(807
|
)
|
|
—
|
|
|
(1,802
|
)
|
|||||
Changes in working capital and other tax payments, excluding amounts from dispositions
|
723
|
|
|
(1,750
|
)
|
|
395
|
|
|
—
|
|
|
(632
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(456
|
)
|
|
(558
|
)
|
|
6,637
|
|
|
8
|
|
|
5,631
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(2,143
|
)
|
|
(5,072
|
)
|
|
—
|
|
|
(7,215
|
)
|
|||||
Acquisition of Deepwater GOM interests
|
—
|
|
|
—
|
|
|
(1,426
|
)
|
|
—
|
|
|
(1,426
|
)
|
|||||
Intercompany loans
|
(1,328
|
)
|
|
704
|
|
|
—
|
|
|
624
|
|
|
—
|
|
|||||
Dividends from (investments in) consolidated subsidiaries
|
1,221
|
|
|
(130
|
)
|
|
(2,408
|
)
|
|
1,317
|
|
|
—
|
|
|||||
Proceeds from sale of Eagle Ford shale assets
|
—
|
|
|
2,910
|
|
|
—
|
|
|
—
|
|
|
2,910
|
|
|||||
Proceeds from sale of Candelaria and Ojos del Salado mines
|
—
|
|
|
—
|
|
|
1,709
|
|
|
—
|
|
|
1,709
|
|
|||||
Other, net
|
—
|
|
|
41
|
|
|
180
|
|
|
—
|
|
|
221
|
|
|||||
Net cash (used in) provided by investing activities
|
(107
|
)
|
|
1,382
|
|
|
(7,017
|
)
|
|
1,941
|
|
|
(3,801
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from debt
|
7,464
|
|
|
—
|
|
|
1,246
|
|
|
—
|
|
|
8,710
|
|
|||||
Repayments of debt
|
(5,575
|
)
|
|
(3,994
|
)
|
|
(737
|
)
|
|
—
|
|
|
(10,306
|
)
|
|||||
Intercompany loans
|
—
|
|
|
810
|
|
|
(186
|
)
|
|
(624
|
)
|
|
—
|
|
|||||
Cash dividends and distributions paid
|
(1,305
|
)
|
|
2,364
|
|
|
(1,463
|
)
|
|
(1,325
|
)
|
|
(1,729
|
)
|
|||||
Other, net
|
(21
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Net cash provided by (used in) financing activities
|
563
|
|
|
(823
|
)
|
|
(1,142
|
)
|
|
(1,949
|
)
|
|
(3,351
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
1
|
|
|
(1,522
|
)
|
|
—
|
|
|
(1,521
|
)
|
|||||
Increase in cash and cash equivalents in assets held for sale
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
—
|
|
|
—
|
|
|
1,864
|
|
|
—
|
|
|
1,864
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
297
|
|
|
$
|
—
|
|
|
$
|
298
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Year
|
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
3,242
|
|
|
$
|
3,334
|
|
|
$
|
3,877
|
|
|
$
|
4,377
|
|
a
|
$
|
14,830
|
|
a
|
Operating (loss) income
b,c
|
(3,872
|
)
|
d
|
18
|
|
d,e
|
359
|
|
d,e,f
|
703
|
|
e,f
|
(2,792
|
)
|
d,e,f
|
|||||
Net (loss) income from continuing operations
g
|
(4,097
|
)
|
|
(229
|
)
|
|
292
|
|
|
202
|
|
|
(3,832
|
)
|
|
|||||
Net loss from discontinued operations
h
|
(4
|
)
|
|
(181
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(193
|
)
|
|
|||||
Net (loss) income
|
(4,101
|
)
|
|
(410
|
)
|
|
286
|
|
|
200
|
|
|
(4,025
|
)
|
|
|||||
Net income and preferred dividends
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
(73
|
)
|
|
(57
|
)
|
|
(47
|
)
|
|
111
|
|
i
|
(66
|
)
|
i
|
|||||
Discontinued operations
|
(10
|
)
|
|
(12
|
)
|
|
(22
|
)
|
|
(19
|
)
|
|
(63
|
)
|
|
|||||
Net (loss) income attributable to common stockholders
|
(4,184
|
)
|
|
(479
|
)
|
|
217
|
|
|
292
|
|
|
(4,154
|
)
|
|
|||||
Basic and diluted net (loss) income per share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable common stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(3.34
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
0.18
|
|
|
$
|
0.22
|
|
|
$
|
(2.96
|
)
|
|
Discontinued operations
|
(0.01
|
)
|
|
(0.15
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.20
|
)
|
|
|||||
|
$
|
(3.35
|
)
|
|
$
|
(0.38
|
)
|
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
$
|
(3.16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
a
|
$
|
3,771
|
|
|
$
|
3,938
|
|
|
$
|
3,382
|
|
|
$
|
3,516
|
|
|
$
|
14,607
|
|
|
Operating loss
b,c,d
|
(3,030
|
)
|
e
|
(2,421
|
)
|
|
(3,964
|
)
|
f
|
(4,097
|
)
|
f
|
(13,512
|
)
|
e,f
|
|||||
Net loss from continuing operations
|
(2,447
|
)
|
|
(1,828
|
)
|
j
|
(3,815
|
)
|
|
(4,090
|
)
|
|
(12,180
|
)
|
j
|
|||||
Net income (loss) from discontinued operations
h
|
41
|
|
|
29
|
|
|
25
|
|
|
(4
|
)
|
|
91
|
|
|
|||||
Net loss
|
(2,406
|
)
|
|
(1,799
|
)
|
|
(3,790
|
)
|
|
(4,094
|
)
|
|
(12,089
|
)
|
|
|||||
Net (income) loss and preferred dividends attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
(42
|
)
|
|
(26
|
)
|
|
(24
|
)
|
|
24
|
|
|
(68
|
)
|
|
|||||
Discontinued operations
|
(26
|
)
|
|
(26
|
)
|
|
(16
|
)
|
|
(11
|
)
|
|
(79
|
)
|
|
|||||
Net loss attributable to common stockholders
|
(2,474
|
)
|
|
(1,851
|
)
|
|
(3,830
|
)
|
|
(4,081
|
)
|
|
(12,236
|
)
|
|
|||||
Basic and diluted net (loss) income per share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
attributable common stockholders:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
(2.40
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.59
|
)
|
|
$
|
(3.46
|
)
|
|
$
|
(11.32
|
)
|
|
Discontinued operations
|
0.02
|
|
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
|||||
|
$
|
(2.38
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(3.58
|
)
|
|
$
|
(3.47
|
)
|
|
$
|
(11.31
|
)
|
|
a.
|
Includes charges for net noncash mark-to-market losses associated with crude oil and natural gas derivative contracts totaling
$41 million
(
$41 million
to net income (loss) attributable to common stockholders or
$0.03
per share) in the fourth quarter and for the year 2016,
$48 million
(
$30 million
to net loss attributable to common stockholders or
$0.03
per share) in first-quarter 2015,
$95 million
(
$59 million
to net loss attributable to common stockholders or
$0.06
per share) in second-quarter 2015,
$74 million
(
$46 million
to net loss attributable to common stockholders or
$0.04
per share) in third-quarter 2015,
$102 million
(
$63 million
to net loss attributable to common stockholders or
$0.05
per share) in fourth-quarter 2015 and
$319 million
(
$198 million
to net loss attributable to common stockholders or
$0.18
per share) for the year 2015.
|
b.
|
The 2016 periods include charges at oil and gas operations impacting operating (loss) income and net (loss) income attributable to common stockholders of
$201 million
(
$0.16
per share) in the first quarter,
$729 million
(
$0.57
per share) in the second quarter,
$50 million
(
$0.03
per share) in the third quarter,
$142 million
(
$0.09
per share) in the fourth quarter and
$1.1 billion
(
$0.84
per share) for the year, primarily for drillship settlements/idle rig costs, inventory adjustments and other asset impairments and restructuring charges. The 2015 periods include charges at oil and gas operations of
$17 million
(
$10 million
to net loss attributable to common stockholders or
$0.01
per share) in the first quarter,
$22 million
(
$14 million
to net loss attributable to common stockholders or
$0.01
per share) in the second quarter,
$21 million
(
$13 million
to net loss attributable to common stockholders or
$0.01
per share) in the third quarter,
$129 million
(
$81 million
to net loss attributable to common stockholders or
$0.07
per share) in the fourth quarter and
$188 million
(
$117 million
to net loss attributable to common stockholders or
$0.11
per share) for the year, primarily for other asset impairments, inventory adjustments, idle/terminated rig costs and prior year mineral tax assessments related to the California properties.
|
c.
|
The 2016 periods include charges impacting operating (loss) income and net (loss) income attributable to common stockholders for metals inventory adjustments totaling
$5 million
(less than $0.01 per share) in the first quarter,
$2 million
(less than $0.01 per share) in the second quarter,
$20 million
(
$0.01
per share) in the third quarter,
$9 million
(
$0.01
per share) in the fourth quarter and
$36 million
(
$0.03
per share) for the year. The 2015 periods include charges for metal inventory adjustments of
$4 million
(
$3 million
to net loss attributable to common stockholders or less than $0.01 per share) in the first quarter,
$59 million
(
$38 million
to net loss attributable to common stockholders or
$0.04
per share) in the second quarter,
$91 million
(
$58 million
to net loss attributable to common stockholders or
$0.05
per share) in the third quarter,
$184
|
d.
|
The 2016 periods include charges impacting operating (loss) income and net (loss) income attributable to common stockholders to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules of
$3.8 billion
(
$3.03
per share) in the first quarter,
$291 million
(
$0.23
per share) in the second quarter,
$239 million
(
$0.18
per share) in the third quarter and
$4.3 billion
(
$3.28
per share) for the year. The 2015 periods include charges to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules of
$3.1 billion
(
$2.4 billion
to net loss attributable to common stockholders or
$2.31
per share) in the first quarter,
$2.7 billion
(
$2.0 billion
to net loss attributable to common stockholders or
$1.90
per share) in the second quarter,
$3.7 billion
(
$3.5 billion
to net loss attributable to common stockholders or
$3.25
per share) in the third quarter,
$3.7 billion
(
$3.7 billion
to net loss attributable to common stockholders or
$3.18
per share) in the fourth quarter and
$13.1 billion
(
$11.6 billion
to net loss attributable to common stockholders or
$10.72
per share) for the year.
|
e.
|
Includes net gains (losses) on sales of assets of
$749 million
(
$744 million
to net loss attributable to common stockholders or
$0.59
per share) in second-quarter 2016,
$13 million
(
$13 million
to net income attributable to common stockholders or
$0.01
per share) in third-quarter 2016,
$(113) million
(
$(108) million
to net income attributable to common stockholders or
$(0.08)
per share) in fourth-quarter 2016 and
$649 million
(
$649 million
to net loss attributable to common stockholders or
$0.49
per share) for the year 2016, primarily associated with the Morenci and Timok transactions, partly offset with losses associated with the potential Freeport Cobalt and Kisanfu transactions and the sales of oil and gas properties (refer to Note 2 for further discussion). Net gains on sales of assets for 2015 totaled
$39 million
(
$25 million
to net loss attributable to common stockholders or
$0.02
per share) in the first quarter and for the year associated with the sale of the Luna Energy power facility.
|
f.
|
The 2016 periods include charges from mining operations of
$17 million
(
$9 million
to net income attributable to common stockholders or
$0.01
per share) in the third quarter,
$16 million
(
$5 million
to net income attributable to common stockholders or less than $0.01 per share) in the fourth quarter and
$33 million
(
$14 million
to net loss attributable to common stockholders or
$0.01
per share) for the year, primarily for a PT-FI asset retirement and Cerro Verde social commitments. The 2015 periods include charges from mining operations of
$92 million
(
$56 million
to net loss attributable to common stockholders or
$0.05
per share) in the third quarter,
$53 million
(
$34 million
to net loss attributable to common stockholders or
$0.03
per share) in the fourth quarter and
$145 million
(
$90 million
to net loss attributable to common stockholders or
$0.08
per share) for the year associated with asset impairment, restructuring and other net charges.
|
g.
|
Includes net (losses) gains on exchanges and early extinguishment of debt totaling
$(3) million
(less than ($0.01) per share) in the first quarter,
$39 million
(
$0.03
per share) in the second quarter,
$15 million
(
$0.01
per share) in the third quarter,
$(25) million
(
$(0.02)
per share) in the fourth quarter and
$26 million
(
$0.02
per share) for the year. Refer to Note 8 for further discussion.
|
h.
|
Reflects the results of TFHL and includes charges for allocated interest expense associated with the portion of the Term Loan that was required to be repaid as a result of the sale of FCX's interest in TFHL, which was completed on November 16, 2016. The 2016 periods also include charges for the loss on disposal of
$177 million
(
$0.14
per share) in the second quarter,
$5 million
(less than $0.01 per share) in the third quarter,
$16 million
(
$0.01
per share) in the fourth quarter and
$198 million
(
$0.15
per share) for the year. Refer to Note 2 for further discussion of discontinued operations.
|
i.
|
Includes a gain on redemption of noncontrolling interest for the settlement of FCX's preferred stock obligation at its Plains Offshore subsidiary (refer to Notes 1 and 2 for further discussion) totaling
$199 million
(
$0.14
per share in the fourth quarter and
$0.15
per share for the year).
|
j.
|
Includes a gain of
$92 million
(
$0.09
per share) in the second quarter and for the year associated with the net proceeds received from insurance carriers and other third parties related to the shareholder derivative litigation settlement.
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||
|
Estimated at December 31, 2016
|
|||||||
|
Copper
a
(billion pounds)
|
|
Gold
(million ounces)
|
|
Molybdenum
(billion pounds)
|
|||
North America
|
30.4
|
|
|
0.3
|
|
|
2.31
|
|
South America
|
29.5
|
|
|
—
|
|
|
0.64
|
|
Indonesia
b
|
26.9
|
|
|
25.8
|
|
|
—
|
|
Consolidated
c
|
86.8
|
|
|
26.1
|
|
|
2.95
|
|
|
|
|
|
|
|
|||
Net equity interest
d
|
70.5
|
|
|
23.7
|
|
|
2.65
|
|
a.
|
Consolidated recoverable copper reserves included
2.2 billion
pounds in leach stockpiles and
1.0 billion
pounds in mill stockpiles.
|
b.
|
Recoverable proven and probable reserves reflect estimates of minerals that can be recovered through the end of 2041 (refer to Note
13
for discussion of PT-FI's COW).
|
c.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia (refer to Note
3
for further discussion of FCX's joint ventures). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
281.8 million
ounces of silver in North America, South America and Indonesia, which were determined using a long-term average price of
$15
per ounce.
|
d.
|
Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership (refer to Note
3
for further discussion of FCX's ownership in subsidiaries). Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of
226.0 million
ounces of silver in North America, South America and Indonesia.
|
|
|
Recoverable Proven and Probable Mineral Reserves
|
|||||||||||||||||
|
|
Estimated at December 31, 2016
|
|||||||||||||||||
|
|
|
|
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
|
|
3,274
|
|
|
0.27
|
|
—
|
|
|
—
|
c
|
12.8
|
|
|
—
|
|
|
0.15
|
|
Sierrita
|
|
2,434
|
|
|
0.23
|
|
—
|
|
c
|
0.02
|
|
10.4
|
|
|
0.1
|
|
|
1.04
|
|
Bagdad
|
|
1,244
|
|
|
0.32
|
|
—
|
|
c
|
0.02
|
|
7.4
|
|
|
0.1
|
|
|
0.36
|
|
Chino
|
|
226
|
|
|
0.47
|
|
0.02
|
|
|
—
|
c
|
2.1
|
|
|
0.1
|
|
|
0.01
|
|
Climax
|
|
170
|
|
|
—
|
|
—
|
|
|
0.15
|
|
—
|
|
|
—
|
|
|
0.54
|
|
Henderson
|
|
77
|
|
|
—
|
|
—
|
|
|
0.17
|
|
—
|
|
|
—
|
|
|
0.25
|
|
Safford
|
|
75
|
|
|
0.31
|
|
—
|
|
|
—
|
|
0.6
|
|
|
—
|
|
|
—
|
|
Tyrone
|
|
6
|
|
|
0.51
|
|
—
|
|
|
—
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Miami
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cobre
|
|
86
|
|
|
0.34
|
|
—
|
|
|
—
|
|
0.4
|
|
|
—
|
|
|
—
|
|
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cerro Verde
|
|
3,673
|
|
|
0.37
|
|
—
|
|
|
0.01
|
|
26.7
|
|
|
—
|
|
|
0.64
|
|
El Abra
|
|
431
|
|
|
0.45
|
|
—
|
|
|
—
|
|
2.8
|
|
|
—
|
|
|
—
|
|
Indonesia
d
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Developed and producing:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deep Mill Level Zone
|
|
439
|
|
|
0.90
|
|
0.75
|
|
|
—
|
|
7.6
|
|
|
8.4
|
|
|
—
|
|
Deep Ore Zone
|
|
100
|
|
|
0.51
|
|
0.70
|
|
|
—
|
|
1.0
|
|
|
1.8
|
|
|
—
|
|
Big Gossan
|
|
60
|
|
|
2.19
|
|
0.97
|
|
|
—
|
|
2.6
|
|
|
1.3
|
|
|
—
|
|
Grasberg open pit
|
|
56
|
|
|
1.26
|
|
2.11
|
|
|
—
|
|
1.7
|
|
|
3.4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Under development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Grasberg Block Cave
|
|
964
|
|
|
1.03
|
|
0.78
|
|
|
—
|
|
18.5
|
|
|
15.7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Undeveloped:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Kucing Liar
|
|
408
|
|
|
1.26
|
|
1.10
|
|
|
—
|
|
9.7
|
|
|
6.7
|
|
|
—
|
|
Total 100% basis
|
|
13,723
|
|
|
|
|
|
|
|
|
104.6
|
|
|
37.6
|
|
|
2.99
|
|
|
Consolidated
e
|
|
|
|
|
|
|
|
|
|
86.8
|
|
|
26.1
|
|
|
2.95
|
|
||
FCX’s equity share
f
|
|
|
|
|
|
|
|
|
|
70.5
|
|
|
23.7
|
|
|
2.65
|
|
a.
|
Excludes material contained in stockpiles.
|
b.
|
Includes estimated recoverable metals contained in stockpiles.
|
c.
|
Amounts not shown because of rounding.
|
d.
|
Recoverable proven and probable reserves reflect estimates of minerals that can be recovered through the end of 2041 (refer to Note
13
for discussion of PT-FI's COW).
|
e.
|
Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Refer to Note
3
for further discussion of FCX's joint ventures.
|
f.
|
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.
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Property acquisition costs:
|
|
|
|
|
|
|
||||||
Proved properties
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
463
|
|
|
Unproved properties
|
7
|
|
|
61
|
|
|
1,460
|
|
|
|||
Exploration costs
|
22
|
|
|
1,250
|
|
|
1,482
|
|
|
|||
Development costs
|
749
|
|
|
1,442
|
|
|
1,270
|
|
|
|||
|
$
|
778
|
|
|
$
|
2,753
|
|
|
$
|
4,675
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
||||||
Properties subject to amortization
|
$
|
27,507
|
|
|
$
|
24,538
|
|
|
$
|
16,547
|
|
|
Accumulated amortization
|
(27,433
|
)
|
a
|
(22,276
|
)
|
a
|
(7,360
|
)
|
a
|
|||
|
$
|
74
|
|
|
$
|
2,262
|
|
|
$
|
9,187
|
|
|
a.
|
Includes charges of
$4.3 billion
in
2016
,
$13.1 billion
in
2015
and
$3.7 billion
in
2014
to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues from oil and gas producing activities
|
$
|
1,513
|
|
|
$
|
1,994
|
|
|
$
|
4,710
|
|
Production and delivery costs
|
(1,829
|
)
|
a
|
(1,215
|
)
|
|
(1,237
|
)
|
|||
Depreciation, depletion and amortization
|
(839
|
)
|
|
(1,772
|
)
|
|
(2,265
|
)
|
|||
Impairment of oil and gas properties
|
(4,317
|
)
|
|
(13,144
|
)
|
|
(3,737
|
)
|
|||
Income tax benefit (based on FCX's U.S. federal statutory tax rate)
|
—
|
|
b
|
5,368
|
|
|
958
|
|
|||
Results of operations from oil and gas producing activities
|
$
|
(5,472
|
)
|
|
$
|
(8,769
|
)
|
|
$
|
(1,571
|
)
|
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 in 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
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Oil
|
|
Gas
|
|
Total
|
|||
|
|
(MMBbls)
a,b
|
|
(Bcf)
a
|
|
(MMBOE)
a
|
|||
2015
|
|
|
|
|
|
|
|||
Proved reserves:
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
|
288
|
|
|
610
|
|
|
390
|
|
Extensions and discoveries
|
|
11
|
|
|
43
|
|
|
17
|
|
Acquisitions of reserves in-place
|
|
—
|
|
|
—
|
|
|
—
|
|
Revisions of previous estimates
|
|
(54
|
)
|
|
(287
|
)
|
|
(102
|
)
|
Sale of reserves in-place
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Production
|
|
(38
|
)
|
|
(90
|
)
|
|
(53
|
)
|
Balance at end of year
|
|
207
|
|
|
274
|
|
|
252
|
|
|
|
|
|
|
|
|
|||
Proved developed reserves at December 31, 2015
|
|
129
|
|
|
245
|
|
|
169
|
|
|
|
|
|
|
|
|
|||
Proved undeveloped reserves at December 31, 2015
|
|
78
|
|
|
29
|
|
|
83
|
|
2014
|
|
|
|
|
|
|
|||
Proved reserves:
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
|
370
|
|
|
562
|
|
|
464
|
|
Extensions and discoveries
|
|
10
|
|
|
35
|
|
|
16
|
|
Acquisitions of reserves in-place
|
|
14
|
|
|
9
|
|
|
16
|
|
Revisions of previous estimates
|
|
(10
|
)
|
|
140
|
|
|
13
|
|
Sale of reserves in-place
|
|
(53
|
)
|
|
(54
|
)
|
|
(62
|
)
|
Production
|
|
(43
|
)
|
|
(82
|
)
|
|
(57
|
)
|
Balance at end of year
|
|
288
|
|
|
610
|
|
|
390
|
|
|
|
|
|
|
|
|
|||
Proved developed reserves at December 31, 2014
|
|
184
|
|
|
369
|
|
|
246
|
|
|
|
|
|
|
|
|
|||
Proved undeveloped reserves at December 31, 2014
|
|
104
|
|
|
241
|
|
|
144
|
|
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
,
9
MMBbls (
6
MMBbls of developed and
3
MMBbls of undeveloped) at
December 31, 2015
, and
10
MMBbls (
7
MMBbls of developed and
3
MMBbls of undeveloped) at
December 31, 2014
.
|
|
2016
|
|
2015
|
|
2014
|
||||||
Future cash inflows
|
$
|
345
|
|
|
$
|
10,536
|
|
|
$
|
29,504
|
|
Future production expense
|
(175
|
)
|
|
(4,768
|
)
|
|
(10,991
|
)
|
|||
Future development costs
a
|
(439
|
)
|
|
(4,130
|
)
|
|
(6,448
|
)
|
|||
Future income tax expense
|
—
|
|
|
—
|
|
|
(2,487
|
)
|
|||
Future net cash flows
|
(269
|
)
|
|
1,638
|
|
|
9,578
|
|
|||
Discounted at 10% per year
|
32
|
|
|
(246
|
)
|
|
(3,157
|
)
|
|||
Standardized Measure
|
$
|
(237
|
)
|
|
$
|
1,392
|
|
|
$
|
6,421
|
|
a.
|
Includes estimated asset retirement costs of
$0.4 billion
at
December 31, 2016
,
$1.9 billion
at
December 31, 2015
, and
$1.8 billion
at
December 31, 2014
.
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
|
$
|
1,392
|
|
|
$
|
6,421
|
|
|
$
|
9,417
|
|
Changes during the year:
|
|
|
|
|
|
|
||||||
Sales, net of production expenses
|
|
(831
|
)
|
|
(928
|
)
|
|
(3,062
|
)
|
|||
Net changes in sales and transfer prices, net of production expenses
|
|
(341
|
)
|
|
(7,766
|
)
|
|
(2,875
|
)
|
|||
Extensions, discoveries and improved recoveries
|
|
—
|
|
|
45
|
|
|
194
|
|
|||
Changes in estimated future development costs, including timing and other
|
|
146
|
|
|
1,287
|
|
|
(498
|
)
|
|||
Previously estimated development costs incurred during the year
|
|
295
|
|
|
985
|
|
|
982
|
|
|||
Sales of reserves in-place
|
|
(1,049
|
)
|
|
—
|
|
|
(1,323
|
)
|
|||
Other purchases of reserves in-place
|
|
—
|
|
|
—
|
|
|
487
|
|
|||
Revisions of quantity estimates
|
|
12
|
|
|
(1,170
|
)
|
|
399
|
|
|||
Accretion of discount
|
|
139
|
|
|
797
|
|
|
1,195
|
|
|||
Net change in income taxes
|
|
—
|
|
|
1,721
|
|
|
1,505
|
|
|||
Total changes
|
|
(1,629
|
)
|
|
(5,029
|
)
|
|
(2,996
|
)
|
|||
Balance at end of year
|
|
$
|
(237
|
)
|
|
$
|
1,392
|
|
|
$
|
6,421
|
|
|
Number of Securities To be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
||||
|
(a)
|
|
(b)
|
(c)
|
||||
Equity compensation plans approved by security holders
|
58,719,008
|
|
a
|
$
|
30.62
|
|
71,938,292
|
|
Equity compensation plans not approved by security holders
|
4,836,085
|
|
b
|
$
|
26.50
|
|
—
|
|
Total
|
63,555,093
|
|
|
$
|
30.26
|
|
71,938,292
|
|
a.
|
Includes shares of our common stock issuable upon the vesting of
4,316,763
RSUs and
5,178,000
performance share units(PSUs) at maximum performance levels, and the termination of deferrals with respect to
1,119,800
RSUs that were vested as of December 31, 2016. These awards are not reflected in column (b) because they do not have an exercise price. The number of securities to be issued in column (a) does not include 1,430 outstanding stock appreciation rights (SARs), which were granted under the plan but are payable solely in cash. The number of securities to be issued in column (a) also does not include RSUs granted under our phantom stock plan, which are payable solely in cash.
|
b.
|
Represents securities to be issued under awards assumed in our acquisitions of Plains Exploration, McMoRan Exploration Co. and Phelps Dodge. Includes shares issuable upon the vesting of
181,448
RSUs that were assumed in prior acquisitions. These awards are not reflected in column (b) because they do not have an exercise price. The number of securities to be issued in column (a) does not include
1,032,723
outstanding SARs and
338,489
RSUs, which were assumed in prior acquisitions and are payable solely in cash.
|
/s/ Richard C. Adkerson
|
Vice Chairman of the Board, President and Chief Executive Officer
|
Richard C. Adkerson
|
(Principal Executive Officer)
|
|
|
/s/ Kathleen L. Quirk
|
Executive Vice President, Chief Financial Officer and Treasurer
|
Kathleen L. Quirk
|
(Principal Financial Officer)
|
|
|
*
|
Vice President and Controller - Financial Reporting
|
C. Donald Whitmire, Jr.
|
(Principal Accounting Officer)
|
|
|
*
|
Chairman of the Board
|
Gerald J. Ford
|
|
|
|
*
|
Director
|
Lydia H. Kennard
|
|
|
|
*
|
Director
|
Andrew Langham
|
|
|
|
*
|
Director
|
Jon C. Madonna
|
|
|
|
*
|
Director
|
Courtney Mather
|
|
|
|
*
|
Director
|
Dustan E. McCoy
|
|
|
|
*
|
Director
|
Frances Fragos Townsend
|
|
|
|
* By: /s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Attorney-in-Fact
|
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
F-1
|
Schedule II-Valuation and Qualifying Accounts
|
F-2
|
|
|
|
|
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, 2016
|
|
$
|
4,183
|
|
|
$
|
1,852
|
|
|
$
|
23
|
|
a
|
$
|
—
|
|
|
$
|
6,058
|
|
Year Ended December 31, 2015
|
|
2,434
|
|
|
1,749
|
|
|
—
|
|
|
—
|
|
|
4,183
|
|
|||||
Year Ended December 31, 2014
|
|
2,487
|
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
2,434
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reserves for non-income taxes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2016
|
|
$
|
83
|
|
|
$
|
13
|
|
|
$
|
(3
|
)
|
|
$
|
(29
|
)
|
b
|
$
|
64
|
|
Year Ended December 31, 2015
|
|
93
|
|
|
9
|
|
|
—
|
|
|
(19
|
)
|
b
|
83
|
|
|||||
Year Ended December 31, 2014
|
|
78
|
|
|
16
|
|
|
—
|
|
|
(1
|
)
|
b
|
93
|
|
a.
|
Relates to a valuation allowance for tax benefits primarily associated with actuarial losses for U.S. defined benefit plans included in other comprehensive loss.
|
b.
|
Represents amounts paid or adjustments to reserves based on revised estimates.
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.8
|
Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034)
.
|
|
8-K
|
001-11307-01
|
11/14/2014
|
4.9
|
Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 2.375% Senior Notes due 2018, the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
3/7/2013
|
4.10
|
Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 2.375% Senior Notes due 2018, the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.11
|
Indenture dated as of December 13, 2016, among FCX, Freeport-McMoRan Oil & Gas LLC, as guarantor, and U.S. Bank National Association, as Trustee (relating to the 6.125% Senior Notes due 2019, the 6.50% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.12
|
Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-31470
|
3/13/2007
|
4.13
|
Twelfth Supplemental Indenture dated as of March 29, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021).
|
|
8-K
|
001-31470
|
3/29/2011
|
4.14
|
Thirteenth Supplemental Indenture dated as of November 21, 2011 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.75% Senior Notes due 2022).
|
|
8-K
|
001-31470
|
11/22/2011
|
4.15
|
Fourteenth Supplemental Indenture dated as of April 27, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019).
|
|
8-K
|
001-31470
|
4/27/2012
|
4.16
|
Sixteenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.5% Senior Notes due 2020).
|
|
8-K
|
001-31470
|
10/26/2012
|
4.17
|
Seventeenth Supplemental Indenture dated as of October 26, 2012 to the Indenture dated as of March 13, 2007, among Plains Exploration & Production Company, the Subsidiary Guarantors parties thereto and Wells Fargo Bank, N.A., as Trustee (relating to the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-31470
|
10/26/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.18
|
Eighteenth Supplemental Indenture dated as of May 31, 2013 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FCX, as Parent Guarantor, Plains Exploration & Production Company, as Original Issuer, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022, the 6.125% Senior Notes due 2019, the 6.5% Senior Notes due 2020, and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
6/3/2013
|
4.19
|
Nineteenth Supplemental Indenture dated as of September 30, 2016 to the Indenture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas Inc., as Co-Issuer, FMSTP Inc., as Additional Co-Issuer, FCX, as Parent Guarantor, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019, the 6.50% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022 and the 6.875% Senior Notes due 2023).
|
|
10-Q
|
001-11307-01
|
11/9/2016
|
4.20
|
Twentieth Supplemental Indenture dated as of December 13, 2016 to the Indendture dated as of March 13, 2007, among Freeport-McMoRan Oil & Gas LLC, as Successor Issuer, FCX Oil & Gas LLC, as Co-Issuer, FMSTP Inc., as Additional Co-Issuer, FCX, as Parent Guarantor, and Wells Fargo Bank, N.A., as Trustee (relating to the 6.125% Senior Notes due 2019, the 6.50% Senior Notes due 2020, the 6.625% Senior Notes due 2021, the 6.75% Senior Notes due 2022 and the 6.875% Senior Notes due 2023).
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.21
|
Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
S-3
|
333-36415
|
9/25/1997
|
4.22
|
Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).
|
|
8-K
|
001-00082
|
11/3/1997
|
4.23
|
Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).
|
|
8-K
|
001-00082
|
5/30/2001
|
4.24
|
Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-00082
|
3/7/2005
|
4.25
|
Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).
|
|
10-K
|
001-00082
|
2/26/2016
|
|
|
|
|
|
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
4.26
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.125% Senior Notes due 2019.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.27
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.50% Senior Notes due 2020.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.28
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.625% Senior Notes due 2021.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.29
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.75% Senior Notes due 2022.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
4.30
|
Registration Rights Agreement dated as of December 13, 2016 among FCX, Freeport-McMoRan Oil & Gas LLC, as Guarantor, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Dealer Managers, relating to the 6.875% Senior Notes due 2023.
|
|
8-K
|
001-11307-01
|
12/13/2016
|
10.1
|
Contract of Work dated December 30, 1991, between the Government of the Republic of Indonesia and PT Freeport Indonesia.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.2
|
Memorandum of Understanding dated as of July 25, 2014, between the Directorate General of Mineral and Coal, the Ministry of Energy and Mineral Resources and PT Freeport Indonesia on Adjustment of the Contract of Work.
|
|
8-K
|
001-11307-01
|
7/8/2014
|
10.3
|
Extension dated as of January 23, 2015, to Memorandum of Understanding Between the Government of the Republic of Indonesia and PT Freeport Indonesia dated as of July 25, 2014.
|
|
10-K
|
001-11307-01
|
2/27/2015
|
10.4
|
Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. RTZ-CRA Indonesia (a subsidiary of Rio Tinto PLC) with respect to a certain contract of work.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.5
|
First Amendment dated April 30, 1999, Second Amendment dated February 22, 2006, Third Amendment dated October 7, 2009, Fourth Amendment dated November 14, 2013, and Fifth Amendment dated August 4, 2014, to the Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. Rio Tinto Indonesia (formerly P.T. RTZ-CRA Indonesia).
|
|
10-K
|
001-11307-01
|
2/27/2015
|
10.6
|
Sixth Amendment dated September 17, 2015, to the Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. Rio Tinto Indonesia.
|
|
10-Q
|
001-11307-01
|
11/6/2015
|
10.7
|
Seventh Amendment dated October 21, 2016, to the Participation Agreement dated as of October 11, 1996, between PT Freeport Indonesia and P.T. Rio Tinto Indonesia.
|
|
10-Q
|
001-11307-01
|
11/9/2016
|
10.8
|
Agreement dated as of October 11, 1996, to Amend and Restate Trust Agreement among PT Freeport Indonesia, FCX, the RTZ Corporation PLC (now Rio Tinto PLC), P.T. RTZ-CRA Indonesia, RTZ Indonesian Finance Limited and First Trust of New York, National Association, and The Chase Manhattan Bank, as Administrative Agent, JAA Security Agent and Security Agent.
|
|
8-K
|
001-09916
|
11/13/1996
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.9
|
Amendment dated July 21, 2015, to the Restated Trust Agreement dated as of October 11, 1996, among PT Freeport Indonesia, PT Rio Tinto Indonesia (formerly P.T. RTZ-CRA Indonesia), U.S. Bank National Association, as trustee, JP Morgan Chase Bank, N.A., as depository, and the Secured Creditors.
|
|
10-Q
|
001-11307-01
|
8/10/2015
|
10.10
|
Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
S-3
|
333-72760
|
11/5/2001
|
10.11
|
Amendment No. 1, dated as of March 19, 1998, Amendment No. 2 dated as of December 1, 2000, Amendment No. 3 dated as of January 1, 2003, Amendment No. 4 dated as of May 10, 2004, Amendment No. 5 dated as of March 19, 2009, Amendment No. 6 dated as of January 1, 2011, and Amendment No. 7 dated as of October 29, 2012, to the Concentrate Purchase and Sales Agreement dated effective December 11, 1996, between PT Freeport Indonesia and PT Smelting.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.12
|
Distribution Agreement, dated as of August 10, 2015, by and between FCX and J.P. Morgan Securities LLC.
|
|
8-K
|
001-11307-01
|
8/10/2015
|
10.13
|
Distribution Agreement, dated as of September 18, 2015, by and among FCX, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and Scotia Capital (USA) Inc.
|
|
8-K
|
001-11307-01
|
9/18/2015
|
10.14
|
Distribution Agreement, dated as of May 16, 2016, by and among FCX, Noble Drilling (U.S.) LLC, J.P. Morgan Securities LLC and HSBC Securities (USA) Inc.
|
|
8-K
|
001-11307-01
|
5/16/2016
|
10.15
|
Distribution Agreement, dated as of July 27, 2016, by and among FCX, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BTIG, LLC, CIBC World Markets Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC.
|
|
8-K
|
001-11307-01
|
7/27/2016
|
10.16
|
Nomination and Standstill Agreement dated October 7, 2015, by and between FCX, Carl C. Icahn, High River Limited Partnership, Hopper Investments LLC, Barberry Corp., Icahn Partners Master Fund LP, Icahn Offshore LP, Icahn Partners LP, Icahn Onshore LP, Icahn Capital LP, IPH GP LLC, Icahn Enterprises Holdings L.P., Icahn Enterprises G.P. Inc., Beckton Corp., Andrew Langham and Courtney Mather.
|
|
8-K
|
001-11307-01
|
10/7/2015
|
10.17
|
Confidentiality Agreement dated October 7, 2015, by and between FCX, Carl C. Icahn, High River Limited Partnership, Hopper Investments LLC, Barberry Corp., Icahn Partners Master Fund LP, Icahn Offshore LP, Icahn Partners LP, Icahn Onshore LP, Icahn Capital LP, IPH GP LLC, Icahn Enterprises Holdings L.P., Icahn Enterprises G.P. Inc., Beckton Corp., Andrew Langham and Courtney Mather.
|
|
8-K
|
001-11307-01
|
10/7/2015
|
10.18
|
Third Amended and Restated Joint Venture and Shareholders Agreement dated as of December 11, 2003 among PT Freeport Indonesia, Mitsubishi Corporation, Nippon Mining & Metals Company, Limited and PT Smelting, as amended by the First Amendment dated as of September 30, 2005, and the Second Amendment dated as of April 30, 2008.
|
|
10-K
|
001-00082
|
2/27/2015
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.19
|
Participation Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation, Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Summit Global Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
3/22/2005
|
10.20
|
Shareholders Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Summit Global Management B.V., a Dutch corporation, SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
6/7/2005
|
10.21
|
Term Loan Agreement dated as of February 14, 2013, among FCX, And Freeport-McMoRan Oil & Gas LLC, as borroweres, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
8-K
|
001-11307-01
|
2/19/2013
|
10.22
|
First Amendment dated as of February 27, 2015, to Term Loan Agreement dated as of February 14, 2013, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.23
|
Second Amendment dated as of December 9, 2015 to the Term Loan Agreement dated as of February 14, 2013, as amended by the First Amendment dated as of February 27, 2015, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
8-K
|
001-11307-01
|
12/9/2015
|
10.24
|
Amendment and Restatement Agreement dated as of February 26, 2016, relating to the Term Loan Agreement dated as of February 14, 2013, as amended, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and each of the lenders from time to time party thereto.
|
|
10-K
|
001-11307-01
|
2/26/2016
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.19
|
Participation Agreement, dated as of March 16, 2005, among Phelps Dodge Corporation, Cyprus Amax Minerals Company, a Delaware corporation, Cyprus Metals Company, a Delaware corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Summit Global Management, B.V., a Dutch corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
3/22/2005
|
10.20
|
Shareholders Agreement, dated as of June 1, 2005, among Phelps Dodge Corporation, Cyprus Climax Metals Company, a Delaware corporation, Sumitomo Corporation, a Japanese corporation, Sumitomo Metal Mining Co., Ltd., a Japanese corporation, Summit Global Management B.V., a Dutch corporation, SMM Cerro Verde Netherlands, B.V., a Dutch corporation, Compañia de Minas Buenaventura S.A.A., a Peruvian sociedad anonima abierta, and Sociedad Minera Cerro Verde S.A.A., a Peruvian sociedad anonima abierta.
|
|
8-K
|
001-00082
|
6/7/2005
|
10.21
|
Term Loan Agreement dated as of February 14, 2013, among FCX, And Freeport-McMoRan Oil & Gas LLC, as borroweres, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
8-K
|
001-11307-01
|
2/19/2013
|
10.22
|
First Amendment dated as of February 27, 2015, to Term Loan Agreement dated as of February 14, 2013, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.23
|
Second Amendment dated as of December 9, 2015 to the Term Loan Agreement dated as of February 14, 2013, as amended by the First Amendment dated as of February 27, 2015, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as co-documentation agents, and each of the lenders party thereto.
|
|
8-K
|
001-11307-01
|
12/9/2015
|
10.24
|
Amendment and Restatement Agreement dated as of February 26, 2016, relating to the Term Loan Agreement dated as of February 14, 2013, as amended, among FCX and Freeport-McMoRan Oil & Gas LLC, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent and each of the lenders from time to time party thereto.
|
|
10-K
|
001-11307-01
|
2/26/2016
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.33*
|
Amended and Restated Executive Employment Agreement dated effective as of December 2, 2008, between FCX and Kathleen L. Quirk.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.34*
|
Amendment to Amended and Restated Executive Employment Agreement dated December 2, 2008, by and between FCX and Kathleen L. Quirk, dated April 27, 2011.
|
|
8-K
|
001-11307-01
|
4/29/2011
|
FCX Executive Services Program
|
X
|
|
|
|
|
10.36*
|
FCX Supplemental Executive Retirement Plan, as amended and restated.
|
|
8-K
|
001-11307-01
|
2/5/2007
|
10.37*
|
FCX Supplemental Executive Capital Accumulation Plan.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.38*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment One.
|
|
10-Q
|
001-11307-01
|
5/12/2008
|
10.39*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Two.
|
|
10-K
|
001-11307-01
|
2/26/2009
|
10.40*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Three.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.41*
|
FCX Supplemental Executive Capital Accumulation Plan Amendment Four.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.42*
|
FCX 2005 Supplemental Executive Capital Accumulation Plan, as amended and restated effective January 1, 2015.
|
|
10-K
|
001-00082
|
2/27/2015
|
10.43*
|
FCX Amended and Restated 1999 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.44*
|
FCX 2003 Stock Incentive Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
5/10/2007
|
10.45*
|
FCX 2004 Director Compensation Plan, as amended and restated.
|
|
10-Q
|
001-11307-01
|
8/6/2010
|
10.46*
|
FCX Amended and Restated 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.47*
|
Form of Notice of Grant of Nonqualified Stock Options for grants under the FCX 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan and the 2006 Stock Incentive Plan.
|
|
10-K
|
001-11307-01
|
2/29/2008
|
10.48*
|
Form of Notice of Grant of Nonqualified Stock Options and Restricted Stock Units under the 2006 Stock Incentive Plan (for grants made to non-management directors and advisory directors).
|
|
8-K
|
001-11307-01
|
6/14/2010
|
10.49*
|
Form of Nonqualified Stock Options Grant Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.50*
|
Form of Restricted Stock Unit Agreement (effective February 2012).
|
|
10-K
|
001-11307-01
|
2/27/2012
|
10.51*
|
Form of Nonqualified Stock Options Grant Agreement under the FCX stock incentive plans (effective February 2014).
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.52*
|
Form of Restricted Stock Unit Agreement under the FCX stock incentive plans (effective February 2014).
|
|
10-K
|
001-11307-01
|
2/27/2014
|
10.53*
|
Form of Performance Share Unit Agreement (effective February 2014).
|
|
8-K
|
001-11307-01
|
3/3/2014
|
10.54*
|
FCX Annual Incentive Plan (For Fiscal Years Ending 2014 - 2018).
|
|
8-K
|
001-11307-01
|
6/18/2014
|
Form of Notice of Grant of Restricted Stock Units (for grants made to non-management directors).
|
X
|
|
|
|
|
10.56*
|
Form of Restricted Stock Unit Agreement under the FCX stock incentive plans (effective February 2015).
|
|
10-K
|
001-00082
|
2/27/2015
|
FREEPORT-McMoRan INC.
|
|||||
EXHIBIT INDEX
|
|||||
|
|
Filed
|
|
|
|
Exhibit
|
|
with this
|
Incorporated by Reference
|
||
Number
|
Exhibit Title
|
Form 10-K
|
Form
|
File No.
|
Date Filed
|
10.57*
|
FCX 2016 Stock Incentive Plan
|
|
8-K
|
001-11307-01
|
6/9/2016
|
FCX Computation of Ratio of Earnings to Fixed Charges.
|
X
|
|
|
|
|
FCX Principles of Business Conduct.
|
X
|
|
|
|
|
Subsidiaries of FCX.
|
X
|
|
|
|
|
Consent of Ernst & Young LLP.
|
X
|
|
|
|
|
Certified resolution of the Board of Directors of FCX authorizing this report to be signed on behalf of any officer or director pursuant to a Power of Attorney.
|
X
|
|
|
|
|
Powers of Attorney pursuant to which this report has been signed on behalf of certain officers and directors of FCX.
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).
|
X
|
|
|
|
|
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.
|
X
|
|
|
|
|
Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.
|
X
|
|
|
|
|
Mine Safety Disclosure.
|
X
|
|
|
|
|
101.INS
|
XBRL Instance Document.
|
X
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema.
|
X
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
X
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
X
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
X
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
X
|
|
|
|
|
For the years ended December 31,
|
|
||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses)
|
$
|
(3,472
|
)
|
|
(14,128
|
)
|
|
(800
|
)
|
|
4,390
|
|
|
4,961
|
|
|
Amortization of previously capitalized interest
|
84
|
|
|
71
|
|
|
55
|
|
|
45
|
|
|
41
|
|
|
|
Less capitalized interest
|
(99
|
)
|
|
(215
|
)
|
|
(235
|
)
|
|
(174
|
)
|
|
(81
|
)
|
|
|
Less preferred dividends of a consolidated subsidiary
|
(38
|
)
|
|
(47
|
)
|
|
(53
|
)
|
|
(31
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Losses) earnings from continuing operations before fixed charges
|
$
|
(3,525
|
)
|
|
(14,319
|
)
|
|
(1,033
|
)
|
|
4,230
|
|
|
4,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net of capitalized interest
|
$
|
726
|
|
|
618
|
|
|
648
|
|
|
533
|
|
|
179
|
|
|
Capitalized interest
|
99
|
|
|
215
|
|
|
235
|
|
|
174
|
|
|
81
|
|
|
|
Amortization of debt expenses, premiums and and discounts
|
29
|
|
|
(1
|
)
|
|
(42
|
)
|
|
(32
|
)
|
|
7
|
|
|
|
Interest portion of rental expense
|
18
|
|
|
18
|
|
|
21
|
|
|
18
|
|
|
17
|
|
|
|
Preferred dividends of a consolidated subsidiary
|
38
|
|
|
47
|
|
|
53
|
|
|
31
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total fixed charges
|
$
|
910
|
|
|
897
|
|
|
915
|
|
|
724
|
|
|
284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted earnings
|
(2,615
|
)
|
|
(13,422
|
)
|
|
(118
|
)
|
|
4,954
|
|
|
5,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio of earnings to fixed charges
a
|
$
|
—
|
|
b
|
—
|
|
c
|
—
|
|
d
|
6.8
|
|
|
18.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
For purposes of computing the consolidated ratio of earning to fixed charges, earnings consist of (loss) income before income taxes and equity in affiliated companies' net earnings (losses). Noncontrolling interests were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; the portion of rental expense that FCX believes to be representative of interest; and preferred stock dividends of a consolidated subsidiary. The ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges for the years presented because no shares of preferred stock were outstanding during these years.
|
b.
|
As a result of the loss recorded in 2016, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $3.5 billion to achieve coverage of 1:1 in 2016.
|
c.
|
As a result of the loss recorded in 2015, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $14.3 billion to achieve coverage of 1:1 in 2015.
|
d.
|
As a result of the loss recorded in 2014, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $1.0 billion to achieve coverage of 1:1 in 2014.
|
List of Subsidiaries of
|
||
Freeport-McMoRan Inc.
|
||
|
|
|
|
|
|
Entity(1)
|
Jurisdiction of Organization
|
|
Climax Molybdenum Company
|
Delaware
|
|
Cyprus Amax Minerals Company
|
Delaware
|
|
Freeport-McMoRan Morenci Inc.
|
Delaware
|
|
Freeport Minerals Corporation
|
Delaware
|
|
PT Freeport Indonesia
|
Indonesia
|
|
Sociedad Minera Cerro Verde S.A.A.
|
Peru
|
|
|
|
|
|
|
|
(1)
|
Omitted from this list are subsidiaries that, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary as of December 31, 2016.
|
1)
|
Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc. 1999 Stock Incentive Plan,
|
2)
|
Registration Statement (Form S-8 No. 333-105535) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan,
|
3)
|
Registration Statement (Form S-8 No. 333-115292) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2004 Director Compensation Plan,
|
4)
|
Registration Statement (Form S-8 No. 333-136084) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
5)
|
Registration Statement (Form S-8 No. 333-141358) pertaining to the Phelps Dodge 2003 Stock Option and Restricted Stock Plan and the Phelps Dodge 1998 Stock Option and Restricted Stock Plan,
|
6)
|
Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,
|
7)
|
Registration Statement (Form S-8 No. 333-189047) pertaining to the Plains Exploration & Production Company 2010 Incentive Award Plan; the Plains Exploration & Production 2004 Stock Incentive Plan; the McMoRan Exploration Co. Amended and Restated 2008 Stock Incentive Plan; the McMoRan Exploration Co. 2005 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2004 Director Compensation Plan, as amended and restated; the McMoRan Exploration Co. 2003 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2001 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2000 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 1998 Stock Option Plan, as amended and restated; and the McMoRan Exploration Co. 1998 Stock Option Plan for Non-Employee Directors, as amended and restated,
|
8)
|
Registration Statement (Form S-3 No. 333-206257) pertaining to the Freeport-McMoRan Inc. 2015 Automatic Shelf Registration Statement, and
|
9)
|
Registration Statement (Form S-8 No. 333-212523) pertaining to the Freeport-McMoRan Inc. 2016 Stock Incentive Plan;
|
|
/s/ Douglas N. Currault II
|
|
Douglas N. Currault II
|
|
Secretary
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
/s/ C. Donald Whitmire, Jr.
|
|
C. Donald Whitmire, Jr.
|
|
/s/ Gerald J. Ford
|
|
Gerald J. Ford
|
|
/s/ Jon C. Madonna
|
|
Jon C. Madonna
|
|
/s/ Dustan E. McCoy
|
|
Dustan E. McCoy
|
|
/s/ Lydia H. Kennard
|
|
Lydia H. Kennard
|
|
/s/ Frances Fragos Townsend
|
|
Frances Fragos Townsend
|
|
/s/ Andrew Langham
|
|
Andrew Langham
|
|
/s/ Courtney Mather
|
|
Courtney Mather
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Freeport-McMoRan Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
/s/ Richard C. Adkerson
|
|
Richard C. Adkerson
|
|
Vice Chairman,
|
|
President and Chief Executive Officer
|
|
/s/ Kathleen L. Quirk
|
|
Kathleen L. Quirk
|
|
Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
•
|
Section 104 S&S Citations
: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
|
•
|
Section 104(b) Orders
: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.
|
•
|
Section 104(d) Citations and Orders
: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).
|
•
|
Section 110(b)(2) Violations
: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”
|
•
|
Section 107(a) Orders
: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Have
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pattern of
|
|
Pattern of
|
|||||||
|
|
|
|
|
|
|
|
Section
|
|
|
|
|
|
|
|
|
|
Violations
|
|
Violation
|
|||||||
|
|
|
|
Section
|
|
Section
|
|
104(d)
|
|
Section
|
|
Section
|
|
|
|
Mining
|
|
Under
|
|
Under
|
|||||||
|
|
|
|
104 S&S
|
|
104(b)
|
|
Citations
|
|
110(b)(2)
|
|
107(a)
|
|
Proposed
|
|
Related
|
|
Section
|
|
Section
|
|||||||
|
|
|
|
Citations
|
|
Orders
|
|
and Orders
|
|
Violations
|
|
Orders
|
|
Assessments
(2)
|
|
Fatalities
|
|
104(e)
|
|
104(e)
|
|||||||
Mine ID
(1)
|
|
Mine or Operation Name
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
($)
|
|
(#)
|
|
(yes/no)
|
|
(yes/no)
|
|||||||
0200137
|
|
Freeport-McMoRan Bagdad Inc. (Bagdad)
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,687
|
|
|
—
|
|
|
No
|
|
No
|
2900708
|
|
Freeport-McMoRan Chino Mines Company (Chino)
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
51,045
|
|
|
—
|
|
|
No
|
|
No
|
0200112
|
|
Freeport-McMoRan Miami Inc. (Miami)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,278
|
|
|
—
|
|
|
No
|
|
No
|
0200024
|
|
Freeport-McMoRan Morenci Inc. (Morenci)
|
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
383,664
|
|
|
—
|
|
|
No
|
|
No
|
0203131
|
|
Freeport-McMoRan Safford Inc. (Safford)
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,586
|
|
|
—
|
|
|
No
|
|
No
|
0200144
|
|
Freeport-McMoRan Sierrita Inc. (Sierrita)
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,212
|
|
|
—
|
|
|
No
|
|
No
|
2900159
|
|
Tyrone Mine (Tyrone)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,093
|
|
|
—
|
|
|
No
|
|
No
|
0500790
|
|
Henderson Operations (Henderson)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,041
|
|
|
—
|
|
|
No
|
|
No
|
0502256
|
|
Climax Mine (Climax)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,379
|
|
|
—
|
|
|
No
|
|
No
|
|
|
Freeport-McMoRan Cobre Mining Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2900725
|
|
Open Pit & Continental Surf Comp
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
No
|
|
No
|
2900731
|
|
Continental Mill Complex
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
No
|
|
No
|
0201656
|
|
Copper Queen Branch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
No
|
|
No
|
0202579
|
|
Cyprus Tohono Corporation
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,416
|
|
|
—
|
|
|
No
|
|
No
|
0203262
|
|
Twin Buttes Mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
2902395
|
|
Chieftain 2100 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
0203254
|
|
Warrior 1800 Screening Plant
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
No
|
|
No
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.
|
(2)
|
Amounts represent the total dollar value of proposed assessments received on or before
February 15, 2017
, for citations or orders issued by MSHA during the year ended
December 31, 2016
. FCX is contesting approximately $150 thousand of these proposed assessments.
|
•
|
Contest Proceedings
- A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.
|
•
|
Civil Penalty Proceedings
- A civil penalty proceeding is an administrative proceeding that may be filed by an operator to challenge a civil penalty MSHA has proposed for an alleged violation contained in a citation or order. The validity of the citation may be challenged in this proceeding as well.
|
•
|
Discrimination Proceedings
- Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.
|
•
|
Compensation Proceedings
- A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.
|
•
|
Temporary Relief -
Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.
|
•
|
Appeals -
An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.
|
|
|
Legal Actions Pending at December 31, 2016
2
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Contest
|
|
Civil Penalty
|
|
Discrimination
|
|
Compensation
|
|
Temporary
|
|
|
|
|
|
Legal Actions
|
|
Legal Actions
|
|
|||||||||
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Proceedings
|
|
Relief
|
|
Appeals
|
|
Total
|
|
Instituted
(2)
|
|
Resolved
(3)
|
|
|||||||||
Mine ID
(1)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
(#)
|
|
|||||||||
0200137
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900708
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200112
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200024
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
13
|
|
|
0203131
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0200144
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900159
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0500790
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0502256
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2900725
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2900731
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0201656
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0202579
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203262
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2902395
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0203254
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.
|
(2)
|
Legal actions pending at
December 31, 2016
, and legal actions instituted during the year are based on the date that a docket number was assigned to the proceeding.
|
(3)
|
Legal actions resolved during the year are based on the date that the settlement motion resolving disputed matters is filed with the Commission and the matter is effectively closed by MSHA.
|