Business Segments (Unaudited)

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

FCX has organized its operations into five primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis. Therefore, FCX concluded that its operating segments include individual mines or operations. Operating segments that meet certain thresholds are reportable segments.

Intersegment Sales. Intersegment sales between FCX’s operations are based on similar arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

Allocations. FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to a mine or operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level, whereas foreign income taxes are recorded and managed at the applicable country. In addition, most exploration and research activities are managed at the corporate level, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

Business Segments

(In millions)	North America Copper Mines						South America						Indonesia				Africa
																							Atlantic			Corporate,
																							Copper			Other &
			Other				Cerro		Other										Molyb-		Rod &		Smelting			Elimi-			FCX
	Morenci		Mines		Total		Verde		Mines		Total		Grasberg				Tenke		denum		Refining		& Refining			nations			Total
Three Months Ended March 31, 2012
Revenues:
Unaffiliated customers	$	13	$	17	$	30	$	449	$	526	$	975	$	953		a	$	303	$	340	$	1,298	$	704		$	2		$	4,605
Intersegment	513		913		1,426		127		152		279		(3		)		2		—		6		8			(1,718		)	—
Production and delivery	256		451		707		193		270		463		495				132		262		1,297		695			(1,623		)	2,428
Depreciation, depletion and amortization	31		62		93		30		32		62		46				32		15		2		10			7			267
Selling, general and administrative expenses	—		1		1		1		1		2		33				2		3		—		5			58			104
Exploration and research expenses	—		—		—		—		—		—		—				—		1		—		—			61			62
Environmental obligations and shutdown costs	—		—		—		—		—		—		—				—		—		—		—			10			10
Operating income (loss)	239		416		655		352		375		727		376				139		59		5		2			(229		)	1,734
Interest expense, net	—		1		1		5		—		5		—				—		—		—		3			54			63
Provision for income taxes	—		—		—		123		117		240		150				29		—		—		—			72			491
Total assets at March 31, 2012	2,146		5,255		7,401		5,300		4,127		9,427		5,613				4,138		2,543		328		1,033			2,422			32,905
Capital expenditures	44		99		143		69		83		152		182				127		95		3		3			2			707
Three Months Ended March 31, 2011
Revenues:
Unaffiliated customers	$	136	$	16	$	152	$	668	$	595	$	1,263	$	1,372		a	$	309	$	374	$	1,481	$	756		$	2		$	5,709
Intersegment	386		823		1,209		60		79		139		358				—		—		6		6			(1,718		)	—
Production and delivery	210		378		588		175		236		411		526				124		240		1,481		763			(1,756		)	2,377
Depreciation, depletion and amortization	28		30		58		34		23		57		57				28		14		2		10			6			232
Selling, general and administrative expenses	—		1		1		1		1		2		43				2		4		—		8			54			114
Exploration and research expenses	—		—		—		—		—		—		—				—		1		—		—			49			50
Operating income (loss)	284		430		714		518		414		932		1,104				155		115		4		(19		)	(69		)	2,936
Interest expense, net	1		1		2		—		—		—		1				2		—		—		4			89			98
Provision for income taxes	—		—		—		163		143		306		496				40		—		—		—			142			984
Total assets at March 31, 2011	1,991		4,623		6,614		4,573		3,427		8,000		5,440				3,630		2,068		384		1,437			3,435			31,008
Capital expenditures	29		90		119		24		116		140		125				11		71		3		8			28			505

a. Includes PT Freeport Indonesia’s sales to PT Smelting totaling $589 million in first-quarter2012 and $680 million in first-quarter2011.