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 September 30, 2012
Revenues:
Unaffiliated customers	$	39	$	10		$	49		$	504			$	491		$	995		$	845	^a	$	365	$	308	$	1,221	$	633		$	1		$	4,417
Intersegment	456		811			1,267			71				126			197			146			2		—		7		5			(1,624		)	—
Production and delivery	268		492			760			197				333			530			587			172		273		1,222		624			(1,576		)	2,592
Depreciation, depletion and amortization	31		57			88			39				35			74			54			42		18		2		11			9			298
Selling, general and administrative expenses	—		1			1			1				1			2			31			2		3		—		4			67			110
Exploration and research expenses	1		—			1			—				—			—			—			—		—		—		—			78			79
Environmental obligations and shutdown costs	—		—			—			—				—			—			—			—		—		—		—			(73		)	(73		)
Operating income (loss)	195		271			466			338				248			586			319			151		14		4		(1		)	(128		)	1,411

Interest expense, net	1		1			2			—				—			—			3			—		—		—		3			34			42
Provision for (benefit from) income taxes	—		—			—			(88		)	^b	72			(16		)	111			28		—		—		—			92			215
Total assets at September 30, 2012	2,297		5,528			7,825			5,704				4,232			9,936			6,393			4,490		2,580		330		1,192			1,771			34,517
Capital expenditures	108		164			272			180				87			267			237			131		44		2		4			14			971

Three Months Ended September 30, 2011
Revenues:
Unaffiliated customers	$	78	$	44		$	122		$	396			$	570		$	966		$	1,275	^a	$	275	$	332	$	1,389	$	834		$	2		$	5,195
Intersegment	450		847			1,297			105				(18		)	87			87			1		—		7		3			(1,482		)	—
Production and delivery	252		412			664			196				282			478			503			142		260		1,390		826			(1,693		)	2,570
Depreciation, depletion and amortization	27		40			67			32				32			64			62			32		14		2		11			5			257
Selling, general and administrative expenses	—		1			1			1				1			2			29			1		3		—		5			61			102
Exploration and research expenses	3		—			3			—				—			—			—			—		1		—		—			74			78
Environmental obligations and shutdown costs	1		(15		)	(14		)	—				—			—			—			—		—		—		—			52			38
Operating income (loss)	245		453			698			272				237			509			768			101		54		4		(5		)	21			2,150

Interest expense, net	—		1			1			—				—			—			7			2		—		—		4			64			78
Provision for income taxes	—		—			—			154				48			202			333			20		—		—		—			253			808
Total assets at September 30, 2011	1,981		4,966			6,947			4,886				3,475			8,361			5,437			3,791		2,342		323		955			3,552			31,708
Capital expenditures	21		117			138			64				110			174			162			49		155		2		5			32			717


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $520 million in third-quarter 2012 and $665 million in third-quarter 2011.


b.	Included a net credit of $234 million for the reversal of a net deferred tax liability (refer to Note 4 for further discussion).




(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
Nine Months Ended September 30, 2012
Revenues:
Unaffiliated customers	$	157	$	22		$	179		$	1,285		$	1,563	$	2,848	$	2,673	^a	$	985	$	982	$	3,802	$	2,023		$	5		$	13,497
Intersegment	1,374		2,646			4,020			349			265		614		224			9		—		20		22			(4,909		)	—
Production and delivery	803		1,446			2,249			575			908		1,483		1,676			456		812		3,800		1,988			(4,822		)	7,642
Depreciation, depletion and amortization	95		180			275			102			106		208		153			114		47		7		31			21			856
Selling, general and administrative expenses	1		2			3			2			3		5		91			5		9		—		14			184			311
Exploration and research expenses	1		—			1			—			—		—		—			—		2		—		—			211			214
Environmental obligations and shutdown costs	—		42			42			—			—		—		—			—		—		—		—			(24		)	18
Operating income (loss)	631		998			1,629			955			811		1,766		977			419		112		15		12			(474		)	4,456

Interest expense, net	1		3			4			5			—		5		6			—		—		—		9			124			148
Provision for income taxes	—		—			—			131		^b	244		375		387			79		—		—		—			287			1,128
Capital expenditures	204		365			569			365			294		659		624			428		197		5		11			25			2,518

Nine Months Ended September 30, 2011
Revenues:
Unaffiliated customers	$	371	$	154		$	525		$	1,662		$	1,803	$	3,465	$	4,112	^a	$	959	$	1,119	$	4,291	$	2,241		$	6		$	16,718
Intersegment	1,274		2,540			3,814			303			135		438		544			4		—		19		11			(4,830		)	—
Production and delivery	719		1,204			1,923			569			761		1,330		1,547			422		786		4,292		2,274			(5,070		)	7,504
Depreciation, depletion and amortization	85		111			196			102			85		187		179			98		44		6		30			16			756
Selling, general and administrative expenses	1		2			3			3			2		5		100			6		11		—		18			180			323
Exploration and research expenses	4		—			4			—			—		—		—			—		3		—		—			187			194
Environmental obligations and shutdown costs	4		(15		)	(11		)	—			—		—		—			—		—		1		—			108			98
Operating income (loss)	832		1,392			2,224			1,291			1,090		2,381		2,830			437		275		11		(70		)	(245		)	7,843

Interest expense, net	2		4			6			1			—		1		9			5		—		—		12			217			250
Provision for income taxes	—		—			—			476			353		829		1,234			100		—		—		—			535			2,698
Capital expenditures	69		273			342			120			311		431		463			89		317		7		29			71			1,749


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $1.5 billion for the first nine months of 2012 and $2.0 billion for the first nine months of 2011.


b.	Included a net credit of $234 million for the reversal of a net deferred tax liability (refer to Note 4 for further discussion).