Business Segments



(In millions)	Mining Operations
	North America Copper Mines						South America									Indonesia			Africa
																									Atlantic			Other										Corporate,
																					Molyb-				Copper			Mining										Other
			Other				Cerro				Other										denum		Rod &		Smelting			& Elimi-				Total			Oil & Gas			& Elimi-			FCX
	Morenci		Mines		Total		Verde				Mines		Total			Grasberg			Tenke		Mines		Refining		& Refining			nations				Mining			Operations			nations			Total
Three Months Ended September 30, 2013
Revenues:
Unaffiliated customers	$	100	$	145	$	245	$	434			$	618	$	1,052		$	1,108	^a	$	406	$	—	$	1,247	$	514		$	417		^b	$	4,989		$	1,176	^c	$	—		$	6,165
Intersegment	375		681		1,056		27				60		87			3			14		121		6		2			(1,289		)		—			—			—			—
Production and delivery	287		520		807		175				319		494			617			190		82		1,245		523			(916		)		3,042			288			2			3,332
Depreciation, depletion and amortization	35		67		102		35				50		85			60			64		21		2		10			9				353			563			3			919
Selling, general and administrative expenses	—		1		1		—				2		2			29			3		—		—		5			5				45			51			62			158
Mining exploration and research expenses	—		2		2		—				—		—			1			—		—		—		—			52				55			—			2			57
Environmental obligations and shutdown costs	—		5		5		—				—		—			—			—		—		—		—			(13		)		(8		)	—			—			(8		)
Operating income (loss)	153		231		384		251				307		558			404			163		18		6		(22		)	(9		)		1,502			274			(69		)	1,707

Interest expense, net	—		—		—		—				—		—			—			—		—		—		4			20				24			74			64			162
Provision for income taxes	—		—		—		92				102		194			173			33		—		—		—			—				400			—			99			499
Total assets at September 30, 2013	2,915		5,734		8,649		6,440				4,090		10,530			7,399			4,862		2,094		308		691			1,267				35,800			26,347			451			62,598
Capital expenditures	172		80		252		224				40		264			209			52		46		1		20			51				895			738			12			1,645

Three Months Ended September 30, 2012
Revenues:
Unaffiliated customers	$	39	$	9	$	48	$	504			$	491	$	995		$	845	^a	$	365	$	—	$	1,221	$	633		$	309		^b	$	4,416		$	—		$	1		$	4,417
Intersegment	456		811		1,267		71				126		197			146			2		129		7		5			(1,753		)		—			—			—			—
Production and delivery	268		475		743		197				333		530			603			172		88		1,222		624			(1,392		)		2,590			—			2			2,592
Depreciation, depletion and amortization	31		57		88		39				35		74			54			42		15		2		11			10				296			—			2			298
Selling, general and administrative expenses	—		1		1		1				1		2			31			2		—		—		4			4				44			—			66			110
Mining exploration and research expenses	1		—		1		—				—		—			—			—		—		—		—			78				79			—			—			79
Environmental obligations and shutdown costs	—		—		—		—				—		—			—			—		—		—		—			(69		)		(69		)	—			(4		)	(73		)
Operating income (loss)	195		287		482		338				248		586			303			151		26		4		(1		)	(75		)		1,476			—			(65		)	1,411

Interest expense, net	1		—		1		—				—		—			—			—		—		—		3			21				25			—			17			42
Provision for (benefit from) income taxes	—		—		—		(88		)	^d	72		(16		)	111			28		—		—		—			—				123			—			92			215
Total assets at September 30, 2012	2,297		5,403		7,700		5,704				4,232		9,936			6,393			4,490		1,979		330		1,192			719				32,739			—			1,778			34,517
Capital expenditures	108		164		272		180				87		267			237			131		41		2		4			15				969			—			2			971


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $458 million in third-quarter 2013 and $520 million in third-quarter 2012.


b.	Included 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.


c.	Included net charges of $158 million for unrealized losses on oil and gas derivative contracts that were assumed in connection with FCX's acquisition of PXP. For further discussion, refer to Note 9.


d.	Included a credit of $234 million for the reversal of a net deferred tax liability. For further discussion, refer to Note 6.




(In millions)	Mining Operations
	North America Copper Mines								South America							Indonesia			Africa
																									Atlantic			Other									Corporate,
																					Molyb-				Copper			Mining									Other
			Other						Cerro			Other									denum		Rod &		Smelting			& Elimi-				Total		Oil & Gas			& Elimi-				FCX
	Morenci		Mines			Total			Verde			Mines		Total		Grasberg			Tenke		Mines		Refining		& Refining			nations				Mining		Operations			nations				Total
Nine Months Ended September 30, 2013
Revenues:
Unaffiliated customers	$	218	$	266		$	484		$	1,035		$	1,631	$	2,666	$	2,443	^a	$	1,199	$	—	$	3,842	$	1,730		$	1,157		^b	$	13,521	$	1,512	^c	$	3			$	15,036
Intersegment	1,255		2,256			3,511			222			216		438		190			24		408		20		12			(4,603		)		—		—			—				—
Production and delivery	885		1,574			2,459			535			950		1,485		1,743			560		240		3,835		1,726			(3,531		)		8,517		377			10				8,904
Depreciation, depletion and amortization	105		207			312			105			137		242		173			179		62		7		32			31				1,038		732			8				1,778
Selling, general and administrative expenses	1		3			4			2			3		5		82			9		—		—		14			23				137		65			255				457
Mining exploration and research expenses	—		3			3			—			—		—		1			—		—		—		—			161				165		—			8				173
Environmental obligations and shutdown costs	—		(1		)	(1		)	—			—		—		—			—		—		—		—			24				23		—			—				23
Operating income (loss)	482		736			1,218			615			757		1,372		634			475		106		20		(30		)	(154		)		3,641		338			(278		)		3,701

Interest expense, net	3		1			4			2			—		2		12			2		—		—		12			60				92		100			159				351
Provision for income taxes	—		—			—			215			257		472		289			99		—		—		—			—				860		—			107			^d	967
Capital expenditures	529		266			795			596			138		734		720			155		128		3		39			91				2,665		928			30				3,623

Nine Months Ended September 30, 2012
Revenues:
Unaffiliated customers	$	157	$	20		$	177		$	1,285		$	1,563	$	2,848	$	2,673	^a	$	985	$	—	$	3,802	$	2,023		$	984		^b	$	13,492	$	—		$	5			$	13,497
Intersegment	1,374		2,646			4,020			349			265		614		224			9		389		20		22			(5,298		)		—		—			—				—
Production and delivery	803		1,387			2,190			575			908		1,483		1,704			456		237		3,800		1,988			(4,218		)		7,640		—			2				7,642
Depreciation, depletion and amortization	95		179			274			102			106		208		153			114		38		7		31			25				850		—			6				856
Selling, general and administrative expenses	1		2			3			2			3		5		91			5		—		—		14			12				130		—			181				311
Mining exploration and research expenses	1		—			1			—			—		—		—			—		—		—		—			213				214		—			—				214
Environmental obligations and shutdown costs	—		—			—			—			—		—		—			—		—		—		—			22				22					(4		)		18
Operating income (loss)	631		1,098			1,729			955			811		1,766		949			419		114		15		12			(368		)		4,636		—			(180		)		4,456

Interest expense, net	1		—			1			5			—		5		3			—		—		—		9			63				81		—			67				148
Provision for income taxes	—		—			—			131		^e	244		375		387			79		—		—		—			—				841		—			287				1,128
Capital expenditures	204		364			568			365			294		659		624			428		189		5		11			41				2,525		—			(7		)		2,518


a.	Included PT Freeport Indonesia’s sales to PT Smelting totaling $1.2 billion for the first nine months of 2013 and $1.5 billion for the first nine months of 2012.


b.	Included 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.


c.	Included net charges of $194 million for unrealized losses on oil and gas derivative contracts that were assumed in connection with FCX's acquisition of PXP. For further discussion, refer to Note 9.


d.	Included $183 million of net benefits resulting from second-quarter 2013 oil and gas acquisitions.


e.	Included a credit of $234 million for the reversal of a net deferred tax liability. For further discussion, refer to Note 6.