Business Segments (Unaudited)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

FCX has organized its continuing mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. For oil and gas operations, FCX determines its operating segments on a country-by-country basis. Separately disclosed in the following table are FCX's reportable segments, which include the Morenci, Cerro Verde and Grasberg copper mines, the Rod & Refining operations, the Atlantic Copper Smelting & Refining operation and U.S. Oil & Gas operations.

FCX's reportable segments previously included Africa mining, which consisted of the Tenke mine located in the DRC. As discussed in Note 2, FCX has entered into a definitive agreement to sell its interest in TFHL, and as a result, Tenke has been removed from continuing operations and reported as discontinued operations for all periods presented.

On May 31, 2016, FCX completed the sale of an additional 13 percent undivided interest in the Morenci unincorporated joint venture. As a result, FCX's undivided interest in Morenci was prospectively reduced from 85 percent to 72 percent.    

Intersegment sales between FCX’s mining 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. In addition, intersegment sales from Tenke to FCX's other consolidated subsidiaries have been eliminated in discontinued operations (refer to Note 2) and included in Other Mining & Eliminations.

FCX defers recognizing profits on sales from its mines to other divisions, including Atlantic Copper (FCX's wholly owned smelter and refinery in Spain) and on 25 percent of PT-FI's sales to PT Smelting (PT-FI's 25 percent-owned smelter and refinery in Indonesia), until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX's net deferred profits and quarterly earnings.

FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following 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.

Financial Information by Business Segments

(In millions)	Mining Operationsa
	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				nations				Total
Three Months Ended June 30, 2016
Revenues:
Unaffiliated customers	$	79		$	43		$	122		$	494		$	123		$	617	$	532		b	$	—			$	919	$	493	$	241		c	$	2,924		$	410			$	—			$	3,334
Intersegment	404			534			938			60			—			60		(1		)	d	45				7		2		(1,051		)		—			—				—				—
Production and delivery	298			428			726			303			103			406		356				50				919		466		(866		)		2,057			889			e	10				2,956
Depreciation, depletion and amortization	57			77			134			109			27			136		93				17				3		7		20				410			218				4				632
Impairment of oil and gas properties	—			—			—			—			—			—		—				—				—		—		—				—			290				1			f	291
Selling, general and administrative expenses	1			1			2			2			—			2		22				—				—		4		2				32			81			g	47				160
Mining exploration and research expenses	—			—			—			—			—			—		—				—				—		—		15				15			—				—				15
Environmental obligations and shutdown costs	—			—			—			—			—			—		—				—				—		—		10				10			—				1				11
Net gain on sales of assets	(577		)	—			(577		)	—			—			—		—				—				—		—		(172		)		(749		)	—				—				(749		)
Operating income (loss)	704			71			775			140			(7		)	133		60				(22		)		4		18		181				1,149			(1,068		)		(63		)		18
Interest expense, net	—			1			1			20			—			20		—				—				—		4		19				44			93				59				196
Provision for (benefit from) income taxes	—			—			—			45			(2		)	43		18				—				—		—		—				61			—				55				116
Total assets at June 30, 2016	2,960			4,676			7,636			9,330			1,609			10,939		9,550				1,969				217		607		6,151			h	37,069			3,902				325				41,296
Capital expenditures	37			5			42			135			1			136		234				—				—		5		24			i	441			388			j	4				833
Three Months Ended June 30, 2015
Revenues:
Unaffiliated customers	$	180		$	92		$	272		$	195		$	221		$	416	$	792		b	$	—			$	1,089	$	495	$	305		c	$	3,369		$	569		k	$	—			$	3,938
Intersegment	427			706			1,133			37			—			37		(2		)	d	102				8		5		(1,283		)		—			—				—				—
Production and delivery	386			576		l	962			165			150			315		455				84			l	1,088		468		(1,004		)	l	2,368			281			e	2				2,651
Depreciation, depletion and amortization	55			84			139			40			32			72		78				25				3		9		19				345			485				3				833
Impairment of oil and gas properties	—			—			—			—			—			—		—				—				—		—		—				—			2,686				—				2,686
Selling, general and administrative expenses	—			2			2			—			1			1		25				—				—		4		5				37			49				62				148
Mining exploration and research expenses	—			2			2			—			—			—		—				—				—		—		28				30			—				—				30
Environmental obligations and shutdown costs	—			—			—			—			—			—		—				—				—		—		11				11			—				—				11
Operating income (loss)	166			134			300			27			38			65		232				(7		)		6		19		(37		)		578			(2,932		)		(67		)		(2,421		)
Interest expense, net	—			1			1			—			—			—		—				—				—		2		39				42			41				59				142
Provision for (benefit from) income taxes	—			—			—			(5		)	11			6		95				—				—		—		—				101			—				(800		)		(699		)
Total assets at June 30, 2015	3,806			5,582			9,388			8,567			1,935			10,502		8,959				2,052				286		786		6,461			h	38,434			15,393				181				54,008
Capital expenditures	79			28			107			444			13			457		213				4				—		4		70			i	855			777			j	29				1,661

a. Excludes the results of Tenke, which is reported as discontinued operations (refer to Note 2).

b. Includes PT-FI’s sales to PT Smelting totaling $287 million in second-quarter2016 and $293 million in second-quarter2015.

c. 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.

d. Reflects net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from Grasberg in second-quarter 2016 or 2015.

e. Includes charges at oil and gas operations totaling $692 million in second-quarter2016 and $22 million in second-quarter2015, primarily associated with drillship settlement/idle rig costs and inventory write-downs.

f. Reflects impairment charges for international oil and gas properties primarily in Morocco.

g. Includes $37 million for net restructuring charges.

h. Includes assets held for sale totaling $4.7 billion at June 30, 2016 and $4.9 billion at June 30, 2015, associated with discontinued operations (refer to Note 2).

i. Includes capital expenditures of $20 million in second-quarter2016 and $58 million in second-quarter2015 associated with discontinued operations.

j. Excludes international oil and gas capital expenditures totaling $4 million in second-quarter2016 and $29 million in second-quarter2015, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.

k. Includes net mark-to-market gains of $6 million associated with crude oil derivative contracts.

l. Includes inventory adjustments totaling $11 million at other North America copper mines, $3 million at Molybdenum mines and $45 million at Other Mining & Eliminations.

(In millions)	Mining Operationsa
	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				nations				Total
Six Months Ended June 30, 2016
Revenues:
Unaffiliated customers	$	241		$	99			$	340		$	980	$	267			$	1,247	$	1,030		b	$	—			$	1,890	$	915	$	449		c	$	5,871		$	705			$	—			$	6,576
Intersegment	761			1,095				1,856			101		—				101		57				90				15		3		(2,122		)		—			—				—				—
Production and delivery	638			876				1,514			594		222				816		750				102				1,889		859		(1,784		)		4,146			1,296			d	13				5,455
Depreciation, depletion and amortization	119			159				278			210		58				268		174				36				5		15		38				814			473				7				1,294
Impairment of oil and gas properties	—			—				—			—		—				—		—				—				—		—		—				—			4,061				17			e	4,078
Selling, general and administrative expenses	1			2				3			4		—				4		36				—				—		8		6				57			130			f	111				298
Mining exploration and research expenses	—			1				1			—		—				—		—				—				—		—		32				33			—				—				33
Environmental obligations and shutdown costs	—			—				—			—		—				—		—				—				—		—		20				20			—				1				21
Net gain on sales of assets	(577		)	—				(577		)	—		—				—		—				—				—		—		(172		)		(749		)	—				—				(749		)
Operating income (loss)	821			156				977			273		(13		)		260		127				(48		)		11		36		187				1,550			(5,255		)		(149		)		(3,854		)
Interest expense, net	1			1				2			42		—				42		—				—				—		8		39				91			164				132				387
Provision for (benefit from) income taxes	—			—				—			90		(8		)		82		54				—				—		—		—				136			—				57				193
Capital expenditures	65			11				76			291		2				293		459				1				1		7		63			g	900			868			h	47				1,815
Six Months Ended June 30, 2015
Revenues:
Unaffiliated customers	$	286		$	207			$	493		$	443	$	452			$	895	$	1,413		b	$	—			$	2,151	$	1,035	$	653		c	$	6,640		$	1,069		i	$	—			$	7,709
Intersegment	877			1,370				2,247			51		(7		)	j	44		(16		)	j	215				15		11		(2,516		)		—			—				—				—
Production and delivery	760			1,145			k	1,905			363		297				660		894				167			k	2,151		987		(2,003		)	k	4,761			564			d	5				5,330
Depreciation, depletion and amortization	106			166				272			77		70				147		148				51				5		19		35				677			1,015				7				1,699
Impairment of oil and gas properties	—			—				—			—		—				—		—				—				—		—		—				—			5,790				—				5,790
Selling, general and administrative expenses	1			2				3			1		1				2		50				—				—		9		11				75			103				121				299
Mining exploration and research expenses	—			5				5			—		—				—		—				—				—		—		52				57			—				—				57
Environmental obligations and shutdown costs	—			—				—			—		—				—		—				—				—		—		24				24			—				—				24
Net gain on sales of assets	—			(39		)		(39		)	—		—				—		—				—				—		—		—				(39		)	—				—				(39		)
Operating income (loss)	296			298				594			53		77				130		305				(3		)		10		31		18				1,085			(6,403		)		(133		)		(5,451		)
Interest expense, net	1			1				2			1		—				1		—				—				—		5		79				87			78				116				281
Provision for (benefit from) income taxes	—			—				—			—		30				30		124				—				—		—		—				154			—				(1,567		)		(1,413		)
Capital expenditures	163			51				214			875		27				902		438				7				1		8		119			g	1,689			1,795			h	44				3,528

a. Excludes the results of Tenke, which is reported as discontinued operations (refer to Note 2).

b. Includes PT-FI's sales to PT Smelting totaling $564 million for the first six months of 2016 and $643 million for the first six months of 2015.

c. 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.

d. Includes charges at oil and gas operations totaling $892 million for the first six months of 2016 and $39 million for the first six months of 2015, primarily associated with drillship settlement/idle rig costs and inventory write downs.

e. Reflects impairment charges for international oil and gas properties primarily in Morocco.

f. Includes $39 million for net restructuring charges.

g. Includes capital expenditures of $55 million for the first six months of 2016 and $97 million for the first six months of 2015 associated with discontinued operations.

h. Excludes international oil and gas capital expenditures totaling $47 million for the first six months of 2016 and $44 million for the first six months of 2015, primarily related to the Morocco oil and gas properties, which are included in Corporate, Other & Eliminations.

i. Includes net mark-to-market gains of $58 million associated with crude oil derivative contracts.

j. Reflects net reductions for provisional pricing adjustments to prior period open sales. There were no intersegment sales from El Abra or Grasberg for the first six months of 2015.

k. Includes inventory adjustments totaling $11 million at other North America copper mines, $3 million at Molybdenum mines and $49 million at Other Mining & Eliminations for the first six months of 2015.