Dispositions (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal

Net income (loss) from discontinued operations in the consolidated statements of operations consists of the following (in millions):

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2017			2016				2017				2016
Revenues	$	—		$	261		a	$	13		a	$	819		a
Costs and expenses:
Production and delivery costs	—			248				—				730
Depreciation, depletion and amortization	—			—				—				80
Interest expense allocated from parent	—			12			b	—				33			b
Other costs and expenses, net	—			4				—				10
Income (loss) before income taxes and net gain (loss) on disposal	—			(3		)		13				(34		)
Net gain (loss) on disposal	3		c	(5		)	d	41			c	(182		)	d
Net income (loss) before income taxes	3			(8		)		54				(216		)
Benefit from (provision for) income taxes	—			2				(4		)		25
Net income (loss) from discontinued operations	$	3		$	(6	)		$	50			$	(191	)

a. In accordance with accounting guidance, amounts are net of (eliminations) recognition of intercompany sales totaling $(53) million in third-quarter2016, $13 million for the first nine months of 2017 and $(125) million for the first nine months of 2016.

b. In accordance with accounting guidance, interest associated with FCX’s term loan that was required to be repaid as a result of the sale of TFHL has been allocated to discontinued operations.

c. Includes a gain of $3 million in third-quarter2017 and $45 million for the first nine months of 2017 associated with the change in the fair value of contingent consideration.

d. In accordance with accounting guidance, an estimated loss on disposal was recorded and adjusted through closing of the transaction in November 2016.

Cash flows from discontinued operations included in the consolidated statements of cash flows for the nine months ended September 30, 2016, follow (in millions):

Net cash provided by operating activities	$	213
Net cash used in investing activities	(71		)
Net cash used in financing activities	(103		)
Increase in cash and cash equivalents in assets held for sale	$	39