BUSINESS SEGMENTS INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

FCX revenues attributable to the products it produced for the years ended December 31 follow:



	2017		2016		2015
Copper in concentrate^a	$	5,373	$	4,502	$	2,927
Copper cathode	4,557		3,925		4,159
Rod, and other refined copper products	2,272		1,963		2,481
Gold	2,032		1,512		1,540
Molybdenum	889		651		783
Oil	73		1,304		1,694
Other	1,207		973		1,023
Total	$	16,403	$	14,830	$	14,607


a.	Amounts are net of treatment and refining charges totaling $536 million in 2017, $652 million in 2016 and $485 million in 2015.

Long-lived assets by geographic area

Information concerning financial data by geographic area follows:



	December 31,
	2017		2016			2015
Long-lived assets:^a
Indonesia	$	8,938	$	8,794		$	7,701
U.S.	8,312		8,282		^b	16,569
Peru	7,485		7,981			8,432
Chile	1,221		1,269			1,387
Other	257		248			4,706		^c
Total	$	26,213	$	26,574		$	38,795


a.	Long-lived assets exclude deferred tax assets and intangible assets.


b.	Decrease in 2016 is primarily because of impairment charges related to oil and gas properties and asset dispositions (refer to Notes 1 and 2 for further discussion).


c.	Includes long-lived assets held for sale totaling $4.4 billion at December 31, 2015, primarily associated with TFHL discontinued operations. Refer to Note 2 for further discussion.

Revenues by geographic area of customer



	Years Ended December 31,
	2017		2016		2015
Revenues:^a
U.S.	$	5,344	$	5,896	$	6,842
Indonesia	2,023		1,402		1,054
Japan	1,882		1,350		1,246
Switzerland	1,200		1,147		618
China	1,136		1,125		688
Spain	1,086		878		960
India	782		553		532
Philippines	378		261		169
Korea	364		219		177
Chile	248		250		397
Bermuda	226		273		159
United Kingdom	226		204		83
Other	1,508		1,272		1,682
Total	$	16,403	$	14,830	$	14,607


a.	Revenues are attributed to countries based on the location of the customer.

Schedule of financial information by business segment

Financial Information by Business Segment



	North America Copper Mines								South America
																									Atlantic		Corporate,
																									Copper		Other
									Cerro								Indonesia			Molybdenum			Rod &		Smelting		& Elimi-				FCX
	Morenci			Other		Total			Verde			Other			Total		Mining			Mines			Refining		& Refining		nations^a				Total
Year Ended December 31, 2017
Revenues:
Unaffiliated customers	$	228		$	180	$	408		$	2,811		$	498		$	3,309	$	4,445		$	—		$	4,456	$	2,031	$	1,754		^b	$	16,403
Intersegment	1,865			2,292		4,157			385			—			385		—			268			26		1		(4,837		)		—
Production and delivery	1,052			1,715		2,767			1,878		^c	366			2,244		1,743		^d	229			4,470		1,966		(3,119		)		10,300
Depreciation, depletion and amortization	178			247		425			441			84			525		556			76			10		28		94				1,714
Metals inventory adjustments	—			2		2			—			—			—		—			1			—		—		5				8
Selling, general and administrative expenses	2			2		4			9			—			9		126		^d	—			—		18		327				484
Mining exploration and research expenses	—			2		2			—			—			—		—			—			—		—		92				94
Environmental obligations and shutdown costs	—			—		—			—			—			—		—			—			—		—		251				251
Net gain on sales of assets	—			—		—			—			—			—		—			—			—		—		(81		)		(81		)
Operating income (loss)	861			504		1,365			868			48			916		2,020			(38		)	2		20		(652		)		3,633

Interest expense, net	3			1		4			212		^c	—			212		4			—			—		18		563				801
Provision for (benefit from) income taxes	—			—		—			436		^c	10			446		869			—			—		5		(437		)	^e	883
Total assets at December 31, 2017	2,861			4,241		7,102			8,878			1,702			10,580		10,911			1,858			277		822		5,752			^f	37,302
Capital expenditures	114			53		167			103			12			115		875			5			4		41		203				1,410

Year Ended December 31, 2016
Revenues:
Unaffiliated customers	$	444		$	240	$	684		$	2,241		$	510		$	2,751	$	3,233		$	—		$	3,833	$	1,825	$	2,504		^b,g	$	14,830
Intersegment	1,511			2,179		3,690			187			—			187		62			186			29		5		(4,159		)		—
Production and delivery	1,169			1,763		2,932			1,351			407			1,758		1,794			199			3,836		1,712		(1,534		)	^h	10,697
Depreciation, depletion and amortization	217			313		530			443			110			553		384			68			10		29		956				2,530
Impairment of oil and gas properties	—			—		—			—			—			—		—			—			—		—		4,317				4,317
Metals inventory adjustments	—			1		1			—			—			—		—			15			—		—		20				36
Selling, general and administrative expenses	2			3		5			8			1			9		90			—			—		17		486			^h	607
Mining exploration and research expenses	—			3		3			—			—			—		—			—			—		—		61				64
Environmental obligations and shutdown costs	—			—		—			—			—			—		—			—			—		—		20				20
Net gain on sales of assets	(576		)	—		(576		)	—			—			—		—			—			—		—		(73		)		(649		)
Operating income (loss)	1,143			336		1,479			626			(8		)	618		1,027			(96		)	16		72		(5,908		)		(2,792		)

Interest expense, net	3			1		4			82			—			82		—			—			—		15		654				755
Provision for (benefit from) income taxes	—			—		—			222			(6		)	216		442			—			—		9		(296		)		371
Total assets at December 31, 2016	2,863			4,448		7,311			9,076			1,533			10,609		10,493			1,934			220		658		6,092			^f	37,317
Capital expenditures	77			25		102			380			2			382		1,025			2			1		17		1,284			ⁱ	2,813


a.	Includes U.S. oil and gas operations, which were previously a reportable segment.


b.	Includes revenues from FCX’s molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.


c.	Includes net charges of $203 million in production and delivery costs, $145 million in interest expense and $7 million in provision for income taxes associated with disputed royalties for prior years.


d.	Includes net charges of $120 million in production and delivery costs and $5 million in selling, general and administrative expenses for PT-FI workforce reductions.


e.	Includes provisional tax credits totaling $393 million related to U.S. tax reform, primarily for the reversal of valuation allowances associated with the anticipated refund of AMT credits and a decrease in corporate income tax rates.


f.	Includes (i) assets held for sale totaling $598 million at December 31, 2017, and $344 million at December 31, 2016, primarily associated with Freeport Cobalt and the Kisanfu exploration project and (ii) includes assets associated with oil and gas operations totaling $271 million at December 31, 2017, and $467 million at December 31, 2016.


g.	Includes net mark-to-market losses of $35 million associated with oil derivative contracts, which were entered into as part of the terms to sell the onshore California oil and gas properties in 2016.


h.	Includes net charges for oil and gas operations totaling $1.0 billion in production and delivery costs, primarily for drillship settlements/idle rig and contract termination costs, inventory adjustments, asset impairments and other net charges, and $85 million in selling, general and administrative expenses for net restructuring charges.


i.	Includes $1.2 billion associated with oil and gas operations and $73 million associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.




	North America Copper Mines								South America
																								Atlantic		Corporate,
																								Copper		Other
									Cerro								Indonesia		Molybdenum			Rod &		Smelting		& Elimi-				FCX
	Morenci		Other			Total			Verde		Other				Total		Mining		Mines			Refining		& Refining		nations^a				Total
Year Ended December 31, 2015
Revenues:
Unaffiliated customers	$	558	$	351		$	909		$	1,065	$	808			$	1,873	$	2,617	$	—		$	4,125	$	1,955	$	3,128		^b,c	$	14,607
Intersegment	1,646		2,571			4,217			68		(7		)	^d	61		36		348			29		15		(4,706		)		—
Production and delivery^e	1,523		2,276			3,799			815		623				1,438		1,808		312			4,129		1,848		(2,641		)	^f	10,693
Depreciation, depletion and amortization	217		343			560			219		133				352		293		97			9		39		1,890				3,240
Impairment of oil and gas properties	—		—			—			—		—				—		—		—			—		—		13,144				13,144
Metals inventory adjustments	—		142			142			—		73				73		—		11			—		—		112				338
Selling, general and administrative expenses	3		3			6			3		1				4		103		—			—		16		429				558
Mining exploration and research expenses	—		7			7			—		—				—		—		—			—		—		100				107
Environmental obligations and shutdown costs	—		3			3			—		—				—		—		—			—		—		75				78
Net gain on sales of assets	—		(39		)	(39		)	—		—				—		—		—			—		—		—				(39		)
Operating income (loss)	461		187			648			96		(29		)		67		449		(72		)	16		67		(14,687		)		(13,512		)

Interest expense, net	2		2			4			16		—				16		—		—			—		10		587				617
Provision for (benefit from) income taxes	—		—			—			13		(9		)		4		195		—			—		4		(2,154		)		(1,951		)
Total assets at December 31, 2015	3,567		4,878			8,445			9,445		1,661				11,106		9,306		1,999			219		612		14,890			^g	46,577
Capital expenditures	253		102			355			1,674		48				1,722		901		13			4		23		3,335			^g	6,353


a.	Includes U.S. oil and gas operations, which were previously a reportable segment.


b.	Includes revenues from FCX’s molybdenum sales company, which included sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.


c.	Includes net mark-to-market gains associated with crude oil and natural gas derivative contracts totaling $87 million.


d.	Reflects net reductions for provisional pricing adjustments to prior open sales.


e.	Includes asset impairment and restructuring charges totaling $145 million, including $99 million at other North America copper mines, and restructuring charges totaling $13 million at South America mines, $7 million at Molybdenum mines, $3 million at Rod & Refining and $23 million at Corporate, Other & Eliminations.


f.	Includes charges for oil and gas operations totaling $188 million primarily for idle/terminated rig costs, inventory adjustments, asset impairments and other charges.


g.	Includes (i) assets held for sale totaling $4.9 billion and (ii) capital expenditures totaling $229 million associated with discontinued operations. Refer to Note 2 for a summary of the results of discontinued operations.