

	First Quarter			Second Quarter			Third Quarter		Fourth Quarter			Year
2017
Revenues	$	3,341		$	3,711		$	4,310	$	5,041		$	16,403
Operating income	580			669			917		1,467			3,633
Net income from continuing operations	268			326			242		1,193			2,029
Net income from discontinued operations	38			9			3		16			66
Net income	306			335			245		1,209			2,095
Net (income) loss attributable to noncontrolling interests:
Continuing operations	(75		)	(66		)	35		(168		)	(274		)
Discontinued operations	(3		)	(1		)	—		—			(4		)
Net income attributable to common stockholders	228			268			280		1,041			1,817
Basic net income per share
attributable to common stockholders:
Continuing operations	$	0.13		$	0.18		$	0.19	$	0.71		$	1.21
Discontinued operations	0.03			—			—		0.01			0.04
	$	0.16		$	0.18		$	0.19	$	0.72		$	1.25
Basic weighted-average shares outstanding	1,446			1,447			1,448		1,448			1,447

Diluted net income per share
attributable to common stockholders:
Continuing operations	$	0.13		$	0.18		$	0.19	$	0.70		$	1.21
Discontinued operations	0.03			—			—		0.01			0.04
	$	0.16		$	0.18		$	0.19	$	0.71		$	1.25
Diluted weighted-average shares outstanding	1,454			1,453			1,454		1,455			1,454

Following summarizes significant charges (credits) included in FCX’s net income attributable to common stockholders for the 2017 quarters:

•

Net charges at Cerro Verde related to Peruvian government claims for disputed royalties (refer to Note 12 for further discussion) totaled $186 million to net income attributable to common stock or $0.13 per share for the year (consisting of $203 million to operating income, $145 million to interest expense and $7 million to provision for income taxes, net of $169 million to noncontrolling interests), most of which was recorded in the third quarter.


•	Net charges associated with PT-FI workforce reductions for the year totaled $125 million to operating income ($66 million to net income attributable to common stockholders or $0.04 per share) and included $21 million in the first quarter, $87 million in the second quarter, $9 million in the third quarter and $8 million in the fourth quarter.


•	Net adjustments to environmental obligations and related litigation reserves totaled $210 million to operating income and net income attributable to common stockholders ($0.14 per share) for the year, and included net charges (credits) totaling $19 million in the first quarter, $(30) million in the second quarter, $64 million in the third quarter and $157 million in the fourth quarter.

•

Net gains on sales of assets totaling $81 million to operating income and net income attributable to common stockholders ($0.06 per share) for the year were mostly associated with sales of oil and gas properties, and included $23 million in the first quarter, $10 million in the second quarter, $33 million in the third quarter and $15 million in the fourth quarter. Refer to Note 2 for further discussion of asset dispositions.


•	Net tax credits totaling $438 million to net income attributable to common stockholders ($0.30 per share) for the year were mostly associated with provisional tax credits associated with U.S. tax reform ($393 million), which were recorded in the fourth quarter. Refer to Note 11 for further discussion.

•

In November 2016, FCX completed the sale of its interest in TFHL (refer to Note 2 for further discussion), and the results of TFHL are reported as discontinued operations for all periods presented. Net income from discontinued operations for the 2017 periods primarily reflects adjustments to the fair value of the potential contingent consideration related to the sale, which will continue to be adjusted through December 31, 2019.



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
2016
Revenues	$	3,242		$	3,334		$	3,877		$	4,377		$	14,830
Operating (loss) income	(3,872		)	18			359			703			(2,792		)
Net (loss) income from continuing operations	(4,097		)	(229		)	292			202			(3,832		)
Net loss from discontinued operations	(4		)	(181		)	(6		)	(2		)	(193		)
Net (loss) income	(4,101		)	(410		)	286			200			(4,025		)
Net income, and gain on redemption and preferred dividends attributable to noncontrolling interests:
Continuing operations	(73		)	(57		)	(47		)	111			(66		)
Discontinued operations	(10		)	(12		)	(22		)	(19		)	(63		)
Net (loss) income attributable to common stockholders	(4,184		)	(479		)	217			292			(4,154		)
Basic and diluted net (loss) income per share attributable to common stockholders:
Continuing operations	$	(3.34	)	$	(0.23	)	$	0.18		$	0.22		$	(2.96	)
Discontinued operations	(0.01		)	(0.15		)	(0.02		)	(0.01		)	(0.20		)
	$	(3.35	)	$	(0.38	)	$	0.16		$	0.21		$	(3.16	)
Basic weighted-average shares outstanding	1,251			1,269			1,346			1,403			1,318
Diluted weighted-average shares outstanding	1,251			1,269			1,351			1,410			1,318

Following summarizes significant charges (credits) included in FCX’s net (loss) income attributable to common stockholders for the 2016 quarters:


•	Impairment of oil and oil and gas properties pursuant to full cost accounting rules (refer to Note 1 for further discussion) totaled $4.3 billion to operating (loss) income and net (loss) income attributable to common stockholders ($3.28 per share) for the year, and included $3.8 billion in the first quarter, $291 million in the second quarter and $239 million in the third quarter.

•

Other oil and gas charges for the year totaled $1.1 billion to operating (loss) income and net (loss) income attributable to common stockholders ($0.84 per share) mostly associated with drillship settlements/idle rig costs (refer to Note 13 for further discussion of drillship settlements), inventory adjustments, other asset impairment and restructuring charges, and included $201 million in the first quarter, $729 million in the second quarter, $50 million in the third quarter and $142 million in the fourth quarter.

•

During 2016, FCX completed several asset sale transactions, including the sale of substantially all of its oil and gas properties and the sale of an additional undivided interest in the Morenci minerals district (refer to Note 2 for further discussion of these and other 2016 asset dispositions). Net gains (losses) on the sales of assets totaled $649 million to operating (loss) income and net (loss) income attributable to common stockholders ($0.49 per share) for the year, and included $749 million in the second quarter, $13 million in the third quarter and $(113) million in the fourth quarter.


•	Net tax credits of $374 million to net (loss) income attributable to common stockholders ($0.28 per share) for the year were primarily associated with AMT credits, changes to valuation allowances and net operating loss claims, and included net tax (charges) credits totaling $(42) million in the second quarter, $332 million in the third quarter and $84 million in the fourth quarter.

•

Net loss from discontinued operations for the 2016 periods reflects the results of TFHL and includes charges for allocated interest expense associated with the portion of a bank term loan that was required to be repaid as a result of the sale of FCX’s interest in TFHL. The 2016 periods also include charges for the loss on disposal totaling $198 million ($0.15 per share) for the year, consisting of $177 million in the second quarter, $5 million in the third quarter and $16 million in the fourth quarter. Refer to Note 2 for further discussion of the sale of FCX’s interest in TFHL.


•	Net (loss) income attributable to common stockholders in the fourth quarter and for the year included a gain on redemption of noncontrolling interest for the settlement of FCX’s preferred stock obligation at its Plains Offshore subsidiary totaling $199 million ($0.15 per share for the year). Refer to Note 2 for further discussion.