10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2018
OR
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from	to
Commission File Number: 001-11307-01

Freeport-McMoRan Inc.

(Exact name of registrant as specified in its charter)

Delaware	74-2480931
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)
333 North Central Avenue
Phoenix, AZ	85004-2189
(Address of principal executive offices)	(Zip Code)
(602) 366-8100
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

þ Yes  o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    

þ Yes  o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer ¨
Non-accelerated filer ¨(Do not check if a smaller reporting company)	Smaller reporting company ¨
Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes þ No

On April 30, 2018, there were issued and outstanding 1,448,794,207 shares of the registrant’s common stock, par value $0.10 per share.

FREEPORT-McMoRan INC.

TABLE OF CONTENTS

	Page
Part I. Financial Information	3
Item 1. Financial Statements:	3
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Income (Unaudited)	4
Consolidated Statements of Comprehensive Income (Unaudited)	5
Consolidated Statements of Cash Flows (Unaudited)	6
Consolidated Statement of Equity (Unaudited)	7
Notes to Consolidated Financial Statements (Unaudited)	8
Report of Independent Registered Public Accounting Firm	29
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3. Quantitative and Qualitative Disclosures About Market Risk	59
Item 4. Controls and Procedures	59
Part II. Other Information	59
Item 1. Legal Proceedings	59
Item 1A. Risk Factors	60
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 4. Mine Safety Disclosures	60
Item 6. Exhibits	61
Signature	S-1

2

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements.

FREEPORT-McMoRan INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31, 2018			December 31, 2017
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	3,702		$	4,447
Trade accounts receivable	1,222			1,246
Income and other tax receivables	222			325
Inventories:
Materials and supplies, net	1,335			1,305
Mill and leach stockpiles	1,448			1,422
Product	1,102			1,166
Other current assets	367			270
Assets held for sale	708			598
Total current assets	10,106			10,779
Property, plant, equipment and mine development costs, net	22,792			22,844
Long-term mill and leach stockpiles	1,387			1,409
Other assets	2,352			2,270
Total assets	$	36,637		$	37,302
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	2,209		$	2,321
Accrued income taxes	749			565
Current portion of debt	483			1,414
Current portion of environmental and asset retirement obligations	396			388
Dividends payable	72			—
Liabilities held for sale	435			350
Total current liabilities	4,344			5,038
Long-term debt, less current portion	11,123			11,703
Deferred income taxes	3,642			3,622
Environmental and asset retirement obligations, less current portion	3,630			3,631
Other liabilities	1,972			2,012
Total liabilities	24,711			26,006
Equity:
Stockholders’ equity:
Common stock	158			158
Capital in excess of par value	26,729			26,751
Accumulated deficit	(14,030		)	(14,722		)
Accumulated other comprehensive loss	(475		)	(487		)
Common stock held in treasury	(3,726		)	(3,723		)
Total stockholders’ equity	8,656			7,977
Noncontrolling interests	3,270			3,319
Total equity	11,926			11,296
Total liabilities and equity	$	36,637		$	37,302

The accompanying notes are an integral part of these consolidated financial statements.

3

FREEPORT-McMoRan INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended
	March 31,
	2018			2017
	(In millions, except per share amounts)
Revenues	$	4,868		$	3,341
Cost of sales:
Production and delivery	2,808			2,188
Depreciation, depletion and amortization	451			389
Total cost of sales	3,259			2,577
Selling, general and administrative expenses	131			151
Mining exploration and research expenses	21			14
Environmental obligations and shutdown costs	9			25
Net gain on sales of assets	(11		)	(23		)
Total costs and expenses	3,409			2,744
Operating income	1,459			597
Interest expense, net	(151		)	(167		)
Other income, net	28			8
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	1,336			438
Provision for income taxes	(506		)	(174		)
Equity in affiliated companies’ net (losses) earnings	(2		)	4
Net income from continuing operations	828			268
Net (loss) income from discontinued operations	(11		)	38
Net income	817			306
Net income attributable to noncontrolling interests:
Continuing operations	(125		)	(75		)
Discontinued operations	—			(3		)
Net income attributable to common stockholders	$	692		$	228
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.48		$	0.13
Discontinued operations	(0.01		)	0.03
	$	0.47		$	0.16
Weighted-average common shares outstanding:
Basic	1,449			1,446
Diluted	1,458			1,454
Dividends declared per share of common stock	$	0.05		$	—

The accompanying notes are an integral part of these consolidated financial statements.

4

FREEPORT-McMoRan INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended
	March 31,
	2018			2017
	(In millions)
Net income	$	817		$	306
Other comprehensive income, net of taxes:
Unrealized gains on securities	—			1
Defined benefit plans:
Amortization of unrecognized amounts included in net periodic benefit costs	12			11
Foreign exchange losses	(1		)	(1		)
Other comprehensive income	11			11
Total comprehensive income	828			317
Total comprehensive income attributable to noncontrolling interests	(124		)	(78		)
Total comprehensive income attributable to common stockholders	$	704		$	239

The accompanying notes are an integral part of these consolidated financial statements.

5

FREEPORT-McMoRan INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended
	March 31,
	2018			2017
	(In millions)
Cash flow from operating activities:
Net income	$	817		$	306
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	451			389
Net gain on sales of assets	(11		)	(23		)
Stock-based compensation	49			34
Payments for Cerro Verde royalty dispute	(10		)	(11		)
Net charges for environmental and asset retirement obligations, including accretion	53			71
Payments for environmental and asset retirement obligations	(38		)	(33		)
Net charges for defined pension and postretirement plans	18			33
Pension plan contributions	(24		)	(30		)
Deferred income taxes	22			20
Loss (gain) on disposal of discontinued operations	11			(32		)
Decrease in long-term mill and leach stockpiles	22			8
Oil and gas contract settlement payments	—			(70		)
Other, net	30			(59		)
Changes in working capital and other tax payments:
Accounts receivable	136			623
Inventories	(142		)	(135		)
Other current assets	(42		)	(13		)
Accounts payable and accrued liabilities	(96		)	(433		)
Accrued income taxes and timing of other tax payments	123			147
Net cash provided by operating activities	1,369			792
Cash flow from investing activities:
Capital expenditures:
North America copper mines	(92		)	(28		)
South America	(67		)	(15		)
Indonesia	(203		)	(244		)
Molybdenum mines	(1		)	(1		)
Other	(39		)	(56		)
Intangible water rights and other, net	(90		)	(17		)
Net cash used in investing activities	(492		)	(361		)
Cash flow from financing activities:
Proceeds from debt	122			157
Repayments of debt	(1,633		)	(815		)
Cash dividends paid:
Common stock	—			(1		)
Noncontrolling interests	(80		)	(15		)
Stock-based awards net proceeds (payments)	3			(5		)
Net cash used in financing activities	(1,588		)	(679		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	(711		)	(248		)
Decrease in cash and cash equivalents in assets held for sale	32			8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,631			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	3,952		$	4,163

The accompanying notes are an integral part of these consolidated financial statements.

6

FREEPORT-McMoRan INC.

CONSOLIDATED STATEMENT OF EQUITY (Unaudited)

	Stockholders’ Equity
	Common Stock						Accum-ulated Deficit			Accumu- lated Other Compre- hensive Loss			Common Stock Held in Treasury				Total Stock-holders’ Equity
	Number of Shares	At Par Value		Capital in Excess of Par Value									Number of Shares	At Cost						Non- controlling Interests			Total Equity
	(In millions)
Balance at December 31, 2017	1,578	$	158	$	26,751		$	(14,722	)	$	(487	)	130	$	(3,723	)	$	7,977		$	3,319		$	11,296
Exercised and issued stock-based awards	1	—		6			—			—			—	—			6			—			6
Stock-based compensation, including the tender of shares	—	—		44			—			—			—	(3		)	41			—			41
Dividends	—	—		(72		)	—			—			—	—			(72		)	(173		)	(245		)
Net income attributable to common stockholders	—	—		—			692			—			—	—			692			—			692
Net income attributable to noncontrolling interests	—	—		—			—			—			—	—			—			125			125
Other comprehensive income	—	—		—			—			12			—	—			12			(1		)	11
Balance at March 31, 2018	1,579	$	158	$	26,729		$	(14,030	)	$	(475	)	130	$	(3,726	)	$	8,656		$	3,270		$	11,926

The accompanying notes are an integral part of these consolidated financial statements.

7

FREEPORT-McMoRan INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1. GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2017. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. With the exception of the accounting for discontinued operations and assets held for sale, all such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month period ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.

NOTE 2. EARNINGS PER SHARE

FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive. Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow (in millions, except per share amounts):

	Three Months Ended
	March 31,
	2018				2017
Net income from continuing operations	$	828			$	268
Net income from continuing operations attributable to noncontrolling interests	(125		)		(75		)
Undistributed earnings allocated to participating securities	(4		)		(3		)
Net income from continuing operations attributable to common stockholders	$	699			$	190
Net (loss) income from discontinued operations	$	(11	)		$	38
Net income from discontinued operations attributable to noncontrolling interests	—				(3		)
Net (loss) income from discontinued operations attributable to common stockholders	$	(11	)		$	35
Net income attributable to common stockholders	$	688			$	225
Basic weighted-average shares of common stock outstanding	1,449				1,446
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units	9			a	8
Diluted weighted-average shares of common stock outstanding	1,458				1,454
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.48			$	0.13
Discontinued operations	(0.01		)		0.03
	$	0.47			$	0.16

a. Excludes approximately 4 million shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. Stock options for 33 million shares of common stock were excluded for first-quarter2018 and 44 million for first-quarter2017.

8

NOTE 3. INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):

	March 31, 2018		December 31, 2017
Current inventories:
Total materials and supplies, neta	$	1,335	$	1,305
Mill stockpiles	$	330	$	360
Leach stockpiles	1,118		1,062
Total current mill and leach stockpiles	$	1,448	$	1,422
Raw materials (primarily concentrate)	$	284	$	265
Work-in-process	138		154
Finished goods	680		747
Total product inventories	$	1,102	$	1,166
Long-term inventories:
Mill stockpiles	$	308	$	300
Leach stockpiles	1,079		1,109
Total long-term mill and leach stockpiles	$	1,387	$	1,409

a. Materials and supplies inventory was net of obsolescence reserves totaling $25 million at March 31, 2018, and $29 million at December 31, 2017.

NOTE 4. INCOME TAXES

Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate. FCX’s consolidated effective income tax rate was 38 percent for first-quarter2018 and 40 percent for first-quarter2017. Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
U.S. operations	$	3		$	(7	)
International operations	(509		)	(167		)
Total	$	(506	)	$	(174	)

The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017, and includes significant modifications to existing U.S. tax laws and creates many new complex tax provisions. As of December 31, 2017, FCX recorded provisional impacts of the tax effects related to specific provisions and continues to evaluate other provisions of the Act. During the three months ended March 31, 2018, no adjustments were made to the provisional amounts recorded at December 31, 2017, as FCX has not fully completed its analysis of the Act. During the remainder of 2018, FCX will continue to refine its calculations as it gains a more thorough understanding of the Act.

9

NOTE 5. DEBT AND EQUITY

The components of debt follow (in millions):

	March 31, 2018			December 31, 2017
Senior notes and debentures:
Issued by FCX	$	10,020		$	11,429
Issued by Freeport Minerals Corporation	358			358
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)	54			54
Cerro Verde credit facility	1,170			1,269
Other	4			7
Total debta	11,606			13,117
Less current portion of debt	(483		)	(1,414		)
Long-term debt	$	11,123		$	11,703

a. Includes additions for unamortized fair value adjustments totaling $93 million at March 31, 2018 ($97 million at December 31, 2017), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $81 million at March 31, 2018 ($85 million at December 31, 2017).

Revolving Credit Facility. At March 31, 2018, there were no borrowings outstanding and $13 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.

In April 2018, FCX, PT Freeport Indonesia (PT-FI) and FM O&G LLC entered into a new $3.5 billion, five-year, unsecured revolving credit facility, which replaced FCX’s prior revolving credit facility (scheduled to mature on May 31, 2019). The new revolving credit facility is available until April 20, 2023, with $500 million available to PT-FI, and has substantially similar structure and terms as the prior revolving credit facility. Interest on loans made under the new revolving credit facility will, at the option of FCX, be determined based on the adjusted London Interbank Offered rate or the alternate base rate (each as defined in the new revolving credit facility) plus a spread to be determined by reference to FCX’s credit ratings. The new revolving credit facility contains customary affirmative covenants and representations, and also contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX's subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX's or its subsidiaries’ ability to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s new revolving credit facility also contains financial ratios governing maximum total leverage and the minimum interest expense coverage ratio. FCX’s total leverage ratio (ratio of total debt to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), as defined in the credit agreement) cannot exceed 3.75x, and the minimum interest expense coverage ratio (ratio of consolidated EBITDA to consolidated cash interest expense, as defined in the credit agreement) is 2.25x.

Senior Notes.  In March 2018, FCX’s 2.375% Senior Notes matured, and the $1.4 billion outstanding principal balance was repaid.

On April 4, 2018, FCX redeemed $454 million of aggregate principal amount of outstanding senior notes, consisting of $404 million of FCX 6.75% Senior Notes due 2022 and $50 million of FM O&G LLC 6⁷/₈% Senior Notes due 2023. Holders of these senior notes received the principal amount together with the redemption premium and accrued and unpaid interest up to the redemption date. As a result of these redemptions, FCX will record a gain on early extinguishment of debt of $10 million in second-quarter 2018.

Cerro Verde Credit Facility. In March 2018, Cerro Verde prepaid $100 million under its credit facility.

Interest Expense, Net. Consolidated interest costs (before capitalized interest) totaled $176 million in first-quarter2018 and $195 million in first-quarter2017. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $25 million in first-quarter2018 and $28 million in first-quarter2017.

Common Stock.  In February 2018, FCX’s Board of Directors (the Board) reinstated a cash dividend on FCX’s common stock. On March 28, 2018, the Board declared a quarterly cash dividend of $0.05 per share, which was paid on May 1, 2018, to common stockholders of record as of April 13, 2018.

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NOTE 6. FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As of March 31, 2018, and December 31, 2017, FCX had no price protection contracts relating to its mine production. A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments – Fair Value Hedges

Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the three-month periods ended March 31, 2018 and 2017. At March 31, 2018, FCX held copper futures and swap contracts that qualified for hedge accounting for 57 million pounds at an average contract price of $3.10 per pound, with maturities through September 2019.

A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized (losses) gains on the related hedged item follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(15	)	$	(2	)
Hedged item – firm sales commitments	15			2
Realized gains:
Matured derivative financial instruments	2			8

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. Certain FCX concentrate and cathode contracts are provisionally priced at the time of shipment. The provisional prices are finalized in a specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the London Metal Exchange (LME) or COMEX and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations until the date of settlement. Similarly, FCX purchases copper and cobalt under contracts that provide for provisional pricing. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host sales agreements since the contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain an embedded derivative (i.e., the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrate or cathode at the then-current metal price as defined in the contract. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

11

A summary of FCX’s embedded derivatives at March 31, 2018, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	518	$	3.13	$	3.04	August 2018
Gold (thousands of ounces)	311	1,325		1,327		July 2018
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	104	3.13		3.04		July 2018
Cobalt (millions of pounds)a	8	30.19		33.88		June 2018

a. Relates to assets held for sale. 

Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At March 31, 2018, Atlantic Copper held net copper forward sales contracts for 3 million pounds at an average contract price of $3.09 per pound, with maturities through May 2018.

Summary of (Losses) Gains. A summary of the realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Embedded derivatives in provisional sales contracts:a
Copper	$	(135	)	$	107
Gold and other metals	18			19
Copper forward contractsb	2			(1		)

a. Amounts recorded in revenues. 

b. Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

	March 31, 2018		December 31, 2017
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	2	$	11
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	11		155
Copper forward contracts	—		1
Total derivative assets	$	13	$	167
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	5	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	48		31
Copper forward contracts	—		2
Total derivative liabilities	$	53	$	33

12

FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by counterparty on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	11	$	155	$	48	$	31
Copper derivatives	2		12		5		2
	13		167		53		33
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	1		—		1		—
Copper derivatives	—		1		—		1
	1		1		1		1
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	10		155		47		31
Copper derivatives	2		11		5		1
	$	12	$	166	$	52	$	32
Balance sheet classification:
Trade accounts receivable	$	—	$	151	$	41	$	—
Other current assets	2		11		—		—
Accounts payable and accrued liabilities	10		4		11		32
	$	12	$	166	$	52	$	32

The table above excludes $30 million of embedded derivatives in provisional cobalt purchase contracts at March 31, 2018, and $24 million at December 31, 2017, which are reflected in liabilities held for sale.

Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of March 31, 2018, the maximum amount of credit exposure associated with derivative transactions was $11 million.

13

Other Financial Instruments. Other financial instruments include cash and cash equivalents, accounts receivable, restricted cash, restricted cash equivalents, investment securities, legally restricted funds, accounts payable and accrued liabilities, and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $2.8 billion at March 31, 2018, and $2.9 billion at December 31, 2017), accounts receivable, restricted cash, restricted cash equivalents, and accounts payable and accrued liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of March 31, 2018, FCX has contingent consideration assets related to certain 2016 asset sales (refer to Note 7 for the related fair values and to Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, for further discussion of these instruments).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows to the components presented in the consolidated balance sheets (in millions):

	March 31, 2018		December 31, 2017
Balance sheet components:
Cash and cash equivalents	$	3,702	$	4,447
Restricted cash and restricted cash equivalents included in:
Other current assets	123		52
Other assets	127		132
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	3,952	$	4,631

FCX’s restricted cash and restricted cash equivalents are primarily related to PT-FI’s commitment for smelter development in Indonesia; guarantees and commitments for certain mine closure and reclamation obligations, and customs duty taxes; and funds held as cash collateral for surety bonds related to plugging and abandonment obligations of certain oil and gas properties. Restricted cash and restricted cash equivalents are classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. Restricted cash and restricted cash equivalents are comprised of time deposits and money market funds.

14

NOTE 7. FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for first-quarter2018.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, accounts receivable, restricted cash, restricted cash equivalents, and accounts payable and accrued liabilities (refer to Note 6) follows (in millions):

	At March 31, 2018
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	54		54		54		—		—		—
Government bonds and notes	42		42		—		—		42		—
Corporate bonds	29		29		—		—		29		—
Government mortgage-backed securities	25		25		—		—		25		—
Asset-backed securities	13		13		—		—		13		—
Money market funds	8		8		—		8		—		—
Collateralized mortgage-backed securities	7		7		—		—		7		—
Municipal bonds	1		1		—		—		1		—
Total	179		179		54		8		117		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	11		11		—		—		11		—
Copper futures and swap contractsc	2		2		—		1		1		—
Contingent consideration for the sales of
TF Holdings Limited (TFHL) and onshore
California oil and gas propertiesa	110		110		—		—		110		—
Total	123		123		—		1		122		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		132		—		—		—		132
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	48	$	48	$	—	$	—	$	48	$	—
Copper futures and swap contracts	5		5		—		4		1		—
Total	53		53		—		4		49		—
Long-term debt, including current portione	11,606		11,406		—		—		11,406		—

15

	At December 31, 2017
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	55		55		55		—		—		—
Government bonds and notes	40		40		—		—		40		—
Corporate bonds	32		32		—		—		32		—
Government mortgage-backed securities	27		27		—		—		27		—
Asset-backed securities	15		15		—		—		15		—
Money market funds	11		11		—		11		—		—
Collateralized mortgage-backed securities	8		8		—		—		8		—
Municipal bonds	1		1		—		—		1		—
Total	189		189		55		11		123		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	155		155		—		—		155		—
Copper futures and swap contractsc	11		11		—		9		2		—
Copper forward contractsc	1		1		—		—		1		—
Contingent consideration for the sales of TFHL
and onshore California oil and gas propertiesa	108		108		—		—		108		—
Total	275		275		—		9		266		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		134		—		—		—		134
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	31	$	31	$	—	$	—	$	31	$	—
Copper forward contracts	2		2		—		1		1		—
Total	33		33		—		1		32		—
Long-term debt, including current portione	13,117		13,269		—		—		13,269		—

a. Current portion included in other current assets and long-term portion included in other assets.

b. Excludes time deposits (which approximated fair value) included in (i) other current assets of $123 million at March 31, 2018, and $52 million at December 31, 2017, primarily associated with PT-FI’s mine closure and reclamation guarantees and its disputed incremental export duty and (ii) other assets of $125 million at March 31, 2018, and $123 millionatDecember 31, 2017, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.

c. Refer to Note 6 for further discussion and balance sheet classifications.

d. Excludes embedded derivatives in provisional cobalt purchase contracts of $30 million at March 31, 2018, and $24 million at December 31, 2017 (refer to Note 6 for further discussion).

e. Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. In addition, debt excludes $112 million at March 31, 2018, and December 31, 2017, related to assets held for sale (which approximated fair value).

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

16

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity (refer to Note 6 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s embedded derivatives on provisional cobalt purchases, included in assets held for sale, are valued using quoted monthly LME cobalt forward prices or average published Metals Bulletin cobalt prices, subject to certain adjustments as specified by the terms of the contracts, at each reporting date based on the month of maturity (Level 2).

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

As reported in Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, in November 2016, FCX’s sale of its interest in TFHL included contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019. Also in 2016, FCX Oil & Gas LLC’s (FM O&G) sale of its onshore California oil and gas properties included contingent consideration of up to $150 million, consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. Future changes in the fair value of the contingent consideration derivative for the sale of TFHL will continue to be recorded in discontinued operations and for the onshore California oil and gas properties will continue to be recorded in operating income. The fair value of the contingent consideration derivative was (i) $65 million at March 31, 2018, and $74 million at December 31, 2017, associated with the sale of TFHL and (ii) $45 million at March 31, 2018, and $34 million at December 31, 2017, associated with the sale of the onshore California oil and gas properties. The contingent consideration derivative was included in other assets in the consolidated balance sheets except for $18 million included in other current assets at March 31, 2018. These fair values were calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy.

As reported in Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, in December 2016, FM O&G’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration will be received over time as future cash flows are realized in connection with a third-party production handling agreement for an offshore platform. The contingent consideration included in (i) other current assets totaled $21 million at March 31, 2018, and $24 million at December 31, 2017, and (ii) other assets totaled $129 million at March 31, 2018, and $126 million at December 31, 2017. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

17

Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at March 31, 2018, as compared to those techniques used at December 31, 2017.

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first three months of2018 follows (in millions):

Fair value at January 1, 2018	$	134
Net unrealized loss related to assets still held at the end of the period	(2		)
Fair value at March 31, 2018	$	132

NOTE 8. CONTINGENCIES AND COMMITMENTS

Litigation

During first-quarter2018, there were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, other than the matter below.

On April 1, 2016, a purported class action titled David Garcia v. Freeport-McMoRan Oil & Gas LLC was filed in the Superior Court of the State of California for the County of Santa Barbara (Case No. 16CV01305) against FM O&G LLC, an indirect wholly owned subsidiary of FCX. A former FM O&G LLC employee filed the case, which alleges violations of various California employment laws and seeks relief for past wages, overtime, penalties, interest and attorney’s fees. The primary issue underlying the claims is whether compensation must be paid to non-exempt shift workers on platforms located offshore California on the outer-continental shelf for sleep time and other non-working time. In June 2016, FM O&G LLC removed the case to the U.S. District Court for the Central District of California, Santa Barbara (the District Court). In September 2016, the court dismissed the complaint on the grounds that all four FM O&G LLC platforms potentially involved are located in federal waters, that federal law, not state law, applies, and that federal law does not require an employer to compensate for non-work time. In October 2016, the plaintiff appealed the dismissal to the U.S. Court of Appeals for the Ninth Circuit. In June 2017, the Ninth Circuit stayed the Garcia case pending its decision in another case involving essentially the same legal issues, titled Newton v. Parker Drilling Management Services, Ltd. In February 2018, a three-judge panel of the Ninth Circuit ruled in favor of the plaintiffs in the Newton case. Because that decision conflicts with longstanding precedent in the Fifth Circuit and could set a precedent that will result in a reversal of the dismissal in the Garcia case, FM O&G LLC and others filed amicus briefs in April 2018 in support of Parker Drilling’s petition for an en banc rehearing in the Newton case. The Ninth Circuit denied that request on April 27, 2018, but modified its original opinion noting that the question of whether the Ninth Circuit’s holding should be applied retrospectively is reserved for the District Court’s consideration on remand.

The amount of the exposure in Garciais uncertain because FM O&G LLC has potential defenses to the claims even if state law would be applied; however, absent success on those defenses, FCX estimates that the exposure could be in the range of approximately $50 million to $80 million if California wage and hour law is applied retroactively to FM O&G LLC’s operations offshore California. FCX has not established a reserve for this contingency because it believes that its legal position is correct and does not believe a loss is probable. FCX intends to vigorously defend this matter.

Tax and Other Matters

Cerro Verde Royalty Dispute and Other Peru Tax Matters

During first-quarter2018, there were no significant changes to the Cerro Verde royalty dispute and other Peru tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017.

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Indonesia Tax Matters

The following information includes a discussion of updates to previously reported Indonesia tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017.

PT-FI received assessments from the local regional tax authority in Papua, Indonesia, for additional taxes and penalties related to surface water taxes for the period from January 2011 through March 2018. PT-FI has filed or will file appeals of these assessments with the Indonesia Tax Court. During first-quarter 2018, the Indonesia Tax Court ruled partially in favor of PT-FI with respect to assessments for the period January 2016 through April 2016 by reducing these assessments to $13 million, including penalties (based on the exchange rate at March 31, 2018), or an approximate 40 percent reduction. Hearings in the Indonesia Tax Court are currently underway related to assessments for the period from May 2016 through April 2017.

During 2017, PT-FI filed petitions to the Indonesia Supreme Court with respect to assessments for the period from January 2011 through December 2015. In April 2018, the Indonesia Supreme Court posted on its website summaries of favorable decisions relating to surface water tax assessments for the period January 2011 through July 2015. PT-FI began receiving the official written decisions on April 18, 2018. The Supreme Court ruling concluded that PT-FI and the Indonesian government are bound by PT-FI’s Contract of Work (COW), which is lex specialis, and prevails as the law for the parties to the COW that should be carried out in good faith. The Supreme Court decisions for the period January 2011 through July 2015 reduce the total remaining exposure for the period from August 2015 through March 2018 to $161 million, including $81 million in penalties. As of March 31, 2018, no charges have been recorded for any assessments because PT-FI believes its COW exempts it from these payments. As of May 4, 2018, PT-FI has not paid and does not intend to pay these assessments.

Indonesia Mining Contract. The following is the latest information related to PT-FI’s COW (refer to Note 13 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, for further discussion).

In August 2017, FCX and the Indonesian government reached an understanding on a framework that would replace the COW while providing PT-FI with long-term mining rights. This framework includes (i) conversion from the COW to a special license (IUPK) providing PT-FI with long-term mining rights through 2041; (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK; (iii) PT-FI commitment to construct a new smelter in Indonesia within five years of reaching a definitive agreement; and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value, structured so that FCX retains control over operations and governance of PT-FI. Execution of a definitive agreement will require approval by the Board and PT-FI’s joint venture partner, Rio Tinto, as well as the modification or revocation of current regulations and the implementation of new regulations by the Indonesian government. FCX cannot currently predict whether there will be any material accounting and tax impacts associated with the divestment.

In late 2017, the Indonesian government (including the regional government of Papua Province and Mimika Regency) and PT Indonesia Asahan Aluminium (Inalum), a state-owned enterprise, which leads the Indonesian government’s consortium of investors, formed a special purpose company to acquire Grasberg project area interests. Inalum is wholly owned by the Indonesian government and currently holds 9.36 percent of PT-FI’s outstanding common stock. FCX continues to engage with Inalum and Rio Tinto on potential arrangements that would result in the Inalum consortium acquiring interests that would meet the Indonesian government’s 51 percent ownership objective in a manner satisfactory to all parties, and in a structure that would provide for continuity of FCX’s management of PT-FI’s operations and governance of the business. The parties continue to negotiate documentation on a comprehensive agreement for PT-FI’s extended operations and to reach agreement on timing, process and governance matters relating to the divestment. The parties have a mutual objective of completing negotiations and the required documentation as soon as possible.

19

In October 2017, Indonesia’s Ministry of Environment and Forestry (the Ministry) notified PT-FI of administrative sanctions related to certain activities the Ministry indicated are not reflected in PT-FI’s environmental permit. The Ministry also notified PT-FI that certain operational activities were inconsistent with factors set forth in PT-FI’s environmental permitting studies and that additional monitoring and improvements need to be undertaken related to air quality, water drainage, treatment and handling of certain wastes, and tailings management. PT-FI has been engaged in a process to update its permits through submissions and dialogue with the Ministry that began in late 2014, and PT-FI believes that it has submitted the required documentation to update such permits. In April 2018, the Ministry issued decrees imposing unattainable environmental standards related to PT-FI’s controlled riverine tailings management system. The decrees include a six-month transition period and conflict with PT-FI’s approved environmental management programs and existing environmental permits. PT-FI is engaged in discussions with the Ministry regarding these actions, which PT-FI believes are contrary to the Indonesian government’s obligations under PT-FI’s COW. Resolution of these matters is a requirement for concluding a comprehensive agreement for PT-FI’s extended operations.

In December 2017, the Indonesian government extended PT-FI’s temporary IUPK to June 30, 2018, to enable normal operations to continue during the negotiation period. In February 2018, PT-FI’s export license was extended to February 15, 2019. On February 28, 2018, PT Smelting (PT-FI’s 25-percent-owned smelter and refinery in Indonesia) received an extension of its anode slimes export license through February 26, 2019.

Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including dispute resolution procedures. FCX cannot predict whether PT-FI will be successful in reaching a satisfactory agreement on the terms of its long-term mining rights. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, FCX intends to reduce or defer investments significantly in its underground development projects and will pursue dispute resolution procedures under the COW.

NOTE 9. BUSINESS SEGMENTS

FCX has organized its 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. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Intersegment sales between FCX’s business segments are based on terms similar to 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.

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, 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.

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Product Revenues. FCX’s revenues attributable to the products it produced for the first quarters of 2018 and 2017 follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper:
Concentrate	$	1,647		$	981
Cathode	1,423			1,041
Rod and other refined copper products	670			624
Gold	808			268
Molybdenum	286			209
Othera	398			231
Adjustments to revenue:
Treatment charges	(132		)	(103		)
Royalty expenseb	(69		)	(22		)
Export dutiesc	(46		)	(14		)
Revenue from contracts with customers	4,985			3,215
Embedded derivativesd	(117		)	126
Total consolidated revenues	$	4,868		$	3,341

a. Primarily includes revenues associated with cobalt, silver, oil, gas and natural gas liquids.

b. Reflects royalties for sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and the prices of copper and gold.

c. Reflects export duties paid by PT-FI.

d. Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

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Financial Information by Business Segment

(In millions)
																					Atlantic		Corporate,
	North America Copper Mines						South America Mining														Copper		Other
							Cerro						Indonesia			Molybdenum			Rod &		Smelting		& Elimi-				FCX
	Morenci		Other		Total		Verde		Other		Total		Mining			Mines			Refining		& Refining		nationsa				Total
Three Months Ended March 31, 2018
Revenues:
Unaffiliated customers	$	3	$	15	$	18	$	625	$	150	$	775	$	1,521	b	$	—		$	1,385	$	577	$	592		c	$	4,868
Intersegment	601		689		1,290		102		—		102		52			95			8		2		(1,549		)		—
Production and delivery	290		501		791		427		116		543		457			67			1,388		556		(994		)		2,808
Depreciation, depletion and amortization	46		48		94		105		22		127		181			19			2		7		21				451
Selling, general and administrative expenses	1		2		3		2		—		2		39			—			—		6		81				131
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		20				21
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		9				9
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(11		)		(11		)
Operating income (loss)	267		152		419		193		12		205		896			9			3		10		(83		)		1,459
Interest expense, net	1		—		1		17		—		17		—			—			—		5		128				151
Provision for income taxes	—		—		—		68		4		72		401			—			—		1		32				506
Total assets at March 31, 2018	2,817		4,340		7,157		8,740		1,715		10,455		10,992			1,836			290		809		5,098			d	36,637
Capital expenditures	47		45		92		63		4		67		203			1			1		4		34				402
Three Months Ended March 31, 2017
Revenues:
Unaffiliated customers	$	66	$	50	$	116	$	640	$	112	$	752	$	534	b	$	—		$	1,107	$	458	$	374		c	$	3,341
Intersegment	416		563		979		116		—		116		—			63			8		—		(1,166		)		—
Production and delivery	257		409		666		391		82		473		270			52			1,109		436		(818		)		2,188			e
Depreciation, depletion and amortization	47		69		116		112		21		133		83			19			2		7		29				389
Selling, general and administrative expenses	—		1		1		2		—		2		30			—			—		5		113				151
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		13				14
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		25				25
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(23		)		(23		)
Operating income (loss)	178		133		311		251		9		260		151			(8		)	4		10		(131		)		597
Interest expense, net	1		—		1		16		—		16		—			—			—		4		146				167
Provision for income taxes	—		—		—		98		3		101		67			—			—		1		5				174
Total assets at March 31, 2017	2,814		4,361		7,175		9,081		1,525		10,606		10,418			1,917			261		652		5,547			d	36,576
Capital expenditures	23		5		28		14		1		15		244			1			1		8		47				344

a. Includes U.S. oil and gas operations.

b. Includes PT-FI’s sales to PT Smelting totaling $628 million in first-quarter2018 and $258 million in first-quarter2017.

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 America and South America copper mines.

d. Includes assets held for sale totaling $708 million at March 31, 2018, and $408 million at March 31, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project.

e. Includes a decrease of $12 million for the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 11 for further discussion).

22

NOTE 10. GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under FCX’s revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC’s future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC’s subsidiaries. The indentures provide that FM O&G LLC’s guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof.

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at March 31, 2018, and December 31, 2017, and the related condensed consolidating statements of comprehensive income (loss), and the condensed consolidating statements of cash flows for the three months ended March 31, 2018 and 2017 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2018

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	544		$	714		$	10,012	$	(1,164	)	$	10,106
Property, plant, equipment and mine development costs, net	14			7			22,780		(9		)	22,792
Investments in consolidated subsidiaries	18,668			—			—		(18,668		)	—
Other assets	561			34			3,255		(111		)	3,739
Total assets	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637
LIABILITIES AND EQUITY
Current liabilities	$	621		$	117		$	4,831	$	(1,225	)	$	4,344
Long-term debt, less current portion	9,594			6,574			5,013		(10,058		)	11,123
Deferred income taxes	745		a	—			2,897		—			3,642
Environmental and asset retirement obligations, less current portion	—			203			3,427		—			3,630
Investments in consolidated subsidiaries	—			860			10,338		(11,198		)	—
Other liabilities	171			3,339			1,948		(3,486		)	1,972
Total liabilities	11,131			11,093			28,454		(25,967		)	24,711
Equity:
Stockholders’ equity	8,656			(10,338		)	4,901		5,437			8,656
Noncontrolling interests	—			—			2,692		578			3,270
Total equity	8,656			(10,338		)	7,593		6,015			11,926
Total liabilities and equity	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637

a. All U.S.-related deferred income taxes are recorded at the parent company.

23

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	75		$	671		$	10,823	$	(790	)	$	10,779
Property, plant, equipment and mine development costs, net	14			11			22,829		(10		)	22,844
Investments in consolidated subsidiaries	19,570			—			—		(19,570		)	—
Other assets	943			48			3,179		(491		)	3,679
Total assets	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302
LIABILITIES AND EQUITY
Current liabilities	$	1,683		$	220		$	4,073	$	(938	)	$	5,038
Long-term debt, less current portion	10,021			6,512			5,440		(10,270		)	11,703
Deferred income taxes	748		a	—			2,874		—			3,622
Environmental and asset retirement obligations, less current portion	—			201			3,430		—			3,631
Investments in consolidated subsidiary	—			853			10,397		(11,250		)	—
Other liabilities	173			3,340			1,987		(3,488		)	2,012
Total liabilities	12,625			11,126			28,201		(25,946		)	26,006
Equity:
Stockholders’ equity	7,977			(10,396		)	5,916		4,480			7,977
Noncontrolling interests	—			—			2,714		605			3,319
Total equity	7,977			(10,396		)	8,630		5,085			11,296
Total liabilities and equity	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302

a. All U.S.-related deferred income taxes are recorded at the parent company.

24

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	15		$	4,853		$	—		$	4,868
Total costs and expenses	9			8			3,393			(1		)	3,409
Operating (loss) income	(9		)	7			1,460			1			1,459
Interest expense, net	(104		)	(64		)	(85		)	102			(151		)
Other income (expense), net	101			—			29			(102		)	28
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(12		)	(57		)	1,404			1			1,336
(Provision for) benefit from income taxes	(83		)	12			(435		)	—			(506		)
Equity in affiliated companies’ net earnings (losses)	787			(6		)	(34		)	(749		)	(2		)
Net income (loss) from continuing operations	692			(51		)	935			(748		)	828
Net loss from discontinued operations	—			—			(11		)	—			(11		)
Net income (loss)	692			(51		)	924			(748		)	817
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(71		)	(54		)	(125		)
Net income (loss) attributable to common stockholders	$	692		$	(51	)	$	853		$	(802	)	$	692
Other comprehensive income (loss)	12			—			12			(12		)	12
Total comprehensive income (loss)	$	704		$	(51	)	$	865		$	(814	)	$	704

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	13		$	3,328		$	—		$	3,341
Total costs and expenses	8			50			2,684			2			2,744
Operating (loss) income	(8		)	(37		)	644			(2		)	597
Interest expense, net	(122		)	(53		)	(71		)	79			(167		)
Other income (expense), net	78			—			9			(79		)	8
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(52		)	(90		)	582			(2		)	438
(Provision for) benefit from income taxes	(60		)	31			(146		)	1			(174		)
Equity in affiliated companies’ net earnings (losses)	340			20			(36		)	(320		)	4
Net income (loss) from continuing operations	228			(39		)	400			(321		)	268
Net income from discontinued operations	—			—			38			—			38
Net income (loss)	228			(39		)	438			(321		)	306
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(65		)	(10		)	(75		)
Discontinued operations	—			—			(3		)	—			(3		)
Net income (loss) attributable to common stockholders	$	228		$	(39	)	$	370		$	(331	)	$	228
Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	239		$	(39	)	$	381		$	(342	)	$	239

25

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(156	)	$	(70	)	$	1,595		$	—		$	1,369
Cash flow from investing activities:
Capital expenditures	—			—			(402		)	—			(402		)
Intercompany loans	(184		)	—			—			184			—
Dividends from (investments in) consolidated subsidiaries	1,746			—			23			(1,769		)	—
Asset sales and other, net	—			—			(90		)	—			(90		)
Net cash provided by (used in) investing activities	1,562			—			(469		)	(1,585		)	(492		)
Cash flow from financing activities:
Proceeds from debt	—			—			122			—			122
Repayments of debt	(1,409		)	—			(224		)	—			(1,633		)
Intercompany loans	—			62			122			(184		)	—
Cash dividends paid and contributions received, net	—			—			(1,835		)	1,755			(80		)
Other, net	3			—			(14		)	14			3
Net cash (used in) provided by financing activities	(1,406		)	62			(1,829		)	1,585			(1,588		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(8		)	(703		)	—			(711		)
Decrease in cash and cash equivalents in assets held for sale	—			—			32			—			32
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			8			4,623			—			4,631
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	—		$	3,952		$	—		$	3,952

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(112	)	$	(200	)	$	1,104		$	—		$	792
Cash flow from investing activities:
Capital expenditures	—			(10		)	(334		)	—			(344		)
Intercompany loans	(277		)	—			—			277			—
Dividends from (investments in) consolidated subsidiaries	894			—			26			(920		)	—
Asset sales and other, net	—			(23		)	6			—			(17		)
Net cash provided by (used in) investing activities	617			(33		)	(302		)	(643		)	(361		)
Cash flow from financing activities:
Proceeds from debt	—			—			157			—			157
Repayments of debt	(499		)	—			(316		)	—			(815		)
Intercompany loans	—			236			41			(277		)	—
Cash dividends paid and contributions received, net	(1		)	—			(895		)	880			(16		)
Other, net	(5		)	(6		)	(34		)	40			(5		)
Net cash (used in) provided by financing activities	(505		)	230			(1,047		)	643			(679		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(3		)	(245		)	—			(248		)
Decrease in cash and cash equivalents in assets held for sale	—			—			8			—			8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			11			4,392			—			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	8		$	4,155		$	—		$	4,163

26

NOTE 11. NEW ACCOUNTING STANDARDS

Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) related to revenue recognition. FCX adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations (refer to Note 1 of FCX’s annual report on Form 10-K for disclosure of FCX’s revenue recognition policy). In connection with the adoption of the standard and consistent with FCX’s policy prior to adoption of the standard, FCX has elected to account for shipping and handling activities performed after control of goods has been transferred to a customer as a fulfillment cost recorded in production and delivery costs on the consolidated statements of income.

FCX recognizes revenue for all of its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 6 for further discussion). For provisionally priced sales, 90 percent to 100 percent of the provisional payment is made upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the LME or COMEX and the London gold price. FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Refer to Note 9 for a summary of revenue by product type.

Financial Instruments. In January 2016, FASB issued an ASU that amends the guidance on the classification and measurement of financial instruments. This ASU makes limited changes to prior guidance and amends certain disclosure requirements. FCX adopted this ASU effective January 1, 2018, and adoption did not have a material impact on its financial statements.

Statement of Cash Flows: Restricted Cash. In November 2016, FASB issued an ASU that changes the classification and presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that a statement of cash flows include the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. FCX adopted this ASU effective January 1, 2018, and adjusted its consolidated statement of cash flows for the three months ended March 31, 2017, to include restricted cash and restricted cash equivalents with cash and cash equivalents. The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported			Impact of Adoption		Current Presentation
Other, net included in cash flow from investing activities	$	(21	)	$	4	$	(17	)
Cash flow from investing activities	(365		)	4		(361		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	(252		)	4		(248		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,245			158		4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	4,001			162		4,163

27

Net Periodic Pension and Postretirement Benefit Cost. In March 2017, FASB issued an ASU that changes how entities with defined benefit pension or other postretirement benefit plans present net periodic benefit cost in the income statement. This ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item or items as other compensation costs for those employees who are receiving the benefit. In addition, only the service cost component is eligible for capitalization when applicable (i.e., as a cost of inventory or an internally constructed asset). The other components of net periodic benefit cost are required to be presented separately from the service cost component and outside of operating income. These other components of net periodic benefit cost are not eligible for capitalization, and FCX elected to include these other components in other income, net. FCX adopted this ASU effective January 1, 2018, and adjusted its presentation in the consolidated statement of income for the three months ended March 31, 2017, to conform with the new guidance. The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported		Impact of Adoption			Current Presentation
Production and delivery	$	2,200	$	(12	)	$	2,188
Total cost of sales	2,589		(12		)	2,577
Selling, general and administrative expenses	153		(2		)	151
Mining exploration and research expenses	15		(1		)	14
Environmental obligations and shutdown costs	27		(2		)	25
Total costs and expenses	2,761		(17		)	2,744
Operating income	580		17			597
Other income, net	25		(17		)	8

NOTE 12. SUBSEQUENT EVENTS

FCX evaluated events after March 31, 2018, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

28

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF

FREEPORT-McMoRan INC.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Freeport-McMoRan Inc. (the Company) as of March 31, 2018, the related consolidated statements of income, comprehensive income and cash flows for the three-month periods ended March 31, 2018 and 2017, the consolidated statement of equity for the three-month period ended March 31, 2018, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2017, the related consolidated statements of operations, comprehensive income (loss), cash flows and equity for the year then ended, and the related notes (not presented herein); and in our report dated February 20, 2018, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2017, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ ERNST & YOUNG LLP

Phoenix, Arizona

May 4, 2018

29

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

In Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), “we,” “us” and “our” refer to Freeport-McMoRan Inc. (FCX) and its consolidated subsidiaries. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties in our annual report on Form 10-K for the year ended December 31, 2017, filed with the United States (U.S.) Securities and Exchange Commission (SEC). The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Cautionary Statement” for further discussion). References to “Notes” are Notes included in our Notes to Consolidated Financial Statements. Throughout MD&A, all references to income or losses per share are on a diluted basis.

OVERVIEW

We are a leading international mining company with headquarters in Phoenix, Arizona. We operate large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. We are the world’s largest publicly traded copper producer. Our portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.

Net income attributable to common stock totaled $692 million in first-quarter2018 and $228 million in first-quarter2017. First-quarter2018, compared with the 2017 period, benefited from higher copper and gold sales volumes and copper prices, partly offset by higher foreign income tax expense. Refer to “Consolidated Results” for further discussion.

During first-quarter2018, we repaid borrowings totaling $1.5 billion, and in April 2018, we redeemed $404 million of senior notes due 2022 and $50 million of senior notes due 2023. During first-quarter2018, our Board of Directors (Board) also reinstated a cash dividend on our common stock, and declared a quarterly cash dividend of $0.05 per share that was paid on May 1, 2018. Refer to Note 5 for further discussion.

At March 31, 2018, we had $3.7 billion in consolidated cash and cash equivalents and $11.6 billion in total debt. We had no borrowings and $3.5 billion available under our revolving credit facility. In April 2018, we entered into a new $3.5 billion, five-year, unsecured revolving credit facility with substantially similar structure and terms as our prior credit facility. Refer to Note 5 for further discussion.

We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. We continue to advance a project to develop the Lone Star oxide ores near the Safford operation in eastern Arizona. We are also pursuing other opportunities to enhance our mines’ net present values, and we continue to advance studies for future development of our copper resources, the timing of which will be dependent on market conditions.

As further discussed in Note 8, we continue to actively engage with Indonesian government officials to address regulatory changes that conflict with PT Freeport Indonesia’s (PT-FI) contractual rights in a manner that provides long-term stability for its operations and investment plans, and protects value for our stockholders. The parties have a mutual objective of completing negotiations and the required documentation as soon as possible. In December 2017, PT-FI was granted an extension of its temporary special license (IUPK) through June 30, 2018, to enable normal operations to continue during the negotiation period. In February 2018, PT-FI’s export license was extended to February 15, 2019. Until a definitive agreement is reached, PT-FI has reserved all rights under its Contract of Work (COW), including dispute resolution procedures.

As further discussed in Note 8, PT-FI is engaged in discussions with Indonesia's Ministry of Environment and Forestry regarding PT-FI’s controlled riverine tailings management system. Resolution of these matters is a requirement for concluding a comprehensive agreement for PT-FI's extended operations.

30

OUTLOOK

We continue to view the long-term outlook for our business positively, supported by limitations on supplies of copper and by the requirements for copper in the world’s economy. Our financial results vary as a result of fluctuations in market prices primarily for copper, gold and molybdenum, as well as other factors. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Because we cannot control the price of our products, the key measures that management focuses on in operating our business are sales volumes, unit net cash costs, operating cash flow and capital expenditures.

Projections for 2018 and other forward looking statements in this quarterly report on Form 10-Q assume resolution of PT-FI’s long-term mining rights or an extension of its temporary IUPK after June 30, 2018. Refer to Note 8 for further discussion of Indonesia regulatory matters, which could have a significant impact on future results. For other important factors that could cause results to differ materially from projections, refer to “Cautionary Statement.”

Consolidated Sales Volumes

Following are our projected consolidated sales volumes for the year 2018:

Copper (millions of recoverable pounds):
North America copper mines	1,475
South America mining	1,205
Indonesia mining	1,150
Total	3,830
Gold (thousands of recoverable ounces)	2,430
Molybdenum (millions of recoverable pounds)	95	a

a. Projected molybdenum sales include 35 million pounds produced by our Molybdenum mines and 60 million pounds produced by our North America and South America copper mines.

Consolidated sales volumes for second-quarter2018 are expected to approximate 970 million pounds of copper, 700 thousand ounces of gold and 24 million pounds of molybdenum.

Consolidated Unit Net Cash Costs

Assuming average prices of $1,300 per ounce of gold and $12.00 per pound of molybdenum for the remainder of 2018 and achievement of current sales volume and cost estimates, consolidated unit net cash costs (net of by-product credits) for our copper mines are expected to average $1.01 per pound of copper for the year 2018. The impact of price changes for the remainder of 2018 on consolidated unit net cash costs would approximate $0.025 per pound for each $50 per ounce change in the average price of gold and $0.02 per pound for each $2 per pound change in the average price of molybdenum. Quarterly unit net cash costs vary with fluctuations in sales volumes and realized prices, primarily for gold and molybdenum. Refer to “Consolidated Results – Production and Delivery Costs” for further discussion of consolidated production costs for our mining operations.

Consolidated Operating Cash Flow

Our consolidated operating cash flows vary with sales volumes, prices realized from copper, gold and molybdenum sales, production costs, income taxes, other working capital changes and other factors. Based on current sales volume and cost estimates, and assuming average prices of $3.15 per pound of copper, $1,300 per ounce of gold and $12.00 per pound of molybdenum for the remainder of 2018, our consolidated operating cash flows are estimated to approximate $5.6 billion for the year 2018 (including $0.2 billion in working capital sources and timing of other tax payments). Projected consolidated operating cash flows for the year 2018 also reflect an estimated income tax provision of $2.1 billion (refer to “Consolidated Results – Income Taxes” for further discussion of our projected income tax rate for the year 2018). The impact of price changes during the remainder of 2018 on operating cash flows would approximate $250 million for each $0.10 per pound change in the average price of copper, $90 million for each $50 per ounce change in the average price of gold and $85 million for each $2 per pound change in the average price of molybdenum.

Consolidated Capital Expenditures

Consolidated capital expenditures are expected to approximate $2.0 billion for the year 2018, including $1.1 billion for major mining projects primarily associated with underground development activities in the Grasberg minerals district and development of the Lone Star oxide project. If PT-FI is unable to reach a definitive agreement with the

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Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in underground development projects and will pursue dispute resolution procedures under PT-FI’s COW.

MARKETS

World prices for copper, gold and molybdenum can fluctuate significantly. During the period from January 2008 through March 2018, the London Metal Exchange (LME) spot copper price varied from a low of $1.26 per pound in 2008 to a record high of $4.60 per pound in 2011; the London Bullion Market Association (London) PM gold price fluctuated from a low of $713 per ounce in 2008 to a record high of $1,895 per ounce in 2011; and the Metals Week Molybdenum Dealer Oxide weekly average price ranged from a low of $4.46 per pound in 2015 to a high of $33.88 per pound in 2008. Copper, gold and molybdenum prices are affected by numerous factors beyond our control as described further in “Risk Factors” contained in Part I, Item 1A. of our annual report on Form 10-K for the year ended December 31, 2017.

This graph presents LME spot copper prices and the combined reported stocks of copper at the LME, Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange (NYMEX), and the Shanghai Futures Exchange from January 2008 through March 2018. Beginning in mid-2014, copper prices declined because of concerns about slowing growth rates in China, a stronger U.S. dollar and a broad-based decline in commodity prices, but began to improve in fourth-quarter 2016 and throughout 2017. During first-quarter2018, LME spot copper prices ranged from a low of $2.95 per pound to a high of $3.27 per pound, averaged $3.16 per pound and closed at $3.03 per pound on March 31, 2018. The LME spot copper price was $3.08 per pound on April 30, 2018.

We believe the underlying long-term fundamentals of the copper business remain positive, supported by the significant role of copper in the global economy and a challenging long-term supply environment attributable to difficulty in replacing existing large mines’ output with new production sources. Future copper prices are expected to be volatile and are likely to be influenced by demand from China and emerging markets, as well as economic activity in the U.S. and other industrialized countries, the timing of the development of new supplies of copper and the production levels of mines and copper smelters.

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This graph presents London PM gold prices from January 2008 through March 2018. An improving economic outlook, stronger U.S. dollar and positive equity performance contributed to lower demand for gold since 2014. During first-quarter2018, London PM gold prices ranged from a low of $1,308 per ounce to a high of $1,355 per ounce, averaged $1,329 per ounce, and closed at $1,324 per ounce on March 31, 2018. The London PM gold price was $1,313 per ounce on April 30, 2018.

This graph presents the Metals Week Molybdenum Dealer Oxide weekly average prices from January 2008 through March 2018. Molybdenum prices declined beginning in mid-2014 because of weaker demand from global steel and stainless steel producers but have rebounded starting in mid-2016 with further improvement in late-2017 and into 2018. During first-quarter2018, the weekly average price of molybdenum ranged from a low of $11.03 per pound to a high of $12.97 per pound, averaged $12.22 per pound, and was $12.66 per pound on March 31, 2018. The Metals Week Molybdenum Dealer Oxide weekly average price was $12.35 per pound on April 30, 2018.

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CONSOLIDATED RESULTS

	Three Months Ended March 31,
	2018				2017
SUMMARY FINANCIAL DATA	(in millions, except per share amounts)
Revenuesa,b	$	4,868			$	3,341
Operating incomea,c	$	1,459			$	597	d,e,f
Net income from continuing operationsg	$	828		h	$	268
Net (loss) income from discontinued operationsi	$	(11	)		$	38
Net income attributable to common stock	$	692			$	228
Diluted net income (loss) per share of common stock:
Continuing operations	$	0.48			$	0.13
Discontinued operations	(0.01		)		0.03
	$	0.47			$	0.16
Diluted weighted-average common shares outstanding	1,458				1,454
Operating cash flowsj	$	1,369			$	792
Capital expenditures	$	402			$	344
At March 31:
Cash and cash equivalents	$	3,702			$	4,001
Total debt, including current portion	$	11,606			$	15,363

a.As further detailed in Note 9, following is a summary of revenues and operating income (loss) by operating division (in millions):

	Three Months Ended March 31,
Revenues	2018			2017
North America copper mines	$	1,308		$	1,095
South America mining	877			868
Indonesia mining	1,573			534
Molybdenum mines	95			63
Rod & Refining	1,393			1,115
Atlantic Copper Smelting & Refining	579			458
Corporate, other & eliminations	(957		)	(792		)
Total revenues	$	4,868		$	3,341
Operating income (loss)
North America copper mines	$	419		$	311
South America mining	205			260
Indonesia mining	896			151
Molybdenum mines	9			(8		)
Rod & Refining	3			4
Atlantic Copper Smelting & Refining	10			10
Corporate, other & eliminations	(83		)	(131		)
Total operating income	$	1,459		$	597

b. Includes adjustments to embedded derivatives for provisionally priced concentrate and cathode sales (refer to Note 6).

c. First-quarter2018 includes a gain on sales of assets totaling $11 million ($11 million to net income attributable to common stock or $0.01 per share), primarily reflecting adjustments to the fair value of contingent consideration related to the 2016 sale of onshore California oil and gas properties, which will continue to be adjusted through December 31, 2020. First-quarter2017 includes a net gain on sales of assets totaling $23 million ($23 million to net income attributable to common stock or $0.01 per share) associated with oil and gas property sales, partly offset by adjustments to the fair value of the potential contingent consideration related to the 2016 sale of onshore California oil and gas properties.

d. Includes charges at mining operations totaling $40 million ($30 million to net income attributable to common stock or $0.02 per share) for costs charged directly to cost of sales as a result of the impact of regulatory restrictions on PT-FI’s concentrate exports and for asset impairments at Morenci.

e. Includes net charges at oil and gas operations totaling $1 million ($1 million to net income attributable to common stock or less than $0.01 per share) consisting of $21 million in selling, general and administrative expenses for contract termination costs, mostly offset by adjustments of $20 million in production and delivery costs for contingent payments related to 2016 drillship settlements.

f. Includes net charges to environmental obligations and related litigation reserves totaling $19 million ($19 million to net income attributable to common stock or $0.01 per share).

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g. We defer recognizing profits on intercompany sales until final sales to third parties occur. Refer to “Operations – Smelting & Refining” for a summary of net impacts from changes in these deferrals.

h. Includes interest received by PT-FI with the refund of prior years' tax receivables totaling $24 million ($13 million to net income attributable to common stock or $0.01 per share).

i. Primarily reflects adjustments to the estimated fair value of contingent consideration related to the November 2016 sale of our interest in TF Holdings Limited (TFHL), which will continue to be adjusted through December 31, 2019.

j. Includes net working capital (uses) sources and timing of other tax payments of $(21) million in first-quarter2018 and $189 million in first-quarter2017.

	Three Months Ended March 31,
	2018		2017
SUMMARY OPERATING DATA
Copper (millions of recoverable pounds)
Production	952		851
Sales, excluding purchases	993		809
Average realized price per pound	$	3.11	$	2.67
Site production and delivery costs per pounda	$	1.67	$	1.60
Unit net cash costs per pounda	$	0.98	$	1.39
Gold (thousands of recoverable ounces)
Production	599		239
Sales, excluding purchases	610		182
Average realized price per ounce	$	1,312	$	1,229
Molybdenum (millions of recoverable pounds)
Production	22		23
Sales, excluding purchases	24		24
Average realized price per pound	$	11.95	$	8.71

a. Reflects per pound weighted-average production and delivery costs and unit net cash costs (net of by-product credits) for all copper mines, before net noncash and other costs. For reconciliations of per pound unit costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements, refer to “Product Revenues and Production Costs.”

Revenues

Consolidated revenues totaled $4.9 billion in first-quarter2018 and $3.3 billion in first-quarter2017. Revenues from our mining operations primarily include the sale of copper concentrate, copper cathode, copper rod, gold in concentrate and molybdenum. Following is a summary of changes in our consolidated revenues between periods (in millions):

	Three Months Ended March 31
Consolidated revenues - 2017 period	$	3,341
Higher (lower) sales volumes:
Copper	491
Gold	525
Molybdenum	(1		)
Higher average realized prices:
Copper	437
Gold	51
Molybdenum	77
Adjustments for prior period provisionally priced copper sales	(169		)
Higher treatment charges	(29		)
Higher revenues from purchased copper	81
Higher Atlantic Copper revenues	121
Other, including intercompany eliminations	(57		)
Consolidated revenues - 2018 period	$	4,868

Sales Volumes.Consolidated copper sales increased to 993 million pounds in first-quarter2018, compared with 809 million pounds in first-quarter2017, primarily reflecting higher operating rates in Indonesia. Consolidated gold sales volumes increased to 610 thousand ounces in first-quarter2018, compared with 182 thousand ounces in first-

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quarter2017, primarily reflecting higher ore grades and operating rates in Indonesia. Lower operating rates in first-quarter2017 reflected the regulatory restrictions on PT-FI's concentrate exports from mid-January 2017 to mid-April 2017.

Consolidated molybdenum sales volumes of 24 million pounds in first-quarter2018 approximated first-quarter2017 sales of 24 million pounds.

Refer to “Operations” for further discussion of sales volumes at our mining operations.

Realized Prices.Our consolidated revenues can vary significantly as a result of fluctuations in the market prices of copper, gold and molybdenum. First-quarter2018 average realized prices, compared with first-quarter2017, were 16 percent higher for copper, 7 percent higher for gold and 37 percent higher for molybdenum. Refer to “Markets” for further discussion.

As discussed below, substantially all of our copper concentrate and cathode sales contracts provide final copper pricing in a specified future month. We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period until final pricing on the date of settlement. Average realized copper prices include net adjustments to current period provisionally priced copper sales totaling $(57) million in first-quarter2018 and $16 million in first-quarter2017. Refer to Notes 6 and 9 for a summary of total adjustments to prior period and current period provisionally priced sales.

Prior Period Provisionally Priced Copper Sales.Substantially all of our copper concentrate and cathode sales contracts provide final copper pricing in a specified future month (generally one to four months from the shipment date) based primarily on quoted LME monthly average spot copper prices. We receive market prices based on prices in the specified future period, which results in price fluctuations recorded through revenues until the date of settlement. We record revenues and invoice customers at the time of shipment based on then-current LME prices, which results in an embedded derivative on our provisionally priced concentrate and cathode sales that is adjusted to fair value through earnings each period, using the period-end forward prices, until final pricing on the date of settlement. To the extent final prices are higher or lower than what was recorded on a provisional basis, an increase or decrease to revenues is recorded each reporting period until the date of final pricing. Accordingly, in times of rising copper prices, our revenues benefit from adjustments to the final pricing of provisionally priced sales pursuant to contracts entered into in prior periods; in times of falling copper prices, the opposite occurs. Net adjustments to prior periods’ provisionally priced copper sales recorded in consolidated revenues totaled $(78) million in first-quarter2018 and $91 million in first-quarter2017. Refer to Notes 6 and 9 for a summary of total adjustments to prior period and current period provisionally priced sales.

At March 31, 2018, we had provisionally priced copper sales totaling 324 million pounds of copper (net of intercompany sales and noncontrolling interests) recorded at an average of $3.04 per pound, subject to final pricing over the next several months. We estimate that each $0.05 change in the price realized from the March 31, 2018, provisional price recorded would have an approximate $10 million effect on our 2018 net income attributable to common stock. The LME spot copper price was $3.08 per pound on April 30, 2018.

Treatment Charges. Revenues from our concentrate sales are recorded net of treatment charges. Higher treatment charges in first-quarter2018, compared with first-quarter2017, primarily reflect higher sales volumes from Indonesia.

Purchased Copper.We purchase copper cathode primarily for processing by our Rod & Refining operations. Purchased copper volumes totaled 74 million pounds in first-quarter2018, compared with 58 million pounds in first-quarter2017.

Atlantic Copper Revenues.Atlantic Copper revenues totaled $579 million in first-quarter2018, compared with $458 million in first-quarter2017. Higher revenues in first-quarter2018, compared with first-quarter2017, primarily reflect higher copper sales volumes and higher copper prices.

Production and Delivery Costs

Consolidated production and delivery costs totaled $2.8 billion in first-quarter2018 and $2.2 billion in first-quarter2017. Higher consolidated production and delivery costs in first-quarter2018, compared with first-quarter2017, primarily reflect higher mining rates and repair and maintenance costs.

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Mining Unit Site Production and Delivery Costs. Site production and delivery costs for our copper mining operations primarily include labor, energy and commodity-based inputs, such as sulphuric acid, reagents, liners, tires and explosives. Consolidated unit site production and delivery costs (before net noncash and other costs) for our copper mines averaged $1.67 per pound of copper in first-quarter2018, compared with $1.60 per pound of copper in first-quarter2017. Higher consolidated unit site production and delivery costs in first-quarter2018, compared with first-quarter2017, primarily reflect higher mining rates and higher repair and maintenance costs. Refer to “Operations – Unit Net Cash Costs” for further discussion of unit net cash costs associated with our operating divisions and to “Product Revenues and Production Costs” for reconciliations of per pound costs by operating division to production and delivery costs applicable to sales reported in our consolidated financial statements.

Depreciation, Depletion and Amortization

Depreciation will vary under the unit-of-production (UOP) method as a result of changes in sales volumes and the related UOP rates at our mining operations. Consolidated depreciation, depletion and amortization (DD&A) totaled $451 million in first-quarter2018, compared with $389 million in first-quarter2017. Higher DD&A in first-quarter2018, compared with first-quarter2017, primarily reflected higher sales volumes at PT-FI.

Selling, General and Administrative Expenses

Consolidated selling, general and administrative expenses totaled $131 million in first-quarter2018 and $151 million in first-quarter2017 (which included net charges of $21 million for contract termination costs at our oil and gas operations).

Mining Exploration and Research Expenses

Consolidated exploration and research expenses for our mining operations totaled $21 million in first-quarter2018 and $14 million in first-quarter2017. Our mining exploration activities are generally associated with our existing mines, focusing on opportunities to expand reserves and resources to support development of additional future production capacity. Exploration results continue to indicate opportunities for significant future potential reserve additions in North America and South America. Exploration spending is expected to approximate $72 million for the year 2018.

Environmental Obligations and Shutdown Costs

Environmental obligation costs reflect net revisions to our long-term environmental obligations, which vary from period to period because of changes to environmental laws and regulations, the settlement of environmental matters and/or circumstances affecting our operations that could result in significant changes in our estimates. Shutdown costs include care-and-maintenance costs and any litigation, remediation or related expenditures associated with closed facilities or operations. Net charges for environmental obligations and shutdown costs totaled $9 million in first-quarter2018 and $25 million in first-quarter2017.

Net Gain on Sales of Assets

Net gain on sales of assets totaled $11 million in first-quarter2018, primarily reflecting adjustments to the fair value of the potential $150 million in contingent consideration related to the 2016 sale of onshore California oil and gas properties, which will continue to be adjusted through December 31, 2020. Net gain on sales of assets totaled $23 million in first-quarter2017, including gains of $17 million related to the sale of Madden property interests and $16 million of adjustments related to the December 2016 Deepwater Gulf of Mexico sale, partly offset by adjustments of $10 million to the fair value of contingent consideration related to the December 2016 onshore California sale.

Interest Expense, Net

Consolidated interest costs (before capitalization) totaled $176 million in first-quarter2018 and $195 million in first-quarter2017. Lower interest costs in first-quarter2018, compared to first-quarter2017, reflect a decrease in total debt.

Capitalized interest varies with the level of expenditures for our development projects and average interest rates on our borrowings, and totaled $25 million in first-quarter2018 and $28 million in first-quarter2017.

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Income Taxes

Following is a summary of the approximate amounts used in the calculation of our consolidated income tax provision (in millions, except percentages):

	Three Months Ended March 31,
	2018							2017
	Incomea		Effective Tax Rate		Income Tax (Provision) Benefit			Incomea		Effective Tax Rate	Income Tax (Provision) Benefit
U.S.	$	170	(2)%		$	4		$	10	70%	$	(7	)
South America	183		39%		(72		)	260		39%	(101		)
Indonesia	933		43%		(401		)	152		44%	(67		)
Eliminations and other	50		N/A		(3		)	16		N/A	(1		)
Rate adjustmentb	—		N/A		(34		)	—		N/A	2
Consolidated FCX	$	1,336	38%	c	$	(506	)	$	438	40%	$	(174	)

a. Represents income from continuing operations by geographic location before income taxes and equity in affiliated companies’ net (losses) earnings.

b. In accordance with applicable accounting rules, we adjust our interim provision for income taxes to equal our consolidated tax rate.

c. The consolidated effective income tax rate is a function of the combined effective tax rates for the jurisdictions in which we operate. Accordingly, variations in the relative proportions of jurisdictional income result in fluctuations to our consolidated effective income tax rate. Assuming achievement of current sales volume and cost estimates and average prices of $3.15 per pound for copper, $1,300 per ounce for gold and $12.00 per pound for molybdenum for the remainder of 2018, we estimate our consolidated effective tax rate for the year 2018 will approximate 36 percent and would decrease with higher prices.

Net (Loss) Income from Discontinued Operations

Net (loss) income from discontinued operations of $(11) million in first-quarter2018 and $38 million in first-quarter2017, primarily reflected adjustments to the fair value of the potential $120 million contingent consideration related to the November 2016 sale of our interest in TFHL, which will continue to be adjusted through December 31, 2019.

OPERATIONS

North America Copper Mines

We operate seven open-pit copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. All of the North America mining operations are wholly owned, except for Morenci. We record our 72 percent undivided joint venture interest in Morenci using the proportionate consolidation method.

The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and solution extraction/electrowinning (SX/EW) operations. A majority of the copper produced at our North America copper mines is cast into copper rod by our Rod & Refining segment. The remainder of our North America copper sales is in the form of copper cathode or copper concentrate, a portion of which is shipped to Atlantic Copper (our wholly owned smelter). Molybdenum concentrate, gold and silver are also produced by certain of our North America copper mines.

Operating and Development Activities. We have significant undeveloped reserves and resources in North America and a portfolio of potential long-term development projects. Future investments will be undertaken based on the results of economic and technical feasibility studies, and are dependent on market conditions. We continue to study opportunities to reduce the capital intensity of our potential long-term development projects.

Through exploration drilling, we have identified a significant resource at our wholly owned Lone Star project located near the Safford operation in eastern Arizona. We have commenced an initial project to develop the Lone Star oxide ores with first production expected by the end of 2020. Total estimated capital costs, including mine equipment and pre-production stripping, approximate $850 million and will benefit from the utilization of existing infrastructure at the adjacent Safford operation. At March 31, 2018, approximately $35 million has been incurred for this project. Production from the Lone Star oxide ores is expected to average approximately 200 million pounds of copper per year with an approximate 20-year mine life. The project also advances the potential for development of a larger-scale district opportunity. We are conducting additional drilling to follow up on positive exploration results as we

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continue to evaluate longer term opportunities available from the significant long-term sulfide potential in the Lone Star/Safford minerals district. 

Operating Data. Following is a summary of consolidated operating data for the North America copper mines:

	Three Months Ended March 31,
	2018		2017
Operating Data, Net of Joint Venture Interests
Copper (millions of recoverable pounds)
Production	348		392
Sales, excluding purchases	384		375
Average realized price per pound	$	3.16	$	2.68
Molybdenum (millions of recoverable pounds)
Productiona	7		9
100% Operating Data
SX/EW operations
Leach ore placed in stockpiles (metric tons per day)	674,600		701,800
Average copper ore grade (percent)	0.27		0.28
Copper production (millions of recoverable pounds)	262		277
Mill operations
Ore milled (metric tons per day)	288,600		303,800
Average ore grade (percent):
Copper	0.35		0.41
Molybdenum	0.02		0.03
Copper recovery rate (percent)	88.0		86.4
Copper production (millions of recoverable pounds)	151		186

a. Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at the North America copper mines.

North America’s consolidated copper sales volumes of 384 million pounds in first-quarter2018 were higher than first-quarter2017 sales of 375 million pounds, primarily reflecting timing of shipments. North America copper sales are estimated to approximate 1.5 billion pounds for the year 2018, compared with 1.5 billion pounds in 2017.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Gross Profit per Pound of Copper and Molybdenum

The following table summarizes unit net cash costs and gross profit per pound at our North America copper mines. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

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	Three Months Ended March 31,
	2018								2017
	By- Product Method			Co-Product Method					By- Product Method				Co-Product Method
				Copper			Molyb- denuma						Copper		Molyb- denuma
Revenues, excluding adjustments	$	3.16		$	3.16		$	10.87	$	2.68			$	2.68	$	7.00
Site production and delivery, before net noncash and other costs shown below	1.84			1.73			7.81		1.50				1.42		5.16
By-product credits	(0.20		)	—			—		(0.15		)		—		—
Treatment charges	0.10			0.09			—		0.11				0.11		—
Unit net cash costs	1.74			1.82			7.81		1.46				1.53		5.16
DD&A	0.25			0.23			0.66		0.31				0.29		0.52
Noncash and other costs, net	0.05			0.05			0.09		0.09			b	0.09		0.07
Total unit costs	2.04			2.10			8.56		1.86				1.91		5.75
Other revenue adjustments, primarily for pricing on prior period open sales	(0.01		)	(0.01		)	—		0.02				0.02		—
Gross profit per pound	$	1.11		$	1.05		$	2.31	$	0.84			$	0.79	$	1.25
Copper sales (millions of recoverable pounds)	383			383					374				374
Molybdenum sales (millions of recoverable pounds)a							7								9

a. Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b. Includes $19 million ($0.05 per pound of copper) for asset impairment charges at Morenci.

Our North America copper mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) for the North America copper mines of $1.74 per pound of copper in first-quarter2018 were higher than unit net cash costs of $1.46 per pound in first-quarter2017, primarily reflecting higher repair and maintenance costs.

Because certain assets are depreciated on a straight-line basis, North America’s average unit depreciation rate may vary with asset additions and the level of copper production and sales.

Average unit net cash costs (net of by-product credits) for our North America copper mines are expected to approximate $1.71 per pound of copper for the year 2018, based on achievement of current sales volume and cost estimates and assuming an average molybdenum price of $12.00 per pound for the remainder of 2018. North

America’s average unit net cash costs for the year 2018 would change by approximately $0.03 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2018.

South America Mining

We operate two copper mines in South America – Cerro Verde in Peru (in which we own a 53.56 percent interest) and El Abra in Chile (in which we own a 51 percent interest), which are consolidated in our financial statements.

South America mining includes open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. Production from our South America mines is sold as copper concentrate or cathode under long-term contracts. Our South America mines also sell a portion of their copper concentrate production to Atlantic Copper. In addition to copper, the Cerro Verde mine produces molybdenum concentrate and silver.

Operating and Development Activities. The Cerro Verde expansion project, which commenced operations in September 2015, achieved capacity operating rates in early 2016. The project expanded the concentrator facilities’ capacity from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day. Cerro Verde’s expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies. The project has continued to perform well, with average mill throughput rates of 385,500 metric tons of ore per day in first-quarter2018, including a daily record of 462,900 metric tons of ore.

Exploration results at El Abra indicate a significant sulfide resource, which could potentially support a major mill project similar to facilities recently constructed at Cerro Verde. We continue to evaluate a major expansion at El

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Abra to process additional sulfide material and to achieve higher recoveries. Future investments will depend on technical studies, which are being advanced, economic factors and market conditions.

Operating Data. Following is a summary of consolidated operating data for our South America mining operations:

	Three Months Ended March 31,
	2018		2017
Copper (millions of recoverable pounds)
Production	293		304
Sales	290		309
Average realized price per pound	$	3.08	$	2.66
Molybdenum (millions of recoverable pounds)
Productiona	6		6
SX/EW operations
Leach ore placed in stockpiles (metric tons per day)	168,000		120,100
Average copper ore grade (percent)	0.33		0.42
Copper production (millions of recoverable pounds)	67		66
Mill operations
Ore milled (metric tons per day)	385,500		338,900
Average ore grade (percent):
Copper	0.39		0.44
Molybdenum	0.01		0.02
Copper recovery rate (percent)	79.0		84.5
Copper production (millions of recoverable pounds)	226		238

a. Refer to “Consolidated Results” for our consolidated molybdenum sales volumes, which include sales of molybdenum produced at Cerro Verde.

South America’s consolidated copper sales volumes of 290 million pounds in first-quarter2018 were lower than first-quarter2017 sales of 309 million pounds, primarily reflecting lower ore grades and recovery rates at Cerro Verde. Copper sales from South America mines are expected to approximate 1.2 billion pounds of copper for the year 2018, compared with 1.2 billion pounds of copper in 2017.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Gross Profit per Pound of Copper

The following table summarizes unit net cash costs and gross profit per pound of copper at the South America mining operations. Unit net cash costs per pound of copper are reflected under the by-product and co-product methods as the South America mining operations also had sales of molybdenum and silver. Refer to “Product Revenues and Production Costs” for an explanation of the “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

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	Three Months Ended March 31,
	2018						2017
	By-Product Method			Co-Product Method			By-Product Method			Co-Product Method
Revenues, excluding adjustments	$	3.08		$	3.08		$	2.66		$	2.66
Site production and delivery, before net noncash and other costs shown below	1.78			1.64			1.48			1.38
By-product credits	(0.25		)	—			(0.18		)	—
Treatment charges	0.20			0.20			0.22			0.22
Royalty on metals	0.01			0.01			0.01			0.01
Unit net cash costs	1.74			1.85			1.53			1.61
DD&A	0.43			0.40			0.43			0.40
Noncash and other costs, net	0.05			0.05			0.01			0.01
Total unit costs	2.22			2.30			1.97			2.02
Other revenue adjustments, primarily for pricing on prior period open sales	(0.15		)	(0.15		)	0.16			0.16
Gross profit per pound	$	0.71		$	0.63		$	0.85		$	0.80
Copper sales (millions of recoverable pounds)	290			290			309			309

Our South America mines have varying cost structures because of differences in ore grades and characteristics, processing costs, by-product credits and other factors. Average unit net cash costs (net of by-product credits) of $1.74 per pound of copper in first-quarter2018 were higher than unit net cash costs of $1.53 per pound in first-quarter2017, primarily reflecting higher mining rates and lower ore grades.

Revenues from Cerro Verde’s concentrate sales are recorded net of treatment charges, which will vary with Cerro Verde’s sales volumes and the price of copper.

Because certain assets are depreciated on a straight-line basis, South America’s unit depreciation rate may vary with asset additions and the level of copper production and sales.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

Average unit net cash costs (net of by-product credits) for our South America mining operations are expected to approximate $1.64 per pound of copper for the year 2018, based on current sales volume and cost estimates and assuming an average price of $12.00 per pound of molybdenum for the remainder of 2018.

Indonesia Mining

Indonesia mining includes PT-FI’s Grasberg minerals district, one of the world’s largest copper and gold deposits, in Papua, Indonesia. We own 90.64 percent of PT-FI, including 9.36 percent owned through our wholly owned subsidiary, PT Indocopper Investama.

PT-FI operates a proportionately consolidated unincorporated joint venture with Rio Tinto plc (Rio Tinto), under which Rio Tinto has a 40 percent interest in certain assets and a 40 percent interest through 2022 in production exceeding specified annual amounts of copper, gold and silver. After 2022, all production and related revenues and costs are shared 60 percent PT-FI and 40 percent Rio Tinto. Refer to Note 3 in our annual report on Form 10-K for the year ended December 31, 2017, for discussion of our joint venture with Rio Tinto.

PT-FI produces copper concentrate that contains significant quantities of gold and silver. Substantially all of PT-FI’s copper concentrate is sold under long-term contracts, and during first-quarter2018, approximately 40 percent of PT-FI’s concentrate production was sold to PT Smelting (PT-FI’s 25-percent-owned smelter and refinery in Gresik, Indonesia).

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Regulatory Matters. As further discussed in Note 8, PT-FI continues to actively engage with Indonesian government officials to address regulatory changes that conflict with its contractual rights in a manner that provides long-term stability for PT-FI’s operations and investment plans, and protects value for our stockholders. The parties have a mutual objective of completing negotiations and the required documentation as soon as possible.

In December 2017, PT-FI was granted an extension of its temporary IUPK through June 30, 2018, to enable normal operations to continue during the negotiation period. In February 2018, PT-FI’s export license was extended to February 15, 2019. Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including dispute resolution procedures.

PT-FI is also engaged in discussions with Indonesia's Ministry of Environment and Forestry regarding PT-FI’s controlled riverine tailings management system. Resolution of these matters is a requirement for concluding a comprehensive agreement for PT-FI's extended operations.

We cannot predict whether PT-FI will be successful in reaching a satisfactory agreement on the terms of its long-term mining rights. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in underground development projects and will pursue dispute resolution procedures under PT-FI’s COW. For further discussion of the regulatory matters and risks associated with operations in Indonesia, refer to Part I, Item IA. “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2017.

Operating and Development Activities. PT-FI is currently mining the final phase of the Grasberg open pit, which contains high copper and gold ore grades. PT-FI expects to mine high-grade ore until transitioning to the Grasberg Block Cave underground mine in the first half of 2019, resulting in lower copper and gold production from Indonesia mining during the transition period.

PT-FI has several projects in the Grasberg minerals district related to the development of its large-scale, long-lived, high-grade underground ore bodies. In aggregate, these underground ore bodies are expected to produce large-scale quantities of copper and gold following the transition from the Grasberg open pit. Substantial progress has been made to prepare for the transition to mining of the Grasberg Block Cave underground mine. Mine development activities are sufficiently advanced to commence caving in early 2019. The ore flow system and underground rail line are expected to be completed in the second half of 2018.

Subject to reaching a definitive agreement with the Indonesian government to support PT-FI’s long-term investment plans, estimated annual capital spending on these projects would average $0.8 billion per year ($0.7 billion per year net to PT-FI) over the next five years. Considering the long-term nature and size of these projects, actual costs could vary from these estimates. In response to market conditions and Indonesian regulatory uncertainty, the timing of these expenditures continues to be reviewed. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, we intend to reduce or defer investments significantly in our underground development projects and will pursue dispute resolution procedures under PT-FI’s COW.

The following provides additional information on the continued development of the Common Infrastructure project, the Grasberg Block Cave underground mine and the Deep Mill Level Zone (DMLZ) ore body that lies below the Deep Ore Zone (DOZ) underground mine. Our current plans and mineral reserves in Indonesia assume that PT-FI’s long-term mining rights will be extended through 2041, as stated in the COW.

Common Infrastructure and Grasberg Block Cave Mine. In 2004, PT-FI commenced its Common Infrastructure project to provide access to its large undeveloped underground ore bodies located in the Grasberg minerals district through a tunnel system located approximately 400 meters deeper than its existing underground tunnel system. In addition to providing access to our underground ore bodies, the tunnel system will enable PT-FI to conduct future exploration in prospective areas associated with currently identified ore bodies. The tunnel system was completed to the Big Gossan terminal, and the Big Gossan mine was brought into production in 2010. The Big Gossan underground mine was on care-and-maintenance status during most of 2017 and production restarted in fourth-quarter 2017. Development of the DMLZ and Grasberg Block Cave underground mines is advancing using the Common Infrastructure project tunnels as access.

The Grasberg Block Cave underground mine accounts for approximately half of our recoverable proven and probable reserves in Indonesia. Production from the Grasberg Block Cave mine is expected to commence in the first half of 2019, following the end of mining of the Grasberg open pit. Targeted production rates once the Grasberg

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Block Cave mining operation reaches full capacity are expected to approximate 130,000 to 160,000 metric tons of ore per day. PT-FI continues to review its operating plans to determine the optimum mine plan for the Grasberg Block Cave underground mine.

Aggregate mine development capital for the Grasberg Block Cave underground mine and associated Common Infrastructure is expected to approximate $6.4 billion (incurred between 2008 and 2023), with PT-FI’s share totaling approximately $5.9 billion. Aggregate project costs totaling $3.4 billion have been incurred through March 31, 2018, including $136 million during first-quarter2018.

DMLZ. The DMLZ ore body lies below the DOZ mine at the 2,590-meter elevation and represents the downward continuation of mineralization in the Ertsberg East Skarn system and neighboring Ertsberg porphyry. In September 2015, PT-FI initiated pre-commercial production that represents ore extracted during the development phase for the purpose of obtaining access to the ore body. PT-FI continues to review its mine plan for the DMLZ underground mine, which is currently in pre-commercial production. In response to mining-induced seismic activity that began in 2017, the development plans have been revised to a slower ramp up to full production to assess alternatives to manage the rock stress encountered in the early phase of cave development. The DMLZ rock types and geologic setting are different than other ore bodies in the Grasberg minerals district. PT-FI currently expects DMLZ to ramp up to full capacity of 80,000 metric tons of ore per day in 2022. Near-term production plans will continue to be reviewed and potentially revised as additional data becomes available.

Drilling efforts continue to determine the extent of the ore body. Aggregate mine development capital costs for the DMLZ underground mine are expected to approximate $3.1 billion (incurred between 2009 and 2021), with PT-FI’s share totaling approximately $1.9 billion. Aggregate project costs totaling $2.2 billion have been incurred through March 31, 2018, including $75 million during first-quarter2018.

Other Matters. As further discussed in “Risk Factors” contained in Part I. Item 1A of our annual report on Form 10-K for the year ended December 31, 2017, there have been a series of shooting incidents within the PT-FI project area and in nearby areas. During March and April 2018, there were six additional shooting incidents, which did not result in any injuries. The safety of our workforce is a critical concern, and PT-FI continues to work with the Indonesian government to address security issues. We also continue to limit the use of the road leading to our mining and milling operations to secured convoys.

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Operating Data. Following is a summary of consolidated operating data for our Indonesia mining operations:

	Three Months Ended March 31,
	2018		2017
Operating Data, Net of Joint Venture Interest
Copper (millions of recoverable pounds)
Production	311		155
Sales	319		125
Average realized price per pound	$	3.06	$	2.63
Gold (thousands of recoverable ounces)
Production	595		232
Sales	603		177
Average realized price per ounce	$	1,312	$	1,229
100% Operating Data
Ore milled (metric tons per day):a
Grasberg open pit	125,200		53,600
DOZ underground mine	39,400		26,100
DMLZ underground mine	2,600		3,200
Grasberg Block Cave underground mine	4,000		2,600
Big Gossan underground mine	2,400		1,700
Total	173,600		87,200
Average ore grades:
Copper (percent)	1.12		1.15
Gold (grams per metric ton)	1.63		1.17
Recovery rates (percent):
Copper	92.0		92.2
Gold	84.7		84.8
Production:
Copper (millions of recoverable pounds)	340		172
Gold (thousands of recoverable ounces)	673		241

a. Amounts represent the approximate average daily throughput processed at PT-FI’s mill facilities from each producing mine and from development activities that result in metal production.

Indonesia mining’s consolidated sales of 319 million pounds of copper and 603 thousand ounces of gold in first-quarter2018 were higher than first-quarter2017 sales of 125 million pounds of copper and 177 thousand ounces of gold, primarily reflecting higher operating rates and gold ore grades. Lower operating rates in first-quarter 2017 reflected the regulatory restrictions on PT-FI’s concentrate exports from mid-January 2017 to mid-April 2017.

Sales volumes from Indonesia mining are expected to approximate 1.15 billion pounds of copper and 2.4 million ounces of gold for the year 2018, compared with 1.0 billion pounds of copper and 1.5 million ounces of gold for the year 2017. Indonesia mining’s projected sales volumes and unit net cash credits (refer to discussion below) for the year 2018 are dependent on a number of factors, including operational performance, workforce productivity, timing of shipments, and Indonesia regulatory matters, including the resolution of PT-FI’s long-term mining rights or an extension of PT-FI’s temporary IUPK after June 30, 2018. Refer to Note 8 for further discussion.

Unit Net Cash Costs. Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

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Gross Profit per Pound of Copper and per Ounce of Gold

The following table summarizes the unit net cash costs and gross profit per pound of copper and per ounce of gold at our Indonesia mining operations. Refer to “Product Revenues and Production Costs” for an explanation of “by-product” and “co-product” methods and a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

	Three Months Ended March 31,
	2018									2017
	By-Product Method			Co-Product Method						By-Product Method				Co-Product Method
				Copper			Gold							Copper		Gold
Revenues, excluding adjustments	$	3.06		$	3.06		$	1,312		$	2.63			$	2.63	$	1,229
Site production and delivery, before net noncash and other costs shown below	1.36			0.75			319			2.13				1.26		589
Gold and silver credits	(2.59		)	—			—			(1.88		)		—		—
Treatment charges	0.25			0.13			57			0.28				0.17		77
Export duties	0.14			0.08			34			0.11				0.07		31
Royalty on metals	0.21			0.11			49			0.16				0.09		45
Unit net cash (credits) costs	(0.63		)	1.07			459			0.80				1.59		742
DD&A	0.57			0.31			133			0.66				0.39		184
Noncash and other costs, net	0.04			0.02			11			0.26			a	0.15		72
Total unit (credit) costs	(0.02		)	1.40			603			1.72				2.13		998
Other revenue adjustments, primarily for pricing on prior period open sales	(0.12		)	(0.12		)	27			0.33				0.33		51
PT Smelting intercompany (loss) profit	(0.03		)	(0.02		)	(7		)	0.21				0.13		59
Gross profit per pound/ounce	$	2.93		$	1.52		$	729		$	1.45			$	0.96	$	341
Copper sales (millions of recoverable pounds)	319			319						125				125
Gold sales (thousands of recoverable ounces)							603									177

a. Includes $21 million ($0.17 per pound of copper) of costs charged directly to cost of sales as a result of the impact of regulatory restrictions on PT-FI’s concentrate exports.

A significant portion of PT-FI’s costs are fixed, and unit costs vary depending on production volumes and other factors. As a result of higher sales volumes and gold and silver credits, Indonesia had unit net cash credits (including gold and silver credits) of $0.63 per pound of copper in first-quarter2018, compared with unit net cash costs of $0.80 per pound of copper in first-quarter2017.

Treatment charges vary with the volume of metals sold and the price of copper, and royalties vary with the volume of metals sold and the prices of copper and gold. PT-FI’s royalties totaled $67 million in first-quarter2018 and $19 million in first-quarter2017. Export duties totaled $46 million in first-quarter2018 and $14 million in first-quarter2017.

Because certain assets are depreciated on a straight-line basis, PT-FI’s unit depreciation rate varies with the level of copper production.

Revenue adjustments primarily result from changes in prices on provisionally priced copper sales recognized in prior periods. Refer to “Consolidated Results – Revenues” for further discussion of adjustments to prior period provisionally priced copper sales.

PT Smelting intercompany (loss) profit represents the change in the deferral of 25 percent of PT-FI’s profit on sales to PT Smelting. Refer to “Smelting & Refining” below for further discussion.

Assuming an average gold price of $1,300 per ounce for the remainder of 2018 and achievement of current sales volume and cost estimates, unit net cash credits (including gold and silver credits) for Indonesia mining are expected to approximate $0.55 per pound of copper for the year 2018. Indonesia mining’s unit net cash credits for the year 2018 would change by approximately $0.09 per pound for each $50 per ounce change in the average price of gold for the remainder of 2018. Because of the fixed nature of a large portion of Indonesia’s costs, unit net cash credits/costs vary from quarter to quarter depending on copper and gold volumes.

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Molybdenum Mines

We have two wholly owned molybdenum mines in North America – the Henderson underground mine and the Climax open-pit mine, both in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrate, which is typically further processed into value-added molybdenum chemical products. The majority of the molybdenum concentrate produced at the Henderson and Climax mines, as well as from our North America and South America copper mines, is processed at our own conversion facilities.

Operating and Development Activities. Production from the Molybdenum mines totaled 9 million pounds of molybdenum in first-quarter2018 and 8 million pounds in first-quarter2017. Refer to “Consolidated Results” for our consolidated molybdenum operating data, which includes sales of molybdenum produced at our Molybdenum mines, and from our North America and South America copper mines, and refer to “Outlook” for projected consolidated molybdenum sales volumes.

Unit Net Cash Costs Per Pound of Molybdenum. Unit net cash costs per pound of molybdenum is a measure intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for our respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. This measure is presented by other metals mining companies, although our measure may not be comparable to similarly titled measures reported by other companies.

Unit net cash costs for our Molybdenum mines averaged $8.57 per pound of molybdenum in first-quarter2018 and $7.02 per pound in first-quarter2017. Based on current sales volume and cost estimates, average unit net cash costs for the Molybdenum mines are expected to approximate $8.75 per pound of molybdenum for the year 2018. Refer to “Product Revenues and Production Costs” for a reconciliation of unit net cash costs per pound to production and delivery costs applicable to sales reported in our consolidated financial statements.

Smelting and Refining

We wholly own and operate a smelter in Arizona (Miami smelter), a refinery in Texas (El Paso refinery) and a smelter and refinery in Spain (Atlantic Copper). Additionally, PT-FI owns 25 percent of a smelter and refinery in Gresik, Indonesia (PT Smelting). Treatment charges for smelting and refining copper concentrate consist of a base rate per pound of copper and per ounce of gold and are generally fixed. Treatment charges represent a cost to our mining operations and income to Atlantic Copper and PT Smelting. Thus, higher treatment charges benefit our smelter operations and adversely affect our mining operations. Our North America copper mines are less significantly affected by changes in treatment charges because these operations are largely integrated with our Miami smelter and El Paso refinery. Through this form of downstream integration, we are assured placement of a significant portion of our concentrate production.

Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During first-quarter2018, approximately one-third of Atlantic Copper’s concentrate purchases were from our North America and South America copper mining operations, with the remainder purchased from third parties.

PT-FI’s contract with PT Smelting provides for PT-FI to supply 100 percent of the copper concentrate requirements (subject to a minimum or maximum rate) necessary for PT Smelting to produce 205,000 metric tons of copper annually on a priority basis. PT-FI may also sell copper concentrate to PT Smelting at market rates for quantities in excess of 205,000 metric tons of copper annually. During first-quarter2018, PT-FI supplied all of PT Smelting’s concentrate requirements.

We defer recognizing profits on sales from our mining operations to Atlantic Copper and on 25 percent of PT-FI’s sales to PT Smelting until final sales to third parties occur. Changes in these deferrals attributable to variability in intercompany volumes resulted in net (reductions) additions to net income attributable to common stock of $(7) million in first-quarter2018 and $27 million in first-quarter2017. Our net deferred profits on our inventories at Atlantic Copper and PT Smelting to be recognized in future periods’ net income attributable to common stock totaled $95 million at March 31, 2018. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices will result in variability in our net deferred profits and quarterly earnings.

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CAPITAL RESOURCES AND LIQUIDITY

Our consolidated operating cash flows vary with prices realized from copper, gold and molybdenum; our sales volumes; production costs; income taxes; other working capital changes; and other factors. We believe that we have a high-quality portfolio of long-lived copper assets positioned to generate long-term value. We have commenced a project to develop the Lone Star oxide ores near the Safford operation in eastern Arizona. We are also pursuing other opportunities to enhance net present values, and we continue to advance studies for future development of our copper resources, the timing of which will be dependent on market conditions.

Cash

Following is a summary of the U.S. and international components of consolidated cash and cash equivalents available to the parent company, net of noncontrolling interests’ share, taxes and other costs at March 31, 2018 (in billions):

Cash at domestic companies	$	2.5
Cash at international operations	1.2
Total consolidated cash and cash equivalents	3.7
Noncontrolling interests’ share	(0.4		)
Cash, net of noncontrolling interests’ share	3.3
Withholding taxes and other	(0.1		)
Net cash available	$	3.2

Cash held at our international operations is generally used to support our foreign operations’ capital expenditures, operating expenses, debt repayment, working capital and other tax payments, or other cash needs. Management believes that sufficient liquidity is available in the U.S. from cash balances and availability from our revolving credit facility. We have not elected to permanently reinvest earnings from our foreign subsidiaries, and we have recorded deferred tax liabilities for foreign earnings that are available to be repatriated to the U.S. From time to time, our foreign subsidiaries distribute earnings to the U.S. through dividends that are subject to applicable withholding taxes and noncontrolling interests’ share.

Debt

Following is a summary of our total debt and the related weighted-average interest rates at March 31, 2018 (in billions, except percentages):

			Weighted-
			Average
			Interest Rate
Senior Notes	$	10.4	4.7%
Cerro Verde credit facility	1.2		3.8%
Total debt	$	11.6	4.6%

At March 31, 2018, we had no borrowings, $13 million in letters of credit issued and availability of $3.5 billion under our revolving credit facility. In April 2018, we entered into a new $3.5 billion, five-year, unsecured revolving credit facility with substantially similar structure and terms as our prior facility, which was scheduled to mature in May 2019.

In April 2018, we redeemed $404 million of senior notes due 2022 and $50 million of senior notes due 2023. We expect to record a gain of $10 million in second-quarter 2018 related to these redemptions, and the aggregate annual cash interest savings approximates $30 million.

Refer to Note 5 for further discussion of debt.

Operating Activities

We generated consolidated operating cash flows of $1.4 billion (net of $21 million in working capital uses and timing of other tax payments) in first-quarter2018 and $792 million (including $189 million in working capital sources and timing of other tax payments) in first-quarter2017. Higher operating cash flows in first-quarter2018, compared to first-quarter2017, primarily reflect higher copper and gold sales volumes and higher metals prices.

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Subject to future commodity prices for copper, gold and molybdenum, we expect estimated consolidated operating cash flows for the year 2018, plus available cash and availability under our credit facility, to be sufficient to fund our budgeted capital expenditures, cash dividends, noncontrolling interest distributions and other cash requirements for the year. Refer to “Outlook” for further discussion of projected operating cash flows for the year 2018. For a discussion of regulatory matters in Indonesia that could have a significant impact on future results, refer to “Risk Factors,” contained in Part I, Item 1A. of our annual report on Form 10-K for the year ended December 31, 2017.

Investing Activities

Capital Expenditures. Capital expenditures, including capitalized interest, totaled $402 million in first-quarter2018, including $250 million for major mining projects. Capital expenditures, including capitalized interest, totaled $344 million in first-quarter2017, including $210 million for major mining projects. Refer to “Outlook” for further discussion of projected capital expenditures for the year 2018.

Financing Activities

Debt Transactions. Net repayments of debt in first-quarter2018 totaled $1.5 billion, consisting of $1.4 billion for senior notes due March 2018 and $0.1 billion for the Cerro Verde credit facility.

Net repayments of debt in first-quarter2017 totaled $0.7 billion primarily for the repayment of our senior notes due 2017 and payments on the Cerro Verde credit facility.

Dividends. In February 2018, the Board reinstated a cash dividend on our common stock. On March 28, 2018, the Board declared a quarterly cash dividend of $0.05 per share, which was paid May 1, 2018, to stockholders of record as of April 13, 2018. The declaration of dividends is at the discretion of our Board and will depend upon our financial results, cash requirements, future prospects and other factors deemed relevant by our Board.

Common stock dividends of $1 million in first-quarter2017 related to accumulated dividends paid for vested stock-based compensation.

Cash dividends paid to noncontrolling interests totaled $80 million in first-quarter2018 and $15 million in first-quarter2017. These payments will vary based on the operating results and cash requirements of our consolidated subsidiaries.

CONTRACTUAL OBLIGATIONS

There have been no material changes in our contractual obligations since December 31, 2017. Refer to Part II, Items 7. and 7A. in our annual report on Form 10-K for the year ended December 31, 2017, for information regarding our contractual obligations.

CONTINGENCIES

Environmental and Asset Retirement Obligations

Our current and historical operating activities are subject to stringent laws and regulations governing the protection of the environment. We perform a comprehensive annual review of our environmental and asset retirement obligations and also review changes in facts and circumstances associated with these obligations at least quarterly. There have been no material changes to our environmental and asset retirement obligations since December 31, 2017. Updated cost assumptions, including increases and decreases to cost estimates, changes in the anticipated scope and timing of remediation activities, and settlement of environmental matters may result in additional revisions to certain of our environmental obligations. Refer to Note 12 in our annual report on Form 10-K for the year ended December 31, 2017, for further information regarding our environmental and asset retirement obligations.

Litigation and Other Contingencies

Other than as discussed in Note 8, there have been no material changes to our contingencies associated with legal proceedings, environmental and other matters since December 31, 2017. Refer to Note 12 and “Legal Proceedings” contained in Part I, Item 3. of our annual report on Form 10-K for the year ended December 31, 2017, for further information regarding legal proceedings, environmental and other matters.

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NEW ACCOUNTING STANDARDS

Refer to Note 11 for a summary of recently adopted accounting standards.

PRODUCT REVENUES AND PRODUCTION COSTS

Unit net cash (credits) costs per pound of copper and molybdenum are measures intended to provide investors with information about the cash-generating capacity of our mining operations expressed on a basis relating to the primary metal product for the respective operations. We use this measure for the same purpose and for monitoring operating performance by our mining operations. This information differs from measures of performance determined in accordance with U.S. GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. These measures are presented by other metals mining companies, although our measures may not be comparable to similarly titled measures reported by other companies.

We present gross profit per pound of copper in the following tables using both a “by-product” method and a “co-product” method. We use the by-product method in our presentation of gross profit per pound of copper because (i) the majority of our revenues are copper revenues, (ii) we mine ore, which contains copper, gold, molybdenum and other metals, (iii) it is not possible to specifically assign all of our costs to revenues from the copper, gold, molybdenum and other metals we produce and (iv) it is the method used by our management and our Board to monitor our mining operations and to compare mining operations in certain industry publications. In the co-product method presentations, shared costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

We show revenue adjustments for prior period open sales as a separate line item. Because these adjustments do not result from current period sales, these amounts have been reflected separately from revenues on current period

sales. Noncash and other costs, which are removed from site production and delivery costs in the calculation of unit

net cash (credits) costs, consist of items such as stock-based compensation costs, start-up costs, inventory adjustments, long-lived asset impairments, restructuring and/or unusual charges. As discussed above, gold, molybdenum and other metal revenues at copper mines are reflected as credits against site production and delivery costs in the by-product method. The following schedules are presentations under both the by-product and co-product methods together with reconciliations to amounts reported in our consolidated financial statements.

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North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,209		$	1,209		$	76	$	23	$	1,308
Site production and delivery, before net noncash
and other costs shown below	705			660			55		13		728
By-product credits	(76		)	—			—		—		—
Treatment charges	37			35			—		2		37
Net cash costs	666			695			55		15		765
DD&A	94			88			4		2		94
Noncash and other costs, net	19			18			1		—		19
Total costs	779			801			60		17		878
Other revenue adjustments, primarily for pricing
on prior period open sales	(5		)	(5		)	—		—		(5		)
Gross profit	$	425		$	403		$	16	$	6	$	425
Copper sales (millions of recoverable pounds)	383			383
Molybdenum sales (millions of recoverable pounds)a							7
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	3.16		$	3.16		$	10.87
Site production and delivery, before net noncash
and other costs shown below	1.84			1.73			7.81
By-product credits	(0.20		)	—			—
Treatment charges	0.10			0.09			—
Unit net cash costs	1.74			1.82			7.81
DD&A	0.25			0.23			0.66
Noncash and other costs, net	0.05			0.05			0.09
Total unit costs	2.04			2.10			8.56
Other revenue adjustments, primarily for pricing
on prior period open sales	(0.01		)	(0.01		)	—
Gross profit per pound	$	1.11		$	1.05		$	2.31
Reconciliation to Amounts Reported
(In millions)
				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,308		$	728		$	94
Treatment charges	(8		)	29			—
Noncash and other costs, net	—			19			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(5		)	—			—
Eliminations and other	13			15			—
North America copper mines	1,308			791			94
Other miningc	4,517			3,011			336
Corporate, other & eliminations	(957		)	(994		)	21
As reported in FCX’s consolidated financial statements	$	4,868		$	2,808		$	451

a. Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Represents the combined total for our other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

51

North America Copper Mines Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2017
(In millions)	By-Product				Co-Product Method
	Method				Copper			Molybdenuma		Otherb		Total
Revenues, excluding adjustments	$	1,005			$	1,005		$	59	$	20	$	1,084
Site production and delivery, before net noncash
and other costs shown below	562				530			44		10		584
By-product credits	(57		)		—			—		—		—
Treatment charges	42				41			—		1		42
Net cash costs	547				571			44		11		626
DD&A	116				110			4		2		116
Noncash and other costs, net	33			c	32			1		—		33
Total costs	696				713			49		13		775
Other revenue adjustments, primarily for pricing
on prior period open sales	5				5			—		—		5
Gross profit	$	314			$	297		$	10	$	7	$	314
Copper sales (millions of recoverable pounds)	374				374
Molybdenum sales (millions of recoverable pounds)a								9
Gross profit per pound of copper/molybdenum:
Revenues, excluding adjustments	$	2.68			$	2.68		$	7.00
Site production and delivery, before net noncash
and other costs shown below	1.50				1.42			5.16
By-product credits	(0.15		)		—			—
Treatment charges	0.11				0.11			—
Unit net cash costs	1.46				1.53			5.16
DD&A	0.31				0.29			0.52
Noncash and other costs, net	0.09			c	0.09			0.07
Total unit costs	1.86				1.91			5.75
Other revenue adjustments, primarily for pricing
on prior period open sales	0.02				0.02			—
Gross profit per pound	$	0.84			$	0.79		$	1.25
Reconciliation to Amounts Reported
(In millions)					Production
	Revenues				and Delivery			DD&A
Totals presented above	$	1,084			$	584		$	116
Treatment charges	(9		)		33			—
Noncash and other costs, net	—				33			—
Other revenue adjustments, primarily for pricing
on prior period open sales	5				—			—
Eliminations and other	15				16			—
North America copper mines	1,095				666			116
Other miningd	3,038				2,340			244
Corporate, other & eliminations	(792		)		(818		)	29
As reported in FCX’s consolidated financial statements	$	3,341			$	2,188		$	389

a. Reflects sales of molybdenum produced by certain of the North America copper mines to our molybdenum sales company at market-based pricing.

b. Includes gold and silver product revenues and production costs.

c. Includes $19 million ($0.05 per pound of copper) for other asset impairment charges at Morenci.

d. Represents the combined total for our other mining operations, including South America mining, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

52

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2018
(In millions)		By-Product			Co-Product Method
		Method			Copper			Othera		Total
Revenues, excluding adjustments		$	894		$	894		$	85	$	979
Site production and delivery, before net noncash
and other costs shown below		517			476			52		528
By-product credits		(74		)	—			—		—
Treatment charges		59			59			—		59
Royalty on metals		2			2			—		2
Net cash costs		504			537			52		589
DD&A		126			115			11		126
Noncash and other costs, net		15			15			—		15
Total costs		645			667			63		730
Other revenue adjustments, primarily for pricing
on prior period open sales		(43		)	(43		)	—		(43		)
Gross profit		$	206		$	184		$	22	$	206
Copper sales (millions of recoverable pounds)		290			290
Gross profit per pound of copper:
Revenues, excluding adjustments		$	3.08		$	3.08
Site production and delivery, before net noncash
and other costs shown below		1.78			1.64
By-product credits		(0.25		)	—
Treatment charges		0.20			0.20
Royalty on metals		0.01			0.01
Unit net cash costs		1.74			1.85
DD&A		0.43			0.40
Noncash and other costs, net		0.05			0.05
Total unit costs		2.22			2.30
Other revenue adjustments, primarily for pricing
on prior period open sales		(0.15		)	(0.15		)
Gross profit per pound		$	0.71		$	0.63
Reconciliation to Amounts Reported
(In millions)					Production
		Revenues			and Delivery			DD&A
Totals presented above		$	979		$	528		$	126
Treatment charges		(59		)	—			—
Royalty on metals		(2		)	—			—
Noncash and other costs, net		—			15			—
Other revenue adjustments, primarily for pricing
on prior period open sales		(43		)	—			—
Eliminations and other		2			—			1
South America mining		877			543			127
Other miningb	—	4,948			3,259			303
Corporate, other & eliminations	—	(957		)	(994		)	21
As reported in FCX’s consolidated financial statements		$	4,868		$	2,808		$	451

a. Includes silver sales of 975 thousand ounces ($16.52 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b. Represents the combined total for our other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

53

South America Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2017
(In millions)	By-Product			Co-Product Method
	Method			Copper			Othera		Total
Revenues, excluding adjustments	$	821		$	821		$	68	$	889
Site production and delivery, before net noncash
and other costs shown below	457			426			43		469
By-product credits	(56		)	—			—		—
Treatment charges	68			68			—		68
Royalty on metals	2			2			—		2
Net cash costs	471			496			43		539
DD&A	133			123			10		133
Noncash and other costs, net	5			5			—		5
Total costs	609			624			53		677
Other revenue adjustments, primarily for pricing
on prior period open sales	49			49			—		49
Gross profit	$	261		$	246		$	15	$	261
Copper sales (millions of recoverable pounds)	309			309
Gross profit per pound of copper:
Revenues, excluding adjustments	$	2.66		$	2.66
Site production and delivery, before net noncash
and other costs shown below	1.48			1.38
By-product credits	(0.18		)	—
Treatment charges	0.22			0.22
Royalty on metals	0.01			0.01
Unit net cash costs	1.53			1.61
DD&A	0.43			0.40
Noncash and other costs, net	0.01			0.01
Total unit costs	1.97			2.02
Other revenue adjustments, primarily for pricing
on prior period open sales	0.16			0.16
Gross profit per pound	$	0.85		$	0.80
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	889		$	469		$	133
Treatment charges	(68		)	—			—
Royalty on metals	(2		)	—			—
Noncash and other costs, net	—			5			—
Other revenue adjustments, primarily for pricing
on prior period open sales	49			—			—
Eliminations and other	—			(1		)	—
South America mining	868			473			133
Other miningb	3,265			2,533			227
Corporate, other & eliminations	(792		)	(818		)	29
As reported in FCX’s consolidated financial statements	$	3,341		$	2,188		$	389

a. Includes silver sales of 964 thousand ounces ($16.06 per ounce average realized price). Also reflects sales of molybdenum produced by Cerro Verde to our molybdenum sales company at market-based pricing.

b. Represents the combined total for our other mining operations, including North America copper mines, Indonesia mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

54

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2018
(In millions)	By-Product			Co-Product Method
	Method			Copper			Gold			Silvera		Total
Revenues, excluding adjustments	$	976		$	976		$	791		$	19	$	1,786
Site production and delivery, before net noncash
and other costs shown below	433			237			192			4		433
Gold and silver credits	(826		)	—			—			—		—
Treatment charges	78			43			34			1		78
Export duties	46			25			21			—		46
Royalty on metals	67			36			30			1		67
Net cash (credits) costs	(202		)	341			277			6		624
DD&A	181			99			80			2		181
Noncash and other costs, net	15			8			6			1		15
Total (credits) costs	(6		)	448			363			9		820
Other revenue adjustments, primarily for pricing
on prior period open sales	(38		)	(38		)	16			—		(22		)
PT Smelting intercompany loss	(9		)	(5		)	(4		)	—		(9		)
Gross profit	$	935		$	485		$	440		$	10	$	935
Copper sales (millions of recoverable pounds)	319			319
Gold sales (thousands of recoverable ounces)							603
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	3.06		$	3.06		$	1,312
Site production and delivery, before net noncash
and other costs shown below	1.36			0.75			319
Gold and silver credits	(2.59		)	—			—
Treatment charges	0.25			0.13			57
Export duties	0.14			0.08			34
Royalty on metals	0.21			0.11			49
Unit net cash (credits) costs	(0.63		)	1.07			459
DD&A	0.57			0.31			133
Noncash and other costs, net	0.04			0.02			11
Total unit (credits) costs	(0.02		)	1.40			603
Other revenue adjustments, primarily for pricing
on prior period open sales	(0.12		)	(0.12		)	27
PT Smelting intercompany loss	(0.03		)	(0.02		)	(7		)
Gross profit per pound/ounce	$	2.93		$	1.52		$	729
Reconciliation to Amounts Reported
(In millions)				Production
	Revenues			and Delivery			DD&A
Totals presented above	$	1,786		$	433		$	181
Treatment charges	(78		)	—			—
Export duties	(46		)	—			—
Royalty on metals	(67		)	—			—
Noncash and other costs, net	—			15			—
Other revenue adjustments, primarily for pricing
on prior period open sales	(22		)	—			—
PT Smelting intercompany loss	—			9			—
Indonesia mining	1,573			457			181
Other miningb	4,252			3,345			249
Corporate, other & eliminations	(957		)	(994		)	21
As reported in FCX’s consolidated financial statements	$	4,868		$	2,808		$	451

a. Includes silver sales of 1.2 million ounces ($15.76 per ounce average realized price).

b. Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

55

Indonesia Mining Product Revenues, Production Costs and Unit Net Cash Costs

Three Months Ended March 31, 2017
(In millions)	By-Product				Co-Product Method
	Method				Copper			Gold		Silvera		Total
Revenues, excluding adjustments	$	327			$	327		$	218	$	7	$	552
Site production and delivery, before net noncash
and other costs shown below	265				157			104		4		265
Gold and silver credits	(234		)		—			—		—		—
Treatment charges	35				21			14		—		35
Export duties	14				8			6		—		14
Royalty on metals	19				11			8		—		19
Net cash costs	99				197			132		4		333
DD&A	83				49			33		1		83
Noncash and other costs, net	32			b	19			13		—		32
Total costs	214				265			178		5		448
Other revenue adjustments, primarily for pricing
on prior period open sales	41				41			9		—		50
PT Smelting intercompany profit	27				16			11		—		27
Gross profit	$	181			$	119		$	60	$	2	$	181
Copper sales (millions of recoverable pounds)	125				125
Gold sales (thousands of recoverable ounces)								177
Gross profit per pound of copper/per ounce of gold:
Revenues, excluding adjustments	$	2.63			$	2.63		$	1,229
Site production and delivery, before net noncash
and other costs shown below	2.13				1.26			589
Gold and silver credits	(1.88		)		—			—
Treatment charges	0.28				0.17			77
Export duties	0.11				0.07			31
Royalty on metals	0.16				0.09			45
Unit net cash costs	0.80				1.59			742
DD&A	0.66				0.39			184
Noncash and other costs, net	0.26			b	0.15			72
Total unit costs	1.72				2.13			998
Other revenue adjustments, primarily for pricing
on prior period open sales	0.33				0.33			51
PT Smelting intercompany profit	0.21				0.13			59
Gross profit per pound/ounce	$	1.45			$	0.96		$	341
Reconciliation to Amounts Reported
(In millions)					Production
	Revenues				and Delivery			DD&A
Totals presented above	$	552			$	265		$	83
Treatment charges	(35		)		—			—
Export duties	(14		)		—			—
Royalty on metals	(19		)		—			—
Noncash and other costs, net	—				32			—
Other revenue adjustments, primarily for pricing
on prior period open sales	50				—			—
PT Smelting intercompany profit	—				(27		)	—
Indonesia mining	534				270			83
Other miningc	3,599				2,736			277
Corporate, other & eliminations	(792		)		(818		)	29
As reported in FCX’s consolidated financial statements	$	3,341			$	2,188		$	389

a. Includes silver sales of 404 thousand ounces ($17.37 per ounce average realized price).

b. Includes $21 million ($0.17 per pound of copper) of costs charged directly to cost of sales as a result of the impact of regulatory restrictions on PT-FI's concentrate exports.

c.Represents the combined total for our other mining operations, including North America copper mines, South America mining, Molybdenum mines, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9.

56

Molybdenum Mines Product Revenues, Production Costs and Unit Net Cash Costs

	Three Months Ended March 31,
(In millions)	2018			2017
Revenues, excluding adjustmentsa	$	102		$	70
Site production and delivery, before net noncash  and other costs shown below	65			51
Treatment charges and other	7			7
Net cash costs	72			58
DD&A	19			19
Noncash and other costs, net	2			1
Total costs	93			78
Gross profit (loss)	$	9		$	(8	)
Molybdenum sales (millions of recoverable pounds)a	9			8
Gross profit (loss) per pound of molybdenum:
Revenues, excluding adjustmentsa	$	11.99		$	8.57
Site production and delivery, before net noncash  and other costs shown below	7.71			6.17
Treatment charges and other	0.86			0.85
Unit net cash costs	8.57			7.02
DD&A	2.24			2.37
Noncash and other costs, net	0.15			0.15
Total unit costs	10.96			9.54
Gross profit (loss) per pound	$	1.03		$	(0.97	)
Reconciliation to Amounts Reported
(In millions)
				Production
Three Months Ended March 31, 2018	Revenues			and Delivery			DD&A
Totals presented above	$	102		$	65		$	19
Treatment charges and other	(7		)	—			—
Noncash and other costs, net	—			2			—
Molybdenum mines	95			67			19
Other miningb	5,730			3,735			411
Corporate, other & eliminations	(957		)	(994		)	21
As reported in FCX’s consolidated financial statements	$	4,868		$	2,808		$	451
Three Months Ended March 31, 2017
Totals presented above	$	70		$	51		$	19
Treatment charges and other	(7		)	—			—
Noncash and other costs, net	—			1			—
Molybdenum mines	63			52			19
Other miningb	4,070			2,954			341
Corporate, other & eliminations	(792		)	(818		)	29
As reported in FCX’s consolidated financial statements	$	3,341		$	2,188		$	389

a. Reflects sales of the Molybdenum mines’ production to our molybdenum sales company at market-based pricing. On a consolidated basis, realizations are based on the actual contract terms for sales to third parties; as a result, our consolidated average realized price per pound of molybdenum will differ from the amounts reported in this table.

b. Represents the combined total for our other mining operations, including North America copper mines, South America mining, Indonesia mining, Rod & Refining and Atlantic Copper Smelting & Refining, as presented in Note 9. Also includes amounts associated with our 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.

57

CAUTIONARY STATEMENT

Our discussion and analysis contains forward-looking statements in which we discuss our potential future performance. Forward-looking statements are all statements other than statements of historical facts, such as projections or expectations relating to ore grades and milling rates, production and sales volumes, unit net cash costs, operating cash flows, capital expenditures, exploration efforts and results, development and production activities and costs, liquidity, tax rates, the impact of copper, gold and molybdenum price changes, the impact of deferred intercompany profits on earnings, reserve estimates, future dividend payments, and share purchases and sales. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements. The declaration of dividends is at the discretion of the Board and will depend on our financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.

We caution readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause our actual results to differ materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, copper, gold and molybdenum; mine sequencing; production rates; potential inventory adjustments; potential impairment of long-lived mining assets; the outcome of negotiations with the Indonesian government regarding PT-FI’s long-term mining rights; the potential effects of violence in Indonesia generally and in the province of Papua; industry risks; regulatory changes; political risks; labor relations; weather- and climate-related risks; environmental risks (including resolution of the administrative sanctions and other environmental matters pending before Indonesia's Ministry of Environment and Forestry); litigation results (including the final disposition of Indonesian tax disputes and the outcome of Cerro Verde’s royalty dispute with the Peruvian national tax authority); and other factors described in more detail in Part I, Item 1A. “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2017, filed with the SEC. With respect to our operations in Indonesia, such factors include whether PT-FI will be able to resolve complex regulatory matters in Indonesia by June 30, 2018, or obtain an extension of its temporary IUPK after June 30, 2018.

Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after the forward-looking statements are made, including for example commodity prices, which we cannot control, and production volumes and costs, some aspects of which we may not be able to control. Further, we may make changes to our business plans that could affect our results. We caution investors that we do not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in our assumptions, changes in business plans, actual experience or other changes, and we undertake no obligation to update any forward-looking statements.

58

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in our market risks during the three-month period ended March 31, 2018. For additional information on market risks, refer to “Disclosures About Market Risks” included in Part II, Items 7. and 7A. of our annual report on Form 10-K for the year ended December 31, 2017. For projected sensitivities of our operating cash flow to changes in commodity prices, refer to “Outlook” in Part I, Item 2. of this quarterly report on Form 10-Q for the period ended March 31, 2018; for projected sensitivities of our provisionally priced copper sales to changes in commodity prices refer to “Consolidated Results – Revenues” in Part I, Item 2. of this quarterly report on Form 10-Q for the period ended March 31, 2018.

Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. Our chief executive officer and chief financial officer, with the participation of management, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report on Form 10-Q. Based on their evaluation, they have concluded that our disclosure controls and procedures are effective as of March 31, 2018.

(b) Changes in internal control over financial reporting. There has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2018, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.

We are involved in numerous legal proceedings that arise in the ordinary course of our business or that are associated with environmental issues arising from legacy operations conducted over the years by Freeport Minerals Corporation and its affiliates. We are also involved from time to time in other reviews, investigations and proceedings by government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief.

Management does not believe, based on currently available information, that the outcome of any proceeding reported in Note 8 of this quarterly report on Form 10-Q for the period ended March 31, 2018, and in Part I, Item 3. “Legal Proceedings” and Note 12 of our annual report on Form 10-K for the year ended December 31, 2017, will have a material adverse effect on our financial condition; although individual outcomes could be material to our operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period.

Environmental Proceedings

Louisiana Parishes Coastal Erosion Cases

Certain FCX affiliates have been named as defendants, along with numerous co-defendants, in 13 cases out of a total of 42 cases filed in Louisiana state courts by six south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Vermilion), alleging that certain oil and gas exploration and production operations and sulphur mining and production operations in coastal Louisiana have contaminated and damaged coastal wetlands, and caused significant land loss along the Louisiana coast, resulting in increased risk of damage from storm-generated surges and flooding and accelerated saltwater intrusion.  The State of Louisiana, through the Attorney General and separately through the Louisiana Department of Natural Resources, has intervened in the litigation. Specifically, the cases allege the defendants failed to obtain and/or comply with required coastal use permits in violation of the Louisiana State and Local Coastal Resources Management Act of 1978, and seek unspecified damages for the alleged statutory violations, and restoration of the properties at issue to their original condition. Five of the 42 cases have recently been scheduled for trials beginning in early 2019. Certain FCX affiliates have been named as defendants in two of those cases, both originally filed on November 8, 2013: Parish of Plaquemines v. ConocoPhillips Company et al, 25th Judicial District Court, Plaquemines Parish, Louisiana; No. 60-982, Div. B, which is set for jury trial in August 2019; and Parish of Plaquemines v. Hilcorp Energy Company et al, 25th Judicial District Court, Plaquemines Parish, Louisiana; No. 60-999, Div. B, which is set for jury trial in January 2020. Plaintiffs have not yet alleged specific monetary demands. FCX does not currently believe that a loss is probable and intends to vigorously defend these matters.

59

Item 1A. Risk Factors.

There have been no material changes to our risk factors previously disclosed in Part I, Item 1A. “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the three months ended March 31, 2018.

There were no shares of common stock purchased by us during the three months ended March 31, 2018. On July 21, 2008, our Board of Directors approved an increase in our open-market share purchase program for up to 30 million shares. There have been no purchases under this program since 2008. This program does not have an expiration date. At March 31, 2018, there were 23.7 million shares that could still be purchased under the program.

Item 4. Mine Safety Disclosures.

The safety and health of all employees is our highest priority. Management believes that safety and health considerations are integral to, and compatible with, all other functions in the organization and that proper safety and health management will enhance production and reduce costs. Our approach towards the safety and health of our workforce is to continuously improve performance through implementing robust management systems and providing adequate training, safety incentive and occupational health programs. The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95.1 to this quarterly report on Form 10-Q.

60

Item 6. Exhibits.

		Filed
Exhibit		with this	Incorporated by Reference
Number	Exhibit Title	Form 10-Q	Form	File No.	Date Filed
3.1	Amended and Restated Certificate of Incorporation of FCX, effective as of June 8, 2016.		8-K	001-11307-01	6/9/2016
3.2	Amended and Restated By-Laws of FCX, effective as of June 8, 2016.		8-K	001-11307-01	6/9/2016
4.1	Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).		8-K	001-11307-01	2/13/2012
4.2	Third Supplemental Indenture dated as of February 13, 2012, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022).		8-K	001-11307-01	2/13/2012
4.3	Fourth Supplemental Indenture dated as of May 31, 2013, among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 3.55% Senior Notes due 2022, the 4.00% Senior Notes due 2021, the 4.55% Senior Notes due 2024, and the 5.40% Senior Notes due 2034).		8-K	001-11307-01	6/3/2013
4.4	Sixth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 4.00% Senior Notes due 2021).		8-K	001-11307-01	11/14/2014
4.5	Seventh Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as (relating to the 4.55% Senior Notes due 2024).		8-K	001-11307-01	11/14/2014
4.6	Eighth Supplemental Indenture dated as of November 14, 2014 among FCX, Freeport-McMoRan Oil & Gas LLC and U.S. Bank National Association, as Trustee (relating to the 5.40% Senior Notes due 2034).		8-K	001-11307-01	11/14/2014
4.7	Indenture dated as of March 7, 2013, between FCX and U.S. Bank National Association, as Trustee (relating to the 3.100% Senior Notes due 2020, the 3.875% Senior Notes due 2023, and the 5.450% Senior Notes due 2043).		8-K	001-11307-01	3/7/2013
4.8	Form of Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).		S-3	333-36415	9/25/1997
4.9	Form of 7.125% Debenture due November 1, 2027 of Phelps Dodge Corporation issued on November 5, 1997, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and The Chase Manhattan Bank, as Trustee (relating to the 7.125% Senior Notes due 2027).		8-K	01-00082	11/3/1997
4.10	Form of 9.5% Note due June 1, 2031 of Phelps Dodge Corporation issued on May 30, 2001, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 9.50% Senior Notes due 2031).		8-K	01-00082	5/30/2001

61

		Filed
Exhibit		with this	Incorporated by Reference
Number	Exhibit Title	Form 10-Q	Form	File No.	Date Filed
4.11	Form of 6.125% Note due March 15, 2034 of Phelps Dodge Corporation issued on March 4, 2004, pursuant to the Indenture dated as of September 22, 1997, between Phelps Dodge Corporation and First Union National Bank, as successor Trustee (relating to the 6.125% Senior Notes due 2034).		10-K	01-00082	3/7/2005
4.12	Supplemental Indenture dated as of April 4, 2007 to the Indenture dated as of September 22, 1997, among Phelps Dodge Corporation, as Issuer, Freeport-McMoRan Copper & Gold Inc., as Parent Guarantor, and U.S. Bank National Association, as Trustee (relating to the 7.125% Senior Notes due 2027, the 9.50% Senior Notes due 2031, and the 6.125% Senior Notes due 2034).		10-K	001-11307-01	2/26/2016
4.13	Indenture dated as of December 13, 2016, among FCX, Freeport-McMoRan Oil & Gas LLC, as guarantor, and U.S. Bank National Association, as Trustee (relating to the 6.875% Senior Notes due 2023).		8-K	001-11307-01	12/13/2016
10.1	Revolving Credit Agreement dated as of April 20, 2018, among FCX, PT Freeport Indonesia, Freeport-McMoRan Oil  & Gas LLC, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto.		8-K	001-11307-01	4/23/2018
15.1	Letter from Ernst & Young LLP regarding unaudited interim financial statements.	X
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d – 14(a).	X
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d – 14(a).	X
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350.	X
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350.	X
95.1	Mine Safety and Health Administration Safety Data.	X
101.INS	XBRL Instance Document.	X
101.SCH	XBRL Taxonomy Extension Schema.	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase.	X
101.LAB	XBRL Taxonomy Extension Label Linkbase.	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.	X

Note: Certain instruments with respect to long-term debt of FCX have not been filed as exhibits to this Quarterly Report on Form 10-Q since the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of FCX and its subsidiaries on a consolidated basis. FCX agrees to furnish a copy of each such instrument upon request of the Securities and Exchange Commission.

62

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Freeport-McMoRan Inc.
By:	/s/ C. Donald Whitmire, Jr.
	C. Donald Whitmire, Jr.
	Vice President and
	Controller - Financial Reporting
	(authorized signatory
	and Principal Accounting Officer)

Date:  May 4, 2018

S-1

EX-15.1

Exhibit 15.1

To the Board of Directors and Stockholders of Freeport-McMoRan Inc.:

We are aware of the incorporation by reference in the following Registration Statements:

1) Registration Statement (Form S-8 No. 333-85803) pertaining to the Freeport-McMoRan Copper & Gold Inc.

1999 Stock Incentive Plan,

2) Registration Statement (Form S-8 No. 333-105535) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan,

3) Registration Statement (Form S-8 No. 333-115292) pertaining to the Freeport-McMoRan Copper & Gold Inc. 2004 Director Compensation Plan,

4) Registration Statement (Form S-8 No. 333-136084) pertaining to the  Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,

5) Registration Statement (Form S-8 No. 333-141358) pertaining to the Phelps Dodge 2003 Stock Option and Restricted Stock Plan and the Phelps Dodge 1998 Stock Option and Restricted Stock Plan,

6) Registration Statement (Form S-8 No. 333-147413) pertaining to the Amended and Restated Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan,

7) Registration Statement (Form S-8 No. 333-189047) pertaining to the Plains Exploration & Production Company 2010 Incentive Award Plan; the Plains Exploration & Production 2004 Stock Incentive Plan; the McMoRan Exploration Co. Amended and Restated 2008 Stock Incentive Plan; the McMoRan Exploration Co. 2005 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2004 Director Compensation Plan, as amended and restated; the McMoRan Exploration Co. 2003 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2001 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 2000 Stock Incentive Plan, as amended and restated; the McMoRan Exploration Co. 1998 Stock Option Plan, as amended and restated; and the McMoRan Exploration Co. 1998 Stock Option Plan for Non-Employee Directors, as amended and restated,

8) Registration Statement (Form S-3 No. 333-206257) pertaining to the Freeport-McMoRan Inc. 2015 Automatic Shelf Registration Statement,

9) Registration Statement (Form S-8 No. 333-212523) pertaining to the Freeport-McMoRan Inc. 2016 Stock Incentive Plan, and

10) Registration Statement (Form S-4 No. 333-217817) pertaining to the Freeport-McMoRan Inc. 2017 Exchange Offer;

of our report dated May 4, 2018 relating to the unaudited consolidated interim financial statements of Freeport-McMoRan Inc. that is included in its Form 10-Q for the quarter ended March 31, 2018.

/s/ ERNST & YOUNG LLP

Phoenix, Arizona

May 4, 2018

EX-31.1

Exhibit 31.1

Certification

I, Richard C. Adkerson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 4, 2018

/s/ Richard C. Adkerson

Richard C. Adkerson

Vice Chairman,

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Kathleen L. Quirk, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Freeport-McMoRan Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 4, 2018

/s/ Kathleen L. Quirk

Kathleen L. Quirk

Executive Vice President,

Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350

(Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report on Form 10-Q of Freeport-McMoRan Inc. (the “Company”) for the quarter ending March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Richard C. Adkerson, as Vice Chairman, President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 4, 2018

/s/ Richard C. Adkerson

Richard C. Adkerson

Vice Chairman,

President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification shall not be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350

(Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report on Form 10-Q of Freeport-McMoRan Inc. (the “Company”) for the quarter ending March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Kathleen L. Quirk, as Executive Vice President, Chief Financial Officer and Treasurer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 4, 2018

 /s/ Kathleen L. Quirk

Kathleen L. Quirk

Executive Vice President,

Chief Financial Officer and Treasurer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This certification shall not be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

EX-95.1

Exhibit 95.1

Mine Safety and Health Administration (MSHA) Safety Data

FCX's U.S. mining operations are subject to regulations issued by MSHA under the U.S. Federal Mine Safety and Health Act of 1977 (the Mine Act). MSHA inspects our U.S. mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments varies depending on the size and type (underground or surface) of the mine, among other factors.

The following disclosures have been provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act).

Mine Safety Data. Following provides additional information about references used in the following table to describe the categories of violations, orders or citations issued by MSHA under the Mine Act:

• Section 104 S&S Citations: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

• Section 104(b) Orders: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.

• Section 104(d) Citations and Orders: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).

• Section 110(b)(2) Violations: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”

• Section 107(a) Orders: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.

The following table details the violations, citations and orders issued to us by MSHA during the three months ended March 31, 2018:

										Potential
										to Have
									Pattern of	Pattern of
				Section					Violations	Violation
		Section	Section	104(d)	Section	Section		Mining	Under	Under
		104 S&S	104(b)	Citations	110(b)(2)	107(a)	Proposed	Related	Section	Section
		Citations	Orders	and Orders	Violations	Orders	Assessments(2)	Fatalities	104(e)	104(e)
Mine ID(1)	Mine or Operation Name	(#)	(#)	(#)	(#)	(#)	($)	(#)	(yes/no)	(yes/no)
0200137	Freeport-McMoRan Bagdad Inc. (Bagdad)	6	—	—	—	—	35,021	—	No	No
2900708	Freeport-McMoRan Chino Mines Company (Chino)	1	—	—	—	—	5,114	—	No	No
0200112	Freeport-McMoRan Miami Inc (Miami)	1	—	—	—	—	—	—	No	No
0200024	Freeport-McMoRan Morenci Inc (Morenci)	21	—	—	—	—	181,520	—	No	No
0203131	Freeport-McMoRan Safford Inc (Safford)	—	—	—	—	—	—	—	No	No
0200144	Freeport-McMoRan Sierrita Inc (Sierrita)	35	—	—	—	—	143,558	—	No	No
2900159	Tyrone Mine (Tyrone)	5	—	—	—	—	858	—	No	No
0500790	Henderson Operations (Henderson)	—	—	—	—	—	236	—	No	No
0502256	Climax Mine (Climax)	—	—	—	—	—	—	—	No	No
	Freeport-McMoRan Cobre Mining Company:
2900725	Open Pit & Continental Surf Comp	—	—	—	—	—	—	—	No	No
2900731	Continental Mill Complex	—	—	—	—	—	—	—	No	No
0201656	Copper Queen Branch	—	—	—	—	—	—	—	No	No
0202579	Cyprus Tohono Corporation	—	—	—	—	—	—	—	No	No
0203262	Twin Buttes Mine	—	—	—	—	—	—	—	No	No
2902395	Chieftain 2100 Screening Plant	—	—	—	—	—	—	—	No	No
0203254	Warrior 1800 Screening Plant	—	—	—	—	—	—	—	No	No

(1) MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities.

(2) Amounts represent the total dollar value of proposed assessments received on or before April 30, 2018, for citations or orders issued by MSHA during the quarter ended March 31, 2018. FCX is currently contesting approximately $30 thousand of these proposed assessments.

Pending Legal Actions. The following table provides a summary of legal actions pending before the Federal Mine Safety and Health Review Commission (the Commission) as of March 31, 2018, as well as the aggregate number of legal actions instituted and resolved during the first quarter of 2018. The Commission is an independent adjudicative agency established by the Mine Act that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act.

The following provides additional information of the types of proceedings that may be brought before the Commission:

• Contest Proceedings - A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.

• Civil Penalty Proceedings - A civil penalty proceeding may be filed by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. FCX does not institute civil penalty proceedings based solely on the assessment amount of proposed penalties. Any initiated adjudications described in the table below address substantive matters of law and policy instituted on conditions that are alleged to be in violation of mandatory standards or the Mine Act.

• Discrimination Proceedings - Involves a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.

• Compensation Proceedings - A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.

• Temporary Relief - Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.

• Appeals - An appeal may be filed by an operator to challenge judges decisions or orders to the commission, including petitions for discretionary review and review by the commission on its own motion.

	Legal Actions Pending at March 31, 2018
	Contest	Civil Penalty	Discrimination	Compensation	Temporary			Legal Actions	Legal Actions
	Proceedings	Proceedings	Proceedings	Proceedings	Relief	Appeals	Total	Instituted(2)	Resolved(3)
Mine ID(1)	(#)	(#)	(#)	(#)	(#)	(#)	(#)	(#)	(#)
0200137	—	—	—	—	—	—	—	—	—
2900708	—	—	—	—	—	—	—	—	—
0200112	—	—	—	—	—	—	—	—	—
0200024	2	1	—	—	—	—	3	—	1
0203131	—	—	—	—	—	—	—	—	—
0200144	—	5	—	—	—	—	5	1	3
2900159	—	—	—	—	—	—	—	—	—
0500790	—	—	—	—	—	—	—	—	—
0502256	—	—	—	—	—	—	—	—	—
2900725	—	—	—	—	—	—	—	—	—
2900731	—	—	—	—	—	—	—	—	—
0201656	—	—	—	—	—	—	—	—	—
0202579	—	—	—	—	—	—	—	—	—
0203262	—	—	—	—	—	—	—	—	—
2902395	—	—	—	—	—	—	—	—	—
0203254	—	—	—	—	—	—	—	—	—

(1) MSHA assigns an identification number to each mine or operation and may or may not assign separate identification numbers to related facilities. Refer to "Mine Safety Data" table for related mine or operation name.

(2) Legal actions pending at March 31, 2018, and legal actions instituted during the year are based on the date that a docket number was assigned to the proceeding.

(3) Legal actions resolved during the year are based on the date that the settlement motion resolving disputed matters is filed with the Commission, and the matter is effectively closed by MSHA.

XML

Document and Entity Information Document - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	FREEPORT-MCMORAN INC
Entity Central Index Key	0000831259
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 15.5
Entity Common Stock, Shares Outstanding		1,448,794,207
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,702	$ 4,447
Trade accounts receivable	1,222	1,246
Income and other tax receivables	222	325
Inventories:
Total materials and supplies, net	1,335	1,305
Mill and leach stockpiles	1,448	1,422
Product	1,102	1,166
Other current assets	367	270
Assets held for sale	708	598
Total current assets	10,106	10,779
Property, plant, equipment and mine development costs, net	22,792	22,844
Long-term mill and leach stockpiles	1,387	1,409
Other assets	2,352	2,270
Total assets	36,637	37,302
Current liabilities:
Accounts payable and accrued liabilities	2,209	2,321
Accrued income taxes	749	565
Current portion of debt	483	1,414
Current portion of environmental and asset retirement obligations	396	388
Dividends Payable, Current	72	0
Liabilities held for sale	435	350
Total current liabilities	4,344	5,038
Long-term debt, less current portion	11,123	11,703
Deferred income taxes	3,642	3,622
Environmental and asset retirement obligations, less current portion	3,630	3,631
Other liabilities	1,972	2,012
Total liabilities	24,711	26,006
Stockholders’ equity:
Common stock	158	158
Capital in excess of par value	26,729	26,751
Accumulated deficit	(14,030)	(14,722)
Accumulated other comprehensive loss	(475)	(487)
Common stock held in treasury	(3,726)	(3,723)
Total stockholders’ equity	8,656	7,977
Noncontrolling interests	3,270	3,319
Total equity	11,926	11,296
Total liabilities and equity	$ 36,637	$ 37,302

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Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenues	$ 4,868	$ 3,341
Cost of sales:
Production and delivery	2,808	2,188
Depreciation, depletion and amortization	451	389
Total cost of sales	3,259	2,577
Selling, general and administrative expenses	131	151
Mining exploration and research expenses	21	14
Environmental obligations and shutdown costs	9	25
Net gain on sales of assets	(11)	(23)
Total costs and expenses	3,409	2,744
Operating income	1,459	597
Interest expense, net	(151)	(167)
Other income, net	28	8
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	1,336	438
Provision for income taxes	(506)	(174)
Equity in affiliated companies’ net (losses) earnings	(2)	4
Net income from continuing operations	828	268
Net (loss) income from discontinued operations	(11)	38
Net income (loss)	817	306
Net income attributable to noncontrolling interests:
Continuing operations	(125)	(75)
Discontinued operations	0	(3)
Net income attributable to common stockholders	$ 692	$ 228
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$ 0.48	$ 0.13
Discontinued operations	(0.01)	0.03
Basic and diluted net income (loss) per share attributable to common stockholders:	$ 0.47	$ 0.16
Basic	1,449	1,446
Diluted	1,458	1,454
Dividends declared per share of common stock	$ 0.05	$ 0

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 817	$ 306
Other comprehensive (loss) income, net of taxes:
Unrealized gains on securities	0	1
Defined benefit plans:
Amortization of unrecognized amounts included in net periodic benefit costs	12	11
Foreign exchange losses	(1)	(1)
Other comprehensive income	11	11
Total comprehensive income	828	317
Total comprehensive income attributable to noncontrolling interests	(124)	(78)
Total comprehensive income (loss)	$ 704	$ 239

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flow from operating activities:
Net income	$ 817	$ 306
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	451	389
Net gain on sales of assets	(11)	(23)
Share-based Compensation	49	34
Payments for Cerro Verde royalty dispute	10	11
Net charges for environmental and asset retirement obligations, including accretion	53	71
Payments for environmental and asset retirement obligations	38	33
Pension and Other Postretirement Benefits Expense (Reversal of Expense), Noncash	18	33
Payment for Pension and Other Postretirement Benefits	(24)	(30)
Deferred income taxes	22	20
Gain on disposal of discontinued operations	(11)	32
Decrease (increase) in long term mill and leach stockpiles	22	8
Oil and gas contract settlement payments	0	70
Other, net	30	(59)
Changes in working capital and other tax payments:
Accounts receivable	136	623
Inventories	(142)	(135)
Other current assets	(42)	(13)
Accounts payable and accrued liabilities	(96)	(433)
Accrued income taxes and timing of other tax payments	123	147
Net cash provided by operating activities	1,369	792
Cash flow from investing activities:
Capital expenditures	402	344
Intangible water rights and other, net	(90)	(17)
Net cash used in investing activities	(492)	(361)
Cash flow from financing activities:
Proceeds from debt	122	157
Repayments of debt	(1,633)	(815)
Cash dividends paid:
Common stock	0	(1)
Noncontrolling interests	(80)	(15)
Stock-based awards net proceeds (payments)	3	(5)
Net cash used in financing activities	(1,588)	(679)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(711)	(248)
Decrease in cash and cash equivalents in assets held for sale	32	8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	3,952	4,163
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	3,702
North America Copper Mines Segment [Member]
Cash flow from investing activities:
Capital expenditures	92	28
South America Mines Segment [Member]
Cash flow from investing activities:
Capital expenditures	67	15
Grasberg Segment [Member]
Cash flow from investing activities:
Capital expenditures	203	244
Molybdenum [Member]
Cash flow from investing activities:
Capital expenditures	1	1
Other Segments [Member]
Cash flow from investing activities:
Capital expenditures	$ 39	$ 56

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Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Accumulated Deficit	Accumulated Other Comprehensive Loss	Common Stock Held in Treasury	Total Stockholder's Equity	Noncontrolling Interests
Balance (in shares) at Dec. 31, 2017		1,578				130
Balance at Dec. 31, 2017	$ 11,296	$ 158	$ 26,751	$ (14,722)	$ (487)	$ (3,723)	$ 7,977	$ 3,319
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised and issued stock-based awards (in shares)		1				0
Exercised and issued stock-based awards	6	$ 0	6	0	0	$ 0	6	0
Stock-based compensation, including the tender of shares	41	0	44	0	0	$ (3)	41	0
Stock-based compensation, including the tender of shares (in shares)						0
Dividends	(245)	$ 0	(72)		0	$ 0	(72)	173
Tender of shares for stock based awards shares		0				0
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net			0		0
Net income attributable to common stockholders	692	$ 0		692		$ 0	692	0
Net income attributable to noncontrolling interests	(125)	0				0	0	(125)
Noncontrolling Interest, Change in Redemption Value			0	0	0
Other comprehensive income	11	$ 0	0		12	$ 0	12	(1)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	828			0
Balance (in shares) at Mar. 31, 2018		1,579				130
Balance at Mar. 31, 2018	$ 11,926	$ 158	$ 26,729	$ (14,030)	$ (475)	$ (3,726)	$ 8,656	$ 3,270

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General Information (Unaudited)

3 Months Ended

Mar. 31, 2018

General Information [Abstract]

General Information

GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2017. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. With the exception of the accounting for discontinued operations and assets held for sale, all such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month period ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ending December 31, 2018.

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Earnings per Share (Unaudited) Earnings per Share (Notes)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive. Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow (in millions, except per share amounts):

	Three Months Ended
	March 31,
	2018				2017
Net income from continuing operations	$	828			$	268
Net income from continuing operations attributable to noncontrolling interests	(125		)		(75		)
Undistributed earnings allocated to participating securities	(4		)		(3		)
Net income from continuing operations attributable to common stockholders	$	699			$	190
Net (loss) income from discontinued operations	$	(11	)		$	38
Net income from discontinued operations attributable to noncontrolling interests	—				(3		)
Net (loss) income from discontinued operations attributable to common stockholders	$	(11	)		$	35
Net income attributable to common stockholders	$	688			$	225
Basic weighted-average shares of common stock outstanding	1,449				1,446
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units	9			a	8
Diluted weighted-average shares of common stock outstanding	1,458				1,454
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.48			$	0.13
Discontinued operations	(0.01		)		0.03
	$	0.47			$	0.16

a. Excludes approximately 4 million shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. Stock options for 33 million shares of common stock were excluded for first-quarter2018 and 44 million for first-quarter2017.

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Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited)

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Inventories, Including Long-Term Mill and Leach Stockpiles

INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):

	March 31, 2018		December 31, 2017
Current inventories:
Total materials and supplies, neta	$	1,335	$	1,305
Mill stockpiles	$	330	$	360
Leach stockpiles	1,118		1,062
Total current mill and leach stockpiles	$	1,448	$	1,422
Raw materials (primarily concentrate)	$	284	$	265
Work-in-process	138		154
Finished goods	680		747
Total product inventories	$	1,102	$	1,166
Long-term inventories:
Mill stockpiles	$	308	$	300
Leach stockpiles	1,079		1,109
Total long-term mill and leach stockpiles	$	1,387	$	1,409

a. Materials and supplies inventory was net of obsolescence reserves totaling $25 million at March 31, 2018, and $29 million at December 31, 2017.

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Income Taxes (Unaudited)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate. FCX’s consolidated effective income tax rate was 38 percent for first-quarter2018 and 40 percent for first-quarter2017. Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
U.S. operations	$	3		$	(7	)
International operations	(509		)	(167		)
Total	$	(506	)	$	(174	)

The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017, and includes significant modifications to existing U.S. tax laws and creates many new complex tax provisions. As of December 31, 2017, FCX recorded provisional impacts of the tax effects related to specific provisions and continues to evaluate other provisions of the Act. During the three months ended March 31, 2018, no adjustments were made to the provisional amounts recorded at December 31, 2017, as FCX has not fully completed its analysis of the Act. During the remainder of 2018, FCX will continue to refine its calculations as it gains a more thorough understanding of the Act.

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Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt

NOTE 5. DEBT AND EQUITY

The components of debt follow (in millions):

	March 31, 2018			December 31, 2017
Senior notes and debentures:
Issued by FCX	$	10,020		$	11,429
Issued by Freeport Minerals Corporation	358			358
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)	54			54
Cerro Verde credit facility	1,170			1,269
Other	4			7
Total debta	11,606			13,117
Less current portion of debt	(483		)	(1,414		)
Long-term debt	$	11,123		$	11,703

a. Includes additions for unamortized fair value adjustments totaling $93 million at March 31, 2018 ($97 million at December 31, 2017), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $81 million at March 31, 2018 ($85 million at December 31, 2017).

Revolving Credit Facility. At March 31, 2018, there were no borrowings outstanding and $13 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.

In April 2018, FCX, PT Freeport Indonesia (PT-FI) and FM O&G LLC entered into a new $3.5 billion, five-year, unsecured revolving credit facility, which replaced FCX’s prior revolving credit facility (scheduled to mature on May 31, 2019). The new revolving credit facility is available until April 20, 2023, with $500 million available to PT-FI, and has substantially similar structure and terms as the prior revolving credit facility. Interest on loans made under the new revolving credit facility will, at the option of FCX, be determined based on the adjusted London Interbank Offered rate or the alternate base rate (each as defined in the new revolving credit facility) plus a spread to be determined by reference to FCX’s credit ratings. The new revolving credit facility contains customary affirmative covenants and representations, and also contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX's subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX's or its subsidiaries’ ability to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s new revolving credit facility also contains financial ratios governing maximum total leverage and the minimum interest expense coverage ratio. FCX’s total leverage ratio (ratio of total debt to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), as defined in the credit agreement) cannot exceed 3.75x, and the minimum interest expense coverage ratio (ratio of consolidated EBITDA to consolidated cash interest expense, as defined in the credit agreement) is 2.25x.

Senior Notes.  In March 2018, FCX’s 2.375% Senior Notes matured, and the $1.4 billion outstanding principal balance was repaid.

On April 4, 2018, FCX redeemed $454 million of aggregate principal amount of outstanding senior notes, consisting of $404 million of FCX 6.75% Senior Notes due 2022 and $50 million of FM O&G LLC 6⁷/₈% Senior Notes due 2023. Holders of these senior notes received the principal amount together with the redemption premium and accrued and unpaid interest up to the redemption date. As a result of these redemptions, FCX will record a gain on early extinguishment of debt of $10 million in second-quarter 2018.

Cerro Verde Credit Facility. In March 2018, Cerro Verde prepaid $100 million under its credit facility.

Interest Expense, Net. Consolidated interest costs (before capitalized interest) totaled $176 million in first-quarter2018 and $195 million in first-quarter2017. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $25 million in first-quarter2018 and $28 million in first-quarter2017.

Common Stock.  In February 2018, FCX’s Board of Directors (the Board) reinstated a cash dividend on FCX’s common stock. On March 28, 2018, the Board declared a quarterly cash dividend of $0.05 per share, which was paid on May 1, 2018, to common stockholders of record as of April 13, 2018.

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Financial Instruments (Notes)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As of March 31, 2018, and December 31, 2017, FCX had no price protection contracts relating to its mine production. A discussion of FCX’s derivative contracts and programs follows.

Derivatives Designated as Hedging Instruments – Fair Value Hedges

Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the three-month periods ended March 31, 2018 and 2017. At March 31, 2018, FCX held copper futures and swap contracts that qualified for hedge accounting for 57 million pounds at an average contract price of $3.10 per pound, with maturities through September 2019.

A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized (losses) gains on the related hedged item follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(15	)	$	(2	)
Hedged item – firm sales commitments	15			2
Realized gains:
Matured derivative financial instruments	2			8

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. Certain FCX concentrate and cathode contracts are provisionally priced at the time of shipment. The provisional prices are finalized in a specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the London Metal Exchange (LME) or COMEX and the London Bullion Market Association (London) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations until the date of settlement. Similarly, FCX purchases copper and cobalt under contracts that provide for provisional pricing. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host sales agreements since the contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain an embedded derivative (i.e., the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrate or cathode at the then-current metal price as defined in the contract. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at March 31, 2018, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	518	$	3.13	$	3.04	August 2018
Gold (thousands of ounces)	311	1,325		1,327		July 2018
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	104	3.13		3.04		July 2018
Cobalt (millions of pounds)a	8	30.19		33.88		June 2018

a. Relates to assets held for sale. 

Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At March 31, 2018, Atlantic Copper held net copper forward sales contracts for 3 million pounds at an average contract price of $3.09 per pound, with maturities through May 2018.

Summary of (Losses) Gains. A summary of the realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Embedded derivatives in provisional sales contracts:a
Copper	$	(135	)	$	107
Gold and other metals	18			19
Copper forward contractsb	2			(1		)

a. Amounts recorded in revenues. 

b. Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

	March 31, 2018		December 31, 2017
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	2	$	11
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	11		155
Copper forward contracts	—		1
Total derivative assets	$	13	$	167
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	5	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	48		31
Copper forward contracts	—		2
Total derivative liabilities	$	53	$	33

FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by counterparty on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	11	$	155	$	48	$	31
Copper derivatives	2		12		5		2
	13		167		53		33
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	1		—		1		—
Copper derivatives	—		1		—		1
	1		1		1		1
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	10		155		47		31
Copper derivatives	2		11		5		1
	$	12	$	166	$	52	$	32
Balance sheet classification:
Trade accounts receivable	$	—	$	151	$	41	$	—
Other current assets	2		11		—		—
Accounts payable and accrued liabilities	10		4		11		32
	$	12	$	166	$	52	$	32

The table above excludes $30 million of embedded derivatives in provisional cobalt purchase contracts at March 31, 2018, and $24 million at December 31, 2017, which are reflected in liabilities held for sale.

Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of March 31, 2018, the maximum amount of credit exposure associated with derivative transactions was $11 million.

Other Financial Instruments. Other financial instruments include cash and cash equivalents, accounts receivable, restricted cash, restricted cash equivalents, investment securities, legally restricted funds, accounts payable and accrued liabilities, and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $2.8 billion at March 31, 2018, and $2.9 billion at December 31, 2017), accounts receivable, restricted cash, restricted cash equivalents, and accounts payable and accrued liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of March 31, 2018, FCX has contingent consideration assets related to certain 2016 asset sales (refer to Note 7 for the related fair values and to Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, for further discussion of these instruments).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows to the components presented in the consolidated balance sheets (in millions):

	March 31, 2018		December 31, 2017
Balance sheet components:
Cash and cash equivalents	$	3,702	$	4,447
Restricted cash and restricted cash equivalents included in:
Other current assets	123		52
Other assets	127		132
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	3,952	$	4,631

FCX’s restricted cash and restricted cash equivalents are primarily related to PT-FI’s commitment for smelter development in Indonesia; guarantees and commitments for certain mine closure and reclamation obligations, and customs duty taxes; and funds held as cash collateral for surety bonds related to plugging and abandonment obligations of certain oil and gas properties. Restricted cash and restricted cash equivalents are classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. Restricted cash and restricted cash equivalents are comprised of time deposits and money market funds.

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FAIR VALUE MEASUREMENT (Notes)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for first-quarter2018.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, accounts receivable, restricted cash, restricted cash equivalents, and accounts payable and accrued liabilities (refer to Note 6) follows (in millions):

	At March 31, 2018
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	54		54		54		—		—		—
Government bonds and notes	42		42		—		—		42		—
Corporate bonds	29		29		—		—		29		—
Government mortgage-backed securities	25		25		—		—		25		—
Asset-backed securities	13		13		—		—		13		—
Money market funds	8		8		—		8		—		—
Collateralized mortgage-backed securities	7		7		—		—		7		—
Municipal bonds	1		1		—		—		1		—
Total	179		179		54		8		117		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	11		11		—		—		11		—
Copper futures and swap contractsc	2		2		—		1		1		—
Contingent consideration for the sales of
TF Holdings Limited (TFHL) and onshore
California oil and gas propertiesa	110		110		—		—		110		—
Total	123		123		—		1		122		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		132		—		—		—		132
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	48	$	48	$	—	$	—	$	48	$	—
Copper futures and swap contracts	5		5		—		4		1		—
Total	53		53		—		4		49		—
Long-term debt, including current portione	11,606		11,406		—		—		11,406		—

	At December 31, 2017
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	55		55		55		—		—		—
Government bonds and notes	40		40		—		—		40		—
Corporate bonds	32		32		—		—		32		—
Government mortgage-backed securities	27		27		—		—		27		—
Asset-backed securities	15		15		—		—		15		—
Money market funds	11		11		—		11		—		—
Collateralized mortgage-backed securities	8		8		—		—		8		—
Municipal bonds	1		1		—		—		1		—
Total	189		189		55		11		123		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	155		155		—		—		155		—
Copper futures and swap contractsc	11		11		—		9		2		—
Copper forward contractsc	1		1		—		—		1		—
Contingent consideration for the sales of TFHL
and onshore California oil and gas propertiesa	108		108		—		—		108		—
Total	275		275		—		9		266		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		134		—		—		—		134
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	31	$	31	$	—	$	—	$	31	$	—
Copper forward contracts	2		2		—		1		1		—
Total	33		33		—		1		32		—
Long-term debt, including current portione	13,117		13,269		—		—		13,269		—

a. Current portion included in other current assets and long-term portion included in other assets.

b. Excludes time deposits (which approximated fair value) included in (i) other current assets of $123 million at March 31, 2018, and $52 million at December 31, 2017, primarily associated with PT-FI’s mine closure and reclamation guarantees and its disputed incremental export duty and (ii) other assets of $125 million at March 31, 2018, and $123 millionatDecember 31, 2017, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.

c. Refer to Note 6 for further discussion and balance sheet classifications.

d. Excludes embedded derivatives in provisional cobalt purchase contracts of $30 million at March 31, 2018, and $24 million at December 31, 2017 (refer to Note 6 for further discussion).

e. Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. In addition, debt excludes $112 million at March 31, 2018, and December 31, 2017, related to assets held for sale (which approximated fair value).

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity (refer to Note 6 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s embedded derivatives on provisional cobalt purchases, included in assets held for sale, are valued using quoted monthly LME cobalt forward prices or average published Metals Bulletin cobalt prices, subject to certain adjustments as specified by the terms of the contracts, at each reporting date based on the month of maturity (Level 2).

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 6 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

As reported in Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, in November 2016, FCX’s sale of its interest in TFHL included contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during calendar years 2018 and 2019. Also in 2016, FCX Oil & Gas LLC’s (FM O&G) sale of its onshore California oil and gas properties included contingent consideration of up to $150 million, consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. Future changes in the fair value of the contingent consideration derivative for the sale of TFHL will continue to be recorded in discontinued operations and for the onshore California oil and gas properties will continue to be recorded in operating income. The fair value of the contingent consideration derivative was (i) $65 million at March 31, 2018, and $74 million at December 31, 2017, associated with the sale of TFHL and (ii) $45 million at March 31, 2018, and $34 million at December 31, 2017, associated with the sale of the onshore California oil and gas properties. The contingent consideration derivative was included in other assets in the consolidated balance sheets except for $18 million included in other current assets at March 31, 2018. These fair values were calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy.

As reported in Note 2 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, in December 2016, FM O&G’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration will be received over time as future cash flows are realized in connection with a third-party production handling agreement for an offshore platform. The contingent consideration included in (i) other current assets totaled $21 million at March 31, 2018, and $24 million at December 31, 2017, and (ii) other assets totaled $129 million at March 31, 2018, and $126 million at December 31, 2017. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at March 31, 2018, as compared to those techniques used at December 31, 2017.

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first three months of2018 follows (in millions):

Fair value at January 1, 2018	$	134
Net unrealized loss related to assets still held at the end of the period	(2		)
Fair value at March 31, 2018	$	132

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Contingencies and Commitments (Unaudited)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

CONTINGENCIES AND COMMITMENTS

Litigation

During first-quarter2018, there were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, other than the matter below.

On April 1, 2016, a purported class action titled David Garcia v. Freeport-McMoRan Oil & Gas LLC was filed in the Superior Court of the State of California for the County of Santa Barbara (Case No. 16CV01305) against FM O&G LLC, an indirect wholly owned subsidiary of FCX. A former FM O&G LLC employee filed the case, which alleges violations of various California employment laws and seeks relief for past wages, overtime, penalties, interest and attorney’s fees. The primary issue underlying the claims is whether compensation must be paid to non-exempt shift workers on platforms located offshore California on the outer-continental shelf for sleep time and other non-working time. In June 2016, FM O&G LLC removed the case to the U.S. District Court for the Central District of California, Santa Barbara (the District Court). In September 2016, the court dismissed the complaint on the grounds that all four FM O&G LLC platforms potentially involved are located in federal waters, that federal law, not state law, applies, and that federal law does not require an employer to compensate for non-work time. In October 2016, the plaintiff appealed the dismissal to the U.S. Court of Appeals for the Ninth Circuit. In June 2017, the Ninth Circuit stayed the Garcia case pending its decision in another case involving essentially the same legal issues, titled Newton v. Parker Drilling Management Services, Ltd. In February 2018, a three-judge panel of the Ninth Circuit ruled in favor of the plaintiffs in the Newton case. Because that decision conflicts with longstanding precedent in the Fifth Circuit and could set a precedent that will result in a reversal of the dismissal in the Garcia case, FM O&G LLC and others filed amicus briefs in April 2018 in support of Parker Drilling’s petition for an en banc rehearing in the Newton case. The Ninth Circuit denied that request on April 27, 2018, but modified its original opinion noting that the question of whether the Ninth Circuit’s holding should be applied retrospectively is reserved for the District Court’s consideration on remand.

The amount of the exposure in Garciais uncertain because FM O&G LLC has potential defenses to the claims even if state law would be applied; however, absent success on those defenses, FCX estimates that the exposure could be in the range of approximately $50 million to $80 million if California wage and hour law is applied retroactively to FM O&G LLC’s operations offshore California. FCX has not established a reserve for this contingency because it believes that its legal position is correct and does not believe a loss is probable. FCX intends to vigorously defend this matter.

Tax and Other Matters

Cerro Verde Royalty Dispute and Other Peru Tax Matters

During first-quarter2018, there were no significant changes to the Cerro Verde royalty dispute and other Peru tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017.

Indonesia Tax Matters

The following information includes a discussion of updates to previously reported Indonesia tax matters included in Note 12 of FCX’s annual report on Form 10-K for the year ended December 31, 2017.

PT-FI received assessments from the local regional tax authority in Papua, Indonesia, for additional taxes and penalties related to surface water taxes for the period from January 2011 through March 2018. PT-FI has filed or will file appeals of these assessments with the Indonesia Tax Court. During first-quarter 2018, the Indonesia Tax Court ruled partially in favor of PT-FI with respect to assessments for the period January 2016 through April 2016 by reducing these assessments to $13 million, including penalties (based on the exchange rate at March 31, 2018), or an approximate 40 percent reduction. Hearings in the Indonesia Tax Court are currently underway related to assessments for the period from May 2016 through April 2017.

During 2017, PT-FI filed petitions to the Indonesia Supreme Court with respect to assessments for the period from January 2011 through December 2015. In April 2018, the Indonesia Supreme Court posted on its website summaries of favorable decisions relating to surface water tax assessments for the period January 2011 through July 2015. PT-FI began receiving the official written decisions on April 18, 2018. The Supreme Court ruling concluded that PT-FI and the Indonesian government are bound by PT-FI’s Contract of Work (COW), which is lex specialis, and prevails as the law for the parties to the COW that should be carried out in good faith. The Supreme Court decisions for the period January 2011 through July 2015 reduce the total remaining exposure for the period from August 2015 through March 2018 to $161 million, including $81 million in penalties. As of March 31, 2018, no charges have been recorded for any assessments because PT-FI believes its COW exempts it from these payments. As of May 4, 2018, PT-FI has not paid and does not intend to pay these assessments.

Indonesia Mining Contract. The following is the latest information related to PT-FI’s COW (refer to Note 13 of FCX’s annual report on Form 10-K for the year ended December 31, 2017, for further discussion).

In August 2017, FCX and the Indonesian government reached an understanding on a framework that would replace the COW while providing PT-FI with long-term mining rights. This framework includes (i) conversion from the COW to a special license (IUPK) providing PT-FI with long-term mining rights through 2041; (ii) Indonesian government certainty of fiscal and legal terms during the term of the IUPK; (iii) PT-FI commitment to construct a new smelter in Indonesia within five years of reaching a definitive agreement; and (iv) divestment of 51 percent of the project area interests to Indonesian participants at fair market value, structured so that FCX retains control over operations and governance of PT-FI. Execution of a definitive agreement will require approval by the Board and PT-FI’s joint venture partner, Rio Tinto, as well as the modification or revocation of current regulations and the implementation of new regulations by the Indonesian government. FCX cannot currently predict whether there will be any material accounting and tax impacts associated with the divestment.

In late 2017, the Indonesian government (including the regional government of Papua Province and Mimika Regency) and PT Indonesia Asahan Aluminium (Inalum), a state-owned enterprise, which leads the Indonesian government’s consortium of investors, formed a special purpose company to acquire Grasberg project area interests. Inalum is wholly owned by the Indonesian government and currently holds 9.36 percent of PT-FI’s outstanding common stock. FCX continues to engage with Inalum and Rio Tinto on potential arrangements that would result in the Inalum consortium acquiring interests that would meet the Indonesian government’s 51 percent ownership objective in a manner satisfactory to all parties, and in a structure that would provide for continuity of FCX’s management of PT-FI’s operations and governance of the business. The parties continue to negotiate documentation on a comprehensive agreement for PT-FI’s extended operations and to reach agreement on timing, process and governance matters relating to the divestment. The parties have a mutual objective of completing negotiations and the required documentation as soon as possible.

In October 2017, Indonesia’s Ministry of Environment and Forestry (the Ministry) notified PT-FI of administrative sanctions related to certain activities the Ministry indicated are not reflected in PT-FI’s environmental permit. The Ministry also notified PT-FI that certain operational activities were inconsistent with factors set forth in PT-FI’s environmental permitting studies and that additional monitoring and improvements need to be undertaken related to air quality, water drainage, treatment and handling of certain wastes, and tailings management. PT-FI has been engaged in a process to update its permits through submissions and dialogue with the Ministry that began in late 2014, and PT-FI believes that it has submitted the required documentation to update such permits. In April 2018, the Ministry issued decrees imposing unattainable environmental standards related to PT-FI’s controlled riverine tailings management system. The decrees include a six-month transition period and conflict with PT-FI’s approved environmental management programs and existing environmental permits. PT-FI is engaged in discussions with the Ministry regarding these actions, which PT-FI believes are contrary to the Indonesian government’s obligations under PT-FI’s COW. Resolution of these matters is a requirement for concluding a comprehensive agreement for PT-FI’s extended operations.

In December 2017, the Indonesian government extended PT-FI’s temporary IUPK to June 30, 2018, to enable normal operations to continue during the negotiation period. In February 2018, PT-FI’s export license was extended to February 15, 2019. On February 28, 2018, PT Smelting (PT-FI’s 25-percent-owned smelter and refinery in Indonesia) received an extension of its anode slimes export license through February 26, 2019.

Until a definitive agreement is reached, PT-FI has reserved all rights under its COW, including dispute resolution procedures. FCX cannot predict whether PT-FI will be successful in reaching a satisfactory agreement on the terms of its long-term mining rights. If PT-FI is unable to reach a definitive agreement with the Indonesian government on its long-term mining rights, FCX intends to reduce or defer investments significantly in its underground development projects and will pursue dispute resolution procedures under the COW.

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BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Business Segment

BUSINESS SEGMENTS

FCX has organized its 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. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.

Intersegment sales between FCX’s business segments are based on terms similar to 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.

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, 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.

Product Revenues. FCX’s revenues attributable to the products it produced for the first quarters of 2018 and 2017 follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper:
Concentrate	$	1,647		$	981
Cathode	1,423			1,041
Rod and other refined copper products	670			624
Gold	808			268
Molybdenum	286			209
Othera	398			231
Adjustments to revenue:
Treatment charges	(132		)	(103		)
Royalty expenseb	(69		)	(22		)
Export dutiesc	(46		)	(14		)
Revenue from contracts with customers	4,985			3,215
Embedded derivativesd	(117		)	126
Total consolidated revenues	$	4,868		$	3,341

a. Primarily includes revenues associated with cobalt, silver, oil, gas and natural gas liquids.

b. Reflects royalties for sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and the prices of copper and gold.

c. Reflects export duties paid by PT-FI.

d. Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Financial Information by Business Segment

(In millions)
																					Atlantic		Corporate,
	North America Copper Mines						South America Mining														Copper		Other
							Cerro						Indonesia			Molybdenum			Rod &		Smelting		& Elimi-				FCX
	Morenci		Other		Total		Verde		Other		Total		Mining			Mines			Refining		& Refining		nationsa				Total
Three Months Ended March 31, 2018
Revenues:
Unaffiliated customers	$	3	$	15	$	18	$	625	$	150	$	775	$	1,521	b	$	—		$	1,385	$	577	$	592		c	$	4,868
Intersegment	601		689		1,290		102		—		102		52			95			8		2		(1,549		)		—
Production and delivery	290		501		791		427		116		543		457			67			1,388		556		(994		)		2,808
Depreciation, depletion and amortization	46		48		94		105		22		127		181			19			2		7		21				451
Selling, general and administrative expenses	1		2		3		2		—		2		39			—			—		6		81				131
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		20				21
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		9				9
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(11		)		(11		)
Operating income (loss)	267		152		419		193		12		205		896			9			3		10		(83		)		1,459
Interest expense, net	1		—		1		17		—		17		—			—			—		5		128				151
Provision for income taxes	—		—		—		68		4		72		401			—			—		1		32				506
Total assets at March 31, 2018	2,817		4,340		7,157		8,740		1,715		10,455		10,992			1,836			290		809		5,098			d	36,637
Capital expenditures	47		45		92		63		4		67		203			1			1		4		34				402
Three Months Ended March 31, 2017
Revenues:
Unaffiliated customers	$	66	$	50	$	116	$	640	$	112	$	752	$	534	b	$	—		$	1,107	$	458	$	374		c	$	3,341
Intersegment	416		563		979		116		—		116		—			63			8		—		(1,166		)		—
Production and delivery	257		409		666		391		82		473		270			52			1,109		436		(818		)		2,188			e
Depreciation, depletion and amortization	47		69		116		112		21		133		83			19			2		7		29				389
Selling, general and administrative expenses	—		1		1		2		—		2		30			—			—		5		113				151
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		13				14
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		25				25
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(23		)		(23		)
Operating income (loss)	178		133		311		251		9		260		151			(8		)	4		10		(131		)		597
Interest expense, net	1		—		1		16		—		16		—			—			—		4		146				167
Provision for income taxes	—		—		—		98		3		101		67			—			—		1		5				174
Total assets at March 31, 2017	2,814		4,361		7,175		9,081		1,525		10,606		10,418			1,917			261		652		5,547			d	36,576
Capital expenditures	23		5		28		14		1		15		244			1			1		8		47				344

a. Includes U.S. oil and gas operations.

b. Includes PT-FI’s sales to PT Smelting totaling $628 million in first-quarter2018 and $258 million in first-quarter2017.

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 America and South America copper mines.

d. Includes assets held for sale totaling $708 million at March 31, 2018, and $408 million at March 31, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project.

e. Includes a decrease of $12 million for the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 11 for further discussion).

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Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Notes)

3 Months Ended

Mar. 31, 2018

Guarantor Financial Statements [Abstract]

Guarantor Financial Statements [Text Block]

GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under FCX’s revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC’s future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC’s subsidiaries. The indentures provide that FM O&G LLC’s guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolving credit facility or any other senior debt or, in each case, any refinancing thereof.

The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at March 31, 2018, and December 31, 2017, and the related condensed consolidating statements of comprehensive income (loss), and the condensed consolidating statements of cash flows for the three months ended March 31, 2018 and 2017 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2018

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	544		$	714		$	10,012	$	(1,164	)	$	10,106
Property, plant, equipment and mine development costs, net	14			7			22,780		(9		)	22,792
Investments in consolidated subsidiaries	18,668			—			—		(18,668		)	—
Other assets	561			34			3,255		(111		)	3,739
Total assets	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637
LIABILITIES AND EQUITY
Current liabilities	$	621		$	117		$	4,831	$	(1,225	)	$	4,344
Long-term debt, less current portion	9,594			6,574			5,013		(10,058		)	11,123
Deferred income taxes	745		a	—			2,897		—			3,642
Environmental and asset retirement obligations, less current portion	—			203			3,427		—			3,630
Investments in consolidated subsidiaries	—			860			10,338		(11,198		)	—
Other liabilities	171			3,339			1,948		(3,486		)	1,972
Total liabilities	11,131			11,093			28,454		(25,967		)	24,711
Equity:
Stockholders’ equity	8,656			(10,338		)	4,901		5,437			8,656
Noncontrolling interests	—			—			2,692		578			3,270
Total equity	8,656			(10,338		)	7,593		6,015			11,926
Total liabilities and equity	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637

a. All U.S.-related deferred income taxes are recorded at the parent company.

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	75		$	671		$	10,823	$	(790	)	$	10,779
Property, plant, equipment and mine development costs, net	14			11			22,829		(10		)	22,844
Investments in consolidated subsidiaries	19,570			—			—		(19,570		)	—
Other assets	943			48			3,179		(491		)	3,679
Total assets	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302
LIABILITIES AND EQUITY
Current liabilities	$	1,683		$	220		$	4,073	$	(938	)	$	5,038
Long-term debt, less current portion	10,021			6,512			5,440		(10,270		)	11,703
Deferred income taxes	748		a	—			2,874		—			3,622
Environmental and asset retirement obligations, less current portion	—			201			3,430		—			3,631
Investments in consolidated subsidiary	—			853			10,397		(11,250		)	—
Other liabilities	173			3,340			1,987		(3,488		)	2,012
Total liabilities	12,625			11,126			28,201		(25,946		)	26,006
Equity:
Stockholders’ equity	7,977			(10,396		)	5,916		4,480			7,977
Noncontrolling interests	—			—			2,714		605			3,319
Total equity	7,977			(10,396		)	8,630		5,085			11,296
Total liabilities and equity	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302

a. All U.S.-related deferred income taxes are recorded at the parent company.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	15		$	4,853		$	—		$	4,868
Total costs and expenses	9			8			3,393			(1		)	3,409
Operating (loss) income	(9		)	7			1,460			1			1,459
Interest expense, net	(104		)	(64		)	(85		)	102			(151		)
Other income (expense), net	101			—			29			(102		)	28
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(12		)	(57		)	1,404			1			1,336
(Provision for) benefit from income taxes	(83		)	12			(435		)	—			(506		)
Equity in affiliated companies’ net earnings (losses)	787			(6		)	(34		)	(749		)	(2		)
Net income (loss) from continuing operations	692			(51		)	935			(748		)	828
Net loss from discontinued operations	—			—			(11		)	—			(11		)
Net income (loss)	692			(51		)	924			(748		)	817
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(71		)	(54		)	(125		)
Net income (loss) attributable to common stockholders	$	692		$	(51	)	$	853		$	(802	)	$	692
Other comprehensive income (loss)	12			—			12			(12		)	12
Total comprehensive income (loss)	$	704		$	(51	)	$	865		$	(814	)	$	704

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	13		$	3,328		$	—		$	3,341
Total costs and expenses	8			50			2,684			2			2,744
Operating (loss) income	(8		)	(37		)	644			(2		)	597
Interest expense, net	(122		)	(53		)	(71		)	79			(167		)
Other income (expense), net	78			—			9			(79		)	8
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(52		)	(90		)	582			(2		)	438
(Provision for) benefit from income taxes	(60		)	31			(146		)	1			(174		)
Equity in affiliated companies’ net earnings (losses)	340			20			(36		)	(320		)	4
Net income (loss) from continuing operations	228			(39		)	400			(321		)	268
Net income from discontinued operations	—			—			38			—			38
Net income (loss)	228			(39		)	438			(321		)	306
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(65		)	(10		)	(75		)
Discontinued operations	—			—			(3		)	—			(3		)
Net income (loss) attributable to common stockholders	$	228		$	(39	)	$	370		$	(331	)	$	228
Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	239		$	(39	)	$	381		$	(342	)	$	239

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(156	)	$	(70	)	$	1,595		$	—		$	1,369
Cash flow from investing activities:
Capital expenditures	—			—			(402		)	—			(402		)
Intercompany loans	(184		)	—			—			184			—
Dividends from (investments in) consolidated subsidiaries	1,746			—			23			(1,769		)	—
Asset sales and other, net	—			—			(90		)	—			(90		)
Net cash provided by (used in) investing activities	1,562			—			(469		)	(1,585		)	(492		)
Cash flow from financing activities:
Proceeds from debt	—			—			122			—			122
Repayments of debt	(1,409		)	—			(224		)	—			(1,633		)
Intercompany loans	—			62			122			(184		)	—
Cash dividends paid and contributions received, net	—			—			(1,835		)	1,755			(80		)
Other, net	3			—			(14		)	14			3
Net cash (used in) provided by financing activities	(1,406		)	62			(1,829		)	1,585			(1,588		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(8		)	(703		)	—			(711		)
Decrease in cash and cash equivalents in assets held for sale	—			—			32			—			32
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			8			4,623			—			4,631
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	—		$	3,952		$	—		$	3,952

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(112	)	$	(200	)	$	1,104		$	—		$	792
Cash flow from investing activities:
Capital expenditures	—			(10		)	(334		)	—			(344		)
Intercompany loans	(277		)	—			—			277			—
Dividends from (investments in) consolidated subsidiaries	894			—			26			(920		)	—
Asset sales and other, net	—			(23		)	6			—			(17		)
Net cash provided by (used in) investing activities	617			(33		)	(302		)	(643		)	(361		)
Cash flow from financing activities:
Proceeds from debt	—			—			157			—			157
Repayments of debt	(499		)	—			(316		)	—			(815		)
Intercompany loans	—			236			41			(277		)	—
Cash dividends paid and contributions received, net	(1		)	—			(895		)	880			(16		)
Other, net	(5		)	(6		)	(34		)	40			(5		)
Net cash (used in) provided by financing activities	(505		)	230			(1,047		)	643			(679		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(3		)	(245		)	—			(248		)
Decrease in cash and cash equivalents in assets held for sale	—			—			8			—			8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			11			4,392			—			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	8		$	4,155		$	—		$	4,163

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New Accounting Standard (Unaudited)

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NEW ACCOUNTING STANDARDS

Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) related to revenue recognition. FCX adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations (refer to Note 1 of FCX’s annual report on Form 10-K for disclosure of FCX’s revenue recognition policy). In connection with the adoption of the standard and consistent with FCX’s policy prior to adoption of the standard, FCX has elected to account for shipping and handling activities performed after control of goods has been transferred to a customer as a fulfillment cost recorded in production and delivery costs on the consolidated statements of income.

FCX recognizes revenue for all of its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 6 for further discussion). For provisionally priced sales, 90 percent to 100 percent of the provisional payment is made upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the LME or COMEX and the London gold price. FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Refer to Note 9 for a summary of revenue by product type.

Financial Instruments. In January 2016, FASB issued an ASU that amends the guidance on the classification and measurement of financial instruments. This ASU makes limited changes to prior guidance and amends certain disclosure requirements. FCX adopted this ASU effective January 1, 2018, and adoption did not have a material impact on its financial statements.

Statement of Cash Flows: Restricted Cash. In November 2016, FASB issued an ASU that changes the classification and presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The ASU requires that a statement of cash flows include the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. FCX adopted this ASU effective January 1, 2018, and adjusted its consolidated statement of cash flows for the three months ended March 31, 2017, to include restricted cash and restricted cash equivalents with cash and cash equivalents. The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported			Impact of Adoption		Current Presentation
Other, net included in cash flow from investing activities	$	(21	)	$	4	$	(17	)
Cash flow from investing activities	(365		)	4		(361		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	(252		)	4		(248		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,245			158		4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	4,001			162		4,163

Net Periodic Pension and Postretirement Benefit Cost. In March 2017, FASB issued an ASU that changes how entities with defined benefit pension or other postretirement benefit plans present net periodic benefit cost in the income statement. This ASU requires the service cost component of net periodic benefit cost to be presented in the same income statement line item or items as other compensation costs for those employees who are receiving the benefit. In addition, only the service cost component is eligible for capitalization when applicable (i.e., as a cost of inventory or an internally constructed asset). The other components of net periodic benefit cost are required to be presented separately from the service cost component and outside of operating income. These other components of net periodic benefit cost are not eligible for capitalization, and FCX elected to include these other components in other income, net. FCX adopted this ASU effective January 1, 2018, and adjusted its presentation in the consolidated statement of income for the three months ended March 31, 2017, to conform with the new guidance. The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported		Impact of Adoption			Current Presentation
Production and delivery	$	2,200	$	(12	)	$	2,188
Total cost of sales	2,589		(12		)	2,577
Selling, general and administrative expenses	153		(2		)	151
Mining exploration and research expenses	15		(1		)	14
Environmental obligations and shutdown costs	27		(2		)	25
Total costs and expenses	2,761		(17		)	2,744
Operating income	580		17			597
Other income, net	25		(17		)	8

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Subsequent Events (Unaudited)

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

FCX evaluated events after March 31, 2018, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.

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New Accounting Standard (Unaudited) (Policies)

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition. In May 2014, the Financial Accounting Standards Board (FASB) issued a new Accounting Standards Update (ASU) related to revenue recognition. FCX adopted this standard effective January 1, 2018, under the modified retrospective approach applied to contracts that remain in force at the adoption date. The adoption of this standard did not result in any financial statement impacts or changes to FCX’s revenue recognition policies or processes as revenue is primarily derived from arrangements in which the transfer of control coincides with the fulfillment of performance obligations (refer to Note 1 of FCX’s annual report on Form 10-K for disclosure of FCX’s revenue recognition policy). In connection with the adoption of the standard and consistent with FCX’s policy prior to adoption of the standard, FCX has elected to account for shipping and handling activities performed after control of goods has been transferred to a customer as a fulfillment cost recorded in production and delivery costs on the consolidated statements of income.

FCX recognizes revenue for all of its products upon transfer of control in an amount that reflects the consideration it expects to receive in exchange for those products. Transfer of control is in accordance with the terms of customer contracts, which is generally upon shipment or delivery of the product. While payment terms vary by contract, terms generally include payment to be made within 30 days, but not longer than 60 days. Certain of FCX’s concentrate and cathode sales contracts also provide for provisional pricing, which is accounted for as an embedded derivative (refer to Note 6 for further discussion). For provisionally priced sales, 90 percent to 100 percent of the provisional payment is made upon shipment or within 20 days, and final balances are settled in a contractually specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the LME or COMEX and the London gold price. FCX’s product revenues are also recorded net of treatment charges, royalties and export duties. Refer to Note 9 for a summary of revenue by product type.

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Earnings per Share (Unaudited) Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Reconciliation of net income (loss) and weighted-average shares of common stock outstanding

Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow (in millions, except per share amounts):

	Three Months Ended
	March 31,
	2018				2017
Net income from continuing operations	$	828			$	268
Net income from continuing operations attributable to noncontrolling interests	(125		)		(75		)
Undistributed earnings allocated to participating securities	(4		)		(3		)
Net income from continuing operations attributable to common stockholders	$	699			$	190
Net (loss) income from discontinued operations	$	(11	)		$	38
Net income from discontinued operations attributable to noncontrolling interests	—				(3		)
Net (loss) income from discontinued operations attributable to common stockholders	$	(11	)		$	35
Net income attributable to common stockholders	$	688			$	225
Basic weighted-average shares of common stock outstanding	1,449				1,446
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units	9			a	8
Diluted weighted-average shares of common stock outstanding	1,458				1,454
Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.48			$	0.13
Discontinued operations	(0.01		)		0.03
	$	0.47			$	0.16

a. Excludes approximately 4 million shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.

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Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventory [Table Text Block]

The components of inventories follow (in millions):

	March 31, 2018		December 31, 2017
Current inventories:
Total materials and supplies, neta	$	1,335	$	1,305
Mill stockpiles	$	330	$	360
Leach stockpiles	1,118		1,062
Total current mill and leach stockpiles	$	1,448	$	1,422
Raw materials (primarily concentrate)	$	284	$	265
Work-in-process	138		154
Finished goods	680		747
Total product inventories	$	1,102	$	1,166
Long-term inventories:
Mill stockpiles	$	308	$	300
Leach stockpiles	1,079		1,109
Total long-term mill and leach stockpiles	$	1,387	$	1,409

a. Materials and supplies inventory was net of obsolescence reserves totaling $25 million at March 31, 2018, and $29 million at December 31, 2017.

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Income Taxes (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income before income taxes and equity in an affiliated companies' net earnings

Geographic sources of FCX’s (provision for) benefit from income taxes follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
U.S. operations	$	3		$	(7	)
International operations	(509		)	(167		)
Total	$	(506	)	$	(174	)

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Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Instrument, Redemption [Line Items]

Schedule of Debt [Table Text Block]

DEBT AND EQUITY

The components of debt follow (in millions):

	March 31, 2018			December 31, 2017
Senior notes and debentures:
Issued by FCX	$	10,020		$	11,429
Issued by Freeport Minerals Corporation	358			358
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)	54			54
Cerro Verde credit facility	1,170			1,269
Other	4			7
Total debta	11,606			13,117
Less current portion of debt	(483		)	(1,414		)
Long-term debt	$	11,123		$	11,703

a. Includes additions for unamortized fair value adjustments totaling $93 million at March 31, 2018 ($97 million at December 31, 2017), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $81 million at March 31, 2018 ($85 million at December 31, 2017).

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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item

A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized (losses) gains on the related hedged item follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(15	)	$	(2	)
Hedged item – firm sales commitments	15			2
Realized gains:
Matured derivative financial instruments	2			8

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at March 31, 2018, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	518	$	3.13	$	3.04	August 2018
Gold (thousands of ounces)	311	1,325		1,327		July 2018
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	104	3.13		3.04		July 2018
Cobalt (millions of pounds)a	8	30.19		33.88		June 2018

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2018			2017
Embedded derivatives in provisional sales contracts:a
Copper	$	(135	)	$	107
Gold and other metals	18			19
Copper forward contractsb	2			(1		)

a. Amounts recorded in revenues. 

b. Amounts recorded in cost of sales as production and delivery costs.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

	March 31, 2018		December 31, 2017
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	2	$	11
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	11		155
Copper forward contracts	—		1
Total derivative assets	$	13	$	167
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	5	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	48		31
Copper forward contracts	—		2
Total derivative liabilities	$	53	$	33

Offsetting Assets

A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	11	$	155	$	48	$	31
Copper derivatives	2		12		5		2
	13		167		53		33
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	1		—		1		—
Copper derivatives	—		1		—		1
	1		1		1		1
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	10		155		47		31
Copper derivatives	2		11		5		1
	$	12	$	166	$	52	$	32
Balance sheet classification:
Trade accounts receivable	$	—	$	151	$	41	$	—
Other current assets	2		11		—		—
Accounts payable and accrued liabilities	10		4		11		32
	$	12	$	166	$	52	$	32

Offsetting Liabilities

A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	11	$	155	$	48	$	31
Copper derivatives	2		12		5		2
	13		167		53		33
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	1		—		1		—
Copper derivatives	—		1		—		1
	1		1		1		1
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	10		155		47		31
Copper derivatives	2		11		5		1
	$	12	$	166	$	52	$	32
Balance sheet classification:
Trade accounts receivable	$	—	$	151	$	41	$	—
Other current assets	2		11		—		—
Accounts payable and accrued liabilities	10		4		11		32
	$	12	$	166	$	52	$	32

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows to the components presented in the consolidated balance sheets (in millions):

	March 31, 2018		December 31, 2017
Balance sheet components:
Cash and cash equivalents	$	3,702	$	4,447
Restricted cash and restricted cash equivalents included in:
Other current assets	123		52
Other assets	127		132
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	3,952	$	4,631

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FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs Disclosure

A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, accounts receivable, restricted cash, restricted cash equivalents, and accounts payable and accrued liabilities (refer to Note 6) follows (in millions):

	At March 31, 2018
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	54		54		54		—		—		—
Government bonds and notes	42		42		—		—		42		—
Corporate bonds	29		29		—		—		29		—
Government mortgage-backed securities	25		25		—		—		25		—
Asset-backed securities	13		13		—		—		13		—
Money market funds	8		8		—		8		—		—
Collateralized mortgage-backed securities	7		7		—		—		7		—
Municipal bonds	1		1		—		—		1		—
Total	179		179		54		8		117		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	11		11		—		—		11		—
Copper futures and swap contractsc	2		2		—		1		1		—
Contingent consideration for the sales of
TF Holdings Limited (TFHL) and onshore
California oil and gas propertiesa	110		110		—		—		110		—
Total	123		123		—		1		122		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		132		—		—		—		132
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	48	$	48	$	—	$	—	$	48	$	—
Copper futures and swap contracts	5		5		—		4		1		—
Total	53		53		—		4		49		—
Long-term debt, including current portione	11,606		11,406		—		—		11,406		—

	At December 31, 2017
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	30		30		25		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	55		55		55		—		—		—
Government bonds and notes	40		40		—		—		40		—
Corporate bonds	32		32		—		—		32		—
Government mortgage-backed securities	27		27		—		—		27		—
Asset-backed securities	15		15		—		—		15		—
Money market funds	11		11		—		11		—		—
Collateralized mortgage-backed securities	8		8		—		—		8		—
Municipal bonds	1		1		—		—		1		—
Total	189		189		55		11		123		—
Derivatives:
Embedded derivatives in provisional sales/
purchase contracts in a gross asset positionc	155		155		—		—		155		—
Copper futures and swap contractsc	11		11		—		9		2		—
Copper forward contractsc	1		1		—		—		1		—
Contingent consideration for the sales of TFHL
and onshore California oil and gas propertiesa	108		108		—		—		108		—
Total	275		275		—		9		266		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	150		134		—		—		—		134
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/
purchase contracts in a gross liability positiond	$	31	$	31	$	—	$	—	$	31	$	—
Copper forward contracts	2		2		—		1		1		—
Total	33		33		—		1		32		—
Long-term debt, including current portione	13,117		13,269		—		—		13,269		—

a. Current portion included in other current assets and long-term portion included in other assets.

b. Excludes time deposits (which approximated fair value) included in (i) other current assets of $123 million at March 31, 2018, and $52 million at December 31, 2017, primarily associated with PT-FI’s mine closure and reclamation guarantees and its disputed incremental export duty and (ii) other assets of $125 million at March 31, 2018, and $123 millionatDecember 31, 2017, primarily associated with an assurance bond to support PT-FI’s commitment for smelter development in Indonesia.

c. Refer to Note 6 for further discussion and balance sheet classifications.

d. Excludes embedded derivatives in provisional cobalt purchase contracts of $30 million at March 31, 2018, and $24 million at December 31, 2017 (refer to Note 6 for further discussion).

e. Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates. In addition, debt excludes $112 million at March 31, 2018, and December 31, 2017, related to assets held for sale (which approximated fair value).

Summary of Unobservable Input Reconciliation

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first three months of2018 follows (in millions):

Fair value at January 1, 2018	$	134
Net unrealized loss related to assets still held at the end of the period	(2		)
Fair value at March 31, 2018	$	132

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Revenue from External Customers by Products and Services

FCX’s revenues attributable to the products it produced for the first quarters of 2018 and 2017 follow (in millions):

	Three Months Ended
	March 31,
	2018			2017
Copper:
Concentrate	$	1,647		$	981
Cathode	1,423			1,041
Rod and other refined copper products	670			624
Gold	808			268
Molybdenum	286			209
Othera	398			231
Adjustments to revenue:
Treatment charges	(132		)	(103		)
Royalty expenseb	(69		)	(22		)
Export dutiesc	(46		)	(14		)
Revenue from contracts with customers	4,985			3,215
Embedded derivativesd	(117		)	126
Total consolidated revenues	$	4,868		$	3,341

a. Primarily includes revenues associated with cobalt, silver, oil, gas and natural gas liquids.

b. Reflects royalties for sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and the prices of copper and gold.

c. Reflects export duties paid by PT-FI.

d. Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Schedule of financial information by business segment

Financial Information by Business Segment

(In millions)
																					Atlantic		Corporate,
	North America Copper Mines						South America Mining														Copper		Other
							Cerro						Indonesia			Molybdenum			Rod &		Smelting		& Elimi-				FCX
	Morenci		Other		Total		Verde		Other		Total		Mining			Mines			Refining		& Refining		nationsa				Total
Three Months Ended March 31, 2018
Revenues:
Unaffiliated customers	$	3	$	15	$	18	$	625	$	150	$	775	$	1,521	b	$	—		$	1,385	$	577	$	592		c	$	4,868
Intersegment	601		689		1,290		102		—		102		52			95			8		2		(1,549		)		—
Production and delivery	290		501		791		427		116		543		457			67			1,388		556		(994		)		2,808
Depreciation, depletion and amortization	46		48		94		105		22		127		181			19			2		7		21				451
Selling, general and administrative expenses	1		2		3		2		—		2		39			—			—		6		81				131
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		20				21
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		9				9
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(11		)		(11		)
Operating income (loss)	267		152		419		193		12		205		896			9			3		10		(83		)		1,459
Interest expense, net	1		—		1		17		—		17		—			—			—		5		128				151
Provision for income taxes	—		—		—		68		4		72		401			—			—		1		32				506
Total assets at March 31, 2018	2,817		4,340		7,157		8,740		1,715		10,455		10,992			1,836			290		809		5,098			d	36,637
Capital expenditures	47		45		92		63		4		67		203			1			1		4		34				402
Three Months Ended March 31, 2017
Revenues:
Unaffiliated customers	$	66	$	50	$	116	$	640	$	112	$	752	$	534	b	$	—		$	1,107	$	458	$	374		c	$	3,341
Intersegment	416		563		979		116		—		116		—			63			8		—		(1,166		)		—
Production and delivery	257		409		666		391		82		473		270			52			1,109		436		(818		)		2,188			e
Depreciation, depletion and amortization	47		69		116		112		21		133		83			19			2		7		29				389
Selling, general and administrative expenses	—		1		1		2		—		2		30			—			—		5		113				151
Mining exploration and research expenses	—		1		1		—		—		—		—			—			—		—		13				14
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—			—		—		25				25
Net gain on sales of assets	—		—		—		—		—		—		—			—			—		—		(23		)		(23		)
Operating income (loss)	178		133		311		251		9		260		151			(8		)	4		10		(131		)		597
Interest expense, net	1		—		1		16		—		16		—			—			—		4		146				167
Provision for income taxes	—		—		—		98		3		101		67			—			—		1		5				174
Total assets at March 31, 2017	2,814		4,361		7,175		9,081		1,525		10,606		10,418			1,917			261		652		5,547			d	36,576
Capital expenditures	23		5		28		14		1		15		244			1			1		8		47				344

a. Includes U.S. oil and gas operations.

b. Includes PT-FI’s sales to PT Smelting totaling $628 million in first-quarter2018 and $258 million in first-quarter2017.

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 America and South America copper mines.

d. Includes assets held for sale totaling $708 million at March 31, 2018, and $408 million at March 31, 2017, primarily associated with Freeport Cobalt and the Kisanfu exploration project.

e. Includes a decrease of $12 million for the new guidance for the presentation of net periodic benefit cost for pension and other postretirement benefit plans (refer to Note 11 for further discussion).

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Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

Guarantor Financial Statements [Abstract]

Condensed Consolidating Balance Sheets [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2018

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	544		$	714		$	10,012	$	(1,164	)	$	10,106
Property, plant, equipment and mine development costs, net	14			7			22,780		(9		)	22,792
Investments in consolidated subsidiaries	18,668			—			—		(18,668		)	—
Other assets	561			34			3,255		(111		)	3,739
Total assets	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637
LIABILITIES AND EQUITY
Current liabilities	$	621		$	117		$	4,831	$	(1,225	)	$	4,344
Long-term debt, less current portion	9,594			6,574			5,013		(10,058		)	11,123
Deferred income taxes	745		a	—			2,897		—			3,642
Environmental and asset retirement obligations, less current portion	—			203			3,427		—			3,630
Investments in consolidated subsidiaries	—			860			10,338		(11,198		)	—
Other liabilities	171			3,339			1,948		(3,486		)	1,972
Total liabilities	11,131			11,093			28,454		(25,967		)	24,711
Equity:
Stockholders’ equity	8,656			(10,338		)	4,901		5,437			8,656
Noncontrolling interests	—			—			2,692		578			3,270
Total equity	8,656			(10,338		)	7,593		6,015			11,926
Total liabilities and equity	$	19,787		$	755		$	36,047	$	(19,952	)	$	36,637

a. All U.S.-related deferred income taxes are recorded at the parent company.

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017

	FCX			FM O&G LLC			Non-guarantor					Consolidated
	Issuer			Guarantor			Subsidiaries		Eliminations			FCX
ASSETS
Current assets	$	75		$	671		$	10,823	$	(790	)	$	10,779
Property, plant, equipment and mine development costs, net	14			11			22,829		(10		)	22,844
Investments in consolidated subsidiaries	19,570			—			—		(19,570		)	—
Other assets	943			48			3,179		(491		)	3,679
Total assets	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302
LIABILITIES AND EQUITY
Current liabilities	$	1,683		$	220		$	4,073	$	(938	)	$	5,038
Long-term debt, less current portion	10,021			6,512			5,440		(10,270		)	11,703
Deferred income taxes	748		a	—			2,874		—			3,622
Environmental and asset retirement obligations, less current portion	—			201			3,430		—			3,631
Investments in consolidated subsidiary	—			853			10,397		(11,250		)	—
Other liabilities	173			3,340			1,987		(3,488		)	2,012
Total liabilities	12,625			11,126			28,201		(25,946		)	26,006
Equity:
Stockholders’ equity	7,977			(10,396		)	5,916		4,480			7,977
Noncontrolling interests	—			—			2,714		605			3,319
Total equity	7,977			(10,396		)	8,630		5,085			11,296
Total liabilities and equity	$	20,602		$	730		$	36,831	$	(20,861	)	$	37,302

a. All U.S.-related deferred income taxes are recorded at the parent company.

Condensed Consolidating Statements of Income [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	15		$	4,853		$	—		$	4,868
Total costs and expenses	9			8			3,393			(1		)	3,409
Operating (loss) income	(9		)	7			1,460			1			1,459
Interest expense, net	(104		)	(64		)	(85		)	102			(151		)
Other income (expense), net	101			—			29			(102		)	28
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(12		)	(57		)	1,404			1			1,336
(Provision for) benefit from income taxes	(83		)	12			(435		)	—			(506		)
Equity in affiliated companies’ net earnings (losses)	787			(6		)	(34		)	(749		)	(2		)
Net income (loss) from continuing operations	692			(51		)	935			(748		)	828
Net loss from discontinued operations	—			—			(11		)	—			(11		)
Net income (loss)	692			(51		)	924			(748		)	817
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(71		)	(54		)	(125		)
Net income (loss) attributable to common stockholders	$	692		$	(51	)	$	853		$	(802	)	$	692
Other comprehensive income (loss)	12			—			12			(12		)	12
Total comprehensive income (loss)	$	704		$	(51	)	$	865		$	(814	)	$	704

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Revenues	$	—		$	13		$	3,328		$	—		$	3,341
Total costs and expenses	8			50			2,684			2			2,744
Operating (loss) income	(8		)	(37		)	644			(2		)	597
Interest expense, net	(122		)	(53		)	(71		)	79			(167		)
Other income (expense), net	78			—			9			(79		)	8
(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)	(52		)	(90		)	582			(2		)	438
(Provision for) benefit from income taxes	(60		)	31			(146		)	1			(174		)
Equity in affiliated companies’ net earnings (losses)	340			20			(36		)	(320		)	4
Net income (loss) from continuing operations	228			(39		)	400			(321		)	268
Net income from discontinued operations	—			—			38			—			38
Net income (loss)	228			(39		)	438			(321		)	306
Net income attributable to noncontrolling interests:
Continuing operations	—			—			(65		)	(10		)	(75		)
Discontinued operations	—			—			(3		)	—			(3		)
Net income (loss) attributable to common stockholders	$	228		$	(39	)	$	370		$	(331	)	$	228
Other comprehensive income (loss)	11			—			11			(11		)	11
Total comprehensive income (loss)	$	239		$	(39	)	$	381		$	(342	)	$	239

Condensed Consolidating Statements of Cash Flows [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2018
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(156	)	$	(70	)	$	1,595		$	—		$	1,369
Cash flow from investing activities:
Capital expenditures	—			—			(402		)	—			(402		)
Intercompany loans	(184		)	—			—			184			—
Dividends from (investments in) consolidated subsidiaries	1,746			—			23			(1,769		)	—
Asset sales and other, net	—			—			(90		)	—			(90		)
Net cash provided by (used in) investing activities	1,562			—			(469		)	(1,585		)	(492		)
Cash flow from financing activities:
Proceeds from debt	—			—			122			—			122
Repayments of debt	(1,409		)	—			(224		)	—			(1,633		)
Intercompany loans	—			62			122			(184		)	—
Cash dividends paid and contributions received, net	—			—			(1,835		)	1,755			(80		)
Other, net	3			—			(14		)	14			3
Net cash (used in) provided by financing activities	(1,406		)	62			(1,829		)	1,585			(1,588		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(8		)	(703		)	—			(711		)
Decrease in cash and cash equivalents in assets held for sale	—			—			32			—			32
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			8			4,623			—			4,631
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	—		$	3,952		$	—		$	3,952

Three Months Ended March 31, 2017
	FCX			FM O&G LLC			Non-guarantor						Consolidated
	Issuer			Guarantor			Subsidiaries			Eliminations			FCX
Net cash (used in) provided by operating activities	$	(112	)	$	(200	)	$	1,104		$	—		$	792
Cash flow from investing activities:
Capital expenditures	—			(10		)	(334		)	—			(344		)
Intercompany loans	(277		)	—			—			277			—
Dividends from (investments in) consolidated subsidiaries	894			—			26			(920		)	—
Asset sales and other, net	—			(23		)	6			—			(17		)
Net cash provided by (used in) investing activities	617			(33		)	(302		)	(643		)	(361		)
Cash flow from financing activities:
Proceeds from debt	—			—			157			—			157
Repayments of debt	(499		)	—			(316		)	—			(815		)
Intercompany loans	—			236			41			(277		)	—
Cash dividends paid and contributions received, net	(1		)	—			(895		)	880			(16		)
Other, net	(5		)	(6		)	(34		)	40			(5		)
Net cash (used in) provided by financing activities	(505		)	230			(1,047		)	643			(679		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	—			(3		)	(245		)	—			(248		)
Decrease in cash and cash equivalents in assets held for sale	—			—			8			—			8
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	—			11			4,392			—			4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	—		$	8		$	4,155		$	—		$	4,163

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New Accounting Standard (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Impact of Adopting New Accounting Standards

The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported		Impact of Adoption			Current Presentation
Production and delivery	$	2,200	$	(12	)	$	2,188
Total cost of sales	2,589		(12		)	2,577
Selling, general and administrative expenses	153		(2		)	151
Mining exploration and research expenses	15		(1		)	14
Environmental obligations and shutdown costs	27		(2		)	25
Total costs and expenses	2,761		(17		)	2,744
Operating income	580		17			597
Other income, net	25		(17		)	8

The impact of adopting this ASU for the three months ended March 31, 2017, follows (in millions):

	Previously Reported			Impact of Adoption		Current Presentation
Other, net included in cash flow from investing activities	$	(21	)	$	4	$	(17	)
Cash flow from investing activities	(365		)	4		(361		)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	(252		)	4		(248		)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,245			158		4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	4,001			162		4,163

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Earnings per Share (Unaudited) Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income from continuing operations	$ 828	$ 268
Net income from continuing operations attributable to noncontrolling interests	125	75
Undistributed earnings allocated to participating securities	4	3
Net income from continuing operations attributable to common stockholders	699	190
Net (loss) income from discontinued operations	(11)	38
Net income from discontinued operations attributable to noncontrolling interests	0	3
Net (loss) income from discontinued operations attributable to common stockholders	(11)	35
Net income attributable to common stockholders	$ 688	$ 225
Basic	1,449	1,446
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units	9	8
Diluted weighted-average shares of common stock outstanding	1,458	1,454
Basic and diluted net income (loss) per share attributable to common stockholders
Continuing operations	$ 0.48	$ 0.13
Discontinued operations	(0.01)	0.03
Basic and diluted net income (loss) per share attributable to common stockholders:	$ 0.47	$ 0.16
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4
Dilutive Securities Excluded from Computation of EPS Amount	33	44

XML

Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Components of Inventories [Line Items]
Total materials and supplies, net	$ 1,335	$ 1,305
Mill stockpiles	330	360
Leach stockpiles	1,118	1,062
Total current mill and leach stockpiles	1,448	1,422
Raw materials (primarily concentrate)	284	265
Work-in-process	138	154
Finished goods	680	747
Total product inventories	1,102	1,166
Mill stockpiles	308	300
Leach stockpiles	1,079	1,109
Total long-term mill and leach stockpiles	1,387	1,409
Inventory obsolescence reserves	$ 25	$ 29

XML

Income Taxes (Unaudited) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule Of Income Taxes [Line Items]
U.S. operations	$ 3,000,000	$ (7,000,000)
International operations	(509,000,000)	(167,000,000)
Total	(506,000,000)	$ (174,000,000)
Tax Cuts and Jobs Act of 2017, Measurement Period Adjustment, Income Tax Expense (Benefit)	$ 0
Consolidated effective income tax rate (percent)	38.00%	40.00%

XML

Debt (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended				9 Months Ended	12 Months Ended
	Apr. 04, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($) $ / shares	Mar. 31, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Debt Instruments [Line Items]
Long-term Debt and Capital Lease Obligations, Including Current Maturities				$ 11,606				$ 13,117
Less current portion of long-term debt and short-term borrownings				(483)				(1,414)
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months								1,414
Long-term debt				11,123				11,703
Liabilities, Fair Value Adjustment				93				97
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net				81				85
Senior Notes Issued by FCX [Abstract]
Repayments of Debt				1,633	$ 815
Exchanges and Early Extinguishment of Debt [Abstract]
Interest Costs Incurred				$ 176	$ 195
Dividends declared per share of common stock | $ / shares				$ 0.05	$ 0
Long-term Debt and Capital Lease Obligations								11,703
Property, Plant and Equipment [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Interest Costs Capitalized				$ 25	$ 28
Oil and Gas Operations Segment [Member] | Oil and Gas Properties [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Interest Costs Capitalized						$ 0	$ 0
Line of Credit [Member] | Line of Credit [Member] | Cerro Verde [Member]
Debt Instruments [Line Items]
Long-term Debt				1,170				1,269
Line of Credit [Member] | Letter of Credit [Member]
Revolving Credit Facility [Abstract]
Long-term Line of Credit				13
Revolving Credit Facility, Remaining Borrowing Capacity				1,500
Line of Credit [Member] | Revolving Credit Facility [Member]
Debt Instruments [Line Items]
Long-term Debt				0
Revolving Credit Facility [Abstract]
Revolving Credit Facility, Remaining Borrowing Capacity				3,500
Senior Notes [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Repayments of Lines of Credit				100
Senior Notes [Member] | 2.375% Senior Notes due March 2018 [Member]
Senior Notes Issued by FCX [Abstract]
Repayments of Debt				1,400
Senior Notes [Member] | FCX [Member]
Debt Instruments [Line Items]
Long-term Debt, Gross				10,020				11,429
Senior Notes [Member] | Freeport-McMoRan Oil & Gas
Debt Instruments [Line Items]
Long-term Debt, Gross				54				54
Senior Notes [Member] | Scenario, Forecast [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Net loss (gain) on exchanges and early extinguishment of debt			$ 10
Debentures [Member] | Freeport McMoRan Corporation [Member]
Debt Instruments [Line Items]
Long-term Debt, Gross				358				358
Other Debt, Including Capital Leases and Short Term Borrowings [Member]
Debt Instruments [Line Items]
Long-term Debt and Capital Lease Obligations, Including Current Maturities				$ 4				$ 7
Subsequent Event [Member]
Revolving Credit Facility [Abstract]
Debt Instrument, Term		5 years
Subsequent Event [Member] | Line of Credit [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity		$ 3,500
Exchanges and Early Extinguishment of Debt [Abstract]
Amount of revolving credit facility available to subsidiary		$ 500
Subsequent Event [Member] | Senior Notes [Member] | Freeport-McMoRan Oil & Gas
Exchanges and Early Extinguishment of Debt [Abstract]
Extinguishment Of Debt, Redemption Value	$ 454
Subsequent Event [Member] | Senior Notes [Member] | Freeport-McMoRan Oil & Gas | 6.75% Senior Notes due 2022 [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Extinguishment Of Debt, Redemption Value	404
Subsequent Event [Member] | Senior Notes [Member] | Freeport-McMoRan Oil & Gas | 6.875% Senior Notes due 2023 [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Extinguishment Of Debt, Redemption Value	$ 50
Subsequent Event [Member] | Maximum [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
Debt Instrument, Covenant Compliance, Leverage Ratio		3.75
Subsequent Event [Member] | Minimum [Member]
Exchanges and Early Extinguishment of Debt [Abstract]
DebtInstrumentCovenantComplianceCoverageRatio		2.25

XML

Financial Instruments (Unrealized gains losses) (Details) oz in Thousands, lb in Millions, $ in Millions		3 Months Ended
	Mar. 31, 2018 lb oz $ / lb $ / lb $ / oz	Mar. 31, 2018 USD ($) $ / lb $ / lb $ / oz	Mar. 31, 2017 USD ($)
Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]
Realized gains (losses):
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $		$ (117)	$ 126
Commodity Contract [Member]
Unrealized gains (losses):
Derivative financial instruments | $		(15)	(2)
Hedged item – firm sales commitments | $		15	2
Realized gains (losses):
Matured derivative financial instruments | $		$ 2	8
Commodity Contract [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	57
Derivative, Average Forward Price	3.10	3.10
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	3
Derivative, Average Forward Price	3.09	3.09
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Cost of Sales
Realized gains (losses):
Matured derivative financial instruments | $		$ 2	(1)
Copper | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]
Realized gains (losses):
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $		$ (135)	107
Copper | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	518
Derivative, Average Forward Price	3.13	3.13
Realized gains (losses):
Derivative Average Market Price	3.04	3.04
Copper | Long [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	104
Derivative, Average Forward Price	3.13	3.13
Realized gains (losses):
Derivative Average Market Price	3.04	3.04
Gold | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | oz	311
Derivative, Average Forward Price | $ / oz	1,325	1,325
Realized gains (losses):
Derivative Average Market Price | $ / oz	1,327	1,327
gold and other [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]
Realized gains (losses):
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $		$ 18	$ 19
Cobalt | Long [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	8
Derivative, Average Forward Price	30.19	30.19
Realized gains (losses):
Derivative Average Market Price	33.88	33.88

XML

Financial Instruments (Unsettled Derivatives) (Details) oz in Thousands, lb in Millions, $ in Millions		3 Months Ended
	Mar. 31, 2018 USD ($) lb oz $ / lb $ / lb $ / oz	Mar. 31, 2018 USD ($) $ / lb $ / lb $ / oz	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 13	$ 13		$ 167
Derivative Liability, Fair Value, Gross Liability	53	53		33
Derivative Asset, Fair Value, Gross Liability	1	1		1
Derivative Liability, Fair Value, Gross Asset	1	1		1
Derivative Asset	12	12		166
Derivative Liability	52	52		32
Trade accounts receivable [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset	0	0		151
Derivative Liability	41	41		0
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset	2	2		11
Derivative Liability	0	0		0
Accounts Payable and Accrued Liabilities
Derivatives, Fair Value [Line Items]
Derivative Asset	10	10		4
Derivative Liability	11	11		32
Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative, Gain (Loss) on Derivative, Net		2	$ 8
Derivative Asset, Fair Value, Gross Asset	2	2		12
Derivative Liability, Fair Value, Gross Liability	5	5		2
Derivative Asset, Fair Value, Gross Liability	0	0		1
Derivative Liability, Fair Value, Gross Asset	0	0		1
Derivative Asset	2	2		11
Derivative Liability	5	5		1
Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	11	11		155
Derivative Liability, Fair Value, Gross Liability	48	48		31
Derivative Asset, Fair Value, Gross Liability	1	1		0
Derivative Liability, Fair Value, Gross Asset	1	1		0
Derivative Asset	10	10		155
Derivative Liability	47	47		31
Designated as Hedging Instrument [Member] | Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 2	$ 2		11
Derivative, Nonmonetary Notional Amount, Mass | lb	57
Derivative, Average Forward Price | $ / lb	3.10	3.10
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 11	$ 11		155
Derivative Liability, Fair Value, Gross Liability	$ 48	$ 48		31
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	3
Derivative, Average Forward Price | $ / lb	3.09	3.09
Future [Member] | Not Designated as Hedging Instrument [Member] | FMC's Copper Futures and Swap Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 5	$ 5		0
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	0	0		2
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 0	$ 0		1
Copper | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Average Market Price | $ / lb	3.04	3.04
Derivative, Nonmonetary Notional Amount, Mass | lb	518
Derivative, Average Forward Price | $ / lb	3.13	3.13
Copper | Long [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Average Market Price | $ / lb	3.04	3.04
Derivative, Nonmonetary Notional Amount, Mass | lb	104
Derivative, Average Forward Price | $ / lb	3.13	3.13
Gold | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Average Market Price | $ / oz	1,327	1,327
Derivative, Nonmonetary Notional Amount, Mass | oz	311
Derivative, Average Forward Price | $ / oz	1,325	1,325
Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net		$ (117)	126
Sales [Member] | Copper | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net		(135)	107
Sales [Member] | gold and other [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net		18	19
Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Gain (Loss) on Derivative, Net		2	$ (1)
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 30	$ 30		$ 24

XML

Financial Instruments (Derivative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Line Items]
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$ 3,702	$ 4,447
Restricted Cash and Cash Equivalents, Current	123	52
Restricted Cash and Cash Equivalents, Noncurrent	127	132
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	3,952	4,631	$ 4,163	$ 4,403
Credit Derivative, Maximum Exposure, Undiscounted	11
Bank Time Deposits [Member]
Cash and Cash Equivalents [Line Items]
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$ 2,800	$ 2,900

XML

Fair Value Measurement (Fair Value Measurement Inputs) (Details) $ in Millions	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) $ / bbl	Nov. 16, 2016 USD ($) $ / lb
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Other current assets				$ 367	$ 270
Other assets				2,352	2,270
Assets				36,637	37,302	$ 36,576
Derivative Liability, Fair Value, Gross Liability				53	33
Derivatives:
Derivative Asset				12	166
Derivatives: [Abstract]
Derivative Liability				52	32
Level 1
Investment securities (current and long-term):
Investments, Fair Value Disclosure				5	5
Trust Assets Fair Value Disclosure				8	11
Derivatives:
Derivative Asset				1	9
Contingent receivable				0	0
Derivatives: [Abstract]
Derivative Liability				4	1
Long-term debt, including current portion				0	0
Level 2
Investment securities (current and long-term):
Investments, Fair Value Disclosure				0	0
Trust Assets Fair Value Disclosure				117	123
Derivatives:
Derivative Asset				122	266
Contingent receivable				0	0
Derivatives: [Abstract]
Derivative Liability				49	32
Long-term debt, including current portion				11,406	13,269
Level 3
Investment securities (current and long-term):
Investments, Fair Value Disclosure				0	0
Trust Assets Fair Value Disclosure				0	0
Derivatives:
Derivative Asset				0	0
Contingent receivable				132	134
Derivatives: [Abstract]
Derivative Liability				0	0
Long-term debt, including current portion				0	0
Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Investments, Fair Value Disclosure				30	30
Trust Assets Fair Value Disclosure				179	189
Derivatives:
Derivative Asset				123	275
Contingent receivable				132	134
Derivatives: [Abstract]
Derivative Liability				53	33
Long-term debt, including current portion				11,406	13,269
Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Investments, Fair Value Disclosure				30	30
Trust Assets Fair Value Disclosure				179	189
Derivatives:
Derivative Asset				123	275
Contingent receivable				150	150
Derivatives: [Abstract]
Derivative Liability				53	33
Long-term debt, including current portion				11,606	13,117
Forward Contracts [Member] | Level 1
Derivatives:
Derivative Asset					0
Forward Contracts [Member] | Level 2
Derivatives:
Derivative Asset					1
Forward Contracts [Member] | Level 3
Derivatives:
Derivative Asset					0
Forward Contracts [Member] | Estimate of Fair Value Measurement [Member]
Derivatives:
Derivative Asset					1
Forward Contracts [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives:
Derivative Asset					1
Embedded Derivative Financial Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Liability, Fair Value, Gross Liability				48	31
Derivatives:
Derivative Asset				10	155
Derivatives: [Abstract]
Derivative Liability				47	31
Embedded Derivative Financial Instruments [Member] | Level 1
Derivatives:
Derivative Asset				0	0
Derivatives: [Abstract]
Derivative Liability				0	0
Embedded Derivative Financial Instruments [Member] | Level 2
Derivatives:
Derivative Asset				11	155
Derivatives: [Abstract]
Derivative Liability				48	31
Embedded Derivative Financial Instruments [Member] | Level 3
Derivatives:
Derivative Asset				0	0
Derivatives: [Abstract]
Derivative Liability				0	0
Embedded Derivative Financial Instruments [Member] | Estimate of Fair Value Measurement [Member]
Derivatives:
Derivative Asset				11	155
Derivatives: [Abstract]
Derivative Liability				48	31
Embedded Derivative Financial Instruments [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives:
Derivative Asset				11	155
Derivatives: [Abstract]
Derivative Liability				48	31
Commodity Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Liability, Fair Value, Gross Liability				5	2
Derivatives:
Derivative Asset				2	11
Derivatives: [Abstract]
Derivative Liability				5	1
Commodity Contract [Member] | Level 1
Derivatives:
Derivative Asset					9
Derivatives: [Abstract]
Derivative Liability				4
Commodity Contract [Member] | Level 2
Derivatives:
Derivative Asset					2
Derivatives: [Abstract]
Derivative Liability				1
Commodity Contract [Member] | Level 3
Derivatives:
Derivative Asset					0
Derivatives: [Abstract]
Derivative Liability				0
Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]
Derivatives:
Derivative Asset					11
Derivatives: [Abstract]
Derivative Liability				5
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives:
Derivative Asset					11
Derivatives: [Abstract]
Derivative Liability				5
Future [Member] | Level 1
Derivatives:
Derivative Asset				1
Future [Member] | Level 2
Derivatives:
Derivative Asset				1
Future [Member] | Level 3
Derivatives:
Derivative Asset				0
Future [Member] | Estimate of Fair Value Measurement [Member]
Derivatives:
Derivative Asset				2
Future [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives:
Derivative Asset				2
Africa and onshore California [Member] | Commodity Contract [Member] | Level 1
Derivatives:
Derivative Asset				0	0
Africa and onshore California [Member] | Commodity Contract [Member] | Level 2
Derivatives:
Derivative Asset				110	108
Africa and onshore California [Member] | Commodity Contract [Member] | Level 3
Derivatives:
Derivative Asset				0	0
Africa and onshore California [Member] | Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]
Derivatives:
Derivative Asset				110	108
Africa and onshore California [Member] | Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives:
Derivative Asset				110	108
U.S. core fixed income fund [Member] | Level 1
Investment securities (current and long-term):
Marketable Securities				0	0
Trust Assets Fair Value Disclosure				0	0
U.S. core fixed income fund [Member] | Level 2
Investment securities (current and long-term):
Marketable Securities				0	0
Trust Assets Fair Value Disclosure				0	0
U.S. core fixed income fund [Member] | Level 3
Investment securities (current and long-term):
Marketable Securities				0	0
Trust Assets Fair Value Disclosure				0	0
U.S. core fixed income fund [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Marketable Securities				25	25
Trust Assets Fair Value Disclosure				54	55
U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Marketable Securities				25	25
Trust Assets Fair Value Disclosure				54	55
Equity securities | Level 1
Investment securities (current and long-term):
Marketable Securities				5	5
Equity securities | Level 2
Investment securities (current and long-term):
Marketable Securities				0	0
Equity securities | Level 3
Investment securities (current and long-term):
Marketable Securities				0	0
Equity securities | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Marketable Securities				5	5
Equity securities | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Marketable Securities				5	5
Money market funds [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				8	11
Money market funds [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Money market funds [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Money market funds [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				8	11
Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				8	11
Government bonds | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Government bonds | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				42	40
Government bonds | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Government bonds | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				42	40
Government bonds | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				42	40
Corporate bonds [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Corporate bonds [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				29	32
Corporate bonds [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Corporate bonds [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				29	32
Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				29	32
Government mortgage-backed securities [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Government mortgage-backed securities [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				25	27
Government mortgage-backed securities [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Government mortgage-backed securities [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				25	27
Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				25	27
Asset-backed securities [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Asset-backed securities [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				13	15
Asset-backed securities [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Asset-backed securities [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				13	15
Asset-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				13	15
Collateralized Mortgage Backed Securities [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Collateralized Mortgage Backed Securities [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				7	8
Collateralized Mortgage Backed Securities [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Collateralized Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				7	8
Collateralized Mortgage Backed Securities [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				7	8
Municipal bonds [Member] | Level 1
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Municipal bonds [Member] | Level 2
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				1	1
Municipal bonds [Member] | Level 3
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				0	0
Municipal bonds [Member] | Estimate of Fair Value Measurement [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				1	1
Municipal bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]
Investment securities (current and long-term):
Trust Assets Fair Value Disclosure				1	1
Bank Time Deposits [Member] | Carrying Amount, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Other current assets				123	52
Other assets				125	123
Commodity Contract [Member] | Level 1
Derivatives: [Abstract]
Derivative Liability					1
Commodity Contract [Member] | Level 2
Derivatives: [Abstract]
Derivative Liability					1
Commodity Contract [Member] | Level 3
Derivatives: [Abstract]
Derivative Liability					0
Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]
Derivatives: [Abstract]
Derivative Liability					2
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]
Derivatives: [Abstract]
Derivative Liability					2
Investment Securities [Member]
Investment securities (current and long-term):
Alternative Investment, Fair Value Disclosure				25	25
Investment Securities [Member] | U.S. core fixed income fund [Member]
Investment securities (current and long-term):
Alternative Investment, Fair Value Disclosure				25	25
Restricted Funds [Member]
Investment securities (current and long-term):
Alternative Investment, Fair Value Disclosure				54	55
Restricted Funds [Member] | U.S. core fixed income fund [Member]
Investment securities (current and long-term):
Alternative Investment, Fair Value Disclosure				54	55
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Liability, Fair Value, Gross Liability				48	31
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Estimate of Fair Value Measurement [Member]
Derivatives: [Abstract]
Long-term debt, including current portion				112	112
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Liability, Fair Value, Gross Liability				30	24
TF Holdings Limited | Discontinued Operations, Disposed of by Sale
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Other assets				65	74
Derivatives:
Contingent receivable								$ 120
Copper | TF Holdings Limited | Discontinued Operations, Disposed of by Sale
Derivatives:
Contingent receivable								60
Cobalt | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Liability, Fair Value, Gross Liability				30	24
Cobalt | TF Holdings Limited | Discontinued Operations, Disposed of by Sale
Derivatives:
Contingent receivable								$ 60
Contingent consideration, reference threshold (in us dollars per pound) | $ / lb								20
Freeport-McMoRan Oil & Gas | Onshore California [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Other current assets				18
Other assets					34
Assets				45
Derivatives:
Contingent receivable							$ 150
Freeport-McMoRan Oil & Gas | Deepwater Gulf of Mexico Interests [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]
Other current assets				21	24
Other assets				$ 129	$ 126
Derivatives:
Contingent receivable							$ 150
Scenario, Forecast [Member] | Freeport-McMoRan Oil & Gas | Onshore California [Member]
Derivatives:
Contingent receivable	$ 50	$ 50	$ 50
Crude Oil [Member] | Freeport-McMoRan Oil & Gas | Onshore California [Member]
Derivatives:
Contingent consideration, reference threshold (in us dollars per pound) | $ / bbl							70
Maximum [Member] | Copper | TF Holdings Limited | Discontinued Operations, Disposed of by Sale
Derivatives:
Contingent consideration, reference threshold (in us dollars per pound) | $ / lb								3.50

XML

Fair Value Measurement (Unobservable inputs) (Details) - Gulf of Mexico Contingent Consideration [Member] $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at January 1, 2018	$ 134
Net unrealized loss related to assets still held at the end of the period	(2)
Fair value at March 31, 2018	$ 132

XML

Contingencies and Commitments (Unaudited) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($)
Loss Contingencies [Line Items]
Term to construct smelter	5 years
Tax Authority, In Papau, Indonesia [Member] | Relating to January 2016 through April 2016 [Member] | PT Freeport Indonesia [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 13
Change in Loss Contingency, percent	40.00%
Tax Authority, In Papau, Indonesia [Member] | Relating to August 2015 through March 2018 [Member] | PT Freeport Indonesia [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 161
Penalties [Member] | Tax Authority, In Papau, Indonesia [Member] | Relating to August 2015 through March 2018 [Member] | PT Freeport Indonesia [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 81
PT Freeport Indonesia [Member]
Loss Contingencies [Line Items]
Divestment percentage	51.00%
PT Freeport Indonesia [Member] | PT Indocopper Investama [Member]
Loss Contingencies [Line Items]
Investment Owned, Percent of Net Assets	9.36%
David Garcia v. Freeport-McMoRan Oil & Gas LLC Litigation [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 50
David Garcia v. Freeport-McMoRan Oil & Gas LLC Litigation [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 80

XML

Business Segments (Product Revenue) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue from External Customer [Line Items]
Treatment And Refining Charges Included In Copper Concentrates Revenues	$ (132)	$ (103)
Royalty Expense	(69)	(22)
Export Duties Expense	(46)	(14)
Revenue from Contract with Customer, Excluding Assessed Tax	4,985	3,215
Revenues	4,868	3,341
Copper In Concentrates [Member]
Revenue from External Customer [Line Items]
Revenues	1,647	981
Copper Cathode [Member]
Revenue from External Customer [Line Items]
Revenues	1,423	1,041
Refined Copper Products [Member]
Revenue from External Customer [Line Items]
Revenues	670	624
Gold
Revenue from External Customer [Line Items]
Revenues	808	268
Molybdenum [Member]
Revenue from External Customer [Line Items]
Revenues	286	209
Other Products Or Services [Member]
Revenue from External Customer [Line Items]
Revenues	398	231
Sales [Member] | Not Designated as Hedging Instrument [Member]
Revenue from External Customer [Line Items]
Matured derivative financial instruments	$ (117)	$ 126

XML

Business Segments (Segment Reporting) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Number of Operating Segments	4
Revenues	$ 4,868	$ 3,341
Production and delivery	2,808	2,188
Depreciation, depletion and amortization	451	389
Selling, general and administrative expenses	131	151
Mining exploration and research expenses	21	14
Environmental obligations and shutdown costs	9	25
Net gain on sales of assets	(11)	(23)
Operating income (loss)	1,459	597
Interest expense, net	151	167
Provision for (benefit from) income taxes	506	174
Total assets	36,637	36,576	$ 37,302
Capital expenditures	402	344
Assets held for sale	708	408	$ 598
Operating Segments | North America
Segment Reporting Information [Line Items]
Revenues	18	116
Production and delivery	791	666
Depreciation, depletion and amortization	94	116
Selling, general and administrative expenses	3	1
Mining exploration and research expenses	1	1
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	419	311
Interest expense, net	1	1
Provision for (benefit from) income taxes	0	0
Total assets	7,157	7,175
Capital expenditures	92	28
Operating Segments | South America
Segment Reporting Information [Line Items]
Revenues	775	752
Production and delivery	543	473
Depreciation, depletion and amortization	127	133
Selling, general and administrative expenses	2	2
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	205	260
Interest expense, net	17	16
Provision for (benefit from) income taxes	72	101
Total assets	10,455	10,606
Capital expenditures	67	15
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues	592	374
Production and delivery	(994)	(818)
Depreciation, depletion and amortization	21	29
Selling, general and administrative expenses	81	113
Mining exploration and research expenses	20	13
Environmental obligations and shutdown costs	9	25
Net gain on sales of assets	(11)	(23)
Operating income (loss)	(83)	(131)
Interest expense, net	128	146
Provision for (benefit from) income taxes	32	5
Total assets	5,098	5,547
Capital expenditures	34	47
Intersegment
Segment Reporting Information [Line Items]
Revenues	0	0
Intersegment | North America
Segment Reporting Information [Line Items]
Revenues	1,290	979
Intersegment | South America
Segment Reporting Information [Line Items]
Revenues	102	116
Pt Smelting [Member] | Affiliated Entity [Member]
Segment Reporting Information [Line Items]
Revenues	$ 628	258
Pt Smelting [Member]
Segment Reporting Information [Line Items]
Deferred Intercompany Profit, Percentage	25.00%
Morenci [Member] | Operating Segments | North America
Segment Reporting Information [Line Items]
Revenues	$ 3	66
Production and delivery	290	257
Depreciation, depletion and amortization	46	47
Selling, general and administrative expenses	1	0
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	267	178
Interest expense, net	1	1
Provision for (benefit from) income taxes	0	0
Total assets	2,817	2,814
Capital expenditures	47	23
Morenci [Member] | Intersegment | North America
Segment Reporting Information [Line Items]
Revenues	601	416
Other Individually Immaterial Operating Segments [Member] | Operating Segments | North America
Segment Reporting Information [Line Items]
Revenues	15	50
Production and delivery	501	409
Depreciation, depletion and amortization	48	69
Selling, general and administrative expenses	2	1
Mining exploration and research expenses	1	1
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	152	133
Interest expense, net	0	0
Provision for (benefit from) income taxes	0	0
Total assets	4,340	4,361
Capital expenditures	45	5
Other Individually Immaterial Operating Segments [Member] | Operating Segments | South America
Segment Reporting Information [Line Items]
Revenues	150	112
Production and delivery	116	82
Depreciation, depletion and amortization	22	21
Selling, general and administrative expenses	0	0
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	12	9
Interest expense, net	0	0
Provision for (benefit from) income taxes	4	3
Total assets	1,715	1,525
Capital expenditures	4	1
Other Individually Immaterial Operating Segments [Member] | Intersegment | North America
Segment Reporting Information [Line Items]
Revenues	689	563
Other Individually Immaterial Operating Segments [Member] | Intersegment | South America
Segment Reporting Information [Line Items]
Revenues	0	0
Cerro Verde [Member] | Operating Segments | South America
Segment Reporting Information [Line Items]
Revenues	625	640
Production and delivery	427	391
Depreciation, depletion and amortization	105	112
Selling, general and administrative expenses	2	2
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	193	251
Interest expense, net	17	16
Provision for (benefit from) income taxes	68	98
Total assets	8,740	9,081
Capital expenditures	63	14
Cerro Verde [Member] | Intersegment | South America
Segment Reporting Information [Line Items]
Revenues	102	116
Grasberg Segment [Member]
Segment Reporting Information [Line Items]
Capital expenditures	203	244
Grasberg Segment [Member] | Operating Segments | Indonesia
Segment Reporting Information [Line Items]
Revenues	1,521	534
Production and delivery	457	270
Depreciation, depletion and amortization	181	83
Selling, general and administrative expenses	39	30
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	896	151
Interest expense, net	0	0
Provision for (benefit from) income taxes	401	67
Total assets	10,992	10,418
Capital expenditures	203	244
Grasberg Segment [Member] | Intersegment | Indonesia
Segment Reporting Information [Line Items]
Revenues	52	0
Molybdenum [Member]
Segment Reporting Information [Line Items]
Capital expenditures	1	1
Molybdenum [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0
Production and delivery	67	52
Depreciation, depletion and amortization	19	19
Selling, general and administrative expenses	0	0
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	9	(8)
Interest expense, net	0	0
Provision for (benefit from) income taxes	0	0
Total assets	1,836	1,917
Capital expenditures	1	1
Molybdenum [Member] | Intersegment
Segment Reporting Information [Line Items]
Revenues	95	63
Rod and Refining Segment [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,385	1,107
Production and delivery	1,388	1,109
Depreciation, depletion and amortization	2	2
Selling, general and administrative expenses	0	0
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	3	4
Interest expense, net	0	0
Provision for (benefit from) income taxes	0	0
Total assets	290	261
Capital expenditures	1	1
Rod and Refining Segment [Member] | Intersegment
Segment Reporting Information [Line Items]
Revenues	8	8
Atlantic Copper Smelting and Refining Segment [Member] | Operating Segments
Segment Reporting Information [Line Items]
Revenues	577	458
Production and delivery	556	436
Depreciation, depletion and amortization	7	7
Selling, general and administrative expenses	6	5
Mining exploration and research expenses	0	0
Environmental obligations and shutdown costs	0	0
Net gain on sales of assets	0	0
Operating income (loss)	10	10
Interest expense, net	5	4
Provision for (benefit from) income taxes	1	1
Total assets	809	652
Capital expenditures	4	8
Atlantic Copper Smelting and Refining Segment [Member] | Intersegment
Segment Reporting Information [Line Items]
Revenues	2	0
Corporate And Eliminations [Member] | Intersegment
Segment Reporting Information [Line Items]
Revenues	$ (1,549)	$ (1,166)

XML

Guarantor Financial Statements (Unaudited) Guarantor Financial Statements (Details)	Mar. 31, 2018
FM O&G LLC Guarantor [Member]
Condensed Financial Statements, Captions [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	10000.00%

XML

Guarantor Financial Statements (Unaudited) Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
ASSETS
Current assets, other than assets held-for-sale	$ 10,106	$ 10,779
Property, plant, equipment and mine development costs, net	22,792	22,844
Investments in consolidated subsidiaries	0	0
Other assets	3,739	3,679
Total assets	36,637	37,302	$ 36,576
LIABILITIES AND EQUITY
Current liabilities, other than liabilities held for sale	4,344	5,038
Long-term debt, less current portion	11,123	11,703
Deferred income taxes	3,642	3,622
Environmental and asset retirement obligations, less current portion	3,630	3,631
Investments in consolidated subsidiaries	0	0
Other liabilities	1,972	2,012
Total liabilities	24,711	26,006
Equity:
Stockholders' equity	8,656	7,977
Noncontrolling interests	3,270	3,319
Total equity	11,926	11,296
Total liabilities and equity	36,637	37,302
Eliminations [Member]
ASSETS
Current assets, other than assets held-for-sale	(1,164)	(790)
Property, plant, equipment and mine development costs, net	(9)	(10)
Investments in consolidated subsidiaries	(18,668)	(19,570)
Other assets	(111)	(491)
Total assets	(19,952)	(20,861)
LIABILITIES AND EQUITY
Current liabilities, other than liabilities held for sale	(1,225)	(938)
Long-term debt, less current portion	(10,058)	(10,270)
Deferred income taxes	0	0
Environmental and asset retirement obligations, less current portion	0	0
Investments in consolidated subsidiaries	(11,198)	(11,250)
Other liabilities	(3,486)	(3,488)
Total liabilities	(25,967)	(25,946)
Equity:
Stockholders' equity	5,437	4,480
Noncontrolling interests	578	605
Total equity	6,015	5,085
Total liabilities and equity	(19,952)	(20,861)
FCX Issuer [Member] | Reportable Legal Entities [Member]
ASSETS
Current assets, other than assets held-for-sale	544	75
Property, plant, equipment and mine development costs, net	14	14
Investments in consolidated subsidiaries	18,668	19,570
Other assets	561	943
Total assets	19,787	20,602
LIABILITIES AND EQUITY
Current liabilities, other than liabilities held for sale	621	1,683
Long-term debt, less current portion	9,594	10,021
Deferred income taxes	745	748
Environmental and asset retirement obligations, less current portion	0	0
Investments in consolidated subsidiaries	0	0
Other liabilities	171	173
Total liabilities	11,131	12,625
Equity:
Stockholders' equity	8,656	7,977
Noncontrolling interests	0	0
Total equity	8,656	7,977
Total liabilities and equity	19,787	20,602
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]
ASSETS
Current assets, other than assets held-for-sale	714	671
Property, plant, equipment and mine development costs, net	7	11
Investments in consolidated subsidiaries	0	0
Other assets	34	48
Total assets	755	730
LIABILITIES AND EQUITY
Current liabilities, other than liabilities held for sale	117	220
Long-term debt, less current portion	6,574	6,512
Deferred income taxes	0	0
Environmental and asset retirement obligations, less current portion	203	201
Investments in consolidated subsidiaries	860	853
Other liabilities	3,339	3,340
Total liabilities	11,093	11,126
Equity:
Stockholders' equity	(10,338)	(10,396)
Noncontrolling interests	0	0
Total equity	(10,338)	(10,396)
Total liabilities and equity	755	730
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
ASSETS
Current assets, other than assets held-for-sale	10,012	10,823
Property, plant, equipment and mine development costs, net	22,780	22,829
Investments in consolidated subsidiaries	0	0
Other assets	3,255	3,179
Total assets	36,047	36,831
LIABILITIES AND EQUITY
Current liabilities, other than liabilities held for sale	4,831	4,073
Long-term debt, less current portion	5,013	5,440
Deferred income taxes	2,897	2,874
Environmental and asset retirement obligations, less current portion	3,427	3,430
Investments in consolidated subsidiaries	10,338	10,397
Other liabilities	1,948	1,987
Total liabilities	28,454	28,201
Equity:
Stockholders' equity	4,901	5,916
Noncontrolling interests	2,692	2,714
Total equity	7,593	8,630
Total liabilities and equity	$ 36,047	$ 36,831

XML

Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 4,868	$ 3,341
Total costs and expenses	3,409	2,744
Operating income (loss)	1,459	597
Interest expense, net	(151)	(167)
Other Nonoperating Income (Expense)	28	8
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	1,336	438
Provision for income taxes	(506)	(174)
Equity in affiliated companies’ net earnings (losses)	(2)	4
Net income from continuing operations	828	268
Net (loss) income from discontinued operations	(11)	38
Net income (loss)	817	306
Net income from continuing operations attributable to noncontrolling interests	125	75
Discontinued operations	0	(3)
Net income attributable to common stockholders	692	228
Other comprehensive income (loss)	12	11
Total comprehensive income (loss)	704	239
Eliminations [Member]
Revenues	0	0
Total costs and expenses	(1)	2
Operating income (loss)	1	(2)
Interest expense, net	102	79
Other Nonoperating Income (Expense)	(102)	(79)
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	1	(2)
Provision for income taxes	0	1
Equity in affiliated companies’ net earnings (losses)	(749)	(320)
Net income from continuing operations	(748)	(321)
Net (loss) income from discontinued operations	0	0
Net income (loss)	(748)	(321)
Net income from continuing operations attributable to noncontrolling interests	54	10
Discontinued operations		0
Net income attributable to common stockholders	(802)	(331)
Other comprehensive income (loss)	(12)	(11)
Total comprehensive income (loss)	(814)	(342)
FCX Issuer [Member] | Reportable Legal Entities [Member]
Revenues	0	0
Total costs and expenses	9	8
Operating income (loss)	(9)	(8)
Interest expense, net	(104)	(122)
Other Nonoperating Income (Expense)	101	78
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	(12)	(52)
Provision for income taxes	(83)	(60)
Equity in affiliated companies’ net earnings (losses)	787	340
Net income from continuing operations	692	228
Net (loss) income from discontinued operations	0	0
Net income (loss)	692	228
Net income from continuing operations attributable to noncontrolling interests	0	0
Discontinued operations		0
Net income attributable to common stockholders	692	228
Other comprehensive income (loss)	12	11
Total comprehensive income (loss)	704	239
FM O&G LLC Guarantor [Member] | Reportable Legal Entities [Member]
Revenues	15	13
Total costs and expenses	8	50
Operating income (loss)	7	(37)
Interest expense, net	(64)	(53)
Other Nonoperating Income (Expense)	0	0
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	(57)	(90)
Provision for income taxes	12	31
Equity in affiliated companies’ net earnings (losses)	(6)	20
Net income from continuing operations	(51)	(39)
Net (loss) income from discontinued operations	0	0
Net income (loss)	(51)	(39)
Net income from continuing operations attributable to noncontrolling interests	0	0
Discontinued operations		0
Net income attributable to common stockholders	(51)	(39)
Other comprehensive income (loss)	0	0
Total comprehensive income (loss)	(51)	(39)
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]
Revenues	4,853	3,328
Total costs and expenses	3,393	2,684
Operating income (loss)	1,460	644
Interest expense, net	(85)	(71)
Other Nonoperating Income (Expense)	29	9
Income from continuing operations before income taxes and equity in affiliated companies’ net (losses) earnings	1,404	582
Provision for income taxes	(435)	(146)
Equity in affiliated companies’ net earnings (losses)	(34)	(36)
Net income from continuing operations	935	400
Net (loss) income from discontinued operations	(11)	38
Net income (loss)	924	438
Net income from continuing operations attributable to noncontrolling interests	71	65
Discontinued operations		(3)
Net income attributable to common stockholders	853	370
Other comprehensive income (loss)	12	11
Total comprehensive income (loss)	$ 865	$ 381

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Guarantor Financial Statements (Unaudited) Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	$ 3,952	$ 4,163	$ 4,631	$ 4,403
Cash flow from operating activities:
Net cash provided by operating activities	1,369	792
Cash flow from investing activities:
Capital expenditures	(402)	(344)
Intercompany loans	0	0
Dividends from (investments in) consolidated subsidiaries	0	0
Asset sales and other, net	(90)	(17)
Net cash used in investing activities	(492)	(361)
Cash flow from financing activities:
Proceeds from debt	122	157
Repayments of debt	(1,633)	(815)
Intercompany loans	0	0
Cash dividends paid and contributions received, net	(80)	(16)
Other, net	3	(5)
Net cash used in financing activities	(1,588)	(679)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(711)	(248)
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale	32	8
Eliminations [Member]
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	0	0	0	0
Cash flow from operating activities:
Net cash provided by operating activities	0	0
Cash flow from investing activities:
Capital expenditures	0	0
Intercompany loans	184	277
Dividends from (investments in) consolidated subsidiaries	(1,769)	(920)
Asset sales and other, net	0	0
Net cash used in investing activities	(1,585)	(643)
Cash flow from financing activities:
Proceeds from debt	0	0
Repayments of debt	0	0
Intercompany loans	(184)	(277)
Cash dividends paid and contributions received, net	1,755	880
Other, net	14	40
Net cash used in financing activities	1,585	643
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	0	0
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale	0	0
Reportable Legal Entities [Member] | FCX Issuer [Member]
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	0	0	0	0
Cash flow from operating activities:
Net cash provided by operating activities	(156)	(112)
Cash flow from investing activities:
Capital expenditures	0	0
Intercompany loans	(184)	(277)
Dividends from (investments in) consolidated subsidiaries	1,746	894
Asset sales and other, net	0	0
Net cash used in investing activities	1,562	617
Cash flow from financing activities:
Proceeds from debt	0	0
Repayments of debt	(1,409)	(499)
Intercompany loans	0	0
Cash dividends paid and contributions received, net	0	(1)
Other, net	3	(5)
Net cash used in financing activities	(1,406)	(505)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	0	0
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale	0	0
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	0	8	8	11
Cash flow from operating activities:
Net cash provided by operating activities	(70)	(200)
Cash flow from investing activities:
Capital expenditures	0	(10)
Intercompany loans	0	0
Dividends from (investments in) consolidated subsidiaries	0	0
Asset sales and other, net	0	(23)
Net cash used in investing activities	0	(33)
Cash flow from financing activities:
Proceeds from debt	0	0
Repayments of debt	0	0
Intercompany loans	62	236
Cash dividends paid and contributions received, net	0	0
Other, net	0	(6)
Net cash used in financing activities	62	230
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(8)	(3)
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale	0	0
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	3,952	4,155	$ 4,623	$ 4,392
Cash flow from operating activities:
Net cash provided by operating activities	1,595	1,104
Cash flow from investing activities:
Capital expenditures	(402)	(334)
Intercompany loans	0	0
Dividends from (investments in) consolidated subsidiaries	23	26
Asset sales and other, net	(90)	6
Net cash used in investing activities	(469)	(302)
Cash flow from financing activities:
Proceeds from debt	122	157
Repayments of debt	(224)	(316)
Intercompany loans	122	41
Cash dividends paid and contributions received, net	(1,835)	(895)
Other, net	(14)	(34)
Net cash used in financing activities	(1,829)	(1,047)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(703)	(245)
Increase (Decrease) In Cash And Cash Equivalents In Assets Held For Sale	$ 32	$ 8

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New Accounting Standard (Unaudited) Restricted Cash ASU (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments for (Proceeds from) Other Investing Activities	$ (90)	$ (17)
Net Cash Provided by (Used in) Investing Activities	(492)	(361)
Cash and Cash Equivalents, Period Increase (Decrease)	(711)	(248)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,631	4,403
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	3,702
Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments for (Proceeds from) Other Investing Activities		(21)
Net Cash Provided by (Used in) Investing Activities		(365)
Cash and Cash Equivalents, Period Increase (Decrease)		(252)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	4,001	4,245
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments for (Proceeds from) Other Investing Activities		4
Net Cash Provided by (Used in) Investing Activities		4
Cash and Cash Equivalents, Period Increase (Decrease)		4
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	$ 162	$ 158

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New Accounting Standard (Unaudited) Pension/Postretirement ASU (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Mineral Extraction Processing and Marketing Costs	$ 2,808	$ 2,188
Cost of Revenue	3,259	2,577
Selling, general and administrative expenses	131	151
Mining exploration and research expenses	21	14
Environmental obligations and shutdown costs	9	25
Costs and Expenses	3,409	2,744
Operating income (loss)	1,459	597
Other Nonoperating Income (Expense)	$ 28	8
Scenario, Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Mineral Extraction Processing and Marketing Costs		2,200
Cost of Revenue		2,589
Selling, general and administrative expenses		153
Mining exploration and research expenses		15
Environmental obligations and shutdown costs		27
Costs and Expenses		2,761
Operating income (loss)		580
Other Nonoperating Income (Expense)		25
Accounting Standards Update 2017-05 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Mineral Extraction Processing and Marketing Costs		(12)
Cost of Revenue		(12)
Selling, general and administrative expenses		(2)
Mining exploration and research expenses		(1)
Environmental obligations and shutdown costs		(2)
Costs and Expenses		(17)
Operating income (loss)		17
Other Nonoperating Income (Expense)		$ (17)