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Guarantor Financial Statements (Unaudited)
 3 Months Ended
Mar. 31, 2019
Guarantor Financial Statements [Abstract]  
Guarantor Financial Statements GUARANTOR FINANCIAL STATEMENTS

All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by Freeport McMoRan Oil & Gas LLC (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, 2019, and December 31, 2018, and the related condensed consolidating statements of comprehensive income (loss) and cash flows for the three months ended March 31, 2019 and 2018 (in millions), which should be read in conjunction with FCX’s notes to the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET
March 31, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
253

 
$
516

 
$
8,801

 
$
(525
)
 
$
9,045

Property, plant, equipment and mine development costs, net
19

 
6

 
28,470

 
2

 
28,497

Investments in consolidated subsidiaries
17,935

 
—

 
—

 
(17,935
)
 
—

Other assets
977

 
23

 
3,250

 
(733
)
 
3,517

Total assets
$
19,184

 
$
545

 
$
40,521

 
$
(19,191
)
 
$
41,059

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
199

 
$
30

 
$
3,579

 
$
(561
)
 
$
3,247

Long-term debt, less current portion
8,595

 
7,005

 
5,563

 
(11,261
)
 
9,902

Deferred income taxes
519

a 
—

 
3,548

 
—

 
4,067

Environmental and asset retirement obligations, less current portion
—

 
230

 
3,402

 
—

 
3,632

Investments in consolidated subsidiaries
—

 
574

 
10,634

 
(11,208
)
 
—

Other liabilities
88

 
3,340

 
2,428

 
(3,486
)
 
2,370

Total liabilities
9,401

 
11,179

 
29,154

 
(26,516
)
 
23,218

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,783

 
(10,634
)
 
8,721

 
1,913

 
9,783

Noncontrolling interests
—

 
—

 
2,646

 
5,412

 
8,058

Total equity
9,783

 
(10,634
)
 
11,367

 
7,325

 
17,841

Total liabilities and equity
$
19,184

 
$
545

 
$
40,521

 
$
(19,191
)
 
$
41,059

a.
All U.S.-related deferred income taxes are recorded at the parent company.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2018
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
309

 
$
620

 
$
10,376

 
$
(585
)
 
$
10,720

Property, plant, equipment and mine development costs, net
19

 
7

 
27,984

 
—

 
28,010

Investments in consolidated subsidiaries
19,064

 
—

 
—

 
(19,064
)
 
—

Other assets
880

 
23

 
3,218

 
(635
)
 
3,486

Total assets
20,272

 
650

 
41,578

 
(20,284
)
 
42,216

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
245

 
$
34

 
$
3,667

 
$
(617
)
 
$
3,329

Long-term debt, less current portion
9,594

 
6,984

 
5,649

 
(11,103
)
 
11,124

Deferred income taxes
524

a 
—

 
3,508

 
—

 
4,032

Environmental and asset retirement obligations, less current portion
—

 
227

 
3,382

 
—

 
3,609

Investments in consolidated subsidiaries
—

 
578

 
10,513

 
(11,091
)
 
—

Other liabilities
111

 
3,340

 
2,265

 
(3,486
)
 
2,230

Total liabilities
10,474

 
11,163

 
28,984

 
(26,297
)
 
24,324

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,798

 
(10,513
)
 
9,912

 
601

 
9,798

Noncontrolling interests
—

 
—

 
2,682

 
5,412

 
8,094

Total equity
9,798

 
(10,513
)
 
12,594

 
6,013

 
17,892

Total liabilities and equity
20,272

 
650

 
41,578

 
(20,284
)
 
42,216

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, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
3

 
$
3,789

 
$
—

 
$
3,792

Total costs and expenses
13

 
—

 
3,460

 
(2
)
 
3,471

Operating (loss) income
(13
)
 
3

 
329

 
2

 
321

Interest expense, net
(90
)
 
(86
)
 
(109
)
 
139

 
(146
)
Other income (expense), net
65

 
—

 
16

 
(73
)
 
8

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
(38
)
 
(83
)
 
236

 
68

 
183

(Provision for) benefit from income taxes
(1
)
 
18

 
(122
)
 
—

 
(105
)
Equity in affiliated companies’ net earnings (losses)
70

 
5

 
(63
)
 
(15
)
 
(3
)
Net income (loss) from continuing operations
31

 
(60
)
 
51

 
53

 
75

Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net income (loss)
31

 
(60
)
 
52

 
53

 
76

Net income attributable to noncontrolling interests
—

 
—

 
(34
)
 
(11
)
 
(45
)
Net income (loss) attributable to common stockholders
$
31

 
$
(60
)
 
$
18

 
$
42

 
$
31

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
42

 
$
(60
)
 
$
29

 
$
31

 
$
42

 
 
 
 
 
 
 
 
 
 
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
—

 
—

 
(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

 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
19

 
$
(106
)
 
$
621

 
$
—

 
$
534

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(622
)
 
—

 
(622
)
Intercompany loans
(159
)
 
—

 
—

 
159

 
—

Dividends from (investments in) consolidated subsidiaries
1,224

 
—

 
25

 
(1,251
)
 
(2
)
Asset sales and other, net
(1
)
 
84

 
(5
)
 
—

 
78

Net cash provided by (used in) investing activities
1,064

 
84

 
(602
)
 
(1,092
)
 
(546
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
114

 
—

 
114

Repayments of debt
(1,003
)
 
—

 
(353
)
 
—

 
(1,356
)
Intercompany loans
—

 
22

 
137

 
(159
)
 
—

Cash dividends paid and contributions received, net
(73
)
 
—

 
(1,242
)
 
1,233

 
(82
)
Other, net
(7
)
 
—

 
(18
)
 
18

 
(7
)
Net cash (used in) provided by financing activities
(1,083
)
 
22

 
(1,362
)
 
1,092

 
(1,331
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,343
)
 
—

 
(1,343
)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
—

 
4,455

 
—

 
4,455

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
3,112

 
$
—

 
$
3,112

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
)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
8

 
4,702

 
—

 
4,710

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
—

 
$
—

 
$
3,999

 
$
—

 
$
3,999