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Guarantor Financial Statements (Unaudited)
 6 Months Ended
Jun. 30, 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 FCX Oil & Gas LLC (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 June 30, 2019, and December 31, 2018, and the related condensed consolidating statements of comprehensive (loss) income for the three and six months ended June 30, 2019 and 2018, and the condensed consolidating statements of cash flows for the six months ended June 30, 2019 and 2018 (in millions), which should be read in conjunction with the other notes in these consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
84

 
$
570

 
$
8,634

 
$
(558
)
 
$
8,730

Property, plant, equipment and mine development costs, net
18

 
2

 
28,821

 
—

 
28,841

Investments in consolidated subsidiaries
17,773

 
—

 
—

 
(17,773
)
 
—

Other assets
1,335

 
21

 
3,252

 
(1,093
)
 
3,515

Total assets
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
255

 
$
55

 
$
3,574

 
$
(598
)
 
$
3,286

Long-term debt, less current portion
8,595

 
7,097

 
5,963

 
(11,743
)
 
9,912

Deferred income taxes
561

a 
—

 
3,494

 
—

 
4,055

Environmental and asset retirement obligations, less current portion
—

 
234

 
3,383

 
—

 
3,617

Investments in consolidated subsidiaries
—

 
594

 
10,728

 
(11,322
)
 
—

Other liabilities
90

 
3,340

 
2,456

 
(3,487
)
 
2,399

Total liabilities
9,501

 
11,320

 
29,598

 
(27,150
)
 
23,269

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,709

 
(10,727
)
 
8,455

 
2,272

 
9,709

Noncontrolling interests
—

 
—

 
2,654

 
5,454

 
8,108

Total equity
9,709

 
(10,727
)
 
11,109

 
7,726

 
17,817

Total liabilities and equity
$
19,210

 
$
593

 
$
40,707

 
$
(19,424
)
 
$
41,086

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 (LOSS) INCOME


 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
13

 
$
3,533

 
$
—

 
$
3,546

Total costs and expenses
4

 
26

 
3,481

 
2

 
3,513

Operating (loss) income
(4
)
 
(13
)
 
52

 
(2
)
 
33

Interest expense, net
(83
)
 
(82
)
 
(102
)
 
135

 
(132
)
Other (expense) income, net
(1
)
 
—

 
7

 
(1
)
 
5

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(88
)
 
(95
)
 
(43
)
 
132

 
(94
)
(Provision for) benefit from income taxes
(7
)
 
22

 
—

 
—

 
15

Equity in affiliated companies’ net earnings (losses)
23

 
(21
)
 
(89
)
 
92

 
5

Net (loss) income
(72
)
 
(94
)
 
(132
)
 
224

 
(74
)
Net (income) loss attributable to noncontrolling interests
—

 
—

 
(8
)
 
10

 
2

Net (loss) income attributable to common stockholders
$
(72
)
 
$
(94
)
 
$
(140
)
 
$
234

 
$
(72
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(60
)
 
$
(94
)
 
$
(128
)
 
$
222

 
$
(60
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
16

 
$
5,152

 
$
—

 
$
5,168

Total costs and expenses
4

 
(16
)
 
3,525

 
(9
)
 
3,504

Operating (loss) income
(4
)
 
32

 
1,627

 
9

 
1,664

Interest expense, net
(97
)
 
(76
)
 
(92
)
 
123

 
(142
)
Other income (expense), net
132

 
2

 
18

 
(123
)
 
29

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
31

 
(42
)
 
1,553

 
9

 
1,551

(Provision for) benefit from income taxes
(11
)
 
10

 
(512
)
 
(2
)
 
(515
)
Equity in affiliated companies’ net earnings (losses)
849

 
2

 
(45
)
 
(803
)
 
3

Net income (loss) from continuing operations
869

 
(30
)
 
996

 
(796
)
 
1,039

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
869

 
(30
)
 
992

 
(796
)
 
1,035

Net income attributable to noncontrolling interests
—

 
—

 
(102
)
 
(64
)
 
(166
)
Net income (loss) attributable to common stockholders
$
869

 
$
(30
)
 
$
890

 
$
(860
)
 
$
869

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
880

 
$
(30
)
 
$
901

 
$
(871
)
 
$
880

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
16

 
$
7,322

 
$
—

 
$
7,338

Total costs and expenses
17

 
26

 
6,941

 
—

 
6,984

Operating (loss) income
(17
)
 
(10
)
 
381

 
—

 
354

Interest expense, net
(173
)
 
(168
)
 
(211
)
 
274

 
(278
)
Other income (expense), net
64

 
—

 
23

 
(74
)
 
13

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(126
)
 
(178
)
 
193

 
200

 
89

(Provision for) benefit from income taxes
(8
)
 
40

 
(122
)
 
—

 
(90
)
Equity in affiliated companies’ net earnings (losses)
93

 
(16
)
 
(152
)
 
77

 
2

Net (loss) income from continuing operations
(41
)
 
(154
)
 
(81
)
 
277

 
1

Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(41
)
 
(154
)
 
(80
)
 
277

 
2

Net income attributable to noncontrolling interests
—

 
—

 
(42
)
 
(1
)
 
(43
)
Net (loss) income attributable to common stockholders
$
(41
)
 
$
(154
)
 
$
(122
)
 
$
276

 
$
(41
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive (loss) income
$
(18
)
 
$
(154
)
 
$
(99
)
 
$
253

 
$
(18
)
 
 
 
 
 
 
 
 
 
 

Six Months Ended June 30, 2018
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
31

 
$
10,005

 
$
—

 
$
10,036

Total costs and expenses
13

 
(8
)
 
6,918

 
(10
)
 
6,913

Operating (loss) income
(13
)
 
39

 
3,087

 
10

 
3,123

Interest expense, net
(201
)
 
(140
)
 
(177
)
 
225

 
(293
)
Other income (expense), net
233

 
2

 
47

 
(225
)
 
57

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
19

 
(99
)
 
2,957

 
10

 
2,887

(Provision for) benefit from income taxes
(94
)
 
22

 
(947
)
 
(2
)
 
(1,021
)
Equity in affiliated companies’ net earnings (losses)
1,636

 
(4
)
 
(79
)
 
(1,552
)
 
1

Net income (loss) from continuing operations
1,561

 
(81
)
 
1,931

 
(1,544
)
 
1,867

Net loss from discontinued operations
—

 
—

 
(15
)
 
—

 
(15
)
Net income (loss)
1,561

 
(81
)
 
1,916

 
(1,544
)
 
1,852

Net income attributable to noncontrolling interests

—

 
—

 
(173
)
 
(118
)
 
(291
)
Net income (loss) attributable to common stockholders
$
1,561

 
$
(81
)
 
$
1,743

 
$
(1,662
)
 
$
1,561

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
23

 
—

 
23

 
(23
)
 
23

Total comprehensive income (loss)
$
1,584

 
$
(81
)
 
$
1,766

 
$
(1,685
)
 
$
1,584

 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
330

 
$
(204
)
 
$
962

 
$
—

 
$
1,088

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
(1,251
)
 
—

 
(1,251
)
Intercompany loans
(640
)
 
—

 
—

 
640

 
—

Dividends from (investments in) consolidated subsidiaries
1,470

 
—

 
47

 
(1,519
)
 
(2
)
Asset sales and other, net
(1
)
 
91

 
(4
)
 
—

 
86

Net cash provided by (used in) investing activities
829

 
91

 
(1,208
)
 
(879
)
 
(1,167
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
328

 
—

 
328

Repayments of debt
(1,003
)
 
—

 
(560
)
 
—

 
(1,563
)
Intercompany loans
—

 
113

 
527

 
(640
)
 
—

Cash dividends paid and contributions received, net
(146
)
 
—

 
(1,478
)
 
1,499

 
(125
)
Other, net
(10
)
 
—

 
(20
)
 
20

 
(10
)
Net cash (used in) provided by financing activities
(1,159
)
 
113

 
(1,203
)
 
879

 
(1,370
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,449
)
 
—

 
(1,449
)
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
$
—

 
$
—

 
$
3,006

 
$
—

 
$
3,006

Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(163
)
 
$
(184
)
 
$
3,025

 
$
—

 
$
2,678

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(2
)
 
—

 
(882
)
 
—

 
(884
)
Intercompany loans
(442
)
 
—

 
—

 
442

 
—

Dividends from (investments in) consolidated subsidiaries
2,519

 
—

 
45

 
(2,564
)
 
—

Asset sales and other, net
4

 
1

 
(91
)
 
—

 
(86
)
Net cash provided by (used in) investing activities
2,079

 
1

 
(928
)
 
(2,122
)
 
(970
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
352

 
—

 
352

Repayments of debt
(1,826
)
 
(52
)
 
(419
)
 
—

 
(2,297
)
Intercompany loans
—

 
228

 
214

 
(442
)
 
—

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

 
(2,789
)
 
2,548

 
(314
)
Other, net
(17
)
 
—

 
(17
)
 
16

 
(18
)
Net cash (used in) provided by financing activities
(1,916
)
 
176

 
(2,659
)
 
2,122

 
(2,277
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
(562
)
 
—

 
(569
)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
—

 
7

 
4,703

 
—

 
4,710

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

 
$
—

 
$
4,141

 
$
—

 
$
4,141