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Guarantor Financial Statements (Unaudited)
 9 Months Ended
Sep. 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 September 30, 2019, and December 31, 2018, and the related condensed consolidating statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidating statements of cash flows for the nine months ended September 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
September 30, 2019
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
$
46

 
$
606

 
$
8,298

 
$
(603
)
 
$
8,347

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

 
5

 
29,300

 
7

 
29,330

Investments in consolidated subsidiaries
17,523

 
—

 
—

 
(17,523
)
 
—

Other assets
1,340

 
17

 
3,008

 
(1,099
)
 
3,266

Total assets
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
$
312

 
$
42

 
$
3,662

 
$
(635
)
 
$
3,381

Long-term debt, less current portion
8,600

 
7,215

 
6,003

 
(11,903
)
 
9,915

Deferred income taxes
498

a 
—

 
3,747

 
—

 
4,245

Environmental and asset retirement obligations, less current portion
—

 
237

 
3,321

 
—

 
3,558

Investments in consolidated subsidiaries
—

 
630

 
10,837

 
(11,467
)
 
—

Other liabilities
73

 
3,341

 
2,376

 
(3,488
)
 
2,302

Total liabilities
9,483

 
11,465

 
29,946

 
(27,493
)
 
23,401

 
 
 
 
 
 
 
 
 
 
Equity:
 
 
 
 
 
 
 
 
 
Stockholders’ equity
9,444

 
(10,837
)
 
8,028

 
2,809

 
9,444

Noncontrolling interests
—

 
—

 
2,632

 
5,466

 
8,098

Total equity
9,444

 
(10,837
)
 
10,660

 
8,275

 
17,542

Total liabilities and equity
$
18,927

 
$
628

 
$
40,606

 
$
(19,218
)
 
$
40,943

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

 
$
11

 
$
3,142

 
$
—

 
$
3,153

Total costs and expenses
5

 
28

 
3,165

 
(7
)
 
3,191

Operating (loss) income
(5
)
 
(17
)
 
(23
)
 
7

 
(38
)
Interest expense, net
(79
)
 
(79
)
 
(98
)
 
133

 
(123
)
Other (expense) income, net
(52
)
 
—

 
36

 
28

 
12

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(136
)
 
(96
)
 
(85
)
 
168

 
(149
)
(Provision for) benefit from income taxes
(26
)
 
22

 
(85
)
 
(2
)
 
(91
)
Equity in affiliated companies’ net earnings (losses)
(45
)
 
(36
)
 
(105
)
 
191

 
5

Net (loss) income from continuing operations
(207
)
 
(110
)
 
(275
)
 
357

 
(235
)
Net income from discontinued operations
—

 
—

 
1

 
—

 
1

Net (loss) income
(207
)
 
(110
)
 
(274
)
 
357

 
(234
)
Net loss (income) attributable to noncontrolling interests
—

 
—

 
22

 
5

 
27

Net (loss) income attributable to common stockholders
$
(207
)
 
$
(110
)
 
$
(252
)
 
$
362

 
$
(207
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
12

 
—

 
12

 
(12
)
 
12

Total comprehensive (loss) income
$
(195
)
 
$
(110
)
 
$
(240
)
 
$
350

 
$
(195
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
Revenues
$
—

 
$
15

 
$
4,893

 
$
—

 
$
4,908

Total costs and expenses
7

 
(2
)
 
3,588

 
—

 
3,593

Operating (loss) income
(7
)
 
17

 
1,305

 
—

 
1,315

Interest expense, net
(93
)
 
(79
)
 
(96
)
 
125

 
(143
)
Other income (expense), net
124

 
—

 
15

 
(125
)
 
14

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
24

 
(62
)
 
1,224

 
—

 
1,186

(Provision for) benefit from income taxes
(188
)
 
11

 
(345
)
 
—

 
(522
)
Equity in affiliated companies’ net earnings (losses)
720

 
(6
)
 
(54
)
 
(656
)
 
4

Net income (loss) from continuing operations
556

 
(57
)
 
825

 
(656
)
 
668

Net loss from discontinued operations
—

 
—

 
(4
)
 
—

 
(4
)
Net income (loss)
556

 
(57
)
 
821

 
(656
)
 
664

Net income attributable to noncontrolling interests
—

 
—

 
(47
)
 
(61
)
 
(108
)
Net income (loss) attributable to common stockholders
$
556

 
$
(57
)
 
$
774

 
$
(717
)
 
$
556

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
11

 
—

 
11

 
(11
)
 
11

Total comprehensive income (loss)
$
567

 
$
(57
)
 
$
785

 
$
(728
)
 
$
567

 
 
 
 
 
 
 
 
 
 














CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME


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

 
$
27

 
$
10,464

 
$
—

 
$
10,491

Total costs and expenses
22

 
54

 
10,106

 
(7
)
 
10,175

Operating (loss) income
(22
)
 
(27
)
 
358

 
7

 
316

Interest expense, net
(252
)
 
(247
)
 
(309
)
 
407

 
(401
)
Other income (expense), net
12

 
—

 
59

 
(46
)
 
25

(Loss) income before income taxes and equity in affiliated companies’ net earnings (losses)
(262
)
 
(274
)
 
108

 
368

 
(60
)
(Provision for) benefit from income taxes
(34
)
 
62

 
(207
)
 
(2
)
 
(181
)
Equity in affiliated companies’ net earnings (losses)
48

 
(52
)
 
(257
)
 
268

 
7

Net (loss) income from continuing operations
(248
)
 
(264
)
 
(356
)
 
634

 
(234
)
Net income from discontinued operations
—

 
—

 
2

 
—

 
2

Net (loss) income
(248
)
 
(264
)
 
(354
)
 
634

 
(232
)
Net income attributable to noncontrolling interests
—

 
—

 
(20
)
 
4

 
(16
)
Net (loss) income attributable to common stockholders
$
(248
)
 
$
(264
)
 
$
(374
)
 
$
638

 
$
(248
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
35

 
—

 
35

 
(35
)
 
35

Total comprehensive (loss) income
$
(213
)
 
$
(264
)
 
$
(339
)
 
$
603

 
$
(213
)
 
 
 
 
 
 
 
 
 
 

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

 
$
46

 
$
14,898

 
$
—

 
$
14,944

Total costs and expenses
20

 
(10
)
 
10,506

 
(10
)
 
10,506

Operating (loss) income
(20
)
 
56

 
4,392

 
10

 
4,438

Interest expense, net
(294
)
 
(219
)
 
(273
)
 
350

 
(436
)
Other income (expense), net
357

 
2

 
62

 
(350
)
 
71

Income (loss) before income taxes and equity in affiliated companies’ net earnings (losses)
43

 
(161
)
 
4,181

 
10

 
4,073

(Provision for) benefit from income taxes
(282
)
 
33

 
(1,292
)
 
(2
)
 
(1,543
)
Equity in affiliated companies’ net earnings (losses)
2,356

 
(10
)
 
(133
)
 
(2,208
)
 
5

Net income (loss) from continuing operations
2,117

 
(138
)
 
2,756

 
(2,200
)
 
2,535

Net loss from discontinued operations
—

 
—

 
(19
)
 
—

 
(19
)
Net income (loss)
2,117

 
(138
)
 
2,737

 
(2,200
)
 
2,516

Net income attributable to noncontrolling interests

—

 
—

 
(220
)
 
(179
)
 
(399
)
Net income (loss) attributable to common stockholders
$
2,117

 
$
(138
)
 
$
2,517

 
$
(2,379
)
 
$
2,117

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
34

 
—

 
34

 
(34
)
 
34

Total comprehensive income (loss)
$
2,151

 
$
(138
)
 
$
2,551

 
$
(2,413
)
 
$
2,151

 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash provided by (used in) operating activities
$
352

 
$
(326
)
 
$
1,286

 
$
—

 
$
1,312

 
 
 
 
 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
(4
)
 
(1,913
)
 
—

 
(1,917
)
Intercompany loans
(801
)
 
—

 
—

 
801

 
—

Dividends from (investments in) consolidated subsidiaries
1,697

 
—

 
70

 
(1,769
)
 
(2
)
Asset sales and other, net
(1
)
 
98

 
(3
)
 
—

 
94

Net cash provided by (used in) investing activities
895

 
94

 
(1,846
)
 
(968
)
 
(1,825
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
1,200

 
—

 
481

 
—

 
1,681

Repayments of debt
(2,202
)
 
—

 
(715
)
 
—

 
(2,917
)
Intercompany loans
—

 
232

 
570

 
(802
)
 
—

Cash dividends paid and contributions received, net
(218
)
 
—

 
(1,696
)
 
1,750

 
(164
)
Other, net
(27
)
 
—

 
(23
)
 
20

 
(30
)
Net cash (used in) provided by financing activities
(1,247
)
 
232

 
(1,383
)
 
968

 
(1,430
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
—

 
(1,943
)
 
—

 
(1,943
)
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
$
—

 
$
—

 
$
2,512

 
$
—

 
$
2,512

Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
FCX
 
FM O&G LLC
 
Non-guarantor
 
 
 
Consolidated
 
Issuer
 
Guarantor
 
Subsidiaries
 
Eliminations
 
FCX
 Net cash (used in) provided by operating activities
$
(181
)
 
$
(285
)
 
$
4,391

 
$
—

 
$
3,925

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

 
(1,389
)
 
—

 
(1,391
)
Intercompany loans
(558
)
 
—

 
—

 
558

 
—

Dividends from (investments in) consolidated subsidiaries
2,726

 
—

 
65

 
(2,791
)
 
—

Asset sales and other, net
4

 
3

 
(88
)
 
—

 
(81
)
Net cash provided by (used in) investing activities
2,170

 
3

 
(1,412
)
 
(2,233
)
 
(1,472
)
 
 
 
 
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt
—

 
—

 
475

 
—

 
475

Repayments of debt
(1,826
)
 
(52
)
 
(532
)
 
—

 
(2,410
)
Intercompany loans
—

 
327

 
231

 
(558
)
 
—

Cash dividends paid and contributions received, net
(145
)
 
—

 
(3,016
)
 
2,775

 
(386
)
Other, net
(18
)
 
—

 
(17
)
 
16

 
(19
)
Net cash (used in) provided by financing activities
(1,989
)
 
275

 
(2,859
)
 
2,233

 
(2,340
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents
—

 
(7
)
 
120

 
—

 
113

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
$
—

 
$
—

 
$
4,823

 
$
—

 
$
4,823