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BUSINESS SEGMENTS INFORMATION
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segment Information BUSINESS SEGMENT INFORMATION
Product Revenues. FCX’s revenues attributable to the products it sold for the years ended December 31 follow:
 202020192018
Copper:
Concentrate$4,294 $4,566 $6,180 
Cathode4,204 3,656 4,366 
Rod and other refined copper products2,052 2,110 2,396 
Purchased coppera
821 1,060 1,053 
Gold1,702 1,620 3,231 
Molybdenum848 1,169 1,190 
Otherb
592 905 1,490 
Adjustments to revenues:
Treatment charges(362)(404)(535)
Royalty expensec
(165)(113)(246)
Export dutiesd
(92)(221)(180)
Revenues from contracts with customers13,894 14,348 18,945 
Embedded derivativese
304 54 (317)
Total consolidated revenues$14,198 $14,402 $18,628 
a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.Primarily includes revenues associated with cobalt and silver.
c.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d.Reflects PT-FI export duties. The year 2019 includes charges totaling $155 million primarily associated with an unfavorable Indonesia Supreme Court ruling related to certain disputed export duties (refer to Note 12).
e.Refer to Note 14 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.

Geographic Area. Information concerning financial data by geographic area follows:
December 31,
 20202019
Long-lived assets:a
  
Indonesia$15,567 $14,971 
U.S.8,420 8,834 
Peru6,989 7,215 
Chile1,172 1,084 
Other290 384 
Total$32,438 $32,488 
a.Excludes deferred tax assets and intangible assets.
Years Ended December 31,
 202020192018
Revenues:a
   
U.S.$5,248 $5,107 $5,790 
Switzerland2,032 2,223 2,941 
Indonesia1,760 1,894 2,226 
Japan1,205 1,181 1,946 
Spain785 884 1,070 
China692 531 873 
United Kingdom 491 233 296 
Germany248 311 256 
Chile221 242 294 
France153 198 255 
India152 107 389 
Korea89 140 269 
Belgium36 160 278 
Philippines34 73 221 
Bermuda— 38 207 
Other1,052 1,080 1,317 
Total$14,198 $14,402 $18,628 
a.Revenues are attributed to countries based on the location of the customer.

Major Customers and Affiliated Companies. Copper concentrate sales to PT Smelting totaled 12 percent of FCX’s consolidated revenues for the year ended December 31, 2020, 13 percent for the year ended December 31, 2019 and 12 percent for the year ended December 31, 2018, which is the only customer that accounted for 10 percent or more of FCX’s consolidated revenues during the three years ended December 31, 2020.

Consolidated revenues include sales to the noncontrolling interest owners of FCX’s South America mining operations totaling $0.9 billion in 2020, $1.0 billion in 2019 and $1.2 billion in 2018, and PT-FI’s sales to PT Smelting totaling $1.8 billion in 2020, $1.9 billion in 2019 and $2.2 billion in 2018.

Labor Matters. As of December 31, 2020, approximately 38 percent of FCX’s global labor force was covered by collective bargaining agreements, and approximately 16 percent was covered by agreements that expired and are currently being negotiated or will expire within one year. In December 2020, PT-FI signed a new agreement with one union effective April 2020 through March 2022, giving all employees the option to reject the new stipulations, but no employees have rejected the agreement. Another union filed a lawsuit in November 2020 regarding the new agreement, and the pending decision could modify the agreement.

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.

At year-end 2020, FCX’s Bagdad mine did not meet the quantitative thresholds of a reportable segment. As a result, FCX revised its segment disclosure for the years ended December 31, 2019 and 2018, to conform with the current year presentation.

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 segments, including Atlantic Copper Smelting & Refining, 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 Financial Information by Business Segment 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.

North America Copper Mines. FCX operates seven open-pit copper mines in North America – Morenci, Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCX’s Rod & Refining segment. In addition to copper, certain of FCX’s North America copper mines also produce molybdenum concentrate, gold and silver.

The Morenci open-pit mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate. The Morenci mine produced 50 percent of FCX’s North America copper during 2020.

South America Mining. South America mining includes two operating copper mines – Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations.

The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver. The Cerro Verde mine produced 84 percent of FCX’s South America copper during 2020.

Indonesia Mining. Indonesia mining includes PT-FI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver.
 
Molybdenum Mines. Molybdenum mines include the wholly owned Henderson underground mine and 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.

Rod & Refining. The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery and two rod mills, which are combined in accordance with segment reporting aggregation guidance. These operations process copper produced at FCX’s North America copper mines and purchased copper into copper cathode, rod and custom copper shapes. At times these operations refine copper and produce copper rod and shapes for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products.

Atlantic Copper Smelting & Refining. Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes. During 2020, Atlantic Copper purchased 10 percent of its concentrate requirements from FCX’s North America copper mines, 7 percent from FCX’s South America mining operations and 4 percent from FCX’s Indonesia mining operations, with the remainder purchased from unaffiliated third parties.
Corporate, Other & Eliminations. Corporate, Other & Eliminations consists of FCX’s other mining, oil and gas operations and other corporate and elimination items. Other mining includes the Miami smelter (a smelter at FCX’s Miami, Arizona, mining operation), Freeport Cobalt, molybdenum conversion facilities in the U.S. and Europe, five non-operating copper mines in North America (Ajo, Bisbee, Tohono, Twin Buttes and Christmas in Arizona) and other mining support entities.
Financial Information by Business Segment
North America Copper MinesSouth America Mining     
AtlanticCorporate,
CopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalMiningMinesRefining& RefiningnationsTotal
Year Ended December 31, 2020          
Revenues:           
Unaffiliated customers$29 $48 $77 $2,282 $431 $2,713 $3,534 $— $4,781 $2,020 $1,073 
a
$14,198 
Intersegment2,015 2,272 4,287 242 — 

242 80 222 33 17 (4,881)— 
Production and delivery1,269 1,831 3,100 1,599 

379 1,978 1,606 230 4,819 1,962 (3,664)

10,031 
Depreciation, depletion and amortization166 189 355 367 54 421 580 57 16 29 70 1,528 
Metals inventory adjustments4 48 52 — 3 3 — 10 3 — 28 96 
Selling, general and administrative expenses2 2 4 6 — 6 108 — — 21 231 

370 
Mining exploration and research expenses— 2 2 — — — — — — — 48 50 
Environmental obligations and shutdown costs— (1)(1)— — — — — 1 — 159 
b
159 
Net gain on sales of assets— — — — — — — — — — (473)
c
(473)
Operating income (loss)603 249 852 552 
d
(5)547 1,320 (75)(25)
d
25 

(207)
d
2,437 
d
Interest expense, net2 — 2 139 

— 139 39 
e
— — 6 412 598 
Provision for income taxes— — — 238 

1 239 606 — — 2 97 
f
944 
Total assets at December 31, 20202,574 5,163 7,737 8,474 1,678 10,152 17,169 1,760 211 877 4,238 42,144 
Capital expenditures102 326 428 141 42 183 1,266 19 6 29 30 1,961 

a.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.
b.Includes charges totaling $130 million associated with a framework for the resolution of all current and future potential talc-related litigation.
c.Includes a $486 million gain associated with the sale of FCX’s interests in the Kisanfu undeveloped project. Refer to Note 2 for further discussion.
d.Includes charges totaling $258 million associated with (i) idle facility costs (Cerro Verde), contract cancellation and other charges directly related to the COVID-19 pandemic and (ii) the April 2020 revised operating plans (including employee separation costs). These charges were primarily recorded in the Cerro Verde segment ($89 million), Corporate, Other & Eliminations ($57 million) and the Rod & Refining segment ($30 million).
e.Includes charges totaling $35 million associated with PT-FI's historical contested tax audits.
f.Includes tax charges totaling $135 million associated with the sale of the Kisanfu undeveloped project, partly offset by tax credits of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.
North America Copper MinesSouth America Mining     
AtlanticCorporate,
CopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalMiningMinesRefining& RefiningnationsTotal
Year Ended December 31, 2019           
Revenues:            
Unaffiliated customers$143 $224 $367 $2,576 $499 $3,075 $2,713 
a
$— $4,457 $2,063 $1,727 
b
$14,402 
Intersegment1,864 2,155 4,019 313 — 313 58 344 26 5 (4,765)— 
Production and delivery1,376 1,943 3,319 1,852 474 2,326 2,055 
c
299 4,475 1,971 (2,911)11,534 
Depreciation, depletion and amortization171 178 349 406 68 474 406 62 9 28 84 1,412 
Metals inventory adjustments1 29 30 2 — 2 5 50 — — 92 179 
Selling, general and administrative expenses2 2 4 8 — 8 125 — — 20 237 394 
Mining exploration and research expenses— 2 2 — — — — — — — 102 104 
Environmental obligations and shutdown costs1 — 1 — — — — — — — 104 105 
Net gain on sales of assets— — — — — — — — — — (417)
d
(417)
Operating income (loss)456 225 681 621 (43)578 180 (67)(1)49 (329)1,091 
Interest expense, net3 1 4 114 — 114 82 
c
— — 22 398 620 
Provision for (benefit from) income taxes— — — 250 (11)239 167 
c
— — 5 99 
e
510 
Total assets at December 31, 20192,880 5,109 7,989 8,612 1,676 10,288 16,485 1,798 193 761 3,295 40,809 
Capital expenditures231 646 877 232 24 256 1,369 19 5 34 92 2,652 

a.Includes charges totaling $155 million associated with an unfavorable Indonesia Supreme Court ruling related to PT-FI export duties. Refer to Note 12 for further discussion.
b.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.
c.Includes net charges totaling $28 million in production and delivery costs for an adjustment to the settlement of the historical surface water tax matters with the local regional tax authority in Papua, Indonesia, and $78 million in interest expense and $103 million of tax charges in provision for income taxes associated with PT-FI’s historical contested tax disputes.
d.Includes net gains totaling $343 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $59 million for the sale of a portion of Freeport Cobalt. Refer to Note 2 for further discussion.
e.Includes tax charges totaling $53 million associated with the sale of FCX’s interest in the lower zone of the Timok exploration project and $49 million primarily to adjust deferred taxes on historical balance sheet items in accordance with tax accounting principles.
North America Copper MinesSouth America Mining     
AtlanticCorporate,
CopperOther
CerroIndonesiaMolybdenumRod &Smelting& Elimi-FCX
MorenciOtherTotalVerdeOtherTotalMiningMinesRefining& RefiningnationsTotal
Year Ended December 31, 2018           
Revenues:            
Unaffiliated customers$90 $54 $144 $2,709 $594 $3,303 $5,446 $— $5,103 $2,299 $2,333 
a
$18,628 
Intersegment2,051 2,499 4,550 352 — 

352 113 410 31 3 (5,459)— 
Production and delivery1,183 1,941 3,124 1,887 
b,c
478 2,365 1,864 
d
289 5,117 2,218 (3,269)

11,708 
Depreciation, depletion and amortization176 184 360 456 90 546 606 79 11 27 125 
e
1,754 
Metals inventory adjustments— 4 4 — — — — — — — — 4 
Selling, general and administrative expenses3 3 6 9 — 9 123 — — 21 263 422 
Mining exploration and research expenses— 3 3 — — — — — — — 102 105 
Environmental obligations and shutdown costs— 2 2 — — — — — — — 87 89 
Net gain on sales of assets— — — — — — — — — — (208)
f
(208)
Operating income (loss)779 416 1,195 709 26 735 2,966 42 6 36 (226)4,754 
Interest expense, net3 1 4 429 
b
— 429 1 — — 25 486 945 
Provision for (benefit from) income taxes— — — 253 
b
15 268 755 
g
— — 1 (33)
h
991 
Total assets at December 31, 20182,922 4,608 7,530 8,524 1,707 10,231 15,646 1,796 233 773 6,007 

42,216 
Capital expenditures216 385 601 220 17 237 1,001 9 5 16 102 

1,971 

a.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.
b.Includes net charges totaling $14 million in production and delivery costs, $370 million in interest expense and $35 million of net tax benefits in provision for income taxes associated with disputed royalties for prior years.
c.Includes charges totaling $69 million associated with Cerro Verde’s three-year collective labor agreement.
d.Includes net charges of $223 million, primarily associated with surface water tax disputes with the local regional tax authority in Papua, Indonesia, assessments for prior period permit fees with Indonesia’s MOEF, disputed payroll withholding taxes for prior years and other tax settlements, and to write-off certain previously capitalized project costs for the new smelter in Indonesia, partially offset by inventory adjustments.
e.Includes $31 million of depreciation expense at Freeport Cobalt from December 2016 through December 2017 that was suspended while it was classified as held for sale.
f.Includes net gains totaling $97 million associated with a favorable adjustment to the estimated fair value less costs to sell for Freeport Cobalt and fair value adjustments of $31 million associated with potential contingent consideration related to the 2016 sale of onshore California oil and gas properties.
g.Includes tax credits totaling $549 million related to the change in PT-FI’s tax rates in accordance with its IUPK ($482 million), U.S. tax reform ($47 million) and adjustments to PT-FI’s historical tax positions ($20 million).
h.Includes net tax credits totaling $76 million, primarily related to the Act and $22 million related to the change in PT-FI’s tax rates in accordance with its IUPK. Refer to Note 11 for further discussion.