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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2022
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 and Cerro Verde copper mines, the Grasberg minerals district (Indonesia Mining), 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 segments, including Atlantic Copper Smelting & Refining, and on 39.5 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.

Product Revenues. FCX’s revenues attributable to the products it sold for the second quarters and first six months of 2022 and 2021 follow (in millions):

Three Months EndedSix Months Ended
June 30,June 30,
 2022202120222021
Copper:
Concentrate$2,694 $2,076 $5,385 $3,785 
Cathode1,183 1,535 2,618 2,769 
Rod and other refined copper products1,071 833 2,187 1,517 
Purchased coppera
104 310 174 528 
Gold909 597 1,720 1,115 
Molybdenum377 288 755 532 
Other165 203 353 456 
Adjustments to revenues:
Treatment charges(139)(101)(272)(198)
Royalty expenseb
(111)(82)(206)(145)
Export dutiesc
(84)(44)(182)
d
(73)
Revenues from contracts with customers6,169 5,615 12,532 10,286 
Embedded derivativese
(753)133 (513)312 
Total consolidated revenues$5,416 $5,748 $12,019 $10,598 
a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
c.Reflects PT-FI export duties.
d.Includes a charge of $18 million associated with an adjustment to prior-period export duties.
e.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.