Business Segments (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from External Customers by Products and Services

Product Revenues. FCX’s revenues attributable to the products it sold for the first quarters of 2023 and 2022 follow (in millions):


	Three Months Ended
	March 31,
	2023		2022
Copper:
Concentrate	$	1,587	$	2,691
Cathode	1,327		1,435
Rod and other refined copper products	921		1,116
Purchased coppera	204		70
Molybdenum	592		378
Gold	531		811
Otherb	133		188
Adjustments to revenues:
Treatment chargesc	(101)		(133)
Royalty expensed	(60)		(95)
PT-FI export dutiese	(18)		(98)		f
Revenues from contracts with customers	5,116		6,363
Embedded derivativesg	273		240
Total consolidated revenues	$	5,389	$	6,603

a.FCX purchases copper cathode primarily for processing by its Rod & Refining operations.

b.Primarily includes revenues associated with silver.

c.First-quarter 2023 treatment charges exclude tolling costs paid to PT Smelting, which are recorded as production costs in the consolidated statements of income.

d.Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.

e.Refer to Note 8 for further discussion of PT-FI export duties.

f.Includes a charge of $18 million associated with an adjustment to prior-period export duties.

g.Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.

Schedule of Segment Reporting Information, by Segment

Financial Information by Business Segment



(In millions)

																				Atlantic			Corporate,
	North America Copper Mines				South America Mining													Copper				Other
							Cerro						Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde		Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Three Months Ended March 31, 2023
Revenues:
Unaffiliated customers	$	32	$	97	$	129	$	958	$	234	$	1,192	$	1,199	a	$	—	$	1,523	$	749		$	597	b	$	5,389
Intersegment	593		948		1,541		244		—		244		169			223		6		7			(2,190)			—
Production and delivery	381		781		1,162		620		187		807		335			96		1,527		734			(1,496)			3,165
Depreciation, depletion and amortization	43		60		103		91		16		107		148			20		1		7			13			399


Selling, general and administrative expenses	—		1		1		2		—		2		28			—		—		8			87			126
Mining exploration and research expenses	—		—		—		—		—		—		—			—		—		—			31			31
Environmental obligations and shutdown costs	—		21		21		—		—		—		—			—		—		—			46			67

Operating income (loss)	201		182		383		489		31		520		857			107		1		7			(274)			1,601

Interest expense, net	—		—		—		29		—		29		9			—		—		6			107			151
Provision for (benefit from) income taxes	—		—		—		187		7		194		330			—		—		—			(25)			499
Net income attributable to noncontrolling interests	—		—		—		140		18		158		271		c	—		—		—			(43)			386
Total assets at March 31, 2023	3,142		5,668		8,810		8,612		1,871		10,483		21,046			1,707		221		1,152			7,490			50,909
Capital expenditures	56		140		196		61		39		100		449			9		5		12			350		d	1,121

Three Months Ended March 31, 2022
Revenues:
Unaffiliated customers	$	90	$	55	$	145	$	1,106	$	160	$	1,266	$	2,326	a	$	—	$	1,743	$	718		$	405	b	$	6,603
Intersegment	711		1,095		1,806		108		—		108		78			128		9		—			(2,129)			—
Production and delivery	363		655		1,018		558		112		670		626			75		1,754		722			(1,715)			3,150
Depreciation, depletion and amortization	44		61		105		87		10		97		248			16		1		6			16			489


Selling, general and administrative expenses	—		1		1		2		—		2		27			—		—		8			77			115
Mining exploration and research expenses	—		—		—		—		—		—		—			—		—		—			24			24
Environmental obligations and shutdown costs	—		—		—		—		—		—		—			—		—		—			16			16

Operating income (loss)	394		433		827		567		38		605		1,503			37		(3)		(18)			(142)			2,809

Interest expense, net	—		—		—		3		—		3		2			—		—		2			120			127
Provision for (benefit from) income taxes	—		—		—		227		14		241		586			—		—		—			(3)			824
Net income attributable to noncontrolling interests	—		—		—		168		6		174		190		c	—		—		—			13			377
Total assets at March 31, 2022	2,773		5,284		8,057		8,678		1,925		10,603		19,338			1,702		299		1,045			7,788			48,832
Capital expenditures	73		57		130		33		23		56		379			1		2		11			144		d	723

a.Includes PT-FI sales to PT Smelting totaling $27 million in first-quarter 2023 (reflecting adjustments to prior period provisionally priced concentrate sales) and $917 million in first-quarter 2022. Beginning January 1, 2023, there are no sales from PT-FI to PT Smelting (refer to above discussion of the tolling arrangement between PT-FI and PT Smelting).

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.Beginning January 1, 2023, FCX’s economic and equity ownership interest in PT-FI is 48.76%. Prior to January 1, 2023, FCX's economic interest in PT-FI approximated 81%. As discussed in Note 3 of FCX’s 2022 Form 10-K, in accordance with provisions pertaining to PT-FI’s shareholders agreement, FCX's first-quarter 2023 net income included a $35 million net benefit associated with PT-FI sales volumes that were attributed to FCX at its previous approximate 81% economic ownership interest.

d.Primarily includes capital expenditures for the Indonesia smelter projects.