BUSINESS SEGMENTS INFORMATION

12 Months Ended

Dec. 31, 2023

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:

	2023		2022		2021
Copper:
Concentrate	$	7,127	$	9,650	$	8,705
Cathode	6,629		5,134		5,900
Rod and other refined copper products	3,659		3,699		3,369
Purchased coppera	416		481		757
Gold	3,472		3,397		2,580
Molybdenum	2,006		1,416		1,283
Otherb	585		688		821
Adjustments to revenues:
Treatment chargesc	(538)		(503)		(445)
Royalty expensed	(346)		(366)		(330)
PT-FI export dutiese	(307)		(325)		(218)
Revenues from contracts with customers	22,703		23,271		22,422
Embedded derivativesf	152		(491)		423
Total consolidated revenues	$	22,855	$	22,780	$	22,845

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

b.Primarily includes revenues associated with silver and, prior to 2022, cobalt.

c.Treatment charges for the year 2023 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 13 for further discussion of PT-FI export duties. Amounts include credits (charges) of $17 million in 2023 and $(18) million in 2022 associated with adjustments to prior-period export duties.

f.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,
	2023		2022
Long-lived assets:a
Indonesia	$	20,602	$	18,121
U.S.	9,386		8,801
Peru	6,563		6,727
Chile	1,105		1,103
Other	355		309
Total	$	38,011	$	35,061

a.Excludes deferred tax assets and intangible assets.

	Years Ended December 31,
	2023		2022		2021
Revenues:a
U.S.	$	7,264	$	7,339	$	7,168
Switzerland	3,971		2,740		3,682
Japan	3,431		2,462		2,372
Spain	1,251		1,174		1,495
Singapore	1,178		1,492		156
China	1,081		929		1,044
Indonesia	767		3,026		3,132
Germany	714		632		469
Chile	428		383		343
Philippines	396		249		264
India	354		330		207
South Korea	267		302		270
Egypt	229		149		268
United Kingdom	171		355		659
Other	1,353		1,218		1,316
Total	$	22,855	$	22,780	$	22,845

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 13% of FCX’s consolidated revenues in 2022 and 14% in 2021, and they are the only customer that accounted for 10% or more of FCX’s annual consolidated revenues during the three years ended December 31, 2023.

Consolidated revenues include sales to the noncontrolling interest owners of FCX’s South America mining operations and Morenci’s joint venture partners totaling $1.4 billion in 2023, $1.7 billion in 2022 and $1.4 billion in 2021. Consolidated revenues also include PT-FI’s sales to PT Smelting totaling $27 million in 2023 (reflecting adjustments to prior period provisionally priced concentrate sales), $3.0 billion in 2022 and $3.1 billion in 2021 as well as sales to PT-FI’s partner in PT Smelting, MMC, totaling $2.0 billion in 2023, $0.6 billion in 2022 and $0.4 billion in 2021.

As discussed in Note 3, beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed from a copper concentrate sales agreement to a tolling arrangement, and there are no further sales from PT-FI to PT Smelting.

Labor Matters. As of December 31, 2023, approximately 29% of FCX’s global labor force was covered by collective bargaining agreements, and approximately 16% was covered by agreements that will or were scheduled to expire during 2024 (including the collective bargaining agreement with PT-FI’s unions that is effective through March 2024) or that had expired as of December 31, 2023, and continue to be negotiated.

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.

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 mining operations to Atlantic Copper Smelting & Refining until final sales to third parties occur. FCX also deferred recognizing profit on 39.5% of PT-FI’s sales to PT Smelting from April 30, 2021, to December, 31, 2022, and 25.0% prior to April 30, 2021, until final sales to third parties occurred. As discussed in Note 3, beginning January 1, 2023, PT-FI’s commercial arrangement with PT Smelting changed and there are no further sales from PT-FI to PT Smelting. 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, Safford (including Lone Star), Bagdad, 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. During 2023, the Morenci mine produced 43% of FCX’s North America copper and 14% of FCX’s consolidated copper production.

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. During 2023, the Cerro Verde mine produced 82% of FCX’s South America copper and 23% of FCX’s consolidated copper production.

Indonesia Mining. Indonesia mining includes PT-FI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver. During 2023, PT-FI’s Grasberg minerals district produced 39% of FCX’s consolidated copper production and 99% of FCX’s consolidated gold production.

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 and rod. At times these operations refine copper and produce copper rod 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 2023, Atlantic Copper purchased 3% of its concentrate requirements from FCX’s North America copper mines, 17% from FCX’s South America mining operations and 20% 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, which include the Miami smelter, Freeport Cobalt (until its sale in September 2021), molybdenum conversion facilities in the U.S. and Europe, the Indonesia smelter projects, certain non-operating copper mines in North America (Ajo, Bisbee and Tohono in Arizona) and other mining support entities.

Financial Information by Business Segment

	North America Copper Mines						South America Mining
																					Atlantic		Corporate,
																					Copper		Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting		& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining		nations			Total
Year Ended December 31, 2023
Revenues:
Unaffiliated customers	$	91	$	152	$	243	$	3,330		$	824	$	4,154	$	7,816	a	$	—	$	5,886	$	2,791	$	1,965	b	$	22,855
Intersegment	2,328		3,745		6,073		787			—		787		621			677		40		19		(8,217)			—
Production and delivery	1,730		3,048		4,778		2,529			710		3,239		2,552		c	439		5,901		2,718		(6,000)			13,627
Depreciation, depletion and amortization	175		243		418		395			64		459		1,028			66		5		28		64			2,068
Selling, general and administrative expenses	2		2		4		9			—		9		129			—		—		28		309			479
Mining exploration and research expenses	—		3		3		—			—		—		—			—		—		—		134			137
Environmental obligations and shutdown costs	(1)		28		27		—			—		—		—			—		—		—		292			319
Operating income (loss)	513		573		1,086		1,184			50		1,234		4,728			172		20		36		(1,051)			6,225
Interest expense, net	—		1		1		77		d	—		77		42			—		—		31		364			515
Net gain on early extinguishment of debt	—		—		—		—			—		—		—			—		—		—		10			10
Other (expense) income, net	(5)		3		(2)		(13)			11		(2)		127			(1)		(2)		(8)		174			286
Provision for (benefit from) income taxes	—		—		—		495			17		512		1,774			—		—		—		(16)			2,270
Equity in affiliated companies’ net earnings	—		—		—		—			—		—		10			—		—		—		5			15
Net income (loss) attributable to noncontrolling interests	—		—		—		300			36		336		1,614		e	—		—		—		(47)			1,903
Total assets at December 31, 2023	3,195		5,996		9,191		8,120			1,930		10,050		21,655			1,782		172		1,326		8,330			52,506
Capital expenditures	232		529		761		271			97		368		1,696			84		13		64		1,838		f	4,824

	North America Copper Mines						South America Mining
																				Atlantic			Corporate,
																				Copper			Other
							Cerro						Indonesia			Molybdenum		Rod &		Smelting			& Elimi-			FCX
	Morenci		Other		Total		Verde		Other		Total		Mining			Mines		Refining		& Refining			nations			Total
Year Ended December 31, 2022
Revenues:
Unaffiliated customers	$	175	$	253	$	428	$	3,444	$	768	$	4,212	$	8,028	a	$	—	$	6,281	$	2,439		$	1,392	b	$	22,780
Intersegment	2,514		3,768		6,282		506		—		506		398			565		31		4			(7,786)			—
Production and delivery	1,550		2,827		4,377		2,369		705		3,074		2,684		c	359		6,330		2,452		g	(6,206)			13,070
Depreciation, depletion and amortization	177		233		410		357		51		408		1,025			74		5		27			70			2,019
Selling, general and administrative expenses	2		3		5		8		—		8		117			—		—		25			265			420
Mining exploration and research expenses	—		1		1		—		—		—		—			—		—		—			114			115
Environmental obligations and shutdown costs	(5)		1		(4)		—		—		—		—			—		—		—			125			121
Net gain on sales of assets	—		—		—		—		—		—		—			—		—		—			(2)			(2)
Operating income (loss)	965		956		1,921		1,216		12		1,228		4,600			132		(23)		(61)			(760)			7,037
Interest expense, net	1		1		2		15		—		15		40			—		—		15			488			560
Net (loss) gain on early extinguishment of debt	—		—		—		—		—		—		(11)			—		—		—			42			31
Other (expense) income, net	(2)		(30)		(32)		13		4		17		124			—		(1)		13			86			207
Provision for (benefit from) income taxes	—		—		—		461		(8)		453		1,820			—		—		(1)			(5)			2,267
Equity in affiliated companies’ net earnings	—		—		—		—		—		—		24			—		—		—			7			31
Net income attributable to noncontrolling interests	—		—		—		372		35		407		592		e	—		—		—			12			1,011
Total assets at December 31, 2022	3,052		5,552		8,604		8,398		1,873		10,271		20,639			1,697		183		1,262			8,437			51,093
Capital expenditures	263		334		597		164		140		304		1,575			33		9		76			875		f	3,469

Financial Information by Business Segment (continued)

	North America Copper Mines						South America Mining
																					Atlantic		Corporate,
																					Copper		Other
							Cerro							Indonesia			Molybdenum		Rod &		Smelting		& Elimi-			FCX
	Morenci		Other		Total		Verde			Other		Total		Mining			Mines		Refining		& Refining		nations			Total
Year Ended December 31, 2021
Revenues:
Unaffiliated customers	$	82	$	180	$	262	$	3,736		$	720	$	4,456	$	7,241	a	$	—	$	6,356	$	2,961	$	1,569	b	$	22,845
Intersegment	2,728		3,835		6,563		460			—		460		282			444		29		—		(7,778)			—
Production and delivery	1,239		2,235		3,474		2,000		h	429		2,429		2,425		c	254		6,381		2,907		(5,838)		g	12,032
Depreciation, depletion and amortization	152		217		369		366			47		413		1,049			67		5		28		67			1,998
Selling, general and administrative expenses	2		2		4		8			—		8		111			—		—		24		236			383
Mining exploration and research expenses	—		1		1		—			—		—		—			—		—		—		54			55
Environmental obligations and shutdown costs	—		(1)		(1)		—			—		—		—			—		—		—		92			91
Net gain on sales of assets	—		—		—		—			—		—		—			—		—		(19)		(61)		i	(80)
Operating income (loss)	1,417		1,561		2,978		1,822			244		2,066		3,938			123		(1)		21		(759)			8,366
Interest expense, net	—		1		1		28			—		28		48			—		—		6		519			602
Other income (expense), net	6		9		15		30			13		43		(152)			1		1		12		(25)			(105)
Provision for (benefit from) income taxes	—		—		—		730			90		820		1,524		j	—		—		—		(45)			2,299
Equity in affiliated companies’ net earnings (losses)	—		—		—		—			—		—		6			—		—		—		(1)			5
Net income (loss) attributable to noncontrolling interests	—		—		—		526			76		602		459		e	—		—		—		(2)			1,059
Total assets at December 31, 2021	2,708		5,208		7,916		8,694			1,921		10,615		18,971			1,713		228		1,318		7,261			48,022
Capital expenditures	135		207		342		132			30		162		1,296			6		2		34		273		f	2,115

a.Includes sales to PT Smelting totaling $27 million in 2023 (reflecting adjustments to prior period provisionally priced concentrate sales), $3.0 billion in 2022 and $3.1 billion in 2021.

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 charges for administrative fines of $55 million in 2023, $41 million in 2022 and $16 million in 2021. Includes credits totaling $112 million in 2023 to correct certain inputs in the historical PT-FI ARO model and charges totaling $116 million in 2022 and $340 million in 2021 associated with ARO adjustments. Refer to Note 12 for further discussion.

d.Includes $74 million of interest charges associated with Cerro Verde’s contested tax rulings issued by the Peruvian Supreme Court, partly offset by a $13 million credit for the settlement of interest on Cerro Verde’s historical profit sharing liability.

e.FCX’s economic interest in PT-FI is 48.76% and prior to January 1, 2023, it approximated 81%. Refer to Note 1 for further discussion of first-quarter 2023 gold sales volumes that were attributed approximately 81% to FCX in accordance with the PT-FI shareholders agreement.

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

g.Includes maintenance charges and idle facility costs associated with major maintenance turnarounds at Atlantic Copper totaling $41 million in 2022 and at the Miami smelter totaling $87 million in 2021.

h.Includes nonrecurring charges totaling $92 million associated with labor-related costs at Cerro Verde for agreements reached with its hourly employees.

i.Includes a $60 million gain on the sale of FCX’s remaining cobalt business located in Kokkola, Finland. Refer to Note 2 for further discussion.

j.Includes net tax benefits of $189 million associated with the release of a portion of the valuation allowance recorded against PT Rio Tinto NOLs. Refer to Note 11 for further discussion.