INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income before income taxes and equity in affiliated companies' net earnings

Geographic sources of income before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following:

	2023		2022		2021
U.S.	$	68	$	840	$	1,861
Foreign	5,938		5,875		5,798
Total	$	6,006	$	6,715	$	7,659

Schedule of Benefit from (Provision for) income taxes

FCX’s provision for income taxes for the years ended December 31 consists of the following:

	2023		2022		2021
Current income taxes:
Federal	$	5	$	—	$	—
State	(6)		1		(11)
Foreign	(2,087)		(2,232)		(2,460)
Total current	(2,088)		(2,231)		(2,471)
Deferred income taxes:
Federal	(50)		(149)		(184)
State	(3)		(6)		(4)
Foreign	(320)		(144)		(23)
Total deferred	(373)		(299)		(211)
Adjustments	6		1		193		a
Operating loss carryforwards	185		262		190
Provision for income taxes	$	(2,270)	$	(2,267)	$	(2,299)

a.Primarily reflects the release of valuation allowances on net operating losses at PT Rio Tinto Indonesia (see below).

Reconciliation of the U.S. federal statutory tax rate to effective income tax rate

A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows:

	2023				2022				2021
	Amount		%		Amount		%		Amount		%
U.S. federal statutory tax rate	$	(1,261)	(21)	%	$	(1,410)	(21)	%	$	(1,608)	(21)	%
Withholding and other impacts on
foreign earnings	(615)		(10)		(673)		(10)		(678)		(9)
Effect of foreign rates different than the U.S.
federal statutory rate	(313)		(5)		(314)		(5)		(328)		(4)
Foreign tax credit limitation	(289)		(5)		(50)		(1)		(116)		(1)
Percentage depletion	183		3		189		3		221		3
Valuation allowancea	128		2		28		—		326		4
Non-deductible permanent differences	(68)		(1)		(29)		—		(21)		—
Uncertain tax positions	(28)		(1)		(17)		—		13		—
State income taxes	(6)		—		(4)		—		(14)		—
PT-FI historical tax disputesb	—		—		(8)		—		(193)		(3)
PT Rio Tinto Indonesia valuation allowance	—		—		—		—		189		2
Other items, net	(1)		—		21		—		(90)		(1)
Provision for income taxes	$	(2,270)	(38)	%	$	(2,267)	(34)	%	$	(2,299)	(30)	%

a.Refer to “Valuation Allowances” below.

b.Refer to “Indonesia Tax Matters” below.

Components of deferred tax assets and liabilities

The components of deferred taxes follow:

	December 31,
	2023		2022
Deferred tax assets:
Foreign tax credits	$	1,228	$	1,514
Net operating losses	1,761		1,923
Accrued expenses	1,390		1,303
Employee benefit plans	78		99
Other	215		230
Deferred tax assets	4,672		5,069
Valuation allowances	(3,894)		(3,985)
Net deferred tax assets	778		1,084
Deferred tax liabilities:
Property, plant, equipment and mine development costs	(4,118)		(4,330)
Undistributed earnings	(911)		(810)
Other	(195)		(211)
Total deferred tax liabilities	(5,224)		(5,351)
Net deferred tax liabilities	$	(4,446)	$	(4,267)

Reserve for unrecognized tax benefits, interest and penalties

A summary of the activities associated with FCX’s reserve for unrecognized tax benefits for the years ended December 31 follows.

	2023		2022		2021
Balance at beginning of year	$	810	$	808	$	474
Additions:
Prior year tax positions	27		26		330
Current year tax positions	28		25		71
Decreases:
Prior year tax positions	(13)		(12)		(30)
Settlements with taxing authorities	(132)		(37)		(37)
Balance at end of year	$	720	$	810	$	808

Summary of income tax examinations

The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows:

Jurisdiction	Years Subject to Examination	Additional Open Years
U.S. Federal	2017-2018	2020-2023
Indonesia	2012-2015, 2017, 2021	2020, 2022-2023
Peru	-	2017-2023
Chile	2022	2020-2021, 2023

A summary of these assessments follows:

Tax Year	Tax Assessment		Penalties and Interest		Total
2003 to 2008	$	47	$	130	$	177
2009	56		52		108
2010	54		126		180
2011 and 2012	42		77		119
2013	48		72		120
2014 to 2022	81		35		116
	$	328	$	492	$	820

summary of these assessments follows:

Tax Year	Tax Assessment		Penalties and Interest		Total
2005	$	62	$	29	$	91
2007	45		22		67
2012 and 2013	40		36		76
2014 and 2015	104		—		104
2017	7		3		10
	$	258	$	90	$	348