false--12-31Q12020000083125950000000 0000831259 2020-01-01 2020-03-31 0000831259 2020-04-30 0000831259 2020-03-31 0000831259 2019-12-31 0000831259 2019-01-01 2019-03-31 0000831259 fcx:CerroVerdeRoyaltyDisputeMember 2020-01-01 2020-03-31 0000831259 us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0000831259 2019-03-31 0000831259 2018-12-31 0000831259 fcx:GrasbergSegmentMember 2019-01-01 2019-03-31 0000831259 fcx:GrasbergSegmentMember 2020-01-01 2020-03-31 0000831259 fcx:SouthAmericaMinesSegmentMember 2019-01-01 2019-03-31 0000831259 fcx:NorthAmericaCopperMinesSegmentMember 2019-01-01 2019-03-31 0000831259 fcx:MolybdenumMember 2020-01-01 2020-03-31 0000831259 fcx:CerroVerdeRoyaltyDisputeMember 2019-01-01 2019-03-31 0000831259 fcx:NorthAmericaCopperMinesSegmentMember 2020-01-01 2020-03-31 0000831259 fcx:MolybdenumMember 2019-01-01 2019-03-31 0000831259 fcx:SouthAmericaMinesSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0000831259 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0000831259 us-gaap:CommonStockMember 2020-03-31 0000831259 us-gaap:TreasuryStockMember 2020-03-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000831259 us-gaap:NoncontrollingInterestMember 2019-12-31 0000831259 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000831259 us-gaap:NoncontrollingInterestMember 2020-03-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000831259 us-gaap:ParentMember 2020-01-01 2020-03-31 0000831259 us-gaap:TreasuryStockMember 2019-12-31 0000831259 us-gaap:CommonStockMember 2019-12-31 0000831259 us-gaap:ParentMember 2020-03-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000831259 us-gaap:RetainedEarningsMember 2019-12-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000831259 us-gaap:ParentMember 2019-12-31 0000831259 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000831259 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000831259 us-gaap:RetainedEarningsMember 2020-03-31 0000831259 us-gaap:TreasuryStockMember 2018-12-31 0000831259 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0000831259 us-gaap:ParentMember 2018-12-31 0000831259 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000831259 us-gaap:ParentMember 2019-01-01 2019-03-31 0000831259 us-gaap:NoncontrollingInterestMember 2018-12-31 0000831259 us-gaap:NoncontrollingInterestMember 2019-03-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000831259 us-gaap:CommonStockMember 2018-12-31 0000831259 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000831259 us-gaap:RetainedEarningsMember 2018-12-31 0000831259 us-gaap:RetainedEarningsMember 2019-03-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000831259 us-gaap:CommonStockMember 2019-03-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000831259 us-gaap:TreasuryStockMember 2019-03-31 0000831259 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000831259 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000831259 us-gaap:ParentMember 2019-03-31 0000831259 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000831259 fcx:MolybdenumMember 2020-01-01 2020-03-31 0000831259 fcx:CopperMember 2020-01-01 2020-03-31 0000831259 fcx:CerroVerdeMember us-gaap:LineOfCreditMember 2020-03-31 0000831259 fcx:CerroVerdeMember us-gaap:LineOfCreditMember 2019-12-31 0000831259 fcx:FreeportMcmoranCorporationMember us-gaap:SubordinatedDebtMember 2019-12-31 0000831259 fcx:FcxMember us-gaap:SeniorNotesMember 2019-12-31 0000831259 fcx:FreeportMcmoranCorporationMember us-gaap:SubordinatedDebtMember 2020-03-31 0000831259 fcx:OtherDebtMember 2020-03-31 0000831259 fcx:OtherDebtMember 2019-12-31 0000831259 fcx:FcxMember us-gaap:SeniorNotesMember 2020-03-31 0000831259 fcx:A355SeniorNotesDue2022Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000831259 us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000831259 fcx:A355SeniorNotesDue2022Member us-gaap:SeniorNotesMember 2020-03-31 0000831259 fcx:SeniorNotesDue2021Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000831259 fcx:SeniorNotesDue2021Member us-gaap:SeniorNotesMember 2020-03-31 0000831259 us-gaap:SeniorNotesMember 2020-03-31 0000831259 fcx:A355SeniorNotesDue2022Member 2020-03-04 0000831259 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-03-31 0000831259 fcx:SeniorNotesdue20284.125MemberDomain 2020-03-04 0000831259 us-gaap:PropertyPlantAndEquipmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:PropertyPlantAndEquipmentMember 2020-01-01 2020-03-31 0000831259 fcx:SeniorNotesDue2021Member us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2020-04-01 2020-04-30 0000831259 us-gaap:RevolvingCreditFacilityMember fcx:Maturing2023Member us-gaap:LineOfCreditMember 2020-03-31 0000831259 fcx:SeniorNotesDue2021Member us-gaap:SubsequentEventMember 2020-04-03 0000831259 us-gaap:RevolvingCreditFacilityMember fcx:Maturing2024Member us-gaap:LineOfCreditMember 2020-03-31 0000831259 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2020-03-31 0000831259 srt:ScenarioForecastMember 2020-04-01 2020-06-30 0000831259 2020-03-04 2020-03-04 0000831259 fcx:SeniorNotesdue20304.25MemberDomain 2020-03-04 0000831259 fcx:SeniorNotesDue2021Member 2020-03-04 0000831259 us-gaap:CommodityContractMember 2019-01-01 2019-03-31 0000831259 us-gaap:CommodityContractMember 2020-01-01 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:LongMember fcx:CopperMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:ShortMember us-gaap:GoldMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:LongMember fcx:CopperMember 2020-01-01 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:ShortMember fcx:CopperMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:ShortMember fcx:CopperMember 2020-01-01 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember us-gaap:ShortMember us-gaap:GoldMember 2020-01-01 2020-03-31 0000831259 us-gaap:CommodityContractMember 2019-12-31 0000831259 us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2019-12-31 0000831259 us-gaap:CommodityContractMember 2020-03-31 0000831259 us-gaap:OtherCurrentAssetsMember 2020-03-31 0000831259 fcx:NetAccountsReceivableMember 2020-03-31 0000831259 us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2019-12-31 0000831259 us-gaap:OtherCurrentAssetsMember 2019-12-31 0000831259 fcx:NetAccountsReceivableMember 2019-12-31 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember fcx:CopperMember 2019-01-01 2019-03-31 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember fcx:GoldandotherMember 2019-01-01 2019-03-31 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember fcx:GoldandotherMember 2020-01-01 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:CostOfSalesMember 2019-01-01 2019-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:CostOfSalesMember 2020-01-01 2020-03-31 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember fcx:CopperMember 2020-01-01 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-01-01 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:SubsequentEventMember 2020-04-30 0000831259 us-gaap:BankTimeDepositsMember 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:NondesignatedMember 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:SubsequentEventMember 2020-04-01 2020-04-30 0000831259 us-gaap:BankTimeDepositsMember 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-12-31 0000831259 fcx:FmcsCopperFuturesAndSwapContractsMember us-gaap:FutureMember us-gaap:NondesignatedMember 2019-12-31 0000831259 fcx:FmcsCopperFuturesAndSwapContractsMember us-gaap:FutureMember us-gaap:NondesignatedMember 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000831259 us-gaap:ForwardContractsMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2019-12-31 0000831259 fcx:GulfofMexicoContingentConsiderationMember 2020-03-31 0000831259 fcx:GulfofMexicoContingentConsiderationMember 2020-01-01 2020-03-31 0000831259 fcx:GulfofMexicoContingentConsiderationMember 2019-12-31 0000831259 us-gaap:BankTimeDepositsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:OnshoreCaliforniaMember 2020-03-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:OnshoreCaliforniaMember 2019-12-31 0000831259 us-gaap:BankTimeDepositsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:DeepwaterGulfofMexicoInterestsMember 2020-03-31 0000831259 fcx:FreeportMcMoRanOilGasMember srt:CrudeOilMember fcx:OnshoreCaliforniaMember 2018-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:DeepwaterGulfofMexicoInterestsMember 2019-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:OnshoreCaliforniaMember 2016-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember srt:CrudeOilMember fcx:OnshoreCaliforniaMember 2016-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:OnshoreCaliforniaMember 2020-01-01 2020-03-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:OnshoreCaliforniaMember 2019-01-01 2019-03-31 0000831259 fcx:FreeportMcMoRanOilGasMember fcx:DeepwaterGulfofMexicoInterestsMember 2016-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:ForwardContractsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000831259 us-gaap:CommodityContractMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000831259 us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:EquitySecuritiesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:MortgageBackedSecuritiesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:AssetBackedSecuritiesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0000831259 fcx:AfricaandonshoreCaliforniaMember us-gaap:CommodityContractMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2019-12-31 0000831259 us-gaap:MunicipalBondsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000831259 us-gaap:USGovernmentDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0000831259 fcx:FreeportMcMoRanOilGasMember srt:ScenarioForecastMember fcx:OnshoreCaliforniaMember 2020-01-01 2020-12-31 0000831259 fcx:CyprusMinesMember fcx:AsbestosContaminationinTalcBasedPersonalCareProductsMember us-gaap:PendingLitigationMember us-gaap:DamagesFromProductDefectsMember 2019-03-13 0000831259 fcx:PTSmeltingMember fcx:PtFreeportIndonesiaMember 2020-03-31 0000831259 fcx:FCXAffiliatesMember fcx:LouisianaParishesCoastalErosionCasesMember us-gaap:SettledLitigationMember 2019-09-30 0000831259 fcx:FCXAffiliatesMember fcx:LouisianaParishesCoastalErosionCasesMember us-gaap:SettledLitigationMember 2019-10-01 2019-10-31 0000831259 fcx:JohnsonJohnsonandCyprusMinesMember fcx:AsbestosContaminationinTalcBasedPersonalCareProductsMember us-gaap:PendingLitigationMember us-gaap:DamagesFromProductDefectsMember 2019-03-13 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember 2019-01-01 2019-03-31 0000831259 fcx:PurchasedCopperMember 2020-01-01 2020-03-31 0000831259 fcx:CopperInConcentratesMember 2019-01-01 2019-03-31 0000831259 fcx:RefinedCopperProductsMember 2019-01-01 2019-03-31 0000831259 fcx:CopperInConcentratesMember 2020-01-01 2020-03-31 0000831259 us-gaap:GoldMember 2020-01-01 2020-03-31 0000831259 fcx:MolybdenumMember 2020-01-01 2020-03-31 0000831259 fcx:MolybdenumMember 2019-01-01 2019-03-31 0000831259 fcx:OtherProductsOrServicesMember 2020-01-01 2020-03-31 0000831259 fcx:CopperCathodeMember 2019-01-01 2019-03-31 0000831259 fcx:CopperCathodeMember 2020-01-01 2020-03-31 0000831259 fcx:RefinedCopperProductsMember 2020-01-01 2020-03-31 0000831259 us-gaap:GoldMember 2019-01-01 2019-03-31 0000831259 fcx:OtherProductsOrServicesMember 2019-01-01 2019-03-31 0000831259 fcx:PurchasedCopperMember 2019-01-01 2019-03-31 0000831259 us-gaap:NondesignatedMember us-gaap:SalesMember 2020-01-01 2020-03-31 0000831259 fcx:PTSmeltingMember srt:AffiliatedEntityMember 2020-01-01 2020-03-31 0000831259 fcx:PTSmeltingMember srt:AffiliatedEntityMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:BagdadMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember country:ID fcx:GrasbergSegmentMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:RodAndRefiningSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:MorenciMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:MolybdenumMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2020-01-01 2020-03-31 0000831259 fcx:CorporateAndEliminationsMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:CerroVerdeMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:MolybdenumMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:CerroVerdeMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-01-01 2019-03-31 0000831259 fcx:CorporateAndEliminationsMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:RodAndRefiningSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:BagdadMember 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember country:ID fcx:GrasbergSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:MorenciMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:MorenciMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:BagdadMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember country:ID fcx:GrasbergSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember fcx:CerroVerdeMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:BagdadMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:RodAndRefiningSegmentMember 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:BagdadMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:MorenciMember 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:RodAndRefiningSegmentMember 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:MolybdenumMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:CorporateAndEliminationsMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember country:ID fcx:GrasbergSegmentMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:MolybdenumMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember country:ID fcx:GrasbergSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember fcx:CerroVerdeMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:MorenciMember 2020-01-01 2020-03-31 0000831259 fcx:CorporateAndEliminationsMember 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:MolybdenumMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:MolybdenumMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:CerroVerdeMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:MorenciMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:RodAndRefiningSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:SouthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:RodAndRefiningSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:SouthAmericaMember fcx:CerroVerdeMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2019-03-31 0000831259 fcx:CorporateAndEliminationsMember 2020-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:CorporateAndEliminationsMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:OtherMinesNorthAmericaCopperMinesSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:OperatingSegmentsMember srt:NorthAmericaMember fcx:BagdadMember 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember fcx:AtlanticCopperSmeltingAndRefiningSegmentMember 2020-01-01 2020-03-31 0000831259 us-gaap:IntersegmentEliminationMember country:ID fcx:GrasbergSegmentMember 2019-01-01 2019-03-31 0000831259 us-gaap:IntersegmentEliminationMember srt:NorthAmericaMember fcx:OtherIndividuallyImmaterialOperatingSegmentsMember 2020-01-01 2020-03-31 iso4217:USD xbrli:shares iso4217:USD utreg:lb iso4217:USD utreg:bbl xbrli:pure iso4217:USD fcx:lb utreg:lb iso4217:USD xbrli:shares iso4217:USD fcx:oz utreg:oz fcx:case fcx:segment



United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from   to
Commission file number: 001-11307-01
FCX_LOGOA01A01A03A29.JPG
Freeport-McMoRan Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
74-2480931
(State or other jurisdiction of
 
(I.R.S. Employer Identification No.)
incorporation or organization)
 
 
333 North Central Avenue

 
 

Phoenix
 
AZ
 
 
 
85004-2189
(Address of principal executive offices)
 
 
 
(Zip Code)
(602) 366-8100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.10 per share
FCX
The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  No 
On April 30, 2020, there were issued and outstanding 1,451,970,774 shares of the registrant’s common stock, par value $0.10 per share.



Freeport-McMoRan Inc.

TABLE OF CONTENTS

 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2

Table of Contents             

Part I.
FINANCIAL INFORMATION

Item 1.
Financial Statements.

Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)

 
March 31,
2020
 
December 31,
2019
 
(In millions)
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
1,602

 
$
2,020

Trade accounts receivable
515

 
741

Income and other tax receivables
591

 
426

Inventories:
 
 
 
Materials and supplies, net
1,614

 
1,649

Mill and leach stockpiles
1,106

 
1,143

Product
1,134

 
1,281

Other current assets
795

 
655

Total current assets
7,357

 
7,915

Property, plant, equipment and mine development costs, net
29,899

 
29,584

Long-term mill and leach stockpiles
1,272

 
1,425

Other assets
1,691

 
1,885

Total assets
$
40,219

 
$
40,809

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued liabilities
$
2,465

 
$
2,576

Current portion of environmental and asset retirement obligations
305

 
436

Current portion of debt
245

 
5

Accrued income taxes
128

 
119

Dividends payable

 
73

Total current liabilities
3,143

 
3,209

Long-term debt, less current portion
9,829

 
9,821

Deferred income taxes
4,087

 
4,210

Environmental and asset retirement obligations, less current portion
3,758

 
3,630

Other liabilities
2,439

 
2,491

Total liabilities
23,256

 
23,361

 
 
 
 
Equity:
 
 
 
Stockholders’ equity:
 
 
 
Common stock
158

 
158

Capital in excess of par value
25,875

 
25,830

Accumulated deficit
(12,771
)
 
(12,280
)
Accumulated other comprehensive loss
(668
)
 
(676
)
Common stock held in treasury
(3,739
)
 
(3,734
)
Total stockholders’ equity
8,855

 
9,298

Noncontrolling interests
8,108

 
8,150

Total equity
16,963

 
17,448

Total liabilities and equity
$
40,219

 
$
40,809


The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents             

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
 
 
(In millions, except per share amounts)
 
Revenues
$
2,798

 
$
3,792

 
Cost of sales:
 
 
 
 
Production and delivery
2,545

 
2,919

 
Depreciation, depletion and amortization
341

 
347

 
Metals inventory adjustments
222

 
57

 
Total cost of sales
3,108

 
3,323

 
Selling, general and administrative expenses
110

 
112

 
Mining exploration and research expenses
16

 
27

 
Environmental obligations and shutdown costs
26

 
42

 
Net loss (gain) on sales of assets
11

 
(33
)
 
Total costs and expenses
3,271

 
3,471

 
Operating (loss) income
(473
)
 
321

 
Interest expense, net
(127
)
 
(146
)
 
Net loss on early extinguishment of debt
(32
)
 
(6
)
 
Other income, net
20

 
14

 
(Loss) income from continuing operations before income taxes and equity in affiliated companies’ net earnings (losses)
(612
)
 
183

 
Benefit from (provision for) income taxes
60

 
(105
)
 
Equity in affiliated companies’ net earnings (losses)
3

 
(3
)
 
Net (loss) income from continuing operations
(549
)
 
75

 
Net gain from discontinued operations

 
1

 
Net (loss) income
(549
)
 
76

 
Net loss (income) attributable to noncontrolling interests
58

 
(45
)
 
Net (loss) income attributable to common stockholders
$
(491
)
 
$
31

 
 
 
 
 
 
Basic and diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
Continuing operations
$
(0.34
)
 
$
0.02

 
Discontinued operations

 

 
 
$
(0.34
)
 
$
0.02

 
 
 
 
 
 
Weighted-average common shares outstanding:
 
 
 
 
Basic
1,452

 
1,451

 
Diluted
1,452

 
1,457

 
 
 
 
 
 
Dividends declared per share of common stock
$

 
$
0.05

 
 
The accompanying notes are an integral part of these consolidated financial statements.


4

Table of Contents             

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited)

 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
 
 
(In millions)
Net (loss) income
$
(549
)
 
$
76

 
 
 
 
 
 
Other comprehensive income, net of taxes:
 
 
 
 
Defined benefit plans:
 
 
 
 
Amortization of unrecognized amounts included in net periodic benefit costs
12

 
11

 
Foreign exchange losses
(5
)
 

 
Other comprehensive income
7

 
11

 
 
 
 
 
 
Total comprehensive (loss) income
(542
)
 
87

 
Total comprehensive loss (income) attributable to noncontrolling interests
59

 
(45
)
 
Total comprehensive (loss) income attributable to common stockholders
$
(483
)
 
$
42

 

The accompanying notes are an integral part of these consolidated financial statements.




5

Table of Contents             

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
 
 
(In millions)
 
Cash flow from operating activities:
 
 
 
 
Net (loss) income
$
(549
)
 
$
76

 
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
 
 
 
 
Depreciation, depletion and amortization
341

 
347

 
Metals inventory adjustments
222

 
57

 
Net loss (gain) on sales of assets
11

 
(33
)
 
Stock-based compensation
27

 
29

 
Net charges for environmental and asset retirement obligations, including accretion
60

 
64

 
Payments for environmental and asset retirement obligations
(71
)
 
(46
)
 
Net charges for defined pension and postretirement plans
18

 
26

 
Pension plan contributions
(26
)
 
(16
)
 
Net loss on early extinguishment of debt
32

 
6

 
Deferred income taxes
(118
)
 
33

 
Charges for Cerro Verde royalty dispute
9

 
15

 
Payments for Cerro Verde royalty dispute
(57
)
 
(10
)
 
Other, net
(56
)
 
42

 
Changes in working capital and other:
 
 
 
 
Accounts receivable
205

 
19

 
Inventories
154

 
192

 
Other current assets
(89
)
 
42

 
Accounts payable and accrued liabilities
(149
)
 
(247
)
 
Accrued income taxes and timing of other tax payments
(2
)
 
(62
)
 
Net cash (used in) provided by operating activities
(38
)
 
534

 
 
 
 
 
 
Cash flow from investing activities:
 
 
 
 
Capital expenditures:
 
 
 
 
North America copper mines
(184
)
 
(210
)
 
South America
(74
)
 
(61
)
 
Indonesia
(326
)
 
(319
)
 
Molybdenum mines
(7
)
 
(4
)
 
Other
(19
)
 
(28
)
 
Proceeds from sales of assets
66

 
84

 
Other, net
(2
)
 
(8
)
 
Net cash used in investing activities
(546
)
 
(546
)
 
 
 
 
 
 
Cash flow from financing activities:
 
 
 
 
Proceeds from debt
1,478

 
114

 
Repayments of debt
(1,242
)
 
(1,356
)
 
Cash dividends and distributions paid:
 
 
 
 
Common stock
(73
)
 
(73
)
 
Noncontrolling interests

 
(9
)
 
Contributions from noncontrolling interests
32

 

 
Stock-based awards net payments
(4
)
 
(7
)
 
Debt financing costs and other, net
(18
)
 

 
Net cash provided by (used in) financing activities
173

 
(1,331
)
 
 
 
 
 
 
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents
(411
)
 
(1,343
)
 
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
2,278

 
4,455

 
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period
$
1,867

 
$
3,112

 
 
The accompanying notes are an integral part of these consolidated financial statements.

6

Table of Contents             

Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
THREE MONTHS ENDED MARCH 31
 
Stockholders’ Equity
 
 
 
 
 
Common Stock
 
 
 
Accum-ulated Deficit
 
Accumu-
lated
Other Compre-
hensive
Loss
 
Common Stock
Held in Treasury
 
Total
Stock-holders’ Equity
 
 
 
 
 
Number
of
Shares
 
At Par
Value
 
Capital in
Excess of
Par Value
 
 
 
Number
of
Shares
 
At
Cost
 
 
Non-
controlling
Interests
 
Total
Equity
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Balance at December 31, 2019
1,582

 
$
158

 
$
25,830

 
$
(12,280
)
 
$
(676
)
 
131

 
$
(3,734
)
 
$
9,298

 
$
8,150

 
$
17,448

Exercised and issued stock-based awards
1

 

 
1

 

 

 

 

 
1

 

 
1

Stock-based compensation, including the tender of shares

 

 
29

 

 

 

 
(5
)
 
24

 

 
24

Contributions from noncontrolling interests

 

 
15

 

 

 

 

 
15

 
17

 
32

Net loss attributable to common stockholders

 

 

 
(491
)
 

 

 

 
(491
)
 

 
(491
)
Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 
(58
)
 
(58
)
Other comprehensive income (loss)

 

 

 

 
8

 

 

 
8

 
(1
)
 
7

Balance at March 31, 2020
1,583

 
$
158

 
$
25,875

 
$
(12,771
)
 
$
(668
)
 
131

 
$
(3,739
)
 
$
8,855

 
$
8,108

 
$
16,963

 
Stockholders’ Equity
 
 
 
 
 
Common Stock
 
 
 
Accum-ulated Deficit
 
Accumu-
lated
Other Compre-
hensive
Loss
 
Common Stock
Held in Treasury
 
Total
Stock-holders’ Equity
 
 
 
 
 
Number
of
Shares
 
At Par
Value
 
Capital in
Excess of
Par Value
 
 
 
Number
of
Shares
 
At
Cost
 
 
Non-
controlling
Interests
 
Total
Equity
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Balance at December 31, 2018
1,579

 
$
158

 
$
26,013

 
$
(12,041
)
 
$
(605
)
 
130

 
$
(3,727
)
 
$
9,798

 
$
8,094

 
$
17,892

Exercised and issued stock-based awards
3

 

 
1

 

 

 

 

 
1

 

 
1

Stock-based compensation, including the tender of shares

 

 
23

 

 

 
1

 
(7
)
 
16

 

 
16

Dividends

 

 
(73
)
 

 

 

 

 
(73
)
 
(70
)
 
(143
)
Changes in noncontrolling interests

 

 
(1
)
 

 

 

 

 
(1
)
 
(11
)
 
(12
)
Net income attributable to common stockholders

 

 

 
31

 

 

 

 
31

 

 
31

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 
45

 
45

Other comprehensive income

 

 

 

 
11

 

 

 
11

 

 
11

Balance at March 31, 2019
1,582

 
$
158

 
$
25,963

 
$
(12,010
)
 
$
(594
)
 
131

 
$
(3,734
)
 
$
9,783

 
$
8,058

 
$
17,841



The accompanying notes are an integral part of these consolidated financial statements.


7

Table of Contents             

Freeport-McMoRan Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1. GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2019 (2019 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month period ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.

Operations Update. Because of the significant negative impacts of the COVID-19 pandemic on the global economy, including the recent decline in copper and molybdenum prices, in April 2020 FCX revised its operating plans. FCX has assessed its near-term operating plans with a focus on maximizing cash flow and protecting liquidity in a weak and uncertain economic environment and to preserve asset values for anticipated improved copper prices as economic conditions recover. A series of actions are being implemented to significantly reduce costs and capital spending and adjust mine plans and corresponding mining and milling rates to maximize cash flow at lower prices. The plans also incorporate the impact of lower input costs, principally energy and foreign exchange rates, and higher gold prices.

In mid-March 2020, the Peruvian government issued a Supreme Decree and declaration of a National Emergency in its efforts to contain the outbreak of COVID-19, and subsequently extended this order through May 10, 2020. To comply with the government’s requirements, Cerro Verde temporarily transitioned to a care and maintenance status and has adjusted its operations to prioritize critical activities. Cerro Verde has also completed construction of temporary onsite facilities and enhanced protocols to enable critical operations to be maintained in compliance with the Peruvian government order. During April 2020, Cerro Verde operated at an average of approximately one-third of planned rates. Beginning in late April 2020, operating rates increased to over 50 percent of capacity. In early May, the Peruvian government updated its State of Emergency to allow major mining operations to gradually increase activities. Cerro Verde is in discussions with the Peruvian government to clarify the requirements for gradual resumption of normal operations. The revised operating plans reflect the continuation of limited operations at Cerro Verde during second-quarter 2020 and increased mining and milling rates in the second half of 2020. Idle facility costs associated with this temporary shutdown totaled $22 million in first-quarter 2020. Additionally, in April 2020, FCX suspended operations at its Chino copper mine in New Mexico to address COVID-19 concerns. The revised operating plans take into account the impact of the currently suspended operations at the Chino mine. FCX is currently assessing options and future timing of restart of the Chino mine. FCX’s revised operating plans and estimates reflect current assumptions, and FCX will continue to closely monitor health and market conditions and make further adjustments to its mine plans as required.

In connection with the decline in copper and molybdenum prices, FCX evaluated its long-lived assets, other than indefinite-lived intangible assets, for impairment as of March 31 2020. Indefinite-lived intangible assets are evaluated annually as of December 31, and when it is more likely than not that the intangible asset is impaired. FCX’s long-lived asset impairment evaluations required FCX to make several assumptions in determining estimates of future cash flows of its individual mining operations, including: near- and long-term metal price assumptions; estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and costs to develop and produce the reserves; and the value of mineral resources not yet included in proven and probable mineral reserves. Projected long-term average metal prices represented the most significant assumption used in the cash flow estimates.

FCX’s evaluation of long-lived assets (other than indefinite-lived intangible assets) did not result in the recognition of significant impairments as of March 31, 2020. Should copper and molybdenum prices decline further in future periods, FCX will continue to evaluate its long-lived assets for impairment. Refer to Note 3 for adjustments to reduce inventories to their net realizable values.



8

Table of Contents             

NOTE 2. EARNINGS PER SHARE

FCX calculates its basic net (loss) income per share of common stock under the two-class method and calculates its diluted net (loss) income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net (loss) income per share of common stock was computed by dividing net (loss) income attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net (loss) income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive.

Reconciliations of net (loss) income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net (loss) income per share follow (in millions, except per share amounts):
 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
 
Net (loss) income from continuing operations
$
(549
)
 
$
75

 
Net loss (income) from continuing operations attributable to noncontrolling interests
58

 
(45
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
Net (loss) income from continuing operations attributable to common stockholders
(494
)
 
27

 
 
 
 
 
 
Net income from discontinued operations attributable to common stockholders

 
1

 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(494
)
 
$
28

 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,452

 
1,451

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)a

 
6

 
Diluted weighted-average shares of common stock outstanding
1,452

 
1,457

 
 
 
 
 
 
Basic and diluted net (loss) income per share attributable to common stockholders:
 
 
 
 
Continuing operations
$
(0.34
)
 
$
0.02

 
Discontinued operations

 

 
 
$
(0.34
)
 
$
0.02

 

a.
Excludes approximately 10 million shares of common stock in first-quarter 2020 and 3 million in first-quarter 2019 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net (loss) income per share of common stock. Stock options for 40 million shares of common stock were excluded in first-quarter 2020 and 39 million shares in first-quarter 2019.


9

Table of Contents             

NOTE 3. INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):
 
March 31,
2020
 
December 31, 2019
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,614

 
$
1,649

 
 
 
 
 
 
Mill stockpiles
$
158

 
$
220

 
Leach stockpiles
948

 
923

 
Total current mill and leach stockpiles
$
1,106

 
$
1,143

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
209

 
$
318

 
Work-in-process
106

 
124

 
Finished goods
819

 
839

 
Total product
$
1,134

 
$
1,281

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
193

 
$
181

 
Leach stockpiles
1,079

 
1,244

 
Total long-term mill and leach stockpilesb
$
1,272

 
$
1,425

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $25 million at March 31, 2020, and $24 million at December 31, 2019.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.

FCX recorded charges to adjust metals inventory carrying values to net realizable values because of lower market prices totaling $222 million in first-quarter 2020, associated with copper inventories ($205 million) and molybdenum inventories ($17 million); and $57 million in first-quarter 2019, associated with cobalt inventories (refer to Note 9 for metals inventory adjustments by business segment).

NOTE 4. INCOME TAXES

Geographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
 
U.S. operations
$
5

 
$
2

 
International operations
55

 
(107
)
 
Total
$
60

 
$
(105
)
 

FCX’s consolidated effective income tax rate was 10 percent for first-quarter 2020 and 57 percent for first-quarter 2019. Because FCX's U.S. jurisdiction generated net losses in first-quarter 2020 and 2019 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses. Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate.

In connection with the negative impacts of the COVID-19 pandemic on the global economy, governments throughout the world are announcing measures that are intended to provide tax and other financial relief. Such measures include the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law by President Trump on March 27, 2020. None of these measures, including the CARES Act, resulted in material impacts to FCX’s March 31, 2020, provision for income taxes.  Some of these measures will provide FCX with the opportunity to accelerate the timing of cash collections, primarily those associated with the U.S. alternative minimum tax credit refunds. FCX continues to evaluate income tax accounting considerations of additional measures as they develop, including any impact on the Company’s measurement of existing deferred tax assets and deferred tax liabilities. FCX will recognize any impact from COVID-19 related changes to tax laws in the period in which the new legislation is enacted.

10

Table of Contents             

NOTE 5. DEBT AND EQUITY

The components of debt follow (in millions):
 
 
March 31,
2020
 
December 31, 2019
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,773

 
$
8,602

Issued by Freeport Minerals Corporation (FMC)
 
357

 
357

Cerro Verde credit facility
 
826

 
826

Other
 
118

 
41

Total debt
 
10,074

 
9,826

Less current portion of debt
 
(245
)
 
(5
)
Long-term debt
 
$
9,829

 
$
9,821



Revolving Credit Facility. At March 31, 2020, FCX had no borrowings outstanding and $13 million in letters of credit issued under its revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023. At March 31, 2020, FCX was in compliance with its revolving credit facility covenants.

Senior Notes.  On March 4, 2020, FCX completed the sale of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 for total net proceeds of $1.29 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used a portion of the net proceeds from this offering to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. As a result of these transactions, FCX recorded a loss on early extinguishment of debt totaling $32 million in first-quarter 2020 as follows (in millions):
 
 
 
 
 
 
 
 
 
 
 
Principal Amount
 
Net Adjustments
 
Book Value
 
Tender Value
 
Loss
FCX 4.00% Senior Notes due 2021
$
40

 
$

 
$
40

 
$
42

 
$
2

FCX 3.55% Senior Notes due 2022
1,075

 
5

 
1,070

 
1,100

 
30

 
$
1,115

 
$
5

 
$
1,110

 
$
1,142

 
$
32



On April 3, 2020, FCX used the remaining net proceeds from the offering to fund the make-whole redemption of all of its remaining 4.00% Senior Notes due 2021 (book value of $154 million as of March 31, 2020) and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with the transaction. As a result of the redemption, FCX expects to record a loss on early extinguishment of debt of $9 million in second-quarter 2020.

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $171 million in first-quarter 2020 and $178 million in first-quarter 2019. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $44 million in first-quarter 2020 and $32 million in first-quarter 2019.

Common Stock.  In March 2020, in response to the COVID-19 pandemic and resulting global economic uncertainties, the FCX Board of Directors (the Board) suspended FCX’s quarterly cash dividend of $0.05 per share previously planned for May 1, 2020. Under current market and economic conditions, the Board does not expect to declare common stock dividends during 2020. The declaration and payment of future dividends is at the discretion of the Board and will be assessed on an ongoing basis, taking into account FCX’s financial results, cash requirements, future prospects, global economic conditions and other factors deemed relevant by the Board.

11

Table of Contents             

NOTE 6. FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts.  From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

In April 2020, FCX entered into forward sales contracts for 150 million pounds of copper for settlement in May and June of 2020. The forward sales provide for fixed pricing of $2.34 per pound of copper on approximately 60 percent of North America's projected sales volumes for May and June 2020.

A discussion of FCX’s other derivative contracts and programs follow.

Derivatives Designated as Hedging Instruments – Fair Value Hedges
Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the three-month periods ended March 31, 2020 and 2019. At March 31, 2020, FCX held copper futures and swap contracts that qualified for hedge accounting for 84 million pounds at an average contract price of $2.56 per pound, with maturities through September 2021.

A summary of (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
March 31,
 
2020
 
2019
Copper futures and swap contracts:
 
 
 
Unrealized (losses) gains:
 
 
 
Derivative financial instruments
$
(33
)
 
$
18

Hedged item – firm sales commitments
33

 
(18
)
 
 
 
 
Realized (losses) gains:
 
 
 
Matured derivative financial instruments
(9
)
 
2



Derivatives Not Designated as Hedging Instruments
Embedded Derivatives. Certain FCX concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (LBMA) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the LBMA gold prices as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price, and the LBMA gold price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices

12

Table of Contents             

and the adjusted LBMA gold prices, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at March 31, 2020, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
333

 
$
2.59

 
$
2.24

 
July 2020
Gold (thousands of ounces)
92

 
1,601

 
1,614

 
May 2020
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
87

 
2.58

 
2.24

 
July 2020


Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At March 31, 2020, Atlantic Copper held net copper forward purchase contracts for 34 million pounds at an average contract price of $2.35 per pound, with maturities through May 2020.

Summary of (Losses) Gains. A summary of the realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):
 
 
Three Months Ended
 
 
March 31,
 
 
2020
 
2019
Embedded derivatives in provisional sales contracts:a
 
 
 
 
Copper
 
$
(238
)
 
$
122

Gold and other metals
 
7

 
(2
)
Copper forward contractsb
 
24

 
1

a.
Amounts recorded in revenues. 
b.
Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments
A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):
 
 
March 31,
2020
 
December 31, 2019
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
4

 
$
6

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
34

 
68

Total derivative assets
 
$
38

 
$
74

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
28

 
$

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
119

 
20

Copper forward contracts
 

 
1

Total derivative liabilities
 
$
147

 
$
21




13

Table of Contents             

FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
March 31,
2020
 
December 31, 2019
 
March 31,
2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
34

 
$
68

 
$
119

 
$
20

Copper derivatives
 
4

 
6

 
28

 
1

 
 
38

 
74

 
147

 
21

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
1

 

 
1

 

Copper derivatives
 
1

 

 
1

 

 
 
2

 

 
2

 

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
33

 
68

 
118

 
20

Copper derivatives
 
3

 
6

 
27

 
1

 
 
$
36

 
$
74

 
$
145

 
$
21

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
13

 
$
66

 
$
54

 
$

Other current assets
 
3

 
6

 

 

Accounts payable and accrued liabilities
 
20

 
2

 
91

 
21

 
 
$
36

 
$
74

 
$
145

 
$
21



Credit Risk.  FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of March 31, 2020, the maximum amount of credit exposure associated with derivative transactions was $34 million.

Other Financial Instruments.  Other financial instruments include cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $0.4 billion at March 31, 2020, and $1.3 billion at December 31, 2019), restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of March 31, 2020, FCX has contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 7 for the related fair values).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):
 
 
March 31,
2020
 
December 31, 2019
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
1,602

 
$
2,020

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
113

 
100

Other assets
 
152

 
158

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
1,867

 
$
2,278



14

Table of Contents             

NOTE 7. FAIR VALUE MEASUREMENT

Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 during first-quarter 2020.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater Gulf of Mexico (GOM) oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):
 
At March 31, 2020
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
28

 
$
28

 
$
28

 
$

 
$

 
$

Equity securities
3

 
3

 

 
3

 

 

Total
31

 
31

 
28

 
3

 

 

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
60

 
60

 
60

 

 

 

Government mortgage-backed securities
55

 
55

 

 

 
55

 

Corporate bonds
39

 
39

 

 

 
39

 

Government bonds and notes
22

 
22

 

 

 
22

 

Asset-backed securities
11

 
11

 

 

 
11

 

Money market funds
8

 
8

 

 
8

 

 

Collateralized mortgage-backed securities
4

 
4

 

 

 
4

 

Municipal bonds
1

 
1

 

 

 
1

 

Total
200

 
200

 
60

 
8

 
132

 

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
34

 
34

 

 

 
34

 

Copper forward contractsc
4

 
4

 

 
1

 
3

 

       Total
38

 
38

 

 
1

 
37

 

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
119

 
78

 

 

 

 
78

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
(119
)
 
(119
)
 

 

 
(119
)
 

Copper futures and swap contractsc
(28
)
 
(28
)
 

 
(25
)
 
(3
)
 

Total
(147
)
 
(147
)
 

 
(25
)
 
(122
)
 

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
10,074

 
9,530

 

 

 
9,530

 

 
 
 
 
 
 
 
 
 
 
 
 



15

Table of Contents             

 
At December 31, 2019
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
27

 
$
27

 
$
27

 
$

 
$

 
$

Equity securities
4

 
4

 

 
4

 

 

Total
31

 
31

 
27

 
4

 

 

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
59

 
59

 
59

 

 

 

Government mortgage-backed securities
43

 
43

 

 

 
43

 

Government bonds and notes
36

 
36

 

 

 
36

 

Corporate bonds
33

 
33

 

 

 
33

 

Asset-backed securities
14

 
14

 

 

 
14

 

Collateralized mortgage-backed securities
7

 
7

 

 

 
7

 

Money market funds
3

 
3

 

 
3

 

 

Municipal bonds
1

 
1

 

 

 
1

 

Total
196

 
196

 
59

 
3

 
134

 

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
68

 
68

 

 

 
68

 

Copper futures and swap contractsc
6

 
6

 

 
5

 
1

 

Contingent consideration for the sale of onshore
 
 
 
 
 
 
 
 
 
 
 
   California oil and gas propertiesa
11

 
11

 

 

 
11

 

Total
85

 
85

 

 
5

 
80

 

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
122

 
108

 

 

 

 
108

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities