Acquisition of minority interest in PT Smelting

[Table of](#i43d04c9d26874e33802bdf64c458414a_7) [C](#i43d04c9d26874e33802bdf64c458414a_7)[ontents](#i43d04c9d26874e33802bdf64c458414a_7)Freeport-McMoRan Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Years Ended December 31, |
|   |  | 2021 |  | 2020 |  | 2019 |
|   |  | (In millions) |
| Cash flow from operating activities: |  |   |  |   |  |   |
| Net income (loss) |  | $ | 5,365  |  |  | $ | 865  |  |  | $ | (189) |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |   |  |   |  |   |
| Depreciation, depletion and amortization |  | 1,998  |  |  | 1,528  |  |  | 1,412  |  |
| Metals inventory adjustments |  | 16  |  |  | 96  |  |  | 179  |  |
| Net gain on sales of assets |  | (80) |  |  | (473) |  |  | (417) |  |
| Stock-based compensation |  | 98  |  |  | 99  |  |  | 63  |  |
| Net charges for environmental and asset retirement obligations, including accretion |  | 540  |  |  | 181  |  |  | 221  |  |
| Payments for environmental and asset retirement obligations |  | (273) |  |  | (216) |  |  | (244) |  |
| Charge for talc-related litigation |  | —  |  |  | 130  |  |  | —  |  |
| Net charges for defined pension and postretirement plans |  | 4  |  |  | 65  |  |  | 108  |  |
| Pension plan contributions |  | (109) |  |  | (121) |  |  | (75) |  |
| Net loss on early extinguishment of debt |  | —  |  |  | 101  |  |  | 27  |  |
| Deferred income taxes |  | (171) |  |  | 181  |  |  | 29  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Charges for Cerro Verde royalty dispute |  | 11  |  |  | 32  |  |  | 65  |  |
| Payments for Cerro Verde royalty dispute |  | (421) |  |  | (139) |  |  | (187) |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Other, net |  | (18) |  |  | 23  |  |  | 141  |  |
| Changes in working capital and other: |  |   |  |   |  |   |
| Accounts receivable |  | (472) |  |  | 132  |  |  | 119  |  |
| Inventories |  | (618) |  |  | 42  |  |  | 259  |  |
| Other current assets |  | (101) |  |  | (27) |  |  | 60  |  |
| Accounts payable and accrued liabilities |  | 495  |  |  | 115  |  |  | (60) |  |
| Accrued income taxes and timing of other tax payments |  | 1,451  |  |  | 403  |  |  | (29) |  |
| Net cash provided by operating activities |  | 7,715  |  |  | 3,017  |  |  | 1,482  |  |
| Cash flow from investing activities: |  |   |  |   |  |   |
| Capital expenditures: |  |   |  |   |  |   |
| North America copper mines |  | (342) |  |  | (428) |  |  | (877) |  |
| South America |  | (162) |  |  | (183) |  |  | (256) |  |
| Indonesia mining |  | (1,296) |  |  | (1,161) |  |  | (1,369) |  |
| Indonesia smelter development |  | (222) |  |  | (105) |  |  | —  |  |
| Molybdenum mines |  | (6) |  |  | (19) |  |  | (19) |  |
| Other |  | (87) |  |  | (65) |  |  | (131) |  |
|  |  |  |  |  |  |  |
| Proceeds from sales of assets |  | 247  |  |  | 704  |  |  | 561  |  |
|  |  |  |  |  |  |  |
| Loans to PT Smelting for expansion |  | (36) |  |  | —  |  |  | —  |  |
| Acquisition of minority interest in PT Smelting |  | (33) |  |  | —  |  |  | —  |  |
| Other, net |  | (27) |  |  | (7) |  |  | (12) |  |
| Net cash used in investing activities |  | (1,964) |  |  | (1,264) |  |  | (2,103) |  |
| Cash flow from financing activities: |  |   |  |   |  |   |
| Proceeds from debt |  | 1,201  |  |  | 3,531  |  |  | 1,879  |  |
| Repayments of debt |  | (1,461) |  |  | (3,724) |  |  | (3,197) |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Cash dividends and distributions paid: |  |   |  |   |  |   |
| Common stock |  | (331) |  |  | (73) |  |  | (291) |  |
| Noncontrolling interests |  | (583) |  |  | —  |  |  | (82) |  |
| Treasury stock purchases |  | (488) |  |  | —  |  |  | —  |  |
| Contributions from noncontrolling interests |  | 182  |  |  | 156  |  |  | 165  |  |
| Proceeds from exercised stock options |  | 210  |  |  | 51  |  |  | 2  |  |
| Payments for withholding of employee taxes related to stock-based awards |  | (29) |  |  | (17) |  |  | (8) |  |
| Debt financing costs and other, net |  | (41) |  |  | (52) |  |  | (24) |  |
| Net cash used in financing activities |  | (1,340) |  |  | (128) |  |  | (1,556) |  |
|  |  |  |  |  |  |  |
| Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents  |  | 4,411  |  |  | 1,625  |  |  | (2,177) |  |
|  |  |  |  |  |  |  |
| Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year |  | 3,903  |  |  | 2,278  |  |  | 4,455  |  |
| Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year |  | $ | 8,314  |  |  | $ | 3,903  |  |  | $ | 2,278  |  |

The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.115
