Gain on Sale of Investments

[Table of Contents](#i43d04c9d26874e33802bdf64c458414a_7)  


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|  | 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, 2020 |  |  |  |  |   |  |   |  |   |  |   |  |   |  |   |  |  |  |   |  |   |  |   |  |  |  |  |  |  |  |   |  |   |  |
| Revenues: |   |  |  |  |   |  |   |  |   |  |   |  |   |  |   |  |  |  |   |  |   |  |   |  |  |  |  |  |  |  |   |  |   |  |
| Unaffiliated customers | $ | 29  |  |  |  |  | $ | 48  |  |  | $ | 77  |  |  | $ | 2,282  |  |  | $ | 431  |  |  | $ | 2,713  |  |  | $ | 3,534  |  |  |  |  | $ | —  |  |  | $ | 4,781  |  |  | $ | 2,020  |  |  |  |  |  |  |  |  | $ | 1,073  |  | a | $ | 14,198  |  |  |
| Intersegment | 2,015  |  |  |  |  | 2,272  |  |  | 4,287  |  |  | 242  |  |  | —  |  |  | 242  |  |  | 80  |  |  |  |  | 222  |  |  | 33  |  |  | 17  |  |  |  |  |  |  |  |  | (4,881) |  |  | —  |  |  |
| Production and delivery | 1,269  |  |  |  |  | 1,831  |  |  | 3,100  |  |  | 1,599  |  |  | 379  |  |  | 1,978  |  |  | 1,606  |  |  |  |  | 230  |  |  | 4,819  |  |  | 1,962  |  |  |  |  |  |  |  |  | (3,664) |  |  | 10,031  |  |  |
| Depreciation, depletion and amortization | 166  |  |  |  |  | 189  |  |  | 355  |  |  | 367  |  |  | 54  |  |  | 421  |  |  | 580  |  |  |  |  | 57  |  |  | 16  |  |  | 29  |  |  |  |  |  |  |  |  | 70  |  |  | 1,528  |  |  |
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| Metals inventory adjustments | 4  |  |  |  |  | 48  |  |  | 52  |  |  | —  |  |  | 3  |  |  | 3  |  |  | —  |  |  |  |  | 10  |  |  | 3  |  |  | —  |  |  |  |  |  |  |  |  | 28  |  |  | 96  |  |  |
| Selling, general and administrative expenses | 2  |  |  |  |  | 2  |  |  | 4  |  |  | 6  |  |  | —  |  |  | 6  |  |  | 108  |  |  |  |  | —  |  |  | —  |  |  | 21  |  |  |  |  |  |  |  |  | 231  |  |  | 370  |  |  |
| Mining exploration and research expenses | —  |  |  |  |  | 2  |  |  | 2  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  |  |  | —  |  |  | —  |  |  | —  |  |  |  |  |  |  |  |  | 48  |  |  | 50  |  |  |
| Environmental obligations and shutdown costs | —  |  |  |  |  | (1) |  |  | (1) |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  |  |  | —  |  |  | 1  |  |  | —  |  |  |  |  |  |  |  |  | 159  |  | b | 159  |  |  |
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| Net gain on sales of assets | —  |  |  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  |  |  | —  |  |  | —  |  |  | —  |  |  |  |  |  |  |  |  | (473) |  | c | (473) |  |  |
| Operating income (loss) | 603  |  |  |  |  | 249  |  |  | 852  |  |  | 552  |  | d | (5) |  |  | 547  |  |  | 1,320  |  |  |  |  | (75) |  |  | (25) |  | d | 25  |  |  |  |  |  |  |  |  | (207) |  | d | 2,437  |  | d |
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| Interest expense, net | 2  |  |  |  |  | —  |  |  | 2  |  |  | 139  |  |  | —  |  |  | 139  |  |  | 39  |  | e |  |  | —  |  |  | —  |  |  | 6  |  |  |  |  |  |  |  |  | 412  |  |  | 598  |  |  |
| Provision for income taxes | —  |  |  |  |  | —  |  |  | —  |  |  | 238  |  |  | 1  |  |  | 239  |  |  | 606  |  |  |  |  | —  |  |  | —  |  |  | 2  |  |  |  |  |  |  |  |  | 97  |  | f | 944  |  |  |
| Total assets at December 31, 2020 | 2,574  |  |  |  |  | 5,163  |  |  | 7,737  |  |  | 8,474  |  |  | 1,678  |  |  | 10,152  |  |  | 16,918  |  |  |  |  | 1,760  |  |  | 211  |  |  | 877  |  |  |  |  |  |  |  |  | 4,489  |  |  | 42,144  |  |  |
| Capital expenditures | 102  |  |  |  |  | 326  |  |  | 428  |  |  | 141  |  |  | 42  |  |  | 183  |  |  | 1,161  |  |  |  |  | 19  |  |  | 6  |  |  | 29  |  |  |  |  |  |  |  |  | 135  |  | g | 1,961  |  |  |

a.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.b.Includes charges totaling $130 million associated with a framework for the resolution of all current and future potential talc-related litigation. Refer to Note 12 for further discussion.c.Includes a $486 million gain associated with the sale of FCX’s interests in the Kisanfu undeveloped project. Refer to Note 2 for further discussion.d.Includes charges totaling $258 million associated with (i) idle facility costs (Cerro Verde), contract cancellation and other charges directly related to the COVID-19 pandemic and (ii) the April 2020 revised operating plans (including employee separation costs). These charges were primarily recorded in the Cerro Verde segment ($89 million), Corporate, Other & Eliminations ($57 million) and the Rod & Refining segment ($30 million). e.Includes charges totaling $35 million associated with PT-FI's historical contested tax audits. Refer to Note 12 for further discussion.f.Includes tax charges totaling $135 million associated with the sale of the Kisanfu undeveloped project, partly offset by tax credits of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project.g.Includes capital expenditures for the Indonesia smelter projects of $105 million.  
  
  
  
  
  
  
  
  
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