Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 17, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | NEWMONT MINING CORP /DE/ | |
Entity Central Index Key | 1,164,727 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 533,233,294 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Sales | $ 1,659 | $ 1,462 | |
Costs and expenses | |||
Costs applicable to sales (1) | [1] | 933 | 851 |
Depreciation and amortization | 293 | 276 | |
Reclamation and remediation (Note 5) | 30 | 21 | |
Exploration | 36 | 30 | |
Advanced projects, research and development | 26 | 27 | |
General and administrative | 55 | 53 | |
Other expense, net (Note 6) | 17 | 18 | |
Total costs and expenses | 1,390 | 1,276 | |
Other income (expense) | |||
Other income, net (Note 7) | (9) | 96 | |
Interest expense, net | (67) | (74) | |
Total other income (expense) | (76) | 22 | |
Income (loss) before income and mining tax and other items | 193 | 208 | |
Income and mining tax benefit (expense) (Note 8) | (110) | (227) | |
Equity income (loss) of affiliates | (2) | (5) | |
Net income (loss) from continuing operations | 81 | (24) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (23) | 159 | |
Net income (loss) | 58 | 135 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Continuing operations (Note 9) | (12) | 12 | |
Discontinued operations (Note 3) | (95) | ||
Net loss (income) attributable to noncontrolling interests, net of tax | (12) | (83) | |
Net income (loss) attributable to Newmont stockholders | 46 | 52 | |
Net income (loss) attributable to Newmont stockholders: | |||
Continuing operations | 69 | (12) | |
Discontinued operations | (23) | 64 | |
Net income (loss) attributable to Newmont stockholders | $ 46 | $ 52 | |
Net income (loss) per common share, Basic (Note 10) | |||
Continuing operations (in dollars per share) | $ 0.13 | $ (0.02) | |
Discontinued operations (in dollars per share) | (0.04) | 0.12 | |
Income (loss) per common share, basic | 0.09 | 0.10 | |
Net income (loss) per common share, Diluted (Note 10) | |||
Continuing operations (in dollars per share) | 0.13 | (0.02) | |
Discontinued operations (in dollars per share) | (0.04) | 0.12 | |
Income (loss) per common share, diluted | 0.09 | 0.10 | |
Cash dividends declared per common share | $ 0.050 | $ 0.025 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 58 | $ 135 |
Other comprehensive income (loss): | ||
Change in marketable securities, net of $- and $- tax benefit (expense), respectively | (7) | (77) |
Foreign currency translation adjustments | 4 | 3 |
Change in pension and other post-retirement benefits, net of $(4) and $(2), tax benefit (expense), respectively | 6 | 3 |
Change in fair value of cash flow hedge instruments, net of $(4) and $(8) tax benefit (expense), respectively | 9 | 19 |
Other comprehensive income (loss) | 12 | (52) |
Comprehensive income (loss) | 70 | 83 |
Comprehensive income (loss) attributable to: | ||
Newmont stockholders | 58 | |
Noncontrolling interests | 12 | 83 |
Comprehensive income (loss) | $ 70 | $ 83 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | $ 0 | $ 0 |
Change in pension and other post-retirement benefits, tax benefit (expense) | (4) | (2) |
Change in fair value of cash flow hedge instruments, tax benefit (expense) | $ (4) | $ (8) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net income (loss) | $ 58 | $ 135 |
Adjustments: | ||
Depreciation and amortization | 293 | 276 |
Stock-based compensation (Note 12) | 16 | 16 |
Reclamation and remediation | 29 | 20 |
Loss (income) from discontinued operations (Note 3) | 23 | (159) |
Deferred income taxes | 56 | 138 |
Gain on asset and investment sales, net | (2) | (104) |
Other operating adjustments and inventory write-downs | 81 | 92 |
Net change in operating assets and liabilities (Note 22) | (175) | (257) |
Net cash provided by (used in) operating activities of continuing operations | 379 | 157 |
Net cash provided by (used in) operating activities of discontinued operations (1) | (6) | 369 |
Net cash provided by (used in) operating activities | 373 | 526 |
Investing activities: | ||
Additions to property, plant and mine development | (180) | (280) |
Proceeds from sales of investments | 19 | 184 |
Proceeds from sales of other assets | 2 | 6 |
Acquisitions, net | (2) | |
Other | 1 | (4) |
Net cash provided by (used in) investing activities of continuing operations | (160) | (94) |
Net cash provided by (used in) investing activities of discontinued operations | (17) | |
Net cash provided by (used in) investing activities | (160) | (111) |
Financing activities: | ||
Dividends paid to common stockholders | (27) | (13) |
Distributions to noncontrolling interests | (32) | |
Funding from noncontrolling interests | 21 | 12 |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) |
Repayment of debt | (1) | (499) |
Dividends paid to noncontrolling interests | (146) | |
Other | 1 | |
Net cash provided by (used in) financing activities of continuing operations | (52) | (649) |
Net cash provided by (used in) financing activities of discontinued operations | (93) | |
Net cash provided by (used in) financing activities | (52) | (742) |
Effect of exchange rate changes on cash | 2 | 6 |
Net change in cash and cash equivalents | 163 | (321) |
Less net cash provided by (used in) Batu Hijau discontinued operations | 261 | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 163 | (582) |
Cash and cash equivalents at beginning of period | 2,756 | 2,363 |
Cash and cash equivalents at end of period | 2,919 | 1,781 |
Discontinued operations disposed of by sale | ||
Adjustments: | ||
Loss (income) from discontinued operations (Note 3) | 23 | |
PTNNT - Batu Hijau | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Net cash provided by (used in) operating activities of discontinued operations (1) | (3) | |
Holt royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Loss (income) from discontinued operations (Note 3) | 23 | 26 |
Net cash provided by (used in) operating activities of discontinued operations (1) | $ (3) | $ (2) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 2,919 | $ 2,756 |
Trade receivables | 102 | 127 |
Other accounts receivables | 183 | 216 |
Investments (Note 15) | 51 | 56 |
Inventories (Note 16) | 666 | 617 |
Stockpiles and ore on leach pads (Note 17) | 772 | 763 |
Other current assets | 145 | 142 |
Current assets | 4,838 | 4,677 |
Property, plant and mine development, net | 12,378 | 12,485 |
Investments (Note 15) | 208 | 227 |
Stockpiles and ore on leach pads (Note 17) | 1,817 | 1,864 |
Deferred income tax assets | 1,285 | 1,331 |
Other non-current assets | 443 | 447 |
Total assets | 20,969 | 21,031 |
LIABILITIES | ||
Debt (Note 18) | 572 | 566 |
Accounts payable | 305 | 320 |
Employee-related benefits | 194 | 304 |
Income and mining taxes payable | 162 | 153 |
Other current liabilities (Note 19) | 332 | 407 |
Current liabilities | 1,565 | 1,750 |
Debt (Note 18) | 4,049 | 4,049 |
Reclamation and remediation liabilities (Note 5) | 2,044 | 2,029 |
Deferred income tax liabilities | 607 | 592 |
Employee-related benefits | 427 | 411 |
Other non-current liabilities (Note 19) | 361 | 326 |
Total liabilities | 9,053 | 9,157 |
EQUITY | ||
Common stock | 853 | 849 |
Additional paid-in capital | 9,489 | 9,490 |
Accumulated other comprehensive income (loss) (Note 21) | (322) | (334) |
Retained earnings | 735 | 716 |
Newmont stockholders' equity | 10,755 | 10,721 |
Noncontrolling interests | 1,161 | 1,153 |
Total equity | 11,916 | 11,874 |
Total liabilities and equity | $ 20,969 | $ 21,031 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATIO The interim Condensed Consolidated Financial Statements (“interim statements”) of Newmont Mining Corporation and its subsidiaries (collectively, “Newmont” or the “Company”) are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with Newmont’s Consolidated Financial Statements for the year ended December 31, 2016 filed on February 21, 2017 on Form 10-K. The year-end balance sheet data was derived from the audited financial statements and, in accordance with the instructions to Form 10-Q, certain information and footnote disclosures required by United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted. References to “A$” refers to Australian currency and “C$” refers to Canadian currency. On November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PT Newmont Nusa Tenggara (“PTNNT”), which operated the Batu Hijau copper and gold mine (“Batu Hijau”) in Indonesia (the “Batu Hijau Transaction”). As a result, Newmont presents Batu Hijau as a discontinued operation for all periods presented. Accordingly, (i) our Condensed Consolidated Statements of Operations and Cash Flows have been reclassified to present Batu Hijau as a discontinued operation for all periods presented and (ii) the amounts presented in these notes relate only to our continuing operations, unless otherwise noted. For additional information regarding our discontinued operations, see Note 3. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold and copper. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development , net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates. Recently Adopted Accounting Pronouncements Stock-based compensation I n March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification of cash payments related to tax withholdings on behalf of employees on the Consolidated Statements of Cash Flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company adopted this guidance as of January 1, 2017 and reclassified $(4) from Net cash provided by (used in) operating activities of continuing operations to Net cash provided by (used in) financing activities of continuing operations for the quarter ended March 31, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Inventory In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company records inventory at the lower of cost or net realizable value and the adoption of this guidance effective January 1, 2017 had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements Employee Benefits I n March 2017, ASU No. 2017-07 was issued related to the presentation of net periodic pension and postretirement cost. The new guidance requires the service cost component of net benefit costs be classified similar to other compensation costs arising from services rendered by employees. Other components of net benefit costs are required to be classified separately from the service cost and outside income from operations. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The Company anticipates adopting this new guidance effective January 1, 2018. The adoption of this guidance will result in the reclassification of other components of net benefit costs from Costs and expenses to Other income, net and will no longer be included in costs that benefit the inventory/production process. The adoption of this guidance is not expected to have a material impact on the Consolidated Financial Statements and disclosures. Goodwill I n January 2017, ASU No. 2017-04 was issued which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019 and early adoption is permitted. The Company has adopted this new guidance effective April 1, 2017; however it will not have a material impact on the Consolidated Financial Statements or disclosures. Business Combinations I n January 2017, ASU No. 2017-01 was issued clarifying the definition of a business and providing additional guidance for determining whether transactions should be accounted for as acquisitions of assets or businesses. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The new guidance is required to be applied on a prospective basis. The Company has adopted this new guidance effective April 1, 2017. Restricted Cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which is currently recognized in Other financing activities , on the Statements of Consolidated Cash Flows. Furthermore, the Company will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Statements of Consolidated Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018 and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. Intra-Entity Transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Statement of Cash Flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Leases In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. The Company anticipates adopting the new standard effective January 1, 2019. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is not permitted. The Company expects the updated guidance to have a material impact on the Consolidated Balance Sheets upon adoption. The impact on the Consolidated Statement of Operations will depend on the Company’s investments and future changes in fair value, but is not expected to be material. The Company does not expect a material impact on the Consolidated Statements of Cash Flows. Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017 and will be applied retrospectively. The Company is currently performing an assessment of the revised standard and impacts on the Company’s Consolidated Financial Statements and disclosures. To date, the Company has reviewed a sample of contracts that are representative of the current types of product sold. Management is still in the process of completing their assessment of the impacts; however, based on the sample reviewed, the Company anticipates the standard having a potential impact to the timing of revenue recognition due to a potential change in timing of when control is transferred to the customer. The Company continues to evaluate the potential impacts due to timing of revenue recognition, but does not expect it to have a material impact on the Consolidated Financial Statements. Additionally, the Company continues to assess the potential impacts on insurance payments, variable consideration on concentrate sales, and refining fee classifications under the new standard. Based on preliminary findings, the Company does not expect these areas to have a significant impact on revenue recognition. The Company expects to have an update to the impacts of the standard in the second quarter of 2017. The Company anticipates adopting the new standard effective January 1, 2018. The guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company currently anticipates adopting the standard retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2017 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 3 DISCONTINUED OPERATIONS The details of our Net income (loss) from discontinued operations are set forth below: Three Months Ended March 31, 2017 2016 Holt royalty obligation $ (23) $ (26) Batu Hijau operations — 185 Net income (loss) from discontinued operations $ (23) $ 159 The Batu Hijau Transaction On November 2, 2016, Newmont completed the sale of its 48.5% economic interest in PTNNT, which operated the Batu Hijau copper and gold mine, previously reported in the Asia Pacific segment (renamed as the Australia segment during the first quarter of 2017). Net income (loss) from discontinued operations in the Condensed Consolidated Statements of Operations that relates to Batu Hijau consists of the following: Three Months Ended March 31, 2016 Sales $ 570 Costs and expenses Costs applicable to sales (1) 230 Depreciation and amortization 46 Reclamation and remediation 4 Advanced projects, research and development 1 General and administrative 4 Other expense (income), net (2) 283 Interest expense, net (5) Income (loss) before income and mining tax and other items 282 Income and mining tax benefit (expense) (97) Net income (loss) from discontinued operations 185 Net loss (income) attributable to noncontrolling interests (95) Net income (loss) from discontinued operations attributable to Newmont stockholders $ 90 (1) Excludes Depreciation and amortization and Reclamation and remediation. The condensed consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss). Cash flows from Batu Hijau consist of the following: Three Months Ended March 31, 2016 Net cash provided by (used in) operating activities $ 371 Net cash provided by (used in) investing activities (17) Net cash provided by (used in) financing activities (93) Net cash provided by (used in) Batu Hijau discontinued operations $ 261 The Holt Royalty Obligation Discontinued operations include a retained royalty obligation to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property (“Holt”), was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. In January 2016, St. Andrew was acquired by Kirkland Lake Gold Ltd. At March 31, 2017 and December 31, 2016, the estimated fair value of the Holt royalty obligation was $220 and $187, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations . During the three months ended March 31, 2017 and 2016, the Company recorded a gain (loss) of $(23) and $(26), net of tax benefit (expense) of $13 and $11, respectively, related to the Holt royalty obligation. During the three months ended March 31, 2017 and 2016, the Company paid $3 and $2, respectively, related to the Holt royalty obligation. Refer to Note 13 for additional information on the Holt royalty obligation. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 4 SEGMENT INFORMATION The Company has organized its operations into four geographic regions. The geographic regions include North America, South America, Australia and Africa and represent the Company’s operating segments. The results of these operating segments are reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance. As a result, these operating segments represent the Company’s reportable segments. Notwithstanding this structure, the Company internally reports information on a mine-by-mine basis for each mining operation and has chosen to disclose this information on the following tables. Income (loss) before income and mining tax and other items from reportable segments does not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Newmont’s business activities that are not considered operating segments are included in Corporate and Other. Although they are not required to be included in this footnote, they are provided for reconciliation purposes. Segment results for the prior period have been retrospectively revised to reflect the following changes: · In the second quarter of 2016, Long Canyon was moved from Other North America to its own line item to reflect progression of the project and how it is being reported internally. In November 2016, Long Canyon reached commercial production. · On November 2, 2016, the Company sold the Batu Hijau mine that was previously included in Asia Pacific and presented Batu Hijau as a discontinued operation in the Company’s Condensed Consolidated Financial Statements. For additional information regarding our discontinued operations, see Note 3. · In the first quarter of 2017, the Company renamed its Asia Pacific reporting segment to Australia. Unless otherwise noted, the Company presents only the reportable segments of our continuing operations in the tables below. The financial information relating to the Company’s segments is as follows: Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended March 31, 2017 Carlin $ 253 $ 193 $ 50 $ 3 $ 5 $ 48 Phoenix: Gold 53 43 11 Copper 26 18 5 Total Phoenix 79 61 16 1 (2) 6 Twin Creeks 93 47 13 2 31 8 Long Canyon 39 12 13 5 9 4 CC&V 146 70 29 4 43 4 Other North America — — — 3 (5) 2 North America 610 383 121 18 81 72 Yanacocha 179 119 36 4 8 11 Merian 133 48 21 4 60 16 Other South America — — 4 10 (19) — South America 312 167 61 18 49 27 Boddington: Gold 228 122 26 Copper 45 21 4 Total Boddington 273 143 30 — 86 15 Tanami 92 50 16 3 20 24 Kalgoorlie 104 52 4 2 43 4 Other Australia — — 2 1 (15) 1 Australia 469 245 52 6 134 44 Ahafo 114 76 23 6 9 17 Akyem 154 62 34 1 55 6 Other Africa — — — 1 (1) — Africa 268 138 57 8 63 23 Corporate and Other — — 2 12 (134) 2 Consolidated $ 1,659 $ 933 $ 293 $ 62 $ 193 $ 168 (1) Includes a decrease in accrued capital expenditures of $12; consolidated capital expenditures on a cash basis were $180. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended March 31, 2016 Carlin $ 246 $ 189 $ 49 $ 3 $ 2 $ 36 Phoenix: Gold 64 49 15 Copper 21 22 5 Total Phoenix 85 71 20 — (11) 4 Twin Creeks 159 60 13 2 83 6 Long Canyon — — — 6 (7) 36 CC&V 65 33 18 3 10 21 Other North America — — — 1 (2) — North America 555 353 100 15 75 103 Yanacocha 211 128 69 9 (11) 14 Merian — — 1 3 (4) 82 Other South America — — 3 6 (11) — South America 211 128 73 18 (26) 96 Boddington: Gold 204 111 23 Copper 30 23 5 Total Boddington 234 134 28 — 64 11 Tanami 120 59 19 3 38 24 Kalgoorlie 106 65 5 1 33 3 Other Australia — — 4 1 (5) — Australia 460 258 56 5 130 38 Ahafo 101 57 15 5 20 17 Akyem 135 55 29 1 47 7 Other Africa — — — 1 (2) — Africa 236 112 44 7 65 24 Corporate and Other — — 3 12 (36) 2 Consolidated $ 1,462 $ 851 $ 276 $ 57 $ 208 $ 263 (1) Includes a decrease in accrued capital expenditures of $17; consolidated capital expenditures on a cash basis were $280. |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 3 Months Ended |
Mar. 31, 2017 | |
RECLAMATION AND REMEDIATION | |
RECLAMATION AND REMEDIATION | NOTE 5 RECLAMATION AND REMEDIATION The Company’s mining and exploration activities are subject to various domestic and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation and remediation costs are based principally on current legal and regulatory requirements. The Company is conducting a comprehensive study of the current Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. The revised closure plan will be submitted to Peruvian regulators in the second half of 2017. The revised closure plan may require the Company to provide additional reclamation bonding for Yanacocha. The Company’s Reclamation and remediation expense consisted of: Three Months Ended March 31, 2017 2016 Reclamation accretion $ 25 $ 19 Remediation 4 1 Remediation accretion 1 1 5 2 $ 30 $ 21 The following are reconciliations of Reclamation and remediation liabilities : 2017 2016 Reclamation balance at January 1, $ 1,792 $ 1,300 Additions, changes in estimates and other — 2 Payments and other (5) (2) Accretion expense 25 19 Reclamation balance at March 31, $ 1,812 $ 1,319 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 2 — Payments and other (8) (3) Accretion expense 1 1 Remediation balance at March 31, $ 293 $ 316 The current portion of reclamation liabilities was $28 at March 31, 2017 and December 31, 2016, and was included in Other current liabilities . The current portion of remediation liabilities was $33 at March 31, 2017 and December 31, 2016, and was included in Other current liabilities . At March 31, 2017 and December 31, 2016, $1,812 and $1,792, respectively, were accrued for reclamation obligations relating to operating properties. In addition, the Company is involved in several matters concerning environmental remediation obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At March 31, 2017 and December 31, 2016, $293 and $298, respectively, were accrued for such environmental remediation obligations. Non-current restricted assets held for purposes of settling reclamation and remediation obligations were $66 at March 31, 2017 and December 31, 2016. Of the amounts at March 31, 2017 and December 31, 2016, $43 was related to the Midnite Mine in Washington State, $14 was related to the Ahafo and Akyem mines in Ghana, Africa, and $9 was related to the Con mine in Yellowknife, NWT, Canada. Included in Investments at March 31, 2017 and December 31, 2016, was $21 and $20, respectively, of non-current equity securities, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha and for various locations in North America. Refer to Note 24 for further discussion of reclamation and remediation matters. |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 3 Months Ended |
Mar. 31, 2017 | |
OTHER EXPENSE, NET | |
OTHER EXPENSE, NET | NOTE 6 OTHER EXPENSE, NET Three Months Ended March 31, 2017 2016 Restructuring and other $ 7 $ 13 Impairment of long-lived assets 3 — Acquisition costs 2 — Other 5 5 $ 17 $ 18 |
OTHER INCOME, NET
OTHER INCOME, NET | 3 Months Ended |
Mar. 31, 2017 | |
OTHER INCOME, NET. | |
OTHER INCOME, NET | NOTE 7 OTHER INCOME, NET Three Months Ended March 31, 2017 2016 Foreign currency exchange, net $ (17) $ (16) Gain on asset and investment sales, net 2 104 Other 6 8 $ (9) $ 96 In March 2016, the Company sold its investment in Regis Resources Ltd. (“Regis”) for $184, resulting in a pre-tax gain of $103. The cost of the investment sold was determined using the specific identification method. |
INCOME AND MINING TAXES
INCOME AND MINING TAXES | 3 Months Ended |
Mar. 31, 2017 | |
INCOME AND MINING TAXES | |
INCOME AND MINING TAXES | NOTE 8 INCOME AND MINING TAXES The Company’s Income and mining tax expense (benefit) differed from the amounts computed by applying the U.S. statutory corporate income tax rate for the following reasons: Three Months Ended March 31, 2017 2016 Income (loss) before income and mining tax and other items $ 193 $ 208 Tax at statutory rate 35 % $ 68 35 % $ 73 Reconciling items: Percentage depletion (17) (32) (61) (126) Change in valuation allowance on deferred tax assets 35 67 112 232 Mining and other taxes 10 19 34 71 Tax impact on sale of assets — — (17) (35) Other (6) (12) 6 12 Income and mining tax expense 57 % $ 110 109 % $ 227 A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, each quarter, the Company considers future reversals of existing taxable temporary differences, estimated future taxable income and taxable income in prior carryback year(s), as well as feasible tax planning strategies in each jurisdiction to determine if the deferred tax assets are realizable. If it is determined that the Company will not realize all or a portion of its deferred tax assets, it will place or increase a valuation allowance. Conversely, if determined that it will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of risk factors that could impact the Company’s ability to realize the deferred tax assets. The Company operates in numerous countries and accordingly it is subject to, and pays taxes under, the various tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and pay the income taxes determined to be due. The tax rules and regulations in many countries are complex and subject to interpretation. From time to time, the Company is subject to an audit of its historic income tax filings and in connection with such audits, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved. During the second quarter of 2016, one of the Company’s Canadian subsidiaries received a tax and interest assessment from the Canadian Revenue Authority for $54 relating to a pre-acquisition transaction of Fronteer Gold Inc. and subsidiaries. The taxing authority is disputing the tax attribute that was created as part of the pre-acquisition transaction claimed on Fronteer’s tax return. Due to procedural requirements, the Company paid half of the assessment in the third quarter. The Company intends to vigorously defend its position through all processes available. As a result of the statute of limitations that expire in the next 12 months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions, none of which are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease by approximately $15 to $20 in the next 12 months. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | 3 Months Ended |
Mar. 31, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | NOTE 9 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS Three Months Ended March 31, 2017 2016 Yanacocha $ (1) $ (11) Merian 14 (1) Other (1) — $ 12 $ (12) Newmont has a 51.35% ownership interest in Minera Yanacocha S.R.L., with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%). Newmont consolidates Minera Yanacocha S.R.L. in its Condensed Consolidated Financial Statements due to a majority voting interest. Newmont has a 75.0% economic interest in Suriname Gold Project C.V. (“Merian”), with the remaining interests held by Staatsolie Maatschappij Suriname N.V. (“Staatsolie”), a company wholly owned by the Republic of Suriname. Newmont consolidates Merian, through its wholly-owned subsidiary, Newmont Suriname LLC., in its Condensed Consolidated Financial Statements as the primary beneficiary in the variable interest entity. Merian reached commercial production on October 1, 2016. The following summarizes the assets and liabilities of Merian (including noncontrolling interests). At March 31, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 75 $ 50 Inventories 67 57 Stockpiles and ore on leach pads 14 23 Other current assets (1) 44 37 200 167 Non-current assets: Property, plant and mine development, net 741 746 Other non-current assets (2) 16 8 Total assets $ 957 $ 921 Current liabilities: Other current liabilities (3) $ 38 $ 43 38 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 50 $ 54 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2017 | |
INCOME (LOSS) PER COMMON SHARE | |
INCOME (LOSS) PER COMMON SHARE | NOTE 10 INCOME (LOSS) PER COMMON SHARE Basic income (loss) per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed similarly, except that weighted average common shares is increased to reflect all dilutive instruments, including employee stock awards and convertible debt instruments. The dilutive effects of Newmont’s dilutive securities are calculated using the treasury stock method and only those instruments that result in a reduction in income per share are included in the calculation. Three Months Ended March 31, 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 69 $ (12) Discontinued operations (23) 64 $ 46 $ 52 Weighted average common shares (millions): Basic 532 530 Effect of employee stock-based awards 1 1 Diluted 533 531 Net income (loss) per common share: Basic: Continuing operations $ 0.13 $ (0.02) Discontinued operations (0.04) $ 0.09 $ 0.10 Diluted: Continuing operations $ 0.13 $ (0.02) Discontinued operations (0.04) $ 0.09 $ 0.10 The Company reported a loss from continuing operations attributable to Newmont stockholders for the three months ended March 31, 2016. Therefore, the potentially dilutive effect at March 31, 2016 was not included in the computation of diluted loss per common share attributable to Newmont stockholders because their inclusion would have been anti-dilutive to the computation. Employee stock options to purchase 1 million and 2 million shares of common stock at weighted average exercise prices of $51.30 and $51.77 were outstanding at March 31, 2017 and 2016, respectively, but were not included in the computation of diluted weighted average common shares because their exercise prices exceeded the average price of the Company’s common stock for the respective periods presented. Newmont is required to settle the principal amount of its 2017 Convertible Senior Note in cash and may elect to settle the remaining conversion premium (average share price in excess of the conversion price), if any, in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method. The conversion price exceeded the Company’s share price for the periods presented; therefore, no additional shares were included in the computation of diluted weighted average common shares. |
EMPLOYEE PENSION AND OTHER BENE
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 11 EMPLOYEE PENSION AND OTHER BENEFIT PLANS Three Months Ended March 31, 2017 2016 Pension benefit costs, net: Service cost $ 7 $ 7 Interest cost 11 11 Expected return on plan assets (15) (14) Amortization, net 7 6 Settlements 4 — $ 14 $ 10 Three Months Ended March 31, 2017 2016 Other benefit costs, net: Interest cost $ 1 $ 1 Amortization, net (1) (1) $ — $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 STOCK-BASED COMPENSATION Three Months Ended March 31, 2017 2016 Stock-based compensation: Performance leveraged stock units $ 8 $ 8 Restricted stock units 7 6 Strategic stock units 1 2 $ 16 $ 16 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 3 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 13 FAIR VALUE ACCOUNTING Fair value accounting establishes a fair value 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 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value at March 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,919 $ 2,919 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 51 51 — — Other 21 21 — — Trade receivable from provisional copper and 84 84 — — Batu Hijau contingent consideration 13 — — 13 $ 3,156 $ 3,143 $ — $ 13 Liabilities: Debt (1) $ 5,023 $ — $ 5,023 $ — Derivative instruments, net: Foreign exchange forward contracts 13 — 13 — Diesel forward contracts 2 — 2 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 220 — — 220 $ 5,271 $ — $ 5,038 $ 233 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 60 60 — — Other 16 16 — — Marketable debt securities: Asset backed commercial paper 18 — — 18 Trade receivable from provisional copper and 113 113 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 3,013 $ — $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Boddington contingent consideration 14 — — 14 Holt royalty obligation 187 — — 187 $ 5,107 $ — $ 4,906 $ 201 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,606 and $4,599 at March 31, 2017 and December 31, 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 14. All other fair value disclosures in the above table are presented on a gross basis. The Company’s cash and cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities. The Company’s restricted assets, which include cash and cash equivalents, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Restricted cash assets that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities. The Company’s marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The Company’s net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy. The estimated value of the Batu Hijau contingent consideration was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future copper prices using the Company’s long-term copper price, and (iii) estimated production and/or development dates for Batu Hijau Phase 7 and the Elang projects in Indonesia. The contingent consideration is classified within Level 3 of the fair value hierarchy. The Company’s derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility, and correlations of such inputs. The Company’s derivatives trade in liquid markets and as such model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy. The estimated value of the Boddington contingent royalty was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold and copper prices, using the Company’s long-term gold and copper prices, and (iii) a Monte Carlo valuation model to simulate costs applicable to sales using the Company’s Australian to U.S. dollar exchange rate. This contingent royalty is capped at $100, of which $80 has been paid to date. The contingent royalty is classified within Level 3 of the fair value hierarchy. The estimated fair value of the Holt royalty obligation was determined using (i) a discounted cash flow model, (ii) a Monte Carlo valuation model to simulate future gold prices using the Company’s long-term gold price, (iii) various gold production scenarios from reserve and resource information and (iv) a weighted average discount rate. The royalty obligation is classified within Level 3 of the fair value hierarchy. The Company’s marketable debt securities included investments in auction rate securities and asset backed commercial paper. The Company reviewed the fair value of the auction rate securities and asset backed commercial paper on a quarterly basis prior to the investments being redeemed in November 2016 and January 2017, respectively. The marketable debt securities were traded in markets that were not active, traded infrequently and had little price transparency. Therefore, the investments were classified as Level 3 of the fair value hierarchy. The following tables set forth a summary of the quantitative and qualitative information related to the unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at March 31, 2017 and December 31, 2016: At March 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 3.13 % Short-term gold price $ 1,219 Long-term gold price $ 1,300 Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 220 Monte Carlo Discount rate 3.18 % Short-term gold price $ 1,219 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 450-1,684 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Boddington contingent consideration $ 14 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Short-term copper price $ 2.39 Long-term copper price $ 3.00 Long-term Australian to U.S. dollar exchange rate $ 0.80 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332-1,570 The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (2) (3) (5) Revaluation — — — 1 36 37 Fair value at March 31, 2017 $ — $ 13 $ 13 $ 13 $ 220 $ 233 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (2) (2) Revaluation — 2 2 — 37 37 Fair value at March 31, 2016 $ 7 $ 20 $ 27 $ 10 $ 164 $ 174 (1) The gain (loss) recognized is included in Other comprehensive income (loss) . (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (3) The gain (loss) recognized is included in Other expense, net. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 14 DERIVATIVE INSTRUMENTS The Company’s strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. The Company has and will continue to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. Cash Flow Hedges The following foreign currency and diesel contracts were transacted for risk management purposes and qualify as cash flow hedges. The effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income (loss) and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings . Foreign Currency Contracts The Company had the following foreign currency derivative contracts in Australia outstanding at March 31, 2017: Expected Maturity Date 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 71 6 77 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 4 % The A$ hedges run through the first quarter of 2018. Diesel Fixed Forward Contracts The Company had the following diesel derivative contracts in North America outstanding at March 31, 2017: Expected Maturity Date 2017 2018 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 17 5 22 Average rate ($/gallon) 1.63 1.62 1.63 Expected hedge ratio 50 % 17 % Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the third quarter of 2018. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at March 31, 2017 and December 31, 2016: Fair Values of Derivative Instruments At March 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 13 $ — Diesel fixed forwards 1 — 3 — Total derivative instruments $ 1 $ — $ 16 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — Total derivative instruments $ 4 $ — $ 27 $ 1 As of March 31, 2017 and December 31, 2016, all hedging instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. As of March 31, 2017 and December 31, 2016, the potential effect of netting derivative assets against liabilities due to the master netting agreement was $1 and $4, respectively. The following table shows the location and amount of gains (losses) reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges. Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2017 2016 2017 2016 2017 2016 For the three months ended March 31, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 4 $ 7 $ (3) $ (2) $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (8) $ (10) $ (2) $ (9) $ (2) $ (3) (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense , net . Based on fair values at March 31, 2017, the amount to be reclassified from Accumulated other comprehensive income (loss) , net of tax, to income for derivative instruments during the next 12 months is a loss of approximately $20. Batu Hijau Contingent Consideration Consideration received by the Company in conjunction with the sale of PTNNT included the Contingent Payment and the Elang Development deferred payment deeds, which were determined to be financial instruments that met the definition of a derivative, but do not qualify for hedge accounting, under ASC 815. See Note 13 for additional information. Contingent consideration of $13 was included in Other non-current assets in the Company's Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016. There was no change in the value of the contingent consideration during the first quarter of 2017. Provisional Gold and Copper Sales The Company’s provisional gold and copper concentrate sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement. At March 31, 2017, Newmont had gold and copper sales of 101,000 ounces and 28 million pounds priced at an average of $1,246 per ounce and $2.66 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2017 | |
INVESTMENTS | |
INVESTMENTS | NOTE 15 INVESTMENTS At March 31, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 32 $ 24 $ (5) $ 51 Non-current: Marketable equity securities $ 20 $ 1 $ — $ 21 Other investments, at cost 6 — — 6 Equity method investments: TMAC (29.0%) 107 — — 107 La Zanja (46.94%) 70 — — 70 Euronimba (43.5%) 4 — — 4 181 — — 181 $ 207 $ 1 $ — $ 208 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Marketable equity securities 18 2 — 20 Other investments, at cost 6 — — 6 Equity method investments: TMAC (29.0%) 108 — — 108 La Zanja (46.94%) 71 — — 71 Euronimba (43.5%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 In March 2017, Newmont announced an agreement to access and explore a highly prospective gold district in Canada’s Yukon Territory through a private placement with Goldstrike Resources for a cost of approximately $5. This agreement closed in April 2017. In January 2017, the majority of the Company’s asset backed commercial paper was called at par resulting in no realized gain or loss. There were no investment impairments for other-than-temporary declines in value during the three months ended March 31, 2017. During the first quarter of 2017 , there was a $ 3 decrease in the fair value of marketable securities previously impaired, primarily due to a decrease in Gabriel Resources Ltd., partially offset by an increase in Pilot Gold. During the three months ended March 31, 2016, the Company recognized no investment impairments for other-than-temporary declines in value. During the first quarter of 2016, there was a $ 78 decrease in the fair value of marketable securities previously impaired, primarily due to Regis, which was sold in March 2016. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
INVENTORIES | |
INVENTORIES | NOTE 16 INVENTORIES At March 31, At December 31, 2017 2016 Materials and supplies $ 403 $ 391 In-process 144 130 Concentrate and copper cathode 85 67 Precious metals 34 29 $ 666 $ 617 |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 3 Months Ended |
Mar. 31, 2017 | |
Stockpiles and ore on leach pads | |
STOCKPILES AND ORE ON LEACH PADS | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 17 STOCKPILES AND ORE ON LEACH PADS At March 31, At December 31, 2017 2016 Current: Stockpiles $ 387 $ 393 Ore on leach pads 385 370 $ 772 $ 763 Non-current: Stockpiles $ 1,487 $ 1,506 Ore on leach pads 330 358 $ 1,817 $ 1,864 At March 31, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 417 $ 421 Phoenix 78 80 Twin Creeks 337 328 Long Canyon 19 9 CC&V 350 369 Yanacocha 344 367 Merian 27 27 Boddington 405 394 Tanami 9 19 Kalgoorlie 118 113 Ahafo 379 386 Akyem 106 114 $ 2,589 $ 2,627 During the three months ended March 31, 2017, the Company recorded write-downs of $40 and $13, classified as components of Costs applicable to sale and Depreciation and amortization , respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are primarily a result of stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit in North America, higher future processing costs from leach pads in South America and higher future processing costs and lower recovery in Africa. Of the write-downs during the three months ended March 31, 2017, $23 is related to Carlin, $4 to Twin Creeks, $8 to Yanacocha and $18 to Ahafo. During the three months ended March 31, 2016, the Company recorded write-downs of $50 and $24, classified as classified as components of Costs applicable to sales and Depreciation and amortization , respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Adjustments to net realizable value are a result of higher future processing costs in addition to stripping campaigns driving lower grade and lower recovery resulting in higher costs per unit. Of the write-downs in the first quarter of 2016, $27 was related to Carlin, $2 to Twin Creeks and $45 to Yanacocha. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2017 | |
DEBT | |
DEBT | NOTE 18 DEBT Scheduled minimum debt repayments are $575 for the remainder of 2017, $- in 2018, $626 in 2019, $- in 2020, $- in 2021 and $3,466 thereafter. Scheduled minimum capital lease repayments are $4 in 2017, $4 in 2018, $3 in 2019, $1 in 2020, $1 in 2021 and $2 thereafter. |
OTHER LIABILITIES
OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 19 OTHER LIABILITIES At March 31, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 82 $ 99 Accrued interest 64 57 Reclamation and remediation liabilities 61 61 Accrued capital expenditures 42 53 Royalties 28 52 Derivative instruments 16 27 Holt royalty obligation 13 13 Taxes other than income and mining 5 8 Boddington contingent consideration 4 3 Other 17 34 $ 332 $ 407 Other non-current liabilities: Holt royalty obligation $ 207 $ 174 Income and mining taxes 53 50 Power supply agreements 32 31 Social development obligations 24 25 Boddington contingent consideration 9 11 Derivative instruments — 1 Other 36 34 $ 361 $ 326 |
CHANGES IN EQUITY
CHANGES IN EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
CHANGES IN EQUITY | |
CHANGES IN EQUITY | NOTE 20 CHANGES IN EQUITY Three Months Ended March 31, 2017 2016 Common stock: At beginning of period $ 849 $ 847 Stock-based awards 4 2 At end of period 853 849 Additional paid-in capital: At beginning of period 9,490 9,427 Stock-based awards (1) 10 At end of period 9,489 9,437 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 12 (52) At end of period (322) (386) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 46 52 Dividends paid (27) (13) At end of period 735 1,449 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests 12 83 Distributions declared to noncontrolling interests (1) (33) — Cash calls requested from noncontrolling interests (2) 29 26 Dividends paid to noncontrolling interests — (146) Other — (1) At end of period 1,161 2,904 Total equity $ 11,916 $ 14,253 . (1) Distributions declared to noncontrolling interests of $33 for the three months ended March 31, 2017 represents distributions declared to Staatsolie from Merian, of which $32 was paid as of March 31, 2017. (2) Cash calls requested from noncontrolling interests of $29 and $26 for the three months ended March 31, 2017 and March 31, 2016, respectively, represents cash calls requested from Staatsolie for the Merian mine, of which $21 and $12 has been paid as of March 31, 2017 and March 31, 2016, respectively. |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 21 RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Pension and Changes in Unrealized gain Foreign other fair value of (loss) on currency post-retirement cash flow marketable translation benefit hedge securities, net adjustments adjustments instruments Total Balance at December 31, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (7) 4 — 1 (2) Reclassifications from accumulated other comprehensive income (loss) — — 6 8 14 Net current-period other comprehensive income (loss) (7) 4 6 9 12 Balance at March 31, 2017 $ (108) $ 122 $ (217) $ (119) $ (322) Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Operations Three Months Ended March 31, 2017 2016 Marketable securities adjustments: Sale of marketable securities $ — $ (103) Other income, net Total before tax — (103) Tax benefit (expense) — — Net of tax $ — $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 5 (1) Settlements 4 — Other expense, net Total before tax 10 5 Tax benefit (expense) (4) (2) Net of tax $ 6 $ 3 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 10 $ 19 Costs applicable to sales Interest rate contracts 2 3 Interest expense, net Total before tax 12 22 Tax benefit (expense) (4) (8) Net of tax $ 8 $ 14 Total reclassifications for the period, net of tax $ 14 $ (86) (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2016 filed February 21, 2017 on Form 10-K for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 22 NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by (used in) operating activities of continuing operations attributable to the net change in operating assets and liabilities is composed of the following: Three Months Ended March 31, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 70 $ (52) Inventories, stockpiles and ore on leach pads (72) (96) Other assets (2) (6) Increase (decrease) in operating liabilities: Accounts payable (19) (10) Reclamation liabilities (13) (5) Other accrued liabilities (139) (88) $ (175) $ (257) |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | NOTE 23 CONDENSED CONSOLIDATING FINANCIAL STATEMENTS The following Condensed Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on debt securities issued under a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities guaranteed by Newmont USA) may be issued (the “Shelf Registration Statement”). In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantees are full and unconditional, and no other subsidiary of Newmont guaranteed any security issued under the Shelf Registration Statement. There are no restrictions on the ability of Newmont or Newmont USA to obtain funds from its subsidiaries by dividend or loan. Three Months Ended March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 403 $ 1,256 $ — $ 1,659 Costs and expenses Costs applicable to sales (1) — 285 648 — 933 Depreciation and amortization 1 79 213 — 293 Reclamation and remediation — 4 26 — 30 Exploration — 9 27 — 36 Advanced projects, research and development — 1 25 — 26 General and administrative — 17 38 — 55 Other expense, net — 6 11 — 17 1 401 988 — 1,390 Other income (expense) Other income, net 3 — (12) — (9) Interest income - intercompany 24 — 7 (31) — Interest expense - intercompany (8) — (23) 31 — Interest expense, net (62) (2) (3) — (67) (43) (2) (31) — (76) Income (loss) before income and mining tax and other items (44) — 237 — 193 Income and mining tax benefit (expense) 16 — (126) — (110) Equity income (loss) of affiliates 74 (84) (1) 9 (2) Net income (loss) from continuing operations 46 (84) 110 9 81 Net income (loss) from discontinued operations — — (23) — (23) Net income (loss) 46 (84) 87 9 58 Net loss (income) attributable to noncontrolling interests Continuing operations — — (12) — (12) Discontinued operations — — — — — — — (12) — (12) Net income (loss) attributable to Newmont stockholders $ 46 $ (84) $ 75 $ 9 $ 46 Comprehensive income (loss) $ 58 $ (79) $ 82 $ 9 $ 70 Comprehensive loss (income) attributable to noncontrolling interests — — (12) — (12) Comprehensive income (loss) attributable to Newmont stockholders $ 58 $ (79) $ 70 $ 9 $ 58 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended March 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 471 $ 991 $ — $ 1,462 Costs and expenses Costs applicable to sales (1) — 306 545 — 851 Depreciation and amortization — 84 192 — 276 Reclamation and remediation — 3 18 — 21 Exploration — 6 24 — 30 Advanced projects, research and development — 2 25 — 27 General and administrative — 17 36 — 53 Other expense, net — 4 14 — 18 — 422 854 — 1,276 Other income (expense) Other income, net 9 — 87 — 96 Interest income - intercompany 30 — 9 (39) — Interest expense - intercompany (8) — (31) 39 — Interest expense, net (71) (2) (1) — (74) (40) (2) 64 — 22 Income (loss) before income and mining tax and other items (40) 47 201 — 208 Income and mining tax benefit (expense) 75 (11) (291) — (227) Equity income (loss) of affiliates 17 (274) 2 250 (5) Net income (loss) from continuing operations 52 (238) (88) 250 (24) Net income (loss) from discontinued operations — — 159 — 159 Net income (loss) 52 (238) 71 250 135 Net loss (income) attributable to noncontrolling interests Continuing operations — — 12 — 12 Discontinued operations — — (95) — (95) — — (83) — (83) Net income (loss) attributable to Newmont stockholders $ 52 $ (238) $ (12) $ 250 $ 52 Comprehensive income (loss) $ — $ (232) $ 10 $ 305 $ 83 Comprehensive loss (income) attributable to noncontrolling interests — — (83) — (83) Comprehensive income (loss) attributable to Newmont stockholders $ — $ (232) $ (73) $ 305 $ — (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ (51) $ (12) $ 442 $ — $ 379 Net cash provided by (used in) operating activities of discontinued operations — — (6) — (6) Net cash provided by (used in) operating activities (51) (12) 436 — 373 Investing activities: Additions to property, plant and mine development — (60) (120) — (180) Proceeds from sales of investments — — 19 — 19 Proceeds from sales of other assets — — 2 — 2 Acquisitions, net — — (2) — (2) Other — — 1 — 1 Net cash provided by (used in) investing activities of continuing operations — (60) (100) — (160) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities — (60) (100) — (160) Financing activities: Dividends paid to common stockholders (27) — — — (27) Distributions to noncontrolling interests — — (32) — (32) Funding from noncontrolling interests — — 21 — 21 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Repayment of debt — (1) — — (1) Net intercompany borrowings (repayments) 78 86 (164) — — Net cash provided by (used in) financing activities of continuing operations 51 72 (175) — (52) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 51 72 (175) — (52) Effect of exchange rate changes on cash — — 2 — 2 Net change in cash and cash equivalents — — 163 — 163 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — — 163 — 163 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ 1 $ 2,918 $ — $ 2,919 Three Months Ended March 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 757 $ 44 $ 186 $ (830) $ 157 Net cash provided by (used in) operating activities of discontinued operations — — 369 — 369 Net cash provided by (used in) operating activities 757 44 555 (830) 526 Investing activities: Additions to property, plant and mine development — (66) (214) — (280) Proceeds from sales of investments — — 184 — 184 Proceeds from sales of other assets — — 6 — 6 Other — — (4) — (4) Net cash provided by (used in) investing activities of continuing operations — (66) (28) — (94) Net cash provided by (used in) investing activities of discontinued operations — — (17) — (17) Net cash provided by (used in) investing activities — (66) (45) — (111) Financing activities: Dividends paid to common stockholders (13) (830) — 830 (13) Funding from noncontrolling interests — — 12 — 12 Payments for withholding of employee taxes related to stock-based compensation — (4) — — (4) Repayment of debt (498) (1) — — (499) Dividends paid to noncontrolling interests — — (146) — (146) Net intercompany borrowings (repayments) (246) (320) 566 — — Other — — 1 — 1 Net cash provided by (used in) financing activities of continuing operations (757) (1,155) 433 830 (649) Net cash provided by (used in) financing activities of discontinued operations — — (93) — (93) Net cash provided by (used in) financing activities (757) (1,155) 340 830 (742) Effect of exchange rate changes on cash — — 6 — 6 Net change in cash and cash equivalents — (1,177) 856 — (321) Less net cash provided by (used in) Batu Hijau discontinued operations — — 261 — 261 — (1,177) 595 — (582) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 4 $ 1,777 $ — $ 1,781 At March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,918 $ — $ 2,919 Trade receivables — 37 65 — 102 Other accounts receivables — — 183 — 183 Intercompany receivable 8,055 6,158 12,184 (26,397) — Investments — — 51 — 51 Inventories — 165 501 — 666 Stockpiles and ore on leach pads — 212 560 — 772 Other current assets — 75 70 — 145 Current assets 8,055 6,648 16,532 (26,397) 4,838 Property, plant and mine development, net 20 3,118 9,271 (31) 12,378 Investments — 9 199 — 208 Investments in subsidiaries 13,301 471 — (13,772) — Stockpiles and ore on leach pads — 612 1,205 — 1,817 Deferred income tax assets 493 34 1,248 (490) 1,285 Non-current intercompany receivable 2,107 608 946 (3,661) — Other non-current assets — 224 219 — 443 Total assets $ 23,976 $ 11,724 $ 29,620 $ (44,351) $ 20,969 Liabilities: Debt $ 567 $ 2 $ 3 $ — $ 572 Accounts payable — 65 240 — 305 Intercompany payable 8,459 4,958 12,980 (26,397) — Employee-related benefits — 79 115 — 194 Income and mining taxes — 2 160 — 162 Other current liabilities 64 76 192 — 332 Current liabilities 9,090 5,182 13,690 (26,397) 1,565 Debt 4,041 3 5 — 4,049 Reclamation and remediation liabilities — 250 1,794 — 2,044 Deferred income tax liabilities 9 91 997 (490) 607 Employee-related benefits — 274 153 — 427 Non-current intercompany payable 81 — 3,611 (3,692) — Other non-current liabilities — 23 338 — 361 Total liabilities 13,221 5,823 20,588 (30,579) 9,053 Equity: Newmont stockholders’ equity 10,755 5,901 7,871 (13,772) 10,755 Noncontrolling interests — — 1,161 — 1,161 Total equity 10,755 5,901 9,032 (13,772) 11,916 Total liabilities and equity $ 23,976 $ 11,724 $ 29,620 $ (44,351) $ 20,969 At December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 106 — 127 Other accounts receivables — 2 214 — 216 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 219 — 227 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 223 — 447 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 COMMITMENTS AND CONTINGENCIES General Estimated losses from contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the contingency and estimated range of loss, if determinable, is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Operating Segments The Company’s operating and reportable segments are identified in Note 4. Except as noted in this paragraph, all of the Company’s commitments and contingencies specifically described herein are included in Corporate and Other. The Yanacocha matters relate to the South America reportable segment. The Fronteer matters relate to the North America reportable segment. Environmental Matters The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. In early 2015, the Peruvian government agency responsible for certain environmental regulations, the Ministry of the Environment (“MINAM”), issued proposed water quality criteria for designated beneficial uses which apply to mining companies, including Yanacocha. These criteria would modify the in-stream water quality criteria pursuant to which Yanacocha has been designing water treatment processes and infrastructure. In December 2015, MINAM issued the final regulation that modified the water quality standards and the Company had one year from February 15, 2016, to submit a modification to the previously approved Environmental Impact Assessment (“EIA”). On February 15, 2017, Yanacocha submitted its proposed modification to the EIA. The government has 90 days to review the submission. After approval, MINAM may provide up to 3 years to develop and implement the modifications to the water management system. In the event Yanacocha is unsuccessful in implementing the modifications, MINAM could impose fines and penalties relating to potential intermittent non-compliant exceedances. The Company is conducting a comprehensive study of the current Yanacocha long-term mining and closure plans as part of the requirement to submit an updated closure plan to Peruvian regulators every five years. The revised closure plan will be submitted to Peruvian regulators in the second half of 2017. The revised closure plan may require the Company to provide additional reclamation bonding for Yanacocha. For a complete discussion of the factors that influence our reclamation obligations and the associated risks, refer to Managements’ Discussion and Analysis of Consolidated Financial Condition and Results of Operations under the heading “Critical Accounting Policies” and refer to Risk Factors under the heading “Mine closure, reclamation and remediation costs for environmental liabilities may exceed the provisions we have made” for the year ended December 31, 2016, filed February 21, 2017 on Form 10-K. Estimated future reclamation costs are based principally on legal and regulatory requirements. At March 31, 2017 and December 31, 2016, $1,812 and $1,792, respectively, were accrued for reclamation costs relating to currently or recently producing mineral properties in accordance with asset retirement obligation guidance. The current portion of $28 at March 31, 2017 and December 31, 2016, is included in Other current liabilities . In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company’s best estimate of its liability for these matters, $293 and $298 were accrued for such obligations at March 31, 2017 and December 31, 2016, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities . Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 43% greater or 1% lower than the amount accrued at March 31, 2017. The amounts accrued are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised. Refer to Note 5 for further information regarding reclamation and remediation. Details about certain of the more significant matters are discussed below. Newmont USA Limited - 100% Newmont Owned Ross-Adams mine site. By letter dated June 5, 2007, the U.S. Forest Service (“USFS”) notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont agreed to perform the EE/CA, which has been provided to the USFS. During the first quarter of 2016, the USFS confirmed approval of the EE/CA, and Newmont issued written notice to the USFS certifying that all requirements of the Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont have been completed. The ASAOC will be final upon USFS concurrence with the notice of completion and Newmont payment of USFS response costs. Newmont anticipates that the USFS will issue an Action Memorandum to select the preferred Removal Action alternative identified in the EE/CA. During the third quarter of 2016, Newmont received a notice of completion of work per the ASAOC from the USFS. Newmont is continuing discussions with the USFS on the process to move forward and issue an Action Memorandum and support the development of a Consent Decree. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter. Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned Midnite mine site and Dawn mill site . Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the U.S. Environmental Protection Agency (“EPA”). As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite mine site cleanup costs; and (v) Newmont would post a surety bond for work at the site. During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite mine site in a lump sum payment of $42, which Newmont classified as restricted assets with interest on the Condensed Consolidated Balance Sheets for all periods presented. In 2016, Newmont completed the remedial design process (with the exception of the design of the water treatment plant which is on hold pending final permitting) and subsequently procured a contractor and initiated implementation of the remedial action. The Dawn mill site is regulated by the Washington Department of Health and is in the process of being closed. Remediation at the Dawn mill site began in 2013. The earthworks component of the closure is anticipated to be completed in 2017. The remaining closure activity will consist primarily of addressing groundwater issues The remediation liability for the Midnite mine site and Dawn mill site is approximately $200 at March 31, 2017. Other Legal Matters Minera Yanacocha S.R.L. - 51.35% Newmont Owned Choropampa . In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha’s operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter. Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. In 2011, Yanacocha was served with 23 complaints alleging grounds to nullify the settlements entered into between Yanacocha and the plaintiffs. Yanacocha has answered the complaints and the court has dismissed several of the matters and the plaintiffs have filed appeals. All appeals were referred to the Civil Court of Cajamarca, which affirmed the decisions of the lower court judge. The plaintiffs have filed appeals of such orders before the Supreme Court. Some of these appeals were dismissed by the Supreme Court in favor of Yanacocha and others are pending resolution. Yanacocha will continue to vigorously defend its position. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims. Administrative Actions . The Peruvian government agency responsible for environmental evaluation and inspection, Organismo Evaluacion y Fiscalizacion Ambiental (“OEFA”), conducts periodic reviews of the Yanacocha site. In 2011, 2012, 2013, the first quarter of 2015, second, third and fourth quarters of 2016 and the first quarter of 2017, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. In the first quarter of 2015 and the fourth quarter of 2016, the water authority of Cajamarca issued notices of alleged regulatory violations and resolved some allegations in early 2017 with no findings. The experience with the OEFA and the water authority is that in the case of a finding of violation, remedial action is often the outcome rather than a significant fine. The alleged OEFA violations currently range from zero to 81,605 units and the water authority alleged violations range from zero to 30,000 units, with each unit having a potential fine equivalent to approximately $.00122 based on current exchange rates ($0 to $137). Yanacocha and Conga are responding to all notices of alleged violations, but cannot reasonably predict the outcome of the agency allegations. Conga Project Constitutional Claim . On October 18, 2012, Marco Antonio Arana Zegarra filed a constitutional claim against the Ministry of Energy and Mines and Yanacocha requesting the Court to order the suspension of the Conga project as well as to declare not applicable the October 27, 2010, directorial resolution approving the Conga project Environmental Impact Assessment (“EIA”). On October 23, 2012, a Cajamarca judge dismissed the claims based on formal grounds finding that: (i) plaintiffs had not exhausted previous administrative proceedings; (ii) the directorial resolution approving the Conga EIA is valid, and was not challenged when issued in the administrative proceedings; (iii) there was inadequate evidence to conclude that the Conga project is a threat to the constitutional right of living in an adequate environment; and (iv) the directorial resolution approving the Conga project EIA does not guarantee that the Conga project will proceed, so there was no imminent threat to be addressed by the Court. The plaintiffs appealed the dismissal of the case. The Civil Court of the Superior Court of Cajamarca confirmed the above mentioned resolution and the plaintiff presented an appeal. On March 13, 2015, the Constitutional Court published its ruling stating that the case should be sent back to the first court with an order to formally admit the case and start the judicial process in order to review the claim and the proofs presented by the plaintiff. Yanacocha has answered the claim. Neither the Company nor Yanacocha can reasonably predict the outcome of this litigation. Yanacocha Tax Dispute. In 2000, Yanacocha paid Buenaventura and Minas Conga S.R.L. a total of $29 to assume their respective contractual positions in mining concession agreements with Chaupiloma Dos de Cajamarca S.M.R.L. The contractual rights allowed Yanacocha the opportunity to conduct exploration on the concessions, but not a purchase of the concessions. The tax authority alleges that the payments to Buenaventura and Minas Conga S.R.L. were acquisitions of mining concessions requiring the amortization of the amounts under the Peru Mining Law over the life of the mine. Yanacocha expensed the amounts at issue in the initial year since the payments were not for the acquisition of a concession but rather these expenses represent the payment of an intangible and therefore, amortizable in a single year or proportionally for up to ten years according to Income Tax Law. In 2010, the tax court in Peru ruled in favor of Yanacocha and the tax authority appealed the issue to the judiciary. The first appellate court confirmed the ruling of the tax court in favor of Yanacocha. However, in November, 2015, a Superior Court in Peru made an appellate decision overturning the two prior findings in favor of Yanacocha. Yanacocha has appealed the Superior Court ruling to the Peru Supreme Court. The potential liability in this matter is in the form of fines and interest in an amount up to $75. While the Company has assessed that the likelihood of a ruling against Yanacocha in the Supreme Court as remote, it is not possible to fully predict the outcome of this litigation. NWG Investments Inc. v. Fronteer Gold Inc. In April 2011, Newmont acquired Fronteer Gold Inc. (“Fronteer”). Fronteer acquired NewWest Gold Corporation (“NewWest Gold”) in September 2007. At the time of that acquisition, NWG Investments Inc. (“NWG”) owned approximately 86% of NewWest Gold and an individual named Jacob Safra owned or controlled 100% of NWG. Prior to its acquisition of NewWest Gold, Fronteer entered into a June 2007 lock-up agreement with NWG providing that, among other things, NWG would support Fronteer’s acquisition of NewWest Gold. At that time, Fronteer owned approximately 47% of Aurora Energy Resources Inc. (“Aurora”), which, among other things, had a uranium exploration project in Labrador, Canada. NWG contends that, during the negotiations leading up to the lock-up agreement, Fronteer represented to NWG, among other things, that Aurora would commence uranium mining in Labrador by 2013, that this was a firm date, that Aurora faced no current environmental issues in Labrador and that Aurora’s competitors faced delays in commencing uranium mining. NWG further contends that it entered into the lock-up agreement and agreed to support Fronteer’s acquisition of NewWest Gold in reliance upon these purported representations. On October 11, 2007, less than three weeks after the Fronteer-NewWest Gold transaction closed, a member of the Nunatsiavut Assembly introduced a motion calling for the adoption of a moratorium on uranium mining in Labrador. On April 8, 2008, the Nunatsiavut Assembly adopted a three-year moratorium on uranium mining in Labrador. NWG contends that Fronteer was aware during the negotiations of the NWG/Fronteer lock-up agreement that the Nunatsiavut Assembly planned on adopting this moratorium and that its adoption would preclude Aurora from commencing uranium mining by 2013, but Fronteer nonetheless fraudulently induced NWG to enter into the lock-up agreement. On September 24, 2012, NWG served a summons and complaint on the Company, and then amended the complaint to add Newmont Canada Holdings ULC as a defendant. The complaint also named Fronteer Gold Inc. and Mark O’Dea as defendants. The complaint sought rescission of the merger between Fronteer and NewWest Gold and $750 in damages. In August 2013 the Supreme Court of New York, New York County issued an order granting the defendants’ motion to dismiss on forum non conveniens. Subsequently, NWG filed a notice of appeal of the decision and then a notice of dismissal of the appeal on March 24, 2014. On February 26, 2014, NWG filed a lawsuit in Ontario Superior Court of Justice against Fronteer Gold Inc., Newmont Mining Corporation, Newmont Canada Holdings ULC, Newmont FH B.V. and Mark O’Dea. The Ontario complaint is based upon substantially the same allegations contained in the New York lawsuit with claims for fraudulent and negligent misrepresentation. NWG seeks disgorgement of profits since the close of the NWG deal on September 24, 2007 and damages in the amount of C$1.2 billion. Newmont, along with other defendants, served the plaintiff with its statement of defense on October 17, 2014. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome. Investigations We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible. We are conducting an investigation, with the assistance of outside counsel, relating to certain business activities of the Company and its affiliates and contractors in countries outside the U.S. The investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company has been working with the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice with respect to the investigation. In March 2016, the Company entered into a one-year agreement with the U.S. SEC tolling the statute of limitations relating to the investigation, and in April 2016, entered into a similar agreement with the U.S. Department of Justice. Both of the initial tolling agreements were effective through October 29, 2016. In September 2016, the Company agreed to extend its tolling agreement with the Department of Justice through April 2017, and agreed to a similar extension with the SEC in October 2016. In late February 2017, the Company received a declination letter from the SEC relating to this investigation indicating that they do not intend to recommend an enforcement action. As of the filing of these financial statements, we cannot predict the ultimate outcome of these matters. Accordingly, no provision with respect to these matters has been made in our consolidated financial statements. Other Commitments and Contingencies The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Royalty payments payable, net of recoverable amounts, are $30 in 2017, $30 in 2018, $31 in 2019, $33 in 2020, $34 in 2021 and $35 thereafter. On June 25, 2009, the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62. At March 31, 2017 and December 31, 2016, the estimated fair value of the unpaid contingent consideration was approximately $13 and $14, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net . This contingent royalty is capped at $100 in aggregate payments, of which $80 has been paid to date. During the first quarter of 2017 and 2016 the Company paid $2 and $-, respectively. The range of remaining undiscounted amounts the Company could pay is between $0 and $20 and the Company expects to pay $4 in the next 12 months. As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At March 31, 2017 and December 31, 2016, there were $2,234 and $2,227, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise. Newmont is from time to time involved in various legal proceedings related to its business. Except in the above described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company’s financial condition or results of operations. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Risks and Uncertainties | Risks and Uncertainties As a global mining company, the Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for gold and copper. Historically, the commodity markets have been very volatile, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and on the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Property, plant and mine development , net; Inventories; Stockpiles and ore on leach pads and Deferred income tax assets are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook from current levels could result in material impairment charges related to these assets. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. The Company must make these estimates and assumptions because certain information used is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. Actual results could differ from these estimates. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Stock-based compensation I n March 2016, ASU No. 2016-09 was issued related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities and classification of cash payments related to tax withholdings on behalf of employees on the Consolidated Statements of Cash Flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company adopted this guidance as of January 1, 2017 and reclassified $(4) from Net cash provided by (used in) operating activities of continuing operations to Net cash provided by (used in) financing activities of continuing operations for the quarter ended March 31, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Inventory In July 2015, ASU No. 2015-11 was issued related to inventory, simplifying the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The update is effective in fiscal years, including interim periods, beginning after December 15, 2016. The Company records inventory at the lower of cost or net realizable value and the adoption of this guidance effective January 1, 2017 had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements Employee Benefits I n March 2017, ASU No. 2017-07 was issued related to the presentation of net periodic pension and postretirement cost. The new guidance requires the service cost component of net benefit costs be classified similar to other compensation costs arising from services rendered by employees. Other components of net benefit costs are required to be classified separately from the service cost and outside income from operations. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017. The Company anticipates adopting this new guidance effective January 1, 2018. The adoption of this guidance will result in the reclassification of other components of net benefit costs from Costs and expenses to Other income, net and will no longer be included in costs that benefit the inventory/production process. The adoption of this guidance is not expected to have a material impact on the Consolidated Financial Statements and disclosures. Goodwill I n January 2017, ASU No. 2017-04 was issued which removes step two from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019 and early adoption is permitted. The Company has adopted this new guidance effective April 1, 2017; however it will not have a material impact on the Consolidated Financial Statements or disclosures. Business Combinations I n January 2017, ASU No. 2017-01 was issued clarifying the definition of a business and providing additional guidance for determining whether transactions should be accounted for as acquisitions of assets or businesses. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The new guidance is required to be applied on a prospective basis. The Company has adopted this new guidance effective April 1, 2017. Restricted Cash In November 2016, ASU No. 2016-18 was issued related to the inclusion of restricted cash in the statement of cash flows. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The adoption of this guidance will result in the inclusion of the restricted cash balances within the overall cash balance and removal of the changes in restricted cash activity, which is currently recognized in Other financing activities , on the Statements of Consolidated Cash Flows. Furthermore, the Company will be required to reconcile Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Statements of Consolidated Cash Flows. The Company anticipates adopting this new guidance effective January 1, 2018 and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. Intra-Entity Transfers In October 2016, ASU No. 2016-16 was issued related to the intra-entity transfers of assets other than inventory. This new guidance requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Statement of Cash Flows In August 2016, ASU No. 2016-15 was issued related to the statement of cash flows. This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. Leases In February 2016, ASU No. 2016-02 was issued related to leases. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. The Company anticipates adopting the new standard effective January 1, 2019. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. The new guidance requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. This update is effective in fiscal years, including interim periods, beginning after December 15, 2017 and early adoption is not permitted. The Company expects the updated guidance to have a material impact on the Consolidated Balance Sheets upon adoption. The impact on the Consolidated Statement of Operations will depend on the Company’s investments and future changes in fair value, but is not expected to be material. The Company does not expect a material impact on the Consolidated Statements of Cash Flows. Revenue recognition In May 2014, ASU No. 2014-09 was issued related to revenue from contracts with customers. This ASU was further amended in August 2015, March 2016, April 2016, May 2016 and December 2016 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 and No. 2016-20, respectively. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the effective date was deferred to reporting periods, including interim periods, beginning after December 15, 2017 and will be applied retrospectively. The Company is currently performing an assessment of the revised standard and impacts on the Company’s Consolidated Financial Statements and disclosures. To date, the Company has reviewed a sample of contracts that are representative of the current types of product sold. Management is still in the process of completing their assessment of the impacts; however, based on the sample reviewed, the Company anticipates the standard having a potential impact to the timing of revenue recognition due to a potential change in timing of when control is transferred to the customer. The Company continues to evaluate the potential impacts due to timing of revenue recognition, but does not expect it to have a material impact on the Consolidated Financial Statements. Additionally, the Company continues to assess the potential impacts on insurance payments, variable consideration on concentrate sales, and refining fee classifications under the new standard. Based on preliminary findings, the Company does not expect these areas to have a significant impact on revenue recognition. The Company expects to have an update to the impacts of the standard in the second quarter of 2017. The Company anticipates adopting the new standard effective January 1, 2018. The guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. The Company currently anticipates adopting the standard retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
DISCONTINUED OPERATIONS | |
Schedule of Net Income (Loss) from Discontinued Operations, Net of Tax | Three Months Ended March 31, 2017 2016 Holt royalty obligation $ (23) $ (26) Batu Hijau operations — 185 Net income (loss) from discontinued operations $ (23) $ 159 |
PTNNT - Batu Hijau | Discontinued operations disposed of by sale | |
DISCONTINUED OPERATIONS | |
Schedule of financial statement impact of discontinued operations | Three Months Ended March 31, 2016 Sales $ 570 Costs and expenses Costs applicable to sales (1) 230 Depreciation and amortization 46 Reclamation and remediation 4 Advanced projects, research and development 1 General and administrative 4 Other expense (income), net (2) 283 Interest expense, net (5) Income (loss) before income and mining tax and other items 282 Income and mining tax benefit (expense) (97) Net income (loss) from discontinued operations 185 Net loss (income) attributable to noncontrolling interests (95) Net income (loss) from discontinued operations attributable to Newmont stockholders $ 90 (1) Excludes Depreciation and amortization and Reclamation and remediation. The condensed consolidated statements of comprehensive income (loss) were not impacted by discontinued operations as PTNNT did not have any other comprehensive income (loss). Cash flows from Batu Hijau consist of the following: Three Months Ended March 31, 2016 Net cash provided by (used in) operating activities $ 371 Net cash provided by (used in) investing activities (17) Net cash provided by (used in) financing activities (93) Net cash provided by (used in) Batu Hijau discontinued operations $ 261 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
SEGMENT INFORMATION | |
Financial Information of Company's Segments | Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended March 31, 2017 Carlin $ 253 $ 193 $ 50 $ 3 $ 5 $ 48 Phoenix: Gold 53 43 11 Copper 26 18 5 Total Phoenix 79 61 16 1 (2) 6 Twin Creeks 93 47 13 2 31 8 Long Canyon 39 12 13 5 9 4 CC&V 146 70 29 4 43 4 Other North America — — — 3 (5) 2 North America 610 383 121 18 81 72 Yanacocha 179 119 36 4 8 11 Merian 133 48 21 4 60 16 Other South America — — 4 10 (19) — South America 312 167 61 18 49 27 Boddington: Gold 228 122 26 Copper 45 21 4 Total Boddington 273 143 30 — 86 15 Tanami 92 50 16 3 20 24 Kalgoorlie 104 52 4 2 43 4 Other Australia — — 2 1 (15) 1 Australia 469 245 52 6 134 44 Ahafo 114 76 23 6 9 17 Akyem 154 62 34 1 55 6 Other Africa — — — 1 (1) — Africa 268 138 57 8 63 23 Corporate and Other — — 2 12 (134) 2 Consolidated $ 1,659 $ 933 $ 293 $ 62 $ 193 $ 168 (1) Includes a decrease in accrued capital expenditures of $12; consolidated capital expenditures on a cash basis were $180. Advanced Income (Loss) Costs Depreciation Projects, Research before Income Applicable and and Development and Mining Tax Capital Sales to Sales Amortization and Exploration and Other Items Expenditures (1) Three Months Ended March 31, 2016 Carlin $ 246 $ 189 $ 49 $ 3 $ 2 $ 36 Phoenix: Gold 64 49 15 Copper 21 22 5 Total Phoenix 85 71 20 — (11) 4 Twin Creeks 159 60 13 2 83 6 Long Canyon — — — 6 (7) 36 CC&V 65 33 18 3 10 21 Other North America — — — 1 (2) — North America 555 353 100 15 75 103 Yanacocha 211 128 69 9 (11) 14 Merian — — 1 3 (4) 82 Other South America — — 3 6 (11) — South America 211 128 73 18 (26) 96 Boddington: Gold 204 111 23 Copper 30 23 5 Total Boddington 234 134 28 — 64 11 Tanami 120 59 19 3 38 24 Kalgoorlie 106 65 5 1 33 3 Other Australia — — 4 1 (5) — Australia 460 258 56 5 130 38 Ahafo 101 57 15 5 20 17 Akyem 135 55 29 1 47 7 Other Africa — — — 1 (2) — Africa 236 112 44 7 65 24 Corporate and Other — — 3 12 (36) 2 Consolidated $ 1,462 $ 851 $ 276 $ 57 $ 208 $ 263 (1) Includes a decrease in accrued capital expenditures of $17; consolidated capital expenditures on a cash basis were $280. |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Three Months Ended March 31, 2017 2016 Reclamation accretion $ 25 $ 19 Remediation 4 1 Remediation accretion 1 1 5 2 $ 30 $ 21 |
Reconciliation of Reclamation Liabilities | 2017 2016 Reclamation balance at January 1, $ 1,792 $ 1,300 Additions, changes in estimates and other — 2 Payments and other (5) (2) Accretion expense 25 19 Reclamation balance at March 31, $ 1,812 $ 1,319 |
Reconciliation of Remediation Liabilities | 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 2 — Payments and other (8) (3) Accretion expense 1 1 Remediation balance at March 31, $ 293 $ 316 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
OTHER EXPENSE, NET | |
Other Expense, Net | Three Months Ended March 31, 2017 2016 Restructuring and other $ 7 $ 13 Impairment of long-lived assets 3 — Acquisition costs 2 — Other 5 5 $ 17 $ 18 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
OTHER INCOME, NET. | |
Other Income, Net | Three Months Ended March 31, 2017 2016 Foreign currency exchange, net $ (17) $ (16) Gain on asset and investment sales, net 2 104 Other 6 8 $ (9) $ 96 |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
INCOME AND MINING TAXES | |
Income and Mining Tax Expense Reconciliation | Three Months Ended March 31, 2017 2016 Income (loss) before income and mining tax and other items $ 193 $ 208 Tax at statutory rate 35 % $ 68 35 % $ 73 Reconciling items: Percentage depletion (17) (32) (61) (126) Change in valuation allowance on deferred tax assets 35 67 112 232 Mining and other taxes 10 19 34 71 Tax impact on sale of assets — — (17) (35) Other (6) (12) 6 12 Income and mining tax expense 57 % $ 110 109 % $ 227 |
NET INCOME (LOSS) ATTRIBUTABL38
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests From Continuing Operations | Three Months Ended March 31, 2017 2016 Yanacocha $ (1) $ (11) Merian 14 (1) Other (1) — $ 12 $ (12) |
Schedule summarizing the assets and liabilities of consolidated VIEs (including noncontrolling interests) | At March 31, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 75 $ 50 Inventories 67 57 Stockpiles and ore on leach pads 14 23 Other current assets (1) 44 37 200 167 Non-current assets: Property, plant and mine development, net 741 746 Other non-current assets (2) 16 8 Total assets $ 957 $ 921 Current liabilities: Other current liabilities (3) $ 38 $ 43 38 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 50 $ 54 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
INCOME (LOSS) PER COMMON SHARE | |
Summary of Income (Loss) per Common Share, Basic and Diluted | Three Months Ended March 31, 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 69 $ (12) Discontinued operations (23) 64 $ 46 $ 52 Weighted average common shares (millions): Basic 532 530 Effect of employee stock-based awards 1 1 Diluted 533 531 Net income (loss) per common share: Basic: Continuing operations $ 0.13 $ (0.02) Discontinued operations (0.04) $ 0.09 $ 0.10 Diluted: Continuing operations $ 0.13 $ (0.02) Discontinued operations (0.04) $ 0.09 $ 0.10 |
EMPLOYEE PENSION AND OTHER BE40
EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
Schedule of components of the net periodic pension and other benefits costs | Three Months Ended March 31, 2017 2016 Pension benefit costs, net: Service cost $ 7 $ 7 Interest cost 11 11 Expected return on plan assets (15) (14) Amortization, net 7 6 Settlements 4 — $ 14 $ 10 Three Months Ended March 31, 2017 2016 Other benefit costs, net: Interest cost $ 1 $ 1 Amortization, net (1) (1) $ — $ — |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
STOCK-BASED COMPENSATION | |
Schedule of stock based compensation by award | Three Months Ended March 31, 2017 2016 Stock-based compensation: Performance leveraged stock units $ 8 $ 8 Restricted stock units 7 6 Strategic stock units 1 2 $ 16 $ 16 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at March 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,919 $ 2,919 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 51 51 — — Other 21 21 — — Trade receivable from provisional copper and 84 84 — — Batu Hijau contingent consideration 13 — — 13 $ 3,156 $ 3,143 $ — $ 13 Liabilities: Debt (1) $ 5,023 $ — $ 5,023 $ — Derivative instruments, net: Foreign exchange forward contracts 13 — 13 — Diesel forward contracts 2 — 2 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 220 — — 220 $ 5,271 $ — $ 5,038 $ 233 Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,756 $ 2,756 $ — $ — Restricted assets 68 68 — — Marketable equity securities: Extractive industries 60 60 — — Other 16 16 — — Marketable debt securities: Asset backed commercial paper 18 — — 18 Trade receivable from provisional copper and 113 113 — — Batu Hijau contingent consideration 13 — — 13 $ 3,044 $ 3,013 $ — $ 31 Liabilities: Debt (1) $ 4,882 $ — $ 4,882 $ — Derivative instruments, net: Foreign exchange forward contracts 24 — 24 — Boddington contingent consideration 14 — — 14 Holt royalty obligation 187 — — 187 $ 5,107 $ — $ 4,906 $ 201 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,606 and $4,599 at March 31, 2017 and December 31, 2016, respectively. The fair value measurement of debt was based on an independent third party pricing source. |
Fair Value Inputs Assets Liabilities Quantitative Information | At March 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 3.13 % Short-term gold price $ 1,219 Long-term gold price $ 1,300 Short-term copper price $ Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 220 Monte Carlo Discount rate 3.18 % Short-term gold price $ 1,219 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 450-1,684 At December 31, Range/Weighted Description 2016 Valuation technique Unobservable input average Asset backed commercial paper $ 18 Risk-adjusted indicative price Recoverability rate 97 % Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.39 Long-term copper price $ 3.00 Boddington contingent consideration $ 14 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Short-term copper price $ 2.39 Long-term copper price $ 3.00 Long-term Australian to U.S. dollar exchange rate $ 0.80 Holt royalty obligation $ 187 Monte Carlo Discount rate 3.36 % Short-term gold price $ 1,221 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 332-1,570 |
Changes in the Fair Value of the Company's Level 3 Financial Assets | Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (2) (3) (5) Revaluation — — — 1 36 37 Fair value at March 31, 2017 $ — $ 13 $ 13 $ 13 $ 220 $ 233 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (2) (2) Revaluation — 2 2 — 37 37 Fair value at March 31, 2016 $ 7 $ 20 $ 27 $ 10 $ 164 $ 174 (1) The gain (loss) recognized is included in Other comprehensive income (loss) . (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (3) The gain (loss) recognized is included in Other expense, net. |
Changes in the Fair Value of the Company's Level 3 Financial Liabilities | Asset Backed Batu Hijau Boddington Holt Commercial Contingent Total Contingent Royalty Total Paper (1) Consideration (2) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 14 $ 187 $ 201 Settlements (18) — (18) (2) (3) (5) Revaluation — — — 1 36 37 Fair value at March 31, 2017 $ — $ 13 $ 13 $ 13 $ 220 $ 233 Asset Auction Backed Boddington Holt Rate Commercial Total Contingent Royalty Total Securities (1) Paper (1) Assets Consideration (3) Obligation (2) Liabilities Fair value at December 31, 2015 $ 7 $ 18 $ 25 $ 10 $ 129 $ 139 Settlements — — — — (2) (2) Revaluation — 2 2 — 37 37 Fair value at March 31, 2016 $ 7 $ 20 $ 27 $ 10 $ 164 $ 174 (1) The gain (loss) recognized is included in Other comprehensive income (loss) . (2) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (3) The gain (loss) recognized is included in Other expense, net . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At March 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 13 $ — Diesel fixed forwards 1 — 3 — Total derivative instruments $ 1 $ — $ 16 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Foreign currency exchange contracts: A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — Total derivative instruments $ 4 $ — $ 27 $ 1 |
Location and Amount of Gains (Losses) Reported in Consolidated Financial Statements | Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2017 2016 2017 2016 2017 2016 For the three months ended March 31, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 4 $ 7 $ (3) $ (2) $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (8) $ (10) $ (2) $ (9) $ (2) $ (3) (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Cost applicable to sales and Interest expense , net . |
Cash Flow Hedges | Foreign exchange forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 71 6 77 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 4 % |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2017 2018 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 17 5 22 Average rate ($/gallon) 1.63 1.62 1.63 Expected hedge ratio 50 % 17 % |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
INVESTMENTS | |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At March 31, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 32 $ 24 $ (5) $ 51 Non-current: Marketable equity securities $ 20 $ 1 $ — $ 21 Other investments, at cost 6 — — 6 Equity method investments: TMAC (29.0%) 107 — — 107 La Zanja (46.94%) 70 — — 70 Euronimba (43.5%) 4 — — 4 181 — — 181 $ 207 $ 1 $ — $ 208 At December 31, 2016 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 33 $ 27 $ (4) $ 56 Non-current: Marketable debt securities: Asset backed commercial paper $ 16 $ 2 $ — $ 18 Marketable equity securities 18 2 — 20 Other investments, at cost 6 — — 6 Equity method investments: TMAC (29.0%) 108 — — 108 La Zanja (46.94%) 71 — — 71 Euronimba (43.5%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Summary of Inventories | At March 31, At December 31, 2017 2016 Materials and supplies $ 403 $ 391 In-process 144 130 Concentrate and copper cathode 85 67 Precious metals 34 29 $ 666 $ 617 |
STOCKPILES AND ORE ON LEACH P46
STOCKPILES AND ORE ON LEACH PADS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At March 31, At December 31, 2017 2016 Current: Stockpiles $ 387 $ 393 Ore on leach pads 385 370 $ 772 $ 763 Non-current: Stockpiles $ 1,487 $ 1,506 Ore on leach pads 330 358 $ 1,817 $ 1,864 |
Stockpiles and Ore on Leach Pads, by Segment | At March 31, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 417 $ 421 Phoenix 78 80 Twin Creeks 337 328 Long Canyon 19 9 CC&V 350 369 Yanacocha 344 367 Merian 27 27 Boddington 405 394 Tanami 9 19 Kalgoorlie 118 113 Ahafo 379 386 Akyem 106 114 $ 2,589 $ 2,627 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
OTHER LIABILITIES | |
Other Liabilities | At March 31, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 82 $ 99 Accrued interest 64 57 Reclamation and remediation liabilities 61 61 Accrued capital expenditures 42 53 Royalties 28 52 Derivative instruments 16 27 Holt royalty obligation 13 13 Taxes other than income and mining 5 8 Boddington contingent consideration 4 3 Other 17 34 $ 332 $ 407 Other non-current liabilities: Holt royalty obligation $ 207 $ 174 Income and mining taxes 53 50 Power supply agreements 32 31 Social development obligations 24 25 Boddington contingent consideration 9 11 Derivative instruments — 1 Other 36 34 $ 361 $ 326 |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
CHANGES IN EQUITY | |
Changes in Equity | Three Months Ended March 31, 2017 2016 Common stock: At beginning of period $ 849 $ 847 Stock-based awards 4 2 At end of period 853 849 Additional paid-in capital: At beginning of period 9,490 9,427 Stock-based awards (1) 10 At end of period 9,489 9,437 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 12 (52) At end of period (322) (386) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 46 52 Dividends paid (27) (13) At end of period 735 1,449 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests 12 83 Distributions declared to noncontrolling interests (1) (33) — Cash calls requested from noncontrolling interests (2) 29 26 Dividends paid to noncontrolling interests — (146) Other — (1) At end of period 1,161 2,904 Total equity $ 11,916 $ 14,253 . (1) Distributions declared to noncontrolling interests of $33 for the three months ended March 31, 2017 represents distributions declared to Staatsolie from Merian, of which $32 was paid as of March 31, 2017. (2) Cash calls requested from noncontrolling interests of $29 and $26 for the three months ended March 31, 2017 and March 31, 2016, respectively, represents cash calls requested from Staatsolie for the Merian mine, of which $21 and $12 has been paid as of March 31, 2017 and March 31, 2016, respectively. |
RECLASSIFICATIONS OUT OF ACCU49
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Change in Accumulated Other Comprehensive Income (Loss) | Pension and Changes in Unrealized gain Foreign other fair value of (loss) on currency post-retirement cash flow marketable translation benefit hedge securities, net adjustments adjustments instruments Total Balance at December 31, 2016 $ (101) $ 118 $ (223) $ (128) $ (334) Change in other comprehensive income (loss) before reclassifications (7) 4 — 1 (2) Reclassifications from accumulated other comprehensive income (loss) — — 6 8 14 Net current-period other comprehensive income (loss) (7) 4 6 9 12 Balance at March 31, 2017 $ (108) $ 122 $ (217) $ (119) $ (322) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Operations Three Months Ended March 31, 2017 2016 Marketable securities adjustments: Sale of marketable securities $ — $ (103) Other income, net Total before tax — (103) Tax benefit (expense) — — Net of tax $ — $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 5 (1) Settlements 4 — Other expense, net Total before tax 10 5 Tax benefit (expense) (4) (2) Net of tax $ 6 $ 3 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 10 $ 19 Costs applicable to sales Interest rate contracts 2 3 Interest expense, net Total before tax 12 22 Tax benefit (expense) (4) (8) Net of tax $ 8 $ 14 Total reclassifications for the period, net of tax $ 14 $ (86) (1) This accumulated other comprehensive income (loss) component is included in General and administrative and costs that benefit the inventory/production process. Refer to Note 2 to the Consolidated Financial Statements for the year ended December 31, 2016 filed February 21, 2017 on Form 10-K for information on costs that benefit the inventory/production process. |
NET CHANGE IN OPERATING ASSET50
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
Net Cash Provided from Operations Attributable to the Net Change in Operating Assets and Liabilities | Three Months Ended March 31, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 70 $ (52) Inventories, stockpiles and ore on leach pads (72) (96) Other assets (2) (6) Increase (decrease) in operating liabilities: Accounts payable (19) (10) Reclamation liabilities (13) (5) Other accrued liabilities (139) (88) $ (175) $ (257) |
CONDENSED CONSOLIDATING FINAN51
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Three Months Ended March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 403 $ 1,256 $ — $ 1,659 Costs and expenses Costs applicable to sales (1) — 285 648 — 933 Depreciation and amortization 1 79 213 — 293 Reclamation and remediation — 4 26 — 30 Exploration — 9 27 — 36 Advanced projects, research and development — 1 25 — 26 General and administrative — 17 38 — 55 Other expense, net — 6 11 — 17 1 401 988 — 1,390 Other income (expense) Other income, net 3 — (12) — (9) Interest income - intercompany 24 — 7 (31) — Interest expense - intercompany (8) — (23) 31 — Interest expense, net (62) (2) (3) — (67) (43) (2) (31) — (76) Income (loss) before income and mining tax and other items (44) — 237 — 193 Income and mining tax benefit (expense) 16 — (126) — (110) Equity income (loss) of affiliates 74 (84) (1) 9 (2) Net income (loss) from continuing operations 46 (84) 110 9 81 Net income (loss) from discontinued operations — — (23) — (23) Net income (loss) 46 (84) 87 9 58 Net loss (income) attributable to noncontrolling interests Continuing operations — — (12) — (12) Discontinued operations — — — — — — — (12) — (12) Net income (loss) attributable to Newmont stockholders $ 46 $ (84) $ 75 $ 9 $ 46 Comprehensive income (loss) $ 58 $ (79) $ 82 $ 9 $ 70 Comprehensive loss (income) attributable to noncontrolling interests — — (12) — (12) Comprehensive income (loss) attributable to Newmont stockholders $ 58 $ (79) $ 70 $ 9 $ 58 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended March 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 471 $ 991 $ — $ 1,462 Costs and expenses Costs applicable to sales (1) — 306 545 — 851 Depreciation and amortization — 84 192 — 276 Reclamation and remediation — 3 18 — 21 Exploration — 6 24 — 30 Advanced projects, research and development — 2 25 — 27 General and administrative — 17 36 — 53 Other expense, net — 4 14 — 18 — 422 854 — 1,276 Other income (expense) Other income, net 9 — 87 — 96 Interest income - intercompany 30 — 9 (39) — Interest expense - intercompany (8) — (31) 39 — Interest expense, net (71) (2) (1) — (74) (40) (2) 64 — 22 Income (loss) before income and mining tax and other items (40) 47 201 — 208 Income and mining tax benefit (expense) 75 (11) (291) — (227) Equity income (loss) of affiliates 17 (274) 2 250 (5) Net income (loss) from continuing operations 52 (238) (88) 250 (24) Net income (loss) from discontinued operations — — 159 — 159 Net income (loss) 52 (238) 71 250 135 Net loss (income) attributable to noncontrolling interests Continuing operations — — 12 — 12 Discontinued operations — — (95) — (95) — — (83) — (83) Net income (loss) attributable to Newmont stockholders $ 52 $ (238) $ (12) $ 250 $ 52 Comprehensive income (loss) $ — $ (232) $ 10 $ 305 $ 83 Comprehensive loss (income) attributable to noncontrolling interests — — (83) — (83) Comprehensive income (loss) attributable to Newmont stockholders $ — $ (232) $ (73) $ 305 $ — (1) Excludes Depreciation and amortization and Reclamation and remediation . |
Condensed Consolidating Statement of Cash Flows | Three Months Ended March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ (51) $ (12) $ 442 $ — $ 379 Net cash provided by (used in) operating activities of discontinued operations — — (6) — (6) Net cash provided by (used in) operating activities (51) (12) 436 — 373 Investing activities: Additions to property, plant and mine development — (60) (120) — (180) Proceeds from sales of investments — — 19 — 19 Proceeds from sales of other assets — — 2 — 2 Acquisitions, net — — (2) — (2) Other — — 1 — 1 Net cash provided by (used in) investing activities of continuing operations — (60) (100) — (160) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities — (60) (100) — (160) Financing activities: Dividends paid to common stockholders (27) — — — (27) Distributions to noncontrolling interests — — (32) — (32) Funding from noncontrolling interests — — 21 — 21 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Repayment of debt — (1) — — (1) Net intercompany borrowings (repayments) 78 86 (164) — — Net cash provided by (used in) financing activities of continuing operations 51 72 (175) — (52) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 51 72 (175) — (52) Effect of exchange rate changes on cash — — 2 — 2 Net change in cash and cash equivalents — — 163 — 163 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — — 163 — 163 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ 1 $ 2,918 $ — $ 2,919 Three Months Ended March 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Cash Flows Corporation USA Subsidiaries Eliminations Consolidated Operating activities: Net cash provided by (used in) operating activities of continuing operations $ 757 $ 44 $ 186 $ (830) $ 157 Net cash provided by (used in) operating activities of discontinued operations — — 369 — 369 Net cash provided by (used in) operating activities 757 44 555 (830) 526 Investing activities: Additions to property, plant and mine development — (66) (214) — (280) Proceeds from sales of investments — — 184 — 184 Proceeds from sales of other assets — — 6 — 6 Other — — (4) — (4) Net cash provided by (used in) investing activities of continuing operations — (66) (28) — (94) Net cash provided by (used in) investing activities of discontinued operations — — (17) — (17) Net cash provided by (used in) investing activities — (66) (45) — (111) Financing activities: Dividends paid to common stockholders (13) (830) — 830 (13) Funding from noncontrolling interests — — 12 — 12 Payments for withholding of employee taxes related to stock-based compensation — (4) — — (4) Repayment of debt (498) (1) — — (499) Dividends paid to noncontrolling interests — — (146) — (146) Net intercompany borrowings (repayments) (246) (320) 566 — — Other — — 1 — 1 Net cash provided by (used in) financing activities of continuing operations (757) (1,155) 433 830 (649) Net cash provided by (used in) financing activities of discontinued operations — — (93) — (93) Net cash provided by (used in) financing activities (757) (1,155) 340 830 (742) Effect of exchange rate changes on cash — — 6 — 6 Net change in cash and cash equivalents — (1,177) 856 — (321) Less net cash provided by (used in) Batu Hijau discontinued operations — — 261 — 261 — (1,177) 595 — (582) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 4 $ 1,777 $ — $ 1,781 |
Condensed Consolidating Balance Sheet | At March 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,918 $ — $ 2,919 Trade receivables — 37 65 — 102 Other accounts receivables — — 183 — 183 Intercompany receivable 8,055 6,158 12,184 (26,397) — Investments — — 51 — 51 Inventories — 165 501 — 666 Stockpiles and ore on leach pads — 212 560 — 772 Other current assets — 75 70 — 145 Current assets 8,055 6,648 16,532 (26,397) 4,838 Property, plant and mine development, net 20 3,118 9,271 (31) 12,378 Investments — 9 199 — 208 Investments in subsidiaries 13,301 471 — (13,772) — Stockpiles and ore on leach pads — 612 1,205 — 1,817 Deferred income tax assets 493 34 1,248 (490) 1,285 Non-current intercompany receivable 2,107 608 946 (3,661) — Other non-current assets — 224 219 — 443 Total assets $ 23,976 $ 11,724 $ 29,620 $ (44,351) $ 20,969 Liabilities: Debt $ 567 $ 2 $ 3 $ — $ 572 Accounts payable — 65 240 — 305 Intercompany payable 8,459 4,958 12,980 (26,397) — Employee-related benefits — 79 115 — 194 Income and mining taxes — 2 160 — 162 Other current liabilities 64 76 192 — 332 Current liabilities 9,090 5,182 13,690 (26,397) 1,565 Debt 4,041 3 5 — 4,049 Reclamation and remediation liabilities — 250 1,794 — 2,044 Deferred income tax liabilities 9 91 997 (490) 607 Employee-related benefits — 274 153 — 427 Non-current intercompany payable 81 — 3,611 (3,692) — Other non-current liabilities — 23 338 — 361 Total liabilities 13,221 5,823 20,588 (30,579) 9,053 Equity: Newmont stockholders’ equity 10,755 5,901 7,871 (13,772) 10,755 Noncontrolling interests — — 1,161 — 1,161 Total equity 10,755 5,901 9,032 (13,772) 11,916 Total liabilities and equity $ 23,976 $ 11,724 $ 29,620 $ (44,351) $ 20,969 At December 31, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ 1 $ 2,755 $ — $ 2,756 Trade receivables — 21 106 — 127 Other accounts receivables — 2 214 — 216 Intercompany receivable 7,255 6,065 11,347 (24,667) — Investments — — 56 — 56 Inventories — 155 462 — 617 Stockpiles and ore on leach pads — 224 539 — 763 Other current assets — 83 59 — 142 Current assets 7,255 6,551 15,538 (24,667) 4,677 Property, plant and mine development, net 20 3,144 9,355 (34) 12,485 Investments — 8 219 — 227 Investments in subsidiaries 13,222 537 — (13,759) — Stockpiles and ore on leach pads — 599 1,265 — 1,864 Deferred income tax assets 477 48 1,296 (490) 1,331 Non-current intercompany receivable 2,219 606 955 (3,780) — Other non-current assets — 224 223 — 447 Total assets $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 Liabilities: Debt $ 560 $ 3 $ 3 $ — $ 566 Accounts payable — 62 258 — 320 Intercompany payable 7,720 4,795 12,152 (24,667) — Employee-related benefits — 148 156 — 304 Income and mining taxes — 13 140 — 153 Other current liabilities 62 109 236 — 407 Current liabilities 8,342 5,130 12,945 (24,667) 1,750 Debt 4,038 4 7 — 4,049 Reclamation and remediation liabilities — 247 1,782 — 2,029 Deferred income tax liabilities 9 93 980 (490) 592 Employee-related benefits — 269 142 — 411 Non-current intercompany payable 83 — 3,731 (3,814) — Other non-current liabilities — 21 305 — 326 Total liabilities 12,472 5,764 19,892 (28,971) 9,157 Equity: Newmont stockholders’ equity 10,721 5,953 7,806 (13,759) 10,721 Noncontrolling interests — — 1,153 — 1,153 Total equity 10,721 5,953 8,959 (13,759) 11,874 Total liabilities and equity $ 23,193 $ 11,717 $ 28,851 $ (42,730) $ 21,031 |
BASIS OF PRESENTATION - Definit
BASIS OF PRESENTATION - Definitive Agreement (Details) | Nov. 02, 2016 |
Batu Hijau share sale and purchase agreement | PTNNT - Batu Hijau | Discontinued operations disposed of by sale | PTNNT - Batu Hijau | |
Agreement terms and other information | |
Ownership interest held (as a percent) | 48.50% |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | $ 379 | $ 157 |
Net cash provided by (used in) financing activities of continuing operations | (52) | $ (649) |
ASU No. 2016-09 - Stock-based compensation | Reclassified | ||
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | (4) | |
Net cash provided by (used in) financing activities of continuing operations | $ (4) |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income (loss) from discontinued operations, net of tax | ||
Income (loss) from discontinued operations, net of tax | $ (23) | $ 159 |
Discontinued operations disposed of by sale | ||
Net income (loss) from discontinued operations, net of tax | ||
Income (loss) from discontinued operations, net of tax | (23) | |
Discontinued operations - held-for-sale or disposed of | ||
Net income (loss) from discontinued operations, net of tax | ||
Income (loss) from discontinued operations, net of tax | 159 | |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||
Net income (loss) from discontinued operations, net of tax | ||
Batu Hijau operations | 185 | |
PTNNT - Batu Hijau | Discontinued operations - held-for-sale or disposed of | ||
Net income (loss) from discontinued operations, net of tax | ||
Batu Hijau operations | 185 | |
Holt royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||
Net income (loss) from discontinued operations, net of tax | ||
Income (loss) from discontinued operations, net of tax | $ (23) | $ (26) |
DISCONTINUED OPERATIONS - Batu
DISCONTINUED OPERATIONS - Batu Hijau Other Information (Details) | Nov. 02, 2016 |
Batu Hijau share sale and purchase agreement | PTNNT - Batu Hijau | PTNNT - Batu Hijau | Discontinued operations disposed of by sale | |
Other information | |
Ownership interest held (as a percent) | 48.50% |
DISCONTINUED OPERATIONS - Bat56
DISCONTINUED OPERATIONS - Batu Hijau Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Costs and expenses | ||
Net loss (income) attributable to noncontrolling interests, net of tax | $ (95) | |
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ (23) | 64 |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||
Net income (loss) from discontinued operations, net of tax | ||
Sales | 570 | |
Costs and expenses | ||
Costs applicable to sales (1) | 230 | |
Depreciation and amortization | 46 | |
Reclamation and remediation | 4 | |
Advanced projects, research and development | 1 | |
General and administrative | 4 | |
Other expense (income), net | (2) | |
Total Costs and expenses | 283 | |
Interest expense, net | (5) | |
Income (loss) before income and mining tax and other items | 282 | |
Income and mining tax benefit (expense) | (97) | |
Net income (loss) from discontinued operations | 185 | |
Net loss (income) attributable to noncontrolling interests, net of tax | (95) | |
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ 90 |
DISCONTINUED OPERATIONS - Bat57
DISCONTINUED OPERATIONS - Batu Hijau Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows | ||
Net cash provided by (used in) operating activities | $ (6) | $ 369 |
Net cash provided by (used in) investing activities | (17) | |
Net cash provided by (used in) financing activities | (93) | |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||
Cash flows | ||
Net cash provided by (used in) operating activities | 371 | |
Net cash provided by (used in) investing activities | (17) | |
Net cash provided by (used in) financing activities | (93) | |
Net cash provided by (used in) discontinued operations | $ 261 |
DISCONTINUED OPERATIONS - Holt
DISCONTINUED OPERATIONS - Holt Royalty Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Disposal group | |||
Income (loss) from discontinued operations, net of tax | $ (23) | $ 159 | |
Discontinued operations disposed of by sale | |||
Disposal group | |||
Income (loss) from discontinued operations, net of tax | (23) | ||
Holloway Mining Company | Discontinued operations disposed of by sale | Holt royalty obligation | |||
Disposal group | |||
Contingent royalty | 220 | $ 187 | |
Income (loss) from discontinued operations, net of tax | (23) | (26) | |
Income and mining tax benefit (expense) | 13 | 11 | |
Royalty paid | $ 3 | $ 2 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | ||
Segment Information | ||||
Sales | $ 1,659 | $ 1,462 | ||
Costs applicable to sales | [1] | 933 | 851 | |
Depreciation and amortization | 293 | 276 | ||
Advanced Projects, Research and Development, and Exploration | 62 | 57 | ||
Income (Loss) before Income and Mining Tax and Other Items | 193 | 208 | ||
Total Assets | 20,969 | $ 21,031 | ||
Capital Expenditures | 168 | 263 | ||
Additional disclosures | ||||
Increase (decrease) in accrued capital expenditures | (12) | (17) | ||
Consolidated capital expenditures on a cash basis | $ 180 | 280 | ||
Operating Segments | ||||
Segment Information | ||||
Number of operating segments | segment | 4 | |||
Corporate and other | ||||
Segment Information | ||||
Depreciation and amortization | $ 2 | 3 | ||
Advanced Projects, Research and Development, and Exploration | 12 | 12 | ||
Income (Loss) before Income and Mining Tax and Other Items | (134) | (36) | ||
Capital Expenditures | 2 | 2 | ||
North America | Operating Segments | ||||
Segment Information | ||||
Sales | 610 | 555 | ||
Costs applicable to sales | 383 | 353 | ||
Depreciation and amortization | 121 | 100 | ||
Advanced Projects, Research and Development, and Exploration | 18 | 15 | ||
Income (Loss) before Income and Mining Tax and Other Items | 81 | 75 | ||
Capital Expenditures | 72 | 103 | ||
North America | Operating Segments | Carlin | ||||
Segment Information | ||||
Sales | 253 | 246 | ||
Costs applicable to sales | 193 | 189 | ||
Depreciation and amortization | 50 | 49 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | 5 | 2 | ||
Capital Expenditures | 48 | 36 | ||
North America | Operating Segments | Phoenix | ||||
Segment Information | ||||
Sales | 79 | 85 | ||
Costs applicable to sales | 61 | 71 | ||
Depreciation and amortization | 16 | 20 | ||
Advanced Projects, Research and Development, and Exploration | 1 | |||
Income (Loss) before Income and Mining Tax and Other Items | (2) | (11) | ||
Capital Expenditures | 6 | 4 | ||
North America | Operating Segments | Phoenix | Gold | ||||
Segment Information | ||||
Sales | 53 | 64 | ||
Costs applicable to sales | 43 | 49 | ||
Depreciation and amortization | 11 | 15 | ||
North America | Operating Segments | Phoenix | Copper | ||||
Segment Information | ||||
Sales | 26 | 21 | ||
Costs applicable to sales | 18 | 22 | ||
Depreciation and amortization | 5 | 5 | ||
North America | Operating Segments | Twin Creeks | ||||
Segment Information | ||||
Sales | 93 | 159 | ||
Costs applicable to sales | 47 | 60 | ||
Depreciation and amortization | 13 | 13 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 2 | ||
Income (Loss) before Income and Mining Tax and Other Items | 31 | 83 | ||
Capital Expenditures | 8 | 6 | ||
North America | Operating Segments | Long Canyon | ||||
Segment Information | ||||
Sales | 39 | |||
Costs applicable to sales | 12 | |||
Depreciation and amortization | 13 | |||
Advanced Projects, Research and Development, and Exploration | 5 | 6 | ||
Income (Loss) before Income and Mining Tax and Other Items | 9 | (7) | ||
Capital Expenditures | 4 | 36 | ||
North America | Operating Segments | Cripple Creek & Victor mine | ||||
Segment Information | ||||
Sales | 146 | 65 | ||
Costs applicable to sales | 70 | 33 | ||
Depreciation and amortization | 29 | 18 | ||
Advanced Projects, Research and Development, and Exploration | 4 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | 43 | 10 | ||
Capital Expenditures | 4 | 21 | ||
North America | Operating Segments | Other North America | ||||
Segment Information | ||||
Advanced Projects, Research and Development, and Exploration | 3 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | (5) | (2) | ||
Capital Expenditures | 2 | |||
South America | Operating Segments | ||||
Segment Information | ||||
Sales | 312 | 211 | ||
Costs applicable to sales | 167 | 128 | ||
Depreciation and amortization | 61 | 73 | ||
Advanced Projects, Research and Development, and Exploration | 18 | 18 | ||
Income (Loss) before Income and Mining Tax and Other Items | 49 | (26) | ||
Capital Expenditures | 27 | 96 | ||
South America | Operating Segments | Yanacocha | ||||
Segment Information | ||||
Sales | 179 | 211 | ||
Costs applicable to sales | 119 | 128 | ||
Depreciation and amortization | 36 | 69 | ||
Advanced Projects, Research and Development, and Exploration | 4 | 9 | ||
Income (Loss) before Income and Mining Tax and Other Items | 8 | (11) | ||
Capital Expenditures | 11 | 14 | ||
South America | Operating Segments | Merian | ||||
Segment Information | ||||
Sales | 133 | |||
Costs applicable to sales | 48 | |||
Depreciation and amortization | 21 | 1 | ||
Advanced Projects, Research and Development, and Exploration | 4 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | 60 | (4) | ||
Capital Expenditures | 16 | 82 | ||
South America | Operating Segments | Other South America | ||||
Segment Information | ||||
Depreciation and amortization | 4 | 3 | ||
Advanced Projects, Research and Development, and Exploration | 10 | 6 | ||
Income (Loss) before Income and Mining Tax and Other Items | (19) | (11) | ||
Australia | Operating Segments | ||||
Segment Information | ||||
Sales | 469 | 460 | ||
Costs applicable to sales | 245 | 258 | ||
Depreciation and amortization | 52 | 56 | ||
Advanced Projects, Research and Development, and Exploration | 6 | 5 | ||
Income (Loss) before Income and Mining Tax and Other Items | 134 | 130 | ||
Capital Expenditures | 44 | 38 | ||
Australia | Operating Segments | Boddington | ||||
Segment Information | ||||
Sales | 273 | 234 | ||
Costs applicable to sales | 143 | 134 | ||
Depreciation and amortization | 30 | 28 | ||
Income (Loss) before Income and Mining Tax and Other Items | 86 | 64 | ||
Capital Expenditures | 15 | 11 | ||
Australia | Operating Segments | Boddington | Gold | ||||
Segment Information | ||||
Sales | 228 | 204 | ||
Costs applicable to sales | 122 | 111 | ||
Depreciation and amortization | 26 | 23 | ||
Australia | Operating Segments | Boddington | Copper | ||||
Segment Information | ||||
Sales | 45 | 30 | ||
Costs applicable to sales | 21 | 23 | ||
Depreciation and amortization | 4 | 5 | ||
Australia | Operating Segments | Tanami | ||||
Segment Information | ||||
Sales | 92 | 120 | ||
Costs applicable to sales | 50 | 59 | ||
Depreciation and amortization | 16 | 19 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 3 | ||
Income (Loss) before Income and Mining Tax and Other Items | 20 | 38 | ||
Capital Expenditures | 24 | 24 | ||
Australia | Operating Segments | Kalgoorlie | ||||
Segment Information | ||||
Sales | 104 | 106 | ||
Costs applicable to sales | 52 | 65 | ||
Depreciation and amortization | 4 | 5 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | 43 | 33 | ||
Capital Expenditures | 4 | 3 | ||
Australia | Operating Segments | Other Asia Pacific | ||||
Segment Information | ||||
Depreciation and amortization | 2 | 4 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | (15) | (5) | ||
Capital Expenditures | 1 | |||
Africa | Operating Segments | ||||
Segment Information | ||||
Sales | 268 | 236 | ||
Costs applicable to sales | 138 | 112 | ||
Depreciation and amortization | 57 | 44 | ||
Advanced Projects, Research and Development, and Exploration | 8 | 7 | ||
Income (Loss) before Income and Mining Tax and Other Items | 63 | 65 | ||
Capital Expenditures | 23 | 24 | ||
Africa | Operating Segments | Ahafo | ||||
Segment Information | ||||
Sales | 114 | 101 | ||
Costs applicable to sales | 76 | 57 | ||
Depreciation and amortization | 23 | 15 | ||
Advanced Projects, Research and Development, and Exploration | 6 | 5 | ||
Income (Loss) before Income and Mining Tax and Other Items | 9 | 20 | ||
Capital Expenditures | 17 | 17 | ||
Africa | Operating Segments | Akyem | ||||
Segment Information | ||||
Sales | 154 | 135 | ||
Costs applicable to sales | 62 | 55 | ||
Depreciation and amortization | 34 | 29 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | 55 | 47 | ||
Capital Expenditures | 6 | 7 | ||
Africa | Operating Segments | Other Africa | ||||
Segment Information | ||||
Advanced Projects, Research and Development, and Exploration | 1 | 1 | ||
Income (Loss) before Income and Mining Tax and Other Items | $ (1) | $ (2) | ||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
RECLAMATION AND REMEDIATION - Y
RECLAMATION AND REMEDIATION - Yanacocha (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Yanacocha | |
Reclamation and remediation expense | |
Frequency of closure plan updates (in years) | 5 years |
RECLAMATION AND REMEDIATION - E
RECLAMATION AND REMEDIATION - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
RECLAMATION AND REMEDIATION | ||
Reclamation accretion | $ 25 | $ 19 |
Remediation | 4 | 1 |
Remediation accretion | 1 | 1 |
Total remediation expense | 5 | 2 |
Reclamation and remediation expense | $ 30 | $ 21 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Change in reclamation liability | ||
Balance at beginning of period | $ 1,792 | $ 1,300 |
Additions, changes in estimates and other | 2 | |
Payments and other | (5) | (2) |
Accretion expense | 25 | 19 |
Balance at end of period | 1,812 | 1,319 |
Change in remediation liability | ||
Balance at beginning of period | 298 | 318 |
Additions, changes in estimates and other | 2 | |
Payments and other | (8) | (3) |
Accretion Expense | 1 | 1 |
Balance at end of period | $ 293 | $ 316 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Reclamation and remediation liability | ||||
Asset retirement obligation | $ 1,812 | $ 1,792 | $ 1,319 | $ 1,300 |
Environmental remediation obligations | 293 | 298 | $ 316 | $ 318 |
Other current liabilities | ||||
Reclamation and remediation liability | ||||
Reclamation obligation, current | 28 | 28 | ||
Remediation obligation, current | 33 | 33 | ||
Other noncurrent assets | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 66 | 66 | ||
Other noncurrent assets | Midnite Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 43 | 43 | ||
Other noncurrent assets | Ahafo and Akyem Mines | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 14 | 14 | ||
Other noncurrent assets | Con Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 9 | 9 | ||
Investments, Noncurrent | San Jose Reservoir and various Nevada locations | Marketable equity securities | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | $ 21 | $ 20 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OTHER EXPENSE, NET | ||
Restructuring and other | $ 7 | $ 13 |
Impairment of long-lived assets | 3 | |
Acquisition costs | 2 | |
Other | 5 | 5 |
Other expense, net | $ 17 | $ 18 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign currency exchange, net | $ (17) | $ (16) | |
Gain on asset and investment sales, net | 2 | 104 | |
Other | 6 | 8 | |
Other Income, net | $ (9) | $ 96 | |
Other income, net | Regis Resources Ltd. | |||
Other information | |||
Proceeds from sale of available for sale securities | $ 184 | ||
Gain on sale of investments, net | $ 103 |
INCOME AND MINING TAXES - Tax E
INCOME AND MINING TAXES - Tax Expense Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciling item, percentage | ||
Tax at statutory rate (as a percent) | 35.00% | 35.00% |
Percentage depletion (as a percent) | (17.00%) | (61.00%) |
Change in valuation allowance on deferred tax assets (as a percent) | 35.00% | 112.00% |
Mining and other taxes (as a percent) | 10.00% | 34.00% |
Tax impact on sale of assets (as a percent) | (17.00%) | |
Other (as a percent) | (6.00%) | 6.00% |
Income and mining tax expense (as a percent) | 57.00% | 109.00% |
Reconciling item, amount | ||
Income (loss) before income and mining tax and other items | $ 193 | $ 208 |
Tax at statutory rate | 68 | 73 |
Percentage depletion | (32) | (126) |
Change in valuation allowance on deferred tax assets | 67 | 232 |
Mining and other taxes | 19 | 71 |
Tax impact on sale of assets | (35) | |
Other | (12) | 12 |
Income and mining tax benefit (expense) | $ (110) | $ (227) |
INCOME AND MINING TAXES - Unrec
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2016USD ($)subsidiary | Mar. 31, 2017USD ($) | |
Canadian Revenue Authority | |||
Unrecognized Tax Benefits, other information | |||
Number of subsidiaries subject to tax and interest assessment | subsidiary | 1 | ||
Tax and interest assessment | $ 54 | ||
Minimum percentage of assessment required to be paid | 50.00% | ||
Minimum | |||
Unrecognized Tax Benefits, other information | |||
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 15 | ||
Maximum | |||
Unrecognized Tax Benefits, other information | |||
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 20 |
NET INCOME (LOSS) ATTRIBUTABL68
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Net income (loss) attributable to noncontrolling interests | $ 12 | $ (12) |
Minera Yanacocha S.R.L. | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Net income (loss) attributable to noncontrolling interests | (1) | (11) |
Merian | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Net income (loss) attributable to noncontrolling interests | 14 | $ (1) |
Other | ||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||
Net income (loss) attributable to noncontrolling interests | $ (1) |
NET INCOME (LOSS) ATTRIBUTABL69
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Ownership (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Minera Yanacocha S.R.L. | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership/Economic interest in subsidiaries | 51.35% |
Minera Yanacocha S.R.L. | Compañia de Minas Buenaventura | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 43.65% |
Minera Yanacocha S.R.L. | International Finance Corporation | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 5.00% |
Merian | Primary Beneficiary | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership interest held (as a percent) | 75.00% |
NET INCOME (LOSS) ATTRIBUTABL70
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Classified Assets and Liabilities of Consolidated VIEs (Details) - Primary Beneficiary - Merian - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets and liabilities of VIE | ||
Current assets | $ 200 | $ 167 |
Total assets | 957 | 921 |
Current liabilities | 38 | 43 |
Total liabilities | 50 | 54 |
Cash and cash equivalents | ||
Assets and liabilities of VIE | ||
Current assets | 75 | 50 |
Inventories | ||
Assets and liabilities of VIE | ||
Current assets | 67 | 57 |
Stockpiles and ore on leach pads | ||
Assets and liabilities of VIE | ||
Current assets | 14 | 23 |
Other current assets | ||
Assets and liabilities of VIE | ||
Current assets | 44 | 37 |
Other noncurrent assets | ||
Assets and liabilities of VIE | ||
Non-current assets | 16 | 8 |
Property, plant and mine development, net | ||
Assets and liabilities of VIE | ||
Non-current assets | 741 | 746 |
Other current liabilities | ||
Assets and liabilities of VIE | ||
Current liabilities | 38 | 43 |
Reclamation and remediation liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | $ 12 | $ 11 |
INCOME (LOSS) PER COMMON SHAR71
INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income (loss) attributable to Newmont stockholders: | ||
Continuing operations | $ 69 | $ (12) |
Discontinued operations | (23) | 64 |
Net income (loss) attributable to Newmont stockholders | $ 46 | $ 52 |
Weighted average common shares (millions): | ||
Basic | 532 | 530 |
Effect of employee stock-based awards | 1 | 1 |
Diluted | 533 | 531 |
Net income (loss) per common share: Basic: | ||
Continuing operations (in dollars per share) | $ 0.13 | $ (0.02) |
Discontinued operations (in dollars per share) | (0.04) | 0.12 |
Net income (loss) per common share, basic | 0.09 | 0.10 |
Net income (loss) per common share: Diluted | ||
Continuing operations (in dollars per share) | 0.13 | (0.02) |
Discontinued operations (in dollars per share) | (0.04) | 0.12 |
Net income (loss) per common share, diluted | $ 0.09 | $ 0.10 |
INCOME (LOSS) PER COMMON SHAR72
INCOME (LOSS) PER COMMON SHARE - Anti-dilutive Shares (Details) - Options - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive securities | ||
Anti-dilutive shares | 1 | 2 |
Options to purchase common shares average exercise price (in dollars per share) | $ 51.30 | $ 51.77 |
INCOME (LOSS) PER COMMON SHAR73
INCOME (LOSS) PER COMMON SHARE - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Convertible Debt - impact on earnings (loss) per share | ||
Convertible debt, number of additional shares included in diluted weighted-average shares | 0 | 0 |
EMPLOYEE PENSION AND OTHER BE74
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plans | ||
Net periodic pension and other benefits costs | ||
Service cost | $ 7 | $ 7 |
Interest cost | 11 | 11 |
Expected return on plan assets | (15) | (14) |
Amortization, net | 7 | 6 |
Settlements | 4 | |
Total benefit cost | 14 | 10 |
Other Benefit Plans | ||
Net periodic pension and other benefits costs | ||
Interest cost | 1 | 1 |
Amortization, net | $ (1) | $ (1) |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-based compensation: | ||
Stock-based compensation | $ 16 | $ 16 |
Performance leveraged stock units | ||
Stock-based compensation: | ||
Stock-based compensation | 8 | 8 |
Restricted stock units | ||
Stock-based compensation: | ||
Stock-based compensation | 7 | 6 |
Strategic stock units | ||
Stock-based compensation: | ||
Stock-based compensation | $ 1 | $ 2 |
FAIR VALUE ACCOUNTING - Fair Va
FAIR VALUE ACCOUNTING - Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 2,919 | $ 2,756 |
Restricted assets | 68 | 68 |
Assets | 3,156 | 3,044 |
Liabilities: | ||
Debt (1) | 5,023 | 4,882 |
Liabilities | 5,271 | 5,107 |
Recurring | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 220 | 187 |
Recurring | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 84 | 113 |
Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 13 | 24 |
Recurring | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 2 | |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 2,919 | 2,756 |
Restricted assets | 68 | 68 |
Assets | 3,143 | 3,013 |
Recurring | Level 1 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 84 | 113 |
Recurring | Level 2 | ||
Liabilities: | ||
Debt (1) | 5,023 | 4,882 |
Liabilities | 5,038 | 4,906 |
Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 13 | 24 |
Recurring | Level 2 | Diesel forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 2 | |
Recurring | Level 3 | ||
Assets: | ||
Assets | 13 | 31 |
Liabilities: | ||
Liabilities | 233 | 201 |
Recurring | Level 3 | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Level 3 | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 220 | 187 |
Recurring | Level 3 | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Marketable equity securities | Extractive industries | ||
Assets: | ||
Marketable securities | 51 | 60 |
Recurring | Marketable equity securities | Extractive industries | Level 1 | ||
Assets: | ||
Marketable securities | 51 | 60 |
Recurring | Marketable equity securities | Other industries | ||
Assets: | ||
Marketable securities | 21 | 16 |
Recurring | Marketable equity securities | Other industries | Level 1 | ||
Assets: | ||
Marketable securities | 21 | 16 |
Recurring | Asset backed commercial paper | ||
Assets: | ||
Marketable securities | 18 | |
Recurring | Asset backed commercial paper | Level 3 | ||
Assets: | ||
Marketable securities | 18 | |
Carrying value | ||
Liabilities: | ||
Debt (1) | $ 4,606 | $ 4,599 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)oz$ / oz$ / lb | Dec. 31, 2016USD ($)oz$ / oz$ / lb | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 13 | $ 31 | $ 27 | $ 25 |
Financial liabilities, fair value | 233 | 201 | 174 | 139 |
Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 13 | 14 | 10 | 10 |
Boddington Contingent Consideration | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Boddington contingent consideration liability | 100 | |||
Holt royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 220 | 187 | 164 | 129 |
Batu Hijau Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 13 | 13 | ||
Auction rate securities | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 7 | 7 | ||
Asset backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 18 | $ 20 | $ 18 | |
Level 3 | Risk-Adjusted Indicative Price | Asset backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 18 | |||
Recoverability Rate | 97.00% | |||
Level 3 | Monte Carlo | Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Contingent consideration paid to date | 80 | |||
Financial liabilities, fair value | $ 13 | $ 14 | ||
Discount Rate (as a percent) | 3.13% | 3.36% | ||
Short-term copper price (in dollars per pound) | $ / lb | 2.65 | 2.39 | ||
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,219 | 1,221 | ||
Long-term gold price (in dollars per ounce) | $ / oz | 1,300 | 1,300 | ||
Long-term Australian to U.S. dollar exchange rate | 0.80 | 0.80 | ||
Level 3 | Monte Carlo | Holt royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | $ 220 | $ 187 | ||
Discount Rate (as a percent) | 3.18% | 3.36% | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,219 | 1,221 | ||
Long-term gold price (in dollars per ounce) | $ / oz | 1,300 | 1,300 | ||
Level 3 | Monte Carlo | Holt royalty obligation | Minimum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 450 | 332 | ||
Level 3 | Monte Carlo | Holt royalty obligation | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 1,684 | 1,570 | ||
Level 3 | Monte Carlo | Batu Hijau Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 13 | $ 13 | ||
Discount Rate (as a percent) | 17.10% | 17.10% | ||
Short-term copper price (in dollars per pound) | $ / lb | 2.65 | 2.39 | ||
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 |
FAIR VALUE ACCOUNTING - Changes
FAIR VALUE ACCOUNTING - Changes in the Fair Value of Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | $ 31 | $ 25 |
Settlements | (18) | |
Revaluation | 2 | |
Balance at end of period, assets | 13 | 27 |
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 201 | 139 |
Settlements | (5) | (2) |
Revaluation | 37 | 37 |
Balance at end of period, liabilities | 233 | 174 |
Boddington Contingent Consideration | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 14 | 10 |
Balance at end of period, liabilities | 13 | 10 |
Boddington Contingent Consideration | Other expense, net | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (2) | |
Revaluation | 1 | |
Holt royalty obligation | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 187 | 129 |
Balance at end of period, liabilities | 220 | 164 |
Holt royalty obligation | Income (loss) from discontinued operations | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (3) | (2) |
Revaluation | 36 | 37 |
Batu Hijau Contingent Consideration | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 13 | |
Balance at end of period, assets | 13 | |
Auction rate securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 7 | |
Balance at end of period, assets | 7 | |
Asset backed commercial paper | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | 18 |
Balance at end of period, assets | 20 | |
Asset backed commercial paper | Other comprehensive income (loss) | ||
Summary of changes in Level 3 financial assets | ||
Settlements | $ (18) | 0 |
Revaluation | $ 2 |
DERIVATIVE INSTRUMENTS - Foreig
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) - Australia - Cash Flow Hedges - AUD AUD in Millions | Mar. 31, 2017AUD$ / AUD |
Foreign exchange forward contracts | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 77 |
Average rate | $ / AUD | 0.93 |
Expected Maturity Date - 2017 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 71 |
Average rate | $ / AUD | 0.93 |
Expected hedge ratio | 7.00% |
Expected Maturity Date - 2018 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 6 |
Average rate | $ / AUD | 0.92 |
Expected hedge ratio | 4.00% |
DERIVATIVE INSTRUMENTS - Diesel
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) - Cash Flow Hedges - North America gal in Millions | 3 Months Ended |
Mar. 31, 2017$ / galgal | |
Diesel forward contracts | |
Derivative contracts | |
Diesel gallons (millions) | gal | 22 |
Average rate ($/gallon) | $ / gal | 1.63 |
Diesel forward contracts maturing in 2017 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 17 |
Average rate ($/gallon) | $ / gal | 1.63 |
Expected hedge ratio | 50.00% |
Diesel forward contracts maturing in 2018 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 5 |
Average rate ($/gallon) | $ / gal | 1.62 |
Expected hedge ratio | 17.00% |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative contracts | ||
Potential effect of netting derivative assets against liabilities | $ 1 | $ 4 |
Cash Flow Hedges | Other current assets | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | 4 |
Cash Flow Hedges | Other current assets | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 1 | 4 |
Cash Flow Hedges | Other current liabilities | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 16 | 27 |
Cash Flow Hedges | Other current liabilities | Designated | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 13 | 23 |
Cash Flow Hedges | Other current liabilities | Designated | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 3 | 4 |
Cash Flow Hedges | Other non-current liabilities | Designated | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | |
Cash Flow Hedges | Other non-current liabilities | Designated | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 |
DERIVATIVE INSTRUMENTS - Locati
DERIVATIVE INSTRUMENTS - Location and Amount of Gains (Losses) Reported in Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative contracts | ||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 20 | |
Cash Flow Hedges | Foreign exchange forward contracts | ||
Derivative contracts | ||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | 4 | $ 7 |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (8) | (10) |
Cash Flow Hedges | Diesel forward contracts | ||
Derivative contracts | ||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | (3) | (2) |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (2) | (9) |
Cash Flow Hedges | Interest rate contracts | ||
Derivative contracts | ||
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | $ (2) | $ (3) |
DERIVATIVE INSTRUMENTS - Batu H
DERIVATIVE INSTRUMENTS - Batu Hijau Contingent Consideration (Details) - Contingent Payment - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Batu Hijau Contingent Consideration | ||
Change in value of contingent consideration | $ 0 | |
Other noncurrent assets | ||
Batu Hijau Contingent Consideration | ||
Batu Hijau contingent consideration | $ 13 | $ 13 |
DERIVATIVE INSTRUMENTS - Embedd
DERIVATIVE INSTRUMENTS - Embedded Derivatives (Details) oz in Thousands, lb in Millions | 3 Months Ended |
Mar. 31, 2017lboz$ / oz$ / lb | |
Gold Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | oz | 101 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,246 |
Copper Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | lb | 28 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 2.66 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Investments | ||
Investments, Fair/Equity Basis | $ 208 | $ 227 |
Investments, Current | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 32 | 33 |
Unrealized Gain | 24 | 27 |
Unrealized Loss | (5) | (4) |
Fair/Equity Basis - Current Marketable Equity Securities | 51 | 56 |
Investments, Noncurrent | ||
Investments | ||
Other investments, at cost | 6 | 6 |
Investments, Cost/Equity Basis | 207 | 223 |
Unrealized Gain | 1 | 4 |
Investments, Fair/Equity Basis | 208 | 227 |
Equity Method Investments | 181 | 183 |
Investments, Noncurrent | TMAC | ||
Investments | ||
Equity Method Investments | $ 107 | $ 108 |
Ownership interest (as a percent) | 29.00% | 29.00% |
Investments, Noncurrent | La Zanja | ||
Investments | ||
Equity Method Investments | $ 70 | $ 71 |
Ownership interest (as a percent) | 46.94% | 46.94% |
Investments, Noncurrent | Euronimba | ||
Investments | ||
Equity Method Investments | $ 4 | $ 4 |
Ownership interest (as a percent) | 43.50% | 43.50% |
Investments, Noncurrent | Asset backed commercial paper | ||
Investments | ||
Cost/Equity Basis | $ 16 | |
Unrealized Gain | 2 | |
Fair/Equity Basis - Long-Term Marketable Securities | 18 | |
Investments, Noncurrent | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | $ 20 | 18 |
Unrealized Gain | 1 | 2 |
Fair/Equity Basis - Long-Term Marketable Securities | $ 21 | $ 20 |
INVESTMENTS - Impairments and O
INVESTMENTS - Impairments and Other Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Impairments | |||
Impairment of investments | $ 0 | $ 0 | |
Increase (decrease) in fair value of marketable securities previously impaired | (3) | $ (78) | |
Asset backed commercial paper | |||
Investments | |||
Gain (loss) realized on securities called at par | $ 0 | ||
Goldstrike Resources | Access and Explore Private Placement Agreement | Plan | |||
Investments | |||
Purchase price agreed upon for acquired investment | $ 5 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory, net | ||
Materials and supplies | $ 403 | $ 391 |
In-process | 144 | 130 |
Concentrate and copper cathode | 85 | 67 |
Precious metals | 34 | 29 |
Total inventories | $ 666 | $ 617 |
STOCKPILES AND ORE ON LEACH P88
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 772 | $ 763 |
Long-term stockpiles and ore on leach pads | 1,817 | 1,864 |
Stockpiles and ore on leach pads | 2,589 | 2,627 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 387 | 393 |
Long-term stockpiles and ore on leach pads | 1,487 | 1,506 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 385 | 370 |
Long-term stockpiles and ore on leach pads | 330 | 358 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 417 | 421 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 78 | 80 |
Operating Segments | Twin Creeks | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 337 | 328 |
Operating Segments | Long Canyon | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 19 | 9 |
Operating Segments | Cripple Creek & Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 350 | 369 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 344 | 367 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 27 | 27 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 405 | 394 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 9 | 19 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 118 | 113 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 379 | 386 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 106 | $ 114 |
STOCKPILES AND ORE ON LEACH P89
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - Stockpiles and ore on leach pads - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Carlin | ||
Write-downs | ||
Inventory write-downs | $ 23 | $ 27 |
Twin Creeks | ||
Write-downs | ||
Inventory write-downs | 4 | 2 |
Yanacocha | ||
Write-downs | ||
Inventory write-downs | 8 | 45 |
Ahafo | ||
Write-downs | ||
Inventory write-downs | 18 | |
Costs applicable to sales | ||
Write-downs | ||
Inventory write-downs | 40 | 50 |
Depreciation and Amortization | ||
Write-downs | ||
Inventory write-downs | $ 13 | $ 24 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Millions | Mar. 31, 2017USD ($) |
Scheduled minimum debt repayments | |
Remainder of 2017 | $ 575 |
2,018 | 0 |
2,019 | 626 |
2,020 | 0 |
2,021 | 0 |
Debt repayments, thereafter | 3,466 |
Scheduled minimum capital lease repayments | |
Remainder of 2017 | 4 |
2,018 | 4 |
2,019 | 3 |
2,020 | 1 |
2,021 | 1 |
Capital lease repayments, thereafter | $ 2 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Other current liabilities: | ||
Accrued operating costs | $ 82 | $ 99 |
Accrued interest | 64 | 57 |
Reclamation and remediation liabilities | 61 | 61 |
Accrued capital expenditures | 42 | 53 |
Royalties | 28 | 52 |
Derivative instruments | 16 | 27 |
Holt royalty obligation | 13 | 13 |
Taxes other than income and mining | 5 | 8 |
Boddington contingent consideration | 4 | 3 |
Other | 17 | 34 |
Other current liabilities, total | 332 | 407 |
Other long-term liabilities: | ||
Holt property royalty | 207 | 174 |
Income and mining taxes | 53 | 50 |
Power supply agreements | 32 | 31 |
Social development obligations | 24 | 25 |
Boddington contingent consideration | 9 | 11 |
Derivative instruments | 1 | |
Other | 36 | 34 |
Other long-term liabilities, total | $ 361 | $ 326 |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in Equity | ||
Balance at beginning of period | $ 11,874 | |
Other comprehensive income (loss) | 12 | $ (52) |
Net income (loss) attributable to Newmont stockholders | 46 | 52 |
Net income (loss) attributable to noncontrolling interests | 12 | 83 |
Balance at end of period | 11,916 | 14,253 |
Distributions to noncontrolling interests | (32) | |
Funding from noncontrolling interests paid | 21 | 12 |
Common Stock | ||
Changes in Equity | ||
Balance at beginning of period | 849 | 847 |
Stock-based awards | 4 | 2 |
Balance at end of period | 853 | 849 |
Additional Paid-in Capital | ||
Changes in Equity | ||
Balance at beginning of period | 9,490 | 9,427 |
Stock-based awards | (1) | 10 |
Balance at end of period | 9,489 | 9,437 |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in Equity | ||
Balance at beginning of period | (334) | (334) |
Other comprehensive income (loss) | 12 | (52) |
Balance at end of period | (322) | (386) |
Retained Earnings | ||
Changes in Equity | ||
Balance at beginning of period | 716 | 1,410 |
Net income (loss) attributable to Newmont stockholders | 46 | 52 |
Dividends paid | (27) | (13) |
Balance at end of period | 735 | 1,449 |
Noncontrolling Interests | ||
Changes in Equity | ||
Balance at beginning of period | 1,153 | 2,942 |
Net income (loss) attributable to noncontrolling interests | 12 | 83 |
Dividends paid to noncontrolling interests | (146) | |
Distributions declared to noncontrolling interests (1) | (33) | |
Cash calls requested from noncontrolling interests (2) | 29 | 26 |
Other | (1) | |
Balance at end of period | 1,161 | 2,904 |
Noncontrolling Interests | Staatsolie | ||
Changes in Equity | ||
Distributions declared to noncontrolling interests (1) | (33) | |
Cash calls requested from noncontrolling interests (2) | 29 | 26 |
Distributions to noncontrolling interests | (32) | |
Funding from noncontrolling interests paid | $ 21 | $ 12 |
RECLASSIFICATIONS OUT OF ACCU93
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | $ 11,874 | |
Other comprehensive income (loss) | 12 | $ (52) |
Balance at end of period | 11,916 | 14,253 |
Unrealized gain (loss) on marketable securities, net | ||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | (101) | |
Change in other comprehensive income (loss) before reclassifications | (7) | |
Other comprehensive income (loss) | (7) | |
Balance at end of period | (108) | |
Foreign currency translation adjustments | ||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | 118 | |
Change in other comprehensive income (loss) before reclassifications | 4 | |
Other comprehensive income (loss) | 4 | |
Balance at end of period | 122 | |
Pension and other post-retirement benefit adjustments | ||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | (223) | |
Reclassifications from accumulated other comprehensive income (loss) | 6 | 3 |
Other comprehensive income (loss) | 6 | |
Balance at end of period | (217) | |
Changes in fair value of cash flow hedge instruments | ||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | (128) | |
Change in other comprehensive income (loss) before reclassifications | 1 | |
Reclassifications from accumulated other comprehensive income (loss) | 8 | |
Other comprehensive income (loss) | 9 | |
Balance at end of period | (119) | |
Accumulated Other Comprehensive Income (Loss) | ||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
Balance at beginning of period | (334) | (334) |
Change in other comprehensive income (loss) before reclassifications | (2) | |
Reclassifications from accumulated other comprehensive income (loss) | 14 | |
Other comprehensive income (loss) | 12 | (52) |
Balance at end of period | $ (322) | $ (386) |
RECLASSIFICATIONS OUT OF ACCU94
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Costs applicable to sales (1) | [1] | $ 933 | $ 851 |
Other income, net | 9 | (96) | |
Depreciation and amortization | 293 | 276 | |
Interest expense, net | 67 | 74 | |
Total before tax | (193) | (208) | |
Tax benefit (expense) | 110 | 227 | |
Net of tax | (58) | (135) | |
Pension and other post-retirement benefit adjustments | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Total before tax | 10 | 5 | |
Tax benefit (expense) | (4) | (2) | |
Net of tax | 6 | 3 | |
Accumulated defined benefit pension plans adjustment, amortization | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Total before tax | 6 | 5 | |
Accumulated defined benefit pension plans adjustment, settlements | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Total before tax | 4 | ||
Changes in fair value of cash flow hedge instruments | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Net of tax | 8 | ||
Reclassification Out of Accumulated Other Comprehensive Income | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Net of tax | 14 | (86) | |
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on marketable securities, net | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Total before tax | (103) | ||
Net of tax | (103) | ||
Reclassification Out of Accumulated Other Comprehensive Income | Marketable securities adjustments - sale of marketable securities | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Other income, net | (103) | ||
Reclassification Out of Accumulated Other Comprehensive Income | Changes in fair value of cash flow hedge instruments | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Total before tax | 12 | 22 | |
Tax benefit (expense) | (4) | (8) | |
Net of tax | 8 | 14 | |
Reclassification Out of Accumulated Other Comprehensive Income | Operating cash flow hedges | Changes in fair value of cash flow hedge instruments | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Costs applicable to sales (1) | 10 | 19 | |
Reclassification Out of Accumulated Other Comprehensive Income | Interest rate contracts | Changes in fair value of cash flow hedge instruments | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Interest expense, net | $ 2 | $ 3 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSET95
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Decrease (increase) in operating assets: | ||
Trade and other accounts receivables | $ 70 | $ (52) |
Inventories, stockpiles and ore on leach pads | (72) | (96) |
Other assets | (2) | (6) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (19) | (10) |
Reclamation liabilities | (13) | (5) |
Other accrued liabilities | (139) | (88) |
Net change in operating assets and liabilities | $ (175) | $ (257) |
CONDENSED CONSOLIDATING FINAN96
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Mar. 31, 2017 | Jun. 05, 2007 |
Newmont USA | ||
Condensed Financial Statements | ||
Percent ownership held by Newmont | 100.00% | 100.00% |
CONDENSED CONSOLIDATING FINAN97
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Condensed Consolidating Statement of Operation | |||
Sales | $ 1,659 | $ 1,462 | |
Costs and expenses | |||
Costs applicable to sales (1) | [1] | 933 | 851 |
Depreciation and amortization | 293 | 276 | |
Reclamation and remediation | 30 | 21 | |
Exploration | 36 | 30 | |
Advanced projects, research and development | 26 | 27 | |
General and administrative | 55 | 53 | |
Impairment of long-lived assets | 3 | ||
Other expense, net | 17 | 18 | |
Total costs and expenses | 1,390 | 1,276 | |
Other income (expense) | |||
Other income, net | (9) | 96 | |
Interest expense, net | (67) | (74) | |
Total other income (expense) | (76) | 22 | |
Income (loss) before income and mining tax and other items | 193 | 208 | |
Income and mining tax benefit (expense) | (110) | (227) | |
Equity income (loss) of affiliates | (2) | (5) | |
Net income (loss) from continuing operations | 81 | (24) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (23) | 159 | |
Net income (loss) | 58 | 135 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Continuing operations | (12) | 12 | |
Discontinued operations | (95) | ||
Net loss (income) attributable to noncontrolling interests | (12) | (83) | |
Net income (loss) attributable to Newmont stockholders | 46 | 52 | |
Comprehensive income (loss) | 70 | 83 | |
Comprehensive loss (income) attributable to noncontrolling interests | (12) | (83) | |
Comprehensive income (loss) attributable to Newmont stockholders | 58 | ||
Reportable Legal Entities | Newmont Mining Corporation | |||
Costs and expenses | |||
Depreciation and amortization | 1 | ||
Total costs and expenses | 1 | ||
Other income (expense) | |||
Other income, net | 3 | 9 | |
Interest income - intercompany | 24 | 30 | |
Interest expense - intercompany | (8) | (8) | |
Interest expense, net | (62) | (71) | |
Total other income (expense) | (43) | (40) | |
Income (loss) before income and mining tax and other items | (44) | (40) | |
Income and mining tax benefit (expense) | 16 | 75 | |
Equity income (loss) of affiliates | 74 | 17 | |
Net income (loss) from continuing operations | 46 | 52 | |
Net income (loss) | 46 | 52 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Net income (loss) attributable to Newmont stockholders | 46 | 52 | |
Comprehensive income (loss) | 58 | ||
Comprehensive income (loss) attributable to Newmont stockholders | 58 | ||
Reportable Legal Entities | Newmont USA | |||
Condensed Consolidating Statement of Operation | |||
Sales | 403 | 471 | |
Costs and expenses | |||
Costs applicable to sales (1) | 285 | 306 | |
Depreciation and amortization | 79 | 84 | |
Reclamation and remediation | 4 | 3 | |
Exploration | 9 | 6 | |
Advanced projects, research and development | 1 | 2 | |
General and administrative | 17 | 17 | |
Other expense, net | 6 | 4 | |
Total costs and expenses | 401 | 422 | |
Other income (expense) | |||
Interest expense, net | (2) | (2) | |
Total other income (expense) | (2) | (2) | |
Income (loss) before income and mining tax and other items | 47 | ||
Income and mining tax benefit (expense) | (11) | ||
Equity income (loss) of affiliates | (84) | (274) | |
Net income (loss) from continuing operations | (84) | (238) | |
Net income (loss) | (84) | (238) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Net income (loss) attributable to Newmont stockholders | (84) | (238) | |
Comprehensive income (loss) | (79) | (232) | |
Comprehensive income (loss) attributable to Newmont stockholders | (79) | (232) | |
Reportable Legal Entities | Other Subsidiaries | |||
Condensed Consolidating Statement of Operation | |||
Sales | 1,256 | 991 | |
Costs and expenses | |||
Costs applicable to sales (1) | 648 | 545 | |
Depreciation and amortization | 213 | 192 | |
Reclamation and remediation | 26 | 18 | |
Exploration | 27 | 24 | |
Advanced projects, research and development | 25 | 25 | |
General and administrative | 38 | 36 | |
Other expense, net | 11 | 14 | |
Total costs and expenses | 988 | 854 | |
Other income (expense) | |||
Other income, net | (12) | 87 | |
Interest income - intercompany | 7 | 9 | |
Interest expense - intercompany | (23) | (31) | |
Interest expense, net | (3) | (1) | |
Total other income (expense) | (31) | 64 | |
Income (loss) before income and mining tax and other items | 237 | 201 | |
Income and mining tax benefit (expense) | (126) | (291) | |
Equity income (loss) of affiliates | (1) | 2 | |
Net income (loss) from continuing operations | 110 | (88) | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (23) | 159 | |
Net income (loss) | 87 | 71 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Continuing operations | (12) | 12 | |
Discontinued operations | (95) | ||
Net loss (income) attributable to noncontrolling interests | (12) | (83) | |
Net income (loss) attributable to Newmont stockholders | 75 | (12) | |
Comprehensive income (loss) | 82 | 10 | |
Comprehensive loss (income) attributable to noncontrolling interests | (12) | (83) | |
Comprehensive income (loss) attributable to Newmont stockholders | 70 | (73) | |
Eliminations | |||
Other income (expense) | |||
Interest income - intercompany | (31) | (39) | |
Interest expense - intercompany | 31 | 39 | |
Equity income (loss) of affiliates | 9 | 250 | |
Net income (loss) from continuing operations | 9 | 250 | |
Net income (loss) | 9 | 250 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||
Net income (loss) attributable to Newmont stockholders | 9 | 250 | |
Comprehensive income (loss) | 9 | 305 | |
Comprehensive income (loss) attributable to Newmont stockholders | $ 9 | $ 305 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINAN98
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net cash provided by (used in) continuing operating activities | $ 379 | $ 157 |
Net cash provided by (used in) operating activities of discontinued operations | (6) | 369 |
Net cash provided by (used in) operating activities | 373 | 526 |
Investing activities: | ||
Additions to property, plant and mine development | (180) | (280) |
Proceeds from sales of investments | 19 | 184 |
Proceeds from sales of other assets | 2 | 6 |
Acquisitions, net | (2) | |
Other | 1 | (4) |
Net cash provided by (used in) investing activities of continuing operations | (160) | (94) |
Net cash provided by (used in) investing activities of discontinued operations | (17) | |
Net cash provided by (used in) investing activities | (160) | (111) |
Financing activities: | ||
Dividends paid to common stockholders | (27) | (13) |
Distributions to noncontrolling interests | (32) | |
Funding from noncontrolling interests | 21 | 12 |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) |
Repayment of debt | (1) | (499) |
Dividends paid to noncontrolling interests | (146) | |
Other | 1 | |
Net cash provided by (used in) financing activities of continuing operations | (52) | (649) |
Net cash provided by (used in) financing activities of discontinued operations | (93) | |
Net cash provided by (used in) financing activities | (52) | (742) |
Effect of exchange rate changes on cash | 2 | 6 |
Net change in cash and cash equivalents | 163 | (321) |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau Discontinued Operations | 163 | |
Less net cash provided by (used in) Batu Hijau discontinued operations | 261 | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau Discontinued Operations | (582) | |
Cash and cash equivalents at beginning of period | 2,756 | 2,363 |
Cash and cash equivalents at end of period | 2,919 | 1,781 |
Reportable Legal Entities | Newmont Mining Corporation | ||
Operating activities: | ||
Net cash provided by (used in) continuing operating activities | (51) | 757 |
Net cash provided by (used in) operating activities | (51) | 757 |
Financing activities: | ||
Dividends paid to common stockholders | (27) | (13) |
Repayment of debt | (498) | |
Net intercompany borrowings (repayments) | 78 | (246) |
Net cash provided by (used in) financing activities of continuing operations | 51 | (757) |
Net cash provided by (used in) financing activities | 51 | (757) |
Reportable Legal Entities | Newmont USA | ||
Operating activities: | ||
Net cash provided by (used in) continuing operating activities | (12) | 44 |
Net cash provided by (used in) operating activities | (12) | 44 |
Investing activities: | ||
Additions to property, plant and mine development | (60) | (66) |
Net cash provided by (used in) investing activities of continuing operations | (60) | (66) |
Net cash provided by (used in) investing activities | (60) | (66) |
Financing activities: | ||
Dividends paid to common stockholders | (830) | |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (4) |
Repayment of debt | (1) | (1) |
Net intercompany borrowings (repayments) | 86 | (320) |
Net cash provided by (used in) financing activities of continuing operations | 72 | (1,155) |
Net cash provided by (used in) financing activities | 72 | (1,155) |
Net change in cash and cash equivalents | (1,177) | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau Discontinued Operations | (1,177) | |
Cash and cash equivalents at beginning of period | 1 | 1,181 |
Cash and cash equivalents at end of period | 1 | 4 |
Reportable Legal Entities | Other Subsidiaries | ||
Operating activities: | ||
Net cash provided by (used in) continuing operating activities | 442 | 186 |
Net cash provided by (used in) operating activities of discontinued operations | (6) | 369 |
Net cash provided by (used in) operating activities | 436 | 555 |
Investing activities: | ||
Additions to property, plant and mine development | (120) | (214) |
Proceeds from sales of investments | 19 | 184 |
Proceeds from sales of other assets | 2 | 6 |
Acquisitions, net | (2) | |
Other | 1 | (4) |
Net cash provided by (used in) investing activities of continuing operations | (100) | (28) |
Net cash provided by (used in) investing activities of discontinued operations | (17) | |
Net cash provided by (used in) investing activities | (100) | (45) |
Financing activities: | ||
Distributions to noncontrolling interests | (32) | |
Funding from noncontrolling interests | 21 | 12 |
Dividends paid to noncontrolling interests | (146) | |
Net intercompany borrowings (repayments) | (164) | 566 |
Other | 1 | |
Net cash provided by (used in) financing activities of continuing operations | (175) | 433 |
Net cash provided by (used in) financing activities of discontinued operations | (93) | |
Net cash provided by (used in) financing activities | (175) | 340 |
Effect of exchange rate changes on cash | 2 | 6 |
Net change in cash and cash equivalents | 163 | 856 |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau Discontinued Operations | 163 | |
Less net cash provided by (used in) Batu Hijau discontinued operations | 261 | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau Discontinued Operations | 595 | |
Cash and cash equivalents at beginning of period | 2,755 | 1,182 |
Cash and cash equivalents at end of period | $ 2,918 | 1,777 |
Eliminations | ||
Operating activities: | ||
Net cash provided by (used in) continuing operating activities | (830) | |
Net cash provided by (used in) operating activities | (830) | |
Financing activities: | ||
Dividends paid to common stockholders | 830 | |
Net cash provided by (used in) financing activities of continuing operations | 830 | |
Net cash provided by (used in) financing activities | $ 830 |
CONDENSED CONSOLIDATING FINAN99
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 2,919 | $ 2,756 | $ 1,781 | $ 2,363 |
Trade receivables | 102 | 127 | ||
Other accounts receivables | 183 | 216 | ||
Investments | 51 | 56 | ||
Inventories | 666 | 617 | ||
Stockpiles and ore on leach pads | 772 | 763 | ||
Other current assets | 145 | 142 | ||
Current assets | 4,838 | 4,677 | ||
Property, plant and mine development, net | 12,378 | 12,485 | ||
Investments | 208 | 227 | ||
Stockpiles and ore on leach pads | 1,817 | 1,864 | ||
Deferred income tax assets | 1,285 | 1,331 | ||
Other non-current assets | 443 | 447 | ||
Total assets | 20,969 | 21,031 | ||
Liabilities | ||||
Debt | 572 | 566 | ||
Accounts payable | 305 | 320 | ||
Employee-related benefits | 194 | 304 | ||
Income and mining taxes | 162 | 153 | ||
Other current liabilities | 332 | 407 | ||
Current liabilities | 1,565 | 1,750 | ||
Debt | 4,049 | 4,049 | ||
Reclamation and remediation liabilities | 2,044 | 2,029 | ||
Deferred income tax liabilities | 607 | 592 | ||
Employee-related benefits | 427 | 411 | ||
Other non-current liabilities | 361 | 326 | ||
Total liabilities | 9,053 | 9,157 | ||
Equity | ||||
Newmont stockholders' equity | 10,755 | 10,721 | ||
Noncontrolling interests | 1,161 | 1,153 | ||
Total equity | 11,916 | 11,874 | 14,253 | |
Total liabilities and equity | 20,969 | 21,031 | ||
Reportable Legal Entities | Newmont Mining Corporation | ||||
Assets | ||||
Intercompany receivable | 8,055 | 7,255 | ||
Current assets | 8,055 | 7,255 | ||
Property, plant and mine development, net | 20 | 20 | ||
Investments in subsidiaries | 13,301 | 13,222 | ||
Deferred income tax assets | 493 | 477 | ||
Non-current intercompany receivable | 2,107 | 2,219 | ||
Total assets | 23,976 | 23,193 | ||
Liabilities | ||||
Debt | 567 | 560 | ||
Intercompany payable | 8,459 | 7,720 | ||
Other current liabilities | 64 | 62 | ||
Current liabilities | 9,090 | 8,342 | ||
Debt | 4,041 | 4,038 | ||
Deferred income tax liabilities | 9 | 9 | ||
Non-current intercompany payable | 81 | 83 | ||
Total liabilities | 13,221 | 12,472 | ||
Equity | ||||
Newmont stockholders' equity | 10,755 | 10,721 | ||
Total equity | 10,755 | 10,721 | ||
Total liabilities and equity | 23,976 | 23,193 | ||
Reportable Legal Entities | Newmont USA | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | 4 | 1,181 |
Trade receivables | 37 | 21 | ||
Other accounts receivables | 2 | |||
Intercompany receivable | 6,158 | 6,065 | ||
Inventories | 165 | 155 | ||
Stockpiles and ore on leach pads | 212 | 224 | ||
Other current assets | 75 | 83 | ||
Current assets | 6,648 | 6,551 | ||
Property, plant and mine development, net | 3,118 | 3,144 | ||
Investments | 9 | 8 | ||
Investments in subsidiaries | 471 | 537 | ||
Stockpiles and ore on leach pads | 612 | 599 | ||
Deferred income tax assets | 34 | 48 | ||
Non-current intercompany receivable | 608 | 606 | ||
Other non-current assets | 224 | 224 | ||
Total assets | 11,724 | 11,717 | ||
Liabilities | ||||
Debt | 2 | 3 | ||
Accounts payable | 65 | 62 | ||
Intercompany payable | 4,958 | 4,795 | ||
Employee-related benefits | 79 | 148 | ||
Income and mining taxes | 2 | 13 | ||
Other current liabilities | 76 | 109 | ||
Current liabilities | 5,182 | 5,130 | ||
Debt | 3 | 4 | ||
Reclamation and remediation liabilities | 250 | 247 | ||
Deferred income tax liabilities | 91 | 93 | ||
Employee-related benefits | 274 | 269 | ||
Other non-current liabilities | 23 | 21 | ||
Total liabilities | 5,823 | 5,764 | ||
Equity | ||||
Newmont stockholders' equity | 5,901 | 5,953 | ||
Total equity | 5,901 | 5,953 | ||
Total liabilities and equity | 11,724 | 11,717 | ||
Reportable Legal Entities | Other Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 2,918 | 2,755 | $ 1,777 | $ 1,182 |
Trade receivables | 65 | 106 | ||
Other accounts receivables | 183 | 214 | ||
Intercompany receivable | 12,184 | 11,347 | ||
Investments | 51 | 56 | ||
Inventories | 501 | 462 | ||
Stockpiles and ore on leach pads | 560 | 539 | ||
Other current assets | 70 | 59 | ||
Current assets | 16,532 | 15,538 | ||
Property, plant and mine development, net | 9,271 | 9,355 | ||
Investments | 199 | 219 | ||
Stockpiles and ore on leach pads | 1,205 | 1,265 | ||
Deferred income tax assets | 1,248 | 1,296 | ||
Non-current intercompany receivable | 946 | 955 | ||
Other non-current assets | 219 | 223 | ||
Total assets | 29,620 | 28,851 | ||
Liabilities | ||||
Debt | 3 | 3 | ||
Accounts payable | 240 | 258 | ||
Intercompany payable | 12,980 | 12,152 | ||
Employee-related benefits | 115 | 156 | ||
Income and mining taxes | 160 | 140 | ||
Other current liabilities | 192 | 236 | ||
Current liabilities | 13,690 | 12,945 | ||
Debt | 5 | 7 | ||
Reclamation and remediation liabilities | 1,794 | 1,782 | ||
Deferred income tax liabilities | 997 | 980 | ||
Employee-related benefits | 153 | 142 | ||
Non-current intercompany payable | 3,611 | 3,731 | ||
Other non-current liabilities | 338 | 305 | ||
Total liabilities | 20,588 | 19,892 | ||
Equity | ||||
Newmont stockholders' equity | 7,871 | 7,806 | ||
Noncontrolling interests | 1,161 | 1,153 | ||
Total equity | 9,032 | 8,959 | ||
Total liabilities and equity | 29,620 | 28,851 | ||
Eliminations | ||||
Assets | ||||
Intercompany receivable | (26,397) | (24,667) | ||
Current assets | (26,397) | (24,667) | ||
Property, plant and mine development, net | (31) | (34) | ||
Investments in subsidiaries | (13,772) | (13,759) | ||
Deferred income tax assets | (490) | (490) | ||
Non-current intercompany receivable | (3,661) | (3,780) | ||
Total assets | (44,351) | (42,730) | ||
Liabilities | ||||
Intercompany payable | (26,397) | (24,667) | ||
Current liabilities | (26,397) | (24,667) | ||
Deferred income tax liabilities | (490) | (490) | ||
Non-current intercompany payable | (3,692) | (3,814) | ||
Total liabilities | (30,579) | (28,971) | ||
Equity | ||||
Newmont stockholders' equity | (13,772) | (13,759) | ||
Total equity | (13,772) | (13,759) | ||
Total liabilities and equity | $ (44,351) | $ (42,730) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | Feb. 15, 2017 | Feb. 15, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accrual for future reclamation costs | ||||||
Asset retirement obligation | $ 1,812 | $ 1,792 | $ 1,319 | $ 1,300 | ||
Environmental remediation obligations | $ 293 | 298 | $ 316 | $ 318 | ||
Yanacocha | ||||||
Accrual for future reclamation costs | ||||||
Modification period | 1 year | |||||
Goverment review period (in days) | 90 days | |||||
Compliance period | 3 years | |||||
Frequency of closure plan updates (in years) | 5 years | |||||
Other current liabilities | ||||||
Accrual for future reclamation costs | ||||||
Reclamation obligation, current | $ 28 | $ 28 | ||||
Reclamation and remediation liabilities | ||||||
Accrual for future reclamation costs | ||||||
Range of reclamation and remediation liabilities upper limit | 43.00% | |||||
Range of reclamation and remediation liabilities lower limit | 1.00% |
COMMITMENTS AND CONTINGENCIE101
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Loss contingencies | ||||||
Environmental remediation obligations | $ 293 | $ 298 | $ 316 | $ 318 | ||
Newmont USA | Environmental remediation | Ross-Adams Mine Site | ||||||
Loss contingencies | ||||||
Damages sought | $ 0.3 | |||||
Newmont USA | ||||||
Loss contingencies | ||||||
Percent ownership held by Newmont | 100.00% | 100.00% | ||||
Dawn Mining Company | ||||||
Loss contingencies | ||||||
Percent ownership held by Newmont | 51.00% | |||||
Dawn Mining Company | Environmental remediation | Midnite Mine | ||||||
Loss contingencies | ||||||
Department of Interior contribution for past and future cleanup costs | $ 42 | |||||
Environmental remediation obligations | $ 200 |
COMMITMENTS AND CONTINGENCIE102
COMMITMENTS AND CONTINGENCIES - Other Legal Matters (Details) $ in Millions | 1 Months Ended | ||||||
Apr. 30, 2008plaintiff | May 31, 2002plaintiff | Aug. 31, 2000PEN | Aug. 31, 2000USD ($) | Jun. 30, 2000communitykg | Mar. 31, 2017plaintiff | Dec. 31, 2011complaint | |
Newmont Mining Corporation | Minera Yanacocha S.R.L. | |||||||
Loss contingencies | |||||||
Newmont equity interest ownership (as a percent) | 51.35% | ||||||
Minera Yanacocha S.R.L. | South America | Choropampa | |||||||
Loss contingencies | |||||||
Elemental mercury spilled (in kilograms) | kg | 151 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Choropampa | |||||||
Loss contingencies | |||||||
Fine paid under protest for spill of elementary mercury | PEN 1,740,000 | $ 0.5 | |||||
Number of communities impacted by incident | community | 3 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Choropampa | |||||||
Loss contingencies | |||||||
Remaining plaintiffs in the Yanacocha matters | 200 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Settled Litigation | Minimum | Choropampa | |||||||
Loss contingencies | |||||||
Loss contingency number of plaintiffs | 900 | ||||||
Number of settlement agreements entered into by Yanacocha | 350 | ||||||
Minera Yanacocha S.R.L. | South America | Environmental remediation | Cajamarca, Peru local courts | Pending Litigation | Choropampa | |||||||
Loss contingencies | |||||||
Number of complaints to nullify settlements | complaint | 23 |
COMMITMENTS AND CONTINGENCIE103
COMMITMENTS AND CONTINGENCIES - Administrative Matters (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2015USD ($)judgment | Mar. 31, 2017USD ($)item$ / item | Dec. 31, 2000USD ($) | |
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | |||
Loss contingencies | |||
Intangible asset acquired | $ | $ 29 | ||
Number of rulings overturned | judgment | 2 | ||
Unfavorable Tax Ruling | Yanacocha Tax Dispute | Buenaventura and Minas Conga | Contractual right to conduct exploration | Maximum | |||
Loss contingencies | |||
Intangible asset, useful life | 10 years | ||
Potential liability, including fines and interest | $ | $ 75 | ||
South America | Minera Yanacocha S.R.L. | OEFA | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
South America | Minera Yanacocha S.R.L. | OEFA | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 81,605 | ||
South America | Minera Yanacocha S.R.L. | Water Authority | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
South America | Minera Yanacocha S.R.L. | Water Authority | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 30,000 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | |||
Loss contingencies | |||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.00122 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | Minimum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 0 | ||
South America | Minera Yanacocha S.R.L. | Environmental remediation | Maximum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 137 |
COMMITMENTS AND CONTINGENCIE104
COMMITMENTS AND CONTINGENCIES - NWG Investments Inc v. Fronteer Gold Inc. (Details) $ in Millions, CAD in Billions | Feb. 26, 2014CAD | Sep. 24, 2012USD ($) | Apr. 08, 2008 | Sep. 30, 2007 |
North America | Pending Litigation | ||||
Loss contingencies | ||||
Uranium mining moratorium term | 3 years | |||
NWG Investments Inc. | NewWest Gold | ||||
Loss contingencies | ||||
Other company ownership percentage in affiliate | 86.00% | |||
NWG Investments Inc. | NWG Ontario Complaint | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | CAD | CAD 1.2 | |||
NWG Investments Inc. | North America | NWG New York Case | Pending Litigation | ||||
Loss contingencies | ||||
Damages sought | $ | $ 750 | |||
NWG Investments Inc. | Jacob Safra | ||||
Loss contingencies | ||||
Ownership interest held by majority shareholder of parent of acquiree entity | 100.00% | |||
Fronteer | Aurora | ||||
Loss contingencies | ||||
Ownership interest in Aurora Energy Resources Inc. held by Fronteer | 47.00% |
COMMITMENTS AND CONTINGENCIE105
COMMITMENTS AND CONTINGENCIES - Investigations (Details) | 1 Months Ended |
Mar. 31, 2016 | |
Compliance Review Investigations | |
Investigations | |
Agreement term | 1 year |
COMMITMENTS AND CONTINGENCIE106
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) $ in Millions | Jun. 25, 2009USD ($)$ / oz | Mar. 31, 2017USD ($)location | Mar. 31, 2016USD ($) | Jun. 30, 2010 | Dec. 31, 2016USD ($) |
Corporate and other | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Number of mines subject to minimum royalty obligations | location | 1 | ||||
Remainder of 2016 | $ 30 | ||||
2,018 | 30 | ||||
2,019 | 31 | ||||
2,020 | 33 | ||||
2,021 | 34 | ||||
Thereafter | 35 | ||||
Boddington | |||||
Minimum Royalty Obligations | |||||
2,017 | 4 | ||||
Boddington final interest acquired | 33.33% | ||||
Acquisition price | $ 982 | ||||
Boddington contingent consideration liability | $ 62 | 13 | $ 14 | ||
Percentage of average operating margin | 50.00% | ||||
Operating margin per ounce (in dollars per ounce) | $ / oz | 600 | ||||
Contingent consideration payable as a percentage of gold sales | 33.30% | ||||
Contingent consideration paid to date | 80 | ||||
Contingent consideration cash paid | 2 | $ 0 | |||
Contingent consideration expected to be paid in next 12 months | 4 | ||||
Contingent consideration range low | 0 | ||||
Contingent consideration, high end of range | 20 | ||||
Maximum | Boddington | |||||
Minimum Royalty Obligations | |||||
Boddington contingent consideration liability | $ 100 | $ 100 |
COMMITMENTS AND CONTINGENCIE107
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Corporate and other | ||
Other commitments | ||
Letters of credit surety bonds and bank guarantees, outstanding | $ 2,234 | $ 2,227 |