Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 19, 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 | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 533,336,470 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Sales | $ 1,879 | $ 1,791 | $ 5,413 | $ 4,922 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 1,053 | 983 | 2,985 | 2,736 |
Depreciation and amortization | 327 | 335 | 928 | 892 | |
Reclamation and remediation (Note 5) | 29 | 25 | 103 | 67 | |
Exploration | 48 | 39 | 135 | 107 | |
Advanced projects, research and development | 41 | 34 | 99 | 105 | |
General and administrative | 58 | 63 | 171 | 178 | |
Other expense, net (Note 6) | 1 | 21 | 32 | 54 | |
Total costs and expenses | 1,557 | 1,500 | 4,453 | 4,139 | |
Other income (expense): | |||||
Other income, net (Note 7) | 10 | (4) | 32 | 93 | |
Interest expense, net | (56) | (64) | (187) | (204) | |
Total other income (expense) | (46) | (68) | (155) | (111) | |
Income (loss) before income and mining tax and other items | 276 | 223 | 805 | 672 | |
Income and mining tax benefit (expense) (Note 8) | (72) | (90) | (349) | (555) | |
Equity income (loss) of affiliates | 1 | 2 | (4) | (8) | |
Net income (loss) from continuing operations | 205 | 135 | 452 | 109 | |
Net income (loss) from discontinued operations, net of tax (Note 3) | (7) | (448) | (45) | (225) | |
Net income (loss) | 198 | (313) | 407 | (116) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations (Note 9) | 8 | 34 | 22 | 62 | |
Discontinued operations (Note 3) | (79) | (229) | |||
Net loss (income) attributable to noncontrolling interests, net of tax | 8 | (45) | 22 | (167) | |
Net income (loss) attributable to Newmont stockholders | 206 | (358) | 429 | (283) | |
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 213 | 169 | 474 | 171 | |
Discontinued operations | (7) | (527) | (45) | (454) | |
Net income (loss) attributable to Newmont stockholders | $ 206 | $ (358) | $ 429 | $ (283) | |
Net income (loss) per common share, Basic (Note 10) | |||||
Continuing operations (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.88 | $ 0.32 | |
Discontinued operations (in dollars per share) | (0.01) | (0.99) | (0.08) | (0.85) | |
Income (loss) per common share, basic | 0.38 | (0.67) | 0.80 | (0.53) | |
Net income (loss) per common share, Diluted (Note 10) | |||||
Continuing operations (in dollars per share) | 0.39 | 0.32 | 0.88 | 0.32 | |
Discontinued operations (in dollars per share) | (0.01) | (0.99) | (0.08) | (0.85) | |
Income (loss) per common share, diluted | 0.38 | (0.67) | 0.80 | (0.53) | |
Cash dividends declared per common share | $ 0.075 | $ 0.025 | $ 0.175 | $ 0.075 | |
[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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 198 | $ (313) | $ 407 | $ (116) |
Other comprehensive income (loss): | ||||
Change in marketable securities, net of $-, $-, $- and $- tax benefit (expense), respectively | 5 | 19 | (6) | (37) |
Foreign currency translation adjustments | 8 | 3 | 12 | 10 |
Change in pension and other post-retirement benefits, net of $(2), $(1), $(7) and $(3), tax benefit (expense), respectively | 4 | 1 | 13 | 8 |
Change in fair value of cash flow hedge instruments, net of $(4), $(4), $(11) and $(19) tax benefit (expense), respectively | 9 | 16 | 23 | 51 |
Other comprehensive income (loss) | 26 | 39 | 42 | 32 |
Comprehensive income (loss) | 224 | (274) | 449 | (84) |
Comprehensive income (loss) attributable to: | ||||
Newmont stockholders | 232 | (319) | 471 | (251) |
Noncontrolling interests | (8) | 45 | (22) | 167 |
Comprehensive income (loss) | $ 224 | $ (274) | $ 449 | $ (84) |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gain (loss) on marketable securities, tax benefit (expense) | ||||
Change in pension and other post-retirement benefits, tax benefit (expense) | (2) | (1) | (7) | (3) |
Change in fair value of cash flow hedge instruments, tax benefit (expense) | $ (4) | $ (4) | $ (11) | $ (19) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net income (loss) | $ 407 | $ (116) |
Adjustments: | ||
Depreciation and amortization | 928 | 892 |
Stock-based compensation (Note 12) | 53 | 54 |
Reclamation and remediation | 97 | 60 |
Loss (income) from discontinued operations (Note 3) | 45 | 225 |
Deferred income taxes | 97 | 456 |
Gain on asset and investment sales, net | (21) | (109) |
Write-downs of inventory and stockpiles and ore on leach pads | 158 | 207 |
Other operating adjustments | 74 | 90 |
Net change in operating assets and liabilities (Note 22) | (242) | (426) |
Net cash provided by (used in) operating activities of continuing operations | 1,596 | 1,333 |
Net cash provided by (used in) operating activities of discontinued operations (1) | (12) | 826 |
Net cash provided by (used in) operating activities | 1,584 | 2,159 |
Investing activities: | ||
Additions to property, plant and mine development | (557) | (832) |
Purchases of investments | (113) | |
Proceeds from sales of investments | 34 | 184 |
Other | 9 | (13) |
Net cash provided by (used in) investing activities of continuing operations | (627) | (661) |
Net cash provided by (used in) investing activities of discontinued operations | (41) | |
Net cash provided by (used in) investing activities | (627) | (702) |
Financing activities: | ||
Repayment of debt | (579) | (777) |
Distributions to noncontrolling interests | (119) | |
Dividends paid to common stockholders | (94) | (41) |
Funding from noncontrolling interests | 70 | 58 |
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) |
Dividends paid to noncontrolling interests | (146) | |
Acquisition of noncontrolling interests | (19) | |
Other | (13) | (1) |
Net cash provided by (used in) financing activities of continuing operations | (748) | (932) |
Net cash provided by (used in) financing activities of discontinued operations | (319) | |
Net cash provided by (used in) financing activities | (748) | (1,251) |
Effect of exchange rate changes on cash | 4 | 4 |
Net change in cash and cash equivalents | 213 | 210 |
Less net cash provided by (used in) Batu Hijau discontinued operations | 474 | |
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 213 | (264) |
Cash and cash equivalents at beginning of period | 2,756 | 2,363 |
Cash and cash equivalents at end of period | 2,969 | 2,099 |
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) | 45 | 72 |
Net cash provided by (used in) operating activities of discontinued operations (1) | $ (9) | $ (8) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 2,969 | $ 2,756 |
Trade receivables | 131 | 160 |
Other accounts receivables | 116 | 183 |
Investments (Note 15) | 76 | 56 |
Inventories (Note 16) | 692 | 617 |
Stockpiles and ore on leach pads (Note 17) | 714 | 763 |
Other current assets | 110 | 142 |
Current assets | 4,808 | 4,677 |
Property, plant and mine development, net | 12,173 | 12,485 |
Investments (Note 15) | 292 | 227 |
Stockpiles and ore on leach pads (Note 17) | 1,796 | 1,864 |
Deferred income tax assets | 1,288 | 1,331 |
Other non-current assets | 479 | 447 |
Total assets | 20,836 | 21,031 |
LIABILITIES | ||
Debt (Note 18) | 4 | 566 |
Accounts payable | 315 | 320 |
Employee-related benefits | 258 | 304 |
Income and mining taxes payable | 195 | 153 |
Other current liabilities (Note 19) | 378 | 407 |
Current liabilities | 1,150 | 1,750 |
Debt (Note 18) | 4,046 | 4,049 |
Reclamation and remediation liabilities (Note 5) | 2,066 | 2,029 |
Deferred income tax liabilities | 606 | 592 |
Employee-related benefits | 380 | 411 |
Other non-current liabilities (Note 19) | 357 | 326 |
Total liabilities | 8,605 | 9,157 |
EQUITY | ||
Common stock | 853 | 849 |
Additional paid-in capital | 9,526 | 9,490 |
Accumulated other comprehensive income (loss) (Note 21) | (292) | (334) |
Retained earnings | 1,051 | 716 |
Newmont stockholders' equity | 11,138 | 10,721 |
Noncontrolling interests | 1,093 | 1,153 |
Total equity | 12,231 | 11,874 |
Total liabilities and equity | $ 20,836 | $ 21,031 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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. The Company has reclassified $33 from Other accounts receivables to Trade receivables as of December 31, 2016 to conform to the 2017 presentation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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 Inventory In July 2015, Accounting Standard Update (“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. 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 $(6) 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 nine months ended September 30, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Business Combinations In 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. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Goodwill In 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. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements 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, December 2016, and September 2017 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12, No. 2016-20 and No. 2017-13, respectively. The new guidance 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 has performed an assessment of the revised guidance and the impacts on the Company’s Consolidated Financial Statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance will primarily impact the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Currently, revenue is recognized for these contracts based on varying contractual terms indicating when risk of loss and title have transferred to the buyer. Upon adoption, revenue related to concentrate sales will typically be recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligations. The Company is finalizing the assessment and quantifying the impacts of changes on certain concentrate contracts. The Company completed its evaluation of variable consideration for concentrate sales related to the variable nature of the price and metal quantity. Based on our current analysis, the estimate of revenue recognized for concentrates will remain unchanged as sales will initially be recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities delivered based on weighing and assay data. The Company believes changes in the underlying weight and metal content are not significant to the sale as a whole and therefore do not preclude the recognition of revenue upon transfer of control. The Company’s provisional gold and copper concentrate sales will continue to 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. The Company will adopt the new guidance 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 guidance retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. Under this approach, results for reporting periods beginning after January 1, 2018, will be presented in the Consolidated Financial Statements under the new guidance, while prior period amounts will not be adjusted and continue to be reported under the guidance in effect for those periods. In the related disclosures, results for reporting periods beginning after January 1, 2018, will be presented under prior guidance along with prior period amounts for comparative purposes. Expanded disclosures will also include gold revenue from doré production, gold and copper revenue from concentrate sales and copper revenue from cathode sales, as well as information pertaining to receivable balances, and revenue recognized in the current reporting period related to changes in price and metal quantity from performance obligations satisfied in previous periods, if material. 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 upon adoption, an entity should apply the amendments with the cumulative effect of initially applying the guidance recognized at January 1, 2018 . Early adoption is not permitted. The Company expects the updated guidance to result in a reclassification of unrealized holding gains and losses and deferred income taxes related to investments in marketable equity securities from Accumulated other comprehensive income (loss) to Retained earnings in the Consolidated Balance Sheets upon adoption. Accumulated other comprehensive income (loss) at September 30, 2017 included $(107) of unrealized holding gains and losses and deferred income taxes related to marketable equity securities. Leases In February 2016, ASU No. 2016-02 was issued related to leases, which was further amended in September 2017 by ASU No. 2017-13. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. The Company has begun its assessment of the new guidance and the impact it will have on the Consolidated Financial Statements and disclosures and expects to complete its analysis in 2018. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting the new guidance effective January 1, 2019. 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 has evaluated this guidance and does not expect it to have a material impact on the Consolidated Financial Statements and disclosures. The Company anticipates retrospectively adopting the new guidance effective December 31, 2017. 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 does not expect this guidance to have an impact on the Consolidated Financial Statements or disclosures. The Company anticipates adopting the new guidance effective January 1, 2018. 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 within financing activities, on the Consolidated Statements of 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 Consolidated Statements of Cash Flows. The Company anticipates retrospectively adopting this new guidance effective December 31, 2017, and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. 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 recognition of other components of net benefit costs within Other income, net rather than Costs and expenses 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 or disclosures. Hedging I n August 2017, ASU No. 2017-12 was issued related to hedge accounting. The new guidance expands the ability to hedge nonfinancial risk components, eliminates the current requirement to separately measure and report hedge ineffectiveness, and requires the entire change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item, when reclassified from Accumulated other comprehensive income (loss) . The guidance also eases certain hedge effectiveness documentation and assessment requirements. 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 when to adopt this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Holt royalty obligation $ (7) $ (19) $ (45) $ (72) Batu Hijau operations — 148 — 424 Loss on classification as held for sale — (577) — (577) Net income (loss) from discontinued operations $ (7) $ (448) $ (45) $ (225) 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 September 30, 2017 and December 31, 2016, the estimated fair value of the Holt royalty obligation was $248 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 and nine months ended September 30, 2017, the Company recorded a gain (loss) of $(7) and $(45), net of a tax benefit (expense) of $4 and $25, respectively. During the three and nine months ended September 30, 2016, the Company recorded a gain (loss) of $(19) and $(72), net of tax benefit (expense) of $9 and $32, respectively. During the nine months ended September 30, 2017 and 2016, the Company paid $9 and $8, respectively, related to the Holt royalty obligation. Refer to Note 13 for additional information on the Holt royalty obligation. 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). As of September 30, 2016, the Company classified PTNNT as held for sale. As a result, and in accordance with ASC 360, the Company compared the estimated fair value of the PTNNT disposal group to its carrying value and determined that the carrying value exceeded the fair value. Consequently, the Company recorded a charge to Loss on classification as held for sale of $577 for the quarter ended September 30, 2016. 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 Nine Months Ended September 30, 2016 September 30, 2016 Sales $ 469 $ 1,408 Costs and expenses: Costs applicable to sales (1) 184 571 Depreciation and amortization 36 115 Reclamation and remediation 4 13 Advanced projects, research and development 1 2 General and administrative 2 8 Other expense (income), net (1) 2 226 711 Interest expense, net (5) (15) Income (loss) before income and mining tax and other items 238 682 Income and mining tax benefit (expense) (90) (258) Net income (loss) from discontinued operations 148 424 Loss on classification of assets held for sale, net of tax (577) (577) (429) (153) Net loss (income) attributable to noncontrolling interests (79) (229) Net income (loss) from discontinued operations attributable to Newmont stockholders $ (508) $ (382) (1) Excludes Depreciation and amortization and Reclamation and remediation. The 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: Nine Months Ended September 30, 2016 Net cash provided by (used in) operating activities $ 834 Net cash provided by (used in) investing activities (41) Net cash provided by (used in) financing activities (319) Net cash provided by (used in) Batu Hijau discontinued operations $ 474 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 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. In the first quarter of 2017, the Company renamed its Asia Pacific reporting segment to Australia. Segment results for the prior period have been retrospectively revised to reflect this change. 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 September 30, 2017 Carlin $ 330 $ 216 $ 60 $ 6 $ 46 $ 32 Phoenix: Gold 68 48 13 Copper 21 11 3 Total Phoenix 89 59 16 1 8 4 Twin Creeks 103 59 16 3 25 16 Long Canyon 70 17 24 6 22 1 CC&V 140 75 35 2 29 9 Other North America — — — 10 (10) 1 North America 732 426 151 28 120 63 Yanacocha 176 150 38 11 (38) 12 Merian 162 62 22 3 75 29 Other South America — — 3 12 (18) — South America 338 212 63 26 19 41 Boddington: Gold 236 130 26 Copper 59 25 5 Total Boddington 295 155 31 1 105 17 Tanami 148 72 17 7 50 25 Kalgoorlie 121 64 5 3 47 5 Other Australia — — 2 2 (10) — Australia 564 291 55 13 192 47 Ahafo 100 57 14 6 21 51 Akyem 145 67 40 3 35 5 Other Africa — — — — (3) — Africa 245 124 54 9 53 56 Corporate and Other — — 4 13 (108) 1 Consolidated $ 1,879 $ 1,053 $ 327 $ 89 $ 276 $ 208 (1) Includes an increase in accrued capital expenditures of $14; consolidated capital expenditures on a cash basis were $194. 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 September 30, 2016 Carlin $ 362 $ 212 $ 51 $ 7 $ 91 $ 37 Phoenix: Gold 61 30 10 Copper 20 32 8 Total Phoenix 81 62 18 — (2) 8 Twin Creeks 129 52 10 2 64 9 Long Canyon — — — 4 (4) 28 CC&V 152 65 32 3 50 13 Other North America — — 1 3 2 1 North America 724 391 112 19 201 96 Yanacocha 195 148 92 6 (66) 26 Merian — — — 7 (8) 60 Other South America — — 3 8 (13) — South America 195 148 95 21 (87) 86 Boddington: Gold 287 139 30 Copper 43 33 6 Total Boddington 330 172 36 — 106 17 Tanami 151 57 20 4 70 36 Kalgoorlie 120 57 5 1 56 5 Other Australia — — 1 2 (13) — Australia 601 286 62 7 219 58 Ahafo 115 95 30 8 (20) 22 Akyem 156 63 32 4 56 5 Other Africa — — 1 1 (3) — Africa 271 158 63 13 33 27 Corporate and Other — — 3 13 (143) 2 Consolidated $ 1,791 $ 983 $ 335 $ 73 $ 223 $ 269 (1) There was no change to accrued capital expenditures; consolidated capital expenditures on a cash basis were $269. 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) Nine Months Ended September 30, 2017 Carlin $ 862 $ 579 $ 156 $ 14 $ 106 $ 128 Phoenix: Gold 188 137 36 Copper 71 45 12 Total Phoenix 259 182 48 5 15 14 Twin Creeks 352 167 46 7 128 33 Long Canyon 166 42 55 16 52 8 CC&V 452 219 97 9 125 17 Other North America — — 1 17 (20) 4 North America 2,091 1,189 403 68 406 204 Yanacocha 504 403 108 23 (90) 32 Merian 445 174 69 11 189 67 Other South America — — 10 31 (53) — South America 949 577 187 65 46 99 Boddington: Gold 726 399 81 Copper 156 74 15 Total Boddington 882 473 96 2 287 46 Tanami 363 180 48 16 125 77 Kalgoorlie 338 171 14 6 142 13 Other Australia — — 5 5 (30) 3 Australia 1,583 824 163 29 524 139 Ahafo 326 193 52 22 55 104 Akyem 464 202 114 9 135 17 Other Africa — — — 2 (8) — Africa 790 395 166 33 182 121 Corporate and Other — — 9 39 (353) 5 Consolidated $ 5,413 $ 2,985 $ 928 $ 234 $ 805 $ 568 (1) Includes an increase in accrued capital expenditures of $11; consolidated capital expenditures on a cash basis were $557. 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) Nine Months Ended September 30, 2016 Carlin $ 864 $ 585 $ 143 $ 14 $ 115 $ 116 Phoenix: Gold 187 118 37 Copper 63 76 20 Total Phoenix 250 194 57 1 (10) 15 Twin Creeks 432 170 36 6 217 29 Long Canyon — — — 17 (17) 101 CC&V 361 156 78 7 115 49 Other North America — — 1 9 (7) 3 North America 1,907 1,105 315 54 413 313 Yanacocha 600 396 220 26 (96) 64 Merian — — 1 21 (22) 202 Other South America — — 10 24 (38) — South America 600 396 231 71 (156) 266 Boddington: Gold 741 391 82 Copper 108 89 17 Total Boddington 849 480 99 — 245 40 Tanami 450 180 62 10 197 93 Kalgoorlie 348 189 14 4 138 13 Other Australia — — 7 5 (28) — Australia 1,647 849 182 19 552 146 Ahafo 331 212 62 20 30 61 Akyem 437 174 93 8 158 15 Other Africa — — 1 2 (7) — Africa 768 386 156 30 181 76 Corporate and Other — — 8 38 (318) 6 Consolidated $ 4,922 $ 2,736 $ 892 $ 212 $ 672 $ 807 (1) Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $832. |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 9 Months Ended |
Sep. 30, 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 completed 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 updated closure plan was submitted to the Peruvian regulators and their review is expected to be completed in early 2018. The Company’s Reclamation and remediation expense consisted of: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Reclamation $ — $ — $ 15 $ — Reclamation accretion 25 19 75 57 25 19 90 57 Remediation 3 5 9 7 Remediation accretion 1 1 4 3 4 6 13 10 $ 29 $ 25 $ 103 $ 67 Reclamation expense increased by $6 and increased by $33 during the three and nine months ended September 30, 2017, respectively, compared to the same periods in 2016, primarily due to updated reclamation liability assumptions at Yanacocha regarding water treatment costs on non-operating leach pads during the second quarter of 2017 and higher reclamation accretion from an increase in Reclamation and remediation liabilities associated with revisions to Yanacocha’s long-term mining and closure plans in December 2016. 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 16 6 Payments and other (20) (14) Accretion expense 75 57 Reclamation balance at September 30, $ 1,863 $ 1,349 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 3 — Payments and other (33) (21) Accretion expense 4 3 Remediation balance at September 30, $ 272 $ 300 The current portion of reclamation liabilities was $37 and $28 at September 30, 2017 and December 31, 2016, respectively, and was included in Other current liabilities . The current portion of remediation liabilities was $32 and $33 at September 30, 2017 and December 31, 2016, respectively, and was included in Other current liabilities . At September 30, 2017 and December 31, 2016, $1,863 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 September 30, 2017 and December 31, 2016, $272 and $298, respectively, were accrued for such environmental remediation obligations. Non-current restricted assets held for purposes of settling reclamation and remediation obligations were $76 and $66 at September 30, 2017 and December 31, 2016, respectively. Of the amounts at September 30, 2017, $43 was related to the Midnite Mine in Washington State, $25 was related to the Ahafo and Akyem mines in Ghana, Africa and $8 was related to the Con mine in Yellowknife, NWT, Canada. Of the amount at December 31, 2016, $43 was related to the Midnite Mine, $14 was related to the Ahafo and Akyem mines and $9 was related to the Con mine. Included in Investments at September 30, 2017 and December 31, 2016, was $23 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 | 9 Months Ended |
Sep. 30, 2017 | |
OTHER EXPENSE, NET | |
OTHER EXPENSE, NET | NOTE 6 OTHER EXPENSE, NET Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Restructuring and other $ 2 $ 7 $ 10 $ 26 Impairment of long-lived assets — — 3 4 Acquisition cost adjustments (3) 9 2 11 Other 2 5 17 13 $ 1 $ 21 $ 32 $ 54 |
OTHER INCOME, NET
OTHER INCOME, NET | 9 Months Ended |
Sep. 30, 2017 | |
OTHER INCOME, NET. | |
OTHER INCOME, NET | NOTE 7 OTHER INCOME, NET Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Foreign currency exchange, net $ (9) $ (9) $ (30) $ (29) Gain on asset and investment sales, net 5 5 21 109 Tanami insurance proceeds — — 13 — Interest 9 2 19 7 Other 5 (2) 9 6 $ 10 $ (4) $ 32 $ 93 Foreign currency exchange, net. Although the majority of the Company’s balances are denominated in U.S. dollars, foreign currency exchange gains (losses) are recognized on balances denominated in local currencies. These balances primarily relate to the timing of payments for employee-related benefits and other current liabilities in Australia, Peru and Suriname. Gain on asset and investment sales, net. In June 2017, the Company exchanged its interest in the Fort á la Corne joint venture for equity ownership in Shore Gold Inc. (“Shore Gold”), resulting in a pre-tax gain of $15. For additional information regarding this transaction, see Note 15. 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. Tanami insurance proceeds. In June 2017, the Company recorded business interruption insurance proceeds of $13 associated with the heavy rainfall at Tanami during the first quarter of 2017. |
INCOME AND MINING TAXES
INCOME AND MINING TAXES | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Income (loss) before income and mining tax and other items $ 276 $ 223 $ 805 $ 672 Tax at statutory rate % $ 97 35 % $ 78 35 % $ 282 35 % $ 235 Reconciling items: Percentage depletion 3 10 (5) (11) (8) (64) (7) (47) Change in valuation allowance on deferred tax assets (14) (39) (2) (5) 12 100 49 330 Mining and other taxes — (1) 6 13 4 34 6 41 U.S. tax effect of noncontrolling interest attributable to non-U.S. investees 2 5 4 10 1 5 3 20 Tax impact on sale of assets (1) (2) — — (1) (7) (5) (35) Other 1 2 2 5 — (1) 2 11 Income and mining tax expense 26 % $ 72 40 % $ 90 43 % $ 349 83 % $ 555 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 of 2016. The Company intends to vigorously defend its position through all processes available. The Australian Taxation Office (“ATO”) is conducting a limited review of the Company’s prior years tax returns. The ATO is focused on reviewing an internal reorganization executed in 2011 when Newmont completed a restructure of the shareholding in the Company’s Australian subsidiaries. To date, the Company has responded to inquiries from the ATO and provided them with supporting documentation for the transaction and the Company’s associated tax positions. One aspect of the ATO review relates to an Australian capital gains tax that applies to sales or transfers of stock in certain types of entities. In the third quarter of 2017, the ATO notified the Company that it believes the 2011 reorganization is subject to capital gains tax of approximately $65 to $85 (before interest and penalties). The Company disputes this conclusion and intends to vigorously defend its position that the transaction is not subject to this tax. The Company continues to monitor the status of the ATO’s review which it expects to continue throughout the remainder of this year and into the following year. 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 $10 to $15 in the next 12 months. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Yanacocha $ (25) $ (32) $ (64) $ (56) Merian 17 (2) 43 (6) Other — — (1) — $ (8) $ (34) $ (22) $ (62) 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. At September 30, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 41 $ 50 Inventories 69 57 Stockpiles and ore on leach pads 18 23 Other current assets (1) 42 37 170 167 Non-current assets: Property, plant and mine development, net 747 746 Other non-current assets (2) 7 8 Total assets $ 924 $ 921 Current liabilities: Other current liabilities (3) $ 47 $ 43 47 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 59 $ 54 (1) Other current assets include trade and 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 accounts payable, employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 213 $ 169 $ 474 $ 171 Discontinued operations (7) (527) (45) (454) $ 206 $ (358) $ 429 $ (283) Weighted average common shares (millions): Basic 533 531 533 530 Effect of employee stock-based awards 3 2 1 2 Diluted 536 533 534 532 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.39 $ 0.32 $ 0.88 $ 0.32 Discontinued operations (0.01) (0.99) (0.08) (0.85) $ 0.38 $ (0.67) $ 0.80 $ (0.53) Diluted: Continuing operations $ 0.39 $ 0.32 $ 0.88 $ 0.32 Discontinued operations (0.01) (0.99) (0.08) (0.85) $ 0.38 $ (0.67) $ 0.80 $ (0.53) Employee stock options to purchase 1 million and 2 million shares of common stock at weighted average exercise prices of $51.76 and $51.00 were outstanding at September 30, 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. |
EMPLOYEE PENSION AND OTHER BENE
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 11 EMPLOYEE PENSION AND OTHER BENEFIT PLANS Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pension benefit costs, net: Service cost $ 7 $ 6 $ 22 $ 21 Interest cost 11 11 33 34 Expected return on plan assets (15) (14) (46) (43) Amortization, net 7 6 21 18 Settlements 1 4 5 4 $ 11 $ 13 $ 35 $ 34 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Other benefit costs, net: Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 3 3 Amortization, net (1) (1) (5) (4) $ — $ — $ (1) $ — |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 STOCK-BASED COMPENSATION Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation: Performance leveraged stock units $ 9 $ 9 $ 26 $ 28 Restricted stock units 9 7 26 22 Strategic stock units — 1 1 4 $ 18 $ 17 $ 53 $ 54 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 9 Months Ended |
Sep. 30, 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 September 30, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,969 $ 2,969 $ — $ — Restricted assets 77 77 — — Diesel forward contracts 3 — 3 — Marketable equity securities: Extractive industries 170 170 — — Other 22 22 — — Trade receivable from provisional copper and gold concentrate sales, net 83 83 — — Batu Hijau contingent consideration 13 — — 13 $ 3,337 $ 3,321 $ 3 $ 13 Liabilities: Debt (1) $ 4,612 $ — $ 4,612 $ — Foreign exchange forward contracts 4 — 4 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 248 — — 248 $ 4,877 $ — $ 4,616 $ 261 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 gold concentrate sales, net 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 $4,038 and $4,599 at September 30, 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 and marketable securities, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Restricted 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 $87 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 September 30, 2017 and December 31, 2016: At September 30, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.88 Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 3.10 % Short-term gold price $ 1,278 Long-term gold price $ 1,300 Short-term copper price $ 2.88 Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 248 Monte Carlo Discount rate 2.99 % Short-term gold price $ 1,278 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 420 - 1,797 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) (9) (9) (18) Revaluation — — — 8 70 78 Fair value at September 30, 2017 $ — $ 13 $ 13 $ 13 $ 248 $ 261 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 — — — — (8) (8) Revaluation — 2 2 11 104 115 Fair value at September 30, 2016 $ 7 $ 20 $ 27 $ 21 $ 225 $ 246 (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 | 9 Months Ended |
Sep. 30, 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 September 30, 2017: Expected Maturity Date 2017 2018 Total/Average A$ Operating Fixed Forward Contracts: A$ notional (millions) 24 6 30 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 5 % Newmont utilizes foreign currency contracts to reduce the variability of the U.S. dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. The A$ hedges run through the first quarter of 2018. Diesel Fixed Forward Contracts The Company had the following diesel derivative contracts in Nevada, within North America, outstanding at September 30, 2017: Expected Maturity Date 2017 2018 2019 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 6 14 1 21 Average rate ($/gallon) 1.59 1.60 1.61 1.60 Expected hedge ratio 69 % 38 % 7 % Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the first quarter of 2019. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at September 30, 2017 and December 31, 2016: Fair Values of Derivative Instruments At September 30, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 4 $ — Diesel fixed forwards 3 — — — $ 3 $ — $ 4 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — $ 4 $ — $ 27 $ 1 As of September 30, 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 September 30, 2017 and December 31, 2016, the potential effect of netting derivative assets against liabilities due to the master netting agreement was not significant. The following tables show 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 September 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 1 $ 4 $ 5 $ — $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (5) $ (9) $ — $ (4) $ (2) $ (3) For the nine months ended September 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 5 $ 8 $ (1) $ 5 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (20) $ (29) $ (3) $ (18) $ (7) $ (11) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Costs applicable to sales and Interest expense, net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, net . Over the next 12 months, the Company expects to reclassify from Accumulated other comprehensive income (loss) to income a loss of approximately $10, net of tax, related to unrealized hedge losses. 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 September 30, 2017 and December 31, 2016. There was no change in the value of the contingent consideration during the three or nine months ended September 30, 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 September 30, 2017, Newmont had gold and copper sales of 75,000 ounces and 20 million pounds priced at an average of $1,285 per ounce and $2.96 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2017 | |
INVESTMENTS | |
INVESTMENTS | NOTE 15 INVESTMENTS At September 30, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 39 $ 44 $ (7) $ 76 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (19) $ 90 Other marketable equity securities 23 3 — 26 132 3 (19) 116 Other investments, at cost 7 — — 7 Equity method investments: TMAC Resources Inc. (28.80%) 109 — — 109 Minera La Zanja S.R.L. (46.94%) 56 — — 56 Euronimba Ltd. (43.50%) 4 — — 4 169 — — 169 $ 308 $ 3 $ (19) $ 292 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 Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 During the third quarter of 2017, Newmont sold approximately two-thirds of its interest in Novo Resources Corp. for $15, resulting in a pre-tax gain of $5 recorded in Other income, net . Newmont continues to hold approximately 6 million common shares of Novo Resources Corp. The cost of the investment sold was determined using the specific identification method. In June 2017, Newmont exchanged its 31% interest in the Fort á la Corne joint venture in consideration for 54 million common shares and 1 million common share warrants in Shore Gold, valued at $15. Following the transaction, Newmont held a 19.9% equity ownership in Shore Gold. This investment has been classified as current. In May 2017, Newmont purchased 37 million common shares of Continental Gold Inc. (“Continental”) at C$4.00 per share. Continental is developing the high-grade Buriticá gold project in Colombia. Total consideration paid by Newmont was $109 for a 19.9% equity ownership in Continental. In April 2017, Newmont purchased 13 million units (one common share and one warrant per unit) of Goldstrike Resources Ltd. (“Goldstrike”) at a price of C$0.47 per share for $4. The investment secures rights to explore and develop the Plateau property located in a highly prospective mineralized trend in Canada’s Yukon Territory with Goldstrike, with the ability to earn additional ownership in the project through exploration investment. This investment has been classified as non-current. In January 2017, the Company’s remaining 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 or significant changes in fair value on those available-for-sale securities previously impaired during the three and nine months ended September 30, 2017. D uring the three and nine months ended September 30, 2016, the Company recognized no investment impairments for other-than-temporary declines in value. During the three months ended September 30, 2016, there was a $7 increase in the fair value of available-for-sale securities previously impaired, primarily due to a $6 increase in Gabriel Resources Ltd. During the nine months ended September 30, 2016, there was a $ 30 increase in the fair value of available-for-sale securities previously impaired, primarily due to a $19 increase in Gabriel Resources Ltd and a $5 increase in Pilot Gold. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | |
INVENTORIES | |
INVENTORIES | NOTE 16 INVENTORIES At September 30, At December 31, 2017 2016 Materials and supplies $ 426 $ 391 In-process 128 130 Concentrate and copper cathode 92 67 Precious metals 46 29 $ 692 $ 617 |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 9 Months Ended |
Sep. 30, 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 September 30, At December 31, 2017 2016 Current: Stockpiles $ 374 $ 393 Ore on leach pads 340 370 $ 714 $ 763 Non-current: Stockpiles $ 1,468 $ 1,506 Ore on leach pads 328 358 $ 1,796 $ 1,864 At September 30, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 452 $ 421 Phoenix 70 80 Twin Creeks 337 328 Long Canyon 29 9 CC&V 309 369 Yanacocha 255 367 Merian 21 27 Boddington 414 394 Tanami 11 19 Kalgoorlie 125 113 Ahafo 405 386 Akyem 82 114 $ 2,510 $ 2,627 During the three and nine months ended September 30, 2017, the Company recorded write-downs of $60 and $146, respectively, classified as components of Costs applicable to sales, and write-downs of $23 and $54, respectively, classified as components of Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs during the three months ended September 30, 2017, $28 is related to Carlin, $16 to Twin Creeks , $28 to Yanacocha and $11 to Akyem. Of the write-downs during the nine months ended September 30, 2017, $62 is related to Carlin, $32 to Twin Creeks , $69 to Yanacocha, $18 to Ahafo and $19 to Akyem. During the three and nine months ended September 30, 2016, the Company recorded write-downs of $92 and $199, respectively, classified as components of Costs applicable to sales, and write-downs of $45 and $95, respectively, classified as components of Depreciation and amortization to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs during the three months ended September 30, 2016, $12 was related to Carlin, $1 to Twin Creeks, $77 to Yanacocha and $47 to Ahafo. Of the write-downs during the nine months ended September 30, 2016, $69 was related to Carlin, $14 to Twin Creeks, $164 to Yanacocha and $47 to Ahafo. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2017 | |
DEBT | |
DEBT | NOTE 18 DEBT Scheduled minimum debt repayments are $- for the remainder of 2017, $- in 2018, $626 in 2019, $- in 2020, $- in 2021 and $3,466 thereafter. Scheduled minimum capital lease repayments are $1 in 2017, $4 in 2018, $3 in 2019, $1 in 2020, $1 in 2021 and $2 thereafter. In May 2017, the Company amended its $3,000 Corporate Revolving Credit Facility to extend the facility to May 2022. In July 2017, the Company repaid the $575 outstanding aggregate principal amount of the 2017 Convertible Senior Notes at maturity. |
OTHER LIABILITIES
OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2017 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 19 OTHER LIABILITIES At September 30, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 109 $ 99 Reclamation and remediation liabilities 69 61 Accrued capital expenditures 63 53 Accrued interest 62 57 Royalties 34 52 Holt royalty obligation 14 13 Taxes other than income and mining 8 8 Boddington contingent consideration 6 3 Derivative instruments 4 27 Other 9 34 $ 378 $ 407 Other non-current liabilities: Holt royalty obligation $ 234 $ 174 Income and mining taxes 48 50 Power supply agreements 32 31 Social development obligations 24 25 Boddington contingent consideration 7 11 Other 12 35 $ 357 $ 326 |
CHANGES IN EQUITY
CHANGES IN EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
CHANGES IN EQUITY | |
CHANGES IN EQUITY | NOTE 20 CHANGES IN EQUITY Nine Months Ended September 30, 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 36 42 At end of period 9,526 9,469 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 42 32 At end of period (292) (302) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 429 (283) Dividends paid (94) (41) At end of period 1,051 1,086 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests (22) 167 Distributions declared to noncontrolling interests (1) (110) — Cash calls requested from noncontrolling interests (2) 72 63 Dividends paid to noncontrolling interests — (146) Acquisition of noncontrolling interests — (19) At end of period 1,093 3,007 Total equity $ 12,231 $ 14,109 (1) Distributions declared to noncontrolling interests of $110 for the nine months ended September 30, 2017 represent distributions declared to Staatsolie from Merian. The Company paid $119 in distributions during the nine months ended September 30, 2017 related to current and prior period distributions declared. (2) Cash calls requested from noncontrolling interests of $72 and $63 for the nine months ended September 30, 2017 and September 30, 2016, respectively, represent cash calls requested from Staatsolie, of which $70 and $58 had been paid as of September 30, 2017 and September 30, 2016. |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 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 Unrealized Gain Unrealized Gain Foreign Other (Loss) on (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 (1) 12 (1) 3 13 Reclassifications from accumulated other comprehensive income (loss) (5) — 14 20 29 Net current-period other comprehensive income (loss) (6) 12 13 23 42 Balance at September 30, 2017 $ (107) $ 130 $ (210) $ (105) $ (292) 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Marketable securities adjustments: Sale of marketable securities $ (5) $ — $ (5) $ (103) Other income, net Total before tax (5) — (5) (103) Tax benefit (expense) — — — — Net of tax $ (5) $ — $ (5) $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 5 $ 16 $ 14 (1) Settlements 1 4 5 4 Other expense, net Total before tax 7 9 21 18 Tax benefit (expense) (2) (3) (7) (6) Net of tax $ 5 $ 6 $ 14 $ 12 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 5 $ 13 $ 23 $ 47 Costs applicable to sales Operating cash flow hedges (ineffective portion) — — — (1) Other income, net Interest rate contracts 2 3 7 11 Interest expense, net Total before tax 7 16 30 57 Tax benefit (expense) (2) (4) (10) (17) Net of tax $ 5 $ 12 $ 20 $ 40 Total reclassifications for the period, net of tax $ 5 $ 18 $ 29 $ (51) (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 | 9 Months Ended |
Sep. 30, 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: Nine Months Ended September 30, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 77 $ 34 Inventories, stockpiles and ore on leach pads (162) (243) Other assets (11) (63) Increase (decrease) in operating liabilities: Accounts payable (8) (16) Reclamation and remediation liabilities (53) (35) Employee-related liabilities (81) (79) Other accrued liabilities (4) (24) $ (242) $ (426) |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 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 September 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 494 $ 1,385 $ — $ 1,879 Costs and expenses: Costs applicable to sales (1) — 318 735 — 1,053 Depreciation and amortization 1 94 232 — 327 Reclamation and remediation — 4 25 — 29 Exploration — 10 38 — 48 Advanced projects, research and development — 10 31 — 41 General and administrative — 18 40 — 58 Other expense, net — — 1 — 1 1 454 1,102 — 1,557 Other income (expense): Other income, net 11 2 (3) — 10 Interest income - intercompany 67 11 11 (89) — Interest expense - intercompany (11) — (78) 89 — Interest expense, net (51) (5) — — (56) 16 8 (70) — (46) Income (loss) before income and mining tax and other items 15 48 213 — 276 Income and mining tax benefit (expense) (5) (18) (49) — (72) Equity income (loss) of affiliates 196 (52) (3) (140) 1 Net income (loss) from continuing operations 206 (22) 161 (140) 205 Net income (loss) from discontinued operations — — (7) — (7) Net income (loss) 206 (22) 154 (140) 198 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 8 — 8 Discontinued operations — — — — — — — 8 — 8 Net income (loss) attributable to Newmont stockholders $ 206 $ (22) $ 162 $ (140) $ 206 Comprehensive income (loss) $ 232 $ (14) $ 146 $ (140) $ 224 Comprehensive loss (income) attributable to noncontrolling interests — — 8 — 8 Comprehensive income (loss) attributable to Newmont stockholders $ 232 $ (14) $ 154 $ (140) $ 232 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended September 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 537 $ 1,254 $ — $ 1,791 Costs and expenses: Costs applicable to sales (1) — 308 675 — 983 Depreciation and amortization 1 80 254 — 335 Reclamation and remediation — 3 22 — 25 Exploration — 10 29 — 39 Advanced projects, research and development — 4 30 — 34 General and administrative — 25 38 — 63 Other expense, net — 7 14 — 21 1 437 1,062 — 1,500 Other income (expense): Other income, net 2 5 (11) — (4) Interest income - intercompany 41 — 14 (55) — Interest expense - intercompany (13) — (42) 55 — Interest expense, net (61) (2) (1) — (64) (31) 3 (40) — (68) Income (loss) before income and mining tax and other items (32) 103 152 — 223 Income and mining tax benefit (expense) 11 (23) (78) — (90) Equity income (loss) of affiliates (338) (78) 2 416 2 Net income (loss) from continuing operations (359) 2 76 416 135 Net income (loss) from discontinued operations — — (448) — (448) Net income (loss) (359) 2 (372) 416 (313) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 34 — 34 Discontinued operations — — (79) — (79) — — (45) — (45) Net income (loss) attributable to Newmont stockholders $ (359) $ 2 $ (417) $ 416 $ (358) Comprehensive income (loss) $ (319) $ 8 $ (340) $ 377 $ (274) Comprehensive loss (income) attributable to noncontrolling interests — — (45) — (45) Comprehensive income (loss) attributable to Newmont stockholders $ (319) $ 8 $ (385) $ 377 $ (319) (1) Excludes Depreciation and amortization and Reclamation and remediation . Nine Months Ended September 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,414 $ 3,999 $ — $ 5,413 Costs and expenses: Costs applicable to sales (1) — 883 2,102 — 2,985 Depreciation and amortization 3 255 670 — 928 Reclamation and remediation — 11 92 — 103 Exploration — 32 103 — 135 Advanced projects, research and development — 13 86 — 99 General and administrative — 53 118 — 171 Other expense, net — 8 24 — 32 3 1,255 3,195 — 4,453 Other income (expense): Other income, net 37 5 (10) — 32 Interest income - intercompany 114 35 33 (182) — Interest expense - intercompany (33) (4) (145) 182 — Interest expense, net (172) (8) (7) — (187) (54) 28 (129) — (155) Income (loss) before income and mining tax and other items (57) 187 675 — 805 Income and mining tax benefit (expense) 20 (40) (329) — (349) Equity income (loss) of affiliates 466 (286) (17) (167) (4) Net income (loss) from continuing operations 429 (139) 329 (167) 452 Net income (loss) from discontinued operations — — (45) — (45) Net income (loss) 429 (139) 284 (167) 407 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 22 — 22 Discontinued operations — — — — — — — 22 — 22 Net income (loss) attributable to Newmont stockholders $ 429 $ (139) $ 306 $ (167) $ 429 Comprehensive income (loss) $ 471 $ (124) $ 269 $ (167) $ 449 Comprehensive loss (income) attributable to noncontrolling interests — — 22 — 22 Comprehensive income (loss) attributable to Newmont stockholders $ 471 $ (124) $ 291 $ (167) $ 471 (1) Excludes Depreciation and amortization and Reclamation and remediation . Nine Months Ended September 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,467 $ 3,455 $ — $ 4,922 Costs and expenses: Costs applicable to sales (1) — 898 1,838 — 2,736 Depreciation and amortization 3 240 649 — 892 Reclamation and remediation — 10 57 — 67 Exploration — 25 82 — 107 Advanced projects, research and development — 9 96 — 105 General and administrative — 65 113 — 178 Other expense, net — 21 33 — 54 3 1,268 2,868 — 4,139 Other income (expense): Other income, net 2 7 84 — 93 Interest income - intercompany 102 — 32 (134) — Interest expense - intercompany (31) — (103) 134 — Interest expense, net (196) (5) (3) — (204) (123) 2 10 — (111) Income (loss) before income and mining tax and other items (126) 201 597 — 672 Income and mining tax benefit (expense) 44 (42) (557) — (555) Equity income (loss) of affiliates (200) (525) 1 716 (8) Net income (loss) from continuing operations (282) (366) 41 716 109 Net income (loss) from discontinued operations — — (225) — (225) Net income (loss) (282) (366) (184) 716 (116) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 62 — 62 Discontinued operations — — (229) — (229) — — (167) — (167) Net income (loss) attributable to Newmont stockholders $ (282) $ (366) $ (351) $ 716 $ (283) Comprehensive income (loss) $ (251) $ (341) $ (184) $ 692 $ (84) Comprehensive loss (income) attributable to noncontrolling interests — — (167) — (167) Comprehensive income (loss) attributable to Newmont stockholders $ (251) $ (341) $ (351) $ 692 $ (251) (1) Excludes Depreciation and amortization and Reclamation and remediation . Nine Months Ended September 30, 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 $ (111) $ 375 $ 1,332 $ — $ 1,596 Net cash provided by (used in) operating activities of discontinued operations — — (12) — (12) Net cash provided by (used in) operating activities (111) 375 1,320 — 1,584 Investing activities: Additions to property, plant and mine development — (171) (386) — (557) Purchase of investments (109) — (4) — (113) Proceeds from sales of investments — — 34 — 34 Other — 2 7 — 9 Net cash provided by (used in) investing activities of continuing operations (109) (169) (349) — (627) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (109) (169) (349) — (627) Financing activities: Repayment of debt (575) (2) (2) — (579) Distributions to noncontrolling interests — — (119) — (119) Dividends paid to common stockholders (94) — — — (94) Funding from noncontrolling interests — — 70 — 70 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Dividends paid to noncontrolling interests — — — — — Acquisition of noncontrolling interests — — — — — Net intercompany borrowings (repayments) 892 (192) (700) — — Other (3) — (10) — (13) Net cash provided by (used in) financing activities of continuing operations 220 (207) (761) — (748) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 220 (207) (761) — (748) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1) 214 — 213 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 214 — 213 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ — $ 2,969 $ — $ 2,969 Nine Months Ended September 30, 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 $ 775 $ 459 $ 961 $ (862) $ 1,333 Net cash provided by (used in) operating activities of discontinued operations — — 826 — 826 Net cash provided by (used in) operating activities 775 459 1,787 (862) 2,159 Investing activities: Additions to property, plant and mine development — (182) (650) — (832) Purchases of investments — — — — — Proceeds from sales of investments — — 184 — 184 Other — — (13) — (13) Net cash provided by (used in) investing activities of continuing operations — (182) (479) — (661) Net cash provided by (used in) investing activities of discontinued operations — — (41) — (41) Net cash provided by (used in) investing activities — (182) (520) — (702) Financing activities: Repayment of debt (773) (2) (2) — (777) Distributions to noncontrolling interests — — — — — Dividends paid to common stockholders (41) (862) — 862 (41) Funding from noncontrolling interests — — 58 — 58 Payments for withholding of employee taxes related to stock-based compensation — (6) — — (6) Dividends paid to noncontrolling interests — — (146) — (146) Acquisition of noncontrolling interests — — (19) — (19) Net intercompany borrowings (repayments) 39 (587) 548 — — Other — — (1) — (1) Net cash provided by (used in) financing activities of continuing operations (775) (1,457) 438 862 (932) Net cash provided by (used in) financing activities of discontinued operations — — (319) — (319) Net cash provided by (used in) financing activities (775) (1,457) 119 862 (1,251) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1,180) 1,390 — 210 Less net cash provided by (used in) Batu Hijau discontinued operations — — 474 — 474 — (1,180) 916 — (264) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 1 $ 2,098 $ — $ 2,099 At September 30, 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 $ — $ — $ 2,969 $ — $ 2,969 Trade receivables — 22 109 — 131 Other accounts receivables — — 116 — Intercompany receivable 9,999 7,207 13,610 (30,816) — Investments — — 76 — 76 Inventories — 166 526 — 692 Stockpiles and ore on leach pads — 211 503 — 714 Other current assets — 36 74 — 110 Current assets 9,999 7,642 17,983 (30,816) 4,808 Property, plant and mine development, net 19 3,053 9,131 (30) 12,173 Investments 91 9 192 — 292 Investments in subsidiaries 12,686 193 — (12,879) — Stockpiles and ore on leach pads — 638 1,158 — 1,796 Deferred income tax assets 490 65 1,223 (490) 1,288 Non-current intercompany receivable 1,826 495 950 (3,271) — Other non-current assets — 224 255 — 479 Total assets $ 25,111 $ 12,319 $ 30,892 $ (47,486) $ 20,836 Liabilities: Debt $ — $ 1 $ 3 $ — $ 4 Accounts payable — 53 262 — 315 Intercompany payable 9,790 5,103 15,923 (30,816) — Employee-related benefits — 112 146 — 258 Income and mining taxes — 14 181 — 195 Other current liabilities 62 90 226 — 378 Current liabilities 9,852 5,373 16,741 (30,816) 1,150 Debt 4,040 2 4 — 4,046 Reclamation and remediation liabilities — 253 1,813 — 2,066 Deferred income tax liabilities — 95 1,001 (490) 606 Employee-related benefits — 220 160 — 380 Non-current intercompany payable 81 — 3,220 (3,301) — Other non-current liabilities — 20 337 — 357 Total liabilities 13,973 5,963 23,276 (34,607) 8,605 Equity: Newmont stockholders’ equity 11,138 6,356 6,523 (12,879) 11,138 Noncontrolling interests — — 1,093 — 1,093 Total equity 11,138 6,356 7,616 (12,879) 12,231 Total liabilities and equity $ 25,111 $ 12,319 $ 30,892 $ (47,486) $ 20,836 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 — 21 139 — 160 Other accounts receivables — 2 — 183 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 | 9 Months Ended |
Sep. 30, 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. 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 completed 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 updated closure plan was submitted to the Peruvian regulators and their review is expected to be complete in early 2018. 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 September 30, 2017 and December 31, 2016, $1,863 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 portions of $37 and $28 at September 30, 2017 and December 31, 2016, respectively, are 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, $272 and $298 were accrued for such obligations at September 30, 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 45% greater or 0% lower than the amount accrued at September 30, 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 and the U.S. Department of Justice to determine the next steps. 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, included in Other noncurrent assets 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 $184 at September 30, 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, 2015, 2016, and 2017, OEFA issued notices of alleged violations of OEFA standards to Yanacocha or 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 112,670 units and the water authority alleged violations range from zero to 30,000 units, with each unit having a potential fine equivalent to approximately $0.00122 based on current exchange rates ($0 to $175). 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 recently conducted 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 included a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. The Company worked 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. In June 2017, the Company received a similar letter from the U.S. Department of Justice acknowledging the Company’s cooperation in the investigation and indicating that the Department of Justice had closed its inquiry into the matter. 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 September 30, 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 $87 has been paid to date. During the nine months ended September 30, 2017 and 2016 the Company paid $9 and $-, respectively. The range of remaining undiscounted amounts the Company could pay is between $0 and $13 and the Company expects to pay $6 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 September 30, 2017 and December 31, 2016, there were $2,323 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) | 9 Months Ended |
Sep. 30, 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 Inventory In July 2015, Accounting Standard Update (“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. 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 $(6) 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 nine months ended September 30, 2016. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Business Combinations In 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. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Goodwill In 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. Adoption of this guidance, effective April 1, 2017, had no impact on the Consolidated Financial Statements or disclosures. Recently Issued Accounting Pronouncements 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, December 2016, and September 2017 by ASU No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12, No. 2016-20 and No. 2017-13, respectively. The new guidance 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 has performed an assessment of the revised guidance and the impacts on the Company’s Consolidated Financial Statements and disclosures. The Company has completed the review of all contracts and determined that the adoption of this guidance will primarily impact the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Currently, revenue is recognized for these contracts based on varying contractual terms indicating when risk of loss and title have transferred to the buyer. Upon adoption, revenue related to concentrate sales will typically be recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligations. The Company is finalizing the assessment and quantifying the impacts of changes on certain concentrate contracts. The Company completed its evaluation of variable consideration for concentrate sales related to the variable nature of the price and metal quantity. Based on our current analysis, the estimate of revenue recognized for concentrates will remain unchanged as sales will initially be recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities delivered based on weighing and assay data. The Company believes changes in the underlying weight and metal content are not significant to the sale as a whole and therefore do not preclude the recognition of revenue upon transfer of control. The Company’s provisional gold and copper concentrate sales will continue to 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. The Company will adopt the new guidance 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 guidance retrospectively with the cumulative effect of initially applying the amended guidance recognized at January 1, 2018. Under this approach, results for reporting periods beginning after January 1, 2018, will be presented in the Consolidated Financial Statements under the new guidance, while prior period amounts will not be adjusted and continue to be reported under the guidance in effect for those periods. In the related disclosures, results for reporting periods beginning after January 1, 2018, will be presented under prior guidance along with prior period amounts for comparative purposes. Expanded disclosures will also include gold revenue from doré production, gold and copper revenue from concentrate sales and copper revenue from cathode sales, as well as information pertaining to receivable balances, and revenue recognized in the current reporting period related to changes in price and metal quantity from performance obligations satisfied in previous periods, if material. 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 upon adoption, an entity should apply the amendments with the cumulative effect of initially applying the guidance recognized at January 1, 2018 . Early adoption is not permitted. The Company expects the updated guidance to result in a reclassification of unrealized holding gains and losses and deferred income taxes related to investments in marketable equity securities from Accumulated other comprehensive income (loss) to Retained earnings in the Consolidated Balance Sheets upon adoption. Accumulated other comprehensive income (loss) at September 30, 2017 included $(107) of unrealized holding gains and losses and deferred income taxes related to marketable equity securities. Leases In February 2016, ASU No. 2016-02 was issued related to leases, which was further amended in September 2017 by ASU No. 2017-13. The new guidance modifies the classification criteria and requires lessees to recognize the assets and liabilities arising from most leases on the balance sheet. The Company has begun its assessment of the new guidance and the impact it will have on the Consolidated Financial Statements and disclosures and expects to complete its analysis in 2018. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. The Company anticipates adopting the new guidance effective January 1, 2019. 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 has evaluated this guidance and does not expect it to have a material impact on the Consolidated Financial Statements and disclosures. The Company anticipates retrospectively adopting the new guidance effective December 31, 2017. 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 does not expect this guidance to have an impact on the Consolidated Financial Statements or disclosures. The Company anticipates adopting the new guidance effective January 1, 2018. 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 within financing activities, on the Consolidated Statements of 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 Consolidated Statements of Cash Flows. The Company anticipates retrospectively adopting this new guidance effective December 31, 2017, and does not expect it to have a material impact on the Consolidated Financial Statements or disclosures. 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 recognition of other components of net benefit costs within Other income, net rather than Costs and expenses 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 or disclosures. Hedging I n August 2017, ASU No. 2017-12 was issued related to hedge accounting. The new guidance expands the ability to hedge nonfinancial risk components, eliminates the current requirement to separately measure and report hedge ineffectiveness, and requires the entire change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item, when reclassified from Accumulated other comprehensive income (loss) . The guidance also eases certain hedge effectiveness documentation and assessment requirements. 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 when to adopt this guidance and the impact it will have on the Consolidated Financial Statements and disclosures. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DISCONTINUED OPERATIONS | |
Schedule of Net Income (Loss) from Discontinued Operations, Net of Tax | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Holt royalty obligation $ (7) $ (19) $ (45) $ (72) Batu Hijau operations — 148 — 424 Loss on classification as held for sale — (577) — (577) Net income (loss) from discontinued operations $ (7) $ (448) $ (45) $ (225) |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | |
DISCONTINUED OPERATIONS | |
Schedule of financial statement impact of discontinued operations | Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Sales $ 469 $ 1,408 Costs and expenses: Costs applicable to sales (1) 184 571 Depreciation and amortization 36 115 Reclamation and remediation 4 13 Advanced projects, research and development 1 2 General and administrative 2 8 Other expense (income), net (1) 2 226 711 Interest expense, net (5) (15) Income (loss) before income and mining tax and other items 238 682 Income and mining tax benefit (expense) (90) (258) Net income (loss) from discontinued operations 148 424 Loss on classification of assets held for sale, net of tax (577) (577) (429) (153) Net loss (income) attributable to noncontrolling interests (79) (229) Net income (loss) from discontinued operations attributable to Newmont stockholders $ (508) $ (382) (1) Excludes Depreciation and amortization and Reclamation and remediation. The 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: Nine Months Ended September 30, 2016 Net cash provided by (used in) operating activities $ 834 Net cash provided by (used in) investing activities (41) Net cash provided by (used in) financing activities (319) Net cash provided by (used in) Batu Hijau discontinued operations $ 474 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2017 Carlin $ 330 $ 216 $ 60 $ 6 $ 46 $ 32 Phoenix: Gold 68 48 13 Copper 21 11 3 Total Phoenix 89 59 16 1 8 4 Twin Creeks 103 59 16 3 25 16 Long Canyon 70 17 24 6 22 1 CC&V 140 75 35 2 29 9 Other North America — — — 10 (10) 1 North America 732 426 151 28 120 63 Yanacocha 176 150 38 11 (38) 12 Merian 162 62 22 3 75 29 Other South America — — 3 12 (18) — South America 338 212 63 26 19 41 Boddington: Gold 236 130 26 Copper 59 25 5 Total Boddington 295 155 31 1 105 17 Tanami 148 72 17 7 50 25 Kalgoorlie 121 64 5 3 47 5 Other Australia — — 2 2 (10) — Australia 564 291 55 13 192 47 Ahafo 100 57 14 6 21 51 Akyem 145 67 40 3 35 5 Other Africa — — — — (3) — Africa 245 124 54 9 53 56 Corporate and Other — — 4 13 (108) 1 Consolidated $ 1,879 $ 1,053 $ 327 $ 89 $ 276 $ 208 (1) Includes an increase in accrued capital expenditures of $14; consolidated capital expenditures on a cash basis were $194. 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 September 30, 2016 Carlin $ 362 $ 212 $ 51 $ 7 $ 91 $ 37 Phoenix: Gold 61 30 10 Copper 20 32 8 Total Phoenix 81 62 18 — (2) 8 Twin Creeks 129 52 10 2 64 9 Long Canyon — — — 4 (4) 28 CC&V 152 65 32 3 50 13 Other North America — — 1 3 2 1 North America 724 391 112 19 201 96 Yanacocha 195 148 92 6 (66) 26 Merian — — — 7 (8) 60 Other South America — — 3 8 (13) — South America 195 148 95 21 (87) 86 Boddington: Gold 287 139 30 Copper 43 33 6 Total Boddington 330 172 36 — 106 17 Tanami 151 57 20 4 70 36 Kalgoorlie 120 57 5 1 56 5 Other Australia — — 1 2 (13) — Australia 601 286 62 7 219 58 Ahafo 115 95 30 8 (20) 22 Akyem 156 63 32 4 56 5 Other Africa — — 1 1 (3) — Africa 271 158 63 13 33 27 Corporate and Other — — 3 13 (143) 2 Consolidated $ 1,791 $ 983 $ 335 $ 73 $ 223 $ 269 (1) There was no change to accrued capital expenditures; consolidated capital expenditures on a cash basis were $269. 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) Nine Months Ended September 30, 2017 Carlin $ 862 $ 579 $ 156 $ 14 $ 106 $ 128 Phoenix: Gold 188 137 36 Copper 71 45 12 Total Phoenix 259 182 48 5 15 14 Twin Creeks 352 167 46 7 128 33 Long Canyon 166 42 55 16 52 8 CC&V 452 219 97 9 125 17 Other North America — — 1 17 (20) 4 North America 2,091 1,189 403 68 406 204 Yanacocha 504 403 108 23 (90) 32 Merian 445 174 69 11 189 67 Other South America — — 10 31 (53) — South America 949 577 187 65 46 99 Boddington: Gold 726 399 81 Copper 156 74 15 Total Boddington 882 473 96 2 287 46 Tanami 363 180 48 16 125 77 Kalgoorlie 338 171 14 6 142 13 Other Australia — — 5 5 (30) 3 Australia 1,583 824 163 29 524 139 Ahafo 326 193 52 22 55 104 Akyem 464 202 114 9 135 17 Other Africa — — — 2 (8) — Africa 790 395 166 33 182 121 Corporate and Other — — 9 39 (353) 5 Consolidated $ 5,413 $ 2,985 $ 928 $ 234 $ 805 $ 568 (1) Includes an increase in accrued capital expenditures of $11; consolidated capital expenditures on a cash basis were $557. 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) Nine Months Ended September 30, 2016 Carlin $ 864 $ 585 $ 143 $ 14 $ 115 $ 116 Phoenix: Gold 187 118 37 Copper 63 76 20 Total Phoenix 250 194 57 1 (10) 15 Twin Creeks 432 170 36 6 217 29 Long Canyon — — — 17 (17) 101 CC&V 361 156 78 7 115 49 Other North America — — 1 9 (7) 3 North America 1,907 1,105 315 54 413 313 Yanacocha 600 396 220 26 (96) 64 Merian — — 1 21 (22) 202 Other South America — — 10 24 (38) — South America 600 396 231 71 (156) 266 Boddington: Gold 741 391 82 Copper 108 89 17 Total Boddington 849 480 99 — 245 40 Tanami 450 180 62 10 197 93 Kalgoorlie 348 189 14 4 138 13 Other Australia — — 7 5 (28) — Australia 1,647 849 182 19 552 146 Ahafo 331 212 62 20 30 61 Akyem 437 174 93 8 158 15 Other Africa — — 1 2 (7) — Africa 768 386 156 30 181 76 Corporate and Other — — 8 38 (318) 6 Consolidated $ 4,922 $ 2,736 $ 892 $ 212 $ 672 $ 807 (1) Includes a decrease in accrued capital expenditures of $25; consolidated capital expenditures on a cash basis were $832. |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Reclamation $ — $ — $ 15 $ — Reclamation accretion 25 19 75 57 25 19 90 57 Remediation 3 5 9 7 Remediation accretion 1 1 4 3 4 6 13 10 $ 29 $ 25 $ 103 $ 67 |
Reconciliation of Reclamation Liabilities | 2017 2016 Reclamation balance at January 1, $ 1,792 $ 1,300 Additions, changes in estimates and other 16 6 Payments and other (20) (14) Accretion expense 75 57 Reclamation balance at September 30, $ 1,863 $ 1,349 |
Reconciliation of Remediation Liabilities | 2017 2016 Remediation balance at January 1, $ 298 $ 318 Additions, changes in estimates and other 3 — Payments and other (33) (21) Accretion expense 4 3 Remediation balance at September 30, $ 272 $ 300 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
OTHER EXPENSE, NET | |
Other Expense, Net | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Restructuring and other $ 2 $ 7 $ 10 $ 26 Impairment of long-lived assets — — 3 4 Acquisition cost adjustments (3) 9 2 11 Other 2 5 17 13 $ 1 $ 21 $ 32 $ 54 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
OTHER INCOME, NET. | |
Other Income, Net | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Foreign currency exchange, net $ (9) $ (9) $ (30) $ (29) Gain on asset and investment sales, net 5 5 21 109 Tanami insurance proceeds — — 13 — Interest 9 2 19 7 Other 5 (2) 9 6 $ 10 $ (4) $ 32 $ 93 |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INCOME AND MINING TAXES | |
Income and Mining Tax Expense Reconciliation | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Income (loss) before income and mining tax and other items $ 276 $ 223 $ 805 $ 672 Tax at statutory rate % $ 97 35 % $ 78 35 % $ 282 35 % $ 235 Reconciling items: Percentage depletion 3 10 (5) (11) (8) (64) (7) (47) Change in valuation allowance on deferred tax assets (14) (39) (2) (5) 12 100 49 330 Mining and other taxes — (1) 6 13 4 34 6 41 U.S. tax effect of noncontrolling interest attributable to non-U.S. investees 2 5 4 10 1 5 3 20 Tax impact on sale of assets (1) (2) — — (1) (7) (5) (35) Other 1 2 2 5 — (1) 2 11 Income and mining tax expense 26 % $ 72 40 % $ 90 43 % $ 349 83 % $ 555 |
NET INCOME (LOSS) ATTRIBUTABL38
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Yanacocha $ (25) $ (32) $ (64) $ (56) Merian 17 (2) 43 (6) Other — — (1) — $ (8) $ (34) $ (22) $ (62) |
Schedule summarizing the assets and liabilities of consolidated VIEs (including noncontrolling interests) | At September 30, At December 31, 2017 2016 Current assets: Cash and cash equivalents $ 41 $ 50 Inventories 69 57 Stockpiles and ore on leach pads 18 23 Other current assets (1) 42 37 170 167 Non-current assets: Property, plant and mine development, net 747 746 Other non-current assets (2) 7 8 Total assets $ 924 $ 921 Current liabilities: Other current liabilities (3) $ 47 $ 43 47 43 Non-current liabilities: Reclamation and remediation liabilities 12 11 Total liabilities $ 59 $ 54 (1) Other current assets include trade and 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 accounts payable, employee-related benefits and other current liabilities. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INCOME (LOSS) PER COMMON SHARE | |
Summary of Income (Loss) per Common Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 213 $ 169 $ 474 $ 171 Discontinued operations (7) (527) (45) (454) $ 206 $ (358) $ 429 $ (283) Weighted average common shares (millions): Basic 533 531 533 530 Effect of employee stock-based awards 3 2 1 2 Diluted 536 533 534 532 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.39 $ 0.32 $ 0.88 $ 0.32 Discontinued operations (0.01) (0.99) (0.08) (0.85) $ 0.38 $ (0.67) $ 0.80 $ (0.53) Diluted: Continuing operations $ 0.39 $ 0.32 $ 0.88 $ 0.32 Discontinued operations (0.01) (0.99) (0.08) (0.85) $ 0.38 $ (0.67) $ 0.80 $ (0.53) |
EMPLOYEE PENSION AND OTHER BE40
EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
Employee Pension and Other Benefit Plans | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pension benefit costs, net: Service cost $ 7 $ 6 $ 22 $ 21 Interest cost 11 11 33 34 Expected return on plan assets (15) (14) (46) (43) Amortization, net 7 6 21 18 Settlements 1 4 5 4 $ 11 $ 13 $ 35 $ 34 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Other benefit costs, net: Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 3 3 Amortization, net (1) (1) (5) (4) $ — $ — $ (1) $ — |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
STOCK-BASED COMPENSATION | |
Stock Option and Other Stock Based Compensation | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock-based compensation: Performance leveraged stock units $ 9 $ 9 $ 26 $ 28 Restricted stock units 9 7 26 22 Strategic stock units — 1 1 4 $ 18 $ 17 $ 53 $ 54 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at September 30, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 2,969 $ 2,969 $ — $ — Restricted assets 77 77 — — Diesel forward contracts 3 — 3 — Marketable equity securities: Extractive industries 170 170 — — Other 22 22 — — Trade receivable from provisional copper and gold concentrate sales, net 83 83 — — Batu Hijau contingent consideration 13 — — 13 $ 3,337 $ 3,321 $ 3 $ 13 Liabilities: Debt (1) $ 4,612 $ — $ 4,612 $ — Foreign exchange forward contracts 4 — 4 — Boddington contingent consideration 13 — — 13 Holt royalty obligation 248 — — 248 $ 4,877 $ — $ 4,616 $ 261 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 gold concentrate sales, net 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 $4,038 and $4,599 at September 30, 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 September 30, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 13 Monte Carlo Discount rate 17.10 % Short-term copper price $ 2.88 Long-term copper price $ Boddington contingent consideration $ 13 Monte Carlo Discount rate 3.10 % Short-term gold price $ 1,278 Long-term gold price $ 1,300 Short-term copper price $ 2.88 Long-term copper price $ Long-term Australian to U.S. dollar exchange rate $ Holt royalty obligation $ 248 Monte Carlo Discount rate 2.99 % Short-term gold price $ 1,278 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 420 - 1,797 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) (9) (9) (18) Revaluation — — — 8 70 78 Fair value at September 30, 2017 $ — $ 13 $ 13 $ 13 $ 248 $ 261 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 — — — — (8) (8) Revaluation — 2 2 11 104 115 Fair value at September 30, 2016 $ 7 $ 20 $ 27 $ 21 $ 225 $ 246 (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 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At September 30, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 4 $ — Diesel fixed forwards 3 — — — $ 3 $ — $ 4 $ — Fair Values of Derivative Instruments At December 31, 2016 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 23 $ 1 Diesel fixed forwards 4 — 4 — $ 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 September 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 1 $ 4 $ 5 $ — $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (5) $ (9) $ — $ (4) $ (2) $ (3) For the nine months ended September 30, Cash flow hedging relationships: Gain (loss) recognized in Other comprehensive income (loss) (effective portion) $ 5 $ 8 $ (1) $ 5 $ — $ — Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) $ (20) $ (29) $ (3) $ (18) $ (7) $ (11) Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) $ — $ — $ — $ 1 $ — $ — (1) The gain (loss) recognized for the effective portion of cash flow hedges is included in Costs applicable to sales and Interest expense, net . (2) The ineffective portion recognized for cash flow hedges is included in Other income, 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) 24 6 30 Average rate ($/A$) 0.93 0.92 0.93 Expected hedge ratio 7 % 5 % |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date 2017 2018 2019 Total/Average Diesel Fixed Forward Contracts: Diesel gallons (millions) 6 14 1 21 Average rate ($/gallon) 1.59 1.60 1.61 1.60 Expected hedge ratio 69 % 38 % 7 % |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INVESTMENTS | |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At September 30, 2017 Cost/Equity Unrealized Fair/Equity Basis Gain Loss Basis Current: Marketable equity securities $ 39 $ 44 $ (7) $ 76 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (19) $ 90 Other marketable equity securities 23 3 — 26 132 3 (19) 116 Other investments, at cost 7 — — 7 Equity method investments: TMAC Resources Inc. (28.80%) 109 — — 109 Minera La Zanja S.R.L. (46.94%) 56 — — 56 Euronimba Ltd. (43.50%) 4 — — 4 169 — — 169 $ 308 $ 3 $ (19) $ 292 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 Resources Inc. (29.00%) 108 — — 108 Minera La Zanja S.R.L. (46.94%) 71 — — 71 Euronimba Ltd. (43.50%) 4 — — 4 183 — — 183 $ 223 $ 4 $ — $ 227 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | |
Summary of Inventories | At September 30, At December 31, 2017 2016 Materials and supplies $ 426 $ 391 In-process 128 130 Concentrate and copper cathode 92 67 Precious metals 46 29 $ 692 $ 617 |
STOCKPILES AND ORE ON LEACH P46
STOCKPILES AND ORE ON LEACH PADS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At September 30, At December 31, 2017 2016 Current: Stockpiles $ 374 $ 393 Ore on leach pads 340 370 $ 714 $ 763 Non-current: Stockpiles $ 1,468 $ 1,506 Ore on leach pads 328 358 $ 1,796 $ 1,864 |
Stockpiles and Ore on Leach Pads, by Segment | At September 30, At December 31, 2017 2016 Stockpiles and ore on leach pads: Carlin $ 452 $ 421 Phoenix 70 80 Twin Creeks 337 328 Long Canyon 29 9 CC&V 309 369 Yanacocha 255 367 Merian 21 27 Boddington 414 394 Tanami 11 19 Kalgoorlie 125 113 Ahafo 405 386 Akyem 82 114 $ 2,510 $ 2,627 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
OTHER LIABILITIES | |
Other Liabilities | At September 30, At December 31, 2017 2016 Other current liabilities: Accrued operating costs $ 109 $ 99 Reclamation and remediation liabilities 69 61 Accrued capital expenditures 63 53 Accrued interest 62 57 Royalties 34 52 Holt royalty obligation 14 13 Taxes other than income and mining 8 8 Boddington contingent consideration 6 3 Derivative instruments 4 27 Other 9 34 $ 378 $ 407 Other non-current liabilities: Holt royalty obligation $ 234 $ 174 Income and mining taxes 48 50 Power supply agreements 32 31 Social development obligations 24 25 Boddington contingent consideration 7 11 Other 12 35 $ 357 $ 326 |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
CHANGES IN EQUITY | |
Changes in Equity | Nine Months Ended September 30, 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 36 42 At end of period 9,526 9,469 Accumulated other comprehensive income (loss): At beginning of period (334) (334) Other comprehensive income (loss) 42 32 At end of period (292) (302) Retained earnings: At beginning of period 716 1,410 Net income (loss) attributable to Newmont stockholders 429 (283) Dividends paid (94) (41) At end of period 1,051 1,086 Noncontrolling interests: At beginning of period 1,153 2,942 Net income (loss) attributable to noncontrolling interests (22) 167 Distributions declared to noncontrolling interests (1) (110) — Cash calls requested from noncontrolling interests (2) 72 63 Dividends paid to noncontrolling interests — (146) Acquisition of noncontrolling interests — (19) At end of period 1,093 3,007 Total equity $ 12,231 $ 14,109 (1) Distributions declared to noncontrolling interests of $110 for the nine months ended September 30, 2017 represent distributions declared to Staatsolie from Merian. The Company paid $119 in distributions during the nine months ended September 30, 2017 related to current and prior period distributions declared. (2) Cash calls requested from noncontrolling interests of $72 and $63 for the nine months ended September 30, 2017 and September 30, 2016, respectively, represent cash calls requested from Staatsolie, of which $70 and $58 had been paid as of September 30, 2017 and September 30, 2016. |
RECLASSIFICATIONS OUT OF ACCU49
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Change in Accumulated Other Comprehensive Income (Loss) | Pension and Unrealized Gain Unrealized Gain Foreign Other (Loss) on (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 (1) 12 (1) 3 13 Reclassifications from accumulated other comprehensive income (loss) (5) — 14 20 29 Net current-period other comprehensive income (loss) (6) 12 13 23 42 Balance at September 30, 2017 $ (107) $ 130 $ (210) $ (105) $ (292) |
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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Marketable securities adjustments: Sale of marketable securities $ (5) $ — $ (5) $ (103) Other income, net Total before tax (5) — (5) (103) Tax benefit (expense) — — — — Net of tax $ (5) $ — $ (5) $ (103) Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 5 $ 16 $ 14 (1) Settlements 1 4 5 4 Other expense, net Total before tax 7 9 21 18 Tax benefit (expense) (2) (3) (7) (6) Net of tax $ 5 $ 6 $ 14 $ 12 Hedge instruments adjustments: Operating cash flow hedges (effective portion) $ 5 $ 13 $ 23 $ 47 Costs applicable to sales Operating cash flow hedges (ineffective portion) — — — (1) Other income, net Interest rate contracts 2 3 7 11 Interest expense, net Total before tax 7 16 30 57 Tax benefit (expense) (2) (4) (10) (17) Net of tax $ 5 $ 12 $ 20 $ 40 Total reclassifications for the period, net of tax $ 5 $ 18 $ 29 $ (51) (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) | 9 Months Ended |
Sep. 30, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
Net Cash Provided from Operations Attributable to the Net Change in Operating Assets and Liabilities | Nine Months Ended September 30, 2017 2016 Decrease (increase) in operating assets: Trade and other accounts receivables $ 77 $ 34 Inventories, stockpiles and ore on leach pads (162) (243) Other assets (11) (63) Increase (decrease) in operating liabilities: Accounts payable (8) (16) Reclamation and remediation liabilities (53) (35) Employee-related liabilities (81) (79) Other accrued liabilities (4) (24) $ (242) $ (426) |
CONDENSED CONSOLIDATING FINAN51
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Three Months Ended September 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 494 $ 1,385 $ — $ 1,879 Costs and expenses: Costs applicable to sales (1) — 318 735 — 1,053 Depreciation and amortization 1 94 232 — 327 Reclamation and remediation — 4 25 — 29 Exploration — 10 38 — 48 Advanced projects, research and development — 10 31 — 41 General and administrative — 18 40 — 58 Other expense, net — — 1 — 1 1 454 1,102 — 1,557 Other income (expense): Other income, net 11 2 (3) — 10 Interest income - intercompany 67 11 11 (89) — Interest expense - intercompany (11) — (78) 89 — Interest expense, net (51) (5) — — (56) 16 8 (70) — (46) Income (loss) before income and mining tax and other items 15 48 213 — 276 Income and mining tax benefit (expense) (5) (18) (49) — (72) Equity income (loss) of affiliates 196 (52) (3) (140) 1 Net income (loss) from continuing operations 206 (22) 161 (140) 205 Net income (loss) from discontinued operations — — (7) — (7) Net income (loss) 206 (22) 154 (140) 198 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 8 — 8 Discontinued operations — — — — — — — 8 — 8 Net income (loss) attributable to Newmont stockholders $ 206 $ (22) $ 162 $ (140) $ 206 Comprehensive income (loss) $ 232 $ (14) $ 146 $ (140) $ 224 Comprehensive loss (income) attributable to noncontrolling interests — — 8 — 8 Comprehensive income (loss) attributable to Newmont stockholders $ 232 $ (14) $ 154 $ (140) $ 232 (1) Excludes Depreciation and amortization and Reclamation and remediation . Three Months Ended September 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 537 $ 1,254 $ — $ 1,791 Costs and expenses: Costs applicable to sales (1) — 308 675 — 983 Depreciation and amortization 1 80 254 — 335 Reclamation and remediation — 3 22 — 25 Exploration — 10 29 — 39 Advanced projects, research and development — 4 30 — 34 General and administrative — 25 38 — 63 Other expense, net — 7 14 — 21 1 437 1,062 — 1,500 Other income (expense): Other income, net 2 5 (11) — (4) Interest income - intercompany 41 — 14 (55) — Interest expense - intercompany (13) — (42) 55 — Interest expense, net (61) (2) (1) — (64) (31) 3 (40) — (68) Income (loss) before income and mining tax and other items (32) 103 152 — 223 Income and mining tax benefit (expense) 11 (23) (78) — (90) Equity income (loss) of affiliates (338) (78) 2 416 2 Net income (loss) from continuing operations (359) 2 76 416 135 Net income (loss) from discontinued operations — — (448) — (448) Net income (loss) (359) 2 (372) 416 (313) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 34 — 34 Discontinued operations — — (79) — (79) — — (45) — (45) Net income (loss) attributable to Newmont stockholders $ (359) $ 2 $ (417) $ 416 $ (358) Comprehensive income (loss) $ (319) $ 8 $ (340) $ 377 $ (274) Comprehensive loss (income) attributable to noncontrolling interests — — (45) — (45) Comprehensive income (loss) attributable to Newmont stockholders $ (319) $ 8 $ (385) $ 377 $ (319) (1) Excludes Depreciation and amortization and Reclamation and remediation . Nine Months Ended September 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,414 $ 3,999 $ — $ 5,413 Costs and expenses: Costs applicable to sales (1) — 883 2,102 — 2,985 Depreciation and amortization 3 255 670 — 928 Reclamation and remediation — 11 92 — 103 Exploration — 32 103 — 135 Advanced projects, research and development — 13 86 — 99 General and administrative — 53 118 — 171 Other expense, net — 8 24 — 32 3 1,255 3,195 — 4,453 Other income (expense): Other income, net 37 5 (10) — 32 Interest income - intercompany 114 35 33 (182) — Interest expense - intercompany (33) (4) (145) 182 — Interest expense, net (172) (8) (7) — (187) (54) 28 (129) — (155) Income (loss) before income and mining tax and other items (57) 187 675 — 805 Income and mining tax benefit (expense) 20 (40) (329) — (349) Equity income (loss) of affiliates 466 (286) (17) (167) (4) Net income (loss) from continuing operations 429 (139) 329 (167) 452 Net income (loss) from discontinued operations — — (45) — (45) Net income (loss) 429 (139) 284 (167) 407 Net loss (income) attributable to noncontrolling interests: Continuing operations — — 22 — 22 Discontinued operations — — — — — — — 22 — 22 Net income (loss) attributable to Newmont stockholders $ 429 $ (139) $ 306 $ (167) $ 429 Comprehensive income (loss) $ 471 $ (124) $ 269 $ (167) $ 449 Comprehensive loss (income) attributable to noncontrolling interests — — 22 — 22 Comprehensive income (loss) attributable to Newmont stockholders $ 471 $ (124) $ 291 $ (167) $ 471 (1) Excludes Depreciation and amortization and Reclamation and remediation . Nine Months Ended September 30, 2016 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 1,467 $ 3,455 $ — $ 4,922 Costs and expenses: Costs applicable to sales (1) — 898 1,838 — 2,736 Depreciation and amortization 3 240 649 — 892 Reclamation and remediation — 10 57 — 67 Exploration — 25 82 — 107 Advanced projects, research and development — 9 96 — 105 General and administrative — 65 113 — 178 Other expense, net — 21 33 — 54 3 1,268 2,868 — 4,139 Other income (expense): Other income, net 2 7 84 — 93 Interest income - intercompany 102 — 32 (134) — Interest expense - intercompany (31) — (103) 134 — Interest expense, net (196) (5) (3) — (204) (123) 2 10 — (111) Income (loss) before income and mining tax and other items (126) 201 597 — 672 Income and mining tax benefit (expense) 44 (42) (557) — (555) Equity income (loss) of affiliates (200) (525) 1 716 (8) Net income (loss) from continuing operations (282) (366) 41 716 109 Net income (loss) from discontinued operations — — (225) — (225) Net income (loss) (282) (366) (184) 716 (116) Net loss (income) attributable to noncontrolling interests: Continuing operations — — 62 — 62 Discontinued operations — — (229) — (229) — — (167) — (167) Net income (loss) attributable to Newmont stockholders $ (282) $ (366) $ (351) $ 716 $ (283) Comprehensive income (loss) $ (251) $ (341) $ (184) $ 692 $ (84) Comprehensive loss (income) attributable to noncontrolling interests — — (167) — (167) Comprehensive income (loss) attributable to Newmont stockholders $ (251) $ (341) $ (351) $ 692 $ (251) (1) Excludes Depreciation and amortization and Reclamation and remediation . |
Condensed Consolidating Statement of Cash Flows | Nine Months Ended September 30, 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 $ (111) $ 375 $ 1,332 $ — $ 1,596 Net cash provided by (used in) operating activities of discontinued operations — — (12) — (12) Net cash provided by (used in) operating activities (111) 375 1,320 — 1,584 Investing activities: Additions to property, plant and mine development — (171) (386) — (557) Purchase of investments (109) — (4) — (113) Proceeds from sales of investments — — 34 — 34 Other — 2 7 — 9 Net cash provided by (used in) investing activities of continuing operations (109) (169) (349) — (627) Net cash provided by (used in) investing activities of discontinued operations — — — — — Net cash provided by (used in) investing activities (109) (169) (349) — (627) Financing activities: Repayment of debt (575) (2) (2) — (579) Distributions to noncontrolling interests — — (119) — (119) Dividends paid to common stockholders (94) — — — (94) Funding from noncontrolling interests — — 70 — 70 Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Dividends paid to noncontrolling interests — — — — — Acquisition of noncontrolling interests — — — — — Net intercompany borrowings (repayments) 892 (192) (700) — — Other (3) — (10) — (13) Net cash provided by (used in) financing activities of continuing operations 220 (207) (761) — (748) Net cash provided by (used in) financing activities of discontinued operations — — — — — Net cash provided by (used in) financing activities 220 (207) (761) — (748) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1) 214 — 213 Less net cash provided by (used in) Batu Hijau discontinued operations — — — — — — (1) 214 — 213 Cash and cash equivalents at beginning of period — 1 2,755 — 2,756 Cash and cash equivalents at end of period $ — $ — $ 2,969 $ — $ 2,969 Nine Months Ended September 30, 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 $ 775 $ 459 $ 961 $ (862) $ 1,333 Net cash provided by (used in) operating activities of discontinued operations — — 826 — 826 Net cash provided by (used in) operating activities 775 459 1,787 (862) 2,159 Investing activities: Additions to property, plant and mine development — (182) (650) — (832) Purchases of investments — — — — — Proceeds from sales of investments — — 184 — 184 Other — — (13) — (13) Net cash provided by (used in) investing activities of continuing operations — (182) (479) — (661) Net cash provided by (used in) investing activities of discontinued operations — — (41) — (41) Net cash provided by (used in) investing activities — (182) (520) — (702) Financing activities: Repayment of debt (773) (2) (2) — (777) Distributions to noncontrolling interests — — — — — Dividends paid to common stockholders (41) (862) — 862 (41) Funding from noncontrolling interests — — 58 — 58 Payments for withholding of employee taxes related to stock-based compensation — (6) — — (6) Dividends paid to noncontrolling interests — — (146) — (146) Acquisition of noncontrolling interests — — (19) — (19) Net intercompany borrowings (repayments) 39 (587) 548 — — Other — — (1) — (1) Net cash provided by (used in) financing activities of continuing operations (775) (1,457) 438 862 (932) Net cash provided by (used in) financing activities of discontinued operations — — (319) — (319) Net cash provided by (used in) financing activities (775) (1,457) 119 862 (1,251) Effect of exchange rate changes on cash — — 4 — 4 Net change in cash and cash equivalents — (1,180) 1,390 — 210 Less net cash provided by (used in) Batu Hijau discontinued operations — — 474 — 474 — (1,180) 916 — (264) Cash and cash equivalents at beginning of period — 1,181 1,182 — 2,363 Cash and cash equivalents at end of period $ — $ 1 $ 2,098 $ — $ 2,099 |
Condensed Consolidating Balance Sheet | At September 30, 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 $ — $ — $ 2,969 $ — $ 2,969 Trade receivables — 22 109 — 131 Other accounts receivables — — 116 — Intercompany receivable 9,999 7,207 13,610 (30,816) — Investments — — 76 — 76 Inventories — 166 526 — 692 Stockpiles and ore on leach pads — 211 503 — 714 Other current assets — 36 74 — 110 Current assets 9,999 7,642 17,983 (30,816) 4,808 Property, plant and mine development, net 19 3,053 9,131 (30) 12,173 Investments 91 9 192 — 292 Investments in subsidiaries 12,686 193 — (12,879) — Stockpiles and ore on leach pads — 638 1,158 — 1,796 Deferred income tax assets 490 65 1,223 (490) 1,288 Non-current intercompany receivable 1,826 495 950 (3,271) — Other non-current assets — 224 255 — 479 Total assets $ 25,111 $ 12,319 $ 30,892 $ (47,486) $ 20,836 Liabilities: Debt $ — $ 1 $ 3 $ — $ 4 Accounts payable — 53 262 — 315 Intercompany payable 9,790 5,103 15,923 (30,816) — Employee-related benefits — 112 146 — 258 Income and mining taxes — 14 181 — 195 Other current liabilities 62 90 226 — 378 Current liabilities 9,852 5,373 16,741 (30,816) 1,150 Debt 4,040 2 4 — 4,046 Reclamation and remediation liabilities — 253 1,813 — 2,066 Deferred income tax liabilities — 95 1,001 (490) 606 Employee-related benefits — 220 160 — 380 Non-current intercompany payable 81 — 3,220 (3,301) — Other non-current liabilities — 20 337 — 357 Total liabilities 13,973 5,963 23,276 (34,607) 8,605 Equity: Newmont stockholders’ equity 11,138 6,356 6,523 (12,879) 11,138 Noncontrolling interests — — 1,093 — 1,093 Total equity 11,138 6,356 7,616 (12,879) 12,231 Total liabilities and equity $ 25,111 $ 12,319 $ 30,892 $ (47,486) $ 20,836 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 — 21 139 — 160 Other accounts receivables — 2 — 183 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 |
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% |
BASIS OF PRESENTATION - Present
BASIS OF PRESENTATION - Presentation Reclassification (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Reclassification | ||
Other accounts receivables | $ 116 | $ 183 |
Trade receivables | $ 131 | 160 |
Reclassified | ||
Reclassification | ||
Other accounts receivables | (33) | |
Trade receivables | $ 33 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | $ 1,596 | $ 1,333 |
Net cash provided by (used in) financing activities of continuing operations | $ (748) | (932) |
ASU No. 2016-09 - Stock-based compensation | Reclassified | ||
Recently Adopted Accounting Pronouncements | ||
Net cash provided by (used in) continuing operating activities | 6 | |
Net cash provided by (used in) financing activities of continuing operations | $ (6) |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements - Investments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Investments | |||
Unrealized gain (loss) on marketable securities included in AOCI | $ 12,231 | $ 11,874 | $ 14,109 |
Unrealized gain (loss) on marketable securities, net | |||
Investments | |||
Unrealized gain (loss) on marketable securities included in AOCI | $ (107) | $ (101) |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations | $ (7) | $ (448) | $ (45) | $ (225) |
Discontinued operations - held-for-sale or disposed of | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations | (7) | (448) | (45) | (225) |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Batu Hijau operations | 148 | 424 | ||
Net income (loss) from discontinued operations | (429) | (153) | ||
Loss on classification as held for sale | (577) | (577) | ||
Holt royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations | $ (7) | $ (19) | $ (45) | $ (72) |
DISCONTINUED OPERATIONS - Holt
DISCONTINUED OPERATIONS - Holt Royalty Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Disposal group | |||||
Net income (loss) from discontinued operations | $ (7) | $ (448) | $ (45) | $ (225) | |
Holloway Mining Company | Discontinued operations disposed of by sale | Holt royalty obligation | |||||
Disposal group | |||||
Fair value of royalty obligation | 248 | 248 | $ 187 | ||
Net income (loss) from discontinued operations | (7) | (19) | (45) | (72) | |
Income and mining tax benefit (expense) | $ 4 | $ 9 | 25 | 32 | |
Royalty paid | $ 9 | $ 8 |
DISCONTINUED OPERATIONS - Batu
DISCONTINUED OPERATIONS - Batu Hijau Other Information (Details) | Nov. 02, 2016 |
PTNNT - Batu Hijau | PTNNT - Batu Hijau | Discontinued operations disposed of by sale | |
Other information | |
Ownership interest held (as a percent) | 48.50% |
DISCONTINUED OPERATIONS - Bat59
DISCONTINUED OPERATIONS - Batu Hijau Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Costs and expenses | ||||
Net income (loss) from discontinued operations, net of tax | $ (7) | $ (448) | $ (45) | $ (225) |
Net loss (income) attributable to noncontrolling interests, net of tax | (79) | (229) | ||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ (7) | (527) | $ (45) | (454) |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Sales | 469 | 1,408 | ||
Costs and expenses | ||||
Costs applicable to sales (1) | 184 | 571 | ||
Depreciation and amortization | 36 | 115 | ||
Reclamation and remediation | 4 | 13 | ||
Advanced projects, research and development | 1 | 2 | ||
General and administrative | 2 | 8 | ||
Other expense (income), net | (1) | 2 | ||
Total Costs and expenses | 226 | 711 | ||
Interest expense, net | (5) | (15) | ||
Income (loss) before income and mining tax and other items | 238 | 682 | ||
Income and mining tax benefit (expense) | (90) | (258) | ||
Net income (loss) from discontinued operations | 148 | 424 | ||
Loss on classification as held for sale, net of tax | (577) | (577) | ||
Net income (loss) from discontinued operations, net of tax | (429) | (153) | ||
Net loss (income) attributable to noncontrolling interests, net of tax | (79) | (229) | ||
Net income (loss) from discontinued operations attributable to Newmont stockholders | $ (508) | $ (382) |
DISCONTINUED OPERATIONS - Bat60
DISCONTINUED OPERATIONS - Batu Hijau Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows | ||
Net cash provided by (used in) operating activities | $ (12) | $ 826 |
Net cash provided by (used in) investing activities | (41) | |
Net cash provided by (used in) financing activities | (319) | |
PTNNT - Batu Hijau | Discontinued operations - Held-for-sale | ||
Cash flows | ||
Net cash provided by (used in) operating activities | 834 | |
Net cash provided by (used in) investing activities | (41) | |
Net cash provided by (used in) financing activities | (319) | |
Net cash provided by (used in) discontinued operations | $ 474 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | ||
Segment Information | ||||||
Sales | $ 1,879 | $ 1,791 | $ 5,413 | $ 4,922 | ||
Costs applicable to sales | [1] | 1,053 | 983 | 2,985 | 2,736 | |
Depreciation and amortization | 327 | 335 | 928 | 892 | ||
Advanced Projects, Research and Development, and Exploration | 89 | 73 | 234 | 212 | ||
Income (Loss) before Income and Mining Tax and Other Items | 276 | 223 | 805 | 672 | ||
Total Assets | 20,836 | 20,836 | $ 21,031 | |||
Capital Expenditures | 208 | 269 | 568 | 807 | ||
Additional disclosures | ||||||
Increase (decrease) in accrued capital expenditures | 14 | 0 | 11 | (25) | ||
Consolidated capital expenditures on a cash basis | 194 | 269 | $ 557 | 832 | ||
Operating Segments | ||||||
Segment Information | ||||||
Number of operating segments | segment | 4 | |||||
Corporate and other | ||||||
Segment Information | ||||||
Depreciation and amortization | 4 | 3 | $ 9 | 8 | ||
Advanced Projects, Research and Development, and Exploration | 13 | 13 | 39 | 38 | ||
Income (Loss) before Income and Mining Tax and Other Items | (108) | (143) | (353) | (318) | ||
Capital Expenditures | 1 | 2 | 5 | 6 | ||
North America | Operating Segments | ||||||
Segment Information | ||||||
Sales | 732 | 724 | 2,091 | 1,907 | ||
Costs applicable to sales | 426 | 391 | 1,189 | 1,105 | ||
Depreciation and amortization | 151 | 112 | 403 | 315 | ||
Advanced Projects, Research and Development, and Exploration | 28 | 19 | 68 | 54 | ||
Income (Loss) before Income and Mining Tax and Other Items | 120 | 201 | 406 | 413 | ||
Capital Expenditures | 63 | 96 | 204 | 313 | ||
North America | Operating Segments | Carlin | ||||||
Segment Information | ||||||
Sales | 330 | 362 | 862 | 864 | ||
Costs applicable to sales | 216 | 212 | 579 | 585 | ||
Depreciation and amortization | 60 | 51 | 156 | 143 | ||
Advanced Projects, Research and Development, and Exploration | 6 | 7 | 14 | 14 | ||
Income (Loss) before Income and Mining Tax and Other Items | 46 | 91 | 106 | 115 | ||
Capital Expenditures | 32 | 37 | 128 | 116 | ||
North America | Operating Segments | Phoenix | ||||||
Segment Information | ||||||
Sales | 89 | 81 | 259 | 250 | ||
Costs applicable to sales | 59 | 62 | 182 | 194 | ||
Depreciation and amortization | 16 | 18 | 48 | 57 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 5 | 1 | |||
Income (Loss) before Income and Mining Tax and Other Items | 8 | (2) | 15 | (10) | ||
Capital Expenditures | 4 | 8 | 14 | 15 | ||
North America | Operating Segments | Phoenix | Gold | ||||||
Segment Information | ||||||
Sales | 68 | 61 | 188 | 187 | ||
Costs applicable to sales | 48 | 30 | 137 | 118 | ||
Depreciation and amortization | 13 | 10 | 36 | 37 | ||
North America | Operating Segments | Phoenix | Copper | ||||||
Segment Information | ||||||
Sales | 21 | 20 | 71 | 63 | ||
Costs applicable to sales | 11 | 32 | 45 | 76 | ||
Depreciation and amortization | 3 | 8 | 12 | 20 | ||
North America | Operating Segments | Twin Creeks | ||||||
Segment Information | ||||||
Sales | 103 | 129 | 352 | 432 | ||
Costs applicable to sales | 59 | 52 | 167 | 170 | ||
Depreciation and amortization | 16 | 10 | 46 | 36 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 2 | 7 | 6 | ||
Income (Loss) before Income and Mining Tax and Other Items | 25 | 64 | 128 | 217 | ||
Capital Expenditures | 16 | 9 | 33 | 29 | ||
North America | Operating Segments | Long Canyon | ||||||
Segment Information | ||||||
Sales | 70 | 166 | ||||
Costs applicable to sales | 17 | 42 | ||||
Depreciation and amortization | 24 | 55 | ||||
Advanced Projects, Research and Development, and Exploration | 6 | 4 | 16 | 17 | ||
Income (Loss) before Income and Mining Tax and Other Items | 22 | (4) | 52 | (17) | ||
Capital Expenditures | 1 | 28 | 8 | 101 | ||
North America | Operating Segments | Cripple Creek & Victor mine | ||||||
Segment Information | ||||||
Sales | 140 | 152 | 452 | 361 | ||
Costs applicable to sales | 75 | 65 | 219 | 156 | ||
Depreciation and amortization | 35 | 32 | 97 | 78 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 3 | 9 | 7 | ||
Income (Loss) before Income and Mining Tax and Other Items | 29 | 50 | 125 | 115 | ||
Capital Expenditures | 9 | 13 | 17 | 49 | ||
North America | Operating Segments | Other North America | ||||||
Segment Information | ||||||
Depreciation and amortization | 1 | 1 | 1 | |||
Advanced Projects, Research and Development, and Exploration | 10 | 3 | 17 | 9 | ||
Income (Loss) before Income and Mining Tax and Other Items | (10) | 2 | (20) | (7) | ||
Capital Expenditures | 1 | 1 | 4 | 3 | ||
South America | Operating Segments | ||||||
Segment Information | ||||||
Sales | 338 | 195 | 949 | 600 | ||
Costs applicable to sales | 212 | 148 | 577 | 396 | ||
Depreciation and amortization | 63 | 95 | 187 | 231 | ||
Advanced Projects, Research and Development, and Exploration | 26 | 21 | 65 | 71 | ||
Income (Loss) before Income and Mining Tax and Other Items | 19 | (87) | 46 | (156) | ||
Capital Expenditures | 41 | 86 | 99 | 266 | ||
South America | Operating Segments | Yanacocha | ||||||
Segment Information | ||||||
Sales | 176 | 195 | 504 | 600 | ||
Costs applicable to sales | 150 | 148 | 403 | 396 | ||
Depreciation and amortization | 38 | 92 | 108 | 220 | ||
Advanced Projects, Research and Development, and Exploration | 11 | 6 | 23 | 26 | ||
Income (Loss) before Income and Mining Tax and Other Items | (38) | (66) | (90) | (96) | ||
Capital Expenditures | 12 | 26 | 32 | 64 | ||
South America | Operating Segments | Merian | ||||||
Segment Information | ||||||
Sales | 162 | 445 | ||||
Costs applicable to sales | 62 | 174 | ||||
Depreciation and amortization | 22 | 69 | 1 | |||
Advanced Projects, Research and Development, and Exploration | 3 | 7 | 11 | 21 | ||
Income (Loss) before Income and Mining Tax and Other Items | 75 | (8) | 189 | (22) | ||
Capital Expenditures | 29 | 60 | 67 | 202 | ||
South America | Operating Segments | Other South America | ||||||
Segment Information | ||||||
Depreciation and amortization | 3 | 3 | 10 | 10 | ||
Advanced Projects, Research and Development, and Exploration | 12 | 8 | 31 | 24 | ||
Income (Loss) before Income and Mining Tax and Other Items | (18) | (13) | (53) | (38) | ||
Australia | Operating Segments | ||||||
Segment Information | ||||||
Sales | 564 | 601 | 1,583 | 1,647 | ||
Costs applicable to sales | 291 | 286 | 824 | 849 | ||
Depreciation and amortization | 55 | 62 | 163 | 182 | ||
Advanced Projects, Research and Development, and Exploration | 13 | 7 | 29 | 19 | ||
Income (Loss) before Income and Mining Tax and Other Items | 192 | 219 | 524 | 552 | ||
Capital Expenditures | 47 | 58 | 139 | 146 | ||
Australia | Operating Segments | Boddington | ||||||
Segment Information | ||||||
Sales | 295 | 330 | 882 | 849 | ||
Costs applicable to sales | 155 | 172 | 473 | 480 | ||
Depreciation and amortization | 31 | 36 | 96 | 99 | ||
Advanced Projects, Research and Development, and Exploration | 1 | 2 | ||||
Income (Loss) before Income and Mining Tax and Other Items | 105 | 106 | 287 | 245 | ||
Capital Expenditures | 17 | 17 | 46 | 40 | ||
Australia | Operating Segments | Boddington | Gold | ||||||
Segment Information | ||||||
Sales | 236 | 287 | 726 | 741 | ||
Costs applicable to sales | 130 | 139 | 399 | 391 | ||
Depreciation and amortization | 26 | 30 | 81 | 82 | ||
Australia | Operating Segments | Boddington | Copper | ||||||
Segment Information | ||||||
Sales | 59 | 43 | 156 | 108 | ||
Costs applicable to sales | 25 | 33 | 74 | 89 | ||
Depreciation and amortization | 5 | 6 | 15 | 17 | ||
Australia | Operating Segments | Tanami | ||||||
Segment Information | ||||||
Sales | 148 | 151 | 363 | 450 | ||
Costs applicable to sales | 72 | 57 | 180 | 180 | ||
Depreciation and amortization | 17 | 20 | 48 | 62 | ||
Advanced Projects, Research and Development, and Exploration | 7 | 4 | 16 | 10 | ||
Income (Loss) before Income and Mining Tax and Other Items | 50 | 70 | 125 | 197 | ||
Capital Expenditures | 25 | 36 | 77 | 93 | ||
Australia | Operating Segments | Kalgoorlie | ||||||
Segment Information | ||||||
Sales | 121 | 120 | 338 | 348 | ||
Costs applicable to sales | 64 | 57 | 171 | 189 | ||
Depreciation and amortization | 5 | 5 | 14 | 14 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 1 | 6 | 4 | ||
Income (Loss) before Income and Mining Tax and Other Items | 47 | 56 | 142 | 138 | ||
Capital Expenditures | 5 | 5 | 13 | 13 | ||
Australia | Operating Segments | Other Asia Pacific | ||||||
Segment Information | ||||||
Depreciation and amortization | 2 | 1 | 5 | 7 | ||
Advanced Projects, Research and Development, and Exploration | 2 | 2 | 5 | 5 | ||
Income (Loss) before Income and Mining Tax and Other Items | (10) | (13) | (30) | (28) | ||
Capital Expenditures | 3 | |||||
Africa | Operating Segments | ||||||
Segment Information | ||||||
Sales | 245 | 271 | 790 | 768 | ||
Costs applicable to sales | 124 | 158 | 395 | 386 | ||
Depreciation and amortization | 54 | 63 | 166 | 156 | ||
Advanced Projects, Research and Development, and Exploration | 9 | 13 | 33 | 30 | ||
Income (Loss) before Income and Mining Tax and Other Items | 53 | 33 | 182 | 181 | ||
Capital Expenditures | 56 | 27 | 121 | 76 | ||
Africa | Operating Segments | Ahafo | ||||||
Segment Information | ||||||
Sales | 100 | 115 | 326 | 331 | ||
Costs applicable to sales | 57 | 95 | 193 | 212 | ||
Depreciation and amortization | 14 | 30 | 52 | 62 | ||
Advanced Projects, Research and Development, and Exploration | 6 | 8 | 22 | 20 | ||
Income (Loss) before Income and Mining Tax and Other Items | 21 | (20) | 55 | 30 | ||
Capital Expenditures | 51 | 22 | 104 | 61 | ||
Africa | Operating Segments | Akyem | ||||||
Segment Information | ||||||
Sales | 145 | 156 | 464 | 437 | ||
Costs applicable to sales | 67 | 63 | 202 | 174 | ||
Depreciation and amortization | 40 | 32 | 114 | 93 | ||
Advanced Projects, Research and Development, and Exploration | 3 | 4 | 9 | 8 | ||
Income (Loss) before Income and Mining Tax and Other Items | 35 | 56 | 135 | 158 | ||
Capital Expenditures | 5 | 5 | 17 | 15 | ||
Africa | Operating Segments | Other Africa | ||||||
Segment Information | ||||||
Depreciation and amortization | 1 | 1 | ||||
Advanced Projects, Research and Development, and Exploration | 1 | 2 | 2 | |||
Income (Loss) before Income and Mining Tax and Other Items | $ (3) | $ (3) | $ (8) | $ (7) | ||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
RECLAMATION AND REMEDIATION - Y
RECLAMATION AND REMEDIATION - Yanacocha (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
RECLAMATION AND REMEDIATION | ||||
Reclamation | $ 15 | |||
Reclamation accretion | $ 25 | $ 19 | 75 | $ 57 |
Total reclamation expense | 25 | 19 | 90 | 57 |
Remediation | 3 | 5 | 9 | 7 |
Remediation accretion | 1 | 1 | 4 | 3 |
Total remediation expense | 4 | 6 | 13 | 10 |
Reclamation and remediation expense | 29 | $ 25 | 103 | $ 67 |
Change in expense | ||||
Increase in reclamation expense | $ 6 | $ 33 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Change in reclamation liability | ||||
Balance at beginning of period | $ 1,792 | $ 1,300 | ||
Additions, changes in estimates and other | 16 | 6 | ||
Payments and other | (20) | (14) | ||
Accretion expense | $ 25 | $ 19 | 75 | 57 |
Balance at end of period | 1,863 | 1,349 | 1,863 | 1,349 |
Change in remediation liability | ||||
Balance at beginning of period | 298 | 318 | ||
Additions, changes in estimates and other | 3 | |||
Payments and other | (33) | (21) | ||
Accretion Expense | 1 | 1 | 4 | 3 |
Balance at end of period | $ 272 | $ 300 | $ 272 | $ 300 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Reclamation and remediation liability | ||||
Asset retirement obligation | $ 1,863 | $ 1,792 | $ 1,349 | $ 1,300 |
Environmental remediation obligations | 272 | 298 | $ 300 | $ 318 |
Other current liabilities | ||||
Reclamation and remediation liability | ||||
Reclamation obligation, current | 37 | 28 | ||
Remediation obligation, current | 32 | 33 | ||
Other noncurrent assets | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 76 | 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 | 25 | 14 | ||
Other noncurrent assets | Con Mine | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | 8 | 9 | ||
Investments, Noncurrent | San Jose Reservoir and various Nevada locations | Marketable equity securities | ||||
Reclamation and remediation liability | ||||
Asset retirement obligation restricted assets | $ 23 | $ 20 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
OTHER EXPENSE, NET | ||||
Restructuring and other | $ 2 | $ 7 | $ 10 | $ 26 |
Impairment of long-lived assets | 3 | 4 | ||
Acquisition cost adjustments | (3) | 9 | 2 | 11 |
Other | 2 | 5 | 17 | 13 |
Other expense, net | $ 1 | $ 21 | $ 32 | $ 54 |
OTHER INCOME, NET - Summary (De
OTHER INCOME, NET - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
OTHER INCOME, NET | ||||
Foreign currency exchange, net | $ (9) | $ (9) | $ (30) | $ (29) |
Gain on asset and investment sales, net | 5 | 5 | 21 | 109 |
Tanami insurance proceeds | 13 | |||
Interest | 9 | 2 | 19 | 7 |
Other | 5 | (2) | 9 | 6 |
Other Income, net | $ 10 | $ (4) | $ 32 | $ 93 |
OTHER INCOME, NET - Other infor
OTHER INCOME, NET - Other information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other information | ||||||
Gain on asset and investment sales, net | $ 5 | $ 5 | $ 21 | $ 109 | ||
Tanami insurance proceeds | $ 13 | |||||
Regis Resources Ltd. | ||||||
Other information | ||||||
Proceeds from sale of available for sale securities | $ 184 | |||||
Other income, net | ||||||
Other information | ||||||
Tanami insurance proceeds | $ 13 | |||||
Other income, net | Regis Resources Ltd. | ||||||
Other information | ||||||
Gain on sale of investments, net | $ 103 | |||||
Other income, net | Fort a' la Corne | ||||||
Other information | ||||||
Gain on asset and investment sales, net | $ 15 |
INCOME AND MINING TAXES - Tax E
INCOME AND MINING TAXES - Tax Expense Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciling item, percentage | ||||
Tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
Percentage depletion (as a percent) | 3.00% | (5.00%) | (8.00%) | (7.00%) |
Change in valuation allowance on deferred tax assets (as a percent) | (14.00%) | (2.00%) | 12.00% | 49.00% |
Mining and other taxes (as a percent) | 6.00% | 4.00% | 6.00% | |
U.S. tax effect of noncontrolling interest attributable to non-U.S. investees | 2.00% | 4.00% | 1.00% | 3.00% |
Tax impact on sale of assets (as a percent) | (1.00%) | (1.00%) | (5.00%) | |
Other (as a percent) | 1.00% | 2.00% | 2.00% | |
Income and mining tax expense (as a percent) | 26.00% | 40.00% | 43.00% | 83.00% |
Reconciling item, amount | ||||
Income (loss) before income and mining tax and other items | $ 276 | $ 223 | $ 805 | $ 672 |
Tax at statutory rate | 97 | 78 | 282 | 235 |
Percentage depletion | 10 | (11) | (64) | (47) |
Change in valuation allowance on deferred tax assets | (39) | (5) | 100 | 330 |
Mining and other taxes | (1) | 13 | 34 | 41 |
U.S. tax effect of minority interest attributable to non-U.S. investees | 5 | 10 | 5 | 20 |
Tax impact on sale of assets | (2) | (7) | (35) | |
Other | 2 | 5 | (1) | 11 |
Income and mining tax benefit (expense) | $ (72) | $ (90) | $ (349) | $ (555) |
INCOME AND MINING TAXES - Tax A
INCOME AND MINING TAXES - Tax Assessments (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016 | Jun. 30, 2016USD ($)subsidiary | |
Canadian Revenue Authority | |||
Examinations | |||
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% | ||
Australian Taxation Office ("ATO") | |||
Examinations | |||
Tax year under review | 2,011 | ||
Minimum | Australian Taxation Office ("ATO") | |||
Examinations | |||
Capital gains tax, assessment range | $ 65 | ||
Maximum | Australian Taxation Office ("ATO") | |||
Examinations | |||
Capital gains tax, assessment range | $ 85 |
INCOME AND MINING TAXES - Unrec
INCOME AND MINING TAXES - Unrecognized Tax Benefits (Details) $ in Millions | Sep. 30, 2017USD ($) |
Minimum | |
Unrecognized Tax Benefits, other information | |
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 10 |
Maximum | |
Unrecognized Tax Benefits, other information | |
Significant decrease in unrecognized tax benefits is reasonably possible, estimated range of change | $ 15 |
NET INCOME (LOSS) ATTRIBUTABL72
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (8) | $ (34) | $ (22) | $ (62) |
Yanacocha | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | (25) | (32) | (64) | (56) |
Merian | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ 17 | $ (2) | 43 | $ (6) |
Other | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (1) |
NET INCOME (LOSS) ATTRIBUTABL73
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Ownership (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Yanacocha | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Ownership/Economic interest in subsidiaries | 51.35% |
Yanacocha | Compañia de Minas Buenaventura | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 43.65% |
Yanacocha | 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) ATTRIBUTABL74
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS - Classified Assets and Liabilities of Consolidated VIEs (Details) - Primary Beneficiary - Merian - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets and liabilities of VIE | ||
Current assets | $ 170 | $ 167 |
Total assets | 924 | 921 |
Current liabilities | 47 | 43 |
Total liabilities | 59 | 54 |
Cash and cash equivalents | ||
Assets and liabilities of VIE | ||
Current assets | 41 | 50 |
Inventories | ||
Assets and liabilities of VIE | ||
Current assets | 69 | 57 |
Stockpiles and ore on leach pads | ||
Assets and liabilities of VIE | ||
Current assets | 18 | 23 |
Other current assets | ||
Assets and liabilities of VIE | ||
Current assets | 42 | 37 |
Other noncurrent assets | ||
Assets and liabilities of VIE | ||
Non-current assets | 7 | 8 |
Property, plant and mine development, net | ||
Assets and liabilities of VIE | ||
Non-current assets | 747 | 746 |
Other current liabilities | ||
Assets and liabilities of VIE | ||
Current liabilities | 47 | 43 |
Reclamation and remediation liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | $ 12 | $ 11 |
INCOME (LOSS) PER COMMON SHAR75
INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) attributable to Newmont stockholders: | ||||
Continuing operations | $ 213 | $ 169 | $ 474 | $ 171 |
Discontinued operations | (7) | (527) | (45) | (454) |
Net income (loss) attributable to Newmont stockholders | $ 206 | $ (358) | $ 429 | $ (283) |
Weighted average common shares (millions): | ||||
Basic | 533 | 531 | 533 | 530 |
Effect of employee stock-based awards | 3 | 2 | 1 | 2 |
Diluted | 536 | 533 | 534 | 532 |
Net income (loss) per common share: Basic: | ||||
Continuing operations (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.88 | $ 0.32 |
Discontinued operations (in dollars per share) | (0.01) | (0.99) | (0.08) | (0.85) |
Net income (loss) per common share, basic | 0.38 | (0.67) | 0.80 | (0.53) |
Net income (loss) per common share: Diluted | ||||
Continuing operations (in dollars per share) | 0.39 | 0.32 | 0.88 | 0.32 |
Discontinued operations (in dollars per share) | (0.01) | (0.99) | (0.08) | (0.85) |
Net income (loss) per common share, diluted | $ 0.38 | $ (0.67) | $ 0.80 | $ (0.53) |
INCOME (LOSS) PER COMMON SHAR76
INCOME (LOSS) PER COMMON SHARE - Anti-dilutive Shares (Details) - Options - $ / shares shares in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive securities | ||
Anti-dilutive shares | 1 | 2 |
Options to purchase common shares average exercise price (in dollars per share) | $ 51.76 | $ 51 |
EMPLOYEE PENSION AND OTHER BE77
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plans | ||||
Net periodic pension and other benefits costs | ||||
Service cost | $ 7 | $ 6 | $ 22 | $ 21 |
Interest cost | 11 | 11 | 33 | 34 |
Expected return on plan assets | (15) | (14) | (46) | (43) |
Amortization, net | 7 | 6 | 21 | 18 |
Settlements | 1 | 4 | 5 | 4 |
Total benefit cost | 11 | 13 | 35 | 34 |
Other Benefit Plans | ||||
Net periodic pension and other benefits costs | ||||
Service cost | 1 | 1 | ||
Interest cost | 1 | 1 | 3 | 3 |
Amortization, net | $ (1) | $ (1) | (5) | $ (4) |
Total benefit cost | $ (1) |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation: | ||||
Stock-based compensation | $ 18 | $ 17 | $ 53 | $ 54 |
Performance leveraged stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | 9 | 9 | 26 | 28 |
Restricted stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 9 | 7 | 26 | 22 |
Strategic stock units | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 1 | $ 1 | $ 4 |
FAIR VALUE ACCOUNTING - Recurri
FAIR VALUE ACCOUNTING - Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 2,969 | $ 2,756 |
Restricted assets | 77 | 68 |
Total assets | 3,337 | 3,044 |
Liabilities: | ||
Debt (1) | 4,612 | 4,882 |
Total liabilities | 4,877 | 5,107 |
Recurring | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 248 | 187 |
Recurring | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 83 | 113 |
Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 4 | 24 |
Recurring | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 3 | |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 2,969 | 2,756 |
Restricted assets | 77 | 68 |
Total assets | 3,321 | 3,013 |
Recurring | Level 1 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 83 | 113 |
Recurring | Level 2 | ||
Assets: | ||
Total assets | 3 | |
Liabilities: | ||
Debt (1) | 4,612 | 4,882 |
Total liabilities | 4,616 | 4,906 |
Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 4 | 24 |
Recurring | Level 2 | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 3 | |
Recurring | Level 3 | ||
Assets: | ||
Total assets | 13 | 31 |
Liabilities: | ||
Total liabilities | 261 | 201 |
Recurring | Level 3 | Boddington Contingent Consideration | ||
Liabilities: | ||
Contingent consideration | 13 | 14 |
Recurring | Level 3 | Holt royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 248 | 187 |
Recurring | Level 3 | Batu Hijau Contingent Consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 13 | 13 |
Recurring | Marketable equity securities | Extractive industries | ||
Assets: | ||
Marketable securities | 170 | 60 |
Recurring | Marketable equity securities | Extractive industries | Level 1 | ||
Assets: | ||
Marketable securities | 170 | 60 |
Recurring | Marketable equity securities | Other industries | ||
Assets: | ||
Marketable securities | 22 | 16 |
Recurring | Marketable equity securities | Other industries | Level 1 | ||
Assets: | ||
Marketable securities | 22 | 16 |
Recurring | Asset backed commercial paper | Marketable debt securities | ||
Assets: | ||
Marketable securities | 18 | |
Recurring | Asset backed commercial paper | Level 3 | Marketable debt securities | ||
Assets: | ||
Marketable securities | 18 | |
Carrying value | ||
Liabilities: | ||
Debt (1) | $ 4,038 | $ 4,599 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)oz$ / oz$ / lb | Dec. 31, 2016USD ($)oz$ / oz$ / lb | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 13 | $ 31 | $ 27 | $ 25 |
Financial liabilities, fair value | 261 | 201 | 246 | 139 |
Boddington Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 13 | 14 | 21 | 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 | 248 | 187 | $ 225 | $ 129 |
Batu Hijau Contingent Consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 13 | 13 | ||
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 | 87 | |||
Financial liabilities, fair value | $ 13 | $ 14 | ||
Discount Rate (as a percent) | 3.10% | 3.36% | ||
Short-term copper price (in dollars per pound) | $ / lb | 2.88 | 2.39 | ||
Long-term copper price (in dollars per pound) | $ / lb | 3 | 3 | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,278 | 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 | $ 248 | $ 187 | ||
Discount Rate (as a percent) | 2.99% | 3.36% | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,278 | 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 | 420 | 332 | ||
Level 3 | Monte Carlo | Holt royalty obligation | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 1,797 | 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 | 2.88 | 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 | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 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 | (18) | (8) |
Revaluation | 78 | 115 |
Balance at end of period, liabilities | 261 | 246 |
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 | 21 |
Boddington Contingent Consideration | Other expense, net | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (9) | |
Revaluation | 8 | 11 |
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 | 248 | 225 |
Holt royalty obligation | Income (loss) from discontinued operations | ||
Summary of changes in Level 3 financial liabilities | ||
Settlements | (9) | (8) |
Revaluation | 70 | 104 |
Batu Hijau Contingent Consideration | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 13 | |
Settlements | 0 | |
Balance at end of period, assets | 13 | |
Auction rate securities | Marketable debt 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 | Marketable debt securities | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | 18 |
Settlements | $ (18) | |
Revaluation | 2 | |
Balance at end of period, assets | $ 20 |
DERIVATIVE INSTRUMENTS - Foreig
DERIVATIVE INSTRUMENTS - Foreign Currency Derivative Contracts Outstanding (Details) - Australia - Cash Flow Hedges - AUD AUD in Millions | Sep. 30, 2017AUD$ / AUD |
Foreign exchange forward contracts | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 30 |
Average rate | $ / AUD | 0.93 |
Expected Maturity Date - 2017 | |
Derivative contracts | |
Derivative notional amount | AUD | AUD 24 |
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 | 5.00% |
DERIVATIVE INSTRUMENTS - Diesel
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) - Cash Flow Hedges - North America gal in Millions | 9 Months Ended |
Sep. 30, 2017$ / galgal | |
Diesel forward contracts maturing in 2017 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 6 |
Average rate ($/gallon) | $ / gal | 1.59 |
Expected hedge ratio | 69.00% |
Diesel forward contracts maturing in 2018 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 14 |
Average rate ($/gallon) | $ / gal | 1.60 |
Expected hedge ratio | 38.00% |
Diesel forward contracts maturing in 2019 | |
Derivative contracts | |
Diesel gallons (millions) | gal | 1 |
Average rate ($/gallon) | $ / gal | 1.61 |
Expected hedge ratio | 7.00% |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - Cash Flow Hedges - Designated - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other current assets | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 3 | $ 4 |
Other current assets | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | 3 | 4 |
Other current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 4 | 27 |
Other current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 4 | 23 |
Other current liabilities | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 4 | |
Other non-current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | |
Other non-current liabilities | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative contracts | ||||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 10 | |||
Cash Flow Hedges | Foreign exchange forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | $ 1 | $ 4 | 5 | $ 8 |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (5) | (9) | (20) | (29) |
Cash Flow Hedges | Diesel forward contracts | ||||
Derivative contracts | ||||
Gain (loss) recognized in Other comprehensive income (loss) (effective portion) | 5 | (1) | 5 | |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (effective portion) (1) | (4) | (3) | (18) | |
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (loss) (ineffective portion) (2) | 1 | |||
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) | $ (7) | $ (11) |
DERIVATIVE INSTRUMENTS - Batu H
DERIVATIVE INSTRUMENTS - Batu Hijau Contingent Consideration (Details) - Contingent Payment $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Batu Hijau Contingent Consideration | ||
Change in value of contingent consideration | $ 0 | $ 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 | 9 Months Ended |
Sep. 30, 2017lboz$ / oz$ / lb | |
Gold Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | oz | 75 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,285 |
Copper Contracts - Embedded Derivative | |
Provisional Gold and Copper Sales - Embedded derivatives | |
Provisional pricing quantity sales (in ounces or pounds) | lb | 20 |
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 2.96 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments | ||
Investments, Fair/Equity Basis | $ 292 | $ 227 |
TMAC Resources Inc. | ||
Investments | ||
Ownership interest (as a percent) | 28.80% | 29.00% |
Minera La Zanja S.R.L. | ||
Investments | ||
Ownership interest (as a percent) | 46.94% | 46.94% |
Euronimba | ||
Investments | ||
Ownership interest (as a percent) | 43.50% | 43.50% |
Investments, Current | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | $ 39 | $ 33 |
Unrealized Gain | 44 | 27 |
Unrealized Loss | (7) | (4) |
Fair/Equity Basis - Current Marketable Equity Securities | 76 | 56 |
Investments, Noncurrent | ||
Investments | ||
Other investments, at cost | 7 | 6 |
Investments, Cost/Equity Basis | 308 | 223 |
Unrealized Gain | 3 | 4 |
Unrealized Loss | (19) | |
Investments, Fair/Equity Basis | 292 | 227 |
Equity Method Investments | 169 | 183 |
Investments, Noncurrent | TMAC Resources Inc. | ||
Investments | ||
Equity Method Investments | 109 | 108 |
Investments, Noncurrent | Minera La Zanja S.R.L. | ||
Investments | ||
Equity Method Investments | 56 | 71 |
Investments, Noncurrent | Euronimba | ||
Investments | ||
Equity Method Investments | 4 | 4 |
Investments, Noncurrent | Continental | ||
Investments | ||
Cost/Equity Basis | 109 | |
Unrealized Loss | (19) | |
Fair/Equity Basis - Long-Term Marketable Securities | 90 | |
Investments, Noncurrent | Other marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 23 | |
Unrealized Gain | 3 | |
Fair/Equity Basis - Long-Term Marketable Securities | 26 | |
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 | 132 | 18 |
Unrealized Gain | 3 | 2 |
Unrealized Loss | (19) | |
Fair/Equity Basis - Long-Term Marketable Securities | $ 116 | $ 20 |
INVESTMENTS - Acquisitions and
INVESTMENTS - Acquisitions and Dispositions (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017USD ($)shares | May 31, 2017USD ($)shares | Apr. 30, 2017USD ($)shares | Sep. 30, 2017USD ($)shares | Sep. 30, 2017USD ($)shares | May 31, 2017CAD / shares | Apr. 30, 2017CAD / shares | |
Investments acquired | |||||||
Total consideration paid | $ | $ 113 | ||||||
Novo Resources Corp. | |||||||
Investments | |||||||
Percentage of interest sold | 66.60% | ||||||
Proceeds from sale of investment | $ | $ 15 | ||||||
Pre-tax gain on sale of investments | $ | $ 5 | ||||||
Shares held after transaction | 6,000,000 | 6,000,000 | |||||
Fort a' la Corne | Shore Gold | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 31.00% | ||||||
Sale of investments | |||||||
Shares received from sale of investment | 54,000,000 | ||||||
Warrants received from sale of investment | 1,000,000 | ||||||
Shore Gold | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 19.90% | ||||||
Investments acquired | |||||||
Marketable equity securities | $ | $ 15 | ||||||
Continental | |||||||
Investments | |||||||
Ownership interest held (as a percent) | 19.90% | ||||||
Investments acquired | |||||||
Shares acquired | 37,000,000 | ||||||
Price paid per share | CAD / shares | CAD 4 | ||||||
Total consideration paid | $ | $ 109 | ||||||
Goldstrike Resources | |||||||
Investments acquired | |||||||
Number of units acquired | 13,000,000 | ||||||
Number of common shares included in each unit acquired | 1 | ||||||
Number of warrants included in each unit acquired | 1 | ||||||
Price paid per share | CAD / shares | CAD 0.47 | ||||||
Total consideration paid | $ | $ 4 |
INVESTMENTS - Impairments and O
INVESTMENTS - Impairments and Other Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale securities | |||||
Impairments | |||||
Impairment of investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Increase (decrease) in fair value of marketable securities previously impaired | 7 | 30 | |||
Asset backed commercial paper | |||||
Investments | |||||
Gain (loss) realized on securities called at par | $ 0 | ||||
Gabriel Resources Ltd. | Available-for-sale securities | |||||
Impairments | |||||
Increase (decrease) in fair value of marketable securities previously impaired | $ 6 | 19 | |||
Pilot Gold | Available-for-sale securities | |||||
Impairments | |||||
Increase (decrease) in fair value of marketable securities previously impaired | $ 5 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory, net | ||
Materials and supplies | $ 426 | $ 391 |
In-process | 128 | 130 |
Concentrate and copper cathode | 92 | 67 |
Precious metals | 46 | 29 |
Total inventories | $ 692 | $ 617 |
STOCKPILES AND ORE ON LEACH P92
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 714 | $ 763 |
Long-term stockpiles and ore on leach pads | 1,796 | 1,864 |
Stockpiles and ore on leach pads | 2,510 | 2,627 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 374 | 393 |
Long-term stockpiles and ore on leach pads | 1,468 | 1,506 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 340 | 370 |
Long-term stockpiles and ore on leach pads | 328 | 358 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 452 | 421 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 70 | 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 | 29 | 9 |
Operating Segments | Cripple Creek & Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 309 | 369 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 255 | 367 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 21 | 27 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 414 | 394 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 11 | 19 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 125 | 113 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 405 | 386 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 82 | $ 114 |
STOCKPILES AND ORE ON LEACH P93
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Write-downs | ||||
Inventory write-downs | $ 158 | $ 207 | ||
Stockpiles and ore on leach pads | Carlin | ||||
Write-downs | ||||
Inventory write-downs | $ 28 | $ 12 | 62 | 69 |
Stockpiles and ore on leach pads | Twin Creeks | ||||
Write-downs | ||||
Inventory write-downs | 16 | 1 | 32 | 14 |
Stockpiles and ore on leach pads | Yanacocha | ||||
Write-downs | ||||
Inventory write-downs | 28 | 77 | 69 | 164 |
Stockpiles and ore on leach pads | Akyem | ||||
Write-downs | ||||
Inventory write-downs | 11 | 19 | ||
Stockpiles and ore on leach pads | Ahafo | ||||
Write-downs | ||||
Inventory write-downs | 47 | 18 | 47 | |
Stockpiles and ore on leach pads | Costs applicable to sales | ||||
Write-downs | ||||
Inventory write-downs | 60 | 92 | 146 | 199 |
Stockpiles and ore on leach pads | Depreciation and Amortization | ||||
Write-downs | ||||
Inventory write-downs | $ 23 | $ 45 | $ 54 | $ 95 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) - USD ($) | Sep. 30, 2017 | May 31, 2017 |
Scheduled minimum debt repayments | ||
Remainder of 2017 | $ 0 | |
2,018 | 0 | |
2,019 | 626,000,000 | |
2,020 | 0 | |
2,021 | 0 | |
Debt repayments, thereafter | 3,466,000,000 | |
Scheduled minimum capital lease repayments | ||
Remainder of 2017 | 1,000,000 | |
2,018 | 4,000,000 | |
2,019 | 3,000,000 | |
2,020 | 1,000,000 | |
2,021 | 1,000,000 | |
Capital lease repayments, thereafter | $ 2,000,000 | |
Corporate Revolving Credit Facilities | ||
Amendments | ||
Line of credit facility maximum borrowing capacity | $ 3,000,000,000 |
DEBT - Payments (Details)
DEBT - Payments (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
DEBT | |||
Debt payments | $ 579 | $ 777 | |
2017 Convertible Senior Notes | |||
DEBT | |||
Debt payments | $ 575 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other current liabilities: | ||
Accrued operating costs | $ 109 | $ 99 |
Reclamation and remediation liabilities | 69 | 61 |
Accrued capital expenditures | 63 | 53 |
Accrued interest | 62 | 57 |
Royalties | 34 | 52 |
Holt royalty obligation | 14 | 13 |
Taxes other than income and mining | 8 | 8 |
Boddington contingent consideration | 6 | 3 |
Derivative instruments | 4 | 27 |
Other | 9 | 34 |
Other current liabilities, total | 378 | 407 |
Other long-term liabilities: | ||
Holt property royalty | 234 | 174 |
Income and mining taxes | 48 | 50 |
Power supply agreements | 32 | 31 |
Social development obligations | 24 | 25 |
Boddington contingent consideration | 7 | 11 |
Other | 12 | 35 |
Other long-term liabilities, total | $ 357 | $ 326 |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in Equity | ||||
Balance at beginning of period | $ 11,874 | |||
Other comprehensive income (loss) | $ 26 | $ 39 | 42 | $ 32 |
Net income (loss) attributable to Newmont stockholders | 206 | (358) | 429 | (283) |
Net income (loss) attributable to noncontrolling interests | 8 | (45) | 22 | (167) |
Acquisition of noncontrolling interests | (19) | |||
Balance at end of period | 12,231 | 14,109 | 12,231 | 14,109 |
Payments of distributions to noncontrolling interests | 119 | |||
Funding from noncontrolling interests paid | 70 | 58 | ||
Common Stock | ||||
Changes in Equity | ||||
Balance at beginning of period | 849 | 847 | ||
Stock-based awards | 4 | 2 | ||
Balance at end of period | 853 | 849 | 853 | 849 |
Additional Paid-in Capital | ||||
Changes in Equity | ||||
Balance at beginning of period | 9,490 | 9,427 | ||
Stock-based awards | 36 | 42 | ||
Balance at end of period | 9,526 | 9,469 | 9,526 | 9,469 |
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in Equity | ||||
Balance at beginning of period | (334) | (334) | ||
Other comprehensive income (loss) | 42 | 32 | ||
Balance at end of period | (292) | (302) | (292) | (302) |
Retained Earnings | ||||
Changes in Equity | ||||
Balance at beginning of period | 716 | 1,410 | ||
Net income (loss) attributable to Newmont stockholders | 429 | (283) | ||
Dividends paid | (94) | (41) | ||
Balance at end of period | 1,051 | 1,086 | 1,051 | 1,086 |
Noncontrolling Interests | ||||
Changes in Equity | ||||
Balance at beginning of period | 1,153 | 2,942 | ||
Net income (loss) attributable to noncontrolling interests | (22) | 167 | ||
Distributions declared to noncontrolling interests (1) | (110) | |||
Cash calls requested from noncontrolling interests (2) | 72 | 63 | ||
Dividends paid to noncontrolling interests | (146) | |||
Balance at end of period | $ 1,093 | $ 3,007 | 1,093 | 3,007 |
Noncontrolling Interests | Staatsolie | ||||
Changes in Equity | ||||
Cash calls requested from noncontrolling interests (2) | 72 | 63 | ||
Payments of distributions to noncontrolling interests | 70 | $ 58 | ||
Noncontrolling Interests | Merian | Staatsolie | ||||
Changes in Equity | ||||
Distributions declared to noncontrolling interests (1) | (110) | |||
Payments of distributions to noncontrolling interests | $ 119 |
RECLASSIFICATIONS OUT OF ACCU98
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | $ 11,874 | |||
Other comprehensive income (loss) | $ 26 | $ 39 | 42 | $ 32 |
Balance at end of period | 12,231 | 14,109 | 12,231 | 14,109 |
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 | (1) | |||
Reclassifications from accumulated other comprehensive income (loss) | (5) | |||
Other comprehensive income (loss) | (6) | |||
Balance at end of period | (107) | (107) | ||
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 | 12 | |||
Other comprehensive income (loss) | 12 | |||
Balance at end of period | 130 | 130 | ||
Pension and other post-retirement benefit adjustments | ||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Balance at beginning of period | (223) | |||
Change in other comprehensive income (loss) before reclassifications | (1) | |||
Reclassifications from accumulated other comprehensive income (loss) | 5 | 6 | 14 | 12 |
Other comprehensive income (loss) | 13 | |||
Balance at end of period | (210) | (210) | ||
Unrealized Gain (Loss) on 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 | 3 | |||
Reclassifications from accumulated other comprehensive income (loss) | 20 | |||
Other comprehensive income (loss) | 23 | |||
Balance at end of period | (105) | (105) | ||
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 | 13 | |||
Reclassifications from accumulated other comprehensive income (loss) | 29 | |||
Other comprehensive income (loss) | 42 | 32 | ||
Balance at end of period | $ (292) | $ (302) | $ (292) | $ (302) |
RECLASSIFICATIONS OUT OF ACCU99
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales (1) | [1] | $ 1,053 | $ 983 | $ 2,985 | $ 2,736 |
Other income, net | (10) | 4 | (32) | (93) | |
Depreciation and amortization | 327 | 335 | 928 | 892 | |
Interest expense, net | 56 | 64 | 187 | 204 | |
Total before tax | (276) | (223) | (805) | (672) | |
Tax benefit (expense) | 72 | 90 | 349 | 555 | |
Net of tax | (198) | 313 | (407) | 116 | |
Unrealized gain (loss) on marketable securities, net | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | (5) | ||||
Pension and other post-retirement benefit adjustments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 7 | 9 | 21 | 18 | |
Tax benefit (expense) | (2) | (3) | (7) | (6) | |
Net of tax | 5 | 6 | 14 | 12 | |
Accumulated defined benefit pension plans adjustment, amortization | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 6 | 5 | 16 | 14 | |
Accumulated defined benefit pension plans adjustment, settlements | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 1 | 4 | 5 | 4 | |
Unrealized Gain (Loss) on cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 20 | ||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Net of tax | 5 | 18 | 29 | (51) | |
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 | (5) | (5) | (103) | ||
Net of tax | (5) | (5) | (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 | (5) | (5) | (103) | ||
Reclassification Out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 7 | 16 | 30 | 57 | |
Tax benefit (expense) | (2) | (4) | (10) | (17) | |
Net of tax | 5 | 12 | 20 | 40 | |
Reclassification Out of Accumulated Other Comprehensive Income | Operating cash flow hedges | Unrealized Gain (Loss) on cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales (1) | 5 | 13 | 23 | 47 | |
Other income, net | (1) | ||||
Reclassification Out of Accumulated Other Comprehensive Income | Interest rate contracts | Unrealized Gain (Loss) on cash flow hedge instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Interest expense, net | $ 2 | $ 3 | $ 7 | $ 11 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSE100
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Decrease (increase) in operating assets: | ||
Trade and other accounts receivables | $ 77 | $ 34 |
Inventories, stockpiles and ore on leach pads | (162) | (243) |
Other assets | (11) | (63) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (8) | (16) |
Reclamation and remediation liabilities | (53) | (35) |
Employee-related liabilities | (81) | (79) |
Other accrued liabilities | (4) | (24) |
Net change in operating assets and liabilities | $ (242) | $ (426) |
CONDENSED CONSOLIDATING FINA101
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Sep. 30, 2017 |
Newmont USA | |
Condensed Financial Statements | |
Percent ownership held by Newmont | 100.00% |
CONDENSED CONSOLIDATING FINA102
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Condensed Consolidating Statement of Operations | |||||
Sales | $ 1,879 | $ 1,791 | $ 5,413 | $ 4,922 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 1,053 | 983 | 2,985 | 2,736 |
Depreciation and amortization | 327 | 335 | 928 | 892 | |
Reclamation and remediation | 29 | 25 | 103 | 67 | |
Exploration | 48 | 39 | 135 | 107 | |
Advanced projects, research and development | 41 | 34 | 99 | 105 | |
General and administrative | 58 | 63 | 171 | 178 | |
Impairment of long-lived assets | 3 | 4 | |||
Other expense, net | 1 | 21 | 32 | 54 | |
Total costs and expenses | 1,557 | 1,500 | 4,453 | 4,139 | |
Other income (expense): | |||||
Other income, net | 10 | (4) | 32 | 93 | |
Interest expense, net | (56) | (64) | (187) | (204) | |
Total other income (expense) | (46) | (68) | (155) | (111) | |
Income (loss) before income and mining tax and other items | 276 | 223 | 805 | 672 | |
Income and mining tax benefit (expense) | (72) | (90) | (349) | (555) | |
Equity income (loss) of affiliates | 1 | 2 | (4) | (8) | |
Net income (loss) from continuing operations | 205 | 135 | 452 | 109 | |
Net income (loss) from discontinued operations | (7) | (448) | (45) | (225) | |
Net income (loss) | 198 | (313) | 407 | (116) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations | 8 | 34 | 22 | 62 | |
Discontinued operations | (79) | (229) | |||
Net loss (income) attributable to noncontrolling interests | 8 | (45) | 22 | (167) | |
Net income (loss) attributable to Newmont stockholders | 206 | (358) | 429 | (283) | |
Comprehensive income (loss) | 224 | (274) | 449 | (84) | |
Comprehensive loss (income) attributable to noncontrolling interests | 8 | (45) | 22 | (167) | |
Comprehensive income (loss) attributable to Newmont stockholders | 232 | (319) | 471 | (251) | |
Eliminations | |||||
Other income (expense): | |||||
Interest income - intercompany | (89) | (55) | (182) | (134) | |
Interest expense - intercompany | 89 | 55 | 182 | 134 | |
Equity income (loss) of affiliates | (140) | 416 | (167) | 716 | |
Net income (loss) from continuing operations | (140) | 416 | (167) | 716 | |
Net income (loss) | (140) | 416 | (167) | 716 | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | (140) | 416 | (167) | 716 | |
Comprehensive income (loss) | (140) | 377 | (167) | 692 | |
Comprehensive income (loss) attributable to Newmont stockholders | (140) | 377 | (167) | 692 | |
Newmont Mining Corporation | Reportable Legal Entities | |||||
Costs and expenses | |||||
Depreciation and amortization | 1 | 1 | 3 | 3 | |
Total costs and expenses | 1 | 1 | 3 | 3 | |
Other income (expense): | |||||
Other income, net | 11 | 2 | 37 | 2 | |
Interest income - intercompany | 67 | 41 | 114 | 102 | |
Interest expense - intercompany | (11) | (13) | (33) | (31) | |
Interest expense, net | (51) | (61) | (172) | (196) | |
Total other income (expense) | 16 | (31) | (54) | (123) | |
Income (loss) before income and mining tax and other items | 15 | (32) | (57) | (126) | |
Income and mining tax benefit (expense) | (5) | 11 | 20 | 44 | |
Equity income (loss) of affiliates | 196 | (338) | 466 | (200) | |
Net income (loss) from continuing operations | 206 | (359) | 429 | (282) | |
Net income (loss) | 206 | (359) | 429 | (282) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | 206 | (359) | 429 | (282) | |
Comprehensive income (loss) | 232 | (319) | 471 | (251) | |
Comprehensive income (loss) attributable to Newmont stockholders | 232 | (319) | 471 | (251) | |
Newmont USA | Reportable Legal Entities | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 494 | 537 | 1,414 | 1,467 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 318 | 308 | 883 | 898 | |
Depreciation and amortization | 94 | 80 | 255 | 240 | |
Reclamation and remediation | 4 | 3 | 11 | 10 | |
Exploration | 10 | 10 | 32 | 25 | |
Advanced projects, research and development | 10 | 4 | 13 | 9 | |
General and administrative | 18 | 25 | 53 | 65 | |
Other expense, net | 7 | 8 | 21 | ||
Total costs and expenses | 454 | 437 | 1,255 | 1,268 | |
Other income (expense): | |||||
Other income, net | 2 | 5 | 5 | 7 | |
Interest income - intercompany | 11 | 35 | |||
Interest expense - intercompany | (4) | ||||
Interest expense, net | (5) | (2) | (8) | (5) | |
Total other income (expense) | 8 | 3 | 28 | 2 | |
Income (loss) before income and mining tax and other items | 48 | 103 | 187 | 201 | |
Income and mining tax benefit (expense) | (18) | (23) | (40) | (42) | |
Equity income (loss) of affiliates | (52) | (78) | (286) | (525) | |
Net income (loss) from continuing operations | (22) | 2 | (139) | (366) | |
Net income (loss) | (22) | 2 | (139) | (366) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Net income (loss) attributable to Newmont stockholders | (22) | 2 | (139) | (366) | |
Comprehensive income (loss) | (14) | 8 | (124) | (341) | |
Comprehensive income (loss) attributable to Newmont stockholders | (14) | 8 | (124) | (341) | |
Other Subsidiaries | Reportable Legal Entities | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 1,385 | 1,254 | 3,999 | 3,455 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 735 | 675 | 2,102 | 1,838 | |
Depreciation and amortization | 232 | 254 | 670 | 649 | |
Reclamation and remediation | 25 | 22 | 92 | 57 | |
Exploration | 38 | 29 | 103 | 82 | |
Advanced projects, research and development | 31 | 30 | 86 | 96 | |
General and administrative | 40 | 38 | 118 | 113 | |
Other expense, net | 1 | 14 | 24 | 33 | |
Total costs and expenses | 1,102 | 1,062 | 3,195 | 2,868 | |
Other income (expense): | |||||
Other income, net | (3) | (11) | (10) | 84 | |
Interest income - intercompany | 11 | 14 | 33 | 32 | |
Interest expense - intercompany | (78) | (42) | (145) | (103) | |
Interest expense, net | (1) | (7) | (3) | ||
Total other income (expense) | (70) | (40) | (129) | 10 | |
Income (loss) before income and mining tax and other items | 213 | 152 | 675 | 597 | |
Income and mining tax benefit (expense) | (49) | (78) | (329) | (557) | |
Equity income (loss) of affiliates | (3) | 2 | (17) | 1 | |
Net income (loss) from continuing operations | 161 | 76 | 329 | 41 | |
Net income (loss) from discontinued operations | (7) | (448) | (45) | (225) | |
Net income (loss) | 154 | (372) | 284 | (184) | |
Net loss (income) attributable to noncontrolling interests, net of tax | |||||
Continuing operations | 8 | 34 | 22 | 62 | |
Discontinued operations | (79) | (229) | |||
Net loss (income) attributable to noncontrolling interests | 8 | (45) | 22 | (167) | |
Net income (loss) attributable to Newmont stockholders | 162 | (417) | 306 | (351) | |
Comprehensive income (loss) | 146 | (340) | 269 | (184) | |
Comprehensive loss (income) attributable to noncontrolling interests | 8 | (45) | 22 | (167) | |
Comprehensive income (loss) attributable to Newmont stockholders | $ 154 | $ (385) | $ 291 | $ (351) | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINA103
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | $ 1,596 | $ 1,333 | ||
Net cash provided by (used in) operating activities of discontinued operations | (12) | 826 | ||
Net cash provided by (used in) operating activities | 1,584 | 2,159 | ||
Investing activities: | ||||
Additions to property, plant and mine development | $ (194) | $ (269) | (557) | (832) |
Proceeds from sales of investments | 34 | 184 | ||
Purchases of investments | (113) | |||
Other | 9 | (13) | ||
Net cash provided by (used in) investing activities of continuing operations | (627) | (661) | ||
Net cash provided by (used in) investing activities of discontinued operations | (41) | |||
Net cash provided by (used in) investing activities | (627) | (702) | ||
Financing activities: | ||||
Repayment of debt | (579) | (777) | ||
Distributions to noncontrolling interests | (119) | |||
Dividends paid to common stockholders | (94) | (41) | ||
Funding from noncontrolling interests | 70 | 58 | ||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) | ||
Dividends paid to noncontrolling interests | (146) | |||
Acquisition of noncontrolling interests | (19) | |||
Other | (13) | (1) | ||
Net cash provided by (used in) financing activities of continuing operations | (748) | (932) | ||
Net cash provided by (used in) financing activities of discontinued operations | (319) | |||
Net cash provided by (used in) financing activities | (748) | (1,251) | ||
Effect of exchange rate changes on cash | 4 | 4 | ||
Net change in cash and cash equivalents | 213 | 210 | ||
Less net cash provided by (used in) Batu Hijau discontinued operations | 474 | |||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 213 | (264) | ||
Cash and cash equivalents at beginning of period | 2,756 | 2,363 | ||
Cash and cash equivalents at end of period | 2,969 | 2,099 | 2,969 | 2,099 |
Eliminations | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | (862) | |||
Net cash provided by (used in) operating activities | (862) | |||
Financing activities: | ||||
Dividends paid to common stockholders | 862 | |||
Net cash provided by (used in) financing activities of continuing operations | 862 | |||
Net cash provided by (used in) financing activities | 862 | |||
Newmont Mining Corporation | Reportable Legal Entities | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | (111) | 775 | ||
Net cash provided by (used in) operating activities | (111) | 775 | ||
Investing activities: | ||||
Purchases of investments | (109) | |||
Net cash provided by (used in) investing activities of continuing operations | (109) | |||
Net cash provided by (used in) investing activities | (109) | |||
Financing activities: | ||||
Repayment of debt | (575) | (773) | ||
Dividends paid to common stockholders | (94) | (41) | ||
Net intercompany borrowings (repayments) | 892 | 39 | ||
Other | (3) | |||
Net cash provided by (used in) financing activities of continuing operations | 220 | (775) | ||
Net cash provided by (used in) financing activities | 220 | (775) | ||
Newmont USA | Reportable Legal Entities | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | 375 | 459 | ||
Net cash provided by (used in) operating activities | 375 | 459 | ||
Investing activities: | ||||
Additions to property, plant and mine development | (171) | (182) | ||
Other | 2 | |||
Net cash provided by (used in) investing activities of continuing operations | (169) | (182) | ||
Net cash provided by (used in) investing activities | (169) | (182) | ||
Financing activities: | ||||
Repayment of debt | (2) | (2) | ||
Dividends paid to common stockholders | (862) | |||
Payments for withholding of employee taxes related to stock-based compensation | (13) | (6) | ||
Net intercompany borrowings (repayments) | (192) | (587) | ||
Net cash provided by (used in) financing activities of continuing operations | (207) | (1,457) | ||
Net cash provided by (used in) financing activities | (207) | (1,457) | ||
Net change in cash and cash equivalents | (1) | (1,180) | ||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | (1) | (1,180) | ||
Cash and cash equivalents at beginning of period | 1 | 1,181 | ||
Cash and cash equivalents at end of period | 1 | 1 | ||
Other Subsidiaries | Reportable Legal Entities | ||||
Operating activities: | ||||
Net cash provided by (used in) continuing operating activities | 1,332 | 961 | ||
Net cash provided by (used in) operating activities of discontinued operations | (12) | 826 | ||
Net cash provided by (used in) operating activities | 1,320 | 1,787 | ||
Investing activities: | ||||
Additions to property, plant and mine development | (386) | (650) | ||
Proceeds from sales of investments | 34 | 184 | ||
Purchases of investments | (4) | |||
Other | 7 | (13) | ||
Net cash provided by (used in) investing activities of continuing operations | (349) | (479) | ||
Net cash provided by (used in) investing activities of discontinued operations | (41) | |||
Net cash provided by (used in) investing activities | (349) | (520) | ||
Financing activities: | ||||
Repayment of debt | (2) | (2) | ||
Distributions to noncontrolling interests | (119) | |||
Funding from noncontrolling interests | 70 | 58 | ||
Dividends paid to noncontrolling interests | (146) | |||
Acquisition of noncontrolling interests | (19) | |||
Net intercompany borrowings (repayments) | (700) | 548 | ||
Other | (10) | (1) | ||
Net cash provided by (used in) financing activities of continuing operations | (761) | 438 | ||
Net cash provided by (used in) financing activities of discontinued operations | (319) | |||
Net cash provided by (used in) financing activities | (761) | 119 | ||
Effect of exchange rate changes on cash | 4 | 4 | ||
Net change in cash and cash equivalents | 214 | 1,390 | ||
Less net cash provided by (used in) Batu Hijau discontinued operations | 474 | |||
Net change in cash and cash equivalents excluding cash and cash equivalents related to Batu Hijau discontinued operations | 214 | 916 | ||
Cash and cash equivalents at beginning of period | 2,755 | 1,182 | ||
Cash and cash equivalents at end of period | $ 2,969 | $ 2,098 | $ 2,969 | $ 2,098 |
CONDENSED CONSOLIDATING FINA104
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 2,969 | $ 2,756 | $ 2,099 | $ 2,363 |
Trade receivables | 131 | 160 | ||
Other accounts receivables | 116 | 183 | ||
Investments | 76 | 56 | ||
Inventories | 692 | 617 | ||
Stockpiles and ore on leach pads | 714 | 763 | ||
Other current assets | 110 | 142 | ||
Current assets | 4,808 | 4,677 | ||
Property, plant and mine development, net | 12,173 | 12,485 | ||
Investments | 292 | 227 | ||
Stockpiles and ore on leach pads | 1,796 | 1,864 | ||
Deferred income tax assets | 1,288 | 1,331 | ||
Other non-current assets | 479 | 447 | ||
Total assets | 20,836 | 21,031 | ||
Liabilities | ||||
Debt | 4 | 566 | ||
Accounts payable | 315 | 320 | ||
Employee-related benefits | 258 | 304 | ||
Income and mining taxes | 195 | 153 | ||
Other current liabilities | 378 | 407 | ||
Current liabilities | 1,150 | 1,750 | ||
Debt | 4,046 | 4,049 | ||
Reclamation and remediation liabilities | 2,066 | 2,029 | ||
Deferred income tax liabilities | 606 | 592 | ||
Employee-related benefits | 380 | 411 | ||
Other non-current liabilities | 357 | 326 | ||
Total liabilities | 8,605 | 9,157 | ||
Equity | ||||
Newmont stockholders' equity | 11,138 | 10,721 | ||
Noncontrolling interests | 1,093 | 1,153 | ||
Total equity | 12,231 | 11,874 | 14,109 | |
Total liabilities and equity | 20,836 | 21,031 | ||
Eliminations | ||||
Assets | ||||
Intercompany receivable | (30,816) | (24,667) | ||
Current assets | (30,816) | (24,667) | ||
Property, plant and mine development, net | (30) | (34) | ||
Investments in subsidiaries | (12,879) | (13,759) | ||
Deferred income tax assets | (490) | (490) | ||
Non-current intercompany receivable | (3,271) | (3,780) | ||
Total assets | (47,486) | (42,730) | ||
Liabilities | ||||
Intercompany payable | (30,816) | (24,667) | ||
Current liabilities | (30,816) | (24,667) | ||
Deferred income tax liabilities | (490) | (490) | ||
Non-current intercompany payable | (3,301) | (3,814) | ||
Total liabilities | (34,607) | (28,971) | ||
Equity | ||||
Newmont stockholders' equity | (12,879) | (13,759) | ||
Total equity | (12,879) | (13,759) | ||
Total liabilities and equity | (47,486) | (42,730) | ||
Newmont Mining Corporation | Reportable Legal Entities | ||||
Assets | ||||
Intercompany receivable | 9,999 | 7,255 | ||
Current assets | 9,999 | 7,255 | ||
Property, plant and mine development, net | 19 | 20 | ||
Investments | 91 | |||
Investments in subsidiaries | 12,686 | 13,222 | ||
Deferred income tax assets | 490 | 477 | ||
Non-current intercompany receivable | 1,826 | 2,219 | ||
Total assets | 25,111 | 23,193 | ||
Liabilities | ||||
Debt | 560 | |||
Intercompany payable | 9,790 | 7,720 | ||
Other current liabilities | 62 | 62 | ||
Current liabilities | 9,852 | 8,342 | ||
Debt | 4,040 | 4,038 | ||
Deferred income tax liabilities | 9 | |||
Non-current intercompany payable | 81 | 83 | ||
Total liabilities | 13,973 | 12,472 | ||
Equity | ||||
Newmont stockholders' equity | 11,138 | 10,721 | ||
Total equity | 11,138 | 10,721 | ||
Total liabilities and equity | 25,111 | 23,193 | ||
Newmont USA | Reportable Legal Entities | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | 1,181 | |
Trade receivables | 22 | 21 | ||
Other accounts receivables | 2 | |||
Intercompany receivable | 7,207 | 6,065 | ||
Inventories | 166 | 155 | ||
Stockpiles and ore on leach pads | 211 | 224 | ||
Other current assets | 36 | 83 | ||
Current assets | 7,642 | 6,551 | ||
Property, plant and mine development, net | 3,053 | 3,144 | ||
Investments | 9 | 8 | ||
Investments in subsidiaries | 193 | 537 | ||
Stockpiles and ore on leach pads | 638 | 599 | ||
Deferred income tax assets | 65 | 48 | ||
Non-current intercompany receivable | 495 | 606 | ||
Other non-current assets | 224 | 224 | ||
Total assets | 12,319 | 11,717 | ||
Liabilities | ||||
Debt | 1 | 3 | ||
Accounts payable | 53 | 62 | ||
Intercompany payable | 5,103 | 4,795 | ||
Employee-related benefits | 112 | 148 | ||
Income and mining taxes | 14 | 13 | ||
Other current liabilities | 90 | 109 | ||
Current liabilities | 5,373 | 5,130 | ||
Debt | 2 | 4 | ||
Reclamation and remediation liabilities | 253 | 247 | ||
Deferred income tax liabilities | 95 | 93 | ||
Employee-related benefits | 220 | 269 | ||
Other non-current liabilities | 20 | 21 | ||
Total liabilities | 5,963 | 5,764 | ||
Equity | ||||
Newmont stockholders' equity | 6,356 | 5,953 | ||
Total equity | 6,356 | 5,953 | ||
Total liabilities and equity | 12,319 | 11,717 | ||
Other Subsidiaries | Reportable Legal Entities | ||||
Assets | ||||
Cash and cash equivalents | 2,969 | 2,755 | $ 2,098 | $ 1,182 |
Trade receivables | 109 | 139 | ||
Other accounts receivables | 116 | 181 | ||
Intercompany receivable | 13,610 | 11,347 | ||
Investments | 76 | 56 | ||
Inventories | 526 | 462 | ||
Stockpiles and ore on leach pads | 503 | 539 | ||
Other current assets | 74 | 59 | ||
Current assets | 17,983 | 15,538 | ||
Property, plant and mine development, net | 9,131 | 9,355 | ||
Investments | 192 | 219 | ||
Stockpiles and ore on leach pads | 1,158 | 1,265 | ||
Deferred income tax assets | 1,223 | 1,296 | ||
Non-current intercompany receivable | 950 | 955 | ||
Other non-current assets | 255 | 223 | ||
Total assets | 30,892 | 28,851 | ||
Liabilities | ||||
Debt | 3 | 3 | ||
Accounts payable | 262 | 258 | ||
Intercompany payable | 15,923 | 12,152 | ||
Employee-related benefits | 146 | 156 | ||
Income and mining taxes | 181 | 140 | ||
Other current liabilities | 226 | 236 | ||
Current liabilities | 16,741 | 12,945 | ||
Debt | 4 | 7 | ||
Reclamation and remediation liabilities | 1,813 | 1,782 | ||
Deferred income tax liabilities | 1,001 | 980 | ||
Employee-related benefits | 160 | 142 | ||
Non-current intercompany payable | 3,220 | 3,731 | ||
Other non-current liabilities | 337 | 305 | ||
Total liabilities | 23,276 | 19,892 | ||
Equity | ||||
Newmont stockholders' equity | 6,523 | 7,806 | ||
Noncontrolling interests | 1,093 | 1,153 | ||
Total equity | 7,616 | 8,959 | ||
Total liabilities and equity | $ 30,892 | $ 28,851 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | Feb. 15, 2017 | Feb. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Accrual for future reclamation costs | |||||||
Increase in asset retirement obligation | $ 6 | $ 33 | |||||
Asset retirement obligation | 1,863 | 1,863 | $ 1,792 | $ 1,349 | $ 1,300 | ||
Environmental remediation obligations | 272 | $ 272 | 298 | $ 300 | $ 318 | ||
Yanacocha | |||||||
Accrual for future reclamation costs | |||||||
Modification period | 1 year | ||||||
Compliance period | 3 years | ||||||
Frequency of closure plan updates (in years) | 5 years | ||||||
Other current liabilities | |||||||
Accrual for future reclamation costs | |||||||
Reclamation obligation, current | $ 37 | $ 37 | $ 28 | ||||
Reclamation and remediation liabilities | |||||||
Accrual for future reclamation costs | |||||||
Range of reclamation and remediation liabilities upper limit | 45.00% | 45.00% | |||||
Range of reclamation and remediation liabilities lower limit | 0.00% | 0.00% |
COMMITMENTS AND CONTINGENCIE106
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Loss contingencies | ||||||
Environmental remediation obligations | $ 272 | $ 298 | $ 300 | $ 318 | ||
Newmont USA | ||||||
Loss contingencies | ||||||
Percent ownership held by Newmont | 100.00% | |||||
Newmont USA | Environmental remediation | Ross-Adams Mine Site | ||||||
Loss contingencies | ||||||
Damages sought | $ 0.3 | |||||
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 | $ 184 |
COMMITMENTS AND CONTINGENCIE107
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 | Sep. 30, 2017plaintiff | Dec. 31, 2011complaint | |
Yanacocha | South America | Choropampa | |||||||
Loss contingencies | |||||||
Elemental mercury spilled (in kilograms) | kg | 151 | ||||||
Yanacocha | 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 | ||||||
Yanacocha | South America | Environmental remediation | Cajamarca, Peru local courts | Choropampa | |||||||
Loss contingencies | |||||||
Remaining plaintiffs in the Yanacocha matters | 200 | ||||||
Yanacocha | 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 | ||||||
Yanacocha | South America | Environmental remediation | Cajamarca, Peru local courts | Pending Litigation | Choropampa | |||||||
Loss contingencies | |||||||
Number of complaints to nullify settlements | complaint | 23 | ||||||
Yanacocha | |||||||
Loss contingencies | |||||||
Percent ownership held by Newmont | 51.35% |
COMMITMENTS AND CONTINGENCIE108
COMMITMENTS AND CONTINGENCIES - Administrative Matters (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Nov. 30, 2015USD ($)judgment | Sep. 30, 2017USD ($)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 | ||
Yanacocha | OEFA | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
Yanacocha | OEFA | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 112,670 | ||
Yanacocha | Environmental remediation | Minimum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 0 | ||
Yanacocha | Environmental remediation | Maximum | |||
Loss contingencies | |||
Potential fine for alleged violations | $ | $ 175 | ||
Yanacocha | Environmental remediation | Water Authority | |||
Loss contingencies | |||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.00122 | ||
Yanacocha | Environmental remediation | Water Authority | Minimum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 0 | ||
Yanacocha | Environmental remediation | Water Authority | Maximum | |||
Loss contingencies | |||
Number of units with alleged violations | item | 30,000 |
COMMITMENTS AND CONTINGENCIE109
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 | Jun. 30, 2007 |
North America | Pending Litigation | |||||
Loss contingencies | |||||
Uranium mining moratorium term | 3 years | ||||
Jacob Safra | NWG Investments Inc. | |||||
Loss contingencies | |||||
Ownership/Economic interest | 100.00% | ||||
NWG Investments Inc. | NewWest Gold | |||||
Loss contingencies | |||||
Ownership/Economic interest | 86.00% | ||||
NWG Investments Inc. | NWG New York Case | Pending Litigation | |||||
Loss contingencies | |||||
Damages sought | $ | $ 750 | ||||
NWG Investments Inc. | NWG Ontario Complaint | Pending Litigation | |||||
Loss contingencies | |||||
Damages sought | CAD | CAD 1.2 | ||||
Fronteer | Aurora | |||||
Loss contingencies | |||||
Ownership/Economic interest | 47.00% |
COMMITMENTS AND CONTINGENCIE110
COMMITMENTS AND CONTINGENCIES - Investigations (Details) | 1 Months Ended |
Mar. 31, 2016 | |
Compliance Review Investigations | |
Investigations | |
Agreement term | 1 year |
COMMITMENTS AND CONTINGENCIE111
COMMITMENTS AND CONTINGENCIES - Royalty Obligations (Details) $ in Millions | Jun. 25, 2009USD ($)$ / oz | Jun. 30, 2010 | Sep. 30, 2017USD ($)location | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Number of mines subject to minimum royalty obligations | location | 1 | ||||
Corporate and other | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Remainder of 2017 | $ 30 | ||||
2,018 | 30 | ||||
2,019 | 31 | ||||
2,020 | 33 | ||||
2,021 | 34 | ||||
Thereafter | 35 | ||||
Boddington | |||||
Minimum Royalty Obligations | |||||
Contingent consideration expected to be paid in next 12 months | 6 | ||||
Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
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 | 33.33% | ||||
Contingent consideration paid to date | 87 | ||||
Contingent consideration cash paid | 9 | $ 0 | |||
Contingent consideration range low | 0 | ||||
Contingent consideration, high end of range | 13 | ||||
Maximum | Boddington | Royalty Obligations | |||||
Minimum Royalty Obligations | |||||
Boddington contingent consideration liability | $ 100 | $ 100 |
COMMITMENTS AND CONTINGENCIE112
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Corporate and other | ||
Other commitments | ||
Letters of credit surety bonds and bank guarantees, outstanding | $ 2,323 | $ 2,227 |