Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 19, 2018 | |
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 | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 533,398,733 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Sales (Note 4) | $ 1,662 | $ 1,875 | $ 3,479 | $ 3,565 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 965 | 999 | 1,994 | 1,956 |
Depreciation and amortization | 279 | 310 | 580 | 610 | |
Reclamation and remediation (Note 5) | 37 | 43 | 65 | 72 | |
Exploration | 54 | 51 | 94 | 87 | |
Advanced projects, research and development | 36 | 32 | 70 | 58 | |
General and administrative | 63 | 58 | 122 | 113 | |
Other expense, net (Note 6) | 13 | 14 | 24 | 31 | |
Total costs and expenses | 1,447 | 1,507 | 2,949 | 2,927 | |
Other income (expense): | |||||
Other income, net (Note 7) | 139 | 31 | 160 | 22 | |
Interest expense, net of capitalized interest | (49) | (64) | (102) | (131) | |
Total other income (expense) | 90 | (33) | 58 | (109) | |
Income (loss) before income and mining tax and other items | 305 | 335 | 588 | 529 | |
Income and mining tax benefit (expense) (Note 8) | (18) | (166) | (123) | (277) | |
Equity income (loss) of affiliates | (7) | (3) | (16) | (5) | |
Net income (loss) from continuing operations | 280 | 166 | 449 | 247 | |
Net income (loss) from discontinued operations (Note 9) | 18 | (15) | 40 | (38) | |
Net income (loss) | 298 | 151 | 489 | 209 | |
Net loss (income) attributable to noncontrolling interests (Note 10) | (6) | 24 | (5) | 13 | |
Net income (loss) attributable to Newmont stockholders | 292 | 175 | 484 | 222 | |
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 274 | 190 | 444 | 260 | |
Discontinued operations | 18 | (15) | 40 | (38) | |
Net income (loss) attributable to Newmont stockholders | $ 292 | $ 175 | $ 484 | $ 222 | |
Net income (loss) per common share, Basic (Note 11): | |||||
Continuing operations (in dollars per share) | $ 0.52 | $ 0.36 | $ 0.84 | $ 0.49 | |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) | |
Net income (loss) per common share, basic (in dollars per share) | 0.55 | 0.33 | 0.91 | 0.42 | |
Net income (loss) per common share, Diluted (Note 11) | |||||
Continuing operations (in dollars per share) | 0.51 | 0.36 | 0.83 | 0.49 | |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) | |
Net income (loss) per common share, diluted (in dollars per share) | 0.54 | 0.33 | 0.90 | 0.42 | |
Cash dividends declared per common share | $ 0.14 | $ 0.05 | $ 0.28 | $ 0.10 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 298 | $ 151 | $ 489 | $ 209 |
Other comprehensive income (loss): | ||||
Change in marketable securities, net of tax of $-, $-, $- and $-, respectively | (1) | (4) | 1 | (11) |
Foreign currency translation adjustments | (1) | (4) | 4 | |
Change in pension and other post-retirement benefits, net of tax of $(2), $(1), $(3) and $(5), respectively | 4 | 3 | 9 | 9 |
Change in fair value of cash flow hedge instruments, net of tax of $(2), $(3), $(3) and $(7), respectively | 5 | 5 | 9 | 14 |
Other comprehensive income (loss) | 7 | 4 | 15 | 16 |
Comprehensive income (loss) | 305 | 155 | 504 | 225 |
Comprehensive income (loss) attributable to: | ||||
Comprehensive income (loss) attributable to Newmont stockholders | 299 | 179 | 499 | 238 |
Noncontrolling interests | 6 | (24) | 5 | (13) |
Comprehensive income (loss) | $ 305 | $ 155 | $ 504 | $ 225 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gain (loss) on marketable securities, tax | ||||
Change in pension and other post-retirement benefits, tax | (2) | (1) | (3) | (5) |
Change in fair value of cash flow hedge instruments, tax | $ (2) | $ (3) | $ (3) | $ (7) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net income (loss) | $ 489 | $ 209 |
Adjustments: | ||
Depreciation and amortization | 580 | 610 |
Stock-based compensation (Note 13) | 38 | 35 |
Reclamation and remediation | 61 | 68 |
Loss (income) from discontinued operations (Note 9) | (40) | 38 |
Deferred income taxes | (19) | 76 |
Gain on asset and investment sales, net | (99) | (16) |
Write-downs of inventory and stockpiles and ore on leach pads | 158 | 92 |
Other operating adjustments | 9 | 58 |
Net change in operating assets and liabilities (Note 23) | (510) | (268) |
Net cash provided by (used in) operating activities of continuing operations | 667 | 902 |
Net cash provided by (used in) operating activities of discontinued operations (1) | (5) | (9) |
Net cash provided by (used in) operating activities | 662 | 893 |
Investing activities: | ||
Additions to property, plant and mine development | (489) | (363) |
Acquisitions, net | (39) | |
Proceeds from sales of investments | 15 | 19 |
Purchases of investments | (6) | (113) |
Other | 2 | 17 |
Net cash provided by (used in) investing activities | (517) | (440) |
Financing activities: | ||
Dividends paid to common stockholders | (150) | (54) |
Repurchase of common stock | (70) | |
Distributions to noncontrolling interests | (69) | (80) |
Funding from noncontrolling interests | 52 | 46 |
Proceeds from sale of noncontrolling interests | 48 | |
Payments for withholding of employee taxes related to stock-based compensation | (39) | (13) |
Other | (3) | (6) |
Net cash provided by (used in) financing activities | (231) | (107) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2) | 2 |
Net change in cash, cash equivalents and restricted cash | (88) | 348 |
Cash, cash equivalents and restricted cash at beginning of period | 3,298 | 2,782 |
Cash, cash equivalents and restricted cash at end of period | 3,210 | 3,130 |
Discontinued operations disposed of by sale | ||
Adjustments: | ||
Loss (income) from discontinued operations (Note 9) | (40) | 38 |
Holt Royalty obligation | Holloway Mining Company | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Loss (income) from discontinued operations (Note 9) | (36) | 38 |
Net cash provided by (used in) operating activities of discontinued operations (1) | $ (5) | (6) |
Batu Hijau share sale and purchase agreement | PTNNT | Discontinued operations disposed of by sale | ||
Adjustments: | ||
Net cash provided by (used in) operating activities of discontinued operations (1) | $ (3) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Reconciliation of cash, cash equivalents and restricted cash: | ||||
Cash and cash equivalents | $ 3,127 | $ 3,259 | $ 3,105 | |
Restricted cash included in Other current | $ 1 | $ 2 | ||
Location of current restricted cash | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | ||
Restricted cash included in Other noncurrent | $ 82 | $ 23 | ||
Location of noncurrent restricted cash | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||
Total cash, cash equivalents and restricted cash | $ 3,210 | $ 3,298 | $ 3,130 | $ 2,782 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 3,127 | $ 3,259 |
Trade receivables (Note 4) | 133 | 124 |
Other accounts receivables | 101 | 113 |
Investments (Note 16) | 56 | 62 |
Inventories (Note 17) | 697 | 679 |
Stockpiles and ore on leach pads (Note 18) | 711 | 676 |
Other current assets | 142 | 153 |
Current assets | 4,967 | 5,066 |
Property, plant and mine development, net | 12,351 | 12,338 |
Investments (Note 16) | 353 | 280 |
Stockpiles and ore on leach pads (Note 18) | 1,837 | 1,848 |
Deferred income tax assets | 537 | 549 |
Other non-current assets | 610 | 565 |
Total assets | 20,655 | 20,646 |
LIABILITIES | ||
Lease and other financing obligations, current (Note 20) | 13 | 4 |
Accounts payable | 360 | 375 |
Employee-related benefits | 240 | 309 |
Income and mining taxes payable | 71 | 248 |
Other current liabilities (Note 21) | 396 | 462 |
Current liabilities | 1,080 | 1,398 |
Debt (Note 19) | 4,042 | 4,040 |
Lease and other financing obligations, noncurrent (Note 20) | 66 | 21 |
Reclamation and remediation liabilities (Note 5) | 2,369 | 2,345 |
Deferred income tax liabilities | 589 | 595 |
Employee-related benefits | 392 | 386 |
Other non-current liabilities (Note 21) | 284 | 342 |
Total liabilities | 8,822 | 9,127 |
Contingently redeemable noncontrolling interest (Note 10) | 48 | |
EQUITY | ||
Common stock | 857 | 855 |
Treasury stock | (69) | (30) |
Additional paid-in capital | 9,595 | 9,592 |
Accumulated other comprehensive income (loss) (Note 22) | (162) | (292) |
Retained earnings | 592 | 410 |
Newmont stockholders' equity | 10,813 | 10,535 |
Noncontrolling interests | 972 | 984 |
Total equity | 11,785 | 11,519 |
Total liabilities and equity | $ 20,655 | $ 20,646 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | Total |
Changes in Equity | |||||||
Cumulative-effect adjustment of adopting ASU No. 2016-01 | ASU No. 2016-01 | $ 115 | $ (115) | |||||
Sale of noncontrolling interest | $ 48 | ||||||
Contingently redeemable noncontrolling interest, Balance at end of period at Jun. 30, 2018 | 48 | ||||||
Balance at beginning of period at Dec. 31, 2017 | $ 855 | $ (30) | $ 9,592 | (292) | 410 | $ 984 | 11,519 |
Balance at beginning of period, shares at Dec. 31, 2017 | 534 | (1) | |||||
Changes in Equity | |||||||
Net income (loss) | 484 | 5 | 489 | ||||
Other comprehensive income (loss) | 15 | 15 | |||||
Dividends declared | (150) | (150) | |||||
Distributions declared to noncontrolling interests | (69) | (69) | |||||
Cash calls requested from noncontrolling interests | 52 | 52 | |||||
Repurchase and retirement of common stock | $ (3) | (30) | (37) | $ (70) | |||
Repurchase and retirement of common stock (in shares) | (2) | (1.9) | |||||
Withholding of employee taxes related to stock-based compensation | $ (39) | $ (39) | |||||
Withholding of employee taxes related to stock-based compensation (in shares) | (1) | 1 | |||||
Stock-based awards and related share issuances | $ 5 | 33 | $ 38 | ||||
Stock-based awards and related share issuances, shares | 3 | ||||||
Balance at end of period at Jun. 30, 2018 | $ 857 | $ (69) | $ 9,595 | $ (162) | $ 592 | $ 972 | $ 11,785 |
Balance at end of period, shares at Jun. 30, 2018 | 535 | (2) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 filed on February 22, 2018 on Form 10-K and revisions filed April 26, 2018 on Form 8-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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
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. Contingently Redeemable Noncontrolling Interest Certain noncontrolling interests in consolidated entities meet the definition of redeemable financial instruments if the ability to redeem the interest is outside of the control of the consolidating entity. In such cases, these financial instruments are required to be classified outside of permanent equity (referred to as temporary equity). Revenue Recognition The Company adopted ASC 606, Revenue from contracts with customers, on January 1, 2018. Changes to the accounting policy as a result of adoption are discussed below. Newmont generates revenue by selling gold and copper produced from its mining operations. Refer to Note 3 for further information regarding the Company’s operating segments. The majority of the Company’s Sales come from the sale of refined gold; however, the end product at the Company’s gold operations is generally doré bars. Doré is an alloy consisting primarily of gold but also containing silver and other metals. Doré is sent to refiners to produce bullion that meets the required market standard of 99.95% gold. Under the terms of the Company’s refining agreements, the doré bars are refined for a fee, and the Company’s share of the refined gold and the separately-recovered silver is credited to its bullion account. Gold from doré bars credited to its bullion account is typically sold to banks or refiners. A portion of gold sold from Boddington and Kalgoorlie in Australia, Phoenix in Nevada and CC&V in Colorado is sold in the form of concentrate which includes copper and silver. The Company’s Sales also come from the sale of copper. Copper sales are generally in the form of concentrate, which is sold to smelters for further treatment and refining, and cathode. Copper sold from Boddington in Australia is sold in concentrate form and copper sold from Phoenix in Nevada is sold in either concentrate or cathode form. Generally, if a metal expected to be mined represents more than 10 to 20% of the life of mine sales value of all the metal expected to be mined, co-product accounting should apply. When the Company applies co-product accounting at an operation, revenue is recognized for each co-product metal sold, and shared costs applicable to sales are allocated based on the relative sales values of the co-product metals produced. Generally, if metal expected to be mined is less than the 10 to 20% of the life of mine sales value, by-product accounting should apply. Revenues from by-product sales, which are immaterial, are credited to Costs applicable to sales as a by-product credit. Copper is produced as a co-product at Phoenix and Boddington. Copper and silver is produced as a by-product at certain of the Company’s other operations. Gold Sales from Doré Production The Company recognizes revenue for gold from doré production when it satisfies the performance obligation of transferring gold inventory to the customer, which generally occurs upon transfer of gold bullion credits as this is the point at which the customer obtains the ability to direct the use and obtain substantially all of the remaining benefits of ownership of the asset. The Company generally recognizes the sale of gold bullion credits at the prevailing market price when gold bullion credits are delivered to the customer. The transaction price is determined based on the agreed upon market price and the number of ounces delivered. Payment is due upon delivery of gold bullion credits to the customer’s account. Gold and Copper Sales from Concentrate Production The Company recognizes revenue for gold and copper from concentrate production, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This generally occurs as material passes over the vessel's rail at the port of loading based on the date from the bill of lading, as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the material and the customer has the risk of loss. Newmont has elected to account for shipping and handling costs for concentrate contracts as fulfillment activities and not as promised goods or services; therefore these activities are not considered separate performance obligations. The Company generally sells gold and copper concentrate based on the future monthly average market price for a future month, dependent on the relevant contract, following the month in which the delivery to the customer takes place. The amount of revenue recognized for concentrates is initially recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities based on assay data. The Company’s sales based on a provisional price 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 concentrates at the forward price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through Sales each period prior to final settlement. The Company also adjusts estimated metal quantities used in computing provisional sales using new information and assay data from the smelter as it is received (if any). A provisional payment is generally due upon delivery of the concentrate to the customer. Final payment is due upon final settlement of price and quantity with the customer. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations and updated quantities between the date the sale is recorded and the date of final settlement. If a significant decline in metal prices occurs, or assay data results in a significant change in quantity between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the provisional payment received on the sale. Copper Sales from Cathode Production The Company recognizes revenue for copper from cathode production when it transfers control of copper cathode to the customer, which occurs when the material is picked up by the carrier. The Company generally sells copper cathode based on the weekly average market price for the week following production. The transaction price is determined based on this agreed upon price and the number of pounds delivered. Payment is due upon final settlement of price and quantity with the customer. Recently Adopted 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 standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The company retrospectively adopted this standard as of January 1, 2018. As there were no contracts outstanding as of December 31, 2017, there was no cumulative effect adjustment required to be recognized at January 1, 2018. The comparative information has not been adjusted and continues to be reported under the accounting standards in effect for those periods. The adoption of this standard primarily impacts the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Revenue related to concentrate shipments is now generally recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligation. Prior to the adoption of this standard, revenue was recognized for these contracts when the price was determinable, the concentrate had been loaded on a vessel or received by the customer, risk and title had been transferred and collection of the sales price was reasonably assured. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. This ASU was further amended in February 2018 by ASU No. 2018-03. 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. The Company adopted this standard as of January 1, 2018. Upon adoption, the Company reclassified $115 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. 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. The Company adopted the guidance as of January 1, 2018. Upon adoption, the Company reclassified $6 for the six months ended June 30, 2017 of Acquisitions, net previously reported as a cash outflow from investing activities, to operating activities on the Consolidated Statements of Cash Flows related to contingent consideration payments. 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. The Company adopted this guidance as of January 1, 2018, and determined it had no impact on the Consolidated Financial Statements or disclosures. 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 present 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 Company retrospectively adopted this guidance as of December 31, 2017. Upon adoption, the Company included a reconciliation of Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Consolidated Statements of Cash Flows. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Employee Benefits In 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 to 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. The Company adopted this guidance as of January 1, 2018. The adoption of this guidance resulted in the recognition of other components of net benefit costs within Other income, net rather than Costs applicable to sales or General and administrative and is no longer included in costs that benefit the inventory or production process. Adoption of this guidance did not have a material impact on the Consolidated Financial Statements or disclosures. Hedging In 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 adopted this guidance as of January 1, 2018, and there was no material impact on the Consolidated Financial Statements or disclosures as a result of adoption. Recently Issued Accounting Pronouncements 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, in January 2018 by ASU No. 2018-01 and in July 2018 by ASU No. 2018-10. The new guidance modifies the classification criteria and requires lessees to recognize right-of-use assets and lease liabilities arising from most leases on the balance sheet with additional disclosures about leasing arrangements. 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 as of January 1, 2019. 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. To date, the Company has formed a cross-functional implementation team; commenced a completeness assessment over the lease population; begun the evaluation of the various practical expedients and policy elections that will be adopted; started to establish new policies, procedures and internal controls related to the new standard; and commenced the review of contracts that are expected to be outstanding as of the adoption date. Management is still completing its assessment of the impacts; however, based on the procedures performed, management has identified certain service contracts that contain embedded leases under the revised guidance. The Company expects that the adoption of the new standard will gross up the Consolidated Balance Sheets with the recognition of right-of-use assets and lease liabilities related to operating leases. The Company does not expect there will be a material impact to the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows. The Company is in the process of assessing the required disclosures of the new standard, and expects to provide additional qualitative and quantitative disclosures related to leasing arrangements upon adoption. Other Comprehensive Income Reclassifications Related to Tax Reform In February 2018, ASU 2018-02 was issued allowing companies the option to reclassify to retained earnings the tax effects related to items in Accumulated other comprehensive income (loss) as a result of the Tax Cuts and Jobs Act (the “Act”) that was enacted on December 22, 2017. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the Act is recognized. The Company is still completing its assessment of the impacts and anticipated adoption date of this guidance. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 3 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. Unless otherwise noted, the Company presents only the reportable segments of its 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 June 30, 2018 Carlin $ 244 $ 178 $ 43 $ 8 $ 13 $ 42 Phoenix: Gold 63 44 10 Copper 21 14 4 Total Phoenix 84 58 14 1 10 11 Twin Creeks 114 66 16 3 33 22 Long Canyon 56 18 19 6 11 2 CC&V 88 42 14 1 25 9 Other North America — — 1 9 (9) 2 North America 586 362 107 28 83 88 Yanacocha 147 92 22 12 (3) 24 Merian 132 61 20 6 46 27 Other South America — — 4 8 (13) 1 South America 279 153 46 26 30 52 Boddington: Gold 220 130 24 Copper 60 32 6 Total Boddington 280 162 30 — 92 10 Tanami 134 74 16 4 43 26 Kalgoorlie 122 62 6 3 53 5 Other Australia — — 2 2 (2) — Australia 536 298 54 9 186 41 Ahafo 132 90 29 4 6 64 Akyem 129 62 41 4 21 11 Other Africa — — — 1 (3) — Africa 261 152 70 9 24 75 Corporate and Other — — 2 18 (18) 2 Consolidated $ 1,662 $ 965 $ 279 $ 90 $ 305 $ 258 (1) Consolidated capital expenditures on a cash basis were $258. 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 June 30, 2017 Carlin $ 279 $ 170 $ 46 $ 5 $ 55 $ 48 Phoenix: Gold 67 46 12 Copper 24 16 4 Total Phoenix 91 62 16 3 9 4 Twin Creeks 156 61 17 2 72 9 Long Canyon 57 13 18 5 21 3 CC&V 166 74 33 3 53 4 Other North America — — 1 4 (5) 1 North America 749 380 131 22 205 69 Yanacocha 149 134 34 8 (59) 9 Merian 150 64 26 4 54 22 Other South America — — 3 9 (16) — South America 299 198 63 21 (21) 31 Boddington: Gold 262 147 31 Copper 52 28 6 Total Boddington 314 175 37 1 94 14 Tanami 123 58 15 6 55 28 Kalgoorlie 113 55 5 1 52 4 Other Australia — — 1 2 (5) 2 Australia 550 288 58 10 196 48 Ahafo 112 60 15 10 25 36 Akyem 165 73 40 5 45 6 Other Africa — — — 1 (4) — Africa 277 133 55 16 66 42 Corporate and Other — — 3 14 (111) 2 Consolidated $ 1,875 $ 999 $ 310 $ 83 $ 335 $ 192 (1) Includes an increase in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $183. 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) Six Months Ended June 30, 2018 Carlin $ 548 $ 377 $ 95 $ 15 $ 55 $ 72 Phoenix: Gold 163 106 25 Copper 47 30 8 Total Phoenix 210 136 33 2 36 18 Twin Creeks 224 130 31 5 64 40 Long Canyon 115 34 38 12 30 5 CC&V 171 81 29 3 51 18 Other North America — — 1 13 (15) 4 North America 1,268 758 227 50 221 157 Yanacocha 290 206 52 22 (31) 40 Merian 298 128 42 9 120 49 Other South America — — 7 15 (29) 1 South America 588 334 101 46 60 90 Boddington: Gold 430 258 47 Copper 112 63 12 Total Boddington 542 321 59 — 166 26 Tanami 301 150 35 10 110 47 Kalgoorlie 239 122 12 6 101 13 Other Australia — — 3 4 (4) 1 Australia 1,082 593 109 20 373 87 Ahafo 270 180 55 8 22 126 Akyem 271 129 83 7 45 21 Other Africa — — — 2 (5) — Africa 541 309 138 17 62 147 Corporate and Other — — 5 31 (128) 6 Consolidated $ 3,479 $ 1,994 $ 580 $ 164 $ 588 $ 487 (1) Includes a decrease in accrued capital expenditures of $2; consolidated capital expenditures on a cash basis were $489. 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) Six Months Ended June 30, 2017 Carlin $ 543 $ 378 $ 99 $ 8 $ 54 $ 96 Phoenix: Gold 121 90 23 Copper 50 34 9 Total Phoenix 171 124 32 4 7 10 Twin Creeks 258 111 31 4 107 17 Long Canyon 96 25 31 10 30 7 CC&V 322 149 65 7 99 8 Other North America — — 1 7 (10) 3 North America 1,390 787 259 40 287 141 Yanacocha 328 253 70 12 (50) 20 Merian 283 112 47 8 114 38 Other South America — — 7 19 (35) — South America 611 365 124 39 29 58 Boddington: Gold 490 269 57 Copper 97 49 10 Total Boddington 587 318 67 1 180 29 Tanami 215 108 31 9 75 52 Kalgoorlie 217 107 9 3 95 8 Other Australia — — 3 3 (20) 3 Australia 1,019 533 110 16 330 92 Ahafo 226 136 38 16 34 53 Akyem 319 135 74 6 100 12 Other Africa — — — 2 (5) — Africa 545 271 112 24 129 65 Corporate and Other — — 5 26 (246) 4 Consolidated $ 3,565 $ 1,956 $ 610 $ 145 $ 529 $ 360 (1) Includes a decrease in accrued capital expenditures of $ 3 ; consolidated capital expenditures on a cash basis were $363. |
SALES
SALES | 6 Months Ended |
Jun. 30, 2018 | |
SALES | |
Sales | NOTE 4 SALES The following table presents the Company’s Sales by mining operation, product and inventory type: Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Three Months Ended June 30, 2018 Carlin $ 244 $ — $ — $ — $ 244 Phoenix 30 33 9 12 84 Twin Creeks 114 — — — 114 Long Canyon 56 — — — 56 CC&V 88 — — — 88 North America 532 33 9 12 586 Yanacocha 147 — — — 147 Merian 132 — — — 132 South America 279 — — — 279 Boddington 64 156 60 — 280 Tanami 134 — — — 134 Kalgoorlie 122 — — — 122 Australia 320 156 60 — 536 Ahafo 132 — — — 132 Akyem 129 — — — 129 Africa 261 — — — 261 Consolidated $ 1,392 $ 189 $ 69 $ 12 $ 1,662 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Three Months Ended June 30, 2017 Carlin $ 279 $ — $ — $ — $ 279 Phoenix 30 37 12 12 91 Twin Creeks 156 — — — 156 Long Canyon 57 — — — 57 CC&V 161 5 — — 166 North America 683 42 12 12 749 Yanacocha 149 — — — 149 Merian 150 — — — 150 South America 299 — — — 299 Boddington 64 198 52 — 314 Tanami 123 — — — 123 Kalgoorlie 113 — — — 113 Australia 300 198 52 — 550 Ahafo 112 — — — 112 Akyem 165 — — — 165 Africa 277 — — — 277 Consolidated $ 1,559 $ 240 $ 64 $ 12 $ 1,875 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Six Months Ended June 30, 2018 Carlin $ 548 $ — $ — $ — $ 548 Phoenix 71 92 21 26 210 Twin Creeks 224 — — — 224 Long Canyon 115 — — — 115 CC&V 171 — — — 171 North America 1,129 92 21 26 1,268 Yanacocha 290 — — — 290 Merian 298 — — — 298 South America 588 — — — 588 Boddington 123 307 112 — 542 Tanami 301 — — — 301 Kalgoorlie 239 — — — 239 Australia 663 307 112 — 1,082 Ahafo 270 — — — 270 Akyem 271 — — — 271 Africa 541 — — — 541 Consolidated $ 2,921 $ 399 $ 133 $ 26 $ 3,479 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Six Months Ended June 30, 2017 Carlin $ 543 $ — $ — $ — $ 543 Phoenix 54 67 27 23 171 Twin Creeks 258 — — — 258 Long Canyon 96 — — — 96 CC&V 311 11 — — 322 North America 1,262 78 27 23 1,390 Yanacocha 328 — — — 328 Merian 283 — — — 283 South America 611 — — — 611 Boddington 123 367 97 — 587 Tanami 215 — — — 215 Kalgoorlie 217 — — — 217 Australia 555 367 97 — 1,019 Ahafo 226 — — — 226 Akyem 319 — — — 319 Africa 545 — — — 545 Consolidated $ 2,973 $ 445 $ 124 $ 23 $ 3,565 The following table details the receivables included within Trade receivables : At June 30, At December 31, 2018 2017 Receivables from Sales: Gold sales from doré $ 36 $ — Gold and copper sales from concentrate production 96 Copper sales from cathode production 1 Total receivables from Sales $ 133 $ The impact to Sales from revenue initially recognized in previous periods due to the changes in the final pricing and changes in quantities resulting from assays is an increase (decrease) of $(1) and $(1), respectively, for the three months ended June 30, 2018 and an increase (decrease) of $1 and $(6), respectively, for the three months ended June 30, 2017. The impact to Sales from revenue initially recognized in previous periods due to the changes in the final pricing and changes in quantities resulting from assays is an increase (decrease) of $(3) and $1, respectively, for the six months ended June 30, 2018 and an increase (decrease) of $11 and $2, respectively, for the six months ended June 30, 2017. The following tables summarize the impacts of adopting this standard on the Company’s Condensed Consolidated Financial Statements for the three and six months ended June 30, 2018: Three Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Operations As Reported Change of ASC 606 Sales $ 1,662 $ 89 $ 1,751 Costs applicable to sales $ 965 $ 54 $ 1,019 Depreciation and amortization $ 279 $ 12 $ 291 Income (loss) before income and mining tax and other items $ 305 $ 23 $ 328 Income and mining tax benefit (expense) $ (18) $ (6) $ (24) Net income (loss) $ 298 $ 17 $ 315 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 274 $ 17 $ 291 Discontinued operations 18 — 18 $ 292 $ 17 $ 309 Net income (loss) per common share Basic: Continuing operations $ 0.52 $ 0.03 $ 0.55 Discontinued operations 0.03 — 0.03 $ 0.55 $ 0.03 $ 0.58 Diluted: Continuing operations $ 0.51 $ 0.03 $ 0.54 Discontinued operations 0.03 — 0.03 $ 0.54 $ 0.03 $ 0.57 Six Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Operations As Reported Change of ASC 606 Sales $ 3,479 $ (16) $ 3,463 Costs applicable to sales $ 1,994 $ (8) $ 1,986 Depreciation and amortization $ 580 $ (2) $ 578 Income (loss) before income and mining tax and other items $ 588 $ (6) $ 582 Income and mining tax benefit (expense) $ (123) $ 2 $ (121) Net income (loss) $ 489 $ (4) $ 485 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 444 $ (4) $ 440 Discontinued operations 40 — 40 $ 484 $ (4) $ 480 Net income (loss) per common share Basic: Continuing operations $ 0.84 $ (0.01) $ 0.83 Discontinued operations 0.07 — 0.07 $ 0.91 $ (0.01) $ 0.90 Diluted: Continuing operations $ 0.83 $ (0.01) $ 0.82 Discontinued operations 0.07 — 0.07 $ 0.90 $ (0.01) $ 0.89 Six Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Cash Flows As Reported Change of ASC 606 Operating activities: Net income (loss) $ 489 $ (4) $ 485 Adjustments: Depreciation and amortization $ 580 $ (2) $ 578 Net change in operating assets and liabilities $ (510) $ 6 $ (504) Net cash provided by (used in) operating activities of continuing operations $ 667 $ — $ 667 At June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Balance Sheet As Reported Change of ASC 606 Trade receivables $ 133 $ (16) $ 117 Inventories $ 697 $ 10 $ 707 Total assets $ 20,655 $ (6) $ 20,649 Income and mining taxes payable $ 71 $ (2) $ 69 Total liabilities $ 8,822 $ (2) $ 8,820 Retained earnings $ 592 $ (4) $ 588 Newmont stockholders' equity $ 10,813 $ (4) $ 10,809 Total equity $ 11,785 $ (4) $ 11,781 Total liabilities and equity $ 20,655 $ (6) $ 20,649 |
RECLAMATION AND REMEDIATION
RECLAMATION AND REMEDIATION | 6 Months Ended |
Jun. 30, 2018 | |
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’s Reclamation and remediation expense consisted of: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Reclamation adjustments $ — $ 15 $ — $ 15 Reclamation accretion 25 25 49 48 Total reclamation expense 25 40 49 63 Remediation adjustments 11 2 $ 14 $ 7 Remediation accretion 1 1 2 2 Total remediation expense 12 3 $ 16 $ 9 $ 37 $ 43 $ 65 $ 72 Reclamation and remediation adjustments . In June 2018, the Company updated assumptions at a historic mine site for future water management costs of $8. In June 2017, the Company updated reclamation liability assumptions at Yanacocha regarding water treatment costs on non-operating leach pads of $15. The following are reconciliations of Reclamation and remediation liabilities : 2018 2017 Reclamation balance at January 1, $ 2,144 $ 1,913 Additions, changes in estimates and other — 15 Payments, net (13) (11) Accretion expense 49 48 Reclamation balance at June 30, $ 2,180 $ 1,965 2018 2017 Remediation balance at January 1, $ 304 $ 312 Additions, changes in estimates and other 8 2 Payments, net (20) (21) Accretion expense 2 2 Remediation balance at June 30, $ 294 $ 295 The current portion of reclamation liabilities was $60 at June 30, 2018 and December 31, 2017, and was included in Other current liabilities . The current portion of remediation liabilities was $45 and $43 at June 30, 2018 and December 31, 2017, respectively, and was included in Other current liabilities . At June 30, 2018 and December 31, 2017, $2,180 and $2,144, 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 June 30, 2018 and December 31, 2017, $294 and $304, respectively, were accrued for such environmental remediation obligations. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 43% greater or 0% lower than the amount accrued at June 30, 2018. These amounts are included in Other current liabilities and Reclamation and remediation liabilities . 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. Non-current restricted cash held for purposes of settling reclamation and remediation obligations was $34 and $38 at June 30, 2018 and December 31, 2017, respectively. Of the amounts at June 30, 2018, $25 was related to the Ahafo and Akyem mines in Ghana, Africa, $8 was related to the Con mine in Yellowknife, Northwest Territory, Canada, and $1 was related to the San Jose Reservoir in Yanacocha, Peru. Of the amount at December 31, 2017, $25 was related to the Ahafo and Akyem mines, $6 was related to the Con mine, $6 was related to the San Jose Reservoir, and $1 was related to the Midnite mine in Washington state. Included in Other non-current assets at June 30, 2018 and December 31, 2017, was $58 and $64, respectively, of non-current restricted investments, which are legally pledged for purposes of settling reclamation and remediation obligations related to the San Jose Reservoir in Yanacocha, Midnight mine site and for various locations in North America. Refer to Note 25 for further discussion of reclamation and remediation matters. |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 6 Months Ended |
Jun. 30, 2018 | |
OTHER EXPENSE, NET | |
OTHER EXPENSE, NET | NOTE 6 OTHER EXPENSE, NET Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Restructuring and other $ 9 $ 1 $ 15 $ 8 Acquisition cost adjustments — 3 — 5 Impairment of long-lived assets — — — 3 Other 4 10 9 15 $ 13 $ 14 $ 24 $ 31 Restructuring and other . Restructuring and other represents certain costs associated with severance, legal and other settlements for all periods presented. Acquisition cost adjustments . Acquisition cost adjustments represent net adjustments during 2017 to the contingent consideration and related liabilities associated with the acquisition of the final 33.33% interest in Boddington in June 2009. Impairment of long-lived assets . Impairment of long-lived assets primarily relates to non-cash write-downs of obsolete assets at Yanacocha and Australia in 2017. |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2018 | |
OTHER INCOME, NET. | |
OTHER INCOME, NET | NOTE 7 OTHER INCOME, NET Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Gain (loss) on asset and investment sales, net $ 100 $ 14 $ 99 $ 16 Interest 13 6 24 10 Foreign currency exchange, net 14 (4) 21 (21) Change in fair value of marketable equity securities 5 — 5 — Tanami insurance proceeds — 13 — 13 Other 7 2 11 4 $ 139 $ 31 $ 160 $ 22 Gain (loss) on asset and investment sales, net. In June 2018, the Company exchanged certain royalty interests carried at cost for cash consideration, an equity ownership in Maverix Metals Inc. ("Maverix") and warrants in Maverix, resulting in a pre-tax gain of $100 . For additional information regarding this transaction, see Note 16. In June 2017, the Company exchanged its interest in the Fort á la Corne joint venture for equity ownership in Shore Gold Inc., resulting in a pre-tax gain of $15. 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 to be satisfied 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. 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 | 6 Months Ended |
Jun. 30, 2018 | |
INCOME AND MINING TAXES | |
INCOME AND MINING TAXES | NOTE 8 INCOME AND MINING TAXES A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Income (loss) before income and mining tax and other items $ 305 $ 335 $ 588 $ 529 U.S. Federal statutory tax rate % $ 64 35 % $ 117 21 % $ 123 35 % $ 185 Reconciling items: Percentage depletion (3) (8) (13) (42) (4) (25) (14) (74) Change in valuation allowance on deferred tax assets (5) (15) 21 72 1 3 26 139 Adjustment to provisional expense related to the Tax Cuts and Job Act (15) (45) — — (8) (45) — — Mining and other taxes 3 9 5 16 5 30 7 35 Foreign rate differential 5 15 — — 8 46 — — Other — (2) 2 3 (2) (9) (2) (8) Income and mining tax expense 6 % $ 18 50 % $ 166 21 % $ 123 52 % $ 277 During the three months ended June 30, 2018, the Company released valuation allowance on capital losses of ($15) as a result of the exchange of certain royalty interests for cash consideration and shares and warrants in Maverix. During the second quarter, the Company completed a fixed asset study regarding the deductibility of certain mineral interests related to Boddington. Based on the work performed to date, the Company determined it will be able to realize certain Australian deferred tax assets and recorded a tax benefit of $45 during the quarter. This adjustment was treated as a change to the provisional amount recorded in the fourth quarter of 2017 for the impacts of US tax reform as it relates to balances impacted by the tax restructuring completed at year-end. The Company expects to record additional updates to the provisional amounts for the impacts of US tax reform during the last half of 2018 following completion of the 2017 income tax returns and within the 12 month time frame provided under the SEC’s Staff Accounting Bulletin 118 . |
NET INCOME (LOSS) FROM DISCONTI
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | NOTE 9 NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS The details of Net income (loss) from discontinued operations are set forth below: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Holt royalty obligation $ 17 $ (15) $ 36 $ (38) Batu Hijau contingent consideration (1) 1 — 4 — Net income (loss) from discontinued operations $ 18 $ (15) $ 40 $ (38) (1) See Note 15 for details on the Batu Hijau contingent consideration. The Holt Royalty Obligation At June 30, 2018 and December 31, 2017, the estimated fair value of the Holt royalty obligation was $193 and $243, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations , net of tax. During the three and six months ended June 30, 2018, the Company recorded a gain (loss) of $17 and $36, net of a tax benefit (expense) of $(5) and $(9), respectively, related to the Holt royalty obligation. During the three and six months ended June 30, 2017, the Company recorded a gain (loss) of $(15) and $(38), net of tax benefit (expense) of $8 and $21, respectively, related to the Holt royalty obligation. During the six months ended June 30, 2018 and 2017, the Company paid $5 and $6, respectively, related to the Holt royalty obligation. Refer to Note 14 for additional information on the Holt royalty obligation. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | NOTE 10 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Merian $ 11 $ 13 $ 28 $ 26 Yanacocha (5) (37) (23) (38) Other — — — (1) $ 6 $ (24) $ 5 $ (13) 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. In December 2017, Minera Yanacocha S.R.L. (“Yanacocha”) repurchased a 5% ownership interest from International Finance Corporation, which resulted in Newmont’s ownership in Yanacocha increasing from 51.35% to 54.05%, with the remaining interests held by Buenaventura (which increased from 43.65% to 45.95%). In June 2018, Yanacocha sold a 5% ownership interest to Summit Global Management II VB, a subsidiary of Sumitomo Corporation (“Sumitomo”), in exchange for $48 in cash, which resulted in Newmont’s and Buenaventura’s ownership returning to 51.35% and 43.65%, respectively. Under the terms of the transaction, Sumitomo has the option to require Yanacocha to repurchase the interest for $48 if the Yanacocha Sulfides project does not adequately progress by June 2022 or if the project is approved with an incremental rate of return below a contractually agreed upon rate. Consequently, Sumitomo’s interest has been classified outside of permanent equity as Contingently redeemable noncontrolling interest on the Condensed Consolidated Balance Sheets. Under the terms of the sales agreement, the cash paid by Sumitomo at closing has been placed in escrow for repayment in the event the option is exercised. As a result of this transaction, the Company concluded that Newmont will continue to consolidate Yanacocha in its Condensed Consolidated Financial Statements under the voting interest model. The following summarizes the assets and liabilities of Merian, (including noncontrolling interests): At June 30, 2018 At December 31, 2017 Current assets: Cash and cash equivalents $ 44 $ 27 Trade receivables 23 — Inventories 81 79 Stockpiles and ore on leach pads 31 21 Other current assets (1) 4 6 183 133 Non-current assets: Property, plant and mine development, net 777 769 Other non-current assets (2) 3 8 Total assets $ 963 $ 910 Current liabilities: Accounts payable $ 27 $ 22 Other current liabilities (3) 26 28 53 50 Non-current liabilities: Reclamation and remediation liabilities 18 18 Other non-current liabilities (4) 1 1 Total liabilities $ 72 $ 69 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include employee-related benefits and other current liabilities. (4) Other non-current liabilities include employee-related benefits. |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) PER COMMON SHARE | |
NET INCOME (LOSS) PER COMMON SHARE | NOTE 11 NET INCOME (LOSS) PER COMMON SHARE Basic net 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 net 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 net income per share are included in the calculation. Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 274 $ 190 $ 444 $ 260 Discontinued operations 18 (15) 40 (38) $ 292 $ 175 $ 484 $ 222 Weighted average common shares (millions): Basic 533 533 534 533 Effect of employee stock-based awards 2 2 1 1 Diluted 535 535 535 534 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.52 $ 0.36 $ 0.84 $ 0.49 Discontinued operations 0.03 (0.03) 0.07 (0.07) $ 0.55 $ 0.33 $ 0.91 $ 0.42 Diluted: Continuing operations $ 0.51 $ 0.36 $ 0.83 $ 0.49 Discontinued operations 0.03 (0.03) 0.07 (0.07) $ 0.54 $ 0.33 $ 0.90 $ 0.42 During the three and six months ended June 30, 2018, the Company repurchased and retired approximately 0.2 million and 1.9 million shares of its common stock for $6 and $ 70 , respectively. Additionally, during the three and six months ended June 30, 2018, the Company withheld a nominal amount and 1.0 million shares for payments of employee withholding taxes related to the vesting of stock awards. When treasury shares are retired, the Company's policy is to allocate the excess of the repurchase price over the par value of shares acquired to both Retained earnings and Additional paid-in capital . The portion allocated to Additional paid-in capital is calculated on a pro-rata basis of the shares to be retired and the total shares issued and outstanding as of the date of the retirement. |
EMPLOYEE PENSION AND OTHER BENE
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2018 | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | |
EMPLOYEE PENSION AND OTHER BENEFIT PLANS | NOTE 12 EMPLOYEE PENSION AND OTHER BENEFIT PLANS Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Pension benefit costs, net (1) : Service cost $ 8 $ 8 $ 16 $ 15 Interest cost 11 11 21 22 Expected return on plan assets (17) (16) (34) (31) Amortization, net 8 7 16 14 Settlements — — — 4 $ 10 $ 10 $ 19 $ 24 Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Other benefit costs (credits), net (1) : Service cost $ 1 $ 1 $ 1 $ 1 Interest cost $ 1 $ 1 $ 2 $ 2 Amortization, net (2) (3) (4) (4) $ — $ (1) $ (1) $ (1) (1) Service costs are included in Costs applicable to sales or General and administrative and the other components of benefit costs and settlements are included in Other income, net . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 13 STOCK-BASED COMPENSATION Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Stock-based compensation: Performance leveraged stock units $ 7 $ 9 $ 16 $ 17 Restricted stock units 12 10 22 17 Strategic stock units — — — 1 $ 19 $ 19 $ 38 $ 35 |
FAIR VALUE ACCOUNTING
FAIR VALUE ACCOUNTING | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE ACCOUNTING | |
FAIR VALUE ACCOUNTING | NOTE 14 FAIR VALUE ACCOUNTING Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hie rarchy 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 June 30, 2018 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,127 $ 3,127 $ — $ — Restricted cash 83 83 — — Trade receivable from provisional gold and copper concentrate sales, net 86 — 86 — Diesel forward derivative contracts 7 — 7 — Marketable equity securities 178 166 12 — Restricted marketable debt securities 51 22 29 — Restricted other assets 7 7 — — Batu Hijau contingent consideration 27 — — 27 $ 3,566 $ 3,405 $ 134 $ 27 Liabilities: Debt (1) $ 4,391 $ — $ 4,391 $ — Holt royalty obligation 193 — — 193 $ 4,584 $ — $ 4,391 $ 193 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,259 $ 3,259 $ — $ — Restricted cash 39 39 — — Trade receivable from provisional gold and copper concentrate sales, net 111 — 111 — Diesel forward derivative contracts 6 — 6 — Marketable equity securities 165 165 — — Restricted marketable debt securities 55 17 38 — Restricted other assets 9 9 — — Batu Hijau contingent consideration 23 — — 23 $ 3,667 $ 3,489 $ 155 $ 23 Liabilities: Debt (1) $ 4,671 $ — $ 4,671 $ — Foreign exchange forward derivative contracts 1 — 1 — Holt royalty obligation 243 — — 243 $ 4,915 $ — $ 4,672 $ 243 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,042 and $4,040 at June 30, 2018 and December 31, 2017, 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 derivative instruments above are included in Note 15. All other fair value disclosures in the above table are presented on a gross basis. The Company’s cash and cash equivalents and restricted cash and restricted cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash and cash equivalent instruments and restricted cash are valued based on quoted market prices in active markets and are primarily money market securities and U.S. Treasury securities. The Company’s net trade receivables from provisional gold and copper concentrate sales, which contain an embedded derivative and are subject to final pricing, are valued using quoted market prices based on forward curves for the particular metal. As the contracts themselves are not traded on an exchange, these receivables are classified within Level 2 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 Company’s marketable equity securities with readily determinable fair values are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the marketable equity securities are calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company. The Company’s marketable equity securities without readily determinable fair values are primarily comprised of warrants in publicly traded companies and are valued using a Black-Scholes model using quoted market prices in active markets of the underlying securities. As the contracts themselves are not traded on the exchange, these equity securities are classified within Level 2 of the fair value hierarchy. The Company’s restricted marketable debt securities are primarily U.S. government issued bonds and international bonds. The Company’s South American debt securities are classified within Level 1 of the fair value hierarchy, using published market prices of actively traded securities. The Company’s North American debt securities are classified within Level 2 of the fair value hierarchy as they are valued using pricing models which are based on prices of similar, actively traded securities. The Company’s restricted other assets primarily consist of bank issued certificate of deposits that have maturities over 90 days and marketable equity securities. Both are classified within Level 1 of the fair value hierarchy as their fair values are based on quoted prices available in active markets. 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 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 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 June 30, 2018 and December 31, 2017: At June 30, Range/Weighted Description 2018 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 27 Monte Carlo Discount rate 17.50 % Short-term copper price $ Long-term copper price $ Holt royalty obligation $ 193 Monte Carlo Discount rate 3.99 % Short-term gold price $ 1,306 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 334 - 1,576 At December 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 23 Monte Carlo Discount rate 17.50 % Short-term copper price $ 3.09 Long-term copper price $ 3.00 Holt royalty obligation $ 243 Monte Carlo Discount rate 3.32 % Short-term gold price $ 1,275 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 402 - 1,779 The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities: Batu Hijau Holt Contingent Total Royalty Total Consideration (1) Assets Obligation (1) Liabilities Fair value at December 31, 2017 $ 23 $ 23 $ 243 $ 243 Settlements — — (5) (5) Revaluation 4 4 (45) (45) Fair value at June 30, 2018 $ 27 $ 27 $ 193 $ 193 Asset Backed Batu Hijau Holt Commercial Contingent Total Royalty Total Paper (2) Consideration (1) Assets Obligation (1) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 187 $ 187 Settlements (18) — (18) (6) (6) Revaluation — — — 59 59 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 240 $ 240 (1) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (2) The gain (loss) recognized is included in Other income, net. . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 15 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 Company uses hedge programs to mitigate the variability of its operating costs primarily related to diesel price fluctuations. Prior to adoption of ASU No. 2017-12, Newmont’s hedge portfolio consisted of Nevada diesel swaps and Australian dollar foreign currency forwards. Subsequent to the adoption of this ASU, the Company initiated new diesel hedge programs for all of its Nevada sites in North America, Merian in South America and Boddington, Tanami and KCGM in Australia. The following diesel contracts were transacted for risk management purposes and qualify as cash flow hedges. The 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. The Company had the following diesel derivative contracts outstanding at June 30, 2018: Expected Maturity Date Total/ 2018 2019 2020 2021 Average Diesel Fixed Forward Contracts: North America Diesel gallons (millions) 7 3 3 1 14 Average rate ($/gallon) 1.68 1.78 1.97 2.04 1.79 South America Diesel gallons (millions) — — 2 — 2 Average rate ($/gallon) — — 1.88 1.99 1.89 Australia Diesel barrels (thousands) — 12 73 17 102 Average rate ($/barrel) — 85.93 77.06 79.69 78.54 The hedging instruments consist of a series of financially settled fixed forward contracts, which run through the second quarter of 2021 in North America, South America, and Australia. Derivative Instrument Fair Values The Company had the following derivative instruments designated as hedges at June 30, 2018 and December 31, 2017: Fair Values of Derivative Instruments At June 30, 2018 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Diesel fixed forwards $ 5 $ 2 $ — $ — Fair Values of Derivative Instruments At December 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 1 $ — Diesel fixed forwards 6 — — — $ 6 $ — $ 1 $ — As of June 30, 2018 and December 31, 2017, 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 June 30, 2018 and December 31, 2017, the potential effect of netting derivative assets against liabilities due to the master netting agreement was not significant. The following table shows the effect of cash flow hedge accounting in the Company’s Condensed Consolidated Statements of Operations. (Gain) Loss Recognized from Cash Flow Hedges Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Costs applicable to sales $ 965 $ 999 $ 1,994 $ 1,956 Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from diesel hedging instruments $ (2) $ 1 $ (4) $ 3 Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from foreign currency hedging instruments $ 2 $ 7 $ 5 $ 15 Total Interest expense, net $ 49 $ 64 $ $ Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from discontinued interest rate hedging instruments $ 3 $ 3 $ 6 $ 5 The following table shows the location and amount of (gains) losses reported in the Company’s Condensed Consolidated Financial Statements related to the Company’s hedges. Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2018 2017 2018 2017 2018 2017 For the three months ended June 30, Cash flow hedging relationships: (Gain) loss recognized in Other comprehensive income (loss) $ — $ — $ (4) $ 3 $ — $ — (Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) $ 2 $ 7 $ (2) $ 1 $ 3 $ 3 For the six months ended June 30, Cash flow hedging relationships: (Gain) loss recognized in Other comprehensive income (loss) $ — $ (4) $ (5) $ 6 $ — $ — (Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) $ 5 $ 15 $ (4) $ 3 $ 6 $ 5 Over the next 12 months, the Company expects to reclassify from Accumulated other comprehensive income (loss) to income a loss of approximately $5, net of tax, related to unrealized hedge losses. Batu Hijau Contingent Consideration Consideration received by the Company in conjunction with the sale of PT Newmont Nusa Tenggara 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 14 for additional information. Contingent consideration of $27 and $23 was included in Other non-current assets in the Company's Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively . 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. The impact to Sales from revenue recognized due to the changes in the final pricing is an increase (decrease) of $(6) and $(2) for the three months ended June 30, 2018 and 2017, respectively, and an increase (decrease) of $(8) and $10 for the six months ended June 30, 2018 and 2017, respectively. At June 30, 2018, Newmont had gold and copper sales of 78,000 ounces and 13 million pounds priced at an average of $1,251 per ounce and $3.01 per pound, respectively, subject to final pricing over the next several months. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENTS | |
INVESTMENTS | NOTE 16 INVESTMENTS At June 30, 2018 Fair Value/ Equity Basis (1) Current: Marketable equity securities $ 56 Non-current: Marketable equity securities: Continental Gold Inc. $ 108 Warrants 12 Other marketable equity securities 2 122 Other investments 5 Equity method investments: TMAC Resources Inc. (28.71%) 102 Maverix Metals Inc. (27.98%) 78 Minera La Zanja S.R.L. (46.94%) 46 226 $ 353 Non-current restricted investments: (2) Marketable debt securities (3) $ 51 Other assets 7 $ 58 At December 31, 2017 Cost/Equity Unrealized Fair Value/ Basis Gain Loss Equity Basis (1) Current: Marketable equity securities $ 38 $ 32 $ (8) $ 62 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (8) $ 101 Warrants 7 — — 7 Other marketable equity securities 4 — (2) 2 120 — (10) 110 Other investments 5 — — 5 Equity method investments: TMAC Resources Inc. (28.79%) 115 — — 115 Minera La Zanja S.R.L. (46.94%) 50 — — 50 165 — — 165 $ 290 $ — $ (10) $ 280 Non-current restricted investments: (2) Marketable debt securities $ 58 $ — $ (3) $ 55 Other assets 8 1 — 9 $ 66 $ 1 $ (3) $ 64 (1) Subsequent to the adoption of ASU No. 2016-01 on January 1, 2018, unrealized gains and losses related to marketable equity securities are recorded in Other income, net . Previously, gains and losses related to unrealized marketable equity securities were recorded in Other comprehensive income (loss) . (2) Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations and are included in Other non-current assets . For further information regarding these amounts, see Note 5. (3) There were nominal unrealized gains or losses recorded in Accumulated other comprehensive income (loss) as of June 30, 2018, related to marketable debt securities. In June 2018, Newmont sold $11 of restricted marketable debt securities for cash in order to fund future remediation work at the Midnite Mine. In June 2018, Newmont exchanged certain royalty interests for cash consideration of $17, received in July, and non-cash consideration comprised of 60 million common shares in Maverix and 10 million common share warrants in Maverix, with fair values upon closing of $78 and $5, respectively. Following the transaction, Newmont held a 27.98% equity ownership in Maverix. The Company determined the Maverix investment qualified as an equity method investment. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2018 | |
Inventories | |
INVENTORIES | |
INVENTORIES | NOTE 17 INVENTORIES At June 30, At December 31, 2018 2017 Materials and supplies $ 436 $ 416 In-process 135 131 Concentrate and copper cathode 91 83 Precious metals 35 49 $ 697 $ 679 |
STOCKPILES AND ORE ON LEACH PAD
STOCKPILES AND ORE ON LEACH PADS | 6 Months Ended |
Jun. 30, 2018 | |
Stockpiles and ore on leach pads | |
STOCKPILES AND ORE ON LEACH PADS | |
STOCKPILES AND ORE ON LEACH PADS | NOTE 18 STOCKPILES AND ORE ON LEACH PADS At June 30, At December 31, 2018 2017 Current: Stockpiles $ 351 $ 330 Ore on leach pads 360 346 $ 711 $ 676 Non-current: Stockpiles $ 1,454 $ 1,502 Ore on leach pads 383 346 $ 1,837 $ 1,848 At June 30, At December 31, 2018 2017 Stockpiles and ore on leach pads: Carlin $ 469 $ 441 Phoenix 68 68 Twin Creeks 329 340 Long Canyon 45 34 CC&V 333 314 Yanacocha 263 270 Merian 31 25 Boddington 445 431 Tanami 1 4 Kalgoorlie 126 125 Ahafo 386 409 Akyem 52 63 $ 2,548 $ 2,524 During the three and six months ended June 30, 2018, the Company recorded write-downs of $73 and $152, respectively, classified as components of Costs applicable to sales, and write-downs of $28 and $57, 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 June 30, 2018, $31 is related to Carlin, $17 to Twin Creeks, $2 to Yanacocha , $26 to Ahafo and $25 to Akyem. Of the write-downs during the six months ended June 30, 2018, $57 is related to Carlin, $33 to Twin Creeks , $26 to Yanacocha, $46 to Ahafo and $47 to Akyem. During the three and six months ended June 30, 2017, the Company recorded write-downs of $46 and $86, respectively, classified as components of Costs applicable to sales, and write-downs of $ 18 and $ 31 , 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 June 30, 2017, $1 1 was related to Carlin, $13 to Twin Creeks, $ 32 to Yanacocha and $ 8 to Akyem. Of the write-downs during the six months ended June 30, 2017, $ 34 was related to Carlin, $1 6 to Twin Creeks, $ 41 to Yanacocha, $18 to Ahafo and $ 8 to Akyem. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2018 | |
DEBT | |
DEBT | NOTE 19 DEBT Scheduled minimum debt repayments are $- for the remainder of 2018, $626 in 2019, $- in 2020, $- in 2021, $992 in 2022 and $2,474 thereafter. |
LEASE AND OTHER FINANCING OBLIG
LEASE AND OTHER FINANCING OBLIGATIONS | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
LEASE AND OTHER FINANCING OBLIGATIONS | NOTE 20 LEASE AND OTHER FINANCING OBLIGATIONS Scheduled minimum capital lease repayments are $2 in 2018, $3 in 2019, $1 in 2020, $1 in 2021, $1 in 2022 and $1 thereafter. In December 2017, the Company began the early phases of the Tanami Power project which includes the construction of a gas pipeline to the Tanami site, and construction and operation of two on-site power stations under agreements that qualify for build-to-suit lease accounting. As of June 30, 2018 and December 31, 2017, the financing obligations under the build-to-suit arrangements were $71 and $14, of which $10 was classified as current as of June 30, 2018. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | NOTE 21 OTHER LIABILITIES At June 30, At December 31, 2018 2017 Other current liabilities: Accrued operating costs $ 109 $ 124 Reclamation and remediation liabilities 105 103 Accrued capital expenditures 69 77 Accrued interest 52 52 Royalties 37 63 Holt royalty obligation 14 15 Taxes other than income and mining 5 7 Derivative instruments — 1 Other 5 20 $ 396 $ 462 Other non-current liabilities: Holt royalty obligation $ 179 $ 228 Income and mining taxes 43 47 Power supply agreements 30 32 Social development obligations 21 22 Other 11 13 $ 284 $ 342 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 22 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, 2017 $ (116) $ 130 $ (208) $ (98) $ (292) Cumulative effect adjustment of adopting ASU No. 2016-01 115 — — — 115 Net current-period other comprehensive income (loss): Change in other comprehensive income (loss) before reclassifications 1 (4) — 4 1 Reclassifications from accumulated other comprehensive income (loss) — — 9 5 14 Other comprehensive income (loss) $ 1 $ (4) $ 9 $ 9 $ 15 Balance at June 30, 2018 $ — $ 126 $ (199) $ (89) $ (162) 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 4 $ 12 $ 10 Other income, net Settlements — — — 4 Other income, net Total before tax 6 4 12 14 Tax (2) (1) (3) (5) Net of tax $ 4 $ 3 $ 9 $ 9 Hedge instruments adjustments: Operating cash flow hedges $ — $ 8 $ 1 $ 18 Costs applicable to sales Interest rate contracts 3 3 6 5 Interest expense, net Total before tax 3 11 7 23 Tax (1) (4) (2) (8) Net of tax $ 2 $ 7 $ 5 $ 15 Total reclassifications for the period, net of tax $ 6 $ 10 $ 14 $ 24 |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NOTE 23 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: Six Months Ended June 30, 2018 2017 Decrease (increase) in operating assets: Trade and other accounts receivables $ 37 $ (22) Inventories, stockpiles and ore on leach pads (211) (118) Other assets (17) — Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (123) (128) Reclamation and remediation liabilities (33) (32) Accrued tax liabilities (163) 32 $ (510) $ (268) |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | NOTE 24 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 June 30, 2018 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 419 $ 1,243 $ — $ 1,662 Costs and expenses: Costs applicable to sales (1) — 281 684 — 965 Depreciation and amortization 1 75 203 — 279 Reclamation and remediation — 4 33 — 37 Exploration — 15 39 — 54 Advanced projects, research and development — 8 28 — 36 General and administrative — 22 41 — 63 Other expense, net — 1 12 — 13 1 406 1,040 — 1,447 Other income (expense): Other income, net (5) 20 124 — 139 Interest income - intercompany 17 11 12 (40) — Interest expense - intercompany (11) — (29) 40 — Interest expense, net (48) — (1) — (49) (47) 31 106 — 90 Income (loss) before income and mining tax and other items (48) 44 309 — 305 Income and mining tax benefit (expense) 10 (7) (21) — (18) Equity income (loss) of affiliates 330 (20) (7) (310) (7) Net income (loss) from continuing operations 292 17 281 (310) 280 Net income (loss) from discontinued operations — — 18 — 18 Net income (loss) 292 17 299 (310) 298 Net loss (income) attributable to noncontrolling interests: — — (6) — (6) Net income (loss) attributable to Newmont stockholders $ 292 $ 17 $ 293 $ (310) $ 292 Comprehensive income (loss) $ 299 $ 17 $ 299 $ (310) $ 305 Comprehensive loss (income) attributable to noncontrolling interests — — (6) — (6) Comprehensive income (loss) attributable to Newmont stockholders $ 299 $ 17 $ 293 $ (310) $ 299 (1) Excludes Depreciation and amortization and Reclamation and remediation. Three Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 517 $ 1,358 $ — $ 1,875 Costs and expenses: Costs applicable to sales (1) — 280 719 — 999 Depreciation and amortization 1 82 227 — 310 Reclamation and remediation — 4 39 — 43 Exploration — 13 38 — 51 Advanced projects, research and development — 2 30 — 32 General and administrative — 18 40 — 58 Other expense, net — 2 12 — 14 1 401 1,105 — 1,507 Other income (expense): Other income, net 23 3 5 — 31 Interest income - intercompany 23 24 15 (62) — Interest expense - intercompany (14) (4) (44) 62 — Interest expense, net (59) (1) (4) — (64) (27) 22 (28) — (33) Income (loss) before income and mining tax and other items (28) 138 225 — 335 Income and mining tax benefit (expense) 9 (22) (153) — (166) Equity income (loss) of affiliates 194 (150) (11) (36) (3) Net income (loss) from continuing operations 175 (34) 61 (36) 166 Net income (loss) from discontinued operations — — (15) — (15) Net income (loss) 175 (34) 46 (36) 151 Net loss (income) attributable to noncontrolling interests — — 24 — 24 Net income (loss) attributable to Newmont stockholders 175 (34) 70 (36) 175 Comprehensive income (loss) 179 (29) 41 (36) 155 Comprehensive loss (income) attributable to noncontrolling interests — — 24 — 24 Comprehensive income (loss) attributable to Newmont stockholders $ 179 $ (29) $ 65 $ (36) $ 179 (1) Excludes Depreciation and amortization and Reclamation and remediation. Six Months Ended June 30, 2018 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 931 $ 2,548 $ — $ 3,479 Costs and expenses: Costs applicable to sales (1) — 605 1,389 — 1,994 Depreciation and amortization 2 162 416 — 580 Reclamation and remediation — 7 58 — 65 Exploration — 26 68 — 94 Advanced projects, research and development — 14 56 — 70 General and administrative — 41 81 — 122 Other expense, net — 2 22 — 24 2 857 2,090 — 2,949 Other income (expense): Other income, net 3 27 130 — 160 Interest income - intercompany 51 22 21 (94) — Interest expense - intercompany (19) — (75) 94 — Interest expense, net (97) (2) (3) — (102) (62) 47 73 — 58 Income (loss) before income and mining tax and other items (64) 121 531 — 588 Income and mining tax benefit (expense) 13 (21) (115) — (123) Equity income (loss) of affiliates 535 (77) (16) (458) (16) Net income (loss) from continuing operations 484 23 400 (458) 449 Net income (loss) from discontinued operations — — 40 — 40 Net income (loss) 484 23 440 (458) 489 Net loss (income) attributable to noncontrolling interests — — (5) — (5) Net income (loss) attributable to Newmont stockholders $ 484 $ 23 $ 435 $ (458) $ 484 Comprehensive income (loss) $ 499 $ 23 $ 440 $ (458) $ 504 Comprehensive loss (income) attributable to noncontrolling interests — — (5) — (5) Comprehensive income (loss) attributable to Newmont stockholders $ 499 $ 23 $ 435 $ (458) $ 499 (1) Excludes Depreciation and amortization and Reclamation and remediation. Six Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 941 $ 2,624 $ — $ 3,565 Costs and expenses: Costs applicable to sales (1) — 583 1,373 — 1,956 Depreciation and amortization 2 165 443 — 610 Reclamation and remediation — 7 65 — 72 Exploration — 22 65 — 87 Advanced projects, research and development — 3 55 — 58 General and administrative — 35 78 — 113 Other expense, net — 8 23 — 31 2 823 2,102 — 2,927 Other income (expense): Other income, net 26 3 (7) — 22 Interest income - intercompany 47 24 22 (93) — Interest expense - intercompany (22) (4) (67) 93 — Interest expense, net (121) (3) (7) — (131) (70) 20 (59) — (109) Income (loss) before income and mining tax and other items (72) 138 463 — 529 Income and mining tax benefit (expense) 25 (22) (280) — (277) Equity income (loss) of affiliates 269 (234) (13) (27) (5) Net income (loss) from continuing operations 222 (118) 170 (27) 247 Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) 222 (118) 132 (27) 209 Net loss (income) attributable to noncontrolling interests — — 13 — 13 Net income (loss) attributable to Newmont stockholders $ 222 $ (118) $ 145 $ (27) $ 222 Comprehensive income (loss) $ 238 $ (109) $ 123 $ (27) $ 225 Comprehensive loss (income) attributable to noncontrolling interests — — 13 — 13 Comprehensive income (loss) attributable to Newmont stockholders $ 238 $ (109) $ 136 $ (27) $ 238 (1) Excludes Depreciation and amortization and Reclamation and remediation. Six Months Ended June 30, 2018 (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 $ (63) $ 251 $ 479 $ — $ 667 Net cash provided by (used in) operating activities of discontinued operations — — (5) — (5) Net cash provided by (used in) operating activities (63) 251 474 — 662 Investing activities: Additions to property, plant and mine development — (125) (364) — (489) Acquisitions, net — — (39) — (39) Proceeds from sales of investments — 11 4 — 15 Purchases of investments — — (6) — (6) Other — 2 — — 2 Net cash provided by (used in) investing activities — (112) (405) — (517) Financing activities: Dividends paid to common stockholders (150) — — — (150) Repurchase of common stock (70) — — — (70) Distributions to noncontrolling interests — — (69) — (69) Funding from noncontrolling interests — — 52 — 52 Proceeds from sale of noncontrolling interests — — 48 — 48 Payments for withholding of employee taxes related to stock-based compensation — (39) — — (39) Net intercompany borrowings (repayments) 283 (99) (184) — — Other — (1) (2) — (3) Net cash provided by (used in) financing activities 63 (139) (155) — (231) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (2) — (2) Net change in cash, cash equivalents and restricted cash — — (88) — (88) Cash, cash equivalents and restricted cash at beginning of period — — 3,298 — 3,298 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,210 $ — $ 3,210 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,127 $ — $ 3,127 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 82 — 82 Total cash, cash equivalents and restricted cash $ — $ — $ 3,210 $ — $ 3,210 Six Months Ended June 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 $ (116) $ 222 $ 796 $ — $ 902 Net cash provided by (used in) operating activities of discontinued operations — — (9) — (9) Net cash provided by (used in) operating activities (116) 222 787 — 893 Investing activities: Additions to property, plant and mine development — (121) (242) — (363) Acquisitions, net — — — — — Proceeds from sales of investments — — 19 — 19 Purchases of investments (109) — (4) — (113) Other — 2 15 — 17 Net cash provided by (used in) investing activities (109) (119) (212) — (440) Financing activities: Dividends paid to common stockholders (54) — — — (54) Repurchase of common stock — — — — — Distributions to noncontrolling interests — — (80) — (80) Funding from noncontrolling interests — — 46 — 46 Proceeds from sale of noncontrolling interests — — — — — Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Net intercompany borrowings (repayments) 282 (90) (192) — — Other (3) (1) (2) — (6) Net cash provided by (used in) financing activities 225 (104) (228) — (107) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net change in cash, cash equivalents and restricted cash — (1) 349 — 348 Cash, cash equivalents and restricted cash at beginning of period — 1 2,781 — 2,782 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,130 $ — $ 3,130 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,105 $ — $ 3,105 Restricted cash included in Other current assets — — 2 — 2 Restricted cash included in Other noncurrent assets — — 23 — 23 Total cash, cash equivalents and restricted cash $ — $ — $ 3,130 $ — $ 3,130 At June 30, 2018 (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 $ — $ — $ 3,127 $ — $ 3,127 Trade receivables — 15 118 — 133 Other accounts receivables — — 101 — 101 Intercompany receivable 2,075 4,882 3,692 (10,649) — Investments — — 56 — 56 Inventories — 167 530 — 697 Stockpiles and ore on leach pads — 215 496 — 711 Other current assets — 40 102 — 142 Current assets 2,075 5,319 8,222 (10,649) 4,967 Property, plant and mine development, net 16 3,059 9,303 (27) 12,351 Investments 113 5 235 — 353 Investments in subsidiaries 13,250 (463) 16 (12,803) — Stockpiles and ore on leach pads — 643 1,194 — 1,837 Deferred income tax assets 87 — 450 — 537 Non-current intercompany receivable 738 527 6 (1,271) — Other non-current assets — 244 366 — 610 Total assets $ 16,279 $ 9,334 $ 19,792 $ (24,750) $ 20,655 Liabilities: Lease and other financing obligations $ — $ 1 $ 12 $ — $ 13 Accounts payable — 74 286 — 360 Intercompany payable 1,364 2,529 6,756 (10,649) — Employee-related benefits — 100 140 — 240 Income and mining taxes — 8 63 — 71 Other current liabilities 52 115 229 — 396 Current liabilities 1,416 2,827 7,486 (10,649) 1,080 Debt 4,042 — — — 4,042 Lease and other financing obligations — 3 63 — 66 Reclamation and remediation liabilities — 312 2,057 — 2,369 Deferred income tax liabilities — 125 464 — 589 Employee-related benefits 1 223 168 — 392 Non-current intercompany payable 7 — 1,291 (1,298) — Other non-current liabilities — 13 271 — 284 Total liabilities 5,466 3,503 11,800 (11,947) 8,822 Contingently redeemable noncontrolling interest — — 48 — 48 Equity: Newmont stockholders’ equity 10,813 5,831 6,972 (12,803) 10,813 Noncontrolling interests — — 972 — 972 Total equity 10,813 5,831 7,944 (12,803) 11,785 Total liabilities and equity $ 16,279 $ 9,334 $ 19,792 $ (24,750) $ 20,655 At December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Trade receivables — 18 106 — 124 Other accounts receivables — — 113 — 113 Intercompany receivable 2,053 4,601 3,484 (10,138) — Investments — — 62 — 62 Inventories — 181 498 — 679 Stockpiles and ore on leach pads — 196 480 — 676 Other current assets — 38 115 — 153 Current assets 2,053 5,034 8,117 (10,138) 5,066 Property, plant and mine development, net 17 3,082 9,266 (27) 12,338 Investments 106 4 170 — 280 Investments in subsidiaries 12,012 (311) — (11,701) — Stockpiles and ore on leach pads — 648 1,200 — 1,848 Deferred income tax assets 84 5 460 — 549 Non-current intercompany receivable 1,700 401 7 (2,108) — Other non-current assets — 255 310 — 565 Total assets $ 15,972 $ 9,118 $ 19,530 $ (23,974) $ 20,646 Liabilities: Lease and other financing obligations $ — $ 1 $ 3 $ — $ 4 Accounts payable — 83 292 — 375 Intercompany payable 1,338 2,145 6,655 (10,138) — Employee-related benefits — 143 166 — 309 Income and mining taxes — 18 230 — 248 Other current liabilities 52 163 247 — 462 Current liabilities 1,390 2,553 7,593 (10,138) 1,398 Debt 4,040 — — — 4,040 Lease and other financing obligations — 4 17 — 21 Reclamation and remediation liabilities — 309 2,036 — 2,345 Deferred income tax liabilities — 121 474 — 595 Employee-related benefits — 222 164 — 386 Non-current intercompany payable 7 — 2,128 (2,135) — Other non-current liabilities — 18 324 — 342 Total liabilities 5,437 3,227 12,736 (12,273) 9,127 Contingently redeemable noncontrolling interest — — — — — Equity: Newmont stockholders’ equity 10,535 5,891 5,810 (11,701) 10,535 Noncontrolling interests — — 984 — 984 Total equity 10,535 5,891 6,794 (11,701) 11,519 Total liabilities and equity $ 15,972 $ 9,118 $ 19,530 $ (23,974) $ 20,646 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES (Environmental) | NOTE 25 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 3. 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 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 pursuant to the requirements of an Administrative Settlement Agreement and Order on Consent (“ASAOC”) between the USFS and Newmont. The EE/CA was provided to the USFS in April 2015. 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 ASAOC had been completed. During the third quarter of 2016, Newmont received a notice of completion of work per the ASAOC from the USFS, which finalized the ASAOC. The USFS issued an Action Memorandum in April 2018 to select the preferred Removal Action alternative identified in the EE/CA. Newmont is continuing to negotiate the terms of a future agreement with the USFS for Newmont to implement the approved Removal Action. No assurances can be made at this time with respect to the outcome of such negotiations and Newmont cannot predict the likelihood of additional expenditures related to this matter. Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned Midnite mine site and Dawn mill site . Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the U.S. Environmental Protection Agency (“EPA”). As per the Consent Decree approved by the U.S. District Court for the Eastern District of Washington on January 17, 2012, the following actions were required of Newmont, Dawn, the Department of the Interior and the EPA: (i) Newmont and Dawn would design, construct and implement the cleanup plan selected by the EPA in 2006 for the Midnite mine site; (ii) Newmont and Dawn would reimburse the EPA for its costs associated with overseeing the work; (iii) the Department of the Interior would contribute a lump sum amount toward past EPA costs and future costs related to the cleanup of the Midnite mine site; (iv) Newmont and Dawn would be responsible for all other EPA oversight costs and Midnite mine site cleanup costs; and (v) Newmont would post a surety bond for work at the site. During 2012, the Department of Interior contributed its share of past EPA costs and future costs related to the cleanup of the Midnite mine site in a lump sum payment of $42, which Newmont classified as restricted assets with interest on the Condensed Consolidated Balance Sheets for all periods presented. In 2016, Newmont completed the remedial design process (with the exception of the new water treatment plant (“WTP”) design which was awaiting the approval of the new National Pollutant Discharge Elimination System (“NPDES”) permit). Subsequently, the new NPDES permit was received in 2017 and the WTP design commenced in 2018. Newmont is managing the remediation project to implement Phase 1 remedial actions during the 2018 construction season with a focus on preparations to backfill Pit 4. In June 2018, $11 was released from the trust account for remedial work completed. 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 Tailing Disposal Area 1-4 reclamation earthworks component was completed during 2017 with the embankment erosion protection completed in Q2 2018. 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 $171 at June 30, 2018. Other Legal Matters Minera Yanacocha S.R.L. – 51.35% Newmont Owned 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, 2017 and 2018, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. OEFA has resolved some alleged violations with minimal or no findings. In 2015 and 2016, the water authority of Cajamarca issued notices of alleged regulatory violations, and resolved some allegations in 2017 with no findings. The experience with 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 44,540 units and the water authority alleged violations range from zero to 59 units, with each unit having a potential fine equivalent to approximately $.001287 based on current exchange rates ($0 to $57). 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 $83. 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. Other Commitments and Contingencies 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 26 SUBSEQUENT EVENTS In July 2018, Newmont signed a definitive agreement for the purchase of a 50% interest in the Galore Creek Partnership from NovaGold Resources Inc. for cash consideration of $100, as well as deferred payments of $100 and contingent payments of $75. Galore Creek is located in the traditional territory of the Tahltan Nation in northwestern British Columbia, Canada. In connection with the purchase from NovaGold, we also entered into a revised partnership agreement with Teck Resources Limited, who holds the remaining 50% interest. |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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. |
Contingently Redeemable Noncontrolling Interest | Contingently Redeemable Noncontrolling Interest Certain noncontrolling interests in consolidated entities meet the definition of redeemable financial instruments if the ability to redeem the interest is outside of the control of the consolidating entity. In such cases, these financial instruments are required to be classified outside of permanent equity (referred to as temporary equity). |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606, Revenue from contracts with customers, on January 1, 2018. Changes to the accounting policy as a result of adoption are discussed below. Newmont generates revenue by selling gold and copper produced from its mining operations. Refer to Note 3 for further information regarding the Company’s operating segments. The majority of the Company’s Sales come from the sale of refined gold; however, the end product at the Company’s gold operations is generally doré bars. Doré is an alloy consisting primarily of gold but also containing silver and other metals. Doré is sent to refiners to produce bullion that meets the required market standard of 99.95% gold. Under the terms of the Company’s refining agreements, the doré bars are refined for a fee, and the Company’s share of the refined gold and the separately-recovered silver is credited to its bullion account. Gold from doré bars credited to its bullion account is typically sold to banks or refiners. A portion of gold sold from Boddington and Kalgoorlie in Australia, Phoenix in Nevada and CC&V in Colorado is sold in the form of concentrate which includes copper and silver. The Company’s Sales also come from the sale of copper. Copper sales are generally in the form of concentrate, which is sold to smelters for further treatment and refining, and cathode. Copper sold from Boddington in Australia is sold in concentrate form and copper sold from Phoenix in Nevada is sold in either concentrate or cathode form. Generally, if a metal expected to be mined represents more than 10 to 20% of the life of mine sales value of all the metal expected to be mined, co-product accounting should apply. When the Company applies co-product accounting at an operation, revenue is recognized for each co-product metal sold, and shared costs applicable to sales are allocated based on the relative sales values of the co-product metals produced. Generally, if metal expected to be mined is less than the 10 to 20% of the life of mine sales value, by-product accounting should apply. Revenues from by-product sales, which are immaterial, are credited to Costs applicable to sales as a by-product credit. Copper is produced as a co-product at Phoenix and Boddington. Copper and silver is produced as a by-product at certain of the Company’s other operations. Gold Sales from Doré Production The Company recognizes revenue for gold from doré production when it satisfies the performance obligation of transferring gold inventory to the customer, which generally occurs upon transfer of gold bullion credits as this is the point at which the customer obtains the ability to direct the use and obtain substantially all of the remaining benefits of ownership of the asset. The Company generally recognizes the sale of gold bullion credits at the prevailing market price when gold bullion credits are delivered to the customer. The transaction price is determined based on the agreed upon market price and the number of ounces delivered. Payment is due upon delivery of gold bullion credits to the customer’s account. Gold and Copper Sales from Concentrate Production The Company recognizes revenue for gold and copper from concentrate production, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This generally occurs as material passes over the vessel's rail at the port of loading based on the date from the bill of lading, as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the material and the customer has the risk of loss. Newmont has elected to account for shipping and handling costs for concentrate contracts as fulfillment activities and not as promised goods or services; therefore these activities are not considered separate performance obligations. The Company generally sells gold and copper concentrate based on the future monthly average market price for a future month, dependent on the relevant contract, following the month in which the delivery to the customer takes place. The amount of revenue recognized for concentrates is initially recorded on a provisional basis based on the forward prices for the estimated month of settlement and the Company’s estimated metal quantities based on assay data. The Company’s sales based on a provisional price 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 concentrates at the forward price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through Sales each period prior to final settlement. The Company also adjusts estimated metal quantities used in computing provisional sales using new information and assay data from the smelter as it is received (if any). A provisional payment is generally due upon delivery of the concentrate to the customer. Final payment is due upon final settlement of price and quantity with the customer. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations and updated quantities between the date the sale is recorded and the date of final settlement. If a significant decline in metal prices occurs, or assay data results in a significant change in quantity between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the provisional payment received on the sale. Copper Sales from Cathode Production The Company recognizes revenue for copper from cathode production when it transfers control of copper cathode to the customer, which occurs when the material is picked up by the carrier. The Company generally sells copper cathode based on the weekly average market price for the week following production. The transaction price is determined based on this agreed upon price and the number of pounds delivered. Payment is due upon final settlement of price and quantity with the customer. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted 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 standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. The company retrospectively adopted this standard as of January 1, 2018. As there were no contracts outstanding as of December 31, 2017, there was no cumulative effect adjustment required to be recognized at January 1, 2018. The comparative information has not been adjusted and continues to be reported under the accounting standards in effect for those periods. The adoption of this standard primarily impacts the timing of revenue recognition on certain concentrate contracts based on the Company’s determination of when control is transferred. Revenue related to concentrate shipments is now generally recognized upon completion of loading the material for shipment to the customer and satisfaction of the Company’s significant performance obligation. Prior to the adoption of this standard, revenue was recognized for these contracts when the price was determinable, the concentrate had been loaded on a vessel or received by the customer, risk and title had been transferred and collection of the sales price was reasonably assured. Investments In January 2016, ASU No. 2016-01 was issued related to financial instruments. This ASU was further amended in February 2018 by ASU No. 2018-03. 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. The Company adopted this standard as of January 1, 2018. Upon adoption, the Company reclassified $115 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. 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. The Company adopted the guidance as of January 1, 2018. Upon adoption, the Company reclassified $6 for the six months ended June 30, 2017 of Acquisitions, net previously reported as a cash outflow from investing activities, to operating activities on the Consolidated Statements of Cash Flows related to contingent consideration payments. 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. The Company adopted this guidance as of January 1, 2018, and determined it had no impact on the Consolidated Financial Statements or disclosures. 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 present 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 Company retrospectively adopted this guidance as of December 31, 2017. Upon adoption, the Company included a reconciliation of Cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total shown in the Consolidated Statements of Cash Flows. Adoption of this guidance had no other impact on the Consolidated Financial Statements or disclosures. Employee Benefits In 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 to 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. The Company adopted this guidance as of January 1, 2018. The adoption of this guidance resulted in the recognition of other components of net benefit costs within Other income, net rather than Costs applicable to sales or General and administrative and is no longer included in costs that benefit the inventory or production process. Adoption of this guidance did not have a material impact on the Consolidated Financial Statements or disclosures. Hedging In 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 adopted this guidance as of January 1, 2018, and there was no material impact on the Consolidated Financial Statements or disclosures as a result of adoption. Recently Issued Accounting Pronouncements 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, in January 2018 by ASU No. 2018-01 and in July 2018 by ASU No. 2018-10. The new guidance modifies the classification criteria and requires lessees to recognize right-of-use assets and lease liabilities arising from most leases on the balance sheet with additional disclosures about leasing arrangements. 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 as of January 1, 2019. 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. To date, the Company has formed a cross-functional implementation team; commenced a completeness assessment over the lease population; begun the evaluation of the various practical expedients and policy elections that will be adopted; started to establish new policies, procedures and internal controls related to the new standard; and commenced the review of contracts that are expected to be outstanding as of the adoption date. Management is still completing its assessment of the impacts; however, based on the procedures performed, management has identified certain service contracts that contain embedded leases under the revised guidance. The Company expects that the adoption of the new standard will gross up the Consolidated Balance Sheets with the recognition of right-of-use assets and lease liabilities related to operating leases. The Company does not expect there will be a material impact to the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows. The Company is in the process of assessing the required disclosures of the new standard, and expects to provide additional qualitative and quantitative disclosures related to leasing arrangements upon adoption. Other Comprehensive Income Reclassifications Related to Tax Reform In February 2018, ASU 2018-02 was issued allowing companies the option to reclassify to retained earnings the tax effects related to items in Accumulated other comprehensive income (loss) as a result of the Tax Cuts and Jobs Act (the “Act”) that was enacted on December 22, 2017. This update is effective in fiscal years, including interim periods, beginning after December 15, 2018, and early adoption is permitted. This guidance should be applied either in the period of adoption or retrospectively to each period in which the effects of the change in the U.S. federal income tax rate in the Act is recognized. The Company is still completing its assessment of the impacts and anticipated adoption date of this guidance. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 Carlin $ 244 $ 178 $ 43 $ 8 $ 13 $ 42 Phoenix: Gold 63 44 10 Copper 21 14 4 Total Phoenix 84 58 14 1 10 11 Twin Creeks 114 66 16 3 33 22 Long Canyon 56 18 19 6 11 2 CC&V 88 42 14 1 25 9 Other North America — — 1 9 (9) 2 North America 586 362 107 28 83 88 Yanacocha 147 92 22 12 (3) 24 Merian 132 61 20 6 46 27 Other South America — — 4 8 (13) 1 South America 279 153 46 26 30 52 Boddington: Gold 220 130 24 Copper 60 32 6 Total Boddington 280 162 30 — 92 10 Tanami 134 74 16 4 43 26 Kalgoorlie 122 62 6 3 53 5 Other Australia — — 2 2 (2) — Australia 536 298 54 9 186 41 Ahafo 132 90 29 4 6 64 Akyem 129 62 41 4 21 11 Other Africa — — — 1 (3) — Africa 261 152 70 9 24 75 Corporate and Other — — 2 18 (18) 2 Consolidated $ 1,662 $ 965 $ 279 $ 90 $ 305 $ 258 (1) Consolidated capital expenditures on a cash basis were $258. 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 June 30, 2017 Carlin $ 279 $ 170 $ 46 $ 5 $ 55 $ 48 Phoenix: Gold 67 46 12 Copper 24 16 4 Total Phoenix 91 62 16 3 9 4 Twin Creeks 156 61 17 2 72 9 Long Canyon 57 13 18 5 21 3 CC&V 166 74 33 3 53 4 Other North America — — 1 4 (5) 1 North America 749 380 131 22 205 69 Yanacocha 149 134 34 8 (59) 9 Merian 150 64 26 4 54 22 Other South America — — 3 9 (16) — South America 299 198 63 21 (21) 31 Boddington: Gold 262 147 31 Copper 52 28 6 Total Boddington 314 175 37 1 94 14 Tanami 123 58 15 6 55 28 Kalgoorlie 113 55 5 1 52 4 Other Australia — — 1 2 (5) 2 Australia 550 288 58 10 196 48 Ahafo 112 60 15 10 25 36 Akyem 165 73 40 5 45 6 Other Africa — — — 1 (4) — Africa 277 133 55 16 66 42 Corporate and Other — — 3 14 (111) 2 Consolidated $ 1,875 $ 999 $ 310 $ 83 $ 335 $ 192 (1) Includes an increase in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $183. 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) Six Months Ended June 30, 2018 Carlin $ 548 $ 377 $ 95 $ 15 $ 55 $ 72 Phoenix: Gold 163 106 25 Copper 47 30 8 Total Phoenix 210 136 33 2 36 18 Twin Creeks 224 130 31 5 64 40 Long Canyon 115 34 38 12 30 5 CC&V 171 81 29 3 51 18 Other North America — — 1 13 (15) 4 North America 1,268 758 227 50 221 157 Yanacocha 290 206 52 22 (31) 40 Merian 298 128 42 9 120 49 Other South America — — 7 15 (29) 1 South America 588 334 101 46 60 90 Boddington: Gold 430 258 47 Copper 112 63 12 Total Boddington 542 321 59 — 166 26 Tanami 301 150 35 10 110 47 Kalgoorlie 239 122 12 6 101 13 Other Australia — — 3 4 (4) 1 Australia 1,082 593 109 20 373 87 Ahafo 270 180 55 8 22 126 Akyem 271 129 83 7 45 21 Other Africa — — — 2 (5) — Africa 541 309 138 17 62 147 Corporate and Other — — 5 31 (128) 6 Consolidated $ 3,479 $ 1,994 $ 580 $ 164 $ 588 $ 487 (1) Includes a decrease in accrued capital expenditures of $2; consolidated capital expenditures on a cash basis were $489. 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) Six Months Ended June 30, 2017 Carlin $ 543 $ 378 $ 99 $ 8 $ 54 $ 96 Phoenix: Gold 121 90 23 Copper 50 34 9 Total Phoenix 171 124 32 4 7 10 Twin Creeks 258 111 31 4 107 17 Long Canyon 96 25 31 10 30 7 CC&V 322 149 65 7 99 8 Other North America — — 1 7 (10) 3 North America 1,390 787 259 40 287 141 Yanacocha 328 253 70 12 (50) 20 Merian 283 112 47 8 114 38 Other South America — — 7 19 (35) — South America 611 365 124 39 29 58 Boddington: Gold 490 269 57 Copper 97 49 10 Total Boddington 587 318 67 1 180 29 Tanami 215 108 31 9 75 52 Kalgoorlie 217 107 9 3 95 8 Other Australia — — 3 3 (20) 3 Australia 1,019 533 110 16 330 92 Ahafo 226 136 38 16 34 53 Akyem 319 135 74 6 100 12 Other Africa — — — 2 (5) — Africa 545 271 112 24 129 65 Corporate and Other — — 5 26 (246) 4 Consolidated $ 3,565 $ 1,956 $ 610 $ 145 $ 529 $ 360 (1) Includes a decrease in accrued capital expenditures of $ 3 ; consolidated capital expenditures on a cash basis were $363. |
SALES (Tables)
SALES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
SALES | |
Schedule of sales by mining operation, product and by inventory type | Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Three Months Ended June 30, 2018 Carlin $ 244 $ — $ — $ — $ 244 Phoenix 30 33 9 12 84 Twin Creeks 114 — — — 114 Long Canyon 56 — — — 56 CC&V 88 — — — 88 North America 532 33 9 12 586 Yanacocha 147 — — — 147 Merian 132 — — — 132 South America 279 — — — 279 Boddington 64 156 60 — 280 Tanami 134 — — — 134 Kalgoorlie 122 — — — 122 Australia 320 156 60 — 536 Ahafo 132 — — — 132 Akyem 129 — — — 129 Africa 261 — — — 261 Consolidated $ 1,392 $ 189 $ 69 $ 12 $ 1,662 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Three Months Ended June 30, 2017 Carlin $ 279 $ — $ — $ — $ 279 Phoenix 30 37 12 12 91 Twin Creeks 156 — — — 156 Long Canyon 57 — — — 57 CC&V 161 5 — — 166 North America 683 42 12 12 749 Yanacocha 149 — — — 149 Merian 150 — — — 150 South America 299 — — — 299 Boddington 64 198 52 — 314 Tanami 123 — — — 123 Kalgoorlie 113 — — — 113 Australia 300 198 52 — 550 Ahafo 112 — — — 112 Akyem 165 — — — 165 Africa 277 — — — 277 Consolidated $ 1,559 $ 240 $ 64 $ 12 $ 1,875 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Six Months Ended June 30, 2018 Carlin $ 548 $ — $ — $ — $ 548 Phoenix 71 92 21 26 210 Twin Creeks 224 — — — 224 Long Canyon 115 — — — 115 CC&V 171 — — — 171 North America 1,129 92 21 26 1,268 Yanacocha 290 — — — 290 Merian 298 — — — 298 South America 588 — — — 588 Boddington 123 307 112 — 542 Tanami 301 — — — 301 Kalgoorlie 239 — — — 239 Australia 663 307 112 — 1,082 Ahafo 270 — — — 270 Akyem 271 — — — 271 Africa 541 — — — 541 Consolidated $ 2,921 $ 399 $ 133 $ 26 $ 3,479 Gold Sales Copper Sales Gold Sales from from Copper Sales from Doré Concentrate Concentrate from Cathode Production Production Production Production Total Sales Six Months Ended June 30, 2017 Carlin $ 543 $ — $ — $ — $ 543 Phoenix 54 67 27 23 171 Twin Creeks 258 — — — 258 Long Canyon 96 — — — 96 CC&V 311 11 — — 322 North America 1,262 78 27 23 1,390 Yanacocha 328 — — — 328 Merian 283 — — — 283 South America 611 — — — 611 Boddington 123 367 97 — 587 Tanami 215 — — — 215 Kalgoorlie 217 — — — 217 Australia 555 367 97 — 1,019 Ahafo 226 — — — 226 Akyem 319 — — — 319 Africa 545 — — — 545 Consolidated $ 2,973 $ 445 $ 124 $ 23 $ 3,565 |
Schedule of receivables included within Trade Receivables | At June 30, At December 31, 2018 2017 Receivables from Sales: Gold sales from doré $ 36 $ — Gold and copper sales from concentrate production 96 Copper sales from cathode production 1 Total receivables from Sales $ 133 $ |
ASU No. 2014-09 Revenue Recognition | |
SALES | |
Schedule of impact of adoption during period | Three Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Operations As Reported Change of ASC 606 Sales $ 1,662 $ 89 $ 1,751 Costs applicable to sales $ 965 $ 54 $ 1,019 Depreciation and amortization $ 279 $ 12 $ 291 Income (loss) before income and mining tax and other items $ 305 $ 23 $ 328 Income and mining tax benefit (expense) $ (18) $ (6) $ (24) Net income (loss) $ 298 $ 17 $ 315 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 274 $ 17 $ 291 Discontinued operations 18 — 18 $ 292 $ 17 $ 309 Net income (loss) per common share Basic: Continuing operations $ 0.52 $ 0.03 $ 0.55 Discontinued operations 0.03 — 0.03 $ 0.55 $ 0.03 $ 0.58 Diluted: Continuing operations $ 0.51 $ 0.03 $ 0.54 Discontinued operations 0.03 — 0.03 $ 0.54 $ 0.03 $ 0.57 Six Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Operations As Reported Change of ASC 606 Sales $ 3,479 $ (16) $ 3,463 Costs applicable to sales $ 1,994 $ (8) $ 1,986 Depreciation and amortization $ 580 $ (2) $ 578 Income (loss) before income and mining tax and other items $ 588 $ (6) $ 582 Income and mining tax benefit (expense) $ (123) $ 2 $ (121) Net income (loss) $ 489 $ (4) $ 485 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 444 $ (4) $ 440 Discontinued operations 40 — 40 $ 484 $ (4) $ 480 Net income (loss) per common share Basic: Continuing operations $ 0.84 $ (0.01) $ 0.83 Discontinued operations 0.07 — 0.07 $ 0.91 $ (0.01) $ 0.90 Diluted: Continuing operations $ 0.83 $ (0.01) $ 0.82 Discontinued operations 0.07 — 0.07 $ 0.90 $ (0.01) $ 0.89 Six Months Ended June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Statement of Cash Flows As Reported Change of ASC 606 Operating activities: Net income (loss) $ 489 $ (4) $ 485 Adjustments: Depreciation and amortization $ 580 $ (2) $ 578 Net change in operating assets and liabilities $ (510) $ 6 $ (504) Net cash provided by (used in) operating activities of continuing operations $ 667 $ — $ 667 At June 30, 2018 Balance without Effect of Adoption Condensed Consolidated Balance Sheet As Reported Change of ASC 606 Trade receivables $ 133 $ (16) $ 117 Inventories $ 697 $ 10 $ 707 Total assets $ 20,655 $ (6) $ 20,649 Income and mining taxes payable $ 71 $ (2) $ 69 Total liabilities $ 8,822 $ (2) $ 8,820 Retained earnings $ 592 $ (4) $ 588 Newmont stockholders' equity $ 10,813 $ (4) $ 10,809 Total equity $ 11,785 $ (4) $ 11,781 Total liabilities and equity $ 20,655 $ (6) $ 20,649 |
RECLAMATION AND REMEDIATION (Ta
RECLAMATION AND REMEDIATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
RECLAMATION AND REMEDIATION | |
Reclamation and Remediation Expense | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Reclamation adjustments $ — $ 15 $ — $ 15 Reclamation accretion 25 25 49 48 Total reclamation expense 25 40 49 63 Remediation adjustments 11 2 $ 14 $ 7 Remediation accretion 1 1 2 2 Total remediation expense 12 3 $ 16 $ 9 $ 37 $ 43 $ 65 $ 72 |
Reconciliation of Reclamation Liabilities | 2018 2017 Reclamation balance at January 1, $ 2,144 $ 1,913 Additions, changes in estimates and other — 15 Payments, net (13) (11) Accretion expense 49 48 Reclamation balance at June 30, $ 2,180 $ 1,965 |
Reconciliation of Remediation Liabilities | 2018 2017 Remediation balance at January 1, $ 304 $ 312 Additions, changes in estimates and other 8 2 Payments, net (20) (21) Accretion expense 2 2 Remediation balance at June 30, $ 294 $ 295 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER EXPENSE, NET | |
Other Expense, Net | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Restructuring and other $ 9 $ 1 $ 15 $ 8 Acquisition cost adjustments — 3 — 5 Impairment of long-lived assets — — — 3 Other 4 10 9 15 $ 13 $ 14 $ 24 $ 31 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER INCOME, NET. | |
Other Income, Net | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Gain (loss) on asset and investment sales, net $ 100 $ 14 $ 99 $ 16 Interest 13 6 24 10 Foreign currency exchange, net 14 (4) 21 (21) Change in fair value of marketable equity securities 5 — 5 — Tanami insurance proceeds — 13 — 13 Other 7 2 11 4 $ 139 $ 31 $ 160 $ 22 |
INCOME AND MINING TAXES (Tables
INCOME AND MINING TAXES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INCOME AND MINING TAXES | |
Income and Mining Tax Expense Reconciliation | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Income (loss) before income and mining tax and other items $ 305 $ 335 $ 588 $ 529 U.S. Federal statutory tax rate % $ 64 35 % $ 117 21 % $ 123 35 % $ 185 Reconciling items: Percentage depletion (3) (8) (13) (42) (4) (25) (14) (74) Change in valuation allowance on deferred tax assets (5) (15) 21 72 1 3 26 139 Adjustment to provisional expense related to the Tax Cuts and Job Act (15) (45) — — (8) (45) — — Mining and other taxes 3 9 5 16 5 30 7 35 Foreign rate differential 5 15 — — 8 46 — — Other — (2) 2 3 (2) (9) (2) (8) Income and mining tax expense 6 % $ 18 50 % $ 166 21 % $ 123 52 % $ 277 |
NET INCOME (LOSS) FROM DISCON42
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | |
Schedule of Net income (loss) from discontinued operations | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Holt royalty obligation $ 17 $ (15) $ 36 $ (38) Batu Hijau contingent consideration (1) 1 — 4 — Net income (loss) from discontinued operations $ 18 $ (15) $ 40 $ (38) (1) See Note 15 for details on the Batu Hijau contingent consideration. |
NET INCOME (LOSS) ATTRIBUTABL43
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
Schedule of Net Income (Loss) Attributable to Noncontrolling Interests | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Merian $ 11 $ 13 $ 28 $ 26 Yanacocha (5) (37) (23) (38) Other — — — (1) $ 6 $ (24) $ 5 $ (13) |
Schedule summarizing the consolidated assets and liabilities of VIE | At June 30, 2018 At December 31, 2017 Current assets: Cash and cash equivalents $ 44 $ 27 Trade receivables 23 — Inventories 81 79 Stockpiles and ore on leach pads 31 21 Other current assets (1) 4 6 183 133 Non-current assets: Property, plant and mine development, net 777 769 Other non-current assets (2) 3 8 Total assets $ 963 $ 910 Current liabilities: Accounts payable $ 27 $ 22 Other current liabilities (3) 26 28 53 50 Non-current liabilities: Reclamation and remediation liabilities 18 18 Other non-current liabilities (4) 1 1 Total liabilities $ 72 $ 69 (1) Other current assets include other accounts receivables, prepaid assets and other current assets. (2) Other non-current assets include intangibles, stockpiles and ore on leach pads. (3) Other current liabilities include employee-related benefits and other current liabilities. (4) Other non-current liabilities include employee-related benefits. |
NET INCOME (LOSS) PER COMMON 44
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
NET INCOME (LOSS) PER COMMON SHARE | |
Summary of Income (Loss) per Common Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income (loss) attributable to Newmont stockholders: Continuing operations $ 274 $ 190 $ 444 $ 260 Discontinued operations 18 (15) 40 (38) $ 292 $ 175 $ 484 $ 222 Weighted average common shares (millions): Basic 533 533 534 533 Effect of employee stock-based awards 2 2 1 1 Diluted 535 535 535 534 Net income (loss) per common share attributable to Newmont stockholders: Basic: Continuing operations $ 0.52 $ 0.36 $ 0.84 $ 0.49 Discontinued operations 0.03 (0.03) 0.07 (0.07) $ 0.55 $ 0.33 $ 0.91 $ 0.42 Diluted: Continuing operations $ 0.51 $ 0.36 $ 0.83 $ 0.49 Discontinued operations 0.03 (0.03) 0.07 (0.07) $ 0.54 $ 0.33 $ 0.90 $ 0.42 |
EMPLOYEE PENSION AND OTHER BE45
EMPLOYEE PENSION AND OTHER BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Pension Benefits | |
EMPLOYEE-RELATED BENEFITS | |
Schedule of components of the net periodic pension and other benefits costs | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Pension benefit costs, net (1) : Service cost $ 8 $ 8 $ 16 $ 15 Interest cost 11 11 21 22 Expected return on plan assets (17) (16) (34) (31) Amortization, net 8 7 16 14 Settlements — — — 4 $ 10 $ 10 $ 19 $ 24 |
Other Benefits | |
EMPLOYEE-RELATED BENEFITS | |
Schedule of components of the net periodic pension and other benefits costs | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Other benefit costs (credits), net (1) : Service cost $ 1 $ 1 $ 1 $ 1 Interest cost $ 1 $ 1 $ 2 $ 2 Amortization, net (2) (3) (4) (4) $ — $ (1) $ (1) $ (1) (1) Service costs are included in Costs applicable to sales or General and administrative and the other components of benefit costs and settlements are included in Other income, net . |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION | |
Schedule of stock based compensation by award | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Stock-based compensation: Performance leveraged stock units $ 7 $ 9 $ 16 $ 17 Restricted stock units 12 10 22 17 Strategic stock units — — — 1 $ 19 $ 19 $ 38 $ 35 |
FAIR VALUE ACCOUNTING (Tables)
FAIR VALUE ACCOUNTING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE ACCOUNTING | |
Fair Value Measurement of Assets and Liabilities | Fair Value at June 30, 2018 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,127 $ 3,127 $ — $ — Restricted cash 83 83 — — Trade receivable from provisional gold and copper concentrate sales, net 86 — 86 — Diesel forward derivative contracts 7 — 7 — Marketable equity securities 178 166 12 — Restricted marketable debt securities 51 22 29 — Restricted other assets 7 7 — — Batu Hijau contingent consideration 27 — — 27 $ 3,566 $ 3,405 $ 134 $ 27 Liabilities: Debt (1) $ 4,391 $ — $ 4,391 $ — Holt royalty obligation 193 — — 193 $ 4,584 $ — $ 4,391 $ 193 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 3,259 $ 3,259 $ — $ — Restricted cash 39 39 — — Trade receivable from provisional gold and copper concentrate sales, net 111 — 111 — Diesel forward derivative contracts 6 — 6 — Marketable equity securities 165 165 — — Restricted marketable debt securities 55 17 38 — Restricted other assets 9 9 — — Batu Hijau contingent consideration 23 — — 23 $ 3,667 $ 3,489 $ 155 $ 23 Liabilities: Debt (1) $ 4,671 $ — $ 4,671 $ — Foreign exchange forward derivative contracts 1 — 1 — Holt royalty obligation 243 — — 243 $ 4,915 $ — $ 4,672 $ 243 (1) Debt, exclusive of capital leases, is carried at amortized cost. The outstanding carrying value was $4,042 and $4,040 at June 30, 2018 and December 31, 2017, respectively. The fair value measurement of debt was based on an independent third party pricing source. |
Fair Value Inputs Assets Liabilities Quantitative Information | At June 30, Range/Weighted Description 2018 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 27 Monte Carlo Discount rate 17.50 % Short-term copper price $ Long-term copper price $ Holt royalty obligation $ 193 Monte Carlo Discount rate 3.99 % Short-term gold price $ 1,306 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 334 - 1,576 At December 31, Range/Weighted Description 2017 Valuation technique Unobservable input average Batu Hijau contingent consideration $ 23 Monte Carlo Discount rate 17.50 % Short-term copper price $ 3.09 Long-term copper price $ 3.00 Holt royalty obligation $ 243 Monte Carlo Discount rate 3.32 % Short-term gold price $ 1,275 Long-term gold price $ 1,300 Gold production scenarios (in 000's of ounces) 402 - 1,779 |
Changes in the Fair Value of the Company's Level 3 Financial Assets | Batu Hijau Holt Contingent Total Royalty Total Consideration (1) Assets Obligation (1) Liabilities Fair value at December 31, 2017 $ 23 $ 23 $ 243 $ 243 Settlements — — (5) (5) Revaluation 4 4 (45) (45) Fair value at June 30, 2018 $ 27 $ 27 $ 193 $ 193 Asset Backed Batu Hijau Holt Commercial Contingent Total Royalty Total Paper (2) Consideration (1) Assets Obligation (1) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 187 $ 187 Settlements (18) — (18) (6) (6) Revaluation — — — 59 59 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 240 $ 240 (1) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (2) The gain (loss) recognized is included in Other income, net. . |
Changes in the Fair Value of the Company's Level 3 Financial Liabilities | Asset Backed Batu Hijau Holt Commercial Contingent Total Royalty Total Paper (1) Consideration (2) Assets Obligation (2) Liabilities Fair value at December 31, 2017 $ — $ 23 $ 23 $ 243 $ 243 Settlements — — — (5) (5) Revaluation — 4 4 (45) (45) Fair value at June 30, 2018 $ — $ 27 $ 27 $ 193 $ 193 Asset Backed Batu Hijau Holt Commercial Contingent Total Royalty Total Paper (2) Consideration (1) Assets Obligation (1) Liabilities Fair value at December 31, 2016 $ 18 $ 13 $ 31 $ 187 $ 187 Settlements (18) — (18) (6) (6) Revaluation — — — 59 59 Fair value at June 30, 2017 $ — $ 13 $ 13 $ 240 $ 240 (1) The gain (loss) recognized is included in Net income (loss) from discontinued operations . (2) The gain (loss) recognized is included in Other income, net . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments Designated as Hedges | Fair Values of Derivative Instruments At June 30, 2018 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities Diesel fixed forwards $ 5 $ 2 $ — $ — Fair Values of Derivative Instruments At December 31, 2017 Other Other Other Other Current Non-current Current Non-current Assets Assets Liabilities Liabilities A$ operating fixed forwards $ — $ — $ 1 $ — Diesel fixed forwards 6 — — — $ 6 $ — $ 1 $ — |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 4 $ 12 $ 10 Other income, net Settlements — — — 4 Other income, net Total before tax 6 4 12 14 Tax (2) (1) (3) (5) Net of tax $ 4 $ 3 $ 9 $ 9 Hedge instruments adjustments: Operating cash flow hedges $ — $ 8 $ 1 $ 18 Costs applicable to sales Interest rate contracts 3 3 6 5 Interest expense, net Total before tax 3 11 7 23 Tax (1) (4) (2) (8) Net of tax $ 2 $ 7 $ 5 $ 15 Total reclassifications for the period, net of tax $ 6 $ 10 $ 14 $ 24 |
Location and Amount of Gains (Losses) Reported in Consolidated Financial Statements | Foreign Currency Diesel Fixed Interest Exchange Contracts Forward Contracts Rate Contracts 2018 2017 2018 2017 2018 2017 For the three months ended June 30, Cash flow hedging relationships: (Gain) loss recognized in Other comprehensive income (loss) $ — $ — $ (4) $ 3 $ — $ — (Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) $ 2 $ 7 $ (2) $ 1 $ 3 $ 3 For the six months ended June 30, Cash flow hedging relationships: (Gain) loss recognized in Other comprehensive income (loss) $ — $ (4) $ (5) $ 6 $ — $ — (Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) $ 5 $ 15 $ (4) $ 3 $ 6 $ 5 |
Cash Flow Hedges | |
DERIVATIVE INSTRUMENTS | |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | (Gain) Loss Recognized from Cash Flow Hedges Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Costs applicable to sales $ 965 $ 999 $ 1,994 $ 1,956 Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from diesel hedging instruments $ (2) $ 1 $ (4) $ 3 Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from foreign currency hedging instruments $ 2 $ 7 $ 5 $ 15 Total Interest expense, net $ 49 $ 64 $ $ Amount of (gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) from discontinued interest rate hedging instruments $ 3 $ 3 $ 6 $ 5 |
Cash Flow Hedges | Diesel forward contracts | |
DERIVATIVE INSTRUMENTS | |
Outstanding Derivative Contracts | Expected Maturity Date Total/ 2018 2019 2020 2021 Average Diesel Fixed Forward Contracts: North America Diesel gallons (millions) 7 3 3 1 14 Average rate ($/gallon) 1.68 1.78 1.97 2.04 1.79 South America Diesel gallons (millions) — — 2 — 2 Average rate ($/gallon) — — 1.88 1.99 1.89 Australia Diesel barrels (thousands) — 12 73 17 102 Average rate ($/barrel) — 85.93 77.06 79.69 78.54 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENTS | |
Schedule of investments | At June 30, 2018 Fair Value/ Equity Basis (1) Current: Marketable equity securities $ 56 Non-current: Marketable equity securities: Continental Gold Inc. $ 108 Warrants 12 Other marketable equity securities 2 122 Other investments 5 Equity method investments: TMAC Resources Inc. (28.71%) 102 Maverix Metals Inc. (27.98%) 78 Minera La Zanja S.R.L. (46.94%) 46 226 $ 353 Non-current restricted investments: (2) Marketable debt securities (3) $ 51 Other assets 7 $ 58 |
Schedule of reconciliation of cost to fair value for Available-for-sale and other investments | At December 31, 2017 Cost/Equity Unrealized Fair Value/ Basis Gain Loss Equity Basis (1) Current: Marketable equity securities $ 38 $ 32 $ (8) $ 62 Non-current: Marketable equity securities: Continental Gold Inc. $ 109 $ — $ (8) $ 101 Warrants 7 — — 7 Other marketable equity securities 4 — (2) 2 120 — (10) 110 Other investments 5 — — 5 Equity method investments: TMAC Resources Inc. (28.79%) 115 — — 115 Minera La Zanja S.R.L. (46.94%) 50 — — 50 165 — — 165 $ 290 $ — $ (10) $ 280 Non-current restricted investments: (2) Marketable debt securities $ 58 $ — $ (3) $ 55 Other assets 8 1 — 9 $ 66 $ 1 $ (3) $ 64 (1) Subsequent to the adoption of ASU No. 2016-01 on January 1, 2018, unrealized gains and losses related to marketable equity securities are recorded in Other income, net . Previously, gains and losses related to unrealized marketable equity securities were recorded in Other comprehensive income (loss) . (2) Non-current restricted investments are legally pledged for purposes of settling reclamation and remediation obligations and are included in Other non-current assets . For further information regarding these amounts, see Note 5. (3) There were nominal unrealized gains or losses recorded in Accumulated other comprehensive income (loss) as of June 30, 2018, related to marketable debt securities. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventories | |
Summary of Inventories | At June 30, At December 31, 2018 2017 Materials and supplies $ 436 $ 416 In-process 135 131 Concentrate and copper cathode 91 83 Precious metals 35 49 $ 697 $ 679 |
STOCKPILES AND ORE ON LEACH P51
STOCKPILES AND ORE ON LEACH PADS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
STOCKPILES AND ORE ON LEACH PADS | |
Stockpiles and Ore on Leach Pads | At June 30, At December 31, 2018 2017 Current: Stockpiles $ 351 $ 330 Ore on leach pads 360 346 $ 711 $ 676 Non-current: Stockpiles $ 1,454 $ 1,502 Ore on leach pads 383 346 $ 1,837 $ 1,848 |
Stockpiles and Ore on Leach Pads, by Segment | At June 30, At December 31, 2018 2017 Stockpiles and ore on leach pads: Carlin $ 469 $ 441 Phoenix 68 68 Twin Creeks 329 340 Long Canyon 45 34 CC&V 333 314 Yanacocha 263 270 Merian 31 25 Boddington 445 431 Tanami 1 4 Kalgoorlie 126 125 Ahafo 386 409 Akyem 52 63 $ 2,548 $ 2,524 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER LIABILITIES | |
Other Liabilities | At June 30, At December 31, 2018 2017 Other current liabilities: Accrued operating costs $ 109 $ 124 Reclamation and remediation liabilities 105 103 Accrued capital expenditures 69 77 Accrued interest 52 52 Royalties 37 63 Holt royalty obligation 14 15 Taxes other than income and mining 5 7 Derivative instruments — 1 Other 5 20 $ 396 $ 462 Other non-current liabilities: Holt royalty obligation $ 179 $ 228 Income and mining taxes 43 47 Power supply agreements 30 32 Social development obligations 21 22 Other 11 13 $ 284 $ 342 |
RECLASSIFICATIONS OUT OF ACCU53
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 $ (116) $ 130 $ (208) $ (98) $ (292) Cumulative effect adjustment of adopting ASU No. 2016-01 115 — — — 115 Net current-period other comprehensive income (loss): Change in other comprehensive income (loss) before reclassifications 1 (4) — 4 1 Reclassifications from accumulated other comprehensive income (loss) — — 9 5 14 Other comprehensive income (loss) $ 1 $ (4) $ 9 $ 9 $ 15 Balance at June 30, 2018 $ — $ 126 $ (199) $ (89) $ (162) |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Pension and other post-retirement benefit adjustments: Amortization $ 6 $ 4 $ 12 $ 10 Other income, net Settlements — — — 4 Other income, net Total before tax 6 4 12 14 Tax (2) (1) (3) (5) Net of tax $ 4 $ 3 $ 9 $ 9 Hedge instruments adjustments: Operating cash flow hedges $ — $ 8 $ 1 $ 18 Costs applicable to sales Interest rate contracts 3 3 6 5 Interest expense, net Total before tax 3 11 7 23 Tax (1) (4) (2) (8) Net of tax $ 2 $ 7 $ 5 $ 15 Total reclassifications for the period, net of tax $ 6 $ 10 $ 14 $ 24 |
NET CHANGE IN OPERATING ASSET54
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 | Six Months Ended June 30, 2018 2017 Decrease (increase) in operating assets: Trade and other accounts receivables $ 37 $ (22) Inventories, stockpiles and ore on leach pads (211) (118) Other assets (17) — Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (123) (128) Reclamation and remediation liabilities (33) (32) Accrued tax liabilities (163) 32 $ (510) $ (268) |
CONDENSED CONSOLIDATING FINAN55
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |
Condensed Consolidating Statement of Operation | Three Months Ended June 30, 2018 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 419 $ 1,243 $ — $ 1,662 Costs and expenses: Costs applicable to sales (1) — 281 684 — 965 Depreciation and amortization 1 75 203 — 279 Reclamation and remediation — 4 33 — 37 Exploration — 15 39 — 54 Advanced projects, research and development — 8 28 — 36 General and administrative — 22 41 — 63 Other expense, net — 1 12 — 13 1 406 1,040 — 1,447 Other income (expense): Other income, net (5) 20 124 — 139 Interest income - intercompany 17 11 12 (40) — Interest expense - intercompany (11) — (29) 40 — Interest expense, net (48) — (1) — (49) (47) 31 106 — 90 Income (loss) before income and mining tax and other items (48) 44 309 — 305 Income and mining tax benefit (expense) 10 (7) (21) — (18) Equity income (loss) of affiliates 330 (20) (7) (310) (7) Net income (loss) from continuing operations 292 17 281 (310) 280 Net income (loss) from discontinued operations — — 18 — 18 Net income (loss) 292 17 299 (310) 298 Net loss (income) attributable to noncontrolling interests: — — (6) — (6) Net income (loss) attributable to Newmont stockholders $ 292 $ 17 $ 293 $ (310) $ 292 Comprehensive income (loss) $ 299 $ 17 $ 299 $ (310) $ 305 Comprehensive loss (income) attributable to noncontrolling interests — — (6) — (6) Comprehensive income (loss) attributable to Newmont stockholders $ 299 $ 17 $ 293 $ (310) $ 299 (1) Excludes Depreciation and amortization and Reclamation and remediation. Three Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 517 $ 1,358 $ — $ 1,875 Costs and expenses: Costs applicable to sales (1) — 280 719 — 999 Depreciation and amortization 1 82 227 — 310 Reclamation and remediation — 4 39 — 43 Exploration — 13 38 — 51 Advanced projects, research and development — 2 30 — 32 General and administrative — 18 40 — 58 Other expense, net — 2 12 — 14 1 401 1,105 — 1,507 Other income (expense): Other income, net 23 3 5 — 31 Interest income - intercompany 23 24 15 (62) — Interest expense - intercompany (14) (4) (44) 62 — Interest expense, net (59) (1) (4) — (64) (27) 22 (28) — (33) Income (loss) before income and mining tax and other items (28) 138 225 — 335 Income and mining tax benefit (expense) 9 (22) (153) — (166) Equity income (loss) of affiliates 194 (150) (11) (36) (3) Net income (loss) from continuing operations 175 (34) 61 (36) 166 Net income (loss) from discontinued operations — — (15) — (15) Net income (loss) 175 (34) 46 (36) 151 Net loss (income) attributable to noncontrolling interests — — 24 — 24 Net income (loss) attributable to Newmont stockholders 175 (34) 70 (36) 175 Comprehensive income (loss) 179 (29) 41 (36) 155 Comprehensive loss (income) attributable to noncontrolling interests — — 24 — 24 Comprehensive income (loss) attributable to Newmont stockholders $ 179 $ (29) $ 65 $ (36) $ 179 (1) Excludes Depreciation and amortization and Reclamation and remediation. Six Months Ended June 30, 2018 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 931 $ 2,548 $ — $ 3,479 Costs and expenses: Costs applicable to sales (1) — 605 1,389 — 1,994 Depreciation and amortization 2 162 416 — 580 Reclamation and remediation — 7 58 — 65 Exploration — 26 68 — 94 Advanced projects, research and development — 14 56 — 70 General and administrative — 41 81 — 122 Other expense, net — 2 22 — 24 2 857 2,090 — 2,949 Other income (expense): Other income, net 3 27 130 — 160 Interest income - intercompany 51 22 21 (94) — Interest expense - intercompany (19) — (75) 94 — Interest expense, net (97) (2) (3) — (102) (62) 47 73 — 58 Income (loss) before income and mining tax and other items (64) 121 531 — 588 Income and mining tax benefit (expense) 13 (21) (115) — (123) Equity income (loss) of affiliates 535 (77) (16) (458) (16) Net income (loss) from continuing operations 484 23 400 (458) 449 Net income (loss) from discontinued operations — — 40 — 40 Net income (loss) 484 23 440 (458) 489 Net loss (income) attributable to noncontrolling interests — — (5) — (5) Net income (loss) attributable to Newmont stockholders $ 484 $ 23 $ 435 $ (458) $ 484 Comprehensive income (loss) $ 499 $ 23 $ 440 $ (458) $ 504 Comprehensive loss (income) attributable to noncontrolling interests — — (5) — (5) Comprehensive income (loss) attributable to Newmont stockholders $ 499 $ 23 $ 435 $ (458) $ 499 (1) Excludes Depreciation and amortization and Reclamation and remediation. Six Months Ended June 30, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Statement of Operation Corporation USA Subsidiaries Eliminations Consolidated Sales $ — $ 941 $ 2,624 $ — $ 3,565 Costs and expenses: Costs applicable to sales (1) — 583 1,373 — 1,956 Depreciation and amortization 2 165 443 — 610 Reclamation and remediation — 7 65 — 72 Exploration — 22 65 — 87 Advanced projects, research and development — 3 55 — 58 General and administrative — 35 78 — 113 Other expense, net — 8 23 — 31 2 823 2,102 — 2,927 Other income (expense): Other income, net 26 3 (7) — 22 Interest income - intercompany 47 24 22 (93) — Interest expense - intercompany (22) (4) (67) 93 — Interest expense, net (121) (3) (7) — (131) (70) 20 (59) — (109) Income (loss) before income and mining tax and other items (72) 138 463 — 529 Income and mining tax benefit (expense) 25 (22) (280) — (277) Equity income (loss) of affiliates 269 (234) (13) (27) (5) Net income (loss) from continuing operations 222 (118) 170 (27) 247 Net income (loss) from discontinued operations — — (38) — (38) Net income (loss) 222 (118) 132 (27) 209 Net loss (income) attributable to noncontrolling interests — — 13 — 13 Net income (loss) attributable to Newmont stockholders $ 222 $ (118) $ 145 $ (27) $ 222 Comprehensive income (loss) $ 238 $ (109) $ 123 $ (27) $ 225 Comprehensive loss (income) attributable to noncontrolling interests — — 13 — 13 Comprehensive income (loss) attributable to Newmont stockholders $ 238 $ (109) $ 136 $ (27) $ 238 (1) Excludes Depreciation and amortization and Reclamation and remediation. |
Condensed Consolidating Statement of Cash Flows | Six Months Ended June 30, 2018 (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 $ (63) $ 251 $ 479 $ — $ 667 Net cash provided by (used in) operating activities of discontinued operations — — (5) — (5) Net cash provided by (used in) operating activities (63) 251 474 — 662 Investing activities: Additions to property, plant and mine development — (125) (364) — (489) Acquisitions, net — — (39) — (39) Proceeds from sales of investments — 11 4 — 15 Purchases of investments — — (6) — (6) Other — 2 — — 2 Net cash provided by (used in) investing activities — (112) (405) — (517) Financing activities: Dividends paid to common stockholders (150) — — — (150) Repurchase of common stock (70) — — — (70) Distributions to noncontrolling interests — — (69) — (69) Funding from noncontrolling interests — — 52 — 52 Proceeds from sale of noncontrolling interests — — 48 — 48 Payments for withholding of employee taxes related to stock-based compensation — (39) — — (39) Net intercompany borrowings (repayments) 283 (99) (184) — — Other — (1) (2) — (3) Net cash provided by (used in) financing activities 63 (139) (155) — (231) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (2) — (2) Net change in cash, cash equivalents and restricted cash — — (88) — (88) Cash, cash equivalents and restricted cash at beginning of period — — 3,298 — 3,298 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,210 $ — $ 3,210 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,127 $ — $ 3,127 Restricted cash included in Other current assets — — 1 — 1 Restricted cash included in Other noncurrent assets — — 82 — 82 Total cash, cash equivalents and restricted cash $ — $ — $ 3,210 $ — $ 3,210 Six Months Ended June 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 $ (116) $ 222 $ 796 $ — $ 902 Net cash provided by (used in) operating activities of discontinued operations — — (9) — (9) Net cash provided by (used in) operating activities (116) 222 787 — 893 Investing activities: Additions to property, plant and mine development — (121) (242) — (363) Acquisitions, net — — — — — Proceeds from sales of investments — — 19 — 19 Purchases of investments (109) — (4) — (113) Other — 2 15 — 17 Net cash provided by (used in) investing activities (109) (119) (212) — (440) Financing activities: Dividends paid to common stockholders (54) — — — (54) Repurchase of common stock — — — — — Distributions to noncontrolling interests — — (80) — (80) Funding from noncontrolling interests — — 46 — 46 Proceeds from sale of noncontrolling interests — — — — — Payments for withholding of employee taxes related to stock-based compensation — (13) — — (13) Net intercompany borrowings (repayments) 282 (90) (192) — — Other (3) (1) (2) — (6) Net cash provided by (used in) financing activities 225 (104) (228) — (107) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — 2 — 2 Net change in cash, cash equivalents and restricted cash — (1) 349 — 348 Cash, cash equivalents and restricted cash at beginning of period — 1 2,781 — 2,782 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 3,130 $ — $ 3,130 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ — $ — $ 3,105 $ — $ 3,105 Restricted cash included in Other current assets — — 2 — 2 Restricted cash included in Other noncurrent assets — — 23 — 23 Total cash, cash equivalents and restricted cash $ — $ — $ 3,130 $ — $ 3,130 |
Condensed Consolidating Balance Sheet | At June 30, 2018 (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 $ — $ — $ 3,127 $ — $ 3,127 Trade receivables — 15 118 — 133 Other accounts receivables — — 101 — 101 Intercompany receivable 2,075 4,882 3,692 (10,649) — Investments — — 56 — 56 Inventories — 167 530 — 697 Stockpiles and ore on leach pads — 215 496 — 711 Other current assets — 40 102 — 142 Current assets 2,075 5,319 8,222 (10,649) 4,967 Property, plant and mine development, net 16 3,059 9,303 (27) 12,351 Investments 113 5 235 — 353 Investments in subsidiaries 13,250 (463) 16 (12,803) — Stockpiles and ore on leach pads — 643 1,194 — 1,837 Deferred income tax assets 87 — 450 — 537 Non-current intercompany receivable 738 527 6 (1,271) — Other non-current assets — 244 366 — 610 Total assets $ 16,279 $ 9,334 $ 19,792 $ (24,750) $ 20,655 Liabilities: Lease and other financing obligations $ — $ 1 $ 12 $ — $ 13 Accounts payable — 74 286 — 360 Intercompany payable 1,364 2,529 6,756 (10,649) — Employee-related benefits — 100 140 — 240 Income and mining taxes — 8 63 — 71 Other current liabilities 52 115 229 — 396 Current liabilities 1,416 2,827 7,486 (10,649) 1,080 Debt 4,042 — — — 4,042 Lease and other financing obligations — 3 63 — 66 Reclamation and remediation liabilities — 312 2,057 — 2,369 Deferred income tax liabilities — 125 464 — 589 Employee-related benefits 1 223 168 — 392 Non-current intercompany payable 7 — 1,291 (1,298) — Other non-current liabilities — 13 271 — 284 Total liabilities 5,466 3,503 11,800 (11,947) 8,822 Contingently redeemable noncontrolling interest — — 48 — 48 Equity: Newmont stockholders’ equity 10,813 5,831 6,972 (12,803) 10,813 Noncontrolling interests — — 972 — 972 Total equity 10,813 5,831 7,944 (12,803) 11,785 Total liabilities and equity $ 16,279 $ 9,334 $ 19,792 $ (24,750) $ 20,655 At December 31, 2017 (Issuer) (Guarantor) (Non-Guarantor) Newmont Newmont Mining Mining Newmont Other Corporation Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ — $ — $ 3,259 $ — $ 3,259 Trade receivables — 18 106 — 124 Other accounts receivables — — 113 — 113 Intercompany receivable 2,053 4,601 3,484 (10,138) — Investments — — 62 — 62 Inventories — 181 498 — 679 Stockpiles and ore on leach pads — 196 480 — 676 Other current assets — 38 115 — 153 Current assets 2,053 5,034 8,117 (10,138) 5,066 Property, plant and mine development, net 17 3,082 9,266 (27) 12,338 Investments 106 4 170 — 280 Investments in subsidiaries 12,012 (311) — (11,701) — Stockpiles and ore on leach pads — 648 1,200 — 1,848 Deferred income tax assets 84 5 460 — 549 Non-current intercompany receivable 1,700 401 7 (2,108) — Other non-current assets — 255 310 — 565 Total assets $ 15,972 $ 9,118 $ 19,530 $ (23,974) $ 20,646 Liabilities: Lease and other financing obligations $ — $ 1 $ 3 $ — $ 4 Accounts payable — 83 292 — 375 Intercompany payable 1,338 2,145 6,655 (10,138) — Employee-related benefits — 143 166 — 309 Income and mining taxes — 18 230 — 248 Other current liabilities 52 163 247 — 462 Current liabilities 1,390 2,553 7,593 (10,138) 1,398 Debt 4,040 — — — 4,040 Lease and other financing obligations — 4 17 — 21 Reclamation and remediation liabilities — 309 2,036 — 2,345 Deferred income tax liabilities — 121 474 — 595 Employee-related benefits — 222 164 — 386 Non-current intercompany payable 7 — 2,128 (2,135) — Other non-current liabilities — 18 324 — 342 Total liabilities 5,437 3,227 12,736 (12,273) 9,127 Contingently redeemable noncontrolling interest — — — — — Equity: Newmont stockholders’ equity 10,535 5,891 5,810 (11,701) 10,535 Noncontrolling interests — — 984 — 984 Total equity 10,535 5,891 6,794 (11,701) 11,519 Total liabilities and equity $ 15,972 $ 9,118 $ 19,530 $ (23,974) $ 20,646 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements - Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue recognition | |
Dore' market standard for percentage of gold | 99.95% |
Minimum | |
Revenue recognition | |
Co-product accounting, percent of metal mined as a percent of the life of mine sales value | 10.00% |
Product accounting, percent of metal mined as a percent of the life of mine sales value | 10.00% |
Maximum | |
Revenue recognition | |
Co-product accounting, percent of metal mined as a percent of the life of mine sales value | 20.00% |
Product accounting, percent of metal mined as a percent of the life of mine sales value | 20.00% |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements - Cumulative Effect Revenue Recognition (Details) - ASU No. 2014-09 Revenue Recognition $ in Millions | Jan. 31, 2018USD ($) | Dec. 31, 2017contract |
Revenue Recognition | ||
Number of contracts outstanding | contract | 0 | |
Effect of Change | ||
Revenue Recognition | ||
Cumulative effect adjustment | $ | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements - Investments (Details) - ASU No. 2016-01 - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) | ||
Recently Adopted Accounting Pronouncements | ||
Cumulative effect adjustment | $ 115 | |
Retained Earnings | ||
Recently Adopted Accounting Pronouncements | ||
Cumulative effect adjustment | $ (115) | |
Adjustments | Accumulated Other Comprehensive Income (Loss) | ||
Recently Adopted Accounting Pronouncements | ||
Cumulative effect adjustment | $ 115 | |
Adjustments | Retained Earnings | ||
Recently Adopted Accounting Pronouncements | ||
Cumulative effect adjustment | $ (115) |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements - Cash flow impact (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of cash flows | ||
Net cash provided by (used in) investing activities | $ (517) | $ (440) |
Net cash provided by (used in) operating activities | $ 662 | 893 |
Adjustments | ASU No. 2016-15 Statement of Cash Flows | ||
Statement of cash flows | ||
Net cash provided by (used in) investing activities | 6 | |
Net cash provided by (used in) operating activities | $ (6) |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information Table (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | ||
Segment Information | |||||
Sales (Note 4) | $ 1,662 | $ 1,875 | $ 3,479 | $ 3,565 | |
Costs applicable to sales | [1] | 965 | 999 | 1,994 | 1,956 |
Depreciation and amortization | 279 | 310 | 580 | 610 | |
Advanced Projects, Research and Development, and Exploration | 90 | 83 | 164 | 145 | |
Income (Loss) before Income and Mining Tax and Other Items | 305 | 335 | 588 | 529 | |
Capital Expenditures | 258 | 192 | 487 | 360 | |
Additional disclosures | |||||
Increase (decrease) in accrued capital expenditures | 9 | (2) | (3) | ||
Consolidated capital expenditures on a cash basis | 258 | 183 | $ 489 | 363 | |
Operating Segments | |||||
Segment Information | |||||
Number of operating segments | segment | 4 | ||||
Corporate and other | |||||
Segment Information | |||||
Depreciation and amortization | 2 | 3 | $ 5 | 5 | |
Advanced Projects, Research and Development, and Exploration | 18 | 14 | 31 | 26 | |
Income (Loss) before Income and Mining Tax and Other Items | (18) | (111) | (128) | (246) | |
Capital Expenditures | 2 | 2 | 6 | 4 | |
North America | Operating Segments | |||||
Segment Information | |||||
Sales (Note 4) | 586 | 749 | 1,268 | 1,390 | |
Costs applicable to sales | 362 | 380 | 758 | 787 | |
Depreciation and amortization | 107 | 131 | 227 | 259 | |
Advanced Projects, Research and Development, and Exploration | 28 | 22 | 50 | 40 | |
Income (Loss) before Income and Mining Tax and Other Items | 83 | 205 | 221 | 287 | |
Capital Expenditures | 88 | 69 | 157 | 141 | |
North America | Operating Segments | Carlin | |||||
Segment Information | |||||
Sales (Note 4) | 244 | 279 | 548 | 543 | |
Costs applicable to sales | 178 | 170 | 377 | 378 | |
Depreciation and amortization | 43 | 46 | 95 | 99 | |
Advanced Projects, Research and Development, and Exploration | 8 | 5 | 15 | 8 | |
Income (Loss) before Income and Mining Tax and Other Items | 13 | 55 | 55 | 54 | |
Capital Expenditures | 42 | 48 | 72 | 96 | |
North America | Operating Segments | Phoenix | |||||
Segment Information | |||||
Sales (Note 4) | 84 | 91 | 210 | 171 | |
Costs applicable to sales | 58 | 62 | 136 | 124 | |
Depreciation and amortization | 14 | 16 | 33 | 32 | |
Advanced Projects, Research and Development, and Exploration | 1 | 3 | 2 | 4 | |
Income (Loss) before Income and Mining Tax and Other Items | 10 | 9 | 36 | 7 | |
Capital Expenditures | 11 | 4 | 18 | 10 | |
North America | Operating Segments | Phoenix | Gold | |||||
Segment Information | |||||
Sales (Note 4) | 63 | 67 | 163 | 121 | |
Costs applicable to sales | 44 | 46 | 106 | 90 | |
Depreciation and amortization | 10 | 12 | 25 | 23 | |
North America | Operating Segments | Phoenix | Copper | |||||
Segment Information | |||||
Sales (Note 4) | 21 | 24 | 47 | 50 | |
Costs applicable to sales | 14 | 16 | 30 | 34 | |
Depreciation and amortization | 4 | 4 | 8 | 9 | |
North America | Operating Segments | Twin Creeks | |||||
Segment Information | |||||
Sales (Note 4) | 114 | 156 | 224 | 258 | |
Costs applicable to sales | 66 | 61 | 130 | 111 | |
Depreciation and amortization | 16 | 17 | 31 | 31 | |
Advanced Projects, Research and Development, and Exploration | 3 | 2 | 5 | 4 | |
Income (Loss) before Income and Mining Tax and Other Items | 33 | 72 | 64 | 107 | |
Capital Expenditures | 22 | 9 | 40 | 17 | |
North America | Operating Segments | Long Canyon | |||||
Segment Information | |||||
Sales (Note 4) | 56 | 57 | 115 | 96 | |
Costs applicable to sales | 18 | 13 | 34 | 25 | |
Depreciation and amortization | 19 | 18 | 38 | 31 | |
Advanced Projects, Research and Development, and Exploration | 6 | 5 | 12 | 10 | |
Income (Loss) before Income and Mining Tax and Other Items | 11 | 21 | 30 | 30 | |
Capital Expenditures | 2 | 3 | 5 | 7 | |
North America | Operating Segments | Cripple Creek and Victor mine | |||||
Segment Information | |||||
Sales (Note 4) | 88 | 166 | 171 | 322 | |
Costs applicable to sales | 42 | 74 | 81 | 149 | |
Depreciation and amortization | 14 | 33 | 29 | 65 | |
Advanced Projects, Research and Development, and Exploration | 1 | 3 | 3 | 7 | |
Income (Loss) before Income and Mining Tax and Other Items | 25 | 53 | 51 | 99 | |
Capital Expenditures | 9 | 4 | 18 | 8 | |
North America | Operating Segments | Other North America | |||||
Segment Information | |||||
Depreciation and amortization | 1 | 1 | 1 | 1 | |
Advanced Projects, Research and Development, and Exploration | 9 | 4 | 13 | 7 | |
Income (Loss) before Income and Mining Tax and Other Items | (9) | (5) | (15) | (10) | |
Capital Expenditures | 2 | 1 | 4 | 3 | |
South America | Operating Segments | |||||
Segment Information | |||||
Sales (Note 4) | 279 | 299 | 588 | 611 | |
Costs applicable to sales | 153 | 198 | 334 | 365 | |
Depreciation and amortization | 46 | 63 | 101 | 124 | |
Advanced Projects, Research and Development, and Exploration | 26 | 21 | 46 | 39 | |
Income (Loss) before Income and Mining Tax and Other Items | 30 | (21) | 60 | 29 | |
Capital Expenditures | 52 | 31 | 90 | 58 | |
South America | Operating Segments | Yanacocha | |||||
Segment Information | |||||
Sales (Note 4) | 147 | 149 | 290 | 328 | |
Costs applicable to sales | 92 | 134 | 206 | 253 | |
Depreciation and amortization | 22 | 34 | 52 | 70 | |
Advanced Projects, Research and Development, and Exploration | 12 | 8 | 22 | 12 | |
Income (Loss) before Income and Mining Tax and Other Items | (3) | (59) | (31) | (50) | |
Capital Expenditures | 24 | 9 | 40 | 20 | |
South America | Operating Segments | Merian | |||||
Segment Information | |||||
Sales (Note 4) | 132 | 150 | 298 | 283 | |
Costs applicable to sales | 61 | 64 | 128 | 112 | |
Depreciation and amortization | 20 | 26 | 42 | 47 | |
Advanced Projects, Research and Development, and Exploration | 6 | 4 | 9 | 8 | |
Income (Loss) before Income and Mining Tax and Other Items | 46 | 54 | 120 | 114 | |
Capital Expenditures | 27 | 22 | 49 | 38 | |
South America | Operating Segments | Other South America | |||||
Segment Information | |||||
Depreciation and amortization | 4 | 3 | 7 | 7 | |
Advanced Projects, Research and Development, and Exploration | 8 | 9 | 15 | 19 | |
Income (Loss) before Income and Mining Tax and Other Items | (13) | (16) | (29) | (35) | |
Capital Expenditures | 1 | 1 | |||
Australia | Operating Segments | |||||
Segment Information | |||||
Sales (Note 4) | 536 | 550 | 1,082 | 1,019 | |
Costs applicable to sales | 298 | 288 | 593 | 533 | |
Depreciation and amortization | 54 | 58 | 109 | 110 | |
Advanced Projects, Research and Development, and Exploration | 9 | 10 | 20 | 16 | |
Income (Loss) before Income and Mining Tax and Other Items | 186 | 196 | 373 | 330 | |
Capital Expenditures | 41 | 48 | 87 | 92 | |
Australia | Operating Segments | Boddington | |||||
Segment Information | |||||
Sales (Note 4) | 280 | 314 | 542 | 587 | |
Costs applicable to sales | 162 | 175 | 321 | 318 | |
Depreciation and amortization | 30 | 37 | 59 | 67 | |
Advanced Projects, Research and Development, and Exploration | 1 | 1 | |||
Income (Loss) before Income and Mining Tax and Other Items | 92 | 94 | 166 | 180 | |
Capital Expenditures | 10 | 14 | 26 | 29 | |
Australia | Operating Segments | Boddington | Gold | |||||
Segment Information | |||||
Sales (Note 4) | 220 | 262 | 430 | 490 | |
Costs applicable to sales | 130 | 147 | 258 | 269 | |
Depreciation and amortization | 24 | 31 | 47 | 57 | |
Australia | Operating Segments | Boddington | Copper | |||||
Segment Information | |||||
Sales (Note 4) | 60 | 52 | 112 | 97 | |
Costs applicable to sales | 32 | 28 | 63 | 49 | |
Depreciation and amortization | 6 | 6 | 12 | 10 | |
Australia | Operating Segments | Tanami | |||||
Segment Information | |||||
Sales (Note 4) | 134 | 123 | 301 | 215 | |
Costs applicable to sales | 74 | 58 | 150 | 108 | |
Depreciation and amortization | 16 | 15 | 35 | 31 | |
Advanced Projects, Research and Development, and Exploration | 4 | 6 | 10 | 9 | |
Income (Loss) before Income and Mining Tax and Other Items | 43 | 55 | 110 | 75 | |
Capital Expenditures | 26 | 28 | 47 | 52 | |
Australia | Operating Segments | Kalgoorlie | |||||
Segment Information | |||||
Sales (Note 4) | 122 | 113 | 239 | 217 | |
Costs applicable to sales | 62 | 55 | 122 | 107 | |
Depreciation and amortization | 6 | 5 | 12 | 9 | |
Advanced Projects, Research and Development, and Exploration | 3 | 1 | 6 | 3 | |
Income (Loss) before Income and Mining Tax and Other Items | 53 | 52 | 101 | 95 | |
Capital Expenditures | 5 | 4 | 13 | 8 | |
Australia | Operating Segments | Other Australia | |||||
Segment Information | |||||
Depreciation and amortization | 2 | 1 | 3 | 3 | |
Advanced Projects, Research and Development, and Exploration | 2 | 2 | 4 | 3 | |
Income (Loss) before Income and Mining Tax and Other Items | (2) | (5) | (4) | (20) | |
Capital Expenditures | 2 | 1 | 3 | ||
Africa | Operating Segments | |||||
Segment Information | |||||
Sales (Note 4) | 261 | 277 | 541 | 545 | |
Costs applicable to sales | 152 | 133 | 309 | 271 | |
Depreciation and amortization | 70 | 55 | 138 | 112 | |
Advanced Projects, Research and Development, and Exploration | 9 | 16 | 17 | 24 | |
Income (Loss) before Income and Mining Tax and Other Items | 24 | 66 | 62 | 129 | |
Capital Expenditures | 75 | 42 | 147 | 65 | |
Africa | Operating Segments | Ahafo | |||||
Segment Information | |||||
Sales (Note 4) | 132 | 112 | 270 | 226 | |
Costs applicable to sales | 90 | 60 | 180 | 136 | |
Depreciation and amortization | 29 | 15 | 55 | 38 | |
Advanced Projects, Research and Development, and Exploration | 4 | 10 | 8 | 16 | |
Income (Loss) before Income and Mining Tax and Other Items | 6 | 25 | 22 | 34 | |
Capital Expenditures | 64 | 36 | 126 | 53 | |
Africa | Operating Segments | Akyem | |||||
Segment Information | |||||
Sales (Note 4) | 129 | 165 | 271 | 319 | |
Costs applicable to sales | 62 | 73 | 129 | 135 | |
Depreciation and amortization | 41 | 40 | 83 | 74 | |
Advanced Projects, Research and Development, and Exploration | 4 | 5 | 7 | 6 | |
Income (Loss) before Income and Mining Tax and Other Items | 21 | 45 | 45 | 100 | |
Capital Expenditures | 11 | 6 | 21 | 12 | |
Africa | Operating Segments | Other Africa | |||||
Segment Information | |||||
Advanced Projects, Research and Development, and Exploration | 1 | 1 | 2 | 2 | |
Income (Loss) before Income and Mining Tax and Other Items | $ (3) | $ (4) | $ (5) | $ (5) | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
SALES - Disaggregation of reven
SALES - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
SALES | ||||
Total sales | $ 1,662 | $ 1,875 | $ 3,479 | $ 3,565 |
Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 1,392 | 1,559 | 2,921 | 2,973 |
Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 189 | 240 | 399 | 445 |
Copper Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 69 | 64 | 133 | 124 |
Copper Sales from Cathode Production | ||||
SALES | ||||
Total sales | 12 | 12 | 26 | 23 |
Operating Segments | North America | ||||
SALES | ||||
Total sales | 586 | 749 | 1,268 | 1,390 |
Operating Segments | North America | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 532 | 683 | 1,129 | 1,262 |
Operating Segments | North America | Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 33 | 42 | 92 | 78 |
Operating Segments | North America | Copper Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 9 | 12 | 21 | 27 |
Operating Segments | North America | Copper Sales from Cathode Production | ||||
SALES | ||||
Total sales | 12 | 12 | 26 | 23 |
Operating Segments | North America | Carlin | ||||
SALES | ||||
Total sales | 244 | 279 | 548 | 543 |
Operating Segments | North America | Carlin | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 244 | 279 | 548 | 543 |
Operating Segments | North America | Phoenix | ||||
SALES | ||||
Total sales | 84 | 91 | 210 | 171 |
Operating Segments | North America | Phoenix | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 30 | 30 | 71 | 54 |
Operating Segments | North America | Phoenix | Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 33 | 37 | 92 | 67 |
Operating Segments | North America | Phoenix | Copper Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 9 | 12 | 21 | 27 |
Operating Segments | North America | Phoenix | Copper Sales from Cathode Production | ||||
SALES | ||||
Total sales | 12 | 12 | 26 | 23 |
Operating Segments | North America | Twin Creeks | ||||
SALES | ||||
Total sales | 114 | 156 | 224 | 258 |
Operating Segments | North America | Twin Creeks | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 114 | 156 | 224 | 258 |
Operating Segments | North America | Long Canyon | ||||
SALES | ||||
Total sales | 56 | 57 | 115 | 96 |
Operating Segments | North America | Long Canyon | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 56 | 57 | 115 | 96 |
Operating Segments | North America | Cripple Creek and Victor mine | ||||
SALES | ||||
Total sales | 88 | 166 | 171 | 322 |
Operating Segments | North America | Cripple Creek and Victor mine | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 88 | 161 | 171 | 311 |
Operating Segments | North America | Cripple Creek and Victor mine | Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 5 | 11 | ||
Operating Segments | South America | ||||
SALES | ||||
Total sales | 279 | 299 | 588 | 611 |
Operating Segments | South America | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 279 | 299 | 588 | 611 |
Operating Segments | South America | Yanacocha | ||||
SALES | ||||
Total sales | 147 | 149 | 290 | 328 |
Operating Segments | South America | Yanacocha | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 147 | 149 | 290 | 328 |
Operating Segments | South America | Merian | ||||
SALES | ||||
Total sales | 132 | 150 | 298 | 283 |
Operating Segments | South America | Merian | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 132 | 150 | 298 | 283 |
Operating Segments | Australia | ||||
SALES | ||||
Total sales | 536 | 550 | 1,082 | 1,019 |
Operating Segments | Australia | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 320 | 300 | 663 | 555 |
Operating Segments | Australia | Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 156 | 198 | 307 | 367 |
Operating Segments | Australia | Copper Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 60 | 52 | 112 | 97 |
Operating Segments | Australia | Boddington | ||||
SALES | ||||
Total sales | 280 | 314 | 542 | 587 |
Operating Segments | Australia | Boddington | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 64 | 64 | 123 | 123 |
Operating Segments | Australia | Boddington | Gold Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 156 | 198 | 307 | 367 |
Operating Segments | Australia | Boddington | Copper Sales from Concentrate Production | ||||
SALES | ||||
Total sales | 60 | 52 | 112 | 97 |
Operating Segments | Australia | Tanami | ||||
SALES | ||||
Total sales | 134 | 123 | 301 | 215 |
Operating Segments | Australia | Tanami | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 134 | 123 | 301 | 215 |
Operating Segments | Australia | Kalgoorlie | ||||
SALES | ||||
Total sales | 122 | 113 | 239 | 217 |
Operating Segments | Australia | Kalgoorlie | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 122 | 113 | 239 | 217 |
Operating Segments | Africa | ||||
SALES | ||||
Total sales | 261 | 277 | 541 | 545 |
Operating Segments | Africa | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 261 | 277 | 541 | 545 |
Operating Segments | Africa | Ahafo | ||||
SALES | ||||
Total sales | 132 | 112 | 270 | 226 |
Operating Segments | Africa | Ahafo | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | 132 | 112 | 270 | 226 |
Operating Segments | Africa | Akyem | ||||
SALES | ||||
Total sales | 129 | 165 | 271 | 319 |
Operating Segments | Africa | Akyem | Gold Sales from Dore' Production | ||||
SALES | ||||
Total sales | $ 129 | $ 165 | $ 271 | $ 319 |
SALES - Receivables Balance (De
SALES - Receivables Balance (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables from Sales: | ||
Total receivables from Sales | $ 133 | $ 124 |
Gold Sales from Dore' Production | ||
Receivables from Sales: | ||
Total receivables from Sales | 36 | |
Gold and copper sales from concentrate production | ||
Receivables from Sales: | ||
Total receivables from Sales | 96 | 117 |
Copper Sales from Cathode Production | ||
Receivables from Sales: | ||
Total receivables from Sales | $ 1 | $ 7 |
SALES - Impact of changes (Deta
SALES - Impact of changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
SALES | ||||
Increase in Sales due to changes in final pricing | $ (1) | $ 1 | $ (3) | $ 11 |
Impact to Sales due to changes in quantities resulting from assays | (1) | (6) | 1 | 2 |
Increase (decrease) to Sales from provisional pricing mark-to-market | $ (6) | $ (2) | $ (8) | $ 10 |
SALES - Impact of adoption - St
SALES - Impact of adoption - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Condensed Consolidated Statement of Operations | |||||
Sales | $ 1,662 | $ 1,875 | $ 3,479 | $ 3,565 | |
Costs applicable to sales | [1] | 965 | 999 | 1,994 | 1,956 |
Depreciation and amortization | 279 | 310 | 580 | 610 | |
Income (loss) before income and mining tax and other items | 305 | 335 | 588 | 529 | |
Income and mining tax benefit (expense) | (18) | (166) | (123) | (277) | |
Net income (loss) | 298 | 151 | 489 | 209 | |
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 274 | 190 | 444 | 260 | |
Discontinued operations | 18 | (15) | 40 | (38) | |
Net income (loss) attributable to Newmont stockholders | $ 292 | $ 175 | $ 484 | $ 222 | |
Net income (loss) per common share - Basic: | |||||
Continuing operations (in dollars per share) | $ 0.52 | $ 0.36 | $ 0.84 | $ 0.49 | |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) | |
Net income (loss) per common share, basic (in dollars per share) | 0.55 | 0.33 | 0.91 | 0.42 | |
Net income (loss) per common share - Diluted: | |||||
Continuing operations (in dollars per share) | 0.51 | 0.36 | 0.83 | 0.49 | |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) | |
Net income (loss) per common share, diluted (in dollars per share) | $ 0.54 | $ 0.33 | $ 0.90 | $ 0.42 | |
Effect of Change | ASU No. 2014-09 Revenue Recognition | |||||
Condensed Consolidated Statement of Operations | |||||
Sales | $ 89 | $ (16) | |||
Costs applicable to sales | 54 | (8) | |||
Depreciation and amortization | 12 | (2) | |||
Income (loss) before income and mining tax and other items | 23 | (6) | |||
Income and mining tax benefit (expense) | (6) | 2 | |||
Net income (loss) | 17 | (4) | |||
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 17 | (4) | |||
Net income (loss) attributable to Newmont stockholders | $ 17 | $ (4) | |||
Net income (loss) per common share - Basic: | |||||
Continuing operations (in dollars per share) | $ 0.03 | $ (0.01) | |||
Net income (loss) per common share, basic (in dollars per share) | 0.03 | (0.01) | |||
Net income (loss) per common share - Diluted: | |||||
Continuing operations (in dollars per share) | 0.03 | (0.01) | |||
Net income (loss) per common share, diluted (in dollars per share) | $ 0.03 | $ (0.01) | |||
Balance without Adoption of ASC 606 | |||||
Condensed Consolidated Statement of Operations | |||||
Sales | $ 1,751 | $ 3,463 | |||
Costs applicable to sales | 1,019 | 1,986 | |||
Depreciation and amortization | 291 | 578 | |||
Income (loss) before income and mining tax and other items | 328 | 582 | |||
Income and mining tax benefit (expense) | (24) | (121) | |||
Net income (loss) | 315 | 485 | |||
Net income (loss) attributable to Newmont stockholders: | |||||
Continuing operations | 291 | 440 | |||
Discontinued operations | 18 | 40 | |||
Net income (loss) attributable to Newmont stockholders | $ 309 | $ 480 | |||
Net income (loss) per common share - Basic: | |||||
Continuing operations (in dollars per share) | $ 0.55 | $ 0.83 | |||
Discontinued operations (in dollars per share) | 0.03 | 0.07 | |||
Net income (loss) per common share, basic (in dollars per share) | 0.58 | 0.90 | |||
Net income (loss) per common share - Diluted: | |||||
Continuing operations (in dollars per share) | 0.54 | 0.82 | |||
Discontinued operations (in dollars per share) | 0.03 | 0.07 | |||
Net income (loss) per common share, diluted (in dollars per share) | $ 0.57 | $ 0.89 | |||
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
SALES - Impact of adoption - Ca
SALES - Impact of adoption - Cash flow changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||||
Net income (loss) | $ 298 | $ 151 | $ 489 | $ 209 |
Adjustments: | ||||
Depreciation and amortization | 279 | $ 310 | 580 | 610 |
Net change in operating assets and liabilities (Note 23) | (510) | (268) | ||
Net cash provided by (used in) continuing operating activities | 667 | $ 902 | ||
Effect of Change | ASU No. 2014-09 Revenue Recognition | ||||
Operating activities: | ||||
Net income (loss) | 17 | (4) | ||
Adjustments: | ||||
Depreciation and amortization | 12 | (2) | ||
Net change in operating assets and liabilities (Note 23) | 6 | |||
Balance without Adoption of ASC 606 | ||||
Operating activities: | ||||
Net income (loss) | 315 | 485 | ||
Adjustments: | ||||
Depreciation and amortization | $ 291 | 578 | ||
Net change in operating assets and liabilities (Note 23) | (504) | |||
Net cash provided by (used in) continuing operating activities | $ 667 |
SALES - Impact of adoption - Co
SALES - Impact of adoption - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Condensed Consolidated Balance Sheet | ||
Trade receivables | $ 133 | $ 124 |
Inventories | 697 | 679 |
Total assets | 20,655 | 20,646 |
Income and mining taxes payable | 71 | 248 |
Total liabilities | 8,822 | 9,127 |
Retained earnings | 592 | 410 |
Newmont stockholders' equity | 10,813 | 10,535 |
Total equity | 11,785 | 11,519 |
Total liabilities and equity | 20,655 | $ 20,646 |
Effect of Change | ASU No. 2014-09 Revenue Recognition | ||
Condensed Consolidated Balance Sheet | ||
Trade receivables | (16) | |
Inventories | 10 | |
Total assets | (6) | |
Income and mining taxes payable | (2) | |
Total liabilities | (2) | |
Retained earnings | (4) | |
Newmont stockholders' equity | (4) | |
Total equity | (4) | |
Total liabilities and equity | (6) | |
Balance without Adoption of ASC 606 | ||
Condensed Consolidated Balance Sheet | ||
Trade receivables | 117 | |
Inventories | 707 | |
Total assets | 20,649 | |
Income and mining taxes payable | 69 | |
Total liabilities | 8,820 | |
Retained earnings | 588 | |
Newmont stockholders' equity | 10,809 | |
Total equity | 11,781 | |
Total liabilities and equity | $ 20,649 |
RECLAMATION AND REMEDIATION - E
RECLAMATION AND REMEDIATION - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
RECLAMATION AND REMEDIATION | ||||
Reclamation adjustment | $ 15 | $ 15 | ||
Reclamation accretion | $ 25 | 25 | $ 49 | 48 |
Total reclamation expense | 25 | 40 | 49 | 63 |
Remediation adjustment | 11 | 2 | 14 | 7 |
Remediation accretion | 1 | 1 | 2 | 2 |
Total remediation expense | 12 | 3 | 16 | 9 |
Reclamation and remediation expense | $ 37 | $ 43 | $ 65 | $ 72 |
RECLAMATION AND REMEDIATION - R
RECLAMATION AND REMEDIATION - Reconciliation of Obligation (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Change in reclamation liability | ||||||
Balance at beginning of period | $ 2,144 | $ 1,913 | ||||
Additions, changes in estimates and other | $ 15 | 15 | ||||
Payments, net | (13) | (11) | ||||
Accretion expense | $ 25 | $ 25 | 49 | 48 | ||
Balance at end of period | $ 2,180 | 1,965 | 2,180 | 1,965 | 2,180 | 1,965 |
Change in remediation liability | ||||||
Balance at beginning of period | 304 | 312 | ||||
Additions, changes in estimates and other | 8 | 8 | 2 | |||
Payments, net | (20) | (21) | ||||
Accretion expense | 1 | 1 | 2 | 2 | ||
Balance at end of period | $ 294 | $ 295 | $ 294 | $ 295 | $ 294 | $ 295 |
RECLAMATION AND REMEDIATION - A
RECLAMATION AND REMEDIATION - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Reclamation and remediation | ||||
Asset retirement obligation | $ 2,180 | $ 2,144 | $ 1,965 | $ 1,913 |
Environmental remediation obligations | 294 | 304 | $ 295 | $ 312 |
Other current liabilities | ||||
Reclamation and remediation | ||||
Reclamation obligation, current | 60 | 60 | ||
Remediation obligation, current | 45 | 43 | ||
Other noncurrent assets | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | 34 | 38 | ||
Other noncurrent assets | Marketable equity securities | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | 58 | 64 | ||
Other noncurrent assets | Ahafo and Akyem Mines | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | 25 | 25 | ||
Other noncurrent assets | Con Mine | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | 8 | 6 | ||
Other noncurrent assets | San Jose Reservoir | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | $ 1 | 6 | ||
Other noncurrent assets | Midnite Mine | ||||
Reclamation and remediation | ||||
Asset retirement obligation restricted assets | $ 1 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OTHER EXPENSE, NET | ||||
Restructuring and other | $ 9 | $ 1 | $ 15 | $ 8 |
Impairment of long-lived assets | 3 | |||
Acquisition cost adjustments | 3 | 5 | ||
Other | 4 | 10 | 9 | 15 |
Other expense, net | $ 13 | $ 14 | $ 24 | $ 31 |
OTHER EXPENSE, NET - Other info
OTHER EXPENSE, NET - Other information (Details) | Jun. 30, 2009 |
Boddington | |
Acquisition cost adjustments | |
Boddington final interest acquired | 33.33% |
OTHER INCOME, NET - Summary (De
OTHER INCOME, NET - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OTHER INCOME, NET | ||||
Gain (loss) on asset and investment sales, net | $ 100 | $ 14 | $ 99 | $ 16 |
Interest | 13 | 6 | 24 | 10 |
Foreign currency exchange, net | 14 | (4) | 21 | (21) |
Change in fair value of marketable securities | 5 | 5 | ||
Tanami insurance proceeds | 13 | 13 | ||
Other | 7 | 2 | 11 | 4 |
Other Income, net | $ 139 | $ 31 | $ 160 | $ 22 |
OTHER INCOME, NET - Other infor
OTHER INCOME, NET - Other information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other information | ||||||
Gain (loss) on asset and investment sales, net | $ 100 | $ 14 | $ 99 | $ 16 | ||
Other income, net | ||||||
Other information | ||||||
Gain (loss) on asset and investment sales, net | $ 100 | |||||
Other income, net | Fort a' la Corne | ||||||
Other information | ||||||
Gain (loss) 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciling item, percentage | ||||
U.S. Federal statutory tax rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% |
Percentage depletion (as a percent) | (3.00%) | (13.00%) | (4.00%) | (14.00%) |
Change in valuation allowance on deferred tax assets (as a percent) | (5.00%) | 21.00% | 1.00% | 26.00% |
Mining and other taxes (as a percent) | 3.00% | 5.00% | 5.00% | 7.00% |
Foreign rate differential | 5.00% | 8.00% | ||
Other (as a percent) | 2.00% | (2.00%) | (2.00%) | |
Adjustment to provisional expense related to the Tax Cuts and Job Act (as a percent) | (15.00%) | (8.00%) | ||
Income and mining tax expense (as a percent) | 6.00% | 50.00% | 21.00% | 52.00% |
Reconciling item, amount | ||||
Income (loss) before income and mining tax and other items | $ 305 | $ 335 | $ 588 | $ 529 |
U.S. Federal statutory tax rate | 64 | 117 | 123 | 185 |
Percentage depletion | (8) | (42) | (25) | (74) |
Change in valuation allowance on deferred tax assets | (15) | 72 | 3 | 139 |
Mining and other taxes | 9 | 16 | 30 | 35 |
Foreign rate differential | 15 | 46 | ||
Other | (2) | 3 | (9) | (8) |
Adjustment to provisional expense related to the Tax Cuts and Job Act | (45) | (45) | ||
Income and mining tax expense | (18) | $ (166) | $ (123) | $ (277) |
Maverix [Member] | ||||
Reconciling item, amount | ||||
Change in valuation allowance on deferred tax assets | (15) | |||
Australia | ||||
Reconciling item, amount | ||||
Adjustment to provisional expense related to the Tax Cuts and Job Act | $ (45) |
NET INCOME (LOSS) FROM DISCON75
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations (Note 9) | $ 18 | $ (15) | $ 40 | $ (38) |
Discontinued operations disposed of by sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations (Note 9) | 18 | (15) | 40 | (38) |
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 (Note 9) | 17 | $ (15) | 36 | $ (38) |
Batu Hijau contingent consideration | PTNNT | Discontinued operations disposed of by sale | ||||
Net income (loss) from discontinued operations, net of tax | ||||
Net income (loss) from discontinued operations (Note 9) | $ 1 | $ 4 |
NET INCOME (LOSS) FROM DISCON76
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS - Holt Royalty Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disposal group | |||||
Net income (loss) from discontinued operations (Note 9) | $ 18 | $ (15) | $ 40 | $ (38) | |
Discontinued operations disposed of by sale | |||||
Disposal group | |||||
Net income (loss) from discontinued operations (Note 9) | 18 | (15) | 40 | (38) | |
Holloway Mining Company | Discontinued operations disposed of by sale | Holt Royalty obligation | |||||
Disposal group | |||||
Fair value of royalty obligation | 193 | 193 | $ 243 | ||
Net income (loss) from discontinued operations (Note 9) | 17 | (15) | 36 | (38) | |
Income and mining tax benefit (expense) | $ (5) | $ 8 | (9) | 21 | |
Royalty paid | $ 5 | $ 6 |
NET INCOME (LOSS) ATTRIBUTABL77
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ 6 | $ (24) | $ 5 | $ (13) |
Merian | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | (5) | (37) | (23) | (38) |
Minera Yanacocha | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ 11 | $ 13 | $ 28 | 26 |
Other | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income (loss) attributable to noncontrolling interests | $ (1) |
NET INCOME (LOSS) ATTRIBUTABL78
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Ownership (Details) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Dec. 31, 2017 | Jun. 30, 2018USD ($) | Nov. 30, 2017 | |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Contingently redeemable noncontrolling interest (Note 10) | $ 48 | $ 48 | ||
Minera Yanacocha | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Percentage of total shares repurchased | 5.00% | |||
Percentage of total shares reissued | 5 | |||
Buenaventura | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 43.65% | 45.95% | 43.65% | 43.65% |
Minera Yanacocha | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Ownership/Economic interest in subsidiaries | 51.35% | 54.05% | 51.35% | 51.35% |
Primary Beneficiary | Merian | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Ownership interest held (as a percent) | 75.00% |
NET INCOME (LOSS) ATTRIBUTABL79
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS - Consolidated Assets and Liabilities of VIE (Details) - Primary Beneficiary - Merian - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets and liabilities of VIE | ||
Current assets | $ 183 | $ 133 |
Total assets | 963 | 910 |
Current liabilities | 53 | 50 |
Total liabilities | 72 | 69 |
Cash And Cash Equivalents | ||
Assets and liabilities of VIE | ||
Current assets | 44 | 27 |
Trade Receivables | ||
Assets and liabilities of VIE | ||
Current assets | 23 | |
Inventories | ||
Assets and liabilities of VIE | ||
Current assets | 81 | 79 |
Stockpiles and ore on leach pads | ||
Assets and liabilities of VIE | ||
Current assets | 31 | 21 |
Other current assets | ||
Assets and liabilities of VIE | ||
Current assets | 4 | 6 |
Property Plant And Mine Development | ||
Assets and liabilities of VIE | ||
Non-current assets | 777 | 769 |
Other noncurrent assets | ||
Assets and liabilities of VIE | ||
Non-current assets | 3 | 8 |
Accounts Payable [Member] | ||
Assets and liabilities of VIE | ||
Current liabilities | 27 | 22 |
Other current liabilities | ||
Assets and liabilities of VIE | ||
Current liabilities | 26 | 28 |
Reclamation and remediation liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | 18 | 18 |
Other non-current liabilities | ||
Assets and liabilities of VIE | ||
Non-current liabilities | $ 1 | $ 1 |
NET INCOME (LOSS) PER COMMON 80
NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) attributable to Newmont stockholders: | ||||
Continuing operations | $ 274 | $ 190 | $ 444 | $ 260 |
Discontinued operations | 18 | (15) | 40 | (38) |
Net income (loss) attributable to Newmont stockholders | $ 292 | $ 175 | $ 484 | $ 222 |
Weighted average common shares (millions): | ||||
Basic | 533 | 533 | 534 | 533 |
Effect of employee stock-based awards | 2 | 2 | 1 | 1 |
Diluted | 535 | 535 | 535 | 534 |
Net income (loss) per common share - Basic: | ||||
Continuing operations (in dollars per share) | $ 0.52 | $ 0.36 | $ 0.84 | $ 0.49 |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) |
Net income (loss) per common share, basic | 0.55 | 0.33 | 0.91 | 0.42 |
Net income (loss) per common share - Diluted: | ||||
Continuing operations (in dollars per share) | 0.51 | 0.36 | 0.83 | 0.49 |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0.07 | (0.07) |
Net income (loss) per common share, diluted | $ 0.54 | $ 0.33 | $ 0.90 | $ 0.42 |
NET INCOME (LOSS) PER COMMON 81
NET INCOME (LOSS) PER COMMON SHARE - Shares Repurchased and Retired (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
NET INCOME (LOSS) PER COMMON SHARE | ||
Repurchase and retirement of common stock (in shares) | 0.2 | 1.9 |
Repurchase and retirement of common stock | $ 6 | $ 70 |
Withholding of employee taxes related to stock-based compensation (in shares) | 1 |
EMPLOYEE PENSION AND OTHER BE82
EMPLOYEE PENSION AND OTHER BENEFIT PLANS - Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | ||||
Net periodic pension and other benefits costs | ||||
Service cost | $ 8 | $ 8 | $ 16 | $ 15 |
Interest cost | 11 | 11 | 21 | 22 |
Expected return on plan assets | (17) | (16) | (34) | (31) |
Amortization, net | 8 | 7 | 16 | 14 |
Settlements | 4 | |||
Total benefit cost | 10 | 10 | 19 | 24 |
Other Benefits | ||||
Net periodic pension and other benefits costs | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 1 | 1 | 2 | 2 |
Amortization, net | $ (2) | (3) | (4) | (4) |
Total benefit cost | $ (1) | $ (1) | $ (1) |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-based compensation: | ||||
Stock-based compensation | $ 19 | $ 19 | $ 38 | $ 35 |
PSU | ||||
Stock-based compensation: | ||||
Stock-based compensation | 7 | 9 | 16 | 17 |
RSU | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 12 | $ 10 | $ 22 | 17 |
SSU | ||||
Stock-based compensation: | ||||
Stock-based compensation | $ 1 |
FAIR VALUE ACCOUNTING - Recurri
FAIR VALUE ACCOUNTING - Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | $ 3,127 | $ 3,259 |
Restricted cash | 83 | 39 |
Total assets | 3,566 | 3,667 |
Liabilities: | ||
Debt (1) | 4,391 | 4,671 |
Total liabilities | 4,584 | 4,915 |
Recurring | Holt Royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 193 | 243 |
Recurring | Other Assets | ||
Assets: | ||
Restricted assets | 7 | 9 |
Recurring | Batu Hijau contingent consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 27 | 23 |
Recurring | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 86 | 111 |
Recurring | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 1 | |
Recurring | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 7 | 6 |
Recurring | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 3,127 | 3,259 |
Restricted cash | 83 | 39 |
Total assets | 3,405 | 3,489 |
Recurring | Level 1 | Other Assets | ||
Assets: | ||
Restricted assets | 7 | 9 |
Recurring | Level 2 | ||
Assets: | ||
Total assets | 134 | 155 |
Liabilities: | ||
Debt (1) | 4,391 | 4,671 |
Total liabilities | 4,391 | 4,672 |
Recurring | Level 2 | Provisional copper and gold concentrate receivables | ||
Assets: | ||
Trade receivable, net | 86 | 111 |
Recurring | Level 2 | Foreign exchange forward contracts | ||
Liabilities: | ||
Derivative instruments, net | 1 | |
Recurring | Level 2 | Diesel forward contracts | ||
Assets: | ||
Derivative assets | 7 | 6 |
Recurring | Level 3 | ||
Assets: | ||
Total assets | 27 | 23 |
Liabilities: | ||
Total liabilities | 193 | 243 |
Recurring | Level 3 | Holt Royalty obligation | ||
Liabilities: | ||
Holt royalty obligation | 193 | 243 |
Recurring | Level 3 | Batu Hijau contingent consideration | ||
Assets: | ||
Batu Hijau contingent consideration | 27 | 23 |
Recurring | Marketable equity securities | ||
Assets: | ||
Marketable securities | 178 | 165 |
Recurring | Marketable equity securities | Level 1 | ||
Assets: | ||
Marketable securities | 166 | 165 |
Recurring | Marketable equity securities | Level 2 | ||
Assets: | ||
Marketable securities | 12 | |
Recurring | Marketable debt securities | ||
Assets: | ||
Restricted assets | 51 | 55 |
Recurring | Marketable debt securities | Level 1 | ||
Assets: | ||
Restricted assets | 22 | 17 |
Recurring | Marketable debt securities | Level 2 | ||
Assets: | ||
Restricted assets | 29 | 38 |
Carrying value | ||
Liabilities: | ||
Debt (1) | $ 4,042 | $ 4,040 |
FAIR VALUE ACCOUNTING - Quantit
FAIR VALUE ACCOUNTING - Quantitative Information (Details) oz in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)oz$ / oz$ / lb | Dec. 31, 2017USD ($)oz$ / oz$ / lb | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 27 | $ 23 | $ 13 | $ 31 |
Financial liabilities, fair value | 193 | 243 | 240 | 187 |
Holt Royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | 193 | 243 | 240 | 187 |
Asset-backed commercial paper | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 18 | |||
Batu Hijau contingent consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | 27 | 23 | $ 13 | $ 13 |
Level 3 | Monte Carlo | Holt Royalty obligation | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial liabilities, fair value | $ 193 | $ 243 | ||
Discount Rate (as a percent) | 3.99% | 3.32% | ||
Short-term gold price (in dollars per ounce) | $ / oz | 1,306 | 1,275 | ||
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 | 334 | 402 | ||
Level 3 | Monte Carlo | Holt Royalty obligation | Maximum | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Gold production scenarios (in 000's of ounces) | oz | 1,576 | 1,779 | ||
Level 3 | Monte Carlo | Batu Hijau contingent consideration | ||||
Quantitative and Qualitative Information - Unobservable Inputs | ||||
Financial assets, fair value | $ 27 | $ 23 | ||
Discount Rate (as a percent) | 17.50% | 17.50% | ||
Short-term copper price (in dollars per pound) | $ / lb | 3.12 | 3.09 | ||
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 | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | $ 23 | $ 31 |
Settlements | (18) | |
Revaluation | 4 | |
Balance at end of period, assets | 27 | 13 |
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 243 | 187 |
Settlements | (5) | (6) |
Revaluation | (45) | 59 |
Balance at end of period, liabilities | 193 | 240 |
Holt Royalty obligation | ||
Summary of changes in Level 3 financial liabilities | ||
Balance at beginning of period, liabilities | 243 | 187 |
Settlements | (5) | (6) |
Revaluation | (45) | 59 |
Balance at end of period, liabilities | 193 | 240 |
Asset-backed commercial paper | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 18 | |
Settlements | (18) | |
Batu Hijau contingent consideration | ||
Summary of changes in Level 3 financial assets | ||
Balance at beginning of period, assets | 23 | 13 |
Revaluation | 4 | |
Balance at end of period, assets | $ 27 | $ 13 |
DERIVATIVE INSTRUMENTS - Diesel
DERIVATIVE INSTRUMENTS - Diesel Derivative Contracts Outstanding (Details) - Cash Flow Hedges gal in Thousands | 6 Months Ended |
Jun. 30, 2018$ / gal$ / bblgal | |
North America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 14,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.79 |
South America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 2,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.89 |
Australia | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 102 |
Average rate ($/gallon or $/barrel) | $ / bbl | 78.54 |
Diesel forward contracts maturing in 2018 | North America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 7,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.68 |
Diesel forward contracts maturing in 2019 | North America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 3,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.78 |
Diesel forward contracts maturing in 2019 | Australia | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 12 |
Average rate ($/gallon or $/barrel) | $ / bbl | 85.93 |
Diesel forward contracts maturing in 2020 | North America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 3,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.97 |
Diesel forward contracts maturing in 2020 | South America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 2,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 1.88 |
Diesel forward contracts maturing in 2020 | Australia | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 73 |
Average rate ($/gallon or $/barrel) | $ / bbl | 77.06 |
Diesel forward contracts maturing in 2021 | North America | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 1,000 |
Average rate ($/gallon or $/barrel) | $ / gal | 2.04 |
Diesel forward contracts maturing in 2021 | South America | |
Derivative contracts | |
Average rate ($/gallon or $/barrel) | $ / gal | 1.99 |
Diesel forward contracts maturing in 2021 | Australia | |
Derivative contracts | |
Diesel gallons (millions) or barrels (thousands) | 17 |
Average rate ($/gallon or $/barrel) | $ / bbl | 79.69 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Instruments Designated as Hedges (Details) - Cash Flow Hedges - Designated Hedge - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other current assets | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 6 | |
Other current assets | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 5 | 6 |
Other noncurrent assets | Diesel forward contracts | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Assets | $ 2 | |
Other current liabilities | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | 1 | |
Other current liabilities | Foreign exchange forward contracts | AUD | ||
Derivative contracts | ||
Fair Value of Derivative Instruments, Liabilities | $ 1 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | [1] | $ 965 | $ 999 | $ 1,994 | $ 1,956 |
Interest expense, net | 49 | 64 | 102 | 131 | |
Operating cash flow hedges | Unrealized Gain (Loss) on Cash flow Hedge Instruments | Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | 8 | 1 | 18 | ||
Diesel forward contracts | Unrealized Gain (Loss) on Cash flow Hedge Instruments | Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | (2) | 1 | (4) | 3 | |
Foreign currency hedging instruments | Unrealized Gain (Loss) on Cash flow Hedge Instruments | Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Costs applicable to sales | 2 | 7 | 5 | 15 | |
Interest rate contracts | Unrealized Gain (Loss) on Cash flow Hedge Instruments | Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Interest expense, net | $ 3 | $ 3 | $ 6 | $ 5 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
DERIVATIVE INSTRUMENTS - Locati
DERIVATIVE INSTRUMENTS - Location and Amount of Gains (Losses) Reported in Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative contracts | ||||
Approximate loss amount to be reclassified from accumulated other comprehensive income (loss), net of tax to income | $ 5 | |||
Cash Flow Hedges | Foreign exchange forward contracts | ||||
Derivative contracts | ||||
(Gain) loss recognized in Other comprehensive income (loss) | $ (4) | |||
(Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) | $ 2 | $ 7 | 5 | 15 |
Cash Flow Hedges | Diesel forward contracts | ||||
Derivative contracts | ||||
(Gain) loss recognized in Other comprehensive income (loss) | (4) | 3 | (5) | 6 |
(Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) | (2) | 1 | (4) | 3 |
Cash Flow Hedges | Interest rate contracts | ||||
Derivative contracts | ||||
(Gain) loss reclassified from Accumulated other comprehensive income (loss) into income (loss) | $ 3 | $ 3 | $ 6 | $ 5 |
DERIVATIVE INSTRUMENTS - Batu H
DERIVATIVE INSTRUMENTS - Batu Hijau Contingent Consideration (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Contingent Payment | Other noncurrent assets | ||
Batu Hijau Contingent Consideration | ||
Batu Hijau contingent consideration | $ 27 | $ 23 |
DERIVATIVE INSTRUMENTS - Embedd
DERIVATIVE INSTRUMENTS - Embedded Derivatives (Details) oz in Thousands, lb in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)$ / oz$ / lb | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)lboz$ / oz$ / lb | Jun. 30, 2017USD ($) | |
Provisional Gold and Copper Sales - Embedded derivatives | ||||
Increase (decrease) to Sales from provisional pricing mark-to-market | $ | $ (6) | $ (2) | $ (8) | $ 10 |
Gold Contracts - Embedded Derivative | ||||
Provisional Gold and Copper Sales - Embedded derivatives | ||||
Provisional pricing quantity sales (in ounces or pounds) | oz | 78 | |||
Average price, subject to final pricing (in USD per ounce or pound) | $ / oz | 1,251 | 1,251 | ||
Copper Contracts - Embedded Derivative | ||||
Provisional Gold and Copper Sales - Embedded derivatives | ||||
Provisional pricing quantity sales (in ounces or pounds) | lb | 13 | |||
Average price, subject to final pricing (in USD per ounce or pound) | $ / lb | 3.01 | 3.01 |
INVESTMENTS - Marketable Securi
INVESTMENTS - Marketable Securities - ASU 2016-01 Amortized Cost and Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair/Equity Basis (1) | ||
Equity method investments | $ 165 | |
Total unrestricted investments | $ 353 | 280 |
TMAC | ||
Fair/Equity Basis (1) | ||
Equity method investments | $ 115 | |
Investments | ||
Ownership interest (as a percent) | 28.71% | 28.79% |
Minera La Zanja S.R.L. | ||
Fair/Equity Basis (1) | ||
Equity method investments | $ 50 | |
Investments | ||
Ownership interest (as a percent) | 46.94% | 46.94% |
Maverix [Member] | ||
Investments | ||
Ownership interest (as a percent) | 27.98% | |
Investments - current | Marketable equity securities | ||
Fair/Equity Basis (1) | ||
Marketable equity securities | $ 56 | |
Investments - noncurrent | ||
Fair/Equity Basis (1) | ||
Marketable equity securities | 122 | |
Other investments | 5 | |
Equity method investments | 226 | |
Total unrestricted investments | 353 | |
Non-current restricted investments: (2) | ||
Marketable debt securities | 51 | |
Other assets | 7 | |
Non-current restricted investments | 58 | |
Investments - noncurrent | TMAC | ||
Fair/Equity Basis (1) | ||
Equity method investments | 102 | |
Investments - noncurrent | Minera La Zanja S.R.L. | ||
Fair/Equity Basis (1) | ||
Equity method investments | 46 | |
Investments - noncurrent | Maverix [Member] | ||
Fair/Equity Basis (1) | ||
Equity method investments | 78 | |
Investments - noncurrent | Marketable equity securities | Continental | ||
Fair/Equity Basis (1) | ||
Marketable equity securities | 108 | |
Investments - noncurrent | Marketable equity securities | Warrant [Member] | ||
Fair/Equity Basis (1) | ||
Marketable equity securities | 12 | |
Investments - noncurrent | Marketable equity securities | Other marketable equity securities | ||
Fair/Equity Basis (1) | ||
Marketable equity securities | $ 2 |
INVESTMENTS - Marketable Secu94
INVESTMENTS - Marketable Securities - Amortized Cost/Fair Value (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments | ||
Investments, Cost/Equity Basis | $ 290 | |
Unrealized Loss | (10) | |
Investments, Fair/Equity Basis | $ 353 | 280 |
Equity method investments | 165 | |
TMAC | ||
Investments | ||
Equity method investments | $ 115 | |
Ownership interest (as a percent) | 28.71% | 28.79% |
Minera La Zanja S.R.L. | ||
Investments | ||
Equity method investments | $ 50 | |
Ownership interest (as a percent) | 46.94% | 46.94% |
Maverix [Member] | ||
Investments | ||
Ownership interest (as a percent) | 27.98% | |
Marketable debt securities | ||
Investments | ||
Sale of restricted marketable debt securities | $ 11 | |
Investments - current | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | $ 38 | |
Unrealized Gain | 32 | |
Unrealized Loss | (8) | |
Fair/Equity Basis - Current Marketable Equity Securities | 62 | |
Investments - noncurrent | ||
Investments | ||
Other investments, at cost | 5 | |
Investments, Fair/Equity Basis | 353 | |
Equity method investments | 226 | |
Investments - noncurrent | TMAC | ||
Investments | ||
Equity method investments | 102 | |
Investments - noncurrent | Minera La Zanja S.R.L. | ||
Investments | ||
Equity method investments | 46 | |
Investments - noncurrent | Maverix [Member] | ||
Investments | ||
Equity method investments | $ 78 | |
Investments - noncurrent | Continental | ||
Investments | ||
Cost/Equity Basis | 109 | |
Unrealized Loss | (8) | |
Fair/Equity Basis - Long-Term Marketable Securities | 101 | |
Investments - noncurrent | Warrant [Member] | ||
Investments | ||
Cost/Equity Basis | 7 | |
Fair/Equity Basis - Long-Term Marketable Securities | 7 | |
Investments - noncurrent | Marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 120 | |
Unrealized Loss | (10) | |
Fair/Equity Basis - Long-Term Marketable Securities | 110 | |
Investments - noncurrent | Other marketable equity securities | ||
Investments | ||
Cost/Equity Basis | 4 | |
Unrealized Loss | (2) | |
Fair/Equity Basis - Long-Term Marketable Securities | 2 | |
Other noncurrent assets | ||
Investments | ||
Non-current restricted investments, Cost/Equity Basis | 66 | |
Unrealized Gain | 1 | |
Unrealized Loss | (3) | |
Non-current restricted investments, Fair/Equity Basis | 64 | |
Other noncurrent assets | Marketable debt securities | ||
Investments | ||
Non-current restricted investments, Cost/Equity Basis | 58 | |
Unrealized Loss | (3) | |
Non-current restricted investments, Fair/Equity Basis | 55 | |
Other noncurrent assets | Other assets | ||
Investments | ||
Non-current restricted investments, Cost/Equity Basis | 8 | |
Unrealized Gain | 1 | |
Non-current restricted investments, Fair/Equity Basis | $ 9 |
INVESTMENTS - Equity Method (De
INVESTMENTS - Equity Method (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | |
Jul. 31, 2018 | Jun. 30, 2018 | |
Schedule of Investments [Line Items] | ||
Cash consideration | $ 17 | |
Maverix [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership interest held after sale (as a percent) | 27.98% | |
Maverix [Member] | Common Stock | ||
Schedule of Investments [Line Items] | ||
Shares issued in subsidiary sale of stock | 60 | |
Fair value upon closing of shares issued | $ 78 | |
Maverix [Member] | Warrant [Member] | ||
Schedule of Investments [Line Items] | ||
Shares issued in subsidiary sale of stock | 10 | |
Fair value upon closing of shares issued | $ 5 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, net | ||
Materials and supplies | $ 436 | $ 416 |
In-process | 135 | 131 |
Concentrate and copper cathode | 91 | 83 |
Precious metals | 35 | 49 |
Total inventories | $ 697 | $ 679 |
STOCKPILES AND ORE ON LEACH P97
STOCKPILES AND ORE ON LEACH PADS - By location (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | $ 711 | $ 676 |
Long-term stockpiles and ore on leach pads | 1,837 | 1,848 |
Stockpiles and ore on leach pads | 2,548 | 2,524 |
Stockpiles | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 351 | 330 |
Long-term stockpiles and ore on leach pads | 1,454 | 1,502 |
Ore on Leach Pads | ||
Stockpiles And Ore On Leach Pads | ||
Current stockpiles and ore on leach pads | 360 | 346 |
Long-term stockpiles and ore on leach pads | 383 | 346 |
Operating Segments | Carlin | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 469 | 441 |
Operating Segments | Phoenix | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 68 | 68 |
Operating Segments | Twin Creeks | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 329 | 340 |
Operating Segments | Long Canyon | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 45 | 34 |
Operating Segments | Cripple Creek and Victor mine | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 333 | 314 |
Operating Segments | Yanacocha | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 263 | 270 |
Operating Segments | Merian | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 31 | 25 |
Operating Segments | Boddington | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 445 | 431 |
Operating Segments | Tanami | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 1 | 4 |
Operating Segments | Kalgoorlie | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 126 | 125 |
Operating Segments | Ahafo | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | 386 | 409 |
Operating Segments | Akyem | ||
Stockpiles And Ore On Leach Pads | ||
Stockpiles and ore on leach pads | $ 52 | $ 63 |
STOCKPILES AND ORE ON LEACH P98
STOCKPILES AND ORE ON LEACH PADS - Write-downs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Write-downs | ||||
Inventory write-downs | $ 158 | $ 92 | ||
Stockpiles and ore on leach pads | Carlin | ||||
Write-downs | ||||
Inventory write-downs | $ 31 | $ 11 | 57 | 34 |
Stockpiles and ore on leach pads | Twin Creeks | ||||
Write-downs | ||||
Inventory write-downs | 17 | 13 | 33 | 16 |
Stockpiles and ore on leach pads | Yanacocha | ||||
Write-downs | ||||
Inventory write-downs | 2 | 32 | 26 | 41 |
Stockpiles and ore on leach pads | Ahafo | ||||
Write-downs | ||||
Inventory write-downs | 26 | 46 | 18 | |
Stockpiles and ore on leach pads | Akyem | ||||
Write-downs | ||||
Inventory write-downs | 25 | 8 | 47 | 8 |
Stockpiles and ore on leach pads | Costs applicable to sales | ||||
Write-downs | ||||
Inventory write-downs | 73 | 46 | 152 | 86 |
Stockpiles and ore on leach pads | Depreciation and amortization | ||||
Write-downs | ||||
Inventory write-downs | $ 28 | $ 18 | $ 57 | $ 31 |
DEBT - Maturities (Details)
DEBT - Maturities (Details) $ in Millions | Jun. 30, 2018USD ($) |
Scheduled minimum debt repayments | |
Remainder of 2018 | $ 0 |
2,019 | 626 |
2,020 | 0 |
2,021 | 0 |
2,022 | 992 |
Debt repayments, thereafter | $ 2,474 |
LEASE AND OTHER FINANCING OB100
LEASE AND OTHER FINANCING OBLIGATIONS (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)facility | Dec. 31, 2017USD ($) | |
Scheduled minimum capital lease repayments | ||
Remainder of 2018 | $ 2 | |
2,019 | 3 | |
2,020 | 1 | |
2,021 | 1 | |
2,022 | 1 | |
Capital lease repayments, thereafter | 1 | |
Other information | ||
Financing obligation, current | $ 13 | $ 4 |
Tanami Power project | ||
Other information | ||
Number of on-site power stations | facility | 2 | |
Financing obligation | $ 71 | $ 14 |
Financing obligation, current | $ 10 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other current liabilities: | ||
Accrued operating costs | $ 109 | $ 124 |
Reclamation and remediation liabilities | 105 | 103 |
Accrued capital expenditures | 69 | 77 |
Accrued interest | 52 | 52 |
Royalties | 37 | 63 |
Holt royalty obligation | 14 | 15 |
Taxes other than income and mining | 5 | 7 |
Derivative instruments | 1 | |
Other | 5 | 20 |
Other current liabilities, total | 396 | 462 |
Other long-term liabilities: | ||
Holt property royalty | 179 | 228 |
Income and mining taxes | 43 | 47 |
Power supply agreements | 30 | 32 |
Social development obligations | 21 | 22 |
Other | 11 | 13 |
Other long-term liabilities, total | $ 284 | $ 342 |
RECLASSIFICATIONS OUT OF ACC102
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | $ 11,519 | ||||
Other comprehensive income (loss) | $ 7 | $ 4 | 15 | $ 16 | |
Balance at end of period | 11,785 | 11,785 | |||
Unrealized gain (loss) on marketable securities, net | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | (116) | ||||
Change in other comprehensive income (loss) before reclassifications | 1 | ||||
Other comprehensive income (loss) | 1 | ||||
Foreign Currency Translation Adjustments | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | 130 | ||||
Change in other comprehensive income (loss) before reclassifications | (4) | ||||
Other comprehensive income (loss) | (4) | ||||
Balance at end of period | 126 | 126 | |||
Pension and other post-retirement benefit adjustments | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | (208) | ||||
Reclassifications from accumulated other comprehensive income (loss) | 9 | ||||
Other comprehensive income (loss) | 9 | ||||
Balance at end of period | (199) | (199) | |||
Unrealized Gain (Loss) on Cash flow Hedge Instruments | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | (98) | ||||
Change in other comprehensive income (loss) before reclassifications | 4 | ||||
Reclassifications from accumulated other comprehensive income (loss) | 5 | ||||
Other comprehensive income (loss) | 9 | ||||
Balance at end of period | (89) | (89) | |||
Accumulated Other Comprehensive Income (Loss) | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Balance at beginning of period | (292) | ||||
Change in other comprehensive income (loss) before reclassifications | 1 | ||||
Reclassifications from accumulated other comprehensive income (loss) | 14 | ||||
Other comprehensive income (loss) | 15 | ||||
Balance at end of period | $ (162) | $ (162) | |||
ASU No. 2016-01 | Unrealized gain (loss) on marketable securities, net | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Cumulative-effect adjustment of adopting ASU No. 2016-01 | $ 115 | ||||
ASU No. 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Cumulative-effect adjustment of adopting ASU No. 2016-01 | $ 115 |
RECLASSIFICATIONS OUT OF ACC103
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | $ (139) | $ (31) | $ (160) | $ (22) | |
Costs applicable to sales | [1] | 965 | 999 | 1,994 | 1,956 |
Interest expense, net | 49 | 64 | 102 | 131 | |
Total before tax | (305) | (335) | (588) | (529) | |
Tax | 18 | 166 | 123 | 277 | |
Net of tax | (298) | (151) | (489) | (209) | |
Pension and other post-retirement benefit adjustments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Total before tax | 6 | 4 | 12 | 14 | |
Tax | (2) | (1) | (3) | (5) | |
Net of tax | 4 | 3 | 9 | 9 | |
Reclassifications from accumulated other comprehensive income (loss) | 9 | ||||
Accumulated defined benefit pension plans adjustment, amortization | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | 6 | 4 | 12 | 10 | |
Accumulated defined benefit pension plans adjustment, settlements | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Other income, net | 4 | ||||
Unrealized Gain (Loss) on Cash flow Hedge Instruments | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Reclassifications from accumulated other comprehensive income (loss) | 5 | ||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Reclassifications from accumulated other comprehensive income (loss) | 6 | 10 | 14 | 24 | |
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 | 3 | 11 | 7 | 23 | |
Tax | (1) | (4) | (2) | (8) | |
Net of tax | 2 | 7 | 5 | 15 | |
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 | 8 | 1 | 18 | ||
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 | $ 3 | $ 3 | $ 6 | $ 5 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
NET CHANGE IN OPERATING ASSE104
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Decrease (increase) in operating assets: | ||
Trade and other accounts receivables | $ 37 | $ (22) |
Inventories, stockpiles and ore on leach pads | (211) | (118) |
Other assets | (17) | |
Increase (decrease) in operating liabilities: | ||
Accounts payable and other accrued liabilities | (123) | (128) |
Reclamation and remediation liabilities | (33) | (32) |
Accrued tax liabilities | (163) | 32 |
Net change in operating assets and liabilities | $ (510) | $ (268) |
CONDENSED CONSOLIDATING FINA105
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Additional Information (Details) | Jun. 30, 2018 |
Newmont USA | |
Condensed Financial Statements | |
Percent ownership held by Newmont | 100.00% |
CONDENSED CONSOLIDATING FINA106
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Condensed Consolidating Statement of Operations | |||||
Sales | $ 1,662 | $ 1,875 | $ 3,479 | $ 3,565 | |
Costs and expenses | |||||
Costs applicable to sales (1) | [1] | 965 | 999 | 1,994 | 1,956 |
Depreciation and amortization | 279 | 310 | 580 | 610 | |
Reclamation and remediation | 37 | 43 | 65 | 72 | |
Exploration | 54 | 51 | 94 | 87 | |
Advanced projects, research and development | 36 | 32 | 70 | 58 | |
General and administrative | 63 | 58 | 122 | 113 | |
Other expense, net | 13 | 14 | 24 | 31 | |
Total costs and expenses | 1,447 | 1,507 | 2,949 | 2,927 | |
Other income (expense): | |||||
Other income, net | 139 | 31 | 160 | 22 | |
Interest expense, net of capitalized interest | (49) | (64) | (102) | (131) | |
Total other income (expense) | 90 | (33) | 58 | (109) | |
Income (loss) before income and mining tax and other items | 305 | 335 | 588 | 529 | |
Income and mining tax benefit (expense) | (18) | (166) | (123) | (277) | |
Equity income (loss) of affiliates | (7) | (3) | (16) | (5) | |
Net income (loss) from continuing operations | 280 | 166 | 449 | 247 | |
Net income (loss) from discontinued operations (Note 9) | 18 | (15) | 40 | (38) | |
Net income (loss) | 298 | 151 | 489 | 209 | |
Net income (loss) attributable to noncontrolling interests | (6) | 24 | (5) | 13 | |
Net income (loss) attributable to Newmont stockholders | 292 | 175 | 484 | 222 | |
Comprehensive income (loss) | 305 | 155 | 504 | 225 | |
Comprehensive loss (income) attributable to noncontrolling interests | (6) | 24 | (5) | 13 | |
Comprehensive income (loss) attributable to Newmont stockholders | 299 | 179 | 499 | 238 | |
Eliminations | |||||
Other income (expense): | |||||
Interest income - intercompany | (40) | (62) | (94) | (93) | |
Interest expense - intercompany | 40 | 62 | 94 | 93 | |
Equity income (loss) of affiliates | (310) | (36) | (458) | (27) | |
Net income (loss) from continuing operations | (310) | (36) | (458) | (27) | |
Net income (loss) | (310) | (36) | (458) | (27) | |
Net income (loss) attributable to Newmont stockholders | (310) | (36) | (458) | (27) | |
Comprehensive income (loss) | (310) | (36) | (458) | (27) | |
Comprehensive income (loss) attributable to Newmont stockholders | (310) | (36) | (458) | (27) | |
Newmont Mining Corporation | Reportable Legal Entities | |||||
Costs and expenses | |||||
Depreciation and amortization | 1 | 1 | 2 | 2 | |
Total costs and expenses | 1 | 1 | 2 | 2 | |
Other income (expense): | |||||
Other income, net | (5) | 23 | 3 | 26 | |
Interest income - intercompany | 17 | 23 | 51 | 47 | |
Interest expense - intercompany | (11) | (14) | (19) | (22) | |
Interest expense, net of capitalized interest | (48) | (59) | (97) | (121) | |
Total other income (expense) | (47) | (27) | (62) | (70) | |
Income (loss) before income and mining tax and other items | (48) | (28) | (64) | (72) | |
Income and mining tax benefit (expense) | 10 | 9 | 13 | 25 | |
Equity income (loss) of affiliates | 330 | 194 | 535 | 269 | |
Net income (loss) from continuing operations | 292 | 175 | 484 | 222 | |
Net income (loss) | 292 | 175 | 484 | 222 | |
Net income (loss) attributable to Newmont stockholders | 292 | 175 | 484 | 222 | |
Comprehensive income (loss) | 299 | 179 | 499 | 238 | |
Comprehensive income (loss) attributable to Newmont stockholders | 299 | 179 | 499 | 238 | |
Newmont USA | Reportable Legal Entities | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 419 | 517 | 931 | 941 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 281 | 280 | 605 | 583 | |
Depreciation and amortization | 75 | 82 | 162 | 165 | |
Reclamation and remediation | 4 | 4 | 7 | 7 | |
Exploration | 15 | 13 | 26 | 22 | |
Advanced projects, research and development | 8 | 2 | 14 | 3 | |
General and administrative | 22 | 18 | 41 | 35 | |
Other expense, net | 1 | 2 | 2 | 8 | |
Total costs and expenses | 406 | 401 | 857 | 823 | |
Other income (expense): | |||||
Other income, net | 20 | 3 | 27 | 3 | |
Interest income - intercompany | 11 | 24 | 22 | 24 | |
Interest expense - intercompany | (4) | (4) | |||
Interest expense, net of capitalized interest | (1) | (2) | (3) | ||
Total other income (expense) | 31 | 22 | 47 | 20 | |
Income (loss) before income and mining tax and other items | 44 | 138 | 121 | 138 | |
Income and mining tax benefit (expense) | (7) | (22) | (21) | (22) | |
Equity income (loss) of affiliates | (20) | (150) | (77) | (234) | |
Net income (loss) from continuing operations | 17 | (34) | 23 | (118) | |
Net income (loss) | 17 | (34) | 23 | (118) | |
Net income (loss) attributable to Newmont stockholders | 17 | (34) | 23 | (118) | |
Comprehensive income (loss) | 17 | (29) | 23 | (109) | |
Comprehensive income (loss) attributable to Newmont stockholders | 17 | (29) | 23 | (109) | |
Other Subsidiaries | Reportable Legal Entities | |||||
Condensed Consolidating Statement of Operations | |||||
Sales | 1,243 | 1,358 | 2,548 | 2,624 | |
Costs and expenses | |||||
Costs applicable to sales (1) | 684 | 719 | 1,389 | 1,373 | |
Depreciation and amortization | 203 | 227 | 416 | 443 | |
Reclamation and remediation | 33 | 39 | 58 | 65 | |
Exploration | 39 | 38 | 68 | 65 | |
Advanced projects, research and development | 28 | 30 | 56 | 55 | |
General and administrative | 41 | 40 | 81 | 78 | |
Other expense, net | 12 | 12 | 22 | 23 | |
Total costs and expenses | 1,040 | 1,105 | 2,090 | 2,102 | |
Other income (expense): | |||||
Other income, net | 124 | 5 | 130 | (7) | |
Interest income - intercompany | 12 | 15 | 21 | 22 | |
Interest expense - intercompany | (29) | (44) | (75) | (67) | |
Interest expense, net of capitalized interest | (1) | (4) | (3) | (7) | |
Total other income (expense) | 106 | (28) | 73 | (59) | |
Income (loss) before income and mining tax and other items | 309 | 225 | 531 | 463 | |
Income and mining tax benefit (expense) | (21) | (153) | (115) | (280) | |
Equity income (loss) of affiliates | (7) | (11) | (16) | (13) | |
Net income (loss) from continuing operations | 281 | 61 | 400 | 170 | |
Net income (loss) from discontinued operations (Note 9) | 18 | (15) | 40 | (38) | |
Net income (loss) | 299 | 46 | 440 | 132 | |
Net income (loss) attributable to noncontrolling interests | (6) | 24 | (5) | 13 | |
Net income (loss) attributable to Newmont stockholders | 293 | 70 | 435 | 145 | |
Comprehensive income (loss) | 299 | 41 | 440 | 123 | |
Comprehensive loss (income) attributable to noncontrolling interests | (6) | 24 | (5) | 13 | |
Comprehensive income (loss) attributable to Newmont stockholders | $ 293 | $ 65 | $ 435 | $ 136 | |
[1] | Excludes Depreciation and amortization and Reclamation and remediation. |
CONDENSED CONSOLIDATING FINA107
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | $ 667 | $ 902 | |||||
Net cash provided by (used in) operating activities of discontinued operations | (5) | (9) | |||||
Net cash provided by (used in) operating activities | 662 | 893 | |||||
Investing activities: | |||||||
Additions to property, plant and mine development | $ (258) | $ (183) | (489) | (363) | |||
Acquisitions, net | (39) | ||||||
Proceeds from sales of investments | 15 | 19 | |||||
Other | 2 | 17 | |||||
Purchases of investments | (6) | (113) | |||||
Net cash provided by (used in) investing activities | (517) | (440) | |||||
Financing activities: | |||||||
Dividends paid to common stockholders | (150) | (54) | |||||
Repurchase of common stock | (70) | ||||||
Distributions to noncontrolling interests | (69) | (80) | |||||
Funding from noncontrolling interests | 52 | 46 | |||||
Sale of noncontrolling interests | 48 | ||||||
Payments for withholding of employee taxes related to stock-based compensation | (39) | (13) | |||||
Other | (3) | (6) | |||||
Net cash provided by (used in) financing activities | (231) | (107) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2) | 2 | |||||
Net change in cash, cash equivalents and restricted cash | (88) | 348 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 3,298 | 2,782 | |||||
Cash, cash equivalents and restricted cash at end of period | 3,210 | 3,130 | 3,210 | 3,130 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ 3,127 | $ 3,259 | $ 3,105 | ||||
Restricted cash included in Other current | $ 1 | $ 2 | |||||
Location of current restricted cash | us-gaap:OtherAssetsCurrent | us-gaap:OtherAssetsCurrent | |||||
Restricted cash included in Other noncurrent | $ 82 | $ 23 | |||||
Location of noncurrent restricted cash | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |||||
Total cash, cash equivalents and restricted cash | 3,210 | 3,130 | 3,298 | 2,782 | $ 3,210 | 3,298 | $ 3,130 |
Newmont Mining Corporation | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | (63) | (116) | |||||
Net cash provided by (used in) operating activities | (63) | (116) | |||||
Investing activities: | |||||||
Purchases of investments | (109) | ||||||
Net cash provided by (used in) investing activities | (109) | ||||||
Financing activities: | |||||||
Dividends paid to common stockholders | (150) | (54) | |||||
Repurchase of common stock | (70) | ||||||
Net intercompany borrowings (repayments) | 283 | 282 | |||||
Other | (3) | ||||||
Net cash provided by (used in) financing activities | 63 | 225 | |||||
Newmont USA | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | 251 | 222 | |||||
Net cash provided by (used in) operating activities | 251 | 222 | |||||
Investing activities: | |||||||
Additions to property, plant and mine development | (125) | (121) | |||||
Proceeds from sales of investments | 11 | ||||||
Other | 2 | 2 | |||||
Net cash provided by (used in) investing activities | (112) | (119) | |||||
Financing activities: | |||||||
Payments for withholding of employee taxes related to stock-based compensation | (39) | (13) | |||||
Net intercompany borrowings (repayments) | (99) | (90) | |||||
Other | (1) | (1) | |||||
Net cash provided by (used in) financing activities | (139) | (104) | |||||
Net change in cash, cash equivalents and restricted cash | (1) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 1 | ||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Total cash, cash equivalents and restricted cash | 1 | ||||||
Other Subsidiaries | Reportable Legal Entities | |||||||
Operating activities: | |||||||
Net cash provided by (used in) continuing operating activities | 479 | 796 | |||||
Net cash provided by (used in) operating activities of discontinued operations | (5) | (9) | |||||
Net cash provided by (used in) operating activities | 474 | 787 | |||||
Investing activities: | |||||||
Additions to property, plant and mine development | (364) | (242) | |||||
Acquisitions, net | (39) | ||||||
Proceeds from sales of investments | 4 | 19 | |||||
Other | 15 | ||||||
Purchases of investments | (6) | (4) | |||||
Net cash provided by (used in) investing activities | (405) | (212) | |||||
Financing activities: | |||||||
Distributions to noncontrolling interests | (69) | (80) | |||||
Funding from noncontrolling interests | 52 | 46 | |||||
Sale of noncontrolling interests | 48 | ||||||
Net intercompany borrowings (repayments) | (184) | (192) | |||||
Other | (2) | (2) | |||||
Net cash provided by (used in) financing activities | (155) | (228) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2) | 2 | |||||
Net change in cash, cash equivalents and restricted cash | (88) | 349 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 3,298 | 2,781 | |||||
Cash, cash equivalents and restricted cash at end of period | 3,210 | 3,130 | 3,210 | 3,130 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | 3,127 | 3,259 | 3,105 | ||||
Restricted cash included in Other current | 1 | 2 | |||||
Restricted cash included in Other noncurrent | 82 | 23 | |||||
Total cash, cash equivalents and restricted cash | $ 3,210 | $ 3,130 | $ 3,298 | $ 2,781 | $ 3,210 | $ 3,298 | $ 3,130 |
CONDENSED CONSOLIDATING FINA108
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Assets | |||
Cash and cash equivalents | $ 3,127 | $ 3,259 | $ 3,105 |
Trade receivables (Note 4) | 133 | 124 | |
Other accounts receivables | 101 | 113 | |
Investments | 56 | 62 | |
Inventories | 697 | 679 | |
Stockpiles and ore on leach pads | 711 | 676 | |
Other current assets | 142 | 153 | |
Current assets | 4,967 | 5,066 | |
Property, plant and mine development, net | 12,351 | 12,338 | |
Investments | 353 | 280 | |
Stockpiles and ore on leach pads | 1,837 | 1,848 | |
Deferred income tax assets | 537 | 549 | |
Other non-current assets | 610 | 565 | |
Total assets | 20,655 | 20,646 | |
Liabilities | |||
Lease and other financing obligations, current (Note 20) | 13 | 4 | |
Accounts payable | 360 | 375 | |
Employee-related benefits | 240 | 309 | |
Income and mining taxes | 71 | 248 | |
Other current liabilities | 396 | 462 | |
Current liabilities | 1,080 | 1,398 | |
Debt | 4,042 | 4,040 | |
Lease and other financing obligations, noncurrent (Note 20) | 66 | 21 | |
Reclamation and remediation liabilities | 2,369 | 2,345 | |
Deferred income tax liabilities | 589 | 595 | |
Employee-related benefits | 392 | 386 | |
Other non-current liabilities | 284 | 342 | |
Total liabilities | 8,822 | 9,127 | |
Contingently redeemable noncontrolling interest (Note 10) | 48 | ||
Equity | |||
Newmont stockholders' equity | 10,813 | 10,535 | |
Noncontrolling interests | 972 | 984 | |
Total equity | 11,785 | 11,519 | |
Total liabilities and equity | 20,655 | 20,646 | |
Eliminations | |||
Assets | |||
Intercompany receivable | (10,649) | (10,138) | |
Current assets | (10,649) | (10,138) | |
Property, plant and mine development, net | (27) | (27) | |
Investments in subsidiaries | (12,803) | (11,701) | |
Non-current intercompany receivable | (1,271) | (2,108) | |
Total assets | (24,750) | (23,974) | |
Liabilities | |||
Intercompany payable | (10,649) | (10,138) | |
Current liabilities | (10,649) | (10,138) | |
Non-current intercompany payable | (1,298) | (2,135) | |
Total liabilities | (11,947) | (12,273) | |
Equity | |||
Newmont stockholders' equity | (12,803) | (11,701) | |
Total equity | (12,803) | (11,701) | |
Total liabilities and equity | (24,750) | (23,974) | |
Newmont Mining Corporation | Reportable Legal Entities | |||
Assets | |||
Intercompany receivable | 2,075 | 2,053 | |
Current assets | 2,075 | 2,053 | |
Property, plant and mine development, net | 16 | 17 | |
Investments | 113 | 106 | |
Investments in subsidiaries | 13,250 | 12,012 | |
Deferred income tax assets | 87 | 84 | |
Non-current intercompany receivable | 738 | 1,700 | |
Total assets | 16,279 | 15,972 | |
Liabilities | |||
Intercompany payable | 1,364 | 1,338 | |
Other current liabilities | 52 | 52 | |
Current liabilities | 1,416 | 1,390 | |
Debt | 4,042 | 4,040 | |
Employee-related benefits | 1 | ||
Non-current intercompany payable | 7 | 7 | |
Total liabilities | 5,466 | 5,437 | |
Equity | |||
Newmont stockholders' equity | 10,813 | 10,535 | |
Total equity | 10,813 | 10,535 | |
Total liabilities and equity | 16,279 | 15,972 | |
Newmont USA | Reportable Legal Entities | |||
Assets | |||
Trade receivables (Note 4) | 15 | 18 | |
Intercompany receivable | 4,882 | 4,601 | |
Inventories | 167 | 181 | |
Stockpiles and ore on leach pads | 215 | 196 | |
Other current assets | 40 | 38 | |
Current assets | 5,319 | 5,034 | |
Property, plant and mine development, net | 3,059 | 3,082 | |
Investments | 5 | 4 | |
Investments in subsidiaries | (463) | (311) | |
Stockpiles and ore on leach pads | 643 | 648 | |
Deferred income tax assets | 5 | ||
Non-current intercompany receivable | 527 | 401 | |
Other non-current assets | 244 | 255 | |
Total assets | 9,334 | 9,118 | |
Liabilities | |||
Lease and other financing obligations, current (Note 20) | 1 | 1 | |
Accounts payable | 74 | 83 | |
Intercompany payable | 2,529 | 2,145 | |
Employee-related benefits | 100 | 143 | |
Income and mining taxes | 8 | 18 | |
Other current liabilities | 115 | 163 | |
Current liabilities | 2,827 | 2,553 | |
Lease and other financing obligations, noncurrent (Note 20) | 3 | 4 | |
Reclamation and remediation liabilities | 312 | 309 | |
Deferred income tax liabilities | 125 | 121 | |
Employee-related benefits | 223 | 222 | |
Other non-current liabilities | 13 | 18 | |
Total liabilities | 3,503 | 3,227 | |
Equity | |||
Newmont stockholders' equity | 5,831 | 5,891 | |
Total equity | 5,831 | 5,891 | |
Total liabilities and equity | 9,334 | 9,118 | |
Other Subsidiaries | Reportable Legal Entities | |||
Assets | |||
Cash and cash equivalents | 3,127 | 3,259 | $ 3,105 |
Trade receivables (Note 4) | 118 | 106 | |
Other accounts receivables | 101 | 113 | |
Intercompany receivable | 3,692 | 3,484 | |
Investments | 56 | 62 | |
Inventories | 530 | 498 | |
Stockpiles and ore on leach pads | 496 | 480 | |
Other current assets | 102 | 115 | |
Current assets | 8,222 | 8,117 | |
Property, plant and mine development, net | 9,303 | 9,266 | |
Investments | 235 | 170 | |
Investments in subsidiaries | 16 | ||
Stockpiles and ore on leach pads | 1,194 | 1,200 | |
Deferred income tax assets | 450 | 460 | |
Non-current intercompany receivable | 6 | 7 | |
Other non-current assets | 366 | 310 | |
Total assets | 19,792 | 19,530 | |
Liabilities | |||
Lease and other financing obligations, current (Note 20) | 12 | 3 | |
Accounts payable | 286 | 292 | |
Intercompany payable | 6,756 | 6,655 | |
Employee-related benefits | 140 | 166 | |
Income and mining taxes | 63 | 230 | |
Other current liabilities | 229 | 247 | |
Current liabilities | 7,486 | 7,593 | |
Lease and other financing obligations, noncurrent (Note 20) | 63 | 17 | |
Reclamation and remediation liabilities | 2,057 | 2,036 | |
Deferred income tax liabilities | 464 | 474 | |
Employee-related benefits | 168 | 164 | |
Non-current intercompany payable | 1,291 | 2,128 | |
Other non-current liabilities | 271 | 324 | |
Total liabilities | 11,800 | 12,736 | |
Contingently redeemable noncontrolling interest (Note 10) | 48 | ||
Equity | |||
Newmont stockholders' equity | 6,972 | 5,810 | |
Noncontrolling interests | 972 | 984 | |
Total equity | 7,944 | 6,794 | |
Total liabilities and equity | $ 19,792 | $ 19,530 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Environmental Matters (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accrual for future reclamation costs | ||||
Asset retirement obligation | $ 2,180 | $ 2,144 | $ 1,965 | $ 1,913 |
Environmental remediation obligations | 294 | 304 | $ 295 | $ 312 |
Other current liabilities | ||||
Accrual for future reclamation costs | ||||
Reclamation obligation, current | $ 60 | $ 60 | ||
Reclamation and remediation liabilities | ||||
Accrual for future reclamation costs | ||||
Range of reclamation and remediation liabilities upper limit | 43.00% | |||
Range of reclamation and remediation liabilities lower limit | 0.00% |
COMMITMENTS AND CONTINGENCIE110
COMMITMENTS AND CONTINGENCIES - Environmental Matters by Site (Details) - USD ($) $ in Millions | Jun. 05, 2007 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2012 |
Loss contingencies | |||||||||
Reclamation and remediation (Note 4) | $ 12 | $ 3 | $ 16 | $ 9 | |||||
Environmental remediation obligations | $ 294 | 294 | $ 295 | 294 | $ 295 | $ 304 | $ 312 | ||
Midnite Mine | |||||||||
Loss contingencies | |||||||||
Department of Interior contribution for past and future cleanup costs | $ 42 | ||||||||
Reclamation and remediation (Note 4) | 11 | ||||||||
Environmental remediation | Ross-Adams Mine Site | |||||||||
Loss contingencies | |||||||||
Damages sought | $ 0.3 | ||||||||
Environmental remediation | Midnite Mine | |||||||||
Loss contingencies | |||||||||
Environmental remediation obligations | $ 171 | $ 171 | $ 171 | ||||||
Newmont USA | |||||||||
Loss contingencies | |||||||||
Percent ownership held by Newmont | 100.00% | 100.00% | 100.00% | ||||||
Dawn Mining Company | |||||||||
Loss contingencies | |||||||||
Percent ownership held by Newmont | 51.00% | 51.00% | 51.00% |
COMMITMENTS AND CONTINGENCIE111
COMMITMENTS AND CONTINGENCIES - Other Legal Matters - Administrative Matters (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Nov. 30, 2015judgment | Jun. 30, 2018USD ($)item$ / item | Dec. 31, 2000USD ($) | Dec. 31, 2017 | Nov. 30, 2017 | |
Minera Yanacocha | |||||
Loss contingencies | |||||
Percent ownership held by Newmont | 51.35% | 54.05% | 51.35% | ||
Contractual right to conduct exploration | |||||
Loss contingencies | |||||
Intangible asset acquired | $ | $ 29 | ||||
Intangible asset, useful life | 10 years | ||||
Yanacocha Tax Dispute | |||||
Loss contingencies | |||||
Number of rulings overturned | judgment | 2 | ||||
Yanacocha Tax Dispute | Maximum | |||||
Loss contingencies | |||||
Potential liability, including fines and interest | $ | $ 83 | ||||
Minera Yanacocha | |||||
Loss contingencies | |||||
Potential fine for each unit alleged violations (in dollars per unit) | $ / item | 0.001287 | ||||
Minera Yanacocha | Minimum | |||||
Loss contingencies | |||||
Potential fine for alleged violations | $ | $ 0 | ||||
Minera Yanacocha | Maximum | |||||
Loss contingencies | |||||
Potential fine for alleged violations | $ | $ 57 | ||||
Minera Yanacocha | OEFA | Minimum | |||||
Loss contingencies | |||||
Number of units with alleged violations | item | 0 | ||||
Minera Yanacocha | OEFA | Maximum | |||||
Loss contingencies | |||||
Number of units with alleged violations | item | 44,540 | ||||
Minera Yanacocha | Water Authority | Minimum | |||||
Loss contingencies | |||||
Number of units with alleged violations | item | 0 | ||||
Minera Yanacocha | Water Authority | Maximum | |||||
Loss contingencies | |||||
Number of units with alleged violations | item | 59 |
COMMITMENTS AND CONTINGENCIE112
COMMITMENTS AND CONTINGENCIES - NWG Investments Inc v. Fronteer Gold Inc. (Details) $ in Millions, $ 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 | $ 1.2 | ||||
Fronteer | Aurora | |||||
Loss contingencies | |||||
Ownership/Economic interest | 47.00% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Galore Creek [Member] | Teck Resources [Member] | |
Subsequent Event [Line Items] | |
Ownership interest (as a percent) | 50.00% |
Galore Creek [Member] | |
Subsequent Event [Line Items] | |
Ownership interest acquired | 50.00% |
Cash consideration | $ 100 |
Deferred payments | 100 |
Contingent consideration liability | $ 75 |