Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

​

To the Board of Directors and Stockholders of Newmont Corporation

​

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Newmont Corporation (the Company) as of December 31, 2019 and 2018, the related consolidated statements of operations, comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2019, the related notes and the financial statement schedule in Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, based on our audits and, for 2019, the report of other auditors, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.

​

We did not audit the 2019 financial statements of Nevada Gold Mines LLC, a 38.5% owned investment which is proportionately consolidated, which represented 20% of the Company’s total assets at December 31, 2019, 10% of revenues and 7% of net income for the year then ended. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Nevada Gold Mines LLC for 2019, is based solely on the report of the other auditors.

​

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission 2013 framework, and our report dated February 20, 2020 expressed an unqualified opinion thereon, based on our audit and the report of the other auditors.

​

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

​

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of other auditors provide a reasonable basis for our opinion.

​

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

​

	​ ​ ​
​	Business Combination
​	​
Description of the Matter	As discussed in Note 3 to the financial statements, the Company completed its acquisition of Goldcorp Inc. for total consideration of $9.456 billion during 2019. The transaction was accounted for as a business combination. ​ Auditing management’s accounting for the business combination was challenging due to the significant judgment and estimation required by management to determine the provisional fair values of property, plant, and mineral interests. The significant estimation was primarily due to the complexity of the valuation model prepared by management to measure the fair value, and the sensitivity of the respective fair values to the significant underlying assumptions. The significant assumptions used to estimate the fair value of

mineral interests included long-term metal price assumptions, estimated quantities of ore reserves and mineral resources, and the weighted average cost of capital. These significant assumptions are forward-looking and could be affected by future economic and market conditions.

​ How We Addressed the Matter in Our Audit

​ We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting for the business combination and valuation of the acquired assets. For example, we tested controls over management’s valuation of acquired property, plant, and mine development and mineral interests, including the review of the valuation model and underlying assumptions used to develop such estimates. ​ Our audit procedures included, among others, evaluating the Company's valuation methodology, significant assumptions used by the Company, and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions and estimates. We involved our valuation specialists to assist with our evaluation of the selection and application of the valuation methodology used by the Company and significant assumptions included in the fair value estimates. We assessed the estimated quantities of ore reserves and mineral resources by comparing to information compiled by qualified persons and evaluated extraction and production of those quantities compared to historical performance. We compared the long-term metal prices to publicly available data for comparable entities and consensus market views of future trends. We examined the inputs to the weighted average cost of capital assumptions. We also performed sensitivity analyses of the significant assumptions within the valuation models by varying key assumptions within an observable range.

​

/s/ Ernst & Young LLP

​

We have served as the Company’s auditor since 2014.

​

Denver, Colorado

February 20, 2020

​

​

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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To the Board of Managers and Members of Nevada Gold Mines LLC

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Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the consolidated balance sheet of Nevada Gold Mines LLC and its subsidiaries (together, the Joint Venture) as of December 31, 2019 and the related consolidated statements of operations and comprehensive income, changes in members’ equity and cash flows for the period from inception April 11, 2019 to December 31, 2019, including the related notes (collectively referred to as the consolidated financial statements) (not presented herein). We also have audited the Joint Venture’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

​

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Joint Venture as of December 31, 2019, the results of its operations and its cash flows for the period from inception April 11, 2019 to December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Joint Venture maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control – Integrated Framework (2013) issued by the COSO.

​

Basis for Opinions

The Joint Venture’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting (not presented herein). Our responsibility is to express opinions on the Joint Venture’s consolidated financial statements and on the Joint Venture’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Joint Venture in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

​

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

​

Our audit of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

​

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

​

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

​

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the Board of Managers (acting in a role equivalent to the audit committee) and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

​

Determination of fair value of the contributed operations and property, plant and mine development acquired on inception

​

As described in Note 3 to the consolidated financial statements (not presented herein), Barrick Gold Corporation (Barrick) and Newmont Corporation (Newmont) entered into an implementation agreement and established a joint venture which combined their respective mining operations, assets and reserves in Nevada, USA. On July 1, 2019, Barrick and Newmont contributed operations in exchange for an economic interest in the Joint Venture equal to 61.5% and 38.5%, respectively. The contributed operations were fair valued at a net $19 billion (at 100%) and recorded as a capital contribution and the net assets contributed were also fair valued which included property, plant and mine development of $18.3 billion (at 100%). The difference between the fair value of the operations contributed and the net assets contributed was recorded as goodwill of $696 million (at 100%). Mineral interests represented a significant portion of property, plant and mine development. As disclosed by management, the fair value of the contributed operations and mineral interests was determined based on income and cost valuation methods. Management applied significant judgment in determining the fair value of the contributed operations and mineral interests, including the use of significant assumptions with respect to future gold prices, estimated quantities of ore reserves and mineral resources (including expected conversions of mineralized material to proven and probable reserves), expected future production costs, capital expenditures and discount rates. Estimated quantities of ore reserves and mineral resources are based on information compiled by qualified persons (management’s specialists).

​

The principal considerations, for our determination that performing procedures relating to the determination of fair value of the contributed operations and property, plant and mine development acquired on inception is a critical audit matter, are (i) there was significant judgment by management in determining the fair value of the contributed operations and mineral interests acquired on inception including the future gold prices, estimated quantities of ore reserves and mineral resources (including expected conversions of mineralized material to proven and probable reserves), expected future production costs, capital expenditures and discount rates, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence over management’s determination of fair value of the contributed operations and mineral interests, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge to assist in evaluating evidence.

​

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls over the valuation of the contributed operations and mineral interests, including controls over the development of the significant assumptions used in the valuation of the contributed operations and mineral interests. These procedures also included, among others, testing management’s process for determining the fair value of the contributed operations and mineral interests, including evaluating the appropriateness of the valuation methods, testing the completeness, accuracy and relevance of data used to determine the fair value and evaluating the reasonableness of the significant assumptions used by management. These assumptions include future gold prices, estimated quantities of ore reserves and mineral resources (including expected conversions of mineralized material to proven and probable reserves), expected future production costs, capital expenditures and discount rates applied. Evaluating the reasonableness of the future gold price assumptions involved comparing those prices to external benchmarking data. Evaluating the reasonableness of expected future production costs and capital expenditures was done by comparing the costs and capital expenditures to actual production costs and capital expenditures and were consistent with evidence obtained in other areas of the audit. The work of management’s specialists was used in performing the procedures to evaluate the reasonableness of the ore reserves and mineral resources estimates including the expected conversions of mineralized material to proven and probable reserves. As a basis for this work, the management’s specialists’ qualifications and objectivity were understood as well as their methods and assumptions. The procedures performed included tests of the data used by the management’s specialists and evaluation of their findings. Professionals with specialized skill and knowledge assisted in evaluating the reasonableness of discount rates.

“/s/PricewaterhouseCoopers LLP”

Chartered Professional Accountants

Vancouver, Canada

February 20, 2020

We have served as the Joint Venture's auditor since 2019.

​

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
​	​	(in millions, except per share)								​
Sales (Note 6)	​	$	9,740	​	$	7,253	​	$	7,379	​
​	​	​	​	​	​	​	​	​	​	​
Costs and expenses:	​	​	​	​	​	​	​	​	​	​
Costs applicable to sales (1)	​	​	5,195	​	​	4,093	​	​	4,062	​
Depreciation and amortization	​	​	1,960	​	​	1,215	​	​	1,261	​
Reclamation and remediation (Note 7)	​	​	280	​	​	163	​	​	192	​
Exploration	​	​	265	​	​	197	​	​	179	​
Advanced projects, research and development	​	​	150	​	​	153	​	​	143	​
General and administrative	​	​	313	​	​	244	​	​	237	​
Impairment of long-lived assets (Note 8)	​	​	5	​	​	369	​	​	14	​
Other expense, net (Note 9)	​	​	295	​	​	29	​	​	32	​
​	​	​	8,463	​	​	6,463	​	​	6,120	​
Other income (expense):	​	​	​	​	​	​	​	​	​	​
Gain on formation of Nevada Gold Mines (Note 4)	​	​	2,390	​	​	—	​	​	—	​
Other income, net (Note 10)	​	​	327	​	​	155	​	​	54	​
Interest expense, net of capitalized interest of $26, $37 and $22, respectively	​	​	(301)	​	​	(207)	​	​	(241)	​
​	​	​	2,416	​	​	(52)	​	​	(187)	​
Income (loss) before income and mining tax and other items	​	​	3,693	​	​	738	​	​	1,072	​
Income and mining tax benefit (expense) (Note 11)	​	​	(832)	​	​	(386)	​	​	(1,127)	​
Equity income (loss) of affiliates (Note 12)	​	​	95	​	​	(33)	​	​	(16)	​
Net income (loss) from continuing operations	​	​	2,956	​	​	319	​	​	(71)	​
Net income (loss) from discontinued operations (Note 13)	​	​	(72)	​	​	61	​	​	(38)	​
Net income (loss)	​	​	2,884	​	​	380	​	​	(109)	​
Net loss (income) attributable to noncontrolling interests (Note 14)	​	​	(79)	​	​	(39)	​	​	(5)	​
Net income (loss) attributable to Newmont stockholders	​	$	2,805	​	$	341	​	$	(114)	​
​	​	​	​	​	​	​	​	​	​	​
Net income (loss) attributable to Newmont stockholders:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	2,877	​	$	280	​	$	(76)	​
Discontinued operations	​	​	(72)	​	​	61	​	​	(38)	​
​	​	$	2,805	​	$	341	​	$	(114)	​
Net income (loss) per common share (Note 15):	​	​	​	​	​	​	​	​	​	​
Basic:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	3.92	​	$	0.53	​	$	(0.14)	​
Discontinued operations	​	​	(0.10)	​	​	0.11	​	​	(0.07)	​
​	​	$	3.82	​	$	0.64	​	$	(0.21)	​
Diluted:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	3.91	​	$	0.53	​	$	(0.14)	​
Discontinued operations	​	​	(0.10)	​	​	0.11	​	​	(0.07)	​
​	​	$	3.81	​	$	0.64	​	$	(0.21)	​

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

The accompanying notes are an integral part of these consolidated financial statements.

​

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
​	​	(in millions)								​
Net income (loss)	​	$	2,884	​	$	380		$	(109)	​
Other comprehensive income (loss):	​	​	​	​	​	​	​	​	​	​
Change in marketable securities, net of tax of $-, $-, and $-, respectively	​	​	5	​	​	1	​	​	(15)	​
Foreign currency translation adjustments	​	​	1	​	​	(12)	​	​	12	​
Change in pension and other post-retirement benefits, net of tax of $-, $2, and $(8), respectively	​	​	(19)	​	​	(9)	​	​	15	​
Change in fair value of cash flow hedge instruments, net of tax of $(2), $(4) and $(15), respectively	​	​	32	​	​	9	​	​	30	​
Other comprehensive income (loss)	​	​	19	​	​	(11)	​	​	42	​
Comprehensive income (loss)	​	$	2,903	​	$	369	​	$	(67)	​
​	​	​	​	​	​	​	​	​	​	​
Comprehensive income (loss) attributable to:	​	​	​	​	​	​	​	​	​	​
Newmont stockholders	​	$	2,824	​	$	330	​	$	(72)	​
Noncontrolling interests	​	​	79	​	​	39	​	​	5	​
​	​	$	2,903	​	$	369	​	$	(67)	​

​

The accompanying notes are an integral part of these consolidated financial statements.

​

​

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017		​
​	​	(in millions)								​
Operating activities:	​	​	​		​	​	​	​	​	​
Net income (loss)		$	2,884		$	380		$	(109)	​
Adjustments:	​	​	​		​	​	​	​	​	​
Depreciation and amortization	​	​	1,960		​	1,215	​	​	1,261	​
Stock-based compensation (Note 17)	​	​	97	​	​	76	​	​	70	​
Reclamation and remediation	​	​	258	​	​	146	​	​	180	​
Loss (income) from discontinued operations (Note 13)	​	​	72	​	​	(61)	​	​	38	​
Deferred income taxes (Note 11)	​	​	334		​	150	​	​	797	​
Impairment of long-lived assets (Note 8)	​	​	5	​	​	369	​	​	14	​
Change in fair value of investments (Note 10)	​	​	(166)	​	​	50	​	​	—	​
Gain on formation of Nevada Gold Mines (Note 4)	​	​	(2,390)	​	​	—	​	​	—	​
Write-downs of inventory and stockpiles and ore on leach pads	​	​	130	​	​	271	​	​	212	​
Other operating adjustments	​	​	1	​	​	(16)	​	​	68	​
Net change in operating assets and liabilities (Note 29)	​	​	(309)		​	(743)	​	​	(392)	​
Net cash provided by (used in) operating activities of continuing operations	​	​	2,876		​	1,837	​	​	2,139	​
Net cash provided by (used in) operating activities of discontinued operations (Note 13)	​	​	(10)		​	(10)	​	​	(15)	​
Net cash provided by (used in) operating activities	​	​	2,866		​	1,827	​	​	2,124	​
​	​	​	​	​	​	​	​	​	​	​
Investing activities:	​	​	​		​	​	​	​	​	​
Additions to property, plant and mine development	​	​	(1,463)		​	(1,032)	​	​	(866)	​
Return of investment from equity method investees	​	​	132	​	​	—	​	​	—	​
Acquisitions, net (1)	​	​	127		​	(140)	​	​	—	​
Purchases of investments	​	​	(112)	​	​	(39)	​	​	(130)	​
Proceeds from sales of investments	​	​	67	​	​	18	​	​	35	​
Proceeds from sales of other assets	​	​	30	​	​	24	​	​	5	​
Other	​	​	(7)		​	(8)	​	​	10	​
Net cash provided by (used in) investing activities	​	​	(1,226)		​	(1,177)	​	$	(946)	​
​	​	​	​	​	​	​	​	​	​	​
Financing activities:	​	​	​		​	​	​	​	​	​
Repayment of debt	​	​	(1,876)		​	—	​	​	(379)	​
Dividends paid to common stockholders	​	​	(889)		​	(301)	​	​	(134)	​
Proceeds from issuance of debt, net	​	​	690	​	​	—	​	​	—	​
Repurchases of common stock	​	​	(479)	​	​	(98)	​	​	—	​
Distributions to noncontrolling interests	​	​	(186)	​	​	(160)	​	​	(178)	​
Funding from noncontrolling interests	​	​	93	​	​	100	​	​	94	​
Payments on lease and other financing obligations	​	​	(55)	​	​	(4)	​	​	(5)	​
Payments for withholding of employee taxes related to stock-based compensation	​	​	(50)	​	​	(40)	​	​	(14)	​
Proceeds from sale of noncontrolling interests	​	​	—	​	​	48	​	​	—	​
Acquisition of noncontrolling interests	​	​	—	​	​	—	​	​	(48)	​
Other	​	​	(25)	​	​	—	​	​	(4)	​
Net cash provided by (used in) financing activities	​	​	(2,777)	​	​	(455)	​	​	(668)	​
Effect of exchange rate changes on cash, cash equivalents and restricted cash	​	​	(3)		​	(4)	​	​	6	​
Net change in cash, cash equivalents and restricted cash	​	​	(1,140)	​	​	191	​	​	516	​
Cash, cash equivalents and restricted cash at beginning of period	​	​	3,489		​	3,298	​	​	2,782	​
Cash, cash equivalents and restricted cash at end of period	​	$	2,349		$	3,489	​	$	3,298	​
​	​	​	​	​	​	​	​	​	​	​
Reconciliation of cash, cash equivalents and restricted cash:	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,243	​	$	3,397	​	$	3,259	​
Restricted cash included in Other current assets	​	​	2	​	​	1	​	​	1	​
Restricted cash included in Other non-current assets	​	​	104	​	​	91	​	​	38	​
Total cash, cash equivalents and restricted cash	​	$	2,349	​	$	3,489	​	$	3,298	​

(1)	Acquisitions, net for 2019 is comprised of $117 cash and cash equivalents acquired, $21 restricted cash acquired, net of $17 cash paid in the Newmont Goldcorp transaction and $6 of restricted cash acquired in the formation of Nevada Gold Mines. For 2018, Acquisitions, net is comprised of mineral interest acquisitions, primarily Galore Creek.

​

The accompanying notes are an integral part of these consolidated financial statements.

​

NEWMONT CORPORATION

​

CONSOLIDATED BALANCE SHEETS

​	​	​	​	​	​	​	​
​	​	At December 31,		​	At December 31,		​
​		2019			2018
​	​	(in millions)					​
ASSETS	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,243	​	$	3,397	​
Trade receivables (Note 6)	​	​	373	​	​	254	​
Investments (Note 20)	​	​	237	​	​	48	​
Inventories (Note 21)	​	​	1,014	​	​	630	​
Stockpiles and ore on leach pads (Note 22)	​	​	812	​	​	697	​
Other current assets	​	​	570	​	​	251	​
Current assets held for sale (Note 5)	​	​	1,023	​	​	—	​
Current assets	​	​	6,272	​	​	5,277	​
Property, plant and mine development, net (Note 23)	​	​	25,276	​	​	12,258	​
Investments (Note 20)	​	​	3,199	​	​	271	​
Stockpiles and ore on leach pads (Note 22)	​	​	1,484	​	​	1,866	​
Deferred income tax assets (Note 11)	​	​	549	​	​	401	​
Goodwill (Note 24)	​	​	2,674	​	​	58	​
Other non-current assets	​	​	520	​	​	584	​
Total assets	​	$	39,974	​	$	20,715	​
​	​	​	​	​	​	​	​
LIABILITIES	​	​	​	​	​	​	​
Accounts payable	​	$	539	​	$	303	​
Employee-related benefits (Note 16)	​	​	361	​	​	305	​
Income and mining taxes payable	​	​	162	​	​	71	​
Lease and other financing obligations (Note 26)	​	​	100	​	​	27	​
Debt (Note 25)	​	​	—	​	​	626	​
Other current liabilities (Note 27)	​	​	880	​	​	455	​
Current liabilities held for sale (Note 5)	​	​	343	​	​	—	​
Current liabilities	​	​	2,385	​	​	1,787	​
Debt (Note 25)	​	​	6,138	​	​	3,418	​
Lease and other financing obligations (Note 26)	​	​	596	​	​	190	​
Reclamation and remediation liabilities (Note 7)	​	​	3,464	​	​	2,481	​
Deferred income tax liabilities (Note 11)	​	​	2,407	​	​	612	​
Employee-related benefits (Note 16)	​	​	448	​	​	401	​
Silver streaming agreement (Note 6)	​	​	1,058	​	​	—	​
Other non-current liabilities (Note 27)	​	​	1,061	​	​	314	​
Total liabilities	​	​	17,557	​	​	9,203	​
​	​	​	​	​	​	​	​
Contingently redeemable noncontrolling interest (Note 14)	​	​	47	​	​	47	​
​	​	​	​	​	​	​	​
EQUITY	​	​	​	​	​	​	​
Common stock - $1.60 par value;	​	​	1,298	​	​	855	​
Authorized - 1,280 million and 750 million shares, respectively	​	​	​	​	​	​	​
Outstanding shares - 808 million and 533 million shares, respectively	​	​	​	​	​	​	​
Treasury shares - 3 million and 2 million shares, respectively	​	​	(120)	​	​	(70)	​
Additional paid-in capital	​	​	18,216	​	​	9,618	​
Accumulated other comprehensive income (loss) (Note 28)	​	​	(265)	​	​	(284)	​
Retained earnings (accumulated deficit)	​	​	2,291	​	​	383	​
Newmont stockholders' equity	​	​	21,420	​	​	10,502	​
Noncontrolling interests	​	​	950	​	​	963	​
Total equity	​	​	22,370	​	​	11,465	​
Total liabilities and equity	​	$	39,974	​	$	20,715	​

​

The accompanying notes are an integral part of these consolidated financial statements.

​

NEWMONT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Accumulated		​	​	​	​	​	​	​	​	​	​	Contingently		​
​	​	​	​	​	​	​	​	​	​	​	​	Additional		​	Other		​	​	​	​	​	​	​	​	​	​	Redeemable		​
​	​	Common Stock				​	Treasury Stock				​	Paid-In		​	Comprehensive		​	Retained		​	Noncontrolling		​	Total		​	Noncontrolling		​
​		Shares		Amount			Shares		Amount		​	Capital			Income (Loss)			Earnings			Interests			Equity		​	Interest
​	​	(in millions)																								​	​	​	​
Balance at December 31, 2016	​	531	​	$	850	​	—	​	$	(16)	​	$	9,505	​	$	(334)	​	$	658	​	$	1,122	​	$	11,785	​	$	—	​
Net income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	(114)	​	​	5	​	​	(109)	​	​	—	​
Other comprehensive income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	42	​	​	—	​	​	—	​	​	42	​	​	​	​
Dividends declared (1)		—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	(134)	​	​	—	​	​	(134)	​	​	—
Distributions declared to noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(170)	​	​	(170)	​	​	—	​
Cash calls requested from noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	97	​	​	97	​	​	—	​
Acquisition of noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	22	​	​	—	​	​	—	​	​	(70)	​	​	(48)	​	​	—	​
Withholding of employee taxes related to stock-based compensation	​	—	​	​	—	​	(1)	​	​	(14)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(14)	​	​	—	​
Stock based awards and related share issuances	​	3	​	​	5	​	—	​	​	—	​	​	65	​	​	—	​	​	—	​	​	—	​	​	70	​	​	—	​
Balance at December 31, 2017	​	534	​	$	855	​	(1)	​	$	(30)	​	$	9,592	​	$	(292)	​	$	410	​	$	984	​	$	11,519	​	$	—	​
Cumulative-effect adjustment of adopting ASU No. 2016-01	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	115	​	​	(115)	​	​	—	​	​	—	​	​	—	​
Cumulative-effect adjustment of adopting ASU No. 2018-02	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	(96)	​	​	96	​	​	—	​	​	—	​	​	—	​
Net income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	341	​	​	40	​	​	381	​	​	(1)	​
Other comprehensive income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	(11)	​	​	—	​	​	—	​	​	(11)	​	​	—	​
Sale of noncontrolling interest	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	48	​
Dividends declared (1)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	(301)	​	​	—	​	​	(301)	​	​	—	​
Distributions declared to noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(160)	​	​	(160)	​	​	—	​
Cash calls requested from noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	99	​	​	99	​	​	—	​
Repurchase and retirement of common stock	​	(2)	​	​	(4)	​	—	​	​	—	​	​	(46)	​	​	—	​	​	(48)	​	​	—	​	​	(98)	​	​	—	​
Withholding of employee taxes related to stock-based compensation	​	—	​	​	—	​	(1)	​	​	(40)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(40)	​	​	—	​
Stock based awards and related share issuances	​	3	​	​	4	​	—	​	​	—	​	​	72	​	​	—	​	​	—	​	​	—	​	​	76	​	​	—	​
Balance at December 31, 2018	​	535	​	$	855	​	(2)	​	$	(70)	​	$	9,618	​	$	(284)	​	$	383	​	$	963	​	$	11,465	​	$	47	​
Cumulative-effect adjustment of adopting ASU No. 2016-02	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	(9)	​	​	—	​	​	(9)	​	​	—	​
Net income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	2,805	​	​	79	​	​	2,884	​	​	—	​
Other comprehensive income (loss)	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	19	​	​	—	​	​	—	​	​	19	​	​	—	​
Shares issued and other non-cash consideration for Goldcorp acquisition (2)	​	285	​	​	457	​	—	​	​	—	​	​	8,972	​	​	—	​	​	—	​	​	—	​	​	9,429	​	​	—	​
Dividends declared (1)	​	—	​	​	—	​	—	​	​	—	​	​	(205)	​	​	—	​	​	(690)	​	​	—	​	​	(895)	​	​	—	​
Distributions declared to noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(187)	​	​	(187)	​	​	—	​
Cash calls requested from noncontrolling interests	​	—	​	​	—	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	95	​	​	95	​	​	—	​
Repurchase and retirement of common stock	​	(12)	​	​	(19)	​	—	​	​	—	​	​	(265)	​	​	—	​	​	(195)	​	​	—	​	​	(479)	​	​	—	​
Cancellation of shares due to the expiration of certain exchange rights	​	—	​	​	—	​	—	​	​	—	​	​	4	​	​	—	​	​	(3)	​	​	—	​	​	1	​	​	—	​
Withholding of employee taxes related to stock-based compensation	​	—	​	​	—	​	(1)	​	​	(50)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(50)	​	​	—	​
Stock-based awards and related share issuances	​	3	​	​	5	​	—	​	​	—	​	​	92	​	​	—	​	​	—	​	​	—	​	​	97	​	​	—	​
Balance at December 31, 2019	​	811	​	$	1,298	​	(3)	​	$	(120)	​	$	18,216	​	$	(265)	​	$	2,291	​	$	950	​	$	22,370	​	$	47	​

(1)	Cash dividends declared per common share was $0.56, $0.56, and $0.25 for 2019, 2018, and 2017, respectively. Special dividends declared per common share was $0.88, $-, and $- for 2019, 2018, and 2017, respectively.

(2)	The shares issued and other non-cash consideration for Goldcorp acquisition includes the fair value of equity classified stock-based compensation awards allocated to purchase consideration of $6.

The accompanying notes are an integral part of these consolidated financial statements.

​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 1 THE COMPANY

​

Newmont Corporation, formerly Newmont Goldcorp Corporation and Newmont Mining Corporation, and its affiliates and subsidiaries (collectively, “Newmont,” “we,” “us” or the “Company”) predominantly operate in the mining industry, focused on the production of and exploration for gold and copper. The Company has significant operations and/or assets in the United States (“U.S.”), Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia and Ghana. The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold, copper, silver, lead and zinc. The prices of gold, copper, silver, lead and zinc are affected by numerous factors beyond the Company’s control.

References to “C$” refer to Canadian currency.

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, but also for silver, lead, zinc 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; Investments; Deferred income tax assets and Goodwill 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.

In addition to changes in commodity prices, other factors such as changes in mine plans, increases in costs, geotechnical failures, changes in social, political, environmental or regulatory requirements and management’s decision to reprioritize or abandon a development project can adversely affect the Company’s ability to recover its investment in certain assets and result in future impairment charges.

Minera Yanacocha S.R.L. (“Yanacocha”) includes the mining operations at Yanacocha and the Conga project in Peru. Under the current social and political environment, the Company does not anticipate being able to develop Conga for five or more years. As a result of the uncertainty surrounding the Conga project, the Company has allocated its development capital to other projects. Should the Company be unable to develop the Conga project, the Company may have to consider other alternatives for the project, which may result in a future impairment charge. The total assets at Conga as of December 31, 2019 and 2018 were $1,558 and $1,621 respectively.

​

Use of Estimates

The Company’s Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental remediation, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of long-lived assets and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; provisional amounts related to income tax effects of newly enacted tax laws; provisional amounts related to uncertain tax positions; valuation of assets acquired and liabilities assumed in a business combination; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable securities and derivative instruments. The Company bases its estimates on historical experience and

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from those amounts estimated in these financial statements.

​

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Newmont Corporation, more-than-50%-owned subsidiaries that it controls and variable interest entities where it is the primary beneficiary. The Company also includes its pro rata share of assets, liabilities and operations for unincorporated joint ventures or for entities in which it has an undivided interest. All significant intercompany balances and transactions have been eliminated. Equity method accounting is applied for certain entities where the Company does not have control, but does have significant influence over the activities that most significantly impact the entities’ operations and financial performance_._ The functional currency for the majority of the Company’s operations is the U.S. dollar.

The Company follows the Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”).

Business Combinations

The Company recognizes and measures the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date, while transaction and integration costs related to business combinations are expensed as incurred. Any excess of the purchase consideration when compared to the fair value of the net tangible and intangible assets acquired, if any, is recorded as goodwill. For material acquisitions, the Company engages independent appraisers to assist with the determination of the fair value of assets acquired, liabilities assumed, noncontrolling interest, if any, and goodwill, based on recognized business valuation methodologies. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and noncontrolling interest, if any, in a business combination. The income valuation method represents the present value of future cash flows over the life of the asset using: (i) discrete financial forecasts, which rely on management’s estimates of reserve quantities and exploration potential, costs to produce and develop reserves, revenues, and operating expenses; (ii) long-term growth rates; (iii) appropriate discount rates; and (iv) expected future capital requirements (“income valuation method”). The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalized for any differences between the assets (“market valuation method”). The cost valuation method is based on the replacement cost of a comparable asset at the time of the acquisition adjusted for depreciation and economic and functional obsolescence of the asset (“cost valuation method”). The fair value of property, plant and mine development is estimated to include the fair value of asset retirement costs of related long-lived tangible assets. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition date, and not later than one year from the acquisition date, the Company will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition. Any adjustment that arises from information obtained that did not exist as of the date of the acquisition will be recorded in the period the adjustments arises.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are held in overnight bank deposits or are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current or non-current assets. Restricted cash is held primarily for the purpose of settling asset retirement obligations.

​

Stockpiles, Ore on Leach Pads and Inventories

As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories to net realizable value are reported as a component of Costs applicable to sales and Depreciation and amortization. The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months and utilize the short-term metal price assumption in estimating net realizable value. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as non-current and utilize the long-term metal price assumption in estimating net realizable value. The major classifications are as follows:

Stockpiles

Stockpiles represent ore that has been extracted from the mine and is available for further processing. Mine sequencing may result in mining material at a faster rate than can be processed. The Company generally processes the highest ore grade material first to maximize metal production; however, a blend of metal stockpiles may be processed to balance hardness and/or metallurgy in order to maximize throughput and recovery. Processing of lower grade stockpiled ore may continue after mining operations are completed. Sulfide copper ores are subject to oxidation over time which can reduce expected future recoveries. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are added to stockpiles based on current mining costs incurred including applicable overhead and depreciation and amortization relating to mining operations and removed at each stockpile’s average cost per recoverable unit as material is processed. Stockpiles are recorded at the lower of average cost or net realizable value, and carrying values are evaluated at least quarterly. Net realizable value represents the estimated future sales price based on short-term and long-term metals price assumptions, less estimated costs to complete production and bring the product to sale.

Ore on Leach Pads

Ore on leach pads represent ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the gold or silver or extract the copper.

Costs are added to ore on leach pads based on current mining costs, including applicable depreciation and amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold or silver or pound of copper on the leach pad.

Estimates of recoverable ore on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete.

Although the quantities of recoverable metal placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company’s operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of metal on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

In-process Inventory

In-process inventories represent material that is currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, flotation, leach and carbon-in-leach. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective processing plants. In-process inventories are valued at the lower of the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads, plus the in-process conversion costs, including

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

applicable amortization relating to the process facilities incurred to that point in the process or net realizable value.

Precious Metals Inventory

Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company’s mining and processing activities are valued at the lower of the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs or net realizable value.

Concentrate Inventory

Concentrate inventories represent gold, silver, lead, zinc and copper concentrate available for shipment or in transit for further processing when the sales process has not been completed. The Company values concentrate inventory at average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on metal in the concentrate and are valued at the lower of average cost or net realizable value.

Materials and Supplies

Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight.

​

Property, Plant and Mine Development

Facilities and Equipment

Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. Facilities and equipment acquired as a part of a finance lease, build-to-suit or other financing arrangement are capitalized and recorded based on the contractual lease terms. The facilities and equipment are depreciated using the straight-line method at rates sufficient to depreciate such capitalized costs over the estimated productive lives of such facilities. These estimated productive lives do not exceed the related estimated mine lives, which are based on proven and probable reserves.

Mine Development

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves.

Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales.

The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory.

Mine development costs are amortized using the units-of-production method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.

Underground development costs are capitalized as incurred. Costs incurred before mineralization is classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs that meet the definition of an asset begins once mineralization is classified as proven and probable reserves.

Mineral Interests

Mineral interests include acquired interests in production, development and exploration stage properties. Mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination. Mineral interests in the development and exploration stage are not amortized until the underlying property is converted to the production stage, at which point the mineral interests are amortized over the estimated recoverable proven and probable reserves.

The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves and are amortized using the units-of-production method based on the estimated ounces or pounds in proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material within pits; mineralized material with insufficient drill spacing to qualify as proven and probable reserves; and mineralized material in close proximity to proven and probable reserves; (ii) around-mine exploration potential not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of current mineralized material and is comprised mainly of material outside of the immediate mine area; (iv) greenfield exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company’s mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material.

Goodwill

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in a business acquisition. Goodwill is allocated to reporting units and tested for impairment annually and when events or changes in circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The fair value of a reporting unit is determined using both the income and market valuation methods. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company recognizes its pro rata share of Goodwill and any subsequent goodwill impairment losses recorded by unincorporated joint ventures in which it has an undivided interest.

Impairment of Long-lived Assets

The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment loss is measured and recorded based on the estimated fair value

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

of the long-lived assets being tested for impairment, and their carrying amounts. Fair value is typically determined through the use of an income approach utilizing estimates of discounted pre-tax future cash flows or a market approach utilizing recent transaction activity for comparable properties. These approaches are considered Level 3 fair value measurements. Occasionally, such as when an asset is held for sale, market prices are used. The Company believes its estimates and models used to determine fair value are similar to what a market participant would use.

The estimated undiscounted cash flows used to assess recoverability of long-lived assets and to measure the fair value of the Company’s mining operations are derived from current business plans, which are developed using short-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. In addition to short- and long-term metal price assumptions, other assumptions include estimates of commodity-based and other input costs; proven and probable mineral reserves estimates, including the timing and cost to develop and produce the reserves; value beyond proven and probable estimates; estimated future closure costs; and the use of appropriate discount rates.

In estimating undiscounted cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of undiscounted cash flows from other asset groups. The Company’s estimates of undiscounted cash flows are based on numerous assumptions and it is possible that actual cash flows may differ significantly from estimates, as actual produced reserves, metal prices, commodity-based and other costs, and closure costs are each subject to significant risks and uncertainties.

Investments

Management classifies investments at the acquisition date and re-evaluates the classification at each balance sheet date and when events or changes in circumstances indicate that there is a change in the Company’s ability to exercise significant influence. The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. The ability to exercise significant influence is typically presumed when the Company possesses 20% or more of the voting interests in the investee. Under the equity method of accounting, the Company increases its investment for contributions made and records its proportionate share of net earnings, declared dividends and partnership distributions based on the most recently available financial statements of the investee. In addition, the Company evaluates its equity method investments for potential impairment whenever events or changes in circumstances indicate that there is an other-than-temporary decline in the value of the investment. Equity method investments are included in Investments.

Additionally, the Company has certain marketable equity and debt securities. Marketable equity securities are measured at fair value with any changes in fair value recorded in Other income, net. The Company accounts for its restricted marketable debt securities as available-for-sale securities. Unrealized gains and losses on available-for-sale investments, net of taxes, are reported as a component of Accumulated other comprehensive income (loss) in Total equity, unless such loss is deemed to be other-than-temporary. Declines in fair value that are deemed to be other-than-temporary are charged to Other income, net.

​

Debt

The Company carries its Senior Notes at amortized cost.

Debt issuance costs and debt premiums and discounts, which are included in Debt, and unrealized gains or losses related to cash flow hedges using treasury rate lock contracts and forward starting swap contracts, which are included in Accumulated other comprehensive income (loss), are amortized using the effective interest method over the terms of the respective Senior Notes as a component of Interest expense, net within the Consolidated Statements of Operations.

When repurchasing its debt, the Company records the resulting gain or loss as well as the accelerated portion of related debt issuance costs, premiums and discounts, and any unrealized gains or losses from the associated treasury rate lock contracts and/or associated forward starting swap contracts, included in Accumulated other comprehensive income (loss), in Other Income, net.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Leases

The Company determines if a contractual arrangement represents or contains a lease at inception. Operating leases are included in Other non-current assets and Other current and non-current liabilities in the Consolidated Balance Sheets. Finance leases are included in Property, plant and mine development, net and current and non-current Lease and other financing obligations in the Consolidated Balance Sheets.

Operating and finance lease right-of-use ("ROU") assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. Leases acquired in a business combination are also measured based on the present value of the remaining leases payments, as if the acquired lease were a new lease at the acquisition date. When the rate implicit to the lease cannot be readily determined, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is derived from information available at the lease commencement date and represents the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. Operating lease ROU assets also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

The Company has lease arrangements that include both lease and non-lease components. The Company accounts for each separate lease component and its associated non-lease components as a single lease component for the majority of its asset classes. Additionally, for certain lease arrangements that involve leases of similar assets, the Company applies a portfolio approach to effectively account for the underlying ROU assets and lease liabilities.

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 classified outside of permanent equity (referred to as temporary equity).

Treasury Stock

The Company records repurchases of common shares as Treasury stock at cost and records any subsequent retirements of treasury shares at cost. 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 using settlement-date accounting. 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.

​

Revenue Recognition

​

Newmont generates revenue by selling gold, silver, lead, zinc and copper produced from its mining operations. Refer to Note 5 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.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

A portion of gold sold from certain sites is sold in the form of concentrate which includes copper, silver, lead and zinc. The Company’s Sales also come from the sale of silver, lead, zinc and copper. Sales from these metals are generally in the form of concentrate, which is sold to smelters for further treatment and refining.

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 is applied. 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 is applied. Revenues from by-product sales, which are immaterial, are credited to Costs applicable to sales as a by-product credit. Silver, lead and zinc are produced as co-products at Peñasquito. Copper is produced as a co-product at Boddington and was produced as a co-product at Phoenix until the formation of Nevada Gold Mines LLC (“NGM”) on July 1, 2019. Silver, lead, zinc and/or copper are produced as a by-product at all other Newmont sites.

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 obtains 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.

Sales from Concentrate Production

The Company recognizes revenue for gold, silver, lead, zinc 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 metal 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.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Income and Mining Taxes

The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The financial statement effects of changes in tax law are recorded as discrete items in the period enacted as part of income tax expense or benefit from continuing operations, regardless of the category of income or loss to which the deferred taxes relate. The Company determines if the assessment of a particular income tax effect is “complete.” Those effects for which the accounting is determined to be complete are reported in the enactment period financial statements.

​

Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes. As such, taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies.

Newmont’s operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. Newmont and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the tax liabilities. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax benefit (expense). In certain jurisdictions, Newmont must pay a portion of the disputed amount to the local government in order to formally appeal the assessment. Such payment is recorded as a receivable if Newmont believes the amount is collectible.

Valuation of Deferred Tax Assets

The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.

Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified. The Company looks to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date, recent pretax losses and/or expectations of future pretax losses. Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to:

	●	Earnings history;

	●	Projected future financial and taxable income based upon existing reserves and long-term estimates of commodity prices;

	●	The duration of statutory carry forward periods;

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

	●	Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference;

	●	Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and

	●	The sensitivity of future forecasted results to commodity prices and other factors.

Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. The Company utilizes a rolling twelve quarters of pre-tax income or loss as a measure of its cumulative results in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. The Company also considers all other available positive and negative evidence in its analysis.

Reclamation and Remediation Costs

Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Changes in reclamation estimates at non-operating mines are reflected in earnings in the period an estimate is revised. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for asset retirement obligations.

Remediation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates may include ongoing care, maintenance and monitoring costs. Changes in remediation estimates are reflected in earnings in the period an estimate is revised. Water treatment costs included in environmental remediation obligations are discounted to their present value as cash flows are readily estimable. All other costs of future expenditures for environmental remediation obligations are not discounted to their present value.

Foreign Currency

The functional currency for the majority of the Company’s operations is the U.S. dollar. Transaction gains and losses related to monetary assets and liabilities where the functional currency is the U.S. dollar are remeasured at current exchange rates and the resulting adjustments are included in Other income, net. The financial statements of our foreign entities with functional currencies other than the U.S. dollar are translated into U.S. dollars with the resulting adjustments charged or credited directly to Accumulated other comprehensive income (loss) in total equity. All assets and liabilities are translated into the U.S. dollar using exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the weighted average exchange rates for the period. The gains or losses on foreign currency rates on cash holdings in foreign currencies are included in Effect of exchange rate changes on cash, cash equivalents and restricted cash in the Company’s Consolidated Statements of Cash Flows.

Cash Flow Hedges

The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the Consolidated Balance Sheets. The changes in fair value of these hedges are deferred in Accumulated other comprehensive income (loss). Amounts deferred in Accumulated other comprehensive income (loss) are reclassified to income when the hedged transaction has occurred in the same income statement line where the earnings effect of the hedged item is presented. Cash transactions related to the Company’s derivative contracts accounted for as hedges are classified in the same category as the item being hedged in the Consolidated Statements of Cash Flows.

When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the related amount in Accumulated other comprehensive income (loss) at the settlement date is deferred and reclassified to

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

earnings, when the originally designated hedged transaction impacts earnings, unless the underlying hedge transaction becomes probable of not occurring, at which time related amounts in Accumulated other comprehensive income (loss) are reclassified to earnings immediately.

Newmont assesses the effectiveness of the derivative contracts using a regression analysis, both retrospectively and prospectively, to determine whether the hedging instruments have been highly effective in offsetting changes in the fair value of the hedged items. The Company also assesses whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive income (loss) until the hedged item affects earnings. For option contracts, the Company excludes the time value from the measurement of effectiveness.

Stock-Based Compensation

The Company records stock-based compensation awards exchanged for employee services at fair value on the date of the grant and expenses the awards in the Consolidated Statements of Operations over the requisite employee service period. The fair value of stock options is determined using the Black-Scholes valuation model. The fair value of restricted stock units (“RSUs”) are based on the Newmont stock price on the date of grant. The fair value of performance leverage stock units (“PSUs”) is determined using a Monte Carlo simulation model. Stock-based compensation expense related to all awards, including awards with a market or performance condition that cliff vest, is generally recognized ratably over the requisite service period of the award on a straight-line basis. The Company recognizes forfeitures as they occur. The Company's estimates may be impacted by certain variables including, but not limited to, stock price volatility, employee retirement eligibility dates, the Company's performance and related tax impacts.

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Net Income (Loss) per Common Share

Basic and diluted income per share are presented for Net income (loss) attributable to Newmont stockholders. Basic income per common share is computed by dividing income available to Newmont common stockholders by the weighted average number of common shares outstanding during the period. Diluted income 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 excluded from the calculation of diluted weighted average common shares outstanding if their effect would be anti-dilutive based on the treasury stock method or due to a net loss from continuing operations.

Discontinued Operations

The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results when the business is classified as held for sale, in accordance with ASC 360, Property, Plant and Equipment and ASC 205-20, Presentation of Financial Statements - Discontinued Operations. Under ASC 360, assets may be classified as held for sale even though discontinued operations classification is not met. Equity method investments, which are specifically scoped out of ASC 360, can only be classified as held for sale if discontinued operations classification is also achieved. The results of discontinued operations are reported in Net income (loss) from discontinued operations, net of tax in the accompanying Consolidated Statements of Operations for current and prior periods, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.

Comprehensive Income (Loss)

In addition to Net income (loss), Comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable debt securities classified as available-for-sale, except those resulting from investments by and distributions to owners.

Reclassifications

Certain amounts in prior years have been reclassified to conform to the 2019 presentation.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Recently Adopted Accounting Pronouncements

Leases

In February 2016, Accounting Standards Update (“ASU”) No. 2016-02 was issued which, together with subsequent amendments, is included in ASC 842, Leases. The standard was issued to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet for all leases with an initial term greater than one year. Certain qualitative and quantitative disclosures are also required.

The Company adopted this standard as of January 1, 2019 using the modified retrospective approach. Upon adoption, the Company recognized a cumulative-effect adjustment of $9 to the opening balance of retained earnings. The comparative information has not been adjusted and continues to be reported under the accounting standard in effect for those periods.

The new standard offers a number of optional practical expedients of which the Company elected the following:

Transition elections: The Company elected the land easements practical expedient whereby existing land easements were not reassessed under the new standard.

Ongoing accounting policy elections: The Company elected the short-term lease recognition exemption whereby ROU assets and lease liabilities are not recognized for leasing arrangements with terms less than one year. The Company elected the practical expedient to not separate lease and non-lease components for the majority of its underlying asset classes.

Based on contracts outstanding at January 1, 2019, the adoption of the new standard resulted in the recognition of additional operating lease ROU assets and lease liabilities of $46 and $47, respectively, and finance lease ROU assets and lease liabilities of $85 and $93, respectively. Additionally, the Company reclassified $19 from Other non-current assets, $3 from Other current liabilities and $28 from Other non-current liabilities into Property, plant and mine development_, net;_ current Lease and other financing obligations and non-current Lease and other financing obligations, respectively. Adoption of this standard did not have a material impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. For required qualitative and quantitative disclosures related to leasing arrangements beginning in the period of adoption, see Note 26.

Fair Value Disclosure Requirements

​

In August 2018, ASU No. 2018-13 was issued to modify and enhance the disclosure requirements for fair value measurements. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. The Company early adopted this guidance as of December 31, 2019. There were no material disclosure impacts as a result of the adoption.

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Defined Benefit Plan Disclosure Requirements

​

In August 2018, ASU No. 2018-14 was issued to modify and enhance the required disclosures for defined benefit plans. This update is effective in fiscal years, including interim periods, ending after December 15, 2020, and early adoption is permitted. The Company early adopted the new guidance as of December 31, 2019, and has enhanced and modified certain required disclosures, which are not significant.

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Recently Issued Accounting Pronouncements

Current Expected Credit Loss

In June 2016, ASU No. 2016-13 was issued which, together with subsequent amendments, changes how entities will record credit losses from an “incurred loss” approach to an “expected loss” approach. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. The Company anticipates adopting the new

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

guidance as of January 1, 2020, using a modified retrospective approach. Historical financial statements will not be updated, however the new standard will be applied to all outstanding transactions. The total impact of adoption is anticipated to be immaterial, and is primarily related to new reserves being recognized on a loan to an equity method investee, which will be recorded to retained earnings. A discounted cash flow model was utilized to estimate the reserve amount. Inputs included published credit default spreads for the parent and other entities similar in nature to the equity investment.

Capitalization of Certain Cloud Computing Implementation Costs

​

In August 2018, ASU No. 2018-15 was issued which allows for the capitalization for certain implementation costs incurred in a cloud computing arrangement that is considered a service contract. This update is effective in fiscal years, including interim periods, beginning after December 15, 2019, and early adoption is permitted. The Company anticipates adopting the new guidance as of January 1, 2020, and does not expect the adoption to have a material impact on the Consolidated Financial Statements or disclosures.

Accounting for Income Taxes

​

In December 2019, ASU No. 2019-12 was issued to simplify and enhance accounting for income taxes. This update is effective in fiscal years, including interim periods, beginning after December 15, 2020, and early adoption is permitted. The Company is still completing its assessment of the impact and anticipated adoption date of this guidance.

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NOTE 3 BUSINESS ACQUISITION

On January 14, 2019, the Company entered into a definitive agreement (as amended by the first amendment to the arrangement agreement, dated as of February 19, 2019, the “Arrangement Agreement”) to acquire all outstanding shares of Goldcorp, Inc. (“Goldcorp”), an Ontario corporation. On April 18, 2019 (“acquisition date”), pursuant to the Arrangement Agreement, Newmont completed the business acquisition of Goldcorp, in which Newmont was the acquirer. The acquisition of Goldcorp increased the Company’s gold and other metal reserves and expanded the operating jurisdictions.

The acquisition date fair value of the consideration transferred consisted of the following:

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​	​	​	​
Newmont stock issued (285 million shares at $33.04 per share)	​	$	9,423
Cash paid to Goldcorp shareholders	​	​	17
Other non-cash consideration	​	​	16
Total consideration	​	$	9,456

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The Company retained an independent appraiser to determine the fair value of assets acquired and liabilities assumed. In accordance with the acquisition method of accounting, the purchase price of Goldcorp has been allocated to the acquired assets and assumed liabilities based on their estimated acquisition date fair values. The fair value estimates were based on income, market and cost valuation methods. The excess of the total consideration over the estimated fair value of the amounts initially assigned to the identifiable assets acquired and liabilities assumed has been recorded as goodwill, which is not deductible for income tax purposes. The goodwill balance is mainly attributable to: (i) the acquisition of existing operating mines with access to an assembled workforce that cannot be duplicated at the same costs by new entrants; (ii) operating synergies anticipated from the integration of the operations of Newmont and Goldcorp; (iii) the application of Newmont’s Full Potential program and potential strategic and financial benefits that include the increase in reserve base and opportunities to identify additional mineralization through exploration activities; and (iv) the financial flexibility to execute capital priorities.

As of December 31, 2019, the Company had not yet fully completed the analysis to assign fair values to all assets acquired and liabilities assumed, and therefore the purchase price allocation for Goldcorp is preliminary. At December 31, 2019, remaining items to finalize include the fair value of materials and supplies inventories, property plant and mine development, investments, reclamation and remediation liabilities, unrecognized tax benefits, and deferred income tax assets and liabilities. The preliminary purchase price allocation will be subject to further refinement as the Company continues to implement Newmont accounting policies and refine its estimates and assumptions based on information available at the acquisition date. These refinements may result in material changes to

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

the estimated fair value of assets acquired and liabilities assumed. The purchase price allocation adjustments can be made throughout the end of Newmont’s measurement period, which is not to exceed one year from the acquisition date.

The following table summarizes the preliminary purchase price allocation for the Goldcorp transaction as of December 31, 2019:

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​	​	​	​
Assets:	​	​	​
Cash and cash equivalents	​	$	117
Trade receivables	​	​	95
Investments	​	​	169
Equity method investments (1)	​	​	2,796
Inventories	​	​	534
Stockpiles and ore on leach pads	​	​	57
Property, plant and mine development (2)	​	​	11,054
Goodwill (3)	​	​	2,537
Deferred income tax assets (4)	​	​	205
Other assets	​	​	510
Total assets	​	​	18,074
​	​	​	​
Liabilities:	​	​	​
Debt (5)	​	​	3,304
Accounts payable	​	​	240
Employee-related benefits	​	​	182
Income and mining taxes payable	​	​	22
Lease and other financing obligations	​	​	423
Reclamation and remediation liabilities (6)	​	​	882
Deferred income tax liabilities (4)	​	​	1,466
Silver streaming agreement (7)	​	​	1,165
Other liabilities (8)	​	​	934
Total liabilities	​	​	8,618
​	​	​	​
Net assets acquired	​	$	9,456

(1)

The preliminary fair value of the equity method investments was determined by applying the income valuation method. The income valuation method relies on a discounted cash flow model and projected financial results. Discount rates for the discounted cash flow models are based on capital structures for similar market participants and included various risk premiums that account for risks associated with the specific investments.

(2)	The preliminary fair value of property, plant and mine development is based on applying the income and cost valuation methods and includes a provision for the estimated fair value of asset retirement obligations related to the long-lived tangible assets.

(3)	Preliminary goodwill attributable to the North America and South America reportable segments is $2,095 and $442, respectively.

(4)

Deferred income tax assets and liabilities represent the future tax benefit or future tax expense associated with the differences between the preliminary fair value allocated to assets (excluding goodwill) and liabilities and the historical carryover tax basis of these assets and liabilities. No deferred tax liability is recognized for the basis difference inherent in the preliminary fair value allocated to goodwill.

(5)	The preliminary fair value of the Goldcorp senior notes is measured using a market approach, based on quoted prices for the acquired debt; $1,250 of borrowings under the term loan and revolving credit agreements approximate fair value.

(6)

The preliminary fair value of reclamation and remediation liabilities is based on the expected amounts and timing of cash flows for closure activities and discounted to present value using a credit-adjusted risk-free rate as of the acquisition date. Key assumptions include the costs and timing of key closure activities based on the life of mine plans, including estimates and timing of monitoring and water management costs (if applicable) after the completion of initial closure activities.

(7)	The preliminary fair value of the acquired silver streaming intangible liability is valued by using the income valuation method. Key assumptions in the income valuation method include long-term silver prices, level of silver production over the life of mine and discount rates.

(8)	Other liabilities includes the preliminary balance of $458 related to unrecognized tax benefits, interest and penalties. Based on this preliminary amount, the acquisition of Goldcorp increased Newmont’s unrecognized tax benefits, interest and penalties, which were $17 at December 31, 2018.

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NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Sales and Net income (loss) attributable to Newmont stockholders in the Consolidated Statement of Operations includes Goldcorp revenue of $2,074 and Goldcorp net income (loss) of $128 from the acquisition date to the year ended December 31, 2019.

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Pro Forma Financial Information (unaudited)

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The following unaudited pro forma financial information presents consolidated results assuming the Newmont Goldcorp transaction occurred on January 1, 2018.

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​	​	​	​	​	​	​
​	Years Ended December 31,					​
​	2019		​	2018		​
Sales	$	10,468	​	$	10,314	​
Net income (loss) attributable to Newmont stockholders(1)	​	2,666	​	​	(2,898)	​

(1)	Included in Net income (loss) attributable to Newmont stockholders is $260 of Goldcorp transaction and integration costs for the year ended December 31, 2019.

NOTE 4 NEVADA GOLD MINES JOINT VENTURE

On March 10, 2019, the Company entered into an implementation agreement with Barrick Gold Corporation (“Barrick”) to establish a joint venture (“Nevada JV Agreement”). On July 1, 2019 (the “effective date”), Newmont and Barrick consummated the Nevada JV Agreement and established NGM, which combined certain mining operations and assets located in Nevada, historically included in the Company’s North America reportable segment, and certain of Barrick’s Nevada mining operations and assets. The formation of NGM diversifies the Company’s footprint in Nevada and allows the Company to pursue additional efficiencies through integrated mine planning and processing. In connection with the closing of the Nevada JV Agreement, Newmont and Barrick entered into an Amended and Restated Limited Liability Company Agreement of NGM, which is the primary operating document governing NGM. Pursuant to the terms of the Nevada JV Agreement, Newmont and Barrick hold economic interests in the joint venture equal to 38.5% and 61.5%, respectively. Barrick acts as the operator of NGM with overall management responsibility and is subject to the supervision and direction of NGM’s Board of Managers, which is comprised of two managers appointed by Newmont and three managers appointed by Barrick. Newmont and Barrick have an equal number of representatives on NGM’s technical, exploration and finance advisory committees.

​

As of the effective date, the Company contributed its existing Nevada mining operations, which included Carlin, Phoenix, Twin Creeks and Long Canyon, to NGM in exchange for a 38.5% interest in NGM. The interest received in NGM was accounted for at fair value, and accordingly, the Company recognized a gain of $2,390 during 2019 as Gain on formation of Nevada Gold Mines. The gain represents the difference between the fair value of the Company’s interest in NGM and the carrying value of the Nevada mining operations contributed to NGM.

​

​	​	​	​
Fair value of 38.5% interest received in NGM	​	$	7,313
Less: carrying value of Nevada mining operations contributed	​	​	(4,923)
Gain on formation of Nevada Gold Mines	​	$	2,390

​

The Company accounts for its interest in NGM using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rata share of the assets, liabilities and operations of NGM. NGM retained an independent appraiser to determine the fair value of assets acquired and liabilities assumed as of the effective date. The fair value estimates were based on income and cost valuation methods.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The following table summarizes the fair value of the 38.5% interest received in NGM as of the effective date:

​

​	​	​	​
Assets:	​	​	​
Inventories	​	$	134
Stockpiles and ore on leach pads (1)	​	​	500
Property, plant and mine development (2)	​	​	7,050
Goodwill (3)	​	​	268
Other assets	​	​	82
Total assets	​	​	8,034
​	​	​	​
Liabilities:	​	​	​
Accounts payable	​	​	97
Income and mining taxes payable	​	​	16
Reclamation and remediation liabilities (4)	​	​	308
Deferred income tax liabilities (5)	​	​	278
Other liabilities	​	​	22
Total liabilities	​	​	721
​	​	​	​
Fair value of 38.5% interest received in NGM, including noncontrolling interest	​	$	7,313

(1)	The fair value of the stockpiles and ore on leach pads was determined by applying the income valuation approach adjusted for estimated future costs to complete and normal profit margin.

(2)	The fair value of property, plant and mine development is based on applying the income and cost valuation methods and includes a provision for the estimated fair value of asset retirement obligations related to the long-lived tangible assets.

(3)

Goodwill represents the Company’s proportionate share of goodwill recognized by NGM at formation and primarily represents: 1) the combination of high-quality reserves in one of the world’s most prolific gold districts, positioning NGM for sustainable growth; 2) the ability to optimize ore sources and production schedules across the joint venture; and 3) the value assigned to the assembled workforce acquired. The Company’s proportionate share of goodwill recognized by NGM is included in the Nevada reportable segment.

(4)

The fair value of reclamation and remediation liabilities is based on the expected amounts and timing of cash flows for closure activities and discounted to present value using a credit-adjusted risk-free rate as of the acquisition date. Key assumptions include the costs and timing of key closure activities based on the life of mine plans, including estimates and timing of monitoring and water management costs (if applicable) after the completion of initial closure activities.

(5)

Deferred income tax liabilities represent the future tax expense relating to the Nevada net proceeds tax associated with the differences between the fair value allocated to assets (excluding goodwill) and liabilities and the historical carryover tax basis of these assets and liabilities. No deferred tax liability is recognized for the basis difference inherent in the fair value allocated to goodwill.

​

Sales and Net income (loss) attributable to Newmont stockholders in the Consolidated Statement of Operations includes NGM sales of $1,022 and NGM net income of $184 from the effective date to the period ending December 31, 2019.

​

In connection with the formation of NGM on July 1, 2019, Newmont and The Bank of New York Mellon Trust Company, N.A. executed the first supplemental indenture (“First Supplemental Indenture”) to the indenture dated March 22, 2005 (“2035 Indenture”), pursuant to which the Company has $600 of outstanding senior notes due in 2035 (“2035 Notes”). Under the terms of the First Supplemental Indenture, NGM had agreed to provide a full and unconditional guarantee of the Company’s 2035 Notes, subject to the terms and conditions set forth in the 2035 Indenture. On August 23, 2019, the Company successfully completed a consent solicitation for its 2035 Notes. In connection with the consent solicitation, a second supplemental indenture (“Second Supplemental Indenture”) was executed that released NGM as a guarantor of the Company’s 2035 Notes. See Note 25 for additional information regarding the 2035 Notes.

​

On July 1, 2019 the Company entered into a transition services agreement (“TSA”) with NGM. The TSA agreement governs specific transition services that the Company provides to NGM. The agreement expires on the earlier of the date on which the last transition service terminates and February 28, 2021. From the effective date to the period ending December 31, 2019, the Company billed NGM $10 for services provided under the TSA.

​

On July 1, 2019 the Company entered into an employee lease agreement with NGM due to the length of time necessary for NGM to establish employment related functions and programs. Under the terms of the agreement, NGM could lease the services and

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

skills of certain personnel that remained employed by Newmont. The leasing period expired on December 31, 2019. On the expiration date, the leased employees who accepted NGM’s offer of employment, ceased employment with Newmont and commenced employment with NGM. The Company billed NGM $213 for services provided under the employee lease agreement.

​

On July 1, 2019 the Company also entered into a toll milling agreement with NGM for processing sulfide concentrate produced at CC&V. Under the terms of the agreement, CC&V will deliver a minimum of 4,000 tons and a maximum of 8,333 tons of concentrate per month for milling to NGM, with NGM and CC&V each covering 50% of the cost of transportation. CC&V will pay $20 per ton towards milling costs and reimburse NGM for doré refining and transportation costs. CC&V continues to hold title to the concentrate sent to NGM for processing and receives bullion credits for gold recovered and NGM utilizes the concentrate as a fuel source for the NGM roaster. The agreement expires on December 31, 2020. From the effective date to the period ending December 31, 2019, the Company’s payments for services provided under the toll milling agreement were immaterial.

​

In addition, the Company purchases gold and silver from NGM for resale to third parties. Gold purchases from NGM totaled $1,002 as of December 31, 2019. Total amounts due to (from) NGM for gold and silver purchased, the TSA services provided, employees leased to NGM and CC&V toll milling outlined above were $120 as of December 31, 2019.

​

In connection with entering into the Nevada JV Agreement, Newmont entered into a mutual two-year standstill agreement with Barrick, which expires on July 1, 2021.

NOTE 5 SEGMENT INFORMATION

The Company regularly reviews its segment reporting for alignment with its strategic goals and operational structure as well as for evaluation of business performance and allocation of resources by Newmont’s Chief Operating Decision Maker ("CODM"). In the second quarter of 2019, following the close of the Newmont Goldcorp transaction on April 18, 2019, and in anticipation of the formation of NGM effective July 1, 2019, the Company revised its operating segments and established the Nevada reportable segment to reflect certain changes in the financial information regularly reviewed by the CODM. The Company determined that its operations are organized into five geographic regions; North America, South America, Australia, Africa and Nevada, which also represent Newmont’s reportable and operating segments.

As a result of the Newmont Goldcorp transaction, the Company acquired the Red Lake, Musselwhite, Porcupine, Éléonore and Peñasquito mines, which are included in the North America reportable segment, and the Cerro Negro mine, which is included in the South America reportable segment. Additionally, the Company acquired interests in the Pueblo Viejo mine, the Norte Abierto project, the NuevaUnión project and the Alumbrera mine, which are all accounted for as equity method investments. The Company’s investment in the Pueblo Viejo mine is included in the South America reportable segment within Other South America. All other equity method investments are included in Corporate and other. Refer to Note 3 and Note 20 for further information.

The Company’s Nevada reportable segment includes the Carlin, Phoenix, Twin Creeks and Long Canyon mines (“existing Nevada mining operations”), previously included in the North America reportable segment. In July of 2019, the Company added NGM to the Nevada reportable segment, which reflects the Company’s 38.5% ownership interest in the joint venture from the effective date to the period ended December 31, 2019. Pursuant to the terms of the Nevada JV Agreement, the Company contributed its existing Nevada mining operations in exchange for its ownership interest in NGM. Refer to Note 4 for further information.

​

Segment results for the periods ended December 31, 2018 and 2017 have been revised to reflect these changes.

​

Notwithstanding the reportable segments structure, the Company internally reports information on a mine-by-mine basis for each mining operation and has chosen to disclose this information in 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 included within the reportable segments are included in Corporate and Other. Although they are not required to be included in this footnote, they are provided for reconciliation purposes. The financial information relating to the Company’s segments is as follows:

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​			​	​	​	​	​	​	Advanced			Income (Loss)		​	​	​	​	​	​	​
​		​		​	Costs		​	Depreciation		​	Projects, Research		​	before Income		​	​			​
​	​	​	​	​	Applicable		​	and		​	and Development		​	and Mining Tax		​	Total		​	Capital		​
​		Sales			to Sales			Amortization			and Exploration			and Other Items		​	Assets			Expenditures(1)
Years Ended December 31, 2019	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	445	​	$	290	​	$	95	​	$	13	​	$	39	​	$	770	​	$	35	​
Red Lake (2)	​	​	159	​	​	136	​	​	50	​	​	7	​	​	(47)	​	​	589	​	​	29	​
Musselwhite (3)	​	​	7	​	​	13	​	​	28	​	​	7	​	​	(6)	​	​	1,301	​	​	60	​
Porcupine	​	​	338	​	​	185	​	​	66	​	​	14	​	​	58	​	​	1,859	​	​	61	​
Éléonore	​	​	378	​	​	214	​	​	80	​	​	8	​	​	65	​	​	1,323	​	​	55	​
Peñasquito:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	209	​	​	116	​	​	43	​	​	​	​	​	​	​	​	​	​	​	​	​
Silver	​	​	253	​	​	181	​	​	66	​	​	​	​	​	​	​	​	​	​	​	​	​
Lead	​	​	85	​	​	77	​	​	29	​	​	​	​	​	​	​	​	​	​	​	​	​
Zinc	​	​	143	​	​	129	​	​	55	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Peñasquito	​	​	690	​	​	503	​	​	193	​	​	6	​	​	(58)	​	​	7,038	​	​	128	​
Other North America	​	​	—	​	​	—	​	​	22	​	​	5	​	​	(161)	​	​	4	​	​	8	​
North America	​	​	2,017	​	​	1,341	​	​	534	​	​	60	​	​	(110)	​	​	12,884	​	​	376	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	735	​	​	400	​	​	113	​	​	24	​	​	83	​	​	1,803	​	​	185	​
Merian	​	​	734	​	​	297	​	​	93	​	​	11	​	​	331	​	​	990	​	​	56	​
Cerro Negro	​	​	502	​	​	210	​	​	111	​	​	22	​	​	132	​	​	2,213	​	​	55	​
Other South America	​	​	—	​	​	—	​	​	12	​	​	40	​	​	(67)	​	​	2,809	​	​	1	​
South America	​	​	1,971	​	​	907	​	​	329	​	​	97	​	​	479	​	​	7,815	​	​	297	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	999	​	​	575	​	​	106	​	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	166	​	​	117	​	​	22	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Boddington	​	​	1,165	​	​	692	​	​	128	​	​	3	​	​	330	​	​	2,148	​	​	78	​
Tanami	​	​	697	​	​	266	​	​	96	​	​	12	​	​	314	​	​	966	​	​	124	​
Kalgoorlie (2)	​	​	319	​	​	216	​	​	27	​	​	6	​	​	67	​	​	434	​	​	34	​
Other Australia	​	​	—	​	​	—	​	​	7	​	​	24	​	​	(32)	​	​	62	​	​	10	​
Australia	​	​	2,181	​	​	1,174	​	​	258	​	​	45	​	​	679	​	​	3,610	​	​	246	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	880	​	​	393	​	​	160	​	​	33	​	​	295	​	​	2,057	​	​	213	​
Akyem	​	​	585	​	​	235	​	​	150	​	​	14	​	​	176	​	​	993	​	​	33	​
Other Africa	​	​	—	​	​	—	​	​	—	​	​	6	​	​	(16)	​	​	3	​	​	—	​
Africa	​	​	1,465	​	​	628	​	​	310	​	​	53	​	​	455	​	​	3,053	​	​	246	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nevada Gold Mines	​	​	1,022	​	​	494	​	​	298	​	​	22	​	​	203	​	​	8,096	​	​	138	​
Carlin (4)	​	​	533	​	​	358	​	​	107	​	​	15	​	​	46	​	​	—	​	​	64	​
Phoenix: (4)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	151	​	​	116	​	​	33	​	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	44	​	​	28	​	​	9	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Phoenix	​	​	195	​	​	144	​	​	42	​	​	1	​	​	29	​	​	—	​	​	13	​
Twin Creeks (4)	​	​	230	​	​	113	​	​	31	​	​	5	​	​	89	​	​	—	​	​	30	​
Long Canyon (4)	​	​	126	​	​	36	​	​	36	​	​	12	​	​	40	​	​	—	​	​	7	​
Other Nevada	​	​	—	​	​	—	​	​	2	​	​	8	​	​	(9)	​	​	—	​	​	5	​
Nevada	​	​	2,106	​	​	1,145	​	​	516	​	​	63	​	​	398	​	​	8,096	​	​	257	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate and Other	​	​	—	​	​	—	​	​	13	​	​	97	​	​	1,792	​	​	4,516	​	​	32	​
Consolidated	​	$	9,740	​	$	5,195	​	$	1,960	​	$	415	​	$	3,693	​	$	39,974	​	$	1,454	​

(1)	Includes a decrease in accrued capital expenditures of $9; consolidated capital expenditures on a cash basis were $1,463.

(2)	The Company reached definitive agreements to sell these sites, resulting in their assets and liabilities being classified as held for sale on the Consolidated Balance Sheet. Refer below for additional information.

(3)	Costs applicable to sales are partially offset by insurance recoveries received during 2019. Refer to Note 10 for additional information.

(4)	Amounts include sales of finished goods inventory retained and not contributed to NGM on the effective date, pursuant to the Nevada JV Agreement.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​			​	​	​	​	​	​	Advanced			Income (Loss)		​	​	​	​	​	​
​		​		​	Costs		​	Depreciation		​	Projects, Research		​	before Income		​	​			​
​	​	​	​	​	Applicable		​	and		​	and Development		​	and Mining Tax		​	Total		​	Capital
​		Sales			to Sales			Amortization			and Exploration			and Other Items		​	Assets			Expenditures(1)
Years Ended December 31, 2018	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	450	​	$	260	​	$	83	​	$	10	​	$	89	​	$	853	​	$	29
Other North America	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—
North America	​	​	450	​	​	260	​	​	83	​	​	10	​	​	89	​	​	853	​	​	29
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	659	​	​	425	​	​	108	​	​	54	​	​	(6)	​	​	1,518	​	​	119
Merian	​	​	677	​	​	275	​	​	90	​	​	13	​	​	300	​	​	1,036	​	​	78
Other South America	​	​	—	​	​	—	​	​	14	​	​	34	​	​	(61)	​	​	1,640	​	​	1
South America	​	​	1,336	​	​	700	​	​	212	​	​	101	​	​	233	​	​	4,194	​	​	198
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	900	​	​	571	​	​	102	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	218	​	​	132	​	​	24	​	​	​	​	​	​	​	​	​	​	​	​
Total Boddington	​	​	1,118	​	​	703	​	​	126	​	​	—	​	​	293	​	​	2,113	​	​	57
Tanami	​	​	638	​	​	297	​	​	75	​	​	17	​	​	251	​	​	902	​	​	97
Kalgoorlie	​	​	410	​	​	232	​	​	24	​	​	10	​	​	170	​	​	402	​	​	22
Other Australia	​	​	—	​	​	—	​	​	6	​	​	12	​	​	(8)	​	​	72	​	​	6
Australia	​	​	2,166	​	​	1,232	​	​	231	​	​	39	​	​	706	​	​	3,489	​	​	182
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	553	​	​	323	​	​	105	​	​	17	​	​	99	​	​	1,869	​	​	264
Akyem	​	​	527	​	​	227	​	​	151	​	​	13	​	​	125	​	​	966	​	​	40
Other Africa	​	​	—	​	​	—	​	​	—	​	​	5	​	​	(13)	​	​	2	​	​	—
Africa	​	​	1,080	​	​	550	​	​	256	​	​	35	​	​	211	​	​	2,837	​	​	304
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Carlin	​	​	1,173	​	​	782	​	​	220	​	​	34	​	​	79	​	​	2,242	​	​	153
Phoenix	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	291	​	​	202	​	​	47	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	85	​	​	55	​	​	15	​	​	​	​	​	​	​	​	​	​	​	​
Total Phoenix	​	​	376	​	​	257	​	​	62	​	​	5	​	​	32	​	​	899	​	​	32
Twin Creeks	​	​	457	​	​	240	​	​	61	​	​	12	​	​	(146)	​	​	877	​	​	82
Long Canyon	​	​	215	​	​	72	​	​	76	​	​	23	​	​	44	​	​	1,008	​	​	11
Other Nevada	​	​	—	​	​	—	​	​	2	​	​	23	​	​	(54)	​	​	857	​	​	15
Nevada	​	​	2,221	​	​	1,351	​	​	421	​	​	97	​	​	(45)	​	​	5,883	​	​	293
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate and Other	​	​	—	​	​	—	​	​	12	​	​	68	​	​	(456)	​	​	3,459	​	​	13
Consolidated	​	$	7,253	​	$	4,093	​	$	1,215	​	$	350	​	$	738	​	$	20,715	​	$	1,019

(1)	Includes a decrease in accrued capital expenditures of $13; consolidated capital expenditures on a cash basis were $1,032.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		​			​	​	​	​	​	​	Advanced			Income (Loss)		​	​	​	​	​	​
​	​	​		​	Costs		​	Depreciation		​	Projects, Research		​	before Income		​	​			​		​
​	​	​	​	​	Applicable		​	and		​	and Development		​	and Mining Tax		​	Total		​	Capital		​
​	​	Sales			to Sales			Amortization			and Exploration			and Other Items		​	Assets			Expenditures(1)		​
Year Ended December 31, 2017	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	585	​	$	290	​	$	127	​	$	10	​	$	156	​	$	901	​	$	33	​
Other North America	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
North America	​	​	585	​	​	290	​	​	127	​	​	10	​	​	156	​	​	901	​	​	33	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	671	​	​	504	​	​	134	​	​	41	​	​	(77)	​	​	1,420	​	​	51	​
Merian	​	​	643	​	​	238	​	​	91	​	​	14	​	​	297	​	​	967	​	​	105	​
Other South America	​	​	—	​	​	—	​	​	14	​	​	43	​	​	(72)	​	​	1,661	​	​	—	​
South America	​	​	1,314	​	​	742	​	​	239	​	​	98	​	​	148	​	​	4,048	​	​	156	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	981	​	​	562	​	​	116	​	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	227	​	​	108	​	​	22	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Boddington	​	​	1,208	​	​	670	​	​	138	​	​	2	​	​	369	​	​	2,110	​	​	80	​
Tanami	​	​	514	​	​	251	​	​	67	​	​	21	​	​	181	​	​	690	​	​	108	​
Kalgoorlie	​	​	458	​	​	234	​	​	20	​	​	9	​	​	190	​	​	407	​	​	21	​
Other Australia	​	​	—	​	​	—	​	​	6	​	​	8	​	​	(37)	​	​	54	​	​	5	​
Australia	​	​	2,180	​	​	1,155	​	​	231	​	​	40	​	​	703	​	​	3,261	​	​	214	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	439	​	​	268	​	​	72	​	​	24	​	​	70	​	​	1,690	​	​	181	​
Akyem	​	​	594	​	​	272	​	​	155	​	​	10	​	​	152	​	​	1,057	​	​	26	​
Other Africa	​	​	—	​	​	—	​	​	1	​	​	6	​	​	(13)	​	​	1	​	​	—	​
Africa	​	​	1,033	​	​	540	​	​	228	​	​	40	​	​	209	​	​	2,748	​	​	207	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Carlin	​	​	1,228	​	​	810	​	​	224	​	​	18	​	​	131	​	​	2,299	​	​	174	​
Phoenix:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	259	​	​	182	​	​	47	​	​	​	​	​	​	​	​	​	​	​	​	​
Copper	​	​	88	​	​	55	​	​	15	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Phoenix	​	​	347	​	​	237	​	​	62	​	​	5	​	​	30	​	​	889	​	​	25	​
Twin Creeks	​	​	473	​	​	229	​	​	64	​	​	9	​	​	168	​	​	1,144	​	​	52	​
Long Canyon	​	​	219	​	​	59	​	​	74	​	​	23	​	​	63	​	​	1,083	​	​	10	​
Other Nevada	​	​	—	​	​	—	​	​	1	​	​	26	​	​	(29)	​	​	676	​	​	9	​
Nevada	​	​	2,267	​	​	1,335	​	​	425	​	​	81	​	​	363	​	​	6,091	​	​	270	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate and Other	​	​	—	​	​	—	​	​	11	​	​	53	​	​	(507)	​	​	3,597	​	​	10	​
Consolidated	​	$	7,379	​	$	4,062	​	$	1,261	​	$	322	​	$	1,072	​	$	20,646	​	$	890	​

(1)	Includes an increase in accrued capital expenditures of $24; consolidated capital expenditures on a cash basis were $866.

​

Long-lived assets, excluding assets held for sale, deferred tax assets, investments and restricted assets, were as follows:

​

​	​	​	​	​	​	​	​
​	​	At December 31,					​
​		2019			2018
United States		$	8,357	​	$	5,968	​
Mexico	​	​	6,482	​	​	—	​
Canada	​	​	4,599	​	​	206	​
Australia	​	​	2,727	​	​	2,987	​
Ghana	​	​	2,523	​	​	2,515	​
Argentina	​	​	2,066	​	​	—	​
Peru	​	​	2,227	​	​	2,117	​
Suriname	​	​	812	​	​	825	​
Other	​	​	2	​	​	—	​
​	​	$	29,795	​	$	14,618	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Assets Held for Sale

Red Lake

The Company entered into a binding agreement dated November 25, 2019, to sell the Red Lake complex in Ontario, Canada, included as part of the Company’s North America segment, to Evolution Mining Limited (“Evolution”). Pursuant to the terms of the agreement, upon closing the transaction the Company will receive proceeds of $375 in cash, adjusted for normal working capital movements, with contingent payments of up to an additional $100 tied to new mineralization discoveries over a fifteen year period.

The Red Lake assets and liabilities were classified as held for sale for the year ended December 31, 2019. At December 31, 2019, the Company included $589 and $191 of Assets held for sale and Liabilities held for sale, respectively, on the Consolidated Balance Sheet related to Red Lake.

Kalgoorlie

The Company entered into a binding agreement dated December 17, 2019, to sell its 50% interest in Kalgoorlie Consolidated Gold Mines (“Kalgoorlie”), included as part of the Australia segment to Northern Star Resources Limited (“Northern Star”). The Company completed the sale on January 2, 2020, and pursuant to the terms of the agreement, received proceeds of $800 in cash for its interests in Kalgoorlie. The proceeds are inclusive of a $25 million payment that gives Northern Star specified exploration tenements, transitional services support and an option to negotiate exclusively for 120 days the purchase of Newmont’s Kalgoorlie power business. The Company expects to recognize a gain on the sale of the Kalgoorlie operations of $493 in 2020.

The Kalgoorlie assets and liabilities were classified as held for sale for the year ended December 31, 2019. At December 31, 2019, the Company included $434 and $152 of Assets held for sale and Liabilities held for sale, respectively, on the Consolidated Balance Sheet related to Kalgoorlie.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 6 SALES

The following table presents the Company’s Sales by mining operation, product and inventory type:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​		​	Sales		​	​		​	​		​
​	​	Gold Sales		​	from		​	Sales		​	​		​
​	​	from Doré		​	Concentrate		​	from Other		​	​		​
​	​	Production		​	Production		​	Production		​	Total Sales		​
Years Ended December 31, 2019	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	445	​	$	—	​	$	—	​	$	445	​
Red Lake	​	​	159	​	​	—	​	​	—	​	​	159	​
Musselwhite	​	​	7	​	​	—	​	​	—	​	​	7	​
Porcupine	​	​	338	​	​	—	​	​	—	​	​	338	​
Éléonore	​	​	378	​	​	—	​	​	—	​	​	378	​
Peñasquito	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	17	​	​	177	​	​	15	​	​	209	​
Silver (1)	​	​	—	​	​	245	​	​	8	​	​	253	​
Lead	​	​	—	​	​	85	​	​	—	​	​	85	​
Zinc	​	​	—	​	​	143	​	​	—	​	​	143	​
Total Peñasquito	​	​	17	​	​	650	​	​	23	​	​	690	​
North America	​	​	1,344	​	​	650	​	​	23	​	​	2,017	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	735	​	​	—	​	​	—	​	​	735	​
Merian	​	​	734	​	​	—	​	​	—	​	​	734	​
Cerro Negro	​	​	502	​	​	—	​	​	—	​	​	502	​
South America	​	​	1,971	​	​	—	​	​	—	​	​	1,971	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	238	​	​	761	​	​	—	​	​	999	​
Copper	​	​	—	​	​	166	​	​	—	​	​	166	​
Total Boddington	​	​	238	​	​	927	​	​	—	​	​	1,165	​
Tanami	​	​	697	​	​	—	​	​	—	​	​	697	​
Kalgoorlie	​	​	319	​	​	—	​	​	—	​	​	319	​
Australia	​	​	1,254	​	​	927	​	​	—	​	​	2,181	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	880	​	​	—	​	​	—	​	​	880	​
Akyem	​	​	585	​	​	—	​	​	—	​	​	585	​
Africa	​	​	1,465	​	​	—	​	​	—	​	​	1,465	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nevada Gold Mines	​	​	1,000	​	​	22	​	​	—	​	​	1,022	​
Carlin (2)		​	533	​	​	—	​	​	—	​	​	533	​
Phoenix:(2)	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	52	​	​	99	​	​	—	​	​	151	​
Copper	​	​	—	​	​	16	​	​	28	​	​	44	​
Total Phoenix	​	​	52	​	​	115	​	​	28	​	​	195	​
Twin Creeks (2)	​	​	230	​	​	—	​	​	—	​	​	230	​
Long Canyon (2)	​	​	126	​	​	—	​	​	—	​	​	126	​
Nevada	​	​	1,941	​	​	137	​	​	28	​	​	2,106	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated	​	$	7,975	​	$	1,714	​	$	51	​	$	9,740	​

(1)	Silver sales from concentrate includes $37 related to non-cash amortization of the Silver streaming agreement liability.

(2)	Amounts include sales of finished goods inventory retained and not contributed to NGM on the effective date, pursuant to the Nevada JV Agreement.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​		​	Sales		​	​		​	​		​
​	​	Gold Sales		​	from		​	Sales		​	​		​
​	​	from Doré		​	Concentrate		​	from Other		​	​		​
​	​	Production		​	Production		​	Production		​	Total Sales		​
Years Ended December 31, 2018	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	450	​	$	—	​	$	—	​	$	450	​
North America	​	​	450	​	​	—	​	​	—	​	​	450	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	659	​	​	—	​	​	—	​	​	659	​
Merian	​	​	677	​	​	—	​	​	—	​	​	677	​
South America	​	​	1,336	​	​	—	​	​	—	​	​	1,336	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	243	​	​	657	​	​	—	​	​	900	​
Copper	​	​	—	​	​	218	​	​	—	​	​	218	​
Total Boddington	​	​	243	​	​	875	​	​	—	​	​	1,118	​
Tanami	​	​	638	​	​	—	​	​	—	​	​	638	​
Kalgoorlie	​	​	410	​	​	—	​	​	—	​	​	410	​
Australia	​	​	1,291	​	​	875	​	​	—	​	​	2,166	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	553	​	​	—	​	​	—	​	​	553	​
Akyem	​	​	527	​	​	—	​	​	—	​	​	527	​
Africa	​	​	1,080	​	​	—	​	​	—	​	​	1,080	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Carlin		​	1,173	​	​	—	​	​	—	​	​	1,173	​
Phoenix:	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	127	​	​	164	​	​	—	​	​	291	​
Copper	​	​	—	​	​	33	​	​	52	​	​	85	​
Total Phoenix	​	​	127	​	​	197	​	​	52	​	​	376	​
Twin Creeks	​	​	457	​	​	—	​	​	—	​	​	457	​
Long Canyon	​	​	215	​	​	—	​	​	—	​	​	215	​
Nevada	​	​	1,972	​	​	197	​	​	52	​	​	2,221	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated	​	$	6,129	​	$	1,072	​	$	52	​	$	7,253	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​		​	Sales		​	​		​	​		​
​	​	Gold Sales		​	from		​	Sales		​	​		​
​	​	from Doré		​	Concentrate		​	from Other		​	​		​
​	​	Production		​	Production		​	Production		​	Total Sales		​
Year Ended December 31, 2017	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	576	​	$	9	​	$	—	​	$	585	​
North America	​	​	576	​	​	9	​	​	—	​	​	585	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Yanacocha	​	​	671	​	​	—	​	​	—	​	​	671	​
Merian	​	​	643	​	​	—	​	​	—	​	​	643	​
South America	​	​	1,314	​	​	—	​	​	—	​	​	1,314	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Boddington	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	237	​	​	744	​	​	—	​	​	981	​
Copper	​	​	—	​	​	227	​	​	—	​	​	227	​
Total Boddington	​	​	237	​	​	971	​	​	—	​	​	1,208	​
Tanami	​	​	514	​	​	—	​	​	—	​	​	514	​
Kalgoorlie	​	​	449	​	​	9	​	​	—	​	​	458	​
Australia	​	​	1,200	​	​	980	​	​	—	​	​	2,180	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ahafo	​	​	439	​	​	—	​	​	—	​	​	439	​
Akyem	​	​	594	​	​	—	​	​	—	​	​	594	​
Africa	​	​	1,033	​	​	—	​	​	—	​	​	1,033	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Carlin	​	​	1,228	​	​	—	​	​	—	​	​	1,228	​
Phoenix	​	​	​	​	​	​	​	​	​	​	​	​	​
Gold	​	​	131	​	​	128	​	​	—	​	​	259	​
Copper	​	​	—	​	​	41	​	​	47	​	​	88	​
Total Phoenix	​	​	131	​	​	169	​	​	47	​	​	347	​
Twin Creeks	​	​	473	​	​	—	​	​	—	​	​	473	​
Long Canyon	​	​	219	​	​	—	​	​	—	​	​	219	​
Nevada	​	​	2,051	​	​	169	​	​	47	​	​	2,267	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated	​	$	6,174	​	$	1,158	​	$	47	​	$	7,379	​

​

Trade Receivables

​

The following table details the receivables included within Trade receivables:

​

​	​	​	​	​	​	​
​	​	At December 31,		​	At December 31,
​	​	2019		​	2018
Receivables from Sales:	​	​	​	​	​	​
Gold sales from doré	​	$	27	​	$	40
Sales from concentrate production	​	​	331	​	​	211
Sales from other production	​	​	15	​	​	3
Total receivables from Sales	​	$	373	​	$	254

​

The impact to Sales from revenue provisionally recognized in previous periods due to the changes in the final pricing is an increase (decrease) of $2, $- and $23 and the impact to Sales from changes in quantities resulting from assays is an increase (decrease) of $(5), $1 and $- for the years ended December 31, 2019, 2018 and 2017, respectively.

​

Silver Streaming Agreement

​

As a part of the Newmont Goldcorp transaction, the Company assumed the Silver streaming agreement liability related to silver production from the Peñasquito mine in the North America segment. Pursuant to the agreement, the Company is obligated to sell 25% of silver production from the Peñasquito mine to Wheaton Precious Metals Corporation at the lesser of market price or a fixed contract

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

price, subject to an annual inflation adjustment of up to 1.65%. This agreement contains off-market terms and was initially recognized at its acquisition date fair value as a finite-lived intangible liability. Refer to Note 3 for further discussion of the valuation methodology and initial fair value. The Company’s policy is to amortize the liability into Sales each period using the units-of-production method. During the year ended December 31, 2019, the Company amortized $37 of the Silver streaming agreement liability into revenue. At December 31, 2019, the value of the liability included in the Company’s Consolidated Balance Sheet was $1,127.

​

Revenue by Geographic Area

​

Newmont primarily conducts metal sales in U.S. dollars, and therefore Sales are not exposed to fluctuations in foreign currencies. Revenues from sales attributed to countries based on the customer’s location were as follows:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
United Kingdom	​	$	7,980		$	5,448	​	$	5,521	​
Korea	​	​	538	​	​	237	​	​	384	​
Philippines	​	​	293	​	​	254	​	​	310	​
Germany	​	​	203	​	​	237	​	​	168	​
Mexico	​	​	190	​	​	—	​	​	—	​
Japan	​	​	172	​	​	105	​	​	87	​
Switzerland	​	​	120	​	​	677	​	​	657	​
United States	​	​	78	​	​	52	​	​	91	​
Other (1)	​	​	166	​	​	243	​	​	161	​
​	​	$	9,740	​	$	7,253	​	$	7,379	​

(1)	Other includes $37 related to non-cash amortization of the Silver streaming agreement liability.

​

Revenue by Major Customer

​

As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. In 2019, sales to Standard Chartered were $2,907 (30%), JPMorgan Chase were $1,780 (18%), Toronto Dominion Bank were $1,204 (12%) of total gold sales. In 2018, sales to JPMorgan Chase were $2,295 (32%), Toronto Dominion Bank were $1,324 (18%) and Standard Chartered were $1,164 (16%) of total gold sales. In 2017, sales to Toronto Dominion Bank were $2,738 (37%) and JPMorgan Chase were $1,400 (19%) of total gold sales.

The Company sells silver, lead, zinc and copper predominantly in the form of concentrates which are sold directly to smelters located in Asia and to a lesser extent North America and Europe. The concentrates are sold under long-term supply contracts with processing fees based on the demand for these concentrates in the global market place.

NOTE 7 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 costs are based principally on current legal and regulatory requirements.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company’s Reclamation and remediation expense consisted of:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Reclamation adjustments	​	$	77	​	$	33	​	$	51	​
Reclamation accretion	​	​	133	​	​	99	​	​	93	​
Total reclamation expense	​	​	210	​	​	132	​	​	144	​
​	​	​	​	​	​	​	​	​	​	​
Remediation adjustments	​	​	65	​	​	26	​	​	44	​
Remediation accretion	​	​	5	​	​	5	​	​	4	​
Total remediation expense	​	​	70	​	​	31	​	​	48	​
​	​	$	280	​	$	163	​	$	192	​

​

In 2019, reclamation adjustments primarily related to updated water management costs for operations no longer in production at Yanacocha and an update of the project cost estimates at Mule Canyon and Northumberland mine sites that resulted in increases of $62, $9 and $4, respectively. In 2018, reclamation adjustments primarily related to increased water management costs for operations no longer in production at Yanacocha of $14, a revision in the closure plan for Lone Tree, resulting in increased monitoring costs of $7, and increased water management costs of $9 for operations no longer in production at Carlin. In 2017, reclamation adjustments primarily related to revisions in the closure plan for the Rain mine that resulted in an increase of $35 to our reclamation liabilities. The Company contributed to NGM the non-operating Rain and Lone Tree mines, which are included in the Carlin mine complex and the Phoenix mine, respectively.

​

In 2019, remediation adjustments primarily related to updated project cost estimates at the Midnite mine and Dawn mill sites and increased water management cost estimates at Con mine that resulted in increases of $36 and $9, respectively. In 2018, remediation adjustments related to updated assumptions for future water management costs at the Idarado remediation site, increased costs for project activities at the Woodcutters remediation site, and increased water management costs at the Resurrection remediation site that resulted in increases of $8, $2 and $2, respectively. In 2017, remediation adjustments were primarily related to increased water management and monitoring costs at the Resurrection of $9 and San Luis remediation sites of $4, as well as increased costs for project activities at the Midnite mine and Dawn mill sites of $10.

​

The following is a reconciliation of Reclamation and remediation obligations:

​

​ ​	​	​	​	​	​	​	​	​	​	​
​		Reclamation			Remediation			Total		​
Balance at January 1, 2018	​	$	2,144	​	$	304	​	$	2,448	​
Additions, changes in estimates and other	​	​	106	​	​	9	​	​	115	​
Payments and other	​	​	(33)	​	​	(39)	​	​	(72)	​
Accretion expense	​	​	99	​	​	5	​	​	104	​
Balance December 31, 2018	​	​	2,316	​	​	279	​	​	2,595	​
Additions, changes in estimates and other	​	​	287	​	​	46	​	​	333	​
Additions from the Newmont Goldcorp transaction	​	​	882	​	​	—	​	​	882	​
Net change from the formation of NGM	​	​	(49)	​	​	—	​	​	(49)	​
Obligations included within liabilities held for sale (1)	​	​	(153)	​	​	—	​	​	(153)	​
Other acquisitions and divestitures	​	​	(11)	​	​	—	​	​	(11)	​
Payments and other	​	​	(71)	​	​	(31)	​	​	(102)	​
Accretion expense	​	​	133	​	​	5	​	​	138	​
Balance December 31, 2019	​	$	3,334	​	$	299	​	$	3,633	​

(1)	This represents the reclamation obligations at the Red Lake and Kalgoorlie mines which were classified as held for sale as of December 31, 2019. Refer to Note 5 for further information on the assets held for sale.

​

The current portion of reclamation was $125 and $65 at December 31, 2019 and 2018, respectively, and is included in Other current liabilities. The current portion of remediation was $44 and $49 at December 31, 2019 and 2018, respectively, and is included in Other current liabilities.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

At December 31, 2019 and 2018, $3,334 and $2,316, respectively, were accrued for reclamation obligations relating to operating and formerly operating properties.

The Company is also 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 December 31, 2019 and 2018, $299 and $279, 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 37% greater or 0% lower than the amount accrued at December 31, 2019. 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.

Included in Other non-current assets at December 31, 2019 and 2018, are $53 and $42, respectively, of non-current restricted cash held for purposes of settling asset retirement obligations. Of the amount in 2019, $47 is related to the Ahafo and Akyem mines in Ghana, Africa, $5 related to NGM in Nevada, United States and $1 related to the Midnite mine and Dawn mill sites in Washington, United States. Of the amount in 2018, $32 is related to the Ahafo and Akyem mines, $8 is related to the Con mine in Yellowknife, NWT, Canada and $2 is related to the San Jose Reservoir.

Included in Other non-current assets at December 31, 2019 and 2018, are $55 and $57, respectively, of non-current restricted investments, which are legally pledged for purposes of settling reclamation and remediation obligations. Of the amount in 2019, $31 is related to the Midnite mine and Dawn mill sites, $24 is related to the San Jose Reservoir. Of the amount in 2018, $31 is related to the Midnite mine site, $21 is related to the San Jose Reservoir and $5 is related to various locations in Nevada.

Refer to Notes 25 and 32 for further information on letters of credit for reclamation bonding and environmental matters relating to the Ross Adams mine site and the Midnite mine and Dawn mill sites, respectively.

NOTE 8 IMPAIRMENT OF LONG-LIVED ASSETS

​

​	​	​	​	​	​	​	​	​	​
​	Years Ended December 31,								​
​	2019		​	2018		​	2017		​
South America	$	3	​	$	—	​	$	4	​
Australia	​	—	​	​	—	​	​	6	​
Africa	​	1	​	​	2	​	​	—	​
Nevada	​	—	​	​	366	​	​	—	​
Corporate and Other	​	1	​	​	1	​	​	4	​
​	$	5	​	$	369	​	$	14	​

​

The 2019 impairments were primarily related to non-cash write downs of obsolete assets.

​

The 2018 impairments related to certain exploration properties of $331 and Emigrant, within the Carlin complex, of $35, both reported in the Nevada segment. The Company determined that an impairment indicator existed at certain Nevada exploration properties, due to the Company’s decision to focus on advancing other projects, and at Emigrant, due to a change in the mine plan that resulted in a significant decrease in mine life. In addition to the impairment of long-lived assets at Emigrant, the Company also recorded an adjustment to the carrying value of the ore on leach pads resulting from the change in mine plan, impacting Costs applicable to sales and Depreciation and amortization in 2018 by $22 and $7, respectively.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

As a result of the impairment indicators, recoverability tests were performed and the Company concluded the Property, plant and mine development, net at certain Nevada exploration properties and Emigrant was impaired. The Company measured the impairment at the Nevada exploration properties using the market approach. The Company measured the impairment at Emigrant by comparing the total fair value of existing operations using the income approach. Refer to Note 18 for detail of the assumptions used in the determination of the fair value of the long-lived assets tested for impairment.

The 2017 impairments related to assets in South America, Australia and Corporate.

NOTE 9 OTHER EXPENSE, NET

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Goldcorp transaction and integration costs	​	$	217	​	$	—	​	$	—	​
Nevada JV transaction and implementation costs	​	​	30	​	​	—	​	​	—	​
Restructuring and other	​	​	12	​	​	20	​	​	14	​
Other	​	​	36	​	​	9	​	​	18	​
​	​	$	295	​	$	29	​	$	32	​

​

Goldcorp transaction and integration costs. Goldcorp transaction and integration costs primarily include integration activities and related investment banking and legal costs, severance, accelerated share award payments and consulting services for the year ended December 31, 2019.

Nevada JV transaction and implementation costs. Nevada JV transaction and implementation costs primarily represent legal and hostile defense fees, investment banking fees and severance costs incurred related to the Nevada JV Agreement for the year ended December 31, 2019.

Restructuring and other. Restructuring and other represents certain costs associated with severance, legal and other settlements for all periods presented.

NOTE 10 OTHER INCOME, NET

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Change in fair value of investments	​	$	166	​	$	(50)	​	$	—	​
Interest	​	​	57	​	​	56	​	​	28	​
Insurance proceeds	​	​	38	​	​	25	​	​	13	​
Gain (loss) on asset and investment sales, net	​	​	30	​	​	100	​	​	23	​
Restructuring and other	​	​	20	​	​	—	​	​	—	​
Foreign currency exchange, net	​	​	(7)	​	​	42	​	​	(28)	​
Impairment of investments	​	​	(2)	​	​	(42)	​	​	—	​
Other	​	​	25	​	​	24	​	​	18	​
​	​	$	327	​	$	155	​	$	54	​

​

Insurance proceeds. In 2019, the Company received insurance proceeds of $125 associated with the Musselwhite fires that occurred during March of 2019 of which $38 was recorded as business interruption losses. Of the remaining amount, $41 was recognized as an offset to the abnormal costs applicable to sales and $46 was recorded as an offset to accounts receivable.

In September 2018, the Company recorded business interruption insurance proceeds of $25 associated with the East wall slips that occurred in the first half of 2018 at Kalgoorlie.

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.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Gain (loss) on asset and investment sales, net. In June 2019, the Company sold exploration properties in Nevada, which resulted in a gain of $26.

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 20.

In June 2017, the Company exchanged its interest in the Fort á la Corne joint venture for equity ownership in Star Diamond Corporation (“Star Diamond”), formerly known as Shore Gold Inc. (“Shore Gold”), resulting in a pre-tax gain of $15.

Restructuring and Other. During 2019, the Company recorded pension and other post-employment benefit curtailment gains, net, of $20. For additional information regarding pension and other post-employment benefits, see Note 16.

​

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 settlements of other current assets and liabilities in Australia, Canada, Mexico, Argentina, Peru and Suriname.

Impairment of investments. In December 2018, the Company recognized investment impairments of $33 and $9 for other-than-temporary declines in value of an equity method investment and a cost method investment, respectively.

NOTE 11 INCOME AND MINING TAXES

The Company’s Income and mining tax benefit (expense) consisted of:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Current:	​	​	​	​	​	​	​	​	​	​
United States	​	$	2	​	$	(18)	​	$	(40)	​
Foreign	​	​	(500)	​	​	(218)	​	​	(290)	​
​	​	​	(498)	​	​	(236)	​	​	(330)	​
Deferred:	​	​	​	​	​	​	​	​	​	​
United States	​	​	(340)	​	​	(63)	​	​	(775)	​
Foreign	​	​	6	​	​	(87)	​	​	(22)	​
​	​	​	(334)	​	​	(150)	​	​	(797)	​
​	​	$	(832)	​	$	(386)	​	$	(1,127)	​

​

The Company’s Income (loss) before income and mining tax and other items consisted of:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
United States	​	$	2,396	​	$	(247)	​	$	243	​
Foreign	​	​	1,297	​	​	985	​	​	829	​
​	​	$	3,693	​	$	738	​	$	1,072	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company’s Income and mining tax benefit (expense) differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,
​		2019					2018					2017
Income (loss) before income and mining tax and other items	​	​	​	$	3,693	​	​	​	$	738	​	​	​	$	1,072
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
U.S. Federal statutory tax rate	​	21	%	$	(776)	​	21	%	$	(155)	​	35	%	$	(375)
Reconciling items:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Re-measurement due to the Tax Cuts and Jobs Act	​	—	​	​	—	​	(2)	​	​	14	​	29	​	​	(312)
Tax restructuring related to the Tax Cuts and Jobs Act	​	—	​	​	—	​	(4)	​	​	34	​	38	​	​	(394)
Percentage depletion	​	(1)	​	​	55	​	(7)	​	​	49	​	(8)	​	​	81
Change in valuation allowance on deferred tax assets	​	(8)	​	​	296	​	24	​	​	(175)	​	7	​	​	(80)
Rate differential for foreign earnings indefinitely reinvested	​	4	​	​	(140)	​	15	​	​	(111)	​	—	​	​	—
Mining and other taxes	​	3	​	​	(90)	​	9	​	​	(63)	​	4	​	​	(41)
Uncertain tax position reserve adjustment	​	2	​	​	(70)	​	(5)	​	​	34	​	—	​	​	(4)
U.S. tax effect of noncontrolling interest attributable to non-U.S. investees	​	(1)	​	​	28	​	(4)	​	​	26	​	—	​	​	(1)
Effect of foreign earnings, net of credits	​	2	​	​	(73)	​	2	​	​	(18)	​	—	​	​	(4)
Tax impact of foreign exchange	​	(3)	​	​	96	​	—	​	​	—	​	—	​	​	—
Other	​	4	​	​	(158)	​	3	​	​	(21)	​	—	​	​	3
Income and mining tax expense	​	23	%	$	(832)	​	52	%	$	(386)	​	105	%	$	(1,127)

​

Factors that Significantly Impact Effective Tax Rate

Percentage depletion allowances (tax deductions for depletion that may exceed the tax basis in the mineral reserves) are available to the Company under the income tax laws of the United States for operations conducted in the United States or through branches and partnerships owned by U.S. subsidiaries included in the consolidated United States income tax return. These deductions are highly sensitive to the price of gold and other minerals produced by the Company.

A valuation allowance is provided for those deferred income tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, we consider estimated future taxable income as well as feasible tax planning strategies in each jurisdiction. If we determine that we will not realize all or a portion of our deferred income tax assets, we will increase our valuation allowance. Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

During the fourth quarter, the Company concluded that it is more likely than not that the Company will realize the benefits of its U.S. deferred tax assets, other than those representing net operating losses, capital losses, foreign tax credits, and gains and losses from investments in marketable securities. Therefore, the Company has released valuation allowance of $126 on certain U.S. operating deferred tax assets. The Company also released valuation allowance of $162 on U.S. foreign tax credit carryovers due to the amendment of the 2014 U.S. federal income tax return and associated carryback claims. Additional 2019 releases in the U.S. include valuation allowance of $91 on deferred tax assets associated with investments. These releases are partially offset by increases in valuation allowance of $45 on U.S. capital loss carryovers, $16 on U.S. net operating losses and a net $22 increase in valuation allowance in jurisdictions other than the U.S.

In 2019, the Company recognized other tax expense of $150 associated with the amendment of the 2014 U.S. federal income tax return and $34 due to the expiration of certain U.S. capital loss carryovers. Other tax expense also includes a $58 tax benefit recognized on the formation of NGM and $16 tax expense for transaction costs related to the Newmont Goldcorp transaction. The Company recognized $7 in other tax expense related to the suspension for one year of the previously approved reduction of the corporate income tax rate in Argentina. The reduction from 30% to 25% was originally scheduled to be effective January 1, 2020 but will now be effective on January 1, 2021. The remaining $9 of other tax expense relates to other permanent items in the U.S.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company operates in various jurisdictions around the world that have statutory tax rates that are significantly different than those of the U.S. These differences combine to move the overall effective tax rate higher than the U.S. statutory rate. A tax expense of $140 was recorded for 2019 as a result of this foreign rate differential.

Mining taxes in Nevada, Mexico, Canada, Peru and Australia represent state and provincial taxes levied on mining operations and are classified as income taxes as such taxes are based on a percentage of mining profits.

The Company consolidates certain subsidiaries of which it does not own 100% of the outstanding equity. However, for tax purposes, the Company is only responsible for the income taxes on the portion of the taxable earnings attributable to its ownership interest of each consolidated entity.

The Company has exposure to the tax impact of foreign exchange fluctuations in Argentina, Canada and Mexico. The following items are included in the tax expense: Argentinian and Mexican inflation on tax values, currency translation effects of local currency on deferred tax assets and deferred tax liabilities, the tax impact of local currency foreign exchange gains or losses, and non-taxable or non-deductible U.S. dollar currency foreign exchange gains or losses.

Components of the Company's deferred income tax assets (liabilities) are as follows:

​

​	​	​	​	​	​	​	​
​	​	At December 31,					​
​		2019			2018
Deferred income tax assets:	​	​	​	​	​	​	​
Property, plant and mine development	​	$	1,001	​	$	1,400	​
Inventory	​	​	71	​	​	74	​
Reclamation and remediation	​	​	771	​	​	543	​
Net operating losses, capital losses and tax credits	​	​	1,683	​	​	1,078	​
Investment in partnerships and subsidiaries	​	​	31	​	​	121	​
Employee-related benefits	​	​	123	​	​	142	​
Derivative instruments and unrealized loss on investments	​	​	85	​	​	84	​
Foreign Exchange and Financing Obligations	​	​	159	​	​	87	​
Silver Streaming Agreement	​	​	396	​	​	—	​
Other	​	​	224	​	​	164	​
​	​	​	4,544	​	​	3,693	​
Valuation allowances	​	​	(3,112)	​	​	(2,994)	​
​	​	$	1,432	​	$	699	​
Deferred income tax liabilities:	​	​	​	​	​	​	​
Property, plant and mine development	​	$	(2,629)	​	$	(741)	​
Inventory	​	​	(100)	​	​	(135)	​
Derivative instruments and unrealized gain on investments	​	​	(508)	​	​	(5)	​
Other	​	​	(53)	​	​	(29)	​
​	​	​	(3,290)	​	​	(910)	​
Net deferred income tax assets (liabilities)	​	$	(1,858)	​	$	(211)	​

​

These amounts reflect the classification and presentation that is reported for each tax jurisdiction in which the Company operates.

Valuation of Deferred Tax Assets

The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the recent pretax losses and/or expectations of future pretax losses. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, a valuation allowance has been recorded in Peru. However, the amount of the deferred tax asset considered realizable could be adjusted if estimates of future taxable income during the carryforward

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

period are increased, if objective negative evidence in the form of cumulative losses is no longer present or if additional weight were given to subjective evidence such as our projections for growth.

​

During 2019, the Company released net valuation allowance of $296 to tax expense. The acquisition of Goldcorp increased the Company’s valuation allowance on deferred tax assets by $521. The Company reclassified valuation allowance of $371 to assets held for sale. There were additional valuation allowance increases related to other components of the financial statements of $263.

Refer to Note 2 for additional risk factors that could impact the Company’s ability to realize the deferred tax assets.

Tax Loss Carryforwards, Foreign Tax Credits, Canadian Tax Credits, and AMT Credits

At December 31, 2019 and 2018, the Company had (i) $1,754 and $659 of net operating loss carry forwards, respectively; and (ii) $658 and $703 of tax credit carry forwards, respectively. At December 31, 2019 and 2018, $504 and $516, respectively, of net operating loss carry forwards are attributable to the U.S., Australia and France for which current tax law provides no expiration period. The net operating loss carry forward in Canada of $731 will expire by 2038. The net operating loss carryforward in Argentina of $103 will expire in 2024. The net operating loss carryforward in Mexico of $416 will expire in 2029.

Tax credit carry forwards for 2019 and 2018 of $489 and $651, respectively, consist of foreign tax credits available in the United States; substantially all such credits not utilized will expire at the end of 2029. Canadian tax credits for 2019 and 2018 of $134 and $26, respectively, consist of investment tax credits and minimum mining tax credits. Canadian investment tax credits of $84 will substantially expire by 2035 and the other Canadian tax credits of $50 do not expire. Other credit carry forwards at the end of 2019 and 2018 in the amounts of $35 and $26, respectively, represent alternative minimum tax credits attributable to the Company’s U.S. operations for which the current tax law provides no period of expiration and which will be refunded by the end of 2023.

Company’s Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, exclusive of interest and penalties, is as follows:

​

​	​	​	​	​	​	​	​	​	​	​
​		2019			2018			2017
Total amount of gross unrecognized tax benefits at beginning of year	​	$	43	​	$	68	​	$	68	​
Additions due to acquisition of Goldcorp	​	​	350	​	​	—	​	​	—	​
Additions for tax positions of prior years	​	​	1	​	​	1	​	​	(27)	​
Additions for tax positions of current year	​	​	34	​	​	2	​	​	30	​
Reductions due to settlements with taxing authorities	​	​	(102)	​	​	(28)	​	​	—	​
Reductions due to lapse of statute of limitations	​	​	—	​	​	—	​	​	(3)	​
Total amount of gross unrecognized tax benefits at end of year	​	$	326	​	$	43	​	$	68	​

​

At December 31, 2019, 2018 and 2017, $459, $11 and $72, respectively, represent the amount of unrecognized tax benefits, inclusive of interest and penalties that, if recognized, would impact the Company’s effective income tax rate.

The Company operates in numerous countries around the world and is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company’s business conducted within the country involved.

The acquisition of Goldcorp increased the Company’s unrecognized tax benefits, inclusive of interest and penalties, by $417 predominantly due to transfer pricing matters and contested credits.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Australian Taxation Office (“ATO”) is conducting a limited review of the Company’s prior year tax returns. The ATO is focused on reviewing an internal reorganization executed in 2011 when Newmont completed a restructure of the shareholding in the Company’s Australian subsidiaries. To date, the Company has responded to inquiries from the ATO and provided them with supporting documentation for the transaction and the Company’s associated tax positions. One aspect of the ATO review relates to an Australian capital gains tax that applies to sales or transfers of stock in certain types of entities. In the fourth quarter of 2017, the ATO notified the Company that it believes the 2011 reorganization is subject to capital gains tax of approximately $83 (including interest and penalties). The Company disputes this conclusion and intends to vigorously defend its position that the transaction is not subject to this tax. In the fourth quarter of 2017, the Company made a $25 payment to the ATO and lodged an Appeal with the Australian Federal Court to preserve its right to contest the ATO conclusions on this matter. The Company reflects this payment as a receivable as it believes that it will ultimately prevail in this dispute. The Company continues to monitor the status of the ATO’s review which it expects to continue into 2020.

On February 5, 2020, the Guatemalan Tax Authority issued a notice of assessment to Newmont’s Guatemalan subsidiary, Montana Explorada de Guatemala, S.A. for the years 2015 and 2016. The assessment primarily relates to a disagreement over depreciation and depletion deductions claimed in these years. The assessment levies an additional $17 and $6 of tax expense and penalties for 2015 and 2016, respectively. Newmont intends to vigorously dispute this assessment based on the technical merits of the related positions.

The Company and/or subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for years before 2013. As a result of (i) statute of limitations that will begin to expire within the next 12 months in various jurisdictions, and (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions, the Company believes that it is reasonably possible that the total amount of its unrecognized income tax liability will decrease between $95 and $150 in the next 12 months.

The Company’s practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income and mining tax expense. At December 31, 2019 and 2018, the total amount of accrued income-tax-related interest and penalties included in the Consolidated Balance Sheets was $166 and $2, respectively. During 2019, 2018, and 2017 the Company accrued $29, released $17, and accrued $2 of interest and penalties, respectively, through the Consolidated Statements of Operations.

Other

No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.

NOTE 12 EQUITY INCOME (LOSS) OF AFFILIATES

​

​	​	​	​	​	​	​	​	​	​
​	Years Ended December 31,								​
​	2019			2018			2017
Pueblo Viejo Mine	$	124	​	$	—	​	$	—	​
Alumbrera Mine	​	(15)	​	​	—	​	​	—	​
Continental Gold, Inc.	​	(6)	​	​	—	​	​	—	​
Minera La Zanja S.R.L.	​	(6)	​	​	(10)	​	​	(5)	​
Norte Abierto Project	​	(2)	​	​	—	​	​	—	​
TMAC Resources Inc.	​	(1)	​	​	(16)	​	​	(6)	​
Euronimba Ltd.	​	(1)	​	​	(7)	​	​	(5)	​
NuevaUnión Project	​	1	​	​	—	​	​	—	​
Maverix Metals Inc.	​	1	​	​	—	​	​	—	​
​	$	95	​	$	(33)	​	$	(16)	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

On April 18, 2019, as a part of the Newmont Goldcorp transaction, the Company acquired interests in the Pueblo Viejo mine, the NuevaUnión project, the Norte Abierto project and the Alumbrera mine. The Company determined these investments qualified as equity method investments.

​

Refer to Note 20 for additional information about the above equity method investments.

NOTE 13 DISCONTINUED OPERATIONS

The details of our Net income (loss) from discontinued operations, net of tax are set forth below:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Holt royalty obligation	​	$	(84)	​	$	57	​	$	(44)	​
Batu Hijau contingent consideration and other (1)	​	​	12	​	​	4	​	​	6	​
Net income (loss) from discontinued operations	​	$	(72)	​	$	61	​	$	(38)	​

(1) See Note 19 for details on the Batu Hijau contingent consideration.

The Holt Royalty Obligation

Discontinued operations include a retained royalty obligation (“Holt”) to Holloway Mining Company. Holloway Mining Company, which owned the Holt-McDermott property, was sold to St. Andrew Goldfields Ltd. (“St. Andrew”) in 2006. St. Andrew was acquired by Kirkland Lake Gold Ltd. (formerly known as Kirkland Lake Gold Inc.) in January 2016. In 2009, the Superior Court issued a decision finding Newmont Canada Corporation (“Newmont Canada”) liable for a royalty on production from Holt, which Newmont Canada appealed. In May 2011, the Ontario Court of Appeal upheld the Superior Court ruling finding Newmont liable for the royalty obligation, which equals 0.013% of net smelter returns multiplied by the quarterly average gold price, minus a 0.013% of net smelter returns. There is no cap on the royalty and it will increase or decrease with changes in gold price, discount rate, and gold production scenarios. Refer to Note 18 for additional information on the Holt royalty.

At December 31, 2019 and 2018, the estimated fair value of the Holt royalty obligation was $257 and $161, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Net income (loss) from discontinued operations, net of tax. For the years ended 2019, 2018 and 2017, the Company recorded a gain (loss) of $(84), $57 and $(44), net of tax benefit (expense) of $22, $(15) and $24, respectively, related to the Holt royalty obligation.

Cash Flows

Net cash used in operating activities of discontinued operations for the year ended December 31, 2019, 2018 and 2017, includes $10, $10 and $12, respectively, related to the Holt royalty obligation, and $-, $-, and $3, respectively, related to closing costs for the sale of Batu Hijau.

NOTE 14 NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS FROM CONTINUING OPERATIONS

​

​	​	​	​	​	​	​	​	​	​
​	​								​
​	Years Ended December 31,								​
​	2019		​	2018		​	2017
Merian	$	78	​	$	71	​	$	69	​
Yanacocha (1)	​	1		​	(32)		​	(63)	​
Other	​	—	​	​	—	​	​	(1)	​
​	$	79	​	$	39	​	$	5	​

(1)	Included in Yanacocha is $-, $(1), and $- gain (loss) attributable to the Contingently redeemable noncontrolling interest for the years ended December 31, 2019, 2018, and 2017, respectively.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​

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 Consolidated Financial Statements as the primary beneficiary of Merian, which is a variable interest entity.

​

In December 2017, 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 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. The Company continues to consolidate Yanacocha in its Consolidated Financial Statements under the voting interest model.

​

NOTE 15 NEWMONT EQUITY AND NET INCOME (LOSS) PER COMMON SHARE

Newmont Common Stock

In September 2018, Newmont filed a shelf registration statement on Form S-3 under which it can issue an indeterminate number or amount of common stock, preferred stock, debt securities, guarantees of debt securities and warrants from time to time at indeterminate prices, subject to the limitations of the Delaware General Corporation Law, our certification of incorporation and our bylaws. It also includes the ability to resell an indeterminate amount of common stock, preferred stock and debt securities from time to time upon exercise of warrants or conversion of convertible securities.

In order to consummate the Newmont Goldcorp transaction, the Company amended its Restated Certificate of Incorporation to increase Newmont’s authorized number of shares of common stock from 750 million to 1.28 billion, as approved by Newmont shareholders at the April 11, 2019 special meeting of stockholders.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

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. 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.

​

​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Net income (loss) attributable to Newmont stockholders:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	2,877	​	$	280	​	$	(76)	​
Discontinued operations	​	​	(72)	​	​	61	​	​	(38)	​
​	​	$	2,805	​	$	341	​	$	(114)	​
​	​	​	​	​	​	​	​	​	​	​
Weighted average common shares (millions):	​	​	​	​	​	​	​	​	​	​
Basic	​	​	735	​	​	533	​	​	533	​
Effect of employee stock-based awards	​	​	2	​	​	2	​	​	2	​
Diluted	​	​	737	​	​	535	​	​	535	​
​	​	​	​	​	​	​	​	​	​	​
Net income (loss) per common share attributable to Newmont stockholders: (1)	​	​	​	​	​	​	​	​	​	​
Basic:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	3.92	​	$	0.53	​	$	(0.14)	​
Discontinued operations	​	​	(0.10)	​	​	0.11	​	​	(0.07)	​
​	​	$	3.82	​	$	0.64	​	$	(0.21)	​
Diluted:	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	3.91	​	$	0.53	​	$	(0.14)	​
Discontinued operations	​	​	(0.10)	​	​	0.11	​	​	(0.07)	​
​	​	$	3.81	​	$	0.64	​	$	(0.21)	​

(1)	Per share measures may not recalculate due to rounding.

​

On April 18, 2019, the Company issued 285 million shares related to the Newmont Goldcorp transaction. For additional information related to the Newmont Goldcorp transaction, see Note 3.

During the years ended December 31, 2019, 2018 and 2017, the Company repurchased and retired approximately 12 million, 2.7 million, and nil shares of its common stock for $479, $98 and $-, respectively. Approximately 0.7 million of the shares repurchased and retired in the year ended December 31, 2018 related to common stock that was held by participants in the Retirement Savings Plan of Newmont and Retirement Savings Plan for Hourly-Rated Employees of Newmont. During the years ended December 31, 2019, 2018 and 2017, the Company withheld 1.4 million, 1.0 million and 0.4 million shares, respectively for payments of employee withholding taxes related to the vesting of stock awards.

The Company reported a loss from continuing operations attributable to Newmont stockholders for the year ended December 31, 2017. Therefore, the potentially dilutive effects at December 31, 2017 were not included in the computation of diluted loss per common share attributable to Newmont stockholders because their inclusion would have been anti-dilutive to the computation.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 16 EMPLOYEE-RELATED BENEFITS

​

​	​	​	​	​	​	​	​
​	​	At December 31,					​
​		2019			2018
Current:	​	​	​	​	​	​	​
Accrued payroll and withholding taxes	​	$	320	​	$	263	​
Peruvian workers’ participation and other bonuses	​	​	17	​	​	19	​
Employee pension benefits	​	​	7	​	​	5	​
Other post-retirement benefit plans	​	​	6	​	​	6	​
Accrued severance	​	​	1	​	​	2	​
Other employee-related payables	​	​	10	​	​	10	​
​	​	$	361	​	$	305	​
Non-current:	​	​	​	​	​	​	​
Employee pension benefits	​	$	115	​	$	149	​
Accrued severance	​	​	228	​	​	163	​
Other post-retirement benefit plans	​	​	80	​	​	76	​
Other employee-related payables	​	​	25	​	​	13	​
​	​	$	448	​	$	401	​

​

Pension and Other Benefit Plans

The Company provides defined benefit pension plans to eligible employees. Benefits are generally based on years of service and the employee’s average annual compensation. Various international pension plans are based on local laws and requirements. Pension costs are determined annually by independent actuaries and pension contributions to the qualified plans are made based on funding standards established under the Employee Retirement Income Security Act of 1974, as amended.

The following tables provide a reconciliation of changes in the plans’ benefit obligations and assets’ fair values for 2019 and 2018:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Pension Benefits					​	Other Benefits					​
​		2019			2018			2019			2018
Change in benefit obligation:	​	​	​	​	​	​	​	​	​	​	​	​	​
Benefit obligation at beginning of year	​	$	1,063	​	$	1,121	​	$	82	​	$	86	​
Plans acquired due to Goldcorp acquisition	​	​	49	​	​	—	​	​	4	​	​	—	​
Service cost	​	​	31	​	​	31	​	​	1	​	​	1	​
Interest cost	​	​	47	​	​	41	​	​	4	​	​	3	​
Actuarial loss (gain)	​	​	141	​	​	(87)	​	​	6	​	​	(5)	​
Foreign currency exchange (gain) loss	​	​	1	​	​	—	​	​	—	​	​	—	​
Restructuring benefits	​	​	8	​	​	—	​	​	—	​	​	—	​
Curtailment loss (gain)	​	​	(11)	​	​	—	​	​	(7)	​	​	—	​
Amendments	​	​	(11)	​	​	—	​	​	—	​	​	—	​
Benefits paid	​	​	(51)	​	​	(43)	​	​	(4)	​	​	(3)	​
Projected benefit obligation at end of year	​	$	1,267	​	$	1,063	​	$	7	​	$	—	​
Accumulated benefit obligation	​	$	1,256	​	$	1,038	​	$	86	​	$	82	​
Change in fair value of assets:	​	​	​	​	​	​	​	​	​	​	​	​	​
Fair value of assets at beginning of year	​	$	909	​	$	985	​	$	—	​	$	—	​
Plans acquired due to Goldcorp acquisition	​	​	41	​	​	—	​	​	—	​	​	—	​
Actual return on plan assets	​	​	180	​	​	(62)	​	​	—	​	​	—	​
Employer contributions	​	​	65	​	​	29	​	​	4	​	​	3	​
Foreign currency exchange (gain) loss	​	​	1	​	​	—	​	​	—	​	​	—	​
Benefits paid	​	​	(51)	​	​	(43)	​	​	(4)	​	​	(3)	​
Fair value of assets at end of year	​	$	1,145	​	$	909	​	$	—	​	$	—	​
Unfunded status, net	​	$	122	​	$	154	​	$	86	​	$	82	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company’s qualified pension plans are funded with cash contributions in compliance with Internal Revenue Service rules and regulations. The Company’s non-qualified and other benefit plans are currently not funded, but exist as general corporate obligations. The information contained in the above tables presents the combined funded status of qualified and non-qualified plans. As of December 31, 2019 and 2018, all pension benefit plans had accumulated benefit obligations in excess of the fair value of assets. The Company reviews its retirement benefit programs on a regular basis and will consider market conditions and the funded status of its qualified pension plans in determining whether additional contributions are appropriate in calendar year 2020.

The significant assumptions used in measuring the Company’s benefit obligation were mortality assumptions and discount rate.

The mortality assumptions used to measure the pension and other post retirement obligation incorporate future mortality improvements from tables published by the Society of Actuaries. In October 2014, the Society of Actuaries released RP-2014 mortality tables with MP-2014 generational projection scales. These mortality scales have been updated by the Society of Actuaries every year since 2014. The Company utilized RP-2014 and MP-2018 to measure the pension and other post retirement obligations as of December 31, 2018. In October 2019, the Society of Actuaries released a new mortality table, Pri-2012. The Company utilized Pri-2012 mortality tables and MP-2019 generational projection scales to measure the pension and other post retirement obligations as of December 31, 2019.

Yield curves matching the Company’s benefit obligations were derived using a model based on high quality corporate bond data from Bloomberg. The model develops a discount rate by selecting a portfolio of high quality corporate bonds whose projected cash flows match the projected benefit payments of the plan. The resulting curves were used to identify a weighted average discount rate for the Company of 3.49% and 4.40% at December 31, 2019 and 2018, respectively, based on the timing of future benefit payments.

Actuarial losses (gains) of $147 were recognized in the year ended December 31, 2019, primarily due to a decrease in discount rate from the prior year. Actuarial losses (gains) of $(92) were recognized in the year ended December 31, 2018, primarily due to an increase in the discount rate from the prior year.

The following table provides the net pension and other benefits amounts recognized in the Consolidated Balance Sheets at December 31:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Pension Benefits					​	Other Benefits					​
​		2019			2018			2019			2018
Accrued employee benefit liability	​	$	122	​	$	154	​	$	86	​	$	82	​
Accumulated other comprehensive income (loss):	​	​	​	​	​	​	​	​	​	​	​	​	​
Net actuarial gain (loss)	​	​	(396)	​	​	(412)	​	​	10	​	​	19	​
Prior service credit	​	​	31	​	​	39	​	​	5	​	​	23	​
​	​	​	(365)	​	​	(373)	​	​	15	​	​	42	​
Less: Income taxes	​	​	73	​	​	78	​	​	(4)	​	​	(9)	​
​	​	$	(292)	​	$	(295)	​	$	11	​	$	33	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The following table provides components of the Total benefit cost (credit), inclusive of the net periodic pension and other benefits costs (credits), for the years ended December 31:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Pension Benefit Costs (Credits)								​	Other Benefit Costs (Credits)								​
​		2019			2018			2017			2019			2018			2017
Pension benefit costs (credits), net (1);	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Service cost	​	$	31	​	$	31	​	$	29	​	$	1	​	$	1	​	$	1	​
Interest cost	​	​	47	​	​	41	​	​	44	​	​	4	​	​	3	​	​	4	​
Expected return on plan assets	​	​	(66)	​	​	(68)	​	​	(63)	​	​	—	​	​	—	​	​	—	​
Amortization, net	​	​	22	​	​	32	​	​	30	​	​	(8)	​	​	(7)	​	​	(7)	​
Net periodic benefit cost (credit)	​	$	34	​	$	36	​	$	40	​	$	(3)	​	$	(3)	​	$	(2)	​
Settlements (2)	​	​	—	​	​	—	​	​	5	​	​	—	​	​	—	​	​	—	​
(Gain) loss on curtailment	​	​	(10)	​	​	—	​	​	—	​	​	(18)	​	​	—	​	​	—	​
Restructuring (benefit) loss	​	​	8	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Total benefit cost (credit)	​	$	32	​	$	36	​	$	45	​	$	(21)	​	$	(3)	​	$	(2)	​

(1)	Service costs are included in Costs applicable to sales or General and administrative. The other components of the total benefit costs are included in Other income, net.

(2)	In 2019 and 2018, settlements were included in Other income, net as a result of adopting ASU No. 2017-07. In 2017, settlements were included in Other expense, net.

​

The following table provides the components recognized in Other comprehensive income (loss) for the years ended December 31:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Pension Benefits								​	Other Benefits								​
​		2019			2018			2017			2019			2018			2017
Net loss (gain) (1)	​	$	2	​	$	42	​	$	5	​	$	8	​	$	(6)	​	$	—	​
Amortization, net	​	​	(22)	​	​	(32)	​	​	(30)	​	​	8	​	​	7	​	​	7	​
Accelerated prior service credit (cost) due to curtailment	​	​	12	​	​	—	​	​	—	​	​	11	​	​	—	​	​	—	​
Settlements	​	​	—	​	​	—	​	​	(5)	​	​	—	​	​	—	​	​	—	​
Total recognized in other comprehensive income (loss)	​	$	(8)	​	$	10	​	$	(30)	​	$	27	​	$	1	​	$	7	​
Total benefit cost (credit) and other comprehensive income (loss)	​	$	24	​	$	46	​	$	15	​	$	6	​	$	(2)	​	$	5	​

(1)	Includes curtailment gain of $(13), $- and $- for the years ended December 31, 2019, 2018 and 2017, respectively.

​

Actuarial losses in excess of 10 percent of the greater of the projected benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service period of the current active participants.

The significant assumptions used in measuring the Company’s Total benefit cost (credit) and other comprehensive income (loss) were discount rate and expected return on plan assets:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Pension Benefits					​	Other Benefits					​
​	​	Years Ended December 31,					​	Years Ended December 31,					​
​		2019		2018		2017		2019		2018		2017
Weighted average assumptions used in measuring the net periodic benefit cost:	​	​	​	​	​	​	​	​	​	​	​	​	​
Discount rate	​	4.40	%	3.77	%	4.36	%	4.40	%	3.77	%	4.36	%
Expected return on plan assets	​	6.75	%	7.25	%	7.25	%	N/A	​	N/A	​	N/A	​

​

The expected long-term return on plan assets used for each period in the three years ended December 31, 2019 was determined based on an analysis of the asset returns over multiple time horizons for the Company’s actual plan and for other comparable U.S. corporations. At December 31, 2019, Newmont has estimated the expected long-term return on plan assets to be 6.75% which will be used in determining future net periodic benefit cost. The Company determines the long-term return on plan assets by considering the most recent capital market forecasts, the plans’ current asset allocation and the actual return on plan assets in comparison to the expected return on assets over the last 5 years. The average actual return on plan assets during the 31 years ended December 31, 2019

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

approximated 8.36%.

Newmont has two pension calculations for salaried U.S. employees. The first is a “Final Average Pay” pension calculation which pays a monthly amount to employees in retirement based, in part, on their highest five year eligible earnings and years of credited service. The second is the “Stable Value” calculation which provides a lump sum payment to employees upon retirement. The amount of the lump sum is the total of annual accruals based on the employee’s eligible earnings and years of service. The benefits accrued under the Final Average Pay formula were frozen on June 30, 2014 for those eligible employees. Beginning July 1, 2014, all future accruals are based on the terms and features of the Stable Value calculation.

The pension plans employ an independent investment firm which invests the assets of the plans in certain approved funds that correspond to specific asset classes with associated target allocations. The goal of the pension fund investment program is to achieve prudent actuarial funding ratios while maintaining acceptable risk levels. The investment performance of the plans and that of the individual investment firms is measured against recognized market indices. The performance of the pension funds are monitored by an investment committee comprised of members of the Company’s management, which is advised by an independent investment consultant. With the exception of global capital market economic risks, the Company has identified no significant portfolio risks associated to asset classes. The following is a summary of the target asset allocations for 2019 and the actual asset allocation at December 31, 2019.

​

​	​	​	​	​	​
​	​	​	​	Actual at	​
​	​	​	​	December 31,	​
Asset Allocation		Target		2019
U.S. equity investments	​	11	%	11	%
International equity investments	​	12	%	12	%
World equity fund (U.S. and International equity investments)	​	20	%	21	%
High yield fixed income investments	​	4	%	4	%
Fixed income investments	​	45	%	44	%
Other	​	8	%	8	%

​

The following table sets forth the Company’s pension plan assets measured at fair value at December 31, 2019 and 2018:

​

​	​	​	​	​	​	​	​
​	​	Fair Value at December 31,					​
​		2019			2018
Plan Assets:	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	4	​	$	3	​
Commingled funds	​	​	1,141	​	​	906	​
​	​	$	1,145	​	$	909	​

​

Cash and cash equivalent instruments are valued based on quoted market prices in active markets, which are primarily invested in money market securities and U.S. Treasury securities.

The pension plans’ commingled fund investments are managed by several fund managers and are valued at the net asset value per share for each fund. Although the majority of the underlying assets in the funds consist of actively traded equity securities and bonds, the unit of account is considered to be at the fund level. These funds require less than a month’s notice for redemptions and can be redeemed at the net asset value per share.

The assumed health care trend rate used to measure the expected cost of benefits is 6.25% in 2020 and decreases gradually each year to 5.00% in 2025, which is used thereafter.

Cash Flows

Benefit payments expected to be paid to pension plan participants are as follows: $371 in 2020, $62 in 2021, $63 in 2022, $64 in 2023, $64 in 2024 and $307 in total over the five years from 2025 through 2029. The increase in expected benefit payments in 2020 reflects the impact of the formation of NGM and current year plan amendments. Benefit payments made to other benefit plan

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

participants are expected to be as follows: $6 in 2020, $6 in 2021, $6 in 2022, $6 in 2023, $6 in 2024 and $27 in total over the five years from 2025 through 2029.

Savings Plans

The Company has two qualified defined contribution savings plans in the U.S.: one that covers salaried and non-union hourly employees and one that covers substantially all hourly union employees. In addition, the Company has one non-qualified supplemental savings plan for salaried employees whose benefits under the qualified plan are limited by federal regulations. When an employee meets eligibility requirements, the Company matches 100% of employee contributions of up to 6% of eligible earnings for the salaried and hourly union plans. Hourly non-union employees receive an additional retirement contribution to the participant’s retirement contribution account equal to an amount which is paid and determined by the Company. Matching contributions are made in cash.

NOTE 17 STOCK-BASED COMPENSATION

The Company has stock incentive plans for directors, executives and eligible employees. Stock incentive awards include restricted stock units (“RSUs”), performance leveraged stock units (“PSUs”), and strategic stock units (“SSUs”). The SSU program was discontinued and no additional SSUs were granted after 2015. The Company issues new shares of common stock to satisfy exercises and vesting under all of its stock incentive awards. Prior to 2012, the Company also granted options to purchase shares of stock with exercise prices not less than fair market value of the underlying stock at the date of grant. At December 31, 2019, 5,056,988 shares were authorized for future stock incentive plan awards.

Additionally, on April 18, 2019, in connection with the Newmont Goldcorp transaction, the Company exchanged certain equity settled Goldcorp share awards and Goldcorp stock options, and also assumed certain other cash-settled Goldcorp share awards.

Restricted Stock Units

The Company grants RSUs to directors, executives and eligible employees. Awards are determined as a target percentage of base salary and, for eligible employees, are subject to a personal performance factor. For all RSU grants issued prior to February 2018, RSU awards vest over periods of three years or more, unless the employee becomes retirement eligible prior to the vesting date. If an employee becomes retirement eligible and retires prior to the vesting date, the remaining awards vest on a pro rata basis at the retirement date. Starting with the February 2018 grant, if the employee becomes retirement eligible at any point during the vesting period, the entire award is considered earned after the later of the one-year service period from the grant date or the retirement eligible date. Prior to vesting, holders of RSUs do not have the right to vote the underlying shares; however, directors, executives and eligible employees accrue dividend equivalents on their RSUs, which are paid at the time the RSUs vest. The accrued dividend equivalents are not paid if RSUs are forfeited. The RSUs are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one share of the Company’s common stock for each restricted stock unit.

Goldcorp Restricted Stock Units

In connection with the Newmont Goldcorp transaction, the Company exchanged 4.1 million outstanding Goldcorp RSUs (“Goldcorp RSUs”) with an acquisition date fair value of $45 for 1.4 million Newmont RSUs. The Company allocated $4 to purchase consideration based on the portion of pre-acquisition services provided. The Company will recognize the remaining $41 in earnings ratably over the requisite service period, with a corresponding increase to equity.

Goldcorp Phantom Restricted Share Units

In connection with the Newmont Goldcorp transaction, the Company assumed 1.3 million Goldcorp Phantom RSUs (“Goldcorp Phantom RSUs”) and converted the number outstanding to 0.4 million to adjust for the difference between the Goldcorp share price and the Newmont share price at the acquisition date. The Company agreed to settle the Goldcorp Phantom RSUs in cash using the closing price of Newmont shares on the vesting date. Due to the cash settlement provision, these awards are classified as liability awards and their fair value is re-measured at the end of each reporting period until vested. The Goldcorp Phantom RSUs had an

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

acquisition date fair value of $14, of which, $1 has been allocated to purchase consideration based on the portion of services provided prior to acquisition. The Company recognizes the liability and expense for the remaining portion of the awards ratably over the requisite service period giving effect to the adjusted fair value at the end of each reporting period. Based on the fair value of $43.45 per unit as of December 31, 2019, there is $10 of unrecognized compensation costs related to the unvested Goldcorp Phantom RSUs. This cost is expected to be recognized over a weighted average period of approximately 1 year.

Performance Stock Units

The Company grants PSUs to eligible executives, based upon certain measures of shareholder return. These measures include absolute shareholder return and relative shareholder return compared to our proxy peer group. The actual number of PSUs that vest are determined at the end of a three year performance period.

Goldcorp Performance Share Units

In connection with the Newmont Goldcorp transaction, the Company assumed 2.4 million Goldcorp PSUs (“Goldcorp PSUs”) and converted the number of units outstanding to 0.8 million based on the difference between the Goldcorp share price and the Newmont share price at the acquisition date. The Company agreed to settle the Goldcorp PSUs in cash using a 30-day historical weighted average price of Newmont shares on the vesting date and a performance multiplier of 100 percent. Due to the cash settlement provision, these awards are classified as liability awards and their fair value is re-measured at the end of each reporting period until vested. The Goldcorp PSUs had an acquisition date fair value of $28, of which, $9 has been allocated to purchase consideration based on the portion of services provided prior to the acquisition. The Company recognizes the liability and expense for the remaining portion of the awards ratably over the requisite service period, giving effect to the adjusted fair value at the end of each reporting period. Based on the fair value of $43.45 per unit at December 31, 2019, there is $3 of unrecognized compensation costs related to the unvested Goldcorp PSUs. This cost is expected to be recognized over a weighted average period of approximately 1.3 years.

At December 31, 2019, the Company included Employee-related benefits of $12 related to the cash-settled Goldcorp PSUs and Goldcorp Phantom RSUs on its Consolidated Balance Sheet.

Employee Stock Options

Stock options granted under the Company’s stock incentive plans vest over periods of three years or more and are exercisable over a period of time not to exceed 10 years from the grant date. The value of each option award is estimated at the grant date using the Black-Scholes option pricing model. There were no options granted in 2019, 2018 or 2017. At December 31, 2019, there were 572,499 options outstanding and exercisable, at a weighted average exercise price of $57.64, with a weighted average remaining contractual life of 1 year.

Goldcorp Options

In connection with the Newmont Goldcorp transaction, the Company exchanged 3.6 million outstanding Goldcorp options (“Goldcorp options”) with an acquisition date fair value of $2 for 1.2 million Newmont options with the right to exercise each Newmont option for one share of Newmont common stock. The full $2 acquisition date fair value of Goldcorp options was allocated to purchase consideration based on all services being provided prior to the acquisition. At December 31, 2019, there were 1.1 million options outstanding and exercisable, at a weighted average exercise price of $54.70 and a weighted average remaining contractual life of 2.7 years.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Stock-Based Compensation Activity

A summary of the status and activity of non-vested RSUs and PSUs for the year ended December 31, 2019 is as follows:

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	RSU				​	PSU				​
​	​	​	​	Weighted		​	​	​	Weighted		​
​	​	​	​	Average		​	​	​	Average		​
​	​	Number of	​	Grant-Date		​	Number of	​	Grant-Date		​
​	​	Units	​	Fair Value		​	Units	​	Fair Value		​
Non-vested at beginning of year		2,166,698		$	34.75		2,244,031		$	42.73
Granted	​	2,949,003	​	$	34.95	​	1,773,870	​	$	39.31	​
Vested	​	(1,695,287)	​	$	33.37	​	(1,936,556)	​	$	37.85	​
Forfeited	​	(352,246)	​	$	36.43	​	(127,548)	​	$	42.66	​
Non-vested at end of year	​	3,068,168	​	$	35.51	​	1,953,797	​	$	44.46	​

​

The total intrinsic value and fair value of RSUs that vested in 2019, 2018 and 2017 was $60, $46 and $43, respectively. The total intrinsic value and fair value of PSUs that vested in 2019, 2018 and 2017 was $71, $68 and $56, respectively. The total intrinsic value and fair value of SSUs that vested in 2019, 2018 and 2017 was $-, $- and $6, respectively.

Cash flows resulting from excess tax benefits are classified as part of cash flows from operating activities. Excess tax benefits are realized tax benefits from tax deductions for vested RSUs, settled PSUs, and exercised options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. The Company recorded $3, $3 and $5 in excess tax benefits for the years ended December 31, 2019, 2018 and 2017, respectively.

At December 31, 2019, there was $37 and $33 of unrecognized compensation costs related to the unvested RSU and PSUs, respectively. This cost is expected to be recognized over a weighted average period of approximately two years.

The Company recognized stock-based compensation as follows:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended								​
​	​	December 31,								​
​		2019			2018			2017
Stock-based compensation:	​	​	​	​	​	​		​	​	​
Restricted stock units	​	$	68	​	$	45	​	$	34	​
Performance leveraged stock units	​	​	29	​	​	31	​	​	35	​
Goldcorp performance share units	​	​	17	​	​	—	​	​	—	​
Goldcorp phantom restricted share units	​	​	7	​	​	—	​	​	—	​
Strategic stock units	​	​	—	​	​	—	​	​	1	​
​	​	$	121	​	$	76	​	$	70	​

​

​

​

NOTE 18 FAIR VALUE ACCOUNTING

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

	Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

	Level 2	Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

	Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

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 December 31, 2019											​
​	​	Total			Level 1			Level 2			Level 3
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,243	​	$	2,243	​	$	—	​	$	—	​
Restricted cash	​	​	106	​	​	106	​	​	—	​	​	—	​
Trade receivable from provisional concentrate sales, net	​	​	331	​	​	—	​	​	331	​	​	—	​
Marketable equity securities (Note 20) (1)	​	​	376	​	​	357	​	​	19	​	​	—	​
Marketable debt securities (Note 20)	​	​	39	​	​	—	​	​	—	​	​	39	​
Continental conversion option (Note 20)	​	​	51	​	​	—	​	​	51	​	​	—	​
Restricted marketable debt securities (Note 20)	​	​	54	​	​	23	​	​	31	​	​	—	​
Restricted other assets (Note 20)	​	​	1	​	​	1	​	​	—	​	​	—	​
Batu Hijau contingent consideration	​	​	38	​	​	—	​	​	—	​	​	38	​
​	​	$	3,239	​	$	2,730	​	$	432	​	$	77	​
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​
Debt (2)	​	$	7,068	​	$	—	​	$	7,068	​	$	—	​
Diesel derivative contracts	​	​	1	​	​	—	​	​	1	​	​	—	​
Holt royalty obligation (Note 27)	​	​	257	​	​	—	​	​	—	​	​	257	​
Cash-settled Goldcorp share awards	​	​	12	​	​	—	​	​	12	​	​	—	​
​	​	$	7,338	​	$	—	​	$	7,081	​	$	257	​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Fair Value at December 31, 2018											​
​	​	Total			Level 1			Level 2			Level 3
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	3,397	​	$	3,397	​	$	—	​	$	—	​
Restricted cash	​	​	92	​	​	92	​	​	—	​	​	—	​
Trade receivable from provisional concentrate sales, net	​	​	209	​	​	—	​	​	209	​	​	—	​
Marketable equity securities (Note 20) (1)	​	​	127	​	​	114	​	​	13	​	​	—	​
Restricted marketable debt securities (Note 20)	​	​	51	​	​	21	​	​	30	​	​	—	​
Restricted other assets (Note 20)	​	​	6	​	​	6	​	​	—	​	​	—	​
Batu Hijau contingent consideration	​	​	26	​	​	—	​	​	—	​	​	26	​
​	​	$	3,908	​	$	3,630	​	$	252	​	$	26	​
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​
Debt (2)	​	$	4,229	​	$	—	​	$	4,229	​	$	—	​
Diesel derivative contracts	​	​	5	​	​	—	​	​	5	​	​	—	​
Holt royalty obligation (Note 27)	​	​	161	​	​	—	​	​	—	​	​	161	​
​	​	$	4,395	​	$	—	​	$	4,234	​	$	161	​

(1)	Marketable equity securities includes warrants reported in the Maverix Metals Inc. equity method investment balance of $13 and $9 at December 31, 2019 and 2018, respectively.

(2)	Debt is carried at amortized cost. The outstanding carrying value was $6,138 and $4,044 at December 31, 2019 and 2018, respectively. The fair value measurement of debt was based on an independent third party pricing source.

​

The fair values of the derivative instruments in the table above are presented on a net basis. The gross amounts related to the fair value of the derivatives instruments above are included in Note 19. All other fair value disclosures in the above table are presented on a gross basis.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company’s cash and cash equivalents and restricted cash (which includes restricted cash and cash equivalents) are classified within Level 1 of the fair value hierarchy because they are valued using 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 metal 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 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 marketable debt securities consist of an unrestricted convertible debenture with Continental (the “Continental Convertible Debt”). The estimated fair value of the host debt instrument was determined using a discounted cash flow model, with an internally derived discount rate. It has been classified within Level 3 of the fair value hierarchy. Increases in the discount rate will result in a decrease of the Continental Convertible Debt.

​

The Continental conversion option is an embedded derivative in the Continental Convertible Debt agreement, and is further discussed in Note 19. It is valued using a Black-Scholes model using quoted market prices in active markets of the underlying security. As the option itself is not traded on the exchange, this instrument is 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 marketable equity securities, which are classified within Level 1 of the fair value hierarchy as their fair values are based on quoted market 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. Increases in the discount rate will result in a decrease in the Batu Hijau contingent consideration. Increases in the copper price will result in a corresponding increase of the Batu Hijau contingent consideration.

The Company’s derivative instruments consist of fixed forward contracts. These derivative instruments are valued using pricing models, and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, forward curves, measures of volatility, and correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

The estimated 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. Increases in the discount rate will result in a decrease of the Holt royalty obligation. Increases in the gold price and production scenarios will result in a corresponding increase of the Holt royalty obligation.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

The Company’s liability-classified stock-based compensation awards consist of cash-settled Goldcorp share awards which become payable in cash on the vesting date. These awards are valued each reporting period based on the quoted Newmont stock price. As the awards themselves are not traded on the exchange, they are classified within Level 2 of the fair value hierarchy.

The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at December 31, 2019 and 2018:

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31,		​	​	​	​		Range, point estimate
Description	​	2019		​	Valuation technique	​	Significant input		or average
Continental Convertible Debt	​	$	39	​	Discounted cash flow	​	Discount rate	​	​	11.06	%
Batu Hijau contingent consideration	​	$	38	​	Monte Carlo	​	Discount rate	​	​	14.90	%
​	​	​	​	​	​	​	Short-term copper price	​	$	2.67	​
​	​	​	​	​	​	​	Long-term copper price	​	$	3.00	​
Holt royalty obligation	​	$	257	​	Monte Carlo	​	Discount rate (1)	​	​	2.53	%
​	​	​	​	​	​	​	Short-term gold price	​	$	1,481	​
​	​	​	​	​	​	​	Long-term gold price	​	$	1,300	​
​	​	​	​	​	​	​	Gold production scenarios (in 000's of ounces)	​	​	298 - 1,613	​

(1)	The Holt royalty obligation discount rate is calculated as a weighted-average Newmont-specific unsecured borrowing rate, which is weighted by relative fair value of various production scenarios.

​

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31,			​	​	​		Range, point estimate
Description	​	2018			Valuation technique		Significant input		or average
Batu Hijau contingent consideration	​	$	26	​	Monte Carlo	​	Discount rate	​	​	16.60	%
​	​	​	​	​	​	​	Short-term copper price	​	$	2.80	​
​	​	​	​	​	​	​	Long-term copper price	​	$	3.00	​
Holt royalty obligation	​	$	161	​	Monte Carlo	​	Discount rate	​	​	4.11	%
​	​	​	​	​	​	​	Short-term gold price	​	$	1,228	​
​	​	​	​	​	​	​	Long-term gold price	​	$	1,300	​
​	​	​	​	​	​	​	Gold production scenarios (in 000's of ounces)	​	​	302 - 1,544	​

​

The following tables set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities:

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​		​	​		​	​		​	​	​
​	​	Continental		​	Batu Hijau		​	​		​	Holt		​	​
​	​	Convertible		​	Contingent		​	Total		​	Royalty		​	Total
​		Debt (1)			Consideration (2)			Assets			Obligation (2)			Liabilities
Fair value at December 31, 2017	​	$	—	​	$	23	​	$	23	​	$	243	​	$	243
Settlements	​	​	—	​	​	—	​	​	—	​	​	(10)	​	​	(10)
Revaluation	​	​	—	​	​	3	​	​	3	​	​	(72)	​	​	(72)
Fair value at December 31, 2018	​	$	—	​	$	26	​	$	26	​	$	161	​	$	161
Additions and settlements	​	​	33	​	​	—	​	​	33	​	​	(10)	​	​	(10)
Revaluation	​	​	6	​	​	12	​	​	18	​	​	106	​	​	106
Fair value at December 31, 2019	​	$	39	​	$	38	​	$	77	​	$	257	​	$	257

(1)	The unrealized gain (loss) of $4 related to changes in the fair value of the host debt is included in Other comprehensive income. The gain (loss) of $2 related to the debt discount amortization recognized is included in Other income, net.

(2)	The gain (loss) recognized is included in Net income (loss) from discontinued operations.

During the third quarter of 2018, the Company performed a non-recurring fair value measurement (e.g. Level 3 of the fair value hierarchy) in connection with recoverability and impairment tests performed at certain Nevada exploration properties due to the Company’s decision to focus on advancing other projects and at Emigrant due to a change in the mine plan that resulted in a decrease in mine life.

​

The estimated fair value of the Nevada exploration properties was determined using comparable transactions. The estimated fair value of Emigrant’s existing operations was determined using (i) a country specific discount rate of 5.2%, (ii) a short-term gold price

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

of $1,213 based on the 2018 third quarter average of the London PM fix, (iii) a long-term gold price of $1,300, and (iv) updated cash flow information from the Company’s business plan. For further information regarding the impairment charges, see Note 8.

​

NOTE 19 DERIVATIVE INSTRUMENTS

The Company uses hedge programs to mitigate the variability of its operating costs primarily related to diesel price fluctuations. Newmont’s hedge portfolio consists of a series of financially settled fixed forward contracts, which run through the second quarter of 2022 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 December 31, 2019:

​

​	​	​	​	​	​	​	​	​	​
​	​	Expected Maturity Date
​	​	2020		2021		2022		Total/ Average	​
Diesel Fixed Forward Contracts:	​	​	​	​	​	​	​	​	​
South America (1)	​	​	​	​	​	​	​	​	​
Diesel gallons (millions)	​	3	​	1	​	—	​	4	​
Average rate ($/gallon)	​	1.86	​	1.86	​	1.82	​	1.86	​
​	​	​	​	​	​	​	​	​	​
Australia	​	​	​	​	​	​	​	​	​
Diesel barrels (thousands)	​	129	​	102	​	7	​	238	​
Average rate ($/barrel)	​	78.91	​	81.15	​	75.93	​	79.78	​

(1)	In January 2020, the Company settled all diesel fixed forward contracts in South America, which resulted in an immaterial net gain_._

​

Derivative Instrument Fair Values

The fair value of the Company’s derivative instruments designated as cash flow hedges at December 31, 2019 was $1, and was classified in Other non-current liabilities. The fair value of the Company’s derivative instruments designated as cash flow hedges at December 31, 2018 was $2 and $3, and were classified in Other current liabilities and Other non-current liabilities, respectively.

As of December 31, 2019 and 2018, all hedging instruments held by the Company were subject to enforceable master netting arrangements held with 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, in the same commodity 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 December 31, 2019 and 2018, the potential effect of netting derivative assets against liabilities due to the master netting agreement was not significant.

Batu Hijau Contingent Consideration

Consideration received by the Company in conjunction with the sale of PT Newmont Nusa Tenggara in 2016 included certain contingent payment provisions that were determined to be financial instruments that met the definition of a derivative, but do not qualify for hedge accounting, under ASC 815. Contingent consideration of $38 and $26 is included in Other non-current assets in the Company’s Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively. See Note 18 for additional information.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Continental Conversion Option

In March 2019, Newmont entered into a $50 convertible debt agreement with Continental. The debt is convertible into common shares of Continental at a price of C$3.00 per share. The conversion feature has been identified as an embedded derivative, which has been bifurcated from the host instrument and included in the Continental equity method investment balance. The value of the conversion option was $51 as of December 31, 2019. See Notes 18 and 20 for additional information.

Provisional Sales

The Company sells gold, copper, silver, lead and zinc concentrates on a provisional basis. Provisional 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 concentrates at the prevailing indices’ prices at the time of sale. The embedded derivative, which is not designated for hedge accounting treatment, is marked to market through earnings each period prior to final settlement.

The impact to Sales from revenue recognized due to changes in the final pricing is a (decrease) increase of $22, $(9), and $24 for the years ended December 31, 2019, 2018 and 2017, respectively.

At December 31, 2019, Newmont had gold sales of 136,000 ounces priced at an average of $1,518 per ounce, copper sales of 15 million pounds priced at an average price of $2.80 per pound, silver sales of 5 million ounces priced at an average of $17.91 per ounce, lead sales of 40 million pounds priced at an average of $0.88 per pound and zinc sales of 51 million pounds priced at an average of $1.05 per pound, subject to final pricing over the next several months.

NOTE 20 INVESTMENTS

​

​	​	​	​	​	​	​	​
​	​	At December 31, 2019		​	At December 31, 2018		​
Current:	​	​	​	​	​	​	​
Marketable equity securities	​	$	237	​	$	48	​
​	​	​	​	​	​	​	​
Non-current:	​	​	​	​	​	​	​
Marketable equity securities	​	$	126	​	$	70	​
​	​	​	​	​	​	​	​
Equity method investments:	​	​	​	​	​	​	​
Pueblo Viejo Mine (40.0%)	​	​	1,230	​	​	—	​
NuevaUnión Project (50.0%)	​	​	940	​	​	—	​
Norte Abierto Project (50.0%)	​	​	478	​	​	—	​
Continental Gold, Inc. (18.9%)	​	​	164	​	​	—	​
TMAC Resources Inc. (28.0%)	​	​	114	​	​	109	​
Maverix Metals Inc. (25.1%)	​	​	93	​	​	85	​
Alumbrera Mine (37.5%)	​	​	54	​	​	—	​
Minera La Zanja S.R.L. (46.9%)	​	​	—	​	​	7	​
​	​	​	3,073	​	​	201	​
​	​	$	3,199	​	$	271	​
​	​	​	​	​	​	​	​
Non-current restricted investments: (1)	​	​	​	​	​	​	​
Marketable debt securities	​	$	54	​	$	51	​
Other assets	​	​	1	​	​	6	​
​	​	$	55	​	$	57	​

(1)	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 7_._

​

On April 18, 2019, as a part of the Newmont Goldcorp transaction, the Company acquired interests in the Pueblo Viejo mine, the NuevaUnión project, the Norte Abierto project and the Alumbrera mine.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Pueblo Viejo

The Pueblo Viejo mine is located in the Dominican Republic and commenced operations in September 2014. Barrick operates and holds the remaining interest in the mine. At December 31, 2019 the carrying value of Newmont’s equity investment in Pueblo Viejo was lower than the underlying net assets of its investment by $326. This basis difference is being amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine.

​

In June 2009, Goldcorp entered into a $400 shareholder loan agreement with Pueblo Viejo with a term of fifteen years. In April 2012, additional funding of $300 was issued to Pueblo Viejo with a term of twelve years. Both loans bear interest at 95% of LIBOR plus 2.95% which is compounded semi-annually in arrears on February 28 and August 31 of each year. The loans have no set repayment terms. At December 31, 2019, the carrying amount of the Company’s share of shareholder loans to Pueblo Viejo was $425, which is included in the Pueblo Viejo equity method investment. At December 31, 2019, $7 in interest receivable relating to the shareholder loans was also included in the Pueblo Viejo equity method investment.

​

In September 2019, the Company and Barrick entered into a $70 revolving loan facility (“Revolving Facility”) to provide short-term financing to Pueblo Viejo. The Company will fund 40% of the borrowings based on its ownership interest in Pueblo Viejo. Under the terms of the Revolving Facility, borrowings bear interest at LIBOR plus 2.09% and expire on December 31, 2020. There were no borrowings outstanding under the Revolving Facility as of December 31, 2019.

​

The Company purchases its portion (40%) of gold and silver produced from Pueblo Viejo at market price and resells those ounces to third parties. Total payments made to Pueblo Viejo for gold and silver purchased were $445 during the year ended December 31, 2019. These purchases, net of subsequent sales, were included in Other income and the net amount is immaterial. There were no amounts due to or due from Pueblo Viejo for gold and silver purchases as of December 31, 2019.

​

NuevaUnión

The NuevaUnión project is located in Chile and is currently under development. The project is jointly managed by Newmont and Teck Resources, who holds the remaining interest. At December 31, 2019 the carrying value of Newmont’s equity investment in NuevaUnión was lower than the underlying net assets of its investment by $67. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life beginning when commercial production is declared.

​

Norte Abierto

The Norte Abierto project is located in Chile and is currently under development. The project is jointly managed by Newmont and Barrick, who holds the remaining interest. As part of the Newmont Goldcorp transaction, Newmont assumed deferred payments to Barrick to be satisfied through funding a portion of Barrick’s share of project expenditures at the Norte Abierto project. At December 31, 2019, there were $154 of deferred payments included in Other non-current liabilities on the Consolidated Balance Sheet.

​

At December 31, 2019 the carrying value of Newmont’s equity investment in Norte Abierto was lower than the underlying net assets of its investment by $209. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life beginning when commercial production is declared.

​

Continental Gold, Inc.

​

Newmont holds a right to maintain a 19.9% interest in Continental Gold, Inc. (“Continental”). As of December 31, 2019, Newmont’s interest in Continental was 18.9%, which was diluted due to the conversion of convertible debentures held by another investor during the fourth quarter of 2019. The Company accounts for Continental on a quarter lag and adjusts for any material differences between IFRS to U.S. GAAP. Continental owns and is developing the high-grade Buriticá gold project located in Colombia. In May 2017, Newmont purchased 37 million common shares of Continental Gold Inc. (“Continental”) at C$4.00 per share for total consideration of $109.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

During the first quarter of 2019, the Company determined that based on its evolving roles on advisory committees and its support for recent financing events, Newmont had the ability to exercise significant influence over Continental and concluded that the investment qualified as an equity method investment. As a result, the Company reclassified its existing Continental marketable equity security to an equity method investment. The fair value of the marketable equity security was $73, which formed the new basis for the equity method investment.

Additionally, in March 2019, the Company entered into a convertible debt agreement with Continental totaling $50. The debt is convertible into common shares of Continental at a price of C$3.00 per share. The debt is an unrestricted marketable debt security and is classified as available-for-sale. The fair value of the marketable debt security was $39 as of December 31, 2019 and is included in the Continental equity method investment balance. The conversion feature has been identified as an embedded derivative, which has been bifurcated from the host instrument and included in the Continental equity method investment balance. The fair value of the conversion option was $51 as of December 31, 2019. Changes in the conversion option fair value are included in Other Income, net.

During the fourth quarter of 2019, the Company entered into a contractual arrangement to sell its entire interest in Continental, including its convertible debt, for $260 million.

Alumbrera

The Alumbrera mine is located in Argentina. The mine commenced operations in 1998; however, the mine is currently not operating as a production mine as of December 31, 2019. Glencore and Yamana Gold hold the remaining 50% and 12.5% interest, respectively. At December 31, 2019 the carrying value of Newmont’s equity investment in Alumbrera was higher than the underlying net assets of its investment by $67. This basis difference will be amortized into Equity income (loss) of affiliates over the remaining estimated useful life of the mine once operations resume.

The Company, Glencore, and Yamana signed an Integration Agreement in March 2019 through which the parties seek to combine the Agua Rica project with Alumbrera. The Agua Rica project is wholly owned by Yamana. The terms of the Integration Agreement would result in Newmont holding an 18.75% interest in the combined assets. As of December 31, 2019, the Integration Agreement had not been implemented by the parties.

Other

In November 2017, Newmont acquired 2 million TMAC shares at a price of C$7.00 per share for $12. In September 2018, Newmont participated in the TMAC offering acquiring approximately 6 million shares at a price of C$4.25 per share for $19, maintaining its approximate 28.6% ownership interest, which was diluted from 2017 primarily due to the exercise of warrants held by other shareholders. Subsequent to participating in the 2018 TMAC offering, Newmont’s ownership interest has decreased to 28.0% as of December 31, 2019, primarily due to Newmont not exercising its participation rights on private placements that occurred in 2019.

In June 2018, Newmont sold $11 of restricted marketable debt securities as a result of remediation work completed at the Midnite Mine.

​

In June 2018, Newmont exchanged certain royalty interests for cash consideration of $17, received in July 2018, 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.

​

In August 2017, Newmont sold approximately two-thirds of its interest in Novo Resources Corp. (“Novo”) for $15, resulting in a pre-tax gain of $5 recorded in Other income, net. Newmont continues to hold approximately 6 million common shares of Novo. The cost of the investment sold was determined using the specific identification method.

In June 2017, Newmont exchanged its 31% interest in the Fort á la Corne joint venture in consideration for 54 million common shares and 1 million common share warrants in Star Diamond, formerly known as Shore Gold, valued at $15. Following the

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

transaction, Newmont held a 19.9% equity ownership in Star Diamond. This investment has been classified as a marketable equity security.

In April 2017, Newmont purchased 13 million units (one common share and one warrant per unit) of Goldstrike Resources Ltd. (“Goldstrike”) at a price of C$0.47 per share for $4. The investment secures rights to explore and develop the Plateau property located in a highly prospective mineralized trend in Canada’s Yukon Territory with Goldstrike, with the ability to earn additional ownership in the project through exploration investment. This investment has been classified as a marketable equity security.

See Note 10 for discussion of investment impairments recognized during 2019 and 2018. In 2017, there were no investment impairments for other-than-temporary declines in value or significant changes in fair value on previously impaired available-for-sale securities.

NOTE 21 INVENTORIES

​

​	​	​	​	​	​	​	​
​	​	At December 31,					​
​		2019		​	2018
Materials and supplies	​	$	655	​	$	439	​
In-process	​	​	189	​	​	104	​
Concentrate and copper cathode (1)	​	​	96	​	​	61	​
Precious metals (2)	​	​	74	​	​	26	​
​	​	$	1,014	​	$	630	​

(1)	Concentrate includes gold, copper, silver, lead and zinc_._

(2)	Precious metals includes gold and silver doré.

​

In 2019, the Company recorded write-downs of $18 and $5, classified as components of Costs applicable to sales and Depreciation and amortization, respectively. Of the write-downs in 2019, $10 were related to CC&V, $5 to Nevada Gold Mines and $8 to Phoenix.

In 2018, the Company recorded write-downs of $14 and $2, classified as components of Costs applicable to sales and Depreciation and amortization, respectively. Of the write-downs in 2018, $5 were related to CC&V, $2 to Yanacocha, $2 to Carlin, $5 to Phoenix and $2 to Twin Creeks.

In 2017, the Company recorded write-downs of $14 and $2, classified as components of Costs applicable to sales and Depreciation and amortization, respectively. Of the write-downs in 2017, $4 were related to CC&V, $4 to Yanacocha, $4 to Carlin and $4 to Phoenix.

NOTE 22 STOCKPILES AND ORE ON LEACH PADS

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	At December 31,					​
​		​	​	​	​	​		2019			2018		​
Current:	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockpiles	​	​	​	​	​	​	​	$	493	​	$	395	​
Ore on leach pads	​	​	​	​	​	​	​	​	319	​	​	302	​
​	​	​	​	​	​	​	​	$	812	​	$	697	​
Non-current:	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockpiles	​	​	​	​	​	​	​	$	1,154	​	$	1,429	​
Ore on leach pads	​	​	​	​	​	​	​	​	330	​	​	437	​
​	​	​	​	​	​	​	​	$	1,484	​	$	1,866	​
Total:	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockpiles	​	​	​	​	​	​	​	$	1,647	​	$	1,824	​
Ore on leach pads	​	​	​	​	​	​	​	​	649	​	​	739	​
​	​	​	​	​	​	​	​	$	2,296	​	$	2,563	​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Stockpiles					​	Leach pads					​
​	​	At December 31,					​	At December 31,					​
​	​	2019		​	2018			2019		​	2018		​
Stockpiles and ore on leach pads:	​	​	​	​	​	​	​	​	​	​	​	​	​
CC&V	​	$	6	​	$	23	​	$	239	​	$	278	​
Musselwhite	​	​	53	​	​	—	​	​	—	​	​	—	​
Porcupine	​	​	2	​	​	—	​	​	—	​	​	—	​
Éléonore	​	​	1	​	​	—	​	​	—	​	​	—	​
Peñasquito	​	​	193	​	​	—	​	​	—	​	​	—	​
Yanacocha	​	​	55	​	​	71	​	​	181	​	​	173	​
Merian	​	​	45	​	​	35	​	​	—	​	​	—	​
Boddington	​	​	458	​	​	458	​	​	—	​	​	—	​
Tanami	​	​	4	​	​	2	​	​	—	​	​	—	​
Kalgoorlie	​	​	—	​	​	121	​	​	—	​	​	—	​
Ahafo	​	​	403	​	​	417	​	​	—	​	​	—	​
Akyem	​	​	126	​	​	82	​	​	—	​	​	—	​
Nevada Gold Mines	​	​	301	​	​	—	​	​	229	​	​	—	​
Carlin	​	​	—	​	​	263	​	​	—	​	​	186	​
Phoenix	​	​	—	​	​	32	​	​	—	​	​	32	​
Twin Creeks	​	​	—	​	​	320	​	​	—	​	​	25	​
Long Canyon	​	​	—	​	​	—	​	​	—	​	​	45	​
​	​	$	1,647	​	$	1,824	​	$	649	​	$	739	​

​

In 2019, the Company recorded write-downs of $112 and $45, classified as components of Costs applicable to sales and Depreciation and amortization, respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2019, $15 were related to CC&V, $21 to Yanacocha, $22 to Boddington, $34 to Akyem, $18 to Nevada Gold Mines, $44 to Carlin and $3 to Twin Creeks.

In 2018, the Company recorded write-downs of $257 and $97, classified as components of Costs applicable to sales and Depreciation and amortization, respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2018, $7 were related to CC&V, $51 to Yanacocha, $46 to Ahafo, $56 to Akyem, $152 to Carlin and $42 to Twin Creeks.

In 2017, the Company recorded write-downs of $198 and $77, classified as components of Costs applicable to sales and Depreciation and amortization, respectively, to reduce the carrying value of stockpiles and ore on leach pads to net realizable value. Of the write-downs in 2017, $70 were related to Yanacocha, $31 to Ahafo, $45 to Akyem, $83 to Carlin and $46 to Twin Creeks.

NOTE 23 PROPERTY, PLANT AND MINE DEVELOPMENT

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Depreciable			​	At December 31, 2019								​	At December 31, 2018								​
​	​	Life			​	​	​	​	Accumulated		​	Net Book		​	​	​	​	Accumulated		​	Net Book		​
​		(in years)				Cost			Depreciation			Value			Cost			Depreciation			Value
Land	​	​	​	​	​	$	193	​	$	—	​	$	193	​	$	222	​	$	—	​	$	222	​
Facilities and equipment (1)	​	1	-	27	​	​	17,676	​	​	(8,385)	​	​	9,291	​	​	16,661	​	​	(10,683)	​	​	5,978	​
Mine development	​	1	-	18	​	​	3,427	​	​	(2,037)	​	​	1,390	​	​	5,598	​	​	(3,314)	​	​	2,284	​
Mineral interests	​	1	-	18	​	​	13,581	​	​	(1,268)	​	​	12,313	​	​	2,658	​	​	(1,114)	​	​	1,544	​
Construction-in-progress	​	​	​	​	​	​	2,089	​	​	—	​	​	2,089	​	​	2,230	​	​	—	​	​	2,230	​
​	​	​	​	​	​	$	36,966	​	$	(11,690)	​	$	25,276	​	$	27,369	​	$	(15,111)	​	$	12,258	​

(1)	At December 31, 2019 and 2018, Facilities and equipment include finance lease right of use assets of $740 and $-, respectively.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Depreciable			​	At December 31, 2019								​	At December 31, 2018								​
​	​	Life			​	​		​	Accumulated		​	Net Book		​	​		​	Accumulated		​	Net Book		​
Mineral Interests		(in years)				Cost			Depreciation			Value			Cost			Depreciation			Value
Production stage	​	1	-	18	​	$	8,990	​	$	(1,268)	​	$	7,722	​	$	1,654	​	$	(1,114)	​	$	540	​
Development stage	​	​	(1)	​	​	​	1,106	​	​	—	​	​	1,106	​	​	59	​	​	—	​	​	59	​
Exploration stage	​	​	(1)	​	​	​	3,485	​	​	—	​	​	3,485	​	​	945	​	​	—	​	​	945	​
​	​	​	​	​	​	$	13,581	​	$	(1,268)	​	$	12,313	​	$	2,658	​	$	(1,114)	​	$	1,544	​

(1)	These amounts are currently non-depreciable as these mineral interests have not reached production stage.

​

Construction-in-progress at December 31, 2019 of $2,089 included $199 at North America primarily related to construction at Peñasquito and CC&V, $1,389 at South America primarily related to engineering and construction at Conga and infrastructure at Yanacocha, Argentina and Suriname, $141 at Australia primarily related to infrastructure at Tanami and Boddington, $249 at Africa primarily related to the Ahafo North project and other infrastructure at Akyem and $95 at Nevada primarily related to infrastructure at NGM. There have been no costs capitalized during 2019 for the Conga project in South America, reported in Other South America.

Construction-in-progress at December 31, 2018 of $2,230 included $4 at North America primarily related to construction at CC&V, $1,373 at South America primarily related to engineering and construction at Conga and Suriname and infrastructure at Yanacocha, $324 at Australia primarily related to infrastructure at Tanami, Boddington, and Kalgoorlie and the Tanami Power project, $426 at Africa primarily related to the Subika underground project and Ahafo Mill expansion and other infrastructure at Akyem and $96 at Nevada primarily related to infrastructure at Carlin and Twin Creeks. The Carlin and Twin Creeks mine sites were contributed to NGM effective July 1, 2019. There have been no costs capitalized during 2018 for the Conga project in South America, reported in Other South America.

NOTE 24 GOODWILL

Changes in the carrying amount of goodwill by reportable segment were as follows:

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	North America		​	South America		​	Australia		​	Nevada		​	Total		​
Balance at December 31, 2018	​	$	—		$	—		$	58		$	—		$	58
Additions due to Newmont Goldcorp transaction (1)	​	​	2,095	​	​	442	​	​	—	​	​	—	​	​	2,537	​
Additions due to formation of NGM (2)	​	​	—	​	​	—	​	​	—	​	​	268	​	​	268	​
Reclassifications to assets held for sale (3)	​	​	(131)	​	​	—	​	​	(58)	​	​	—	​	​	(189)	​
Balance at December 31, 2019	​	$	1,964	​	$	442	​	$	—	​	$	268	​	$	2,674	​

(1)	For further information regarding the Newmont Goldcorp transaction, refer to Note 3.

(2)	For further information regarding the formation of NGM, refer to Note 4.

(3)	For further information on the agreements to sell Red Lake and Kalgoorlie, refer to Note 5.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 25 DEBT

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2019								​	At December 31, 2018								​
​		Current			Non-Current			Fair Value (1)			Current			Non-Current			Fair Value (1)
2019 Senior Notes, net	​	$	—	​	$	—	​	$	—	​	$	626	​	$	—	​	$	641	​
2021 Senior Notes, net	​	​	—	​	​	553	​	​	562	​	​	—	​	​	—	​	​	—	​
2022 Senior Notes, net	​	​	—	​	​	988	​	​	1,026	​	​	—	​	​	987	​	​	992	​
2023 Senior Notes, net	​	​	—	​	​	1,012	​	​	1,050	​	​	—	​	​	—	​	​	—	​
2029 Senior Notes, net	​	​	—	​	​	688	​	​	700	​	​	—	​	​	—	​	​	—	​
2035 Senior Notes, net	​	​	—	​	​	575	​	​	794	​	​	—	​	​	594	​	​	655	​
2039 Senior Notes, net	​	​	—	​	​	859	​	​	1,180	​	​	—	​	​	859	​	​	972	​
2042 Senior Notes, net	​	​	—	​	​	985	​	​	1,188	​	​	—	​	​	984	​	​	969	​
2044 Senior Notes, net	​	​	—	​	​	483	​	​	568	​	​	—	​	​	—	​	​	—	​
Debt issuance costs on Corporate Revolving Credit Facilities	​	​	—	​	​	(5)	​	​	—	​	​	—	​	​	(6)	​	​	—	​
​	​	$	—	​	$	6,138	​	$	7,068	​	$	626	​	$	3,418	​	$	4,229	​

(1)	The estimated fair value of these Senior Notes was determined by an independent third party pricing source and may or may not reflect the actual trading value of this debt.

​

All outstanding Senior Notes are unsecured and rank equally with one another.

Scheduled minimum debt repayments are as follows for the year ending December 31:

​

​	​	​	​	​
2020	​	$	—	​
2021	​	​	550	​
2022	​	​	992	​
2023	​	​	1,000	​
2024	​	​	—	​
Thereafter	​	​	3,624	​
​	​	$	6,166	​

​

Corporate Revolving Credit Facilities and Letters of Credit Facilities

On April 4, 2019, the Company entered into a $3,000 revolving credit facility (“New Credit Agreement”) with a syndicate of financial institutions that expires in April 2024. The New Credit Agreement provides for borrowings in U.S. dollars and contains a letter of credit sub-facility. Facility fees vary based on the credit ratings of the Company’s senior, uncollateralized, non-current debt. Borrowings under the facility bear interest at a market based rate plus a margin determined by our credit rating. The New Credit Agreement replaces the Company’s existing credit agreement dated as of May 20, 2011, as amended and restated as of May 25, 2017 (“Existing Credit Agreement”). At December 31, 2019, the Company had no borrowings outstanding under the facility. There was $60 and $86 outstanding on the sub-facility letters of credit at December 31, 2019 and 2018, respectively.

In September 2013, the Company entered into a Letter of Credit Facility Agreement (“LC Agreement”) with BNP Paribas, New York Branch. The LC Agreement established a $175 letter of credit facility for a three year period to support reclamation obligations. In 2017, the agreement was extended to September 30, 2020. The LC Agreement had a balance of $170 and $172 at December 31, 2019 and 2018, respectively.

Prior to the closing of the Newmont Goldcorp transaction, Goldcorp held a series of letters of credit, several of which represented guarantees for reclamation obligations. Newmont continues to hold these letters of credit. At December 31, 2019, the Company had letters of credit outstanding in the amount of $424 of which $353 represented guarantees for reclamation obligations. None of these letters of credit have been drawn on for reclamation obligations, as of December 31, 2019.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

2017 Convertible Senior Notes

In July 2017, the Company repaid the $575 outstanding aggregate principal amount of the 2017 Convertible Senior Notes at maturity. For the year ended December 31, 2017, the Company recorded $5 of interest expense for the contractual interest coupon and $14 of amortization of the debt discount related to the Convertible Senior Notes.

2019 and 2039 Senior Notes

In September 2009, the Company completed a two part public offering of $900 and $1,100 uncollateralized Senior Notes maturing on October 1, 2019 and October 1, 2039, respectively. Net proceeds from the 2019 and 2039 Senior Notes were $895 and $1,080, respectively. The 2019 Senior Notes paid interest semi-annually at a rate of 5.125% per annum and the 2039 Senior Notes pay semi-annual interest of 6.25% per annum. In March 2016, the Company purchased approximately $274 of its 2019 Senior Notes and $226 of its 2039 Senior Notes through a debt tender offer. The remaining $626 of the 2019 Senior Note was paid off at maturity on October 1, 2019, primarily with the proceeds from the issuance of the 2029 Senior Note.

2021, 2023 and 2044 Senior Notes

Subsequent to closing of the Newmont Goldcorp transaction, the Company completed a like-for-like exchange for the majority of the outstanding notes issued by Goldcorp (“Existing Goldcorp notes”), with an aggregate principal amount of $2,000, for new notes issued by Newmont (the “New Newmont notes”) and nominal cash consideration. The New Newmont notes, issued April 22, 2019, and the Existing Goldcorp notes that were not tendered for exchange, consist of $472 and $78 of 3.625% notes due June 9, 2021, $810 and $190 of 3.70% notes due March 15, 2023 and $444 and $6 of 5.45% notes due June 9, 2044, respectively. Pursuant to registration rights issued with the New Newmont notes, the Company filed Form S-4 on June 28, 2019, which was declared effective on July 9, 2019. The exchange for the registered notes was completed on August 9, 2019.

2022 and 2042 Senior Notes

In March 2012, the Company completed a two part public offering of $1,500 and $1,000 uncollateralized Senior Notes maturing on March 15, 2022 and March 15, 2042, respectively. Net proceeds from the 2022 and 2042 Senior Notes were $1,479 and $983, respectively. The 2022 Senior Notes pay interest semi-annually at a rate of 3.50% per annum and the 2042 Senior Notes pay semi-annual interest of 4.88% per annum. In November 2016, the Company purchased approximately $508 of its 2022 Senior Notes through a debt tender offer.

2029 Senior Notes

In September 2019, the Company completed a public offering of $700 unsecured Senior Notes due October 2029 (“2029 Senior Notes”). Net proceeds from the 2029 Senior Notes were $690. The 2029 Senior Notes will pay interest semi-annually at a rate of 2.80% per annum. The proceeds from this issuance were primarily used to repay the outstanding balance on the 2019 Senior Notes of $626 on October 1, 2019.

2035 Senior Notes

In March 2005, Newmont issued uncollateralized Senior Notes with a principal amount of $600 due April 2035 bearing an annual interest rate of 5.88%.

As discussed in Note 4, the Company executed the First Supplemental Indenture whereby NGM, upon its formation, agreed to provide a full and unconditional guarantee of the 2035 Notes. After completion of a successful consent solicitation on August 23, 2019, the Company executed the Second Supplemental Indenture that released NGM from its guarantee of the 2035 Notes. The Second Supplemental Indenture also amended certain provisions of the 2035 Indenture to conform with the Company’s other outstanding indentures.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Other debt related activity

Subsequent to closing of the Newmont Goldcorp transaction, the Company paid the outstanding principal balances of Goldcorp’s term loan of $400 and Goldcorp’s revolving credit facility of $850.

Debt Covenants

The Company’s senior notes and revolving credit facility contain various covenants and default provisions including payment defaults, limitation on liens, leases, sales and leaseback agreements and merger restrictions. Furthermore, the Company’s senior notes and corporate revolving credit facility contain covenants that include, limiting the sale of all or substantially all of the Company’s assets, certain change of control provisions and a negative pledge on certain assets.

The corporate revolving credit facility contains a financial ratio covenant requiring the Company to maintain a net debt (total debt net of cash and cash equivalents) to total capitalization ratio of less than or equal to 62.50% in addition to the covenants noted above.

At December 31, 2019 and 2018, the Company and its related entities were in compliance with all debt covenants and provisions related to potential defaults.

NOTE 26 LEASE AND OTHER FINANCING OBLIGATIONS

The Company primarily has operating and finance leases for corporate and regional offices, processing facilities and mining equipment. These leases have a remaining lease term of less than 1 year to 38 years, some of which may include options to extend the lease for up to 15 years, and some of which may include options to terminate the lease within 2 years. Certain of our leases include payments that vary based on the Company’s level of usage and operations. These variable payments are not included within ROU assets and lease liabilities in the Consolidated Balance Sheets. Additionally, short-term leases, which have an initial term of 12 months or less, are not recorded in the Consolidated Balance Sheets.

​

Total lease cost includes the following components:

​

​	​	​	​
​	​	​	Year Ended
​	​	​	December 31, 2019
Operating lease cost	​	$	22
Finance lease cost	​	​	​
Amortization of ROU assets	​	​	78
Interest on lease liabilities	​	​	34
​	​	​	112
Variable lease cost	​	​	350
Short-term lease cost	​	​	46
​	​	$	530

​

​

​

Rent expense for 2018 and 2017 was $51 and $43, respectively.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

Supplemental cash flow information related to leases includes the following:

​

​	​	​	​	​
​	​	Year Ended		​
​	​	December 31, 2019		​
Cash paid for amounts included in the measurement of lease liabilities:	​	​	​	​
Operating cash flows relating to operating leases	​	$	27	​
Operating cash flows relating to finance leases	​	$	32	​
Financing cash flows relating to finance leases	​	$	55	​
​	​	​	​	​
Non-cash lease obligations arising from obtaining ROU assets: (1)	​	​	​	​
Operating leases	​	$	116	​
Finance leases	​	$	731	​

	(1)	Operating and finance lease obligations assumed in relation to the Newmont Goldcorp transaction were $49 and $423, respectively. Operating and finance lease obligations assumed in relation to the formation of NGM were $11 and $1, respectively.

​

Information related to lease terms and discount rates is as follows:

​

​	​	​	​	​	​	​	​	​
​	​	Operating		​	​	Finance
​	​	Leases		​	​	Leases
Weighted average remaining lease term (years)	​	7	​	​	​	12	​	​
Weighted average discount rate	​	5.31	%	​	​	5.60	%	​

​

Future minimum lease payments under non-cancellable leases as of December 31, 2019, were as follows:

​

​	​	​	​	​	​	​
​	​	Operating		​	Finance
​	​	Leases		​	Leases
2020	​	$	28	​	$	101
2021	​	​	18	​	​	99
2022	​	​	11	​	​	88
2023	​	​	7	​	​	81
2024	​	​	5	​	​	72
Thereafter	​	​	18	​	​	536
Total future minimum lease payments	​	​	87	​	​	977
Less: Imputed interest	​	​	(12)	​	​	(281)
Total	​	$	75	​	$	696

​

In December 2017, the Company began the Tanami Power project which included the construction of a gas pipeline to the Tanami site, and construction and operation of two on-site power stations under agreements that qualified for build-to-suit lease accounting. During 2018 and 2017, the Company recorded a non-cash increase to construction-in-progress included as part of Property, plant and mine development, net and a corresponding increase to financing obligations included in Lease and other financing obligations of $196 and $14, respectively under the build-to-suit arrangements. As of December 31, 2018, the financing obligations under the build-to-suit arrangements were $210, of which $24 was classified as current. During the first quarter of 2019, construction of the gas pipeline and power stations was completed. Upon completion, the build-to-suit arrangements failed to qualify for sale-leaseback accounting. Finance lease obligations recognized on both arrangements totaled $189 as of December 31, 2019, of which $26 was classified as current.

​

As of December 31, 2019, we have an additional operating lease for corporate office space that has not yet commenced. At commencement, the Company anticipates that this lease will result in an additional lease liability of $65. The operating lease is anticipated to commence in 2020 and has a lease term of 13 years.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 27 OTHER LIABILITIES

​

​	​	​	​	​	​	​	​
​	​	At December 31,		​	At December 31,		​
​		2019			2018
Other current liabilities:	​	​	​	​	​	​	​
Accrued operating costs	​	$	210	​	$	129	​
Reclamation and remediation liabilities	​	​	169	​	​	114	​
Payables to joint venture partners	​	​	75	​	​	—	​
Silver streaming agreement	​	​	69	​	​	—	​
Royalties	​	​	60	​	​	63	​
Accrued interest	​	​	60	​	​	52	​
Accrued capital expenditures	​	​	58	​	​	61	​
Taxes other than income and mining	​	​	47	​	​	8	​
Operating leases	​	​	28	​	​	—	​
Holt royalty obligation	​	​	14	​	​	12	​
Other	​	​	90	​	​	16	​
​	​	$	880	​	$	455	​
​	​	​	​	​	​	​	​
Other non-current liabilities:	​	​	​	​	​	​	​
Income and mining taxes (1)	​	$	445	​	$	17	​
Holt royalty obligation	​	​	243	​	​	149	​
Norte Abierto deferred payments	​	​	154	​	​	—	​
Galore Creek deferred payments	​	​	92	​	​	89	​
Operating leases	​	​	47	​	​	—	​
Social development obligations	​	​	18	​	​	18	​
Power supply agreements	​	​	—	​	​	28	​
Other	​	​	62	​	​	13	​
​	​	$	1,061	​	$	314	​

(1)	Income and mining taxes at December 31, 2019 includes a balance of $445 related to unrecognized tax benefits, interest and penalties. The acquisition of Goldcorp increased the Company’s unrecognized tax benefits by $396. See Note 11 for additional information.

.

​

NOTE 28 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		​	​		​
​	​	Investment		​	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	​
Cumulative effect adjustment of adopting ASU No. 2018-02	​	​	—	​	​	—	​	​	(45)	​	​	(51)	​	​	(96)	​
Net current-period other comprehensive income (loss):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Change in other comprehensive income (loss) before reclassifications	​	​	1	​	​	(12)	​	​	(29)	​	​	(3)	​	​	(43)	​
Reclassifications from accumulated other comprehensive income (loss)	​	​	—	​	​	—	​	​	20	​	​	12	​	​	32	​
Other comprehensive income (loss)	​	​	1	​	​	(12)	​	​	(9)	​	​	9	​	​	(11)	​
Balance at December 31, 2018		$	—		$	118		$	(262)		$	(140)		$	(284)
Net current-period other comprehensive income (loss):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gain (loss) in other comprehensive income (loss) before reclassifications	​	​	5	​	​	1	​	​	(10)	​	​	20	​	​	16	​
(Gain) loss reclassified from accumulated other comprehensive income (loss)	​	​	—	​	​	—	​	​	(9)	​	​	12	​	​	3	​
Other comprehensive income (loss)	​	​	5	​	​	1	​	​	(19)	​	​	32	​	​	19	​
Balance at December 31, 2019	​	$	5	​	$	119	​	$	(281)	​	$	(108)	​	$	(265)	​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
Details about Accumulated Other Comprehensive Income (Loss) Components	​	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)								​	Affected Line Item in the Consolidated Statements of Operations	​
​	​	Years Ended December 31,								​	​	​
​		2019			2018			2017			​	​
Marketable securities adjustments:	​	​	​	​	​	​	​	​	​	​	​	​
Sale of marketable securities	​	$	—	​	$	—	​	$	(5)	​	Other income, net
Total before tax	​	​	—	​	​	—	​	​	(5)	​	​	​
Tax	​	​	—	​	​	—	​	​	—	​	​	​
Net of tax	​	$	—	​	$	—	​	$	(5)	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Pension and other post-retirement benefit adjustments:	​	​	​	​	​	​	​	​	​	​	​	​
Amortization	​	$	14	​	$	25	​	$	23	​	Other income, net (1)	​
Curtailment	​	​	(23)	​	​	—	​	​	—	​	Other income, net (2)	​
Settlements	​	​	—	​	​	—	​	​	5	​	Other income, net (2)	​
Total before tax	​	​	(9)	​	​	25	​	​	28	​	​	​
Tax	​	​	—	​	​	(5)	​	​	(10)	​	​	​
Net of tax	​	$	(9)	​	$	20	​	$	18	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Hedge instruments adjustments:	​	​	​	​	​	​	​	​	​	​	​	​
Operating cash flow hedges	​	$	3	​	$	6	​	$	27	​	Costs applicable to sales	​
Interest rate contracts	​	​	11	​	​	10	​	​	10	​	Interest expense, net	​
Total before tax	​	​	14	​	​	16	​	​	37	​	​	​
Tax	​	​	(2)	​	​	(4)	​	​	(12)	​	​	​
Net of tax	​	$	12	​	$	12	​	$	25	​	​	​
Total reclassifications for the period, net of tax	​	$	3	​	$	32	​	$	38	​	​	​

(1)	In 2019 and 2018, this accumulated other comprehensive income (loss) component was included in Other income, net as a result of adopting ASU No. 2017-07. In 2017, this accumulated other comprehensive income (loss) component was included in Costs applicable to sales or General and administrative. Refer to Note 2 for information on costs that benefit the inventory/production process.

(2)	In 2019 and 2018, this accumulated other comprehensive income (loss) component was included in Other income, net as a result of adopting ASU No. 2017-07. In 2017, this accumulated other comprehensive income (loss) component was included in Other expense, net.

Placeholder

NOTE 29 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:

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​	​	2019		​	2018		​	2017		​
Decrease (increase) in operating assets:	​	​	​	​	​	​	​	​	​	​
Trade and other receivables		$	(193)		$	(109)		$	35
Inventories, stockpiles and ore on leach pads	​	​	(132)	​	​	(250)	​	​	(204)	​
Other assets	​	​	29	​	​	(49)	​	​	(52)	​
Increase (decrease) in operating liabilities:	​	​	​	​	​	​	​	​	​	​
Accounts payable	​	​	144	​	​	(73)	​	​	49	​
Reclamation and remediation liabilities	​	​	(102)	​	​	(72)	​	​	(78)	​
Payment of accreted interest from debt discount (1)	​	​	—	​	​	—	​	​	(196)	​
Other accrued liabilities	​	​	(55)	​	​	(190)	​	​	54	​
​	​	$	(309)	​	$	(743)	​	$	(392)	​

(1)	In July 2017, the Company repaid the $575 outstanding aggregate principal amount of the 2017 Convertible Senior Notes at maturity. This debt repayment included accreted interest of $196 from the debt discount at origination that is classified as a cash outflow from operating activities.

Placeholder

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 30 SUPPLEMENTAL CASH FLOW INFORMATION

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Years Ended December 31,								​
​		2019			2018			2017
Income and mining taxes paid, net of refunds	​	$	437	​	$	429	​	$	214	​
Interest paid, net of amounts capitalized	​	$	273	​	$	188	​	$	435	​

​

Non-cash Investing Activities

Refer to Note 3 for non-cash information related to the Newmont Goldcorp transaction, Note 4 for non-cash information related to the formation of NGM and Note 26 for non-cash information related to leases.

Non-cash Financing Activities

Dividends declared for the years ended December 31, 2019, 2018 and 2017 were $895, $301 and $134, respectively, of which $889, $301 and $134 had been paid as of December 31, 2019, 2018 and 2017, respectively. Differences are due to timing of payments.

Cash calls requested from noncontrolling interests for the years ended December 31, 2019, 2018 and 2017 were $95, $99 and $97, respectively, of which $93, $100 and $94 had been received as of December 31, 2019, 2018 and 2017, respectively. Differences are due to timing of receipts.

Distributions declared to noncontrolling interests for the years ended December 31, 2019, 2018 and 2017 were $187, $160 and $170, respectively, of which $186, $160 and $178 had been paid as of December 31, 2019, 2018 and 2017, respectively. Differences are due to timing of payments.

NOTE 31 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.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2019														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	Newmont		​	Other		​	​	​	​	Corporation		​
Condensed Consolidating Statement of Operation		Corporation			USA			Subsidiaries			Eliminations			Consolidated
Sales	​	$	—	​	$	895	​	$	8,851	​	$	(6)	​	$	9,740	​
Costs and expenses:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Costs applicable to sales (1)	​	​	—	​	​	583	​	​	4,618	​	​	(6)	​	​	5,195	​
Depreciation and amortization	​	​	4	​	​	189	​	​	1,767	​	​	—	​	​	1,960	​
Reclamation and remediation	​	​	—	​	​	17	​	​	263	​	​	—	​	​	280	​
Exploration	​	​	—	​	​	20	​	​	245	​	​	—	​	​	265	​
Advanced projects, research and development	​	​	—	​	​	19	​	​	131	​	​	—	​	​	150	​
General and administrative	​	​	—	​	​	76	​	​	237	​	​	—	​	​	313	​
Impairment of long-lived assets	​	​	—	​	​	1	​	​	4	​	​	—	​	​	5	​
Other expense, net	​	​	4	​	​	168	​	​	123	​	​	—	​	​	295	​
​	​	​	8	​	​	1,073	​	​	7,388	​	​	(6)	​	​	8,463	​
Other income (expense):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gain on formation of Nevada Gold Mines	​	​	—	​	​	2,390	​	​	—	​	​	—	​	​	2,390	​
Other income, net	​	​	47	​	​	76	​	​	204	​	​	—	​	​	327	​
Interest income - intercompany	​	​	121	​	​	54	​	​	89	​	​	(264)	​	​	—	​
Interest expense - intercompany	​	​	(6)	​	​	1	​	​	(259)	​	​	264	​	​	—	​
Interest expense, net	​	​	(252)	​	​	(2)	​	​	(47)	​	​	—	​	​	(301)	​
​	​	​	(90)	​	​	2,519	​	​	(13)	​	​	—	​	​	2,416	​
Income (loss) before income and mining tax and other items	​	​	(98)	​	​	2,341	​	​	1,450	​	​	—	​	​	3,693	​
Income and mining tax benefit (expense)	​	​	20	​	​	(473)	​	​	(379)	​	​	—	​	​	(832)	​
Equity income (loss) of affiliates	​	​	2,883	​	​	104	​	​	95	​	​	(2,987)	​	​	95	​
Net income (loss) from continuing operations	​	​	2,805	​	​	1,972	​	​	1,166	​	​	(2,987)	​	​	2,956	​
Net income (loss) from discontinued operations	​	​	—	​	​	—	​	​	(72)	​	​	—	​	​	(72)	​
Net income (loss)	​	​	2,805	​	​	1,972	​	​	1,094	​	​	(2,987)	​	​	2,884	​
Net loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(79)	​	​	—	​	​	(79)	​
Net income (loss) attributable to Newmont stockholders	​	$	2,805	​	$	1,972	​	$	1,015	​	$	(2,987)	​	$	2,805	​
Comprehensive income (loss)	​	$	2,824	​	$	1,961	​	$	1,105	​	$	(2,987)	​	$	2,903	​
Comprehensive loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(79)	​	​	—	​	​	(79)	​
Comprehensive income (loss) attributable to Newmont stockholders	​	$	2,824	​	$	1,961	​	$	1,026	​	$	(2,987)	​	$	2,824	​

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2018														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	Newmont		​	Other		​	​	​	​	Corporation		​
Condensed Consolidating Statement of Operation		Corporation			USA			Subsidiaries			Eliminations			Consolidated
Sales	​	$	—	​	$	1,896	​	$	5,357	​	$	—	​	$	7,253	​
Costs and expenses:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Costs applicable to sales (1)	​	​	—	​	​	1,206	​	​	2,887	​	​	—	​	​	4,093	​
Depreciation and amortization	​	​	4	​	​	349	​	​	862	​	​	—	​	​	1,215	​
Reclamation and remediation	​	​	—	​	​	32	​	​	131	​	​	—	​	​	163	​
Exploration	​	​	—	​	​	55	​	​	142	​	​	—	​	​	197	​
Advanced projects, research and development	​	​	—	​	​	34	​	​	119	​	​	—	​	​	153	​
General and administrative	​	​	—	​	​	82	​	​	162	​	​	—	​	​	244	​
Impairment of long-lived assets	​	​	—	​	​	336	​	​	33	​	​	—	​	​	369	​
Other expense, net	​	​	—	​	​	4	​	​	25	​	​	—	​	​	29	​
​	​	​	4	​	​	2,098	​	​	4,361	​	​	—	​	​	6,463	​
Other income (expense):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gain on formation of Nevada Gold Mines	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Other income, net	​	​	(56)	​	​	40	​	​	171	​	​	—	​	​	155	​
Interest income - intercompany	​	​	83	​	​	51	​	​	43	​	​	(177)	​	​	—	​
Interest expense - intercompany	​	​	(6)	​	​	—	​	​	(171)	​	​	177	​	​	—	​
Interest expense, net	​	​	(190)	​	​	(7)	​	​	(10)	​	​	—	​	​	(207)	​
​	​	​	(169)	​	​	84	​	​	33	​	​	—	​	​	(52)	​
Income (loss) before income and mining tax and other items	​	​	(173)	​	​	(118)	​	​	1,029	​	​	—	​	​	738	​
Income and mining tax benefit (expense)	​	​	14	​	​	(15)	​	​	(385)	​	​	—	​	​	(386)	​
Equity income (loss) of affiliates	​	​	500	​	​	(228)	​	​	(33)	​	​	(272)	​	​	(33)	​
Net income (loss) from continuing operations	​	​	341	​	​	(361)	​	​	611	​	​	(272)	​	​	319	​
Net income (loss) from discontinued operations	​	​	—	​	​	—	​	​	61	​	​	—	​	​	61	​
Net income (loss)	​	​	341	​	​	(361)	​	​	672	​	​	(272)	​	​	380	​
Net loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(39)	​	​	—	​	​	(39)	​
Net income (loss) attributable to Newmont stockholders	​	$	341	​	$	(361)	​	$	633	​	$	(272)	​	$	341	​
Comprehensive income (loss)	​	$	330	​	$	(440)	​	$	779	​	$	(300)	​	$	369	​
Comprehensive loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(39)	​	​	—	​	​	(39)	​
Comprehensive income (loss) attributable to Newmont stockholders	​	$	330	​	$	(440)	​	$	740	​	$	(300)	​	$	330	​

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2017														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	Newmont		​	Other		​	​	​	​	Corporation		​
Condensed Consolidating Statement of Operation		Corporation			USA			Subsidiaries			Eliminations			Consolidated		​
Sales	​	$	—	​	$	1,955	​	$	5,424	​	$	—	​	$	7,379	​
Costs and expenses:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Costs applicable to sales (1)	​	​	—	​	​	1,209	​	​	2,853	​	​	—	​	​	4,062	​
Depreciation and amortization	​	​	4	​	​	355	​	​	902	​	​	—	​	​	1,261	​
Reclamation and remediation	​	​	—	​	​	63	​	​	129	​	​	—	​	​	192	​
Exploration	​	​	—	​	​	43	​	​	136	​	​	—	​	​	179	​
Advanced projects, research and development	​	​	—	​	​	21	​	​	122	​	​	—	​	​	143	​
General and administrative	​	​	—	​	​	80	​	​	157	​	​	—	​	​	237	​
Impairment of long-lived assets	​	​	—	​	​	—	​	​	14	​	​	—	​	​	14	​
Other expense, net	​	​	—	​	​	12	​	​	20	​	​	—	​	​	32	​
​	​	​	4	​	​	1,783	​	​	4,333	​	​	—	​	​	6,120	​
Other income (expense):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gain on formation of Nevada Gold Mines	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Other income, net	​	​	41	​	​	6	​	​	7	​	​	—	​	​	54	​
Interest income - intercompany	​	​	149	​	​	43	​	​	41	​	​	(233)	​	​	—	​
Interest expense - intercompany	​	​	(39)	​	​	(4)	​	​	(190)	​	​	233	​	​	—	​
Interest expense, net	​	​	(222)	​	​	(7)	​	​	(12)	​	​	—	​	​	(241)	​
​	​	​	(71)	​	​	38	​	​	(154)	​	​	—	​	​	(187)	​
Income (loss) before income and mining tax and other items	​	​	(75)	​	​	210	​	​	937	​	​	—	​	​	1,072	​
Income and mining tax benefit (expense)	​	​	(34)	​	​	(23)	​	​	(1,070)	​	​	—	​	​	(1,127)	​
Equity income (loss) of affiliates	​	​	(5)	​	​	(108)	​	​	(16)	​	​	113	​	​	(16)	​
Net income (loss) from continuing operations	​	​	(114)	​	​	79	​	​	(149)	​	​	113	​	​	(71)	​
Net income (loss) from discontinued operations	​	​	—	​	​	—	​	​	(38)	​	​	—	​	​	(38)	​
Net income (loss)	​	​	(114)	​	​	79	​	​	(187)	​	​	113	​	​	(109)	​
Net loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(5)	​	​	—	​	​	(5)	​
Net income (loss) attributable to Newmont stockholders	​	$	(114)	​	$	79	​	$	(192)	​	$	113	​	$	(114)	​
Comprehensive income (loss)	​	$	(72)	​	$	90	​	$	(198)	​	$	113	​	$	(67)	​
Comprehensive loss (income) attributable to noncontrolling interests	​	​	—	​	​	—	​	​	(5)	​	​	—	​	​	(5)	​
Comprehensive income (loss) attributable to Newmont stockholders	​	$	(72)	​	$	90	​	$	(203)	​	$	113	​	$	(72)	​

(1)	Excludes Depreciation and amortization and Reclamation and remediation.

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2019														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	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	​	$	328	​	$	95	​	$	2,933	​	$	(480)	​	$	2,876	​
Net cash provided by (used in) operating activities of discontinued operations	​	​	—	​	​	—	​	​	(10)	​	​	—	​	​	(10)	​
Net cash provided by (used in) operating activities	​	​	328	​	​	95	​	​	2,923	​	​	(480)	​	​	2,866	​
Investing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Additions to property, plant and mine development	​	​	—	​	​	(110)	​	​	(1,353)	​	​	—	​	​	(1,463)	​
Return of investment from equity method investees	​	​	—	​	​	—	​	​	132	​	​	—	​	​	132	​
Acquisitions, net	​	​	(17)	​	​	—	​	​	144	​	​	—	​	​	127	​
Purchases of investments	​	​	(78)	​	​	(14)	​	​	(20)	​	​	—	​	​	(112)	​
Proceeds from sales of investments	​	​	—	​	​	15	​	​	52	​	​	—	​	​	67	​
Proceeds from sales of other assets	​	​	—	​	​	20	​	​	10	​	​	—	​	​	30	​
Other	​	​	—	​	​	—	​	​	(7)	​	​	—	​	​	(7)	​
Net cash provided by (used in) investing activities	​	​	(95)	​	​	(89)	​	​	(1,042)	​	​	—	​	​	(1,226)	​
Financing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Repayment of debt	​	​	(626)	​	​	—	​	​	(1,250)	​	​	—	​	​	(1,876)	​
Dividends paid to common stockholders	​	​	(889)	​	​	—	​	​	(480)	​	​	480	​	​	(889)	​
Proceeds from issuance of debt, net	​	​	690	​	​	—	​	​	—	​	​	—	​	​	690	​
Repurchases of common stock	​	​	(479)	​	​	—	​	​	—	​	​	—	​	​	(479)	​
Distributions to noncontrolling interests	​	​	—	​	​	—	​	​	(186)	​	​	—	​	​	(186)	​
Funding from noncontrolling interests	​	​	—	​	​	—	​	​	93	​	​	—	​	​	93	​
Payments on lease and other financing obligations	​	​	—	​	​	—	​	​	(55)	​	​	—	​	​	(55)	​
Payments for withholding of employee taxes related to stock-based compensation	​	​	—	​	​	(50)	​	​	—	​	​	—	​	​	(50)	​
Proceeds from sale of noncontrolling interests	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Acquisition of noncontrolling interests	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Net intercompany borrowings (repayments)	​	​	1,096	​	​	45	​	​	(1,141)	​	​	—	​	​	—	​
Other	​	​	(25)	​	​	—	​	​	—	​	​	—	​	​	(25)	​
Net cash provided by (used in) financing activities	​	​	(233)	​	​	(5)	​	​	(3,019)	​	​	480	​	​	(2,777)	​
Effect of exchange rate changes on cash, cash equivalents and restricted cash	​	​	—	​	​	—	​	​	(3)	​	​	—	​	​	(3)	​
Net change in cash, cash equivalents and restricted cash	​	​	—	​	​	1	​	​	(1,141)	​	​	—	​	​	(1,140)	​
Cash, cash equivalents and restricted cash at beginning of period	​	​	—	​	​	—	​	​	3,489	​	​	—	​	​	3,489	​
Cash, cash equivalents and restricted cash at end of period	​	$	—	​	$	1	​	$	2,348	​	$	—	​	$	2,349	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Reconciliation of cash, cash equivalents and restricted cash:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	—	​	$	—	​	$	2,243	​	$	—	​	$	2,243	​
Restricted cash included in Other current assets	​	​	—	​	​	—	​	​	2	​	​	—	​	​	2	​
Restricted cash included in Other non-current assets	​	​	—	​	​	1	​	​	103	​	​	—	​	​	104	​
Total cash, cash equivalents and restricted cash	​	$	—	​	$	1	​	$	2,348	​	$	—	​	$	2,349	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2018														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	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	​	$	(147)	​	$	578	​	$	1,406	​	$	—	​	$	1,837	​
Net cash provided by (used in) operating activities of discontinued operations	​	​	—	​	​	—	​	​	(10)	​	​	—	​	​	(10)	​
Net cash provided by (used in) operating activities	​	​	(147)	​	​	578	​	​	1,396	​	​	—	​	​	1,827	​
Investing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Additions to property, plant and mine development	​	​	—	​	​	(274)	​	​	(758)	​	​	—	​	​	(1,032)	​
Return of investment from equity method investees	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Acquisitions, net	​	​	—	​	​	—	​	​	(140)	​	​	—	​	​	(140)	​
Purchases of investments	​	​	(6)	​	​	—	​	​	(33)	​	​	—	​	​	(39)	​
Proceeds from sales of investments	​	​	—	​	​	13	​	​	5	​	​	—	​	​	18	​
Proceeds from sales of other assets	​	​	—	​	​	—	​	​	24	​	​	—	​	​	24	​
Other	​	​	—	​	​	(1)	​	​	(7)	​	​	—	​	​	(8)	​
Net cash provided by (used in) investing activities	​	​	(6)	​	​	(262)	​	​	(909)	​	​	—	​	​	(1,177)	​
Financing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Repayment of debt	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Dividends paid to common stockholders	​	​	(301)	​	​	—	​	​	—	​	​	—	​	​	(301)	​
Proceeds from issuance of debt, net	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Repurchases of common stock	​	​	(98)	​	​	—	​	​	—	​	​	—	​	​	(98)	​
Distributions to noncontrolling interests	​	​	—	​	​	—	​	​	(160)	​	​	—	​	​	(160)	​
Funding from noncontrolling interests	​	​	—	​	​	—	​	​	100	​	​	—	​	​	100	​
Payments on lease and other financing obligations	​	​	—	​	​	(1)	​	​	(3)	​	​	​	​	​	(4)	​
Payments for withholding of employee taxes related to stock-based compensation	​	​	—	​	​	(40)	​	​	—	​	​	—	​	​	(40)	​
Proceeds from sale of noncontrolling interests	​	​	—	​	​	—	​	​	48	​	​	—	​	​	48	​
Acquisition of noncontrolling interests	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Net intercompany borrowings (repayments)	​	​	552	​	​	(275)	​	​	(277)	​	​	—	​	​	—	​
Other	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Net cash provided by (used in) financing activities	​	​	153	​	​	(316)	​	​	(292)	​	​	—	​	​	(455)	​
Effect of exchange rate changes on cash, cash equivalents and restricted cash	​	​	—	​	​	—	​	​	(4)	​	​	—	​	​	(4)	​
Net change in cash, cash equivalents and restricted cash	​	​	—	​	​	—	​	​	191	​	​	—	​	​	191	​
Cash, cash equivalents and restricted cash at beginning of period	​	​	—	​	​	—	​	​	3,298	​	​	—	​	​	3,298	​
Cash, cash equivalents and restricted cash at end of period	​	$	—	​	$	—	​	$	3,489	​	$	—	​	$	3,489	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Reconciliation of cash, cash equivalents and restricted cash:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	—	​	$	—	​	$	3,397	​	$	—	​	$	3,397	​
Restricted cash included in Other current assets	​	​	—	​	​	—	​	​	1	​	​	—	​	​	1	​
Restricted cash included in Other non-current assets	​	​	—	​	​	—	​	​	91	​	​	—	​	​	91	​
Total cash, cash equivalents and restricted cash	​	$	—	​	$	—	​	$	3,489	​	$	—	​	$	3,489	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2017														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	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	​	$	(325)	​	$	(207)	​	$	2,671	​	$	—	​	$	2,139	​
Net cash provided by (used in) operating activities of discontinued operations	​	​	—	​	​	—	​	​	(15)	​	​	—	​	​	(15)	​
Net cash provided by (used in) operating activities	​	​	(325)	​	​	(207)	​	​	2,656	​	​	—	​	​	2,124	​
Investing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Additions to property, plant and mine development	​	​	—	​	​	(253)	​	​	(613)	​	​	—	​	​	(866)	​
Return of investment from equity method investees	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Acquisitions, net	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Purchases of investments	​	​	(114)	​	​	—	​	​	(16)	​	​	—	​	​	(130)	​
Proceeds from sales of other assets	​	​	—	​	​	—	​	​	5	​	​	—	​	​	5	​
Proceeds from sales of investments	​	​	—	​	​	—	​	​	35	​	​	—	​	​	35	​
Other	​	​	—	​	​	2	​	​	8	​	​	—	​	​	10	​
Net cash provided by (used in) investing activities	​	​	(114)	​	​	(251)	​	​	(581)	​	​	—	​	​	(946)	​
Financing activities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Repayment of debt	​	​	(379)	​	​	—	​	​	—	​	​	—	​	​	(379)	​
Dividends paid to common stockholders	​	​	(134)	​	​	—	​	​	—	​	​	—	​	​	(134)	​
Proceeds from issuance of debt, net	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Repurchases of common stock	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Distributions of noncontrolling interests	​	​	—	​	​	—	​	​	(178)	​	​	—	​	​	(178)	​
Funding from noncontrolling interests	​	​	—	​	​	—	​	​	94	​	​	—	​	​	94	​
Payments on lease and other financing obligations	​	​	—	​	​	(3)	​	​	(2)	​	​	—	​	​	(5)	​
Payments for withholding of employee taxes related to stock-based compensation	​	​	—	​	​	(14)	​	​	—	​	​	—	​	​	(14)	​
Proceeds from sale of noncontrolling interests	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Acquisition of noncontrolling interests	​	​	—	​	​	—	​	​	(48)	​	​	—	​	​	(48)	​
Net intercompany borrowings (repayments)	​	​	955	​	​	473	​	​	(1,428)	​	​	—	​	​	—	​
Other	​	​	(3)	​	​	1	​	​	(2)	​	​	—	​	​	(4)	​
Net cash provided by (used in) financing activities	​	​	439	​	​	457	​	​	(1,564)	​	​	—	​	​	(668)	​
Effect of exchange rate changes on cash, cash equivalents and restricted cash	​	​	—	​	​	—	​	​	6	​	​	—	​	​	6	​
Net change in cash, cash equivalents and restricted cash	​	​	—	​	​	(1)	​	​	517	​	​	—	​	​	516	​
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	​	$	—	​	$	—	​	$	3,298	​	$	—	​	$	3,298	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Reconciliation of cash, cash equivalents and restricted cash:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	—	​	$	—	​	$	3,259	​	$	—	​	$	3,259	​
Restricted cash included in Other current assets	​	​	—	​	​	—	​	​	1	​	​	—	​	​	1	​
Restricted cash included in Other non-current assets	​	​	—	​	​	—	​	​	38	​	​	—	​	​	38	​
Total cash, cash equivalents and restricted cash	​	$	—	​	$	—	​	$	3,298	​	$	—	​	$	3,298	​

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​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2019														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	Newmont		​	Other		​	​	​	​	Corporation		​
Condensed Consolidating Balance Sheet	​	Corporation			USA			Subsidiaries			Eliminations			Consolidated
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	—	​	$	—	​	$	2,243	​	$	—	​	$	2,243	​
Trade receivables	​	​	—	​	​	4	​	​	369	​	​	—	​	​	373	​
Intercompany receivable	​	​	7,738	​	​	3,669	​	​	7,350	​	​	(18,757)	​	​	—	​
Investments	​	​	—	​	​	—	​	​	237	​	​	—	​	​	237	​
Inventories	​	​	—	​	​	—	​	​	1,014	​	​	—	​	​	1,014	​
Stockpiles and ore on leach pads	​	​	—	​	​	—	​	​	812	​	​	—	​	​	812	​
Other current assets	​	​	1	​	​	40	​	​	529	​	​	—	​	​	570	​
Current assets held for sale	​	​	—	​	​	—	​	​	1,023	​	​	—	​	​	1,023	​
Current assets	​	​	7,739	​	​	3,713	​	​	13,577	​	​	(18,757)	​	​	6,272	​
Property, plant and mine development, net	​	​	10	​	​	49	​	​	25,242	​	​	(25)	​	​	25,276	​
Investments	​	​	190	​	​	5	​	​	3,004	​	​	—	​	​	3,199	​
Investments in subsidiaries	​	​	24,800	​	​	6,546	​	​	—	​	​	(31,346)	​	​	—	​
Stockpiles and ore on leach pads	​	​	—	​	​	—	​	​	1,484	​	​	—	​	​	1,484	​
Deferred income tax assets	​	​	101	​	​	—	​	​	448	​	​	—	​	​	549	​
Goodwill	​	​	—	​	​	—	​	​	2,674	​	​	—	​	​	2,674	​
Non-current intercompany receivable	​	​	1,814	​	​	472	​	​	—	​	​	(2,286)	​	​	—	​
Other non-current assets	​	​	—	​	​	59	​	​	461	​	​	—	​	​	520	​
Total assets	​	$	34,654	​	$	10,844	​	$	46,890	​	$	(52,414)	​	$	39,974	​
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Accounts payable	​	$	—	​	$	40	​	$	499	​	$	—	​	$	539	​
Intercompany payable	​	​	7,353	​	​	1,814	​	​	9,590	​	​	(18,757)	​	​	—	​
Employee-related benefits	​	​	3	​	​	81	​	​	277	​	​	—	​	​	361	​
Income and mining taxes	​	​	—	​	​	—	​	​	162	​	​	—	​	​	162	​
Lease and other financing obligations	​	​	—	​	​	—	​	​	100	​	​	—	​	​	100	​
Debt	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Other current liabilities	​	​	60	​	​	116	​	​	704	​	​	—	​	​	880	​
Current liabilities held for sale	​	​	—	​	​	—	​	​	343	​	​	—	​	​	343	​
Current liabilities	​	​	7,416	​	​	2,051	​	​	11,675	​	​	(18,757)	​	​	2,385	​
Debt	​	​	5,815	​	​	—	​	​	323	​	​	—	​	​	6,138	​
Lease and other financing obligations	​	​	—	​	​	—	​	​	596	​	​	—	​	​	596	​
Reclamation and remediation liabilities	​	​	—	​	​	21	​	​	3,443	​	​	—	​	​	3,464	​
Deferred income tax liabilities	​	​	—	​	​	539	​	​	1,868	​	​	—	​	​	2,407	​
Employee-related benefits	​	​	3	​	​	193	​	​	252	​	​	—	​	​	448	​
Non-current intercompany payable	​	​	—	​	​	—	​	​	2,311	​	​	(2,311)	​	​	—	​
Silver streaming agreement	​	​	—	​	​	—	​	​	1,058	​	​	—	​	​	1,058	​
Other non-current liabilities	​	​	—	​	​	42	​	​	1,019	​	​	—	​	​	1,061	​
Total liabilities	​	​	13,234	​	​	2,846	​	​	22,545	​	​	(21,068)	​	​	17,557	​
Contingently redeemable noncontrolling interest	​	​	—	​	​	—	​	​	47	​	​	—	​	​	47	​
Equity:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Newmont stockholders’ equity	​	​	21,420	​	​	7,998	​	​	23,348	​	​	(31,346)	​	​	21,420	​
Noncontrolling interests	​	​	—	​	​	—	​	​	950	​	​	—	​	​	950	​
Total equity	​	​	21,420	​	​	7,998	​	​	24,298	​	​	(31,346)	​	​	22,370	​
Total liabilities and equity	​	$	34,654	​	$	10,844	​	$	46,890	​	$	(52,414)	​	$	39,974	​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2018														​
​	​	(Issuer)		​	(Guarantor)		​	(Non-Guarantor)		​	​	​	​	Newmont		​
​	​	Newmont		​	Newmont		​	Other		​	​	​	​	Corporation		​
Condensed Consolidating Balance Sheet	​	Corporation			USA			Subsidiaries			Eliminations			Consolidated
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	—	​	$	—	​	$	3,397	​	$	—	​	$	3,397	​
Trade receivables	​	​	—	​	​	63	​	​	191	​	​	—	​	​	254	​
Intercompany receivable	​	​	6,351	​	​	5,027	​	​	8,296	​	​	(19,674)	​	​	—	​
Investments	​	​	—	​	​	—	​	​	48	​	​	—	​	​	48	​
Inventories	​	​	—	​	​	180	​	​	450	​	​	—	​	​	630	​
Stockpiles and ore on leach pads	​	​	—	​	​	195	​	​	502	​	​	—	​	​	697	​
Other current assets	​	​	—	​	​	30	​	​	221	​	​	—	​	​	251	​
Current assets held for sale	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Current assets	​	​	6,351	​	​	5,495	​	​	13,105	​	​	(19,674)	​	​	5,277	​
Property, plant and mine development, net	​	​	14	​	​	2,680	​	​	9,593	​	​	(29)	​	​	12,258	​
Investments	​	​	62	​	​	4	​	​	205	​	​	—	​	​	271	​
Investments in subsidiaries	​	​	13,083	​	​	—	​	​	3	​	​	(13,086)	​	​	—	​
Stockpiles and ore on leach pads	​	​	—	​	​	658	​	​	1,208	​	​	—	​	​	1,866	​
Deferred income tax assets	​	​	—	​	​	—	​	​	401	​	​	—	​	​	401	​
Goodwill	​	​	—	​	​	—	​	​	58	​	​	—	​	​	58	​
Non-current intercompany receivable	​	​	653	​	​	704	​	​	6	​	​	(1,363)	​	​	—	​
Other non-current assets	​	​	—	​	​	271	​	​	313	​	​	—	​	​	584	​
Total assets	​	$	20,163	​	$	9,812	​	$	24,892	​	$	(34,152)	​	$	20,715	​
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Accounts payable	​	$	—	​	$	83	​	$	220	​	$	—	​	$	303	​
Intercompany payable	​	​	5,554	​	​	2,741	​	​	11,379	​	​	(19,674)	​	​	—	​
Employee-related benefits	​	​	—	​	​	138	​	​	167	​	​	—	​	​	305	​
Income and mining taxes	​	​	—	​	​	19	​	​	52	​	​	—	​	​	71	​
Lease and other financing obligations	​	​	—	​	​	1	​	​	26	​	​	—	​	​	27	​
Debt	​	​	626	​	​	—	​	​	—	​	​	—	​	​	626	​
Other current liabilities	​	​	52	​	​	135	​	​	268	​	​	—	​	​	455	​
Current liabilities held for sale	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Current liabilities	​	​	6,232	​	​	3,117	​	​	12,112	​	​	(19,674)	​	​	1,787	​
Debt	​	​	3,418	​	​	—	​	​	—	​	​	—	​	​	3,418	​
Lease and other financing obligations	​	​	—	​	​	3	​	​	187	​	​	—	​	​	190	​
Reclamation and remediation liabilities	​	​	—	​	​	325	​	​	2,156	​	​	—	​	​	2,481	​
Deferred income tax liabilities	​	​	—	​	​	90	​	​	522	​	​	—	​	​	612	​
Employee-related benefits	​	​	3	​	​	236	​	​	162	​	​	—	​	​	401	​
Non-current intercompany payable	​	​	7	​	​	—	​	​	1,385	​	​	(1,392)	​	​	—	​
Silver streaming agreement	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​
Other non-current liabilities	​	​	1	​	​	637	​	​	298	​	​	(622)	​	​	314	​
Total liabilities	​	​	9,661	​	​	4,408	​	​	16,822	​	​	(21,688)	​	​	9,203	​
Contingently redeemable noncontrolling interest	​	​	—	​	​	—	​	​	47	​	​	—	​	​	47	​
Equity:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Newmont stockholders’ equity	​	​	10,502	​	​	5,404	​	​	7,060	​	​	(12,464)	​	​	10,502	​
Noncontrolling interests	​	​	—	​	​	—	​	​	963	​	​	—	​	​	963	​
Total equity	​	​	10,502	​	​	5,404	​	​	8,023	​	​	(12,464)	​	​	11,465	​
Total liabilities and equity	​	$	20,163	​	$	9,812	​	$	24,892	​	$	(34,152)	​	$	20,715	​

​

​

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 32 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 5. 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 Nevada reportable segment. The Newmont Ghana Gold and Newmont Golden Ridge matters relate to the Africa reportable segment. The Mexico tax matter relates to the North America reportable segment.

Environmental Matters

Refer to Note 7 and Note 25 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. The parties are finalizing the ASAOC, after which the ASAOC will be subject to public comment prior to becoming effective.

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.

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

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 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 complete Phase 1 remedial actions during the 2020 construction season with a focus on completing the Pit 4 backfill and preparations for Phase 2 remediation activities. Phase 2 remediation activities will be initiated in 2020.

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 the second quarter of 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 $167 at December 31, 2019.

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 to 2019, OEFA issued notices of alleged violations of OEFA standards to Yanacocha and Conga relating to past inspections. 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 33,000 units and the water authority alleged violations range from zero to 10 units, with each unit having a potential fine equivalent to approximately $.001290 based on current exchange rates with a total potential fine amount for outstanding matters of ($0 to $41.6). 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 alleged 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

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

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 appealed the Superior Court ruling to the Peru Supreme Court. On January 18, 2019, the Peru Supreme Court issued notice that three judges support the position of the tax authority and two judges support the position of Yanacocha. Because four votes are required for a final decision, an additional judge has been selected to issue a decision and the parties conducted oral arguments in April 2019. In early February 2020, the additional judge ruled in favor of the tax authority, finalizing a decision of the Peru Supreme Court against Yanacocha. Yanacocha will file an action objecting to the fines and interest associated with the underlying decision of the Peru Supreme Court. The potential liability in this matter is in the form of taxes of approximately $8, and fines and interest in an amount up to $82, for a total amount of up to $90. 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$1,200. 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.

Newmont Ghana Gold Limited and Newmont Golden Ridge Limited

On December 24, 2018, two individual plaintiffs, who are members of the Ghana Parliament (“Plaintiffs”) filed, a writ to invoke the original jurisdiction of the Supreme Court of Ghana. On January 16, 2019, Plaintiffs filed the Statement of Plaintiff’s Case outlining the details of the Plaintiff’s case and subsequently served Newmont Ghana Gold Limited (“NGGL”) and Newmont Golden Ridge Limited (“NGRL”) along with the other named defendants, the Attorney General of Ghana, the Minerals Commission of Ghana and 33 other mining companies with interests in Ghana. The Plaintiffs allege that under article 268 of the 1992 Constitution of Ghana

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

that the mining company defendants are not entitled to carry out any exploitation of minerals or other natural resources in Ghana, unless their respective transactions, contracts or concessions are ratified or exempted from ratification by the Parliament of Ghana. Newmont’s current mining leases are both ratified by Parliament: NGGL June 13, 2001 mining lease, ratified by Parliament on October 21, 2008, and NGRL January 19, 2010 mining lease, ratified by Parliament on December 3, 2015. The writ alleges that any mineral exploitation prior to Parliament ratification is unconstitutional. The Plaintiffs seek several remedies including: (i) declaration as to the meaning of constitutional language at issue; (ii) an injunction precluding exploitation of minerals for any mining company without prior Parliament ratification; (iii) a declaration that all revenue as a result of violation of the Constitution shall be accounted for and recovered via cash equivalent, and; (iv) an order that the Attorney General and Minerals Commission submit all un-ratified mining leases, undertakings or contracts to Parliament for ratification. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.

On December 18, 2019, an individual plaintiff filed a writ against NGGL and other named defendants, including the Attorney General of Ghana, the Minerals Commission of Ghana, and other mining companies with interests in Ghana, seeking the same relief sought in the above-referenced case, plus perpetual and interlocutory injunctive relief to cease operations against NGGL and the other mining companies. Newmont intends to vigorously defend this matter, but cannot reasonably predict the outcome.

Goldcorp, Inc. 100% Newmont Owned

Shareholder Action. On October 28, 2016 and February 14, 2017, separate proposed class actions were commenced in the Ontario Superior Court of Justice pursuant to the Class Proceedings Act (Ontario) against the Company and certain of its current and former officers. Both statement of claims alleged common law negligent misrepresentation in Goldcorp, Inc.’s public disclosure concerning the Peñasquito mine and also pleaded an intention to seek leave from the Court to proceed with an allegation of statutory misrepresentation pursuant to the secondary market civil liability provisions under the Securities Act (Ontario). By a consent order, the latter lawsuit will proceed, and the former action has been stayed. The active lawsuit purports to be brought on behalf of persons who acquired Goldcorp Inc.’s securities in the secondary market during an alleged class period from October 30, 2014 to August 23, 2016. The Company intends to vigorously defend this matter, but cannot reasonably predict the outcome.

Mexico Tax Matters

Tax Reassessment from Mexican Tax Authority. During 2016, the Mexican Tax Authority issued reassessment notices for two of Goldcorp, Inc.’s Mexican subsidiaries primarily related to a reduction in the amount of deductible interest paid on related party debt by those subsidiaries during their 2008 and 2009 fiscal years, and the disallowance of certain intra company fees and expenses. The 2008 fiscal year notices reassessed an additional $11 of income tax, interest, and penalties. The 2009 fiscal year notices reassessed an additional $102 of income tax, interest and penalties relating to the reduction in the amount of intra group interest payments. A Mexican subsidiary of Goldcorp, Inc. also received observation letters from the Mexican Tax Authority for fiscal years 2010, 2013, 2014 and 2015 relating to additional matters associated with the Company’s operations in Mexico, with years 2016 and 2017 also remaining outstanding. In the second quarter of 2019, significant progress in settling a number of years and issues under dispute was made, resulting in $74 paid in June, which was fully accrued in the financial statements. The outcome of any potential reassessments for the Company’s Mexican subsidiaries 2010-2016 fiscal years is not readily determinable but could have a material impact on the Company. The Company believes that its tax positions are valid and intends to vigorously defend its tax filing positions.

State of Zacatecas’ Ecological Tax. In December 2016, the State of Zacatecas in Mexico approved new environmental taxes that became effective January 1, 2017. Certain operations at the Company’s Peñasquito mine may be subject to these taxes. Payments are due monthly in arrears with the first payment due on February 17, 2017. The legislation provides little direction for how the taxes are to be calculated. The Company is not able to calculate the taxes with sufficient reliability given that (a) the legislation at issue is broadly worded and the State of Zacatecas has not issued any guidance on how the taxes are to be levied; and (b) claims filed by other similarly situated companies are yet to be resolved by the Supreme Court, the results of which may impact how to calculate the taxes payable by the Company. Further, the Company believes that there is no legal basis for the taxes and filed legal claims challenging their constitutionality and legality on March 9, 2017. Other companies similarly situated also filed legal claims against the taxes. The Mexican federal government also filed a claim before the National Supreme Court against the State of Zacatecas challenging whether the State of Zacatecas had the constitutional authority to implement the taxes. On February 11, 2019, the National Supreme Court of Mexico ruled that the State of Zacatecas has the constitutional authority to implement environmental taxes, and that ruling was not

NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

subject to appeal. The Company’s case continued, and although there was an initial ruling in favor of the Company, this ruling was appealed by the local tax authorities. On October 15, 2019, the First Collegiate Circuit Court of the Auxiliary Center of the Eleventh Region reversed the favorable ruling (except with respect to one issue, which was affirmed in the Company’s favor). While the First Collegiate Circuit Court’s ruling is not subject to appeal, the Company is considering other potential defense mechanisms to challenge the taxes and recorded immaterial amounts as potential estimates for the amount of the taxes.

Other Commitments and Contingencies

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental remediation, reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At December 31, 2019 and 2018, there were $1,924 and $2,514, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

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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.

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In connection with our investment in Galore Creek, Newmont will owe NovaGold Resources Inc. $75 upon the earlier of approval to construct a mine, mill and all related infrastructure for the Galore Creek project or the initiation of construction of a mine, mill or any related infrastructure. The amount due is non-interest bearing. The decision for an approval and commencement of construction is contingent on the results of a prefeasibility and feasibility study, neither of which have occurred. As such, this amount has not been accrued.

As part of the Newmont Goldcorp transaction, Newmont assumed deferred payments to Barrick of $154 as of December 31, 2019 to be satisfied through funding a portion of Barrick’s share of project expenditures at the Norte Abierto project. These deferred payments to Barrick are included in Other non-current liabilities.

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NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 33 UNAUDITED SUPPLEMENTARY DATA

Quarterly Data

The following is a summary of selected quarterly financial information (unaudited):

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​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	2019											​
​	​	Three Months Ended											​
​		March 31			June 30			September 30			December 31
Sales	​	$	1,803	​	$	2,257	​	$	2,713	​	$	2,967	​
Gross profit (1)	​	$	483	​	$	331	​	$	711	​	$	780	​
Income (loss) from continuing operations (2)	​	$	113	​	$	1	​	$	2,226	​	$	537	​
Income (loss) from discontinued operations (2)	​	​	(26)	​	​	(26)	​	​	(48)	​	​	28	​
Net income (loss) attributable to Newmont stockholders	​	$	87	​	$	(25)	​	$	2,178	​	$	565	​
Income (loss) per common share	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic:	​	​	​	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	0.21	​	$	—	​	$	2.72	​	$	0.66	​
Discontinued operations	​	​	(0.05)	​	​	(0.03)	​	​	(0.06)	​	​	0.03	​
​	​	$	0.16	​	$	(0.03)	​	$	2.66	​	$	0.69	​
Diluted:	​	​	​	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	0.21	​	$	—	​	$	2.71	​	$	0.66	​
Discontinued operations	​	​	(0.05)	​	​	(0.03)	​	​	(0.06)	​	​	0.03	​
​	​	$	0.16	​	$	(0.03)	​	$	2.65	​	$	0.69	​
Weighted average common shares (millions)	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic	​	​	534	​	​	766	​	​	820	​	​	818	​
Diluted	​	​	534	​	​	768	​	​	822	​	​	820	​
Cash dividends declared per common share (3)	​	$	0.14	​	$	1.02	​	$	0.14	​	$	0.14	​
Closing price of common stock	​	$	35.77	​	$	38.47	​	$	37.92	​	$	43.45	​

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​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	2018											​
​	​	Three Months Ended											​
​		March 31			June 30			September 30			December 31
Sales	​	$	1,817	​	$	1,662	​	$	1,726	​	$	2,048	​
Gross profit (1)	​	$	459	​	$	381	​	$	401	​	$	541	​
Income (loss) from continuing operations (2)	​	$	170	​	$	274	​	$	(161)	​	$	(3)	​
Income (loss) from discontinued operations (2)	​	​	22	​	​	18	​	​	16	​	​	5	​
Net income (loss) attributable to Newmont stockholders	​	$	192	​	$	292	​	$	(145)	​	$	2	​
Income (loss) per common share	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic:	​	​	​	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	0.32	​	$	0.52	​	$	(0.31)	​	$	—	​
Discontinued operations	​	​	0.04	​	​	0.03	​	​	0.04	​	​	—	​
​	​	$	0.36	​	$	0.55	​	$	(0.27)	​	$	—	​
Diluted:	​	​	​	​	​	​	​	​	​	​	​	​	​
Continuing operations	​	$	0.32	​	$	0.51	​	$	(0.31)	​	$	—	​
Discontinued operations	​	​	0.04	​	​	0.03	​	​	0.04	​	​	—	​
​	​	$	0.36	​	$	0.54	​	$	(0.27)	​	$	—	​
Weighted average common shares (millions)	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic	​	​	534	​	​	533	​	​	533	​	​	533	​
Diluted	​	​	535	​	​	535	​	​	535	​	​	535	​
Cash dividends declared per common share	​	$	0.14	​	$	0.14	​	$	0.14	​	$	0.14	​
Closing price of common stock	​	$	39.07	​	$	37.71	​	$	30.20	​	$	34.65	​

(1)	Sales less Costs applicable to sales, Depreciation and amortization and Reclamation and remediation.

(2)	Attributable to Newmont stockholders.

(3)	Special dividends declared per common share was $0.88 for the three months ended June 30, 2019.

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NEWMONT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in millions, except per share, per ounce and per pound amounts)

NOTE 34 SUBSEQUENT EVENTS

See Note 5 for information regarding assets held for sale.

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See Note 20 for information regarding the sale of the Company’s entire interest in Continental.

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Repurchases of Common Stock

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In December 2019, the Board of Directors authorized a stock repurchase program, under which the Company is authorized to repurchase shares of outstanding common stock through the end of 2020, provided that the aggregate value of shares of common stock repurchased does not exceed $1 billion. Through December 31, 2019, the Company executed $506 of common stock repurchases, of which $479 were settled as of December 31, 2019 and the remaining $27 were settled on January 2, 2020.

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ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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NONE.