Financial Instruments (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2012

Financial Instruments [Abstract]

Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item (firm sales commitments) follows (in millions):

	Three Months Ended
	March 31,
	2012			2011
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	18		$	(15	)
Hedged item	(18		)	15
Realized gains:
Matured derivative financial instruments	10			12

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at March 31, 2012, follows:

	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	326	$	3.69	$	3.82	August 2012
Gold (thousands of ounces)	53	1,690		1,663		May 2012
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	181	3.69		3.84		June 2012
Molybdenum (thousand of pounds)	42	12.83		12.44		April 2012

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized gains (losses) recognized in income before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2012		2011
Embedded derivatives in provisional sales contractsa	$	184	$	(47	)
Copper forward contractsb	11		—

a. Amounts recorded in revenues. 

b.Amounts recorded in cost of sales as production and delivery costs.

Fair Values of Unsettled Derivative Financial Instruments

A summary of the fair values of unsettled derivative financial instruments recorded on the consolidated balance sheets follows (in millions):

	March 31, 2012			December 31, 2011
Derivatives designated as hedging instruments
Commodity contracts:
Copper futures and swap contracts:a
Asset positionb	$	10		$	3
Liability positionc	(3		)	(13		)
Derivatives not designated as hedging instruments
Commodity contracts:
Embedded derivatives in provisional sales/purchase contracts:d
Asset position	$	46		$	72
Liability position	(29		)	(82		)
Copper forward contracts:
Asset positionb	1			2

a. FCX had paid $12 million to brokers at March 31, 2012, and $31 million at December 31, 2011, for margin requirements (recorded in other current assets). In addition, FCX held $3 million in margin funding from customers at December 31, 2011, associated with margin requirements (recorded in accounts payable and accrued liabilities).

b. Amounts recorded in other current assets. 

c. Amounts recorded in accounts payable and accrued liabilities. 

d. Amounts recorded either as a net accounts receivable or a net accounts payable.