Financial Instruments (Unaudited) (Tables)

9 Months Ended

Sep. 30, 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						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	13		$	(62	)	$	20		$	(72	)
Hedged item	(13		)	62			(20		)	72
Realized gains (losses):
Matured derivative financial instruments	1			(10		)	(3		)	(4		)

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at September 30, 2012, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	557	$	3.49	$	3.72	March 2013
Gold (thousands of ounces)	67	1,698		1,781		December 2012
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	326	3.50		3.72		January 2013

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					Nine Months Ended
	September 30,					September 30,
	2012		2011			2012		2011
Embedded derivatives in provisional sales contractsa	$	164	$	(657	)	$	188	$	(682	)
Copper forward contractsb	5		4			17		(2		)

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):

	September 30, 2012		December 31, 2011
Derivatives designated as hedging instruments
Commodity contracts:
Copper futures and swap contracts:a
Asset positionb	$	11	$	3
Liability positionc	1		13
Derivatives not designated as hedging instruments
Commodity contracts:
Embedded derivatives in provisional sales/purchase contracts:d
Asset position	$	131	$	72
Liability position	74		82
Copper forward contracts:
Asset positionb	1		2
Liability positionc	1		—

a. FCX received $1 million from brokers associated with margin requirements (recorded in accounts payable and accrued liabilities) as of September 30, 2012, and FCX paid $31 million for margin requirements (recorded in other current assets) as of December 31, 2011. In addition, FCX held $3 million in margin funding from customers as of 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.