Financial Instruments (Unaudited) (Tables)

6 Months Ended

Jun. 30, 2013

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						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(6	)	$	(11	)	$	(18	)	$	7
Hedged item	6			11			18			(7		)
Realized (losses) gains:
Matured derivative financial instruments	(13		)	(14		)	(14		)	(4		)

Schedule of Derivative Instruments

At June 30, 2013, the outstanding crude oil and natural gas swap contracts, all of which settle monthly, follow:

	Daily	Weighted-Average			Maturities
	Volumes	Fixed Price		Index	Through
2013 crude oil swaps (MBbls)a	40	$	109.23	Brent	December 2013
2013 natural gas swaps (MMBtu)a	110,000	4.27		Henry Hub	December 2013
2014 natural gas swaps (MMBtu)a	100,000	4.09		Henry Hub	December 2014

a. If the index price is less than the fixed price, FCX receives the difference between the fixed price and the index price. FCX pays the difference between the index price and the fixed price if the index price is greater than the fixed price.

At June 30, 2013, the outstanding crude oil option contracts, all of which settle monthly, follow:

			Average Price (per Bbl)a
Period	Instrument Type	Daily Volumes (MBbls)	Ceiling		Floor		Floor Limit		Average Deferred Premium  (per Bbl)		Index
2013
Jul - Dec	Put optionsb	13	N/A		$	100	$	80	$	6.80	Brent
Jul - Dec	Three-way collarsc	25	$	124.29	100		80		—		Brent
Jul - Dec	Three-way collarsc	5	126.08		90		70		—		Brent
Jul - Dec	Put optionsb	17	N/A		90		70		6.25		Brent
2014
Jan - Dec	Put optionsb	5	N/A		100		80		7.11		Brent
Jan - Dec	Put optionsb	30	N/A		95		75		6.09		Brent
Jan - Dec	Put optionsb	75	N/A		90		70		5.74		Brent
2015
Jan - Dec	Put optionsb	84	N/A		90		70		6.89		Brent

a. The average strike prices do not reflect any premiums to purchase the put options.

b. If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received.

c. If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel. FCX pays the difference between the index price and the per barrel ceiling if the index price is greater than the per barrel ceiling. If the index price is at or above the per barrel floor and at or below the per barrel ceiling, no cash settlement is required.

A summary of FCX’s embedded commodity derivatives at June 30, 2013, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	428	$	3.32	$	3.05	November 2013
Gold (thousands of ounces)	39	1,409		1,198		August 2013
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	55	3.27		3.06		November 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 (losses) for commodity contracts that do not qualify or are not designated as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Embedded derivatives in provisional copper and gold
sales contractsa	$	(205	)	$	(160	)	$	(288	)	$	24
Crude oil options and swapsa	(54		)	—			(54		)	—
Natural gas swapsa	19			—			19			—
Copper forward contractsb	—			1			3			12

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 commodity derivative financial instruments follows (in millions):

	June 30, 2013		December 31, 2012
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts:a	$	—	$	5
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	11		36
Crude oil and natural gas swaps	81		—
Total derivative assets	$	92	$	41
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	14	$	1
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	121		27
Crude oil options	116		—
Copper forward contracts	3		—
Total derivative liabilities	$	254	$	28

a. FCX paid $20 million to brokers at June 30, 2013, and $7 million at December 31, 2012, for margin requirements (recorded in other current assets).

A summary of these unsettled commodity contracts that are offset in the balance sheet follows (in millions):

	Assets				Liabilities
	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Gross amounts recognized:
Commodity contracts:
Embedded derivatives on provisional sales/purchases	$	11	$	36	$	121	$	27
Crude oil and natural gas derivatives	81		—		116		—
Copper derivatives	—		5		17		1
	92		41		254		28
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives on provisional sales/purchases	—		8		—		8
Crude oil and natural gas derivatives	31		—		31		—
Copper derivatives	—		—		—		—
	31		8		31		8
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives on provisional sales/purchases	11		28		121		19
Crude oil and natural gas derivatives	50		—		85		—
Copper derivatives	—		5		17		1
	$	61	$	33	$	223	$	20
Balance sheet classification:
Trade accounts receivable	$	7	$	24	$	95	$	9
Other current assets	49		5		—		—
Other assets	1		—		—		—
Accounts payable and accrued liabilities	4		4		71		11
Other liabilities	—		—		57		—
	$	61	$	33	$	223	$	20