FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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) for the years ended December 31 follows:

	2013			2012			2011
Unrealized gains (losses):
Derivative financial instruments	$	1		$	15		$	(28	)
Hedged item	(1		)	(15		)	28
Realized gains (losses):
Matured derivative financial instruments	(17		)	(2		)	(28		)

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, for the years ended December 31 follows:

	2013			2012			2011
Embedded derivatives in provisional copper and gold
sales contractsa	$	(136	)	$	77		$	(519	)
Crude oil optionsa	(344		)	—			—
Natural gas swapsa	10			—		—	—
Copper forward contractsb	3			15			(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 commodity derivative financial instruments follows:

	December 31,
	2013		2012
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	6	$	5
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	63		36
Total derivative assets	$	69	$	41

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	—	$	1
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	16		27
Crude oil optionsb	309		—
Natural gas swaps	4		—
Copper forward contracts	1		—
Total derivative liabilities	$	330	$	28

a. FCX had paid $1 million to brokers at December 31, 2013, and $7 million at December 31, 2012, for margin requirements (recorded in other current assets).

b. Included $444 million for deferred premiums and accrued interest at December 31, 2013.

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

	Assets				Liabilities
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
Gross amounts recognized:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	$	63	$	36	$	16	$	27
Crude oil and natural gas derivatives	—		—		313		—
Copper derivatives	6		5		1		1
	69		41		330		28
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	10		8		10		8
Crude oil and natural gas derivatives	—		—		—		—
Copper derivatives	—		—		—		—
	10		8		10		8
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	53		28		6		19
Crude oil and natural gas derivatives	—		—		313		—
Copper derivatives	6		5		1		1
	$	59	$	33	$	320	$	20
Balance sheet classification:
Trade accounts receivable	$	53	$	24	$	—	$	9
Other current assets	6		5		—		—
Accounts payable and accrued liabilities	—		4		205		11
Other liabilities	—		—		115		—
	$	59	$	33	$	320	$	20

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at December 31, 2013, follows:

	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	673	$	3.24	$	3.34	June 2014
Gold (thousands of ounces)	254	1,245		1,202		April 2014
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	60	3.26		3.34		April 2014

At December 31, 2013, the outstanding crude oil option contracts, all of which settle monthly, follow:

			Average Price (per barrel)a
Period	Instrument Type	Daily Volumes (thousand barrels)	Floor		Floor Limit		Average Deferred Premium  (per barrel)		Index
2014
Jan - Dec	Put optionsb	75	$	90	$	70	$	5.74	Brent
Jan - Dec	Put optionsb	30	95		75		6.09		Brent
Jan - Dec	Put optionsb	5	100		80		7.11		Brent
2015
Jan - Dec	Put optionsb	84	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.