CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

A summary of changes in estimated environmental obligations for the years ended December 31 follows:



	2016			2015			2014
Balance at beginning of year	$	1,215		$	1,174		$	1,167
Accretion expense^a	81			78			77
Additions	26			33			16
Reductions^b	(43		)	(3		)	(6		)
Spending	(58		)	(67		)	(80		)
Balance at end of year	1,221			1,215			1,174
Less current portion	(129		)	(100		)	(105		)
Long-term portion	$	1,092		$	1,115		$	1,069


a.	Represents accretion of the fair value of environmental obligations assumed in the 2007 acquisition of FMC, which were determined on a discounted cash flow basis.


b.	Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments.

Summary of income tax examinations

The tax years for FCX's major tax jurisdictions that remain subject to examination are as follows:



Jurisdiction	Years Subject to Examination	Additional Open Years
U.S. Federal	2013	2014-2016
Indonesia	2008, 2011, 2012, 2014, 2015	2013, 2016
Peru	2011	2012-2016
Chile	2013-2015	2016

A summary of these assessments follows:



Tax Year	Tax Assessment		Penalty and Interest Assessment		Total
2002 to 2005	$	16	$	51	$	67
2006	7		49		56
2007	12		18		30
2008	21		13		34
2009	56		48		104
2010	66		98		164
2011, 2014 to 2016	22		3		25
	$	200	$	280	$	480

PT-FI has received assessments from the Indonesian tax authorities for additional taxes and interest related to various audit exceptions for income and other taxes. PT-FI has filed objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows:



Tax Year	Tax Assessment		Interest Assessment		Total
2005	$	103	$	49	$	152
2006	22		10		32
2007	91		44		135
2008	62		52		114
2011	78		13		91
2012	123		—		123
2014	152		—		152
	$	631	$	168	$	799

Schedule of Asset Retirement Obligations

A summary of changes in FCX’s AROs for the years ended December 31 follows:



	2016				2015			2014
Balance at beginning of year	$	2,771			$	2,744		$	2,316
Liabilities incurred	12				97			429			^a
Settlements and revisions to cash flow estimates, net	529			^b	(66		)	56
Accretion expense	137				131			116
Dispositions	(626		)	^c	—			(61		)
Spending	(188		)		(132		)	(101		)
Other	—				(3		)	(11		)
Balance at end of year	2,635				2,771			2,744
Less current portion	(240		)		(172		)	(189		)
Long-term portion	$	2,395			$	2,599		$	2,555


a.	Primarily reflects updates to the closure approach to reclaim an overburden stockpile in Indonesia.


b.