NOTE 6. DEBT

The components of debt follow (in millions):



	June 30, 2017			December 31, 2016
Senior notes and debentures:
Issued by FCX	$	13,238		$	13,745
Issued by FMC	358			359
Issued by Freeport-McMoRan Oil & Gas LLC (FM O&G LLC)	266			267
Cerro Verde credit facility	1,485			1,390
Cerro Verde shareholder loans	—			261
Other	7			5
Total debt^a	15,354			16,027
Less current portion of debt	(2,216		)	(1,232		)
Long-term debt	$	13,138		$	14,795


a.	Includes additions for unamortized fair value adjustments totaling $163 million at June 30, 2017 ($179 million at December 31, 2016), and is net of reductions for unamortized net discounts and unamortized debt issuance costs totaling $98 million at June 30, 2017 ($100 million at December 31, 2016).

Revolving Credit Facility. At June 30, 2017, there were no borrowings outstanding and $37 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.

Senior Notes Issued by FCX. In March 2017, FCX’s 2.15% Senior Notes matured, and the $500 million outstanding principal balance was repaid.

Cerro Verde Credit Facility and Shareholder Loans. In June 2017, Cerro Verde’s credit facility was amended to increase the commitment by $225 million to $1.5 billion, modify the amortization schedule and to extend the maturity date to June 19, 2022. The amended credit facility amortizes in four installments, with $225 million due on December 31, 2020, $225 million due on June 30, 2021, $525 million due on December 31, 2021, and the remaining balance due on the maturity date of June 19, 2022. All other terms, including the interest rates, remain the same. The interest rate on Cerro Verde's credit facility was 3.12 percent at June 30, 2017. Cerro Verde used proceeds from its amended credit facility plus available cash to repay the balance of its shareholder loans in June 2017. Refer to Note 8 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.

Exchanges and Early Extinguishment of Debt. During second-quarter 2017, a $4 million loss was recognized associated with the modification of Cerro Verde’s credit facility.

During second-quarter 2016, FCX redeemed certain senior notes in exchange for its common stock, which resulted in a gain of $39 million. Partially offsetting the gain was $3 million in losses primarily associated with the modification of FCX’s revolving credit facility in first-quarter 2016. Refer to Notes 8 and 10 of FCX’s annual report on Form 10-K for the year ended December 31, 2016, for further discussion.

Interest Expense, Net. Consolidated interest expense from continuing operations (excluding capitalized interest) totaled $192 million in second-quarter 2017, $218 million in second-quarter 2016, $387 million for the first six months of 2017 and $436 million for the first six months of 2016. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $30 million in second-quarter 2017, $22 million in second-quarter 2016, $58 million for the first six months of 2017 and $42 million for the first six months of 2016. Capitalized interest added to oil and gas properties not subject to amortization totaled $7 million for the first six months of 2016 (none in second-quarter 2016 or 2017).