INTANGIBLE ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2011

Intangible Assets and Liabilities [Abstract]

Intangible Assets and Liabilities

INTANGIBLE ASSETS AND LIABILITIES

The components of intangible assets and intangible liabilities (included in other liabilities) follow:

	December 31, 2011
	Gross Carrying Value		Accumulated Amortization			Net Book Value
Indefinite-lived water rights	$	239	$	—		$	239
Patents and process technology	48		(14		)	34
Royalty payments	37		(21		)	16
Power contracts	25		(18		)	7
Other intangibles	38		(9		)	29
Total intangible assets	$	387	$	(62	)	$	325
Intangible liabilities:
Treatment and refining terms in
sales contracts	$	52	$	(30	)	$	22

	December 31, 2010
	Gross Carrying Value		Accumulated Amortization			Net Book Value
Indefinite-lived water rights	$	245	$	—		$	245
Patents and process technology	48		(11		)	37
Royalty payments	37		(18		)	19
Power contracts	25		(17		)	8
Other intangibles	25		(6		)	19
Total intangible assets	$	380	$	(52	)	$	328
Intangible liabilities:
Treatment and refining terms in
sales contracts	$	52	$	(25	)	$	27

FCX performs its annual impairment testing of indefinite-lived intangible assets in the fourth quarter of each year. No material impairments were recorded during the three-year period ended December 31, 2011.

Amortization of intangible assets recognized in production and delivery costs was $10 million in 2011 and 2010, and $16 million in 2009. Amortization of intangible liabilities recognized in revenues was $5 million in 2011, $4 million in 2010 and $6 million in 2009. The estimated net amortization expense for the next five years is considered to be immaterial.