Financial Instruments (Unaudited) (Tables)

3 Months Ended

Mar. 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) follows (in millions):

	Three Months Ended
	March 31,
	2013			2012
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(12	)	$	18
Hedged item	12			(18		)
Realized (losses) gains:
Matured derivative financial instruments	(2		)	10

Schedule of Derivative Instruments

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

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	491	$	3.57	$	3.41	August 2013
Gold (thousands of ounces)	105	1,606		1,601		July 2013
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	124	3.57		3.42		July 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 for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2013			2012
Embedded derivatives in provisional sales contractsa	$	(83	)	$	184
Copper forward contractsb	3			11

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 derivative financial instruments recorded on the consolidated balance sheets follows (in millions):

	March 31, 2013		December 31, 2012
Derivatives designated as hedging instruments
Commodity contracts:
Copper futures and swap contracts:a
Asset positionb	$	—	$	5
Liability positionc	8		1
Derivatives not designated as hedging instruments
Commodity contracts:
Embedded derivatives in provisional sales/purchase contracts:d
Gross amounts in an asset position	$	19	$	36
Less gross amounts offset in the balance sheet	—		8
Net amounts in an asset position	$	19	$	28
Gross amounts in a liability position	$	79	$	27
Less gross amounts offset in the balance sheet	—		8
Net amounts in a liability position	$	79	$	19
Copper forward contracts:
Asset positionb	$	1	$	—

a. FCX paid $10 million to brokers at March 31, 2013, and $7 million at December 31, 2012, for margin requirements (recorded in other current assets).

b. Amounts recorded in other current assets. 

c. Amounts recorded in accounts payable and accrued liabilities. 

d. These derivatives are the only derivatives that are offset in the balance sheet in accordance with accounting guidance. Based on the respective contract, embedded derivatives on provisional sales/purchases are netted with the corresponding outstanding receivable/payable balances. At March 31, 2013, the net amounts were in a net liability position of $60 million, of which a credit of $43 million was netted against trade accounts receivable, and a credit of $17 million was included in accounts payable and accrued liabilities. At December 31, 2012, the net amounts were in a net asset position of $9 million, of which a debit of $15 million was included in trade accounts receivable, and a credit of $6 million was included in accounts payable and accrued liabilities.

Schedule of Cash and Cash Equivalents [Table Text Block]

A summary of cash and cash equivalents follows (in millions):

	March 31, 2013		December 31, 2012
Money market funds	$	8,367	$	2,991
Time deposits	697		514
Overnight repurchase agreementa	300		—
Cash in banks	231		200
Total cash and cash equivalents	$	9,595	$	3,705

a. In the first quarter of 2013, FCX entered into an overnight repurchase agreement with a financial institution. In connection with the agreement, FCX purchases an undivided interest in U.S. government treasury and/or agency securities at market value, and the financial institution agrees to repurchase the securities on demand (the following business day) at the original purchase price plus a designated interest rate. FCX does not participate in the actual return on the underlying securities. Because of its short-term, highly liquid nature, and the insignificant risk of changes in value, FCX considers this financial instrument a cash equivalent.