CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2013

Environmental Loss Contingency Disclosure

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



	2013			2012			2011
Balance at beginning of year	$	1,222		$	1,453		$	1,422
Accretion expense^a	79			80			88
Additions	73			70			132
Reductions^b	(77		)	(182		)	(68		)
Spending	(130		)	(199		)	(121		)
Balance at end of year	1,167			1,222			1,453
Less current portion	(121		)	(186		)	(205		)
Long-term portion	$	1,046		$	1,036		$	1,248


a.	Represented 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 reflected revisions for changes in the anticipated scope and timing of environmental remediation projects and the noncash adjustments of environmental matters.

Asset Retirement Obligation Disclosure

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



	2013			2012			2011
Balance at beginning of year	$	1,146		$	921		$	856
Liabilities assumed in the acquisitions of PXP and MMR^a	1,028			—			—
Liabilities incurred	45			6			9
Settlements and revisions to cash flow estimates, net	123			211			48
Accretion expense	95			55			58
Spending	(107		)	(47		)	(49		)
Other	(2		)	—			(1		)
Balance at end of year	2,328			1,146			921
Less: current portion	(115		)	(55		)	(31		)
Long-term portion	$	2,213		$	1,091		$	890


a.	The fair value of AROs assumed in the acquisitions of PXP and MMR ($741 million and $287 million, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of 2.5 percent, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from 1.3 percent to 6.3 percent.

Summary of Income Tax Contingencies [Table Text Block]

PT-FI has received assessments from the Indonesian tax authorities for additional taxes and interest related to various audit exceptions for income taxes and other taxes as follows:



Date of Assessment	Tax Year	Tax Assessment		Interest Assessment		Total
October 2010	2005	$	103	$	49	$	152
November 2011	2006	22		10		32
March 2012	2007	91		44		135
First-quarter 2013	2008	62		52		114
Second-quarter 2013	2011	56		13		69
Total		$	334	$	168	$	502

- Definition

The entire disclosure for environmental loss contingencies, such as presence of hazardous waste, relevant information from reports issued by regulators, and estimated costs to achieve compliance with regulatory requirements. This element may be used for all of an entity's disclosures about environmental loss contingencies.

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