FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

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 for the years ended December 31 follows:

	2014			2013			2012
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(12	)	$	1		$	15
Hedged item – firm sales commitments	12			(1		)	(15		)
Realized losses:
Matured derivative financial instruments	(9		)	(17		)	(2		)

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized (losses) gains 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, for the years ended December 31 follows:

	2014			2013				2012
Embedded derivatives in provisional copper and gold
sales contractsa	$	(289	)	$	(136	)		$	77
Crude oil options and swapsa	513			(344		)		—
Natural gas swapsa	(8		)	10			—	—
Copper forward contractsb	(4		)	3				15

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 commodity derivative financial instruments follows:

	December 31,
	2014		2013
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	—	$	6
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	15		63
Crude oil optionsb	316		—
Total derivative assets	$	331	$	69

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	7	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	93		16
Crude oil optionsb	—		309
Natural gas swaps	—		4
Copper forward contracts	—		1
Total derivative liabilities	$	100	$	330

a. FCX had paid $10 million to brokers at December 31, 2014, and $1 million at December 31, 2013, for margin requirements (recorded in other current assets).

b. Includes $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest.

A summary of these unsettled commodity contracts that are offset in the balance sheet follows:

	Assets at December 31,				Liabilities at December 31,
	2014		2013		2014		2013
Gross amounts recognized:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	$	15	$	63	$	93	$	16
Crude oil and natural gas derivativesa	316		—		—		313
Copper derivatives	—		6		7		1
	331		69		100		330
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	1		10		1		10
Crude oil and natural gas derivatives	—		—		—		—
Copper derivatives	—		—		—		—
	1		10		1		10
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives on provisional
sales/purchase contracts	14		53		92		6
Crude oil and natural gas derivativesa	316		—		—		313
Copper derivatives	—		6		7		1
	$	330	$	59	$	99	$	320
Balance sheet classification:
Trade accounts receivable	$	5	$	53	$	56	$	—
Other current assets	316		6		—		—
Accounts payable and accrued liabilities	9		—		43		205
Other liabilities	—		—		—		115
	$	330	$	59	$	99	$	320

a. Includes only crude oil derivatives at December 31, 2014.

Schedule of Derivative Instruments

At December 31, 2014, the outstanding crude oil option contracts, which settle monthly and cover approximately 31 million barrels in 2015, follow:

			Average Price (per barrel)a
Period	Instrument Type	Daily Volumes (thousand barrels)	Floor		Floor Limit		Weighted-Average Deferred Premium  (per barrel)		Index
2015
January - December	Put optionsb	84	$	90	$	70	$	6.89	Brent

a. The average strike prices do not reflect any premiums to purchase the put options.

b. If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received.

A summary of FCX’s embedded derivatives at December 31, 2014, follows:

	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	574	$	3.02	$	2.86	May 2015
Gold (thousands of ounces)	178	1,207		1,200		April 2015
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	101	3.01		2.87		April 2015