FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2015

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 (losses) gains 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:

	2015			2014			2013
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(3	)	$	(12	)	$	1
Hedged item – firm sales commitments	3			12			(1		)
Realized losses:
Matured derivative financial instruments	(34		)	(9		)	(17		)

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at December 31, 2015, follows:

	Open	Average Price Per Unit				Maturities
	Positions	Contract		Market		Through
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	738	$	2.22	$	2.13	July 2016
Gold (thousands of ounces)	215	1,071		1,062		March 2016
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	99	2.16		2.14		April 2016

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 (loss) income before income taxes and equity in affiliated companies’ net (losses) earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows:

	2015			2014				2013
Embedded derivatives in provisional copper and gold
sales contractsa	$	(439	)	$	(289	)		$	(136	)
Crude oil options and swapsa	87			513				(344		)
Natural gas swapsa	—			(8		)	—	10
Copper forward contractsb	(15		)	(4		)		3

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

	Assets at December 31,				Liabilities at December 31,
	2015		2014		2015		2014
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	21	$	15	$	82	$	93
Crude oil derivatives	—		316		—		—
Copper derivatives	1		—		11		7
	22		331		93		100
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	6		1		6		1
Crude oil derivatives	—		—		—		—
Copper derivatives	1		—		1		—
	7		1		7		1
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	15		14		76		92
Crude oil derivatives	—		316		—		—
Copper derivatives	—		—		10		7
	$	15	$	330	$	86	$	99
Balance sheet classification:
Trade accounts receivable	$	10	$	5	$	52	$	56
Other current assets	—		316		—		—
Accounts payable and accrued liabilities	5		9		34		43
	$	15	$	330	$	86	$	99

A summary of the fair values of unsettled commodity derivative financial instruments follows:

	December 31,
	2015		2014
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	1	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	21		15
Crude oil optionsb	—		316
Total derivative assets	$	22	$	331

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contractsa	$	11	$	7
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional copper and gold
sales/purchase contracts	82		93
Total derivative liabilities	$	93	$	100

a. FCX had paid $10 million to brokers at December 31, 2015 and 2014, for margin requirements (recorded in other current assets).

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