CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Obligations

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

	2017			2016			2015
Balance at beginning of year	$	1,221		$	1,215		$	1,174
Accretion expensea	84			81			78
Additions	241			26			33
Reductionsb	(43		)	(43		)	(3		)
Spending	(64		)	(58		)	(67		)
Balance at end of year	1,439			1,221			1,215
Less current portion	(134		)	(129		)	(100		)
Long-term portion	$	1,305		$	1,092		$	1,115

a. Represents 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 reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments.

Schedule of Asset Retirement Obligations

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

	2017			2016				2015
Balance at beginning of year	$	2,635		$	2,771			$	2,744
Liabilities incurred	14			12				97
Settlements and revisions to cash flow estimates, net	(112		)	529			a	(69		)
Accretion expense	124			137				131
Dispositions	(10		)	(626		)	b	—
Spending	(71		)	(188		)		(132		)
Balance at end of year	2,580			2,635				2,771
Less current portion	(254		)	(240		)		(172		)
Long-term portion	$	2,326		$	2,395			$	2,599

a. Revisions to cash flow estimates were primarily related to revised estimates for an overburden stockpile in Indonesia and at certain oil and gas properties.

b. Primarily reflects the sale of certain oil and gas properties.

Schedule of Charges for the Cerro Verde Royalty Dispute

A summary of the charges recorded in 2017 for the Cerro Verde royalty dispute follows (in millions):

Royalty and related assessment charges:
	Production and delivery	$	203		a
	Interest expense, net	145
	Provision for income taxes	7			b
Net loss attributable to noncontrolling interests		(169		)
		$	186

a. Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues), $6 million of penalties related to the December 2006 to December 2008 royalty assessments and $22 million of related charges primarily associated with the net assets tax.

b. Includes tax charges of $136 million for disputed royalties ($69 million) and other related mining taxes ($67 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $129 million associated with disputed royalties and other related mining taxes for the period December 2006 through December 2013.

Summary of income tax examinations

The tax years for FCX’s major tax jurisdictions that remain subject to examination are as follows:

Jurisdiction	Years Subject to Examination	Additional Open Years
U.S. Federal	N/A	2014-2017
Indonesia	2008, 2011-2016	2017
Peru	2012	2013-2017
Chile	2015-2016	2017

Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s imposition of a 7.5 percent export duty (refer to Note 13), a summary of these assessments follows:

Tax Year	Tax Assessment		Interest Assessment		Total
2005	$	77	$	37	$	114
2007	48		24		72
2008, 2010 to 2011	56		37		93
2012	125		1		126
2013	160		80		240
2014	160		7		167
2015	169		—		169
	$	795	$	186	$	981

A summary of these assessments follows:

Tax Year	Tax Assessment		Penalty and Interest Assessment		Total
2003 to 2005	$	16	$	54	$	70
2006	7		59		66
2007 to 2008	33		31		64
2009	59		49		108
2010	66		107		173
2011, 2014 to 2017	72		64		136
	$	253	$	364	$	617