CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Obligations

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

	2018			2017			2016
Balance at beginning of year	$	1,439		$	1,221		$	1,215
Accretion expensea	100			84			81
Additionsb	56			241			26
Reductionsb	—			(43		)	(43		)
Spending	(84		)	(64		)	(58		)
Balance at end of year	1,511			1,439			1,221
Less current portion	(132		)	(134		)	(129		)
Long-term portion	$	1,379		$	1,305		$	1,092

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. Adjustments to environmental obligations that do not provide future economic benefits are charged to operating income. 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:

	2018			2017			2016
Balance at beginning of year	$	2,583		$	2,638		$	2,774
Liabilities incurred	1			14			12
Settlements and revisions to cash flow estimates, net	50			(112		)	529			a
Accretion expense	110			124			137
Dispositionsb	(37		)	(10		)	(626		)
Spending	(160		)	(71		)	(188		)
Balance at end of year	2,547			2,583			2,638
Less current portion	(317		)	(286		)	(240		)
Long-term portion	$	2,230		$	2,297		$	2,398

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.

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	2014-2018
Indonesia	2008, 2011-2016	2017-2018
Peru	2012-2013	2014-2018
Chile	2016-2017	2018

Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s previous imposition of a 7.5 percent export duty that PT-FI paid under protest during the period April 2017 to December 21, 2018 (refer to Note 13), a summary of these assessments follows:

Tax Year	Tax Assessment		Interest Assessment		Total
2005	$	73	$	35	$	108
2007	47		23		70
2008, 2010 to 2011	55		37		92
2012	124		—		124
2013	154		74		228
2014	139		6		145
2015	158		—		158
2016	266		113		379
	$	1,016	$	288	$	1,304

A summary of these assessments follows:

Tax Year	Tax Assessment		Penalty and Interest Assessment		Total
2003 to 2008	$	56	$	130	$	186
2009	57		51		108
2010	63		105		168
2011	49		65		114
2014 to 2018	32		—		32
	$	257	$	351	$	608

Schedule of Charges for the Cerro Verde Royalty Dispute

summary of the charges recorded in 2018 and 2017 for the Cerro Verde royalty dispute follows:

Royalty and related assessment charges:		2018a			2017				Total
	Production and delivery	$	14		$	203		b	$	217
	Interest expense, net	370			145				515
	Other expense	22			—				22
	(Benefit from) provision for income taxes	(35		)	7			c	(28		)
Net loss attributable to noncontrolling interests		(176		)	(169		)		(345		)
		$	195		$	186			$	381

a. Amounts are net of gains from the refund of GEM for the period October 2012 through the year 2013.

b. Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues).

c. 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.