CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Obligations

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

	2019			2018			2017
Balance at beginning of year	$	1,511		$	1,439		$	1,221
Accretion expensea	102			100			84
Additionsb	23			56			241
Reductionsb	(1		)	—			(43		)
Spending	(74		)	(84		)	(64		)
Balance at end of year	1,561			1,511			1,439
Less current portion	(106		)	(132		)	(134		)
Long-term portion	$	1,455		$	1,379		$	1,305

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:

	2019			2018			2017
Balance at beginning of year	$	2,547		$	2,583		$	2,638
Liabilities incurred	20			1			14
Settlements and revisions to cash flow estimates, net	(5		)	50			(112		)
Accretion expense	118			110			124
Dispositions	(5		)	(37		)	(10		)
Spending	(170		)	(160		)	(71		)
Balance at end of year	2,505			2,547			2,583
Less current portion	(330		)	(317		)	(286		)
Long-term portion	$	2,175		$	2,230		$	2,297

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	2014-2019
Indonesia	2008, 2011-2017	2018-2019
Peru	2013-2015	2016-2019
Chile	2017-2018	2019

A summary of these assessments follows:

Tax Year	Tax Assessment		Penalty and Interest Assessment		Total
2003 to 2008	$	53	$	122	$	175
2009	56		52		108
2010	63		107		170
2011	49		65		114
2012	52		11		63
2014 to 2019	39		—		39
	$	312	$	357	$	669

Excluding surface water and withholding tax assessments discussed below and the Indonesia 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	48		23		71
2008, 2010 to 2011	55		31		86
2012	124		—		124
2013	154		74		228
2014	139		6		145
2015	159		—		159
2016	257		113		370
	$	1,009	$	282	$	1,291

Schedule of Charges for the Cerro Verde Royalty Dispute

A summary of the charges recorded for the years ended December 31 related to the Cerro Verde royalty dispute follows:

Royalty and related assessment charges:		2019				2018a			2017				Total
	Production and delivery	$	6			$	14		$	203		b	$	223
	Interest expense, net	10			c	370			145				525
	Other expense	—				22			—				22
	(Benefit from) provision for income taxes	(2		)		(35		)	7			d	(30		)
	Net loss attributable to noncontrolling interests	(7		)		(176		)	(169		)		(352		)
		$	7			$	195		$	186			$	388

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. Excludes $58 million of interest costs associated with the installment payment programs.

d.

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.