CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Obligations

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

	2020		2019		2018
Balance at beginning of year	$	1,561	$	1,511	$	1,439
Accretion expensea	102		102		100
Additionsb	38		23		56
Reductionsb	(58)		(1)		—
Spending	(59)		(74)		(84)
Balance at end of year	1,584		1,561		1,511
Less current portion	(83)		(106)		(132)
Long-term portion	$	1,501	$	1,455	$	1,379

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:

	2020		2019		2018
Balance at beginning of year	$	2,505	$	2,547	$	2,583
Liabilities incurred	7		20		1
Settlements and revisions to cash flow estimates, net	(13)		(5)		50
Accretion expense	131		118		110
Dispositions	(2)		(5)		(37)
Spending	(156)		(170)		(160)
Balance at end of year	2,472		2,505		2,547
Less current portion	(268)		(330)		(317)
Long-term portion	$	2,204	$	2,175	$	2,230

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	2017-2018	2014-2016, 2019-2020
Indonesia	2011-2017, 2019	2018, 2020
Peru	2014-2016	2017-2020
Chile	2018-2019	2020

A summary of these assessments follows:

Tax Year	Tax Assessment		Penalty and Interest Assessment		Total
2003 to 2008	$	50	$	129	$	179
2009	56		52		108
2010	54		118		172
2011 and 2012	42		78		120
2013	48		66		114
2014 to 2020	45		—		45
	$	295	$	443	$	738

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	$	62	$	30	$	92
2007	48		23		71
2008, 2010 to 2011	31		8		39
2012	97		—		97
2013	152		76		228
2014	123		—		123
2015	159		—		159
2016	257		113		370
2017	40		19		59
	$	969	$	269	$	1,238

Schedule of Charges for the Cerro Verde Royalty Dispute

A summary of the charges recorded for the three-years ended December 31, 2019, 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		370		145			525
	Other expense	—		22		—			22
	(Benefit from) provision for income taxes	(2)		(35)		7		c	(30)
	Net loss attributable to noncontrolling interests	(7)		(176)		(169)			(352)
		$	7	$	195	$	186		$	388

a.Amounts are net of gains of $16 million (consisting of pre-tax gains of $14 million and net tax benefits of $17 million, net of $15 million in noncontrolling interests) for refunds received for the overpayment of special (voluntary) levies 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.