DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | FREEPORT-MCMORAN INC | ||
Entity Central Index Key | 831259 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $37,318,000,000 | ||
Entity Common Stock, Shares Outstanding | 1,039,863,035 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement [Abstract] | ||||||
Revenues | $21,438,000,000 | [1],[2] | $20,921,000,000 | [2],[3] | $18,010,000,000 | [2] |
Cost of sales: | ||||||
Production and delivery | 11,904,000,000 | 11,840,000,000 | 10,382,000,000 | |||
Depreciation, depletion and amortization | 3,863,000,000 | 2,797,000,000 | 1,179,000,000 | |||
Impairment of oil and gas properties | 3,737,000,000 | 0 | 0 | |||
Total cost of sales | 19,504,000,000 | 14,637,000,000 | 11,561,000,000 | |||
Selling, general and administrative expenses | 592,000,000 | 657,000,000 | 431,000,000 | |||
Mining exploration and research expenses | 126,000,000 | 210,000,000 | 285,000,000 | |||
Environmental obligations and shutdown costs | 119,000,000 | 66,000,000 | -22,000,000 | |||
Goodwill impairment | 1,717,000,000 | 0 | 0 | |||
Net gain on sales of assets | 717,000,000 | 0 | 0 | |||
Gain on insurance settlement | 0 | 0 | -59,000,000 | |||
Total costs and expenses | 21,341,000,000 | 15,570,000,000 | 12,196,000,000 | |||
Operating income | 97,000,000 | [4],[5] | 5,351,000,000 | [6],[7] | 5,814,000,000 | |
Interest expense, net | -630,000,000 | -518,000,000 | -186,000,000 | |||
Net gain (loss) on early extinguishment of debt | 73,000,000 | -35,000,000 | -168,000,000 | |||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | 128,000,000 | 0 | |||
Other income (expense), net | 36,000,000 | -13,000,000 | 27,000,000 | |||
(Loss) income before income taxes and equity in affiliated companies' net earnings | -424,000,000 | 4,913,000,000 | 5,487,000,000 | |||
Provision for income taxes | -324,000,000 | [8],[9] | -1,475,000,000 | [10] | -1,510,000,000 | [11] |
Equity in affiliated companies’ net earnings | 3,000,000 | 3,000,000 | 3,000,000 | |||
Net (loss) income | -745,000,000 | [12],[13] | 3,441,000,000 | [14] | 3,980,000,000 | |
Net income attributable to noncontrolling interests | 523,000,000 | 761,000,000 | 939,000,000 | |||
Preferred dividends attributable to redeemable noncontrolling interest | -40,000,000 | -22,000,000 | 0 | |||
Net (loss) income attributable to FCX common stockholders | ($1,308,000,000) | [1],[12],[13],[4],[5] | $2,658,000,000 | [14],[15],[16],[3],[6],[7] | $3,041,000,000 | |
Net (loss) income per share attributable to FCX common stockholders: | ||||||
Basic (in dollars per share) | ($1.26) | $2.65 | $3.20 | |||
Diluted (in dollars per share) | ($1.26) | [1],[12],[13],[4],[5] | $2.64 | [14],[15],[16],[3],[6],[7] | $3.19 | |
Weighted-average common shares outstanding: | ||||||
Basic (in shares) | 1,039 | 1,002 | 949 | |||
Diluted (in shares) | 1,039 | 1,006 | 954 | |||
Dividends declared per share of common stock (in dollars per share) | $1.25 | $2.25 | $1.25 | |||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||
[2] | Revenues are attributed to countries based on the location of the customer. | |||||
[3] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||
[4] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||
[5] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||
[6] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||
[7] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||
[8] | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | |||||
[9] | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | |||||
[10] | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | |||||
[11] | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | |||||
[12] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | |||||
[13] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | |||||
[14] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | |||||
[15] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | |||||
[16] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net (loss) income | ($745) | [1],[2] | $3,441 | [3] | $3,980 |
Defined benefit plans: | |||||
Actuarial (losses) gains arising during the period | -161 | 73 | -69 | ||
Prior service costs arising during the period | 0 | -21 | 0 | ||
Amortization of unrecognized amounts included in net periodic benefit costs | 25 | 30 | 26 | ||
Foreign exchange gains | 1 | 12 | 3 | ||
Adjustment to deferred tax valuation allowance | -5 | 0 | -1 | ||
Translation adjustments and unrealized losses on securities | -1 | 4 | -1 | ||
Other comprehensive (loss) income | -141 | 98 | -42 | ||
Total comprehensive (loss) income | -886 | 3,539 | 3,938 | ||
Total comprehensive income attributable to noncontrolling interests | -521 | -758 | -938 | ||
Preferred dividends attributable to redeemable noncontrolling interest | -40 | -22 | 0 | ||
Total comprehensive (loss) income attributable to FCX common stockholders | ($1,447) | $2,759 | $3,000 | ||
[1] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||
[2] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||
[3] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flow from operating activities: | |||||
Net (loss) income | ($745,000,000) | [1],[2] | $3,441,000,000 | [3] | $3,980,000,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 3,863,000,000 | 2,797,000,000 | 1,179,000,000 | ||
Impairment of oil and gas properties and goodwill | 5,454,000,000 | 0 | 0 | ||
Net (gains) losses on crude oil and natural gas derivative contracts | -504,000,000 | 334,000,000 | 0 | ||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | -128,000,000 | 0 | ||
Stock-based compensation | 106,000,000 | 173,000,000 | 100,000,000 | ||
Net charges for environmental and asset retirement obligations, including accretion | 200,000,000 | 164,000,000 | 22,000,000 | ||
Payments for environmental and asset retirement obligations | -176,000,000 | -237,000,000 | -246,000,000 | ||
Net (gain) loss on early extinguishment of debt | -73,000,000 | 35,000,000 | 168,000,000 | ||
Net gain on sales of assets | 717,000,000 | 0 | 0 | ||
Deferred income taxes | -929,000,000 | 277,000,000 | 269,000,000 | ||
Increase in long-term mill and leach stockpiles | -233,000,000 | -431,000,000 | -269,000,000 | ||
Other, net | 17,000,000 | 91,000,000 | -12,000,000 | ||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions and dispositions: | |||||
Accounts receivable | 215,000,000 | 49,000,000 | -365,000,000 | ||
Inventories | -249,000,000 | -288,000,000 | -729,000,000 | ||
Other current assets | 0 | 26,000,000 | -76,000,000 | ||
Accounts payable and accrued liabilities | -394,000,000 | -359,000,000 | 209,000,000 | ||
Accrued income taxes and changes in other tax payments | -204,000,000 | 195,000,000 | -456,000,000 | ||
Net cash provided by operating activities | 5,631,000,000 | 6,139,000,000 | 3,774,000,000 | ||
Capital expenditures: | |||||
North America copper mines | -969,000,000 | -1,066,000,000 | -825,000,000 | ||
South America | -1,785,000,000 | -1,145,000,000 | -931,000,000 | ||
Indonesia | -948,000,000 | -1,030,000,000 | -843,000,000 | ||
Africa | -159,000,000 | -205,000,000 | -539,000,000 | ||
Molybdenum mines | -54,000,000 | -164,000,000 | -245,000,000 | ||
U.S. oil and gas operations | -3,205,000,000 | -1,436,000,000 | 0 | ||
Other | -95,000,000 | -240,000,000 | -111,000,000 | ||
Acquisition of Deepwater Gulf of Mexico interests | -1,426,000,000 | 0 | 0 | ||
Acquisition of Plains Exploration & Production Company, net of cash acquired | 0 | -3,465,000,000 | 0 | ||
Acquisition of MMR, net of cash acquired | 0 | -1,628,000,000 | 0 | ||
Acquisition of cobalt chemical business, net of cash acquired | 0 | -348,000,000 | 0 | ||
Net proceeds from sale of Candelaria and Ojos del Salado | 1,709,000,000 | 0 | 0 | ||
Net proceeds from sale of Eagle Ford shale assets | 2,910,000,000 | 0 | 0 | ||
Other, net | 221,000,000 | -181,000,000 | 31,000,000 | ||
Net cash used in investing activities | -3,801,000,000 | -10,908,000,000 | -3,463,000,000 | ||
Cash flow from financing activities: | |||||
Proceeds from debt | 8,710,000,000 | 11,501,000,000 | 3,029,000,000 | ||
Repayments of debt | -10,306,000,000 | -5,476,000,000 | -3,186,000,000 | ||
Redemption of MMR preferred stock | 0 | -228,000,000 | 0 | ||
Cash dividends and distributions paid: | |||||
Common stock | -1,305,000,000 | -2,281,000,000 | -1,129,000,000 | ||
Noncontrolling interests | -424,000,000 | -256,000,000 | -113,000,000 | ||
Stock-based awards net proceeds (payments), including excess tax benefit | 9,000,000 | -98,000,000 | 7,000,000 | ||
Debt financing costs and other, net | -35,000,000 | -113,000,000 | -36,000,000 | ||
Net cash (used in) provided by financing activities | -3,351,000,000 | 3,049,000,000 | -1,428,000,000 | ||
Net decrease in cash and cash equivalents | -1,521,000,000 | -1,720,000,000 | -1,117,000,000 | ||
Cash and cash equivalents at beginning of year | 1,985,000,000 | 3,705,000,000 | 4,822,000,000 | ||
Cash and cash equivalents at end of year | $464,000,000 | $1,985,000,000 | $3,705,000,000 | ||
[1] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||
[2] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||
[3] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $464 | $1,985 | ||
Trade accounts receivable | 953 | 1,728 | ||
Income and other tax receivables | 1,322 | 695 | ||
Other accounts receivable | 288 | 139 | ||
Inventories: | ||||
Materials and supplies, net | 1,886 | [1] | 1,730 | [1] |
Mill and leach stockpiles | 1,914 | 1,705 | ||
Product | 1,561 | 1,583 | ||
Other current assets | 657 | 407 | ||
Total current assets | 9,045 | 9,972 | ||
Property, plant, equipment and mining development costs, net | 26,220 | 24,042 | ||
Oil and gas properties, net - full cost method: | ||||
Subject to amortization, less accumulated amortization of $7,360 and $1,357, respectively | 9,187 | 12,472 | ||
Not subject to amortization | 10,087 | 10,887 | ||
Long-term mill and leach stockpiles | 2,179 | 2,386 | ||
Goodwill | 0 | 1,916 | ||
Other assets | 2,077 | 1,798 | ||
Total assets | 58,795 | 63,473 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 3,653 | 3,708 | ||
Dividends payable | 335 | 333 | ||
Current portion of debt | 478 | 312 | ||
Current portion of environmental and asset retirement obligations | 296 | 236 | ||
Accrued income taxes | 410 | 184 | ||
Total current liabilities | 5,172 | 4,773 | ||
Long-term debt, less current portion | 18,492 | 20,394 | ||
Deferred income taxes | 6,398 | 7,410 | ||
Environmental and asset retirement obligations, less current portion | 3,647 | 3,259 | ||
Other liabilities | 1,861 | 1,690 | ||
Total liabilities | 35,570 | 37,526 | ||
Redeemable noncontrolling interest | 751 | 716 | ||
Stockholders’ equity: | ||||
Common stock, par value $0.10, 1,167 shares and 1,165 shares issued, respectively | 117 | 117 | ||
Capital in excess of par value | 22,281 | 22,161 | ||
Retained earnings | 128 | 2,742 | ||
Accumulated other comprehensive loss | -544 | -405 | ||
Common stock held in treasury – 128 shares and 127 shares, respectively, at cost | -3,695 | -3,681 | ||
Total stockholders’ equity | 18,287 | 20,934 | ||
Noncontrolling interests | 4,187 | 4,297 | ||
Total equity | 22,474 | 25,231 | ||
Total liabilities and equity | $58,795 | $63,473 | ||
[1] | Materials and supplies inventory was net of obsolescence reserves totaling $20 million at December 31, 2014, and $24 million at December 31, 2013. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Stockholders’ equity: | ||
Common stock, par value per share (in dollars per share) | $0.10 | $0.10 |
Common stock, shares issued | 1,167 | 1,165 |
Common stock held in treasury, shares | 128 | 127 |
Oil and gas properties, net - full cost method: | ||
Accumulated amortization | $7,360 | $1,357 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock Held in Treasury [Member] | Total FCX Stockholders' Equity [Member] | Noncontrolling Interests [Member] | |
In Millions, unless otherwise specified | |||||||||
Balance at Dec. 31, 2011 | $18,553 | $107 | $19,007 | $546 | ($465) | ($3,553) | $15,642 | $2,911 | |
Balance (in shares) at Dec. 31, 2011 | 1,071 | 123 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercised and issued stock-based awards | 15 | 0 | 15 | 0 | 0 | 0 | 15 | 0 | |
Exercised and issued stock-based awards (in shares) | 2 | 0 | |||||||
Stock-based compensation | 100 | 0 | 100 | 0 | 0 | 0 | 100 | 0 | |
(Reserve on) tax benefit for stock-based awards | 7 | 7 | 0 | 0 | 0 | 7 | 0 | ||
Tender of shares for stock-based awards | -16 | 0 | 7 | 0 | 0 | -23 | -16 | 0 | |
Tender of shares for stock-based awards (in shares) | 0 | 1 | |||||||
Dividends on common stock | -1,188 | 0 | 0 | -1,188 | 0 | 0 | -1,188 | 0 | |
Dividends to noncontrolling interests | -113 | 0 | 0 | 0 | 0 | 0 | 0 | -113 | |
Change in ownership interests | 0 | -17 | -17 | 17 | |||||
Contributions from noncontrolling interests | 15 | 15 | |||||||
Net income attributable to FCX common stockholders | 3,041 | 0 | 0 | 3,041 | 0 | 0 | 3,041 | 0 | |
Net income attributable to noncontrolling interests | 939 | 0 | 0 | 0 | 0 | 0 | 0 | 939 | |
Other comprehensive income (loss) | -42 | 0 | 0 | 0 | -41 | 0 | -41 | -1 | |
Balance at Dec. 31, 2012 | 21,311 | 107 | 19,119 | 2,399 | -506 | -3,576 | 17,543 | 3,768 | |
Balance (in shares) at Dec. 31, 2012 | 1,073 | 124 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued to acquire Plains Exploration & Production Company | 2,831 | 9 | 2,822 | 0 | 0 | 0 | 2,831 | 0 | |
Common stock issued to acquire Plains Exploration & Production Company (in shares) | 91 | 0 | |||||||
Exchange of employee stock-based awards in connection with acquisitions | 67 | 0 | 67 | 0 | 0 | 0 | 67 | 0 | |
Exercised and issued stock-based awards | 9 | 1 | 8 | 0 | 0 | 0 | 9 | 0 | |
Exercised and issued stock-based awards (in shares) | 1 | 0 | |||||||
Stock-based compensation | 153 | 0 | 153 | 0 | 0 | 0 | 153 | 0 | |
(Reserve on) tax benefit for stock-based awards | -1 | -1 | 0 | 0 | 0 | -1 | 0 | ||
Tender of shares for stock-based awards | -105 | 0 | 0 | 0 | 0 | -105 | -105 | 0 | |
Tender of shares for stock-based awards (in shares) | 0 | 3 | |||||||
Dividends on common stock | -2,315 | 0 | 0 | -2,315 | 0 | 0 | -2,315 | 0 | |
Dividends to noncontrolling interests | -236 | 0 | 0 | 0 | 0 | 0 | 0 | -236 | |
Noncontrolling interests' share of contributed capital in subsidiary | 0 | 0 | -7 | 0 | 0 | 0 | -7 | 7 | |
Net income attributable to FCX common stockholders | 2,658 | [1],[2],[3],[4],[5],[6] | 0 | 0 | 2,658 | 0 | 0 | 2,658 | 0 |
Net income attributable to noncontrolling interests | 761 | 0 | 0 | 0 | 0 | 0 | 0 | 761 | |
Other comprehensive income (loss) | 98 | 0 | 0 | 0 | 101 | 0 | 101 | -3 | |
Balance at Dec. 31, 2013 | 25,231 | 117 | 22,161 | 2,742 | -405 | -3,681 | 20,934 | 4,297 | |
Balance (in shares) at Dec. 31, 2013 | 1,165 | 127 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercised and issued stock-based awards | 12 | 0 | 12 | 0 | 0 | 0 | 12 | 0 | |
Exercised and issued stock-based awards (in shares) | 2 | 0 | |||||||
Stock-based compensation | 98 | 0 | 98 | 0 | 0 | 0 | 98 | 0 | |
(Reserve on) tax benefit for stock-based awards | 6 | 5 | 0 | 0 | 0 | 5 | 1 | ||
Tender of shares for stock-based awards | -8 | 0 | 6 | 0 | 0 | -14 | -8 | 0 | |
Tender of shares for stock-based awards (in shares) | 0 | 1 | |||||||
Dividends on common stock | -1,306 | 0 | 0 | -1,306 | 0 | 0 | -1,306 | 0 | |
Dividends to noncontrolling interests | -396 | 0 | 0 | 0 | 0 | 0 | 0 | -396 | |
Noncontrolling interests' share of contributed capital in subsidiary | 6 | 0 | -1 | 0 | 0 | 0 | -1 | 7 | |
Sale of Candelaria and Ojos del Salado | -243 | 0 | 0 | 0 | 0 | 0 | 0 | -243 | |
Net income attributable to FCX common stockholders | -1,308 | [10],[11],[7],[8],[9] | 0 | 0 | -1,308 | 0 | 0 | -1,308 | 0 |
Net income attributable to noncontrolling interests | 523 | 0 | 0 | 0 | 0 | 0 | 0 | 523 | |
Other comprehensive income (loss) | -141 | 0 | 0 | 0 | -139 | 0 | -139 | -2 | |
Balance at Dec. 31, 2014 | $22,474 | $117 | $22,281 | $128 | ($544) | ($3,695) | $18,287 | $4,187 | |
Balance (in shares) at Dec. 31, 2014 | 1,167 | 128 | |||||||
[1] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | ||||||||
[2] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | ||||||||
[3] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | ||||||||
[4] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. | ||||||||
[5] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||
[6] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | ||||||||
[7] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||
[8] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | ||||||||
[9] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||||||
[10] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | ||||||||
[11] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Basis of Presentation. Effective July 14, 2014, Freeport-McMoRan Copper & Gold Inc. changed its name to Freeport-McMoRan Inc. (FCX) to simplify the corporate name and better reflect FCX's expanded portfolio of assets. The consolidated financial statements of FCX include the accounts of those subsidiaries where it directly or indirectly has more than 50 percent of the voting rights and has the right to control significant management decisions. The most significant entities that FCX consolidates include its 90.64 percent-owned subsidiary PT Freeport Indonesia (PT-FI), and the following wholly owned subsidiaries: Freeport Minerals Corporation (FMC, formerly Freeport-McMoRan Corporation), Atlantic Copper, S.L.U. (Atlantic Copper) and FCX Oil & Gas Inc. (FM O&G). | |||||||||||||
FCX acquired mining assets in North America, South America and Africa when it acquired Phelps Dodge Corporation (now known as FMC) in 2007. FCX acquired oil and gas operations when it acquired Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR), collectively known as FM O&G, on May 31, 2013, and June 3, 2013, respectively. The results included in these financial statements for the year ended December 31, 2013, include PXP's results beginning June 1, 2013, and MMR's results beginning June 4, 2013 (refer to Note 2 for further discussion). | |||||||||||||
FCX’s unincorporated joint ventures with Rio Tinto plc (Rio Tinto) and Sumitomo Metal Mining Arizona, Inc. (Sumitomo) are reflected using the proportionate consolidation method (refer to Note 3 for further discussion). Investments in unconsolidated companies owned 20 percent or more are recorded using the equity method. Investments in companies owned less than 20 percent, and for which FCX does not exercise significant influence, are carried at cost. All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts. | |||||||||||||
Business Segments. FCX has organized its operations into six primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines and United States (U.S.) oil and gas operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis for its mining operations. Therefore, FCX concluded that its operating segments include individual mines or operations relative to its mining operations. For oil and gas operations, FCX determines its operating segments on a country-by-country basis. Operating segments that meet certain financial thresholds are reportable segments. Refer to Note 16 for further discussion. | |||||||||||||
Use of Estimates. The preparation of FCX’s financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include reserve estimation (minerals, and oil and natural gas); timing of transfers of oil and gas properties not subject to amortization into the full cost pool; asset lives for depreciation, depletion and amortization; environmental obligations; asset retirement obligations; estimates of recoverable copper in mill and leach stockpiles; deferred taxes and valuation allowances; reserves for contingencies and litigation; asset impairment, including estimates used to derive future cash flows associated with those assets; determination of fair value of assets acquired, liabilities assumed and redeemable noncontrolling interest, and recognition of goodwill and deferred taxes in connection with business combinations; pension benefits; and valuation of derivative instruments. Actual results could differ from those estimates. | |||||||||||||
Cash Equivalents. Highly liquid investments purchased with maturities of three months or less are considered cash equivalents. | |||||||||||||
Inventories. Inventories include mill and leach stockpiles, materials and supplies, and product inventories. Inventories are stated at the lower of weighted-average cost or market. Costs of finished goods and work-in-process (i.e., not materials and supplies or raw materials) inventories include labor and benefits, supplies, energy, depreciation, depletion, amortization, site overhead costs and other necessary costs associated with the extraction and processing of ore, including, depending on the process, mining, haulage, milling, concentrating, smelting, leaching, solution extraction, refining, roasting and chemical processing. Corporate general and administrative costs are not included in inventory costs. Refer to Note 4 for further discussion. | |||||||||||||
Mill and Leach Stockpiles. Mill and leach stockpiles are work-in-process inventories for FCX's mining operations. Both mill and leach stockpiles generally contain lower grade ores that have been extracted from an ore body and are available for copper recovery. Mill stockpiles contain sulfide ores and recovery of metal is through milling, concentrating, smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities (i.e., solution extraction and electrowinning (SX/EW)). The recorded cost of mill and leach stockpiles includes mining and haulage costs incurred to deliver ore to stockpiles, depreciation, depletion, amortization and site overhead costs. Material is removed from the stockpiles at a weighted-average cost per pound. | |||||||||||||
Because it is generally impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grade of the material delivered to mill and leach stockpiles. | |||||||||||||
Expected copper recovery rates for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. | |||||||||||||
Expected copper recovery rates for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production-scale process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90 percent depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80 percent total copper recovery may be extracted during the first year, and the remaining copper may be recovered over many years. | |||||||||||||
Processes and recovery rates for mill and leach stockpiles are monitored regularly, and recovery rate estimates are adjusted periodically as additional information becomes available and as related technology changes. Adjustments to recovery rates will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper. | |||||||||||||
Product Inventories. Raw materials are primarily unprocessed concentrate at Atlantic Copper's smelting and refining operations. Work-in-process inventories primarily are copper concentrates at various stages of conversion into anodes and cathodes at Atlantic Copper's operations. Atlantic Copper’s in-process inventories are valued at the weighted-average cost of the material fed to the smelting and refining process plus in-process conversion costs. Finished goods for mining operations represent salable products (e.g., copper and molybdenum concentrates, copper anodes, copper cathodes, copper rod, copper wire, molybdenum oxide, high-purity molybdenum chemicals and other metallurgical products, and various cobalt products). Finished goods are valued based on the weighted-average cost of source material plus applicable conversion costs relating to associated process facilities. | |||||||||||||
Property, Plant, Equipment and Mining Development Costs. Property, plant, equipment and mining development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. Additionally, interest expense allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. | |||||||||||||
Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance (i.e., turnarounds) are charged to expense as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production (UOP) method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for primary molybdenum mines). Development costs and acquisition costs for proven and probable mineral reserves that relate to a specific ore body are depreciated using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. Depreciation, depletion and amortization using the UOP method is recorded upon extraction of the recoverable copper or molybdenum from the ore body, at which time it is allocated to inventory cost and then included as a component of cost of goods sold. Other assets are depreciated on a straight-line basis over estimated useful lives of up to 39 years for buildings and three to 25 years for machinery and equipment, and mobile equipment. | |||||||||||||
Included in property, plant, equipment and mining development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of FMC in 2007. The concept of VBPP has been interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) mineralized material, which includes measured and indicated amounts, that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential. | |||||||||||||
Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. Refer to Note 5 for further discussion. | |||||||||||||
Asset Impairment for Mining Operations. FCX reviews and evaluates its mining long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In evaluating mining operations’ long-lived assets for recoverability, estimates of after-tax undiscounted future cash flows of FCX’s individual mining operations are used. An impairment is considered to exist if total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. Once it is determined that an impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value. As quoted market prices are unavailable for FCX’s individual mining operations, fair value is determined through the use of discounted estimated future cash flows. Estimated cash flows used to assess recoverability of long-lived assets and measure the fair value of FCX’s mining operations are derived from current business plans, which are developed using near-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. Estimates of future cash flows also include estimates of commodity-based and other input costs; proven and probable mineral reserve estimates, including any costs to develop the reserves and the timing of producing the reserves; and the use of appropriate escalation and discount rates. FCX believes its estimates and models used to determine fair value are similar to what a market participant would use. | |||||||||||||
Oil and Gas Properties. FCX follows the full cost method of accounting specified by the U.S. Securities and Exchange Commission's (SEC) rules whereby all costs associated with oil and gas property acquisition, exploration and development activities are capitalized into a cost center on a country-by-country basis. Such costs include internal general and administrative costs, such as payroll and related benefits and costs directly attributable to employees engaged in acquisition, exploration and development activities. General and administrative costs associated with production, operations, marketing and general corporate activities are charged to expense as incurred. Capitalized costs, along with estimated future costs to develop proved reserves and asset retirement costs that are not already included in oil and gas properties, net of related salvage value, are amortized to expense under the UOP method using engineers' estimates of the related, by-country proved oil and natural gas reserves. | |||||||||||||
The costs of unproved oil and gas properties are excluded from amortization until the properties are evaluated. Costs are transferred into the amortization base on an ongoing basis as the properties are evaluated and proved oil and natural gas reserves are established or if impairment is determined. Unproved oil and gas properties are assessed periodically, at least annually, to determine whether impairment has occurred. FCX assesses oil and gas properties on an individual basis or as a group if properties are individually insignificant. The assessment considers the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization. The transfer of costs into the amortization base involves a significant amount of judgment and may be subject to changes over time based on drilling plans and results, geological and geophysical evaluations, the assignment of proved oil and natural gas reserves, availability of capital and other factors. Costs not subject to amortization consist primarily of capitalized costs incurred for undeveloped acreage and wells in progress pending determination, together with capitalized interest for these projects. The ultimate evaluation of the properties will occur over a period of several years. Interest costs totaling $88 million in 2014 and $69 million in 2013 were capitalized on oil and gas properties not subject to amortization and in the process of development. | |||||||||||||
Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless the reduction causes a significant change in proved reserves, which absent other factors, is generally described as a 25 percent or greater change, and significantly alters the relationship between capitalized costs and proved reserves attributable to a cost center, in which case a gain or loss is recognized. | |||||||||||||
Under the SEC full cost accounting rules, FCX reviews the carrying value of its oil and gas properties each quarter on a country-by-country basis. Under these rules, capitalized costs of oil and gas properties (net of accumulated depreciation, depletion and amortization, and related deferred income taxes) for each cost center may not exceed a “ceiling” equal to: | |||||||||||||
• | the present value, discounted at 10 percent, of estimated future net cash flows from the related proved oil and natural gas reserves, net of estimated future income taxes; plus | ||||||||||||
• | the cost of the related unproved properties not being amortized; plus | ||||||||||||
• | the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects). | ||||||||||||
These rules require that FCX price its future oil and gas production at the twelve-month average of the first-day-of-the-month historical reference prices as adjusted for location and quality differentials. FCX's reference prices are West Texas Intermediate (WTI) for oil and the Henry Hub spot price for natural gas. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts, excluding derivatives. The reserve estimates exclude the effect of any crude oil and natural gas derivatives FCX has in place. The estimated future net cash flows also exclude future cash outflows associated with settling asset retirement obligations included in the net book value of the oil and gas properties. The rules require an impairment if the capitalized costs exceed this “ceiling.” | |||||||||||||
At September 30, 2014, and December 31, 2014, the net capitalized costs with respect to FCX's U.S. oil and gas properties exceeded the related ceiling; therefore, impairment charges of $3.7 billion were recorded in 2014 primarily because of higher capitalized costs and the lower twelve-month average of the first-day-of-the-month historical reference oil price at such dates. | |||||||||||||
Goodwill. Goodwill has an indefinite useful life and is not amortized, but rather is tested for impairment at least annually during the fourth quarter, unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a related reporting unit below its carrying value. Impairment occurs when the carrying amount of goodwill exceeds its implied fair value. FCX generally uses a discounted cash flow model to determine if the carrying value of a reporting unit, including goodwill, is less than the fair value of the reporting unit. FCX's approach to allocating goodwill includes the identification of the reporting unit it believes has contributed to the excess purchase price and includes consideration of the reporting unit's potential for future growth. Goodwill arose in 2013 with FCX's acquisitions of PXP and MMR, and was allocated to the U.S. oil and gas reporting unit. When a sale of oil and gas properties occurs, goodwill is allocated to that property based on the relationship of the fair value of the property sold to the total reporting unit's fair value. A significant sale of oil and gas properties may represent a triggering event that requires goodwill to be evaluated for impairment. Events affecting crude oil and natural gas prices caused a decrease in the fair value of the reporting unit in 2014, which resulted in the full impairment of goodwill (refer to Note 2 for further discussion). | |||||||||||||
Deferred Mining Costs. Stripping costs (i.e., the costs of removing overburden and waste material to access mineral deposits) incurred during the production phase of a mine are considered variable production costs and are included as a component of inventory produced during the period in which stripping costs are incurred. Major development expenditures, including stripping costs to prepare unique and identifiable areas outside the current mining area for future production that are considered to be pre-production mine development, are capitalized and amortized using the UOP method based on estimated recoverable proven and probable reserves for the ore body benefited. However, where a second or subsequent pit or major expansion is considered to be a continuation of existing mining activities, stripping costs are accounted for as a current production cost and a component of the associated inventory. | |||||||||||||
Environmental Expenditures. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 12 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to outside law firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation. | |||||||||||||
Environmental obligations assumed in the acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur. | |||||||||||||
FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly. | |||||||||||||
Asset Retirement Obligations. FCX records the fair value of estimated asset retirement obligations (AROs) associated with tangible long-lived assets in the period incurred. Retirement obligations associated with long-lived assets are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to cost of sales. In addition, asset retirement costs (ARCs) are capitalized as part of the related asset’s carrying value and are depreciated over the asset’s respective useful life. | |||||||||||||
For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC (included in property, plant, equipment and mining development costs) in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition (refer to Note 12 for further discussion). | |||||||||||||
For oil and gas properties, the fair value of the legal obligation is recognized as an ARO and as a related ARC(included in oil and gas properties) in the period in which the well is drilled or acquired and is amortized on a UOP basis together with other capitalized costs. Substantially all of FCX’s oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores, remove platforms, tanks, production equipment and flow lines, and restore the wellsite (refer to Note 12 for further discussion). | |||||||||||||
At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. | |||||||||||||
Revenue Recognition. FCX sells its products pursuant to sales contracts entered into with its customers. Revenue for all FCX’s products is recognized when title and risk of loss pass to the customer and when collectibility is reasonably assured. The passing of title and risk of loss to the customer are based on terms of the sales contract, generally upon shipment or delivery of product. | |||||||||||||
Revenues from FCX’s concentrate and cathode sales are recorded based on a provisional sales price or a final sales price calculated in accordance with the terms specified in the relevant sales contract. Revenues from concentrate sales are recorded net of treatment and all refining charges (including price participation, if applicable, as discussed below) and the impact of derivative contracts. Moreover, because a portion of the metals contained in copper concentrates is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners and are either fixed or, in certain cases, vary with the price of copper (referred to as price participation). | |||||||||||||
Under the long-established structure of sales agreements prevalent in the mining industry, copper contained in concentrate and cathode is generally provisionally priced at the time of shipment. The provisional prices are finalized in a specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the London Metal Exchange (LME) or the Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange (NYMEX). FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded to revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX prices, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrates or cathodes at the then-current LME or COMEX price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end forward prices, until the date of final pricing. | |||||||||||||
Gold sales are priced according to individual contract terms, generally the average London Bullion Market Association (London) price for a specified month near the month of shipment. | |||||||||||||
Substantially all of FCX’s 2014 molybdenum sales were priced based on prices published in Metals Week, Ryan’s Notes or Metal Bulletin, plus conversion premiums for products that undergo additional processing, such as ferromolybdenum and molybdenum chemical products. The majority of these sales use the average price of the previous month quoted by the applicable publication. FCX’s remaining molybdenum sales generally have pricing that is either based on the current month published prices or a fixed price. | |||||||||||||
PT-FI concentrate sales, Tenke Fungurume Mining S.A. (TFM or Tenke) metal sales and certain Sociedad Minera Cerro Verde S.A.A. (Cerro Verde) metal sales are subject to certain royalties, which are recorded as a reduction to revenues. In addition, PT-FI concentrate sales are also subject to export duties beginning in 2014, which are recorded as a reduction to revenues. Refer to Note 13 for further discussion. | |||||||||||||
Oil and gas revenue from FCX's interests in producing wells is recognized upon delivery and passage of title, net of any royalty interests or other profit interests in the produced product. Oil sales are primarily under contracts with prices based upon regional benchmarks. Approximately 40 percent of gas sales are priced monthly using industry recognized, published index pricing, and the remainder is priced daily on the spot market. Gas revenue is recorded using the sales method for gas imbalances. If FCX's sales of production volumes for a well exceed its portion of the estimated remaining recoverable reserves of the well, a liability is recorded. No receivables are recorded for those wells on which FCX has taken less than its ownership share of production unless the amount taken by other parties exceeds the estimate of their remaining reserves. There were no material gas imbalances at December 31, 2014. | |||||||||||||
Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value for stock-settled restricted stock units (RSUs) is based on FCX's stock price on the date of grant. Shares of common stock are issued at the vesting date for stock-settled RSUs. The fair value of the performance share units (PSUs) and the performance-based RSUs are determined using a Monte-Carlo simulation model. The fair value for liability-classified awards (i.e., cash-settled stock appreciation rights (SARs) and cash-settled RSUs) is remeasured each reporting period using the Black-Scholes-Merton option valuation model for SARs and FCX's stock price for cash-settled RSUs. FCX has elected to recognize compensation costs for stock option awards and SARs that vest over several years on a straight-line basis over the vesting period, and for RSUs on the graded-vesting method over the vesting period. Refer to Note 10 for further discussion. | |||||||||||||
Earnings Per Share. FCX’s basic net income per share of common stock was computed by dividing net income attributable to FCX common stockholders by the weighted-average shares of common stock outstanding during the year. Diluted net income per share of common stock was computed using the most dilutive of (a) the two-class method or (b) the treasury stock method. Under the two-class method, net income is allocated to each class of common stock and participating securities as if all of the earnings for the period had been distributed. FCX's participating securities consist of vested RSUs for which the underlying common shares are not yet issued and entitle holders to non-forfeitable dividends. | |||||||||||||
A reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share for the years ended December 31 follows : | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net (loss) income | $ | (745 | ) | $ | 3,441 | $ | 3,980 | ||||||
Net income attributable to noncontrolling interests | (523 | ) | (761 | ) | (939 | ) | |||||||
Preferred dividends on redeemable noncontrolling interest | (40 | ) | (22 | ) | — | ||||||||
Undistributed earnings allocable to participating securities | (3 | ) | — | — | |||||||||
Net (loss) income allocable to FCX common stockholders | $ | (1,311 | ) | $ | 2,658 | $ | 3,041 | ||||||
Basic weighted-average shares of common stock outstanding (millions) | 1,039 | 1,002 | 949 | ||||||||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) | — | a | 4 | a | 5 | a | |||||||
Diluted weighted-average shares of common stock outstanding (millions) | 1,039 | 1,006 | 954 | ||||||||||
Basic net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.65 | $ | 3.2 | ||||||
Diluted net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.64 | $ | 3.19 | ||||||
a. | Excludes shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive, with related amounts totaling approximately ten million for the year ended December 31, 2014, and one million for the years ended December 31, 2013 and 2012. | ||||||||||||
Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the year are excluded from the computation of diluted net income per share of common stock. Excluded stock options totaled 31 million with a weighted-average exercise price of $40.52 per option in 2014; 30 million with a weighted-average exercise price of $40.23 per option in 2013; and 17 million with a weighted-average exercise price of $44.73 per option in 2012. |
DISPOSITIONS_AND_ACQUISITIONS_
DISPOSITIONS AND ACQUISITIONS (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Acquisitions [Abstract] | ||||||||||||||||
Dispositions and Acquisitions [Text Block] | DISPOSITIONS AND ACQUISITIONS | |||||||||||||||
Candelaria and Ojos del Salado Disposition. On November 3, 2014, FCX completed the sale of its 80 percent ownership interests in the Candelaria and Ojos del Salado copper mining operations and supporting infrastructure (Candelaria/Ojos) located in Chile to Lundin Mining Corporation (Lundin) for $1.8 billion in cash, before closing adjustments, and contingent consideration of up to $200 million. Contingent consideration is calculated as five percent of net copper revenues in any annual period over the next five years when the average realized copper price exceeds $4.00 per pound. Excluding contingent consideration, after-tax net proceeds totaled $1.5 billion, and FCX recorded a gain of $671 million ($450 million after tax) associated with this transaction. The transaction had an effective date of June 30, 2014. FCX used the proceeds from this transaction to repay indebtedness. | ||||||||||||||||
This sale did not meet the criteria for classification as a discontinued operation under the April 2014 Accounting Standards Update issued by the Financial Accounting Standards Board, which FCX early adopted in the first quarter of 2014. The following table provides balances of the major classes of assets and liabilities for Candelaria/Ojos at November 3, 2014: | ||||||||||||||||
Current assets | $ | 482 | ||||||||||||||
Long-term assets | 1,155 | |||||||||||||||
Current liabilities | 129 | |||||||||||||||
Long-term liabilities | 89 | |||||||||||||||
Noncontrolling interests | 242 | |||||||||||||||
The following table provides net income before income taxes and net income attributable to FCX common stockholders for Candelaria/Ojos: | ||||||||||||||||
January 1, 2014, | ||||||||||||||||
to | Years Ended December 31, | |||||||||||||||
3-Nov-14 | 2013 | 2012 | ||||||||||||||
Net income before income taxes | $ | 270 | $ | 689 | $ | 547 | ||||||||||
Net income attributable to FCX common stockholders | 144 | 341 | 304 | |||||||||||||
Eagle Ford Disposition. On June 20, 2014, FCX completed the sale of its Eagle Ford shale assets to a subsidiary of Encana Corporation for cash consideration of $3.1 billion, before closing adjustments from the April 1, 2014, effective date. Under full cost accounting rules, the proceeds were recorded as a reduction of capitalized oil and gas properties, with no gain or loss recognition, except for $84 million of deferred tax expense recorded in connection with the allocation of $221 million of goodwill (for which deferred taxes were not previously provided) to the Eagle Ford shale assets. Approximately $1.3 billion of proceeds from this transaction was placed in a like-kind exchange escrow and was used to reinvest in additional oil and gas interests, as discussed below. The remaining proceeds were used to repay debt. | ||||||||||||||||
Deepwater Gulf of Mexico (GOM) Acquisitions. On June 30, 2014, FCX completed the acquisition of interests in the Deepwater GOM from a subsidiary of Apache Corporation, including interests in the Lucius and Heidelberg oil fields and several exploration leases, for $918 million ($451 million for oil and gas properties subject to amortization and $477 million for costs not subject to amortization, including transaction costs and $10 million of asset retirement costs). The Deepwater GOM acquisition was funded by the like-kind exchange escrow. | ||||||||||||||||
On September 8, 2014, FCX completed the acquisition of additional Deepwater GOM interests for $496 million, including an interest in the Vito oil discovery in the Mississippi Canyon area and a significant lease position in the Vito basin area. Based on preliminary valuations, and including purchase price adjustments and transaction costs, FCX recorded capitalized costs for oil and gas properties not subject to amortization of $509 million. This acquisition was funded in part with the remaining $414 million of funds from the like-kind exchange escrow. | ||||||||||||||||
PXP and MMR Acquisitions. FCX acquired PXP on May 31, 2013, and MMR on June 3, 2013. These acquisitions added a portfolio of oil and gas assets to FCX's global mining business, creating a U.S.-based natural resources company. The portfolio of oil and gas assets included oil production facilities and growth potential in the GOM, oil production from the onshore Eagle Ford shale play in Texas, oil production facilities onshore and offshore California, onshore natural gas resources in the Haynesville shale play in Louisiana, natural gas production from the Madden area in central Wyoming, and a position in the emerging Inboard Lower Tertiary/Cretaceous natural gas trend in the shallow waters of the GOM and onshore in South Louisiana. The acquisitions have been accounted for under the acquisition method, with FCX as the acquirer. As further discussed in Note 8, FCX issued $6.5 billion of unsecured senior notes in March 2013 for net proceeds of $6.4 billion, which was used, together with borrowings under a $4.0 billion unsecured five-year bank term loan, to fund the cash portion of the merger consideration for both transactions, to repay certain indebtedness of PXP and for general corporate purposes. | ||||||||||||||||
In the PXP acquisition, FCX acquired PXP for per-share consideration equivalent to 0.6531 shares of FCX common stock and $25.00 in cash. FCX issued 91 million shares of its common stock and paid $3.8 billion in cash (which included $411 million for the value of the $3 per share special dividend paid to PXP stockholders on May 31, 2013). Following is a summary of the $6.6 billion purchase price for PXP: | ||||||||||||||||
Number of shares of PXP common stock acquired (millions) | 132.28 | |||||||||||||||
Exchange ratio of FCX common stock for each PXP share | 0.6531 | |||||||||||||||
86.392 | ||||||||||||||||
Shares of FCX common stock issued for certain PXP equity awards (millions) | 4.769 | |||||||||||||||
Total shares of FCX common stock issued (millions) | 91.161 | |||||||||||||||
Closing share price of FCX common stock at May 31, 2013 | $ | 31.05 | ||||||||||||||
FCX stock consideration | $ | 2,831 | ||||||||||||||
Cash consideration | 3,725 | a | ||||||||||||||
Employee stock-based awards, primarily cash-settled stock-based awards | 83 | |||||||||||||||
Total purchase price | $ | 6,639 | ||||||||||||||
a. | Cash consideration includes the payment of $25.00 in cash for each PXP share ($3.3 billion), cash paid in lieu of any fractional shares of FCX common stock, cash paid for certain equity awards ($7 million) and the value of the $3 per share PXP special cash dividend ($411 million) paid on May 31, 2013. | |||||||||||||||
In the MMR acquisition, for each MMR share owned, MMR stockholders received $14.75 in cash and 1.15 units of a royalty trust, which holds a 5 percent overriding royalty interest in future production from MMR's Inboard Lower Tertiary/Cretaceous exploration prospects that existed as of December 5, 2012, the date of the merger agreement. MMR conveyed the royalty interests to the royalty trust immediately prior to the effective time of the merger, and they were "carved out" of the mineral interests that were acquired by FCX and not considered part of purchase consideration. | ||||||||||||||||
Prior to June 3, 2013, FCX owned 500,000 shares of MMR's 5.75% Convertible Perpetual Preferred Stock, Series 2, which were accounted for under the cost method and recorded on FCX's balance sheet at $432 million on May 31, 2013. Through its acquisition of PXP on May 31, 2013, FCX acquired 51 million shares of MMR's common stock, which had a fair value of $848 million on that date based upon the closing market price of MMR's common stock ($16.63 per share, i.e., Level 1 measurement). As a result of FCX obtaining control of MMR on June 3, 2013, FCX remeasured its ownership interests in MMR to a fair value of $1.4 billion, resulting in a gain of $128 million that was recorded in 2013. Fair value was calculated using the closing quoted market price of MMR's common stock on June 3, 2013, of $16.75 per share (i.e., Level 1 measurement) and a valuation model using observable inputs (i.e., Level 2 measurement) for the preferred stock. Following is a summary of the $3.1 billion purchase price for MMR: | ||||||||||||||||
Number of shares of MMR common stock acquired (millions) | 112.362 | a | ||||||||||||||
Cash consideration of $14.75 per share | $ | 14.75 | ||||||||||||||
Cash consideration paid by FCX | $ | 1,657 | ||||||||||||||
Employee stock-based awards | 63 | |||||||||||||||
Total | 1,720 | |||||||||||||||
Fair value of FCX's investment in 51 million shares of MMR common stock acquired on | ||||||||||||||||
May 31, 2013, through the acquisition of PXP | 854 | |||||||||||||||
Fair value of FCX's investment in MMR's 5.75% Convertible Perpetual Preferred Stock, Series 2 | 554 | |||||||||||||||
Total purchase price | $ | 3,128 | ||||||||||||||
a. | Excludes 51 million shares of MMR common stock owned by FCX through its acquisition of PXP on May 31, 2013. | |||||||||||||||
The following table summarizes the final purchase price allocations for PXP and MMR: | ||||||||||||||||
PXP | MMR | Eliminations | Total | |||||||||||||
Current assets | $ | 1,193 | $ | 98 | $ | — | $ | 1,291 | ||||||||
Oil and gas properties - full cost method: | ||||||||||||||||
Subject to amortization | 11,447 | 751 | — | 12,198 | ||||||||||||
Not subject to amortization | 9,401 | 1,711 | — | 11,112 | ||||||||||||
Property, plant and equipment | 261 | 1 | — | 262 | ||||||||||||
Investment in MMRa | 848 | — | (848 | ) | — | |||||||||||
Other assets | 12 | 382 | — | 394 | ||||||||||||
Current liabilities | (906 | ) | (174 | ) | — | (1,080 | ) | |||||||||
Debt (current and long-term) | (10,631 | ) | (620 | ) | — | (11,251 | ) | |||||||||
Deferred income taxesb | (3,917 | ) | — | — | (3,917 | ) | ||||||||||
Other long-term liabilities | (799 | ) | (262 | ) | — | (1,061 | ) | |||||||||
Redeemable noncontrolling interest | (708 | ) | (259 | ) | — | (967 | ) | |||||||||
Total fair value, excluding goodwill | 6,201 | 1,628 | (848 | ) | 6,981 | |||||||||||
Goodwill | 438 | 1,500 | — | 1,938 | ||||||||||||
Total purchase price | $ | 6,639 | $ | 3,128 | $ | (848 | ) | $ | 8,919 | |||||||
a. | PXP owned 51 million shares of MMR common stock, which were eliminated in FCX's consolidated balance sheet at the acquisition date of MMR. | |||||||||||||||
b. | Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 38 percent tax rate, which reflected a 35 percent federal statutory rate and a 3 percent weighted-average of the applicable statutory state tax rates (net of federal benefit). | |||||||||||||||
In accordance with the acquisition method of accounting, the purchase price from FCX's acquisitions of both PXP and MMR has been allocated to the assets acquired, liabilities assumed and redeemable noncontrolling interest based on their estimated fair values on the respective acquisition dates. The fair value estimates were based on, but not limited to, quoted market prices, where available; expected future cash flows based on estimated reserve quantities; costs to produce and develop reserves; current replacement cost for similar capacity for certain fixed assets; market rate assumptions for contractual obligations; appropriate discount rates and growth rates, and crude oil and natural gas forward prices. The excess of the total consideration over the estimated fair value of the amounts assigned to the identifiable assets acquired, liabilities assumed and redeemable noncontrolling interest was recorded as goodwill. Goodwill recorded in connection with the acquisitions is not deductible for income tax purposes. | ||||||||||||||||
The fair value measurement of the oil and gas properties, asset retirement obligations included in other liabilities (refer to Note 12 for further discussion) and redeemable noncontrolling interest were based, in part, on significant inputs not observable in the market (as discussed above) and thus represents a Level 3 measurement. The fair value measurement of long-term debt, including the current portion, was based on prices obtained from a readily available pricing source and thus represents a Level 2 measurement. | ||||||||||||||||
During second-quarter 2014, FCX finalized the purchase price allocations, which resulted in a decrease of $5 million to oil and gas properties subject to amortization, an increase of $25 million to oil and gas properties not subject to amortization, a net decrease of $42 million to deferred income tax assets and an increase of $22 million to goodwill. | ||||||||||||||||
Goodwill arose on these acquisitions principally because of limited drilling activities to date and the absence of production history and material reserve data associated with the very large estimated geologic potential of an emerging trend targeting deep-seated structures in the shallow waters of the GOM and onshore analogous to large discoveries in the Deepwater GOM and other proven basins' prospects. In addition, goodwill also resulted from the requirement to recognize deferred taxes on the difference between the fair value and the tax basis of the acquired assets. | ||||||||||||||||
A summary of changes in the carrying amount of goodwill follows: | ||||||||||||||||
Balance at January 1, 2013 | $ | — | ||||||||||||||
Acquisitions of PXP and MMR | 1,916 | |||||||||||||||
Balance at December 31, 2013 | 1,916 | |||||||||||||||
Purchase accounting adjustments | 22 | |||||||||||||||
Disposal of Eagle Ford (see above) | (221 | ) | ||||||||||||||
Impairment charge | (1,717 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | — | ||||||||||||||
During fourth-quarter 2014, FCX conducted a goodwill impairment assessment because of the significant decline in oil prices, which resulted in a goodwill impairment charge of $1.7 billion for the full carrying value of goodwill. Crude oil prices and FCX's estimates of oil reserves at December 31, 2014, represent the most significant assumptions used in FCX's evaluation of goodwill (i.e., Level 3 measurement). Forward strip Brent oil prices used in FCX's estimates at December 31, 2014, ranged from approximately $62 per barrel to $80 per barrel for the years 2015 through 2021, compared with a range from approximately $90 per barrel to $98 per barrel at the acquisition date. | ||||||||||||||||
Refer to Note 16 for the revenue and operating (loss) income that FM O&G contributed to FCX's consolidated results for the year ended December 31, 2014, and for the seven-month period from June 1, 2013, to December 31, 2013. FCX's acquisition-related costs for the PXP and MMR acquisitions totaled $74 million for the year ended December 31, 2013, and were included in selling, general and administrative expenses in the consolidated statement of operations. In addition, FCX deferred debt issuance costs of $96 million in connection with the debt financings for the acquisitions (refer to Note 8 for further discussion of the debt financings), which, net of amortization, are included in other assets in the consolidated balance sheets. | ||||||||||||||||
Redeemable Noncontrolling Interest - PXP. In 2011, PXP issued (i) 450,000 shares of Plains Offshore Operations Inc. (Plains Offshore, a consolidated subsidiary) 8% Convertible Preferred Stock (Preferred Stock) for gross proceeds of $450 million and (ii) non-detachable warrants with an exercise price of $20 per share to purchase in aggregate 9.1 million shares of Plains Offshore's common stock. In addition, Plains Offshore issued 87 million shares of Plains Offshore Class A common stock, which will be held in escrow until the conversion and cancellation of the Preferred Stock or the exercise of the warrants. Plains Offshore holds certain of FM O&G's oil and gas properties and assets located in the GOM in water depths of 500 feet or more, including the Lucius oil field and the Phobos discovery, but excluding the properties acquired by PXP in 2012 from BP Exploration & Production Inc., BP America Production Company and Shell Offshore Inc. The Preferred Stock represents a 20 percent equity interest in Plains Offshore and is entitled to a dividend of 8 percent per annum, payable quarterly, of which 2 percent may be deferred ($34 million of accumulated deferred dividends as of December 31, 2014). The preferred holders are entitled to vote on all matters on which Plains Offshore common stockholders are entitled to vote. The shares of Preferred Stock also fully participate, on an as-converted basis at four times, in cash dividends distributed to any class of common stockholders of Plains Offshore. Plains Offshore has not distributed any dividends to its common stockholders. | ||||||||||||||||
The holders of the Preferred Stock (preferred holders) have the right, at any time at their option, to convert any or all of such holder's shares of Preferred Stock and exercise any of the associated non-detachable warrants into shares of Class A common stock of Plains Offshore, at an initial conversion/exercise price of $20 per share; the conversion price is subject to adjustment as a result of certain events. At any time on or after November 17, 2016, the fifth anniversary of the closing date, FM O&G may exercise a call right to purchase all, but not less than all, of the outstanding shares of Preferred Stock and associated non-detachable warrants for cash, at a price equal to a liquidation preference as defined in the agreement. At any time after November 17, 2015, the fourth anniversary of the closing date, a majority of the preferred holders may cause Plains Offshore to use its commercially reasonable efforts to consummate an exit event as defined in the agreement. | ||||||||||||||||
The non-detachable warrants are considered to be embedded derivative instruments for accounting purposes and have been assessed as not being clearly and closely related to the Preferred Stock. Therefore, the warrants are classified as a long-term liability in the accompanying consolidated balance sheets and are adjusted to fair value each reporting period with adjustments recorded in other income (expense). | ||||||||||||||||
The Preferred Stock of Plains Offshore is classified as temporary equity because of its redemption features and is therefore reported outside of permanent equity in FCX's consolidated balance sheet. The redeemable noncontrolling interest totaled $751 million as of December 31, 2014, and $716 million as of December 31, 2013. Remeasurement of the redeemable noncontrolling interest represents its initial carrying amount adjusted for any noncontrolling interest's share of net income (loss) or changes to the redemption value. Additionally, the carrying amount will be further increased by amounts representing dividends not currently declared or paid, but which are payable under the redemption features. Future mark-to-market adjustments to the redemption value, subject to a minimum balance of the original recorded value ($708 million) on May 31, 2013, shall be reflected in retained earnings and earnings per share. Changes in the redemption value above the original recorded value are accreted over the period from the date FCX acquired PXP to the earliest redemption date. The redemption value has not exceeded the original recorded value; therefore, no amounts have been accreted. | ||||||||||||||||
Redeemable Noncontrolling Interest - MMR. Following FCX's acquisition of MMR, MMR's 8% Convertible Perpetual Preferred Stock and 5.75% Convertible Perpetual Preferred Stock, Series 1 (totaling $259 million) converted during 2013 primarily at the make-whole conversion rates for which holders received cash of $228 million and 17.7 million royalty trust units with a fair value of $31 million at the acquisition date. | ||||||||||||||||
Unaudited Pro Forma Consolidated Financial Information. The following unaudited pro forma financial information has been prepared to reflect the acquisitions of PXP and MMR. The unaudited pro forma financial information combines the historical statements of income of FCX, PXP and MMR (including the pro forma effects of PXP's GOM acquisition that was completed on November 30, 2012) for the years ended December 31, 2013 and 2012, giving effect to the mergers as if they had occurred on January 1, 2012. The historical consolidated financial information has been adjusted to reflect factually supportable items that are directly attributable to the acquisitions. | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Revenues | $ | 23,075 | $ | 22,713 | ||||||||||||
Operating income | 6,267 | 6,815 | ||||||||||||||
Income from continuing operations | 3,626 | 4,277 | ||||||||||||||
Net income attributable to FCX common stockholders | 2,825 | 3,301 | ||||||||||||||
Net income per share attributable to FCX common stockholders: | ||||||||||||||||
Basic | $ | 2.71 | $ | 3.17 | ||||||||||||
Diluted | 2.7 | 3.16 | ||||||||||||||
The above unaudited pro forma consolidated information has been prepared for illustrative purposes only and is not intended to be indicative of the results of operations that actually would have occurred, or the results of operations expected in future periods, had the events reflected herein occurred on the date indicated. The most significant pro forma adjustments to income from continuing operations for the year ended December 31, 2013, were to exclude $519 million of acquisition-related costs, the net tax benefit of $199 million of acquisition-related adjustments and the $128 million gain on the investment in MMR and to include them in the year ended December 31, 2012. Additionally, for the year ended December 31, 2013, the pro forma consolidated information excluded a $77 million gain on the sale of oil and gas properties reflected in MMR's results of operations prior to the acquisition because of the application of the full cost accounting method. | ||||||||||||||||
Cobalt Chemical Refinery Business. On March 29, 2013, FCX, through a newly formed consolidated joint venture, completed the acquisition of a cobalt chemical refinery in Kokkola, Finland, and the related sales and marketing business. The acquisition provides direct end-market access for the cobalt hydroxide production at Tenke. The joint venture operates under the name Freeport Cobalt, and FCX is the operator with an effective 56 percent ownership interest. The remaining effective ownership interest is held by FCX's partners in TFM, including 24 percent by Lundin and 20 percent by La Générale des Carrières et des Mines (Gécamines). Consideration paid was $382 million, which included $34 million for cash acquired, and was funded 70 percent by FCX and 30 percent by Lundin. Under the terms of the acquisition agreement, there is also the potential for additional consideration of up to $110 million over a period of three years, contingent upon the achievement of revenue-based performance targets. As of December 31, 2014, no amount was recorded for this contingency because these targets are not expected to be achieved. |
OWNERSHIP_IN_SUBSIDIARIES_AND_
OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES | 12 Months Ended |
Dec. 31, 2014 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Ownership In Subsidiaries And Joint Ventures | OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES |
Ownership in Subsidiaries. FMC is a fully integrated producer of copper and molybdenum, with mines in North America, South America and the Tenke minerals district in the Democratic Republic of Congo (DRC). At December 31, 2014, FMC’s operating mines in North America were Morenci, Bagdad, Safford, Sierrita and Miami located in Arizona; Tyrone and Chino located in New Mexico; and Henderson and Climax located in Colorado. FCX has an 85 percent interest in Morenci (refer to “Joint Ventures – Sumitomo”) and owns 100 percent of the other North America mines. At December 31, 2014, operating mines in South America were Cerro Verde (53.56 percent owned) located in Peru and El Abra (51 percent owned) located in Chile. At December 31, 2014, FMC owned an effective 56 percent interest in the Tenke minerals district in the DRC (refer to Note 13 for discussion of the change in ownership interest in 2012). At December 31, 2014, FMC’s net assets totaled $19.6 billion and its accumulated deficit totaled $9.7 billion. FCX had no loans outstanding to FMC at December 31, 2014. | |
FCX’s direct ownership in PT-FI totals 81.28 percent. PT Indocopper Investama, an Indonesian company, owns 9.36 percent of PT-FI, and FCX owns 100 percent of PT Indocopper Investama. Refer to "Joint Ventures - Rio Tinto" for discussion of the unincorporated joint ventures. At December 31, 2014, PT-FI's net assets totaled $5.4 billion and its retained earnings totaled $5.2 billion. FCX had $213 million in intercompany loans outstanding to PT-FI at December 31, 2014. | |
FCX owns 100 percent of the outstanding Atlantic Copper common stock. At December 31, 2014, Atlantic Copper’s net liabilities totaled $145 million and its accumulated deficit totaled $552 million. FCX had $579 million in intercompany loans outstanding to Atlantic Copper at December 31, 2014. | |
FCX owns 100 percent of FM O&G, which has a portfolio of oil and gas assets. At December 31, 2014, FM O&G’s net assets totaled $7.2 billion and its accumulated deficit totaled $4.4 billion. FCX had $4.6 billion in intercompany loans to FM O&G at December 31, 2014. | |
Joint Ventures. FCX has the following unincorporated joint ventures with third parties. | |
Rio Tinto. PT-FI and Rio Tinto have established an unincorporated joint venture pursuant to which Rio Tinto has a 40 percent interest in PT-FI’s Contract of Work (COW) and the option to participate in 40 percent of any other future exploration projects in Papua, Indonesia. | |
Pursuant to the joint venture agreement, Rio Tinto has a 40 percent interest in certain assets and future production exceeding specified annual amounts of copper, gold and silver through 2021 in Block A of PT-FI’s COW, and, after 2021, a 40 percent interest in all production from Block A. All of PT-FI’s proven and probable reserves and all its mining operations are located in the Block A area. PT-FI receives 100 percent of production and related revenues from reserves established as of December 31, 1994 (27.1 billion pounds of copper, 38.4 million ounces of gold and 75.8 million ounces of silver), divided into annual portions subject to reallocation for events causing changes in the anticipated production schedule. Production and related revenues exceeding those annual amounts (referred to as incremental expansion revenues) are shared 60 percent PT-FI and 40 percent Rio Tinto. Operating, nonexpansion capital and administrative costs are shared 60 percent PT-FI and 40 percent Rio Tinto based on the ratio of (i) the incremental expansion revenues to (ii) total revenues from production from Block A, with PT-FI responsible for the rest of such costs. PT-FI will continue to receive 100 percent of the cash flow from specified annual amounts of copper, gold and silver through 2021 calculated by reference to its proven and probable reserves as of December 31, 1994, and 60 percent of all remaining cash flow. Expansion capital costs are shared 60 percent PT-FI and 40 percent Rio Tinto. The payable to Rio Tinto for its share of joint venture cash flows was $29 million at December 31, 2014, and $33 million at December 31, 2013. | |
Sumitomo. FCX owns an 85 percent undivided interest in Morenci via an unincorporated joint venture. The remaining 15 percent is owned by Sumitomo, a jointly owned subsidiary of Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation. Each partner takes in kind its share of Morenci’s production. FMC purchased 82 million pounds of Morenci’s copper cathode from Sumitomo at market prices for $257 million during 2014. FCX had a receivable from Sumitomo of $11 million at December 31, 2014, and $12 million at December 31, 2013. |
INVENTORIES_INCLUDING_LONGTERM
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories, Including Long Term Mill and Leach Stockpiles [Abstract] | |||||||||
Inventories, Including Long-Term Mill And Leach Stockpiles | INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES | ||||||||
The components of inventories follow: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Current inventories: | |||||||||
Mill stockpiles | $ | 86 | $ | 91 | |||||
Leach stockpiles | 1,828 | 1,614 | a | ||||||
Total current mill and leach stockpiles | $ | 1,914 | $ | 1,705 | |||||
Total materials and supplies, netb | $ | 1,886 | $ | 1,730 | |||||
Raw materials (primarily concentrates) | $ | 288 | $ | 238 | |||||
Work-in-process | 174 | 199 | |||||||
Finished goods | 1,099 | 1,146 | |||||||
Total product inventories | $ | 1,561 | $ | 1,583 | |||||
Long-term inventories: | |||||||||
Mill stockpiles | $ | 360 | $ | 698 | |||||
Leach stockpiles | 1,819 | 1,688 | |||||||
Total long-term mill and leach stockpilesc | $ | 2,179 | $ | 2,386 | |||||
a. | Amount is net of a $76 million charge associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles. | ||||||||
b. | Materials and supplies inventory was net of obsolescence reserves totaling $20 million at December 31, 2014, and $24 million at December 31, 2013. | ||||||||
c. | Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
PROPERTY_PLANT_EQUIPMENT_AND_M
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, Plant, Equipment and Mining Development Costs, Net | PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET | |||||||
The components of net property, plant, equipment and mining development costs follow: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Proven and probable mineral reserves | $ | 4,651 | $ | 4,651 | ||||
VBPP | 1,042 | 1,044 | ||||||
Mining development and other | 4,712 | 4,335 | ||||||
Buildings and infrastructure | 5,100 | 4,334 | ||||||
Machinery and equipment | 11,251 | 10,379 | ||||||
Mobile equipment | 3,926 | 3,903 | ||||||
Construction in progress | 6,802 | 5,603 | ||||||
Property, plant, equipment and mining development costs | 37,484 | 34,249 | ||||||
Accumulated depreciation, depletion and amortization | (11,264 | ) | (10,207 | ) | ||||
Property, plant, equipment and mining development costs, net | $ | 26,220 | $ | 24,042 | ||||
FCX recorded $2.2 billion for VBPP in connection with the FMC acquisition in 2007 and transferred $2 million to proven and probable mineral reserves during 2014, $22 million during 2013 and $762 million prior to 2013. Cumulative impairments of VBPP total $482 million, which were primarily recorded in 2008. | ||||||||
Capitalized interest, which primarily related to FCX's mining operations' capital projects, totaled $148 million in 2014, $105 million in 2013 and $81 million in 2012. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Other Assets Disclosure [Text Block] | OTHER ASSETS | |||||||
The components of other assets follow: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Disputed tax assessments:a | ||||||||
PT-FI | $ | 279 | $ | 255 | ||||
Cerro Verde | 232 | 72 | ||||||
Intangible assetsb | 334 | 380 | ||||||
Investments: | ||||||||
Assurance bondc | 115 | — | ||||||
PT Smeltingd | 107 | 71 | ||||||
Available-for-sale securities | 46 | 44 | ||||||
Other | 60 | 63 | ||||||
Legally restricted fundse | 172 | 392 | ||||||
Loan to a DRC public electric utility | 164 | 152 | ||||||
Debt issue costs | 141 | 107 | ||||||
Deferred drillship costs | 113 | — | ||||||
Long-term receivable for income tax refunds | 63 | 77 | ||||||
Loan to Gécamines (related party) | 37 | 34 | ||||||
Other | 214 | 151 | ||||||
Total other assets | $ | 2,077 | $ | 1,798 | ||||
a. | Refer to Note 12 for further discussion. | |||||||
b. | Intangible assets were net of accumulated amortization totaling $62 million at December 31, 2014, and $57 million at December 31, 2013. | |||||||
c. | Relates to PT-FI's commitment for smelter development in Indonesia at December 31, 2014 (refer to Note 13 for further discussion). | |||||||
d. | FCX's 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $24 million at December 31, 2014, and $58 million at December 31, 2013. | |||||||
e. | Includes $168 million for AROs related to properties in New Mexico at December 31, 2014, and a $210 million time deposit that secured a bank guarantee (until the time deposit was released as security for the bank guarantee in 2014) associated with the Cerro Verde royalty dispute and $158 million for AROs related to properties in New Mexico at December 31, 2013 (refer to Note 12 for further discussion). |
ACCOUNTS_PAYABLE_AND_ACCRUED_L
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | |||||||
Additional information regarding accounts payable and accrued liabilities follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable | $ | 2,439 | $ | 2,144 | ||||
Salaries, wages and other compensation | 373 | 352 | ||||||
Accrued interesta | 166 | 210 | ||||||
Other accrued taxes | 137 | 142 | ||||||
Pension, postretirement, postemployment and other employee benefitsb | 106 | 161 | ||||||
Deferred revenue | 105 | 115 | ||||||
Oil and gas royalty and revenue payable | 76 | 169 | ||||||
Rio Tinto's share of joint venture cash flows | 29 | 33 | ||||||
Commodity derivative contracts | 43 | 205 | ||||||
Other | 179 | 177 | ||||||
Total accounts payable and accrued liabilities | $ | 3,653 | $ | 3,708 | ||||
a. | Third-party interest paid, net of capitalized interest, was $637 million in 2014, $397 million in 2013 and $111 million in 2012. | |||||||
b. | Refer to Note 9 for long-term portion. |
DEBT
DEBT | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Debt | DEBT | |||||||||||||||
Debt included $226 million of fair value adjustments related to the debt assumed in the acquisition of PXP at December 31, 2014, and $653 million at December 31, 2013. The components of debt follow: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Bank term loan | $ | 3,050 | $ | 4,000 | ||||||||||||
Revolving credit facility | — | — | ||||||||||||||
Lines of credit | 474 | — | ||||||||||||||
Subsidiary credit facility | 425 | — | ||||||||||||||
Senior notes and debentures: | ||||||||||||||||
Issued by FCX: | ||||||||||||||||
1.40% Senior Notes due 2015 | — | 500 | ||||||||||||||
2.15% Senior Notes due 2017 | 500 | 500 | ||||||||||||||
2.30% Senior Notes due 2017 | 749 | — | ||||||||||||||
2.375% Senior Notes due 2018 | 1,500 | 1,500 | ||||||||||||||
3.100% Senior Notes due 2020 | 1,000 | 999 | ||||||||||||||
4.00% Senior Notes due 2021 | 598 | — | ||||||||||||||
3.55% Senior Notes due 2022 | 1,996 | 1,996 | ||||||||||||||
3.875% Senior Notes due 2023 | 1,999 | 1,999 | ||||||||||||||
4.55% Senior Notes due 2024 | 849 | — | ||||||||||||||
5.40% Senior Notes due 2034 | 796 | — | ||||||||||||||
5.450% Senior Notes due 2043 | 1,991 | 1,991 | ||||||||||||||
Issued by FM O&G: | ||||||||||||||||
6.125% Senior Notes due 2019 | 255 | 817 | ||||||||||||||
8.625% Senior Notes due 2019 | — | 447 | ||||||||||||||
7.625% Senior Notes due 2020 | — | 336 | ||||||||||||||
6½% Senior Notes due 2020 | 670 | 1,647 | ||||||||||||||
6.625% Senior Notes due 2021 | 284 | 659 | ||||||||||||||
6.75% Senior Notes due 2022 | 493 | 1,111 | ||||||||||||||
6⅞% Senior Notes due 2023 | 866 | 1,686 | ||||||||||||||
Issued by FMC: | ||||||||||||||||
71/8% Debentures due 2027 | 115 | 115 | ||||||||||||||
9½% Senior Notes due 2031 | 129 | 130 | ||||||||||||||
61/8% Senior Notes due 2034 | 116 | 115 | ||||||||||||||
Other (including equipment capital leases and other short-term borrowings) | 115 | 158 | ||||||||||||||
Total debt | 18,970 | 20,706 | ||||||||||||||
Less current portion of debt | (478 | ) | (312 | ) | ||||||||||||
Long-term debt | $ | 18,492 | $ | 20,394 | ||||||||||||
Bank Term Loan. In February 2013, FCX entered into an agreement for a $4.0 billion unsecured bank term loan (Term Loan) in connection with the acquisitions of PXP and MMR. Upon closing the PXP acquisition, FCX borrowed $4.0 billion under the Term Loan, and Freeport-McMoRan Oil & Gas LLC (FM O&G LLC, a wholly owned subsidiary of FM O&G and the successor entity of PXP) joined the Term Loan as a borrower. In November 2014, FCX prepaid $750 million of the Term Loan scheduled quarterly payments of which $100 million was applied to fourth-quarter 2014, $550 million to 2015 and $100 million to first-quarter 2016. Therefore, as of December 31, 2014, the Term Loan's scheduled payments total $650 million of quarterly installments in 2016 and $200 million in first-quarter 2017, with the final payment of $2.2 billion due on May 31, 2018. At FCX's option, the Term Loan bears interest at either an adjusted London Interbank Offered Rate (LIBOR) or an alternate base rate (ABR) (as defined under the Term Loan agreement) plus a spread determined by reference to FCX's credit ratings (effective February 11, 2015, LIBOR plus 1.75 percent or ABR plus 0.75 percent; previously LIBOR plus 1.50 percent or ABR plus 0.50 percent). The effective interest rate on the Term Loan was 1.67 percent at December 31, 2014. In February 2015, the Term Loan was amended (refer to Note 18 for further discussion). | ||||||||||||||||
Revolving Credit Facility. In May 2014, FCX, PT-FI and FM O&G LLC amended the senior unsecured $3.0 billion revolving credit facility to extend the maturity date one year to May 31, 2019, and increase the aggregate facility amount from $3.0 billion to $4.0 billion, with $500 million available to PT-FI. FCX, PT-FI and FM O&G LLC had entered into the $3.0 billion revolving credit facility on May 31, 2013 (upon completion of the acquisition of PXP). At December 31, 2014, there were no borrowings and $45 million of letters of credit issued under the revolving credit facility, resulting in availability of approximately $4.0 billion, of which $1.5 billion could be used for additional letters of credit. In February 2015, the revolving credit facility was amended (refer to Note 18 for further discussion). | ||||||||||||||||
Interest on the revolving credit facility (effective February 11, 2015, LIBOR plus 1.75 percent or the ABR plus 0.75 percent; previously LIBOR plus 1.50 percent or ABR plus 0.50 percent) is determined by reference to FCX's credit ratings. | ||||||||||||||||
Lines of Credit. At December 31, 2014, FCX had $474 million outstanding on its uncommitted and short-term lines of credit with certain financial institutions. These unsecured lines of credit allow FCX to borrow at a spread over LIBOR or the respective financial institution's cost of funds with terms and pricing that are generally more favorable than FCX's revolving credit facility. The weighted-average effective interest rate on the lines of credit was 1.29 percent at December 31, 2014. | ||||||||||||||||
Subsidiary Credit Facility. In March 2014, Cerro Verde (FCX's mining subsidiary in Peru) entered into a five-year, $1.8 billion senior unsecured credit facility that is nonrecourse to FCX and the other shareholders of Cerro Verde. The credit facility allows for term loan borrowings up to the full amount of the facility, less any amounts issued and outstanding under a $500 million letter of credit sublimit. Interest on amounts drawn under the term loan is based on LIBOR plus a spread (currently 1.90 percent) based on Cerro Verde’s total net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio as defined in the agreement. Amounts may be drawn or letters of credit may be issued over a two-year period to fund a portion of Cerro Verde’s expansion project and for Cerro Verde's general corporate purposes. The credit facility amortizes in three installments in amounts necessary for the aggregate borrowings and outstanding letters of credit not to exceed 85 percent of the $1.8 billion commitment on September 30, 2017, 70 percent on March 31, 2018, and 35 percent on September 30, 2018, with the remaining balance due on the maturity date of March 10, 2019. At December 31, 2014, $425 million was outstanding and no letters of credit were issued under Cerro Verde’s credit facility. The effective interest rate on Cerro Verde's credit facility was 2.07 percent at December 31, 2014. | ||||||||||||||||
Senior Notes issued by FCX. In November 2014, FCX sold $750 million of 2.30% Senior Notes due 2017, $600 million of 4.00% Senior Notes due 2021, $850 million of 4.55% Senior Notes due 2024 and $800 million of 5.40% Senior Notes due 2034 for total net proceeds of $2.97 billion. The 2.30% Senior Notes and the 4.00% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price. The 4.55% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to August 14, 2024, and thereafter at 100 percent of principal. The 5.40% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to May 14, 2034, and thereafter at 100 percent of principal. FCX used the net proceeds from these senior notes to repay certain of its outstanding debt. | ||||||||||||||||
In March 2013, in connection with the financing of FCX's acquisitions of PXP and MMR, FCX issued $6.5 billion of unsecured senior notes in four tranches. FCX sold $1.5 billion of 2.375% Senior Notes due March 2018, $1.0 billion of 3.100% Senior Notes due March 2020, $2.0 billion of 3.875% Senior Notes due March 2023 and $2.0 billion of 5.450% Senior Notes due March 2043 for total net proceeds of $6.4 billion. The 2.375% Senior Notes and the 3.100% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price. The 3.875% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to December 15, 2022, and thereafter at 100 percent of principal. The 5.450% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to September 15, 2042, and thereafter at 100 percent of principal. | ||||||||||||||||
In February 2012, FCX sold $500 million of 1.40% Senior Notes due 2015, $500 million of 2.15% Senior Notes due 2017 and $2.0 billion of 3.55% Senior Notes due 2022 for total net proceeds of $2.97 billion. In December 2014, FCX redeemed all of its outstanding $500 million of 1.40% Senior Notes due 2015. The 2.15% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the redemption date. The 3.55% Senior Notes are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to December 1, 2021, and thereafter at 100 percent of principal. | ||||||||||||||||
These senior notes rank equally with FCX's other existing and future unsecured and unsubordinated indebtedness. | ||||||||||||||||
Senior Notes issued by FM O&G. In May 2013, in connection with the acquisition of PXP, FCX assumed unsecured senior notes with a stated value of $6.4 billion, which was increased by $716 million to reflect the acquisition-date fair market value of these senior notes. The fair value adjustments are being amortized over the term of the senior notes and recorded as a reduction of interest expense. These senior notes are redeemable in whole or in part, at the option of FM O&G LLC, at make-whole redemption prices prior to the dates stated below, and beginning on the dates stated below at specified redemption prices. Upon completion of the acquisition of PXP, FCX guaranteed these senior notes resulting in an investment grade rating for these senior notes. | ||||||||||||||||
Debt Instrument | Date | |||||||||||||||
6.125% Senior Notes due 2019 | June 15, 2016 | |||||||||||||||
6½% Senior Notes due 2020 | November 15, 2015 | |||||||||||||||
6.625% Senior Notes due 2021 | May 1, 2016 | |||||||||||||||
6.75% Senior Notes due 2022 | February 1, 2017 | |||||||||||||||
6⅞% Senior Notes due 2023 | February 15, 2018 | |||||||||||||||
Additionally, in connection with the acquisition of MMR, FCX assumed MMR's 11.875% Senior Notes due 2014, 4% Convertible Senior Notes due 2017 and 5¼% Convertible Senior Notes due 2013 with a total stated value of $558 million, which was increased by $62 million to reflect the acquisition-date fair market value of these obligations. During 2013, all of the 11.875% Senior Notes due 2014 were redeemed, and holders of 4% Convertible Senior Notes due 2017 and 5¼% Convertible Senior Notes due 2013 converted their notes into merger consideration totaling $306 million, including cash payments of $270 million and 21.0 million royalty trust units with a fair value of $36 million at the acquisition date. At December 31, 2014 and 2013, there were no outstanding amounts in connection with MMR’s senior notes. | ||||||||||||||||
Early Extinguishments of Debt. A summary of debt extinguishments during 2014 for senior notes resulting from redemptions and tender offers follows: | ||||||||||||||||
Principal Amount | Purchase Accounting Fair Value Adjustments | Book Value | (Loss) Gain | |||||||||||||
1.40% Senior Notes due 2015 | $ | 500 | $ | — | $ | 500 | $ | (1 | ) | |||||||
6.125% Senior Notes due 2019 | 513 | 40 | 553 | (2 | ) | |||||||||||
8.625% Senior Notes due 2019 | 400 | 41 | 441 | 24 | ||||||||||||
7.625% Senior Notes due 2020 | 300 | 32 | 332 | 14 | ||||||||||||
6½% Senior Notes due 2020 | 883 | 79 | 962 | 10 | ||||||||||||
6.625% Senior Notes due 2021 | 339 | 31 | 370 | 3 | ||||||||||||
6.75% Senior Notes due 2022 | 551 | 57 | 608 | 8 | ||||||||||||
6⅞% Senior Notes due 2023 | 722 | 84 | 806 | 21 | ||||||||||||
$ | 4,208 | $ | 364 | $ | 4,572 | $ | 77 | |||||||||
In addition, FCX recorded a loss on early extinguishment of debt of $4 million associated with the modification of its revolving credit facility in May 2014 and for fees related to the tender offers in December 2014. | ||||||||||||||||
In 2013, FCX completed the following transactions that resulted in a net loss on early extinguishment of debt of $35 million: (i) the termination of its $9.5 billion acquisition bridge loan facility, which was entered into in December 2012 to provide interim financing for the acquisitions of PXP and MMR but was replaced with other financing, that resulted in a loss of $45 million; (ii) the repayment of the $3.9 billion outstanding under PXP’s amended credit facility and the redemption of all of PXP’s 7⅝% Senior Notes due 2018 for $415 million, which did not result in a gain or loss; partially offset by (iii) the redemption of MMR’s remaining outstanding 11.875% Senior Notes due 2014 for $299 million, which resulted in a gain of $10 million. | ||||||||||||||||
In 2012, FCX redeemed the remaining $3.0 billion of its outstanding 8.375% Senior Notes due 2017 for which holders received 104.553 percent of the principal amount together with the accrued and unpaid interest. As a result of this redemption, FCX recorded a loss on early extinguishment of debt of $168 million during 2012. | ||||||||||||||||
Guarantees. In connection with the acquisition of PXP, FCX guaranteed the PXP senior notes, and the guarantees by certain PXP subsidiaries were released. Refer to Note 17 for a discussion of FCX’s senior notes guaranteed by FM O&G LLC. | ||||||||||||||||
Restrictive Covenants. FCX's Term Loan and revolving credit facility contain customary affirmative covenants and representations, and also contain a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX’s ability or the ability of FCX’s subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell all or substantially all of the assets of FCX and its subsidiaries, taken as a whole. FCX's Term Loan and revolving credit facility also contain financial ratios governing maximum total leverage and minimum interest coverage. FCX’s senior notes contain limitations on liens that are generally typical for investment grade companies. At December 31, 2014, FCX was in compliance with all of its covenants. | ||||||||||||||||
Maturities. Maturities of debt instruments based on the principal amounts and terms outstanding at December 31, 2014, total $478 million in 2015, $651 million in 2016, $1.5 billion in 2017, $3.7 billion in 2018, $662 million in 2019 and $11.8 billion thereafter. |
OTHER_LIABILITIES_INCLUDING_EM
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Liabilities, Including Employee Benefits [Abstract] | ||||||||||||||||
Other Liabilities, Including Employee benefits | OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS | |||||||||||||||
Information regarding other liabilities follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Pension, postretirement, postemployment and other employment benefitsa | $ | 1,430 | $ | 1,225 | ||||||||||||
Reserve for uncertain tax positions | 68 | 87 | ||||||||||||||
Commodity derivative contracts | — | 115 | ||||||||||||||
Other | 363 | 263 | ||||||||||||||
Total other liabilities | $ | 1,861 | $ | 1,690 | ||||||||||||
a. | Refer to Note 7 for current portion. | |||||||||||||||
Pension Plans. Following is a discussion of FCX’s pension plans. | ||||||||||||||||
FMC Plans. FMC has U.S. trusteed, non-contributory pension plans covering substantially all of its U.S. employees and some employees of its international subsidiaries hired before 2007. The applicable FMC plan design determines the manner in which benefits are calculated for any particular group of employees. Benefits are calculated based on final average monthly compensation and years of service or based on a fixed amount for each year of service. Participants in the FMC plans generally vest in their accrued benefits after five years of service. Non-bargained FMC employees hired after December 31, 2006, are not eligible to participate in the FMC U.S. pension plan. | ||||||||||||||||
FCX’s funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time. | ||||||||||||||||
FCX’s policy for determining asset-mix targets for the FMC plan assets held in a master trust (Master Trust) includes the periodic development of asset and liability studies to determine expected long-term rates of return and expected risk for various investment portfolios. FCX’s retirement plan administration and investment committee considers these studies in the formal establishment of asset-mix targets. FCX’s investment objective emphasizes the need to maintain a well-diversified investment program through both the allocation of the Master Trust assets among asset classes and the selection of investment managers whose various styles are fundamentally complementary to one another and serve to achieve satisfactory rates of return. Diversification, by asset class and by investment manager, is FCX’s principal means of reducing volatility and exercising prudent investment judgment. FCX’s present target asset allocation approximates 45 percent equity investments (primarily global equities), 45 percent fixed income (primarily long-term treasury STRIPS or "separate trading or registered interest and principal securities"; long-term U.S. treasury/agency bonds; global fixed income securities; long-term, high-credit quality corporate bonds; high-yield and emerging markets fixed income securities; and fixed income debt securities) and 10 percent alternative investments (private real estate, real estate investment trusts and private equity). | ||||||||||||||||
The expected rate of return on plan assets is evaluated at least annually, taking into consideration asset allocation, historical returns on the types of assets held in the Master Trust and the current economic environment. Based on these factors, FCX expects the pension assets will earn an average of 7.25 percent per annum beginning January 1, 2015. The 7.25 percent estimation was based on a passive return on a compound basis of 6.75 percent and a premium for active management of 0.5 percent reflecting the target asset allocation and current investment array. | ||||||||||||||||
For estimation purposes, FCX assumes the long-term asset mix for these plans generally will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension income or expense, the funded status of the plans and the need for future cash contributions. A lower-than-expected return on assets also would decrease plan assets and increase the amount of recorded pension expense in future years. When calculating the expected return on plan assets, FCX uses the market value of assets. | ||||||||||||||||
Among the assumptions used to estimate the benefit obligation is a discount rate used to calculate the present value of expected future benefit payments for service to date. The discount rate assumption for FCX’s U.S. plans is designed to reflect yields on high-quality, fixed-income investments for a given duration. The determination of the discount rate for these plans is based on expected future benefit payments for service to date together with the Mercer Pension Discount Curve - Above Mean Yield. The Mercer Pension Discount Curve - Above Mean Yield is constructed from the bonds in the Mercer Pension Discount Curve that have a yield higher than the regression mean yield curve. The Mercer Pension Discount Curve consists of spot (i.e., zero coupon) interest rates at one-half year increments for each of the next 30 years and is developed based on pricing and yield information for high-quality corporate bonds. Changes in the discount rate are reflected in FCX’s benefit obligation and, therefore, in future pension costs. | ||||||||||||||||
Other FCX Plans. In February 2004, FCX established an unfunded Supplemental Executive Retirement Plan (SERP) for its two most senior executive officers. The SERP provides for retirement benefits payable in the form of a joint and survivor annuity or an equivalent lump sum. The annuity will equal a percentage of the executive’s highest average compensation for any consecutive three-year period during the five years immediately preceding 25 years of credited service. The SERP benefit will be reduced by the value of all benefits paid or due under any defined benefit or defined contribution plan sponsored by FM Services Company, FCX’s wholly owned subsidiary, FCX or its predecessor, but not including accounts funded exclusively by deductions from participant’s pay. | ||||||||||||||||
PT-FI Plan. PT-FI has a defined benefit pension plan denominated in Indonesian rupiah covering substantially all of its Indonesian national employees. PT-FI funds the plan and invests the assets in accordance with Indonesian pension guidelines. The pension obligation was valued at an exchange rate of 12,378 rupiah to one U.S. dollar on December 31, 2014, and 12,128 rupiah to one U.S. dollar on December 31, 2013. Indonesian labor laws enacted in 2003 require that companies provide a minimum level of benefits to employees upon employment termination based on the reason for termination and the employee’s years of service. PT-FI’s pension benefit disclosures include benefits related to this law. PT-FI’s expected rate of return on plan assets is evaluated at least annually, taking into consideration its long-range estimated return for the plan based on the asset mix. Based on these factors, PT-FI expects its pension assets will earn an average of 7.75 percent per annum beginning January 1, 2015. The discount rate assumption for PT-FI's plan is based on the Mercer Indonesian zero coupon bond yield curve derived from the Indonesian Government Security Yield Curve. Changes in the discount rate are reflected in PT-FI's benefit obligation and, therefore, in future pension costs. | ||||||||||||||||
Plan Information. FCX uses a measurement date of December 31 for its plans. Information for those plans where the accumulated benefit obligations exceed the fair value of plan assets follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Projected benefit obligation | $ | 2,221 | $ | 2,180 | ||||||||||||
Accumulated benefit obligation | 2,090 | 1,933 | ||||||||||||||
Fair value of plan assets | 1,433 | 1,490 | ||||||||||||||
Information on the FCX (including FMC’s plans and FCX’s SERP plans) and PT-FI plans as of December 31 follows: | ||||||||||||||||
FCX | PT-FI | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning | ||||||||||||||||
of year | $ | 1,871 | $ | 1,954 | $ | 259 | $ | 240 | ||||||||
Service cost | 30 | 30 | 22 | 20 | ||||||||||||
Interest cost | 92 | 77 | 23 | 14 | ||||||||||||
Actuarial losses (gains) | 278 | (103 | ) | 30 | 13 | |||||||||||
Plan amendment | — | — | — | 33 | ||||||||||||
Foreign exchange (gains) losses | (2 | ) | 1 | (7 | ) | (53 | ) | |||||||||
Benefits paid | (90 | ) | (88 | ) | (9 | ) | (8 | ) | ||||||||
Benefit obligation at end of year | 2,179 | 1,871 | 318 | 259 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at | ||||||||||||||||
beginning of year | 1,350 | 1,300 | 124 | 130 | ||||||||||||
Actual return on plan assets | 151 | 112 | 20 | (3 | ) | |||||||||||
Employer contributionsa | 6 | 26 | 55 | 35 | ||||||||||||
Foreign exchange losses | (1 | ) | — | (5 | ) | (30 | ) | |||||||||
Benefits paid | (90 | ) | (88 | ) | (9 | ) | (8 | ) | ||||||||
Fair value of plan assets at end | ||||||||||||||||
of year | 1,416 | 1,350 | 185 | 124 | ||||||||||||
Funded status | $ | (763 | ) | $ | (521 | ) | $ | (133 | ) | $ | (135 | ) | ||||
Accumulated benefit obligation | $ | 2,048 | $ | 1,742 | $ | 168 | $ | 141 | ||||||||
Weighted-average assumptions | ||||||||||||||||
used to determine benefit obligations: | ||||||||||||||||
Discount rate | 4.1 | % | 5 | % | 8.25 | % | 9 | % | ||||||||
Rate of compensation increase | 3.25 | % | 3.75 | % | 9 | % | 9 | % | ||||||||
Balance sheet classification of | ||||||||||||||||
funded status: | ||||||||||||||||
Other assets | $ | 8 | $ | 8 | $ | — | $ | — | ||||||||
Accounts payable and | ||||||||||||||||
accrued liabilities | (4 | ) | (4 | ) | — | — | ||||||||||
Other liabilities | (767 | ) | (525 | ) | (133 | ) | (135 | ) | ||||||||
Total | $ | (763 | ) | $ | (521 | ) | $ | (133 | ) | $ | (135 | ) | ||||
a. | Employer contributions for 2015 are expected to approximate $98 million for the FCX plans and $20 million for the PT-FI plan (based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar). | |||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions:a | ||||||||||||||||
Discount rate | 5 | % | 4.1 | % | 4.6 | % | ||||||||||
Expected return on plan assets | 7.5 | % | 7.5 | % | 7.5 | % | ||||||||||
Rate of compensation increase | 3.75 | % | 3.75 | % | 3.75 | % | ||||||||||
Service cost | $ | 30 | $ | 30 | $ | 27 | ||||||||||
Interest cost | 92 | 77 | 79 | |||||||||||||
Expected return on plan assets | (98 | ) | (95 | ) | (86 | ) | ||||||||||
Amortization of prior service credit | (1 | ) | — | (1 | ) | |||||||||||
Amortization of net actuarial losses | 28 | 38 | 33 | |||||||||||||
Net periodic benefit cost | $ | 51 | $ | 50 | $ | 52 | ||||||||||
a. | The assumptions shown relate only to the FMC plans. | |||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions: | ||||||||||||||||
Discount rate | 9 | % | 6.25 | % | 7 | % | ||||||||||
Expected return on plan assets | 7.75 | % | 7.5 | % | 9.25 | % | ||||||||||
Rate of compensation increase | 9 | % | 8 | % | 8 | % | ||||||||||
Service cost | $ | 22 | $ | 20 | $ | 17 | ||||||||||
Interest cost | 23 | 14 | 14 | |||||||||||||
Expected return on plan assets | (10 | ) | (10 | ) | (9 | ) | ||||||||||
Amortization of prior service cost | 3 | — | 1 | |||||||||||||
Amortization of net actuarial loss | 8 | 8 | 7 | |||||||||||||
Net periodic benefit cost | $ | 46 | $ | 32 | $ | 30 | ||||||||||
Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Before Taxes | After Taxes and Noncontrolling Interests | Before Taxes | After Taxes and Noncontrolling Interests | |||||||||||||
Prior service costs | $ | 28 | $ | 15 | $ | 32 | $ | 17 | ||||||||
Net actuarial loss | 749 | 456 | 542 | 326 | ||||||||||||
$ | 777 | $ | 471 | $ | 574 | $ | 343 | |||||||||
Actuarial losses in excess of 10 percent of the greater of the projected benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service period of the current active participants. The amount expected to be recognized in 2015 net periodic pension cost for actuarial losses is $52 million ($32 million net of tax and noncontrolling interests). | ||||||||||||||||
FCX does not expect to have any plan assets returned to it in 2015. Plan assets are classified within a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), then to significant observable inputs (Level 2) and the lowest priority to significant unobservable inputs (Level 3). | ||||||||||||||||
A summary of the fair value hierarchy for pension plan assets associated with the FCX plans follows: | ||||||||||||||||
Fair Value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Commingled/collective funds: | ||||||||||||||||
Global equity | $ | 487 | $ | — | $ | 487 | $ | — | ||||||||
Global fixed income securities | 106 | — | 106 | — | ||||||||||||
Fixed income securities | 99 | — | 99 | — | ||||||||||||
U.S. small-cap equity | 69 | — | 69 | — | ||||||||||||
U.S. real estate securities | 54 | — | 54 | — | ||||||||||||
Real estate property | 54 | — | — | 54 | ||||||||||||
Short-term investments | 8 | — | 8 | — | ||||||||||||
Open-ended mutual funds: | ||||||||||||||||
Emerging markets equity | 38 | 38 | — | — | ||||||||||||
Mutual funds: | ||||||||||||||||
Emerging markets equity | 25 | 25 | — | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds | 244 | — | 244 | — | ||||||||||||
Corporate bonds | 148 | — | 148 | — | ||||||||||||
Private equity investments | 39 | — | — | 39 | ||||||||||||
Other investments | 35 | — | 35 | — | ||||||||||||
Total investments | 1,406 | $ | 63 | $ | 1,250 | $ | 93 | |||||||||
Cash and receivables | 19 | |||||||||||||||
Payables | (9 | ) | ||||||||||||||
Total pension plan net assets | $ | 1,416 | ||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Commingled/collective funds: | ||||||||||||||||
Global equity | $ | 623 | $ | — | $ | 623 | $ | — | ||||||||
U.S. small-cap equity | 65 | — | 65 | — | ||||||||||||
Real estate property | 47 | — | — | 47 | ||||||||||||
U.S. real estate securities | 40 | — | 40 | — | ||||||||||||
Fixed income debt securities | 30 | — | 30 | — | ||||||||||||
Short-term investments | 5 | — | 5 | — | ||||||||||||
Open-ended mutual funds: | ||||||||||||||||
Government bonds | 43 | 43 | — | — | ||||||||||||
Emerging markets equity | 41 | 41 | — | — | ||||||||||||
Corporate bonds | 33 | 33 | — | — | ||||||||||||
Mutual funds: | ||||||||||||||||
Foreign bonds | 51 | 51 | — | — | ||||||||||||
Emerging markets equity | 26 | 26 | — | — | ||||||||||||
Emerging markets bond | 20 | 20 | — | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds | 198 | — | 198 | — | ||||||||||||
Corporate bonds | 52 | — | 52 | — | ||||||||||||
Private equity investments | 43 | — | — | 43 | ||||||||||||
Other investments | 29 | 1 | 28 | — | ||||||||||||
Total investments | 1,346 | $ | 215 | $ | 1,041 | $ | 90 | |||||||||
Cash and receivables | 18 | |||||||||||||||
Payables | (14 | ) | ||||||||||||||
Total pension plan net assets | $ | 1,350 | ||||||||||||||
Following is a description of the pension plan asset categories and the valuation techniques used to measure fair value. There have been no changes to the techniques used to measure fair value. | ||||||||||||||||
Commingled/collective funds are managed by several fund managers and are valued at the net asset value per unit of the fund. For most of these funds, the majority of the underlying assets are actively traded equity securities; however, the unit level is considered to be at the fund level. These funds (except the real estate property funds) require less than a month's notice for redemptions and, as such, are classified within Level 2 of the fair value hierarchy. Real estate property funds are valued at net realizable value using information from independent appraisal firms, who have knowledge and expertise about the current market values of real property in the same vicinity as the investments. Redemptions of the real estate property funds are allowed once per quarter, subject to available cash and, as such, are classified within Level 3 of the fair value hierarchy. | ||||||||||||||||
Open-ended mutual funds are managed by registered investment companies and are valued at the daily published net asset value of shares/units held. Because redemptions and purchases of shares/units occur at the net asset value without any adjustments to the published net asset value that is provided on an ongoing basis (active-market criteria are met), these investments are classified within Level 1 of the fair value hierarchy. | ||||||||||||||||
Mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy. | ||||||||||||||||
Fixed income investments include government and corporate bonds held directly by the Master Trust or through commingled funds. Fixed income securities are valued using a bid evaluation price or a mid-evaluation price and, as such, are classified within Level 2 of the fair value hierarchy. A bid evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs. | ||||||||||||||||
Private equity investments are valued at net realizable value using information from general partners and are classified within Level 3 of the fair value hierarchy because of the inherent restrictions on redemptions that may affect the ability to sell the investments at their net asset value in the near term. | ||||||||||||||||
A summary of changes in the fair value of FCX’s Level 3 pension plan assets for the years ended December 31 follows: | ||||||||||||||||
Real | Private | Total | ||||||||||||||
Estate | Equity | |||||||||||||||
Property | Investments | |||||||||||||||
Balance at January 1, 2013 | $ | 41 | $ | 45 | $ | 86 | ||||||||||
Actual return on plan assets: | ||||||||||||||||
Realized gains | 1 | — | 1 | |||||||||||||
Net unrealized gains (losses) related to | ||||||||||||||||
assets still held at the end of the year | 6 | (1 | ) | 5 | ||||||||||||
Purchases | — | 3 | 3 | |||||||||||||
Sales | (1 | ) | — | (1 | ) | |||||||||||
Settlements, net | — | (4 | ) | (4 | ) | |||||||||||
Balance at December 31, 2013 | 47 | 43 | 90 | |||||||||||||
Actual return on plan assets: | ||||||||||||||||
Realized gains | 2 | — | 2 | |||||||||||||
Net unrealized gains (losses) related to | ||||||||||||||||
assets still held at the end of the year | 6 | (1 | ) | 5 | ||||||||||||
Purchases | — | 1 | 1 | |||||||||||||
Sales | (1 | ) | — | (1 | ) | |||||||||||
Settlements, net | — | (4 | ) | (4 | ) | |||||||||||
Balance at December 31, 2014 | $ | 54 | $ | 39 | $ | 93 | ||||||||||
A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows: | ||||||||||||||||
Fair Value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Common stocks | $ | 43 | $ | 43 | $ | — | $ | — | ||||||||
Government bonds | 27 | 27 | — | — | ||||||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total investments | 84 | $ | 84 | $ | — | $ | — | |||||||||
Cash and receivablesa | 101 | |||||||||||||||
Total pension plan net assets | $ | 185 | ||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Common stocks | $ | 27 | $ | 27 | $ | — | $ | — | ||||||||
Government bonds | 23 | 23 | — | — | ||||||||||||
Mutual funds | 12 | 12 | — | — | ||||||||||||
Total investments | 62 | $ | 62 | $ | — | $ | — | |||||||||
Cash and receivablesa | 62 | |||||||||||||||
Total pension plan net assets | $ | 124 | ||||||||||||||
a. | Cash consists primarily of short-term time deposits. | |||||||||||||||
Following is a description of the valuation techniques used for pension plan assets measured at fair value associated with the PT-FI plan. There have been no changes to the techniques used to measure fair value. | ||||||||||||||||
Common stocks, government bonds and mutual funds are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy. | ||||||||||||||||
The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||||||
The expected benefit payments for FCX’s and PT-FI’s pension plans follow: | ||||||||||||||||
FCX | PT-FIa | |||||||||||||||
2015 | $ | 97 | $ | 20 | ||||||||||||
2016 | 155 | 9 | ||||||||||||||
2017 | 103 | 16 | ||||||||||||||
2018 | 107 | 20 | ||||||||||||||
2019 | 110 | 24 | ||||||||||||||
2020 through 2024 | 603 | 172 | ||||||||||||||
a. | Based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar. | |||||||||||||||
Postretirement and Other Benefits. FCX also provides postretirement medical and life insurance benefits for certain U.S. employees and, in some cases, employees of certain international subsidiaries. These postretirement benefits vary among plans, and many plans require contributions from retirees. The expected cost of providing such postretirement benefits is accrued during the years employees render service. | ||||||||||||||||
The benefit obligation (funded status) for the postretirement medical and life insurance benefit plans consisted of a current portion of $17 million (included in accounts payable and accrued liabilities) and a long-term portion of $162 million (included in other liabilities) at December 31, 2014, and a current portion of $19 million and a long-term portion of $163 million at December 31, 2013. The discount rate used to determine the benefit obligation for these plans, which was determined on the same basis as FCX's pension plans, was 3.60 percent at December 31, 2014, and 4.30 percent at December 31, 2013. Expected benefit payments for these plans total $17 million for 2015, $16 million for 2016, $15 million for 2017, $14 million for 2018, $15 million for 2019 and $64 million for 2020 through 2024. | ||||||||||||||||
The net periodic benefit cost charged to operations for FCX's postretirement benefits totaled $7 million in 2014, $9 million in 2013 and $10 million in 2012 (primarily for interest costs). The discount rate used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s postretirement benefits was 4.30 percent in 2014, 3.50 percent in 2013 and 4.20 percent in 2012. The medical-care trend rates assumed the first year trend rate was 7.50 percent at December 31, 2014, which declines over the next 15 years with an ultimate trend rate of 4.25 percent. | ||||||||||||||||
FCX has a number of postemployment plans covering severance, long-term disability income, continuation of health and life insurance coverage for disabled employees or other welfare benefits. The accumulated postemployment benefit consisted of a current portion of $6 million (included in accounts payable and accrued liabilities) and a long-term portion of $38 million (included in other liabilities) at December 31, 2014, and a current portion of $9 million and a long-term portion of $75 million at December 31, 2013. | ||||||||||||||||
FCX also sponsors savings plans for the majority of its U.S. employees. The plans allow employees to contribute a portion of their pre-tax income in accordance with specified guidelines. These savings plans are principally qualified 401(k) plans for all U.S. salaried and non-bargained hourly employees. In these plans, participants exercise control and direct the investment of their contributions and account balances among various investment options. FCX contributes to these plans at varying rates and matches a percentage of employee pre-tax deferral contributions up to certain limits, which vary by plan. For employees whose eligible compensation exceeds certain levels, FCX provides an unfunded defined contribution plan, which had a liability balance of $69 million at December 31, 2014, and $65 million at December 31, 2013. | ||||||||||||||||
The costs charged to operations for employee savings plans totaled $79 million in 2014 (of which $11 million was capitalized to oil and gas properties), $66 million in 2013 (of which $5 million was capitalized to oil and gas properties) and $43 million in 2012. FCX has other employee benefit plans, certain of which are related to FCX’s financial results, which are recognized in operating costs. |
STOCKHOLDERS_EQUITY_AND_STOCKB
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Stockholders' Equity and Stock-Based Compensation | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | |||||||||||||||
FCX’s authorized shares of capital stock total 1.85 billion shares, consisting of 1.8 billion shares of common stock and 50 million shares of preferred stock. | ||||||||||||||||
Common Stock. At December 31, 2014, 23.7 million shares remain available for purchase under FCX's open-market share purchase program, which does not have an expiration date. There have been no purchases under this program since 2008. The timing of future purchases of FCX’s common stock is dependent on many factors, including FCX’s operating results, cash flows and financial position; copper, molybdenum, gold, crude oil and natural gas prices; the price of FCX’s common stock; and general economic and market conditions. | ||||||||||||||||
FCX’s Board of Directors (the Board) authorized an increase in the cash dividend on FCX’s common stock in February 2012 to the current annual rate of $1.25 per share. The Board declared a supplemental cash dividend of $1.00 per share, which was paid in July 2013. On December 19, 2014, the Board declared a regular quarterly dividend of $0.3125 per share, which was paid on February 2, 2015, to common shareholders of record at the close of business on January 15, 2015. The declaration of dividends is at the discretion of the Board and will depend on FCX's financial results, cash requirements, future prospects and other factors deemed relevant by the Board. | ||||||||||||||||
Accumulated Other Comprehensive Loss. A summary of changes in the balances of each component of accumulated other comprehensive loss, net of tax follows: | ||||||||||||||||
Unrealized Losses on Securities | Translation Adjustment | Defined Benefit Plans | Total | |||||||||||||
Balance at January 1, 2012 | $ | (4 | ) | $ | 6 | $ | (467 | ) | $ | (465 | ) | |||||
Amounts arising during the perioda,b,c,d | — | (1 | ) | (66 | ) | (67 | ) | |||||||||
Amounts reclassifiede | — | — | 26 | 26 | ||||||||||||
Balance at December 31, 2012 | (4 | ) | 5 | (507 | ) | (506 | ) | |||||||||
Amounts arising during the perioda,b,c | (1 | ) | — | 67 | 66 | |||||||||||
Amounts reclassifiede | — | 5 | 30 | 35 | ||||||||||||
Balance at December 31, 2013 | (5 | ) | 10 | (410 | ) | (405 | ) | |||||||||
Amounts arising during the perioda,b,c,d | (1 | ) | — | (162 | ) | (163 | ) | |||||||||
Amounts reclassifiede | — | — | 24 | 24 | ||||||||||||
Balance at December 31, 2014 | $ | (6 | ) | $ | 10 | $ | (548 | ) | $ | (544 | ) | |||||
a. | Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(106) million for 2012, $126 million for 2013 and $(252) million for 2014. The year 2013 also included $33 million for prior service costs. | |||||||||||||||
b. | Includes foreign exchange gains (losses), net of noncontrolling interest, totaling $3 million for 2012, $11 million for 2013 and $1 million for 2014. | |||||||||||||||
c. | Includes tax benefits (provision) totaling $39 million for 2012, $(37) million for 2013 and $94 million for 2014. | |||||||||||||||
d. | Includes adjustments to deferred tax valuation allowance of $1 million for 2012 and $5 million for 2014. | |||||||||||||||
e. | Includes amortization primarily related to actuarial losses that were net of taxes of $15 million for 2012, $17 million for 2013 and $14 million for 2014. | |||||||||||||||
Stock Award Plans. FCX currently has awards outstanding under various stock-based compensation plans. The 2006 Stock Incentive Plan (the 2006 Plan), which was stockholder approved, provides for the issuance of stock options, SARs, restricted stock, RSUs and other stock-based awards for up to 74 million common shares. FCX’s stockholders approved amendments to the plan in 2007 primarily to increase the number of shares available for grants, and in 2010, to permit grants to outside directors. As of December 31, 2014, 19.6 million shares were available for grant under the 2006 Plan. | ||||||||||||||||
During 2014, the Board approved an incentive plan that provides for the issuance of cash-settled RSUs to employees who are not executive officers. | ||||||||||||||||
In connection with the restructuring of an executive employment arrangement, a special retention award of one million RSUs was granted in December 2013. The RSUs are fully vested and the related shares of common stock will be delivered to the executive upon separation of service, along with a cash payment for accumulated dividends. With respect to stock options previously granted to this executive, such awards became fully vested. With respect to performance-based awards previously granted to this executive, the service requirements are considered to have been satisfied, and the vesting of any such awards shall continue to be contingent upon the achievement of all performance conditions set forth in the award agreements. In connection with the restructuring, FCX recorded a $37 million charge to selling, general and administrative expenses in 2013. | ||||||||||||||||
Stock-Based Compensation Cost. Compensation cost charged against earnings for stock-based awards for the years ended December 31 follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Selling, general and administrative expenses | $ | 79 | $ | 145 | $ | 77 | ||||||||||
Production and delivery | 28 | 28 | 23 | |||||||||||||
Capitalized costs | 23 | 13 | — | |||||||||||||
Total stock-based compensation | 130 | 186 | 100 | |||||||||||||
Less: capitalized costs | (23 | ) | (13 | ) | — | |||||||||||
Tax benefit and noncontrolling interests' share | (42 | ) | (66 | ) | (39 | ) | ||||||||||
Impact on net income | $ | 65 | $ | 107 | $ | 61 | ||||||||||
Stock Options and SARs. Stock options granted under the plans generally expire 10 years after the date of grant and vest in 25 percent annual increments beginning one year from the date of grant. The award agreements provide that participants will receive the following year’s vesting after retirement. Therefore, on the date of grant, FCX accelerates one year of amortization for retirement-eligible employees. Stock options granted prior to February 2012 provide for accelerated vesting if there is a change of control (as defined in the award agreements). Stock options granted after that date provide for accelerated vesting only upon certain qualifying termination of employment within one year following a change of control. SARs generally expire within five years after the date of grant and vest in one-third annual increments beginning one year from the date of grant. SARs are similar to stock options, but are settled in cash rather than in shares of common stock and are classified as liability awards. | ||||||||||||||||
A summary of options and SARs outstanding as of December 31, 2014, including 1,413,153 SARs, and activity during the year ended December 31, 2014, follows: | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
Options and SARs | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Per Share | Contractual | |||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 45,130,661 | $ | 35.39 | |||||||||||||
Granted | 3,276,000 | 31.01 | ||||||||||||||
Exercised | (1,950,130 | ) | 21.23 | |||||||||||||
Expired/Forfeited | (526,792 | ) | 37.51 | |||||||||||||
Balance at December 31 | 45,929,739 | 35.65 | 5.1 | $ | 38 | |||||||||||
Vested and exercisable at December 31 | 35,062,748 | $ | 35.15 | 4.2 | $ | 38 | ||||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The fair value of each SAR is determined using the Black-Scholes-Merton option valuation model and remeasured at each reporting date until the date of settlement. Expected volatility is based on implied volatilities from traded options on FCX’s common stock and historical volatility of FCX’s common stock. FCX uses historical data to estimate future option and SARs exercises, forfeitures and expected life. When appropriate, separate groups of employees who have similar historical exercise behavior are considered separately for valuation purposes. The expected dividend rate is calculated using the annual dividend (excluding supplemental dividends) at the date of grant. The risk-free interest rate is based on Federal Reserve rates in effect for bonds with maturity dates equal to the expected term of the option or SAR. | ||||||||||||||||
Information related to stock options during the years ended December 31 follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions used to value stock option awards: | ||||||||||||||||
Expected volatility | 36.6 | % | 48.9 | % | 52 | % | ||||||||||
Expected life of options (in years) | 4.92 | 4.66 | 4.54 | |||||||||||||
Expected dividend rate | 3.5 | % | 3.3 | % | 3.1 | % | ||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 | % | ||||||||||
Weighted-average grant date fair value (per share) | $ | 7.43 | $ | 10.98 | $ | 15.6 | ||||||||||
Intrinsic value of options exercised | $ | 17 | $ | 10 | $ | 34 | ||||||||||
Fair value of options vested | $ | 76 | $ | 101 | $ | 77 | ||||||||||
As of December 31, 2014, FCX had $48 million of total unrecognized compensation cost related to unvested stock options expected to be recognized over a weighted-average period of 1.4 years. | ||||||||||||||||
The assumptions used to value SARs as of December 31, 2014, ranged from 30.2 percent to 32.4 percent for expected volatility; one to three years for expected life; 0.2 percent to 1.0 percent for expected risk-free interest rate; and an expected dividend rate of 4.3 percent. The weighted-average grant-date fair value of SARs granted was $7.00 for the period from June 1, 2013, to December 31, 2013. The total intrinsic value of SARs exercised was $5 million during 2014 and $3 million during 2013. As of December 31, 2014, FCX had a minimal amount of unrecognized compensation cost related to unvested SARs expected to be recognized. As of December 31, 2014, FCX had $2 million associated with SARs included in accounts payable and accrued liabilities. | ||||||||||||||||
Stock-Settled PSUs and RSUs. Beginning in 2014, FCX's executive officers were granted PSUs that vest after three years. The final number of shares to be issued to the executive officers (i.e., the target shares) will be based on FCX’s total shareholder return compared to the total shareholder return of a peer group. The total grant date target shares related to the 2014 PSU grants were 344 thousand, of which the executive officers will earn from 0 percent to 200 percent . | ||||||||||||||||
Prior to 2014, a portion of each executive officer's annual bonus was to be paid in performance-based RSUs. The performance-based RSUs were a component of an annual incentive award pool that was calculated as a percentage of FCX’s consolidated operating cash flows adjusted for changes in working capital and other tax payments for the preceding year. Grants of these performance-based RSUs vest after three years, subject to FCX attaining a five-year average return on investment (a performance condition defined in the award agreement) of at least six percent and subject to a 20 percent reduction if FCX performs below a group of its peers as defined in the award agreement. | ||||||||||||||||
All of FCX's executive officers are retirement eligible, and for the 2014 awards, FCX charged the cost of these awards to expense in the year of grant because they are non-forfeitable. For the performance-based RSUs, the cost was charged to expense in the year the related operating cash flows were generated, as performance of services was only required in the calendar year preceding the date of grant. | ||||||||||||||||
In February 2014, FCX granted RSUs to certain employees that vest over a period of three years, and in February 2013, FCX granted RSUs to certain employees that cliff-vest at the end of three years. | ||||||||||||||||
FCX also grants other RSUs that vest over a period of four years to its directors. The fair value of the RSUs is amortized over the four-year vesting period or the period until the director becomes retirement eligible, whichever is shorter. Upon a director’s retirement, all of their unvested RSUs immediately vest. For retirement-eligible directors, the fair value of RSUs is recognized in earnings on the date of grant. | ||||||||||||||||
The award agreements provide for accelerated vesting of all RSUs held by directors if there is a change of control (as defined in the award agreements) and for accelerated vesting of all RSUs held by employees if they experience a qualifying termination within one year following a change of control. | ||||||||||||||||
Dividends on PSUs, and dividends and interest on RSUs accrue and are paid if the award vests. A summary of outstanding stock-settled PSUs and RSUs as of December 31, 2014, and activity during the year ended December 31, 2014, follows: | ||||||||||||||||
Number of Awards | Weighted-Average Grant-Date Fair Value | Weighted- | Aggregate | |||||||||||||
Average | Intrinsic | |||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 4,255,476 | $ | 35.13 | |||||||||||||
Granted | 2,161,700 | 31.17 | ||||||||||||||
Vested | (436,610 | ) | 37.93 | |||||||||||||
Forfeited | (175,421 | ) | 31.46 | |||||||||||||
Balance at December 31 | 5,805,145 | 33.57 | 4.7 | $ | 128 | |||||||||||
The total fair value of stock-settled PSUs and RSUs granted was $67 million during 2014, $125 million during 2013 and $14 million during 2012. The total intrinsic value of RSUs vested was $15 million during 2014, $12 million during 2013 and $28 million during 2012. As of December 31, 2014, FCX had $41 million of total unrecognized compensation cost related to unvested stock-settled RSUs expected to be recognized over 1.6 years. | ||||||||||||||||
Cash-Settled RSUs. Cash-settled RSUs are similar to stock-settled RSUs, but are settled in cash rather than in shares of common stock and are classified as liability awards. These cash-settled RSUs generally vest over periods ranging from three to five years of service. The award agreements for cash-settled RSUs provide for accelerated vesting upon certain qualifying termination of employment within one year following a change of control (as defined in the award agreements). The fair value of these awards is remeasured each reporting period until the vesting dates. | ||||||||||||||||
Dividends and interest on cash-settled RSUs accrue and are paid if the award vests. A summary of outstanding cash-settled RSUs as of December 31, 2014, and activity during the year ended December 31, 2014, follows: | ||||||||||||||||
Number of Cash-Settled RSUs | Weighted-Average Grant-Date Fair Value | Weighted- | Aggregate | |||||||||||||
Average | Intrinsic | |||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 2,219,812 | $ | 31.05 | |||||||||||||
Granted | 2,204,986 | 30.95 | ||||||||||||||
Vested | (544,048 | ) | 31.05 | |||||||||||||
Forfeited | (293,186 | ) | 31.01 | |||||||||||||
Balance at December 31 | 3,587,564 | 30.99 | 1.3 | $ | 84 | |||||||||||
The total fair value of cash-settled RSUs granted was $68 million during 2014 and $70 million during 2013. The intrinsic value of cash-settled RSUs vested was $18 million during 2014. The accrued liability associated with cash-settled RSUs consisted of a current portion of $28 million (included in accounts payable and accrued liabilities) and a long-term portion of $29 million (included in other liabilities) at December 31, 2014, and a current portion of $17 million and a long-term portion of $19 million at December 31, 2013. | ||||||||||||||||
Other Information. The following table includes amounts related to exercises of stock options and vesting of RSUs during the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
FCX shares tendered to pay the exercise price | ||||||||||||||||
and/or the minimum required taxesa | 474,480 | 3,294,624 | 515,558 | |||||||||||||
Cash received from stock option exercises | $ | 12 | $ | 8 | $ | 15 | ||||||||||
Actual tax benefit realized for tax deductions | $ | 16 | $ | 8 | $ | 16 | ||||||||||
Amounts FCX paid for employee taxes | $ | 8 | $ | 105 | $ | 16 | ||||||||||
a. | Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender existing FCX shares to FCX to pay the exercise price and/or the minimum required taxes. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||||||||||
Geographic sources of (losses) income before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | (2,997 | ) | $ | 1,104 | $ | 1,539 | ||||||||||||||
Foreign | 2,573 | 3,809 | 3,948 | ||||||||||||||||||
Total | $ | (424 | ) | $ | 4,913 | $ | 5,487 | ||||||||||||||
With the exception of TFM, income taxes are provided on the earnings of FCX’s material foreign subsidiaries under the assumption that these earnings will be distributed. FCX has determined that TFM's undistributed earnings are reinvested indefinitely and have been allocated toward specifically identifiable needs of the local operations, including, but not limited to, existing liabilities and potential expansions of production capacity. FCX has not provided deferred income taxes for other differences between the book and tax carrying amounts of its investments in material foreign subsidiaries as FCX considers its ownership positions to be permanent in duration, and quantification of the related deferred tax liability is not practicable. | |||||||||||||||||||||
FCX’s provision for income taxes for the years ended December 31 consists of the following: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current income taxes: | |||||||||||||||||||||
Federal | $ | 281 | $ | 203 | $ | 238 | |||||||||||||||
State | 35 | 9 | 7 | ||||||||||||||||||
Foreign | 1,128 | 1,081 | 1,002 | ||||||||||||||||||
Total current | 1,444 | 1,293 | 1,247 | ||||||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||||||||
Federal | (606 | ) | 234 | 87 | |||||||||||||||||
State | (214 | ) | (35 | ) | 18 | ||||||||||||||||
Foreign | 33 | 346 | 363 | ||||||||||||||||||
Total deferred | (787 | ) | 545 | 468 | |||||||||||||||||
Adjustments | — | (199 | ) | a | (205 | ) | b,c | ||||||||||||||
Federal operating loss carryforwards | (333 | ) | d | (164 | ) | d | — | ||||||||||||||
Provision for income taxes | $ | 324 | $ | 1,475 | $ | 1,510 | |||||||||||||||
a. | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | ||||||||||||||||||||
b. | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. | ||||||||||||||||||||
c. | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | ||||||||||||||||||||
d. | Benefit from the use of federal operating loss carryforwards acquired as part of the oil and gas acquisitions. | ||||||||||||||||||||
A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||
U.S. federal statutory tax rate | $ | (149 | ) | 35 | % | $ | 1,720 | 35 | % | $ | 1,920 | 35 | % | ||||||||
Foreign tax credit limitation | 167 | (39 | ) | 117 | 2 | 110 | 2 | ||||||||||||||
Percentage depletion | (263 | ) | a | 62 | (223 | ) | (5 | ) | (263 | ) | (5 | ) | |||||||||
Withholding and other impacts on | |||||||||||||||||||||
foreign earnings | 161 | (38 | ) | 306 | 7 | (17 | ) | — | |||||||||||||
Effect of foreign rates different than the U.S. | |||||||||||||||||||||
federal statutory rate | (135 | ) | 32 | (223 | ) | (5 | ) | (204 | ) | (4 | ) | ||||||||||
Valuation allowance on minimum | |||||||||||||||||||||
tax credits | — | — | (190 | ) | (4 | ) | (9 | ) | — | ||||||||||||
Goodwill impairment | 601 | (142 | ) | — | — | — | — | ||||||||||||||
Goodwill transferred to full cost pool | 77 | (18 | ) | — | — | — | — | ||||||||||||||
State income taxes | (115 | ) | 27 | (43 | ) | — | 17 | — | |||||||||||||
Other items, net | (20 | ) | 5 | 11 | — | (44 | ) | — | |||||||||||||
Provision for income taxes | $ | 324 | b,c | (76 | )% | $ | 1,475 | d | 30 | % | $ | 1,510 | e | 28 | % | ||||||
a. | Includes a net charge of $16 million related to a change in U.S. federal income tax law. | ||||||||||||||||||||
b. | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | ||||||||||||||||||||
c. | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | ||||||||||||||||||||
d. | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | ||||||||||||||||||||
e. | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | ||||||||||||||||||||
FCX paid federal, state, local and foreign income taxes totaling $1.5 billion in 2014, $1.3 billion in 2013 and $1.8 billion in 2012. FCX received refunds of federal, state, local and foreign income taxes of $257 million in 2014, $270 million in 2013 and $69 million in 2012. | |||||||||||||||||||||
The components of deferred taxes follow: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Foreign tax credits | $ | 2,306 | $ | 2,144 | |||||||||||||||||
Accrued expenses | 1,047 | 1,098 | |||||||||||||||||||
Minimum tax credits | 737 | 603 | |||||||||||||||||||
Net operating loss carryforwards | 590 | 925 | |||||||||||||||||||
Employee benefit plans | 422 | 443 | |||||||||||||||||||
Other | 734 | 557 | |||||||||||||||||||
Deferred tax assets | 5,836 | 5,770 | |||||||||||||||||||
Valuation allowances | (2,434 | ) | (2,487 | ) | |||||||||||||||||
Net deferred tax assets | 3,402 | 3,283 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Property, plant, equipment and mining development costs | (5,331 | ) | (4,887 | ) | |||||||||||||||||
Oil and gas properties | (3,392 | ) | (4,708 | ) | |||||||||||||||||
Undistributed earnings | (807 | ) | (936 | ) | |||||||||||||||||
Other | (185 | ) | (34 | ) | |||||||||||||||||
Total deferred tax liabilities | (9,715 | ) | (10,565 | ) | |||||||||||||||||
Net deferred tax liabilities | $ | (6,313 | ) | $ | (7,282 | ) | |||||||||||||||
At December 31, 2014, FCX had U.S. foreign tax credit carryforwards of $2.3 billion that will expire between 2015 and 2024, and U.S. minimum tax credit carryforwards of $737 million that can be carried forward indefinitely, but may be used only to the extent that regular tax exceeds the alternative minimum tax in any given year. | |||||||||||||||||||||
At December 31, 2014, FCX had (i) U.S. state net operating loss carryforwards of $2.4 billion that expire between 2015 and 2034, (ii) Spanish net operating loss carryforwards of $623 million that expire between 2015 and 2032, and (iii) U.S. federal net operating loss carryforwards of $800 million that expire between 2030 and 2034. | |||||||||||||||||||||
On the basis of available information at December 31, 2014, including positive and negative evidence, FCX has provided valuation allowances for certain of its deferred tax assets where it believes it is more likely than not that some portion or all of such assets will not be realized. Valuation allowances totaled $2.4 billion at December 31, 2014, and covered a portion of FCX's U.S. foreign tax credit carryforwards, foreign net operating loss carryforwards, U.S. state net operating loss carryforwards and U.S. state deferred tax assets. Valuation allowances totaled $2.5 billion at December 31, 2013, and covered all of FCX's U.S. foreign tax credit carryforwards, and a portion of its foreign net operating loss carryforwards, U.S. state net operating loss carryforwards, U.S. state deferred tax assets and U.S. capital loss carryforwards. | |||||||||||||||||||||
The $2.4 billion valuation allowance at December 31, 2014, is primarily related to FCX’s U.S. foreign tax credits. FCX has operations in tax jurisdictions where statutory income taxes and withholding taxes combine to create effective tax rates in excess of the U.S. federal income tax liability that is due upon repatriation of foreign earnings. As a result, FCX continues to generate foreign tax credits for which no benefit is expected to be realized. In addition, any foreign income taxes currently accrued or paid on unremitted foreign earnings may result in additional future foreign tax credits for which no benefit is expected to be realized upon repatriation of the related earnings. A full valuation allowance will continue to be carried on these excess U.S. foreign tax credit carryforwards until such time that FCX believes it has a prudent and feasible means of securing the benefit of U.S. foreign tax credit carryforwards that can be implemented. | |||||||||||||||||||||
The $53 million net decrease in the valuation allowance during 2014 relates primarily to increased utilization of U.S. capital loss carryforwards in the current year, and U.S. foreign tax credits and U.S. state net operating losses during the carryforward period. | |||||||||||||||||||||
World market prices for commodities have fluctuated historically. At December 31, 2014, market prices for copper, gold, molybdenum and oil were below their twelve-month averages. Future market prices at or below 2014 year-end prices may result in valuation allowances provided on additional deferred tax assets, including U.S. alternative minimum tax credits and net operating loss carryforwards. | |||||||||||||||||||||
In 2010, the Chilean legislature approved an increase in mining royalty taxes to help fund earthquake reconstruction activities, education and health programs. Mining royalty taxes at FCX’s El Abra and Candelaria mines were stabilized through 2017 at a rate of 4 percent. However, under the legislation, FCX opted to transfer from its stabilized rate to the sliding scale of 4 to 9 percent for the years 2011 and 2012 and returned to its 4 percent rate for the years 2013 through 2017. Beginning in 2018 and through 2023, rates will move to a sliding scale of 5 to 14 percent (depending on a defined operational margin). | |||||||||||||||||||||
In September 2014, the Chilean legislature approved a tax reform package implementing a dual tax system. As currently applied, FCX will be subject to the "Partially-Integrated System." Under the previous rules, FCX’s share of income from Chilean operations was subject to an effective 35 percent tax rate allocated between income taxes and dividend withholding taxes. Under the new Partially-Integrated System, FCX’s share of income from Chilean operations will be subject to progressively increasing effective tax rates of 35 percent in 2014 through 2016, 44 percent in 2017 and 44.5 percent in 2018 and thereafter. | |||||||||||||||||||||
In December 2014, the Peruvian parliament passed tax legislation intended to stimulate the economy. Under the legislation, the corporate income tax rate will progressively decrease from 30 percent in 2014 to 26 percent in 2019 and thereafter. In addition, the dividend tax rate on distributions will progressively increase from 4.1 percent in 2014 to 9.3 percent in 2019 and thereafter. Cerro Verde's current mining stability agreement subjects FCX to a stable income tax rate of 32 percent through the expiration of the agreement on December 31, 2028. The tax rate on dividend distributions is not stabilized by the agreement. | |||||||||||||||||||||
FCX accounts for uncertain income tax positions using a threshold and measurement criteria for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FCX’s policy associated with uncertain tax positions is to record accrued interest in interest expense and accrued penalties in other income and expenses rather than in the provision for income taxes. | |||||||||||||||||||||
A summary of the activities associated with FCX’s reserve for unrecognized tax benefits, interest and penalties follows: | |||||||||||||||||||||
Unrecognized | Interest | Penalties | |||||||||||||||||||
Tax Benefits | |||||||||||||||||||||
Balance at January 1, 2013 | $ | 138 | $ | 31 | $ | — | |||||||||||||||
Additions: | |||||||||||||||||||||
Prior year tax positions | 18 | * | * | ||||||||||||||||||
Current year tax positions | 14 | * | * | ||||||||||||||||||
Acquisition of PXP | 5 | * | * | ||||||||||||||||||
Interest and penalties | — | 7 | — | ||||||||||||||||||
Decreases: | |||||||||||||||||||||
Prior year tax positions | (37 | ) | * | * | |||||||||||||||||
Current year tax positions | — | * | * | ||||||||||||||||||
Settlements with tax authorities | — | * | * | ||||||||||||||||||
Lapse of statute of limitations | (28 | ) | * | * | |||||||||||||||||
Interest and penalties | — | (17 | ) | — | |||||||||||||||||
Balance at December 31, 2013 | 110 | 21 | — | ||||||||||||||||||
Additions: | |||||||||||||||||||||
Prior year tax positions | 4 | * | * | ||||||||||||||||||
Current year tax positions | 11 | * | * | ||||||||||||||||||
Interest and penalties | — | 1 | — | ||||||||||||||||||
Decreases: | |||||||||||||||||||||
Prior year tax positions | (12 | ) | * | * | |||||||||||||||||
Current year tax positions | — | * | * | ||||||||||||||||||
Settlements with tax authorities | (9 | ) | * | * | |||||||||||||||||
Lapse of statute of limitations | — | * | * | ||||||||||||||||||
Interest and penalties | — | (7 | ) | — | |||||||||||||||||
Balance at December 31, 2014 | $ | 104 | $ | 15 | $ | — | |||||||||||||||
* Amounts not allocated. | |||||||||||||||||||||
The reserve for unrecognized tax benefits of $104 million at December 31, 2014, included $97 million ($55 million net of income tax benefits) that, if recognized, would reduce FCX’s provision for income taxes. | |||||||||||||||||||||
Changes to the reserve for unrecognized tax benefits associated with current year tax positions were primarily related to uncertainties associated with FCX's cost recovery methods and deductibility of social welfare payments. Changes in the reserve for unrecognized tax benefits associated with prior year tax positions were primarily related to uncertainties associated with cost recovery methods and deductibility of costs allocated to foreign operations. Changes to the reserve for unrecognized tax benefits associated with the lapse of statute of limitations were primarily related to benefits received from stock-based compensation. There continues to be uncertainty related to the timing of settlements with taxing authorities, but if additional settlements are agreed upon during the year 2015, FCX could experience a change in its reserve for unrecognized tax benefits. | |||||||||||||||||||||
FCX or its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. 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 | 2007-2012 | 2013-2014 | |||||||||||||||||||
Indonesia | 2006-2008, 2011-2012 | 2010, 2013-2014 | |||||||||||||||||||
Peru | 2010 | 2011-2014 | |||||||||||||||||||
Chile | 2012-2013 | 2014 | |||||||||||||||||||
DRC | 2013 | 2012, 2014 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Contingencies [Abstract] | ||||||||||||||
Contingencies | CONTINGENCIES | |||||||||||||
Environmental. FCX subsidiaries are subject to various national, state and local environmental laws and regulations that govern emissions of air pollutants; discharges of water pollutants; and generation, handling, storage and disposal of hazardous substances, hazardous wastes and other toxic materials, including remediation, restoration and reclamation of environmental contamination. FCX subsidiaries that operate in the U.S. also are subject to potential liabilities arising under CERCLA and similar state laws that impose responsibility on current and previous owners and operators of a facility for the remediation of hazardous substances released from the facility into the environment, including damages to natural resources, irrespective of when the damage to the environment occurred or who caused it. This remediation liability also extends to persons who arranged for the disposal of hazardous substances or transported the hazardous substances to a disposal site selected by the transporter. This liability often is shared on a joint and several basis, meaning that each responsible party is fully responsible for the remediation, although in many cases some or all of the other historical owners or operators no longer exist, do not have the financial ability to respond or cannot be found. As a result, because of FCX’s acquisition of FMC in 2007, many of the subsidiary companies FCX now owns are responsible for a wide variety of environmental remediation projects throughout the U.S., and FCX expects to spend substantial sums annually for many years to address those remediation issues. Certain FCX subsidiaries have been advised by the U.S. Environmental Protection Agency (EPA), the Department of the Interior, the Department of Agriculture and various state agencies that, under CERCLA or similar state laws and regulations, they may be liable for costs of responding to environmental conditions at a number of sites that have been or are being investigated to determine whether releases of hazardous substances have occurred and, if so, to develop and implement remedial actions to address environmental concerns. FCX is also subject to claims where the release of hazardous substances is alleged to have damaged natural resources (NRD). As of December 31, 2014, FCX had more than 100 active remediation projects, including NRD claims, in 27 U.S. states. | ||||||||||||||
A summary of changes in environmental obligations for the years ended December 31 follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 1,167 | $ | 1,222 | $ | 1,453 | ||||||||
Accretion expensea | 77 | 79 | 80 | |||||||||||
Additions | 16 | 73 | 70 | |||||||||||
Reductionsb | (6 | ) | (77 | ) | (182 | ) | ||||||||
Spending | (80 | ) | (130 | ) | (199 | ) | ||||||||
Balance at end of year | 1,174 | 1,167 | 1,222 | |||||||||||
Less current portion | (105 | ) | (121 | ) | (186 | ) | ||||||||
Long-term portion | $ | 1,069 | $ | 1,046 | $ | 1,036 | ||||||||
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. | |||||||||||||
Estimated environmental cash payments (on an undiscounted and unescalated basis) total $105 million in 2015, $151 million in 2016, $120 million in 2017, $108 million in 2018, $79 million in 2019 and $1.8 billion thereafter. The amount and timing of these estimated payments will change as a result of changes in regulatory requirements, changes in scope and timing of remediation activities, the settlement of environmental matters and as actual spending occurs. | ||||||||||||||
In 2007, FCX recorded FMC’s environmental obligations at fair value on the acquisition date in accordance with business combination accounting guidance. Significant adjustments to these obligations may occur in the future. New environmental obligations will be recorded as described in Note 1 under “Environmental Expenditures.” At December 31, 2014, FCX’s environmental obligations totaled $1.2 billion, including $1.1 billion recorded on a discounted basis for those obligations assumed in the FMC acquisition at fair value. On an undiscounted and unescalated basis, these obligations totaled $2.4 billion. FCX estimates it is reasonably possible that these obligations could range between $2.0 billion and $2.6 billion on an undiscounted and unescalated basis. | ||||||||||||||
At December 31, 2014, the most significant environmental obligations were associated with the Pinal Creek site in Arizona; the Newtown Creek site in New York City; historical smelter sites principally located in Arizona, Kansas, New Jersey, Oklahoma and Pennsylvania; and uranium mining sites in the western U.S. The recorded environmental obligations for these sites totaled $1.0 billion at December 31, 2014. FCX may also be subject to litigation brought by private parties, regulators and local governmental authorities related to these historical sites. A discussion of these sites follows. | ||||||||||||||
Pinal Creek. The Pinal Creek site was listed under the Arizona Department of Environmental Quality’s (ADEQ) Water Quality Assurance Revolving Fund program in 1989 for contamination in the shallow alluvial aquifers within the Pinal Creek drainage near Miami, Arizona. Since that time, environmental remediation was performed by members of the Pinal Creek Group (PCG), consisting of FMC Miami, Inc. (Miami), a wholly owned subsidiary of FCX, and two other companies. Pursuant to a 2010 settlement agreement, Miami agreed to take full responsibility for future groundwater remediation at the Pinal Creek site, with limited exceptions. Remediation work consisting of both capping (earthwork) and groundwater extraction and treatment continues at this time and is expected to continue for many years in the future. | ||||||||||||||
Newtown Creek. From the 1930s until 1964, Phelps Dodge Refining Corporation (PDRC), a subsidiary of FCX, operated a copper smelter, and from the 1930s until 1984, it operated a copper refinery on the banks of Newtown Creek (the creek), which is a 3.5-mile-long waterway that forms part of the boundary between Brooklyn and Queens in New York City. Heavy industrialization along the banks of the creek and discharges from the City of New York’s sewer system over more than a century resulted in significant environmental contamination of the waterway. In 2010, EPA notified PDRC, four other companies and the City of New York that EPA considers them to be PRPs under CERCLA. The notified parties began working with EPA to identify other PRPs, and EPA proposed that the notified parties perform a Remedial Investigation/Feasibility Study (RI/FS) at their expense and reimburse EPA for its oversight costs. EPA is not expected to propose a remedy until after a RI/FS is completed. Additionally, in 2010, EPA designated the creek as a Superfund site, and in 2011, PDRC and five other parties entered an Administrative Order on Consent (AOC) to perform the RI/FS to assess the nature and extent of environmental contamination in the creek and identify potential remedial options. The parties' RI/FS work under the AOC and their identification of other PRPs are ongoing and expected to take several years to complete. The actual costs of fulfilling this remedial obligation and the allocation of costs among PRPs are uncertain and subject to change based on the results of the RI/FS, the remediation remedy ultimately selected by EPA and related allocation determinations. Depending on the overall cost and the portion allocated to PDRC, that share could be material to FCX. | ||||||||||||||
Historical Smelter Sites. FCX subsidiaries and their predecessors at various times owned or operated copper and zinc smelters in states including Arizona, Kansas, New Jersey, Oklahoma and Pennsylvania. For some of these smelter sites, certain FCX subsidiaries have been advised by EPA or state agencies that they may be liable for costs of investigating and, if appropriate, remediating environmental conditions associated with the smelters. At other sites, certain FCX subsidiaries have entered into state voluntary remediation programs to investigate and, if appropriate, remediate onsite and offsite conditions associated with the smelters. The historical smelter sites are in various stages of assessment and remediation. At some of these sites, disputes with local residents and elected officials regarding the health effects of alleged contamination or the effectiveness of remediation efforts have resulted in litigation of various types, and similar litigation at other sites is possible. | ||||||||||||||
Uranium Mining Sites. During a period between 1940 and the early 1970s, certain FCX subsidiaries and their predecessors were involved in uranium exploration and mining in the western U.S., primarily on federal and tribal lands in the Four Corners region of the southwest. Similar exploration and mining activities by other companies have also caused environmental impacts warranting remediation, and EPA and local authorities are currently evaluating the need for significant cleanup activities in the region. To date, FCX has undertaken remediation at a limited number of sites associated with these predecessor entities. During 2014, FCX initiated reconnaissance work at a limited number of historic mining sites on federal lands in the Four Corners region and expects to increase those activities over the next several years in order to identify sites for possible future investigation and remediation. During 2014, FCX also initiated dialogue with federal and tribal representatives regarding a potential phased program to investigate and remediate historic uranium sites on tribal lands in the Four Corners region. | ||||||||||||||
AROs. FCX’s ARO estimates are reflected on a third-party cost basis and comply with FCX’s legal obligation to retire tangible, long-lived assets. A summary of changes in FCX’s AROs for the years ended December 31 follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 2,328 | $ | 1,146 | $ | 921 | ||||||||
Liabilities assumed in the acquisitions of PXP and MMRa | — | 1,028 | — | |||||||||||
Liabilities incurred | 430 | b | 45 | 6 | ||||||||||
Settlements and revisions to cash flow estimates, net | 65 | 123 | 211 | |||||||||||
Accretion expense | 117 | 95 | 55 | |||||||||||
Dispositions | (61 | ) | — | — | ||||||||||
Spending | (99 | ) | (107 | ) | (47 | ) | ||||||||
Other | (11 | ) | (2 | ) | — | |||||||||
Balance at end of year | 2,769 | 2,328 | 1,146 | |||||||||||
Less current portion | (191 | ) | (115 | ) | (55 | ) | ||||||||
Long-term portion | $ | 2,578 | $ | 2,213 | $ | 1,091 | ||||||||
a. | The fair value of AROs assumed in the acquisitions of PXP and MMR ($741 million and $287 million, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of 2.5 percent, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from 1.3 percent to 6.3 percent. | |||||||||||||
b. | Primarily reflects revisions to the closure approach to reclaim an overburden stockpile in Indonesia. | |||||||||||||
ARO costs may increase or decrease significantly in the future as a result of changes in regulations, changes in engineering designs and technology, permit modifications or updates, changes in mine plans, changes in drilling plans, settlements, inflation or other factors and as actual reclamation spending occurs. ARO activities and expenditures for mining operations generally are made over an extended period of time commencing near the end of the mine life; however, certain reclamation activities may be accelerated if legally required or if determined to be economically beneficial. The methods used or required to plug and abandon non-producing oil and gas wellbores, remove platforms, tanks, production equipment and flow lines, and restore wellsites could change over time. | ||||||||||||||
New Mexico, Arizona, Colorado and other states require financial assurance to be provided for the estimated costs of mine reclamation and closure, including groundwater quality protection programs. FCX has satisfied financial assurance requirements by using a variety of mechanisms, primarily involving parent company performance guarantees and financial capability demonstrations, but also including trust funds, surety bonds, letters of credit and collateral. The applicable regulations specify financial strength tests that are designed to confirm a company’s or guarantor’s financial capability to fund estimated reclamation and closure costs. The amount of financial assurance FCX is required to provide will vary with changes in laws, regulations, reclamation and closure requirements, and cost estimates. At December 31, 2014, FCX’s financial assurance obligations associated with these closure and reclamation/restoration costs totaled $1.0 billion, of which $636 million was in the form of guarantees issued by FCX and financial capability demonstrations of FCX. At December 31, 2014, FCX had trust assets totaling $168 million (included in other assets), which are legally restricted to be used to satisfy its financial assurance obligations for its mining properties in New Mexico. | ||||||||||||||
New Mexico Environmental and Reclamation Programs. FCX’s New Mexico operations are regulated under the New Mexico Water Quality Act and regulations adopted under that act by the Water Quality Control Commission (WQCC). The New Mexico Environment Department (NMED) has required each of these operations to submit closure plans for NMED’s approval. The closure plans must include measures to assure meeting groundwater quality standards following the closure of discharging facilities and to abate any groundwater or surface water contamination. In 2013, the WQCC adopted Supplemental Permitting Requirements for Copper Mining Facilities, which became effective on December 1, 2013, and specify closure requirements for copper mine facilities. The rules were adopted after an extensive stakeholder process in which FCX participated and were jointly supported by FCX and NMED. The rules are being challenged in the New Mexico courts by certain environmental organizations and the New Mexico Attorney General. Finalized closure plan requirements, including those resulting from the 2013 rules, could result in material increases in closure costs for FCX's New Mexico operations. | ||||||||||||||
FCX’s New Mexico operations also are subject to regulation under the 1993 New Mexico Mining Act (the Mining Act) and the related rules that are administered by the Mining and Minerals Division (MMD) of the New Mexico Energy, Minerals and Natural Resources Department. Under the Mining Act, mines are required to obtain approval of plans describing the reclamation to be performed following cessation of mining operations. At December 31, 2014, FCX had accrued reclamation and closure costs of $450 million for its New Mexico operations. As stated above, additional accruals may be required based on the state’s periodic review of FCX’s updated closure plans and any resulting permit conditions, and the amount of those accruals could be material. | ||||||||||||||
Arizona Environmental and Reclamation Programs. FCX’s Arizona properties are subject to regulatory oversight in several areas. ADEQ has adopted regulations for its aquifer protection permit (APP) program that require permits for, among other things, certain facilities, activities and structures used for mining, leaching, concentrating and smelting and require compliance with aquifer water quality standards at an applicable point of compliance well or location. The APP program also may require mitigation and discharge reduction or elimination of some discharges. | ||||||||||||||
An application for an APP requires a description of a closure strategy that will meet applicable groundwater protection requirements following cessation of operations and an estimate of the cost to implement the closure strategy. An APP may specify closure requirements, which may include post-closure monitoring and maintenance. A more detailed closure plan must be submitted within 90 days after a permitted entity notifies ADEQ of its intent to cease operations. A permit applicant must demonstrate its financial ability to meet the closure costs estimated in the APP. In 2014, the state enacted legislation requiring closure costs for facilities covered by aquifer protection permits to be updated no more frequently than every five years and financial assurance mechanisms to be updated no more frequently than every two years. ADEQ has not yet formally notified FCX regarding the time table for updating the closure cost estimates and financial assurance mechanisms for FCX's Arizona mine sites, although FCX may be required to begin updating its closure costs in 2015. | ||||||||||||||
Portions of Arizona mining facilities that operated after January 1, 1986, also are subject to the Arizona Mined Land Reclamation Act (AMLRA). AMLRA requires reclamation to achieve stability and safety consistent with post-mining land use objectives specified in a reclamation plan. Reclamation plans must be approved by the State Mine Inspector and must include an estimate of the cost to perform the reclamation measures specified in the plan along with financial assurance. FCX will continue to evaluate options for future reclamation and closure activities at its operating and non-operating sites, which are likely to result in adjustments to FCX’s ARO liabilities, and those adjustments could be material. At December 31, 2014, FCX had accrued reclamation and closure costs of $285 million for its Arizona operations. | ||||||||||||||
Colorado Reclamation Programs. FCX's Colorado operations are regulated by the Colorado Mined Land Reclamation Act (Reclamation Act) and regulations promulgated thereunder. Under the Reclamation Act, mines are required to obtain approval of plans for reclamation of lands affected by mining operations to be performed during mining or upon cessation of mining operations. During 2014, FCX met with the Colorado Division of Reclamation Mining & Safety (DRMS) regarding the inclusion of long-term water management costs in its closure plans, and Henderson updated its closure cost estimate in the fourth quarter of 2014 for long-term water management, which is still pending formal approval by DRMS. As of December 31, 2014, FCX had accrued reclamation and closure costs of $73 million for its Colorado operations. | ||||||||||||||
Chilean Reclamation and Closure Programs. In July 2011, the Chilean senate passed legislation regulating mine closure, which establishes new requirements for closure plans and became effective in November 2012. FCX's El Abra operation submitted updated closure cost estimates based on the existing approved closure plan in November 2014. At December 31, 2014, FCX had accrued reclamation and closure costs of $67 million for its El Abra operation. | ||||||||||||||
Peruvian Reclamation and Closure Programs. Cerro Verde is subject to regulation under the Mine Closure Law administered by the Peruvian Ministry of Energy and Mines. Under the closure regulations, mines must submit a closure plan that includes the reclamation methods, closure cost estimates, methods of control and verification, closure and post-closure plans and financial assurance. The latest closure plan and cost estimate for the Cerro Verde mine expansion was submitted to the Peruvian regulatory authorities in November 2013. At December 31, 2014, Cerro Verde had accrued reclamation and closure costs of $78 million. | ||||||||||||||
Indonesian Reclamation and Closure Programs. The ultimate amount of reclamation and closure costs to be incurred at PT-FI’s operations will be determined based on applicable laws and regulations and PT-FI’s assessment of appropriate remedial activities in the circumstances, after consultation with governmental authorities, affected local residents and other affected parties and cannot currently be projected with precision. Some reclamation costs will be incurred during mining activities, while the remaining reclamation costs will be incurred at the end of mining activities, which are currently estimated to continue for approximately 25 years. During 2014, PT-FI updated its closure approach for an overburden stockpile, which resulted in an increase in the estimated closure costs of $403 million. At December 31, 2014, PT-FI had accrued reclamation and closure costs of $636 million. | ||||||||||||||
In 1996, PT-FI began contributing to a cash fund ($20 million balance at December 31, 2014, which is included in other assets) designed to accumulate at least $100 million (including interest) by the end of its Indonesia mining activities. PT-FI plans to use this fund, including accrued interest, to pay mine closure and reclamation costs. Any costs in excess of the $100 million fund would be funded by operational cash flow or other sources. | ||||||||||||||
In December 2009, PT-FI submitted its revised mine closure plan to the Department of Energy and Mineral Resources for review and has addressed comments received during the course of this review process. In December 2010, the President of Indonesia issued a regulation regarding mine reclamation and closure, which requires a company to provide a mine closure guarantee in the form of a time deposit placed in a state-owned bank in Indonesia. In accordance with its COW, PT-FI is working with the Department of Energy and Mineral Resources to review these requirements, including discussion of other options for the mine closure guarantee. | ||||||||||||||
Oil and Gas Properties. Substantially all of FM O&G's oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores, remove equipment and facilities from leased acreage and restore land in accordance with applicable local, state and federal laws. FM O&G operating areas include the GOM, offshore and onshore California, the Gulf Coast and the Rocky Mountain area. FM O&G AROs cover more than 6,500 wells and more than 180 platforms and other structures. At December 31, 2014, FM O&G had accrued $1.1 billion associated with its AROs. | ||||||||||||||
Litigation. FCX is involved in numerous legal proceedings that arise in the ordinary course of business or are associated with environmental issues arising from legacy operations conducted over the years by FMC and its affiliates as discussed in this note under “Environmental.” FCX is also involved periodically in other reviews, investigations and proceedings by government agencies, some of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Management does not believe, based on currently available information, that the outcome of any legal proceeding reported below will have a material adverse effect on FCX's financial condition, although individual outcomes could be material to FCX's operating results for a particular period, depending on the nature and magnitude of the outcome and the operating results for the period. | ||||||||||||||
Asbestos Claims. Since approximately 1990, FMC and various subsidiaries have been named as defendants in a large number of lawsuits that claim personal injury either from exposure to asbestos allegedly contained in electrical wire products produced or marketed many years ago or from asbestos contained in buildings and facilities located at properties owned or operated by FMC affiliates, or from alleged asbestos in talc products. Many of these suits involve a large number of codefendants. Based on litigation results to date and facts currently known, FCX believes there is a reasonable possibility that losses may have been incurred related to these matters; however, FCX also believes that the amounts of any such losses, individually or in the aggregate, are not material to its consolidated financial statements. There can be no assurance, however, that future developments will not alter this conclusion. | ||||||||||||||
Shareholder Litigation. On January 15, 2015, a Stipulation and Agreement of Settlement, Compromise and Release (Stipulation) was entered into with respect to the consolidated stockholder derivative litigation captioned In Re Freeport-McMoRan Copper & Gold Inc. Derivative Litigation, No. 8145-VCN. The settlement is subject to specified conditions, including final approval by the Delaware Court of Chancery. If approved by the Court, this settlement will resolve all pending derivative claims against directors and officers of FCX challenging FCX’s 2013 acquisitions of PXP and MMR. Pursuant to the Stipulation, insurers under FCX's directors and officers liability insurance policies will fund $115 million (Settlement Amount) to FCX. The settlement is conditioned upon FCX’s Board declaring a special dividend in an aggregate amount not less than the net proceeds received by FCX in respect to the settlement (i.e., the Settlement Amount less plaintiffs’ attorneys’ fees and expenses as awarded by the Court) plus an additional $22.5 million to be funded by FCX. The special dividend is to be paid at the time of the issuance of, and with the same record date to be established for, the next quarterly dividend announced after the Settlement Amount is received by FCX. | ||||||||||||||
Pursuant to the settlement, FCX’s Board has approved and agreed to keep in effect for at least three years corporate governance enhancements specified in the Stipulation. These corporate governance enhancements include agreements by FCX to maintain and/or establish (i) a lead independent director position, (ii) an independent executive committee, (iii) solely independent directors on each of the executive, corporate responsibility, audit, compensation and nominating and governance committees, and (iv) certain procedures or policies relating to the selection of members of special committees, approval of related-party transactions, and executive compensation. | ||||||||||||||
Tax and Other Matters. FCX's operations are in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Some of these tax regimes are defined by contractual agreements with the local government, while others are defined by general tax laws and regulations. FCX and its subsidiaries are subject to reviews of its income tax filings and other tax payments, and disputes can arise with the taxing authorities over the interpretation of its contracts or laws. The final taxes paid may be dependent upon many factors, including negotiations with taxing authorities. In certain jurisdictions, FCX must pay a portion of the disputed amount to the local government in order to formally appeal the assessment. Such payment is recorded as a receivable if FCX believes the amount is collectible. | ||||||||||||||
Cerro Verde Royalty Dispute. SUNAT, the Peruvian national tax authority, has assessed mining royalties on ore processed by the Cerro Verde concentrator, which commenced operations in late 2006. These assessments cover the period December 2006 to December 2007 and the years 2008 and 2009. In July 2013, the Peruvian Tax Tribunal issued two decisions affirming SUNAT's assessments for the period December 2006 through December 2008. Decisions by the Tax Tribunal ended the administrative stage of the appeal procedures for these assessments. In September 2013, Cerro Verde filed judiciary appeals related to the assessments for the 2006 through 2008 periods because it continues to believe that its 1998 stability agreement exempts all minerals extracted from its mining concession from royalties, irrespective of the method used for processing those minerals. With respect to the judiciary appeal related to assessments for the year 2008, on December 17, 2014, Peru's Eighteenth Contentious Administrative Court rendered its decision upholding Cerro Verde's position and nullifying the Tax Tribunal's resolution and SUNAT's assessment. On December 31, 2014, SUNAT and the Tax Tribunal appealed this decision. As of February 20, 2015, no decision had been rendered with respect to Cerro Verde's judicial appeal of assessments for the 2006 and 2007 periods. In July 2013, a hearing on SUNAT's assessment for 2009 was held, but no decision has been issued by the Tax Tribunal for that year. Although FCX believes its interpretation of the stability agreement is correct, if Cerro Verde is ultimately found responsible for these assessments, it may also be liable for penalties and interest, which accrues at rates that range from approximately 7 percent to 18 percent based on the year accrued and the currency in which the amounts would be payable. | ||||||||||||||
In October 2013, SUNAT served Cerro Verde with a demand for payment totaling 492 million Peruvian Nuevos Soles ($165 million based on the exchange rate at December 31, 2014, including interest and penalties of $97 million, or a total of $88 million, net of noncontrolling interests) based on the Peruvian Tax Tribunal’s decisions for the period December 2006 through December 2008. As permitted by law, Cerro Verde requested and was granted an installment payment program that deferred payment for six months and thereafter satisfies the amount via 66 equal monthly payments. As of December 31, 2014, Cerro Verde has made payments totaling 113 million Peruvian Nuevos Soles ($40 million based on exchange rates at the date of payment) under the installment program, which are included in other assets in the consolidated balance sheet. As of December 31, 2014, the aggregate amount of the assessments, including interest and penalties, for the year 2009 was 226 million Peruvian Nuevos Soles ($76 million based on the exchange rate at December 31, 2014, or a total of $41 million, net of noncontrolling interests). SUNAT may make additional assessments for mining royalties and associated penalties and interest for the years 2010 through 2013, which Cerro Verde will contest; FCX believes any such assessments for the years 2010 through 2013, if made, would in the aggregate be similar to the aggregate assessments received for the periods December 2006 through December 2009. | ||||||||||||||
No amounts have been accrued for these assessments or the installment payment program as of December 31, 2014, because Cerro Verde believes its 1998 stability agreement exempts it from these royalties and believes any payments will be recoverable. | ||||||||||||||
Other Peruvian Tax Matters. Cerro Verde has also received assessments from SUNAT for additional taxes, penalties and interest related to various audit exceptions for income and other taxes. Cerro Verde has filed or will file objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows: | ||||||||||||||
Tax Year | Tax Assessment | Penalty and Interest Assessment | Total | |||||||||||
2002 to 2005 | $ | 16 | $ | 49 | $ | 65 | ||||||||
2006 | 7 | 45 | 52 | |||||||||||
2007 | 12 | 18 | 30 | |||||||||||
2008 | 21 | 13 | 34 | |||||||||||
2009 | 59 | 49 | 108 | |||||||||||
2010 | 63 | 85 | 148 | a | ||||||||||
2014 | 5 | — | 5 | |||||||||||
$ | 183 | $ | 259 | $ | 442 | |||||||||
a. | The tax assessment for the year 2010 was issued in February 2015. | |||||||||||||
As of December 31, 2014, Cerro Verde had paid $192 million (included in other assets) on these disputed tax assessments, which it believes are collectible. No amounts have been accrued for these assessments. | ||||||||||||||
Indonesia Tax Matters. PT-FI has received assessments from the Indonesian tax authorities for additional taxes and interest related to various audit exceptions for income and other taxes. PT-FI has filed objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows: | ||||||||||||||
Tax Year | Tax Assessment | Interest Assessment | Total | |||||||||||
2005 | $ | 103 | $ | 49 | $ | 152 | ||||||||
2006 | 22 | 10 | 32 | |||||||||||
2007 | 91 | 44 | 135 | |||||||||||
2008 | 62 | 52 | 114 | |||||||||||
2011 | 56 | 13 | 69 | |||||||||||
2012 | 137 | — | 137 | |||||||||||
$ | 471 | $ | 168 | $ | 639 | |||||||||
Required estimated income tax payments for 2011 significantly exceeded PT-FI’s 2011 reported income tax liability, which resulted in a $313 million overpayment. During 2013, the Indonesian tax authorities agreed to refund $291 million associated with income tax overpayments made by PT-FI for 2011, and PT-FI filed objections for the remaining $22 million that it believes it is due. PT-FI received a cash refund of $165 million in July 2013, and the Indonesian tax authorities withheld $126 million of the 2011 overpayment for unrelated assessments from 2005 and 2007, which PT-FI is disputing. | ||||||||||||||
Required estimated income tax payments for 2012 significantly exceeded PT-FI’s 2012 reported income tax liability, which resulted in a $303 million overpayment (included in income and other tax receivables in the consolidated balance sheet at December 31, 2013). During second-quarter 2014, the Indonesian tax authorities issued tax assessments for 2012 of $137 million and other offsets of $15 million, and refunded the balance of $151 million (before foreign exchange adjustments). PT-FI filed objections and will use other means available under Indonesian tax laws and regulations to recover all overpayments that remain in dispute. | ||||||||||||||
As of December 31, 2014, PT-FI had paid $359 million (of which $279 million was included in other assets) on disputed tax assessments, which it believes are collectible. In addition, PT-FI has $267 million (included in income and other tax receivables in the consolidated balance sheet at December 31, 2014) for overpayments of 2014 income taxes. | ||||||||||||||
In December 2009, PT-FI was notified by the Large Taxpayer's Office of the Government of Indonesia of its view that PT-FI is obligated to pay value added taxes on certain goods imported after the year 2000. In December 2014, PT-FI paid $269 million for valued added taxes for the period from November 2005 through 2009. The taxes are refundable and are included in income and other tax receivables in the consolidated balance sheet at December 31, 2014. | ||||||||||||||
Letters of Credit, Bank Guarantees and Surety Bonds. Letters of credit and bank guarantees totaled $306 million at December 31, 2014, primarily for the Cerro Verde royalty dispute (refer to discussion above), environmental and asset retirement obligations, workers’ compensation insurance programs, tax and customs obligations, and other commercial obligations. In addition, FCX had surety bonds totaling $275 million at December 31, 2014, associated with environmental and asset retirement obligations ($217 million), self-insurance bonds primarily for workers’ compensation ($20 million) and other bonds ($38 million). | ||||||||||||||
Insurance. FCX purchases a variety of insurance products to mitigate potential losses, which typically have specified deductible amounts or self-insured retentions and policy limits. FCX generally is self-insured for U.S. workers’ compensation, but purchases excess insurance up to statutory limits. An actuarial analysis is performed twice a year on the various casualty insurance programs covering FCX's U.S. based mining operations, including workers’ compensation, to estimate expected losses. At December 31, 2014, expected losses under these insurance programs totaled $64 million, which consisted of a current portion of $8 million (included in accounts payable and accrued liabilities) and a long-term portion of $56 million (included in other liabilities). | ||||||||||||||
FCX's oil and gas operations are subject to all of the risks normally incident to the exploration for and the production of oil and gas, including well blowouts, cratering, explosions, oil spills, releases of gas or well fluids, fires, pollution and releases of toxic gas, each of which could result in damage to or destruction of oil and gas wells, production facilities or other property or injury to persons. Although FCX maintains insurance coverage considered to be customary in the oil and gas industry, FCX is not fully insured against all risks either because insurance is not available or because of high premium costs. FCX is self-insured for named windstorms in the GOM. FCX's insurance policies provide limited coverage for losses or liabilities relating to pollution, with broader coverage for sudden and accidental occurrences. | ||||||||||||||
FCX and its insurers entered into an agreement in December 2012 to settle an insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT-FI's concentrate pipelines. The insurers paid an aggregate of $63 million, including PT-FI's joint venture partner's share. As a result of the settlement, FCX recorded a gain of $59 million in 2012. |
COMMITMENTS_AND_GUARANTEES
COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Guarantees [Abstract] | |
Commitments and Guarantees | COMMITMENTS AND GUARANTEES |
Operating Leases. FCX leases various types of properties, including offices, aircraft and equipment. Future minimum rentals under non-cancelable leases at December 31, 2014, total $44 million in 2015, $44 million in 2016, $42 million in 2017, $36 million in 2018, $23 million in 2019 and $165 million thereafter. Minimum payments under operating leases have not been reduced by aggregate minimum sublease rentals, which are minimal. Total aggregate rental expense under operating leases was $96 million in 2014, $96 million in 2013 and $77 million in 2012. | |
Contractual Obligations. Based on applicable prices at December 31, 2014, FCX has unconditional purchase obligations of $4.3 billion, primarily comprising minimum commitments for deepwater drillships to be utilized in the GOM drilling campaign ($1.8 billion), transportation services ($732 million), the procurement of copper concentrates ($572 million), electricity ($316 million) and deferred premium costs and future interest on crude oil derivative contracts ($231 million), which is expected to be paid once the options settle (refer to Note 14 for further discussion of the amounts recorded at December 31, 2014). Some of FCX’s unconditional purchase obligations are settled based on the prevailing market rate for the service or commodity purchased. In some cases, the amount of the actual obligation may change over time because of market conditions. Drillship obligations provide for an operating rate over the contractual term upon delivery of the drillship. Transportation obligations are primarily for South America contracted ocean freight and FM O&G contracted gathering. Obligations for copper concentrates provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Electricity obligations are primarily for contractual minimum demand at the South America mines. | |
FCX’s future commitments associated with unconditional purchase obligations total $2.1 billion in 2015, $1.0 billion in 2016, $707 million in 2017, $111 million in 2018, $119 million in 2019 and $204 million thereafter, of which $210 million was accrued at December 31, 2014, related to deferred premiums and interest on crude oil derivative contracts. During the three-year period ended December 31, 2014, FCX fulfilled its minimum contractual purchase obligations. | |
Mining Contracts — Indonesia. FCX is entitled to mine in Indonesia under the COW between PT-FI and the Government of Indonesia. The original COW was entered into in 1967 and was replaced with the current COW in 1991. The initial term of the current COW expires in 2021 but can be extended by PT-FI for two 10-year periods subject to Indonesian government approval, which pursuant to the COW cannot be withheld or delayed unreasonably. PT-FI is currently engaged in discussions with the Indonesian government related to the amendment and extension of its contractual and operating rights for the two ten-year extension periods. | |
The copper royalty rate payable by PT-FI under its COW, prior to modifications discussed below as a result of a recent Memorandum of Understanding (MOU) entered into with the Indonesian government, varied from 1.5 percent of copper net revenue at a copper price of $0.90 or less per pound to 3.5 percent at a copper price of $1.10 or more per pound. The COW royalty rate for gold and silver sales was at a fixed rate of 1.0 percent. | |
A large part of the mineral royalties under Indonesian government regulations is designated to the provinces from which the minerals are extracted. In connection with its fourth concentrator mill expansion completed in 1998, PT-FI agreed to pay the Government of Indonesia additional royalties (royalties not required by the COW) to provide further support to the local governments and the people of the Indonesian province of Papua. The additional royalties, prior to modifications discussed below as a result of a recent MOU, were paid on production exceeding specified annual amounts of copper, gold and silver generated when PT-FI’s milling facilities operated above 200,000 metric tons of ore per day. The additional royalty for copper equaled the COW royalty rate, and for gold and silver equaled twice the COW royalty rates. Therefore, PT-FI’s royalty rate on copper net revenues from production above the agreed levels was double the COW royalty rate, and the royalty rates on gold and silver sales from production above the agreed levels were triple the COW royalty rates. | |
In 2009, Indonesia enacted a mining law (2009 Mining Law), which operates under a licensing system that is less protective of licensees than the contract of work system that governs PT-FI. The 2009 Mining Law and the regulations issued pursuant to that law provide that contracts of work would continue to be honored until their expiration. However, the regulations, including those issued in January 2014 as discussed below, attempt to apply certain provisions of the 2009 Mining Law and regulations to existing contracts of work and seek to apply the licensing system to any extension periods of contracts of work. | |
In January 2012, the President of Indonesia issued a decree calling for the creation of a team of Ministers to evaluate contracts of work for adjustment to the 2009 Mining Law and to take steps to assess and determine the Indonesian government's position on reduction to the size of contract concessions, increasing government revenues and domestic processing of minerals. | |
In January 2014, the Indonesian government published regulations providing that holders of contracts of work with existing processing facilities in Indonesia may continue to export product through January 12, 2017, but established new requirements for the continued export of copper concentrates, including the imposition of a progressive export duty on copper concentrates in the amount of 25 percent in 2014, rising to 60 percent by mid-2016. PT-FI’s COW authorizes it to export concentrates and specifies the taxes and other fiscal terms available to its operations. The COW states that PT-FI shall not be subject to taxes, duties or fees subsequently imposed or approved by the Indonesian government except as expressly provided in the COW. Additionally, PT-FI complied with the requirements of its COW for local processing by arranging for the construction and commissioning of Indonesia's only copper smelter and refinery, which is owned by PT Smelting (refer to Note 6). | |
On July 25, 2014, PT-FI entered into a MOU with the Indonesian government under which PT-FI and the government agreed to negotiate an amended COW to address provisions related to the size of PT-FI’s concession area, royalties and taxes, domestic processing and refining, divestment, local content, and continuation of operations post-2021. Execution of the MOU enabled the resumption of concentrate exports in August 2014, which had been suspended since January 2014. The MOU has been extended to July 25, 2015. PT-FI is engaged in active discussions with the Indonesian government regarding an amended COW. | |
Provisions being addressed include the development of new copper smelting and refining capacity in Indonesia, provisions for divestment to the Indonesian government and/or Indonesian nationals of up to a 30 percent interest (an additional 20.64 percent interest) in PT-FI at fair value, and timely granting rights for the continuation of operations from 2022 through 2041. Negotiations are taking into consideration PT-FI’s need for assurance of legal and fiscal terms post-2021 for PT-FI to continue with its large-scale investment program for the development of its underground reserves. | |
Effective with the signing of the MOU, PT-FI provided a $115 million assurance bond to support its commitment for smelter development, agreed to increase royalties to 4.0 percent for copper and 3.75 percent for gold from the previous rates of 3.5 percent for copper and 1.0 percent for gold, and to pay export duties as set forth in a new regulation. PT-FI's royalties totaled $115 million in 2014, $109 million in 2013 and $93 million in 2012. The Indonesian government revised its January 2014 regulations regarding export duties, which are now set at 7.5 percent, declining to 5.0 percent when smelter development progress exceeds 7.5 percent and are eliminated when development progress exceeds 30 percent. PT-FI's export duties totaled $77 million in 2014. | |
Under the MOU, no terms of the COW other than those relating to the export duties, smelter bond and royalties described previously will be changed until the completion of an amended COW. | |
PT-FI is advancing plans for the construction of new smelter capacity in parallel with completing negotiations of its long-term operating rights and will also discuss the possibility of expanding industrial activities in Papua in connection with its long-term development plans. PT-FI has identified a site adjacent to the existing PT Smelting site in Gresik, Indonesia, for the construction of additional smelter capacity. | |
PT-FI is required to apply for renewal of export permits at six-month intervals. In January 2015, PT-FI obtained a renewal of its export license through July 25, 2015. | |
Mining Contracts — Africa. FCX is entitled to mine in the DRC under an Amended and Restated Mining Convention (ARMC) between TFM and the Government of the DRC. The original Mining Convention was entered into in 1996, was replaced with the ARMC in 2005 and was further amended in 2010 (approved in 2011). The current ARMC will remain in effect for as long as the Tenke concession is exploitable. The royalty rate payable by TFM under the ARMC is two percent of net revenue. These mining royalties totaled $29 million in 2014, $29 million in 2013 and $25 million in 2012. | |
Effective March 26, 2012, the DRC government issued a Presidential Decree approving the modifications to TFM's bylaws following a review (completed in 2010) of TFM's existing mining contracts. Among other changes to the amended ARMC, FCX's effective ownership interest in TFM was reduced from 57.75 percent to 56 percent and $50 million of TFM's stockholder loan payable to a subsidiary of FMC was converted to equity. | |
Community Development Programs. FCX has adopted policies that govern its working relationships with the communities where it operates. These policies are designed to guide its practices and programs in a manner that respects basic human rights and the culture of the local people impacted by FCX’s operations. FCX continues to make significant expenditures on community development, education, training and cultural programs. | |
In 1996, PT-FI established the Freeport Partnership Fund for Community Development (Partnership Fund) through which PT-FI has made available funding and technical assistance to support community development initiatives in the area of health, education and economic development of the area. PT-FI has committed through 2016 to provide one percent of its annual revenue for the development of the local people in its area of operations through the Partnership Fund. PT-FI charged $31 million in 2014, $41 million in 2013 and $39 million in 2012 to cost of sales for this commitment. | |
TFM has committed to assist the communities living within its concession area in the Katanga province of the DRC. TFM will contribute 0.3 percent of net sales revenue from production to a community development fund to assist the local communities with development of local infrastructure and related services, such as those pertaining to health, education and economic development. TFM charged $4 million in each of the years 2014, 2013 and 2012 to cost of sales for this commitment. | |
Guarantees. FCX provides certain financial guarantees (including indirect guarantees of the indebtedness of others) and indemnities. | |
FCX's venture agreement with Sumitomo at its Morenci mine in Arizona (refer to Note 3 for further discussion) includes a put and call option guarantee clause. FCX holds an 85 percent undivided interest in the Morenci complex. Under certain conditions defined in the venture agreement, Sumitomo has the right to sell its 15 percent share to FCX. Likewise, under certain conditions, FCX has the right to purchase Sumitomo’s share of the venture. At December 31, 2014, the maximum potential payment FCX is obligated to make to Sumitomo upon exercise of the put option (or FCX’s exercise of its call option) totaled approximately $354 million based on calculations defined in the venture agreement. At December 31, 2014, FCX had not recorded any liability in its consolidated financial statements in connection with this guarantee as FCX does not believe, based on information available, that it is probable that any amounts will be paid under this guarantee as the fair value of Sumitomo’s 15 percent share is in excess of the exercise price. | |
Prior to its acquisition by FCX, FMC and its subsidiaries have, as part of merger, acquisition, divestiture and other transactions, from time to time, indemnified certain sellers, buyers or other parties related to the transaction from and against certain liabilities associated with conditions in existence (or claims associated with actions taken) prior to the closing date of the transaction. As part of these transactions, FMC indemnified the counterparty from and against certain excluded or retained liabilities existing at the time of sale that would otherwise have been transferred to the party at closing. These indemnity provisions generally now require FCX to indemnify the party against certain liabilities that may arise in the future from the pre-closing activities of FMC for assets sold or purchased. The indemnity classifications include environmental, tax and certain operating liabilities, claims or litigation existing at closing and various excluded liabilities or obligations. Most of these indemnity obligations arise from transactions that closed many years ago, and given the nature of these indemnity obligations, it is not possible to estimate the maximum potential exposure. Except as described in the following sentence, FCX does not consider any of such obligations as having a probable likelihood of payment that is reasonably estimable, and accordingly, has not recorded any obligations associated with these indemnities. With respect to FCX’s environmental indemnity obligations, any expected costs from these guarantees are accrued when potential environmental obligations are considered by management to be probable and the costs can be reasonably estimated. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS | |||||||||||||||||||
FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates. | ||||||||||||||||||||
Commodity Contracts. From time to time, FCX has entered into derivatives contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. As a result of the acquisition of PXP, FCX assumed a variety of crude oil and natural gas commodity derivatives to hedge the exposure to the volatility of crude oil and natural gas commodity prices. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions. As of December 31, 2014 and 2013, FCX had no price protection contracts relating to its mine production. A discussion of FCX’s derivative contracts and programs follows. | ||||||||||||||||||||
Derivatives Designated as Hedging Instruments – Fair Value Hedges | ||||||||||||||||||||
Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the COMEX average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses during the three years ended December 31, 2014, resulting from hedge ineffectiveness. At December 31, 2014, FCX held copper futures and swap contracts that qualified for hedge accounting for 50 million pounds at an average contract price of $2.97 per pound, with maturities through May 2016. | ||||||||||||||||||||
A summary of gains (losses) 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: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Copper futures and swap contracts: | ||||||||||||||||||||
Unrealized (losses) gains: | ||||||||||||||||||||
Derivative financial instruments | $ | (12 | ) | $ | 1 | $ | 15 | |||||||||||||
Hedged item – firm sales commitments | 12 | (1 | ) | (15 | ) | |||||||||||||||
Realized losses: | ||||||||||||||||||||
Matured derivative financial instruments | (9 | ) | (17 | ) | (2 | ) | ||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
Embedded Derivatives. As described in Note 1 under “Revenue Recognition,” certain FCX copper concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the LME copper price or the COMEX copper price and the London gold price at the time of shipment as specified in the contract. Similarly, FCX purchases copper under contracts that provide for provisional pricing. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host sales agreements since the contracts do not allow for net settlement and always result in physical delivery. Sales and purchases with a provisional sales price contain an embedded derivative (i.e., the price settlement mechanism is settled after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale or purchase of the metals contained in the concentrates or cathodes at the then-current LME or COMEX copper price or the London gold price as defined in the contract. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in cost of sales as production and delivery costs for purchase contracts. | ||||||||||||||||||||
A summary of FCX’s embedded derivatives at December 31, 2014, follows: | ||||||||||||||||||||
Open | Average Price | Maturities | ||||||||||||||||||
Per Unit | ||||||||||||||||||||
Positions | Contract | Market | Through | |||||||||||||||||
Embedded derivatives in provisional sales contracts: | ||||||||||||||||||||
Copper (millions of pounds) | 574 | $ | 3.02 | $ | 2.86 | May-15 | ||||||||||||||
Gold (thousands of ounces) | 178 | 1,207 | 1,200 | Apr-15 | ||||||||||||||||
Embedded derivatives in provisional purchase contracts: | ||||||||||||||||||||
Copper (millions of pounds) | 101 | 3.01 | 2.87 | Apr-15 | ||||||||||||||||
Crude Oil and Natural Gas Contracts. As a result of the acquisition of PXP, FCX has derivative contracts for 2015 that consist of crude oil options. These crude oil derivatives are not designated as hedging instruments and are recorded at fair value with the mark-to-market gains and losses recorded in revenues. | ||||||||||||||||||||
The crude oil options were entered into by PXP to protect the realized price of a portion of expected future sales in order to limit the effects of crude oil price decreases. At December 31, 2014, these contracts are composed of crude oil put spreads consisting of put options with a floor limit. The premiums associated with put options are deferred until the settlement period. At December 31, 2014, the deferred option premiums and accrued interest associated with the crude oil option contracts totaled $210 million, which was included as a component of the fair value of the crude oil option contracts. At December 31, 2014, the outstanding crude oil option contracts, which settle monthly and cover approximately 31 million barrels in 2015, follow: | ||||||||||||||||||||
Average Price (per barrel)a | ||||||||||||||||||||
Period | Instrument Type | Daily Volumes (thousand barrels) | Floor | Floor Limit | Weighted-Average Deferred Premium | Index | ||||||||||||||
(per barrel) | ||||||||||||||||||||
2015 | ||||||||||||||||||||
January - December | Put optionsb | 84 | $ | 90 | $ | 70 | $ | 6.89 | Brent | |||||||||||
a. | The average strike prices do not reflect any premiums to purchase the put options. | |||||||||||||||||||
b. | If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received. | |||||||||||||||||||
Copper Forward Contracts. Atlantic Copper, FCX's wholly owned smelting and refining unit in Spain, enters into forward copper contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At December 31, 2014, Atlantic Copper held net forward copper purchase contracts for 13 million pounds at an average contract price of $2.90 per pound, with maturities through February 2015. | ||||||||||||||||||||
Summary of (Losses) Gains . A summary of the realized and unrealized (losses) gains recognized in income before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales contractsa | $ | (289 | ) | $ | (136 | ) | $ | 77 | ||||||||||||
Crude oil options and swapsa | 513 | (344 | ) | — | ||||||||||||||||
Natural gas swapsa | (8 | ) | 10 | — | — | |||||||||||||||
Copper forward contractsb | (4 | ) | 3 | 15 | ||||||||||||||||
a. | Amounts recorded in revenues. | |||||||||||||||||||
b. | Amounts recorded in cost of sales as production and delivery costs. | |||||||||||||||||||
Unsettled Derivative Financial Instruments | ||||||||||||||||||||
A summary of the fair values of unsettled commodity derivative financial instruments follows: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Commodity Derivative Assets: | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Copper futures and swap contractsa | $ | — | $ | 6 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales/purchase contracts | 15 | 63 | ||||||||||||||||||
Crude oil optionsb | 316 | — | ||||||||||||||||||
Total derivative assets | $ | 331 | $ | 69 | ||||||||||||||||
Commodity Derivative Liabilities: | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Copper futures and swap contractsa | $ | 7 | $ | — | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales/purchase contracts | 93 | 16 | ||||||||||||||||||
Crude oil optionsb | — | 309 | ||||||||||||||||||
Natural gas swaps | — | 4 | ||||||||||||||||||
Copper forward contracts | — | 1 | ||||||||||||||||||
Total derivative liabilities | $ | 100 | $ | 330 | ||||||||||||||||
a. | FCX had paid $10 million to brokers at December 31, 2014, and $1 million at December 31, 2013, for margin requirements (recorded in other current assets). | |||||||||||||||||||
b. | Includes $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | |||||||||||||||||||
FCX's commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX's policy to offset balances by counterparty on the balance sheet. FCX's embedded derivatives on provisional sales/purchases are netted with the corresponding outstanding receivable/payable balances. A summary of these unsettled commodity contracts that are offset in the balance sheet follows: | ||||||||||||||||||||
Assets at December 31, | Liabilities at December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gross amounts recognized: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | $ | 15 | $ | 63 | $ | 93 | $ | 16 | ||||||||||||
Crude oil and natural gas derivativesa | 316 | — | — | 313 | ||||||||||||||||
Copper derivatives | — | 6 | 7 | 1 | ||||||||||||||||
331 | 69 | 100 | 330 | |||||||||||||||||
Less gross amounts of offset: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | 1 | 10 | 1 | 10 | ||||||||||||||||
Crude oil and natural gas derivatives | — | — | — | — | ||||||||||||||||
Copper derivatives | — | — | — | — | ||||||||||||||||
1 | 10 | 1 | 10 | |||||||||||||||||
Net amounts presented in balance sheet: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | 14 | 53 | 92 | 6 | ||||||||||||||||
Crude oil and natural gas derivativesa | 316 | — | — | 313 | ||||||||||||||||
Copper derivatives | — | 6 | 7 | 1 | ||||||||||||||||
$ | 330 | $ | 59 | $ | 99 | $ | 320 | |||||||||||||
Balance sheet classification: | ||||||||||||||||||||
Trade accounts receivable | $ | 5 | $ | 53 | $ | 56 | $ | — | ||||||||||||
Other current assets | 316 | 6 | — | — | ||||||||||||||||
Accounts payable and accrued liabilities | 9 | — | 43 | 205 | ||||||||||||||||
Other liabilities | — | — | — | 115 | ||||||||||||||||
$ | 330 | $ | 59 | $ | 99 | $ | 320 | |||||||||||||
a. | Includes only crude oil derivatives at December 31, 2014. | |||||||||||||||||||
Credit Risk. FCX is exposed to credit loss when financial institutions with which FCX has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of December 31, 2014, the maximum amount of credit exposure associated with derivative transactions was $379 million. | ||||||||||||||||||||
Other Financial Instruments. Other financial instruments include cash and cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $48 million at December 31, 2014, and $211 million at December 31, 2013), accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 15 for the fair values of investment securities, legally restricted funds and long-term debt). |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENT | |||||||||||||||||||
Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). | ||||||||||||||||||||
FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for 2014. A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable follows: | ||||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investment securities:a,b,c | ||||||||||||||||||||
U.S. core fixed income fund | $ | 23 | $ | 23 | $ | — | $ | 23 | $ | — | ||||||||||
Money market funds | 20 | 20 | 20 | — | — | |||||||||||||||
Equity securities | 3 | 3 | 3 | — | — | |||||||||||||||
Total | 46 | 46 | 23 | 23 | — | |||||||||||||||
Legally restricted funds:a,b,d | ||||||||||||||||||||
U.S. core fixed income fund | 52 | 52 | — | 52 | — | |||||||||||||||
Government bonds and notes | 39 | 39 | — | 39 | — | |||||||||||||||
Corporate bonds | 27 | 27 | — | 27 | — | |||||||||||||||
Government mortgage-backed securities | 25 | 25 | — | 25 | — | |||||||||||||||
Asset-backed securities | 17 | 17 | — | 17 | — | |||||||||||||||
Money market funds | 11 | 11 | 11 | — | — | |||||||||||||||
Municipal bonds | 1 | 1 | — | 1 | — | |||||||||||||||
Total | 172 | 172 | 11 | 161 | — | |||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross asset position | 15 | 15 | — | 15 | — | |||||||||||||||
Crude oil options | 316 | 316 | — | — | 316 | |||||||||||||||
Total | 331 | 331 | — | 15 | 316 | |||||||||||||||
Total assets | $ | 549 | $ | 34 | $ | 199 | $ | 316 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross liability position | $ | 93 | $ | 93 | $ | — | $ | 93 | $ | — | ||||||||||
Copper futures and swap contracts | 7 | 7 | 6 | 1 | — | |||||||||||||||
Total | 100 | 100 | 6 | 94 | — | |||||||||||||||
Long-term debt, including current portionf | 18,970 | 18,735 | — | 18,735 | — | |||||||||||||||
Total liabilities | $ | 18,835 | $ | 6 | $ | 18,829 | $ | — | ||||||||||||
At December 31, 2013 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investment securities:a,b | ||||||||||||||||||||
U.S. core fixed income fund | $ | 21 | $ | 21 | $ | — | $ | 21 | $ | — | ||||||||||
Money market funds | 18 | 18 | 18 | — | — | |||||||||||||||
Equity securities | 5 | 5 | 5 | — | — | |||||||||||||||
Total | 44 | 44 | 23 | 21 | — | |||||||||||||||
Legally restricted funds:a,b,d | ||||||||||||||||||||
U.S. core fixed income fund | 48 | 48 | — | 48 | — | |||||||||||||||
Government mortgage-backed securities | 34 | 34 | — | 34 | — | |||||||||||||||
Corporate bonds | 28 | 28 | — | 28 | — | |||||||||||||||
Government bonds and notes | 28 | 28 | — | 28 | — | |||||||||||||||
Money market funds | 28 | 28 | 28 | — | — | |||||||||||||||
Asset-backed securities | 15 | 15 | — | 15 | — | |||||||||||||||
Municipal bonds | 1 | 1 | — | 1 | — | |||||||||||||||
Total | 182 | 182 | 28 | 154 | — | |||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross asset position | 63 | 63 | — | 63 | — | |||||||||||||||
Copper futures and swap contracts | 6 | 6 | 5 | 1 | — | |||||||||||||||
Total | 69 | 69 | 5 | 64 | — | |||||||||||||||
Total assets | $ | 295 | $ | 56 | $ | 239 | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivatives:a | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross liability positione | $ | 16 | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||||
Crude oil optionse | 309 | 309 | — | — | 309 | |||||||||||||||
Natural gas swapse | 4 | 4 | — | 4 | — | |||||||||||||||
Copper forward contractse | 1 | 1 | 1 | — | — | |||||||||||||||
Plains Offshore warrantsg | 2 | 2 | — | — | 2 | |||||||||||||||
Total | 332 | 332 | 1 | 20 | 311 | |||||||||||||||
Long-term debt, including current portionf | 20,706 | 20,487 | — | 20,487 | — | |||||||||||||||
Total liabilities | $ | 20,819 | $ | 1 | $ | 20,507 | $ | 311 | ||||||||||||
a. | Recorded at fair value. | |||||||||||||||||||
b. | Current portion included in other current assets and long-term portion included in other assets. | |||||||||||||||||||
c. | Excludes $115 million of time deposits (which approximated fair value) at December 31, 2014 (included in other assets), associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note 13 for further discussion). | |||||||||||||||||||
d. | Excludes time deposits (which approximated fair value) of $17 million (included in other current assets) associated with a customs audit assessment and a reclamation guarantee at PT-FI at December 31, 2014, and $15 million included in other current assets and $210 million in other assets at December 31, 2013, associated with the Cerro Verde royalty dispute (refer to Note 12 for further discussion). | |||||||||||||||||||
e. | Refer to Note 14 for further discussion and balance sheet classifications. Crude oil options were net of $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | |||||||||||||||||||
f. | Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates. | |||||||||||||||||||
g. | Included in other liabilities. | |||||||||||||||||||
Valuation Techniques | ||||||||||||||||||||
Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. | ||||||||||||||||||||
Fixed income securities (U.S. core fixed income funds, government securities, corporate bonds, asset-backed securities and municipal bonds) are valued using a bid evaluation price or a mid-evaluation price. A bid evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy. | ||||||||||||||||||||
FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales have critical observable inputs of quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity; however, FCX's contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
FCX's derivative financial instruments for crude oil options are valued using an option pricing model, which uses various observable inputs including IntercontinentalExchange, Inc. (ICE) crude oil prices, volatilities, interest rates and contract terms. FCX's derivative financial instruments for natural gas swaps were valued using a pricing model that had various observable inputs, including NYMEX price quotations, interest rates and contract terms (classified within Level 2 of the fair value hierarchy). Valuations are adjusted for credit quality, using the counterparties' credit quality for asset balances and FCX's credit quality for liability balances (which considers the impact of netting agreements on counterparty credit risk, including whether the position with the counterparty is a net asset or net liability). For asset balances, FCX uses the credit default swap value for counterparties when available or the spread between the risk-free interest rate and the yield rate on the counterparties' publicly traded debt for similar instruments. The crude oil options are classified within Level 3 of the fair value hierarchy because the inputs used in the valuation models are not observable for substantially the full term of the instruments. The significant unobservable inputs used in the fair value measurement of the crude oil options are implied volatilities and deferred premiums. Significant increases (decreases) in implied volatilities in isolation would result in a significantly higher (lower) fair value measurement. The implied volatilities range from 34 percent to 53 percent, with a weighted average of 39 percent. The weighted-average cost of deferred premiums totals $6.89 per barrel at December 31, 2014. Refer to Note 14 for further discussion of these derivative financial instruments. | ||||||||||||||||||||
FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 14 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices. | ||||||||||||||||||||
Long-term debt, including current portion, is not actively traded and is valued using prices obtained from a readily available pricing source and, as such, is classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at December 31, 2014. | ||||||||||||||||||||
A summary of the changes in the fair value of FCX's most significant Level 3 instruments, crude oil options, follows: | ||||||||||||||||||||
Fair value at January 1, 2013 | $ | — | ||||||||||||||||||
Crude oil options assumed in the PXP acquisition | (83 | ) | ||||||||||||||||||
Net realized losses | (38 | ) | a | |||||||||||||||||
Net unrealized losses included in earnings related to liabilities still held at the end of the period | (230 | ) | b | |||||||||||||||||
Settlement payments | 42 | |||||||||||||||||||
Fair value at December 31, 2013 | $ | (309 | ) | |||||||||||||||||
Net realized losses | (42 | ) | a | |||||||||||||||||
Net unrealized gains included in earnings related to assets still held at the end of the period | 430 | b | ||||||||||||||||||
Settlement payments | 237 | |||||||||||||||||||
Fair value at December 31, 2014 | $ | 316 | ||||||||||||||||||
a. | Includes net realized losses of $37 million recorded in revenues in 2013 and $41 million in 2014, and $1 million of interest expense associated with deferred premiums in 2013 and 2014. | |||||||||||||||||||
b. | Includes unrealized losses (gains) of $228 million recorded in revenues in 2013 and $(432) million in 2014, and $2 million of interest expense associated with deferred premiums in 2013 and 2014. | |||||||||||||||||||
Refer to Note 2 for the levels within the fair value hierarchy associated with other assets acquired, liabilities assumed and redeemable noncontrolling interest related to PXP and MMR acquisitions and the goodwill impairment. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | BUSINESS SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Revenue. FCX revenues attributable to the products it produced for the years ended December 31 follow: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refined copper products | $ | 9,451 | $ | 9,178 | $ | 9,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper in concentratesa | 3,366 | 5,328 | 4,589 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold | 1,584 | 1,656 | 1,741 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molybdenum | 1,207 | 1,110 | 1,187 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil | 4,233 | 2,310 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 1,597 | 1,339 | 794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,438 | $ | 20,921 | $ | 18,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Amounts are net of treatment and refining charges totaling $374 million for 2014, $400 million for 2013 and $311 million for 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Area. Information concerning financial data by geographic area follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets:a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 29,468 | $ | 32,969 | b | $ | 8,689 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indonesia | 6,961 | 5,799 | 5,127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peru | 6,848 | 5,181 | 3,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Democratic Republic of Congo | 4,071 | 3,994 | 3,926 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 1,542 | c | 2,699 | 2,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 522 | 562 | 327 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 49,412 | $ | 51,204 | $ | 24,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Long-lived assets exclude deferred tax assets, intangible assets and goodwill. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Increased from 2012 primarily because of the PXP and MMR acquisitions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Decreased from 2013 primarily because of the sale of Candelaria/Ojos. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 10,311 | $ | 9,418 | $ | 6,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indonesia | 1,792 | 1,651 | 2,054 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japan | 1,573 | 2,141 | 2,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spain | 1,208 | 1,223 | 1,581 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | 968 | 1,078 | 579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Switzerland | 800 | 1,098 | 731 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 687 | 754 | 704 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turkey | 484 | 341 | 345 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Korea | 383 | 297 | 525 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,232 | 2,920 | 3,025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,438 | $ | 20,921 | $ | 18,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Customers. Copper concentrate sales to PT Smelting totaled $1.8 billion (8 percent of FCX's consolidated revenues) in 2014, $1.7 billion (8 percent of FCX's consolidated revenues) in 2013 and $2.1 billion (11 percent of FCX's consolidated revenues) in 2012. Additionally, oil and gas sales to Phillips 66 Company totaled $2.5 billion (12 percent of FCX's consolidated revenues) in 2014. No other customer accounted for 10 percent or more of FCX's consolidated revenues. Refer to Note 6 for further discussion of FCX’s investment in PT Smelting. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Labor Matters. As of December 31, 2014, 48 percent of FCX's labor force was covered by collective bargaining agreements, and 28 percent of FCX's labor force is covered by agreements that will expire within one year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments. FCX has organized its operations into six primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines and U.S. oil and gas operations. FCX's U.S. oil and gas operations reflect the results of FM O&G beginning June 1, 2013. Operating segments that meet certain thresholds are reportable segments, which are disclosed separately in the following tables, and include the Morenci (included in North America copper mines), Cerro Verde (included in South America mining), Grasberg (Indonesia mining) and Tenke Fungurume (Africa mining) copper mines, the Rod & Refining operations and the U.S. oil and gas operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment sales between FCX’s mining operations are based on similar arm's-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FCX defers recognizing profits on sales from its mines to other divisions, including Atlantic Copper and on 25 percent of PT-FI's sales to PT Smelting, until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX's net deferred profits and quarterly earnings. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in corporate, other and eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs along with some selling, general and administrative costs are not allocated to the operating divisions or individual segments. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines. FCX has seven operating copper mines in North America – Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone and Chino in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCX’s Rod & Refining operations. In addition to copper, certain of FCX's North America copper mines also produce molybdenum concentrates and silver. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Morenci open-pit mine, located in southeastern Arizona, produces copper cathodes and copper concentrates. In addition to copper, the Morenci mine also produces molybdenum concentrates. The Morenci mine produced 41 percent of FCX’s North America copper during 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
South America Mining. South America mining includes two operating copper mines – Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
On November 3, 2014, FCX completed the sale of its 80 percent ownership interests in the Candelaria mine and the Ojos del Salado mine, both reported as components of other South America mines. South America mining includes the results of the the Candelaria and Ojos del Salado mines through the sale date. Refer to Note 2 for further discussion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathodes and copper concentrates. In addition to copper, the Cerro Verde mine also produces molybdenum concentrates and silver. The Cerro Verde mine produced 43 percent of FCX’s South America copper during 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indonesia Mining. Indonesia mining includes PT-FI’s Grasberg minerals district that produces copper concentrates, which contain significant quantities of gold and silver. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Africa Mining. Africa mining includes the Tenke minerals district. The Tenke operation includes surface mining, leaching and SX/EW operations and produces copper cathodes. In addition to copper, the Tenke operation produces cobalt hydroxide. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molybdenum Mines. Molybdenum mines include the wholly owned Henderson underground mine and Climax open-pit mine in Colorado. The Henderson and Climax mines produce high-purity, chemical-grade molybdenum concentrates, which are typically further processed into value-added molybdenum chemical products. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rod & Refining. The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery, three rod mills and a specialty copper products facility. These operations process copper produced at FCX’s North America copper mines and purchased copper into copper cathode, rod and custom copper shapes. At times these operations refine copper and produce copper rod and shapes for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic Copper Smelting & Refining. Atlantic Copper smelts and refines copper concentrates and markets refined copper and precious metals in slimes. During 2014, Atlantic Copper purchased approximately 21 percent of its concentrate requirements from the North America copper mines, approximately 21 percent from the South America mining operations and approximately 8 percent from the Indonesia mining operations at market prices, with the remainder purchased from third parties. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Mining & Eliminations. Other mining and eliminations include the Miami smelter (a smelter at FCX's Miami, Arizona, mining operation), Freeport Cobalt (a cobalt chemical refinery in Kokkola, Finland), molybdenum conversion facilities in the U.S. and Europe, four non-operating copper mines in North America (Ajo, Bisbee and Tohono in Arizona, and Cobre in New Mexico) and other mining support entities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Oil & Gas Operations. FCX's U.S. oil and gas operations include oil production facilities in the Deepwater GOM, oil production facilities onshore and offshore California, onshore natural gas resources in the Haynesville shale play in Louisiana, natural gas production from the Madden area in central Wyoming, and a position in the shallow-water Inboard Lower Tertiary/Cretaceous natural gas trend on the Shelf of the GOM and onshore in South Louisiana. All of the U.S. operations are considered one operating and reportable segment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information by Business Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 364 | $ | 336 | $ | 700 | $ | 1,282 | $ | 1,740 | $ | 3,022 | $ | 2,848 | a | $ | 1,437 | $ | — | $ | 4,626 | $ | 2,391 | $ | 1,704 | b | $ | 16,728 | $ | 4,710 | c | $ | — | $ | 21,438 | |||||||||||||||||||||||||||||
Intersegment | 1,752 | 3,164 | 4,916 | 206 | 304 | 510 | 223 | 121 | 587 | 29 | 21 | (6,407 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,287 | 2,153 | 3,440 | 741 | 1,198 | 1,939 | 1,988 | 770 | 328 | 4,633 | 2,356 | (4,789 | ) | 10,665 | 1,237 | 2 | 11,904 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 168 | 316 | 484 | 159 | 208 | 367 | 266 | 228 | 92 | 10 | 41 | 70 | 1,558 | 2,291 | 14 | 3,863 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,737 | — | 3,737 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 3 | 5 | 3 | 3 | 6 | 98 | 12 | — | — | 17 | 25 | 163 | 207 | 222 | 592 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 8 | 8 | — | — | — | — | — | — | — | — | 118 | 126 | — | — | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (5 | ) | (5 | ) | — | — | — | — | — | — | — | — | 123 | 118 | — | 1 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,717 | — | 1,717 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (14 | ) | (14 | ) | — | — | — | — | — | — | — | — | (703 | ) | d | (717 | ) | — | — | (717 | ) | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 659 | 1,039 | 1,698 | 585 | 635 | 1,220 | 719 | 548 | 167 | 12 | (2 | ) | 453 | 4,815 | (4,479 | ) | (239 | ) | 97 | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 3 | 1 | 4 | 1 | — | 1 | — | — | — | — | 13 | 84 | 102 | 241 | 287 | 630 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 265 | 266 | 531 | 293 | 116 | — | — | — | 221 | d | 1,161 | — | (837 | ) | 324 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2014 | 3,780 | 5,611 | 9,391 | 7,513 | 1,993 | 9,506 | 8,626 | 5,073 | 2,095 | 235 | 898 | 1,319 | 37,143 | 20,834 | 818 | 58,795 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 826 | 143 | 969 | 1,691 | 94 | 1,785 | 948 | 159 | 54 | 4 | 17 | 52 | 3,988 | 3,205 | 22 | 7,215 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 244 | $ | 326 | $ | 570 | $ | 1,473 | $ | 2,379 | $ | 3,852 | $ | 3,751 | a | $ | 1,590 | $ | — | $ | 4,995 | $ | 2,027 | $ | 1,516 | b | $ | 18,301 | $ | 2,616 | c | $ | 4 | $ | 20,921 | |||||||||||||||||||||||||||||
Intersegment | 1,673 | 2,940 | 4,613 | 360 | 273 | 633 | 336 | 47 | 522 | 27 | 14 | (6,192 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,233 | 2,033 | 3,266 | 781 | 1,288 | 2,069 | 2,309 | 754 | 317 | 4,990 | 2,054 | (4,608 | ) | 11,151 | 682 | 7 | 11,840 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 133 | 269 | 402 | 152 | 194 | 346 | 247 | 246 | 82 | 9 | 42 | 48 | 1,422 | 1,364 | 11 | 2,797 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 3 | 5 | 3 | 4 | 7 | 110 | 12 | — | — | 20 | 29 | 183 | 120 | 354 | 657 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 5 | 5 | — | — | — | 1 | — | — | — | — | 193 | 199 | — | 11 | 210 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (1 | ) | (1 | ) | — | — | — | — | — | — | — | — | 67 | 66 | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 549 | 957 | 1,506 | 897 | 1,166 | 2,063 | 1,420 | 625 | 123 | 23 | (75 | ) | e | (405 | ) | 5,280 | 450 | (379 | ) | 5,351 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 3 | 1 | 4 | 2 | 1 | 3 | 12 | 2 | — | — | 16 | 80 | 117 | 181 | 220 | 518 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 316 | 404 | 720 | 603 | 131 | — | — | — | — | 1,454 | — | 21 | f | 1,475 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2013 | 3,110 | 5,810 | 8,920 | 6,584 | 3,996 | 10,580 | 7,437 | 4,849 | 2,107 | 239 | 1,039 | 1,003 | 36,174 | 26,252 | 1,047 | 63,473 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 737 | 329 | 1,066 | 960 | 185 | 1,145 | 1,030 | 205 | 164 | 4 | 67 | 113 | 3,794 | 1,436 | 56 | 5,286 | ||||||||||||||||||||||||||||||||||||||||||||||||
a. | Includes PT-FI's sales to PT Smelting totaling $1.8 billion in 2014 and $1.7 billion in 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling $505 million in 2014 and $(334) million for the period from June 1, 2013, to December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
d. | Includes a gain of $671 million for the sale of Candelaria/Ojos and related provision for income taxes of $221 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
e. | Includes $50 million for shutdown costs associated with Atlantic Copper's scheduled 68-day maintenance turnaround, which was completed in fourth-quarter 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
f. | Includes $199 million of net benefits resulting from oil and gas acquisitions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 156 | $ | 46 | $ | 202 | $ | 1,767 | $ | 2,143 | $ | 3,910 | $ | 3,611 | a | $ | 1,349 | $ | — | $ | 4,989 | $ | 2,683 | $ | 1,259 | b | $ | 18,003 | $ | — | $ | 7 | $ | 18,010 | ||||||||||||||||||||||||||||||
Intersegment | 1,846 | 3,438 | 5,284 | 388 | 430 | 818 | 310 | 10 | 529 | 27 | 26 | (7,004 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,076 | 1,857 | 2,933 | 813 | 1,301 | 2,114 | 2,349 | 615 | 320 | 4,993 | 2,640 | (5,585 | ) | 10,379 | — | 3 | 10,382 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 122 | 238 | 360 | 139 | 148 | 287 | 212 | 176 | 59 | 9 | 42 | 27 | 1,172 | — | 7 | 1,179 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 2 | 4 | 3 | 3 | 6 | 121 | 6 | — | — | 19 | 18 | 174 | — | 257 | 431 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | 1 | — | 1 | — | — | — | — | — | — | — | — | 272 | 273 | — | 12 | 285 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | (11 | ) | (5 | ) | (16 | ) | — | — | — | — | — | — | — | — | (3 | ) | (19 | ) | — | (3 | ) | (22 | ) | |||||||||||||||||||||||||||||||||||||||||
Gain on insurance settlement | — | — | — | — | — | — | (59 | ) | — | — | — | — | — | (59 | ) | — | — | (59 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 812 | 1,392 | 2,204 | 1,200 | 1,121 | 2,321 | 1,298 | 562 | 150 | 14 | 8 | (474 | ) | 6,083 | — | (269 | ) | 5,814 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | — | 1 | 7 | — | 7 | 5 | 1 | — | — | 12 | 81 | 107 | — | 79 | 186 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 228 | c | 329 | 557 | 497 | 112 | — | — | — | — | 1,166 | — | 344 | 1,510 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2012 | 2,445 | 5,703 | 8,148 | 5,821 | 4,342 | 10,163 | 6,591 | 4,622 | 2,018 | 242 | 992 | 614 | 33,390 | — | 2,050 | 35,440 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 266 | 559 | 825 | 558 | 373 | 931 | 843 | 539 | 245 | 6 | 16 | 69 | 3,474 | — | 20 | 3,494 | ||||||||||||||||||||||||||||||||||||||||||||||||
a. | Includes PT-FI's sales to PT Smelting totaling $2.1 billion in 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Includes a credit of $234 million for the reversal of a net deferred tax liability. |
GUARANTOR_FINANCIAL_STATEMENTS
GUARANTOR FINANCIAL STATEMENTS (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Financial Statements [Abstract] | ||||||||||||||||||||
Guarantor Financial Statements [Text Block] | GUARANTOR FINANCIAL STATEMENTS | |||||||||||||||||||
All of the senior notes issued by FCX and discussed in Note 8 are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100 percent owned subsidiary of FM O&G and FCX. The guarantee is an unsecured obligation of the guarantor and ranks equal in right of payment with all existing and future indebtedness of FM O&G LLC, including indebtedness under the revolving credit facility. The guarantee ranks senior in right of payment with all of FM O&G LLC's future subordinated obligations and is effectively subordinated in right of payment to any debt of FM O&G LLC's subsidiaries. In the future, FM O&G LLC's guarantee may be released or terminated for certain obligations under the following circumstances: (i) all or substantially all of the equity interests or assets of FM O&G LLC are sold to a third party; or (ii) FM O&G LLC no longer has any obligations under any FM O&G senior notes or any refinancing thereof and no longer guarantees any obligations of FCX under the revolver, the Term Loan or any other senior debt. | ||||||||||||||||||||
The following condensed consolidating financial information includes information regarding FCX, as issuer, FM O&G LLC, as guarantor, and all other non-guarantor subsidiaries of FCX. Included are the condensed consolidating balance sheets at December 31, 2014 and 2013, and the related condensed consolidating statements of comprehensive (loss) income for the years ended December 31, 2014 and 2013, and the condensed consolidating statements of cash flows for the years ended December 31, 2014 and 2013, which should be read in conjunction with FCX's notes to the consolidated financial statements: | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1 | $ | 463 | $ | — | $ | 464 | ||||||||||
Accounts receivable | 234 | 2,230 | 2,671 | (2,572 | ) | 2,563 | ||||||||||||||
Other current assets | 89 | 404 | 5,525 | — | 6,018 | |||||||||||||||
Total current assets | 323 | 2,635 | 8,659 | (2,572 | ) | 9,045 | ||||||||||||||
Property, plant, equipment and mining development costs, net | 22 | 46 | 26,152 | — | 26,220 | |||||||||||||||
Oil and gas properties, net - full cost method: | ||||||||||||||||||||
Subject to amortization, less accumulated amortization | — | 3,296 | 5,907 | (16 | ) | 9,187 | ||||||||||||||
Not subject to amortization | — | 2,447 | 7,640 | — | 10,087 | |||||||||||||||
Investments in consolidated subsidiaries | 28,765 | 6,460 | 10,246 | (45,471 | ) | — | ||||||||||||||
Other assets | 9,012 | 3,947 | 4,084 | (12,787 | ) | 4,256 | ||||||||||||||
Total assets | $ | 38,122 | $ | 18,831 | $ | 62,688 | $ | (60,846 | ) | $ | 58,795 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | $ | 1,592 | $ | 560 | $ | 5,592 | $ | (2,572 | ) | $ | 5,172 | |||||||||
Long-term debt, less current portion | 15,028 | 3,874 | 8,902 | (9,312 | ) | 18,492 | ||||||||||||||
Deferred income taxes | 3,161 | a | — | 3,237 | — | 6,398 | ||||||||||||||
Environmental and asset retirement obligations, less current portion | — | 302 | 3,345 | — | 3,647 | |||||||||||||||
Other liabilities | 54 | 3,372 | 1,910 | (3,475 | ) | 1,861 | ||||||||||||||
Total liabilities | 19,835 | 8,108 | 22,986 | (15,359 | ) | 35,570 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 751 | — | 751 | |||||||||||||||
Equity: | ||||||||||||||||||||
Stockholders' equity | 18,287 | 10,723 | 35,268 | (45,991 | ) | 18,287 | ||||||||||||||
Noncontrolling interests | — | — | 3,683 | 504 | 4,187 | |||||||||||||||
Total equity | 18,287 | 10,723 | 38,951 | (45,487 | ) | 22,474 | ||||||||||||||
Total liabilities and equity | $ | 38,122 | $ | 18,831 | $ | 62,688 | $ | (60,846 | ) | $ | 58,795 | |||||||||
a. | All U.S. related deferred income taxes are recorded at the parent company. | |||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,985 | $ | — | $ | 1,985 | ||||||||||
Accounts receivable | 855 | 659 | 2,258 | (1,210 | ) | 2,562 | ||||||||||||||
Other current assets | 114 | 38 | 5,273 | — | 5,425 | |||||||||||||||
Total current assets | 969 | 697 | 9,516 | (1,210 | ) | 9,972 | ||||||||||||||
Property, plant, equipment and mining development costs, net | 27 | 43 | 23,972 | — | 24,042 | |||||||||||||||
Oil and gas properties, net - full cost method: | ||||||||||||||||||||
Subject to amortization, less accumulated amortization | — | 6,207 | 6,265 | — | 12,472 | |||||||||||||||
Not subject to amortization | — | 2,649 | 8,238 | — | 10,887 | |||||||||||||||
Investment in consolidated subsidiaries | 31,162 | 9,712 | 12,468 | (53,342 | ) | — | ||||||||||||||
Goodwill | — | 437 | 1,479 | — | 1,916 | |||||||||||||||
Other assets | 7,126 | 4,640 | 4,128 | (11,710 | ) | 4,184 | ||||||||||||||
Total assets | $ | 39,284 | $ | 24,385 | $ | 66,066 | $ | (66,262 | ) | $ | 63,473 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | $ | 1,003 | $ | 758 | $ | 4,222 | $ | (1,210 | ) | $ | 4,773 | |||||||||
Long-term debt, less current portion | 13,184 | 7,199 | 8,056 | (8,045 | ) | 20,394 | ||||||||||||||
Deferred income taxes | 4,137 | a | — | 3,273 | — | 7,410 | ||||||||||||||
Environmental and asset retirement obligations, less current portion | — | 301 | 2,958 | — | 3,259 | |||||||||||||||
Other liabilities | 26 | 3,436 | 1,893 | (3,665 | ) | 1,690 | ||||||||||||||
Total liabilities | 18,350 | 11,694 | 20,402 | (12,920 | ) | 37,526 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 716 | — | 716 | |||||||||||||||
Equity: | ||||||||||||||||||||
Stockholders' equity | 20,934 | 12,691 | 41,100 | (53,791 | ) | 20,934 | ||||||||||||||
Noncontrolling interests | — | — | 3,848 | 449 | 4,297 | |||||||||||||||
Total equity | 20,934 | 12,691 | 44,948 | (53,342 | ) | 25,231 | ||||||||||||||
Total liabilities and equity | $ | 39,284 | $ | 24,385 | $ | 66,066 | $ | (66,262 | ) | $ | 63,473 | |||||||||
a. | All U.S. related deferred income taxes are recorded at the parent company. | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Revenues | $ | — | $ | 2,356 | $ | 19,082 | $ | — | 21,438 | |||||||||||
Total costs and expenses | 59 | 3,498 | a | 17,762 | a | 22 | 21,341 | |||||||||||||
Operating (loss) income | (59 | ) | (1,142 | ) | 1,320 | (22 | ) | 97 | ||||||||||||
Interest expense, net | (382 | ) | (139 | ) | (189 | ) | 80 | (630 | ) | |||||||||||
Net (loss) gain on early extinguishment of debt | (5 | ) | 78 | — | — | 73 | ||||||||||||||
Other income (expense), net | 72 | 3 | 41 | (80 | ) | 36 | ||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings | (374 | ) | (1,200 | ) | 1,172 | (22 | ) | (424 | ) | |||||||||||
Benefit from (provision for) income taxes | 73 | 281 | (686 | ) | 8 | (324 | ) | |||||||||||||
Equity in affiliated companies' net (losses) earnings | (1,007 | ) | (3,429 | ) | (4,633 | ) | 9,072 | 3 | ||||||||||||
Net (loss) income | (1,308 | ) | (4,348 | ) | (4,147 | ) | 9,058 | (745 | ) | |||||||||||
Net income and preferred dividends attributable to noncontrolling interests | — | — | (519 | ) | (44 | ) | (563 | ) | ||||||||||||
Net (loss) income attributable to FCX common stockholders | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,666 | ) | $ | 9,014 | $ | (1,308 | ) | ||||||
Other comprehensive loss | — | — | (139 | ) | — | (139 | ) | |||||||||||||
Total comprehensive (loss) income | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,805 | ) | $ | 9,014 | $ | (1,447 | ) | ||||||
a. | Includes impairment charges totaling $1.9 billion at the FM O&G LLC Guarantor and $3.5 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge. | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Revenues | $ | — | $ | 1,177 | $ | 19,744 | $ | — | $ | 20,921 | ||||||||||
Total costs and expenses | 134 | 1,065 | 14,371 | — | 15,570 | |||||||||||||||
Operating (loss) income | (134 | ) | 112 | 5,373 | — | 5,351 | ||||||||||||||
Interest expense, net | (319 | ) | (129 | ) | (129 | ) | 59 | (518 | ) | |||||||||||
Net (loss) gain on early extinguishment of debt | (45 | ) | — | 10 | — | (35 | ) | |||||||||||||
Gain on investment in MMR | 128 | — | — | — | 128 | |||||||||||||||
Other income (expense), net | 61 | — | (15 | ) | (59 | ) | (13 | ) | ||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | (309 | ) | (17 | ) | 5,239 | — | 4,913 | |||||||||||||
Benefit from (provision for) income taxes | 81 | 17 | (1,573 | ) | — | (1,475 | ) | |||||||||||||
Equity in affiliated companies' net earnings (losses) | 2,886 | 281 | 268 | (3,432 | ) | 3 | ||||||||||||||
Net income (loss) | 2,658 | 281 | 3,934 | (3,432 | ) | 3,441 | ||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | — | — | (706 | ) | (77 | ) | (783 | ) | ||||||||||||
Net income (loss) attributable to FCX common stockholders | $ | 2,658 | $ | 281 | $ | 3,228 | $ | (3,509 | ) | $ | 2,658 | |||||||||
Other comprehensive income | — | — | 101 | — | 101 | |||||||||||||||
Total comprehensive income (loss) | $ | 2,658 | $ | 281 | $ | 3,329 | $ | (3,509 | ) | $ | 2,759 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net (loss) income | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,147 | ) | $ | 9,058 | $ | (745 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 4 | 806 | 3,077 | (24 | ) | 3,863 | ||||||||||||||
Impairment of oil and gas properties and goodwill | — | 1,922 | 3,486 | 46 | 5,454 | |||||||||||||||
Net gains on crude oil and natural gas derivative contracts | — | (504 | ) | — | — | (504 | ) | |||||||||||||
Equity in (earnings) losses of consolidated subsidiaries | 1,007 | 3,429 | 4,633 | (9,072 | ) | (3 | ) | |||||||||||||
Other, net | (882 | ) | (113 | ) | (807 | ) | — | (1,802 | ) | |||||||||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from dispositions | 723 | (1,750 | ) | 395 | — | (632 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (456 | ) | (558 | ) | 6,637 | 8 | 5,631 | |||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (2,143 | ) | (5,072 | ) | — | (7,215 | ) | ||||||||||||
Acquisition of Deepwater GOM interests | — | — | (1,426 | ) | — | (1,426 | ) | |||||||||||||
Intercompany loans | (1,328 | ) | 704 | — | 624 | — | ||||||||||||||
Dividend from (investment in) consolidated subsidiary | 1,221 | (130 | ) | (2,408 | ) | 1,317 | — | |||||||||||||
Net proceeds from sale of Candelaria and Ojos del Salado | — | — | 1,709 | — | 1,709 | |||||||||||||||
Net proceeds from sale of Eagle Ford shale assets | — | 2,910 | — | — | 2,910 | |||||||||||||||
Other, net | — | 41 | 180 | — | 221 | |||||||||||||||
Net cash (used in) provided by investing activities | (107 | ) | 1,382 | (7,017 | ) | 1,941 | (3,801 | ) | ||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Proceeds from debt | 7,464 | — | 1,246 | — | 8,710 | |||||||||||||||
Repayments of debt | (5,575 | ) | (3,994 | ) | (737 | ) | — | (10,306 | ) | |||||||||||
Intercompany loans | — | 810 | (186 | ) | (624 | ) | — | |||||||||||||
Cash dividends and distributions paid, and contributions received | (1,305 | ) | 2,364 | (1,463 | ) | (1,325 | ) | (1,729 | ) | |||||||||||
Other, net | (21 | ) | (3 | ) | (2 | ) | — | (26 | ) | |||||||||||
Net cash provided by (used in) financing activities | 563 | (823 | ) | (1,142 | ) | (1,949 | ) | (3,351 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | — | 1 | (1,522 | ) | — | (1,521 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | — | 1,985 | — | 1,985 | |||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | 1 | $ | 463 | $ | — | $ | 464 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | 2,658 | $ | 281 | $ | 3,934 | $ | (3,432 | ) | $ | 3,441 | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 4 | 616 | 2,177 | — | 2,797 | |||||||||||||||
Net losses on crude oil and natural gas derivative contracts | — | 334 | — | — | 334 | |||||||||||||||
Gain on investment in MMR | (128 | ) | — | — | — | (128 | ) | |||||||||||||
Equity in (earnings) losses of consolidated subsidiaries | (2,886 | ) | (281 | ) | (265 | ) | 3,432 | — | ||||||||||||
Other, net | 8 | (14 | ) | 78 | — | 72 | ||||||||||||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions and dispositions | 272 | 735 | (1,384 | ) | — | (377 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (72 | ) | 1,671 | 4,540 | — | 6,139 | ||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (894 | ) | (4,392 | ) | — | (5,286 | ) | ||||||||||||
Acquisitions, net of cash acquired | (5,437 | ) | — | (4 | ) | — | (5,441 | ) | ||||||||||||
Intercompany loans | 834 | — | (162 | ) | (672 | ) | — | |||||||||||||
Dividend from (investment in) consolidated subsidiary | 629 | — | — | (629 | ) | — | ||||||||||||||
Other, net | 15 | 30 | (226 | ) | — | (181 | ) | |||||||||||||
Net cash used in investing activities | (3,959 | ) | (864 | ) | (4,784 | ) | (1,301 | ) | (10,908 | ) | ||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Proceeds from debt | 11,260 | — | 241 | — | 11,501 | |||||||||||||||
Repayments of debt and redemption of MMR preferred stock | (4,737 | ) | (416 | ) | (551 | ) | — | (5,704 | ) | |||||||||||
Intercompany loans | — | (391 | ) | (281 | ) | 672 | — | |||||||||||||
Cash dividends and distributions paid | (2,281 | ) | — | (885 | ) | 629 | (2,537 | ) | ||||||||||||
Other, net | (211 | ) | — | — | — | (211 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 4,031 | (807 | ) | (1,476 | ) | 1,301 | 3,049 | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (1,720 | ) | — | (1,720 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | — | 3,705 | — | 3,705 | |||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | — | $ | 1,985 | $ | — | $ | 1,985 | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
In February 2015, FCX's revolving credit facility and Term Loan were modified to amend the maximum total leverage ratio. In addition, the Term Loan amortization schedule was extended such that, as amended, the Term Loan’s scheduled payments total $225 million in 2016, $269 million in 2017, $1.1 billion in 2018, $299 million in 2019 and $1.2 billion in 2020, compared with $650 million in 2016, $200 million in 2017 and $2.2 billion in 2018. | |
FCX evaluated events after December 31, 2014, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Quarterly Financial Information | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 4,985 | a | $ | 5,522 | a | $ | 5,696 | a | $ | 5,235 | a | $ | 21,438 | a | ||||||
Operating income (loss) | 1,111 | 1,153 | 1,132 | b,c | (3,299 | ) | b,c | 97 | b,c | ||||||||||||
Net income (loss) | 626 | 660 | d,e | 704 | d,e | (2,735 | ) | d,e | (745 | ) | d,e | ||||||||||
Net income and preferred dividends | |||||||||||||||||||||
attributable to noncontrolling interests | 116 | 178 | 152 | 117 | 563 | ||||||||||||||||
Net income (loss) attributable to FCX | |||||||||||||||||||||
common stockholders | 510 | a | 482 | a,d,e | 552 | a,b,c,d,e | (2,852 | ) | a,b,c,d,e | (1,308 | ) | a,b,c,d,e | |||||||||
Basic net income (loss) per share | |||||||||||||||||||||
attributable to FCX common stockholders | 0.49 | 0.46 | 0.53 | (2.75 | ) | (1.26 | ) | ||||||||||||||
Diluted net income (loss) per share | |||||||||||||||||||||
attributable to FCX common stockholders | 0.49 | a | 0.46 | a,d,e | 0.53 | a,b,c,d,e | (2.75 | ) | a,b,c,d,e | (1.26 | ) | a,b,c,d,e | |||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 4,583 | $ | 4,288 | f | $ | 6,165 | f | $ | 5,885 | f | $ | 20,921 | f | |||||||
Operating income | 1,355 | g | 639 | g | 1,707 | g | 1,650 | g,h | 5,351 | g,h | |||||||||||
Net income | 824 | 610 | i | 1,048 | 959 | i | 3,441 | i | |||||||||||||
Net income and preferred dividends | |||||||||||||||||||||
attributable to noncontrolling interests | 176 | 128 | 227 | 252 | 783 | ||||||||||||||||
Net income attributable to FCX common | |||||||||||||||||||||
stockholders | 648 | g,j | 482 | f,g,i,j,k | 821 | f,g | 707 | f,g,h,i,j | 2,658 | f,g,h,i,j,k | |||||||||||
Basic net income per share attributable | |||||||||||||||||||||
to FCX common stockholders | 0.68 | 0.49 | 0.79 | 0.68 | 2.65 | ||||||||||||||||
Diluted net income per share attributable | |||||||||||||||||||||
to FCX common stockholders | 0.68 | g,j | 0.49 | f,g,i,j,k | 0.79 | f,g | 0.68 | f,g,h,i,j | 2.64 | f,g,h,i,j,k | |||||||||||
a. | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
b. | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | ||||||||||||||||||||
c. | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | ||||||||||||||||||||
d. | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||||||||||||||||||
e. | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||
f. | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
g. | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | ||||||||||||||||||||
h. | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | ||||||||||||||||||||
i. | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | ||||||||||||||||||||
j. | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||
k. | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. |
SUPPLEMENTARY_MINERAL_RESERVE_
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplementary Mineral Reserve Information [Abstract] | ||||||||||||||||||||
Supplementary Mineral Reserve Information | SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) | |||||||||||||||||||
Recoverable proven and probable reserves have been calculated as of December 31, 2014, in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCX’s proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term “reserve,” as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “proven reserves” means reserves for which (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. | ||||||||||||||||||||
FCX’s reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies. | ||||||||||||||||||||
Estimated recoverable proven and probable reserves at December 31, 2014, were determined using long-term average prices of $2.00 per pound for copper (consistent with the long-term average copper price used since December 31, 2010), $1,000 per ounce for gold and $10 per pound for molybdenum. For the three-year period ended December 31, 2014, LME spot copper prices averaged $3.35 per pound, London PM gold prices averaged $1,449 per ounce and the weekly average price for molybdenum quoted by Metals Week averaged $11.50 per pound. | ||||||||||||||||||||
The recoverable proven and probable reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economically and legally extracted or produced at the time of the reserve determination. | ||||||||||||||||||||
Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||
Estimated at December 31, 2014 | ||||||||||||||||||||
Coppera | Gold | Molybdenum | ||||||||||||||||||
(billion pounds) | (million ounces) | (billion pounds) | ||||||||||||||||||
North America | 35.6 | 0.3 | 2.42 | |||||||||||||||||
South America | 31.8 | — | 0.69 | |||||||||||||||||
Indonesia | 29 | 28.2 | — | |||||||||||||||||
Africa | 7.1 | — | — | |||||||||||||||||
Consolidatedb | 103.5 | 28.5 | 3.11 | |||||||||||||||||
Net equity interestc | 82.8 | 25.9 | 2.79 | |||||||||||||||||
a. | Consolidated recoverable copper reserves included 3.6 billion pounds in leach stockpiles and 0.9 billion pounds in mill stockpiles. | |||||||||||||||||||
b. | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.85 billion pounds of cobalt at Tenke and 282.9 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver. | |||||||||||||||||||
c. | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 232.4 million ounces of silver in Indonesia, South America and North America. | |||||||||||||||||||
Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||
Estimated at December 31, 2014 | ||||||||||||||||||||
Average Ore Grade | Recoverable Proven and | |||||||||||||||||||
Per Metric Tona | Probable Reservesb | |||||||||||||||||||
Orea | Copper (%) | Gold (grams) | Molybdenum (%) | Copper | Gold | Molybdenum | ||||||||||||||
(million metric tons) | (billion pounds) | (million ounces) | (billion pounds) | |||||||||||||||||
North America | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Morenci | 3,923 | 0.27 | — | — | c | 15.1 | — | 0.17 | ||||||||||||
Bagdad | 1,334 | 0.32 | — | c | 0.02 | 7.8 | 0.1 | 0.38 | ||||||||||||
Safford | 122 | 0.47 | — | — | 1.1 | — | — | |||||||||||||
Sierrita | 2,464 | 0.23 | — | c | 0.02 | 10.8 | 0.1 | 1.01 | ||||||||||||
Miami | 3 | 0.58 | — | — | 0.1 | — | — | |||||||||||||
Chino | 301 | 0.39 | 0.02 | — | c | 2.2 | 0.1 | 0.01 | ||||||||||||
Tyrone | 59 | 0.32 | — | — | 0.4 | — | — | |||||||||||||
Henderson | 90 | — | — | 0.17 | — | — | 0.28 | |||||||||||||
Climax | 185 | — | — | 0.16 | — | — | 0.59 | |||||||||||||
Undeveloped: | ||||||||||||||||||||
Cobre | 71 | 0.37 | — | — | 0.3 | — | — | |||||||||||||
South America | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Cerro Verde | 3,953 | 0.37 | — | 0.01 | 28.9 | — | 0.69 | |||||||||||||
El Abra | 444 | 0.46 | — | — | 2.9 | — | — | |||||||||||||
Indonesia | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Grasberg open pit | 179 | 0.96 | 1.06 | — | 3.2 | 4.9 | — | |||||||||||||
Deep Ore Zone | 146 | 0.54 | 0.69 | — | 1.5 | 2.5 | — | |||||||||||||
Big Gossan | 54 | 2.26 | 0.99 | — | 2.4 | 1.1 | — | |||||||||||||
Undeveloped: | ||||||||||||||||||||
Grasberg Block Cave | 1,012 | 1 | 0.77 | — | 18.9 | 16.3 | — | |||||||||||||
Kucing Liar | 406 | 1.25 | 1.07 | — | 9.5 | 6.3 | — | |||||||||||||
Deep Mill Level Zone | 472 | 0.87 | 0.71 | — | 7.9 | 8.6 | — | |||||||||||||
Africa | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Tenke Fungurume | 98 | 3.27 | — | — | 7.1 | — | — | |||||||||||||
Total 100% basis | 15,316 | 120.1 | 40 | 3.13 | ||||||||||||||||
Consolidatedd | 103.5 | 28.5 | 3.11 | |||||||||||||||||
FCX’s equity sharee | 82.8 | 25.9 | 2.79 | |||||||||||||||||
a. | Excludes material contained in stockpiles. | |||||||||||||||||||
b. | Includes estimated recoverable metals contained in stockpiles. | |||||||||||||||||||
c. | Amounts not shown because of rounding. | |||||||||||||||||||
d. | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. | |||||||||||||||||||
e. | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. |
SUPPLEMENTARY_OIL_AND_GAS_INFO
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Oil and Gas Information [Abstract] | |||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) | ||||||||||||
Costs Incurred. A summary of the costs incurred for FCX's oil and gas acquisition, exploration and development activities for the years ended December 31 follows: | |||||||||||||
2014 | 2013a | ||||||||||||
Property acquisition costs: | |||||||||||||
Proved properties | $ | 463 | $ | 12,205 | b | ||||||||
Unproved properties | 1,460 | 11,259 | c | ||||||||||
Exploration costs | 1,482 | 502 | |||||||||||
Development costs | 1,270 | 854 | |||||||||||
$ | 4,675 | $ | 24,820 | ||||||||||
a. | Includes the results of FM O&G beginning June 1, 2013. | ||||||||||||
b. | Includes $12.2 billion from the acquisitions of PXP and MMR. | ||||||||||||
c. | Includes $11.1 billion from the acquisitions of PXP and MMR. | ||||||||||||
These amounts included changes in AROs of $(27) million in 2014 and $1.1 billion in 2013 (including $1.0 billion assumed in the acquisitions of PXP and MMR), capitalized general and administrative expenses of $143 million in 2014 and $67 million in 2013, and capitalized interest of $88 million in 2014 and $69 million in 2013. | |||||||||||||
Capitalized Costs. The aggregate capitalized costs subject to amortization for oil and gas properties and the aggregate related accumulated amortization as of December 31 follow: | |||||||||||||
2014 | 2013 | ||||||||||||
Properties subject to amortization | $ | 16,547 | $ | 13,829 | |||||||||
Accumulated amortization | (7,360 | ) | a | (1,357 | ) | ||||||||
$ | 9,187 | $ | 12,472 | ||||||||||
a. | Includes charges of $3.7 billion to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. | ||||||||||||
The average amortization rate per barrel of oil equivalents (BOE) was $39.74 in 2014 and $35.54 for the period from June 1, 2013, to December 31, 2013. | |||||||||||||
Costs Not Subject to Amortization. A summary of the categories of costs comprising the amount of unproved properties not subject to amortization by the year in which such costs were incurred follows: | |||||||||||||
December 31, | |||||||||||||
Total | 2014 | 2013 | |||||||||||
U.S.: | |||||||||||||
Onshore | |||||||||||||
Acquisition costs | $ | 2,303 | $ | 18 | $ | 2,285 | |||||||
Exploration costs | 121 | 119 | 2 | ||||||||||
Capitalized interest | 27 | 22 | 5 | ||||||||||
Offshore | |||||||||||||
Acquisition costs | 7,094 | 1,413 | 5,681 | ||||||||||
Exploration costs | 429 | 387 | 42 | ||||||||||
Capitalized interest | 75 | 39 | 36 | ||||||||||
International: | |||||||||||||
Offshore | |||||||||||||
Acquisition costs | 15 | — | 15 | ||||||||||
Exploration costs | 23 | 23 | — | ||||||||||
Capitalized interest | — | — | — | ||||||||||
$ | 10,087 | $ | 2,021 | $ | 8,066 | ||||||||
FCX expects that 48 percent of the costs not subject to amortization at December 31, 2014, will be transferred to the amortization base over the next five years and the majority of the remainder in the next seven to ten years. | |||||||||||||
Approximately 35 percent of the total U.S. net undeveloped acres is covered by leases that expire from 2015 to 2017. As a result of the decrease in crude oil prices, FCX's current plans anticipate that the majority of the expiring acreage will not be retained by drilling operations or other means. The exploration permits covering FM O&G's Morocco acreage expire in 2016; however, FM O&G has the ability to extend the exploration permits through 2019. Over 95 percent of the acreage in the Haynesville shale play in Louisiana is currently held by production or held by operations, and future plans include drilling or otherwise extending leases on the remaining acreage. | |||||||||||||
Results of Operations for Oil and Gas Producing Activities. The results of operations from oil and gas producing activities for the year ended December 31, 2014, and the period from June 1, 2013, to December 31, 2013, presented below exclude non-oil and gas revenues, general and administrative expenses, goodwill impairment, interest expense and interest income. Income tax benefit (expense) was determined by applying the statutory rates to pre-tax operating results: | |||||||||||||
Year Ended | June 1, 2013 to | ||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Revenues from oil and gas producing activities | $ | 4,710 | $ | 2,616 | |||||||||
Production and delivery costs | (1,237 | ) | (682 | ) | |||||||||
Depreciation, depletion and amortization | (2,265 | ) | (1,358 | ) | |||||||||
Impairment of oil and gas properties | (3,737 | ) | — | ||||||||||
Income tax benefit (expense) (based on FCX's statutory tax rate) | 958 | (219 | ) | ||||||||||
Results of operations from oil and gas producing activities | $ | (1,571 | ) | $ | 357 | ||||||||
Proved Oil and Natural Gas Reserve Information. The following information summarizes the net proved reserves of oil (including condensate and natural gas liquids (NGLs)) and natural gas and the standardized measure as described below. All of the oil and natural gas reserves are located in the U.S. | |||||||||||||
Management believes the reserve estimates presented herein, in accordance with generally accepted engineering and evaluation principles consistently applied, are reasonable. However, there are numerous uncertainties inherent in estimating quantities and values of proved reserves and in projecting future rates of production and the amount and timing of development expenditures, including many factors beyond FCX's control. Reserve engineering is a subjective process of estimating the recovery from underground accumulations of oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Because all oil and natural gas reserve estimates are to some degree subjective, the quantities of oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures and future crude oil and natural gas sales prices may all differ from those assumed in these estimates. In addition, different reserve engineers may make different estimates of reserve quantities and cash flows based upon the same available data. Therefore, the standardized measure of discounted future net cash flows (Standardized Measure) shown below represents estimates only and should not be construed as the current market value of the estimated reserves attributable to FCX's oil and gas properties. In this regard, the information set forth in the following tables includes revisions of reserve estimates attributable to proved properties acquired from PXP and MMR, and reflect additional information from subsequent development activities, production history of the properties involved and any adjustments in the projected economic life of such properties resulting from changes in product prices. | |||||||||||||
Decreases in the prices of crude oil and natural gas could have an adverse effect on the carrying value of the proved reserves, reserve volumes and FCX's revenues, profitability and cash flows. FCX's reference prices for reserve determination are the WTI spot price for crude oil and the Henry Hub spot price for natural gas. As of February 20, 2015, the twelve-month average of the first-day-of-the-month historical reference price for natural gas has decreased from $4.35 per MMBtu at December 31, 2014, to $4.04 per MMBtu, while the comparable price for crude oil has decreased from $94.99 per barrel at December 31, 2014, to $87.12 per barrel. | |||||||||||||
Historically, the market price for California crude oil differs from the established market indices in the U.S. primarily because of the higher transportation and refining costs associated with heavy oil. In recent years, California market prices had strengthened substantially against these indices, primarily due to increasing world demand and declining domestic supplies of both Alaskan and California crude oil. This trend has reversed of late, however, because of increasing production from U.S. shale plays and other non-OPEC countries, low refinery utilization and high West Coast inventory levels. Approximately 39 percent of FCX's oil and natural gas reserve volumes are attributable to properties in California where differentials to the reference prices have been volatile as a result of these factors. | |||||||||||||
The market price for GOM crude oil differs from WTI as a result of a large portion of FCX's production being sold under a Heavy Louisiana Sweet based pricing. Approximately 35 percent of FCX's December 31, 2014, oil and natural gas reserve volumes are attributable to properties in the GOM where oil price realizations are generally higher because of these marketing contracts. | |||||||||||||
Estimated Quantities of Oil and Natural Gas Reserves. The following table sets forth certain data pertaining to proved, proved developed and proved undeveloped reserves, all of which are in the U.S., for the years ended December 31, 2014 and 2013. | |||||||||||||
Oil | Gas | Total | |||||||||||
(MMBbls)a,b | (Bcf)a | (MMBOE)a | |||||||||||
2014 | |||||||||||||
Proved reserves: | |||||||||||||
Balance at beginning of year | 370 | 562 | 464 | ||||||||||
Extensions and discoveries | 10 | 35 | 16 | ||||||||||
Acquisitions of reserves in-place | 14 | 9 | 16 | ||||||||||
Revisions of previous estimates | (10 | ) | 140 | 13 | |||||||||
Sale of reserves in-place | (53 | ) | (54 | ) | (62 | ) | |||||||
Production | (43 | ) | (82 | ) | (57 | ) | |||||||
Balance at end of year | 288 | 610 | 390 | ||||||||||
Proved developed reserves at December 31, 2014 | 184 | 369 | 246 | ||||||||||
Proved undeveloped reserves at December 31, 2014 | 104 | 241 | 144 | ||||||||||
2013 | |||||||||||||
Proved reserves: | |||||||||||||
Balance at beginning of year | — | — | — | ||||||||||
Acquisitions of PXP and MMR | 368 | 626 | 472 | ||||||||||
Extensions and discoveries | 20 | 20 | 24 | ||||||||||
Revisions of previous estimates | 11 | (26 | ) | 7 | |||||||||
Sale of reserves in-place | — | (3 | ) | (1 | ) | ||||||||
Production | (29 | ) | (55 | ) | (38 | ) | |||||||
Balance at end of year | 370 | 562 | 464 | ||||||||||
Proved developed reserves at December 31, 2013 | 236 | 423 | 307 | ||||||||||
Proved undeveloped reserves at December 31, 2013 | 134 | 139 | 157 | ||||||||||
a. | MMBbls =illion barrels; Bcf =illion cubic feet; MMBOE =illion BOE | ||||||||||||
b. | Includes 10 MMBbls of NGL proved reserves (7 MMBbls of developed and 3 MMBbls of undeveloped) at December 31, 2014, and 20 MMBbls of NGL proved reserves (14 MMBbls of developed and 6 MMBbls of undeveloped) at December 31, 2013. | ||||||||||||
For the year ended December 31, 2014, FCX had a total of 16 MMBOE of extensions and discoveries, including 8 MMBOE in the Deepwater GOM, primarily associated with the continued successful development at Horn Mountain and 5 MMBOE in the Haynesville shale play resulting from continued successful drilling that extended and developed FCX's proved acreage. From June 1, 2013, to December 31, 2013, FCX had a total of 24 MMBOE of extensions and discoveries, including 16 MMBOE in the Eagle Ford shale play resulting from continued successful drilling that extended and developed FCX's proved acreage and 5 MMBOE in the Deepwater GOM, primarily associated with the previously drilled Holstein Deep development acquired during 2013. | |||||||||||||
For the year ended December 31, 2014, FCX had net positive revisions of 13 MMBOE primarily related to improved gas price realizations in both the Haynesville shale play and Madden field, as well as continued improved performance in the Eagle Ford shale play prior to the disposition, partially offset by the downward revisions of certain proved undeveloped reserves resulting from deferred development plans, as well as lower oil price realizations and higher steam-related operating expenses resulting from higher natural gas prices in certain FCX onshore California properties. From June 1, 2013, to December 31, 2013, FCX had net positive revisions of 7 MMBOE primarily related to improved performance at certain FCX onshore California and Deepwater GOM properties, partially offset by performance reductions primarily related to certain other FCX Deepwater GOM properties and the Haynesville shale play. | |||||||||||||
For the year ended December 31, 2014, FCX acquired reserves in-place totaling 16 MMBOE from the acquisition of interests in the Deepwater GOM, including interests in the Lucius and Heidelberg oil fields. | |||||||||||||
For the year ended December 31, 2014, FCX sold reserves in-place totaling 62 MMBOE primarily related to its Eagle Ford properties. From June 1, 2013, to December 31, 2013, FCX sold reserves in-place totaling 1 MMBOE related to its Panhandle properties. | |||||||||||||
Standardized Measure. The Standardized Measure (discounted at 10 percent) from production of proved oil and natural gas reserves has been developed as of December 31, 2014, in accordance with SEC guidelines. FCX estimated the quantity of proved oil and natural gas reserves and the future periods in which they are expected to be produced based on year-end economic conditions. Estimates of future net revenues from FCX's proved oil and gas properties and the present value thereof were made using the twelve-month average of the first-day-of-the-month historical reference prices as adjusted for location and quality differentials, which are held constant throughout the life of the oil and gas properties, except where such guidelines permit alternate treatment, including the use of fixed and determinable contractual price escalations (excluding the impact of crude oil derivative contracts). Future gross revenues were reduced by estimated future operating costs (including production and ad valorem taxes) and future development and abandonment costs, all of which were based on current costs in effect at December 31, 2014, and held constant throughout the life of the oil and gas properties. Future income taxes were calculated by applying the statutory federal and state income tax rate to pre-tax future net cash flows, net of the tax basis of the respective oil and gas properties and utilization of FCX's available tax carryforwards related to its oil and gas operations. | |||||||||||||
Excluding the impact of crude oil derivative contracts, the average realized sales prices used in FCX's reserve reports as of December 31, 2014, were $93.20 per barrel of crude oil and $4.35 per one thousand cubic feet (Mcf) of natural gas. | |||||||||||||
The Standardized Measure related to proved oil and natural gas reserves as of December 31 follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Future cash inflows | $ | 29,504 | $ | 38,901 | |||||||||
Future production expense | (10,991 | ) | (12,774 | ) | |||||||||
Future development costsa | (6,448 | ) | (6,480 | ) | |||||||||
Future income tax expense | (2,487 | ) | (4,935 | ) | |||||||||
Future net cash flows | 9,578 | 14,712 | |||||||||||
Discounted at 10% per year | (3,157 | ) | (5,295 | ) | |||||||||
Standardized Measure | $ | 6,421 | $ | 9,417 | |||||||||
a. | Includes estimated asset retirement costs of $1.8 billion at December 31, 2014 and 2013. | ||||||||||||
A summary of the principal sources of changes in the Standardized Measure for the years ended December 31 follows: | |||||||||||||
2014 | 2013a | ||||||||||||
Balance at beginning of year | $ | 9,417 | $ | — | |||||||||
Changes during the year: | |||||||||||||
Reserves acquired in the acquisitions of PXP and MMR | — | 14,467 | |||||||||||
Sales, net of production expenses | (3,062 | ) | (2,296 | ) | |||||||||
Net changes in sales and transfer prices, net of production expenses | (2,875 | ) | (459 | ) | |||||||||
Extensions, discoveries and improved recoveries | 194 | 752 | |||||||||||
Changes in estimated future development costs | (498 | ) | (1,190 | ) | |||||||||
Previously estimated development costs incurred during the year | 982 | 578 | |||||||||||
Sales of reserves in-place | (1,323 | ) | (12 | ) | |||||||||
Other purchases of reserves in-place | 487 | — | |||||||||||
Revisions of quantity estimates | 399 | 102 | |||||||||||
Accretion of discount | 1,195 | 701 | |||||||||||
Net change in income taxes | 1,505 | (3,226 | ) | ||||||||||
Total changes | (2,996 | ) | 9,417 | ||||||||||
Balance at end of year | $ | 6,421 | $ | 9,417 | |||||||||
a. | Includes the results of FM O&G beginning June 1, 2013. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Balance at | Charged to | Charged to | Other | Balance at | |||||||||||||||||
Beginning of | Costs and | Other | Additions | End of | |||||||||||||||||
Year | Expense | Accounts | (Deductions) | Year | |||||||||||||||||
Reserves and allowances deducted | |||||||||||||||||||||
from asset accounts: | |||||||||||||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||||||
Year Ended December 31, 2014 | $ | 2,487 | $ | (53 | ) | $ | — | $ | — | $ | 2,434 | ||||||||||
Year Ended December 31, 2013 | 2,443 | 44 | — | — | 2,487 | ||||||||||||||||
Year Ended December 31, 2012 | 2,393 | 49 | 1 | — | 2,443 | ||||||||||||||||
Reserves for non-income taxes: | |||||||||||||||||||||
Year Ended December 31, 2014 | $ | 78 | $ | 16 | $ | — | $ | (1 | ) | a | $ | 93 | |||||||||
Year Ended December 31, 2013 | 80 | 35 | (1 | ) | (36 | ) | a | 78 | |||||||||||||
Year Ended December 31, 2012 | 73 | 21 | (2 | ) | (12 | ) | a | 80 | |||||||||||||
a. | Represents amounts paid or adjustments to reserves based on revised estimates. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Asset Impairment for Mining Operations. FCX reviews and evaluates its mining long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In evaluating mining operations’ long-lived assets for recoverability, estimates of after-tax undiscounted future cash flows of FCX’s individual mining operations are used. An impairment is considered to exist if total estimated future cash flows on an undiscounted basis are less than the carrying amount of the asset. Once it is determined that an impairment exists, an impairment loss is measured as the amount by which the asset carrying value exceeds its fair value. As quoted market prices are unavailable for FCX’s individual mining operations, fair value is determined through the use of discounted estimated future cash flows. Estimated cash flows used to assess recoverability of long-lived assets and measure the fair value of FCX’s mining operations are derived from current business plans, which are developed using near-term price forecasts reflective of the current price environment and management’s projections for long-term average metal prices. Estimates of future cash flows also include estimates of commodity-based and other input costs; proven and probable mineral reserve estimates, including any costs to develop the reserves and the timing of producing the reserves; and the use of appropriate escalation and discount rates. FCX believes its estimates and models used to determine fair value are similar to what a market participant would use. | ||||||||||||
Basis of Presentation | Basis of Presentation. Effective July 14, 2014, Freeport-McMoRan Copper & Gold Inc. changed its name to Freeport-McMoRan Inc. (FCX) to simplify the corporate name and better reflect FCX's expanded portfolio of assets. The consolidated financial statements of FCX include the accounts of those subsidiaries where it directly or indirectly has more than 50 percent of the voting rights and has the right to control significant management decisions. The most significant entities that FCX consolidates include its 90.64 percent-owned subsidiary PT Freeport Indonesia (PT-FI), and the following wholly owned subsidiaries: Freeport Minerals Corporation (FMC, formerly Freeport-McMoRan Corporation), Atlantic Copper, S.L.U. (Atlantic Copper) and FCX Oil & Gas Inc. (FM O&G). | ||||||||||||
FCX acquired mining assets in North America, South America and Africa when it acquired Phelps Dodge Corporation (now known as FMC) in 2007. FCX acquired oil and gas operations when it acquired Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR), collectively known as FM O&G, on May 31, 2013, and June 3, 2013, respectively. The results included in these financial statements for the year ended December 31, 2013, include PXP's results beginning June 1, 2013, and MMR's results beginning June 4, 2013 (refer to Note 2 for further discussion). | |||||||||||||
FCX’s unincorporated joint ventures with Rio Tinto plc (Rio Tinto) and Sumitomo Metal Mining Arizona, Inc. (Sumitomo) are reflected using the proportionate consolidation method (refer to Note 3 for further discussion). Investments in unconsolidated companies owned 20 percent or more are recorded using the equity method. Investments in companies owned less than 20 percent, and for which FCX does not exercise significant influence, are carried at cost. | |||||||||||||
Business Segments | Business Segments. FCX has organized its operations into six primary divisions – North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines and United States (U.S.) oil and gas operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis for its mining operations. Therefore, FCX concluded that its operating segments include individual mines or operations relative to its mining operations. For oil and gas operations, FCX determines its operating segments on a country-by-country basis. Operating segments that meet certain financial thresholds are reportable segments. Refer to Note 16 for further discussion. | ||||||||||||
Use of Estimates | Use of Estimates. The preparation of FCX’s financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include reserve estimation (minerals, and oil and natural gas); timing of transfers of oil and gas properties not subject to amortization into the full cost pool; asset lives for depreciation, depletion and amortization; environmental obligations; asset retirement obligations; estimates of recoverable copper in mill and leach stockpiles; deferred taxes and valuation allowances; reserves for contingencies and litigation; asset impairment, including estimates used to derive future cash flows associated with those assets; determination of fair value of assets acquired, liabilities assumed and redeemable noncontrolling interest, and recognition of goodwill and deferred taxes in connection with business combinations; pension benefits; and valuation of derivative instruments. Actual results could differ from those estimates. | ||||||||||||
Cash Equivalents | Cash Equivalents. Highly liquid investments purchased with maturities of three months or less are considered cash equivalents. | ||||||||||||
Inventories | Inventories. Inventories include mill and leach stockpiles, materials and supplies, and product inventories. Inventories are stated at the lower of weighted-average cost or market. Costs of finished goods and work-in-process (i.e., not materials and supplies or raw materials) inventories include labor and benefits, supplies, energy, depreciation, depletion, amortization, site overhead costs and other necessary costs associated with the extraction and processing of ore, including, depending on the process, mining, haulage, milling, concentrating, smelting, leaching, solution extraction, refining, roasting and chemical processing. Corporate general and administrative costs are not included in inventory costs. Refer to Note 4 for further discussion. | ||||||||||||
Mill and Leach Stockpiles. Mill and leach stockpiles are work-in-process inventories for FCX's mining operations. Both mill and leach stockpiles generally contain lower grade ores that have been extracted from an ore body and are available for copper recovery. Mill stockpiles contain sulfide ores and recovery of metal is through milling, concentrating, smelting and refining or, alternatively, by concentrate leaching. Leach stockpiles contain oxide ores and certain secondary sulfide ores and recovery of metal is through exposure to acidic solutions that dissolve contained copper and deliver it in solution to extraction processing facilities (i.e., solution extraction and electrowinning (SX/EW)). The recorded cost of mill and leach stockpiles includes mining and haulage costs incurred to deliver ore to stockpiles, depreciation, depletion, amortization and site overhead costs. Material is removed from the stockpiles at a weighted-average cost per pound. | |||||||||||||
Because it is generally impracticable to determine copper contained in mill and leach stockpiles by physical count, reasonable estimation methods are employed. The quantity of material delivered to mill and leach stockpiles is based on surveyed volumes of mined material and daily production records. Sampling and assaying of blasthole cuttings determine the estimated copper grade of the material delivered to mill and leach stockpiles. | |||||||||||||
Expected copper recovery rates for mill stockpiles are determined by metallurgical testing. The recoverable copper in mill stockpiles, once entered into the production process, can be produced into copper concentrate almost immediately. | |||||||||||||
Expected copper recovery rates for leach stockpiles are determined using small-scale laboratory tests, small- to large-scale column testing (which simulates the production-scale process), historical trends and other factors, including mineralogy of the ore and rock type. Total copper recovery in leach stockpiles can vary significantly from a low percentage to more than 90 percent depending on several variables, including processing methodology, processing variables, mineralogy and particle size of the rock. For newly placed material on active stockpiles, as much as 80 percent total copper recovery may be extracted during the first year, and the remaining copper may be recovered over many years. | |||||||||||||
Processes and recovery rates for mill and leach stockpiles are monitored regularly, and recovery rate estimates are adjusted periodically as additional information becomes available and as related technology changes. Adjustments to recovery rates will typically result in a future impact to the value of the material removed from the stockpiles at a revised weighted-average cost per pound of recoverable copper. | |||||||||||||
Product Inventories. Raw materials are primarily unprocessed concentrate at Atlantic Copper's smelting and refining operations. Work-in-process inventories primarily are copper concentrates at various stages of conversion into anodes and cathodes at Atlantic Copper's operations. Atlantic Copper’s in-process inventories are valued at the weighted-average cost of the material fed to the smelting and refining process plus in-process conversion costs. Finished goods for mining operations represent salable products (e.g., copper and molybdenum concentrates, copper anodes, copper cathodes, copper rod, copper wire, molybdenum oxide, high-purity molybdenum chemicals and other metallurgical products, and various cobalt products). Finished goods are valued based on the weighted-average cost of source material plus applicable conversion costs relating to associated process facilities. | |||||||||||||
Property, Plant, Equipment and Development Costs | Property, Plant, Equipment and Mining Development Costs. Property, plant, equipment and mining development costs are carried at cost. Mineral exploration costs, as well as drilling and other costs incurred for the purpose of converting mineral resources to proven and probable reserves or identifying new mineral resources at development or production stage properties, are charged to expense as incurred. Development costs are capitalized beginning after proven and probable mineral reserves have been established. Development costs include costs incurred resulting from mine pre-production activities undertaken to gain access to proven and probable reserves, including shafts, adits, drifts, ramps, permanent excavations, infrastructure and removal of overburden. Additionally, interest expense allocable to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. | ||||||||||||
Expenditures for replacements and improvements are capitalized. Costs related to periodic scheduled maintenance (i.e., turnarounds) are charged to expense as incurred. Depreciation for mining and milling life-of-mine assets, infrastructure and other common costs is determined using the unit-of-production (UOP) method based on total estimated recoverable proven and probable copper reserves (for primary copper mines) and proven and probable molybdenum reserves (for primary molybdenum mines). Development costs and acquisition costs for proven and probable mineral reserves that relate to a specific ore body are depreciated using the UOP method based on estimated recoverable proven and probable mineral reserves for the ore body benefited. Depreciation, depletion and amortization using the UOP method is recorded upon extraction of the recoverable copper or molybdenum from the ore body, at which time it is allocated to inventory cost and then included as a component of cost of goods sold. Other assets are depreciated on a straight-line basis over estimated useful lives of up to 39 years for buildings and three to 25 years for machinery and equipment, and mobile equipment. | |||||||||||||
Included in property, plant, equipment and mining development costs is value beyond proven and probable mineral reserves (VBPP), primarily resulting from FCX’s acquisition of FMC in 2007. The concept of VBPP has been interpreted differently by different mining companies. FCX’s VBPP is attributable to (i) mineralized material, which includes measured and indicated amounts, that FCX believes could be brought into production with the establishment or modification of required permits and should market conditions and technical assessments warrant, (ii) inferred mineral resources and (iii) exploration potential. | |||||||||||||
Carrying amounts assigned to VBPP are not charged to expense until the VBPP becomes associated with additional proven and probable mineral reserves and the reserves are produced or the VBPP is determined to be impaired. Additions to proven and probable mineral reserves for properties with VBPP will carry with them the value assigned to VBPP at the date acquired, less any impairment amounts. | |||||||||||||
Oil and Gas Properties | Oil and Gas Properties. FCX follows the full cost method of accounting specified by the U.S. Securities and Exchange Commission's (SEC) rules whereby all costs associated with oil and gas property acquisition, exploration and development activities are capitalized into a cost center on a country-by-country basis. Such costs include internal general and administrative costs, such as payroll and related benefits and costs directly attributable to employees engaged in acquisition, exploration and development activities. General and administrative costs associated with production, operations, marketing and general corporate activities are charged to expense as incurred. Capitalized costs, along with estimated future costs to develop proved reserves and asset retirement costs that are not already included in oil and gas properties, net of related salvage value, are amortized to expense under the UOP method using engineers' estimates of the related, by-country proved oil and natural gas reserves. | ||||||||||||
The costs of unproved oil and gas properties are excluded from amortization until the properties are evaluated. Costs are transferred into the amortization base on an ongoing basis as the properties are evaluated and proved oil and natural gas reserves are established or if impairment is determined. Unproved oil and gas properties are assessed periodically, at least annually, to determine whether impairment has occurred. FCX assesses oil and gas properties on an individual basis or as a group if properties are individually insignificant. The assessment considers the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization. The transfer of costs into the amortization base involves a significant amount of judgment and may be subject to changes over time based on drilling plans and results, geological and geophysical evaluations, the assignment of proved oil and natural gas reserves, availability of capital and other factors. Costs not subject to amortization consist primarily of capitalized costs incurred for undeveloped acreage and wells in progress pending determination, together with capitalized interest for these projects. The ultimate evaluation of the properties will occur over a period of several years. Interest costs totaling $88 million in 2014 and $69 million in 2013 were capitalized on oil and gas properties not subject to amortization and in the process of development. | |||||||||||||
Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless the reduction causes a significant change in proved reserves, which absent other factors, is generally described as a 25 percent or greater change, and significantly alters the relationship between capitalized costs and proved reserves attributable to a cost center, in which case a gain or loss is recognized. | |||||||||||||
Under the SEC full cost accounting rules, FCX reviews the carrying value of its oil and gas properties each quarter on a country-by-country basis. Under these rules, capitalized costs of oil and gas properties (net of accumulated depreciation, depletion and amortization, and related deferred income taxes) for each cost center may not exceed a “ceiling” equal to: | |||||||||||||
• | the present value, discounted at 10 percent, of estimated future net cash flows from the related proved oil and natural gas reserves, net of estimated future income taxes; plus | ||||||||||||
• | the cost of the related unproved properties not being amortized; plus | ||||||||||||
• | the lower of cost or estimated fair value of the related unproved properties included in the costs being amortized (net of related tax effects). | ||||||||||||
These rules require that FCX price its future oil and gas production at the twelve-month average of the first-day-of-the-month historical reference prices as adjusted for location and quality differentials. FCX's reference prices are West Texas Intermediate (WTI) for oil and the Henry Hub spot price for natural gas. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts, excluding derivatives. The reserve estimates exclude the effect of any crude oil and natural gas derivatives FCX has in place. The estimated future net cash flows also exclude future cash outflows associated with settling asset retirement obligations included in the net book value of the oil and gas properties. The rules require an impairment if the capitalized costs exceed this “ceiling.” | |||||||||||||
At September 30, 2014, and December 31, 2014, the net capitalized costs with respect to FCX's U.S. oil and gas properties exceeded the related ceiling; therefore, impairment charges of $3.7 billion were recorded in 2014 primarily because of higher capitalized costs and the lower twelve-month average of the first-day-of-the-month historical reference oil price at such dates. | |||||||||||||
Goodwill | Goodwill. Goodwill has an indefinite useful life and is not amortized, but rather is tested for impairment at least annually during the fourth quarter, unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a related reporting unit below its carrying value. Impairment occurs when the carrying amount of goodwill exceeds its implied fair value. FCX generally uses a discounted cash flow model to determine if the carrying value of a reporting unit, including goodwill, is less than the fair value of the reporting unit. FCX's approach to allocating goodwill includes the identification of the reporting unit it believes has contributed to the excess purchase price and includes consideration of the reporting unit's potential for future growth. Goodwill arose in 2013 with FCX's acquisitions of PXP and MMR, and was allocated to the U.S. oil and gas reporting unit. When a sale of oil and gas properties occurs, goodwill is allocated to that property based on the relationship of the fair value of the property sold to the total reporting unit's fair value. A significant sale of oil and gas properties may represent a triggering event that requires goodwill to be evaluated for impairment. Events affecting crude oil and natural gas prices caused a decrease in the fair value of the reporting unit in 2014, which resulted in the full impairment of goodwill (refer to Note 2 for further discussion). | ||||||||||||
Deferred Mining Costs | Deferred Mining Costs. Stripping costs (i.e., the costs of removing overburden and waste material to access mineral deposits) incurred during the production phase of a mine are considered variable production costs and are included as a component of inventory produced during the period in which stripping costs are incurred. Major development expenditures, including stripping costs to prepare unique and identifiable areas outside the current mining area for future production that are considered to be pre-production mine development, are capitalized and amortized using the UOP method based on estimated recoverable proven and probable reserves for the ore body benefited. However, where a second or subsequent pit or major expansion is considered to be a continuation of existing mining activities, stripping costs are accounted for as a current production cost and a component of the associated inventory. | ||||||||||||
Environmental Expenditures | Environmental Expenditures. Environmental expenditures are charged to expense or capitalized, depending upon their future economic benefits. Accruals for such expenditures are recorded when it is probable that obligations have been incurred and the costs can be reasonably estimated. Environmental obligations attributed to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) or analogous state programs are considered probable when a claim is asserted, or is probable of assertion, and FCX, or any of its subsidiaries, have been associated with the site. Other environmental remediation obligations are considered probable based on specific facts and circumstances. FCX’s estimates of these costs are based on an evaluation of various factors, including currently available facts, existing technology, presently enacted laws and regulations, remediation experience, whether or not FCX is a potentially responsible party (PRP) and the ability of other PRPs to pay their allocated portions. With the exception of those obligations assumed in the acquisition of FMC that were initially recorded at estimated fair values (refer to Note 12 for further discussion), environmental obligations are recorded on an undiscounted basis. Where the available information is sufficient to estimate the amount of the obligation, that estimate has been used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. Possible recoveries of some of these costs from other parties are not recognized in the consolidated financial statements until they become probable. Legal costs associated with environmental remediation (such as fees to outside law firms for work relating to determining the extent and type of remedial actions and the allocation of costs among PRPs) are included as part of the estimated obligation. | ||||||||||||
Environmental obligations assumed in the acquisition of FMC, which were initially recorded at fair value and estimated on a discounted basis, are accreted to full value over time through charges to interest expense. Adjustments arising from changes in amounts and timing of estimated costs and settlements may result in increases and decreases in these obligations and are calculated in the same manner as they were initially estimated. Unless these adjustments qualify for capitalization, changes in environmental obligations are charged to operating income when they occur. | |||||||||||||
FCX performs a comprehensive review of its environmental obligations annually and also reviews changes in facts and circumstances associated with these obligations at least quarterly. | |||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations. FCX records the fair value of estimated asset retirement obligations (AROs) associated with tangible long-lived assets in the period incurred. Retirement obligations associated with long-lived assets are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to cost of sales. In addition, asset retirement costs (ARCs) are capitalized as part of the related asset’s carrying value and are depreciated over the asset’s respective useful life. | ||||||||||||
For mining operations, reclamation costs for disturbances are recognized as an ARO and as a related ARC (included in property, plant, equipment and mining development costs) in the period of the disturbance and depreciated primarily on a UOP basis. FCX’s AROs for mining operations consist primarily of costs associated with mine reclamation and closure activities. These activities, which are site specific, generally include costs for earthwork, revegetation, water treatment and demolition (refer to Note 12 for further discussion). | |||||||||||||
For oil and gas properties, the fair value of the legal obligation is recognized as an ARO and as a related ARC(included in oil and gas properties) in the period in which the well is drilled or acquired and is amortized on a UOP basis together with other capitalized costs. Substantially all of FCX’s oil and gas leases require that, upon termination of economic production, the working interest owners plug and abandon non-producing wellbores, remove platforms, tanks, production equipment and flow lines, and restore the wellsite (refer to Note 12 for further discussion). | |||||||||||||
At least annually, FCX reviews its ARO estimates for changes in the projected timing of certain reclamation and closure/restoration costs, changes in cost estimates and additional AROs incurred during the period. | |||||||||||||
Revenue Recognition | Revenue Recognition. FCX sells its products pursuant to sales contracts entered into with its customers. Revenue for all FCX’s products is recognized when title and risk of loss pass to the customer and when collectibility is reasonably assured. The passing of title and risk of loss to the customer are based on terms of the sales contract, generally upon shipment or delivery of product. | ||||||||||||
Revenues from FCX’s concentrate and cathode sales are recorded based on a provisional sales price or a final sales price calculated in accordance with the terms specified in the relevant sales contract. Revenues from concentrate sales are recorded net of treatment and all refining charges (including price participation, if applicable, as discussed below) and the impact of derivative contracts. Moreover, because a portion of the metals contained in copper concentrates is unrecoverable as a result of the smelting process, FCX’s revenues from concentrate sales are also recorded net of allowances based on the quantity and value of these unrecoverable metals. These allowances are a negotiated term of FCX’s contracts and vary by customer. Treatment and refining charges represent payments or price adjustments to smelters and refiners and are either fixed or, in certain cases, vary with the price of copper (referred to as price participation). | |||||||||||||
Under the long-established structure of sales agreements prevalent in the mining industry, copper contained in concentrate and cathode is generally provisionally priced at the time of shipment. The provisional prices are finalized in a specified future month (generally one to four months from the shipment date) based on quoted monthly average spot copper prices on the London Metal Exchange (LME) or the Commodity Exchange Inc. (COMEX), a division of the New York Mercantile Exchange (NYMEX). FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded to revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX prices, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrates or cathodes at the then-current LME or COMEX price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end forward prices, until the date of final pricing. | |||||||||||||
Gold sales are priced according to individual contract terms, generally the average London Bullion Market Association (London) price for a specified month near the month of shipment. | |||||||||||||
Substantially all of FCX’s 2014 molybdenum sales were priced based on prices published in Metals Week, Ryan’s Notes or Metal Bulletin, plus conversion premiums for products that undergo additional processing, such as ferromolybdenum and molybdenum chemical products. The majority of these sales use the average price of the previous month quoted by the applicable publication. FCX’s remaining molybdenum sales generally have pricing that is either based on the current month published prices or a fixed price. | |||||||||||||
PT-FI concentrate sales, Tenke Fungurume Mining S.A. (TFM or Tenke) metal sales and certain Sociedad Minera Cerro Verde S.A.A. (Cerro Verde) metal sales are subject to certain royalties, which are recorded as a reduction to revenues. In addition, PT-FI concentrate sales are also subject to export duties beginning in 2014, which are recorded as a reduction to revenues. Refer to Note 13 for further discussion. | |||||||||||||
Oil and gas revenue from FCX's interests in producing wells is recognized upon delivery and passage of title, net of any royalty interests or other profit interests in the produced product. Oil sales are primarily under contracts with prices based upon regional benchmarks. Approximately 40 percent of gas sales are priced monthly using industry recognized, published index pricing, and the remainder is priced daily on the spot market. Gas revenue is recorded using the sales method for gas imbalances. If FCX's sales of production volumes for a well exceed its portion of the estimated remaining recoverable reserves of the well, a liability is recorded. No receivables are recorded for those wells on which FCX has taken less than its ownership share of production unless the amount taken by other parties exceeds the estimate of their remaining reserves. There were no material gas imbalances at December 31, 2014. | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation. Compensation costs for share-based payments to employees are measured at fair value and charged to expense over the requisite service period for awards that are expected to vest. The fair value of stock options is determined using the Black-Scholes-Merton option valuation model. The fair value for stock-settled restricted stock units (RSUs) is based on FCX's stock price on the date of grant. Shares of common stock are issued at the vesting date for stock-settled RSUs. The fair value of the performance share units (PSUs) and the performance-based RSUs are determined using a Monte-Carlo simulation model. The fair value for liability-classified awards (i.e., cash-settled stock appreciation rights (SARs) and cash-settled RSUs) is remeasured each reporting period using the Black-Scholes-Merton option valuation model for SARs and FCX's stock price for cash-settled RSUs. FCX has elected to recognize compensation costs for stock option awards and SARs that vest over several years on a straight-line basis over the vesting period, and for RSUs on the graded-vesting method over the vesting period. Refer to Note 10 for further discussion. | ||||||||||||
Earnings Per Share | Earnings Per Share. FCX’s basic net income per share of common stock was computed by dividing net income attributable to FCX common stockholders by the weighted-average shares of common stock outstanding during the year. Diluted net income per share of common stock was computed using the most dilutive of (a) the two-class method or (b) the treasury stock method. Under the two-class method, net income is allocated to each class of common stock and participating securities as if all of the earnings for the period had been distributed. FCX's participating securities consist of vested RSUs for which the underlying common shares are not yet issued and entitle holders to non-forfeitable dividends. | ||||||||||||
A reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share for the years ended December 31 follows : | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net (loss) income | $ | (745 | ) | $ | 3,441 | $ | 3,980 | ||||||
Net income attributable to noncontrolling interests | (523 | ) | (761 | ) | (939 | ) | |||||||
Preferred dividends on redeemable noncontrolling interest | (40 | ) | (22 | ) | — | ||||||||
Undistributed earnings allocable to participating securities | (3 | ) | — | — | |||||||||
Net (loss) income allocable to FCX common stockholders | $ | (1,311 | ) | $ | 2,658 | $ | 3,041 | ||||||
Basic weighted-average shares of common stock outstanding (millions) | 1,039 | 1,002 | 949 | ||||||||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) | — | a | 4 | a | 5 | a | |||||||
Diluted weighted-average shares of common stock outstanding (millions) | 1,039 | 1,006 | 954 | ||||||||||
Basic net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.65 | $ | 3.2 | ||||||
Diluted net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.64 | $ | 3.19 | ||||||
a. | Excludes shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive, with related amounts totaling approximately ten million for the year ended December 31, 2014, and one million for the years ended December 31, 2013 and 2012. | ||||||||||||
Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the year are excluded from the computation of diluted net income per share of common stock. Excluded stock options totaled 31 million with a weighted-average exercise price of $40.52 per option in 2014; 30 million with a weighted-average exercise price of $40.23 per option in 2013; and 17 million with a weighted-average exercise price of $44.73 per option in 2012. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of diluted earnings per share | A reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share for the years ended December 31 follows : | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net (loss) income | $ | (745 | ) | $ | 3,441 | $ | 3,980 | ||||||
Net income attributable to noncontrolling interests | (523 | ) | (761 | ) | (939 | ) | |||||||
Preferred dividends on redeemable noncontrolling interest | (40 | ) | (22 | ) | — | ||||||||
Undistributed earnings allocable to participating securities | (3 | ) | — | — | |||||||||
Net (loss) income allocable to FCX common stockholders | $ | (1,311 | ) | $ | 2,658 | $ | 3,041 | ||||||
Basic weighted-average shares of common stock outstanding (millions) | 1,039 | 1,002 | 949 | ||||||||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs (millions) | — | a | 4 | a | 5 | a | |||||||
Diluted weighted-average shares of common stock outstanding (millions) | 1,039 | 1,006 | 954 | ||||||||||
Basic net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.65 | $ | 3.2 | ||||||
Diluted net (loss) income per share attributable to FCX common stockholders | $ | (1.26 | ) | $ | 2.64 | $ | 3.19 | ||||||
a. | Excludes shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive, with related amounts totaling approximately ten million for the year ended December 31, 2014, and one million for the years ended December 31, 2013 and 2012. |
DISPOSITIONS_AND_ACQUISITIONS_1
DISPOSITIONS AND ACQUISITIONS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Acquisitions [Abstract] | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table provides net income before income taxes and net income attributable to FCX common stockholders for Candelaria/Ojos: | |||||||||||||||
January 1, 2014, | ||||||||||||||||
to | Years Ended December 31, | |||||||||||||||
3-Nov-14 | 2013 | 2012 | ||||||||||||||
Net income before income taxes | $ | 270 | $ | 689 | $ | 547 | ||||||||||
Net income attributable to FCX common stockholders | 144 | 341 | 304 | |||||||||||||
The following table provides balances of the major classes of assets and liabilities for Candelaria/Ojos at November 3, 2014: | ||||||||||||||||
Current assets | $ | 482 | ||||||||||||||
Long-term assets | 1,155 | |||||||||||||||
Current liabilities | 129 | |||||||||||||||
Long-term liabilities | 89 | |||||||||||||||
Noncontrolling interests | 242 | |||||||||||||||
Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable [Table Text Block] | Following is a summary of the $3.1 billion purchase price for MMR: | |||||||||||||||
Number of shares of MMR common stock acquired (millions) | 112.362 | a | ||||||||||||||
Cash consideration of $14.75 per share | $ | 14.75 | ||||||||||||||
Cash consideration paid by FCX | $ | 1,657 | ||||||||||||||
Employee stock-based awards | 63 | |||||||||||||||
Total | 1,720 | |||||||||||||||
Fair value of FCX's investment in 51 million shares of MMR common stock acquired on | ||||||||||||||||
May 31, 2013, through the acquisition of PXP | 854 | |||||||||||||||
Fair value of FCX's investment in MMR's 5.75% Convertible Perpetual Preferred Stock, Series 2 | 554 | |||||||||||||||
Total purchase price | $ | 3,128 | ||||||||||||||
a. | Excludes 51 million shares of MMR common stock owned by FCX through its acquisition of PXP on May 31, 2013. | |||||||||||||||
Following is a summary of the $6.6 billion purchase price for PXP: | ||||||||||||||||
Number of shares of PXP common stock acquired (millions) | 132.28 | |||||||||||||||
Exchange ratio of FCX common stock for each PXP share | 0.6531 | |||||||||||||||
86.392 | ||||||||||||||||
Shares of FCX common stock issued for certain PXP equity awards (millions) | 4.769 | |||||||||||||||
Total shares of FCX common stock issued (millions) | 91.161 | |||||||||||||||
Closing share price of FCX common stock at May 31, 2013 | $ | 31.05 | ||||||||||||||
FCX stock consideration | $ | 2,831 | ||||||||||||||
Cash consideration | 3,725 | a | ||||||||||||||
Employee stock-based awards, primarily cash-settled stock-based awards | 83 | |||||||||||||||
Total purchase price | $ | 6,639 | ||||||||||||||
a. | Cash consideration includes the payment of $25.00 in cash for each PXP share ($3.3 billion), cash paid in lieu of any fractional shares of FCX common stock, cash paid for certain equity awards ($7 million) and the value of the $3 per share PXP special cash dividend ($411 million) paid on May 31, 2013. | |||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final purchase price allocations for PXP and MMR: | |||||||||||||||
PXP | MMR | Eliminations | Total | |||||||||||||
Current assets | $ | 1,193 | $ | 98 | $ | — | $ | 1,291 | ||||||||
Oil and gas properties - full cost method: | ||||||||||||||||
Subject to amortization | 11,447 | 751 | — | 12,198 | ||||||||||||
Not subject to amortization | 9,401 | 1,711 | — | 11,112 | ||||||||||||
Property, plant and equipment | 261 | 1 | — | 262 | ||||||||||||
Investment in MMRa | 848 | — | (848 | ) | — | |||||||||||
Other assets | 12 | 382 | — | 394 | ||||||||||||
Current liabilities | (906 | ) | (174 | ) | — | (1,080 | ) | |||||||||
Debt (current and long-term) | (10,631 | ) | (620 | ) | — | (11,251 | ) | |||||||||
Deferred income taxesb | (3,917 | ) | — | — | (3,917 | ) | ||||||||||
Other long-term liabilities | (799 | ) | (262 | ) | — | (1,061 | ) | |||||||||
Redeemable noncontrolling interest | (708 | ) | (259 | ) | — | (967 | ) | |||||||||
Total fair value, excluding goodwill | 6,201 | 1,628 | (848 | ) | 6,981 | |||||||||||
Goodwill | 438 | 1,500 | — | 1,938 | ||||||||||||
Total purchase price | $ | 6,639 | $ | 3,128 | $ | (848 | ) | $ | 8,919 | |||||||
a. | PXP owned 51 million shares of MMR common stock, which were eliminated in FCX's consolidated balance sheet at the acquisition date of MMR. | |||||||||||||||
b. | Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 38 percent tax rate, which reflected a 35 percent federal statutory rate and a 3 percent weighted-average of the applicable statutory state tax rates (net of federal benefit). | |||||||||||||||
Schedule of Goodwill [Table Text Block] | A summary of changes in the carrying amount of goodwill follows: | |||||||||||||||
Balance at January 1, 2013 | $ | — | ||||||||||||||
Acquisitions of PXP and MMR | 1,916 | |||||||||||||||
Balance at December 31, 2013 | 1,916 | |||||||||||||||
Purchase accounting adjustments | 22 | |||||||||||||||
Disposal of Eagle Ford (see above) | (221 | ) | ||||||||||||||
Impairment charge | (1,717 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | — | ||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The historical consolidated financial information has been adjusted to reflect factually supportable items that are directly attributable to the acquisitions. | |||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Revenues | $ | 23,075 | $ | 22,713 | ||||||||||||
Operating income | 6,267 | 6,815 | ||||||||||||||
Income from continuing operations | 3,626 | 4,277 | ||||||||||||||
Net income attributable to FCX common stockholders | 2,825 | 3,301 | ||||||||||||||
Net income per share attributable to FCX common stockholders: | ||||||||||||||||
Basic | $ | 2.71 | $ | 3.17 | ||||||||||||
Diluted | 2.7 | 3.16 | ||||||||||||||
INVENTORIES_INCLUDING_LONGTERM1
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories, Including Long Term Mill and Leach Stockpiles [Abstract] | |||||||||
Components of Inventories | The components of inventories follow: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Current inventories: | |||||||||
Mill stockpiles | $ | 86 | $ | 91 | |||||
Leach stockpiles | 1,828 | 1,614 | a | ||||||
Total current mill and leach stockpiles | $ | 1,914 | $ | 1,705 | |||||
Total materials and supplies, netb | $ | 1,886 | $ | 1,730 | |||||
Raw materials (primarily concentrates) | $ | 288 | $ | 238 | |||||
Work-in-process | 174 | 199 | |||||||
Finished goods | 1,099 | 1,146 | |||||||
Total product inventories | $ | 1,561 | $ | 1,583 | |||||
Long-term inventories: | |||||||||
Mill stockpiles | $ | 360 | $ | 698 | |||||
Leach stockpiles | 1,819 | 1,688 | |||||||
Total long-term mill and leach stockpilesc | $ | 2,179 | $ | 2,386 | |||||
a. | Amount is net of a $76 million charge associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles. | ||||||||
b. | Materials and supplies inventory was net of obsolescence reserves totaling $20 million at December 31, 2014, and $24 million at December 31, 2013. | ||||||||
c. | Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
PROPERTY_PLANT_EQUIPMENT_AND_M1
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, Plant, Equipment and Mining Development Costs, Net | The components of net property, plant, equipment and mining development costs follow: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Proven and probable mineral reserves | $ | 4,651 | $ | 4,651 | ||||
VBPP | 1,042 | 1,044 | ||||||
Mining development and other | 4,712 | 4,335 | ||||||
Buildings and infrastructure | 5,100 | 4,334 | ||||||
Machinery and equipment | 11,251 | 10,379 | ||||||
Mobile equipment | 3,926 | 3,903 | ||||||
Construction in progress | 6,802 | 5,603 | ||||||
Property, plant, equipment and mining development costs | 37,484 | 34,249 | ||||||
Accumulated depreciation, depletion and amortization | (11,264 | ) | (10,207 | ) | ||||
Property, plant, equipment and mining development costs, net | $ | 26,220 | $ | 24,042 | ||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Schedule of Other Assets [Table Text Block] | The components of other assets follow: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Disputed tax assessments:a | ||||||||
PT-FI | $ | 279 | $ | 255 | ||||
Cerro Verde | 232 | 72 | ||||||
Intangible assetsb | 334 | 380 | ||||||
Investments: | ||||||||
Assurance bondc | 115 | — | ||||||
PT Smeltingd | 107 | 71 | ||||||
Available-for-sale securities | 46 | 44 | ||||||
Other | 60 | 63 | ||||||
Legally restricted fundse | 172 | 392 | ||||||
Loan to a DRC public electric utility | 164 | 152 | ||||||
Debt issue costs | 141 | 107 | ||||||
Deferred drillship costs | 113 | — | ||||||
Long-term receivable for income tax refunds | 63 | 77 | ||||||
Loan to Gécamines (related party) | 37 | 34 | ||||||
Other | 214 | 151 | ||||||
Total other assets | $ | 2,077 | $ | 1,798 | ||||
a. | Refer to Note 12 for further discussion. | |||||||
b. | Intangible assets were net of accumulated amortization totaling $62 million at December 31, 2014, and $57 million at December 31, 2013. | |||||||
c. | Relates to PT-FI's commitment for smelter development in Indonesia at December 31, 2014 (refer to Note 13 for further discussion). | |||||||
d. | FCX's 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $24 million at December 31, 2014, and $58 million at December 31, 2013. | |||||||
e. | Includes $168 million for AROs related to properties in New Mexico at December 31, 2014, and a $210 million time deposit that secured a bank guarantee (until the time deposit was released as security for the bank guarantee in 2014) associated with the Cerro Verde royalty dispute and $158 million for AROs related to properties in New Mexico at December 31, 2013 (refer to Note 12 for further discussion). | |||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_L1
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||||||
Additional information regarding accounts payable and accrued liabilities | Additional information regarding accounts payable and accrued liabilities follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable | $ | 2,439 | $ | 2,144 | ||||
Salaries, wages and other compensation | 373 | 352 | ||||||
Accrued interesta | 166 | 210 | ||||||
Other accrued taxes | 137 | 142 | ||||||
Pension, postretirement, postemployment and other employee benefitsb | 106 | 161 | ||||||
Deferred revenue | 105 | 115 | ||||||
Oil and gas royalty and revenue payable | 76 | 169 | ||||||
Rio Tinto's share of joint venture cash flows | 29 | 33 | ||||||
Commodity derivative contracts | 43 | 205 | ||||||
Other | 179 | 177 | ||||||
Total accounts payable and accrued liabilities | $ | 3,653 | $ | 3,708 | ||||
a. | Third-party interest paid, net of capitalized interest, was $637 million in 2014, $397 million in 2013 and $111 million in 2012. | |||||||
b. | Refer to Note 9 for long-term portion. |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of debt instruments | ||||||||||||||||
Debt Instrument | Date | |||||||||||||||
6.125% Senior Notes due 2019 | June 15, 2016 | |||||||||||||||
6½% Senior Notes due 2020 | November 15, 2015 | |||||||||||||||
6.625% Senior Notes due 2021 | May 1, 2016 | |||||||||||||||
6.75% Senior Notes due 2022 | February 1, 2017 | |||||||||||||||
6⅞% Senior Notes due 2023 | February 15, 2018 | |||||||||||||||
The components of debt follow: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Bank term loan | $ | 3,050 | $ | 4,000 | ||||||||||||
Revolving credit facility | — | — | ||||||||||||||
Lines of credit | 474 | — | ||||||||||||||
Subsidiary credit facility | 425 | — | ||||||||||||||
Senior notes and debentures: | ||||||||||||||||
Issued by FCX: | ||||||||||||||||
1.40% Senior Notes due 2015 | — | 500 | ||||||||||||||
2.15% Senior Notes due 2017 | 500 | 500 | ||||||||||||||
2.30% Senior Notes due 2017 | 749 | — | ||||||||||||||
2.375% Senior Notes due 2018 | 1,500 | 1,500 | ||||||||||||||
3.100% Senior Notes due 2020 | 1,000 | 999 | ||||||||||||||
4.00% Senior Notes due 2021 | 598 | — | ||||||||||||||
3.55% Senior Notes due 2022 | 1,996 | 1,996 | ||||||||||||||
3.875% Senior Notes due 2023 | 1,999 | 1,999 | ||||||||||||||
4.55% Senior Notes due 2024 | 849 | — | ||||||||||||||
5.40% Senior Notes due 2034 | 796 | — | ||||||||||||||
5.450% Senior Notes due 2043 | 1,991 | 1,991 | ||||||||||||||
Issued by FM O&G: | ||||||||||||||||
6.125% Senior Notes due 2019 | 255 | 817 | ||||||||||||||
8.625% Senior Notes due 2019 | — | 447 | ||||||||||||||
7.625% Senior Notes due 2020 | — | 336 | ||||||||||||||
6½% Senior Notes due 2020 | 670 | 1,647 | ||||||||||||||
6.625% Senior Notes due 2021 | 284 | 659 | ||||||||||||||
6.75% Senior Notes due 2022 | 493 | 1,111 | ||||||||||||||
6⅞% Senior Notes due 2023 | 866 | 1,686 | ||||||||||||||
Issued by FMC: | ||||||||||||||||
71/8% Debentures due 2027 | 115 | 115 | ||||||||||||||
9½% Senior Notes due 2031 | 129 | 130 | ||||||||||||||
61/8% Senior Notes due 2034 | 116 | 115 | ||||||||||||||
Other (including equipment capital leases and other short-term borrowings) | 115 | 158 | ||||||||||||||
Total debt | 18,970 | 20,706 | ||||||||||||||
Less current portion of debt | (478 | ) | (312 | ) | ||||||||||||
Long-term debt | $ | 18,492 | $ | 20,394 | ||||||||||||
Schedule of extinguishment of debt | A summary of debt extinguishments during 2014 for senior notes resulting from redemptions and tender offers follows: | |||||||||||||||
Principal Amount | Purchase Accounting Fair Value Adjustments | Book Value | (Loss) Gain | |||||||||||||
1.40% Senior Notes due 2015 | $ | 500 | $ | — | $ | 500 | $ | (1 | ) | |||||||
6.125% Senior Notes due 2019 | 513 | 40 | 553 | (2 | ) | |||||||||||
8.625% Senior Notes due 2019 | 400 | 41 | 441 | 24 | ||||||||||||
7.625% Senior Notes due 2020 | 300 | 32 | 332 | 14 | ||||||||||||
6½% Senior Notes due 2020 | 883 | 79 | 962 | 10 | ||||||||||||
6.625% Senior Notes due 2021 | 339 | 31 | 370 | 3 | ||||||||||||
6.75% Senior Notes due 2022 | 551 | 57 | 608 | 8 | ||||||||||||
6⅞% Senior Notes due 2023 | 722 | 84 | 806 | 21 | ||||||||||||
$ | 4,208 | $ | 364 | $ | 4,572 | $ | 77 | |||||||||
OTHER_LIABILITIES_INCLUDING_EM1
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Liabilities, Including Employee Benefits [Abstract] | ||||||||||||||||
Additional information regarding other liabilities | Information regarding other liabilities follows: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Pension, postretirement, postemployment and other employment benefitsa | $ | 1,430 | $ | 1,225 | ||||||||||||
Reserve for uncertain tax positions | 68 | 87 | ||||||||||||||
Commodity derivative contracts | — | 115 | ||||||||||||||
Other | 363 | 263 | ||||||||||||||
Total other liabilities | $ | 1,861 | $ | 1,690 | ||||||||||||
a. | Refer to Note 7 for current portion. | |||||||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Before Taxes | After Taxes and Noncontrolling Interests | Before Taxes | After Taxes and Noncontrolling Interests | |||||||||||||
Prior service costs | $ | 28 | $ | 15 | $ | 32 | $ | 17 | ||||||||
Net actuarial loss | 749 | 456 | 542 | 326 | ||||||||||||
$ | 777 | $ | 471 | $ | 574 | $ | 343 | |||||||||
Schedule of defined benefit plans disclosure | The expected benefit payments for FCX’s and PT-FI’s pension plans follow: | |||||||||||||||
FCX | PT-FIa | |||||||||||||||
2015 | $ | 97 | $ | 20 | ||||||||||||
2016 | 155 | 9 | ||||||||||||||
2017 | 103 | 16 | ||||||||||||||
2018 | 107 | 20 | ||||||||||||||
2019 | 110 | 24 | ||||||||||||||
2020 through 2024 | 603 | 172 | ||||||||||||||
a. | Based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar. | |||||||||||||||
FCX uses a measurement date of December 31 for its plans. Information for those plans where the accumulated benefit obligations exceed the fair value of plan assets follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Projected benefit obligation | $ | 2,221 | $ | 2,180 | ||||||||||||
Accumulated benefit obligation | 2,090 | 1,933 | ||||||||||||||
Fair value of plan assets | 1,433 | 1,490 | ||||||||||||||
Information on the FCX (including FMC’s plans and FCX’s SERP plans) and PT-FI plans as of December 31 follows: | ||||||||||||||||
FCX | PT-FI | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning | ||||||||||||||||
of year | $ | 1,871 | $ | 1,954 | $ | 259 | $ | 240 | ||||||||
Service cost | 30 | 30 | 22 | 20 | ||||||||||||
Interest cost | 92 | 77 | 23 | 14 | ||||||||||||
Actuarial losses (gains) | 278 | (103 | ) | 30 | 13 | |||||||||||
Plan amendment | — | — | — | 33 | ||||||||||||
Foreign exchange (gains) losses | (2 | ) | 1 | (7 | ) | (53 | ) | |||||||||
Benefits paid | (90 | ) | (88 | ) | (9 | ) | (8 | ) | ||||||||
Benefit obligation at end of year | 2,179 | 1,871 | 318 | 259 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at | ||||||||||||||||
beginning of year | 1,350 | 1,300 | 124 | 130 | ||||||||||||
Actual return on plan assets | 151 | 112 | 20 | (3 | ) | |||||||||||
Employer contributionsa | 6 | 26 | 55 | 35 | ||||||||||||
Foreign exchange losses | (1 | ) | — | (5 | ) | (30 | ) | |||||||||
Benefits paid | (90 | ) | (88 | ) | (9 | ) | (8 | ) | ||||||||
Fair value of plan assets at end | ||||||||||||||||
of year | 1,416 | 1,350 | 185 | 124 | ||||||||||||
Funded status | $ | (763 | ) | $ | (521 | ) | $ | (133 | ) | $ | (135 | ) | ||||
Accumulated benefit obligation | $ | 2,048 | $ | 1,742 | $ | 168 | $ | 141 | ||||||||
Weighted-average assumptions | ||||||||||||||||
used to determine benefit obligations: | ||||||||||||||||
Discount rate | 4.1 | % | 5 | % | 8.25 | % | 9 | % | ||||||||
Rate of compensation increase | 3.25 | % | 3.75 | % | 9 | % | 9 | % | ||||||||
Balance sheet classification of | ||||||||||||||||
funded status: | ||||||||||||||||
Other assets | $ | 8 | $ | 8 | $ | — | $ | — | ||||||||
Accounts payable and | ||||||||||||||||
accrued liabilities | (4 | ) | (4 | ) | — | — | ||||||||||
Other liabilities | (767 | ) | (525 | ) | (133 | ) | (135 | ) | ||||||||
Total | $ | (763 | ) | $ | (521 | ) | $ | (133 | ) | $ | (135 | ) | ||||
a. | Employer contributions for 2015 are expected to approximate $98 million for the FCX plans and $20 million for the PT-FI plan (based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar). | |||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions:a | ||||||||||||||||
Discount rate | 5 | % | 4.1 | % | 4.6 | % | ||||||||||
Expected return on plan assets | 7.5 | % | 7.5 | % | 7.5 | % | ||||||||||
Rate of compensation increase | 3.75 | % | 3.75 | % | 3.75 | % | ||||||||||
Service cost | $ | 30 | $ | 30 | $ | 27 | ||||||||||
Interest cost | 92 | 77 | 79 | |||||||||||||
Expected return on plan assets | (98 | ) | (95 | ) | (86 | ) | ||||||||||
Amortization of prior service credit | (1 | ) | — | (1 | ) | |||||||||||
Amortization of net actuarial losses | 28 | 38 | 33 | |||||||||||||
Net periodic benefit cost | $ | 51 | $ | 50 | $ | 52 | ||||||||||
a. | The assumptions shown relate only to the FMC plans. | |||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions: | ||||||||||||||||
Discount rate | 9 | % | 6.25 | % | 7 | % | ||||||||||
Expected return on plan assets | 7.75 | % | 7.5 | % | 9.25 | % | ||||||||||
Rate of compensation increase | 9 | % | 8 | % | 8 | % | ||||||||||
Service cost | $ | 22 | $ | 20 | $ | 17 | ||||||||||
Interest cost | 23 | 14 | 14 | |||||||||||||
Expected return on plan assets | (10 | ) | (10 | ) | (9 | ) | ||||||||||
Amortization of prior service cost | 3 | — | 1 | |||||||||||||
Amortization of net actuarial loss | 8 | 8 | 7 | |||||||||||||
Net periodic benefit cost | $ | 46 | $ | 32 | $ | 30 | ||||||||||
Schedule of fair value of financial assets for pension and postretirement benefits | A summary of the fair value hierarchy for pension plan assets associated with the FCX plans follows: | |||||||||||||||
Fair Value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Commingled/collective funds: | ||||||||||||||||
Global equity | $ | 487 | $ | — | $ | 487 | $ | — | ||||||||
Global fixed income securities | 106 | — | 106 | — | ||||||||||||
Fixed income securities | 99 | — | 99 | — | ||||||||||||
U.S. small-cap equity | 69 | — | 69 | — | ||||||||||||
U.S. real estate securities | 54 | — | 54 | — | ||||||||||||
Real estate property | 54 | — | — | 54 | ||||||||||||
Short-term investments | 8 | — | 8 | — | ||||||||||||
Open-ended mutual funds: | ||||||||||||||||
Emerging markets equity | 38 | 38 | — | — | ||||||||||||
Mutual funds: | ||||||||||||||||
Emerging markets equity | 25 | 25 | — | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds | 244 | — | 244 | — | ||||||||||||
Corporate bonds | 148 | — | 148 | — | ||||||||||||
Private equity investments | 39 | — | — | 39 | ||||||||||||
Other investments | 35 | — | 35 | — | ||||||||||||
Total investments | 1,406 | $ | 63 | $ | 1,250 | $ | 93 | |||||||||
Cash and receivables | 19 | |||||||||||||||
Payables | (9 | ) | ||||||||||||||
Total pension plan net assets | $ | 1,416 | ||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Commingled/collective funds: | ||||||||||||||||
Global equity | $ | 623 | $ | — | $ | 623 | $ | — | ||||||||
U.S. small-cap equity | 65 | — | 65 | — | ||||||||||||
Real estate property | 47 | — | — | 47 | ||||||||||||
U.S. real estate securities | 40 | — | 40 | — | ||||||||||||
Fixed income debt securities | 30 | — | 30 | — | ||||||||||||
Short-term investments | 5 | — | 5 | — | ||||||||||||
Open-ended mutual funds: | ||||||||||||||||
Government bonds | 43 | 43 | — | — | ||||||||||||
Emerging markets equity | 41 | 41 | — | — | ||||||||||||
Corporate bonds | 33 | 33 | — | — | ||||||||||||
Mutual funds: | ||||||||||||||||
Foreign bonds | 51 | 51 | — | — | ||||||||||||
Emerging markets equity | 26 | 26 | — | — | ||||||||||||
Emerging markets bond | 20 | 20 | — | — | ||||||||||||
Fixed income: | ||||||||||||||||
Government bonds | 198 | — | 198 | — | ||||||||||||
Corporate bonds | 52 | — | 52 | — | ||||||||||||
Private equity investments | 43 | — | — | 43 | ||||||||||||
Other investments | 29 | 1 | 28 | — | ||||||||||||
Total investments | 1,346 | $ | 215 | $ | 1,041 | $ | 90 | |||||||||
Cash and receivables | 18 | |||||||||||||||
Payables | (14 | ) | ||||||||||||||
Total pension plan net assets | $ | 1,350 | ||||||||||||||
A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows: | ||||||||||||||||
Fair Value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Common stocks | $ | 43 | $ | 43 | $ | — | $ | — | ||||||||
Government bonds | 27 | 27 | — | — | ||||||||||||
Mutual funds | 14 | 14 | — | — | ||||||||||||
Total investments | 84 | $ | 84 | $ | — | $ | — | |||||||||
Cash and receivablesa | 101 | |||||||||||||||
Total pension plan net assets | $ | 185 | ||||||||||||||
Fair Value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Common stocks | $ | 27 | $ | 27 | $ | — | $ | — | ||||||||
Government bonds | 23 | 23 | — | — | ||||||||||||
Mutual funds | 12 | 12 | — | — | ||||||||||||
Total investments | 62 | $ | 62 | $ | — | $ | — | |||||||||
Cash and receivablesa | 62 | |||||||||||||||
Total pension plan net assets | $ | 124 | ||||||||||||||
a. | Cash consists primarily of short-term time deposits. | |||||||||||||||
Summary of changes in the fair value of level 3 pension plan assets | A summary of changes in the fair value of FCX’s Level 3 pension plan assets for the years ended December 31 follows: | |||||||||||||||
Real | Private | Total | ||||||||||||||
Estate | Equity | |||||||||||||||
Property | Investments | |||||||||||||||
Balance at January 1, 2013 | $ | 41 | $ | 45 | $ | 86 | ||||||||||
Actual return on plan assets: | ||||||||||||||||
Realized gains | 1 | — | 1 | |||||||||||||
Net unrealized gains (losses) related to | ||||||||||||||||
assets still held at the end of the year | 6 | (1 | ) | 5 | ||||||||||||
Purchases | — | 3 | 3 | |||||||||||||
Sales | (1 | ) | — | (1 | ) | |||||||||||
Settlements, net | — | (4 | ) | (4 | ) | |||||||||||
Balance at December 31, 2013 | 47 | 43 | 90 | |||||||||||||
Actual return on plan assets: | ||||||||||||||||
Realized gains | 2 | — | 2 | |||||||||||||
Net unrealized gains (losses) related to | ||||||||||||||||
assets still held at the end of the year | 6 | (1 | ) | 5 | ||||||||||||
Purchases | — | 1 | 1 | |||||||||||||
Sales | (1 | ) | — | (1 | ) | |||||||||||
Settlements, net | — | (4 | ) | (4 | ) | |||||||||||
Balance at December 31, 2014 | $ | 54 | $ | 39 | $ | 93 | ||||||||||
STOCKHOLDERS_EQUITY_AND_STOCKB1
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of changes in the balances of each component of accumulated other comprehensive loss, net of tax follows: | |||||||||||||||
Unrealized Losses on Securities | Translation Adjustment | Defined Benefit Plans | Total | |||||||||||||
Balance at January 1, 2012 | $ | (4 | ) | $ | 6 | $ | (467 | ) | $ | (465 | ) | |||||
Amounts arising during the perioda,b,c,d | — | (1 | ) | (66 | ) | (67 | ) | |||||||||
Amounts reclassifiede | — | — | 26 | 26 | ||||||||||||
Balance at December 31, 2012 | (4 | ) | 5 | (507 | ) | (506 | ) | |||||||||
Amounts arising during the perioda,b,c | (1 | ) | — | 67 | 66 | |||||||||||
Amounts reclassifiede | — | 5 | 30 | 35 | ||||||||||||
Balance at December 31, 2013 | (5 | ) | 10 | (410 | ) | (405 | ) | |||||||||
Amounts arising during the perioda,b,c,d | (1 | ) | — | (162 | ) | (163 | ) | |||||||||
Amounts reclassifiede | — | — | 24 | 24 | ||||||||||||
Balance at December 31, 2014 | $ | (6 | ) | $ | 10 | $ | (548 | ) | $ | (544 | ) | |||||
a. | Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(106) million for 2012, $126 million for 2013 and $(252) million for 2014. The year 2013 also included $33 million for prior service costs. | |||||||||||||||
b. | Includes foreign exchange gains (losses), net of noncontrolling interest, totaling $3 million for 2012, $11 million for 2013 and $1 million for 2014. | |||||||||||||||
c. | Includes tax benefits (provision) totaling $39 million for 2012, $(37) million for 2013 and $94 million for 2014. | |||||||||||||||
d. | Includes adjustments to deferred tax valuation allowance of $1 million for 2012 and $5 million for 2014. | |||||||||||||||
e. | Includes amortization primarily related to actuarial losses that were net of taxes of $15 million for 2012, $17 million for 2013 and $14 million for 2014. | |||||||||||||||
Compensation costs charged against earnings | Compensation cost charged against earnings for stock-based awards for the years ended December 31 follows: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Selling, general and administrative expenses | $ | 79 | $ | 145 | $ | 77 | ||||||||||
Production and delivery | 28 | 28 | 23 | |||||||||||||
Capitalized costs | 23 | 13 | — | |||||||||||||
Total stock-based compensation | 130 | 186 | 100 | |||||||||||||
Less: capitalized costs | (23 | ) | (13 | ) | — | |||||||||||
Tax benefit and noncontrolling interests' share | (42 | ) | (66 | ) | (39 | ) | ||||||||||
Impact on net income | $ | 65 | $ | 107 | $ | 61 | ||||||||||
Summary of stock options and SARs outstanding and changes during the period | A summary of options and SARs outstanding as of December 31, 2014, including 1,413,153 SARs, and activity during the year ended December 31, 2014, follows: | |||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
Options and SARs | Average | Average | Intrinsic | |||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Per Share | Contractual | |||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 45,130,661 | $ | 35.39 | |||||||||||||
Granted | 3,276,000 | 31.01 | ||||||||||||||
Exercised | (1,950,130 | ) | 21.23 | |||||||||||||
Expired/Forfeited | (526,792 | ) | 37.51 | |||||||||||||
Balance at December 31 | 45,929,739 | 35.65 | 5.1 | $ | 38 | |||||||||||
Vested and exercisable at December 31 | 35,062,748 | $ | 35.15 | 4.2 | $ | 38 | ||||||||||
Weighted average assumptions used to value stock option awards | Information related to stock options during the years ended December 31 follows: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions used to value stock option awards: | ||||||||||||||||
Expected volatility | 36.6 | % | 48.9 | % | 52 | % | ||||||||||
Expected life of options (in years) | 4.92 | 4.66 | 4.54 | |||||||||||||
Expected dividend rate | 3.5 | % | 3.3 | % | 3.1 | % | ||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 | % | ||||||||||
Weighted-average grant date fair value (per share) | $ | 7.43 | $ | 10.98 | $ | 15.6 | ||||||||||
Intrinsic value of options exercised | $ | 17 | $ | 10 | $ | 34 | ||||||||||
Fair value of options vested | $ | 76 | $ | 101 | $ | 77 | ||||||||||
Summary Of Outstanding Restricted Stock Units | A summary of outstanding stock-settled PSUs and RSUs as of December 31, 2014, and activity during the year ended December 31, 2014, follows: | |||||||||||||||
Number of Awards | Weighted-Average Grant-Date Fair Value | Weighted- | Aggregate | |||||||||||||
Average | Intrinsic | |||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 4,255,476 | $ | 35.13 | |||||||||||||
Granted | 2,161,700 | 31.17 | ||||||||||||||
Vested | (436,610 | ) | 37.93 | |||||||||||||
Forfeited | (175,421 | ) | 31.46 | |||||||||||||
Balance at December 31 | 5,805,145 | 33.57 | 4.7 | $ | 128 | |||||||||||
Summary of Outstanding Cash Settled Restricted Stock Units | A summary of outstanding cash-settled RSUs as of December 31, 2014, and activity during the year ended December 31, 2014, follows: | |||||||||||||||
Number of Cash-Settled RSUs | Weighted-Average Grant-Date Fair Value | Weighted- | Aggregate | |||||||||||||
Average | Intrinsic | |||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Term (years) | ||||||||||||||||
Balance at January 1 | 2,219,812 | $ | 31.05 | |||||||||||||
Granted | 2,204,986 | 30.95 | ||||||||||||||
Vested | (544,048 | ) | 31.05 | |||||||||||||
Forfeited | (293,186 | ) | 31.01 | |||||||||||||
Balance at December 31 | 3,587,564 | 30.99 | 1.3 | $ | 84 | |||||||||||
Schedule of amounts related to exercises of stock options and stock appreciation rights and the vesting of restricted stock units and restricted stock awards | The following table includes amounts related to exercises of stock options and vesting of RSUs during the years ended December 31: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
FCX shares tendered to pay the exercise price | ||||||||||||||||
and/or the minimum required taxesa | 474,480 | 3,294,624 | 515,558 | |||||||||||||
Cash received from stock option exercises | $ | 12 | $ | 8 | $ | 15 | ||||||||||
Actual tax benefit realized for tax deductions | $ | 16 | $ | 8 | $ | 16 | ||||||||||
Amounts FCX paid for employee taxes | $ | 8 | $ | 105 | $ | 16 | ||||||||||
a. | Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender existing FCX shares to FCX to pay the exercise price and/or the minimum required taxes. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||
Income before income taxes and equity in affiliated companies' net earnings | Geographic sources of (losses) income before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 consist of the following: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
United States | $ | (2,997 | ) | $ | 1,104 | $ | 1,539 | ||||||||||||||||||||||
Foreign | 2,573 | 3,809 | 3,948 | ||||||||||||||||||||||||||
Total | $ | (424 | ) | $ | 4,913 | $ | 5,487 | ||||||||||||||||||||||
Provision for (benefit from) income taxes | FCX’s provision for income taxes for the years ended December 31 consists of the following: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Current income taxes: | |||||||||||||||||||||||||||||
Federal | $ | 281 | $ | 203 | $ | 238 | |||||||||||||||||||||||
State | 35 | 9 | 7 | ||||||||||||||||||||||||||
Foreign | 1,128 | 1,081 | 1,002 | ||||||||||||||||||||||||||
Total current | 1,444 | 1,293 | 1,247 | ||||||||||||||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||||||||||||||||
Federal | (606 | ) | 234 | 87 | |||||||||||||||||||||||||
State | (214 | ) | (35 | ) | 18 | ||||||||||||||||||||||||
Foreign | 33 | 346 | 363 | ||||||||||||||||||||||||||
Total deferred | (787 | ) | 545 | 468 | |||||||||||||||||||||||||
Adjustments | — | (199 | ) | a | (205 | ) | b,c | ||||||||||||||||||||||
Federal operating loss carryforwards | (333 | ) | d | (164 | ) | d | — | ||||||||||||||||||||||
Provision for income taxes | $ | 324 | $ | 1,475 | $ | 1,510 | |||||||||||||||||||||||
a. | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | ||||||||||||||||||||||||||||
b. | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. | ||||||||||||||||||||||||||||
c. | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | ||||||||||||||||||||||||||||
d. | Benefit from the use of federal operating loss carryforwards acquired as part of the oil and gas acquisitions. | ||||||||||||||||||||||||||||
Reconciliation of the U.S. federal statutory tax rate to effective income tax rate | A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows: | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||
U.S. federal statutory tax rate | $ | (149 | ) | 35 | % | $ | 1,720 | 35 | % | $ | 1,920 | 35 | % | ||||||||||||||||
Foreign tax credit limitation | 167 | (39 | ) | 117 | 2 | 110 | 2 | ||||||||||||||||||||||
Percentage depletion | (263 | ) | a | 62 | (223 | ) | (5 | ) | (263 | ) | (5 | ) | |||||||||||||||||
Withholding and other impacts on | |||||||||||||||||||||||||||||
foreign earnings | 161 | (38 | ) | 306 | 7 | (17 | ) | — | |||||||||||||||||||||
Effect of foreign rates different than the U.S. | |||||||||||||||||||||||||||||
federal statutory rate | (135 | ) | 32 | (223 | ) | (5 | ) | (204 | ) | (4 | ) | ||||||||||||||||||
Valuation allowance on minimum | |||||||||||||||||||||||||||||
tax credits | — | — | (190 | ) | (4 | ) | (9 | ) | — | ||||||||||||||||||||
Goodwill impairment | 601 | (142 | ) | — | — | — | — | ||||||||||||||||||||||
Goodwill transferred to full cost pool | 77 | (18 | ) | — | — | — | — | ||||||||||||||||||||||
State income taxes | (115 | ) | 27 | (43 | ) | — | 17 | — | |||||||||||||||||||||
Other items, net | (20 | ) | 5 | 11 | — | (44 | ) | — | |||||||||||||||||||||
Provision for income taxes | $ | 324 | b,c | (76 | )% | $ | 1,475 | d | 30 | % | $ | 1,510 | e | 28 | % | ||||||||||||||
a. | Includes a net charge of $16 million related to a change in U.S. federal income tax law. | ||||||||||||||||||||||||||||
b. | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | ||||||||||||||||||||||||||||
c. | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | ||||||||||||||||||||||||||||
d. | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | ||||||||||||||||||||||||||||
e. | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | ||||||||||||||||||||||||||||
Components of deferred tax assets and liabilities | The components of deferred taxes follow: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||||||
Foreign tax credits | $ | 2,306 | $ | 2,144 | |||||||||||||||||||||||||
Accrued expenses | 1,047 | 1,098 | |||||||||||||||||||||||||||
Minimum tax credits | 737 | 603 | |||||||||||||||||||||||||||
Net operating loss carryforwards | 590 | 925 | |||||||||||||||||||||||||||
Employee benefit plans | 422 | 443 | |||||||||||||||||||||||||||
Other | 734 | 557 | |||||||||||||||||||||||||||
Deferred tax assets | 5,836 | 5,770 | |||||||||||||||||||||||||||
Valuation allowances | (2,434 | ) | (2,487 | ) | |||||||||||||||||||||||||
Net deferred tax assets | 3,402 | 3,283 | |||||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||||||
Property, plant, equipment and mining development costs | (5,331 | ) | (4,887 | ) | |||||||||||||||||||||||||
Oil and gas properties | (3,392 | ) | (4,708 | ) | |||||||||||||||||||||||||
Undistributed earnings | (807 | ) | (936 | ) | |||||||||||||||||||||||||
Other | (185 | ) | (34 | ) | |||||||||||||||||||||||||
Total deferred tax liabilities | (9,715 | ) | (10,565 | ) | |||||||||||||||||||||||||
Net deferred tax liabilities | $ | (6,313 | ) | $ | (7,282 | ) | |||||||||||||||||||||||
Reserve for unrecognized tax benefits, interest and penalties | A summary of the activities associated with FCX’s reserve for unrecognized tax benefits, interest and penalties follows: | ||||||||||||||||||||||||||||
Unrecognized | Interest | Penalties | |||||||||||||||||||||||||||
Tax Benefits | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 138 | $ | 31 | $ | — | |||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||
Prior year tax positions | 18 | * | * | ||||||||||||||||||||||||||
Current year tax positions | 14 | * | * | ||||||||||||||||||||||||||
Acquisition of PXP | 5 | * | * | ||||||||||||||||||||||||||
Interest and penalties | — | 7 | — | ||||||||||||||||||||||||||
Decreases: | |||||||||||||||||||||||||||||
Prior year tax positions | (37 | ) | * | * | |||||||||||||||||||||||||
Current year tax positions | — | * | * | ||||||||||||||||||||||||||
Settlements with tax authorities | — | * | * | ||||||||||||||||||||||||||
Lapse of statute of limitations | (28 | ) | * | * | |||||||||||||||||||||||||
Interest and penalties | — | (17 | ) | — | |||||||||||||||||||||||||
Balance at December 31, 2013 | 110 | 21 | — | ||||||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||
Prior year tax positions | 4 | * | * | ||||||||||||||||||||||||||
Current year tax positions | 11 | * | * | ||||||||||||||||||||||||||
Interest and penalties | — | 1 | — | ||||||||||||||||||||||||||
Decreases: | |||||||||||||||||||||||||||||
Prior year tax positions | (12 | ) | * | * | |||||||||||||||||||||||||
Current year tax positions | — | * | * | ||||||||||||||||||||||||||
Settlements with tax authorities | (9 | ) | * | * | |||||||||||||||||||||||||
Lapse of statute of limitations | — | * | * | ||||||||||||||||||||||||||
Interest and penalties | — | (7 | ) | — | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 104 | $ | 15 | $ | — | |||||||||||||||||||||||
* Amounts not allocated. | |||||||||||||||||||||||||||||
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 | 2007-2012 | 2013-2014 | |||||||||||||||||||||||||||
Indonesia | 2006-2008, 2011-2012 | 2010, 2013-2014 | |||||||||||||||||||||||||||
Peru | 2010 | 2011-2014 | |||||||||||||||||||||||||||
Chile | 2012-2013 | 2014 | |||||||||||||||||||||||||||
DRC | 2013 | 2012, 2014 |
CONTINGENCIES_Tables
CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Contingencies [Abstract] | ||||||||||||||
Environmental Loss Contingency Disclosure | A summary of changes in environmental obligations for the years ended December 31 follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 1,167 | $ | 1,222 | $ | 1,453 | ||||||||
Accretion expensea | 77 | 79 | 80 | |||||||||||
Additions | 16 | 73 | 70 | |||||||||||
Reductionsb | (6 | ) | (77 | ) | (182 | ) | ||||||||
Spending | (80 | ) | (130 | ) | (199 | ) | ||||||||
Balance at end of year | 1,174 | 1,167 | 1,222 | |||||||||||
Less current portion | (105 | ) | (121 | ) | (186 | ) | ||||||||
Long-term portion | $ | 1,069 | $ | 1,046 | $ | 1,036 | ||||||||
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. | |||||||||||||
Asset Retirement Obligation Disclosure | A summary of changes in FCX’s AROs for the years ended December 31 follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 2,328 | $ | 1,146 | $ | 921 | ||||||||
Liabilities assumed in the acquisitions of PXP and MMRa | — | 1,028 | — | |||||||||||
Liabilities incurred | 430 | b | 45 | 6 | ||||||||||
Settlements and revisions to cash flow estimates, net | 65 | 123 | 211 | |||||||||||
Accretion expense | 117 | 95 | 55 | |||||||||||
Dispositions | (61 | ) | — | — | ||||||||||
Spending | (99 | ) | (107 | ) | (47 | ) | ||||||||
Other | (11 | ) | (2 | ) | — | |||||||||
Balance at end of year | 2,769 | 2,328 | 1,146 | |||||||||||
Less current portion | (191 | ) | (115 | ) | (55 | ) | ||||||||
Long-term portion | $ | 2,578 | $ | 2,213 | $ | 1,091 | ||||||||
a. | The fair value of AROs assumed in the acquisitions of PXP and MMR ($741 million and $287 million, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of 2.5 percent, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from 1.3 percent to 6.3 percent. | |||||||||||||
b. | Primarily reflects revisions to the closure approach to reclaim an overburden stockpile in Indonesia. | |||||||||||||
Summary of Income Tax Contingencies [Table Text Block] | A summary of these assessments follows: | |||||||||||||
Tax Year | Tax Assessment | Penalty and Interest Assessment | Total | |||||||||||
2002 to 2005 | $ | 16 | $ | 49 | $ | 65 | ||||||||
2006 | 7 | 45 | 52 | |||||||||||
2007 | 12 | 18 | 30 | |||||||||||
2008 | 21 | 13 | 34 | |||||||||||
2009 | 59 | 49 | 108 | |||||||||||
2010 | 63 | 85 | 148 | a | ||||||||||
2014 | 5 | — | 5 | |||||||||||
$ | 183 | $ | 259 | $ | 442 | |||||||||
a. | The tax assessment for the year 2010 was issued in February 2015. | |||||||||||||
PT-FI has received assessments from the Indonesian tax authorities for additional taxes and interest related to various audit exceptions for income and other taxes. PT-FI has filed objections to the assessments because it believes it has properly determined and paid its taxes. A summary of these assessments follows: | ||||||||||||||
Tax Year | Tax Assessment | Interest Assessment | Total | |||||||||||
2005 | $ | 103 | $ | 49 | $ | 152 | ||||||||
2006 | 22 | 10 | 32 | |||||||||||
2007 | 91 | 44 | 135 | |||||||||||
2008 | 62 | 52 | 114 | |||||||||||
2011 | 56 | 13 | 69 | |||||||||||
2012 | 137 | — | 137 | |||||||||||
$ | 471 | $ | 168 | $ | 639 | |||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 gains (losses) 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: | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Copper futures and swap contracts: | ||||||||||||||||||||
Unrealized (losses) gains: | ||||||||||||||||||||
Derivative financial instruments | $ | (12 | ) | $ | 1 | $ | 15 | |||||||||||||
Hedged item – firm sales commitments | 12 | (1 | ) | (15 | ) | |||||||||||||||
Realized losses: | ||||||||||||||||||||
Matured derivative financial instruments | (9 | ) | (17 | ) | (2 | ) | ||||||||||||||
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 income before income taxes and equity in affiliated companies’ net earnings for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows: | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales contractsa | $ | (289 | ) | $ | (136 | ) | $ | 77 | ||||||||||||
Crude oil options and swapsa | 513 | (344 | ) | — | ||||||||||||||||
Natural gas swapsa | (8 | ) | 10 | — | — | |||||||||||||||
Copper forward contractsb | (4 | ) | 3 | 15 | ||||||||||||||||
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 the fair values of unsettled commodity derivative financial instruments follows: | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Commodity Derivative Assets: | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Copper futures and swap contractsa | $ | — | $ | 6 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales/purchase contracts | 15 | 63 | ||||||||||||||||||
Crude oil optionsb | 316 | — | ||||||||||||||||||
Total derivative assets | $ | 331 | $ | 69 | ||||||||||||||||
Commodity Derivative Liabilities: | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Copper futures and swap contractsa | $ | 7 | $ | — | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Embedded derivatives in provisional copper and gold | ||||||||||||||||||||
sales/purchase contracts | 93 | 16 | ||||||||||||||||||
Crude oil optionsb | — | 309 | ||||||||||||||||||
Natural gas swaps | — | 4 | ||||||||||||||||||
Copper forward contracts | — | 1 | ||||||||||||||||||
Total derivative liabilities | $ | 100 | $ | 330 | ||||||||||||||||
a. | FCX had paid $10 million to brokers at December 31, 2014, and $1 million at December 31, 2013, for margin requirements (recorded in other current assets). | |||||||||||||||||||
b. | Includes $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | |||||||||||||||||||
A summary of these unsettled commodity contracts that are offset in the balance sheet follows: | ||||||||||||||||||||
Assets at December 31, | Liabilities at December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gross amounts recognized: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | $ | 15 | $ | 63 | $ | 93 | $ | 16 | ||||||||||||
Crude oil and natural gas derivativesa | 316 | — | — | 313 | ||||||||||||||||
Copper derivatives | — | 6 | 7 | 1 | ||||||||||||||||
331 | 69 | 100 | 330 | |||||||||||||||||
Less gross amounts of offset: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | 1 | 10 | 1 | 10 | ||||||||||||||||
Crude oil and natural gas derivatives | — | — | — | — | ||||||||||||||||
Copper derivatives | — | — | — | — | ||||||||||||||||
1 | 10 | 1 | 10 | |||||||||||||||||
Net amounts presented in balance sheet: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Embedded derivatives on provisional | ||||||||||||||||||||
sales/purchase contracts | 14 | 53 | 92 | 6 | ||||||||||||||||
Crude oil and natural gas derivativesa | 316 | — | — | 313 | ||||||||||||||||
Copper derivatives | — | 6 | 7 | 1 | ||||||||||||||||
$ | 330 | $ | 59 | $ | 99 | $ | 320 | |||||||||||||
Balance sheet classification: | ||||||||||||||||||||
Trade accounts receivable | $ | 5 | $ | 53 | $ | 56 | $ | — | ||||||||||||
Other current assets | 316 | 6 | — | — | ||||||||||||||||
Accounts payable and accrued liabilities | 9 | — | 43 | 205 | ||||||||||||||||
Other liabilities | — | — | — | 115 | ||||||||||||||||
$ | 330 | $ | 59 | $ | 99 | $ | 320 | |||||||||||||
a. | Includes only crude oil derivatives at December 31, 2014. | |||||||||||||||||||
Schedule of Derivative Instruments | At December 31, 2014, the outstanding crude oil option contracts, which settle monthly and cover approximately 31 million barrels in 2015, follow: | |||||||||||||||||||
Average Price (per barrel)a | ||||||||||||||||||||
Period | Instrument Type | Daily Volumes (thousand barrels) | Floor | Floor Limit | Weighted-Average Deferred Premium | Index | ||||||||||||||
(per barrel) | ||||||||||||||||||||
2015 | ||||||||||||||||||||
January - December | Put optionsb | 84 | $ | 90 | $ | 70 | $ | 6.89 | Brent | |||||||||||
a. | The average strike prices do not reflect any premiums to purchase the put options. | |||||||||||||||||||
b. | If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received. | |||||||||||||||||||
A summary of FCX’s embedded derivatives at December 31, 2014, follows: | ||||||||||||||||||||
Open | Average Price | Maturities | ||||||||||||||||||
Per Unit | ||||||||||||||||||||
Positions | Contract | Market | Through | |||||||||||||||||
Embedded derivatives in provisional sales contracts: | ||||||||||||||||||||
Copper (millions of pounds) | 574 | $ | 3.02 | $ | 2.86 | May-15 | ||||||||||||||
Gold (thousands of ounces) | 178 | 1,207 | 1,200 | Apr-15 | ||||||||||||||||
Embedded derivatives in provisional purchase contracts: | ||||||||||||||||||||
Copper (millions of pounds) | 101 | 3.01 | 2.87 | Apr-15 | ||||||||||||||||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | A summary of the changes in the fair value of FCX's most significant Level 3 instruments, crude oil options, follows: | |||||||||||||||||||
Fair value at January 1, 2013 | $ | — | ||||||||||||||||||
Crude oil options assumed in the PXP acquisition | (83 | ) | ||||||||||||||||||
Net realized losses | (38 | ) | a | |||||||||||||||||
Net unrealized losses included in earnings related to liabilities still held at the end of the period | (230 | ) | b | |||||||||||||||||
Settlement payments | 42 | |||||||||||||||||||
Fair value at December 31, 2013 | $ | (309 | ) | |||||||||||||||||
Net realized losses | (42 | ) | a | |||||||||||||||||
Net unrealized gains included in earnings related to assets still held at the end of the period | 430 | b | ||||||||||||||||||
Settlement payments | 237 | |||||||||||||||||||
Fair value at December 31, 2014 | $ | 316 | ||||||||||||||||||
a. | Includes net realized losses of $37 million recorded in revenues in 2013 and $41 million in 2014, and $1 million of interest expense associated with deferred premiums in 2013 and 2014. | |||||||||||||||||||
b. | Includes unrealized losses (gains) of $228 million recorded in revenues in 2013 and $(432) million in 2014, and $2 million of interest expense associated with deferred premiums in 2013 and 2014. | |||||||||||||||||||
Fair Value Measurement Inputs Disclosure | A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable follows: | |||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investment securities:a,b,c | ||||||||||||||||||||
U.S. core fixed income fund | $ | 23 | $ | 23 | $ | — | $ | 23 | $ | — | ||||||||||
Money market funds | 20 | 20 | 20 | — | — | |||||||||||||||
Equity securities | 3 | 3 | 3 | — | — | |||||||||||||||
Total | 46 | 46 | 23 | 23 | — | |||||||||||||||
Legally restricted funds:a,b,d | ||||||||||||||||||||
U.S. core fixed income fund | 52 | 52 | — | 52 | — | |||||||||||||||
Government bonds and notes | 39 | 39 | — | 39 | — | |||||||||||||||
Corporate bonds | 27 | 27 | — | 27 | — | |||||||||||||||
Government mortgage-backed securities | 25 | 25 | — | 25 | — | |||||||||||||||
Asset-backed securities | 17 | 17 | — | 17 | — | |||||||||||||||
Money market funds | 11 | 11 | 11 | — | — | |||||||||||||||
Municipal bonds | 1 | 1 | — | 1 | — | |||||||||||||||
Total | 172 | 172 | 11 | 161 | — | |||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross asset position | 15 | 15 | — | 15 | — | |||||||||||||||
Crude oil options | 316 | 316 | — | — | 316 | |||||||||||||||
Total | 331 | 331 | — | 15 | 316 | |||||||||||||||
Total assets | $ | 549 | $ | 34 | $ | 199 | $ | 316 | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross liability position | $ | 93 | $ | 93 | $ | — | $ | 93 | $ | — | ||||||||||
Copper futures and swap contracts | 7 | 7 | 6 | 1 | — | |||||||||||||||
Total | 100 | 100 | 6 | 94 | — | |||||||||||||||
Long-term debt, including current portionf | 18,970 | 18,735 | — | 18,735 | — | |||||||||||||||
Total liabilities | $ | 18,835 | $ | 6 | $ | 18,829 | $ | — | ||||||||||||
At December 31, 2013 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investment securities:a,b | ||||||||||||||||||||
U.S. core fixed income fund | $ | 21 | $ | 21 | $ | — | $ | 21 | $ | — | ||||||||||
Money market funds | 18 | 18 | 18 | — | — | |||||||||||||||
Equity securities | 5 | 5 | 5 | — | — | |||||||||||||||
Total | 44 | 44 | 23 | 21 | — | |||||||||||||||
Legally restricted funds:a,b,d | ||||||||||||||||||||
U.S. core fixed income fund | 48 | 48 | — | 48 | — | |||||||||||||||
Government mortgage-backed securities | 34 | 34 | — | 34 | — | |||||||||||||||
Corporate bonds | 28 | 28 | — | 28 | — | |||||||||||||||
Government bonds and notes | 28 | 28 | — | 28 | — | |||||||||||||||
Money market funds | 28 | 28 | 28 | — | — | |||||||||||||||
Asset-backed securities | 15 | 15 | — | 15 | — | |||||||||||||||
Municipal bonds | 1 | 1 | — | 1 | — | |||||||||||||||
Total | 182 | 182 | 28 | 154 | — | |||||||||||||||
Derivatives:a,e | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross asset position | 63 | 63 | — | 63 | — | |||||||||||||||
Copper futures and swap contracts | 6 | 6 | 5 | 1 | — | |||||||||||||||
Total | 69 | 69 | 5 | 64 | — | |||||||||||||||
Total assets | $ | 295 | $ | 56 | $ | 239 | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||
Derivatives:a | ||||||||||||||||||||
Embedded derivatives in provisional sales/purchase | ||||||||||||||||||||
contracts in a gross liability positione | $ | 16 | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||||
Crude oil optionse | 309 | 309 | — | — | 309 | |||||||||||||||
Natural gas swapse | 4 | 4 | — | 4 | — | |||||||||||||||
Copper forward contractse | 1 | 1 | 1 | — | — | |||||||||||||||
Plains Offshore warrantsg | 2 | 2 | — | — | 2 | |||||||||||||||
Total | 332 | 332 | 1 | 20 | 311 | |||||||||||||||
Long-term debt, including current portionf | 20,706 | 20,487 | — | 20,487 | — | |||||||||||||||
Total liabilities | $ | 20,819 | $ | 1 | $ | 20,507 | $ | 311 | ||||||||||||
a. | Recorded at fair value. | |||||||||||||||||||
b. | Current portion included in other current assets and long-term portion included in other assets. | |||||||||||||||||||
c. | Excludes $115 million of time deposits (which approximated fair value) at December 31, 2014 (included in other assets), associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note 13 for further discussion). | |||||||||||||||||||
d. | Excludes time deposits (which approximated fair value) of $17 million (included in other current assets) associated with a customs audit assessment and a reclamation guarantee at PT-FI at December 31, 2014, and $15 million included in other current assets and $210 million in other assets at December 31, 2013, associated with the Cerro Verde royalty dispute (refer to Note 12 for further discussion). | |||||||||||||||||||
e. | Refer to Note 14 for further discussion and balance sheet classifications. Crude oil options were net of $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | |||||||||||||||||||
f. | Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates. | |||||||||||||||||||
g. | Included in other liabilities. |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by product | FCX revenues attributable to the products it produced for the years ended December 31 follow: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refined copper products | $ | 9,451 | $ | 9,178 | $ | 9,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper in concentratesa | 3,366 | 5,328 | 4,589 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold | 1,584 | 1,656 | 1,741 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molybdenum | 1,207 | 1,110 | 1,187 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil | 4,233 | 2,310 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 1,597 | 1,339 | 794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,438 | $ | 20,921 | $ | 18,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Amounts are net of treatment and refining charges totaling $374 million for 2014, $400 million for 2013 and $311 million for 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets by geographic area | Information concerning financial data by geographic area follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets:a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 29,468 | $ | 32,969 | b | $ | 8,689 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indonesia | 6,961 | 5,799 | 5,127 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peru | 6,848 | 5,181 | 3,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Democratic Republic of Congo | 4,071 | 3,994 | 3,926 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 1,542 | c | 2,699 | 2,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 522 | 562 | 327 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 49,412 | $ | 51,204 | $ | 24,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Long-lived assets exclude deferred tax assets, intangible assets and goodwill. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Increased from 2012 primarily because of the PXP and MMR acquisitions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Decreased from 2013 primarily because of the sale of Candelaria/Ojos. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by geographic area of customer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 10,311 | $ | 9,418 | $ | 6,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indonesia | 1,792 | 1,651 | 2,054 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japan | 1,573 | 2,141 | 2,181 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spain | 1,208 | 1,223 | 1,581 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | 968 | 1,078 | 579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Switzerland | 800 | 1,098 | 731 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 687 | 754 | 704 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turkey | 484 | 341 | 345 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Korea | 383 | 297 | 525 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,232 | 2,920 | 3,025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 21,438 | $ | 20,921 | $ | 18,010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. | Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information By Segment | Financial Information by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 364 | $ | 336 | $ | 700 | $ | 1,282 | $ | 1,740 | $ | 3,022 | $ | 2,848 | a | $ | 1,437 | $ | — | $ | 4,626 | $ | 2,391 | $ | 1,704 | b | $ | 16,728 | $ | 4,710 | c | $ | — | $ | 21,438 | |||||||||||||||||||||||||||||
Intersegment | 1,752 | 3,164 | 4,916 | 206 | 304 | 510 | 223 | 121 | 587 | 29 | 21 | (6,407 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,287 | 2,153 | 3,440 | 741 | 1,198 | 1,939 | 1,988 | 770 | 328 | 4,633 | 2,356 | (4,789 | ) | 10,665 | 1,237 | 2 | 11,904 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 168 | 316 | 484 | 159 | 208 | 367 | 266 | 228 | 92 | 10 | 41 | 70 | 1,558 | 2,291 | 14 | 3,863 | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of oil and gas properties | — | — | — | — | — | — | — | — | — | — | — | — | — | 3,737 | — | 3,737 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 3 | 5 | 3 | 3 | 6 | 98 | 12 | — | — | 17 | 25 | 163 | 207 | 222 | 592 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 8 | 8 | — | — | — | — | — | — | — | — | 118 | 126 | — | — | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (5 | ) | (5 | ) | — | — | — | — | — | — | — | — | 123 | 118 | — | 1 | 119 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,717 | — | 1,717 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net gain on sales of assets | — | (14 | ) | (14 | ) | — | — | — | — | — | — | — | — | (703 | ) | d | (717 | ) | — | — | (717 | ) | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 659 | 1,039 | 1,698 | 585 | 635 | 1,220 | 719 | 548 | 167 | 12 | (2 | ) | 453 | 4,815 | (4,479 | ) | (239 | ) | 97 | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 3 | 1 | 4 | 1 | — | 1 | — | — | — | — | 13 | 84 | 102 | 241 | 287 | 630 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | — | — | — | 265 | 266 | 531 | 293 | 116 | — | — | — | 221 | d | 1,161 | — | (837 | ) | 324 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2014 | 3,780 | 5,611 | 9,391 | 7,513 | 1,993 | 9,506 | 8,626 | 5,073 | 2,095 | 235 | 898 | 1,319 | 37,143 | 20,834 | 818 | 58,795 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 826 | 143 | 969 | 1,691 | 94 | 1,785 | 948 | 159 | 54 | 4 | 17 | 52 | 3,988 | 3,205 | 22 | 7,215 | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 244 | $ | 326 | $ | 570 | $ | 1,473 | $ | 2,379 | $ | 3,852 | $ | 3,751 | a | $ | 1,590 | $ | — | $ | 4,995 | $ | 2,027 | $ | 1,516 | b | $ | 18,301 | $ | 2,616 | c | $ | 4 | $ | 20,921 | |||||||||||||||||||||||||||||
Intersegment | 1,673 | 2,940 | 4,613 | 360 | 273 | 633 | 336 | 47 | 522 | 27 | 14 | (6,192 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,233 | 2,033 | 3,266 | 781 | 1,288 | 2,069 | 2,309 | 754 | 317 | 4,990 | 2,054 | (4,608 | ) | 11,151 | 682 | 7 | 11,840 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 133 | 269 | 402 | 152 | 194 | 346 | 247 | 246 | 82 | 9 | 42 | 48 | 1,422 | 1,364 | 11 | 2,797 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 3 | 5 | 3 | 4 | 7 | 110 | 12 | — | — | 20 | 29 | 183 | 120 | 354 | 657 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | — | 5 | 5 | — | — | — | 1 | — | — | — | — | 193 | 199 | — | 11 | 210 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | — | (1 | ) | (1 | ) | — | — | — | — | — | — | — | — | 67 | 66 | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 549 | 957 | 1,506 | 897 | 1,166 | 2,063 | 1,420 | 625 | 123 | 23 | (75 | ) | e | (405 | ) | 5,280 | 450 | (379 | ) | 5,351 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 3 | 1 | 4 | 2 | 1 | 3 | 12 | 2 | — | — | 16 | 80 | 117 | 181 | 220 | 518 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 316 | 404 | 720 | 603 | 131 | — | — | — | — | 1,454 | — | 21 | f | 1,475 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2013 | 3,110 | 5,810 | 8,920 | 6,584 | 3,996 | 10,580 | 7,437 | 4,849 | 2,107 | 239 | 1,039 | 1,003 | 36,174 | 26,252 | 1,047 | 63,473 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 737 | 329 | 1,066 | 960 | 185 | 1,145 | 1,030 | 205 | 164 | 4 | 67 | 113 | 3,794 | 1,436 | 56 | 5,286 | ||||||||||||||||||||||||||||||||||||||||||||||||
a. | Includes PT-FI's sales to PT Smelting totaling $1.8 billion in 2014 and $1.7 billion in 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling $505 million in 2014 and $(334) million for the period from June 1, 2013, to December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
d. | Includes a gain of $671 million for the sale of Candelaria/Ojos and related provision for income taxes of $221 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
e. | Includes $50 million for shutdown costs associated with Atlantic Copper's scheduled 68-day maintenance turnaround, which was completed in fourth-quarter 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
f. | Includes $199 million of net benefits resulting from oil and gas acquisitions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mining Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Copper Mines | South America | Indonesia | Africa | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic | Other | Corporate, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Molyb- | Copper | Mining | U.S. | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Cerro | Other | denum | Rod & | Smelting | & Elimi- | Total | Oil & Gas | & Elimi- | FCX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Morenci | Mines | Total | Verde | Mines | Total | Grasberg | Tenke | Mines | Refining | & Refining | nations | Mining | Operations | nations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaffiliated customers | $ | 156 | $ | 46 | $ | 202 | $ | 1,767 | $ | 2,143 | $ | 3,910 | $ | 3,611 | a | $ | 1,349 | $ | — | $ | 4,989 | $ | 2,683 | $ | 1,259 | b | $ | 18,003 | $ | — | $ | 7 | $ | 18,010 | ||||||||||||||||||||||||||||||
Intersegment | 1,846 | 3,438 | 5,284 | 388 | 430 | 818 | 310 | 10 | 529 | 27 | 26 | (7,004 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Production and delivery | 1,076 | 1,857 | 2,933 | 813 | 1,301 | 2,114 | 2,349 | 615 | 320 | 4,993 | 2,640 | (5,585 | ) | 10,379 | — | 3 | 10,382 | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 122 | 238 | 360 | 139 | 148 | 287 | 212 | 176 | 59 | 9 | 42 | 27 | 1,172 | — | 7 | 1,179 | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2 | 2 | 4 | 3 | 3 | 6 | 121 | 6 | — | — | 19 | 18 | 174 | — | 257 | 431 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mining exploration and research expenses | 1 | — | 1 | — | — | — | — | — | — | — | — | 272 | 273 | — | 12 | 285 | ||||||||||||||||||||||||||||||||||||||||||||||||
Environmental obligations and shutdown costs | (11 | ) | (5 | ) | (16 | ) | — | — | — | — | — | — | — | — | (3 | ) | (19 | ) | — | (3 | ) | (22 | ) | |||||||||||||||||||||||||||||||||||||||||
Gain on insurance settlement | — | — | — | — | — | — | (59 | ) | — | — | — | — | — | (59 | ) | — | — | (59 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 812 | 1,392 | 2,204 | 1,200 | 1,121 | 2,321 | 1,298 | 562 | 150 | 14 | 8 | (474 | ) | 6,083 | — | (269 | ) | 5,814 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 1 | — | 1 | 7 | — | 7 | 5 | 1 | — | — | 12 | 81 | 107 | — | 79 | 186 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | 228 | c | 329 | 557 | 497 | 112 | — | — | — | — | 1,166 | — | 344 | 1,510 | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets at December 31, 2012 | 2,445 | 5,703 | 8,148 | 5,821 | 4,342 | 10,163 | 6,591 | 4,622 | 2,018 | 242 | 992 | 614 | 33,390 | — | 2,050 | 35,440 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 266 | 559 | 825 | 558 | 373 | 931 | 843 | 539 | 245 | 6 | 16 | 69 | 3,474 | — | 20 | 3,494 | ||||||||||||||||||||||||||||||||||||||||||||||||
a. | Includes PT-FI's sales to PT Smelting totaling $2.1 billion in 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c. | Includes a credit of $234 million for the reversal of a net deferred tax liability. |
GUARANTOR_FINANCIAL_STATEMENTS1
GUARANTOR FINANCIAL STATEMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1 | $ | 463 | $ | — | $ | 464 | ||||||||||
Accounts receivable | 234 | 2,230 | 2,671 | (2,572 | ) | 2,563 | ||||||||||||||
Other current assets | 89 | 404 | 5,525 | — | 6,018 | |||||||||||||||
Total current assets | 323 | 2,635 | 8,659 | (2,572 | ) | 9,045 | ||||||||||||||
Property, plant, equipment and mining development costs, net | 22 | 46 | 26,152 | — | 26,220 | |||||||||||||||
Oil and gas properties, net - full cost method: | ||||||||||||||||||||
Subject to amortization, less accumulated amortization | — | 3,296 | 5,907 | (16 | ) | 9,187 | ||||||||||||||
Not subject to amortization | — | 2,447 | 7,640 | — | 10,087 | |||||||||||||||
Investments in consolidated subsidiaries | 28,765 | 6,460 | 10,246 | (45,471 | ) | — | ||||||||||||||
Other assets | 9,012 | 3,947 | 4,084 | (12,787 | ) | 4,256 | ||||||||||||||
Total assets | $ | 38,122 | $ | 18,831 | $ | 62,688 | $ | (60,846 | ) | $ | 58,795 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | $ | 1,592 | $ | 560 | $ | 5,592 | $ | (2,572 | ) | $ | 5,172 | |||||||||
Long-term debt, less current portion | 15,028 | 3,874 | 8,902 | (9,312 | ) | 18,492 | ||||||||||||||
Deferred income taxes | 3,161 | a | — | 3,237 | — | 6,398 | ||||||||||||||
Environmental and asset retirement obligations, less current portion | — | 302 | 3,345 | — | 3,647 | |||||||||||||||
Other liabilities | 54 | 3,372 | 1,910 | (3,475 | ) | 1,861 | ||||||||||||||
Total liabilities | 19,835 | 8,108 | 22,986 | (15,359 | ) | 35,570 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 751 | — | 751 | |||||||||||||||
Equity: | ||||||||||||||||||||
Stockholders' equity | 18,287 | 10,723 | 35,268 | (45,991 | ) | 18,287 | ||||||||||||||
Noncontrolling interests | — | — | 3,683 | 504 | 4,187 | |||||||||||||||
Total equity | 18,287 | 10,723 | 38,951 | (45,487 | ) | 22,474 | ||||||||||||||
Total liabilities and equity | $ | 38,122 | $ | 18,831 | $ | 62,688 | $ | (60,846 | ) | $ | 58,795 | |||||||||
a. | All U.S. related deferred income taxes are recorded at the parent company. | |||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1,985 | $ | — | $ | 1,985 | ||||||||||
Accounts receivable | 855 | 659 | 2,258 | (1,210 | ) | 2,562 | ||||||||||||||
Other current assets | 114 | 38 | 5,273 | — | 5,425 | |||||||||||||||
Total current assets | 969 | 697 | 9,516 | (1,210 | ) | 9,972 | ||||||||||||||
Property, plant, equipment and mining development costs, net | 27 | 43 | 23,972 | — | 24,042 | |||||||||||||||
Oil and gas properties, net - full cost method: | ||||||||||||||||||||
Subject to amortization, less accumulated amortization | — | 6,207 | 6,265 | — | 12,472 | |||||||||||||||
Not subject to amortization | — | 2,649 | 8,238 | — | 10,887 | |||||||||||||||
Investment in consolidated subsidiaries | 31,162 | 9,712 | 12,468 | (53,342 | ) | — | ||||||||||||||
Goodwill | — | 437 | 1,479 | — | 1,916 | |||||||||||||||
Other assets | 7,126 | 4,640 | 4,128 | (11,710 | ) | 4,184 | ||||||||||||||
Total assets | $ | 39,284 | $ | 24,385 | $ | 66,066 | $ | (66,262 | ) | $ | 63,473 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities | $ | 1,003 | $ | 758 | $ | 4,222 | $ | (1,210 | ) | $ | 4,773 | |||||||||
Long-term debt, less current portion | 13,184 | 7,199 | 8,056 | (8,045 | ) | 20,394 | ||||||||||||||
Deferred income taxes | 4,137 | a | — | 3,273 | — | 7,410 | ||||||||||||||
Environmental and asset retirement obligations, less current portion | — | 301 | 2,958 | — | 3,259 | |||||||||||||||
Other liabilities | 26 | 3,436 | 1,893 | (3,665 | ) | 1,690 | ||||||||||||||
Total liabilities | 18,350 | 11,694 | 20,402 | (12,920 | ) | 37,526 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 716 | — | 716 | |||||||||||||||
Equity: | ||||||||||||||||||||
Stockholders' equity | 20,934 | 12,691 | 41,100 | (53,791 | ) | 20,934 | ||||||||||||||
Noncontrolling interests | — | — | 3,848 | 449 | 4,297 | |||||||||||||||
Total equity | 20,934 | 12,691 | 44,948 | (53,342 | ) | 25,231 | ||||||||||||||
Total liabilities and equity | $ | 39,284 | $ | 24,385 | $ | 66,066 | $ | (66,262 | ) | $ | 63,473 | |||||||||
a. | All U.S. related deferred income taxes are recorded at the parent company. | |||||||||||||||||||
Condensed Income Statement [Table Text Block] | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Revenues | $ | — | $ | 2,356 | $ | 19,082 | $ | — | 21,438 | |||||||||||
Total costs and expenses | 59 | 3,498 | a | 17,762 | a | 22 | 21,341 | |||||||||||||
Operating (loss) income | (59 | ) | (1,142 | ) | 1,320 | (22 | ) | 97 | ||||||||||||
Interest expense, net | (382 | ) | (139 | ) | (189 | ) | 80 | (630 | ) | |||||||||||
Net (loss) gain on early extinguishment of debt | (5 | ) | 78 | — | — | 73 | ||||||||||||||
Other income (expense), net | 72 | 3 | 41 | (80 | ) | 36 | ||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings | (374 | ) | (1,200 | ) | 1,172 | (22 | ) | (424 | ) | |||||||||||
Benefit from (provision for) income taxes | 73 | 281 | (686 | ) | 8 | (324 | ) | |||||||||||||
Equity in affiliated companies' net (losses) earnings | (1,007 | ) | (3,429 | ) | (4,633 | ) | 9,072 | 3 | ||||||||||||
Net (loss) income | (1,308 | ) | (4,348 | ) | (4,147 | ) | 9,058 | (745 | ) | |||||||||||
Net income and preferred dividends attributable to noncontrolling interests | — | — | (519 | ) | (44 | ) | (563 | ) | ||||||||||||
Net (loss) income attributable to FCX common stockholders | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,666 | ) | $ | 9,014 | $ | (1,308 | ) | ||||||
Other comprehensive loss | — | — | (139 | ) | — | (139 | ) | |||||||||||||
Total comprehensive (loss) income | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,805 | ) | $ | 9,014 | $ | (1,447 | ) | ||||||
a. | Includes impairment charges totaling $1.9 billion at the FM O&G LLC Guarantor and $3.5 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge. | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Revenues | $ | — | $ | 1,177 | $ | 19,744 | $ | — | $ | 20,921 | ||||||||||
Total costs and expenses | 134 | 1,065 | 14,371 | — | 15,570 | |||||||||||||||
Operating (loss) income | (134 | ) | 112 | 5,373 | — | 5,351 | ||||||||||||||
Interest expense, net | (319 | ) | (129 | ) | (129 | ) | 59 | (518 | ) | |||||||||||
Net (loss) gain on early extinguishment of debt | (45 | ) | — | 10 | — | (35 | ) | |||||||||||||
Gain on investment in MMR | 128 | — | — | — | 128 | |||||||||||||||
Other income (expense), net | 61 | — | (15 | ) | (59 | ) | (13 | ) | ||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | (309 | ) | (17 | ) | 5,239 | — | 4,913 | |||||||||||||
Benefit from (provision for) income taxes | 81 | 17 | (1,573 | ) | — | (1,475 | ) | |||||||||||||
Equity in affiliated companies' net earnings (losses) | 2,886 | 281 | 268 | (3,432 | ) | 3 | ||||||||||||||
Net income (loss) | 2,658 | 281 | 3,934 | (3,432 | ) | 3,441 | ||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | — | — | (706 | ) | (77 | ) | (783 | ) | ||||||||||||
Net income (loss) attributable to FCX common stockholders | $ | 2,658 | $ | 281 | $ | 3,228 | $ | (3,509 | ) | $ | 2,658 | |||||||||
Other comprehensive income | — | — | 101 | — | 101 | |||||||||||||||
Total comprehensive income (loss) | $ | 2,658 | $ | 281 | $ | 3,329 | $ | (3,509 | ) | $ | 2,759 | |||||||||
Condensed Cash Flow Statement [Table Text Block] | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net (loss) income | $ | (1,308 | ) | $ | (4,348 | ) | $ | (4,147 | ) | $ | 9,058 | $ | (745 | ) | ||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 4 | 806 | 3,077 | (24 | ) | 3,863 | ||||||||||||||
Impairment of oil and gas properties and goodwill | — | 1,922 | 3,486 | 46 | 5,454 | |||||||||||||||
Net gains on crude oil and natural gas derivative contracts | — | (504 | ) | — | — | (504 | ) | |||||||||||||
Equity in (earnings) losses of consolidated subsidiaries | 1,007 | 3,429 | 4,633 | (9,072 | ) | (3 | ) | |||||||||||||
Other, net | (882 | ) | (113 | ) | (807 | ) | — | (1,802 | ) | |||||||||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from dispositions | 723 | (1,750 | ) | 395 | — | (632 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (456 | ) | (558 | ) | 6,637 | 8 | 5,631 | |||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (2,143 | ) | (5,072 | ) | — | (7,215 | ) | ||||||||||||
Acquisition of Deepwater GOM interests | — | — | (1,426 | ) | — | (1,426 | ) | |||||||||||||
Intercompany loans | (1,328 | ) | 704 | — | 624 | — | ||||||||||||||
Dividend from (investment in) consolidated subsidiary | 1,221 | (130 | ) | (2,408 | ) | 1,317 | — | |||||||||||||
Net proceeds from sale of Candelaria and Ojos del Salado | — | — | 1,709 | — | 1,709 | |||||||||||||||
Net proceeds from sale of Eagle Ford shale assets | — | 2,910 | — | — | 2,910 | |||||||||||||||
Other, net | — | 41 | 180 | — | 221 | |||||||||||||||
Net cash (used in) provided by investing activities | (107 | ) | 1,382 | (7,017 | ) | 1,941 | (3,801 | ) | ||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Proceeds from debt | 7,464 | — | 1,246 | — | 8,710 | |||||||||||||||
Repayments of debt | (5,575 | ) | (3,994 | ) | (737 | ) | — | (10,306 | ) | |||||||||||
Intercompany loans | — | 810 | (186 | ) | (624 | ) | — | |||||||||||||
Cash dividends and distributions paid, and contributions received | (1,305 | ) | 2,364 | (1,463 | ) | (1,325 | ) | (1,729 | ) | |||||||||||
Other, net | (21 | ) | (3 | ) | (2 | ) | — | (26 | ) | |||||||||||
Net cash provided by (used in) financing activities | 563 | (823 | ) | (1,142 | ) | (1,949 | ) | (3,351 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | — | 1 | (1,522 | ) | — | (1,521 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | — | 1,985 | — | 1,985 | |||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | 1 | $ | 463 | $ | — | $ | 464 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
FCX | FM O&G LLC | Non-guarantor | Consolidated | |||||||||||||||||
Issuer | Guarantor | Subsidiaries | Eliminations | FCX | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | 2,658 | $ | 281 | $ | 3,934 | $ | (3,432 | ) | $ | 3,441 | |||||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation, depletion and amortization | 4 | 616 | 2,177 | — | 2,797 | |||||||||||||||
Net losses on crude oil and natural gas derivative contracts | — | 334 | — | — | 334 | |||||||||||||||
Gain on investment in MMR | (128 | ) | — | — | — | (128 | ) | |||||||||||||
Equity in (earnings) losses of consolidated subsidiaries | (2,886 | ) | (281 | ) | (265 | ) | 3,432 | — | ||||||||||||
Other, net | 8 | (14 | ) | 78 | — | 72 | ||||||||||||||
Decreases (increases) in working capital and changes in other tax payments, excluding amounts from acquisitions and dispositions | 272 | 735 | (1,384 | ) | — | (377 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (72 | ) | 1,671 | 4,540 | — | 6,139 | ||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (894 | ) | (4,392 | ) | — | (5,286 | ) | ||||||||||||
Acquisitions, net of cash acquired | (5,437 | ) | — | (4 | ) | — | (5,441 | ) | ||||||||||||
Intercompany loans | 834 | — | (162 | ) | (672 | ) | — | |||||||||||||
Dividend from (investment in) consolidated subsidiary | 629 | — | — | (629 | ) | — | ||||||||||||||
Other, net | 15 | 30 | (226 | ) | — | (181 | ) | |||||||||||||
Net cash used in investing activities | (3,959 | ) | (864 | ) | (4,784 | ) | (1,301 | ) | (10,908 | ) | ||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Proceeds from debt | 11,260 | — | 241 | — | 11,501 | |||||||||||||||
Repayments of debt and redemption of MMR preferred stock | (4,737 | ) | (416 | ) | (551 | ) | — | (5,704 | ) | |||||||||||
Intercompany loans | — | (391 | ) | (281 | ) | 672 | — | |||||||||||||
Cash dividends and distributions paid | (2,281 | ) | — | (885 | ) | 629 | (2,537 | ) | ||||||||||||
Other, net | (211 | ) | — | — | — | (211 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 4,031 | (807 | ) | (1,476 | ) | 1,301 | 3,049 | |||||||||||||
Net decrease in cash and cash equivalents | — | — | (1,720 | ) | — | (1,720 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | — | — | 3,705 | — | 3,705 | |||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | — | $ | 1,985 | $ | — | $ | 1,985 | ||||||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Quarterly financial information | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 4,985 | a | $ | 5,522 | a | $ | 5,696 | a | $ | 5,235 | a | $ | 21,438 | a | ||||||
Operating income (loss) | 1,111 | 1,153 | 1,132 | b,c | (3,299 | ) | b,c | 97 | b,c | ||||||||||||
Net income (loss) | 626 | 660 | d,e | 704 | d,e | (2,735 | ) | d,e | (745 | ) | d,e | ||||||||||
Net income and preferred dividends | |||||||||||||||||||||
attributable to noncontrolling interests | 116 | 178 | 152 | 117 | 563 | ||||||||||||||||
Net income (loss) attributable to FCX | |||||||||||||||||||||
common stockholders | 510 | a | 482 | a,d,e | 552 | a,b,c,d,e | (2,852 | ) | a,b,c,d,e | (1,308 | ) | a,b,c,d,e | |||||||||
Basic net income (loss) per share | |||||||||||||||||||||
attributable to FCX common stockholders | 0.49 | 0.46 | 0.53 | (2.75 | ) | (1.26 | ) | ||||||||||||||
Diluted net income (loss) per share | |||||||||||||||||||||
attributable to FCX common stockholders | 0.49 | a | 0.46 | a,d,e | 0.53 | a,b,c,d,e | (2.75 | ) | a,b,c,d,e | (1.26 | ) | a,b,c,d,e | |||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 4,583 | $ | 4,288 | f | $ | 6,165 | f | $ | 5,885 | f | $ | 20,921 | f | |||||||
Operating income | 1,355 | g | 639 | g | 1,707 | g | 1,650 | g,h | 5,351 | g,h | |||||||||||
Net income | 824 | 610 | i | 1,048 | 959 | i | 3,441 | i | |||||||||||||
Net income and preferred dividends | |||||||||||||||||||||
attributable to noncontrolling interests | 176 | 128 | 227 | 252 | 783 | ||||||||||||||||
Net income attributable to FCX common | |||||||||||||||||||||
stockholders | 648 | g,j | 482 | f,g,i,j,k | 821 | f,g | 707 | f,g,h,i,j | 2,658 | f,g,h,i,j,k | |||||||||||
Basic net income per share attributable | |||||||||||||||||||||
to FCX common stockholders | 0.68 | 0.49 | 0.79 | 0.68 | 2.65 | ||||||||||||||||
Diluted net income per share attributable | |||||||||||||||||||||
to FCX common stockholders | 0.68 | g,j | 0.49 | f,g,i,j,k | 0.79 | f,g | 0.68 | f,g,h,i,j | 2.64 | f,g,h,i,j,k | |||||||||||
a. | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
b. | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | ||||||||||||||||||||
c. | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | ||||||||||||||||||||
d. | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||||||||||||||||||
e. | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||
f. | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
g. | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | ||||||||||||||||||||
h. | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | ||||||||||||||||||||
i. | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | ||||||||||||||||||||
j. | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||
k. | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. |
SUPPLEMENTARY_MINERAL_RESERVE_1
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplementary Mineral Reserve Information [Abstract] | ||||||||||||||||||||
Estimated Recoverable Proven and Probable Reserves by Location | ||||||||||||||||||||
Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||
Estimated at December 31, 2014 | ||||||||||||||||||||
Coppera | Gold | Molybdenum | ||||||||||||||||||
(billion pounds) | (million ounces) | (billion pounds) | ||||||||||||||||||
North America | 35.6 | 0.3 | 2.42 | |||||||||||||||||
South America | 31.8 | — | 0.69 | |||||||||||||||||
Indonesia | 29 | 28.2 | — | |||||||||||||||||
Africa | 7.1 | — | — | |||||||||||||||||
Consolidatedb | 103.5 | 28.5 | 3.11 | |||||||||||||||||
Net equity interestc | 82.8 | 25.9 | 2.79 | |||||||||||||||||
a. | Consolidated recoverable copper reserves included 3.6 billion pounds in leach stockpiles and 0.9 billion pounds in mill stockpiles. | |||||||||||||||||||
b. | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.85 billion pounds of cobalt at Tenke and 282.9 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver. | |||||||||||||||||||
c. | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 232.4 million ounces of silver in Indonesia, South America and North America. | |||||||||||||||||||
Supplementary Reserve Information at 100% Basis by Location | ||||||||||||||||||||
Recoverable Proven and Probable Mineral Reserves | ||||||||||||||||||||
Estimated at December 31, 2014 | ||||||||||||||||||||
Average Ore Grade | Recoverable Proven and | |||||||||||||||||||
Per Metric Tona | Probable Reservesb | |||||||||||||||||||
Orea | Copper (%) | Gold (grams) | Molybdenum (%) | Copper | Gold | Molybdenum | ||||||||||||||
(million metric tons) | (billion pounds) | (million ounces) | (billion pounds) | |||||||||||||||||
North America | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Morenci | 3,923 | 0.27 | — | — | c | 15.1 | — | 0.17 | ||||||||||||
Bagdad | 1,334 | 0.32 | — | c | 0.02 | 7.8 | 0.1 | 0.38 | ||||||||||||
Safford | 122 | 0.47 | — | — | 1.1 | — | — | |||||||||||||
Sierrita | 2,464 | 0.23 | — | c | 0.02 | 10.8 | 0.1 | 1.01 | ||||||||||||
Miami | 3 | 0.58 | — | — | 0.1 | — | — | |||||||||||||
Chino | 301 | 0.39 | 0.02 | — | c | 2.2 | 0.1 | 0.01 | ||||||||||||
Tyrone | 59 | 0.32 | — | — | 0.4 | — | — | |||||||||||||
Henderson | 90 | — | — | 0.17 | — | — | 0.28 | |||||||||||||
Climax | 185 | — | — | 0.16 | — | — | 0.59 | |||||||||||||
Undeveloped: | ||||||||||||||||||||
Cobre | 71 | 0.37 | — | — | 0.3 | — | — | |||||||||||||
South America | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Cerro Verde | 3,953 | 0.37 | — | 0.01 | 28.9 | — | 0.69 | |||||||||||||
El Abra | 444 | 0.46 | — | — | 2.9 | — | — | |||||||||||||
Indonesia | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Grasberg open pit | 179 | 0.96 | 1.06 | — | 3.2 | 4.9 | — | |||||||||||||
Deep Ore Zone | 146 | 0.54 | 0.69 | — | 1.5 | 2.5 | — | |||||||||||||
Big Gossan | 54 | 2.26 | 0.99 | — | 2.4 | 1.1 | — | |||||||||||||
Undeveloped: | ||||||||||||||||||||
Grasberg Block Cave | 1,012 | 1 | 0.77 | — | 18.9 | 16.3 | — | |||||||||||||
Kucing Liar | 406 | 1.25 | 1.07 | — | 9.5 | 6.3 | — | |||||||||||||
Deep Mill Level Zone | 472 | 0.87 | 0.71 | — | 7.9 | 8.6 | — | |||||||||||||
Africa | ||||||||||||||||||||
Developed and producing: | ||||||||||||||||||||
Tenke Fungurume | 98 | 3.27 | — | — | 7.1 | — | — | |||||||||||||
Total 100% basis | 15,316 | 120.1 | 40 | 3.13 | ||||||||||||||||
Consolidatedd | 103.5 | 28.5 | 3.11 | |||||||||||||||||
FCX’s equity sharee | 82.8 | 25.9 | 2.79 | |||||||||||||||||
a. | Excludes material contained in stockpiles. | |||||||||||||||||||
b. | Includes estimated recoverable metals contained in stockpiles. | |||||||||||||||||||
c. | Amounts not shown because of rounding. | |||||||||||||||||||
d. | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. | |||||||||||||||||||
e. | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. |
SUPPLEMENTARY_OIL_AND_GAS_INFO1
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Oil and Gas Information [Abstract] | |||||||||||||
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block] | FCX's oil and gas acquisition, exploration and development activities for the years ended December 31 follows: | ||||||||||||
2014 | 2013a | ||||||||||||
Property acquisition costs: | |||||||||||||
Proved properties | $ | 463 | $ | 12,205 | b | ||||||||
Unproved properties | 1,460 | 11,259 | c | ||||||||||
Exploration costs | 1,482 | 502 | |||||||||||
Development costs | 1,270 | 854 | |||||||||||
$ | 4,675 | $ | 24,820 | ||||||||||
a. | Includes the results of FM O&G beginning June 1, 2013. | ||||||||||||
b. | Includes $12.2 billion from the acquisitions of PXP and MMR. | ||||||||||||
c. | Includes $11.1 billion from the acquisitions of PXP and MMR. | ||||||||||||
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | The aggregate capitalized costs subject to amortization for oil and gas properties and the aggregate related accumulated amortization as of December 31 follow: | ||||||||||||
2014 | 2013 | ||||||||||||
Properties subject to amortization | $ | 16,547 | $ | 13,829 | |||||||||
Accumulated amortization | (7,360 | ) | a | (1,357 | ) | ||||||||
$ | 9,187 | $ | 12,472 | ||||||||||
a. | Includes charges of $3.7 billion to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. | ||||||||||||
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization [Table Text Block] | A summary of the categories of costs comprising the amount of unproved properties not subject to amortization by the year in which such costs were incurred follows: | ||||||||||||
December 31, | |||||||||||||
Total | 2014 | 2013 | |||||||||||
U.S.: | |||||||||||||
Onshore | |||||||||||||
Acquisition costs | $ | 2,303 | $ | 18 | $ | 2,285 | |||||||
Exploration costs | 121 | 119 | 2 | ||||||||||
Capitalized interest | 27 | 22 | 5 | ||||||||||
Offshore | |||||||||||||
Acquisition costs | 7,094 | 1,413 | 5,681 | ||||||||||
Exploration costs | 429 | 387 | 42 | ||||||||||
Capitalized interest | 75 | 39 | 36 | ||||||||||
International: | |||||||||||||
Offshore | |||||||||||||
Acquisition costs | 15 | — | 15 | ||||||||||
Exploration costs | 23 | 23 | — | ||||||||||
Capitalized interest | — | — | — | ||||||||||
$ | 10,087 | $ | 2,021 | $ | 8,066 | ||||||||
Results of Operations for Oil and Gas Producing Activities Disclosure [Table Text Block] | The results of operations from oil and gas producing activities for the year ended December 31, 2014, and the period from June 1, 2013, to December 31, 2013, presented below exclude non-oil and gas revenues, general and administrative expenses, goodwill impairment, interest expense and interest income. Income tax benefit (expense) was determined by applying the statutory rates to pre-tax operating results: | ||||||||||||
Year Ended | June 1, 2013 to | ||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Revenues from oil and gas producing activities | $ | 4,710 | $ | 2,616 | |||||||||
Production and delivery costs | (1,237 | ) | (682 | ) | |||||||||
Depreciation, depletion and amortization | (2,265 | ) | (1,358 | ) | |||||||||
Impairment of oil and gas properties | (3,737 | ) | — | ||||||||||
Income tax benefit (expense) (based on FCX's statutory tax rate) | 958 | (219 | ) | ||||||||||
Results of operations from oil and gas producing activities | $ | (1,571 | ) | $ | 357 | ||||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | The following table sets forth certain data pertaining to proved, proved developed and proved undeveloped reserves, all of which are in the U.S., for the years ended December 31, 2014 and 2013. | ||||||||||||
Oil | Gas | Total | |||||||||||
(MMBbls)a,b | (Bcf)a | (MMBOE)a | |||||||||||
2014 | |||||||||||||
Proved reserves: | |||||||||||||
Balance at beginning of year | 370 | 562 | 464 | ||||||||||
Extensions and discoveries | 10 | 35 | 16 | ||||||||||
Acquisitions of reserves in-place | 14 | 9 | 16 | ||||||||||
Revisions of previous estimates | (10 | ) | 140 | 13 | |||||||||
Sale of reserves in-place | (53 | ) | (54 | ) | (62 | ) | |||||||
Production | (43 | ) | (82 | ) | (57 | ) | |||||||
Balance at end of year | 288 | 610 | 390 | ||||||||||
Proved developed reserves at December 31, 2014 | 184 | 369 | 246 | ||||||||||
Proved undeveloped reserves at December 31, 2014 | 104 | 241 | 144 | ||||||||||
2013 | |||||||||||||
Proved reserves: | |||||||||||||
Balance at beginning of year | — | — | — | ||||||||||
Acquisitions of PXP and MMR | 368 | 626 | 472 | ||||||||||
Extensions and discoveries | 20 | 20 | 24 | ||||||||||
Revisions of previous estimates | 11 | (26 | ) | 7 | |||||||||
Sale of reserves in-place | — | (3 | ) | (1 | ) | ||||||||
Production | (29 | ) | (55 | ) | (38 | ) | |||||||
Balance at end of year | 370 | 562 | 464 | ||||||||||
Proved developed reserves at December 31, 2013 | 236 | 423 | 307 | ||||||||||
Proved undeveloped reserves at December 31, 2013 | 134 | 139 | 157 | ||||||||||
a. | MMBbls =illion barrels; Bcf =illion cubic feet; MMBOE =illion BOE | ||||||||||||
b. | Includes 10 MMBbls of NGL proved reserves (7 MMBbls of developed and 3 MMBbls of undeveloped) at December 31, 2014 | ||||||||||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | The Standardized Measure related to proved oil and natural gas reserves as of December 31 follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Future cash inflows | $ | 29,504 | $ | 38,901 | |||||||||
Future production expense | (10,991 | ) | (12,774 | ) | |||||||||
Future development costsa | (6,448 | ) | (6,480 | ) | |||||||||
Future income tax expense | (2,487 | ) | (4,935 | ) | |||||||||
Future net cash flows | 9,578 | 14,712 | |||||||||||
Discounted at 10% per year | (3,157 | ) | (5,295 | ) | |||||||||
Standardized Measure | $ | 6,421 | $ | 9,417 | |||||||||
a. | Includes estimated asset retirement costs of $1.8 billion at December 31, 2014 and 2013. | ||||||||||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | A summary of the principal sources of changes in the Standardized Measure for the years ended December 31 follows: | ||||||||||||
2014 | 2013a | ||||||||||||
Balance at beginning of year | $ | 9,417 | $ | — | |||||||||
Changes during the year: | |||||||||||||
Reserves acquired in the acquisitions of PXP and MMR | — | 14,467 | |||||||||||
Sales, net of production expenses | (3,062 | ) | (2,296 | ) | |||||||||
Net changes in sales and transfer prices, net of production expenses | (2,875 | ) | (459 | ) | |||||||||
Extensions, discoveries and improved recoveries | 194 | 752 | |||||||||||
Changes in estimated future development costs | (498 | ) | (1,190 | ) | |||||||||
Previously estimated development costs incurred during the year | 982 | 578 | |||||||||||
Sales of reserves in-place | (1,323 | ) | (12 | ) | |||||||||
Other purchases of reserves in-place | 487 | — | |||||||||||
Revisions of quantity estimates | 399 | 102 | |||||||||||
Accretion of discount | 1,195 | 701 | |||||||||||
Net change in income taxes | 1,505 | (3,226 | ) | ||||||||||
Total changes | (2,996 | ) | 9,417 | ||||||||||
Balance at end of year | $ | 6,421 | $ | 9,417 | |||||||||
a. | Includes the results of FM O&G beginning June 1, 2013. |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||||
Valuation and Qualifying Accounts [Table Text Block] | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Balance at | Charged to | Charged to | Other | Balance at | |||||||||||||||||
Beginning of | Costs and | Other | Additions | End of | |||||||||||||||||
Year | Expense | Accounts | (Deductions) | Year | |||||||||||||||||
Reserves and allowances deducted | |||||||||||||||||||||
from asset accounts: | |||||||||||||||||||||
Valuation allowance for deferred tax assets | |||||||||||||||||||||
Year Ended December 31, 2014 | $ | 2,487 | $ | (53 | ) | $ | — | $ | — | $ | 2,434 | ||||||||||
Year Ended December 31, 2013 | 2,443 | 44 | — | — | 2,487 | ||||||||||||||||
Year Ended December 31, 2012 | 2,393 | 49 | 1 | — | 2,443 | ||||||||||||||||
Reserves for non-income taxes: | |||||||||||||||||||||
Year Ended December 31, 2014 | $ | 78 | $ | 16 | $ | — | $ | (1 | ) | a | $ | 93 | |||||||||
Year Ended December 31, 2013 | 80 | 35 | (1 | ) | (36 | ) | a | 78 | |||||||||||||
Year Ended December 31, 2012 | 73 | 21 | (2 | ) | (12 | ) | a | 80 | |||||||||||||
a. | Represents amounts paid or adjustments to reserves based on revised estimates. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 |
Schedule of Significant Accounting Policies [Line Items] | |||||||
Entity Information, Date to Change Former Legal or Registered Name | 14-Jul-14 | ||||||
Minimum ownership percentage of subsidiary for inclusion in consolidated financial statements | 50.00% | 50.00% | |||||
Percentage of ultimate copper recovery from leach stockpiles | 90.00% | ||||||
Threshhold for Determining Accounting Treatment for Oil and Gas Dispositions | 25.00% | ||||||
Fair Value Inputs, Discount Rate | 10.00% | ||||||
Impairment of oil and gas properties | $3,400 | $308 | $0 | $3,737 | $0 | $0 | |
Amount of Natural Gas Sales Priced Using Industry Pricing Index, Percentage | 40.00% | ||||||
Minimum [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage for investment in unconsolidated companies accounted for using the equity method | 20.00% | 20.00% | |||||
Maximum [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage for investments in unconsolidated companies carried at cost | 20.00% | 20.00% | |||||
Percentage of copper ultimately recoverable from newly placed material on active stockpiles extracted during the first year | 80.00% | ||||||
PT Freeport Indonesia [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage of subsidiary | 90.64% | 90.64% | |||||
Plains Exploration & Production Company [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 31-May-13 | 31-May-13 | |||||
Business Acquisition, Date Results Included in Combined Entity | 1-Jun-13 | ||||||
McMoRan Exploration Co [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | 3-Jun-13 | ||||||
Business Acquisition, Date Results Included in Combined Entity | 4-Jun-13 | ||||||
Oil and Gas Operations Segment [Member] | |||||||
Schedule of Significant Accounting Policies [Line Items] | |||||||
Interest Costs Capitalized | 88 | 69 | |||||
Impairment of oil and gas properties | $3,737 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Mobile equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Maximum [Member] | Mobile equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||
Net (loss) income | ($2,735) | [1],[2] | $704 | [1],[2] | $660 | [1],[2] | $626 | $959 | [3] | $1,048 | $610 | [3] | $824 | ($745) | [1],[2] | $3,441 | [3] | $3,980 | ||||
Net income attributable to noncontrolling interests | 523 | 761 | 939 | |||||||||||||||||||
Preferred dividends attributable to redeemable noncontrolling interest | -40 | -22 | 0 | |||||||||||||||||||
Undistributed earnings allocable to participating securities | -3 | 0 | 0 | |||||||||||||||||||
Net (loss) income allocable to FCX common stockholders | ($1,311) | $2,658 | $3,041 | |||||||||||||||||||
Basic weighted-average shares of common stock outstanding | 1,039,000,000 | 1,002,000,000 | 949,000,000 | |||||||||||||||||||
Add shares issuable upon exercise or vesting of dilutive stock options and RSUs | 0 | [4] | 4,000,000 | [4] | 5,000,000 | [4] | ||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 1,039,000,000 | 1,006,000,000 | 954,000,000 | |||||||||||||||||||
Basic net (loss) income per share attributable to FCX common stockholders | ($2.75) | $0.53 | $0.46 | $0.49 | $0.68 | $0.79 | $0.49 | $0.68 | ($1.26) | $2.65 | $3.20 | |||||||||||
Diluted net (loss) income per share attributable to FCX common stockholders | ($2.75) | [1],[2],[5],[6],[7] | $0.53 | [1],[2],[5],[6],[7] | $0.46 | [1],[2],[5] | $0.49 | [5] | $0.68 | [10],[11],[3],[8],[9] | $0.79 | [11],[8] | $0.49 | [11],[12],[3],[8],[9] | $0.68 | [8],[9] | ($1.26) | [1],[2],[5],[6],[7] | $2.64 | [10],[11],[12],[3],[8],[9] | $3.19 | |
Potential anti-dilutive additional shares of common stock from stock options and restricted stock units | 10,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||
Outstanding stock options with exercise prices greater than average market price of common stock (in shares) | 31,000,000 | 30,000,000 | 17,000,000 | |||||||||||||||||||
Weighted-average exercise price of stock options excluded (in dollars per share) | $40.52 | $40.23 | $44.73 | |||||||||||||||||||
[1] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | |||||||||||||||||||||
[2] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||
[3] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | |||||||||||||||||||||
[4] | Excludes shares of common stock associated with outstanding stock options with exercise prices less than the average market price of FCX's common stock and RSUs that were anti-dilutive, with related amounts totaling approximately ten million for the year ended December 31, 2014, and one million for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
[5] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||||||||||||||||||
[6] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||||||||||||||||||
[7] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||||||||||||||||||
[8] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||||||||||||||||||
[9] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||
[10] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||||||||||||||||||
[11] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||||||||||||||||||
[12] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. |
DISPOSITIONS_AND_ACQUISITIONS_2
DISPOSITIONS AND ACQUISITIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | 31-May-13 | Jun. 30, 2013 | Sep. 08, 2014 | Jun. 20, 2014 | Jun. 03, 2013 | Mar. 29, 2013 | Mar. 07, 2013 | Feb. 14, 2013 | |||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Dividends Payable, Date to be Paid | 2-Feb-15 | |||||||||||||||||||||||||||||||||
Payments of Dividends | $1,729,000,000 | $2,537,000,000 | ||||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $1.25 | $2.25 | $1.25 | |||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 8,919,000,000 | 8,919,000,000 | ||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 0 | [1] | 0 | [1] | ||||||||||||||||||||||||||||||
Payments for Repurchase of Preferred Stock and Preference Stock | 0 | 228,000,000 | 0 | |||||||||||||||||||||||||||||||
Royalty Trust Units Issued, Conversion of Debt or Equity Instrument | 17,700,000 | |||||||||||||||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | 128,000,000 | 0 | |||||||||||||||||||||||||||||||
Revenues | 5,235,000,000 | [2] | 5,696,000,000 | [2] | 5,522,000,000 | [2] | 4,985,000,000 | [2] | 5,885,000,000 | [3] | 6,165,000,000 | [3] | 4,288,000,000 | [3] | 4,583,000,000 | 21,438,000,000 | [2],[4] | 20,921,000,000 | [3],[4] | 18,010,000,000 | [4] | |||||||||||||
Operating income | -3,299,000,000 | [5],[6] | 1,132,000,000 | [5],[6] | 1,153,000,000 | 1,111,000,000 | 1,650,000,000 | [7],[8] | 1,707,000,000 | [8] | 639,000,000 | [8] | 1,355,000,000 | [8] | 97,000,000 | [5],[6] | 5,351,000,000 | [7],[8] | 5,814,000,000 | |||||||||||||||
Business Combination, Acquisition Related Costs | 4,000,000 | 1,000,000 | 61,000,000 | 14,000,000 | 80,000,000 | |||||||||||||||||||||||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | -22,000,000 | -5,000,000 | -57,000,000 | -84,000,000 | 190,000,000 | |||||||||||||||||||||||||||||
Deferred Finance Costs, Noncurrent, Net | 141,000,000 | 107,000,000 | 141,000,000 | 107,000,000 | ||||||||||||||||||||||||||||||
Gain (Loss) on Disposition of Oil and Gas Property | 77,000,000 | |||||||||||||||||||||||||||||||||
8% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | |||||||||||||||||||||||||||||||||
5.75% Convertible Perpetual Preferred Stock, Series 1 [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.75% | |||||||||||||||||||||||||||||||||
Deepwater Gulf of Mexico Interests [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Asset Retirement Costs | 10,000,000 | |||||||||||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 8-Sep-14 | 30-Jun-14 | ||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | 496,000,000 | 918,000,000 | ||||||||||||||||||||||||||||||||
Business Combination, Adjustment to Recognized Identifiable Assets Acquired and Liabilities Assumed Oil and Gas Properties Subject to Depletion | 509,000,000 | 451,000,000 | ||||||||||||||||||||||||||||||||
Business Combination, Adjustment to Recognized Identifiable Assets Acquired and Liabilities Assumed Oil and Gas Properties Not Subject to Depletion | 477,000,000 | |||||||||||||||||||||||||||||||||
Eagle Ford [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 1-Apr-14 | |||||||||||||||||||||||||||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | 84,000,000 | |||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | 3,100,000,000 | |||||||||||||||||||||||||||||||||
Deposits | 414,000,000 | 1,300,000,000 | ||||||||||||||||||||||||||||||||
Plains Exploration & Production Company [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Dividends Payable, Date to be Paid | 31-May-13 | |||||||||||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 31-May-13 | 31-May-13 | ||||||||||||||||||||||||||||||||
Business Acquisition, Agreed-Upon Equity Interest Issued or Issuable, Number of Shares Per Share of Target Company | 0.6531 | |||||||||||||||||||||||||||||||||
Business Acquisitions, Agreed-Upon Cost of Entity Acquired, Cash Paid Per Share | $25 | |||||||||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 91,161,000 | |||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | 3,800,000,000 | |||||||||||||||||||||||||||||||||
Payments of Dividends | 411,000,000 | |||||||||||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $3 | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 6,639,000,000 | 6,639,000,000 | 6,639,000,000 | |||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 132,280,000 | |||||||||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares Excluding Shares Related to Employee Stock-based Awards | 86,392,000 | |||||||||||||||||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares Related to Employee Stock-based Awards | 4,769,000 | |||||||||||||||||||||||||||||||||
Share Price | $31.05 | |||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 2,831,000,000 | |||||||||||||||||||||||||||||||||
Payment to Acquire Businesses, Excluding Payments for Employee Stock-based Awards | 3,725,000,000 | [9] | ||||||||||||||||||||||||||||||||
Other Payments to Acquire Businesses | 83,000,000 | |||||||||||||||||||||||||||||||||
Payment to Acquire Businesses, Per Share Consideration, Total | 3,300,000,000 | |||||||||||||||||||||||||||||||||
Payment to Acquire Businesses, Consideration for Equity Awards | 7,000,000 | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 848,000,000 | [1] | 848,000,000 | [1] | ||||||||||||||||||||||||||||||
Deferred Finance Costs, Noncurrent, Net | 96,000,000 | 96,000,000 | ||||||||||||||||||||||||||||||||
McMoRan Exploration Co [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 3-Jun-13 | |||||||||||||||||||||||||||||||||
Business Acquisitions, Agreed-Upon Cost of Entity Acquired, Cash Paid Per Share | $14.75 | |||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | 1,720,000,000 | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 3,128,000,000 | 3,128,000,000 | 3,128,000,000 | |||||||||||||||||||||||||||||||
Share Price | $16.63 | $16.75 | ||||||||||||||||||||||||||||||||
Payment to Acquire Businesses, Excluding Payments for Employee Stock-based Awards | 1,657,000,000 | |||||||||||||||||||||||||||||||||
Other Payments to Acquire Businesses | 63,000,000 | |||||||||||||||||||||||||||||||||
Buinsess Acquisition, Agreed-Upon Royalty Trust Units Issued or Issuable, Per Share of Target Company | 1.15 | |||||||||||||||||||||||||||||||||
Royalty Interest in Future Production | 5.00% | |||||||||||||||||||||||||||||||||
Business Acquisition, Date of Acquisition Agreement | 5-Dec-12 | |||||||||||||||||||||||||||||||||
Investment Owned, Balance, Shares | 51,000,000 | |||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 0 | [1] | 0 | [1] | 848,000,000 | |||||||||||||||||||||||||||||
Number Of Shares Of Investee Preferred Stock Purchased | 500,000 | |||||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.75% | |||||||||||||||||||||||||||||||||
Cost-method investment | 432,000,000 | |||||||||||||||||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 1,400,000,000 | |||||||||||||||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 128,000,000 | 128,000,000 | 128,000,000 | |||||||||||||||||||||||||||||||
McMoRan Exploration Co [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 112,362,000 | [10] | ||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 854,000,000 | |||||||||||||||||||||||||||||||||
McMoRan Exploration Co [Member] | 5.75% Convertible Perpetual Preferred Stock, Series 2 [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 554,000,000 | |||||||||||||||||||||||||||||||||
Kokkola Cobalt Chemicals Refinery [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 29-Mar-13 | |||||||||||||||||||||||||||||||||
Payments to Acquire Businesses, Gross | 34,000,000 | |||||||||||||||||||||||||||||||||
Company's direct ownership percentage | 56.00% | |||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | 382,000,000 | |||||||||||||||||||||||||||||||||
Business Acquisition, Cash Consideration Funding Percentage | 70.00% | |||||||||||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 110,000,000 | |||||||||||||||||||||||||||||||||
Buisness Combination, Term of Contingent Consideration | 3 years | |||||||||||||||||||||||||||||||||
Intersubsegment Eliminations [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | -848,000,000 | -848,000,000 | ||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | -848,000,000 | [1] | -848,000,000 | [1] | ||||||||||||||||||||||||||||||
Senior Notes [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 6,500,000,000 | |||||||||||||||||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 2,970,000,000 | 6,400,000,000 | 2,970,000,000 | |||||||||||||||||||||||||||||||
Bank Term Loan [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 | |||||||||||||||||||||||||||||||
Term of Debt Agreement | 5 years | |||||||||||||||||||||||||||||||||
Oil and Gas Operations Segment [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Revenues | 4,710,000,000 | [11] | 2,616,000,000 | [11] | 0 | |||||||||||||||||||||||||||||
Operating income | -4,479,000,000 | 450,000,000 | 0 | |||||||||||||||||||||||||||||||
Business Combination, Acquisition Related Costs | $74,000,000 | |||||||||||||||||||||||||||||||||
Lundin Mining Corporation [Member] | Kokkola Cobalt Chemicals Refinery [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 24.00% | |||||||||||||||||||||||||||||||||
Business Acquisition, Cash Consideration Funding Percentage | 30.00% | |||||||||||||||||||||||||||||||||
La Generale des Carrieres et des Mines [Member] | Kokkola Cobalt Chemicals Refinery [Member] | ||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | |||||||||||||||||||||||||||||||||
[1] | PXP owned 51 million shares of MMR common stock, which were eliminated in FCX's consolidated balance sheet at the acquisition date of MMR. | |||||||||||||||||||||||||||||||||
[2] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||||||||||||
[3] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||||||||||||
[4] | Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||||||||||||||
[5] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||||||||||||||||||||||||||||||
[6] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||||||||||||||||||||||||||||||
[7] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||||||||||||||||||||||||||||||
[8] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||||||||||||||||||||||||||||||
[9] | Cash consideration includes the payment of $25.00 in cash for each PXP share ($3.3 billion), cash paid in lieu of any fractional shares of FCX common stock, cash paid for certain equity awards ($7 million) and the value of the $3 per share PXP special cash dividend ($411 million) paid on May 31, 2013. | |||||||||||||||||||||||||||||||||
[10] | Excludes 51 million shares of MMR common stock owned by FCX through its acquisition of PXP on May 31, 2013. | |||||||||||||||||||||||||||||||||
[11] | Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling $505 million in 2014 and $(334) million for the period from June 1, 2013, to December 31, 2013. |
DISPOSITIONS_AND_ACQUISITIONS_3
DISPOSITIONS AND ACQUISITIONS (Dispositions) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 10 Months Ended | 6 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 03, 2014 | Jun. 30, 2014 | Oct. 06, 2014 | Sep. 08, 2014 | Jun. 20, 2014 | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||
Noncontrolling interests | $4,187,000,000 | $4,297,000,000 | $4,187,000,000 | $4,297,000,000 | ||||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | -424,000,000 | 4,913,000,000 | 5,487,000,000 | |||||||||||||||||||||||
Net income attributable to FCX common stockholders | -2,852,000,000 | [1],[2],[3],[4],[5] | 552,000,000 | [1],[2],[3],[4],[5] | 482,000,000 | [1],[3],[5] | 510,000,000 | [1] | 707,000,000 | [10],[6],[7],[8],[9] | 821,000,000 | [8],[9] | 482,000,000 | [10],[11],[7],[8],[9] | 648,000,000 | [10],[8] | -1,308,000,000 | [1],[2],[3],[4],[5] | 2,658,000,000 | [10],[11],[6],[7],[8],[9] | 3,041,000,000 | |||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | -22,000,000 | -5,000,000 | -57,000,000 | -84,000,000 | 190,000,000 | |||||||||||||||||||||
Candelaria and Ojos del Salado Mining Complex [Member] | ||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||
Disposal Date | 3-Nov-14 | |||||||||||||||||||||||||
Company's direct ownership percentage | 80.00% | |||||||||||||||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | 1,800,000,000 | |||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 200,000,000 | |||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Basis for Amount | five percent of net copper revenues in any annual period over the next five years when the average realized copper price exceeds $4.00 per pound | |||||||||||||||||||||||||
Proceeds from Divestiture of Businesses, Net of Tax | 1,500,000,000 | |||||||||||||||||||||||||
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Pretax | 671,000,000 | |||||||||||||||||||||||||
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Net of Tax | 450,000,000 | |||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 30-Jun-14 | |||||||||||||||||||||||||
Current assets | 482,000,000 | |||||||||||||||||||||||||
Long-term assets | 1,155,000,000 | |||||||||||||||||||||||||
Current liabilities | 129,000,000 | |||||||||||||||||||||||||
Long-term liabilities | 89,000,000 | |||||||||||||||||||||||||
Noncontrolling interests | 242,000,000 | |||||||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | 689,000,000 | 547,000,000 | 270,000,000 | |||||||||||||||||||||||
Net income attributable to FCX common stockholders | 341,000,000 | 304,000,000 | 144,000,000 | |||||||||||||||||||||||
Eagle Ford [Member] | ||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||
Disposal Date | 20-Jun-14 | |||||||||||||||||||||||||
Business Combination, Consideration Transferred | 3,100,000,000 | |||||||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 1-Apr-14 | |||||||||||||||||||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | 84,000,000 | |||||||||||||||||||||||||
Adjustment to Goodwill | -221,000,000 | 221,000,000 | ||||||||||||||||||||||||
Deposits | $414,000,000 | $1,300,000,000 | ||||||||||||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||||
[2] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||||||||||||||||||||||
[3] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | |||||||||||||||||||||||||
[4] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||||||||||||||||||||||
[5] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||||||
[6] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||||||||||||||||||||||
[7] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | |||||||||||||||||||||||||
[8] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||||||||||||||||||||||
[9] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||||
[10] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||||||
[11] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. |
DISPOSITIONS_AND_ACQUISITIONS_4
DISPOSITIONS AND ACQUISITIONS (Purchase Price Allocation) (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-13 | Jun. 03, 2013 | ||
Business Acquisition [Line Items] | |||||||||||
Current assets | $1,291,000,000 | $1,291,000,000 | |||||||||
Subject to amortization | 12,200,000,000 | 12,200,000,000 | 12,198,000,000 | 12,198,000,000 | |||||||
Not subject to amortization | 11,100,000,000 | 11,100,000,000 | 11,112,000,000 | 11,112,000,000 | |||||||
Property, plant, and equipment | 262,000,000 | 262,000,000 | |||||||||
Investment in MMR | 0 | [1] | 0 | [1] | |||||||
Other assets | 394,000,000 | 394,000,000 | |||||||||
Current liabilities | -1,080,000,000 | -1,080,000,000 | |||||||||
Debt (current and long-term) | -11,251,000,000 | -11,251,000,000 | |||||||||
Deferred income taxes | -3,917,000,000 | [2] | -3,917,000,000 | [2] | |||||||
Other long-term liabilities | -1,061,000,000 | -1,061,000,000 | |||||||||
Redeemable noncontrolling interest | -967,000,000 | -967,000,000 | |||||||||
Total fair value, excluding goodwill | 6,981,000,000 | 6,981,000,000 | |||||||||
Goodwill | 0 | 1,916,000,000 | 0 | 1,916,000,000 | 1,938,000,000 | 1,938,000,000 | |||||
Total purchase price | 8,919,000,000 | 8,919,000,000 | |||||||||
Business Combinations, Tax Rate, Fair Value Adjustments, Percent | 38.00% | ||||||||||
Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% | |||||||
State and Local Income Taxes, Percent | 3.00% | 27.00% | 0.00% | 0.00% | |||||||
Goodwill impairment | -1,700,000,000 | -1,717,000,000 | 0 | 0 | |||||||
Plains Exploration & Production Company [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Current assets | 1,193,000,000 | 1,193,000,000 | |||||||||
Subject to amortization | 11,447,000,000 | 11,447,000,000 | |||||||||
Not subject to amortization | 9,401,000,000 | 9,401,000,000 | |||||||||
Property, plant, and equipment | 261,000,000 | 261,000,000 | |||||||||
Investment in MMR | 848,000,000 | [1] | 848,000,000 | [1] | |||||||
Other assets | 12,000,000 | 12,000,000 | |||||||||
Current liabilities | -906,000,000 | -906,000,000 | |||||||||
Debt (current and long-term) | -10,631,000,000 | -10,631,000,000 | |||||||||
Deferred income taxes | -3,917,000,000 | [2] | -3,917,000,000 | [2] | |||||||
Other long-term liabilities | -799,000,000 | -799,000,000 | |||||||||
Redeemable noncontrolling interest | -708,000,000 | -708,000,000 | |||||||||
Total fair value, excluding goodwill | 6,201,000,000 | 6,201,000,000 | |||||||||
Goodwill | 438,000,000 | 438,000,000 | |||||||||
Total purchase price | 6,639,000,000 | 6,639,000,000 | 6,639,000,000 | ||||||||
McMoRan Exploration Co [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Investment Owned, Balance, Shares | 51 | ||||||||||
Current assets | 98,000,000 | 98,000,000 | |||||||||
Subject to amortization | 751,000,000 | 751,000,000 | |||||||||
Not subject to amortization | 1,711,000,000 | 1,711,000,000 | |||||||||
Property, plant, and equipment | 1,000,000 | 1,000,000 | |||||||||
Investment in MMR | 0 | [1] | 0 | [1] | 848,000,000 | ||||||
Other assets | 382,000,000 | 382,000,000 | |||||||||
Current liabilities | -174,000,000 | -174,000,000 | |||||||||
Debt (current and long-term) | -620,000,000 | -620,000,000 | |||||||||
Deferred income taxes | 0 | [2] | 0 | [2] | |||||||
Other long-term liabilities | -262,000,000 | -262,000,000 | |||||||||
Redeemable noncontrolling interest | -259,000,000 | -259,000,000 | |||||||||
Total fair value, excluding goodwill | 1,628,000,000 | 1,628,000,000 | |||||||||
Goodwill | 1,500,000,000 | 1,500,000,000 | |||||||||
Total purchase price | 3,128,000,000 | 3,128,000,000 | 3,128,000,000 | ||||||||
Plains Exploration & Production Company and McMoRan Exploration Co [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 0 | 1,916,000,000 | 0 | 1,916,000,000 | 0 | ||||||
Business Combination, Adjustment to Recognized Identifiable Assets Acquired and Liabilities Assumed Oil and Gas Properties Subject to Depletion | 5,000,000 | ||||||||||
Business Combination, Adjustment to Recognized Identifiable Assets Acquired and Liabilities Assumed Oil and Gas Properties Not Subject to Depletion | 25,000,000 | ||||||||||
Increase in other assets (deferred income tax asset) | 42,000,000 | ||||||||||
(Decrease) increase in goodwill | 22,000,000 | 1,916,000,000 | 22,000,000 | ||||||||
Goodwill impairment | -1,717,000,000 | ||||||||||
Eagle Ford [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
(Decrease) increase in goodwill | -221,000,000 | 221,000,000 | |||||||||
Intersubsegment Eliminations [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Current assets | 0 | 0 | |||||||||
Subject to amortization | 0 | 0 | |||||||||
Not subject to amortization | 0 | 0 | |||||||||
Property, plant, and equipment | 0 | 0 | |||||||||
Investment in MMR | -848,000,000 | [1] | -848,000,000 | [1] | |||||||
Other assets | 0 | 0 | |||||||||
Current liabilities | 0 | 0 | |||||||||
Debt (current and long-term) | 0 | 0 | |||||||||
Deferred income taxes | 0 | [2] | 0 | [2] | |||||||
Other long-term liabilities | 0 | 0 | |||||||||
Redeemable noncontrolling interest | 0 | 0 | |||||||||
Total fair value, excluding goodwill | -848,000,000 | -848,000,000 | |||||||||
Goodwill | 0 | 0 | |||||||||
Total purchase price | ($848,000,000) | ($848,000,000) | |||||||||
Minimum [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair Value Inputs, Energy Measure | 62 | 62 | 90 | ||||||||
Maximum [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair Value Inputs, Energy Measure | 80 | 80 | 98 | ||||||||
[1] | PXP owned 51 million shares of MMR common stock, which were eliminated in FCX's consolidated balance sheet at the acquisition date of MMR. | ||||||||||
[2] | Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 38 percent tax rate, which reflected a 35 percent federal statutory rate and a 3 percent weighted-average of the applicable statutory state tax rates (net of federal benefit). |
DISPOSITIONS_AND_ACQUISITIONS_5
DISPOSITIONS AND ACQUISITIONS (Redeemable Noncontrolling Interest) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 03, 2013 | 31-May-13 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Redeemable noncontrolling interest | $751,000,000 | $716,000,000 | $259,000,000 | |||
Payments for Repurchase of Preferred Stock and Preference Stock | 0 | 228,000,000 | 0 | |||
Royalty Trust Units Issued, Conversion of Debt or Equity Instrument | 17,700,000 | |||||
Royalty Trust Units, Fair Value Disclosure | 31,000,000 | |||||
Plains Offshore Operations Inc. [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Preferred Stock Of Subsidiary | 450,000 | |||||
Proceeds from Issuance of Convertible Preferred Stock | 450,000,000 | |||||
Class of Warrants or Rights, Exercise Price of Warrants or Rights | $20 | |||||
Nondetachable Warrants | 9,100,000 | |||||
Common Stock Held In Escrow | 87,000,000 | |||||
Equity Interest Held By Outside Party, Percent | 20.00% | |||||
Preferred Stock Quarterly Cash Dividend Annual Rate Percentage | 8.00% | |||||
Preferred Stock Dividend Rate Percentage Deferred | 2.00% | |||||
Dividends Payable | 34,000,000 | |||||
Participating Dividends Future Multiple | 4 | |||||
Redeemable noncontrolling interest | $751,000,000 | $716,000,000 | $708,000,000 | |||
8% Convertible Perpetual Preferred Stock [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | |||||
5.75% Convertible Perpetual Preferred Stock, Series 1 [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.75% | |||||
Minimum [Member] | Plains Offshore Operations Inc. [Member] | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Depth of Oil and Gas Properties | 500 |
DISPOSITIONS_AND_ACQUISITIONS_6
DISPOSITIONS AND ACQUISITIONS (Pro Forma) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Business Acquisition [Line Items] | ||||||||||
Revenues | $23,075,000,000 | $22,713,000,000 | ||||||||
Operating income | 6,267,000,000 | 6,815,000,000 | ||||||||
Income from continuing operations | 3,626,000,000 | 4,277,000,000 | ||||||||
Net income attributable to FCX common stockholders | 2,825,000,000 | 3,301,000,000 | ||||||||
Net income per share attributable to FCX common stockholders, basic | $2.71 | $3.17 | ||||||||
Net income per share attributable to FCX common stockholders, diluted | $2.70 | $3.16 | ||||||||
Business Combination, Acquisition Related Costs, Including Acquiree Costs | 519,000,000 | |||||||||
Income Tax Expense (Benefit) Adjustments | -16,000,000 | -183,000,000 | 0 | -199,000,000 | [1] | -205,000,000 | [2],[3] | |||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | -22,000,000 | -5,000,000 | -57,000,000 | -84,000,000 | 190,000,000 | |||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | 128,000,000 | 0 | |||||||
Gain (Loss) on Disposition of Oil and Gas Property | $77,000,000 | |||||||||
[1] | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | |||||||||
[2] | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | |||||||||
[3] | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. |
OWNERSHIP_IN_SUBSIDIARIES_AND_1
OWNERSHIP IN SUBSIDIARIES AND JOINT VENTURES (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2022 | Dec. 31, 2013 | Dec. 31, 1994 |
lb | lb | |||
Summary of investment holdings [Line Items] | ||||
Retained earnings (accumulated deficit) of subsidiary | $128 | $2,742 | ||
Morenci [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Percentage of undivided interest owned by company | 85.00% | |||
Other North America Mines [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 100.00% | |||
Cerro Verde [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 53.56% | |||
El Abra [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 51.00% | |||
Tenke [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 56.00% | |||
Freeport-McMoRan Corporation [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Net assets (liabilities) in subsidiary | 19,600 | |||
Retained earnings (accumulated deficit) of subsidiary | -9,700 | |||
FCX loans outstanding | 0 | |||
Number of pounds of copper purchased from Sumitomo (in pounds) | 82,000,000 | |||
Dollar value of pounds purchased from Sumitomo | 257 | |||
Net receivable from Sumitomo | 11 | 12 | ||
PT Freeport Indonesia [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 81.28% | |||
Net assets (liabilities) in subsidiary | 5,400 | |||
Retained earnings (accumulated deficit) of subsidiary | 5,200 | |||
FCX loans outstanding | 213 | |||
Percent interest in certain assets and future production per terms of the joint venture agreement | 60.00% | |||
Percentage of cash flows from specified annual amounts of copper, gold and silver calculated by reference to proven and probable reserves as of 12/31/1994 (in hundredths) | 100.00% | |||
Percentage of remaining cash flows | 60.00% | |||
Percentage of optional participation of any other future exploration costs shared by joint venture | 60.00% | |||
PT Indocopper Investama [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 100.00% | |||
Company's indirect ownership percentage of a subsidiary through another wholly owned subsidiary | 9.36% | |||
Atlantic Copper [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 100.00% | |||
Net assets (liabilities) in subsidiary | -145 | |||
Retained earnings (accumulated deficit) of subsidiary | -552 | |||
FCX loans outstanding | 579 | |||
Freeport-McMoRan Oil & Gas [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Company's direct ownership percentage | 100.00% | |||
Net assets (liabilities) in subsidiary | 7,200 | |||
Retained earnings (accumulated deficit) of subsidiary | -4,400 | |||
FCX loans outstanding | 4,600 | |||
Rio Tinto Share In Joint Venture [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Percentage interest in joint venture contract of work by third party | 40.00% | |||
Optional Participation Of Future Exploration Costs Shared By Joint Venture Percentage | 40.00% | |||
Percent interest in certain assets and future production per terms of the joint venture agreement | 40.00% | 40.00% | ||
Percentage of optional participation of any other future exploration costs shared by joint venture | 40.00% | |||
Rio Tinto's share of joint venture cash flows | $29 | $33 | ||
Sumitomo's Share in Joint Venture [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Percentage of undivided interest owned by third party | 15.00% | |||
Copper [Member] | PT Freeport Indonesia [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves (in pounds) | 27,100,000,000 | |||
Gold [Member] | PT Freeport Indonesia [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves (in pounds) | 38,400,000 | |||
Silver (ounces) [Member] | PT Freeport Indonesia [Member] | ||||
Summary of investment holdings [Line Items] | ||||
Estimated Recoverable Proven And Probable Reserves (in pounds) | 75,800,000 |
INVENTORIES_INCLUDING_LONGTERM2
INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES (Components of Inventories) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Components of Inventories [Line Items] | ||||||
Raw materials | $238 | $288 | $238 | |||
Work-in-process | 199 | 174 | 199 | |||
Finished goods | 1,146 | 1,099 | 1,146 | |||
Total product inventories | 1,583 | 1,561 | 1,583 | |||
Total current mill and leach stockpiles | 1,705 | 1,914 | 1,705 | |||
Total material and supplies, net | 1,730 | [1] | 1,886 | [1] | 1,730 | [1] |
Long-term mill and leach stockpiles | 2,386 | 2,179 | 2,386 | |||
Inventory Write-down | 76 | 76 | 76 | |||
Inventory obsolescence reserves | 24 | 20 | 24 | |||
Current [Member] | ||||||
Components of Inventories [Line Items] | ||||||
Mill Stockpiles | 91 | 86 | 91 | |||
Leach stockpiles | 1,614 | [2] | 1,828 | 1,614 | [2] | |
Total current mill and leach stockpiles | 1,705 | 1,914 | 1,705 | |||
Long-Term [Member] | ||||||
Components of Inventories [Line Items] | ||||||
Mill Stockpiles | 698 | 360 | 698 | |||
Leach stockpiles | 1,688 | 1,819 | 1,688 | |||
Long-term mill and leach stockpiles | $2,386 | [3] | $2,179 | [3] | $2,386 | [3] |
[1] | Materials and supplies inventory was net of obsolescence reserves totaling $20 million at December 31, 2014, and $24 million at December 31, 2013. | |||||
[2] | Amount is net of a $76 million charge associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles. | |||||
[3] | Estimated metals in stockpiles not expected to be recovered within the next 12 months. |
PROPERTY_PLANT_EQUIPMENT_AND_M2
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2008 | |
Property, Plant and Equipment [Line Items] | |||||
VBPP recorded in connection with the Phelps Dodge acquisition | $2,200,000,000 | ||||
VBPP transferred to proven and probable reserves | 2,000,000 | 22,000,000 | 762,000,000 | ||
Cumulative impairments of VBPP | 482,000,000 | ||||
Mining Operations [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Capitalized interest total | $148,000,000 | $105,000,000 | $81,000,000 |
PROPERTY_PLANT_EQUIPMENT_AND_M3
PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT COSTS, NET (Schedule of PPE) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | $37,484 | $34,249 |
Accumulated depreciation, depletion and amortization | -11,264 | -10,207 |
Property, plant, equipment and mining development costs, net | 26,220 | 24,042 |
Proven and probable reserves [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 4,651 | 4,651 |
Value beyond proven and probable reserves (VBPP) [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 1,042 | 1,044 |
Mining development and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 4,712 | 4,335 |
Buildings and infrastructure [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 5,100 | 4,334 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 11,251 | 10,379 |
Mobile equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | 3,926 | 3,903 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment and mining development costs | $6,802 | $5,603 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Schedule Of Other Assets [Line Items] | ||||
Intangible assets | $334 | [1] | $380 | [1] |
Investments: [Abstract] | ||||
Assurance bond | 115 | [2] | 0 | [2] |
Available-for-sale securities | 46 | 44 | ||
Other | 60 | 63 | ||
Legally restricted funds | 172 | [3] | 392 | [3] |
Loan to a DRC public electric utility | 164 | 152 | ||
Debt issue costs | 141 | 107 | ||
Deferred drillship costs | 113 | 0 | ||
Long-term receivable for income tax refunds | 63 | 77 | ||
Loan to Gécamines (related party) | 37 | 34 | ||
Other | 214 | 151 | ||
Total other assets | 2,077 | 1,798 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 62 | 57 | ||
Legally restricted funds for asset retirement obligations at New Mexico mines | 158 | |||
PT Smelting [Member] | ||||
Investments: [Abstract] | ||||
Equity method investment | 107 | [4] | 71 | [4] |
PT Freeport Indonesia [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Disputed tax assessments | 279 | [5] | 255 | [5] |
Investments: [Abstract] | ||||
Assurance bond | 115 | |||
Cerro Verde [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Disputed tax assessments | 232 | [5] | 72 | [5] |
PT Smelting [Member] | ||||
Investments: [Abstract] | ||||
Company's direct ownership percentage | 25.00% | |||
Unrecognized profit on sales from PT Freeport Indonesia to PT Smelting | 24 | 58 | ||
Bank Time Deposits [Member] | ||||
Investments: [Abstract] | ||||
Legally restricted funds | $210 | |||
[1] | Intangible assets were net of accumulated amortization totaling $62 million at December 31, 2014, and $57 million at December 31, 2013. | |||
[2] | Relates to PT-FI's commitment for smelter development in Indonesia at December 31, 2014 (refer to Note 13 for further discussion). | |||
[3] | Includes $168 million for AROs related to properties in New Mexico at December 31, 2014, and a $210 million time deposit that secured a bank guarantee (until the time deposit was released as security for the bank guarantee in 2014) associated with the Cerro Verde royalty dispute and $158 million for AROs related to properties in New Mexico at December 31, 2013 (refer to Note 12 for further discussion). | |||
[4] | FCX's 25 percent ownership in PT Smelting (smelter and refinery in Gresik, Indonesia) is recorded using the equity method. Amounts were reduced by unrecognized profits on sales from PT-FI to PT Smelting totaling $24 million at December 31, 2014, and $58 million at December 31, 2013. | |||
[5] | Refer to Note 12 for further discussion. |
ACCOUNTS_PAYABLE_AND_ACCRUED_L2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts Payable and Accrued Liabilities [Line Items] | |||||
Commodity derivative contracts | $99 | $320 | |||
Total accounts payable and accrued liabilities | 3,653 | 3,708 | |||
Cash interest paid, net | 637 | 397 | 111 | ||
Accounts Payable and Accrued Liabilities [Member] | |||||
Accounts Payable and Accrued Liabilities [Line Items] | |||||
Accounts payable | 2,439 | 2,144 | |||
Salaries, wages and other compensation | 373 | 352 | |||
Accrued interest | 166 | [1] | 210 | [1] | |
Other accrued taxes | 137 | 142 | |||
Pension, postretirement, postemployment and other employee benefits | 106 | [2] | 161 | [2] | |
Deferred revenue | 105 | 115 | |||
Oil and gas royalty and revenue payable | 76 | 169 | |||
Rio Tinto's share of joint venture cash flows | 29 | 33 | |||
Commodity derivative contracts | 43 | 205 | |||
Other | $179 | $177 | |||
[1] | Third-party interest paid, net of capitalized interest, was $637 million in 2014, $397 million in 2013 and $111 million in 2012. | ||||
[2] | Refer to Note 9 for long-term portion. |
DEBT_Details
DEBT (Details) (USD $) | 12 Months Ended | 3 Months Ended | 121 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2014 | 31-May-13 | Dec. 31, 2015 | Jun. 03, 2013 | Feb. 14, 2013 | Mar. 07, 2013 | Feb. 28, 2012 | Feb. 27, 2015 | |
Debt Instruments [Line Items] | ||||||||||||
Liabilities, Fair Value Adjustment | $226,000,000 | $653,000,000 | ||||||||||
Long-term Debt, Gross | 18,970,000,000 | 20,706,000,000 | 20,706,000,000 | |||||||||
Less current portion of long-term debt and short-term borrownings | -478,000,000 | -312,000,000 | -312,000,000 | |||||||||
Long-term debt | 18,492,000,000 | 20,394,000,000 | 20,394,000,000 | |||||||||
Payments for Repurchase of Preferred Stock and Preference Stock | 0 | 228,000,000 | 0 | |||||||||
Royalty Trust Units Issued, Conversion of Debt or Equity Instrument | 17,700,000 | |||||||||||
Royalty Trust Units, Fair Value Disclosure | 31,000,000 | |||||||||||
Net gain (loss) on early extinguishment of debt | -73,000,000 | 35,000,000 | 168,000,000 | |||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 478,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 651,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,500,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 3,700,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 662,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 11,800,000,000 | |||||||||||
Bridge Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 45,000,000 | |||||||||||
Extinguishment of Debt, Amount | 9,500,000,000 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Letters of Credit Outstanding, Amount | 45,000,000 | |||||||||||
Revolving Credit Facility, Remaining Borrowing Capacity | 4,000,000,000 | |||||||||||
Remaining borrowing capacity available for letters of credit at period end | 1,455,000,000 | |||||||||||
Line of Credit [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 474,000,000 | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.29% | |||||||||||
Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 3,050,000,000 | 4,000,000,000 | 4,000,000,000 | |||||||||
Repayments of Debt | 750,000,000 | |||||||||||
Debt Instrument, Face Amount | 4,000,000,000 | 4,000,000,000 | ||||||||||
Debt Instrument Maturity Date | 31-May-18 | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.67% | |||||||||||
Term of Debt Agreement | 5 years | |||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 650,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 200,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2,200,000,000 | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 6,500,000,000 | |||||||||||
Proceeds from Issuance of Long-term Debt | 2,970,000,000 | 6,400,000,000 | 2,970,000,000 | |||||||||
Net gain (loss) on early extinguishment of debt | 77,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 4,208,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 364,000,000 | |||||||||||
Extinguishment of Debt, Amount | 4,572,000,000 | |||||||||||
Other debt (including equipment capital leases and short-term borrowings) [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 115,000,000 | 158,000,000 | 158,000,000 | |||||||||
Revolving Credit Facility [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 0 | 0 | 0 | |||||||||
Revolving Credit Facility, Maximum Borrowing Capacity | 4,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||||||
Revolving Credit Facility, Expiration Date | 31-May-19 | |||||||||||
Amount of revolving credit facility available to PT Freeport Indonesia | 500,000,000 | |||||||||||
Net gain (loss) on early extinguishment of debt | -4,000,000 | |||||||||||
Line of Credit [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 0 | 0 | ||||||||||
1.40% Senior Notes due 2015 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 0 | 500,000,000 | 500,000,000 | |||||||||
Debt Instrument, Face Amount | 500,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.40% | 1.40% | ||||||||||
Net gain (loss) on early extinguishment of debt | -1,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 500,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 0 | |||||||||||
Extinguishment of Debt, Amount | 500,000,000 | |||||||||||
2.15% Senior Notes due 2017 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||
Debt Instrument, Face Amount | 500,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||||||||||
2.30% Senior Notes due 2017 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 749,000,000 | 0 | 0 | |||||||||
Debt Instrument, Face Amount | 750,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | |||||||||||
2.375% Senior Notes due March 2018 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||||||||
Debt Instrument, Face Amount | 1,500,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.38% | |||||||||||
3.100% Senior Notes due March 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 1,000,000,000 | 999,000,000 | 999,000,000 | |||||||||
Debt Instrument, Face Amount | 1,000,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | |||||||||||
4.00% Senior Notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 598,000,000 | 0 | 0 | |||||||||
Debt Instrument, Face Amount | 600,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||||||||
3.55% Senior Notes due 2022 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 1,996,000,000 | 1,996,000,000 | 1,996,000,000 | |||||||||
Debt Instrument, Face Amount | 2,000,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% | ||||||||||
Debt Instrument, Redemption Period, Start Date | 1-Dec-21 | |||||||||||
Redemption to Principal Amount, Percent | 100.00% | |||||||||||
3.875% Senior Notes due March 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 1,999,000,000 | 1,999,000,000 | 1,999,000,000 | |||||||||
Debt Instrument, Face Amount | 2,000,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |||||||||||
Debt Instrument, Redemption Period, Start Date | 15-Dec-22 | |||||||||||
Redemption to Principal Amount, Percent | 100.00% | |||||||||||
4.55% Senior Notes due 2024 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 849,000,000 | 0 | 0 | |||||||||
Debt Instrument, Face Amount | 850,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | |||||||||||
Debt Instrument, Redemption Period, Start Date | 14-Aug-24 | |||||||||||
Redemption to Principal Amount, Percent | 100.00% | |||||||||||
5.40% Senior Notes due 2034 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 796,000,000 | 0 | 0 | |||||||||
Debt Instrument, Face Amount | 800,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | |||||||||||
Debt Instrument, Redemption Period, Start Date | 14-May-34 | |||||||||||
Redemption to Principal Amount, Percent | 100.00% | |||||||||||
5.450% Senior Notes due March 2043 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 1,991,000,000 | 1,991,000,000 | 1,991,000,000 | |||||||||
Debt Instrument, Face Amount | 2,000,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | |||||||||||
Debt Instrument, Redemption Period, Start Date | 15-Sep-42 | |||||||||||
Redemption to Principal Amount, Percent | 100.00% | |||||||||||
6.125% Senior Notes due 2019 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | -2,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 513,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 40,000,000 | |||||||||||
Extinguishment of Debt, Amount | 553,000,000 | |||||||||||
8.625% Senior Notes due 2019 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 24,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 400,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 41,000,000 | |||||||||||
Extinguishment of Debt, Amount | 441,000,000 | |||||||||||
7.625% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 14,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 300,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 32,000,000 | |||||||||||
Extinguishment of Debt, Amount | 332,000,000 | |||||||||||
6.5% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 10,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 883,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 79,000,000 | |||||||||||
Extinguishment of Debt, Amount | 962,000,000 | |||||||||||
6.625% Senior Notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 3,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 339,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 31,000,000 | |||||||||||
Extinguishment of Debt, Amount | 370,000,000 | |||||||||||
6.75% Senior Notes due 2022 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 8,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 551,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 57,000,000 | |||||||||||
Extinguishment of Debt, Amount | 608,000,000 | |||||||||||
6.875% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Net gain (loss) on early extinguishment of debt | 21,000,000 | |||||||||||
Extinguishment of Debt, Principal Amount | 722,000,000 | |||||||||||
Extinguishment of Debt, Purchase Accounting Adjustments | 84,000,000 | |||||||||||
Extinguishment of Debt, Amount | 806,000,000 | |||||||||||
7.125% Debentures due 2027 [Member] | Debentures [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | |||||||||||
9.5% Senior Notes due 2031 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||||||||||
6.125% Senior Notes due 2034 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | |||||||||||
8.375% Senior Notes Due 2017 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.38% | |||||||||||
Redemption to Principal Amount, Percent | 104.55% | |||||||||||
Net gain (loss) on early extinguishment of debt | 168,000,000 | |||||||||||
Extinguishment of Debt, Amount | 3,000,000,000 | |||||||||||
4% Convertible Senior Notes due 2017 [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Convertible Debt, Fair Value Disclosures | 306,000,000 | |||||||||||
Payments for Repurchase of Preferred Stock and Preference Stock | 270,000,000 | |||||||||||
Royalty Trust Units Issued, Conversion of Debt or Equity Instrument | 21,000,000 | |||||||||||
Royalty Trust Units, Fair Value Disclosure | 36,000,000 | |||||||||||
Cerro Verde [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 425,000,000 | 0 | 0 | |||||||||
Revolving Credit Facility, Maximum Borrowing Capacity | 1,800,000,000 | |||||||||||
Revolving Credit Facility, Expiration Date | 10-Mar-19 | |||||||||||
Letters of Credit Outstanding, Amount | 0 | |||||||||||
Remaining borrowing capacity available for letters of credit at period end | 500,000,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | |||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.07% | |||||||||||
Term of Debt Agreement | 5 years | |||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Term When Funds Are Available to be Drawn on Debt Agreement | 2 years | |||||||||||
McMoRan Exploration Co [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Liabilities, Fair Value Adjustment | 62,000,000 | |||||||||||
Debt Instrument, Face Amount | 558,000,000 | |||||||||||
McMoRan Exploration Co [Member] | 11.875% Senior Notes due 2014 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.88% | |||||||||||
Net gain (loss) on early extinguishment of debt | -10,000,000 | |||||||||||
Repayments of Assumed Debt | 299,000,000 | |||||||||||
McMoRan Exploration Co [Member] | 4% Convertible Senior Notes due 2017 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||||||||
Plains Exploration & Production Company [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Business Acquisition, Effective Date of Acquisition | 31-May-13 | |||||||||||
Plains Exploration & Production Company [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Repayments of Assumed Debt | 3,900,000,000 | |||||||||||
Plains Exploration & Production Company [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Liabilities, Fair Value Adjustment | 716,000,000 | |||||||||||
Debt Instrument, Face Amount | 6,400,000,000 | |||||||||||
Plains Exploration & Production Company [Member] | 6.125% Senior Notes due 2019 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 255,000,000 | 817,000,000 | 817,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | |||||||||||
Debt Conversion, Converted Instrument, Expiration or Due Date | 15-Jun-16 | |||||||||||
Plains Exploration & Production Company [Member] | 8.625% Senior Notes due 2019 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 0 | 447,000,000 | 447,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.63% | |||||||||||
Plains Exploration & Production Company [Member] | 7.625% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 0 | 336,000,000 | 336,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.63% | |||||||||||
Plains Exploration & Production Company [Member] | 6.5% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 670,000,000 | 1,647,000,000 | 1,647,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |||||||||||
Debt Conversion, Converted Instrument, Expiration or Due Date | 15-Nov-15 | |||||||||||
Plains Exploration & Production Company [Member] | 6.625% Senior Notes due 2021 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 284,000,000 | 659,000,000 | 659,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.63% | |||||||||||
Debt Conversion, Converted Instrument, Expiration or Due Date | 1-May-16 | |||||||||||
Plains Exploration & Production Company [Member] | 6.75% Senior Notes due 2022 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 493,000,000 | 1,111,000,000 | 1,111,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||||||||
Debt Conversion, Converted Instrument, Expiration or Due Date | 1-Feb-17 | |||||||||||
Plains Exploration & Production Company [Member] | 6.875% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 866,000,000 | 1,686,000,000 | 1,686,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |||||||||||
Debt Conversion, Converted Instrument, Expiration or Due Date | 15-Feb-18 | |||||||||||
Plains Exploration & Production Company [Member] | 7.625% Senior Notes due 2018 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.63% | |||||||||||
Repayments of Assumed Debt | 415,000,000 | |||||||||||
Freeport McMoRan Corporation [Member] | 7.125% Debentures due 2027 [Member] | Debentures [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 115,000,000 | 115,000,000 | 115,000,000 | |||||||||
Freeport McMoRan Corporation [Member] | 9.5% Senior Notes due 2031 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 129,000,000 | 130,000,000 | 130,000,000 | |||||||||
Freeport McMoRan Corporation [Member] | 6.125% Senior Notes due 2034 [Member] | Senior Notes [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Long-term Debt, Gross | 116,000,000 | 115,000,000 | 115,000,000 | |||||||||
Option 1 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||
Option 1 [Member] | Revolving Credit Facility [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||
Option 2 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | ABR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||
Option 2 [Member] | Revolving Credit Facility [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | ABR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||
Tranche 1 [Member] | Cerro Verde [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Revolving Credit Facility, Expiration Date | 30-Sep-17 | |||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity, Percentage | 85.00% | |||||||||||
Tranche 2 [Member] | Cerro Verde [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Revolving Credit Facility, Expiration Date | 31-Mar-18 | |||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity, Percentage | 70.00% | |||||||||||
Tranche 3 [Member] | Cerro Verde [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Revolving Credit Facility, Expiration Date | 30-Sep-18 | |||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity, Percentage | 35.00% | |||||||||||
Fourth-Quarter 2014 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Repayments of Debt | 100,000,000 | |||||||||||
2015 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Repayments of Debt | 550,000,000 | |||||||||||
First-Quarter 2016 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Repayments of Debt | 100,000,000 | |||||||||||
Subsequent Event [Member] | Bank Term Loan [Member] | ||||||||||||
Long-term Debt, by Maturity [Abstract] | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 225,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 269,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,100,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 299,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | $1,200,000,000 | |||||||||||
Subsequent Event [Member] | Option 1 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||||
Subsequent Event [Member] | Option 1 [Member] | Revolving Credit Facility [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||||
Subsequent Event [Member] | Option 2 [Member] | Bank Term Loan [Member] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | ABR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||||
Subsequent Event [Member] | Option 2 [Member] | Revolving Credit Facility [Member] | Credit Facility [Domain] | ||||||||||||
Debt Instruments [Line Items] | ||||||||||||
Debt Instrument, Description of Variable Rate Basis | ABR | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
OTHER_LIABILITIES_INCLUDING_EM2
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Vesting Period | 5 years | ||||
Pension, postretirement, postemployment and other employment benefits | $1,430 | [1] | $1,225 | [1] | |
Commodity derivative contracts | 99 | 320 | |||
Reserve for uncertain tax benefits | 68 | 87 | |||
Other | 363 | 263 | |||
Total other liabilities | 1,861 | 1,690 | |||
Number of years Mercer Pension Discount Curve consists of spot interest rates at half-year increments | 30 years | ||||
Years of service required for annuity to equal percentage of executive's highest average compensation for any consecutive three-year period during the preceeding five years before retirement | 25 years | ||||
Estimated future average expected rate of return per annum on pension assets | 7.25% | ||||
Estimated future average expected rate of return on passively managed pension assets | 6.75% | ||||
Estimated future average expected premium on actively managed pension assets | 0.50% | ||||
Accumulated benefit obligations in excess of plan assets [Abstract] | |||||
Projected benefit obligation | 2,221 | 2,180 | |||
Accumulated benefit obligation | 2,090 | 1,933 | |||
Fair value of plan assets | 1,433 | 1,490 | |||
Balance of unfunded defined contribution plan | 69 | 65 | |||
Costs charged to operations for employee savings plans and defined contribution plans | 79 | 66 | 43 | ||
Costs capitalized to oil and gas properties for employee savings plans and defined benefit contribution plans | 11 | 5 | |||
Other Liabilities [Member] | |||||
Employee Benefits [Line Items] | |||||
Commodity derivative contracts | $0 | $115 | |||
[1] | Refer to Note 7 for current portion. |
OTHER_LIABILITIES_INCLUDING_EM3
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Target Asset Allocation) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Alternative Investments [Member] | |
Target asset allocation [Line Items] | |
Defined benefit plan, target allocation percentage of assets | 10.00% |
Equity Investments [Member] | |
Target asset allocation [Line Items] | |
Defined benefit plan, target allocation percentage of assets | 45.00% |
Fixed Income Investments [Member] | |
Target asset allocation [Line Items] | |
Defined benefit plan, target allocation percentage of assets | 45.00% |
OTHER_LIABILITIES_INCLUDING_EM4
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Schedule of Disclosures) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
USD ($) | USD ($) | USD ($) | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Postretirement Medical And Life Insurance [Member] | Postretirement Medical And Life Insurance [Member] | Other Benefits [Member] | Other Benefits [Member] | Minimum [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | FCX [Member] | FCX [Member] | FCX [Member] | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | Pension plan [Member] | |||||||||
USD ($) | USD ($) | USD ($) | IDR | IDR | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Schedule of disclosures of defined benefit plans [Line Items] | ||||||||||||||||||||||||
Exchange Rate Of Rupiah To Dollars | 12,378 | 12,128 | ||||||||||||||||||||||
Defined benefit plan, expected return on plan assets | 7.25% | 7.75% | ||||||||||||||||||||||
Change in benefit obligation [Roll Forward] | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $259 | $240 | $1,871 | $1,954 | ||||||||||||||||||||
Service cost | 22 | 20 | 17 | 30 | 30 | 27 | ||||||||||||||||||
Interest cost | 23 | 14 | 14 | 92 | 77 | 79 | ||||||||||||||||||
Actuarial losses (gains) | 30 | 13 | 278 | -103 | ||||||||||||||||||||
Plan Amendment | 0 | 33 | 0 | 0 | ||||||||||||||||||||
Foreign exchange losses (gains) | -7 | -53 | -2 | 1 | ||||||||||||||||||||
Benefits paid | -9 | -8 | -90 | -88 | ||||||||||||||||||||
Benefits obligation at end of year | 318 | 259 | 240 | 2,179 | 1,871 | 1,954 | ||||||||||||||||||
Change in plan assets [Roll Forward] | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 124 | 130 | 1,350 | 1,300 | ||||||||||||||||||||
Actual return on plan assets | 20 | -3 | 151 | 112 | ||||||||||||||||||||
Employer contributions | 55 | [1] | 35 | [1] | 6 | [1] | 26 | [1] | ||||||||||||||||
Foreign exchange gains (losses) | -5 | -30 | -1 | 0 | ||||||||||||||||||||
Benefits paid | -9 | -8 | -90 | -88 | ||||||||||||||||||||
Fair value of plan assets at end of year | 185 | 124 | 130 | 1,416 | 1,350 | 1,300 | ||||||||||||||||||
Funded status at end of year | -133 | -135 | -763 | -521 | ||||||||||||||||||||
Accumulated benefit obligation | 168 | 141 | 2,048 | 1,742 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations [Abstract] | ||||||||||||||||||||||||
Discount rate | 3.60% | 4.30% | 8.25% | 9.00% | 4.10% | 5.00% | ||||||||||||||||||
Rate of compensation increase | 9.00% | 9.00% | 3.25% | 3.75% | ||||||||||||||||||||
Balance sheet classification of funded status: [Abstract] | ||||||||||||||||||||||||
Other assets | 0 | 0 | 8 | 8 | ||||||||||||||||||||
Accounts payable and accrued liabilities | -17 | -19 | -6 | -9 | 0 | 0 | -4 | -4 | ||||||||||||||||
Other liabilities | -162 | -163 | -38 | -75 | -133 | -135 | -767 | -525 | ||||||||||||||||
Total | -133 | -135 | -763 | -521 | ||||||||||||||||||||
Estimated future employer contributions in next fiscal year | 20 | 98 | ||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations [Abstract] | ||||||||||||||||||||||||
Discount rate | 4.30% | 3.50% | 4.20% | 9.00% | 6.25% | 7.00% | 5.00% | [2] | 4.10% | [2] | 4.60% | [2] | ||||||||||||
Expected return on plan assets | 7.75% | 7.50% | 9.25% | 7.50% | [2] | 7.50% | [2] | 7.50% | [2] | |||||||||||||||
Rate of compensation increase | 9.00% | 8.00% | 8.00% | 3.75% | [2] | 3.75% | [2] | 3.75% | [2] | |||||||||||||||
Threshold for Amortization of Actuarial Gains (Losses), Percent | 10.00% | |||||||||||||||||||||||
Components of net periodic benefit (income) cost and other amounts recognized in other comprehensive income [Abstract] | ||||||||||||||||||||||||
Service cost | 22 | 20 | 17 | 30 | 30 | 27 | ||||||||||||||||||
Interest cost | 23 | 14 | 14 | 92 | 77 | 79 | ||||||||||||||||||
Expected return on plan assets | -10 | -10 | -9 | -98 | -95 | -86 | ||||||||||||||||||
Amortization of prior service cost | 3 | 0 | 1 | -1 | 0 | -1 | ||||||||||||||||||
Amortization of net actuarial losses | 8 | 8 | 7 | 28 | 38 | 33 | ||||||||||||||||||
Net periodic benefit cost | 46 | 32 | 30 | 51 | 50 | 52 | ||||||||||||||||||
Amounts recognized in other comprehensive loss (income) [Abstract] | ||||||||||||||||||||||||
Prior service (credit) cost | 33 | 28 | 32 | |||||||||||||||||||||
Prior service (credit) cost, net of tax | 0 | 21 | 0 | 15 | 17 | |||||||||||||||||||
Actuarial net loss (gain) | 749 | 542 | ||||||||||||||||||||||
Actuarial net loss (gain), net of tax | 161 | -73 | 69 | 456 | 326 | |||||||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 777 | 574 | ||||||||||||||||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 471 | 343 | ||||||||||||||||||||||
Estimated actuarial net loss (gain) in next fiscal year | 52 | |||||||||||||||||||||||
Estimated actuarial net loss (gain) in next fiscal year, net of tax | 32 | |||||||||||||||||||||||
Assumed health care cost trend rates abstract | ||||||||||||||||||||||||
Health care cost trend rates for the next fiscal year | 7.50% | |||||||||||||||||||||||
Duration over which health care costs reach ultimate trend rate | 15 years | |||||||||||||||||||||||
Ultimate health care cost trend rate | 4.25% | |||||||||||||||||||||||
Expected cash flows for benefit plans [Abstract] | ||||||||||||||||||||||||
2015 | 17 | 20 | [3] | 97 | ||||||||||||||||||||
2016 | 16 | 9 | [3] | 155 | ||||||||||||||||||||
2017 | 15 | 16 | [3] | 103 | ||||||||||||||||||||
2018 | 14 | 20 | [3] | 107 | ||||||||||||||||||||
2019 | 15 | 24 | [3] | 110 | ||||||||||||||||||||
2020-2024 | 64 | 172 | [3] | 603 | ||||||||||||||||||||
Estimated Other Comprehensive Income, Defined Benefit Plans, Prior Service Cost Arising During Period, Before Tax | $7 | $9 | $10 | |||||||||||||||||||||
[1] | Employer contributions for 2015 are expected to approximate $98 million for the FCX plans and $20 million for the PT-FI plan (based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar). | |||||||||||||||||||||||
[2] | The assumptions shown relate only to the FMC plans. | |||||||||||||||||||||||
[3] | Based on a December 31, 2014, exchange rate of 12,378 Indonesian rupiah to one U.S. dollar. |
OTHER_LIABILITIES_INCLUDING_EM5
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Schedule of FV of Financial Assets for Pension Plans) (Details) (Pension plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
FCX [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $1,416 | $1,350 | $1,300 | ||
Cash and Receivables In Plan Assets | 19 | 18 | |||
Payables In Plan Assets | -9 | -14 | |||
PT Freeport Indonesia [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 185 | 124 | 130 | ||
Cash and Receivables In Plan Assets | 101 | [1] | 62 | [1] | |
Investments [Member] | FCX [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,406 | 1,346 | |||
Investments [Member] | FCX [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 63 | 215 | |||
Investments [Member] | FCX [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,250 | 1,041 | |||
Investments [Member] | FCX [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 93 | 90 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global equity [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 487 | 623 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 487 | 623 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global fixed income securities [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 106 | ||||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global fixed income securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global fixed income securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 106 | ||||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Global fixed income securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Fixed income debt securities [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 99 | 30 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Fixed income debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Fixed income debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 99 | 30 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Fixed income debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. small-cap equity [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 69 | 65 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. small-cap equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. small-cap equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 69 | 65 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. small-cap equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. real estate securities [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 40 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. real estate securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. real estate securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 40 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | U.S. real estate securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Real estate property [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 47 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Real estate property [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Real estate property [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Real estate property [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 47 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Short-term Investments [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 5 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 5 | |||
Investments [Member] | FCX [Member] | Commingled/collective funds [Member] | Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Emerging markets equity [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 38 | 41 | |||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 38 | 41 | |||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Government bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 43 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Government bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 43 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Government bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Government bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Corporate bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 33 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 33 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Open-ended mutual funds [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets equity [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 26 | |||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 26 | |||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets equity [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Foreign bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 51 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Foreign bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 51 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Foreign bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Foreign bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 20 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 20 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Mutual funds [Member] | Emerging markets bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||||
Investments [Member] | FCX [Member] | Fixed income [Member] | Government bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 244 | 198 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Government bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Government bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 244 | 198 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Government bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Corporate bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 148 | 52 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 148 | 52 | |||
Investments [Member] | FCX [Member] | Fixed income [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Private equity investments [Member] | Private equity investments [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 39 | 43 | |||
Investments [Member] | FCX [Member] | Private equity investments [Member] | Private equity investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Private equity investments [Member] | Private equity investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | FCX [Member] | Private equity investments [Member] | Private equity investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 39 | 43 | |||
Investments [Member] | FCX [Member] | Other investments [Member] | Other investments [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 35 | 29 | |||
Investments [Member] | FCX [Member] | Other investments [Member] | Other investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 1 | |||
Investments [Member] | FCX [Member] | Other investments [Member] | Other investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 35 | 28 | |||
Investments [Member] | FCX [Member] | Other investments [Member] | Other investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 84 | 62 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 84 | 62 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Government bonds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 27 | 23 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Government bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 27 | 23 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Government bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Government bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Common stocks [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 43 | 27 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Common stocks [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 43 | 27 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Common stocks [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Common stocks [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Mutual funds [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14 | 12 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Mutual funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14 | 12 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Mutual funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Investments [Member] | PT Freeport Indonesia [Member] | Mutual funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair value of plan assets measurement [Line items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $0 | $0 | |||
[1] | Cash consists primarily of short-term time deposits. |
OTHER_LIABILITIES_INCLUDING_EM6
OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (FV, Assets Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, at the beginning of the period | $90 | $86 |
Realized gains (losses) | 2 | 1 |
Net unrealized gains (losses) related to assets still held at the end of the year | 5 | 5 |
Purchases | 1 | 3 |
Sales | -1 | -1 |
Settlements, net | -4 | -4 |
Fair Value, at the end of the period | 93 | 90 |
Real estate property [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, at the beginning of the period | 47 | 41 |
Realized gains (losses) | 2 | 1 |
Net unrealized gains (losses) related to assets still held at the end of the year | 6 | 6 |
Purchases | 0 | 0 |
Sales | -1 | -1 |
Settlements, net | 0 | 0 |
Fair Value, at the end of the period | 54 | 47 |
Private equity investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, at the beginning of the period | 43 | 45 |
Realized gains (losses) | 0 | 0 |
Net unrealized gains (losses) related to assets still held at the end of the year | -1 | -1 |
Purchases | 1 | 3 |
Sales | 0 | 0 |
Settlements, net | -4 | -4 |
Fair Value, at the end of the period | $39 | $43 |
STOCKHOLDERS_EQUITY_AND_STOCKB2
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 7 Months Ended | 3 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Stock Based Compensation Included In General And Administrative Expense | $79 | $145 | $77 | |||||
Stock Based Compensation Included In Production and Delivery Expense | 28 | 28 | 23 | |||||
Capitalized costs | -23 | -13 | 0 | |||||
Stock-based compensation | 130 | 186 | 100 | |||||
Tax Benefit and Noncontrolling Interests' Share | -42 | -66 | -39 | |||||
Impact on net income | 65 | 107 | 61 | |||||
Stock appreciation rights outstanding and included in stock options | 1,413,153 | |||||||
Accounts payable and accrued liabilities | 3,653 | 3,708 | 3,708 | 3,708 | ||||
Share-based Compensation [Roll Forward] | ||||||||
Balance at beginning of period (in number of options/units) | 45,130,661 | |||||||
Granted (in number of options/units) | 3,276,000 | |||||||
Exercised (in number of options/units) | -1,950,130 | |||||||
Expired/Forfeited (in number of options/units) | -526,792 | |||||||
Balance at end of period (in number of options/units) | 45,929,739 | 45,130,661 | 45,130,661 | 45,130,661 | ||||
Stock options, stock appreciation rights, restricted stock units and additional disclosures [Abstract] | ||||||||
Weighted-average exercise price at beginning of period (in dollars per option) | $35.39 | |||||||
Granted (in dollars per option) | $31.01 | |||||||
Exercised (in dollars per option) | $21.23 | |||||||
Expired/Forfeited (in dollars per option) | $37.51 | |||||||
Weighted-average exercise price at end of period (in dollars per option) | $35.65 | $35.39 | $35.39 | $35.39 | ||||
Weighted-average remaining contractual term (in years) | 5 years 1 month | |||||||
Vested and exercisable at end of period (in options) | 35,062,748 | |||||||
Weighted-average option price of vested and exercisable (in dollars per option) | $35.15 | |||||||
Aggregate intrinsic value of outstanding | 38 | |||||||
Weighted-average remaining contractual term of vested and exercisable (in years) | 4 years 2 months | |||||||
Aggregate intrinsic value of vested and exercisable | 38 | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Shares tendered to pay exercise price and minimum required taxes (in shares) | 474,480 | [1] | 3,294,624 | [1] | 515,558 | [1] | ||
Cash received from exercise of stock options | 12 | 8 | 15 | |||||
Actual tax benefit realized for tax deductions | 16 | 8 | 16 | |||||
Amount paid for employee taxes | 8 | 105 | 16 | |||||
Performance Shares [Member] | ||||||||
Share-based Compensation [Roll Forward] | ||||||||
Granted (in number of options/units) | 344,000 | |||||||
Cash Settled Restricted Stock Units [Member] | ||||||||
Share-based Compensation [Roll Forward] | ||||||||
Balance at beginning of period (in number of options/units) | 2,219,812 | |||||||
Granted (in number of options/units) | 2,204,986 | |||||||
Vested (in number of options/units) | -544,048 | |||||||
Expired/Forfeited (in number of options/units) | -293,186 | |||||||
Balance at end of period (in number of options/units) | 3,587,564 | 2,219,812 | 2,219,812 | 2,219,812 | ||||
Stock options, stock appreciation rights, restricted stock units and additional disclosures [Abstract] | ||||||||
Restricted Stock Units - weighted average grant date fair value | $30.99 | $31.05 | $31.05 | $31.05 | ||||
Granted - Weighted Average Grant Date Fair Value | $30.95 | |||||||
Vested - weighted average grant date fair value | $31.05 | |||||||
Forfeited - weighted average grant date fair value | $31.01 | |||||||
Weighted-average remaining contractual term (in years) | 1 year 4 months | |||||||
Aggregate intrinsic value of outstanding | 84 | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Total grant-date fair value of restricted stock units granted | 68 | 70 | ||||||
Total intrinsic value of restricted stock units vested | 18 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Annual Vesting Percentage Of Options | 33.00% | |||||||
Share-based Compensation [Roll Forward] | ||||||||
Balance at beginning of period (in number of options/units) | 4,255,476 | |||||||
Granted (in number of options/units) | 2,161,700 | |||||||
Vested (in number of options/units) | -436,610 | |||||||
Expired/Forfeited (in number of options/units) | -175,421 | |||||||
Balance at end of period (in number of options/units) | 5,805,145 | 4,255,476 | 4,255,476 | 4,255,476 | ||||
Stock options, stock appreciation rights, restricted stock units and additional disclosures [Abstract] | ||||||||
Restricted Stock Units - weighted average grant date fair value | $33.57 | $35.13 | $35.13 | $35.13 | ||||
Granted - Weighted Average Grant Date Fair Value | $31.17 | |||||||
Vested - weighted average grant date fair value | $37.93 | |||||||
Forfeited - weighted average grant date fair value | $31.46 | |||||||
Weighted-average remaining contractual term (in years) | 4 years 8 months 12 days | |||||||
Aggregate intrinsic value of outstanding | 128 | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Total grant-date fair value of restricted stock units granted | 67 | 125 | 14 | |||||
Total intrinsic value of restricted stock units vested | 15 | 12 | 28 | |||||
Total unrecognized compensation cost related to unvested stock options expected to be recognized over a weighted-average period | 41 | |||||||
Weighted-average period used in calculating unrecognized compensation cost, stock options (in years) | 1 year 7 months | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Annual Vesting Percentage Of Options | 33.00% | |||||||
Expiration Period Of Options | 5 years | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Weighted-average expected dividend rate | 4.30% | |||||||
Weighted-average grant-date fair value (in dollars per option) | $7 | |||||||
Total intrinsic value of options exercised | 5 | 3 | ||||||
Employee Stock Option [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Annual Vesting Percentage Of Options | 25.00% | |||||||
Expiration Period Of Options | 10 years | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Weighted-average expected volatility | 36.60% | 48.90% | 52.00% | |||||
Expected life of options (in years) | 4 years 11 months 1 day | 4 years 7 months 27 days | 4 years 6 months 15 days | |||||
Weighted-average expected dividend rate | 3.50% | 3.30% | 3.10% | |||||
Risk free interest rate | 1.70% | 0.70% | 0.70% | |||||
Weighted-average grant-date fair value (in dollars per option) | $7.43 | $10.98 | $15.60 | |||||
Total intrinsic value of options exercised | 17 | 10 | 34 | |||||
Fair value of options vested | 76 | 101 | 77 | |||||
Total unrecognized compensation cost related to unvested stock options expected to be recognized over a weighted-average period | 48 | |||||||
Weighted-average period used in calculating unrecognized compensation cost, stock options (in years) | 1 year 5 months | |||||||
Minimum [Member] | Performance Shares [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Performance Share Unit Payout | 0.00% | |||||||
Minimum [Member] | Cash Settled Restricted Stock Units [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Expiration Period Of Options | 3 years | |||||||
Minimum [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Weighted-average expected volatility | 30.20% | |||||||
Expected life of options (in years) | 1 year | |||||||
Risk free interest rate | 0.20% | |||||||
Maximum [Member] | ||||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Maximum [Member] | Performance Shares [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Performance Share Unit Payout | 200.00% | |||||||
Maximum [Member] | Cash Settled Restricted Stock Units [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Expiration Period Of Options | 5 years | |||||||
Maximum [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Weighted-average expected volatility | 32.40% | |||||||
Expected life of options (in years) | 3 years | |||||||
Risk free interest rate | 1.00% | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Accounts payable and accrued liabilities | 2 | |||||||
Cash Settled Restricted Stock Units [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Accounts payable and accrued liabilities | 28 | 17 | 17 | 17 | ||||
Other Liabilities | 29 | 19 | 19 | 19 | ||||
Employment Restructuring Arrangement [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Stock Based Compensation Included In General And Administrative Expense | $37 | |||||||
Share-based Compensation [Roll Forward] | ||||||||
Granted (in number of options/units) | 1,000,000 | |||||||
Outside Directors [Member] | ||||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Executive Officers Performance Based [Member] | ||||||||
Stockholder's Equity and Stock-based Compensation [Line Items] | ||||||||
Minimum Five Year Return Required For Restricted Stock Units To Vest Over Three Years | 6.00% | |||||||
Fair value assumptions and methodology [Abstract] | ||||||||
Percent Reduction In Restrcited Stock Units If Performance Is Below Level Defined In Agreement | 20.00% | |||||||
[1] | Under terms of the related plans, upon exercise of stock options and vesting of RSUs, employees may tender existing FCX shares to FCX to pay the exercise price and/or the minimum required taxes. |
STOCKHOLDERS_EQUITY_AND_STOCKB3
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Common Stock) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2013 | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Common Stock) [Abstract] | ||||
Authorized shares of capital stock | 1,850,000,000 | 1,850,000,000 | ||
Authorized shares of common stock | 1,800,000,000 | 1,800,000,000 | ||
Authorized shares of preferred stock | 50,000,000 | 50,000,000 | ||
Remaining shares available under open-market share purchase program | 23,700,000 | |||
Authorized annual rate of common stock dividend (in dollars per share) | $1.25 | |||
Supplemental common stock dividend (in dollars per share) | $1 | |||
Authorized quarterly rate of common stock dividend (in dollars per share) | $0.31 | |||
Dividends Payable, Date Declared | 19-Dec-14 | |||
Dividends Payable, Date to be Paid | 2-Feb-15 | |||
Dividends Payable, Date of Record | 15-Jan-15 |
STOCKHOLDERS_EQUITY_AND_STOCKB4
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Stock Award Plans) (Details) (2006 stock incentive plan [Member]) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
2006 stock incentive plan [Member] | |
Award Detail [Line Items] | |
Number of common shares available for issuance under each of the stock award plans | 74 |
Number of shares available for grant | 19.6 |
STOCKHOLDERS_EQUITY_AND_STOCKB5
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Accumulated Other Comprehensive Income) [Abstract] | |||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ($6) | ($5) | ($4) | ($4) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 10 | 10 | 5 | 6 | |||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | -548 | -410 | -507 | -467 | |||
Accumulated other comprehensive loss | -544 | -405 | -506 | -465 | |||
Translation adjustments and unrealized losses on securities | -1 | [1],[2],[3],[4] | -1 | [1],[2],[3] | 0 | [1],[2],[3],[4] | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | [1],[2],[3],[4] | 0 | [1],[2],[3] | -1 | [1],[2],[3],[4] | |
Other Comprehensive Income (Loss), Pension and Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax, Portion Attributable to Parent | -162 | [1],[2],[3],[4] | 67 | [1],[2],[3] | -66 | [1],[2],[3],[4] | |
Other Comprehensive Income (Loss), Net of Tax, Amount Attributable to Parent, Before Reclassification Adjustments | -163 | [1],[2],[3],[4] | 66 | [1],[2],[3] | -67 | [1],[2],[3],[4] | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | [5] | 5 | [5] | 0 | [5] | |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax | 24 | [5] | 30 | [5] | 26 | [5] | |
Other Comprehensive Income (Loss), Net of Tax, Amount Attributable to Parent, Reclassification Adjustments | 24 | [5] | 35 | [5] | 26 | [5] | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | -252 | 126 | -106 | ||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, before Tax | 33 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 1 | 11 | 3 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized (Gain) Loss Arising During Period, Tax | 94 | -37 | 39 | ||||
Other Comprehensive Income (Loss), Valuation Allowance, Deferred Tax Asset, Change in Amount | 5 | 0 | 1 | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, before Reclassification Adjustments, Tax | $14 | $17 | $15 | ||||
[1] | Includes foreign exchange gains (losses), net of noncontrolling interest, totaling $3 million for 2012, $11 million for 2013 and $1 million for 2014. | ||||||
[2] | Includes tax benefits (provision) totaling $39 million for 2012, $(37) million for 2013 and $94 million for 2014. | ||||||
[3] | Includes net actuarial (losses) gains, net of noncontrolling interest, totaling $(106) million for 2012, $126 million for 2013 and $(252) million for 2014. The year 2013 also included $33 million for prior service costs. | ||||||
[4] | Includes adjustments to deferred tax valuation allowance of $1 million for 2012 and $5 million for 2014. | ||||||
[5] | Includes amortization primarily related to actuarial losses that were net of taxes of $15 million for 2012, $17 million for 2013 and $14 million for 2014. |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2019 | Nov. 03, 2014 | ||||
Income before income taxes and equity in affiliated companies' net earnings [Abstract] | |||||||||||||||
United States | ($2,997,000,000) | $1,104,000,000 | $1,539,000,000 | ||||||||||||
Foreign | 2,573,000,000 | 3,809,000,000 | 3,948,000,000 | ||||||||||||
Total | -424,000,000 | 4,913,000,000 | 5,487,000,000 | ||||||||||||
Current income taxes: | |||||||||||||||
Federal | 281,000,000 | 203,000,000 | 238,000,000 | ||||||||||||
State | 35,000,000 | 9,000,000 | 7,000,000 | ||||||||||||
Foreign | 1,128,000,000 | 1,081,000,000 | 1,002,000,000 | ||||||||||||
Total current | 1,444,000,000 | 1,293,000,000 | 1,247,000,000 | ||||||||||||
Deferred income taxes (benefits): | |||||||||||||||
Federal | -606,000,000 | 234,000,000 | 87,000,000 | ||||||||||||
State | -214,000,000 | -35,000,000 | 18,000,000 | ||||||||||||
Foreign | 33,000,000 | 346,000,000 | 363,000,000 | ||||||||||||
Total deferred | -787,000,000 | 545,000,000 | 468,000,000 | ||||||||||||
Adjustments | -16,000,000 | -183,000,000 | 0 | -199,000,000 | [1] | -205,000,000 | [2],[3] | ||||||||
Federal operating loss carryforwards | -333,000,000 | [4] | -164,000,000 | [4] | 0 | ||||||||||
Provision for income taxes | 324,000,000 | [5],[6] | 1,475,000,000 | [7] | 1,510,000,000 | [8] | |||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | -22,000,000 | -5,000,000 | -57,000,000 | -84,000,000 | 190,000,000 | ||||||||||
Deferred Other Tax Expense (Benefit) | 16,000,000 | ||||||||||||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability, Environmental Matters | -76,000,000 | ||||||||||||||
Effective Date, Stability Agreement | 1-Jan-14 | ||||||||||||||
Income tax expense (benefit), reconciliation [Abstract] | |||||||||||||||
U.S. federal statutory tax rate | -149,000,000 | 1,720,000,000 | 1,920,000,000 | ||||||||||||
Foreign tax credit limitation | 167,000,000 | 117,000,000 | 110,000,000 | ||||||||||||
Percentage depletion | -263,000,000 | [9] | -223,000,000 | -263,000,000 | |||||||||||
Withholding and other impacts on foreign earnings | 161,000,000 | 306,000,000 | -17,000,000 | ||||||||||||
Effect of foreign rates different than the U.S. federal statutory rate | -135,000,000 | -223,000,000 | -204,000,000 | ||||||||||||
Valuation allowance on minimum tax credits | 0 | -190,000,000 | -9,000,000 | ||||||||||||
Goodwill impairment | 601,000,000 | 0 | 0 | ||||||||||||
Goodwill transferred to full cost pool | 77,000,000 | 0 | 0 | ||||||||||||
State income taxes | -115,000,000 | -43,000,000 | 17,000,000 | ||||||||||||
Other items, net | -20,000,000 | 11,000,000 | -44,000,000 | ||||||||||||
Provision for income taxes | 324,000,000 | [5],[6] | 1,475,000,000 | [7] | 1,510,000,000 | [8] | |||||||||
Effective income tax rate, reconciliation [Abstract] | |||||||||||||||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |||||||||||
Foreign tax credit limitation | -39.00% | 2.00% | 2.00% | ||||||||||||
Percentage depletion | 62.00% | -5.00% | -5.00% | ||||||||||||
Withholding and other impacts on foreign earnings | -38.00% | 7.00% | 0.00% | ||||||||||||
Effect of foreign rates different than the U.S. federal statutory rate | 32.00% | -5.00% | -4.00% | ||||||||||||
Valuation allowance on minimum tax credits | 0.00% | -4.00% | 0.00% | ||||||||||||
Goodwill impairment | -142.00% | 0.00% | 0.00% | ||||||||||||
Goodwill transferred to full cost pool | -18.00% | 0.00% | 0.00% | ||||||||||||
State income taxes | 3.00% | 27.00% | 0.00% | 0.00% | |||||||||||
Other items, net | 5.00% | 0.00% | 0.00% | ||||||||||||
Provision for income taxes | -76.00% | 30.00% | 28.00% | ||||||||||||
Tax charge related to change in U.S. federal income tax regulations | -16,000,000 | ||||||||||||||
Total income taxes paid to all jurisdictions | 1,500,000,000 | 1,300,000,000 | 1,800,000,000 | ||||||||||||
Tax refunds received from all jurisdictions | 257,000,000 | 270,000,000 | 69,000,000 | ||||||||||||
Deferred tax assets: | |||||||||||||||
Foreign tax credits | 2,306,000,000 | 2,144,000,000 | 2,144,000,000 | 2,306,000,000 | 2,144,000,000 | ||||||||||
Accrued expenses | 1,047,000,000 | 1,098,000,000 | 1,098,000,000 | 1,047,000,000 | 1,098,000,000 | ||||||||||
Minimum tax credits | 737,000,000 | 603,000,000 | 603,000,000 | 737,000,000 | 603,000,000 | ||||||||||
Net operating loss carryforwards | 590,000,000 | 925,000,000 | 925,000,000 | 590,000,000 | 925,000,000 | ||||||||||
Employee benefit plans | 422,000,000 | 443,000,000 | 443,000,000 | 422,000,000 | 443,000,000 | ||||||||||
Other | 734,000,000 | 557,000,000 | 557,000,000 | 734,000,000 | 557,000,000 | ||||||||||
Deferred tax assets | 5,836,000,000 | 5,770,000,000 | 5,770,000,000 | 5,836,000,000 | 5,770,000,000 | ||||||||||
Valuation allowances | -2,434,000,000 | -2,487,000,000 | -2,487,000,000 | -2,434,000,000 | -2,487,000,000 | ||||||||||
Net deferred tax assets | 3,402,000,000 | 3,283,000,000 | 3,283,000,000 | 3,402,000,000 | 3,283,000,000 | ||||||||||
Deferred tax liabilities: | |||||||||||||||
Property, plant, equipment and development costs | -5,331,000,000 | -4,887,000,000 | -4,887,000,000 | -5,331,000,000 | -4,887,000,000 | ||||||||||
Oil and gas properties | -3,392,000,000 | -4,708,000,000 | -4,708,000,000 | -3,392,000,000 | -4,708,000,000 | ||||||||||
Undistributed earnings | -807,000,000 | -936,000,000 | -936,000,000 | -807,000,000 | -936,000,000 | ||||||||||
Other | -185,000,000 | -34,000,000 | -34,000,000 | -185,000,000 | -34,000,000 | ||||||||||
Total deferred tax liabilities | -9,715,000,000 | -10,565,000,000 | -10,565,000,000 | -9,715,000,000 | -10,565,000,000 | ||||||||||
Net deferred tax liabilities | -6,313,000,000 | -7,282,000,000 | -7,282,000,000 | -6,313,000,000 | -7,282,000,000 | ||||||||||
Valuation allowance on deferred tax asset increase (decrease) during period | -53,000,000 | ||||||||||||||
McMoRan Exploration Co [Member] | |||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||
Deferred Other Tax Expense (Benefit) | 69,000,000 | ||||||||||||||
Cerro Verde [Member] | |||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||
Term of Stability Agreement | 15 years | ||||||||||||||
Foreign Income Tax Rate Under Old Stability Agreement | 30.00% | ||||||||||||||
Foreign Income Tax Rate Under New Stability Agreegment | 32.00% | 32.00% | |||||||||||||
Deferred Foreign Income Tax Expense from New Stability Agreement | 29,000,000 | ||||||||||||||
Deferred Foreign Income Tax Expense (Benefit) Associated with Foreign Reinvested Profits | 234,000,000 | ||||||||||||||
Chile [Member] | |||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||
Adjustments | 54,000,000 | ||||||||||||||
Foreign Income Tax Rate Under Old Stability Agreement | 35.00% | ||||||||||||||
Peru [Member] | |||||||||||||||
Deferred income taxes (benefits): | |||||||||||||||
Adjustments | 24,000,000 | ||||||||||||||
Foreign Income Tax Rate Under Old Stability Agreement | 30.00% | 26.00% | |||||||||||||
Candelaria and Ojos del Salado Mining Complex [Member] | |||||||||||||||
Income before income taxes and equity in affiliated companies' net earnings [Abstract] | |||||||||||||||
Total | 689,000,000 | 547,000,000 | 270,000,000 | ||||||||||||
Effective income tax rate, reconciliation [Abstract] | |||||||||||||||
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Tax Provision (Benefit) | $221,000,000 | ||||||||||||||
[1] | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | ||||||||||||||
[2] | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | ||||||||||||||
[3] | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. | ||||||||||||||
[4] | Benefit from the use of federal operating loss carryforwards acquired as part of the oil and gas acquisitions. | ||||||||||||||
[5] | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | ||||||||||||||
[6] | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | ||||||||||||||
[7] | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | ||||||||||||||
[8] | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | ||||||||||||||
[9] | Includes a net charge of $16 million related to a change in U.S. federal income tax law. |
INCOME_TAXES_Tax_Credit_Carryf
INCOME TAXES (Tax Credit Carryforward) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Tax credit carryforward [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 2,306 | $2,144 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 737 | 603 |
U.S. state net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, amount | 2,400 | |
Spanish net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, amount | 623 | |
U.S. Federal Net Operating Loss Carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, amount | 800 | |
Minimum [Member] | U.S. foreign tax credit carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 1-Jan-15 | |
Minimum [Member] | U.S. state net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 1-Jan-15 | |
Minimum [Member] | Spanish net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 1-Jan-15 | |
Minimum [Member] | U.S. Federal Net Operating Loss Carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 1-Jan-30 | |
Maximum [Member] | U.S. foreign tax credit carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 31-Dec-24 | |
Maximum [Member] | U.S. state net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 31-Dec-34 | |
Maximum [Member] | Spanish net operating loss carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 31-Dec-32 | |
Maximum [Member] | U.S. Federal Net Operating Loss Carryforwards [Member] | ||
Tax credit carryforward [Line Items] | ||
Tax credit carryforward, expiration dates | 31-Dec-34 |
INCOME_TAXES_Reserve_for_Unrec
INCOME TAXES (Reserve for Unrecognized tax benefits, interest and penalties) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Decreases: | ||
Amount of unrecognized tax benefit that could impact provision for income taxes | $97 | |
Amount of unrecognized tax benefit that could impact provision for income taxes, net of tax benefits | 55 | |
Unrecognized Tax Benefits [Member] | ||
Reserve for unrecognized tax benefits, interest and penalties, type [Line Items] | ||
Unrecognized Tax Benefits, Interest and Penalties, Beginning Balance | 110 | 138 |
Additions: | ||
Prior year tax positions | 4 | 18 |
Current year tax positions | 11 | 14 |
Acquisition of PXP | 5 | |
Interest and penalties | 0 | 0 |
Decreases: | ||
Prior year tax positions | -12 | -37 |
Current year tax positions | 0 | 0 |
Settlements with tax authorities | -9 | 0 |
Lapse of statute of limitations | 0 | -28 |
Interest and penalties | 0 | 0 |
Unrecognized Tax Benefits, Interest and Penalties, Ending Balance | 104 | 110 |
Interest [Member] | ||
Reserve for unrecognized tax benefits, interest and penalties, type [Line Items] | ||
Unrecognized Tax Benefits, Interest and Penalties, Beginning Balance | 21 | 31 |
Additions: | ||
Interest and penalties | 1 | 7 |
Decreases: | ||
Interest and penalties | -7 | -17 |
Unrecognized Tax Benefits, Interest and Penalties, Ending Balance | 15 | 21 |
Penalties [Member] | ||
Reserve for unrecognized tax benefits, interest and penalties, type [Line Items] | ||
Unrecognized Tax Benefits, Interest and Penalties, Beginning Balance | 0 | 0 |
Additions: | ||
Interest and penalties | 0 | 0 |
Decreases: | ||
Interest and penalties | 0 | 0 |
Unrecognized Tax Benefits, Interest and Penalties, Ending Balance | $0 | $0 |
INCOME_TAXES_Summary_of_Income
INCOME TAXES (Summary of Income Tax Examinations) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2010 |
Peru [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2010 |
DRC [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2013 |
Minimum [Member] | U.S. Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2007 |
Additional Open Years Subject To Income Tax Examination | 2013 |
Minimum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2013 |
Minimum [Member] | Peru [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2011 |
Minimum [Member] | Chile [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
Additional Open Years Subject To Income Tax Examination | 2014 |
Minimum [Member] | DRC [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2012 |
Maximum [Member] | U.S. Federal [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
Additional Open Years Subject To Income Tax Examination | 2014 |
Maximum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2014 |
Maximum [Member] | Peru [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2014 |
Maximum [Member] | Chile [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2013 |
Maximum [Member] | DRC [Member] | |
Income Tax Examination [Line Items] | |
Additional Open Years Subject To Income Tax Examination | 2014 |
Period 1 [Member] | Minimum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2006 |
Period 1 [Member] | Maximum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2008 |
Period 2 [Member] | Minimum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2011 |
Period 2 [Member] | Maximum [Member] | Indonesia [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
INCOME_TAXES_Mining_Royalty_Ta
INCOME TAXES (Mining Royalty Taxes) (Details) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2019 | Jul. 31, 2012 | |
Chile [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 35.00% | ||
Peru [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 30.00% | 26.00% | |
Cerro Verde [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 30.00% | ||
Foreign Income Tax Rate Under New Stability Agreegment | 32.00% | 32.00% | |
Expiration Date, Stability Agreement | 31-Dec-28 | ||
2010 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2010 [Member] | Chile [Member] | Minimum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2010 [Member] | Chile [Member] | Maximum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 9.00% | ||
2011 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2011 [Member] | Chile [Member] | Minimum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2011 [Member] | Chile [Member] | Maximum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 9.00% | ||
2012 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2012 [Member] | Chile [Member] | Minimum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2012 [Member] | Chile [Member] | Maximum [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 9.00% | ||
2013 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2013 [Member] | Chile [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2014 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2014 [Member] | Chile [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2014 [Member] | Peru [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Dividend Tax Rate | 4.10% | ||
2015 [Member] | Chile [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 35.00% | ||
2015 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2015 [Member] | Chile [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2016 [Member] | Chile [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 35.00% | ||
2016 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2016 [Member] | Chile [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2017 [Member] | Chile [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 44.00% | ||
2017 [Member] | Chile [Member] | Stabilized Rate [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2017 [Member] | Chile [Member] | Special Mining Burden [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 4.00% | ||
2018 [Member] | Chile [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Foreign Income Tax Rate | 44.50% | ||
2018 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2018 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% | ||
2019 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2019 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% | ||
2019 [Member] | Peru [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Dividend Tax Rate | 9.30% | ||
2020 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2020 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% | ||
2021 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2021 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% | ||
2022 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2022 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% | ||
2023 [Member] | Chile [Member] | Minimum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 5.00% | ||
2023 [Member] | Chile [Member] | Maximum [Member] | |||
Mining royalty taxes by location [Line Items] | |||
Mining royalty tax rate | 14.00% |
CONTINGENCIES_Details
CONTINGENCIES (Details) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | |
USD ($) | USD ($) | USD ($) | Cerro Verde [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Tax Years 2002 To 2005 [Member] | Tax Year 2005 [Member] | Tax Year 2006 [Member] | Tax Year 2006 [Member] | Tax Year 2007 [Member] | Tax Year 2007 [Member] | Tax Year 2008 [Member] | Tax Year 2008 [Member] | Tax Year 2009 [Member] | Tax Year 2010 [Member] | Tax Year 2011 [Member] | Tax Year 2011 [Member] | Tax Year 2012 [Member] | Tax Year 2012 [Member] | Tax Year 2014 [Member] | Tax Year 2014 [Member] | Relating To 2005 and 2007 [Member] | Relating to the Period October 2006 through December 2008 [Member] | Relating to the Period October 2006 through December 2008 [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Tax Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Interest and Penalties Assessment [Member] | Royalty Tax [Member] | Royalty Tax [Member] | Other Assessments [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Subsequent Event [Member] | ||
USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Tax Years 2002 To 2005 [Member] | Tax Year 2005 [Member] | Tax Year 2006 [Member] | Tax Year 2006 [Member] | Tax Year 2007 [Member] | Tax Year 2007 [Member] | Tax Year 2008 [Member] | Tax Year 2008 [Member] | Tax Year 2009 [Member] | Tax Year 2010 [Member] | Tax Year 2011 [Member] | Tax Year 2012 [Member] | Tax Year 2012 [Member] | Tax Year 2014 [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Tax Years 2002 To 2005 [Member] | Tax Year 2005 [Member] | Tax Year 2006 [Member] | Tax Year 2006 [Member] | Tax Year 2007 [Member] | Tax Year 2007 [Member] | Tax Year 2008 [Member] | Tax Year 2008 [Member] | Tax Year 2009 [Member] | Tax Year 2010 [Member] | Tax Year 2011 [Member] | Tax Year 2012 [Member] | Tax Year 2014 [Member] | Relating to the Period October 2006 through December 2008 [Member] | Tax Year 2009 [Member] | Tax Year 2009 [Member] | Tax Year 2012 [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Royalty Tax [Member] | Royalty Tax [Member] | USD ($) | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | PEN | USD ($) | USD ($) | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | USD ($) | USD ($) | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | PT Freeport Indonesia [Member] | Cerro Verde [Member] | Cerro Verde [Member] | Cerro Verde [Member] | Cerro Verde [Member] | PT Freeport Indonesia [Member] | USD ($) | USD ($) | Cerro Verde [Member] | Cerro Verde [Member] | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | PEN | USD ($) | USD ($) | PEN | |||||||||||||||||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum number of active remediation projects in the United States (in number of projects) | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Approximate number of states with active remediation projects (in number of states) | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Legal Settlements | $115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Legal Settlements | 22.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reasonably Possible Interest Penalties | 7.00% | 18.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assessment By Foreign Government of Alleged Obligations, Expressed in Foreign Currency | 492 | 226 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assessment By Foreign Government Of Alleged Obligations | 442 | 639 | 65 | 152 | 52 | 32 | 30 | 135 | 34 | 114 | 108 | 148 | [1] | 69 | 137 | 5 | 165 | 183 | 471 | 16 | 103 | 7 | 22 | 12 | 91 | 21 | 62 | 59 | 63 | 56 | 137 | 137 | 5 | 259 | 168 | 49 | 49 | 45 | 10 | 18 | 44 | 13 | 52 | 49 | 85 | 13 | 0 | 0 | 97 | 76 | 15 | ||||||||||||||||
Assessment By Foreign Government Of Alleged Obligations, Net of Noncontrolling Interest | 88 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Duration of Deferred Payment under Installment Program | 6 months | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Installment Payments under Installment Program | 66 | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disputed Tax Assessments Receivable | 359 | 22 | 126 | 192 | 279 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disputed Tax Assessments Receivable, Expressed in Foreign Currency | 113 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Overpayment, Amount Agreed to by Tax Authority | 291 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Overpayment | 313 | 303 | 267 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Income Tax Refunds | 257 | 270 | 69 | 165 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Added Tax Receivable | $269 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | The tax assessment for the year 2010 was issued in February 2015. |
CONTINGENCIES_Environmental_Ob
CONTINGENCIES (Environmental Obligations) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||
Balance at beginning of year | $1,167,000,000 | $1,222,000,000 | $1,453,000,000 | |||
Accretion Expense | 77,000,000 | [1] | 79,000,000 | [1] | 80,000,000 | [1] |
Additions | 16,000,000 | 73,000,000 | 70,000,000 | |||
Reductions | -6,000,000 | [2] | -77,000,000 | [2] | -182,000,000 | [2] |
Spending | -80,000,000 | -130,000,000 | -199,000,000 | |||
Balance at end of year | 1,174,000,000 | 1,167,000,000 | 1,222,000,000 | |||
Less current portion | -105,000,000 | -121,000,000 | -186,000,000 | |||
Long-term portion | 1,069,000,000 | 1,046,000,000 | 1,036,000,000 | |||
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||||
2015 | 105,000,000 | |||||
2016 | 151,000,000 | |||||
2017 | 120,000,000 | |||||
2018 | 108,000,000 | |||||
2019 | 79,000,000 | |||||
Thereafter | 1,800,000,000 | |||||
Estimated Environmental Obligations on a Discounted Fair Value Basis | 1,100,000,000 | |||||
Estimated Environmental Obligations on an Undiscounted and Unescalated Basis | 2,400,000,000 | |||||
Recorded environmental obligations for most significant sites | 1,000,000,000 | |||||
Minimum [Member] | ||||||
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||||
Estimated Environmental Obligations on an Undiscounted and Unescalated Basis | 2,000,000,000 | |||||
Maximum [Member] | ||||||
Estimated environmental cash payments (on an undiscounted and unescalated basis) [Abstract] | ||||||
Estimated Environmental Obligations on an Undiscounted and Unescalated Basis | $2,600,000,000 | |||||
[1] | 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. | |||||
[2] | Reductions primarily reflect revisions for changes in the anticipated scope and timing of projects and other noncash adjustments. |
CONTINGENCIES_Asset_Retirement
CONTINGENCIES (Asset Retirement Obligations) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Balance at beginning of year | $2,328,000,000 | $1,146,000,000 | $921,000,000 | |||
Liabilities assumed in the acquisitions of PXP and MMR | 0 | [1] | 1,028,000,000 | [1] | 0 | [1] |
Liabilities incurred | 430,000,000 | [2] | 45,000,000 | 6,000,000 | ||
Settlements and revisions to cash flow estimates, net | 65,000,000 | 123,000,000 | 211,000,000 | |||
Accretion expense | 117,000,000 | 95,000,000 | 55,000,000 | |||
Dispositions | -61,000,000 | 0 | 0 | |||
Spending | -99,000,000 | -107,000,000 | -47,000,000 | |||
Other | -11,000,000 | -2,000,000 | 0 | |||
Balance at end of year | 2,769,000,000 | 2,328,000,000 | 1,146,000,000 | |||
Less current portion | -191,000,000 | -115,000,000 | -55,000,000 | |||
Long-term portion | 2,578,000,000 | 2,213,000,000 | 1,091,000,000 | |||
Fair Value Assumptions, Inflation Rate | 2.50% | |||||
Financial Assurance Obligations Associated With Closure And Reclamation Costs | 1,000,000,000 | |||||
Financial Assurance Obligations Associated With Closure And Reclamation Costs In Form Of Parent Company Guarantees And Financial Capability Demonstrations | 636,000,000 | |||||
Legally Restricted Funds For Asset Retirement Obligations | 158,000,000 | |||||
Productive Oil Wells, Number of Wells, Gross | 6,500 | |||||
Asset Retirement Obligations, Number of Platforms | 180 | |||||
New Mexico environmental and reclamation programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Legally Restricted Funds For Asset Retirement Obligations | 168,000,000 | |||||
Accrued reclamation and closure costs | 450,000,000 | |||||
Arizona environmental and reclamation programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Accrued reclamation and closure costs | 285,000,000 | |||||
Colorado Environmental And Reclamation Programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Accrued reclamation and closure costs | 73,000,000 | |||||
Chile environmental and reclamation programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Accrued reclamation and closure costs | 67,000,000 | |||||
Peru Environmental and Reclamation Programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Accrued reclamation and closure costs | 78,000,000 | |||||
PT Freeport Indonesia environmental and reclamation programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liabilities incurred | 403,000,000 | |||||
Accrued reclamation and closure costs | 636,000,000 | |||||
Estimated years the mining activities are expected to continue (in years) | 25 years | |||||
Current cash balance of reclamation fund | 20,000,000 | |||||
Minimum [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.30% | |||||
Minimum [Member] | PT Freeport Indonesia environmental and reclamation programs [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Current cash balance of reclamation fund | 100,000,000 | |||||
Maximum [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Fair Value Assumptions, Risk Free Interest Rate | 6.30% | |||||
Plains Exploration & Production Company [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liabilities assumed in the acquisitions of PXP and MMR | 741,000,000 | |||||
McMoRan Exploration Co [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Liabilities assumed in the acquisitions of PXP and MMR | 287,000,000 | |||||
Freeport-McMoRan Oil & Gas [Member] | ||||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||||
Long-term portion | $1,100,000,000 | |||||
[1] | The fair value of AROs assumed in the acquisitions of PXP and MMR ($741 million and $287 million, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of 2.5 percent, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from 1.3 percent to 6.3 percent. | |||||
[2] | Primarily reflects revisions to the closure approach to reclaim an overburden stockpile in Indonesia. |
CONTINGENCIES_Other_Contingenc
CONTINGENCIES (Other Contingencies) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other contingencies by location [Line Items] | |||
Outstanding Standby Letters Of Credit | $306 | ||
Outstanding Surety Bonds Total | 275 | ||
Portion Of Surety Bonds Related To Reclamation And Closing Costs | 217 | ||
Portion Of Surety Bonds Related To Workers Compensation Self Insurance | 20 | ||
Other Surety Bonds | 38 | ||
Self Insurance Reserve | 64 | ||
Self Insurance Reserve, Current | 8 | ||
Self Insurance Reserve, Noncurrent | 56 | ||
Gain on insurance settlement | 0 | 0 | 59 |
PT Freeport Indonesia [Member] | |||
Other contingencies by location [Line Items] | |||
Estimated Insurance Recoveries | 63 | ||
Gain on insurance settlement | $59 |
COMMITMENTS_AND_GUARANTEES_Det
COMMITMENTS AND GUARANTEES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating leases, future minimum payments due: [Abstract] | |||
2015 | $44 | ||
2016 | 44 | ||
2017 | 42 | ||
2018 | 36 | ||
2019 | 23 | ||
Thereafter | 165 | ||
Total aggregate rental expense under operating leases | $96 | $96 | $77 |
COMMITMENTS_AND_GUARANTEES_Con
COMMITMENTS AND GUARANTEES (Contractual Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | $4,300 | |
2015 | 2,128 | |
2016 | 1,004 | |
2017 | 707 | |
2018 | 111 | |
2019 | 119 | |
Thereafter | 204 | |
Derivative Liability | 99 | 320 |
Copper concentrates [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | 572 | |
Electricity [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | 316 | |
Transportation [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | 732 | |
Freeport-McMoRan Oil & Gas [Member] | Ultra-deepwater Drillship Contracts [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | 1,800 | |
Freeport-McMoRan Oil & Gas [Member] | Deferred Option Premiums and Accrued Interest [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Unconditional purchase obligations | 231 | |
Deferred Option Premiums and Accrued Interest [Member] | ||
Unconditional purchase obligations [Line Items] | ||
Derivative Liability | $210 | $444 |
COMMITMENTS_AND_GUARANTEES_Min
COMMITMENTS AND GUARANTEES (Mining Contracts) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 25, 2014 | Mar. 26, 2012 | ||
Contractual obligations mining contracts [line items] | |||||||||
Number of Extention Periods Available Under Mining Contract | 2 | ||||||||
Assurance Bond, Smelter Development | $115 | [1] | $0 | [1] | |||||
PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Period For Option To Extend Mining Contract | 10 years | ||||||||
Copper Royalty Rate Payable (in hundredths) | 4.00% | 3.50% | |||||||
Gold And Silver Sales Royalty Rate (in hundredths) | 3.75% | 1.00% | 1.00% | ||||||
Quantity of ore produced subject to additional royalties | 200,000 | ||||||||
Product Exports Ban, Date | 12-Jan-17 | ||||||||
Effective Date, Memorandum of Understanding with Foreign Government | 25-Jul-14 | ||||||||
Expiration Date, Memorandum of Understanding with Foreign Government | 25-Jul-15 | ||||||||
Percentage of undivided interest owned by third party | 30.00% | ||||||||
Incremental Percent of Undivided Interest Owned by Third Party | 20.64% | ||||||||
Expiration Date, Contract of Work | 31-Dec-21 | ||||||||
Assurance Bond, Smelter Development | 115 | ||||||||
Royalty Expense | 115 | 109 | 93 | ||||||
Export Duties Expense | 77 | ||||||||
Export Permit Renewal Term | 6 months | ||||||||
Tenke Fungurume [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Royalty Expense | 29 | 29 | 25 | ||||||
Royalty Rate Payable Under Amended And Restated Mining Convention (in hundredths) | 2.00% | ||||||||
Percentage of mining property owned by the company | 56.00% | 57.75% | |||||||
Conversion of intercompany loans | $50 | ||||||||
Stage 1 [Member] | PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Progressive Export Duty on Copper Concentrates, Percent | 7.50% | ||||||||
Stage 2 [Member] | PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Progressive Export Duty on Copper Concentrates, Percent | 5.00% | ||||||||
Smelter Development Progress, Percent | 7.50% | ||||||||
Stage 3 [Member] | PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Progressive Export Duty on Copper Concentrates, Percent | 0.00% | ||||||||
Smelter Development Progress, Percent | 30.00% | ||||||||
Maximum [Member] | PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Copper Royalty Rate Payable (in hundredths) | 3.50% | ||||||||
Price Of Copper Per Pound | 1.1 | ||||||||
Progressive Export Duty on Copper Concentrates, Percent | 60.00% | ||||||||
Date, Contract of Work Extension | 31-Dec-41 | ||||||||
Minimum [Member] | PT Freeport Indonesia [Member] | |||||||||
Contractual obligations mining contracts [line items] | |||||||||
Copper Royalty Rate Payable (in hundredths) | 1.50% | ||||||||
Price Of Copper Per Pound | 0.9 | ||||||||
Progressive Export Duty on Copper Concentrates, Percent | 25.00% | ||||||||
Date, Contract of Work Extension | 31-Dec-22 | ||||||||
[1] | Relates to PT-FI's commitment for smelter development in Indonesia at December 31, 2014 (refer to Note 13 for further discussion). |
COMMITMENTS_AND_GUARANTEES_Com
COMMITMENTS AND GUARANTEES (Community Development Programs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
PT Freeport Indonesia [Member] | |||
Contractual obligations community development programs [line items] | |||
Percentage of annual revenue committed for the development of the local people in the area of operations | 1.00% | ||
Amount charged to cost of sales for the commitment | $31 | $41 | $39 |
Tenke Fungurume [Member] | |||
Contractual obligations community development programs [line items] | |||
Amount charged to cost of sales for the commitment | $4 | $4 | $4 |
Percentage of net sales revenue from production to community development fund to assist the local communities with development of local infrastructure and related services | 0.30% |
COMMITMENTS_AND_GUARANTEES_Fin
COMMITMENTS AND GUARANTEES (Financial Guarantees) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Morenci [Member] | |
Financial guarantees [line items] | |
Percentage of undivided interest in the Morenci complex | 85.00% |
Maximum potential payment the company is obligated to make to Sumitomo upon exercise of the put option | $354 |
Sumitomo's Share in Joint Venture [Member] | |
Financial guarantees [line items] | |
Percentage of undivided interest owned by third party | 15.00% |
FINANCIAL_INSTRUMENTS_Unrealiz
FINANCIAL INSTRUMENTS (Unrealized gains losses) (Details) (Commodity Contract [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Embedded derivatives in provisional sales contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Amounts recorded in Sales [Member] | ||||||
Realized gains (losses): | ||||||
Realized and unrealized gains (losses) | ($289) | [1] | ($136) | [1] | $77 | [1] |
Crude Oil Options [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Freeport-McMoRan Oil & Gas [Member] | Amounts recorded in Sales [Member] | ||||||
Realized gains (losses): | ||||||
Realized and unrealized gains (losses) | 513 | [1] | -344 | [1] | 0 | [1] |
Natural Gas Swaps [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Freeport-McMoRan Oil & Gas [Member] | Amounts recorded in Sales [Member] | ||||||
Realized gains (losses): | ||||||
Realized and unrealized gains (losses) | -8 | [1] | 10 | [1] | 0 | [1] |
Copper Forward Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Amounts recorded in Cost of Sales [Member] | ||||||
Realized gains (losses): | ||||||
Realized and unrealized gains (losses) | -4 | [2] | 3 | [2] | 15 | [2] |
Fair Value Hedging [Member] | Copper Futures and Swap Contracts [Member] | Amounts recorded in Sales [Member] | ||||||
Unrealized gains (losses): | ||||||
Derivative financial instruments | -12 | 1 | 15 | |||
Hedged item – firm sales commitments | 12 | -1 | -15 | |||
Realized gains (losses): | ||||||
Matured derivative financial instruments | ($9) | ($17) | ($2) | |||
[1] | Amounts recorded in revenues. | |||||
[2] | Amounts recorded in cost of sales as production and delivery costs. |
FINANCIAL_INSTRUMENTS_Unsettle
FINANCIAL INSTRUMENTS (Unsettled Derivatives) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Paid to brokers associated with margin requirements | $10 | $1 | ||
Derivative Asset | 330 | 59 | ||
Derivative Liability | 99 | 320 | ||
Trade accounts receivable [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset | 5 | 53 | ||
Derivative Liability | 56 | 0 | ||
Other current assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset | 316 | 6 | ||
Derivative Liability | 0 | 0 | ||
Accounts payable and accrued liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset | 9 | 0 | ||
Derivative Liability | 43 | 205 | ||
Other Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Asset | 0 | 0 | ||
Derivative Liability | 0 | 115 | ||
Commodity Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 331 | 69 | ||
Liability position | 100 | 330 | ||
Derivative Asset, Fair Value, Gross Liability | 1 | 10 | ||
Derivative Liability, Fair Value, Gross Asset | 1 | 10 | ||
Derivative Asset | 330 | 59 | ||
Derivative Liability | 99 | 320 | ||
Commodity Contract [Member] | Embedded derivatives in provisional sales purchases contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 15 | 63 | ||
Liability position | 93 | 16 | ||
Derivative Asset, Fair Value, Gross Liability | 1 | 10 | ||
Derivative Liability, Fair Value, Gross Asset | 1 | 10 | ||
Derivative Asset | 14 | 53 | ||
Derivative Liability | 92 | 6 | ||
Commodity Contract [Member] | Crude Oil and Natural Gas Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 316 | [1] | 0 | [1] |
Liability position | 0 | [1] | 313 | [1] |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | ||
Derivative Asset | 316 | [1] | 0 | [1] |
Derivative Liability | 0 | [1] | 313 | [1] |
Commodity Contract [Member] | Copper Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 0 | 6 | ||
Liability position | 7 | 1 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | ||
Derivative Asset | 0 | 6 | ||
Derivative Liability | 7 | 1 | ||
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Copper Futures and Swap Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability position | 7 | [2] | 0 | [2] |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Copper Futures and Swap Contracts [Member] | Other current assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 0 | [2] | 6 | [2] |
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Natural Gas Swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability position | 0 | 4 | ||
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Embedded derivatives in provisional sales purchases contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 15 | 63 | ||
Liability position | 93 | 16 | ||
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Crude Oil Options [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset position | 316 | [3] | 0 | [3] |
Liability position | 0 | [3] | 309 | [3] |
Commodity Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Copper Forward Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability position | $0 | $1 | ||
[1] | Includes only crude oil derivatives at December 31, 2014. | |||
[2] | FCX had paid $10 million to brokers at December 31, 2014, and $1 million at December 31, 2013, for margin requirements (recorded in other current assets). | |||
[3] | Includes $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. |
FINANCIAL_INSTRUMENTS_Derivati
FINANCIAL INSTRUMENTS (Derivative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative [Line Items] | ||||
Credit Derivative, Maximum Exposure, Undiscounted | 379 | |||
Cash and cash equivalents | 464 | 1,985 | 3,705 | 4,822 |
Embedded derivatives in provisional sales contracts, Copper [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Derivative held (in lbs except gold in oz) | 574,000,000 | |||
Average contract price | 3.02 | |||
Average market price | 2.86 | |||
Embedded derivatives in provisional sales contracts, Gold [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Derivative held (in lbs except gold in oz) | 178,000 | |||
Average contract price | 1,207 | |||
Average market price | 1,200 | |||
Embedded derivatives in provisional purchase contracts, Copper [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Derivative held (in lbs except gold in oz) | 101,000,000 | |||
Average contract price | 3.01 | |||
Average market price | 2.87 | |||
Copper Forward Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Derivative held (in lbs except gold in oz) | 13,000,000 | |||
Average contract price | 2.9 | |||
Maximum [Member] | Embedded derivatives in provisional sales contracts, Copper [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Maturities | May-15 | |||
Maximum [Member] | Embedded derivatives in provisional sales contracts, Gold [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Maturities | Apr-15 | |||
Maximum [Member] | Embedded derivatives in provisional purchase contracts, Copper [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Maturities | Apr-15 | |||
Maximum [Member] | Copper Forward Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative [Line Items] | ||||
Maturities | Feb-15 | |||
Fair Value Hedging [Member] | Commodity Contract [Member] | Copper Futures and Swap Contracts [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Derivative held (in lbs except gold in oz) | 50,000,000 | |||
Average contract price | 2.97 | |||
Fair Value Hedging [Member] | Maximum [Member] | Commodity Contract [Member] | Copper Futures and Swap Contracts [Member] | Derivatives Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Maturities | May-16 | |||
Bank Time Deposits [Member] | ||||
Derivative [Line Items] | ||||
Cash and cash equivalents | 48 | $211 |
FINANCIAL_INSTRUMENTS_Oil_and_
FINANCIAL INSTRUMENTS (Oil and Gas) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
MBbls | |||
Derivative [Line Items] | |||
Derivative Liability | $99 | $320 | |
Maximum Price Limit per Barrel | 20 | ||
Deferred Option Premiums and Accrued Interest [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | $210 | $444 | |
Crude Oil Options [Member] | 2014 Positions [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 31,000,000 | ||
Crude Oil Options [Member] | 2015 Positions [Member] | Derivatives Not Designated as Hedging Instruments [Member] | 84 MBbls [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 84 | [1] | |
Derivative, Average Floor Price | 90 | [1],[2] | |
Derivative, Average Floor Price Limit | 70 | [1],[2] | |
Derivative, Underlying Basis | Brent | ||
Weighted Average [Member] | Crude Oil Options [Member] | |||
Derivative [Line Items] | |||
Deferred Premium Price | 6.89 | ||
Weighted Average [Member] | Crude Oil Options [Member] | 2015 Positions [Member] | Derivatives Not Designated as Hedging Instruments [Member] | 84 MBbls [Member] | |||
Derivative [Line Items] | |||
Deferred Premium Price | 6.89 | [1] | |
[1] | If the index price is less than the per barrel floor, FCX receives the difference between the per barrel floor and the index price up to a maximum of $20 per barrel less the option premium. If the index price is at or above the per barrel floor, FCX pays the option premium and no cash settlement is received. | ||
[2] | The average strike prices do not reflect any premiums to purchase the put options. |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Derivatives: | |||||
Derivative Asset | $330 | $59 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 99 | 320 | |||
Legally restricted funds | 172 | [1] | 392 | [1] | |
Bank Time Deposits [Member] | |||||
Derivatives: [Abstract] | |||||
Legally restricted funds | 210 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 23 | [2],[3],[4] | 23 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 11 | [2],[3],[5] | 28 | [2],[3],[5] | |
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | 5 | [3],[6] | |
Total assets | 34 | 56 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 6 | [3],[6] | 1 | [3] | |
Long-term debt, including current portion | 0 | [7] | 0 | [7] | |
Total liabilities | 6 | 1 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 23 | [2],[3],[4] | 21 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 161 | [2],[3],[5] | 154 | [2],[3],[5] | |
Derivatives: | |||||
Derivative Asset | 15 | [3],[6] | 64 | [3],[6] | |
Total assets | 199 | 239 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 94 | [3],[6] | 20 | [3] | |
Long-term debt, including current portion | 18,735 | [7] | 20,487 | [7] | |
Total liabilities | 18,829 | 20,507 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Derivatives: | |||||
Derivative Asset | 316 | [3],[6] | 0 | [3],[6] | |
Total assets | 316 | 0 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | 311 | [3] | |
Long-term debt, including current portion | 0 | [7] | 0 | [7] | |
Total liabilities | 0 | 311 | |||
Fair Value, Measurements, Recurring [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 46 | [2],[3],[4] | 44 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 172 | [2],[3],[5] | 182 | [2],[3],[5] | |
Derivatives: | |||||
Derivative Asset | 331 | [3],[6] | 69 | [3],[6] | |
Derivatives: [Abstract] | |||||
Derivative Liability | 100 | [3],[6] | 332 | [3] | |
Long-term debt, including current portion | 18,970 | [7] | 20,706 | [7] | |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 46 | [2],[3],[4] | 44 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 172 | [2],[3],[5] | 182 | [2],[3],[5] | |
Derivatives: | |||||
Derivative Asset | 331 | [3],[6] | 69 | [3],[6] | |
Total assets | 549 | 295 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 100 | [3],[6] | 332 | [3] | |
Long-term debt, including current portion | 18,735 | [7] | 20,487 | [7] | |
Total liabilities | 18,835 | 20,819 | |||
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | 0 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 93 | [3],[6] | 16 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | 0 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 93 | [3],[6] | 16 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 93 | [3],[6] | 16 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 309 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 309 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 309 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Natural Gas Swaps [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Natural Gas Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 4 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Natural Gas Swaps [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Natural Gas Swaps [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 4 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Natural Gas Swaps [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 4 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 1 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper Forward Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper Forward Contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 1 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper Forward Contracts [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 1 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 6 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 1 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 7 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 7 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Plains Offshore warrants [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[8] | |||
Fair Value, Measurements, Recurring [Member] | Plains Offshore warrants [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | [3],[8] | |||
Fair Value, Measurements, Recurring [Member] | Plains Offshore warrants [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 2 | [3],[8] | |||
Fair Value, Measurements, Recurring [Member] | Plains Offshore warrants [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 2 | [3],[8] | |||
Fair Value, Measurements, Recurring [Member] | Plains Offshore warrants [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 2 | [3],[8] | |||
Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 23 | [2],[3],[4] | 21 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 52 | [2],[3],[5] | 48 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 23 | [2],[3],[4] | 21 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 52 | [2],[3],[5] | 48 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | U.S. core fixed income fund [Member] | Estimate of Fair Value Measurement [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 23 | [2],[3],[4] | 21 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 52 | [2],[3],[5] | 48 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 20 | [2],[3],[4] | 18 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 11 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 20 | [2],[3],[4] | 18 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 11 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | Estimate of Fair Value Measurement [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 20 | [2],[3],[4] | 18 | [2],[3] | |
Legally restricted funds (long-term): | |||||
Legally restricted funds | 11 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 3 | [2],[3],[4] | 5 | [2],[3] | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 0 | [2],[3],[4] | 0 | [2],[3] | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 3 | [2],[3],[4] | 5 | [2],[3] | |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Estimate of Fair Value Measurement [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 3 | [2],[3],[4] | 5 | [2],[3] | |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 39 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 39 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government bonds and notes [Member] | Estimate of Fair Value Measurement [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 39 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 27 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 27 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | Estimate of Fair Value Measurement [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 27 | [2],[3],[5] | 28 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 25 | [2],[3],[5] | 34 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 25 | [2],[3],[5] | 34 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Government mortgage-backed securities [Member] | Estimate of Fair Value Measurement [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 25 | [2],[3],[5] | 34 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 17 | [2],[3],[5] | 15 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 17 | [2],[3],[5] | 15 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Estimate of Fair Value Measurement [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 17 | [2],[3],[5] | 15 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 1 | [2],[3],[5] | 1 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 0 | [2],[3],[5] | 0 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 1 | [2],[3],[5] | 1 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | Estimate of Fair Value Measurement [Member] | |||||
Legally restricted funds (long-term): | |||||
Legally restricted funds | 1 | [2],[3],[5] | 1 | [2],[3],[5] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | 0 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 15 | [3],[6] | 63 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | 0 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: | |||||
Derivative Asset | 15 | [3],[6] | 63 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Embedded derivatives in provisional sales/purchases contracts [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: | |||||
Derivative Asset | 15 | [3],[6] | 63 | [3],[6] | |
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 5 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 1 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: | |||||
Derivative Asset | 6 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Copper futures and swap contracts [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: | |||||
Derivative Asset | 6 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 0 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: | |||||
Derivative Asset | 316 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: | |||||
Derivative Asset | 316 | [3],[6] | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Estimate of Fair Value Measurement [Member] | |||||
Derivatives: | |||||
Derivative Asset | 316 | [3],[6] | |||
Deferred Option Premiums and Accrued Interest [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 210 | 444 | |||
Crude Oil Options [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Derivatives: [Abstract] | |||||
Derivative Liability | 316 | -309 | 0 | ||
Other current assets [Member] | |||||
Derivatives: | |||||
Derivative Asset | 316 | 6 | |||
Derivatives: [Abstract] | |||||
Derivative Liability | 0 | 0 | |||
Other current assets [Member] | Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Investment securities (current and long-term): | |||||
Investment securities | 17 | 15 | |||
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Carrying Amount, Fair Value Disclosure [Member] | |||||
Derivatives: [Abstract] | |||||
Deposits | 115 | ||||
Legally restricted funds | $210 | ||||
[1] | Includes $168 million for AROs related to properties in New Mexico at December 31, 2014, and a $210 million time deposit that secured a bank guarantee (until the time deposit was released as security for the bank guarantee in 2014) associated with the Cerro Verde royalty dispute and $158 million for AROs related to properties in New Mexico at December 31, 2013 (refer to Note 12 for further discussion). | ||||
[2] | Current portion included in other current assets and long-term portion included in other assets. | ||||
[3] | Recorded at fair value. | ||||
[4] | Excludes $115 million of time deposits (which approximated fair value) at December 31, 2014 (included in other assets), associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note 13 for further discussion). | ||||
[5] | Excludes time deposits (which approximated fair value) of $17 million (included in other current assets) associated with a customs audit assessment and a reclamation guarantee at PT-FI at December 31, 2014, and $15 million included in other current assets and $210 million in other assets at December 31, 2013, associated with the Cerro Verde royalty dispute (refer to Note 12 for further discussion). | ||||
[6] | Refer to Note 14 for further discussion and balance sheet classifications. Crude oil options were net of $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | ||||
[7] | Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates. | ||||
[8] | Included in other liabilities. |
FAIR_VALUE_MEASUREMENT_FAIR_VA
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT (Unobservable inputs) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset (Liability) - End of Period | $99 | $320 | ||
Deferred Option Premiums and Accrued Interest [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset (Liability) - End of Period | 210 | 444 | ||
Crude Oil Options [Member] | Weighted Average [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Deferred Premium Price | 6.89 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset (Liability) - End of Period | 0 | [1],[2] | 311 | [1] |
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset (Liability) - Beginning of Period | -309 | 0 | ||
Crude oil options assumed in the PXP acquisition | -83 | |||
Net realized losses | -42 | [3] | -38 | [3] |
Net unrealized gains included in earnings related to assets still held at the end of the period | 430 | [4] | ||
Net unrealized (gains) losses included in earnings related to liabilities still held at the end of the period | -230 | [4] | ||
Settlement payments | 237 | 42 | ||
Derivative Asset (Liability) - End of Period | 316 | -309 | ||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | Sales [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net realized losses | 41 | 37 | ||
Net unrealized (gains) losses included in earnings related to liabilities still held at the end of the period | -432 | 228 | ||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Expense [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net realized losses | 1 | 1 | ||
Net unrealized (gains) losses included in earnings related to liabilities still held at the end of the period | $2 | $2 | ||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Assumptions, Implied Volatility Rate | 34.00% | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Assumptions, Implied Volatility Rate | 53.00% | |||
Fair Value, Measurements, Recurring [Member] | Crude Oil Options [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Assumptions, Implied Volatility Rate | 39.00% | |||
[1] | Recorded at fair value. | |||
[2] | Refer to Note 14 for further discussion and balance sheet classifications. Crude oil options were net of $210 million at December 31, 2014, and $444 million at December 31, 2013, for deferred premiums and accrued interest. | |||
[3] | Includes net realized losses of $37 million recorded in revenues in 2013 and $41 million in 2014, and $1 million of interest expense associated with deferred premiums in 2013 and 2014. | |||
[4] | Includes unrealized losses (gains) of $228 million recorded in revenues in 2013 and $(432) million in 2014, and $2 million of interest expense associated with deferred premiums in 2013 and 2014. |
BUSINESS_SEGMENTS_Mine_Product
BUSINESS SEGMENTS (Mine Production and Purchase Percentages) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Morenci [Member] | |
Mining Segment Reporting Information [Line Items] | |
Percentage of Division's Copper Production | 41.00% |
Cerro Verde [Member] | |
Mining Segment Reporting Information [Line Items] | |
Percentage of Division's Copper Production | 43.00% |
South America [Member] | |
Mining Segment Reporting Information [Line Items] | |
Percentage of Atlantic Copper's annual concentrate requirements purchased from intercompany | 21.00% |
Indonesia [Member] | |
Mining Segment Reporting Information [Line Items] | |
Percentage of Atlantic Copper's annual concentrate requirements purchased from intercompany | 8.00% |
North America Copper Mines Segment [Member] | |
Mining Segment Reporting Information [Line Items] | |
Percentage of Atlantic Copper's annual concentrate requirements purchased from intercompany | 21.00% |
PT Smelting [Member] | |
Mining Segment Reporting Information [Line Items] | |
Deferred Intercompany Profit, Percentage | 25.00% |
BUSINESS_SEGMENTS_Product_Reve
BUSINESS SEGMENTS (Product Revenue) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | $5,235 | [1] | $5,696 | [1] | $5,522 | [1] | $4,985 | [1] | $5,885 | [2] | $6,165 | [2] | $4,288 | [2] | $4,583 | $21,438 | [1],[3] | $20,921 | [2],[3] | $18,010 | [3] |
Treatment and refining charges included in copper concentrates revenues | 374 | 400 | 311 | ||||||||||||||||||
Refined Copper Products [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | 9,451 | 9,178 | 9,699 | ||||||||||||||||||
Copper in concentrates [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | 3,366 | [4] | 5,328 | [4] | 4,589 | [4] | |||||||||||||||
Gold [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | 1,584 | 1,656 | 1,741 | ||||||||||||||||||
Molybdenum [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | 1,207 | 1,110 | 1,187 | ||||||||||||||||||
Oil [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | 4,233 | 2,310 | 0 | ||||||||||||||||||
Other [Member] | |||||||||||||||||||||
Product revenue [Line Items] | |||||||||||||||||||||
Revenues | $1,597 | $1,339 | $794 | ||||||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
[2] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
[3] | Revenues are attributed to countries based on the location of the customer. | ||||||||||||||||||||
[4] | Amounts are net of treatment and refining charges totaling $374 million for 2014, $400 million for 2013 and $311 million for 2012. |
BUSINESS_SEGMENTS_Revenues_by_
BUSINESS SEGMENTS (Revenues by Geographic Area of Customer) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | $5,235 | [1] | $5,696 | [1] | $5,522 | [1] | $4,985 | [1] | $5,885 | [2] | $6,165 | [2] | $4,288 | [2] | $4,583 | $21,438 | [1],[3] | $20,921 | [2],[3] | $18,010 | [3] |
United States [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 10,311 | [3] | 9,418 | [3] | 6,285 | [3] | |||||||||||||||
Japan [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 1,573 | [3] | 2,141 | [3] | 2,181 | [3] | |||||||||||||||
Indonesia [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 1,792 | [3] | 1,651 | [3] | 2,054 | [3] | |||||||||||||||
Spain [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 1,208 | [3] | 1,223 | [3] | 1,581 | [3] | |||||||||||||||
Switzerland [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 800 | [3] | 1,098 | [3] | 731 | [3] | |||||||||||||||
China [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 968 | [3] | 1,078 | [3] | 579 | [3] | |||||||||||||||
Chile [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 687 | [3] | 754 | [3] | 704 | [3] | |||||||||||||||
Turkey [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 484 | [3] | 341 | [3] | 345 | [3] | |||||||||||||||
Korea [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | 383 | [3] | 297 | [3] | 525 | [3] | |||||||||||||||
Other [Member] | |||||||||||||||||||||
Revenues by geographic area of customer [Line Items] | |||||||||||||||||||||
Revenues | $3,232 | [3] | $2,920 | [3] | $3,025 | [3] | |||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
[2] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||||||||||||||
[3] | Revenues are attributed to countries based on the location of the customer. |
BUSINESS_SEGMENTS_Long_Lived_A
BUSINESS SEGMENTS (Long Lived Assets by Geographic Area) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Millions, unless otherwise specified | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | $49,412 | [1] | $51,204 | [1] | $24,589 | [1] |
United States [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | 29,468 | [1] | 32,969 | [1],[2] | 8,689 | [1] |
Indonesia [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | 6,961 | [1] | 5,799 | [1] | 5,127 | [1] |
Democratic Republic of Congo [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | 4,071 | [1] | 3,994 | [1] | 3,926 | [1] |
Peru [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | 6,848 | [1] | 5,181 | [1] | 3,933 | [1] |
Chile [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | 1,542 | [1],[3] | 2,699 | [1] | 2,587 | [1] |
Other [Member] | ||||||
Long Lived assets by geographic area of customer [Line Items] | ||||||
Long-Lived Assets | $522 | [1] | $562 | [1] | $327 | [1] |
[1] | Long-lived assets exclude deferred tax assets, intangible assets and goodwill. | |||||
[2] | Increased from 2012 primarily because of the PXP and MMR acquisitions. | |||||
[3] | Decreased from 2013 primarily because of the sale of Candelaria/Ojos. |
BUSINESS_SEGMENTS_Revenue_by_M
BUSINESS SEGMENTS (Revenue by Major Customers and Labor Matters) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Billions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Oct. 06, 2014 |
Major Customer and Labor Matters [Line Items] | |||||
Entity Wide Revenue, Major Customer Threshold, Percent | 10.00% | ||||
Percentage of Employees Covered by Collective Bargaining Agreements | 48.00% | 48.00% | |||
Percentage of Employees Covered by Collective Bargaining Agreements that Expire within One Year | 28.00% | 28.00% | |||
PT Smelting [Member] | |||||
Major Customer and Labor Matters [Line Items] | |||||
Revenues to major customers | 1.8 | $1.70 | $2.10 | ||
Percent of revenues to major customers as compared to total consolidated revenues | 8.00% | 8.00% | 11.00% | ||
Phillips 66 [Member] | |||||
Major Customer and Labor Matters [Line Items] | |||||
Revenues to major customers | 2.5 | ||||
Percent of revenues to major customers as compared to total consolidated revenues | 12.00% | ||||
Candelaria and Ojos del Salado Mining Complex [Member] | |||||
Major Customer and Labor Matters [Line Items] | |||||
Disposal Date | 3-Nov-14 | ||||
Company's direct ownership percentage | 80.00% |
BUSINESS_SEGMENTS_Segment_Repo
BUSINESS SEGMENTS (Segment Reporting) (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 03, 2014 | ||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | $5,235,000,000 | [1] | $5,696,000,000 | [1] | $5,522,000,000 | [1] | $4,985,000,000 | [1] | $5,885,000,000 | [2] | $6,165,000,000 | [2] | $4,288,000,000 | [2] | $4,583,000,000 | $21,438,000,000 | [1],[3] | $20,921,000,000 | [2],[3] | $18,010,000,000 | [3] | |||
Intersegment | 0 | 0 | 0 | |||||||||||||||||||||
Production and delivery | 11,904,000,000 | 11,840,000,000 | 10,382,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 3,863,000,000 | 2,797,000,000 | 1,179,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 3,400,000,000 | 308,000,000 | 0 | 3,737,000,000 | 0 | 0 | ||||||||||||||||||
Selling, general and administrative expenses | 592,000,000 | 657,000,000 | 431,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 126,000,000 | 210,000,000 | 285,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 119,000,000 | 66,000,000 | -22,000,000 | |||||||||||||||||||||
Goodwill impairment | 1,700,000,000 | 1,717,000,000 | 0 | 0 | ||||||||||||||||||||
Net gain on sales of assets | -671,000,000 | -46,000,000 | -717,000,000 | 0 | 0 | |||||||||||||||||||
Gain on insurance settlement | 0 | 0 | -59,000,000 | |||||||||||||||||||||
Operating income | -3,299,000,000 | [4],[5] | 1,132,000,000 | [4],[5] | 1,153,000,000 | 1,111,000,000 | 1,650,000,000 | [6],[7] | 1,707,000,000 | [6] | 639,000,000 | [6] | 1,355,000,000 | [6] | 97,000,000 | [4],[5] | 5,351,000,000 | [6],[7] | 5,814,000,000 | |||||
Interest expense, net | 630,000,000 | 518,000,000 | 186,000,000 | |||||||||||||||||||||
Provision for income taxes | 324,000,000 | [8],[9] | 1,475,000,000 | [10] | 1,510,000,000 | [11] | ||||||||||||||||||
Total assets | 58,795,000,000 | 63,473,000,000 | 63,473,000,000 | 58,795,000,000 | 63,473,000,000 | 35,440,000,000 | ||||||||||||||||||
Capital expenditures | 7,215,000,000 | 5,286,000,000 | 3,494,000,000 | |||||||||||||||||||||
Income Tax Expense (Benefit) Adjustments | -16,000,000 | -183,000,000 | 0 | -199,000,000 | [12] | -205,000,000 | [13],[14] | |||||||||||||||||
North America Copper Mines Segment [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 700,000,000 | 570,000,000 | 202,000,000 | |||||||||||||||||||||
Intersegment | 4,916,000,000 | 4,613,000,000 | 5,284,000,000 | |||||||||||||||||||||
Production and delivery | 3,440,000,000 | 3,266,000,000 | 2,933,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 484,000,000 | 402,000,000 | 360,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 5,000,000 | 5,000,000 | 4,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 8,000,000 | 5,000,000 | 1,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | -5,000,000 | -1,000,000 | -16,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | -14,000,000 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 1,698,000,000 | 1,506,000,000 | 2,204,000,000 | |||||||||||||||||||||
Interest expense, net | 4,000,000 | 4,000,000 | 1,000,000 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 9,391,000,000 | 8,920,000,000 | 8,920,000,000 | 9,391,000,000 | 8,920,000,000 | 8,148,000,000 | ||||||||||||||||||
Capital expenditures | 969,000,000 | 1,066,000,000 | 825,000,000 | |||||||||||||||||||||
Morenci [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 364,000,000 | 244,000,000 | 156,000,000 | |||||||||||||||||||||
Intersegment | 1,752,000,000 | 1,673,000,000 | 1,846,000,000 | |||||||||||||||||||||
Production and delivery | 1,287,000,000 | 1,233,000,000 | 1,076,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 168,000,000 | 133,000,000 | 122,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 1,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | -11,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 659,000,000 | 549,000,000 | 812,000,000 | |||||||||||||||||||||
Interest expense, net | 3,000,000 | 3,000,000 | 1,000,000 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 3,780,000,000 | 3,110,000,000 | 3,110,000,000 | 3,780,000,000 | 3,110,000,000 | 2,445,000,000 | ||||||||||||||||||
Capital expenditures | 826,000,000 | 737,000,000 | 266,000,000 | |||||||||||||||||||||
Other North America Copper Mines [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 336,000,000 | 326,000,000 | 46,000,000 | |||||||||||||||||||||
Intersegment | 3,164,000,000 | 2,940,000,000 | 3,438,000,000 | |||||||||||||||||||||
Production and delivery | 2,153,000,000 | 2,033,000,000 | 1,857,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 316,000,000 | 269,000,000 | 238,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 3,000,000 | 3,000,000 | 2,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 8,000,000 | 5,000,000 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | -5,000,000 | -1,000,000 | -5,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | -14,000,000 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 1,039,000,000 | 957,000,000 | 1,392,000,000 | |||||||||||||||||||||
Interest expense, net | 1,000,000 | 1,000,000 | 0 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 5,611,000,000 | 5,810,000,000 | 5,810,000,000 | 5,611,000,000 | 5,810,000,000 | 5,703,000,000 | ||||||||||||||||||
Capital expenditures | 143,000,000 | 329,000,000 | 559,000,000 | |||||||||||||||||||||
South America [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 3,022,000,000 | 3,852,000,000 | 3,910,000,000 | |||||||||||||||||||||
Intersegment | 510,000,000 | 633,000,000 | 818,000,000 | |||||||||||||||||||||
Production and delivery | 1,939,000,000 | 2,069,000,000 | 2,114,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 367,000,000 | 346,000,000 | 287,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 6,000,000 | 7,000,000 | 6,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 1,220,000,000 | 2,063,000,000 | 2,321,000,000 | |||||||||||||||||||||
Interest expense, net | 1,000,000 | 3,000,000 | 7,000,000 | |||||||||||||||||||||
Provision for income taxes | 531,000,000 | 720,000,000 | 557,000,000 | |||||||||||||||||||||
Total assets | 9,506,000,000 | 10,580,000,000 | 10,580,000,000 | 9,506,000,000 | 10,580,000,000 | 10,163,000,000 | ||||||||||||||||||
Capital expenditures | 1,785,000,000 | 1,145,000,000 | 931,000,000 | |||||||||||||||||||||
Cerro Verde [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 1,282,000,000 | 1,473,000,000 | 1,767,000,000 | |||||||||||||||||||||
Intersegment | 206,000,000 | 360,000,000 | 388,000,000 | |||||||||||||||||||||
Production and delivery | 741,000,000 | 781,000,000 | 813,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 159,000,000 | 152,000,000 | 139,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 585,000,000 | 897,000,000 | 1,200,000,000 | |||||||||||||||||||||
Interest expense, net | 1,000,000 | 2,000,000 | 7,000,000 | |||||||||||||||||||||
Provision for income taxes | 265,000,000 | 316,000,000 | 228,000,000 | [15] | ||||||||||||||||||||
Total assets | 7,513,000,000 | 6,584,000,000 | 6,584,000,000 | 7,513,000,000 | 6,584,000,000 | 5,821,000,000 | ||||||||||||||||||
Capital expenditures | 1,691,000,000 | 960,000,000 | 558,000,000 | |||||||||||||||||||||
Other South America Mines [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 1,740,000,000 | 2,379,000,000 | 2,143,000,000 | |||||||||||||||||||||
Intersegment | 304,000,000 | 273,000,000 | 430,000,000 | |||||||||||||||||||||
Production and delivery | 1,198,000,000 | 1,288,000,000 | 1,301,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 208,000,000 | 194,000,000 | 148,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 3,000,000 | 4,000,000 | 3,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 635,000,000 | 1,166,000,000 | 1,121,000,000 | |||||||||||||||||||||
Interest expense, net | 0 | 1,000,000 | 0 | |||||||||||||||||||||
Provision for income taxes | 266,000,000 | 404,000,000 | 329,000,000 | |||||||||||||||||||||
Total assets | 1,993,000,000 | 3,996,000,000 | 3,996,000,000 | 1,993,000,000 | 3,996,000,000 | 4,342,000,000 | ||||||||||||||||||
Capital expenditures | 94,000,000 | 185,000,000 | 373,000,000 | |||||||||||||||||||||
Indonesia - Grasberg [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 2,848,000,000 | [16] | 3,751,000,000 | [16] | 3,611,000,000 | [17] | ||||||||||||||||||
Intersegment | 223,000,000 | 336,000,000 | 310,000,000 | |||||||||||||||||||||
Production and delivery | 1,988,000,000 | 2,309,000,000 | 2,349,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 266,000,000 | 247,000,000 | 212,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 98,000,000 | 110,000,000 | 121,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 1,000,000 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | -59,000,000 | |||||||||||||||||||||||
Operating income | 719,000,000 | 1,420,000,000 | 1,298,000,000 | |||||||||||||||||||||
Interest expense, net | 0 | 12,000,000 | 5,000,000 | |||||||||||||||||||||
Provision for income taxes | 293,000,000 | 603,000,000 | 497,000,000 | |||||||||||||||||||||
Total assets | 8,626,000,000 | 7,437,000,000 | 7,437,000,000 | 8,626,000,000 | 7,437,000,000 | 6,591,000,000 | ||||||||||||||||||
Capital expenditures | 948,000,000 | 1,030,000,000 | 843,000,000 | |||||||||||||||||||||
Africa - Tenke [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 1,437,000,000 | 1,590,000,000 | 1,349,000,000 | |||||||||||||||||||||
Intersegment | 121,000,000 | 47,000,000 | 10,000,000 | |||||||||||||||||||||
Production and delivery | 770,000,000 | 754,000,000 | 615,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 228,000,000 | 246,000,000 | 176,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 12,000,000 | 12,000,000 | 6,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 548,000,000 | 625,000,000 | 562,000,000 | |||||||||||||||||||||
Interest expense, net | 0 | 2,000,000 | 1,000,000 | |||||||||||||||||||||
Provision for income taxes | 116,000,000 | 131,000,000 | 112,000,000 | |||||||||||||||||||||
Total assets | 5,073,000,000 | 4,849,000,000 | 4,849,000,000 | 5,073,000,000 | 4,849,000,000 | 4,622,000,000 | ||||||||||||||||||
Capital expenditures | 159,000,000 | 205,000,000 | 539,000,000 | |||||||||||||||||||||
Molybdenum [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 0 | 0 | 0 | |||||||||||||||||||||
Intersegment | 587,000,000 | 522,000,000 | 529,000,000 | |||||||||||||||||||||
Production and delivery | 328,000,000 | 317,000,000 | 320,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 92,000,000 | 82,000,000 | 59,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 167,000,000 | 123,000,000 | 150,000,000 | |||||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 2,095,000,000 | 2,107,000,000 | 2,107,000,000 | 2,095,000,000 | 2,107,000,000 | 2,018,000,000 | ||||||||||||||||||
Capital expenditures | 54,000,000 | 164,000,000 | 245,000,000 | |||||||||||||||||||||
Rod & Refining [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 4,626,000,000 | 4,995,000,000 | 4,989,000,000 | |||||||||||||||||||||
Intersegment | 29,000,000 | 27,000,000 | 27,000,000 | |||||||||||||||||||||
Production and delivery | 4,633,000,000 | 4,990,000,000 | 4,993,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 10,000,000 | 9,000,000 | 9,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 12,000,000 | 23,000,000 | 14,000,000 | |||||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 235,000,000 | 239,000,000 | 239,000,000 | 235,000,000 | 239,000,000 | 242,000,000 | ||||||||||||||||||
Capital expenditures | 4,000,000 | 4,000,000 | 6,000,000 | |||||||||||||||||||||
Atlantic Copper Smelting & Refining [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 2,391,000,000 | 2,027,000,000 | 2,683,000,000 | |||||||||||||||||||||
Intersegment | 21,000,000 | 14,000,000 | 26,000,000 | |||||||||||||||||||||
Production and delivery | 2,356,000,000 | 2,054,000,000 | 2,640,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 41,000,000 | 42,000,000 | 42,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 17,000,000 | 20,000,000 | 19,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | -2,000,000 | -75,000,000 | [18] | 8,000,000 | ||||||||||||||||||||
Interest expense, net | 13,000,000 | 16,000,000 | 12,000,000 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 898,000,000 | 1,039,000,000 | 1,039,000,000 | 898,000,000 | 1,039,000,000 | 992,000,000 | ||||||||||||||||||
Capital expenditures | 17,000,000 | 67,000,000 | 16,000,000 | |||||||||||||||||||||
Cost of Goods Sold, Maintenance Costs | 50,000,000 | |||||||||||||||||||||||
Maintenance Turnaround, Duration | 68 days | |||||||||||||||||||||||
Corporate, Other & Eliminations [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 0 | 4,000,000 | 7,000,000 | |||||||||||||||||||||
Intersegment | 0 | 0 | 0 | |||||||||||||||||||||
Production and delivery | 2,000,000 | 7,000,000 | 3,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 14,000,000 | 11,000,000 | 7,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 222,000,000 | 354,000,000 | 257,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 11,000,000 | 12,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 1,000,000 | 0 | -3,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | -239,000,000 | -379,000,000 | -269,000,000 | |||||||||||||||||||||
Interest expense, net | 287,000,000 | 220,000,000 | 79,000,000 | |||||||||||||||||||||
Provision for income taxes | -837,000,000 | 21,000,000 | [19] | 344,000,000 | ||||||||||||||||||||
Total assets | 818,000,000 | 1,047,000,000 | 1,047,000,000 | 818,000,000 | 1,047,000,000 | 2,050,000,000 | ||||||||||||||||||
Capital expenditures | 22,000,000 | 56,000,000 | 20,000,000 | |||||||||||||||||||||
Other Mining and Eliminations Segment [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 1,704,000,000 | [20] | 1,516,000,000 | [20] | 1,259,000,000 | [20] | ||||||||||||||||||
Intersegment | -6,407,000,000 | -6,192,000,000 | -7,004,000,000 | |||||||||||||||||||||
Production and delivery | -4,789,000,000 | -4,608,000,000 | -5,585,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 70,000,000 | 48,000,000 | 27,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 25,000,000 | 29,000,000 | 18,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 118,000,000 | 193,000,000 | 272,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 123,000,000 | 67,000,000 | -3,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | -703,000,000 | [21] | ||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | 453,000,000 | -405,000,000 | -474,000,000 | |||||||||||||||||||||
Interest expense, net | 84,000,000 | 80,000,000 | 81,000,000 | |||||||||||||||||||||
Provision for income taxes | 221,000,000 | [21] | 0 | 0 | ||||||||||||||||||||
Total assets | 1,319,000,000 | 1,003,000,000 | 1,003,000,000 | 1,319,000,000 | 1,003,000,000 | 614,000,000 | ||||||||||||||||||
Capital expenditures | 52,000,000 | 113,000,000 | 69,000,000 | |||||||||||||||||||||
Mining Operations [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 16,728,000,000 | 18,301,000,000 | 18,003,000,000 | |||||||||||||||||||||
Intersegment | 0 | 0 | 0 | |||||||||||||||||||||
Production and delivery | 10,665,000,000 | 11,151,000,000 | 10,379,000,000 | |||||||||||||||||||||
Depreciation, depletion and amortization | 1,558,000,000 | 1,422,000,000 | 1,172,000,000 | |||||||||||||||||||||
Impairment of oil and gas properties | 0 | |||||||||||||||||||||||
Selling, general and administrative expenses | 163,000,000 | 183,000,000 | 174,000,000 | |||||||||||||||||||||
Mining exploration and research expenses | 126,000,000 | 199,000,000 | 273,000,000 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 118,000,000 | 66,000,000 | -19,000,000 | |||||||||||||||||||||
Goodwill impairment | 0 | |||||||||||||||||||||||
Net gain on sales of assets | -717,000,000 | |||||||||||||||||||||||
Gain on insurance settlement | -59,000,000 | |||||||||||||||||||||||
Operating income | 4,815,000,000 | 5,280,000,000 | 6,083,000,000 | |||||||||||||||||||||
Interest expense, net | 102,000,000 | 117,000,000 | 107,000,000 | |||||||||||||||||||||
Provision for income taxes | 1,161,000,000 | 1,454,000,000 | 1,166,000,000 | |||||||||||||||||||||
Total assets | 37,143,000,000 | 36,174,000,000 | 36,174,000,000 | 37,143,000,000 | 36,174,000,000 | 33,390,000,000 | ||||||||||||||||||
Capital expenditures | 3,988,000,000 | 3,794,000,000 | 3,474,000,000 | |||||||||||||||||||||
Oil and Gas Operations Segment [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Unaffiliated customers | 4,710,000,000 | [22] | 2,616,000,000 | [22] | 0 | |||||||||||||||||||
Intersegment | 0 | 0 | 0 | |||||||||||||||||||||
Production and delivery | 1,237,000,000 | 682,000,000 | 0 | |||||||||||||||||||||
Depreciation, depletion and amortization | 2,291,000,000 | 1,364,000,000 | 0 | |||||||||||||||||||||
Impairment of oil and gas properties | 3,737,000,000 | |||||||||||||||||||||||
Selling, general and administrative expenses | 207,000,000 | 120,000,000 | 0 | |||||||||||||||||||||
Mining exploration and research expenses | 0 | 0 | 0 | |||||||||||||||||||||
Environmental obligations and shutdown costs | 0 | 0 | 0 | |||||||||||||||||||||
Goodwill impairment | 1,717,000,000 | |||||||||||||||||||||||
Net gain on sales of assets | 0 | |||||||||||||||||||||||
Gain on insurance settlement | 0 | |||||||||||||||||||||||
Operating income | -4,479,000,000 | 450,000,000 | 0 | |||||||||||||||||||||
Interest expense, net | 241,000,000 | 181,000,000 | 0 | |||||||||||||||||||||
Provision for income taxes | 0 | 0 | 0 | |||||||||||||||||||||
Total assets | 20,834,000,000 | 26,252,000,000 | 26,252,000,000 | 20,834,000,000 | 26,252,000,000 | 0 | ||||||||||||||||||
Capital expenditures | 3,205,000,000 | 1,436,000,000 | 0 | |||||||||||||||||||||
PT Smelting [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Revenues to major customers | 1,800,000,000 | 1,700,000,000 | 2,100,000,000 | |||||||||||||||||||||
Cerro Verde [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Deferred Foreign Income Tax Expense (Benefit) Associated with Foreign Reinvested Profits | 234,000,000 | |||||||||||||||||||||||
Crude Oil and Natural Gas Swaps [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 505,000,000 | -334,000,000 | ||||||||||||||||||||||
Candelaria and Ojos del Salado Mining Complex [Member] | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Pretax | 671,000,000 | |||||||||||||||||||||||
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Tax Provision (Benefit) | $221,000,000 | |||||||||||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||
[2] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||||||||||||||||||||
[3] | Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||||
[4] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||||||||||||||||||||
[5] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||||||||||||||||||||
[6] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||||||||||||||||||||
[7] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||||||||||||||||||||
[8] | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | |||||||||||||||||||||||
[9] | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | |||||||||||||||||||||||
[10] | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | |||||||||||||||||||||||
[11] | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | |||||||||||||||||||||||
[12] | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | |||||||||||||||||||||||
[13] | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | |||||||||||||||||||||||
[14] | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. | |||||||||||||||||||||||
[15] | Includes a credit of $234 million for the reversal of a net deferred tax liability. | |||||||||||||||||||||||
[16] | Includes PT-FI's sales to PT Smelting totaling $1.8 billion in 2014 and $1.7 billion in 2013. | |||||||||||||||||||||||
[17] | Includes PT-FI's sales to PT Smelting totaling $2.1 billion in 2012. | |||||||||||||||||||||||
[18] | Includes $50 million for shutdown costs associated with Atlantic Copper's scheduled 68-day maintenance turnaround, which was completed in fourth-quarter 2013. | |||||||||||||||||||||||
[19] | Includes $199 million of net benefits resulting from oil and gas acquisitions. | |||||||||||||||||||||||
[20] | Includes revenues from FCX's molybdenum sales company, which included sales of molybdenum produced by the molybdenum mines and by certain of the North and South America copper mines. | |||||||||||||||||||||||
[21] | Includes a gain of $671 million for the sale of Candelaria/Ojos and related provision for income taxes of $221 million. | |||||||||||||||||||||||
[22] | Includes net mark-to-market gains (losses) associated with crude oil and natural gas derivative contracts totaling $505 million in 2014 and $(334) million for the period from June 1, 2013, to December 31, 2013. |
GUARANTOR_FINANCIAL_STATEMENTS2
GUARANTOR FINANCIAL STATEMENTS (Details) (FM O&G LLC Guarantor [Member]) | Dec. 31, 2013 |
FM O&G LLC Guarantor [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of subsidiary | 100.00% |
GUARANTOR_FINANCIAL_STATEMENTS3
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidating Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 03, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $464 | $1,985 | $3,705 | $4,822 | ||||
Accounts receivables | 2,563 | 2,562 | ||||||
Other current assets | 6,018 | 5,425 | ||||||
Total current assets | 9,045 | 9,972 | ||||||
Property, plant, equipment and mining development costs, net | 26,220 | 24,042 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization | 9,187 | 12,472 | ||||||
Not subject to amortization | 10,087 | 10,887 | ||||||
Investment in consolidated subsidiaries | 0 | 0 | ||||||
Goodwill | 0 | 1,938 | 1,916 | |||||
Other Assets | 4,256 | 4,184 | ||||||
Total assets | 58,795 | 63,473 | 35,440 | |||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | 5,172 | 4,773 | ||||||
Long-term debt, less current portion | 18,492 | 20,394 | ||||||
Deferred income taxes | 6,398 | 7,410 | ||||||
Environmental and asset retirement obligations, less current portion | 3,647 | 3,259 | ||||||
Other liabilities | 1,861 | 1,690 | ||||||
Total liabilities | 35,570 | 37,526 | ||||||
Redeemable noncontrolling interest | 751 | 716 | 259 | |||||
Equity: | ||||||||
Stockholders' equity | 18,287 | 20,934 | ||||||
Noncontrolling interests | 4,187 | 4,297 | ||||||
Total equity | 22,474 | 25,231 | 21,311 | 18,553 | ||||
Total liabilities and equity | 58,795 | 63,473 | ||||||
FCX Issuer [Member] | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||
Accounts receivables | 234 | 855 | ||||||
Other current assets | 89 | 114 | ||||||
Total current assets | 323 | 969 | ||||||
Property, plant, equipment and mining development costs, net | 22 | 27 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization | 0 | 0 | ||||||
Not subject to amortization | 0 | 0 | ||||||
Investment in consolidated subsidiaries | 28,765 | 31,162 | ||||||
Goodwill | 0 | |||||||
Other Assets | 9,012 | 7,126 | ||||||
Total assets | 38,122 | 39,284 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | 1,592 | 1,003 | ||||||
Long-term debt, less current portion | 15,028 | 13,184 | ||||||
Deferred income taxes | 3,161 | [1] | 4,137 | [1] | ||||
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||||||
Other liabilities | 54 | 26 | ||||||
Total liabilities | 19,835 | 18,350 | ||||||
Redeemable noncontrolling interest | 0 | 0 | ||||||
Equity: | ||||||||
Stockholders' equity | 18,287 | 20,934 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total equity | 18,287 | 20,934 | ||||||
Total liabilities and equity | 38,122 | 39,284 | ||||||
FM O&G LLC Guarantor [Member] | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 1 | 0 | 0 | |||||
Accounts receivables | 2,230 | 659 | ||||||
Other current assets | 404 | 38 | ||||||
Total current assets | 2,635 | 697 | ||||||
Property, plant, equipment and mining development costs, net | 46 | 43 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization | 3,296 | 6,207 | ||||||
Not subject to amortization | 2,447 | 2,649 | ||||||
Investment in consolidated subsidiaries | 6,460 | 9,712 | ||||||
Goodwill | 437 | |||||||
Other Assets | 3,947 | 4,640 | ||||||
Total assets | 18,831 | 24,385 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | 560 | 758 | ||||||
Long-term debt, less current portion | 3,874 | 7,199 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Environmental and asset retirement obligations, less current portion | 302 | 301 | ||||||
Other liabilities | 3,372 | 3,436 | ||||||
Total liabilities | 8,108 | 11,694 | ||||||
Redeemable noncontrolling interest | 0 | 0 | ||||||
Equity: | ||||||||
Stockholders' equity | 10,723 | 12,691 | ||||||
Noncontrolling interests | 0 | 0 | ||||||
Total equity | 10,723 | 12,691 | ||||||
Total liabilities and equity | 18,831 | 24,385 | ||||||
Non-Guarantor Subsidiaries [Member] | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 463 | 1,985 | 3,705 | |||||
Accounts receivables | 2,671 | 2,258 | ||||||
Other current assets | 5,525 | 5,273 | ||||||
Total current assets | 8,659 | 9,516 | ||||||
Property, plant, equipment and mining development costs, net | 26,152 | 23,972 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization | 5,907 | 6,265 | ||||||
Not subject to amortization | 7,640 | 8,238 | ||||||
Investment in consolidated subsidiaries | 10,246 | 12,468 | ||||||
Goodwill | 1,479 | |||||||
Other Assets | 4,084 | 4,128 | ||||||
Total assets | 62,688 | 66,066 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | 5,592 | 4,222 | ||||||
Long-term debt, less current portion | 8,902 | 8,056 | ||||||
Deferred income taxes | 3,237 | 3,273 | ||||||
Environmental and asset retirement obligations, less current portion | 3,345 | 2,958 | ||||||
Other liabilities | 1,910 | 1,893 | ||||||
Total liabilities | 22,986 | 20,402 | ||||||
Redeemable noncontrolling interest | 751 | 716 | ||||||
Equity: | ||||||||
Stockholders' equity | 35,268 | 41,100 | ||||||
Noncontrolling interests | 3,683 | 3,848 | ||||||
Total equity | 38,951 | 44,948 | ||||||
Total liabilities and equity | 62,688 | 66,066 | ||||||
Eliminations [Member] | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||
Accounts receivables | -2,572 | -1,210 | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | -2,572 | -1,210 | ||||||
Property, plant, equipment and mining development costs, net | 0 | 0 | ||||||
Oil and gas properties, net - full cost method: | ||||||||
Subject to amortization | -16 | 0 | ||||||
Not subject to amortization | 0 | 0 | ||||||
Investment in consolidated subsidiaries | -45,471 | -53,342 | ||||||
Goodwill | 0 | |||||||
Other Assets | -12,787 | -11,710 | ||||||
Total assets | -60,846 | -66,262 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | -2,572 | -1,210 | ||||||
Long-term debt, less current portion | -9,312 | -8,045 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Environmental and asset retirement obligations, less current portion | 0 | 0 | ||||||
Other liabilities | -3,475 | -3,665 | ||||||
Total liabilities | -15,359 | -12,920 | ||||||
Redeemable noncontrolling interest | 0 | 0 | ||||||
Equity: | ||||||||
Stockholders' equity | -45,991 | -53,791 | ||||||
Noncontrolling interests | 504 | 449 | ||||||
Total equity | -45,487 | -53,342 | ||||||
Total liabilities and equity | ($60,846) | ($66,262) | ||||||
[1] | All U.S. related deferred income taxes are recorded at the parent company. |
GUARANTOR_FINANCIAL_STATEMENTS4
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidating Comprehensive (Loss) Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | ||||||||||||||||||||||
Revenues | $5,235 | [1] | $5,696 | [1] | $5,522 | [1] | $4,985 | [1] | $5,885 | [2] | $6,165 | [2] | $4,288 | [2] | $4,583 | $21,438 | [1],[3] | $20,921 | [2],[3] | $18,010 | [3] | |
Total costs and expenses | 21,341 | 15,570 | 12,196 | |||||||||||||||||||
Operating income | -3,299 | [4],[5] | 1,132 | [4],[5] | 1,153 | 1,111 | 1,650 | [6],[7] | 1,707 | [6] | 639 | [6] | 1,355 | [6] | 97 | [4],[5] | 5,351 | [6],[7] | 5,814 | |||
Interest expense, net | -630 | -518 | -186 | |||||||||||||||||||
Net gain (loss) on early extinguishment of debt | 73 | -35 | -168 | |||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | 128 | 0 | |||||||||||||||||||
Other income (expense), net | 36 | -13 | ||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | -424 | 4,913 | 5,487 | |||||||||||||||||||
Benefit from (provision for) income taxes | -324 | [8],[9] | -1,475 | [10] | -1,510 | [11] | ||||||||||||||||
Equity in affiliated companies’ net earnings (losses) | 3 | 3 | 3 | |||||||||||||||||||
Net (loss) income | -2,735 | [12],[13] | 704 | [12],[13] | 660 | [12],[13] | 626 | 959 | [14] | 1,048 | 610 | [14] | 824 | -745 | [12],[13] | 3,441 | [14] | 3,980 | ||||
Net income and preferred dividends attributable to noncontrolling interests | -117 | -152 | -178 | -116 | -252 | -227 | -128 | -176 | -563 | -783 | ||||||||||||
Net (loss) income attributable to FCX common stockholders | -2,852 | [1],[12],[13],[4],[5] | 552 | [1],[12],[13],[4],[5] | 482 | [1],[12],[13] | 510 | [1] | 707 | [14],[15],[2],[6],[7] | 821 | [2],[6] | 482 | [14],[15],[16],[2],[6] | 648 | [15],[6] | -1,308 | [1],[12],[13],[4],[5] | 2,658 | [14],[15],[16],[2],[6],[7] | 3,041 | |
Other comprehensive income | -139 | 101 | ||||||||||||||||||||
Total comprehensive income (loss) | -1,447 | 2,759 | 3,000 | |||||||||||||||||||
Impairment of oil and gas properties and goodwill | 5,454 | |||||||||||||||||||||
FCX Issuer [Member] | ||||||||||||||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | ||||||||||||||||||||||
Revenues | 0 | 0 | ||||||||||||||||||||
Total costs and expenses | 59 | 134 | ||||||||||||||||||||
Operating income | -59 | -134 | ||||||||||||||||||||
Interest expense, net | -382 | -319 | ||||||||||||||||||||
Net gain (loss) on early extinguishment of debt | -5 | -45 | ||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 128 | |||||||||||||||||||||
Other income (expense), net | 72 | 61 | ||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | -374 | -309 | ||||||||||||||||||||
Benefit from (provision for) income taxes | 73 | 81 | ||||||||||||||||||||
Equity in affiliated companies’ net earnings (losses) | -1,007 | 2,886 | ||||||||||||||||||||
Net (loss) income | -1,308 | 2,658 | ||||||||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | 0 | 0 | ||||||||||||||||||||
Net (loss) income attributable to FCX common stockholders | -1,308 | 2,658 | ||||||||||||||||||||
Other comprehensive income | 0 | 0 | ||||||||||||||||||||
Total comprehensive income (loss) | -1,308 | 2,658 | ||||||||||||||||||||
Impairment of oil and gas properties and goodwill | 0 | |||||||||||||||||||||
FM O&G LLC Guarantor [Member] | ||||||||||||||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | ||||||||||||||||||||||
Revenues | 2,356 | 1,177 | ||||||||||||||||||||
Total costs and expenses | 3,498 | [17] | 1,065 | |||||||||||||||||||
Operating income | -1,142 | 112 | ||||||||||||||||||||
Interest expense, net | -139 | -129 | ||||||||||||||||||||
Net gain (loss) on early extinguishment of debt | 78 | 0 | ||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | |||||||||||||||||||||
Other income (expense), net | 3 | 0 | ||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | -1,200 | -17 | ||||||||||||||||||||
Benefit from (provision for) income taxes | 281 | 17 | ||||||||||||||||||||
Equity in affiliated companies’ net earnings (losses) | -3,429 | 281 | ||||||||||||||||||||
Net (loss) income | -4,348 | 281 | ||||||||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | 0 | 0 | ||||||||||||||||||||
Net (loss) income attributable to FCX common stockholders | -4,348 | 281 | ||||||||||||||||||||
Other comprehensive income | 0 | 0 | ||||||||||||||||||||
Total comprehensive income (loss) | -4,348 | 281 | ||||||||||||||||||||
Impairment of oil and gas properties and goodwill | 1,922 | |||||||||||||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | ||||||||||||||||||||||
Revenues | 19,082 | 19,744 | ||||||||||||||||||||
Total costs and expenses | 17,762 | [17] | 14,371 | |||||||||||||||||||
Operating income | 1,320 | 5,373 | ||||||||||||||||||||
Interest expense, net | -189 | -129 | ||||||||||||||||||||
Net gain (loss) on early extinguishment of debt | 0 | 10 | ||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | |||||||||||||||||||||
Other income (expense), net | 41 | -15 | ||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | 1,172 | 5,239 | ||||||||||||||||||||
Benefit from (provision for) income taxes | -686 | -1,573 | ||||||||||||||||||||
Equity in affiliated companies’ net earnings (losses) | -4,633 | 268 | ||||||||||||||||||||
Net (loss) income | -4,147 | 3,934 | ||||||||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | -519 | -706 | ||||||||||||||||||||
Net (loss) income attributable to FCX common stockholders | -4,666 | 3,228 | ||||||||||||||||||||
Other comprehensive income | -139 | 101 | ||||||||||||||||||||
Total comprehensive income (loss) | -4,805 | 3,329 | ||||||||||||||||||||
Impairment of oil and gas properties and goodwill | 3,486 | |||||||||||||||||||||
Eliminations [Member] | ||||||||||||||||||||||
Condensed Comprehensive (Loss) Income Statements [Line Items] | ||||||||||||||||||||||
Revenues | 0 | 0 | ||||||||||||||||||||
Total costs and expenses | 22 | 0 | ||||||||||||||||||||
Operating income | -22 | 0 | ||||||||||||||||||||
Interest expense, net | 80 | 59 | ||||||||||||||||||||
Net gain (loss) on early extinguishment of debt | 0 | 0 | ||||||||||||||||||||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | |||||||||||||||||||||
Other income (expense), net | -80 | -59 | ||||||||||||||||||||
(Loss) income before income taxes and equity in affiliated companies' net earnings (losses) | -22 | 0 | ||||||||||||||||||||
Benefit from (provision for) income taxes | 8 | 0 | ||||||||||||||||||||
Equity in affiliated companies’ net earnings (losses) | 9,072 | -3,432 | ||||||||||||||||||||
Net (loss) income | 9,058 | -3,432 | ||||||||||||||||||||
Net income and preferred dividends attributable to noncontrolling interests | -44 | -77 | ||||||||||||||||||||
Net (loss) income attributable to FCX common stockholders | 9,014 | -3,509 | ||||||||||||||||||||
Other comprehensive income | 0 | 0 | ||||||||||||||||||||
Total comprehensive income (loss) | 9,014 | -3,509 | ||||||||||||||||||||
Impairment of oil and gas properties and goodwill | $46 | |||||||||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | |||||||||||||||||||||
[2] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | |||||||||||||||||||||
[3] | Revenues are attributed to countries based on the location of the customer. | |||||||||||||||||||||
[4] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | |||||||||||||||||||||
[5] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | |||||||||||||||||||||
[6] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | |||||||||||||||||||||
[7] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | |||||||||||||||||||||
[8] | Includes charges related to changes in Chilean and Peruvian tax rules of $54 million and $24 million, respectively. | |||||||||||||||||||||
[9] | Includes a net charge of $221 million related to the sale of Candelaria/Ojos. | |||||||||||||||||||||
[10] | Includes a net tax benefit of $199 million as a result of the oil and gas acquisitions. | |||||||||||||||||||||
[11] | Includes the reversal of Cerro Verde's deferred income tax liability of $234 million. | |||||||||||||||||||||
[12] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | |||||||||||||||||||||
[13] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||
[14] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | |||||||||||||||||||||
[15] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | |||||||||||||||||||||
[16] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. | |||||||||||||||||||||
[17] | Includes impairment charges totaling $1.9 billion at the FM O&G LLC Guarantor and $3.5 billion at the non-guarantor subsidiaries related to ceiling test impairment charges for FCX's oil and gas properties pursuant to full cost accounting rules and a goodwill impairment charge. |
GUARANTOR_FINANCIAL_STATEMENTS5
GUARANTOR FINANCIAL STATEMENTS (Condensed Consolidated Cash Flow Statement) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Cash flow from operating activities: | |||||
Net (loss) income | ($745) | [1],[2] | $3,441 | [3] | $3,980 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 3,863 | 2,797 | 1,179 | ||
Impairment of oil and gas properties and goodwill | 5,454 | ||||
Net (gains) losses on crude oil and natural gas derivative contracts | -504 | 334 | 0 | ||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | -128 | 0 | ||
Equity in (earnings) losses of consolidated subsidiaries | -3 | 0 | |||
Other, net | -1,802 | 72 | |||
Increase (decrease) in working capital and changes in other tax payment, excluding amounts from the acquisitions | -632 | -377 | |||
Net cash provided by operating activities | 5,631 | 6,139 | 3,774 | ||
Cash flow from investing activities: | |||||
Capital expenditures | -7,215 | -5,286 | -3,494 | ||
Acquisitions, net of cash acquired | -1,426 | -5,441 | |||
Intercompany loans | 0 | 0 | |||
Investment in consolidated subsidiary | 0 | ||||
Net proceeds from sale of Candelaria and Ojos del Salado | 1,709 | 0 | 0 | ||
Net proceeds from sale of Eagle Ford shale assets | 2,910 | 0 | 0 | ||
Dividends from consolidated subsidiary | 0 | ||||
Other, net | 221 | -181 | 31 | ||
Net cash used in investing activities | -3,801 | -10,908 | -3,463 | ||
Cash flow from financing activities: | |||||
Proceeds from Debt | 8,710 | 11,501 | 3,029 | ||
Repayments of Debt and redemption of MMR preferred stock | -10,306 | 5,704 | |||
Intercompany loans | 0 | 0 | |||
Cash dividends and distributions paid, and contributions received | -1,729 | -2,537 | |||
Other, net | -26 | -211 | |||
Net cash (used in) provided by financing activities | -3,351 | 3,049 | -1,428 | ||
Net decrease in cash and cash equivalents | -1,521 | -1,720 | -1,117 | ||
Cash and cash equivalents at beginning of year | 1,985 | 3,705 | 4,822 | ||
Cash and cash equivalents at end of year | 464 | 1,985 | 3,705 | ||
FCX Issuer [Member] | |||||
Cash flow from operating activities: | |||||
Net (loss) income | -1,308 | 2,658 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 4 | 4 | |||
Impairment of oil and gas properties and goodwill | 0 | ||||
Net (gains) losses on crude oil and natural gas derivative contracts | 0 | 0 | |||
Gain on investment in McMoRan Exploration Co. (MMR) | -128 | ||||
Equity in (earnings) losses of consolidated subsidiaries | 1,007 | -2,886 | |||
Other, net | -882 | 8 | |||
Increase (decrease) in working capital and changes in other tax payment, excluding amounts from the acquisitions | 723 | 272 | |||
Net cash provided by operating activities | -456 | -72 | |||
Cash flow from investing activities: | |||||
Capital expenditures | 0 | 0 | |||
Acquisitions, net of cash acquired | 0 | -5,437 | |||
Intercompany loans | -1,328 | 834 | |||
Investment in consolidated subsidiary | 1,221 | ||||
Net proceeds from sale of Candelaria and Ojos del Salado | 0 | ||||
Net proceeds from sale of Eagle Ford shale assets | 0 | ||||
Dividends from consolidated subsidiary | 629 | ||||
Other, net | 0 | 15 | |||
Net cash used in investing activities | -107 | -3,959 | |||
Cash flow from financing activities: | |||||
Proceeds from Debt | 7,464 | 11,260 | |||
Repayments of Debt and redemption of MMR preferred stock | -5,575 | 4,737 | |||
Intercompany loans | 0 | 0 | |||
Cash dividends and distributions paid, and contributions received | -1,305 | -2,281 | |||
Other, net | -21 | -211 | |||
Net cash (used in) provided by financing activities | 563 | 4,031 | |||
Net decrease in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | |||
Cash and cash equivalents at end of year | 0 | 0 | |||
FM O&G LLC Guarantor [Member] | |||||
Cash flow from operating activities: | |||||
Net (loss) income | -4,348 | 281 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 806 | 616 | |||
Impairment of oil and gas properties and goodwill | 1,922 | ||||
Net (gains) losses on crude oil and natural gas derivative contracts | -504 | 334 | |||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | ||||
Equity in (earnings) losses of consolidated subsidiaries | 3,429 | -281 | |||
Other, net | -113 | -14 | |||
Increase (decrease) in working capital and changes in other tax payment, excluding amounts from the acquisitions | -1,750 | 735 | |||
Net cash provided by operating activities | -558 | 1,671 | |||
Cash flow from investing activities: | |||||
Capital expenditures | -2,143 | -894 | |||
Acquisitions, net of cash acquired | 0 | 0 | |||
Intercompany loans | 704 | 0 | |||
Investment in consolidated subsidiary | -130 | ||||
Net proceeds from sale of Candelaria and Ojos del Salado | 0 | ||||
Net proceeds from sale of Eagle Ford shale assets | 2,910 | ||||
Dividends from consolidated subsidiary | 0 | ||||
Other, net | 41 | 30 | |||
Net cash used in investing activities | 1,382 | -864 | |||
Cash flow from financing activities: | |||||
Proceeds from Debt | 0 | 0 | |||
Repayments of Debt and redemption of MMR preferred stock | -3,994 | 416 | |||
Intercompany loans | 810 | -391 | |||
Cash dividends and distributions paid, and contributions received | 2,364 | 0 | |||
Other, net | -3 | 0 | |||
Net cash (used in) provided by financing activities | -823 | -807 | |||
Net decrease in cash and cash equivalents | 1 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | |||
Cash and cash equivalents at end of year | 1 | 0 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Cash flow from operating activities: | |||||
Net (loss) income | -4,147 | 3,934 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 3,077 | 2,177 | |||
Impairment of oil and gas properties and goodwill | 3,486 | ||||
Net (gains) losses on crude oil and natural gas derivative contracts | 0 | 0 | |||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | ||||
Equity in (earnings) losses of consolidated subsidiaries | 4,633 | -265 | |||
Other, net | -807 | 78 | |||
Increase (decrease) in working capital and changes in other tax payment, excluding amounts from the acquisitions | 395 | -1,384 | |||
Net cash provided by operating activities | 6,637 | 4,540 | |||
Cash flow from investing activities: | |||||
Capital expenditures | -5,072 | -4,392 | |||
Acquisitions, net of cash acquired | -1,426 | -4 | |||
Intercompany loans | 0 | -162 | |||
Investment in consolidated subsidiary | -2,408 | ||||
Net proceeds from sale of Candelaria and Ojos del Salado | 1,709 | ||||
Net proceeds from sale of Eagle Ford shale assets | 0 | ||||
Dividends from consolidated subsidiary | 0 | ||||
Other, net | 180 | -226 | |||
Net cash used in investing activities | -7,017 | -4,784 | |||
Cash flow from financing activities: | |||||
Proceeds from Debt | 1,246 | 241 | |||
Repayments of Debt and redemption of MMR preferred stock | -737 | 551 | |||
Intercompany loans | -186 | -281 | |||
Cash dividends and distributions paid, and contributions received | -1,463 | -885 | |||
Other, net | -2 | 0 | |||
Net cash (used in) provided by financing activities | -1,142 | -1,476 | |||
Net decrease in cash and cash equivalents | -1,522 | -1,720 | |||
Cash and cash equivalents at beginning of year | 1,985 | 3,705 | |||
Cash and cash equivalents at end of year | 463 | 1,985 | |||
Eliminations [Member] | |||||
Cash flow from operating activities: | |||||
Net (loss) income | 9,058 | -3,432 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | -24 | 0 | |||
Impairment of oil and gas properties and goodwill | 46 | ||||
Net (gains) losses on crude oil and natural gas derivative contracts | 0 | 0 | |||
Gain on investment in McMoRan Exploration Co. (MMR) | 0 | ||||
Equity in (earnings) losses of consolidated subsidiaries | -9,072 | 3,432 | |||
Other, net | 0 | 0 | |||
Increase (decrease) in working capital and changes in other tax payment, excluding amounts from the acquisitions | 0 | 0 | |||
Net cash provided by operating activities | 8 | 0 | |||
Cash flow from investing activities: | |||||
Capital expenditures | 0 | 0 | |||
Acquisitions, net of cash acquired | 0 | 0 | |||
Intercompany loans | 624 | -672 | |||
Investment in consolidated subsidiary | 1,317 | ||||
Net proceeds from sale of Candelaria and Ojos del Salado | 0 | ||||
Net proceeds from sale of Eagle Ford shale assets | 0 | ||||
Dividends from consolidated subsidiary | -629 | ||||
Other, net | 0 | 0 | |||
Net cash used in investing activities | 1,941 | -1,301 | |||
Cash flow from financing activities: | |||||
Proceeds from Debt | 0 | 0 | |||
Repayments of Debt and redemption of MMR preferred stock | 0 | 0 | |||
Intercompany loans | -624 | 672 | |||
Cash dividends and distributions paid, and contributions received | -1,325 | 629 | |||
Other, net | 0 | 0 | |||
Net cash (used in) provided by financing activities | -1,949 | 1,301 | |||
Net decrease in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | |||
Cash and cash equivalents at end of year | $0 | $0 | |||
[1] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||
[2] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||
[3] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Dec. 31, 2014 | Feb. 27, 2015 |
Subsequent Event [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $651,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,500,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 3,700,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 662,000,000 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 11,800,000,000 | |
Bank Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 650,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 200,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2,200,000,000 | |
Bank Term Loan [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 225,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 269,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,100,000,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 299,000,000 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $1,200,000,000 |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||||||||||||
Revenues | $5,235,000,000 | [1] | $5,696,000,000 | [1] | $5,522,000,000 | [1] | $4,985,000,000 | [1] | $5,885,000,000 | [2] | $6,165,000,000 | [2] | $4,288,000,000 | [2] | $4,583,000,000 | $21,438,000,000 | [1],[3] | $20,921,000,000 | [2],[3] | $18,010,000,000 | [3] | ||
Operating income | -3,299,000,000 | [4],[5] | 1,132,000,000 | [4],[5] | 1,153,000,000 | 1,111,000,000 | 1,650,000,000 | [6],[7] | 1,707,000,000 | [6] | 639,000,000 | [6] | 1,355,000,000 | [6] | 97,000,000 | [4],[5] | 5,351,000,000 | [6],[7] | 5,814,000,000 | ||||
Net (loss) income | -2,735,000,000 | [8],[9] | 704,000,000 | [8],[9] | 660,000,000 | [8],[9] | 626,000,000 | 959,000,000 | [10] | 1,048,000,000 | 610,000,000 | [10] | 824,000,000 | -745,000,000 | [8],[9] | 3,441,000,000 | [10] | 3,980,000,000 | |||||
Net Income (Loss) Attributable to Noncontrolling Interests and Preferred Dividends | 117,000,000 | 152,000,000 | 178,000,000 | 116,000,000 | 252,000,000 | 227,000,000 | 128,000,000 | 176,000,000 | 563,000,000 | 783,000,000 | |||||||||||||
Net income attributable to FCX common stockholders | -2,852,000,000 | [1],[4],[5],[8],[9] | 552,000,000 | [1],[4],[5],[8],[9] | 482,000,000 | [1],[8],[9] | 510,000,000 | [1] | 707,000,000 | [10],[11],[2],[6],[7] | 821,000,000 | [2],[6] | 482,000,000 | [10],[11],[12],[2],[6] | 648,000,000 | [11],[6] | -1,308,000,000 | [1],[4],[5],[8],[9] | 2,658,000,000 | [10],[11],[12],[2],[6],[7] | 3,041,000,000 | ||
Basic net (loss) income per share attributable to FCX common stockholders | ($2.75) | $0.53 | $0.46 | $0.49 | $0.68 | $0.79 | $0.49 | $0.68 | ($1.26) | $2.65 | $3.20 | ||||||||||||
Diluted net (loss) income per share attributable to FCX common stockholders | ($2.75) | [1],[4],[5],[8],[9] | $0.53 | [1],[4],[5],[8],[9] | $0.46 | [1],[8],[9] | $0.49 | [1] | $0.68 | [10],[11],[2],[6],[7] | $0.79 | [2],[6] | $0.49 | [10],[11],[12],[2],[6] | $0.68 | [11],[6] | ($1.26) | [1],[4],[5],[8],[9] | $2.64 | [10],[11],[12],[2],[6],[7] | $3.19 | ||
Impairment of oil and gas properties | 3,400,000,000 | 308,000,000 | 0 | 3,737,000,000 | 0 | 0 | |||||||||||||||||
Impairment of Oil and Gas Properties, Net of Tax | 2,100,000,000 | 192,000,000 | 2,300,000,000 | ||||||||||||||||||||
Impairment of Oil and Gas Properties, Amount per Share | $2.05 | $0.18 | $2.24 | ||||||||||||||||||||
Goodwill impairment | 1,700,000,000 | 1,717,000,000 | 0 | 0 | |||||||||||||||||||
Goodwill, Impairment Loss, Amount per Share | $1.65 | $1.65 | |||||||||||||||||||||
Gain (Loss) on Disposition of Assets | 671,000,000 | 46,000,000 | 717,000,000 | 0 | 0 | ||||||||||||||||||
Gain (Loss) on Disposition of Assets, Net of Tax | 450,000,000 | 31,000,000 | 481,000,000 | ||||||||||||||||||||
Gain (Loss) on Disposition of Assets, Amount per Share | $0.43 | $0.03 | $0.46 | ||||||||||||||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances | 22,000,000 | 5,000,000 | 57,000,000 | 84,000,000 | -190,000,000 | ||||||||||||||||||
Income Tax Expense (Benefit), Changes in Deferred Tax Liabilities and Deferred Tax Asset Valuation Allowances, Amount Per Share | $0.02 | $0.06 | $0.08 | ||||||||||||||||||||
Income Tax Expense (Benefit) Associated with Changes in Foreign Tax Rates and Certain Tax Elections | -17,000,000 | 54,000,000 | 37,000,000 | ||||||||||||||||||||
Income Tax Expense (Benefit) Associated with Changes in Foreign Tax Rates and Certain Tax Elections, Portion Attributable to Noncontrolling Interest | 11,000,000 | 7,000,000 | 18,000,000 | ||||||||||||||||||||
Income Tax Expense (Benefit) Associated with Changes in Foreign Tax Rates and Certain Tax Elections, Net of Noncontrolling Interest | -28,000,000 | 47,000,000 | 19,000,000 | ||||||||||||||||||||
Income Tax Expense (Benefit) Associated with Changes in Foreign Tax Rates and Certain Tax Elections, Net of Noncontrolling Interest, Per Share | ($0.03) | $0.04 | $0.02 | ||||||||||||||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | -18,000,000 | 17,000,000 | 4,000,000 | 7,000,000 | 5,000,000 | -40,000,000 | 3,000,000 | -28,000,000 | |||||||||||||||
Extinguishment of Debt, Gain (Loss), Per Share, Net of Tax | ($0.02) | $0.02 | $0.01 | $0.01 | ($0.04) | ($0.03) | |||||||||||||||||
Business Combination, Acquisition Related Costs | 4,000,000 | 1,000,000 | 61,000,000 | 14,000,000 | 80,000,000 | ||||||||||||||||||
Business Combination, Acquisition Related Costs, Net of Tax | 3,000,000 | 1,000,000 | 36,000,000 | 10,000,000 | 50,000,000 | ||||||||||||||||||
Business Combination, Acquisition Related Costs, Net of Tax, Amount Per Share | $0.04 | $0.01 | $0.05 | ||||||||||||||||||||
Inventory Write-down | 76,000,000 | 76,000,000 | 76,000,000 | ||||||||||||||||||||
Inventory Write-down, Effect on Net Income | 49,000,000 | 49,000,000 | |||||||||||||||||||||
Inventory Write-down, Amount Per Share | $0.05 | $0.05 | |||||||||||||||||||||
Executive Employment Agreement Costs | 37,000,000 | 37,000,000 | |||||||||||||||||||||
Executive Employment Agreement Costs, Net of Tax | 23,000,000 | 23,000,000 | |||||||||||||||||||||
Executive Employment Agreement Costs, Amount Per Share | $0.02 | $0.02 | |||||||||||||||||||||
Income Tax Expense (Benefit) Adjustments | 16,000,000 | 183,000,000 | 0 | 199,000,000 | [13] | 205,000,000 | [14],[15] | ||||||||||||||||
Income Tax Expense (Benefit) Adjustments, Amount per Share | $0.01 | $0.19 | $0.20 | ||||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 0 | 128,000,000 | 0 | ||||||||||||||||||||
Cerro Verde [Member] | |||||||||||||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||||||||||||
Charges For New Labor Agreements | 36,000,000 | 36,000,000 | |||||||||||||||||||||
Charges For New Labor Agreements Effect On Net Income | 13,000,000 | 13,000,000 | |||||||||||||||||||||
Charges For New Labor Agreements Effect on Diluted Earnings Per Share (in dollars per share) | $0.01 | $0.01 | |||||||||||||||||||||
Crude Oil and Natural Gas Swaps [Member] | |||||||||||||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||||||||||||
Unrealized Gain (Loss) on Hedging Instruments | 497,000,000 | 122,000,000 | -7,000,000 | 15,000,000 | -118,000,000 | -158,000,000 | -36,000,000 | 627,000,000 | -312,000,000 | ||||||||||||||
Unrealized Gain (Loss) on Hedging Instruments, Portion Attributable to Parent | 309,000,000 | 76,000,000 | -4,000,000 | 9,000,000 | -73,000,000 | -98,000,000 | -23,000,000 | 389,000,000 | -194,000,000 | ||||||||||||||
Unrealized Gain (Loss) on Hedging Instruments, Amount Per Share | $0.30 | $0.07 | $0.01 | ($0.07) | ($0.09) | ($0.02) | $0.37 | ($0.19) | |||||||||||||||
McMoRan Exploration Co [Member] | |||||||||||||||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $128,000,000 | $128,000,000 | $128,000,000 | ||||||||||||||||||||
Business Combination, Step Acquisition, Equity Interest In Acquiree Remeasurement Gain, Amount Per Share | $0.13 | $0.13 | |||||||||||||||||||||
[1] | Includes credits (charges) of $15 million ($9 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $(7) million ($(4) million to net income attributable to common stockholders) in the second quarter, $122 million ($76 million to net income attributable to common stockholders or $0.07 per share) in the third quarter, $497 million ($309 million to net loss attributable to common stockholders or $0.30 per share) in the fourth quarter and $627 million ($389 million to net loss attributable to common stockholders or $0.37 per share) for the year for net unrealized and noncash realized gains (losses) on crude oil and natural gas derivative contracts. | ||||||||||||||||||||||
[2] | Includes charges of $36 million ($23 million to net income attributable to common stockholders or $0.02 per share) in the second quarter, $158 million ($98 million to net income attributable to common stockholders or $0.09 per share) in the third quarter, $118 million ($73 million to net income attributable to common stockholders or $0.07 per share) in the fourth quarter and $312 million ($194 million to net income attributable to common stockholders or $0.19 per share) for the year (reflecting the seven-month period from June 1, 2013, to December 31, 2013) for unrealized and noncash realized losses on crude oil and natural gas derivative contracts. | ||||||||||||||||||||||
[3] | Revenues are attributed to countries based on the location of the customer. | ||||||||||||||||||||||
[4] | Includes net gains of $46 million ($31 million to net income attributable to common stockholders or $0.03 per share) in third quarter, $671 million ($450 million to net loss attributable to common stockholders or $0.43 per share) in the fourth quarter and $717 million ($481 million to net loss attributable to common stockholders or $0.46 per share) for the year primarily from the sale of the Candelaria and Ojos del Salado copper mining operations in the fourth quarter (refer to Note 2 for further discussion) and the sale of a metals injection molding plant in the third quarter. | ||||||||||||||||||||||
[5] | Includes a charge of $308 million ($192 million to net income attributable to common stockholders or $0.18 per share) in the third quarter, $3.4 billion ($2.1 billion to net loss attributable to common stockholders or $2.05 per share) in the fourth quarter and $3.7 billion ($2.3 billion to net loss attributable to common stockholders or $2.24 per share) for the year to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. Additionally, the fourth quarter and the year includes a goodwill impairment charge of $1.7 billion ($1.65 per share) for the full carrying value of goodwill. | ||||||||||||||||||||||
[6] | Includes charges of $14 million ($10 million to net income attributable to common stockholders or $0.01 per share) in the first quarter, $61 million ($36 million to net income attributable to common stockholders or $0.04 per share) in the second quarter, $1 million ($1 million to net income attributable to common stockholders) in the third quarter, $4 million ($3 million to net income attributable to common stockholders) in the fourth quarter and $80 million ($50 million to net income attributable to common stockholders or $0.05 per share) for the year for transaction and related costs principally associated with the acquisitions of PXP and MMR. | ||||||||||||||||||||||
[7] | Includes charges in the fourth quarter and for the year of (i) $76 million ($49 million to net income attributable to common stockholders or $0.05 per share) associated with updated mine plans at Morenci that resulted in a loss in recoverable copper in leach stockpiles, (ii) $37 million ($23 million to net income attributable to common stockholders or $0.02 per share) associated with the restructuring of an executive employment arrangement and (iii) $36 million ($13 million to net income attributable to common stockholders or $0.01 per share) associated with a new labor agreement at Cerro Verde. | ||||||||||||||||||||||
[8] | Includes a tax charge of $57 million ($0.06 per share) in the second quarter, $5 million in the third quarter, $22 million ($0.02 per share) in the fourth quarter and $84 million ($0.08 per share) for the year associated with deferred taxes recorded in connection with the allocation of goodwill to the sale of the Eagle Ford properties. Additionally, includes a net tax charge (benefit) of $54 million ($7 million attributable to noncontrolling interests and $47 million to net income attributable to common stockholders or $0.04 per share) in the third quarter, $(17) million ($11 million attributable to noncontrolling interests and $(28) million to net loss attributable to common stockholders or $(0.03) per share) in the fourth quarter and $37 million ($18 million attributable to noncontrolling interests and $19 million to net loss attributable to common stockholders or $0.02 per share) for the year associated with changes in Chilean tax rules, U.S. federal income tax regulations and Peruvian tax rules, partially offset by a tax benefit related to changes in U.S. state income tax filing positions. | ||||||||||||||||||||||
[9] | Includes net gains (losses) on early extinguishment of debt totaling $4 million in the second quarter, $17 million ($0.02 per share) in the third quarter, $(18) million ($(0.02) per share) in the fourth quarter and $3 million for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||||
[10] | Includes a net tax benefit of $183 million ($0.19 per share) in the second quarter, $16 million ($0.01 per share) in the fourth quarter and $199 million ($0.20 per share) for the year associated with net reductions in FCX's deferred tax liabilities and deferred tax asset valuation allowances related to the acquisitions of PXP and MMR. | ||||||||||||||||||||||
[11] | Includes net (losses) gains on early extinguishment of debt totaling $(40) million ($(0.04) per share) in the first quarter, $5 million ($0.01 per share) in the second quarter for an adjustment related to taxes on the first quarter losses, $7 million ($0.01 per share) in the fourth quarter and $(28) million ($(0.03) per share) for the year. Refer to Note 8 for further discussion. | ||||||||||||||||||||||
[12] | Includes a gain of $128 million ($0.13 per share) in the second quarter and for the year related to FCX's preferred stock investment in and the subsequent acquisition of MMR. Refer to Note 2 for further discussion. | ||||||||||||||||||||||
[13] | As a result of the oil and gas acquisitions, FCX recognized a net tax benefit of $199 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances, $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock and $16 million associated with the revaluation of state deferred tax liabilities, partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities. | ||||||||||||||||||||||
[14] | Cerro Verde previously recorded deferred Peruvian income tax liabilities for income taxes that would become payable if the reinvested profits used to fund the initial Cerro Verde sulfide expansion were distributed prior to the expiration of Cerro Verde's 1998 stability agreement on December 31, 2013. Because reinvested profits at Cerro Verde were not expected to be distributed prior to December 31, 2013, a net deferred income tax liability of $234 million was reversed and recognized as an income tax benefit in 2012. | ||||||||||||||||||||||
[15] | In 2012, Cerro Verde signed a new 15-year mining stability agreement with the Peruvian government, which became effective January 1, 2014. In connection with the new mining stability agreement, Cerro Verde's income tax rate increased from 30 percent to 32 percent, and FCX recognized additional deferred tax expense of $29 million. |
SUPPLEMENTARY_MINERAL_RESERVE_2
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Details) | Dec. 31, 2014 |
lb | |
Supplementary Mineral Reserve Information [Abstract] | |
Long-term average price for copper used to estimate recoverable reserves (in dollars per pound) | 2 |
Long-term average price for gold used to estimate recoverable reserves (in dollars per ounce) | 1,000 |
Long-term average price for molybdenum used to estimate recoverable reserves (in dollars per pound) | 10 |
Long-term average price for silver used to estimate recoverable reserves (in dollars per ounce) | 15 |
Long-term average price for cobalt used to estimate recoverable reserves (in dollars per pound) | 10 |
Three-year average London spot price for copper (per pound) | 3.35 |
Three-year average London spot price for gold (per ounce) | 1,449 |
Three-year average price for molybdenum (per pound) | 11.5 |
Estimated recoverable proven and probable copper reserves in leach stockpiles (in pounds) | 3,600,000,000 |
Estimated recoverable proven and probable copper reserves in mill stockpiles (in pounds) | 900,000,000 |
SUPPLEMENTARY_MINERAL_RESERVE_3
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Recoverable Reserves) (Details) | Dec. 31, 2014 | |
lb | ||
Copper (pounds) [Member] | North America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 35,600,000,000 | [1] |
Copper (pounds) [Member] | South America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 31,800,000,000 | [1] |
Copper (pounds) [Member] | Indonesia [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 29,000,000,000 | [1] |
Copper (pounds) [Member] | Africa [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 7,100,000,000 | [1] |
Gold (ounces) [Member] | North America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 300,000 | |
Gold (ounces) [Member] | South America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Gold (ounces) [Member] | Indonesia [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 28,200,000 | |
Gold (ounces) [Member] | Africa [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Molybdenum (pounds) [Member] | North America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,420,000,000 | |
Molybdenum (pounds) [Member] | South America [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 690,000,000 | |
Molybdenum (pounds) [Member] | Indonesia [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Molybdenum (pounds) [Member] | Africa [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Consolidated Basis [Member] | Copper (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 103,500,000,000 | [1],[2] |
Consolidated Basis [Member] | Gold (ounces) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 28,500,000 | [2] |
Consolidated Basis [Member] | Molybdenum (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 3,110,000,000 | [2] |
Consolidated Basis [Member] | Cobalt (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 850,000,000 | |
Consolidated Basis [Member] | Silver (ounces) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 282,900,000 | |
Net Equity Interest [Member] | Copper (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 82,800,000,000 | [1],[3] |
Net Equity Interest [Member] | Gold (ounces) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 25,900,000 | [3] |
Net Equity Interest [Member] | Molybdenum (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,790,000,000 | [3] |
Net Equity Interest [Member] | Cobalt (pounds) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 470,000,000 | |
Net Equity Interest [Member] | Silver (ounces) [Member] | ||
Estimated Recoverable Proven and Probable Reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 232,400,000 | |
[1] | Consolidated recoverable copper reserves included 3.6 billion pounds in leach stockpiles and 0.9 billion pounds in mill stockpiles. | |
[2] | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.85 billion pounds of cobalt at Tenke and 282.9 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver. | |
[3] | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 232.4 million ounces of silver in Indonesia, South America and North America. |
SUPPLEMENTARY_MINERAL_RESERVE_4
SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) (Ore Reserves) (Details) | Dec. 31, 2014 | |
MT | ||
Total 100% basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 15,316,000,000 | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Morenci [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 3,923,000,000 | [1] |
Average ore grade of copper per metric ton | 0.27% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1],[2] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Bagdad [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 1,334,000,000 | [1] |
Average ore grade of copper per metric ton | 0.32% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1],[2] |
Average ore grade of molybdenum per metric ton | 0.02% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Safford [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 122,000,000 | [1] |
Average ore grade of copper per metric ton | 0.47% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Sierrita [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 2,464,000,000 | [1] |
Average ore grade of copper per metric ton | 0.23% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1],[2] |
Average ore grade of molybdenum per metric ton | 0.02% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tyrone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 59,000,000 | [1] |
Average ore grade of copper per metric ton | 0.32% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Chino [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 301,000,000 | [1] |
Average ore grade of copper per metric ton | 0.39% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0.02 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1],[2] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Miami [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 3,000,000 | [1] |
Average ore grade of copper per metric ton | 0.58% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Henderson [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 90,000,000 | [1] |
Average ore grade of copper per metric ton | 0.00% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.17% | [1] |
North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Climax [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 185,000,000 | [1] |
Average ore grade of copper per metric ton | 0.00% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.16% | [1] |
North America [Member] | Total 100% basis [Member] | Undeveloped [Member] | Cobre [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 71,000,000 | [1] |
Average ore grade of copper per metric ton | 0.37% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Cerro Verde [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 3,953,000,000 | [1] |
Average ore grade of copper per metric ton | 0.37% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.01% | [1] |
South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | El Abra [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 444,000,000 | [1] |
Average ore grade of copper per metric ton | 0.46% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Grasberg open pit [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 179,000,000 | [1] |
Average ore grade of copper per metric ton | 0.96% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 1.06 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Deep Ore Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 146,000,000 | [1] |
Average ore grade of copper per metric ton | 0.54% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0.69 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Big Gossan [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 54,000,000 | [1] |
Average ore grade of copper per metric ton | 2.26% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0.99 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Grasberg block cave [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 1,012,000,000 | [1] |
Average ore grade of copper per metric ton | 1.00% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0.77 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Kucing Liar [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 406,000,000 | [1] |
Average ore grade of copper per metric ton | 1.25% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 1.07 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Deep Mill Level Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 472,000,000 | [1] |
Average ore grade of copper per metric ton | 0.87% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0.71 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Africa [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tenke Fungurume [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Amount of ore reserves (in metric tons of ore) | 98,000,000 | [1] |
Average ore grade of copper per metric ton | 3.27% | [1] |
Average ore grade of gold per metric ton (in grams per metric ton) | 0 | [1] |
Average ore grade of molybdenum per metric ton | 0.00% | [1] |
Copper (pounds) [Member] | Total 100% basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 120,100,000,000 | [3] |
Copper (pounds) [Member] | Consolidated Basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 103,500,000,000 | [4],[5] |
Copper (pounds) [Member] | Net Equity Interest [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 82,800,000,000 | [4],[6] |
Copper (pounds) [Member] | North America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 35,600,000,000 | [4] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Morenci [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 15,100,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Bagdad [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 7,800,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Safford [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 1,100,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Sierrita [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 10,800,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tyrone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 400,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Chino [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,200,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Miami [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 100,000,000 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Henderson [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Climax [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Copper (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Undeveloped [Member] | Cobre [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 300,000,000 | [3] |
Copper (pounds) [Member] | South America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 31,800,000,000 | [4] |
Copper (pounds) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Cerro Verde [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 28,900,000,000 | [3] |
Copper (pounds) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | El Abra [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,900,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 29,000,000,000 | [4] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Grasberg open pit [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 3,200,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Deep Ore Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 1,500,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Big Gossan [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,400,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Grasberg block cave [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 18,900,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Kucing Liar [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 9,500,000,000 | [3] |
Copper (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Deep Mill Level Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 7,900,000,000 | [3] |
Copper (pounds) [Member] | Africa [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 7,100,000,000 | [4] |
Copper (pounds) [Member] | Africa [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tenke Fungurume [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 7,100,000,000 | [3] |
Gold (ounces) [Member] | Total 100% basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 40,000,000 | [3] |
Gold (ounces) [Member] | Consolidated Basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 28,500,000 | [5] |
Gold (ounces) [Member] | Net Equity Interest [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 25,900,000 | [6] |
Gold (ounces) [Member] | North America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 300,000 | |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Morenci [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Bagdad [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 100,000 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Safford [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Sierrita [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 100,000 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tyrone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Chino [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 100,000 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Miami [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Henderson [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Climax [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | North America [Member] | Total 100% basis [Member] | Undeveloped [Member] | Cobre [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | South America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Gold (ounces) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Cerro Verde [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | El Abra [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 28,200,000 | |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Grasberg open pit [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 4,900,000 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Deep Ore Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,500,000 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Big Gossan [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 1,100,000 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Grasberg block cave [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 16,300,000 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Kucing Liar [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 6,300,000 | [3] |
Gold (ounces) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Deep Mill Level Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 8,600,000 | [3] |
Gold (ounces) [Member] | Africa [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Gold (ounces) [Member] | Africa [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tenke Fungurume [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Total 100% basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 3,130,000,000 | [3] |
Molybdenum (pounds) [Member] | Consolidated Basis [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 3,110,000,000 | [5] |
Molybdenum (pounds) [Member] | Net Equity Interest [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,790,000,000 | [6] |
Molybdenum (pounds) [Member] | North America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 2,420,000,000 | |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Morenci [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 170,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Bagdad [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 380,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Safford [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Sierrita [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 1,010,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tyrone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Chino [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 10,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Miami [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Henderson [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 280,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Climax [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 590,000,000 | [3] |
Molybdenum (pounds) [Member] | North America [Member] | Total 100% basis [Member] | Undeveloped [Member] | Cobre [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | South America [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 690,000,000 | |
Molybdenum (pounds) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | Cerro Verde [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 690,000,000 | [3] |
Molybdenum (pounds) [Member] | South America [Member] | Total 100% basis [Member] | Developed and producing [Member] | El Abra [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Grasberg open pit [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Deep Ore Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Developed and producing [Member] | Big Gossan [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Grasberg block cave [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Kucing Liar [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Indonesia [Member] | Total 100% basis [Member] | Undeveloped [Member] | Deep Mill Level Zone [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
Molybdenum (pounds) [Member] | Africa [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | |
Molybdenum (pounds) [Member] | Africa [Member] | Total 100% basis [Member] | Developed and producing [Member] | Tenke Fungurume [Member] | ||
Ore, average ore grades and recoverable proven and probable reserves [Line Items] | ||
Estimated Recoverable Proven And Probable Reserves | 0 | [3] |
[1] | Excludes material contained in stockpiles. | |
[2] | Amounts not shown because of rounding. | |
[3] | Includes estimated recoverable metals contained in stockpiles. | |
[4] | Consolidated recoverable copper reserves included 3.6 billion pounds in leach stockpiles and 0.9 billion pounds in mill stockpiles. | |
[5] | Consolidated reserves represent estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.85 billion pounds of cobalt at Tenke and 282.9 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver. | |
[6] | Net equity interest reserves represent estimated consolidated metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 232.4 million ounces of silver in Indonesia, South America and North America. |
SUPPLEMENTARY_OIL_AND_GAS_INFO2
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Feb. 20, 2015 | |
California [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Total Reserve Volumes Subject to Reference Price Differential Quality Adjustments, Percentage | 39.00% | |
Gulf of Mexico [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Total Reserve Volumes Subject to Reference Price Differential Quality Adjustments, Percentage | 35.00% | |
Natural Gas [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Average Sales Prices | 4.35 | |
Crude Oil [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Average Sales Prices | 94.99 | |
Subsequent Event [Member] | Natural Gas [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Average Sales Prices | 4.04 | |
Subsequent Event [Member] | Crude Oil [Member] | ||
Oil and Gas In Process Activities [Line Items] | ||
Average Sales Prices | 87.12 |
SUPPLEMENTARY_OIL_AND_GAS_INFO3
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Costs Incurred) (Details) (USD $) | 7 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||||||
Liabilities assumed in the acquisitions of PXP and MMR | $0 | [1] | $1,028,000,000 | [1] | $0 | [1] | |||
Property acquisition costs: | |||||||||
Proved properties | 12,205,000,000 | [2],[3] | 463,000,000 | ||||||
Unproved properties | 11,259,000,000 | [3],[4] | 1,460,000,000 | ||||||
Exploration costs | 502,000,000 | [3] | 1,482,000,000 | ||||||
Development costs | 854,000,000 | [3] | 1,270,000,000 | ||||||
Total | 24,820,000,000 | [3] | 4,675,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Oil and Gas Properties, Subject to Depletion | 12,200,000,000 | 12,200,000,000 | 12,198,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Oil and Gas Properties, Not Subject to Depletion | 11,100,000,000 | 11,100,000,000 | 11,112,000,000 | ||||||
Oil and Gas Operations Segment [Member] | |||||||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||||||
Capitalized Costs, Asset Retirement Costs | 1,100,000,000 | -27,000,000 | 1,100,000,000 | ||||||
General and Administrative Costs Capitalized | 143,000,000 | 67,000,000 | |||||||
Interest Costs Capitalized | $88,000,000 | $69,000,000 | |||||||
[1] | The fair value of AROs assumed in the acquisitions of PXP and MMR ($741 million and $287 million, respectively) were estimated based on projected cash flows, an estimated long-term annual inflation rate of 2.5 percent, and discount rates based on FCX's estimated credit-adjusted, risk-free interest rates ranging from 1.3 percent to 6.3 percent. | ||||||||
[2] | Includes $12.2 billion from the acquisitions of PXP and MMR. | ||||||||
[3] | Includes the results of FM O&G beginning June 1, 2013. | ||||||||
[4] | Includes $11.1 billion from the acquisitions of PXP and MMR. |
SUPPLEMENTARY_OIL_AND_GAS_INFO4
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Capitalized Costs) (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Supplementary Oil and Gas Information [Abstract] | ||||||||
Properties subject to amortization | $16,547 | $13,829 | $16,547 | $13,829 | ||||
Accumulated amortization | -7,360 | [1] | -1,357 | -7,360 | [1] | -1,357 | ||
Total | 9,187 | 12,472 | 9,187 | 12,472 | ||||
Impairment of Oil and Gas Properties | $3,400 | $308 | $0 | $3,737 | $0 | $0 | ||
Average Depletion Depreciation and Amortization Expense Per Unit of Production | 35.54 | 39.74 | ||||||
[1] | Includes charges of $3.7 billion to reduce the carrying value of oil and gas properties pursuant to full cost accounting rules. |
SUPPLEMENTARY_OIL_AND_GAS_INFO5
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Costs Not Subject to Amortization) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Capitalized Costs of Unproved Properties Excluded from Amortization, Period Cost | $2,021,000,000 | $8,066,000,000 |
Total | 10,087,000,000 | |
Costs Not Subject to Amortization to be Transferred, Percentage | 48.00% | |
Majority of Costs Not Subject to Amortization to be Transferred, Period | 5 years | |
Net Undeveloped Acreage Covered by Expiring Leases, Percentage | 35.00% | |
Haynesville [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Acreage Held by Production or Held by Operations, Percentage | 95.00% | |
Onshore [Member] | U.S. [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Acquisition costs | 2,303,000,000 | |
Acquisition Costs, Period Cost | 18,000,000 | 2,285,000,000 |
Exploration costs | 121,000,000 | |
Exploration Costs, Period Cost | 119,000,000 | 2,000,000 |
Capitalized interest | 27,000,000 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Period Cost | 22,000,000 | 5,000,000 |
Offshore [Member] | U.S. [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Acquisition costs | 7,094,000,000 | |
Acquisition Costs, Period Cost | 1,413,000,000 | 5,681,000,000 |
Exploration costs | 429,000,000 | |
Exploration Costs, Period Cost | 387,000,000 | 42,000,000 |
Capitalized interest | 75,000,000 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Period Cost | 39,000,000 | 36,000,000 |
Offshore [Member] | International [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Acquisition costs | 15,000,000 | |
Acquisition Costs, Period Cost | 0 | 15,000,000 |
Exploration costs | 23,000,000 | |
Exploration Costs, Period Cost | 23,000,000 | 0 |
Capitalized interest | 0 | |
Capitalized Costs of Unproved Properties Excluded from Amortization, Period Cost | $0 | $0 |
Minimum [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Remainder of Costs Not Subject to Amortization to be Transferred, Period | 7 years | |
Maximum [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Remainder of Costs Not Subject to Amortization to be Transferred, Period | 10 years |
SUPPLEMENTARY_OIL_AND_GAS_INFO6
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Results of Operations for Oil and Gas Producing Activities) (Details) (USD $) | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Oil and Gas Information [Abstract] | ||||||
Revenues from oil and gas producing activities | $2,616 | $4,710 | ||||
Production and delivery costs | -682 | -1,237 | ||||
Depreciation, depletion and amortization | -1,358 | -2,265 | ||||
Impairment of oil and gas properties | -3,400 | -308 | 0 | -3,737 | 0 | 0 |
Income tax benefit (expense) (based on FCX's statutory tax rate) | -219 | 958 | ||||
Results of operations from oil and gas producing activities | $357 | ($1,571) |
SUPPLEMENTARY_OIL_AND_GAS_INFO7
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Estimated Quantities of Oil and Natural Gas Reserves) (Details) | 7 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | ||||
Boe | Boe | Boe | ||||
Proved reserves: | ||||||
Balance at beginning of period (BOE) | 464,000,000 | [1] | 0 | [1] | ||
Extension and discoveries (BOE) | 24,000,000 | [1] | 16,000,000 | [1] | ||
Acquisitions of reserves in-place (BOE) | 472,000,000 | [1] | 16,000,000 | [1] | ||
Revisions of previous estimates (BOE) | 7,000,000 | [1] | 13,000,000 | [1] | ||
Sales of reserves in place (BOE) | -1,000,000 | [1] | -62,000,000 | [1] | ||
Production (BOE) | -38,000,000 | [1] | -57,000,000 | [1] | ||
Balance at end of period (BOE) | 464,000,000 | [1] | 390,000,000 | [1] | 0 | [1] |
Proved developed reserves (BOE) | 307,000,000 | [1] | 246,000,000 | [1] | ||
Proved undeveloped reserves (BOE) | 157,000,000 | [1] | 144,000,000 | [1] | ||
Eagle Ford [Member] | ||||||
Proved reserves: | ||||||
Extension and discoveries (BOE) | 16,000,000 | |||||
Gulf of Mexico [Member] | ||||||
Proved reserves: | ||||||
Extension and discoveries (BOE) | 5,000,000 | 8,000,000 | ||||
Haynesville [Member] | ||||||
Proved reserves: | ||||||
Extension and discoveries (BOE) | 5,000,000 | |||||
Natural Gas Liquids [Member] | ||||||
Proved reserves: | ||||||
Balance at end of year | 20,000,000 | 10,000,000 | ||||
Proved developed reserves | 14,000,000 | 7,000,000 | ||||
Proved undeveloped reserves | 6,000,000 | 3,000,000 | ||||
Oil [Member] | ||||||
Proved reserves: | ||||||
Balance at beginning of year | 370,000,000 | [1],[2] | 0 | [1],[2] | ||
Extensions and discoveries | 20,000,000 | [1],[2] | 10,000,000 | [1],[2] | ||
Acquisitions of reserves in-place | 368,000,000 | [1],[2] | 14,000,000 | [1],[2] | ||
Revisions of previous estimates | 11,000,000 | [1],[2] | -10,000,000 | [1],[2] | ||
Sale of reserves in-place | 0 | [1],[2] | -53,000,000 | [1],[2] | ||
Production | -29,000,000 | [1],[2] | -43,000,000 | [1],[2] | ||
Balance at end of year | 370,000,000 | [1],[2] | 288,000,000 | [1],[2] | 0 | [1],[2] |
Proved developed reserves | 236,000,000 | [1],[2] | 184,000,000 | [1],[2] | ||
Proved undeveloped reserves | 134,000,000 | [1],[2] | 104,000,000 | [1],[2] | ||
Natural Gas [Member] | ||||||
Proved reserves: | ||||||
Balance at beginning of year | 562,000,000,000 | [1] | 0 | [1] | ||
Extensions and discoveries | 20,000,000,000 | [1] | 35,000,000,000 | [1] | ||
Acquisitions of reserves in-place | 626,000,000,000 | [1] | 9,000,000,000 | [1] | ||
Revisions of previous estimates | -26,000,000,000 | [1] | 140,000,000,000 | [1] | ||
Sale of reserves in-place | -3,000,000,000 | [1] | -54,000,000,000 | [1] | ||
Production | -55,000,000,000 | [1] | -82,000,000,000 | [1] | ||
Balance at end of year | 562,000,000,000 | [1] | 610,000,000,000 | [1] | 0 | [1] |
Proved developed reserves | 423,000,000,000 | [1] | 369,000,000,000 | [1] | ||
Proved undeveloped reserves | 139,000,000,000 | [1] | 241,000,000,000 | [1] | ||
[1] | MMBbls =illion barrels; Bcf =illion cubic feet; MMBOE =illion BOE | |||||
[2] | Includes 10 MMBbls of NGL proved reserves (7 MMBbls of developed and 3 MMBbls of undeveloped) at December 31, 2014, and 20 MMBbls of NGL proved reserves (14 MMBbls of developed and 6 MMBbls of undeveloped) at December 31, 2013. |
SUPPLEMENTARY_OIL_AND_GAS_INFO8
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Standardized Measure of Future Net Cash Flows) (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Fair Value Inputs, Discount Rate | 10.00% | ||||||
Future cash inflows | $29,504 | $38,901 | |||||
Future production expense | -10,991 | -12,774 | |||||
Future development costs | -6,448 | [1] | -6,480 | [1] | |||
Future income tax expense | -2,487 | -4,935 | |||||
Future net cash flows | 9,578 | 14,712 | |||||
Discounted at 10% per year | -3,157 | -5,295 | |||||
Standardized Measure | 6,421 | 9,417 | [2] | 0 | [2] | ||
Asset Retirement Obligation | 2,769 | 2,328 | 1,146 | 921 | |||
Oil and Gas Operations Segment [Member] | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Asset Retirement Obligation | $1,800 | $1,800 | |||||
Crude Oil and NGL [Member] | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Realized Sales Prices Used in Reserve Reports | 93.2 | ||||||
Natural Gas [Member] | |||||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||||||
Realized Sales Prices Used in Reserve Reports | 4.35 | ||||||
[1] | Includes estimated asset retirement costs of $1.8 billion at December 31, 2014 and 2013. | ||||||
[2] | Includes the results of FM O&G beginning June 1, 2013. |
SUPPLEMENTARY_OIL_AND_GAS_INFO9
SUPPLEMENTARY OIL AND GAS INFORMATION (UNAUDITED) (Schedule of Changes in the Standardized Measure) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Supplemental Oil and Gas Information [Abstract] | ||||
Balance at beginning of year | $9,417 | [1] | $0 | [1] |
Reserves acquired in the acquisitions of PXP and MMR | 0 | 14,467 | [1] | |
Sales, net of production expenses | -3,062 | -2,296 | [1] | |
Net changes in sales and transfer prices, net of production expenses | -2,875 | -459 | [1] | |
Extensions, discoveries and improved recoveries | 194 | 752 | [1] | |
Changes in estimated future development costs | -498 | -1,190 | [1] | |
Previously estimated development costs incurred during the year | 982 | 578 | [1] | |
Sales of reserves in-place | -1,323 | -12 | [1] | |
Other purchases of reserves in-place | 487 | 0 | [1] | |
Revisions of quantity estimates | 399 | 102 | [1] | |
Accretion of discount | 1,195 | 701 | [1] | |
Net change in income taxes | 1,505 | -3,226 | [1] | |
Total changes | -2,996 | 9,417 | [1] | |
Balance at end of year | $6,421 | $9,417 | [1] | |
[1] | Includes the results of FM O&G beginning June 1, 2013. |
SCHEDULE_II_VALUATION_AND_QUAL2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Valuation allowance for deferred tax assets | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | $2,487 | $2,443 | $2,393 | |||
Additions Charged to Cost and Expense | -53 | 44 | 49 | |||
Additons Charged to Other Accounts | 0 | 0 | 1 | |||
Other Additions (Deductions) | 0 | 0 | 0 | |||
Balance at End of Year | 2,434 | 2,487 | 2,443 | |||
Reserves for non-income taxes | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | 78 | 80 | 73 | |||
Additions Charged to Cost and Expense | 16 | 35 | 21 | |||
Additons Charged to Other Accounts | 0 | -1 | -2 | |||
Other Additions (Deductions) | -1 | [1] | -36 | [1] | -12 | [1] |
Balance at End of Year | $93 | $78 | $80 | |||
[1] | Represents amounts paid or adjustments to reserves based on revised estimates. |