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Financial Instruments (Unaudited) (Tables) | 3 Months Ended
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Mar. 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 follows (in millions):
| Three Months Ended |
| March 31, |
| 2014 |  | 2013 |
Copper futures and swap contracts: |  |  |  |
Unrealized (losses) gains: |  |  |  |
Derivative financial instruments | $ | (12 | ) |  | $ | (12 | ) |
Hedged item – firm sales commitments | 12 |  |  | 12 |  |
Realized losses: |  |  |  |
Matured derivative financial instruments | (2 | ) |  | (2 | ) |
Schedule of Derivative Instruments | A summary of FCX’s embedded commodity derivatives at March 31, 2014, follows:
| Open Positions |  | Average Price Per Unit |  | Maturities Through
|  | Contract |  | Market |
Embedded derivatives in provisional sales contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 487 |  |  | $ | 3.21 |  |  | $ | 3.01 |  |  | August 2014
Gold (thousands of ounces) | 55 |  |  | 1,314 |  |  | 1,293 |  |  | June 2014
Embedded derivatives in provisional purchase contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 66 |  |  | 3.15 |  |  | 3.02 |  |  | July 2014
At March 31, 2014, the outstanding crude oil option contracts, all of which settle monthly, follow:
|  |  |  |  |  | Average Strike Price (per barrel)a |  |  |  |
Period |  | Instrument Type |  | Daily Volumes (thousand barrels) |  | Floor |  | Floor Limit |  | Average Deferred Premium (per barrel) |  | Index
2014 |  |  |  |  |  |  |  |  |  |  |  |
Apr - Dec |  | Put options b |  | 75 |  |  | $ | 90 |  |  | $ | 70 |  |  | $ | 5.74 |  |  | Brent
Apr - Dec |  | Put options b |  | 30 |  |  | 95 |  |  | 75 |  |  | 6.09 |  |  | Brent
Apr - Dec |  | Put options b |  | 5 |  |  | 100 |  |  | 80 |  |  | 7.11 |  |  | Brent
2015 |  |  |  |  |  |  |  |  |  |  |  |
Jan - Dec |  | Put options b |  | 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.
Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions | A summary of the realized and unrealized gains (losses) 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, follows (in millions):
| Three Months Ended |
| March 31, |
| 2014 |  | 2013 |
Embedded derivatives in provisional copper and gold |  |  |  |
sales contracts a | $ | (169 | ) |  | $ | (83 | ) |
Crude oil options a | (36 | ) |  | — |  |
Natural gas swaps a | (14 | ) |  | — |  |
Copper forward contracts b | 1 |  |  | 3 |  |
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 (in millions):
|  | March 31, 2014 |  | December 31, 2013
Commodity Derivative Assets: |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |
Copper futures and swap contracts:a |  | $ | 2 |  |  | $ | 6 |
Derivatives not designated as hedging instruments: |  |  |  |
Embedded derivatives in provisional copper and gold |  |  |  |
sales/purchase contracts |  | 13 |  |  | 63 |
Total derivative assets |  | $ | 15 |  |  | $ | 69 |
Commodity Derivative Liabilities: |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |
Copper futures and swap contracts a |  | $ | 8 |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |
Embedded derivatives in provisional copper and gold |  |  |  |
sales/purchase contracts |  | 99 |  |  | 16 |
Crude oil options b |  | 288 |  |  | 309 |
Natural gas swaps |  | 10 |  |  | 4 |
Copper forward contracts |  | — |  |  | 1 |
Total derivative liabilities |  | $ | 405 |  |  | $ | 330 |
a. | FCX paid $11 million to brokers at March 31, 2014, and $1 million at December 31, 2013, for margin requirements (recorded in other current assets).
b. | Included $387 million at March 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 (in millions):
|  | Assets |  | Liabilities
|  | March 31, 2014 |  | December 31, 2013 |  | March 31, 2014 |  | December 31, 2013
Gross amounts recognized: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives on provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | $ | 13 |  |  | $ | 63 |  |  | $ | 99 |  |  | $ | 16 |
Crude oil and natural gas derivatives |  | — |  |  | — |  |  | 298 |  |  | 313 |
Copper derivatives |  | 2 |  |  | 6 |  |  | 8 |  |  | 1 |
|  | 15 |  |  | 69 |  |  | 405 |  |  | 330 |
Less gross amounts of offset: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives on provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 2 |  |  | 10 |  |  | 2 |  |  | 10 |
Crude oil and natural gas derivatives |  | — |  |  | — |  |  | — |  |  | — |
Copper derivatives |  | 2 |  |  | — |  |  | 2 |  |  | — |
|  | 4 |  |  | 10 |  |  | 4 |  |  | 10 |
Net amounts presented in balance sheet: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives on provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 11 |  |  | 53 |  |  | 97 |  |  | 6 |
Crude oil and natural gas derivatives |  | — |  |  | — |  |  | 298 |  |  | 313 |
Copper derivatives |  | — |  |  | 6 |  |  | 6 |  |  | 1 |
|  | $ | 11 |  |  | $ | 59 |  |  | $ | 401 |  |  | $ | 320 |
Balance sheet classification: |  |  |  |  |  |  |  |
Trade accounts receivable |  | $ | 7 |  |  | $ | 53 |  |  | $ | — |  |  | $ | — |
Other current assets |  | — |  |  | 6 |  |  | — |  |  | — |
Accounts payable and accrued liabilities |  | 4 |  |  | — |  |  | 302 |  |  | 205 |
Other liabilities |  | — |  |  | — |  |  | 99 |  |  | 115 |
|  | $ | 11 |  |  | $ | 59 |  |  | $ | 401 |  |  | $ | 320 |

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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- Definition Tabular disclosure of gains and losses on derivative instruments included in an entity's trading activities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 55 -Paragraph 184 -URI http://asc.fasb.org/extlink&oid=28362867&loc=SL5634876-113961 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4F -Subparagraph (a),(b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624186-113959 + Details
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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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