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FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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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 contracts a | $ | (289 | ) |  | $ | (136 | ) |  | $ | 77 |
Crude oil options and swaps a | 513 |  |  | (344 | ) |  | — |
Natural gas swaps a | (8 | ) |  | 10 |  | — |  | — |
Copper forward contracts b | (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 contracts a | $ | — |  |  | $ | 6 |
Derivatives not designated as hedging instruments: |  |  |
Embedded derivatives in provisional copper and gold |  |  |  |  |
sales/purchase contracts | 15 |  |  | 63 |
Crude oil options b | 316 |  |  | — |
Total derivative assets | $ | 331 |  |  | $ | 69 |
Commodity Derivative Liabilities: |  |  |
Derivatives designated as hedging instruments: |  |  |
Copper futures and swap contracts a | $ | 7 |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |
Embedded derivatives in provisional copper and gold |  |  |
sales/purchase contracts | 93 |  |  | 16 |
Crude oil options b | — |  |  | 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 derivatives a |  | 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 derivatives a |  | 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 (per barrel) |  | Index
2015 |  |  |  |  |  |  |  |  |  |  |  |
January - December |  | 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.
A summary of FCX’s embedded derivatives at December 31, 2014, follows:
| Open |  | Average Price Per Unit |  | Maturities
| Positions |  | Contract |  | Market |  | Through
Embedded derivatives in provisional sales contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 574 |  |  | $ | 3.02 |  |  | $ | 2.86 |  |  | May 2015
Gold (thousands of ounces) | 178 |  |  | 1,207 |  |  | 1,200 |  |  | April 2015
Embedded derivatives in provisional purchase contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 101 |  |  | 3.01 |  |  | 2.87 |  |  | April 2015

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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=35706170&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=35706170&loc=SL5624171-113959 + 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=35706170&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=35706170&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=35706170&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=35706170&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=35706170&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=35706170&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=35706170&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=35706170&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=35706170&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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