XML 124 R42.htm IDEA: XBRL DOCUMENT
v3.6.0.2

FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [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:
| 2016 |  | 2015 |  | 2014
Copper futures and swap contracts: |  |  |  |  |
Unrealized gains (losses): |  |  |  |  |
Derivative financial instruments | $ | 16 |  |  | $ | (3 | ) |  | $ | (12 | )
Hedged item – firm sales commitments | (16 | ) |  | 3 |  |  | 12 |
Realized gains (losses): |  |  |  |  |
Matured derivative financial instruments | 1 |  |  | (34 | ) |  | (9 | )
Schedule of Derivative Instruments | A summary of FCX’s embedded derivatives at December 31, 2016, follows:
| Open |  | Average Price Per Unit |  | Maturities
| Positions |  | Contract |  | Market |  | Through
Embedded derivatives in provisional sales contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 698 |  |  | $ | 2.36 |  |  | $ | 2.51 |  |  | June 2017
Gold (thousands of ounces) | 207 |  |  | 1,195 |  |  | 1,161 |  |  | March 2017
Embedded derivatives in provisional purchase contracts: |  |  |  |  |  |  |
Copper (millions of pounds) | 140 |  |  | 2.37 |  |  | 2.51 |  |  | April 2017
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 operating loss for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, for the years ended December 31 follows:
| 2016 |  | 2015 |  | 2014
Embedded derivatives in provisional copper and gold |  |  |  |  |
sales contractsa | $ | 266 |  |  | $ | (406 | ) |  | $ | (280 | )
Crude oil options and swapsa | (35 | ) |  | 87 |  |  | 513 |
Natural gas swapsa | — |  |  | — |  | — |  | (8 | )
Copper forward contractsb | 5 |  |  | (15 | ) |  | (4 | )
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,
| 2016 |  | 2015
Commodity Derivative Assets: |  |  |
Derivatives designated as hedging instruments: |  |  |
Copper futures and swap contracts | $ | 9 |  |  | $ | 1 |
Derivatives not designated as hedging instruments: |  |  |
Embedded derivatives in provisional copper and gold |  |  |  |  |
sales/purchase contracts | 137 |  |  | 19 |
Total derivative assets | $ | 146 |  |  | $ | 20 |
Commodity Derivative Liabilities: |  |  |
Derivatives designated as hedging instruments: |  |  |
Copper futures and swap contracts | $ | 2 |  |  | $ | 11 |
Derivatives not designated as hedging instruments: |  |  |
Embedded derivatives in provisional copper and gold |  |  |
sales/purchase contracts | 56 |  |  | 81 |
Total derivative liabilities | $ | 58 |  |  | $ | 92 |
Offsetting Liabilities [Table Text Block] | A summary of these unsettled commodity contracts that are offset in the balance sheet follows:
|  | Assets at December 31, |  | Liabilities at December 31,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Gross amounts recognized: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | $ | 137 |  |  | $ | 19 |  |  | $ | 56 |  |  | $ | 81 |
Copper derivatives |  | 9 |  |  | 1 |  |  | 2 |  |  | 11 |
|  | 146 |  |  | 20 |  |  | 58 |  |  | 92 |
Less gross amounts of offset: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 12 |  |  | 5 |  |  | 12 |  |  | 5 |
Copper derivatives |  | 2 |  |  | 1 |  |  | 2 |  |  | 1 |
|  | 14 |  |  | 6 |  |  | 14 |  |  | 6 |
Net amounts presented in balance sheet: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 125 |  |  | 14 |  |  | 44 |  |  | 76 |
Copper derivatives |  | 7 |  |  | — |  |  | — |  |  | 10 |
|  | $ | 132 |  |  | $ | 14 |  |  | $ | 44 |  |  | $ | 86 |
Balance sheet classification: |  |  |  |  |  |  |  |
Trade accounts receivable |  | $ | 119 |  |  | $ | 9 |  |  | $ | 13 |  |  | $ | 51 |
Other current assets |  | 7 |  |  | — |  |  | — |  |  | — |
Accounts payable and accrued liabilities |  | 6 |  |  | 5 |  |  | 31 |  |  | 35 |
|  | $ | 132 |  |  | $ | 14 |  |  | $ | 44 |  |  | $ | 86 |
Offsetting Assets [Table Text Block] | A summary of these unsettled commodity contracts that are offset in the balance sheet follows:
|  | Assets at December 31, |  | Liabilities at December 31,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Gross amounts recognized: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | $ | 137 |  |  | $ | 19 |  |  | $ | 56 |  |  | $ | 81 |
Copper derivatives |  | 9 |  |  | 1 |  |  | 2 |  |  | 11 |
|  | 146 |  |  | 20 |  |  | 58 |  |  | 92 |
Less gross amounts of offset: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 12 |  |  | 5 |  |  | 12 |  |  | 5 |
Copper derivatives |  | 2 |  |  | 1 |  |  | 2 |  |  | 1 |
|  | 14 |  |  | 6 |  |  | 14 |  |  | 6 |
Net amounts presented in balance sheet: |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |
Embedded derivatives in provisional |  |  |  |  |  |  |  |
sales/purchase contracts |  | 125 |  |  | 14 |  |  | 44 |  |  | 76 |
Copper derivatives |  | 7 |  |  | — |  |  | — |  |  | 10 |
|  | $ | 132 |  |  | $ | 14 |  |  | $ | 44 |  |  | $ | 86 |
Balance sheet classification: |  |  |  |  |  |  |  |
Trade accounts receivable |  | $ | 119 |  |  | $ | 9 |  |  | $ | 13 |  |  | $ | 51 |
Other current assets |  | 7 |  |  | — |  |  | — |  |  | — |
Accounts payable and accrued liabilities |  | 6 |  |  | 5 |  |  | 31 |  |  | 35 |
|  | $ | 132 |  |  | $ | 14 |  |  | $ | 44 |  |  | $ | 86 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 2: 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=64837297&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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=64837297&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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=68066869&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=64837297&loc=SL5624186-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsIncludedInTradingActivitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 2: 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=64837297&loc=SL5624163-113959 Reference 3: 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=64837297&loc=d3e41678-113959 Reference 4: 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=64837297&loc=d3e41638-113959 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=64837297&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 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 7: 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=64837297&loc=SL5624171-113959 Reference 8: 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=64837297&loc=SL5579240-113959 Reference 9: 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=64837297&loc=d3e41620-113959 Reference 10: 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
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration