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CONTINGENCIES (Tables) | 12 Months Ended
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Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract] |
Schedule of Environmental Obligations | A summary of changes in estimated environmental obligations for the years ended December 31 follows:
| 2017 |  | 2016 |  | 2015
Balance at beginning of year | $ | 1,221 |  |  | $ | 1,215 |  |  | $ | 1,174 |
Accretion expense a | 84 |  |  | 81 |  |  | 78 |
Additions | 241 |  |  | 26 |  |  | 33 |
Reductions b | (43 | ) |  | (43 | ) |  | (3 | )
Spending | (64 | ) |  | (58 | ) |  | (67 | )
Balance at end of year | 1,439 |  |  | 1,221 |  |  | 1,215 |
Less current portion | (134 | ) |  | (129 | ) |  | (100 | )
Long-term portion | $ | 1,305 |  |  | $ | 1,092 |  |  | $ | 1,115 |
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.
Schedule of Asset Retirement Obligations | A summary of changes in FCX’s AROs for the years ended December 31 follows:
| 2017 |  | 2016 |  | 2015 |
Balance at beginning of year | $ | 2,635 |  |  | $ | 2,771 |  |  | $ | 2,744 |  |
Liabilities incurred | 14 |  |  | 12 |  |  | 97 |  |
Settlements and revisions to cash flow estimates, net | (112 | ) |  | 529 |  | a | (69 | ) |
Accretion expense | 124 |  |  | 137 |  |  | 131 |  |
Dispositions | (10 | ) |  | (626 | ) | b | — |  |
Spending | (71 | ) |  | (188 | ) |  | (132 | ) |
Balance at end of year | 2,580 |  |  | 2,635 |  |  | 2,771 |  |
Less current portion | (254 | ) |  | (240 | ) |  | (172 | ) |
Long-term portion | $ | 2,326 |  |  | $ | 2,395 |  |  | $ | 2,599 |  |
a. | Revisions to cash flow estimates were primarily related to revised estimates for an overburden stockpile in Indonesia and at certain oil and gas properties.
b. | Primarily reflects the sale of certain oil and gas properties.
Schedule of Charges for the Cerro Verde Royalty Dispute | A summary of the charges recorded in 2017 for the Cerro Verde royalty dispute follows (in millions):
Royalty and related assessment charges: |  |  |
| Production and delivery |  | $ | 203 |  | a
| Interest expense, net |  | 145 |  |
| Provision for income taxes |  | 7 |  | b
Net loss attributable to noncontrolling interests |  | (169 | ) |
|  |  | $ | 186 |  |
a. | Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues), $6 million of penalties related to the December 2006 to December 2008 royalty assessments and $22 million of related charges primarily associated with the net assets tax.
b. | Includes tax charges of $136 million for disputed royalties ($69 million) and other related mining taxes ($67 million) for the period October 2011 through the year 2013 when royalties were determined based on operating income, mostly offset by a tax benefit of $129 million associated with disputed royalties and other related mining taxes for the period December 2006 through December 2013.
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 |  | N/A |  | 2014-2017
Indonesia |  | 2008, 2011-2016 |  | 2017
Peru |  | 2012 |  | 2013-2017
Chile |  | 2015-2016 |  | 2017
Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s imposition of a 7.5 percent export duty (refer to Note 13), a summary of these assessments follows:
Tax Year |  | Tax Assessment |  | Interest Assessment |  | Total
2005 |  | $ | 77 |  |  | $ | 37 |  |  | $ | 114 |
2007 |  | 48 |  |  | 24 |  |  | 72 |
2008, 2010 to 2011 |  | 56 |  |  | 37 |  |  | 93 |
2012 |  | 125 |  |  | 1 |  |  | 126 |
2013 |  | 160 |  |  | 80 |  |  | 240 |
2014 |  | 160 |  |  | 7 |  |  | 167 |
2015 |  | 169 |  |  | — |  |  | 169 |
|  | $ | 795 |  |  | $ | 186 |  |  | $ | 981 |
A summary of these assessments follows:
Tax Year |  | Tax Assessment |  | Penalty and Interest Assessment |  | Total |
2003 to 2005 |  | $ | 16 |  |  | $ | 54 |  |  | $ | 70 |  |
2006 |  | 7 |  |  | 59 |  |  | 66 |  |
2007 to 2008 |  | 33 |  |  | 31 |  |  | 64 |  |
2009 |  | 59 |  |  | 49 |  |  | 108 |  |
2010 |  | 66 |  |  | 107 |  |  | 173 |  |
2011, 2014 to 2017 |  | 72 |  |  | 64 |  |  | 136 |  |
|  | $ | 253 |  |  | $ | 364 |  |  | $ | 617 |  |

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