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CONTINGENCIES (Tables) | 12 Months Ended
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Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract] |
Schedule of Environmental Obligations | A summary of changes in estimated environmental obligations for the years ended December 31 follows:
| 2018 |  | 2017 |  | 2016
Balance at beginning of year | $ | 1,439 |  |  | $ | 1,221 |  |  | $ | 1,215 |
Accretion expense a | 100 |  |  | 84 |  |  | 81 |
Additions b | 56 |  |  | 241 |  |  | 26 |
Reductions b | — |  |  | (43 | ) |  | (43 | )
Spending | (84 | ) |  | (64 | ) |  | (58 | )
Balance at end of year | 1,511 |  |  | 1,439 |  |  | 1,221 |
Less current portion | (132 | ) |  | (134 | ) |  | (129 | )
Long-term portion | $ | 1,379 |  |  | $ | 1,305 |  |  | $ | 1,092 |
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. | Adjustments to environmental obligations that do not provide future economic benefits are charged to operating income. 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:
| 2018 |  | 2017 |  | 2016 |
Balance at beginning of year | $ | 2,583 |  |  | $ | 2,638 |  |  | $ | 2,774 |  |
Liabilities incurred | 1 |  |  | 14 |  |  | 12 |  |
Settlements and revisions to cash flow estimates, net | 50 |  |  | (112 | ) |  | 529 |  | a
Accretion expense | 110 |  |  | 124 |  |  | 137 |  |
Dispositions b | (37 | ) |  | (10 | ) |  | (626 | ) |
Spending | (160 | ) |  | (71 | ) |  | (188 | ) |
Balance at end of year | 2,547 |  |  | 2,583 |  |  | 2,638 |  |
Less current portion | (317 | ) |  | (286 | ) |  | (240 | ) |
Long-term portion | $ | 2,230 |  |  | $ | 2,297 |  |  | $ | 2,398 |  |
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.
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 |  | 2014-2018
Indonesia |  | 2008, 2011-2016 |  | 2017-2018
Peru |  | 2012-2013 |  | 2014-2018
Chile |  | 2016-2017 |  | 2018
Excluding surface water and withholding tax assessments discussed below and the Indonesian government’s previous imposition of a 7.5 percent export duty that PT-FI paid under protest during the period April 2017 to December 21, 2018 (refer to Note 13), a summary of these assessments follows:
Tax Year |  | Tax Assessment |  | Interest Assessment |  | Total
2005 |  | $ | 73 |  |  | $ | 35 |  |  | $ | 108 |
2007 |  | 47 |  |  | 23 |  |  | 70 |
2008, 2010 to 2011 |  | 55 |  |  | 37 |  |  | 92 |
2012 |  | 124 |  |  | — |  |  | 124 |
2013 |  | 154 |  |  | 74 |  |  | 228 |
2014 |  | 139 |  |  | 6 |  |  | 145 |
2015 |  | 158 |  |  | — |  |  | 158 |
2016 |  | 266 |  |  | 113 |  |  | 379 |
|  | $ | 1,016 |  |  | $ | 288 |  |  | $ | 1,304 |
A summary of these assessments follows:
Tax Year |  | Tax Assessment |  | Penalty and Interest Assessment |  | Total |
2003 to 2008 |  | $ | 56 |  |  | $ | 130 |  |  | $ | 186 |  |
2009 |  | 57 |  |  | 51 |  |  | 108 |  |
2010 |  | 63 |  |  | 105 |  |  | 168 |  |
2011 |  | 49 |  |  | 65 |  |  | 114 |  |
2014 to 2018 |  | 32 |  |  | — |  |  | 32 |  |
|  | $ | 257 |  |  | $ | 351 |  |  | $ | 608 |  |
Schedule of Charges for the Cerro Verde Royalty Dispute | summary of the charges recorded in 2018 and 2017 for the Cerro Verde royalty dispute follows:
Royalty and related assessment charges: |  | 2018 a |  | 2017 |  | Total |
| Production and delivery |  | $ | 14 |  |  | $ | 203 |  | b | $ | 217 |  |
| Interest expense, net |  | 370 |  |  | 145 |  |  | 515 |  |
| Other expense |  | 22 |  |  | — |  |  | 22 |  |
| (Benefit from) provision for income taxes |  | (35 | ) |  | 7 |  | c | (28 | ) |
Net loss attributable to noncontrolling interests |  | (176 | ) |  | (169 | ) |  | (345 | ) |
|  |  | $ | 195 |  |  | $ | 186 |  |  | $ | 381 |  |
a. | Amounts are net of gains from the refund of GEM for the period October 2012 through the year 2013.
b. | Includes $175 million related to disputed royalty assessments for the period from December 2006 to September 2011 (when royalties were determined based on revenues).
c. | 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.

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