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Fair Value Measurement (Unaudited) | 9 Months Ended
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Sep. 30, 2016
Fair Value Disclosures [Abstract] |
Fair Value Measurement | FAIR VALUE MEASUREMENT Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX recognizes transfers between levels at the end of the reporting period. FCX did not have any significant transfers in or out of Level 1, 2 or 3 for third-quarter 2016. Effective January 1, 2016, FCX retrospectively adopted the Accounting Standards Update (ASU) associated with investments for which fair value is measured using the net asset value (NAV) per share as a practical expedient. As a result, investments valued using NAV per share are shown in the tables below in a column separate from the levels within the fair value hierarchy. A summary of the carrying amount and fair value of FCX’s financial instruments, other than cash and cash equivalents, accounts receivable, restricted cash, and accounts payable and accrued liabilities (refer to Note 7) follows (in millions):
| At September 30, 2016
| Carrying |  | Fair Value
| Amount |  | Total |  | NAV |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |
Investment securities:a,b |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund at NAV | $ | 24 |  |  | $ | 24 |  |  | $ | 24 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds | 22 |  |  | 22 |  |  | — |  |  | 22 |  |  | — |  |  | — |
Equity securities | 5 |  |  | 5 |  |  | — |  |  | 5 |  |  | — |  |  | — |
Total | 51 |  |  | 51 |  |  | 24 |  |  | 27 |  |  | — |  |  | — |
Legally restricted funds:a,b,c |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund at NAV | 55 |  |  | 55 |  |  | 55 |  |  | — |  |  | — |  |  | — |
Government bonds and notes | 37 |  |  | 37 |  |  | — |  |  | — |  |  | 37 |  |  | — |
Corporate bonds | 32 |  |  | 32 |  |  | — |  |  | — |  |  | 32 |  |  | — |
Government mortgage-backed securities | 27 |  |  | 27 |  |  | — |  |  | — |  |  | 27 |  |  | — |
Asset-backed securities | 16 |  |  | 16 |  |  | — |  |  | — |  |  | 16 |  |  | — |
Money market funds | 13 |  |  | 13 |  |  | — |  |  | 13 |  |  | — |  |  | — |
Collateralized mortgage-backed securities | 7 |  |  | 7 |  |  | — |  |  | — |  |  | 7 |  |  | — |
Municipal bonds | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total | 188 |  |  | 188 |  |  | 55 |  |  | 13 |  |  | 120 |  |  | — |
Derivatives:a,d |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/ |  |  |  |  |  |  |  |  |  |  |
purchase contracts in a gross asset position | 47 |  |  | 47 |  |  | — |  |  | — |  |  | 47 |  |  | — |
Copper futures and swap contracts | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | — |
Total | 50 |  |  | 50 |  |  | — |  |  | 3 |  |  | 47 |  |  | — |
Total assets |  |  | $ | 289 |  |  | $ | 79 |  |  | $ | 43 |  |  | $ | 167 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivatives:a,d |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/ |  |  |  |  |  |  |  |  |  |  |
purchase contracts in a gross liability position | $ | 9 |  |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |  |  | $ | — |
Copper futures and swap contracts | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total | 10 |  |  | 10 |  |  | — |  |  | — |  |  | 10 |  |  | — |
Contingent consideration for the settlements of |  |  |  |  |  |  |  |  |  |  |
drilling rig contracts e | 18 |  |  | 18 |  |  | — |  |  | — |  |  | 18 |  |  | — |
Long-term debt, including current portion f | 18,982 |  |  | 17,926 |  |  | — |  |  | — |  |  | 17,926 |  |  | — |
Total liabilities |  |  | $ | 17,954 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,954 |  |  | $ | — |
| At December 31, 2015
| Carrying |  | Fair Value
| Amount |  | Total |  | NAV |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |
Investment securities:a,b |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund at NAV | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds | 21 |  |  | 21 |  |  | — |  |  | 21 |  |  | — |  |  | — |
Equity securities | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | — |
Total | 47 |  |  | 47 |  |  | 23 |  |  | 24 |  |  | — |  |  | — |
Legally restricted funds:a,b,c |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund at NAV | 52 |  |  | 52 |  |  | 52 |  |  | — |  |  | — |  |  | — |
Government bonds and notes | 37 |  |  | 37 |  |  | — |  |  | — |  |  | 37 |  |  | — |
Government mortgage-backed securities | 28 |  |  | 28 |  |  | — |  |  | — |  |  | 28 |  |  | — |
Corporate bonds | 26 |  |  | 26 |  |  | — |  |  | — |  |  | 26 |  |  | — |
Asset-backed securities | 13 |  |  | 13 |  |  | — |  |  | — |  |  | 13 |  |  | — |
Collateralized mortgage-backed securities | 7 |  |  | 7 |  |  | — |  |  | — |  |  | 7 |  |  | — |
Money market funds | 7 |  |  | 7 |  |  | — |  |  | 7 |  |  | — |  |  | — |
Municipal bonds | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total | 171 |  |  | 171 |  |  | 52 |  |  | 7 |  |  | 112 |  |  | — |
Derivatives:a,d |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/ |  |  |  |  |  |  |  |  |  |  |
purchase contracts in a gross asset position | 19 |  |  | 19 |  |  | — |  |  | — |  |  | 19 |  |  | — |
Copper futures and swap contracts | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |
Total | 20 |  |  | 20 |  |  | — |  |  | 1 |  |  | 19 |  |  | — |
Total assets |  |  | $ | 238 |  |  | $ | 75 |  |  | $ | 32 |  |  | $ | 131 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivatives:a,d |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/ |  |  |  |  |  |  |  |  |  |  |
purchase contracts in a gross liability position | $ | 81 |  |  | $ | 81 |  |  | $ | — |  |  | $ | — |  |  | $ | 81 |  |  | $ | — |
Copper futures and swap contracts | 11 |  |  | 11 |  |  | — |  |  | 7 |  |  | 4 |  |  | — |
Total | 92 |  |  | 92 |  |  | — |  |  | 7 |  |  | 85 |  |  | — |
Long-term debt, including current portion f | 20,428 |  |  | 13,987 |  |  | — |  |  | — |  |  | 13,987 |  |  | — |
Total liabilities |  |  | $ | 14,079 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 14,072 |  |  | $ | — |
a. | Recorded at fair value.
b. | Current portion included in other current assets and long-term portion included in other assets.
c. | Excludes time deposits (which approximated fair value) included in (i) other current assets of $28 million at September 30, 2016, and December 31, 2015, and (ii) other assets of $120 million at September 30, 2016, and $118 million at December 31, 2015, primarily associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia.
d. | Refer to Note 7 for further discussion and balance sheet classifications.
e. | Included in accounts payable and accrued liabilities.
f. | Recorded at cost except for debt assumed in acquisitions, which were recorded at fair value at the respective acquisition dates.
Valuation Techniques. Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy. Fixed income securities (government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. A bid-evaluation price is an estimated price at which a dealer would pay for a security. A mid-evaluation price is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy. FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using only quoted monthly LME or COMEX copper forward prices and the London gold forward price at each reporting date based on the month of maturity (refer to Note 7 for further discussion); however, FCX's contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy. FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 7 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices. Contingent liabilities for the settlement of drilling rig contracts (refer to Note 9 for further discussion) are based on the average price forecasts of WTI crude oil over the 12-month period ending June 30, 2017. The fair value is estimated using a Monte Carlo simulation model that uses various observable inputs, including WTI crude oil forward prices, volatilities, discount rate and settlement terms. As a result, these contingent liabilities are classified within Level 2 of the fair value hierarchy. Long-term debt, including current portion, is valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (usually within one business day of notice). The techniques described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at September 30, 2016.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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