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FAIR VALUE MEASUREMENT (Notes) | 12 Months Ended
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Dec. 31, 2016
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 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 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). 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 2016. Effective January 1, 2016, FCX retrospectively adopted the ASU associated with investments for which fair value is measured using the 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 follows. FCX's financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater GOM oil and gas properties (which was recorded under the loss recovery approach) and debt.
| At December 31, 2016
| Carrying |  | Fair Value
| Amount |  | Total |  | NAV |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |
Investment securities: a,b |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds | 22 |  |  | 22 |  |  | — |  |  | 22 |  |  | — |  |  | — |
Equity securities | 5 |  |  | 5 |  |  | — |  |  | 5 |  |  | — |  |  | — |
Total | 50 |  |  | 50 |  |  | 23 |  |  | 27 |  |  | — |  |  | — |
Legally restricted funds: a |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund | 53 |  |  | 53 |  |  | 53 |  |  | — |  |  | — |  |  | — |
Government bonds and notes | 36 |  |  | 36 |  |  | — |  |  | — |  |  | 36 |  |  | — |
Corporate bonds | 32 |  |  | 32 |  |  | — |  |  | — |  |  | 32 |  |  | — |
Government mortgage-backed securities | 25 |  |  | 25 |  |  | — |  |  | — |  |  | 25 |  |  | — |
Asset-backed securities | 16 |  |  | 16 |  |  | — |  |  | — |  |  | 16 |  |  | — |
Money market funds | 12 |  |  | 12 |  |  | — |  |  | 12 |  |  | — |  |  | — |
Collateralized mortgage-backed securities | 8 |  |  | 8 |  |  | — |  |  | — |  |  | 8 |  |  | — |
Municipal bonds | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |
Total | 183 |  |  | 183 |  |  | 53 |  |  | 12 |  |  | 118 |  |  | — |
Derivatives: |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/purchase |  |  |  |  |  |  |  |  |  |  |
contracts in a gross asset positionc | 137 |  |  | 137 |  |  | — |  |  | — |  |  | 137 |  |  | — |
Copper futures and swap contractsc | 9 |  |  | 9 |  |  | — |  |  | 8 |  |  | 1 |  |  | — |
Contingent consideration for the sales of TFHL |  |  |  |  |  |  |  |  |  |  |
and onshore California oil and gas propertiesa | 46 |  |  | 46 |  |  | — |  |  | — |  |  | 46 |  |  | — |
Total | 192 |  |  | 192 |  |  | — |  |  | 8 |  |  | 184 |  |  | — |
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa | 150 |  |  | 135 |  |  | — |  |  | — |  |  | — |  |  | 135 |
Total assets |  |  | $ | 560 |  |  | $ | 76 |  |  | $ | 47 |  |  | $ | 302 |  |  | $ | 135 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivatives: c |  |  |  |  |  |  |  |  |  |  |
Embedded derivatives in provisional sales/purchase |  |  |  |  |  |  |  |  |  |  |
contracts in a gross liability position | $ | 56 |  |  | $ | 56 |  |  | — |  |  | $ | — |  |  | $ | 56 |  |  | $ | — |
Copper futures and swap contracts | 2 |  |  | 2 |  |  | — |  |  | 2 |  |  | — |  |  | — |
Total | 58 |  |  | 58 |  |  | — |  |  | 2 |  |  | 56 |  |  | — |
Contingent payments for the settlements of drilling rig contractsd | 23 |  |  | 23 |  |  | — |  |  | — |  |  | 23 |  |  | — |
Long-term debt, including current portione | 16,027 |  |  | 15,196 |  |  | — |  |  | — |  |  | 15,196 |  |  | — |
Total liabilities |  |  | $ | 15,277 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 15,275 |  |  | $ | — |
| 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 | $ | 23 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market funds | 21 |  |  | 21 |  |  | — |  |  | 21 |  |  | — |  |  | — |
Equity securities | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | — |
Total | 47 |  |  | 47 |  |  | 23 |  |  | 24 |  |  | — |  |  | — |
Legally restricted funds: a |  |  |  |  |  |  |  |  |  |  |
U.S. core fixed income fund | 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: c |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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: c |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 portione | 20,428 |  |  | 13,987 |  |  | — |  |  | — |  |  | 13,987 |  |  | — |
Total liabilities |  |  | $ | 14,079 |  |  | $ | — |  |  | $ | 7 |  |  | $ | 14,072 |  |  | $ | — |
a. | Current portion included in other current assets and long-term portion included in other assets.
b. | Excludes time deposits (which approximated fair value) included in (i) other current assets of $28 million at December 31, 2016 and 2015, and (ii) other assets of $122 million at December 31, 2016, and $118 million at December 31, 2015, primarily associated with an assurance bond to support PT-FI's commitment for smelter development in Indonesia (refer to Note 13 for further discussion).
c. | Refer to Note 14 for further discussion and balance sheet classifications.
d. | Included in accounts payable and accrued liabilities.
e. | Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.
Valuation Techniques. 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). 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 14 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 14 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. The fair value of contingent consideration for the sales of TFHL and onshore California oil and gas properties (refer to Note 2 for further discussion) is calculated based on average commodity price forecasts through applicable maturity dates using a Monte Carlo simulation model. The models use various observable inputs, including Brent crude oil forward prices, historical copper and cobalt prices, volatilities, discount rates and settlement terms. As a result, these contingent consideration assets are classified within Level 2 of the fair value hierarchy. The fair value of contingent consideration for the sale of Deepwater GOM oil and gas properties (refer to Note 2 for further discussion) is calculated based on a discounted cash flow model using inputs that include third-party reserve estimates, production rates, production timing and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy. The fair value of contingent payments for the settlements of drilling rig contracts (refer to Note 13 for further discussion) is calculated based on the average price forecasts of WTI crude oil over the 12-month period ending June 30, 2017, using a mean-reverting model. The model uses various observable inputs, including WTI crude oil forward prices, volatilities, discount rate and settlement terms. As a result, these contingent payments 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 techniques described above may produce a fair value calculation that may not be indicative of NRV 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 December 31, 2016. A summary of the changes in the fair value of FCX's Level 3 instruments for the years ended December 31 follows:
| Contingent Consideration |  | Crude Oil Options |
| 2016 |  | 2015 |  | 2014 |
Balance at beginning of year | $ | — |  |  | $ | 316 |  |  | $ | (309 | ) |
Net realized gains (losses) | — |  |  | 86 |  | a | (42 | ) | a
Net unrealized gains related to assets and liabilities still held at the end of the year | 135 |  | b | — |  |  | 430 |  | c
Net settlements | — |  |  | (402 | ) | d | 237 |  | d
Balance at the end of the year | $ | 135 |  |  | $ | — |  |  | $ | 316 |  |
a. | Includes net realized gains (losses) of $87 million recorded in revenues in 2015 and $(41) million in 2014, and $1 million of interest expense associated with deferred premiums in both 2015 and 2014.
b. | Reflects contingent consideration associated with the sale of the Deepwater GOM oil and gas properties in December 2016 (see Note 2 for further discussion).
c. | Includes unrealized gains recorded in revenues of $432 million and $2 million of interest expense associated with deferred premiums.
d. | Includes interest payments of $4 million in 2015 and $5 million in 2014.
Refer to Notes 1 and 5 for a discussion of the fair value estimates utilized in the impairment assessments for mining operations, which were determined using inputs not observable in the market and thus represent Level 3 measurements. Refer to Note 1 for the discussion of the fair value estimate utilized in the goodwill impairment assessment, which was determined primarily using inputs not observable in the market and thus represents a Level 3 measurement.

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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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