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DEBT | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt | DEBT FCX’s debt at December 31, 2020, included additions of $10 million ($11 million at December 31, 2019) for unamortized fair value adjustments, and is net of reductions of $85 million ($66 million at December 31, 2019) for unamortized net discounts and unamortized debt issuance costs. The components of debt follow:
| December 31,
| 2020 |  | 2019
Revolving credit facility | $ | — |  |  | $ | — |
Cerro Verde Term Loan | 523 |  |  | 826 |
Senior notes and debentures: |  |  |
Issued by FCX: |  |  |
4.00% Senior Notes due 2021 | — |  |  | 194 |
3.55% Senior Notes due 2022 | 523 |  |  | 1,876 |
3.875% Senior Notes due 2023 | 994 |  |  | 1,917 |
4.55% Senior Notes due 2024 | 728 |  |  | 846 |
5.00% Senior Notes due 2027 | 593 |  |  | 592 |
4.125% Senior Notes due 2028 | 691 |  |  | — |
4.375% Senior Notes due 2028 | 642 |  |  | — |
5.25% Senior Notes due 2029 | 593 |  |  | 592 |
4.25% Senior Notes due 2030 | 592 |  |  | — |
4.625% Senior Notes due 2030 | 840 |  |  | — |
5.40% Senior Notes due 2034 | 742 |  |  | 741 |
5.450% Senior Notes due 2043 | 1,845 |  |  | 1,844 |
Issued by FMC: |  |  |
7 1/8% Debentures due 2027 | 115 |  |  | 115 |
9½% Senior Notes due 2031 | 124 |  |  | 125 |
6 1/8% Senior Notes due 2034 | 117 |  |  | 117 |
Other | 49 |  |  | 41 |
Total debt | 9,711 |  |  | 9,826 |
Less current portion of debt | (34) |  |  | (5) |
Long-term debt | $ | 9,677 |  |  | $ | 9,821 |
Revolving Credit Facility. At December 31, 2020, FCX had no borrowings outstanding and $10 million in letters of credit issued under its revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023. For PT-FI, $500 million of the revolving credit facility is available. FCX’s revolving credit facility contains customary affirmative covenants and representations, and also contains a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX’s or its subsidiaries’ abilities to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. FCX’s revolving credit facility also contains financial ratios governing maximum total leverage and minimum interest expense coverage. In June 2020, FCX, PT-FI and Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) amended the $3.5 billion, unsecured revolving credit facility. The key changes under the amendment include (i) suspension of the total leverage ratio (ratio of total debt to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), as defined in the credit agreement) through June 30, 2021, followed by a limit of 5.25x beginning with the quarter ended September 30, 2021, and stepping down to 3.75x beginning January 1, 2022; and (ii) a reduction in the interest expense coverage ratio (ratio of consolidated EBITDA to consolidated cash interest expense, as defined in the credit agreement) to a minimum of 2.00x through December 31, 2021, reverting to 2.25x beginning January 1, 2022. FCX also agreed to a minimum liquidity covenant of $1 billion (consisting of consolidated unrestricted cash and availability under the revolving credit facility) applicable to each quarter through June 30, 2021, and additional restrictions on priority debt and liens, and the payment of common stock dividends through December 31, 2021. At December 31, 2020, FCX was in compliance with all of its covenants. As further discussed in Note 10, in February 2021, the FCX Board of Directors (the Board) reinstated a cash dividend on FCX’s common stock. Prior to the Board’s declaration of the initial quarterly dividend, FCX will deliver a covenant reversion notice, at which time the financial covenants and other restrictions, including the dividend restriction, will revert to the limits applicable prior to the June 2020 amendment. Interest on loans made under the revolving credit facility is, at the option of FCX, determined based on the adjusted London Interbank Offered rate (LIBOR) or the alternate base rate (each as defined in the revolving credit facility) plus a spread to be determined by reference to FCX’s credit ratings. Certain of FCX’s debt agreements, including our revolving credit facility, reference LIBOR and other interbank offered rates, which are being phased out and replaced with alternative reference rates. FCX does not expect the transition from LIBOR and other interbank offered rates to have a material impact on its consolidated financial results. Cerro Verde Term Loan. Repayments of the Cerro Verde Term Loan totaled $305 million in 2020, $200 million in 2019 and $470 million in 2018, with the remaining balance of $525 million due on the maturity date of June 19, 2022. Interest under the Term Loan is based on LIBOR plus a spread based on Cerro Verde’s total net debt to EBITDA ratio as defined in the agreement. The interest rate on Cerro Verde’s Term Loan was 2.05 percent at December 31, 2020. FCX recorded net losses of $1 million in 2020, $1 million in 2019 and $3 million in 2018, associated with Cerro Verde’s prepayments on its Term Loan. Cerro Verde Shareholder Loans. In December 2014, Cerro Verde entered into loan agreements with three of its shareholders for borrowings up to $800 million. No amounts were outstanding at December 31, 2020 and 2019, and availability under these agreements totals $200 million at December 31, 2020. Senior Notes. In July 2020, FCX completed the sale of $650 million of 4.375% Senior Notes due 2028 and $850 million of 4.625% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.485 billion. Interest on these senior notes is payable semiannually on February 1 and August 1 of each year. FCX used $1.4 billion of the net proceeds from this offering to purchase a portion of its outstanding 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. The remaining net proceeds from this offering were used for general corporate purposes. In March 2020, FCX completed the sale of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.285 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. FCX used a portion of the net proceeds from this offering to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. In April 2020, FCX used the remaining net proceeds to fund the make-whole redemption of all of its remaining 4.00% Senior Notes due 2021 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with the transaction. In August 2019, FCX sold $600 million of 5.00% Senior Notes due 2027 and $600 million of 5.25% Senior Notes due 2029 for total net proceeds of $1.187 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. FCX used the net proceeds from this offering to fund the make-whole redemption of all of its outstanding 6.875% Senior Notes due 2023, and the concurrent tender offers to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. During 2020, 2019 and 2018, FCX redeemed in full or purchased a portion of the following senior notes.
| Principal Amount |  | Net Adjustments |  | Book Value |  | Redemption/Tender Value |  | Loss/(Gain)
Year Ended December 31, 2020 |  |  |  |  |  |  |  |  |
FCX 4.00% Senior Notes due 2021 | $ | 195 |  |  | $ | (1) |  |  | $ | 194 |  |  | $ | 205 |  |  | $ | 11 |
FCX 3.55% Senior Notes due 2022 | 1,356 |  |  | (6) |  |  | 1,350 |  |  | 1,391 |  |  | 41 |
FCX 3.875% Senior Notes due 2023 | 927 |  |  | (4) |  |  | 923 |  |  | 964 |  |  | 41 |
FCX 4.55% Senior Notes due 2024 | 120 |  |  | (1) |  |  | 119 |  |  | 126 |  |  | 7 |
Total | $ | 2,598 |  |  | $ | (12) |  |  | $ | 2,586 |  |  | $ | 2,686 |  |  | $ | 100 |
Year Ended December 31, 2019 |  |  |  |  |  |  |  |  |
FCX 3.100% Senior Notes due 2020 | $ | 1,000 |  |  | $ | (2) |  |  | $ | 998 |  |  | $ | 1,003 |  |  | $ | 5 |
FCX 6.875% Senior Notes due 2023 | 728 |  |  | 34 |  |  | 762 |  |  | 768 |  |  | 6 |
FCX 4.00% Senior Notes due 2021 | 405 |  |  | (2) |  |  | 403 |  |  | 418 |  |  | 15 |
FCX 3.55% Senior Notes due 2022 | 12 |  |  | — |  |  | 12 |  |  | 12 |  |  | — |
Total | $ | 2,145 |  |  | $ | 30 |  |  | $ | 2,175 |  |  | $ | 2,201 |  |  | $ | 26 |
Year Ended December 31, 2018 |  |  |  |  |  |  |  |  |
FCX 6.75% Senior Notes due 2022 | $ | 404 |  |  | $ | 22 |  |  | $ | 426 |  |  | $ | 418 |  |  | $ | (8) |
FM O&G LLC 6 7/8% Senior Notes due 2023 | 50 |  |  | 4 |  |  | 54 |  |  | 52 |  |  | (2) |
Total | $ | 454 |  |  | $ | 26 |  |  | $ | 480 |  |  | $ | 470 |  |  | $ | (10) |
The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, at specified redemption prices beginning on the dates stated below and at 100 percent of principal two years before maturity.
Debt Instrument |  | Date
5.00% Senior Notes due 2027 |  | September 1, 2022
4.125% Senior Notes due 2028 |  | March 1, 2023
4.375% Senior Notes due 2028 |  | August 1, 2023
5.25% Senior Notes due 2029 |  | September 1, 2024
4.25% Senior Notes due 2030 |  | March 1, 2025
4.625% Senior Notes due 2030 |  | August 1, 2025
The senior notes listed below are redeemable in whole or in part, at the option of FCX, at a make-whole redemption price prior to the dates stated below, and beginning on the dates stated below at 100 percent of principal.
Debt Instrument |  | Date
3.55% Senior Notes due 2022 |  | December 1, 2021
3.875% Senior Notes due 2023 |  | December 15, 2022
4.55% Senior Notes due 2024 |  | August 14, 2024
5.40% Senior Notes due 2034 |  | May 14, 2034
5.450% Senior Notes due 2043 |  | September 15, 2042
FCX’s senior notes contain limitations on liens and rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. Guarantees. All of the senior notes issued by FCX are fully and unconditionally guaranteed on a senior basis jointly and severally by FM O&G LLC, as guarantor, which is a 100-percent-owned subsidiary of FM O&G and FCX. Maturities. Maturities of debt instruments based on the principal amounts and terms outstanding at December 31, 2020, total $36 million in 2021, $1.05 billion in 2022, $1.0 billion in 2023, $730 million in 2024, none in 2025 and 2026 and $7.0 billion thereafter.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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