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FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs Disclosure

A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):

			At September 30, 2021
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
Equity securities			$	52					$	52					$	—					$	52					$	—					$	—
U.S. core fixed income fund			29						29						29						—						—						—
Total			81						81						29						52						—						—
Legally restricted funds:a
U.S. core fixed income fund			64						64						64						—						—						—
Government bonds and notes			53						53						—						—						53						—
Corporate bonds			42						42						—						—						42						—
Government mortgage-backed securities			24						24						—						—						24						—
Asset-backed securities			14						14						—						—						14						—
Money market funds			8						8						—						8						—						—
Collateralized mortgage-backed securities			4						4						—						—						4						—
Municipal bonds			1						1						—						—						1						—
Total			210						210						64						8						138						—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc			30						30						—						—						30						—
Copper forward contractsc			5						5						—						2						3						—
Copper futures and swap contractsc			2						2						—						—						2						—
Total			37						37						—						2						35						—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa			94						85						—						—						—						85
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			134						134						—						—						134						—
Copper futures and swap contractsc			14						14						—						14						—						—
Copper forward contracts			4						4						—						1						3						—
Total			152						152						—						15						137						—
Long-term debt, including current portiond			9,665						10,791						—						—						10,791						—

			At December 31, 2020
			Carrying						Fair Value
			Amount						Total						NAV						Level 1						Level 2						Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund			$	29					$	29					$	29					$	—					$	—					$	—
Equity securities			7						7						—						7						—						—
Total			36						36						29						7						—						—
Legally restricted funds:a
U.S. core fixed income fund			65						65						65						—						—						—
Government bonds and notes			49						49						—						—						49						—
Corporate bonds			43						43						—						—						43						—
Government mortgage-backed securities			30						30						—						—						30						—
Asset-backed securities			16						16						—						—						16						—
Money market funds			5						5						—						5						—						—
Collateralized mortgage-backed securities			4						4						—						—						4						—
Municipal bonds			1						1						—						—						1						—
Total			213						213						65						5						143						—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc			169						169						—						—						169						—
Copper futures and swap contractsc			15						15						—						13						2						—
Total			184						184						—						13						171						—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa			108						88						—						—						—						88
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position			21						21						—						—						21						—
Long-term debt, including current portiond			9,711						10,994						—						—						10,994						—

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 $114 million at September 30, 2021, and $97 million at December 31, 2020, and (ii) other assets of $132 million at September 30, 2021, and $148 million at December 31, 2020, primarily associated with an assurance bond to support PT-FI’s commitment for additional domestic smelter development in Indonesia and PT-FI’s closure and reclamation guarantees.

c.Refer to Note 6 for further discussion and balance sheet classifications.

d.Recorded at cost except for debt assumed in acquisitions, which are recorded at fair value at the respective acquisition dates.

Summary of Unobservable Input Reconciliation

A summary of the changes in the fair value of FCX’s Level 3 instrument, contingent consideration for the sale of the Deepwater GOM oil and gas properties, during the first nine months of 2021 follows (in millions):

Fair value at January 1, 2021			$	88
Net unrealized gain related to assets still held at the end of the period			12
Settlements			(15)
Fair value at September 30, 2021			$	85

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=121572278&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

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No definition available.

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X

- Definition

Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

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