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FAIR VALUE ACCOUNTING

3 Months Ended

Mar. 31, 2023

FAIR VALUE ACCOUNTINGThe following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Refer to Note 13 of the Consolidated Financial Statements included in Part II of the Company's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 23, 2023 for further information on the Company's assets and liabilities included in the fair value hierarchy presented below.


	Fair Value at March 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents (1)	$	2,657	$	2,657	$	—	$	—
Restricted cash	68		68		—		—
Time deposits and other (Note 10)	815		—		815		—
Trade receivable from provisional sales, net	348		—		348		—

Marketable equity securities (Note 10)	299		288		11		—
Restricted marketable debt securities (Note 10)	26		22		4		—
Restricted other assets (Note 10)	8		8		—		—
Contingent consideration assets	187		—		—		187
Derivative assets	12		—		12		—
	$	4,420	$	3,043	$	1,190	$	187
Liabilities:
Debt (2)	$	5,320	$	—	$	5,320	$	—
Contingent consideration liabilities	5		—		—		5
	$	5,325	$	—	$	5,320	$	5


	Fair Value at December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents (1)	$	2,877	$	2,877	$	—	$	—
Restricted cash	67		67		—		—
Time deposits and other (Note 10)	846		—		846		—
Trade receivable from provisional sales, net	364		—		364		—
Long-lived assets	25		—		—		25

Marketable equity securities (Note 10)	260		250		10		—
Restricted marketable debt securities (Note 10)	27		23		4		—
Restricted other assets (Note 10)	8		8		—		—
Contingent consideration assets	188		—		—		188
Derivative assets	20		—		20		—
	$	4,682	$	3,225	$	1,244	$	213
Liabilities:
Debt (2)	$	5,136	$	—	$	5,136	$	—
Contingent consideration liabilities	3		—		—		3
	$	5,139	$	—	$	5,136	$	3

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(1)Cash and cash equivalents include time deposits that have an original maturity of three months or less.

(2)Debt is carried at amortized cost. The outstanding carrying value was $5,572 and $5,571 at March 31, 2023 and December 31, 2022, respectively. Refer to Note 13 for further information. The fair value measurement of debt was based on an independent third-party pricing source.

The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities at March 31, 2023 and December 31, 2022:


Description	At March 31, 2023		Valuation Technique	Significant Input	Range, Point Estimate or Average
Contingent consideration assets	$	187	Monte Carlo (1)	Discount rate (2)		8.76 - 29.59	%
Contingent consideration liabilities	$	5	Discounted cash flow	Discount rate (2)		5.56 - 7.08	%


Description	At December 31, 2022		Valuation Technique	Significant Input	Range, Point Estimate or Average
Long-lived assets	$	25	Market-based approach	Various (3)		Various (3)
Contingent consideration assets	$	188	Monte Carlo (1)	Discount rate (2)		8.75 - 29.59	%
Contingent consideration liabilities	$	3	Discounted cash flow	Discount rate (2)		5.56 - 7.08	%

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(1)A Monte Carlo valuation model is used for the fair value measurement of the Batu Hijau contingent consideration asset. All other contingent consideration assets are valued using a probability-weighted discounted cash flow where the significant input is the discount rate.

(2)The weighted average discount rate used to calculate the Company’s contingent consideration assets and liabilities is 11.85% and 6.47%, respectively, at March 31, 2023 and 11.86% and 6.07%, respectively, at December 31, 2022. Various other inputs including, but not limited to, metal prices and production profiles were considered in determining the fair value of the individual contingent consideration assets and liabilities.

(3)At December 31, 2022, the Company recognized an impairment charge on the long-lived assets at CC&V, which resulted in a remaining long-lived asset balance of $25. The impairment was determined using the income approach and included the following significant inputs (i) updated cash flow information from the Company's business and closure plans at December 31, 2022, (ii) a short-term gold price of $1,750, (iii) a long-term gold price of $1,600, (iv) current estimates of reserves, resources, and exploration potential, and (v) a country specific pre-tax discount rate of 6.75%. The Company performed a nonrecurring fair value measurement and estimated the fair value of the remaining asset balance using a market-based approach based on the appraised value in an assumed sale to a third-party market participant.

The following tables set forth a summary of changes in the fair value of the Company’s recurring Level 3 financial assets and liabilities:


	Contingent Consideration Assets (1)		Total Assets		Contingent Consideration Liabilities		Total Liabilities
Fair value at December 31, 2022	$	188	$	188	$	3	$	3

Revaluation	(1)		(1)		2		2

Fair value at March 31, 2023	$	187	$	187	$	5	$	5


	Contingent Consideration Assets (1)		Total Assets		Contingent consideration liabilities		Total liabilities
Fair value at December 31, 2021	$	171	$	171	$	5	$	5

Revaluation	8		8		—		—
Fair value at March 31, 2022	$	179	$	179	$	5	$	5

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(1)In 2023, the (loss) gain recognized on revaluation of $(7) and $6 is included in Other Income (loss), net and Net income (loss) from discontinued operations, respectively. In 2022, the gain recognized on revaluation is included in Net income (loss) from discontinued operations.

- 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.

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