Fair Value Measurement (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2016

Carrying Amount and Fair Value of Other Financial Instruments

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 6) follows (in millions):



	At March 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 at NAV	$	23	$	23	$	23	$	—	$	—	$	—
Money market funds	22		22		—		22		—		—
Equity securities	4		4		—		4		—		—
Total	49		49		23		26		—		—

Legally restricted funds:^a,b,c,d
U.S. core fixed income fund at NAV	53		53		53		—		—		—
Government bonds and notes	33		33		—		—		33		—
Government mortgage-backed securities	32		32		—		—		32		—
Corporate bonds	29		29		—		—		29		—
Asset-backed securities	14		14		—		—		14		—
Collateralized mortgage-backed securities	7		7		—		—		7		—
Money market funds	7		7		—		7		—		—
Municipal bonds	1		1		—		—		1		—
Total	176		176		53		7		116		—

Derivatives:^a,e
Embedded derivatives in provisional sales/
purchase contracts in a gross asset position	68		68		—		—		68		—
Copper futures and swap contracts	4		4		—		3		1		—
Total	72		72		—		3		69		—

Total assets			$	297	$	76	$	36	$	185	$	—

Liabilities
Derivatives:^a,e
Embedded derivatives in provisional sales/
purchase contracts in a gross liability position	$	25	$	25	$	—	$	—	$	25	$	—
Copper futures and swap contracts	6		6		—		3		3		—
Copper forward contracts	2		2		—		2		—		—
Total	33		33		—		5		28		—

Long-term debt, including current portion^f	20,777		16,679		—		—		16,679		—

Total liabilities			$	16,712	$	—	$	5	$	16,707	$	—



	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,d
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,e
Embedded derivatives in provisional sales/
purchase contracts in a gross asset position	21		21		—		—		21		—
Copper futures and swap contracts	1		1		—		1		—		—
Total	22		22		—		1		21		—

Total assets			$	240	$	75	$	32	$	133	$	—

Liabilities
Derivatives:^a,e
Embedded derivatives in provisional sales/
purchase contracts in a gross liability position	$	82	$	82	$	—	$	—	$	82	$	—
Copper futures and swap contracts	11		11		—		7		4		—
Total	93		93		—		7		86		—

Long-term debt, including current portion^f	20,428		13,987		—		—		13,987		—

Total liabilities			$	14,080	$	—	$	7	$	14,073	$	—


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 other assets of $119 million at March 31, 2016, and $118 million at December 31, 2015, associated with an assurance bond to support PT Freeport Indonesia's (PT-FI) commitment for smelter development in Indonesia.


d.	Excludes time deposits (which approximated fair value) included in other current assets of $29 million at March 31, 2016, and$28 million at December 31, 2015.


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


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