Fair Value Measurement (Unaudited) (Tables)

6 Months Ended

Jun. 30, 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 7) follows (in millions):



	At June 30, 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	$	24	$	24	$	24	$	—	$	—	$	—
Money market funds	22		22		—		22		—		—
Equity securities	4		4		—		4		—		—
Total	50		50		24		26		—		—

Legally restricted funds:^a,b,c,d
U.S. core fixed income fund at NAV	55		55		55		—		—		—
Government bonds and notes	38		38		—		—		38		—
Government mortgage-backed securities	30		30		—		—		30		—
Corporate bonds	30		30		—		—		30		—
Asset-backed securities	15		15		—		—		15		—
Money market funds	12		12		—		12		—		—
Collateralized mortgage-backed securities	6		6		—		—		6		—
Municipal bonds	1		1		—		—		1		—
Total	187		187		55		12		120		—

Derivatives:^a,e
Embedded derivatives in provisional sales/
purchase contracts in a gross asset position	49		49		—		—		49		—
Copper futures and swap contracts	4		4		—		4		—		—
Copper forward contracts	2		2		—		1		1		—
Total	55		55		—		5		50		—

Total assets			$	292	$	79	$	43	$	170	$	—

Liabilities
Derivatives:^a,e
Embedded derivatives in provisional sales/
purchase contracts in a gross liability position	$	18	$	18	$	—	$	—	$	18	$	—
Copper futures and swap contracts	3		3		—		1		2		—
Copper forward contracts	1		1		—		1		—		—
Total	22		22		—		2		20		—

Contingent consideration for the settlements of
drilling rig contracts^f	25		25		—		—		25		—

Long-term debt, including current portion^g	19,319		17,772		—		—		17,772		—

Total liabilities			$	17,819	$	—	$	2	$	17,817	$	—



	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	19		19		—		—		19		—
Copper futures and swap contracts	1		1		—		1		—		—
Total	20		20		—		1		19		—

Total assets			$	238	$	75	$	32	$	131	$	—

Liabilities
Derivatives:^a,e
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 portion^g	20,428		13,987		—		—		13,987		—

Total liabilities			$	14,079	$	—	$	7	$	14,072	$	—


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 $120 million at June 30, 2016, and $118 million at December 31, 2015, primarily 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 $30 million at June 30, 2016, and$28 million at December 31, 2015.


e.	Refer to Note 7 for further discussion and balance sheet classifications.


f.	Included in other liabilities.


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