FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2020

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 March 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	$	28		$	28		$	28	$	—		$	—		$	—
Equity securities	3			3			—		3			—			—
Total	31			31			28		3			—			—
Legally restricted funds:a
U.S. core fixed income fund	60			60			60		—			—			—
Government mortgage-backed securities	55			55			—		—			55			—
Corporate bonds	39			39			—		—			39			—
Government bonds and notes	22			22			—		—			22			—
Asset-backed securities	11			11			—		—			11			—
Money market funds	8			8			—		8			—			—
Collateralized mortgage-backed securities	4			4			—		—			4			—
Municipal bonds	1			1			—		—			1			—
Total	200			200			60		8			132			—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	34			34			—		—			34			—
Copper forward contractsc	4			4			—		1			3			—
Total	38			38			—		1			37			—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	119			78			—		—			—			78
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	(119		)	(119		)	—		—			(119		)	—
Copper futures and swap contractsc	(28		)	(28		)	—		(25		)	(3		)	—
Total	(147		)	(147		)	—		(25		)	(122		)	—
Long-term debt, including current portiond	10,074			9,530			—		—			9,530			—

	At December 31, 2019
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	27	$	27	$	27	$	—	$	—	$	—
Equity securities	4		4		—		4		—		—
Total	31		31		27		4		—		—
Legally restricted funds:a
U.S. core fixed income fund	59		59		59		—		—		—
Government mortgage-backed securities	43		43		—		—		43		—
Government bonds and notes	36		36		—		—		36		—
Corporate bonds	33		33		—		—		33		—
Asset-backed securities	14		14		—		—		14		—
Collateralized mortgage-backed securities	7		7		—		—		7		—
Money market funds	3		3		—		3		—		—
Municipal bonds	1		1		—		—		1		—
Total	196		196		59		3		134		—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	68		68		—		—		68		—
Copper futures and swap contractsc	6		6		—		5		1		—
Contingent consideration for the sale of onshore
California oil and gas propertiesa	11		11		—		—		11		—
Total	85		85		—		5		80		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	122		108		—		—		—		108
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	20		20		—		—		20		—
Copper forward contracts	1		1		—		—		1		—
Total	21		21		—		—		21		—
Long-term debt, including current portiond	9,826		10,239		—		—		10,239		—

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 $113 million at March 31, 2020, and $100 million at December 31, 2019, and (ii) other assets of $151 million at March 31, 2020, and $157 million at December 31, 2019, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter 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 three months of 2020 follows (in millions):

Fair value at January 1, 2020	$	108
Net unrealized loss related to assets still held at the end of the period	(27		)
Settlements	(3		)
Fair value at March 31, 2020	$	78