Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item

A summary of gains (losses) recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including the unrealized gains (losses) on the related hedged item follows (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	40		$	(13	)	$	7		$	5
Hedged item – firm sales commitments	(40		)	13			(7		)	(5		)
Realized losses:
Matured derivative financial instruments	(8		)	(3		)	(17		)	(1		)

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at June 30, 2020, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	314	$	2.50	$	2.73	November 2020
Gold (thousands of ounces)	87	1,725		1,779		August 2020
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	116	2.48		2.73		September 2020

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Embedded derivatives in provisional sales contracts:a
Copper	$	162		$	(122	)	$	(76	)	$	—
Gold and other metals	17			13			24			11
Copper forward contractsb	(4		)	(4		)	19			(3		)

a. Amounts recorded in revenues. 

b.

Amounts recorded in cost of sales as production and delivery costs.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

	June 30, 2020		December 31, 2019
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	17	$	6
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional
sales/purchase contracts	77		68
Total derivative assets	$	94	$	74
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	6	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional
sales/purchase contracts	28		20
Copper forward contracts	—		1
Total derivative liabilities	$	34	$	21

Offsetting Assets

A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	77	$	68	$	28	$	20
Copper derivatives	17		6		6		1
	94		74		34		21
Less gross amounts of offset:
Copper derivatives	4		—		4		—
	4		—		4		—
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	77		68		28		20
Copper derivatives	13		6		2		1
	$	90	$	74	$	30	$	21
Balance sheet classification:
Trade accounts receivable	$	76	$	66	$	2	$	—
Other current assets	13		6		—		—
Accounts payable and accrued liabilities	1		2		28		21
	$	90	$	74	$	30	$	21

Offsetting Liabilities

A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):

	Assets				Liabilities
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	77	$	68	$	28	$	20
Copper derivatives	17		6		6		1
	94		74		34		21
Less gross amounts of offset:
Copper derivatives	4		—		4		—
	4		—		4		—
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	77		68		28		20
Copper derivatives	13		6		2		1
	$	90	$	74	$	30	$	21
Balance sheet classification:
Trade accounts receivable	$	76	$	66	$	2	$	—
Other current assets	13		6		—		—
Accounts payable and accrued liabilities	1		2		28		21
	$	90	$	74	$	30	$	21

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):

	June 30, 2020		December 31, 2019
Balance sheet components:
Cash and cash equivalents	$	1,465	$	2,020
Restricted cash and restricted cash equivalents included in:
Other current assets	132		100
Other assets	132		158
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	1,729	$	2,278