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Financial Instruments (Tables)

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	1	$	(2)	$	8	$	3
Hedged item – firm sales commitments	(1)		2		(8)		(3)

Realized gains (losses):
Matured derivative financial instruments	15		(8)		(1)		(9)

Schedule of Derivative Instruments

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


	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	381	$	2.91	$	3.03	March 2021
Gold (thousands of ounces)	116	1,941		1,891		January 2021
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	113	2.95		3.03		January 2021

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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Embedded derivatives in provisional sales contracts:a
Copper	$	94	$	(57)	$	18	$	(57)
Gold and other metals	15		6		39		17
Copper forward contractsb	(7)		—		12		(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):


	September 30, 2020		December 31, 2019
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	13	$	6
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	51		68
Copper forward contracts	1		—
Total derivative assets	$	65	$	74

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	—	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	20		20


Copper forward contracts	—		1
Total derivative liabilities	$	20	$	21

Offsetting Assets

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


	Assets				Liabilities
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019

Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	51	$	68	$	20	$	20

Copper derivatives	14		6		—		1
	65		74		20		21

Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—


	3		—		3		—

Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	48		68		17		20

Copper derivatives	14		6		—		1
	$	62	$	74	$	17	$	21

Balance sheet classification:
Trade accounts receivable	$	46	$	66	$	5	$	—
Other current assets	14		6		—		—


Accounts payable and accrued liabilities	2		2		12		21

	$	62	$	74	$	17	$	21

Offsetting Liabilities

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


	Assets				Liabilities
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019

Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	51	$	68	$	20	$	20

Copper derivatives	14		6		—		1
	65		74		20		21

Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—


	3		—		3		—

Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	48		68		17		20

Copper derivatives	14		6		—		1
	$	62	$	74	$	17	$	21

Balance sheet classification:
Trade accounts receivable	$	46	$	66	$	5	$	—
Other current assets	14		6		—		—


Accounts payable and accrued liabilities	2		2		12		21

	$	62	$	74	$	17	$	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):


	September 30, 2020		December 31, 2019
Balance sheet components:
Cash and cash equivalents	$	2,403	$	2,020
Restricted cash and restricted cash equivalents included in:
Other current assets	103		100
Other assets	149		158
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	2,655	$	2,278

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details