FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	29	$	29	$	29	$	—	$	—	$	—
Equity securities	6		6		—		6		—		—
Total	35		35		29		6		—		—
Legally restricted funds:a
U.S. core fixed income fund	63		63		63		—		—		—
Government bonds and notes	46		46		—		—		46		—
Corporate bonds	40		40		—		—		40		—
Government mortgage-backed securities	28		28		—		—		28		—
Asset-backed securities	12		12		—		—		12		—
Money market funds	12		12		—		12		—		—
Collateralized mortgage-backed securities	4		4		—		—		4		—
Municipal bonds	1		1		—		—		1		—
Total	206		206		63		12		131		—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	105		105		—		—		105		—
Copper futures and swap contractsc	18		18		—		15		3		—
Copper forward contractsc	3		3		—		1		2		—
Total	126		126		—		16		110		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	104		88		—		—		—		88
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	67		67		—		—		67		—
Copper forward contracts	1		1		—		—		1		—
Total	68		68		—		—		68		—
Long-term debt, including current portiond	9,809		10,891		—		—		10,891		—

	At December 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	$	29	$	29	$	29	$	—	$	—	$	—
Equity securities	7		7		—		7		—		—
Total	36		36		29		7		—		—
Legally restricted funds:a
U.S. core fixed income fund	65		65		65		—		—		—
Government bonds and notes	49		49		—		—		49		—
Corporate bonds	43		43		—		—		43		—
Government mortgage-backed securities	30		30		—		—		30		—
Asset-backed securities	16		16		—		—		16		—
Money market funds	5		5		—		5		—		—
Collateralized mortgage-backed securities	4		4		—		—		4		—
Municipal bonds	1		1		—		—		1		—
Total	213		213		65		5		143		—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	169		169		—		—		169		—
Copper futures and swap contractsc	15		15		—		13		2		—
Total	184		184		—		13		171		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	108		88		—		—		—		88
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	21		21		—		—		21		—
Long-term debt, including current portiond	9,711		10,994		—		—		10,994		—

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 $106 million at March 31, 2021, and $97 million at December 31, 2020, and (ii) other assets of $148 million at both March 31, 2021 and December 31, 2020, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a greenfield 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 2021 follows (in millions):

Fair value at January 1, 2021	$	88
Net unrealized gain related to assets still held at the end of the period	5
Settlements	(5)
Fair value at March 31, 2021	$	88