FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2022

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, accrued income taxes and dividends payable (refer to Note 6) follows (in millions):

	At June 30, 2022
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	26	$	26	$	26	$	—	$	—	$	—
Equity securities	5		5		—		5		—		—
Total	31		31		26		5		—		—
Legally restricted funds:a
U.S. core fixed income fund	56		56		56		—		—		—
Government bonds and notes	39		39		—		—		39		—
Corporate bonds	36		36		—		—		36		—
Government mortgage-backed securities	28		28		—		—		28		—
Asset-backed securities	16		16		—		—		16		—
Money market funds	8		8		—		8		—		—
Collateralized mortgage-backed securities	3		3		—		—		3		—
Total	186		186		56		8		122		—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position	38		38		—		—		38		—
Copper forward contracts	15		15		—		8		7		—
Total	53		53		—		8		45		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	79		67		—		—		—		67
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	476		476		—		—		476		—
Copper futures and swap contracts	66		66		—		61		5		—
Copper forward contracts	4		4		—		3		1		—
Total	546		546		—		64		482		—
Long-term debt, including current portiond	11,092		10,601		—		—		10,601		—

	At December 31, 2021
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
Equity securities	$	50	$	50	$	—	$	50	$	—	$	—
U.S. core fixed income fund	29		29		29		—		—		—
Total	79		79		29		50		—		—
Legally restricted funds:a
U.S. core fixed income fund	64		64		64		—		—		—
Government bonds and notes	53		53		—		—		53		—
Corporate bonds	45		45		—		—		45		—
Government mortgage-backed securities	20		20		—		—		20		—
Asset-backed securities	18		18		—		—		18		—
Money market funds	8		8		—		8		—		—
Municipal bonds	1		1		—		—		1		—
Total	209		209		64		8		137		—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position	64		64		—		—		64		—
Copper futures and swap contracts	12		12		—		9		3		—
Copper forward contracts	1		1		—		1		—		—
Total	77		77		—		10		67		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	90		81		—		—		—		81
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	27		27		—		—		27		—
Copper forward contracts	1		1		—		1		—		—
Total	28		28		—		1		27		—
Long-term debt, including current portiond	9,450		10,630		—		—		10,630		—

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 $119 million at June 30, 2022, and $114 million at December 31, 2021, and (ii) other assets of $134 million at June 30, 2022, and $132 million at December 31, 2021, primarily associated with an assurance bond to support PT-FI’s commitment for additional domestic smelter development 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 six months of 2022 follows (in millions):

Fair value at January 1, 2022	$	81
Net unrealized loss related to assets still held at the end of the period	(3)
Settlements	(11)
Fair value at June 30, 2022	$	67