Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

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 on the related hedged item follows (in millions):

	Three Months Ended
	March 31,
	2023		2022
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	14	$	12
Hedged item – firm sales commitments	(14)		(12)
Realized gains:
Matured derivative financial instruments	8		14

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at March 31, 2023, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	547	$	3.92	$	4.08	August 2023
Gold (thousands of ounces)	199	1,876		1,991		June 2023
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	78	4.01		4.06		August 2023

Schedule of Derivative Instruments Included in Trading Activities

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
	March 31,
	2023		2022
Embedded derivatives in provisional sales contracts:a
Copper	$	231	$	218
Gold and other metals	42		22
Copper forward contractsb	(2)		4

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

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

	March 31, 2023		December 31, 2022
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	15	$	3
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	119		166
Copper forward contracts	—		1
Total derivative assets	$	134	$	170
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	—	$	3
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	10		39
Copper forward contracts	1		—
Total derivative liabilities	$	11	$	42

Offsetting Assets

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

	Assets				Liabilities
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	119	$	166	$	10	$	39
Copper derivatives	15		4		1		3
	134		170		11		42
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—
	3		—		3		—
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	116		166		7		39
Copper derivatives	15		4		1		3
	$	131	$	170	$	8	$	42
Balance sheet classification:
Trade accounts receivable	$	108	$	163	$	3	$	7
Other current assets	15		4		—		—
Accounts payable and accrued liabilities	8		3		5		34
Other liabilities	—		—		—		1
	$	131	$	170	$	8	$	42

Offsetting Liabilities

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

	Assets				Liabilities
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	119	$	166	$	10	$	39
Copper derivatives	15		4		1		3
	134		170		11		42
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—
	3		—		3		—
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	116		166		7		39
Copper derivatives	15		4		1		3
	$	131	$	170	$	8	$	42
Balance sheet classification:
Trade accounts receivable	$	108	$	163	$	3	$	7
Other current assets	15		4		—		—
Accounts payable and accrued liabilities	8		3		5		34
Other liabilities	—		—		—		1
	$	131	$	170	$	8	$	42

Schedule of Cash Flow, Supplemental Disclosures

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

	March 31, 2023		December 31, 2022
Balance sheet components:
Cash and cash equivalentsa,b	$	6,852	$	8,146
Restricted cash and cash equivalents included in:
Other current assets	118		111
Other assets	134		133
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows	$	7,104	$	8,390

a.Includes time deposits of $0.3 billion at March 31, 2023, and $0.5 billion at December 31, 2022.

b.Includes cash designated for smelter development projects totaling $1.5 billion at March 31, 2023, and $1.8 billion at December 31, 2022.