Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

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				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments	$	(25)	$	(89)	$	(11)	$	(78)
Hedged item – firm sales commitments	25		89		11		78
Realized (losses) gains:
Matured derivative financial instruments	(5)		(12)		3		2

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at June 30, 2023, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	587	$	3.90	$	3.78	November 2023
Gold (thousands of ounces)	165	1,980		1,919		September 2023
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	152	3.89		3.77		October 2023

Schedule of Derivative Instruments Included in Trading Activities

A summary of the realized and unrealized (losses) gains 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,
	2023		2022		2023		2022
Embedded derivatives in provisional sales contracts:a
Copper	$	(169)	$	(720)	$	61	$	(502)
Gold and other metals	(21)		(33)		22		(11)
Copper forward contractsb	1		22		(1)		26

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):

	June 30, 2023		December 31, 2022
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	—	$	3
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	37		166
Copper forward contracts	—		1
Total derivative assets	$	37	$	170
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	10	$	3
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	100		39
Total derivative liabilities	$	110	$	42

Offsetting Assets

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

	Assets				Liabilities
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	37	$	166	$	99	$	39
Copper derivatives	—		4		11		3
	37		170		110		42
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	9		—		9		—
	9		—		9		—
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	28		166		90		39
Copper derivatives	—		4		11		3
	$	28	$	170	$	101	$	42
Balance sheet classification:
Trade accounts receivable	$	8	$	163	$	72	$	7
Other current assets	—		4		—		—
Accounts payable and accrued liabilities	20		3		29		34
Other liabilities	—		—		—		1
	$	28	$	170	$	101	$	42

Offsetting Liabilities

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

	Assets				Liabilities
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Gross amounts recognized:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	$	37	$	166	$	99	$	39
Copper derivatives	—		4		11		3
	37		170		110		42
Less gross amounts of offset:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	9		—		9		—
	9		—		9		—
Net amounts presented in balance sheet:
Commodity contracts:
Embedded derivatives in provisional
sales/purchase contracts	28		166		90		39
Copper derivatives	—		4		11		3
	$	28	$	170	$	101	$	42
Balance sheet classification:
Trade accounts receivable	$	8	$	163	$	72	$	7
Other current assets	—		4		—		—
Accounts payable and accrued liabilities	20		3		29		34
Other liabilities	—		—		—		1
	$	28	$	170	$	101	$	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):

	June 30, 2023		December 31, 2022
Balance sheet components:
Cash and cash equivalentsa,b	$	6,683	$	8,146
Restricted cash and cash equivalents included in:
Other current assets	119		111
Other assets	134		133
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows	$	6,936	$	8,390

a.Includes time deposits of $0.3 billion at June 30, 2023, and $0.5 billion at December 31, 2022.

b.Includes cash designated for smelter development projects totaling $1.1 billion at June 30, 2023, and $1.8 billion at December 31, 2022.