Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2023

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, cash equivalents, restricted cash and 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, 2023
	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	63		63		63		—		—		—
Government mortgage-backed securities	40		40		—		—		40		—
Government bonds and notes	33		33		—		—		33		—
Corporate bonds	31		31		—		—		31		—
Asset-backed securities	19		19		—		—		19		—
Money market funds	17		17		—		17		—		—
Collateralized mortgage-backed securities	2		2		—		—		2		—
Total	205		205		63		17		125		—
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	37		37		—		—		37		—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa	59		51		—		—		—		51
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	100		100		—		—		100		—
Copper futures and swap contracts	10		10		—		8		2		—
Total	110		110		—		8		102		—
Long-term debt, including current portiond	9,495		9,129		—		—		9,129		—

	At December 31, 2022
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	25	$	25	$	25	$	—	$	—	$	—
Equity securities	7		7		—		7		—		—
Total	32		32		25		7		—		—
Legally restricted funds:a
U.S. core fixed income fund	56		56		56		—		—		—
Government mortgage-backed securities	37		37		—		—		37		—
Government bonds and notes	34		34		—		—		34		—
Corporate bonds	31		31		—		—		31		—
Asset-backed securities	17		17		—		—		17		—
Money market funds	3		3		—		3		—		—
Collateralized mortgage-backed securities	3		3		—		—		3		—
Total	181		181		56		3		122		—
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position	166		166		—		—		166		—
Copper futures and swap contracts	3		3		—		3		—		—
Copper forward contracts	1		1		—		1		—		—
Total	170		170		—		4		166		—
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa	67		57		—		—		—		57
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	39		39		—		—		39		—
Copper forward contracts	3		3		—		—		3		—
Total	42		42		—		—		42		—
Long-term debt, including current portiond	10,620		10,097		—		—		10,097		—

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, 2023, and $118 million at December 31, 2022, associated with PT-FI’s closure and reclamation guarantees and (ii) other assets of $134 million at June 30, 2023, and $133 million at December 31, 2022, primarily associated with an assurance bond to support PT-FI’s commitment for additional domestic smelter development in Indonesia.

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 2023 follows (in millions):

Fair value at January 1, 2023	$	57
Net unrealized gain related to assets still held at the end of the period	1
Settlements	(7)
Fair value at June 30, 2023	$	51