Financial Instruments (Tables)

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	2	$	17	$	(9)	$	(61)
Hedged item – firm sales commitments	(2)		(17)		9		61
Realized losses:
Matured derivative financial instruments	(4)		(50)		(1)		(48)

Schedule of Derivative Instruments

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

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	553	$	3.78	$	3.75	February 2024
Gold (thousands of ounces)	209	1,925		1,884		December 2023
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	165	3.80		3.75		January 2024

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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Embedded derivatives in provisional sales contracts:a
Copper	$	(30)	$	(272)	$	31	$	(774)
Gold and other metals	(10)		(34)		12		(45)
Copper forward contractsb	(1)		5		(3)		31

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):

	September 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	16		166
Copper forward contracts	—		1
Total derivative assets	$	16	$	170
Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	8	$	3
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	35		39
Copper forward contracts	1		—
Total derivative liabilities	$	44	$	42

Offsetting Assets

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

	Assets				Liabilities
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	16	$	166	$	35	$	39
Copper derivatives	—		4		9		3
	16		170		44		42
Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—
	3		—		3		—
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	13		166		32		39
Copper derivatives	—		4		9		3
	$	13	$	170	$	41	$	42
Balance sheet classification:
Trade accounts receivable	$	5	$	163	$	20	$	7
Other current assets	—		4		—		—
Accounts payable and accrued liabilities	8		3		21		34
Other liabilities	—		—		—		1
	$	13	$	170	$	41	$	42

Offsetting Liabilities

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

	Assets				Liabilities
	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	16	$	166	$	35	$	39
Copper derivatives	—		4		9		3
	16		170		44		42
Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	3		—		3		—
	3		—		3		—
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	13		166		32		39
Copper derivatives	—		4		9		3
	$	13	$	170	$	41	$	42
Balance sheet classification:
Trade accounts receivable	$	5	$	163	$	20	$	7
Other current assets	—		4		—		—
Accounts payable and accrued liabilities	8		3		21		34
Other liabilities	—		—		—		1
	$	13	$	170	$	41	$	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):

	September 30, 2023			December 31, 2022
Balance sheet components:
Cash and cash equivalentsa	$	5,745		$	8,146
Restricted cash and cash equivalents, current	697		b	111
Restricted cash and cash equivalents, long-term - included in other assets	97			133
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows	$	6,539		$	8,390

a.Includes time deposits of $0.3 billion at September 30, 2023, and $0.5 billion at December 31, 2022, and cash designated for smelter development projects totaling $0.6 billion at September 30, 2023, and $1.8 billion at December 31, 2022.

b.Includes $0.5 billion associated with PT-FI’s export proceeds. See Note 8 for further discussion.