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FAIR VALUE MEASUREMENT (Notes)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENT
Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX did not have any significant transfers in or out of Level 3 for 2023.

FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for contingent consideration associated with the sale of the Deepwater GOM oil and gas properties (which was recorded under the loss recovery approach) and debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at 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 14) follows:
 At December 31, 2023
CarryingFair Value
 AmountTotalNAVLevel 1Level 2Level 3
Assets    
Investment securities:a,b
    
U.S. core fixed income fund$27 $27 $27 $— $— $— 
Equity securities6 6 — 6 — — 
Total33 33 27 6 — — 
Legally restricted funds:a
    
U.S. core fixed income fund65 65 65 — — — 
Government mortgage-backed securities51 51 — — 51 — 
Government bonds and notes37 37 — — 37 — 
Corporate bonds29 29 — — 29 — 
Money market funds17 17 — 17 — — 
Asset-backed securities12 12 — — 12 — 
Collateralized mortgage-backed securities1 1 — — 1 — 
Total212 212 65 17 130 — 
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position76 76 — — 76 — 
Copper futures and swap contracts4 4 — 3 1 — 
Total80 80 — 3 77 — 
Contingent consideration for the sale of the Deepwater GOM oil and gas propertiesa
50 42 — — — 42 
Liabilities    
Derivatives:c
    
Embedded derivatives in provisional sales/purchase contracts in a gross liability position23 23 — — 23 — 
Copper forward contracts1 1 — 1 — — 
Total24 24 — 1 23 — 
Long-term debt, including current portiond
9,422 9,364 — — 9,364 — 
At December 31, 2022
 CarryingFair Value
 AmountTotalNAVLevel 1Level 2Level 3
Assets    
Investment securities:a,b
    
U.S. core fixed income fund$25 $25 $25 $— $— $— 
Equity securities7 7 — 7 — — 
Total 32 32 25 7 — — 
Legally restricted funds:a
    
U.S. core fixed income fund56 56 56 — — — 
Government mortgage-backed securities37 37 — — 37 — 
Government bonds and notes34 34 — — 34 — 
Corporate bonds31 31 — — 31 — 
Asset-backed securities17 17 — — 17 — 
Money market funds3 3 — 3 — — 
Collateralized mortgage-backed securities3 3 — — 3 — 
Total181 181 56 3 122 — 
Derivatives:c
    
Embedded derivatives in provisional sales/purchase contracts in a gross asset position166 166 — — 166 — 
Copper futures and swap contracts3 3 — 3 — — 
Copper forward contracts1 1 — 1 — — 
Total170 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 position39 39 — — 39 — 
Copper forward contracts3 3 — — 3 — 
Total42 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 amounts included in restricted cash and cash equivalents and other assets (which approximated fair value), primarily associated with (i) PT-FI’s export proceeds ($1.1 billion at December 31, 2023), (ii) assurance bonds to support PT-FI’s commitment for additional smelter development in Indonesia ($145 million at December 31, 2023, and $133 million at December 31, 2022) and (iii) PT-FI’s mine closure and reclamation guarantees ($97 million at December 31, 2023, and $103 million at December 31, 2022).
c.Refer to Note 14 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.

Valuation Techniques. The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.

Fixed income securities (government mortgage-backed securities, government securities, corporate bonds, asset-backed securities, collateralized mortgage-backed securities and municipal bonds) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.
Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.

FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME or COMEX copper forward prices and the adjusted London gold prices at each reporting date based on the month of maturity (refer to Note 14 for further discussion); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.

FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 14 for further discussion). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.

In December 2016, FCX’s sale of its Deepwater GOM oil and gas properties included up to $150 million in contingent consideration that was recorded at the total amount under the loss recovery approach. The contingent consideration is being received over time as future cash flows are realized from a third-party production handling agreement for an offshore platform, with the related payments commencing in 2018. The contingent consideration included in (i) other current assets totaled $12 million at December 31, 2023, and $20 million at December 31, 2022, and (ii) other assets totaled $38 million at December 31, 2023, and $47 million at December 31, 2022. The fair value of this contingent consideration was calculated based on a discounted cash flow model using inputs that include third-party estimates for reserves, production rates and production timing, and discount rates. Because significant inputs are not observable in the market, the contingent consideration is classified within Level 3 of the fair value hierarchy.

Long-term debt, including current portion, is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.

The techniques described above may produce a fair value that may not be indicative of NRV or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at December 31, 2023, as compared to those techniques used at December 31, 2022.

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, for the years ended December 31 follows:
202320222021
Balance at beginning of year$57 $81 $88 
Net unrealized gains (losses) related to assets still held at the end of the year1 (1)12 
Settlements(16)(23)(19)
Balance at end of year$42 $57 $81