FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2021

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 and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable (refer to Note 6) follows (in millions):

	At June 30, 2021
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	29	$	29	$	29	$	—	$	—	$	—
Equity securities	15		15		—		15		—		—
Total	44		44		29		15		—		—
Legally restricted funds:a
U.S. core fixed income fund	64		64		64		—		—		—
Government bonds and notes	54		54		—		—		54		—
Corporate bonds	40		40		—		—		40		—
Government mortgage-backed securities	29		29		—		—		29		—
Asset-backed securities	12		12		—		—		12		—
Money market funds	6		6		—		6		—		—
Collateralized mortgage-backed securities	3		3		—		—		3		—
Municipal bonds	1		1		—		—		1		—
Total	209		209		64		6		139		—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	62		62		—		—		62		—
Copper futures and swap contractsc	8		8		—		4		4		—
Copper forward contractsc	2		2		—		1		1		—
Total	72		72		—		5		67		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	98		85		—		—		—		85
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	103		103		—		—		103		—
Copper futures and swap contractsc	1		1		—		1		—		—
Copper forward contracts	4		4		—		1		3		—
Total	108		108		—		2		106		—
Long-term debt, including current portiond	9,695		10,853		—		—		10,853		—

	At December 31, 2020
	Carrying		Fair Value
	Amount		Total		NAV		Level 1		Level 2		Level 3
Assets
Investment securities:a,b
U.S. core fixed income fund	$	29	$	29	$	29	$	—	$	—	$	—
Equity securities	7		7		—		7		—		—
Total	36		36		29		7		—		—
Legally restricted funds:a
U.S. core fixed income fund	65		65		65		—		—		—
Government bonds and notes	49		49		—		—		49		—
Corporate bonds	43		43		—		—		43		—
Government mortgage-backed securities	30		30		—		—		30		—
Asset-backed securities	16		16		—		—		16		—
Money market funds	5		5		—		5		—		—
Collateralized mortgage-backed securities	4		4		—		—		4		—
Municipal bonds	1		1		—		—		1		—
Total	213		213		65		5		143		—
Derivatives:
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc	169		169		—		—		169		—
Copper futures and swap contractsc	15		15		—		13		2		—
Total	184		184		—		13		171		—
Contingent consideration for the sale of the
Deepwater GOM oil and gas propertiesa	108		88		—		—		—		88
Liabilities
Derivatives:c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position	21		21		—		—		21		—
Long-term debt, including current portiond	9,711		10,994		—		—		10,994		—

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 $116 million at June 30, 2021, and $97 million at December 31, 2020, and (ii) other assets of $139 million at June 30, 2021, and $148 million at December 31, 2020, primarily associated with an assurance bond to support PT-FI’s commitment for new domestic smelter development in Indonesia and PT-FI’s closure and reclamation guarantees.

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 2021 follows (in millions):

Fair value at January 1, 2021	$	88
Net unrealized gain related to assets still held at the end of the period	7
Settlements	(10)
Fair value at June 30, 2021	$	85