Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unrealized gains (losses) for derivative financial instruments that are designated and qualify as fair value hedge transactions and for the related hedged item

A summary of gains (losses) 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
	March 31,
	2022		2021
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	12	$	3
Hedged item – firm sales commitments	(12)		(3)
Realized gains:
Matured derivative financial instruments	14		24

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at March 31, 2022, follows:

	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	753	$	4.49	$	4.71	August 2022
Gold (thousands of ounces)	206	1,925		1,936		June 2022
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	65	4.43		4.71		July 2022

Realized and unrealized gains (losses) for derivative financial instruments that do not qualify as hedge transactions

A summary of the realized and unrealized gains (losses) recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows (in millions):

	Three Months Ended
	March 31,
	2022		2021
Embedded derivatives in provisional sales contracts:a
Copper	$	218	$	207
Gold and other metals	22		(28)
Copper forward contractsb	4		(8)

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 [Table Text Block]

A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):

	March 31, 2022		December 31, 2021
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	24	$	12
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	169		64
Copper forward contracts	2		1
Total derivative assets	$	195	$	77
Commodity Derivative Liabilities:
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	$	20	$	27
Copper forward contracts	2		1
Total derivative liabilities	$	22	$	28

Offsetting Assets

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

	Assets				Liabilities
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	169	$	64	$	20	$	27
Copper derivatives	26		13		2		1
	195		77		22		28
Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	2		3		2		3
Copper derivatives	2		1		2		1
	4		4		4		4
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	167		61		18		24
Copper derivatives	24		12		—		—
	$	191	$	73	$	18	$	24
Balance sheet classification:
Trade accounts receivable	$	165	$	51	$	8	$	14
Other current assets	23		12		—		—
Other assets	1		—		—		—
Accounts payable and accrued liabilities	2		10		10		10
	$	191	$	73	$	18	$	24

Offsetting Liabilities

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

	Assets				Liabilities
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	169	$	64	$	20	$	27
Copper derivatives	26		13		2		1
	195		77		22		28
Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	2		3		2		3
Copper derivatives	2		1		2		1
	4		4		4		4
Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	167		61		18		24
Copper derivatives	24		12		—		—
	$	191	$	73	$	18	$	24
Balance sheet classification:
Trade accounts receivable	$	165	$	51	$	8	$	14
Other current assets	23		12		—		—
Other assets	1		—		—		—
Accounts payable and accrued liabilities	2		10		10		10
	$	191	$	73	$	18	$	24

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The following table provides a reconciliation of total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows (in millions):

	March 31, 2022		December 31, 2021
Balance sheet components:
Cash and cash equivalentsa	$	8,338	$	8,068
Restricted cash and restricted cash equivalents included in:
Other current assets	117		114
Other assets	133		132
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows	$	8,588	$	8,314

a.Includes time deposits of $0.2 billion at each of March 31, 2022, and December 31, 2021.