XML 35 R19.htm IDEA: XBRL DOCUMENT

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Copper futures and swap contracts:
Unrealized gains (losses):
Derivative financial instruments	$	17	$	(20)	$	(61)	$	(28)
Hedged item – firm sales commitments	(17)		20		61		28

Realized (losses) gains:
Matured derivative financial instruments	(50)		5		(48)		57

Schedule of Derivative Instruments

A summary of FCX’s embedded derivatives at September 30, 2022, follows:


	Open Positions	Average Price Per Unit				Maturities Through
		Contract		Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds)	829	$	3.68	$	3.45	March 2023
Gold (thousands of ounces)	281	1,725		1,679		January 2023
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds)	153	3.77		3.47		December 2022

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

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,
	2022		2021		2022		2021
Embedded derivatives in provisional sales contracts:a
Copper	$	(272)	$	(102)	$	(774)	$	223
Gold and other metals	(34)		(9)		(45)		(22)
Copper forward contractsb	5		1		31		(12)

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):


	September 30, 2022		December 31, 2021
Commodity Derivative Assets:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	—	$	12
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	68		64
Copper forward contracts	—		1
Total derivative assets	$	68	$	77

Commodity Derivative Liabilities:
Derivatives designated as hedging instruments:
Copper futures and swap contracts	$	49	$	—
Derivatives not designated as hedging instruments:
Embedded derivatives in provisional sales/purchase contracts	222		27


Copper forward contracts	1		1
Total derivative liabilities	$	272	$	28

Offsetting Assets

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


	Assets				Liabilities
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021

Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	68	$	64	$	222	$	27

Copper derivatives	—		13		50		1
	68		77		272		28

Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	6		3		6		3

Copper derivatives	—		1		—		1
	6		4		6		4

Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	62		61		216		24

Copper derivatives	—		12		50		—
	$	62	$	73	$	266	$	24

Balance sheet classification:
Trade accounts receivable	$	29	$	51	$	94	$	14
Other current assets	—		12		—		—


Accounts payable and accrued liabilities	33		10		169		10
Other liabilities	—		—		3		—
	$	62	$	73	$	266	$	24

Offsetting Liabilities

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


	Assets				Liabilities
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021

Gross amounts recognized:
Embedded derivatives in provisional
sales/purchase contracts	$	68	$	64	$	222	$	27

Copper derivatives	—		13		50		1
	68		77		272		28

Less gross amounts of offset:
Embedded derivatives in provisional
sales/purchase contracts	6		3		6		3

Copper derivatives	—		1		—		1
	6		4		6		4

Net amounts presented in balance sheet:
Embedded derivatives in provisional
sales/purchase contracts	62		61		216		24

Copper derivatives	—		12		50		—
	$	62	$	73	$	266	$	24

Balance sheet classification:
Trade accounts receivable	$	29	$	51	$	94	$	14
Other current assets	—		12		—		—


Accounts payable and accrued liabilities	33		10		169		10
Other liabilities	—		—		3		—
	$	62	$	73	$	266	$	24

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

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, 2022		December 31, 2021
Balance sheet components:
Cash and cash equivalentsa	$	8,578	$	8,068
Restricted cash and cash equivalents included in:
Other current assets	112		114
Other assets	134		132
Total cash, cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows	$	8,824	$	8,314

a.Includes time deposits of $0.4 billion at September 30, 2022, and $0.2 billion at December 31, 2021

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details