FREEPORT-MCMORAN INC, 10-Q filed on 8/7/2020
Quarterly Report
v3.20.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2020
Jul. 31, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Entity File Number 001-11307-01  
Entity Registrant Name Freeport-McMoRan Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 74-2480931  
Entity Address, Address Line One 333 North Central Avenue  
Entity Address, City or Town Phoenix  
Entity Address, State or Province AZ  
Entity Address, Postal Zip Code 85004-2189  
City Area Code (602)  
Local Phone Number 366-8100  
Title of 12(b) Security Common Stock, par value $0.10 per share  
Trading Symbol FCX  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,452,218,624
Entity Central Index Key 0000831259  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.20.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 1,465 $ 2,020
Trade accounts receivable 717 741
Income and other tax receivables 646 426
Inventories:    
Total materials and supplies, net 1,604 1,649
Mill and leach stockpiles 1,030 1,143
Product 1,176 1,281
Other current assets 517 655
Total current assets 7,155 7,915
Property, plant, equipment and mine development costs, net 29,936 29,584
Long-term mill and leach stockpiles 1,446 1,425
Other assets 1,693 1,885
Total assets 40,230 40,809
Current liabilities:    
Accounts payable and accrued liabilities 2,471 2,576
Current portion of environmental and asset retirement obligations 298 436
Long-term Debt, Current Maturities 90 5
Accrued income taxes 47 119
Dividends Payable, Current 0 73
Total current liabilities 2,906 3,209
Long-term debt, less current portion 9,824 9,821
Deferred Income Tax Liabilities, Net 4,180 4,210
Environmental and asset retirement obligations, less current portion 3,767 3,630
Other liabilities 2,398 2,491
Total liabilities 23,075 23,361
Stockholders’ equity:    
Common stock 158 158
Capital in excess of par value 25,905 25,830
Accumulated deficit (12,718) (12,280)
Accumulated other comprehensive loss (652) (676)
Common stock held in treasury (3,739) (3,734)
Total stockholders’ equity 8,954 9,298
Noncontrolling interests 8,201 8,150
Total equity 17,155 17,448
Total liabilities and equity $ 40,230 $ 40,809
v3.20.2
Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Revenues $ 3,054 $ 3,546 $ 5,852 $ 7,338
Cost of sales:        
Production and delivery 2,394 3,005 4,939 5,929
Depreciation, depletion and amortization 358 352 699 699
Metals inventory adjustments (139) 2 83 59
Total cost of sales 2,613 3,359 5,721 6,687
Selling, general and administrative expenses 91 92 201 199
Mining exploration and research expenses 18 31 34 58
Environmental obligations and shutdown costs 11 23 37 65
Net loss (gain) on sales of assets 0 8 11 (25)
Total costs and expenses 2,733 3,513 6,004 6,984
Operating income (loss) 321 33 (152) 354
Interest expense, net (115) (132) (242) (278)
Net loss on early extinguishment of debt (9) 0 (41) (6)
Other income, net 20 5 40 19
Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings 217 (94) (395) 89
(Provision for) benefit from income taxes (96) 15 (36) (90)
Equity in affiliated companies’ net earnings 3 5 6 2
Net income (loss) from continuing operations 124 (74) (425) 1
Net gain from discontinued operations 0 0 0 1
Net income 124 (74) (425) 2
Net (income) loss attributable to noncontrolling interests:        
Continuing operations (71) 2 (13) (43)
Net income (loss) attributable to common stockholders $ 53 $ (72) $ (438) $ (41)
Earnings Per Share, Basic and Diluted [Abstract]        
Income (Loss) from Continuing Operations, Per Basic and Diluted Share $ 0.03 $ (0.05) $ (0.30) $ (0.03)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic and Diluted Share 0 0 0 0
Earnings Per Share, Basic and Diluted $ 0.03 $ (0.05) $ (0.30) $ (0.03)
Basic weighted-average shares of common stock outstanding 1,453 1,451 1,453 1,451
Diluted weighted-average shares of common shares outstanding 1,458 1,451 1,453 1,451
Dividends declared per share of common stock (in dollars per share) $ 0 $ 0.05 $ 0 $ 0.10
v3.20.2
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 124 $ (74) $ (425) $ 2
Defined benefit plans:        
Amortization of unrecognized amounts included in net periodic benefit costs 12 13 24 24
Foreign exchange gains (losses) 4 0 (1) 0
Other comprehensive income 16 13 23 24
Total comprehensive income (loss) 140 (61) (402) 26
Total comprehensive (income) loss attributable to noncontrolling interests (71) 1 (12) (44)
Total comprehensive income (loss) $ 69 $ (60) $ (414) $ (18)
v3.20.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Metals inventory adjustments $ 83 $ 59
Cash flow from operating activities:    
Net income (loss) (425) 2
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation, depletion and amortization 699 699
Metals inventory adjustments   59
Gain (Loss) on Disposition of Assets (11) 25
Stock-based compensation 43 40
Net charges for environmental and asset retirement obligations, including accretion 112 109
Payments for environmental and asset retirement obligations (119) (100)
Net charges for defined pension and postretirement plans 45 53
Pension plan contributions (29) (33)
Net loss on early extinguishment of debt 41 6
Deferred income taxes (28) 20
Other, net (46) 40
Changes in working capital and other:    
Accounts receivable 83 256
Inventories 168 254
Other current assets (4) (26)
Accounts payable and accrued liabilities (73) 9
Accrued income taxes and timing of other tax payments (33) (245)
Net cash provided by operating activities 453 1,088
Cash flow from investing activities:    
Capital expenditures (1,137) (1,251)
Proceeds from Sale of Other Assets, Investing Activities 116 94
Other, net (5) (10)
Net cash used in investing activities (1,026) (1,167)
Cash flow from financing activities:    
Proceeds from debt 1,585 328
Repayments of debt (1,527) (1,563)
Cash dividends and distributions paid:    
Common stock (73) (146)
Noncontrolling interests 0 (79)
Contributions from noncontrolling interests 74 100
Stock-based awards net payments (4) (6)
Payments of Financing Costs (31) (4)
Net cash provided by (used in) financing activities 24 (1,370)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect (549) (1,449)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 2,278 4,455
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period 1,729 3,006
North America Copper Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (332) (417)
South America Mines Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (125) (108)
Grasberg Segment [Member]    
Cash flow from investing activities:    
Capital expenditures (634) (658)
Molybdenum    
Cash flow from investing activities:    
Capital expenditures (11) (6)
Other Segments [Member]    
Cash flow from investing activities:    
Capital expenditures (35) (62)
Surface Water Taxes, Papua, Indonesia [Member]    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Charges for Cerro Verde royalty dispute 0 28
Cerro Verde Royalty Dispute    
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Charges for Cerro Verde royalty dispute 15 28
Payments for Cerro Verde royalty dispute $ (90) $ (86)
v3.20.2
Consolidated Statement of Equity (Unaudited) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital in Excess of Par Value
Accumulated Deficit
AOCI Attributable to Parent [Member]
Common Stock Held in Treasury
Total Stockholder's Equity
Noncontrolling Interests
Balance (in shares) at Dec. 31, 2018   1,579       130    
Balance at Dec. 31, 2018 $ 17,892 $ 158 $ 26,013 $ (12,041) $ (605) $ (3,727) $ 9,798 $ 8,094
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards (in shares) 3         1    
Exercised and issued stock-based awards $ 1   1       1  
Stock-based compensation, including the tender of shares 26   33     $ (7) 26 0
Contributions from noncontrolling interest 100   49       49 51
Dividends (216)   (146)       (146) (70)
Noncontrolling Interest, Period Increase (Decrease) (12)   (1)       (1) (11)
Net loss attributable to common stockholders (41)     (41)     (41)  
Net income (loss) attributable to noncontrolling interests 43             43
Other comprehensive income 24       23   23 1
Balance (in shares) at Jun. 30, 2019   1,582       131    
Balance at Jun. 30, 2019 17,817 $ 158 25,949 (12,082) (582) $ (3,734) 9,709 8,108
Balance (in shares) at Mar. 31, 2019   1,582       131    
Balance at Mar. 31, 2019 17,841 $ 158 25,963 (12,010) (594) $ (3,734) 9,783 8,058
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards (in shares)           0    
Stock-based compensation, including the tender of shares 10   10     $ 0 10  
Contributions from noncontrolling interest 100   49       49 51
Dividends (73)   (73)       (73) 0
Net loss attributable to common stockholders (72)     (72)     (72)  
Net income (loss) attributable to noncontrolling interests (2)             (2)
Other comprehensive income 13       12   12 1
Balance (in shares) at Jun. 30, 2019   1,582       131    
Balance at Jun. 30, 2019 17,817 $ 158 25,949 (12,082) (582) $ (3,734) 9,709 8,108
Balance (in shares) at Dec. 31, 2019   1,582       131    
Balance at Dec. 31, 2019 $ 17,448 $ 158 25,830 (12,280) (676) $ (3,734) 9,298 8,150
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Exercised and issued stock-based awards (in shares) 1              
Exercised and issued stock-based awards $ 1   1       1  
Stock-based compensation, including the tender of shares 34   38     $ (5) 33 1
Contributions from noncontrolling interest 74   36       36 38
Net loss attributable to common stockholders (438)     (438)     (438)  
Net income (loss) attributable to noncontrolling interests 13             13
Other comprehensive income 23       24   24 (1)
Balance (in shares) at Jun. 30, 2020   1,583       131    
Balance at Jun. 30, 2020 17,155 $ 158 25,905 (12,718) (652) $ (3,739) 8,954 8,201
Balance (in shares) at Mar. 31, 2020   1,583       131    
Balance at Mar. 31, 2020 16,963 $ 158 25,875 (12,771) (668) $ (3,739) 8,855 8,108
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock-based compensation, including the tender of shares 10   9     $ 0 9 1
Contributions from noncontrolling interest 42   21       21 21
Net loss attributable to common stockholders 53     53     53  
Net income (loss) attributable to noncontrolling interests 71             71
Other comprehensive income 16       16   16 0
Balance (in shares) at Jun. 30, 2020   1,583       131    
Balance at Jun. 30, 2020 $ 17,155 $ 158 $ 25,905 $ (12,718) $ (652) $ (3,739) $ 8,954 $ 8,201
v3.20.2
General Information (Unaudited)
 6 Months Ended
Jun. 30, 2020
General Information [Abstract]  
General Information GENERAL INFORMATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2019 (2019 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the six-month period ended June 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.

Operations Update. In April 2020, FCX announced revised operating plans in response to the global COVID-19 pandemic and resulting negative impact on the global economy. FCX proactively implemented operating protocols at each of its operating sites to contain and mitigate the risk of spread of COVID-19. FCX also continues to work closely with communities where it operates across the globe and has provided monetary support and in-kind contributions of medical supplies, equipment and food.

FCX achieved significant progress at Cerro Verde during second-quarter 2020 to restore operations following COVID-19 restrictions imposed by the Peruvian government in March 2020. Strict health protocols have been implemented and a plan for Cerro Verde to restore operations was approved by the Peruvian government in second-quarter 2020. FCX is currently assessing options and future timing of restart of the Chino mine in New Mexico, which will take into account public health and market conditions.

During second-quarter 2020, FCX implemented a series of actions to reduce administrative and centralized support costs in conjunction with its April 2020 revised operating plans. Cost savings initiatives included a temporary reduction in certain employee benefits, the initiation of furloughs and an employee separation program, and reductions in third party service costs, facilities costs, travel and other expenses.

FCX recognized charges totaling $196 million in second-quarter 2020 and $224 million for the first six months of 2020 associated with the COVID-19 pandemic and revised operating plans, including employee separation charges. These charges, none of which were capitalized into inventory, were recorded to production and delivery ($153 million in second-quarter 2020 and $173 million for the first six months of 2020); depreciation, depletion and amortization ($21 million in second-quarter 2020 and $29 million for the first six months of 2020); selling, general and administrative ($15 million for each of the second quarter and first six months of 2020) and mining exploration and research expense ($7 million for each of the second quarter and first six months of 2020).
v3.20.2
Earnings per Share (Unaudited) Earnings per Share (Notes)
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE

FCX calculates its basic net income (loss) per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income (loss) per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive.

Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2020
 
2019
 
2020
 
2019
 
Net income (loss) from continuing operations
$
124

 
$
(74
)
 
$
(425
)
 
$
1

 
Net (income) loss from continuing operations attributable to noncontrolling interests
(71
)
 
2

 
(13
)
 
(43
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(3
)
 
Net income (loss) from continuing operations attributable to common stockholders
50

 
(75
)
 
(441
)
 
(45
)
 
 
 
 
 
 
 
 
 
 
Net income from discontinued operations attributable to common stockholders
—

 
—

 
—

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
50

 
$
(75
)
 
$
(441
)
 
$
(44
)
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,453

 
1,451

 
1,453

 
1,451

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)
5

 
—

a 
—

a 
—

a 
Diluted weighted-average shares of common stock outstanding
1,458

 
1,451

 
1,453

 
1,451

 
 
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
0.03

 
$
(0.05
)
 
$
(0.30
)
 
$
(0.03
)
 
Discontinued operations
—

 
—

 
—

 
—

 
 
$
0.03

 
$
(0.05
)
 
$
(0.30
)
 
$
(0.03
)
 

a.
Excludes approximately 10 million shares in second-quarter 2019, 10 million shares for the first six months of 2020 and 12 million shares for the first six months of 2019 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income (loss) per share of common stock. Stock options for 38 million shares of common stock in second-quarter 2020, 43 million shares of common stock in second-quarter 2019, 39 million shares of common stock for first six months of 2020 and 41 million shares of common stock for the first six months of 2019 were excluded.
v3.20.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited)
 6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Inventories, Including Long-Term Mill and Leach Stockpiles INVENTORIES, INCLUDING LONG-TERM MILL AND LEACH STOCKPILES

The components of inventories follow (in millions):
 
June 30,
2020
 
December 31, 2019
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,604

 
$
1,649

 
 
 
 
 
 
Mill stockpiles
$
166

 
$
220

 
Leach stockpiles
864

 
923

 
Total current mill and leach stockpiles
$
1,030

 
$
1,143

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
287

 
$
318

 
Work-in-process
110

 
124

 
Finished goods
779

 
839

 
Total product
$
1,176

 
$
1,281

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
207

 
$
181

 
Leach stockpiles
1,239

 
1,244

 
Total long-term mill and leach stockpilesb
$
1,446

 
$
1,425

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $31 million at June 30, 2020, and $24 million at December 31, 2019.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.

During second-quarter 2020, FCX recorded net favorable adjustments to increase long-term metals inventory carrying values by $139 million, including an increase to long-term copper inventories ($144 million), primarily related to the reversal of net realizable value adjustments recorded on long-term copper inventories in first-quarter 2020 because of higher copper market prices at June 30, 2020, and a decrease to long-term molybdenum inventories ($5 million) because of lower molybdenum market prices at June 30, 2020. Net realizable value inventory adjustments to decrease metals inventory carrying values totaled $83 million for the first six months of 2020 associated with lower market prices for copper ($61 million) and molybdenum ($22 million). Net realizable value inventory adjustments to decrease metals inventory carrying values totaled $2 million in second-quarter 2019 and $59 million for the first six months of 2019, primarily for cobalt inventories because of lower cobalt market prices (refer to Note 9 for metals inventory adjustments by business segment).
v3.20.2
Income Taxes (Unaudited)
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES

Geographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Six Months Ended
 
 
June 30,
 
 
2020
 
2019
 
U.S. operations
$
58

a 
$
20

b 
International operations
(94
)
 
(110
)
 
Total
$
(36
)
 
$
(90
)
 

a.
Includes a tax credit of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.
b.
Includes a tax credit of $18 million primarily associated with state law changes.
FCX’s consolidated effective income tax rate was (9) percent for the first six months of 2020 and 101 percent for the first six months of 2019. Because FCX's U.S. jurisdiction generated net losses in the first six months of 2020 and 2019 that will not result in a realized tax benefit, applicable accounting rules require FCX to adjust its estimated annual effective tax rate to exclude the impact of U.S. net losses. Variations in the relative proportions of jurisdictional income result in fluctuations to FCX’s consolidated effective income tax rate.

In connection with the negative impacts of the COVID-19 pandemic on the global economy, governments throughout the world are announcing measures that are intended to provide tax and other financial relief. Such measures include the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law by President Trump on March 27, 2020. None of these measures, including the CARES Act, resulted in material impacts to FCX’s provision for income taxes for the six months ended June 30, 2020. Some of these measures will provide FCX with the opportunity to accelerate the timing of cash collections, primarily those associated with the U.S. alternative minimum tax credit refunds. FCX collected $221 million of U.S. alternative minimum tax credit refunds in July 2020, and expects to collect the outstanding balance ($47 million) within the next 12 months. FCX continues to evaluate income tax accounting considerations of additional measures as they develop, including any impact on its measurement of existing deferred tax assets and deferred tax liabilities. FCX will recognize any impact from COVID-19 related changes to tax laws in the period in which the new legislation is enacted.
v3.20.2
Debt and Equity
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Debt and Equity DEBT AND EQUITY

The components of debt follow (in millions):
 
 
June 30,
2020
 
December 31, 2019
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,621

 
$
8,602

Issued by Freeport Minerals Corporation (FMC)
 
357

 
357

Cerro Verde credit facility
 
827

 
826

Other
 
109

 
41

Total debt
 
9,914

 
9,826

Less current portion of debt
 
(90
)
 
(5
)
Long-term debt
 
$
9,824

 
$
9,821



Revolving Credit Facility. At June 30, 2020, FCX had no borrowings outstanding and $13 million in letters of credit issued under its revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023.

In June 2020, FCX, PT-FI and Freeport-McMoRan Oil & Gas LLC (FM O&G LLC) amended the $3.5 billion unsecured revolving credit facility. The key changes under the amendment include (i) a suspension of the total leverage ratio through June 30, 2021, followed by a limit of 5.25x beginning with the quarter ending September 30, 2021, and stepping down to 3.75x beginning January 1, 2022; and (ii) a reduction in the interest expense coverage ratio to a minimum of 2.00x through December 31, 2021, reverting to 2.25x beginning January 1, 2022. FCX also agreed to a minimum liquidity covenant of $1 billion (consisting of consolidated unrestricted cash and availability under the revolving credit facility) applicable to each quarter through June 30, 2021, and additional restrictions on priority debt and liens, and the payment of common stock dividends through December 31, 2021. FCX retained the option to revert to the previous covenant requirements if it is determined additional flexibility is no longer needed. At June 30, 2020, FCX was in compliance with its revolving credit facility covenants.

Senior Notes.  On March 4, 2020, FCX completed the sale of $700 million of 4.125% Senior Notes due 2028 and $600 million of 4.25% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.29 billion. Interest on these senior notes is payable semiannually on March 1 and September 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used a portion of the net proceeds from this offering to purchase a portion of its 4.00% Senior Notes due 2021 and its 3.55% Senior Notes due 2022 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. On April 3, 2020, FCX used the remaining net proceeds to fund the make-whole redemption of all of its remaining 4.00% Senior Notes due 2021 and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with the transaction.
As a result of these transactions, FCX recorded a loss on early extinguishment of debt of $9 million in second-quarter 2020 and $41 million for the six months ended June 30, 2020.

On July 27, 2020, FCX completed the sale of $650 million of 4.375% Senior Notes due 2028 and $850 million of 4.625% Senior Notes due 2030 for proceeds, net of underwriting fees, totaling $1.49 billion. Interest on these senior notes is payable semiannually on February 1 and August 1 of each year. These senior notes rank equally with FCX’s other existing and future unsecured and unsubordinated indebtedness. FCX used $1.3 billion of the net proceeds from this offering to purchase a portion of its 3.55% Senior Notes due 2022, 3.875% Senior Notes due 2023 and 4.55% Senior Notes due 2024, in connection with the early settlement of its previously announced tender offers, and the payment of accrued and unpaid interest, premiums, fees and expenses in connection with these transactions. Depending on the final tender results, FCX may use all or a portion of the remaining net proceeds from this offering to purchase more of certain existing senior notes in the tender offers and expects the final settlement of the tender offers, if any, to occur on August 11, 2020. Any net proceeds not used for the tender offers will be used for general corporate purposes, which may include repurchases or redemptions of FCX’s notes. FCX expects to record a loss on early extinguishment of debt of approximately $60 million in third-quarter 2020 related to the early settlement of the tender offers.

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $159 million in second-quarter 2020, $167 million in second-quarter 2019, $330 million for the first six months of 2020 and $345 million for the first six months of 2019. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $44 million in second-quarter 2020, $35 million in second-quarter 2019, $88 million for the first six months of 2020 and $67 million for the first six months of 2019.

Common Stock.  In March 2020, in response to the COVID-19 pandemic and resulting global economic uncertainties, the FCX Board of Directors (the Board) suspended FCX’s quarterly cash dividend of $0.05 per share previously planned for May 1, 2020. Under current market and economic conditions, the Board does not expect to declare common stock dividends during 2020. The declaration and payment of future dividends is at the discretion of the Board and will be assessed on an ongoing basis, taking into account FCX’s financial results, cash requirements, future prospects, global economic conditions and other factors deemed relevant by the Board. As noted above, in accordance with the June 2020 amendment to the revolving credit facility, FCX is restricted from declaring or paying common stock dividends through December 31, 2021, unless FCX, at its option, reverts to the previous covenant requirements which would also eliminate the restriction on the declaration or payment of common stock dividends.
v3.20.2
Financial Instruments (Unaudited)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS

FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes, foreign currency exchange rates and interest rates.

Commodity Contracts.  From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.

In April 2020, FCX entered into forward sales contracts for 150 million pounds of copper for settlement in May and June of 2020. The forward sales provided for fixed pricing of $2.34 per pound of copper on approximately 60 percent of North America's sales volumes for May and June 2020. These contracts resulted in hedging losses totaling $24 million in second-quarter 2020 and for the six months ended June 30, 2020. There were no remaining forward sales contracts as of June 30, 2020.

A discussion of FCX’s other derivative contracts and programs follow.

Derivatives Designated as Hedging Instruments – Fair Value Hedges
Copper Futures and Swap Contracts. Some of FCX’s U.S. copper rod customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while
the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during the six-month periods ended June 30, 2020 and 2019. At June 30, 2020, FCX held copper futures and swap contracts that qualified for hedge accounting for 54 million pounds at an average contract price of $2.50 per pound, with maturities through December 2021.

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 the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized gains (losses):
 
 
 
 
 
 
 
Derivative financial instruments
$
40

 
$
(13
)
 
$
7

 
$
5

Hedged item – firm sales commitments
(40
)
 
13

 
(7
)
 
(5
)
 
 
 
 
 
 
 
 
Realized losses:
 
 
 
 
 
 
 
Matured derivative financial instruments
(8
)
 
(3
)
 
(17
)
 
(1
)


Derivatives Not Designated as Hedging Instruments
Embedded Derivatives. Certain FCX concentrate, copper cathode and gold sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper price or the COMEX copper price and the London Bullion Market Association (LBMA) gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement. FCX records revenues and invoices customers at the time of shipment based on then-current LME or COMEX copper prices and the LBMA gold prices as specified in the contracts, which results in an embedded derivative (i.e., a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate or cathode at the then-current LME or COMEX copper price, and the LBMA gold price. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate or cathode sales agreements since these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME or COMEX copper forward prices and the adjusted LBMA gold prices, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.

A summary of FCX’s embedded derivatives at June 30, 2020, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
314

 
$
2.50

 
$
2.73

 
November 2020
Gold (thousands of ounces)
87

 
1,725

 
1,779

 
August 2020
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
116

 
2.48

 
2.73

 
September 2020


Copper Forward Contracts. Atlantic Copper, FCX’s wholly owned smelting and refining unit in Spain, enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in cost of sales. At June 30, 2020, Atlantic Copper held net copper forward purchase contracts for 16 million pounds at an average contract price of $2.62 per pound, with maturities through August 2020.

Summary of Gains (Losses). 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
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
162

 
$
(122
)
 
$
(76
)
 
$
—

Gold and other metals
17

 
13

 
24

 
11

Copper forward contractsb
(4
)
 
(4
)
 
19

 
(3
)
a.
Amounts recorded in revenues. 
b.
Amounts recorded in cost of sales as production and delivery costs.

Unsettled Derivative Financial Instruments
A summary of the fair values of unsettled commodity derivative financial instruments follows (in millions):
 
 
June 30,
2020
 
December 31, 2019
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
17

 
$
6

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
77

 
68

Total derivative assets
 
$
94

 
$
74

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
6

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
28

 
20

Copper forward contracts
 
—

 
1

Total derivative liabilities
 
$
34

 
$
21



FCX’s commodity contracts have netting arrangements with counterparties with which the right of offset exists, and it is FCX’s policy to generally offset balances by contract on its balance sheet. FCX’s embedded derivatives on provisional sales/purchase contracts are netted with the corresponding outstanding receivable/payable balances.
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
June 30,
2020
 
December 31, 2019
 
June 30,
2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
77

 
$
68

 
$
28

 
$
20

Copper derivatives
 
17

 
6

 
6

 
1

 
 
94

 
74

 
34

 
21

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Copper derivatives
 
4

 
—

 
4

 
—

 
 
4

 
—

 
4

 
—

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
77

 
68

 
28

 
20

Copper derivatives
 
13

 
6

 
2

 
1

 
 
$
90

 
$
74

 
$
30

 
$
21

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
76

 
$
66

 
$
2

 
$
—

Other current assets
 
13

 
6

 
—

 
—

Accounts payable and accrued liabilities
 
1

 
2

 
28

 
21

 
 
$
90

 
$
74

 
$
30

 
$
21



Credit Risk.  FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. FCX does not anticipate that any of the counterparties it deals with will default on their obligations. As of June 30, 2020, the maximum amount of credit exposure associated with derivative transactions was $88 million.

Other Financial Instruments.  Other financial instruments include cash and cash equivalents, restricted cash, restricted cash equivalents, accounts receivable, investment securities, legally restricted funds, accounts payable and accrued liabilities, dividends payable and long-term debt. The carrying value for cash and cash equivalents (which included time deposits of $0.3 billion at June 30, 2020, and $1.3 billion at December 31, 2019), restricted cash, restricted cash equivalents, accounts receivable, accounts payable and accrued liabilities, and dividends payable approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 7 for the fair values of investment securities, legally restricted funds and long-term debt).

In addition, as of June 30, 2020, FCX has contingent consideration assets related to the sales of certain oil and gas properties (refer to Note 7 for the related fair values).

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents. 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):
 
 
June 30,
2020
 
December 31, 2019
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
1,465

 
$
2,020

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
132

 
100

Other assets
 
132

 
158

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
1,729

 
$
2,278
v3.20.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2020
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 during second-quarter 2020.

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 Gulf of Mexico (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 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, 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
5

 
5

 
—

 
5

 
—

 
—

Total
34

 
34

 
29

 
5

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
63

 
63

 
63

 
—

 
—

 
—

Corporate bonds
45

 
45

 
—

 
—

 
45

 
—

Government mortgage-backed securities
40

 
40

 
—

 
—

 
40

 
—

Government bonds and notes
32

 
32

 
—

 
—

 
32

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Money market funds
9

 
9

 
—

 
9

 
—

 
—

Collateralized mortgage-backed securities
4

 
4

 
—

 
—

 
4

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
208

 
208

 
63

 
9

 
136

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
77

 
77

 
—

 
—

 
77

 
—

Copper futures and swap contractsc
13

 
13

 
—

 
11

 
2

 
—

Copper forward contractsc
4

 
4

 
—

 
2

 
2

 
—

       Total
94

 
94

 
—

 
13

 
81

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
115

 
78

 
—

 
—

 
—

 
78

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
28

 
28

 
—

 
—

 
28

 
—

Copper forward contracts
6

 
6

 
—

 
2

 
4

 
—

Total
34

 
34

 
—

 
2

 
32

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,914

 
10,013

 
—

 
—

 
10,013

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
At December 31, 2019
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
27

 
$
27

 
$
27

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
31

 
31

 
27

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
59

 
59

 
59

 
—

 
—

 
—

Government mortgage-backed securities
43

 
43

 
—

 
—

 
43

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
33

 
33

 
—

 
—

 
33

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
3

 
3

 
—

 
3

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
196

 
196

 
59

 
3

 
134

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
68

 
68

 
—

 
—

 
68

 
—

Copper futures and swap contractsc
6

 
6

 
—

 
5

 
1

 
—

Contingent consideration for the sale of onshore
 
 
 
 
 
 
 
 
 
 
 
   California oil and gas propertiesa
11

 
11

 
—

 
—

 
11

 
—

Total
85

 
85

 
—

 
5

 
80

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
122

 
108

 
—

 
—

 
—

 
108

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
20

 
20

 
—

 
—

 
20

 
—

Copper forward contracts
1

 
1

 
—

 
—

 
1

 
—

Total
21

 
21

 
—

 
—

 
21

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,826

 
10,239

 
—

 
—

 
10,239

 
—

 
 
 
 
 
 
 
 
 
 
 
 

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 $132 million at June 30, 2020, and $100 million at December 31, 2019, and (ii) other assets of $131 million at June 30, 2020, and $157 million at December 31, 2019, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter 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.

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 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 LBMA gold prices at each reporting date based on the month of maturity (refer to Note 6 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 6 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 2016, FCX completed the sale of its onshore California oil and gas properties, which included contingent consideration of up to $150 million, consisting of $50 million per year for 2018, 2019 and 2020 if the price of Brent crude oil averages over $70 per barrel in each of these calendar years. Based on current and forecasted oil prices for the remainder of 2020, FCX has concluded the fair value of the last tranche of this contingent consideration derivative approximates zero at June 30, 2020. The fair value of the contingent consideration derivative was $11 million (included in other assets in the consolidated balance sheets) at December 31, 2019. Future changes in the fair value of this contingent consideration derivative will continue to be recorded in operating income. Also, contingent consideration of $50 million was realized in 2018 and collected in first-quarter 2019 (included in proceeds from sales of assets in the consolidated statements of cash flows) because the average Brent crude oil price exceeded $70 per barrel for 2018. Contingent consideration of $50 million was not realized in 2019 because the average Brent crude oil price did not exceed $70 per barrel for 2019. The fair value at December 31, 2019, was calculated based on average commodity price forecasts through the applicable maturity date using a Monte-Carlo simulation model. The model used various observable inputs, including Brent crude oil forward prices, volatilities and discount rates. As a result, this contingent consideration asset was classified within Level 2 of the fair value hierarchy.

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 will be 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 third-quarter 2018. The contingent consideration included in (i) other current assets totaled $12 million at June 30, 2020, and $18 million at December 31, 2019, and (ii) other assets totaled $103 million at June 30, 2020, and $104 million at December 31, 2019. 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 net realizable value 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 June 30, 2020, as compared with those techniques used at December 31, 2019.

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 2020 follows (in millions):
Fair value at January 1, 2020
$
108

 
Net unrealized loss related to assets still held at the end of the period
(22
)
 
Settlements
(8
)
 
Fair value at June 30, 2020
$
78

 
v3.20.2
Contingencies and Commitments (Unaudited)
 6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies CONTINGENCIES AND COMMITMENTS

Litigation
There were no significant updates to previously reported legal proceedings included in Note 12 of FCX’s 2019 Form 10-K, other than the matters below, which were updated in Note 8 of FCX’s quarterly report on Form 10-Q for the quarter ended March 31, 2020.

Louisiana Parishes Coastal Erosion Cases. As previously disclosed, in September 2019, affiliates of FCX reached an agreement in principle to settle all 13 cases filed in Louisiana state courts by six south Louisiana parishes (Cameron, Jefferson, Plaquemines, St. Bernard, St. John the Baptist and Vermilion) and the parties that intervened in the litigation in support of the parishes’ claims, including the state of Louisiana, alleging that certain oil and gas exploration and production operations and sulphur mining and production operations of the FCX affiliates damaged coastal wetlands and caused significant land loss along the Louisiana coast.

The agreement in principle does not include any admission of liability by FCX or its affiliates. FCX recorded a charge in third-quarter 2019 for the initial payment of $15 million, which will be paid upon execution of the settlement agreement. The settlement agreement has been executed by the FCX affiliates and several of the Louisiana parishes. FCX expects the agreement to be executed by all parties; however, execution has been delayed by the ongoing COVID-19 pandemic. Upon execution of the settlement agreement by all parties, the FCX affiliates will be fully released and dismissed from all 13 pending cases.

Asbestos and Talc Claims. As previously disclosed, there has been a significant increase in the number of cases alleging the presence of asbestos contamination in talc-based personal care products and in cases alleging exposure to talc products that are not alleged to be contaminated with asbestos. The primary targets have been the producers of those products, but defendants in many of these cases also include talc miners. Cyprus Amax Minerals Company (CAMC), an indirect wholly owned subsidiary of FCX, and Cyprus Mines Corporation (Cyprus Mines), a wholly owned subsidiary of CAMC, are among those targets. Cyprus Mines was engaged in talc mining from 1964 until 1992 when it exited its talc business by conveying it to a third party in two related transactions. Those transactions involved (i) a transfer by Cyprus Mines of the assets of its talc business to a newly formed subsidiary that assumed all pre-sale and post-sale talc liabilities, subject to limited reservations, and (ii) a sale of the stock of that subsidiary to the third party. In 2011, the third party sold that subsidiary to Imerys Talc America (Imerys), an affiliate of Imerys S.A.

Cyprus Mines has contractual indemnification rights, subject to limited reservations, against Imerys, which has historically acknowledged those indemnification obligations, and had taken responsibility for all cases tendered to it. However, on February 13, 2019, Imerys filed for Chapter 11 bankruptcy protection, which triggered an immediate automatic stay under the federal bankruptcy code prohibiting any party from continuing or initiating litigation or asserting new claims against Imerys. As a result, Imerys is no longer defending the talc lawsuits against Cyprus Mines and CAMC. In addition, Imerys has taken the position that it alone owns, and has the sole right to access, the proceeds of the legacy insurance coverage of Cyprus Mines and CAMC for talc liabilities. In late March 2019, Cyprus Mines and CAMC challenged this position and obtained emergency relief from the bankruptcy court to gain access to the insurance until the question of ownership and contractual access can be decided in an adversary proceeding before the bankruptcy court, which was previously scheduled for March 2020, but has been put on hold.

During first-quarter 2019, in a case pending at the time Imerys filed bankruptcy, a California jury entered a $29 million verdict against Johnson & Johnson (J&J) and Cyprus Mines, of which approximately $2 million was attributed to Cyprus Mines. Taking advantage of the temporary access to the insurance authorized by the bankruptcy court, Cyprus Mines used the insurance to fully resolve the case. Cyprus Mines and the insurers also settled several other cases and secured delays or dismissals in other cases. Multiple trials previously scheduled over the first half of 2020 have been postponed because of the ongoing COVID-19 pandemic. Other cases remain
scheduled for trial in the second half of 2020, and postponed cases may be reset prior to the adversary proceeding regarding the legacy insurance, which is currently on hold.

Cyprus Mines and CAMC also have contractual indemnification rights against J&J, which J&J disputes. In June 2020, Cyprus Mines and CAMC filed a complaint in the Imerys bankruptcy case asserting that J&J was required to indemnify Cyprus Mines and CAMC for liabilities related to J&J products.

FCX believes that Cyprus Mines and CAMC each has strong defenses to legal liability and that both should have access to the legacy insurance to cover defense costs, settlements and judgments, at least until the bankruptcy court decides otherwise or the insurance is exhausted. At this time, FCX cannot estimate the range of possible loss associated with these proceedings, but it does not currently believe the amount of any such losses are material to its consolidated financial statements. However, there can be no assurance that future developments will not alter this conclusion.

Environmental
On August 5, 2020, the co-conveners of the Global Tailings Review, which included the International Council on Mining and Metals (ICMM), an industry group of which FCX is a founding member, published the first Global Industry Standard on Tailings Management (the Standard). The Standard includes 77 requirements across six key areas including the design, construction, operation and monitoring of tailings facilities, management and governance, emergency response and long-term recovery, and public disclosure. As a member of ICMM, which has endorsed the Standard, FCX will move toward implementing it and will begin undertaking an extensive, multi-year analysis of its tailings facilities to ensure conformance with the Standard. Compliance with the new Standard will require incremental future costs.

Other Matters
PT-FI and PT Smelting Export Licenses. In March 2020, PT-FI received a one-year extension of its export license through March 15, 2021, and PT Smelting (PT-FI’s 25 percent-owned smelter and refinery in Indonesia) received an extension of its anode slimes export license through March 10, 2021.

Cerro Verde Royalty Dispute. In November 2019, Cerro Verde filed a notice of intent to initiate international arbitration against the Peruvian government, which triggered a period for mandatory good faith settlement discussions. The parties were unable to find an amicable resolution and, on February 28, 2020, FCX and Cerro Verde filed international arbitration proceedings against the Peruvian government. In April 2020, SMM Cerro Verde Netherlands B.V. (SMM), another shareholder of Cerro Verde, filed a parallel arbitration proceeding under a different investment treaty against the Peruvian government.
v3.20.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Business Segment BUSINESS SEGMENTS
FCX has organized its mining operations into four primary divisions – North America copper mines, South America mining, Indonesia mining and Molybdenum mines, and operating segments that meet certain thresholds are reportable segments. Separately disclosed in the following tables are FCX’s reportable segments, which include the Morenci, Bagdad, Cerro Verde and Grasberg (Indonesia Mining) copper mines, the Rod & Refining operations and Atlantic Copper Smelting & Refining.
 
Beginning in fourth-quarter 2019, the Bagdad copper mine became a reportable segment. As a result, FCX revised its segment disclosure for the three and six months ended June 30, 2019, to conform with the current year presentation.
 
Intersegment sales between FCX’s business segments are based on terms similar to arms-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, timing of sales to unaffiliated customers and transportation premiums.

FCX defers recognizing profits on sales from its mines to other segments, including Atlantic Copper Smelting & Refining, and on 25 percent of PT-FI’s sales to PT Smelting, until final sales to third parties occur. Quarterly variations in ore grades, the timing of intercompany shipments and changes in product prices result in variability in FCX’s net deferred profits and quarterly earnings.
FCX allocates certain operating costs, expenses and capital expenditures to its operating divisions and individual segments. However, not all costs and expenses applicable to an operation are allocated. U.S. federal and state income taxes are recorded and managed at the corporate level (included in Corporate, Other & Eliminations), whereas foreign income taxes are recorded and managed at the applicable country level. In addition, most mining exploration and research activities are managed on a consolidated basis, and those costs, along with some selling, general and administrative costs, are not allocated to the operating divisions or individual segments. Accordingly, the following Financial Information by Business Segment reflects management determinations that may not be indicative of what the actual financial performance of each operating division or segment would be if it was an independent entity.

Product Revenues. FCX’s revenues attributable to the products it sold for the second quarters and first six months of 2020 and 2019 follow (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Copper:
 
 
 
 
 
 
 
Cathode
$
1,124

 
$
959

 
$
1,961

 
$
1,818

Concentrate
749

 
1,134

 
1,598

 
2,299

Rod and other refined copper products
303

 
516

 
845

 
1,023

Purchased coppera
166

 
325

 
401

 
662

Gold
341

 
305

 
611

 
696

Molybdenum
194

 
327

 
437

 
615

Otherb
115

 
218

 
272

 
495

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(75
)
 
(100
)
 
(155
)
 
(205
)
Royalty expensec
(26
)
 
(19
)
 
(46
)
 
(49
)
Export dutiesd
(16
)
 
(10
)
 
(20
)
 
(27
)
Revenues from contracts with customers
2,875

 
3,655

 
5,904

 
7,327

Embedded derivativese
179

 
(109
)
 
(52
)
 
11

Total consolidated revenues
$
3,054

 
$
3,546

 
$
5,852

 
$
7,338

a.
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.
Primarily includes revenues associated with cobalt and silver.
c.
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d.
Reflects PT-FI export duties.
e.
Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
Financial Information by Business Segment
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Bagdad
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Three Months Ended June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
20

 
$
—

 
$
16

 
$
36

 
$
471

 
$
106

 
$
577

 
$
683

a 
$
—

 
$
1,106

 
$
464

 
$
188

b 
$
3,054

Intersegment
447

 
166

 
339

 
952

c 
52

 
—

 
52

 
35

 
58

 
8

 
2

 
(1,107
)
 
—

Production and delivery
348

 
118

 
321

 
787

 
334

 
104

 
438

 
378

 
61

 
1,138

 
446

 
(854
)
 
2,394

Depreciation, depletion and amortization
43

 
13

 
33

 
89

 
88

 
14

 
102

 
124

 
15

 
6

 
7

 
15

 
358

Metals inventory adjustments
—

 
—

 
(89
)
 
(89
)
 
—

 
(57
)
 
(57
)
 
—

 
1

 
1

 
—

 
5

 
(139
)
Selling, general and administrative expenses
—

 
—

 
1

 
1

 
1

 
—

 
1

 
28

 
—

 
—

 
5

 
56

 
91

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
17

 
18

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
11

 
11

Operating income (loss)
76

 
35

 
88

 
199

 
100

 
45

 
145

 
188

 
(19
)
 
(31
)
 
8

 
(169
)
 
321

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
—

 
1

 
20

 
—

 
20

 
1

 
—

 
—

 
1

 
92

 
115

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
29

 
16

 
45

 
78

 
—

 
—

 
1

 
(28
)
 
96

Total assets at June 30, 2020
2,697

 
794

 
4,404

 
7,895

 
8,515

 
1,631

 
10,146

 
16,848

 
1,777

 
259

 
726

 
2,579

 
40,230

Capital expenditures
27

 
12

 
109

 
148

 
31

 
20

 
51

 
308

 
4

 
2

 
5

 
9

 
527

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
16

 
$
—

 
$
69

 
$
85

 
$
562

 
$
128

 
$
690

 
$
583

a 
$
—

 
$
1,171

 
$
546

 
$
471

b 
$
3,546

Intersegment
491

 
204

 
340

 
1,035

 
71

 
—

 
71

 
(1
)
 
109

 
4

 
—

 
(1,218
)
 
—

Production and delivery
348

 
128

 
348

 
824

 
455

 
126

 
581

 
554

 
78

 
1,171

 
515

 
(718
)
 
3,005

Depreciation, depletion and amortization
43

 
11

 
33

 
87

 
101

 
18

 
119

 
99

 
18

 
3

 
7

 
19

 
352

Metals inventory adjustments
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
2

Selling, general and administrative expenses
—

 
—

 
—

 
—

 
2

 
—

 
2

 
30

 
—

 
—

 
5

 
55

 
92

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
30

 
31

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23

 
23

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Operating income (loss)
116

 
65

 
26

 
207

 
75

 
(16
)
 
59

 
(101
)
 
13

 
1

 
19

 
(165
)
 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
—

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
6

 
99

 
132

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
20

 
(9
)
 
11

 
(35
)
 
—

 
—

 
2

 
7

 
(15
)
Total assets at June 30, 2019
2,917

 
742

 
4,179

 
7,838

 
8,571

 
1,699

 
10,270

 
16,261

 
1,792

 
250

 
764

 
3,911

 
41,086

Capital expenditures
49

 
33

 
125

 
207

 
43

 
4

 
47

 
339

 
2

 
1

 
5

 
28

 
629

a.
Includes PT-FI's sales to PT Smelting totaling $433 million in second-quarter 2020 and $470 million in second-quarter 2019.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
c.
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.


(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
Other
 
 
 
Cerro
 
Other
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Bagdad
 
Mines
 
Total
 
Verde
 
Mines
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Six Months Ended June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
22

 
$
—

 
$
23

 
$
45

 
$
847

 
$
204

 
$
1,051

 
$
1,128

a 
$
—

 
$
2,221

 
$
893

 
$
514

b 
$
5,852

Intersegment
889

 
325

 
714

 
1,928

c 
90

 
—

 
90

 
35

 
129

 
16

 
13

 
(2,211
)
 
—

Production and delivery
697

 
244

 
706

 
1,647

 
758

 
214

 
972

 
721

 
127

 
2,257

 
857

 
(1,642
)
 
4,939

Depreciation, depletion and amortization
87

 
27

 
67

 
181

 
181

 
29

 
210

 
225

 
31

 
8

 
14

 
30

 
699

Metals inventory adjustments

4

 
—

 
52

 
56

 
—

 
3

 
3

 
—

 
5

 
1

 
—

 
18

 
83

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
3

 
—

 
3

 
56

 
—

 
—

 
10

 
130

 
201

Mining exploration and research expenses
—

 
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
32

 
34

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
36

 
37

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
11

 
11

Operating income (loss)
122

 
54

 
(91
)
 
85

 
(5
)
 
(42
)
 
(47
)
 
161

 
(34
)
 
(30
)
 
25

 
(312
)
 
(152
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
—

 
2

 
48

 
—

 
48

 
2

 
—

 
—

 
4

 
186

 
242

(Benefit from) provision for income taxes
—

 
—

 
—

 
—

 
(23
)
 
(10
)
 
(33
)
 
90

 
—

 
—

 
1

 
(22
)
 
36

Capital expenditures
71

 
37

 
224

 
332

 
90

 
35

 
125

 
634

 
11

 
4

 
11

 
20

 
1,137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
—

 
$
164

 
$
192

 
$
1,289

 
$
226

 
$
1,515

 
$
1,288

a 
$
—

 
$
2,299

 
$
1,117

 
$
927

b 
$
7,338

Intersegment
949

 
382

 
631

 
1,962

 
197

 
—

 
197

 
57

 
200

 
10

 
5

 
(2,431
)
 
—

Production and delivery
643

 
248

 
676

 
1,567

 
894

 
226

 
1,120

 
1,110

 
149

 
2,304

 
1,067

 
(1,388
)
 
5,929

Depreciation, depletion and amortization
83

 
21

 
66

 
170

 
201

 
32

 
233

 
204

 
34

 
5

 
14

 
39

 
699

Metals inventory adjustments

—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
58

 
59

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
4

 
—

 
4

 
60

 
—

 
—

 
10

 
123

 
199

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
57

 
58

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
65

 
65

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(25
)
 
(25
)
Operating income (loss)
250

 
113

 
50

 
413

 
387

 
(32
)
 
355

 
(29
)
 
17

 
—

 
31

 
(433
)
 
354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
—

 
2

 
54

 
—

 
54

 
1

 
—

 
—

 
12

 
209

 
278

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
130

 
(14
)
 
116

 
(9
)
 
—

 
—

 
3

 
(20
)
 
90

Capital expenditures
111

 
58

 
248

 
417

 
99

 
9

 
108

 
658

 
6

 
2

 
9

 
51

 
1,251

a.
Includes PT-FI's sales to PT Smelting totaling $813 million for the first six months of 2020 and $879 million for the first six months of 2019.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
c.
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
v3.20.2
New Accounting Standard
 6 Months Ended
Jun. 30, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Standards NEW ACCOUNTING STANDARD

Financial Instruments. In June 2016, the Financial Accounting Standards Board issued an Accounting Standards Update (ASU) that requires entities to estimate all expected credit losses for most financial assets held at the reporting date based on an expected loss model, which requires consideration of historical experience, current conditions, and reasonable and supportable forecasts. FCX adopted this ASU effective January 1, 2020, and the adoption of this ASU did not have a material impact on its consolidated financial statements.
v3.20.2
Subsequent Events (Unaudited)
 6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS

FCX evaluated events after June 30, 2020, and through the date the consolidated financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.
v3.20.2
Earnings per Share (Unaudited) Earnings per Share (Tables)
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Reconciliation of net income (loss) and weighted-average shares of common stock outstanding
Reconciliations of net income (loss) and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income (loss) per share follow (in millions, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2020
 
2019
 
2020
 
2019
 
Net income (loss) from continuing operations
$
124

 
$
(74
)
 
$
(425
)
 
$
1

 
Net (income) loss from continuing operations attributable to noncontrolling interests
(71
)
 
2

 
(13
)
 
(43
)
 
Undistributed earnings allocated to participating securities
(3
)
 
(3
)
 
(3
)
 
(3
)
 
Net income (loss) from continuing operations attributable to common stockholders
50

 
(75
)
 
(441
)
 
(45
)
 
 
 
 
 
 
 
 
 
 
Net income from discontinued operations attributable to common stockholders
—

 
—

 
—

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
50

 
$
(75
)
 
$
(441
)
 
$
(44
)
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares of common stock outstanding
1,453

 
1,451

 
1,453

 
1,451

 
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)
5

 
—

a 
—

a 
—

a 
Diluted weighted-average shares of common stock outstanding
1,458

 
1,451

 
1,453

 
1,451

 
 
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per share attributable to common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
$
0.03

 
$
(0.05
)
 
$
(0.30
)
 
$
(0.03
)
 
Discontinued operations
—

 
—

 
—

 
—

 
 
$
0.03

 
$
(0.05
)
 
$
(0.30
)
 
$
(0.03
)
 

a.
Excludes approximately 10 million shares in second-quarter 2019, 10 million shares for the first six months of 2020 and 12 million shares for the first six months of 2019 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs that were anti-dilutive.
v3.20.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Tables)
 6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventory

The components of inventories follow (in millions):
 
June 30,
2020
 
December 31, 2019
 
Current inventories:
 
 
 
 
Total materials and supplies, neta
$
1,604

 
$
1,649

 
 
 
 
 
 
Mill stockpiles
$
166

 
$
220

 
Leach stockpiles
864

 
923

 
Total current mill and leach stockpiles
$
1,030

 
$
1,143

 
 
 
 
 
 
Raw materials (primarily concentrate)
$
287

 
$
318

 
Work-in-process
110

 
124

 
Finished goods
779

 
839

 
Total product
$
1,176

 
$
1,281

 
 
 
 
 
 
Long-term inventories:
 
 
 
 
Mill stockpiles
$
207

 
$
181

 
Leach stockpiles
1,239

 
1,244

 
Total long-term mill and leach stockpilesb
$
1,446

 
$
1,425

 

a.
Materials and supplies inventory was net of obsolescence reserves totaling $31 million at June 30, 2020, and $24 million at December 31, 2019.
b.
Estimated metals in stockpiles not expected to be recovered within the next 12 months.
v3.20.2
Income Taxes (Unaudited) (Tables)
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income before income taxes and equity in an affiliated companies' net earnings eographic sources of FCX’s benefit from (provision for) income taxes follow (in millions):
 
Six Months Ended
 
 
June 30,
 
 
2020
 
2019
 
U.S. operations
$
58

a 
$
20

b 
International operations
(94
)
 
(110
)
 
Total
$
(36
)
 
$
(90
)
 

a.
Includes a tax credit of $53 million associated with the reversal of a year-end 2019 tax charge related to the sale of FCX’s interest in the lower zone of the Timok exploration project in Serbia.
b.
Includes a tax credit of $18 million primarily associated with state law changes.
v3.20.2
Debt and Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Debt

The components of debt follow (in millions):
 
 
June 30,
2020
 
December 31, 2019
Senior notes and debentures:
 
 
 
 
Issued by FCX
 
$
8,621

 
$
8,602

Issued by Freeport Minerals Corporation (FMC)
 
357

 
357

Cerro Verde credit facility
 
827

 
826

Other
 
109

 
41

Total debt
 
9,914

 
9,826

Less current portion of debt
 
(90
)
 
(5
)
Long-term debt
 
$
9,824

 
$
9,821
v3.20.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2020
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 the unrealized gains (losses) on the related hedged item follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Copper futures and swap contracts:
 
 
 
 
 
 
 
Unrealized gains (losses):
 
 
 
 
 
 
 
Derivative financial instruments
$
40

 
$
(13
)
 
$
7

 
$
5

Hedged item – firm sales commitments
(40
)
 
13

 
(7
)
 
(5
)
 
 
 
 
 
 
 
 
Realized losses:
 
 
 
 
 
 
 
Matured derivative financial instruments
(8
)
 
(3
)
 
(17
)
 
(1
)
Schedule of Derivative Instruments
A summary of FCX’s embedded derivatives at June 30, 2020, follows:
 
Open Positions
 
Average Price
Per Unit
 
Maturities Through
 
 
Contract
 
Market
 
Embedded derivatives in provisional sales contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
314

 
$
2.50

 
$
2.73

 
November 2020
Gold (thousands of ounces)
87

 
1,725

 
1,779

 
August 2020
Embedded derivatives in provisional purchase contracts:
 
 
 
 
 
 
 
Copper (millions of pounds)
116

 
2.48

 
2.73

 
September 2020
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
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Embedded derivatives in provisional sales contracts:a
 
 
 
 
 
 
 
Copper
$
162

 
$
(122
)
 
$
(76
)
 
$
—

Gold and other metals
17

 
13

 
24

 
11

Copper forward contractsb
(4
)
 
(4
)
 
19

 
(3
)
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):
 
 
June 30,
2020
 
December 31, 2019
Commodity Derivative Assets:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
17

 
$
6

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
77

 
68

Total derivative assets
 
$
94

 
$
74

 
 
 
 
 
Commodity Derivative Liabilities:
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
Copper futures and swap contracts
 
$
6

 
$
—

Derivatives not designated as hedging instruments:
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
sales/purchase contracts
 
28

 
20

Copper forward contracts
 
—

 
1

Total derivative liabilities
 
$
34

 
$
21
Offsetting Assets
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
June 30,
2020
 
December 31, 2019
 
June 30,
2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
77

 
$
68

 
$
28

 
$
20

Copper derivatives
 
17

 
6

 
6

 
1

 
 
94

 
74

 
34

 
21

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Copper derivatives
 
4

 
—

 
4

 
—

 
 
4

 
—

 
4

 
—

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
77

 
68

 
28

 
20

Copper derivatives
 
13

 
6

 
2

 
1

 
 
$
90

 
$
74

 
$
30

 
$
21

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
76

 
$
66

 
$
2

 
$
—

Other current assets
 
13

 
6

 
—

 
—

Accounts payable and accrued liabilities
 
1

 
2

 
28

 
21

 
 
$
90

 
$
74

 
$
30

 
$
21
Offsetting Liabilities
A summary of these unsettled commodity contracts that are offset in the balance sheets follows (in millions):
 
 
Assets
 
Liabilities
 
 
June 30,
2020
 
December 31, 2019
 
June 30,
2020
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Gross amounts recognized:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
$
77

 
$
68

 
$
28

 
$
20

Copper derivatives
 
17

 
6

 
6

 
1

 
 
94

 
74

 
34

 
21

 
 
 
 
 
 
 
 
 
Less gross amounts of offset:
 
 
 
 
 
 
 
 
Copper derivatives
 
4

 
—

 
4

 
—

 
 
4

 
—

 
4

 
—

 
 
 
 
 
 
 
 
 
Net amounts presented in balance sheet:
 
 
 
 
 
 
 
 
Embedded derivatives in provisional
 
 
 
 
 
 
 
 
sales/purchase contracts
 
77

 
68

 
28

 
20

Copper derivatives
 
13

 
6

 
2

 
1

 
 
$
90

 
$
74

 
$
30

 
$
21

 
 
 
 
 
 
 
 
 
Balance sheet classification:
 
 
 
 
 
 
 
 
Trade accounts receivable
 
$
76

 
$
66

 
$
2

 
$
—

Other current assets
 
13

 
6

 
—

 
—

Accounts payable and accrued liabilities
 
1

 
2

 
28

 
21

 
 
$
90

 
$
74

 
$
30

 
$
21
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):
 
 
June 30,
2020
 
December 31, 2019
Balance sheet components:
 
 
 
 
Cash and cash equivalents
 
$
1,465

 
$
2,020

Restricted cash and restricted cash equivalents included in:
 
 
 
 
Other current assets
 
132

 
100

Other assets
 
132

 
158

Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows
 
$
1,729

 
$
2,278
v3.20.2
FAIR VALUE MEASUREMENT (Tables)
 6 Months Ended
Jun. 30, 2020
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, 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
5

 
5

 
—

 
5

 
—

 
—

Total
34

 
34

 
29

 
5

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
63

 
63

 
63

 
—

 
—

 
—

Corporate bonds
45

 
45

 
—

 
—

 
45

 
—

Government mortgage-backed securities
40

 
40

 
—

 
—

 
40

 
—

Government bonds and notes
32

 
32

 
—

 
—

 
32

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Money market funds
9

 
9

 
—

 
9

 
—

 
—

Collateralized mortgage-backed securities
4

 
4

 
—

 
—

 
4

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
208

 
208

 
63

 
9

 
136

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
77

 
77

 
—

 
—

 
77

 
—

Copper futures and swap contractsc
13

 
13

 
—

 
11

 
2

 
—

Copper forward contractsc
4

 
4

 
—

 
2

 
2

 
—

       Total
94

 
94

 
—

 
13

 
81

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
Deepwater GOM oil and gas propertiesa
115

 
78

 
—

 
—

 
—

 
78

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
28

 
28

 
—

 
—

 
28

 
—

Copper forward contracts
6

 
6

 
—

 
2

 
4

 
—

Total
34

 
34

 
—

 
2

 
32

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,914

 
10,013

 
—

 
—

 
10,013

 
—

 
 
 
 
 
 
 
 
 
 
 
 


 
At December 31, 2019
 
Carrying
 
Fair Value
 
Amount
 
Total
 
NAV
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment securities:a,b
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
$
27

 
$
27

 
$
27

 
$
—

 
$
—

 
$
—

Equity securities
4

 
4

 
—

 
4

 
—

 
—

Total
31

 
31

 
27

 
4

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Legally restricted funds:a
 
 
 
 
 
 
 
 
 
 
 
U.S. core fixed income fund
59

 
59

 
59

 
—

 
—

 
—

Government mortgage-backed securities
43

 
43

 
—

 
—

 
43

 
—

Government bonds and notes
36

 
36

 
—

 
—

 
36

 
—

Corporate bonds
33

 
33

 
—

 
—

 
33

 
—

Asset-backed securities
14

 
14

 
—

 
—

 
14

 
—

Collateralized mortgage-backed securities
7

 
7

 
—

 
—

 
7

 
—

Money market funds
3

 
3

 
—

 
3

 
—

 
—

Municipal bonds
1

 
1

 
—

 
—

 
1

 
—

Total
196

 
196

 
59

 
3

 
134

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross asset positionc
68

 
68

 
—

 
—

 
68

 
—

Copper futures and swap contractsc
6

 
6

 
—

 
5

 
1

 
—

Contingent consideration for the sale of onshore
 
 
 
 
 
 
 
 
 
 
 
   California oil and gas propertiesa
11

 
11

 
—

 
—

 
11

 
—

Total
85

 
85

 
—

 
5

 
80

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration for the sale of the
 
 
 
 
 
 
 
 
 
 
 
   Deepwater GOM oil and gas propertiesa
122

 
108

 
—

 
—

 
—

 
108

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivatives:c
 
 
 
 
 
 
 
 
 
 
 
Embedded derivatives in provisional sales/purchase contracts in a gross liability position
20

 
20

 
—

 
—

 
20

 
—

Copper forward contracts
1

 
1

 
—

 
—

 
1

 
—

Total
21

 
21

 
—

 
—

 
21

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portiond
9,826

 
10,239

 
—

 
—

 
10,239

 
—

 
 
 
 
 
 
 
 
 
 
 
 

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 $132 million at June 30, 2020, and $100 million at December 31, 2019, and (ii) other assets of $131 million at June 30, 2020, and $157 million at December 31, 2019, primarily associated with an assurance bond to support PT-FI’s commitment for the development of a new smelter 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 2020 follows (in millions):
Fair value at January 1, 2020
$
108

 
Net unrealized loss related to assets still held at the end of the period
(22
)
 
Settlements
(8
)
 
Fair value at June 30, 2020
$
78

 
v3.20.2
Business Segments (Tables)
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Revenue from External Customers by Products and Services FCX’s revenues attributable to the products it sold for the second quarters and first six months of 2020 and 2019 follow (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Copper:
 
 
 
 
 
 
 
Cathode
$
1,124

 
$
959

 
$
1,961

 
$
1,818

Concentrate
749

 
1,134

 
1,598

 
2,299

Rod and other refined copper products
303

 
516

 
845

 
1,023

Purchased coppera
166

 
325

 
401

 
662

Gold
341

 
305

 
611

 
696

Molybdenum
194

 
327

 
437

 
615

Otherb
115

 
218

 
272

 
495

Adjustments to revenues:
 
 
 
 
 
 
 
Treatment charges
(75
)
 
(100
)
 
(155
)
 
(205
)
Royalty expensec
(26
)
 
(19
)
 
(46
)
 
(49
)
Export dutiesd
(16
)
 
(10
)
 
(20
)
 
(27
)
Revenues from contracts with customers
2,875

 
3,655

 
5,904

 
7,327

Embedded derivativese
179

 
(109
)
 
(52
)
 
11

Total consolidated revenues
$
3,054

 
$
3,546

 
$
5,852

 
$
7,338

a.
FCX purchases copper cathode primarily for processing by its Rod & Refining operations.
b.
Primarily includes revenues associated with cobalt and silver.
c.
Reflects royalties on sales from PT-FI and Cerro Verde that will vary with the volume of metal sold and prices.
d.
Reflects PT-FI export duties.
e.
Refer to Note 6 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.
Schedule of financial information by business segment
Financial Information by Business Segment
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
 
 
 
 
Cerro
 
 
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Bagdad
 
Other
 
Total
 
Verde
 
Other
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Three Months Ended June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
20

 
$
—

 
$
16

 
$
36

 
$
471

 
$
106

 
$
577

 
$
683

a 
$
—

 
$
1,106

 
$
464

 
$
188

b 
$
3,054

Intersegment
447

 
166

 
339

 
952

c 
52

 
—

 
52

 
35

 
58

 
8

 
2

 
(1,107
)
 
—

Production and delivery
348

 
118

 
321

 
787

 
334

 
104

 
438

 
378

 
61

 
1,138

 
446

 
(854
)
 
2,394

Depreciation, depletion and amortization
43

 
13

 
33

 
89

 
88

 
14

 
102

 
124

 
15

 
6

 
7

 
15

 
358

Metals inventory adjustments
—

 
—

 
(89
)
 
(89
)
 
—

 
(57
)
 
(57
)
 
—

 
1

 
1

 
—

 
5

 
(139
)
Selling, general and administrative expenses
—

 
—

 
1

 
1

 
1

 
—

 
1

 
28

 
—

 
—

 
5

 
56

 
91

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
17

 
18

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
11

 
11

Operating income (loss)
76

 
35

 
88

 
199

 
100

 
45

 
145

 
188

 
(19
)
 
(31
)
 
8

 
(169
)
 
321

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
—

 
1

 
20

 
—

 
20

 
1

 
—

 
—

 
1

 
92

 
115

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
29

 
16

 
45

 
78

 
—

 
—

 
1

 
(28
)
 
96

Total assets at June 30, 2020
2,697

 
794

 
4,404

 
7,895

 
8,515

 
1,631

 
10,146

 
16,848

 
1,777

 
259

 
726

 
2,579

 
40,230

Capital expenditures
27

 
12

 
109

 
148

 
31

 
20

 
51

 
308

 
4

 
2

 
5

 
9

 
527

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
16

 
$
—

 
$
69

 
$
85

 
$
562

 
$
128

 
$
690

 
$
583

a 
$
—

 
$
1,171

 
$
546

 
$
471

b 
$
3,546

Intersegment
491

 
204

 
340

 
1,035

 
71

 
—

 
71

 
(1
)
 
109

 
4

 
—

 
(1,218
)
 
—

Production and delivery
348

 
128

 
348

 
824

 
455

 
126

 
581

 
554

 
78

 
1,171

 
515

 
(718
)
 
3,005

Depreciation, depletion and amortization
43

 
11

 
33

 
87

 
101

 
18

 
119

 
99

 
18

 
3

 
7

 
19

 
352

Metals inventory adjustments
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
2

Selling, general and administrative expenses
—

 
—

 
—

 
—

 
2

 
—

 
2

 
30

 
—

 
—

 
5

 
55

 
92

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
30

 
31

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
23

 
23

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Operating income (loss)
116

 
65

 
26

 
207

 
75

 
(16
)
 
59

 
(101
)
 
13

 
1

 
19

 
(165
)
 
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
1

 
—

 
—

 
1

 
25

 
—

 
25

 
1

 
—

 
—

 
6

 
99

 
132

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
20

 
(9
)
 
11

 
(35
)
 
—

 
—

 
2

 
7

 
(15
)
Total assets at June 30, 2019
2,917

 
742

 
4,179

 
7,838

 
8,571

 
1,699

 
10,270

 
16,261

 
1,792

 
250

 
764

 
3,911

 
41,086

Capital expenditures
49

 
33

 
125

 
207

 
43

 
4

 
47

 
339

 
2

 
1

 
5

 
28

 
629

a.
Includes PT-FI's sales to PT Smelting totaling $433 million in second-quarter 2020 and $470 million in second-quarter 2019.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
c.
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.


(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlantic
 
Corporate,
 
 
 
North America Copper Mines
 
South America Mining
 
 
 
 
 
 
 
Copper
 
Other
 
 
 
 
 
 
 
Other
 
 
 
Cerro
 
Other
 
 
 
Indonesia
 
Molybdenum
 
Rod &
 
Smelting
 
& Elimi-
 
FCX
 
Morenci
 
Bagdad
 
Mines
 
Total
 
Verde
 
Mines
 
Total
 
Mining
 
Mines
 
Refining
 
& Refining
 
nations
 
Total
Six Months Ended June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
22

 
$
—

 
$
23

 
$
45

 
$
847

 
$
204

 
$
1,051

 
$
1,128

a 
$
—

 
$
2,221

 
$
893

 
$
514

b 
$
5,852

Intersegment
889

 
325

 
714

 
1,928

c 
90

 
—

 
90

 
35

 
129

 
16

 
13

 
(2,211
)
 
—

Production and delivery
697

 
244

 
706

 
1,647

 
758

 
214

 
972

 
721

 
127

 
2,257

 
857

 
(1,642
)
 
4,939

Depreciation, depletion and amortization
87

 
27

 
67

 
181

 
181

 
29

 
210

 
225

 
31

 
8

 
14

 
30

 
699

Metals inventory adjustments

4

 
—

 
52

 
56

 
—

 
3

 
3

 
—

 
5

 
1

 
—

 
18

 
83

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
3

 
—

 
3

 
56

 
—

 
—

 
10

 
130

 
201

Mining exploration and research expenses
—

 
—

 
2

 
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
32

 
34

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
36

 
37

Net loss on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
11

 
11

Operating income (loss)
122

 
54

 
(91
)
 
85

 
(5
)
 
(42
)
 
(47
)
 
161

 
(34
)
 
(30
)
 
25

 
(312
)
 
(152
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
—

 
2

 
48

 
—

 
48

 
2

 
—

 
—

 
4

 
186

 
242

(Benefit from) provision for income taxes
—

 
—

 
—

 
—

 
(23
)
 
(10
)
 
(33
)
 
90

 
—

 
—

 
1

 
(22
)
 
36

Capital expenditures
71

 
37

 
224

 
332

 
90

 
35

 
125

 
634

 
11

 
4

 
11

 
20

 
1,137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaffiliated customers
$
28

 
$
—

 
$
164

 
$
192

 
$
1,289

 
$
226

 
$
1,515

 
$
1,288

a 
$
—

 
$
2,299

 
$
1,117

 
$
927

b 
$
7,338

Intersegment
949

 
382

 
631

 
1,962

 
197

 
—

 
197

 
57

 
200

 
10

 
5

 
(2,431
)
 
—

Production and delivery
643

 
248

 
676

 
1,567

 
894

 
226

 
1,120

 
1,110

 
149

 
2,304

 
1,067

 
(1,388
)
 
5,929

Depreciation, depletion and amortization
83

 
21

 
66

 
170

 
201

 
32

 
233

 
204

 
34

 
5

 
14

 
39

 
699

Metals inventory adjustments

—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
58

 
59

Selling, general and administrative expenses
1

 
—

 
1

 
2

 
4

 
—

 
4

 
60

 
—

 
—

 
10

 
123

 
199

Mining exploration and research expenses
—

 
—

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
57

 
58

Environmental obligations and shutdown costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
65

 
65

Net gain on sales of assets
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(25
)
 
(25
)
Operating income (loss)
250

 
113

 
50

 
413

 
387

 
(32
)
 
355

 
(29
)
 
17

 
—

 
31

 
(433
)
 
354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
2

 
—

 
—

 
2

 
54

 
—

 
54

 
1

 
—

 
—

 
12

 
209

 
278

Provision for (benefit from) income taxes
—

 
—

 
—

 
—

 
130

 
(14
)
 
116

 
(9
)
 
—

 
—

 
3

 
(20
)
 
90

Capital expenditures
111

 
58

 
248

 
417

 
99

 
9

 
108

 
658

 
6

 
2

 
9

 
51

 
1,251

a.
Includes PT-FI's sales to PT Smelting totaling $813 million for the first six months of 2020 and $879 million for the first six months of 2019.
b.
Includes revenues from FCX's molybdenum sales company, which includes sales of molybdenum produced by the Molybdenum mines and by certain of the North America and South America copper mines.
c.
Includes hedging losses totaling $24 million related to forward sales contracts covering 150 million pounds of copper sales for May and June 2020 at a fixed price of $2.34 per pound.
v3.20.2
General Information (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
General Information [Abstract]    
COVID Response, Employee Separation Charges $ 196 $ 224
COVID Response, Production and Delivery Charges 153 173
COVID Response, Depreciation, Depletion, and Amortization 21 29
COVID Response, Selling, General, and Administrative Expense 15 15
COVID Response, Mining Exploration and Research Expense $ 7 $ 7
v3.20.2
Earnings per Share (Unaudited) Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Earnings Per Share [Abstract]        
Net income (loss) from continuing operations $ 124 $ (74) $ (425) $ 1
Net (income) loss from continuing operations attributable to noncontrolling interests (71) 2 (13) (43)
Undistributed earnings allocated to participating securities (3) (3) (3) (3)
Net income (loss) from continuing operations attributable to common stockholders 50 (75) (441) (45)
Net income from discontinued operations attributable to common stockholders 0 0 0 1
Net income (loss) attributable to common stockholders $ 50 $ (75) $ (441) $ (44)
Basic weighted-average shares of common stock outstanding 1,453 1,451 1,453 1,451
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) 5 0 0 0
Diluted weighted-average shares of common stock outstanding 1,458 1,451 1,453 1,451
Basic and diluted net income (loss) per share attributable to common stockholders:        
Continuing operations (in dollars per share) $ 0.03 $ (0.05) $ (0.30) $ (0.03)
Discontinued operations (in dollars per share) 0 0 0 0
Earnings per share, basic (in dollars per share) $ 0.03 $ (0.05) $ (0.30) $ (0.03)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount   10 10 12
Dilutive Securities Excluded from Computation of EPS Amount 38 43 39 41
v3.20.2
Inventories, Including Long-Term Mill and Leach Stockpiles (Unaudited) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Components of Inventories [Line Items]          
Total materials and supplies, net $ 1,604   $ 1,604   $ 1,649
Mill stockpiles, current 166   166   220
Leach stockpiles, current 864   864   923
Total current mill and leach stockpiles 1,030   1,030   1,143
Raw materials (primarily concentrate) 287   287   318
Work-in-process 110   110   124
Finished goods 779   779   839
Total product 1,176   1,176   1,281
Mill stockpiles, noncurrent 207   207   181
Leach stockpiles, noncurrent 1,239   1,239   1,244
Total long-term mill and leach stockpiles 1,446   1,446   1,425
Inventory obsolescence reserves 31   31   $ 24
Metals inventory adjustments (139) $ 2 83 $ 59  
Inventory Write-down   $ 2   $ 59  
Metals          
Components of Inventories [Line Items]          
Metals inventory adjustments 139        
Inventory Write-down     83    
Copper          
Components of Inventories [Line Items]          
Metals inventory adjustments 144        
Inventory Write-down     61    
Molybdenum          
Components of Inventories [Line Items]          
Inventory Write-down $ 5   $ 22    
v3.20.2
Income Taxes (Unaudited) (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 31, 2020
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2021
Income Tax Disclosure [Abstract]            
Consolidated effective income tax rate (percent)       (9.00%) 101.00%  
Schedule Of Income Taxes [Line Items]            
U.S. operations       $ 58 $ 20  
International operations       (94) (110)  
Total   $ (96) $ 15 $ (36) $ (90)  
Subsequent event            
Schedule Of Income Taxes [Line Items]            
Proceeds from Income Tax Refunds $ 221         $ 47
v3.20.2
Debt and Equity (Details)
$ / shares in Units, shares in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 27, 2020
USD ($)
Mar. 04, 2020
USD ($)
Dec. 31, 2021
Sep. 30, 2021
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
$ / shares
shares
Jun. 30, 2019
USD ($)
$ / shares
shares
Dec. 31, 2021
Jun. 30, 2020
USD ($)
$ / shares
shares
Jun. 30, 2019
USD ($)
$ / shares
shares
Dec. 31, 2022
Dec. 31, 2021
Apr. 03, 2020
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]                            
Dilutive Securities Excluded from Computation of EPS Amount | shares           38 43   39 41        
Total Debt [Abstract]                            
Current portion of debt           $ (90,000,000)     $ (90,000,000)          
Long-term Debt, Current Maturities           90,000,000     90,000,000         $ 5,000,000
Long-term debt, less current portion           9,824,000,000     9,824,000,000          
Debt                           9,826,000,000
Long-term Debt and Lease Obligation, Including Current Maturities           9,914,000,000     9,914,000,000          
Proceeds from repayment of debt   $ 1,290,000,000                        
Net gain (loss) on exchanges and early extinguishment of debt           (9,000,000) $ 0   (41,000,000) $ (6,000,000)        
Interest costs           $ 159,000,000 $ 167,000,000   $ 330,000,000 $ 345,000,000        
Dividends declared per share of common stock (in dollars per share) | $ / shares           $ 0 $ 0.05   $ 0 $ 0.10        
COVID Response, Dividend Suspended, Price Per Share | $ / shares                 $ 0.05          
Long-term debt, less current portion           $ 9,824,000,000     $ 9,824,000,000         9,821,000,000
Senior Notes due 2028, 4.125% [Member] [Domain]                            
Total Debt [Abstract]                            
Debt   $ 700,000,000                        
Stated interest rate   4.125%                        
Senior Notes due 2030, 4.25% [Member] [Domain]                            
Total Debt [Abstract]                            
Debt   $ 600,000,000                        
Stated interest rate   4.25%                        
Senior Notes due 2021, 4.00%                            
Total Debt [Abstract]                            
Stated interest rate   4.00%                     4.00%  
3.55% Senior Notes Due 2022 [Member]                            
Total Debt [Abstract]                            
Stated interest rate   3.55%                        
Revolving Credit Facility [Member] | Credit Agreement [Member]                            
Total Debt [Abstract]                            
Line of Credit Facility, Maximum Borrowing Capacity           3,500,000,000     3,500,000,000          
Debt Instrument, Covenant, Minimum Liquidity Required                 1,000,000,000          
Property, Plant and Equipment [Member]                            
Total Debt [Abstract]                            
Interest costs capitalized           44,000,000 $ 35,000,000   88,000,000 $ 67,000,000        
Line of Credit [Member] | Cerro Verde [Member]                            
Total Debt [Abstract]                            
Debt                           826,000,000
Long-term Debt and Lease Obligation, Including Current Maturities           827,000,000     827,000,000          
Line of Credit [Member] | Letter of Credit [Member]                            
Total Debt [Abstract]                            
Letter of credit           13,000,000     13,000,000          
Revolving credit facility, availability           1,500,000,000     1,500,000,000          
Line of Credit [Member] | Revolving Credit Facility [Member]                            
Total Debt [Abstract]                            
Debt           0     0          
Revolving credit facility, availability           3,500,000,000     3,500,000,000          
Line of Credit [Member] | Revolving Credit Facility [Member] | Maturing 2024 [Member]                            
Total Debt [Abstract]                            
Revolving credit facility, availability           3,280,000,000     3,280,000,000          
Line of Credit [Member] | Revolving Credit Facility [Member] | Maturing 2023 [Member]                            
Total Debt [Abstract]                            
Revolving credit facility, availability           220,000,000     220,000,000          
Senior Notes [Member] | FCX [Member]                            
Total Debt [Abstract]                            
Long-term Debt and Lease Obligation, Including Current Maturities           8,621,000,000     8,621,000,000         8,602,000,000
Debentures [Member] | Freeport McMoRan Corporation [Member]                            
Total Debt [Abstract]                            
Long-term Debt and Lease Obligation, Including Current Maturities           357,000,000     357,000,000         357,000,000
Other Debt, Including Capital Leases and Short Term Borrowings [Member]                            
Total Debt [Abstract]                            
Debt                           $ 41,000,000
Long-term Debt and Lease Obligation, Including Current Maturities           $ 109,000,000     $ 109,000,000          
Subsequent event                            
Total Debt [Abstract]                            
Proceeds from Debt, Net of Issuance Costs $ 1,490,000,000                          
Debt Instrument, Repurchase Amount $ 1,300,000,000                          
Subsequent event | 3.55% Senior Notes Due 2022 [Member]                            
Total Debt [Abstract]                            
Stated interest rate 3.55%                          
Subsequent event | Senior Notes Due 2023, 3.875% [Member]                            
Total Debt [Abstract]                            
Stated interest rate 3.875%                          
Subsequent event | Senior Notes due 2024 4 point 55 percent [Member]                            
Total Debt [Abstract]                            
Stated interest rate 4.55%                          
Subsequent event | Senior Notes [Member] | Notes Due 2028, 4.375% [Member]                            
Total Debt [Abstract]                            
Debt, principal $ 650,000,000                          
Stated interest rate 4.375%                          
Subsequent event | Senior Notes [Member] | Notes Due 2030, 4.625% [Member]                            
Total Debt [Abstract]                            
Debt, principal $ 850,000,000                          
Stated interest rate 4.625%                          
Forecast                            
Debt Instrument [Line Items]                            
Debt Instrument, Covenant Compliance, Leverage Ratio               5.25     3.75      
Total Debt [Abstract]                            
Net gain (loss) on exchanges and early extinguishment of debt         $ (60,000,000)                  
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum               2.00     2.25      
Forecast | Revolving Credit Facility [Member] | Credit Agreement [Member]                            
Debt Instrument [Line Items]                            
Debt Instrument, Covenant Compliance, Leverage Ratio     3.75 5.25                    
Total Debt [Abstract]                            
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum                     2.75 2.00    
v3.20.2
Financial Instruments (Unrealized gains losses) (Details)
oz in Thousands, lb in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Apr. 30, 2020
lb
$ / lb
Jun. 30, 2020
USD ($)
lb
$ / lb
$ / lb
$ / oz
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
lb
oz
$ / lb
$ / lb
$ / oz
Jun. 30, 2019
USD ($)
Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   $ 179 $ (109) $ (52) $ 11
Commodity Contract [Member]          
Unrealized gains (losses):          
Derivative financial instruments   40 (13) 7 5
Hedged item – firm sales commitments   (40) 13 (7) (5)
Realized gains (losses):          
Matured derivative financial instruments   $ (8) (3) $ (17) (1)
Commodity Contract [Member] | Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb   54   54  
Derivative, Average Forward Price | $ / lb   2.50   2.50  
Copper Forward Contracts [Member] | Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb 150        
Derivative, Average Forward Price | $ / lb 2.34        
Realized gains (losses):          
Matured derivative financial instruments   $ 24   $ 24  
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb       16  
Derivative, Average Forward Price | $ / lb   2.62   2.62  
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Amounts recorded in Cost of Sales          
Realized gains (losses):          
Matured derivative financial instruments   $ (4) (4) $ 19 (3)
Copper | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   $ 162 (122) $ (76) 0
Copper | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb       314  
Derivative, Average Forward Price | $ / lb   2.50   2.50  
Realized gains (losses):          
Derivative Average Market Price | $ / lb   2.73   2.73  
Copper | Long [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | lb       116  
Derivative, Average Forward Price | $ / lb   2.48   2.48  
Realized gains (losses):          
Derivative Average Market Price | $ / lb   2.73   2.73  
Gold | Short [Member] | Embedded Derivative Financial Instruments [Member] | Not Designated as Hedging Instrument [Member]          
Derivative Instruments, Gain (Loss) [Line Items]          
Derivative, Nonmonetary Notional Amount, Mass | oz       87  
Derivative, Average Forward Price | $ / oz   1,725   1,725  
Realized gains (losses):          
Derivative Average Market Price | $ / oz   1,779   1,779  
gold and other | Not Designated as Hedging Instrument [Member] | Amounts recorded in Sales [Member]          
Realized gains (losses):          
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   $ 17 $ 13 $ 24 $ 11
v3.20.2
Financial Instruments (Unsettled Derivatives) (Details)
oz in Thousands, lb in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Apr. 30, 2020
lb
$ / lb
Jun. 30, 2020
USD ($)
lb
$ / lb
$ / lb
$ / oz
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
lb
oz
$ / lb
$ / lb
$ / oz
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset   $ 94   $ 94   $ 74
Derivative Liability, Fair Value, Gross Liability   34   34   21
Derivative Asset, Fair Value, Gross Liability   4   4   0
Derivative Liability, Fair Value, Gross Asset   4   4   0
Derivative Asset   90   90   74
Derivative Liability   30   30   21
Trade accounts receivable [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset   76   76   66
Derivative Liability   2   2   0
Accounts Payable and Accrued Liabilities            
Derivatives, Fair Value [Line Items]            
Derivative Asset   1   1   2
Derivative Liability   28   28   21
Other Current Assets [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset   13   13   6
Derivative Liability   0   0   0
Commodity Contract [Member]            
Derivatives, Fair Value [Line Items]            
Matured derivative financial instruments   (8) $ (3) (17) $ (1)  
Derivative Asset, Fair Value, Gross Asset   17   17   6
Derivative Liability, Fair Value, Gross Liability   6   6   1
Derivative Asset, Fair Value, Gross Liability   4   4   0
Derivative Liability, Fair Value, Gross Asset   4   4   0
Derivative Asset   13   13   6
Derivative Liability   2   2   1
Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset   77   77   68
Derivative Liability, Fair Value, Gross Liability   28   28   20
Derivative Asset   77   77   68
Derivative Liability   28   28   20
Designated as Hedging Instrument [Member] | Commodity Contract [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset   $ 17   $ 17   6
Derivative, Nonmonetary Notional Amount, Mass | lb   54   54    
Derivative, Average Forward Price | $ / lb   2.50   2.50    
Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Matured derivative financial instruments   $ 24   $ 24    
Derivative, Nonmonetary Notional Amount, Mass | lb 150          
Derivative, Average Forward Price | $ / lb 2.34          
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Asset, Fair Value, Gross Asset   77   77   68
Derivative Liability, Fair Value, Gross Liability   $ 28   $ 28   20
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative, Nonmonetary Notional Amount, Mass | lb       16    
Derivative, Average Forward Price | $ / lb   2.62   2.62    
Future [Member] | Not Designated as Hedging Instrument [Member] | FMC's Copper Futures and Swap Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Liability, Fair Value, Gross Liability   $ 6   $ 6   0
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Liability, Fair Value, Gross Liability   $ 0   $ 0   $ 1
Copper | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / lb   2.73   2.73    
Derivative, Nonmonetary Notional Amount, Mass | lb       314    
Derivative, Average Forward Price | $ / lb   2.50   2.50    
Copper | Long [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / lb   2.73   2.73    
Derivative, Nonmonetary Notional Amount, Mass | lb       116    
Derivative, Average Forward Price | $ / lb   2.48   2.48    
Gold | Short [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]            
Derivatives, Fair Value [Line Items]            
Derivative Average Market Price | $ / oz   1,779   1,779    
Derivative, Nonmonetary Notional Amount, Mass | oz       87    
Derivative, Average Forward Price | $ / oz   1,725   1,725    
Sales [Member] | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   $ 179 (109) $ (52) 11  
Sales [Member] | Copper | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   162 (122) (76) 0  
Sales [Member] | gold and other | Not Designated as Hedging Instrument [Member]            
Derivatives, Fair Value [Line Items]            
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net   17 13 24 11  
Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]            
Derivatives, Fair Value [Line Items]            
Matured derivative financial instruments   $ (4) $ (4) $ 19 $ (3)  
v3.20.2
Financial Instruments (Derivative) (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 1,465 $ 2,020    
Restricted Cash and Cash Equivalents, Current 132 100    
Restricted Cash and Cash Equivalents, Noncurrent 132 158    
Total cash, cash equivalents, restricted cash and restricted cash equivalents presented in the consolidated statements of cash flows 1,729 2,278 $ 3,006 $ 4,455
Credit Derivative, Maximum Exposure, Undiscounted 88      
Bank Time Deposits [Member]        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 300 $ 1,300    
v3.20.2
Fair Value Measurement (Fair Value Measurement Inputs) (Details)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
$ / bbl
Dec. 31, 2016
USD ($)
$ / bbl
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current   $ 517     $ 655    
Other assets   1,693     1,885    
Proceeds from Sale of Other Assets, contingent consideration   116 $ 94        
Derivative Liability, Fair Value, Gross Liability   34     21    
Investment securities (current and long-term):              
Marketable Securities   0          
Derivatives:              
Derivative Asset   90     74    
Derivatives: [Abstract]              
Derivative Liability   30     21    
Fair Value Measured at Net Asset Value Per Share [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   0     0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   29     27    
Trust Assets Fair Value Disclosure   63     59    
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Long-term debt, including current portion   0     0    
Level 1              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   0     0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   5     4    
Trust Assets Fair Value Disclosure   9     3    
Derivatives:              
Derivative Asset   13     5    
Derivatives: [Abstract]              
Derivative Liability   2     0    
Long-term debt, including current portion   0     0    
Level 2              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   0     0    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   0     0    
Trust Assets Fair Value Disclosure   136     134    
Derivatives:              
Derivative Asset   81     80    
Derivatives: [Abstract]              
Derivative Liability   32     21    
Long-term debt, including current portion   10,013     10,239    
Level 3              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   78     108    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   0     0    
Trust Assets Fair Value Disclosure   0     0    
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Long-term debt, including current portion   0     0    
Estimate of Fair Value Measurement [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   78     108    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   34     31    
Trust Assets Fair Value Disclosure   208     196    
Derivatives:              
Derivative Asset   94     85    
Derivatives: [Abstract]              
Derivative Liability   34     21    
Long-term debt, including current portion   10,013     10,239    
Carrying Amount, Fair Value Disclosure [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Discontinued Operation, Contingent Receivable   115     122    
Investment securities (current and long-term):              
Investments, Fair Value Disclosure   34     31    
Trust Assets Fair Value Disclosure   208     196    
Derivatives:              
Derivative Asset   94     85    
Derivatives: [Abstract]              
Derivative Liability   34     21    
Long-term debt, including current portion   9,914     9,826    
Embedded Derivative Financial Instruments [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability   28     20    
Derivatives:              
Derivative Asset   77     68    
Derivatives: [Abstract]              
Derivative Liability   28     20    
Embedded Derivative Financial Instruments [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Embedded Derivative Financial Instruments [Member] | Level 1              
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Embedded Derivative Financial Instruments [Member] | Level 2              
Derivatives:              
Derivative Asset   77     68    
Derivatives: [Abstract]              
Derivative Liability   28     20    
Embedded Derivative Financial Instruments [Member] | Level 3              
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Embedded Derivative Financial Instruments [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset   77     68    
Derivatives: [Abstract]              
Derivative Liability   28     20    
Embedded Derivative Financial Instruments [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset   77     68    
Derivatives: [Abstract]              
Derivative Liability   28     20    
Forward Contracts [Member] | Level 1              
Derivatives:              
Derivative Asset   2          
Forward Contracts [Member] | Level 2              
Derivatives:              
Derivative Asset   2          
Forward Contracts [Member] | Level 3              
Derivatives:              
Derivative Asset   0          
Forward Contracts [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset   4          
Forward Contracts [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset   4          
Commodity Contract [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability   6     1    
Derivatives:              
Derivative Asset   13     6    
Derivatives: [Abstract]              
Derivative Liability   2     1    
Commodity Contract [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset   0     0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Commodity Contract [Member] | Level 1              
Derivatives:              
Derivative Asset         5    
Derivatives: [Abstract]              
Derivative Liability   2     0    
Commodity Contract [Member] | Level 2              
Derivatives:              
Derivative Asset         1    
Derivatives: [Abstract]              
Derivative Liability   4     1    
Commodity Contract [Member] | Level 3              
Derivatives:              
Derivative Asset         0    
Derivatives: [Abstract]              
Derivative Liability   0     0    
Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset         6    
Derivatives: [Abstract]              
Derivative Liability   6     1    
Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset         6    
Derivatives: [Abstract]              
Derivative Liability   6     1    
Future [Member] | Level 1              
Derivatives:              
Derivative Asset   11          
Future [Member] | Level 2              
Derivatives:              
Derivative Asset   2          
Future [Member] | Level 3              
Derivatives:              
Derivative Asset   0          
Future [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset   13          
Future [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset   13          
Africa and onshore California [Member] | Commodity Contract [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Derivatives:              
Derivative Asset         0    
Africa and onshore California [Member] | Commodity Contract [Member] | Level 1              
Derivatives:              
Derivative Asset         0    
Africa and onshore California [Member] | Commodity Contract [Member] | Level 2              
Derivatives:              
Derivative Asset         11    
Africa and onshore California [Member] | Commodity Contract [Member] | Level 3              
Derivatives:              
Derivative Asset         0    
Africa and onshore California [Member] | Commodity Contract [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset         11    
Africa and onshore California [Member] | Commodity Contract [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Derivatives:              
Derivative Asset         11    
U.S. core fixed income fund [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Marketable Securities   29     27    
Trust Assets Fair Value Disclosure   63     59    
U.S. core fixed income fund [Member] | Level 1              
Investment securities (current and long-term):              
Marketable Securities   0     0    
Trust Assets Fair Value Disclosure   0     0    
U.S. core fixed income fund [Member] | Level 2              
Investment securities (current and long-term):              
Marketable Securities   0     0    
Trust Assets Fair Value Disclosure   0     0    
U.S. core fixed income fund [Member] | Level 3              
Investment securities (current and long-term):              
Marketable Securities   0     0    
Trust Assets Fair Value Disclosure   0     0    
U.S. core fixed income fund [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Marketable Securities   29     27    
Trust Assets Fair Value Disclosure   63     59    
U.S. core fixed income fund [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Marketable Securities   29     27    
Trust Assets Fair Value Disclosure   63     59    
Equity securities | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Marketable Securities         0    
Equity securities | Level 1              
Investment securities (current and long-term):              
Marketable Securities   5     4    
Equity securities | Level 2              
Investment securities (current and long-term):              
Marketable Securities   0     0    
Equity securities | Level 3              
Investment securities (current and long-term):              
Marketable Securities   0     0    
Equity securities | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Marketable Securities   5     4    
Equity securities | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Marketable Securities   5     4    
Government bonds | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government bonds | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government bonds | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   32     36    
Government bonds | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government bonds | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   32     36    
Government bonds | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   32     36    
Corporate bonds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Corporate bonds [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Corporate bonds [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   45     33    
Corporate bonds [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Corporate bonds [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   45     33    
Corporate bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   45     33    
Government mortgage-backed securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government mortgage-backed securities [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government mortgage-backed securities [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   40     43    
Government mortgage-backed securities [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Government mortgage-backed securities [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   40     43    
Government mortgage-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   40     43    
Asset-backed securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Asset-backed securities [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Asset-backed securities [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   14     14    
Asset-backed securities [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Asset-backed securities [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   14     14    
Asset-backed securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   14     14    
Money market funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Money market funds [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   9     3    
Money market funds [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Money market funds [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Money market funds [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   9     3    
Money market funds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   9     3    
Collateralized Mortgage Backed Securities [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Collateralized Mortgage Backed Securities [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Collateralized Mortgage Backed Securities [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   4     7    
Collateralized Mortgage Backed Securities [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Collateralized Mortgage Backed Securities [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   4     7    
Collateralized Mortgage Backed Securities [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   4     7    
Municipal bonds [Member] | Fair Value Measured at Net Asset Value Per Share [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Municipal bonds [Member] | Level 1              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Municipal bonds [Member] | Level 2              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   1     1    
Municipal bonds [Member] | Level 3              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   0     0    
Municipal bonds [Member] | Estimate of Fair Value Measurement [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   1     1    
Municipal bonds [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Investment securities (current and long-term):              
Trust Assets Fair Value Disclosure   1     1    
Bank Time Deposits [Member] | Carrying Amount, Fair Value Disclosure [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current   132     100    
Other assets   131     157    
Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Derivative Liability, Fair Value, Gross Liability   28     20    
Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other assets   0     11    
Discontinued Operation, Contingent Receivable             $ 150
Proceeds from Sale of Other Assets, contingent consideration $ 50            
Derivatives:              
Discontinued Operation, Contingent Receivable, Per Year   50          
Freeport-McMoRan Oil & Gas | Deepwater Gulf of Mexico Interests [Member]              
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement Captions [Line Items]              
Other Assets, Current   12     18    
Other assets   103     $ 104    
Discontinued Operation, Contingent Receivable             $ 150
Forecast | Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Derivatives:              
Discontinued Operation, Contingent Receivable, Per Year       $ 50      
Crude Oil [Member] | Freeport-McMoRan Oil & Gas | Onshore California [Member]              
Derivatives:              
Contingent consideration, reference threshold (in us dollars per pound) | $ / bbl           70 70
Fair Value, Recurring [Member] | Forward Contracts [Member] | Estimate of Fair Value Measurement [Member]              
Derivatives:              
Derivative Asset   $ 0          
v3.20.2
Fair Value Measurement (Unobservable inputs) (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Other Assets, Current $ 517 $ 655  
Other Assets, Noncurrent 1,693 1,885  
Gulf of Mexico Contingent Consideration [Member]      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements (8)    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Fair value at January 1, 2020 108    
Net unrealized loss related to assets still held at the end of the period (22)    
Fair value at June 30, 2020 78    
Onshore California [Member] | Freeport-McMoRan Oil & Gas      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Contingent Receivable     $ 150
Other Assets, Noncurrent $ 0 $ 11  
v3.20.2
Contingencies and Commitments (Unaudited) - Litigation (Details)
$ in Millions
 1 Months Ended
Oct. 31, 2019
USD ($)
Sep. 30, 2019
case
Mar. 13, 2019
USD ($)
Settled litigation | Louisiana Parishes Coastal Erosion Cases | FCX affiliates      
Loss Contingencies [Line Items]      
Loss Contingency, Pending Claims, Number | case   13  
Litigation settlement, agreed to pay, initial payment $ 15    
Pending litigation | Asbestos contamination in talc-based personal care products | Asbestos contamination | Johnson & Johnson and Cyprus Mines      
Loss Contingencies [Line Items]      
Loss contingency, estimate of possible loss     $ 29
Pending litigation | Asbestos contamination in talc-based personal care products | Asbestos contamination | Cyprus Mines      
Loss Contingencies [Line Items]      
Loss contingency, estimate of possible loss     $ 2
v3.20.2
Contingencies and Commitments (Unaudited) - Tax and Other Matters (Details)
Jun. 30, 2020
PT Freeport Indonesia | PT Smelting  
Loss Contingencies [Line Items]  
Investment owned, percent 25.00%
v3.20.2
Business Segments (Product Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Revenue from External Customer [Line Items]        
Treatment And Refining Charges Included In Copper Concentrates Revenues $ (75) $ (100) $ (155) $ (205)
Royalty Expense (26) (19) (46) (49)
Export duties expense (16) (10) (20) (27)
Revenue from Contract with Customer, Excluding Assessed Tax 2,875 3,655 5,904 7,327
Revenues 3,054 3,546 5,852 7,338
Sales [Member] | Not Designated as Hedging Instrument [Member]        
Revenue from External Customer [Line Items]        
Matured derivative financial instruments 179 (109) (52) 11
Copper In Concentrates [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 749 1,134 1,598 2,299
Copper Cathode [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 1,124 959 1,961 1,818
Refined Copper Products [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 303 516 845 1,023
Purchased Copper [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 166 325 401 662
Gold        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 341 305 611 696
Molybdenum        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax 194 327 437 615
Other Products Or Services [Member]        
Revenue from External Customer [Line Items]        
Revenue from Contract with Customer, Including Assessed Tax $ 115 $ 218 $ 272 $ 495
v3.20.2
Business Segments (Segment Reporting) (Details)
lb in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 30, 2020
lb
$ / lb
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
segment
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]            
Number of Operating Segments | segment       4    
Deferred Intercompany Profit, Percentage       25.00%    
Revenues   $ 3,054 $ 3,546 $ 5,852 $ 7,338  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (2,394) (3,005) (4,939) (5,929)  
Cost, Depreciation, Amortization and Depletion   358 352 699 699  
Metals inventory adjustments   (139) 2 83 59  
Selling, general and administrative expenses   (91) (92) (201) (199)  
Mining exploration and research expenses   18 31 34 58  
Environmental obligations and shutdown costs   11 23 37 65  
Net gain on sales of assets   0 8 11 (25)  
Operating income (loss)   321 33 (152) 354  
Interest expense, net   115 132 242 278  
Provision for (benefit from) income taxes   96 (15) 36 90  
Total assets   40,230 41,086 40,230 41,086 $ 40,809
Capital expenditures   527 629 1,137 1,251  
Operating Segments | North America            
Segment Reporting Information [Line Items]            
Revenues   36 85 45 192  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (787) (824) (1,647) (1,567)  
Cost, Depreciation, Amortization and Depletion   89 87 181 170  
Metals inventory adjustments   (89) 1 56 1  
Selling, general and administrative expenses   (1) 0 (2) (2)  
Mining exploration and research expenses   1 1 2 1  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   199 207 85 413  
Interest expense, net   1 1 2 2  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   7,895 7,838 7,895 7,838  
Capital expenditures   148 207 332 417  
Operating Segments | South America            
Segment Reporting Information [Line Items]            
Revenues   577 690 1,051 1,515  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (438) (581) (972) (1,120)  
Cost, Depreciation, Amortization and Depletion   102 119 210 233  
Metals inventory adjustments   (57) 0 3 0  
Selling, general and administrative expenses   (1) (2) (3) (4)  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   145 59 (47) 355  
Interest expense, net   20 25 48 54  
Provision for (benefit from) income taxes   45 11 (33) 116  
Total assets   10,146 10,270 10,146 10,270  
Capital expenditures   51 47 125 108  
Corporate And Eliminations            
Segment Reporting Information [Line Items]            
Revenues   188 471 514 927  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   854 718 1,642 1,388  
Cost, Depreciation, Amortization and Depletion   15 19 30 39  
Metals inventory adjustments   5 1 18 58  
Selling, general and administrative expenses   (56) (55) (130) (123)  
Mining exploration and research expenses   17 30 32 57  
Environmental obligations and shutdown costs   11 23 36 65  
Net gain on sales of assets     8 11 (25)  
Operating income (loss)   (169) (165) (312) (433)  
Interest expense, net   92 99 186 209  
Provision for (benefit from) income taxes   (28) 7 (22) (20)  
Total assets   2,579 3,911 2,579 3,911  
Capital expenditures   9 28 20 51  
Intersegment            
Segment Reporting Information [Line Items]            
Revenues   0 0 0 0  
Intersegment | North America            
Segment Reporting Information [Line Items]            
Revenues   952 1,035 1,928 1,962  
Intersegment | South America            
Segment Reporting Information [Line Items]            
Revenues   52 71 90 197  
PT Smelting | Affiliated Entity [Member]            
Segment Reporting Information [Line Items]            
Revenues   433 470 813   $ 879
Morenci [Member] | Operating Segments | North America            
Segment Reporting Information [Line Items]            
Revenues   20 16 22 28  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (348) (348) (697) (643)  
Cost, Depreciation, Amortization and Depletion   43 43 87 83  
Metals inventory adjustments   0 0 4 0  
Selling, general and administrative expenses   0 0 (1) (1)  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   76 116 122 250  
Interest expense, net   1 1 2 2  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   2,697 2,917 2,697 2,917  
Capital expenditures   27 49 71 111  
Morenci [Member] | Intersegment | North America            
Segment Reporting Information [Line Items]            
Revenues   447 491 889 949  
Bagdad [Member] | Operating Segments | North America            
Segment Reporting Information [Line Items]            
Revenues   0 0 0 0  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (118) (128) (244) (248)  
Cost, Depreciation, Amortization and Depletion   13 11 27 21  
Metals inventory adjustments   0 0 0 0  
Selling, general and administrative expenses   0 0 0 0  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   35 65 54 113  
Interest expense, net   0 0   0  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   794 742 794 742  
Capital expenditures   12 33 37 58  
Bagdad [Member] | Operating Segments | Bagdad [Member]            
Segment Reporting Information [Line Items]            
Interest expense, net       0    
Bagdad [Member] | Intersegment | North America            
Segment Reporting Information [Line Items]            
Revenues   166 204 325 382  
Other Mines North America Copper Mines Segment [Member] | Operating Segments | North America            
Segment Reporting Information [Line Items]            
Metals inventory adjustments     1   1  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | North America            
Segment Reporting Information [Line Items]            
Revenues   16 69 23 164  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (321) (348) (706) (676)  
Cost, Depreciation, Amortization and Depletion   33 33 67 66  
Metals inventory adjustments   (89)   52    
Selling, general and administrative expenses   (1) 0 (1) (1)  
Mining exploration and research expenses   1 1 2 1  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   88 26 (91) 50  
Interest expense, net   0 0 0 0  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   4,404 4,179 4,404 4,179  
Capital expenditures   109 125 224 248  
Other Individually Immaterial Operating Segments [Member] | Operating Segments | South America            
Segment Reporting Information [Line Items]            
Revenues   106 128 204 226  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (104) (126) (214) (226)  
Cost, Depreciation, Amortization and Depletion   14 18 29 32  
Metals inventory adjustments   (57) 0 3 0  
Selling, general and administrative expenses   0 0 0 0  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   45 (16) (42) (32)  
Interest expense, net   0 0 0 0  
Provision for (benefit from) income taxes   16 (9) (10) (14)  
Total assets   1,631 1,699 1,631 1,699  
Capital expenditures   20 4 35 9  
Other Individually Immaterial Operating Segments [Member] | Intersegment | North America            
Segment Reporting Information [Line Items]            
Revenues   339 340 714 631  
Other Individually Immaterial Operating Segments [Member] | Intersegment | South America            
Segment Reporting Information [Line Items]            
Revenues   0 0 0 0  
Cerro Verde [Member] | Operating Segments | South America            
Segment Reporting Information [Line Items]            
Revenues   471 562 847 1,289  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (334) (455) (758) (894)  
Cost, Depreciation, Amortization and Depletion   88 101 181 201  
Metals inventory adjustments   0 0 0 0  
Selling, general and administrative expenses   (1) (2) (3) (4)  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   100 75 (5) 387  
Interest expense, net   20 25 48 54  
Provision for (benefit from) income taxes   29 20 (23) 130  
Total assets   8,515 8,571 8,515 8,571  
Capital expenditures   31 43 90 99  
Cerro Verde [Member] | Intersegment | South America            
Segment Reporting Information [Line Items]            
Revenues   52 71 90 197  
Grasberg Segment [Member]            
Segment Reporting Information [Line Items]            
Capital expenditures       634 658  
Grasberg Segment [Member] | Operating Segments | Indonesia            
Segment Reporting Information [Line Items]            
Revenues   683 583 1,128 1,288  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (378) (554) (721) (1,110)  
Cost, Depreciation, Amortization and Depletion   124 99 225 204  
Metals inventory adjustments   0 0 0 0  
Selling, general and administrative expenses   (28) (30) (56) (60)  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   188 (101) 161 (29)  
Interest expense, net   1 1 2 1  
Provision for (benefit from) income taxes   78 (35) 90 (9)  
Total assets   16,848 16,261 16,848 16,261  
Capital expenditures   308 339 634 658  
Grasberg Segment [Member] | Intersegment | Indonesia            
Segment Reporting Information [Line Items]            
Revenues   35 (1) 35 57  
Molybdenum            
Segment Reporting Information [Line Items]            
Capital expenditures       11 6  
Molybdenum | Operating Segments            
Segment Reporting Information [Line Items]            
Revenues   0 0 0 0  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (61) (78) (127) (149)  
Cost, Depreciation, Amortization and Depletion   15 18 31 34  
Metals inventory adjustments   1 0 5 0  
Selling, general and administrative expenses   0 0 0 0  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   (19) 13 (34) 17  
Interest expense, net   0 0 0 0  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   1,777 1,792 1,777 1,792  
Capital expenditures   4 2 11 6  
Molybdenum | Intersegment            
Segment Reporting Information [Line Items]            
Revenues   58 109 129 200  
Rod and Refining Segment [Member] | Operating Segments            
Segment Reporting Information [Line Items]            
Revenues   1,106 1,171 2,221 2,299  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (1,138) (1,171) (2,257) (2,304)  
Cost, Depreciation, Amortization and Depletion   6 3 8 5  
Metals inventory adjustments   1 0 1 0  
Selling, general and administrative expenses   0 0 0 0  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 1 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   (31) 1 (30) 0  
Interest expense, net   0 0 0 0  
Provision for (benefit from) income taxes   0 0 0 0  
Total assets   259 250 259 250  
Capital expenditures   2 1 4 2  
Rod and Refining Segment [Member] | Intersegment            
Segment Reporting Information [Line Items]            
Revenues   8 4 16 10  
Atlantic Copper Smelting and Refining Segment [Member] | Operating Segments            
Segment Reporting Information [Line Items]            
Revenues   464 546 893 1,117  
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization (Deprecated 2019-01-31)   (446) (515) (857) (1,067)  
Cost, Depreciation, Amortization and Depletion   7 7 14 14  
Metals inventory adjustments   0 0 0 0  
Selling, general and administrative expenses   (5) (5) (10) (10)  
Mining exploration and research expenses   0 0 0 0  
Environmental obligations and shutdown costs   0 0 0 0  
Net gain on sales of assets     0 0 0  
Operating income (loss)   8 19 25 31  
Interest expense, net   1 6 4 12  
Provision for (benefit from) income taxes   1 2 1 3  
Total assets   726 764 726 764  
Capital expenditures   5 5 11 9  
Atlantic Copper Smelting and Refining Segment [Member] | Intersegment            
Segment Reporting Information [Line Items]            
Revenues   2 0 13 5  
Corporate And Eliminations | Intersegment            
Segment Reporting Information [Line Items]            
Revenues   (1,107) $ (1,218) (2,211) $ (2,431)  
Forward Contracts [Member] | Designated as Hedging Instrument [Member]            
Segment Reporting Information [Line Items]            
Matured derivative financial instruments   $ 24   $ 24    
Derivative, Nonmonetary Notional Amount, Mass | lb 150          
Derivative, Average Forward Price | $ / lb 2.34