Freeport-McMoRan 2014 Annual Report Download - page 124

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
122
At December 31, 2014
Carrying Fair Value
Amount Total Level 1 Level 2 Level 3
Assets
Investment securities:
a,b,c
U.S. core fixed income fund
$ 23 $ 23 $ — $ 23 $ —
Money market funds
20 20 20 — —
Equity securities
3 3 3 — —
Total
46 46 23 23 —
Legally restricted funds:
a,b,d
U.S. core fixed income fund
52 52 — 52 —
Government bonds and notes
39 39 — 39 —
Corporate bonds
27 27 — 27 —
Government mortgage-backed securities
25 25 — 25 —
Asset-backed securities
17 17 — 17 —
Money market funds
11 11 11 — —
Municipal bonds
1 1 — 1 —
Total
172 172 11 161 —
Derivatives:
a,e
Embedded derivatives in provisional sales/purchase contracts
in a gross asset position
15 15 — 15 —
Crude oil options
316 316 — — 316
Total
331 331 — 15 316
Total assets
$ 549 $ 34 $ 199 $ 316
Liabilities
Derivatives:
a,e
Embedded derivatives in provisional sales/purchase contracts
in a gross liability position
$ 93 $ 93 $ — $ 93 $ —
Copper futures and swap contracts
7 7 6 1 —
Total
100 100 6 94 —
Long-term debt, including current portion
f
18,970 18,735 — 18,735 —
Total liabilities
$ 18 ,8 3 5 $ 6 $ 18,829 $ —
FCX recognizes transfers between levels at the end of the
reporting period. FCX did not have any significant transfers in or
out of Level 1, 2 or 3 for 2014. A summary of the carrying amount
and fair value of FCX’s financial instruments, other than cash
and cash equivalents, accounts receivable, accounts payable and
accrued liabilities, and dividends payable follows:
NOTE 15. 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 inputs) and the lowest priority to unobservable inputs
(Level 3 inputs).