Insurance receivables, current

  
Insurance.  FCX purchases a variety of insurance products to mitigate potential losses, which typically have specified deductible amounts or self-insured retentions and policy limits. FCX generally is self-insured for U.S. workers’ compensation, but purchases excess insurance up to statutory limits. An actuarial analysis is performed twice a year on the various casualty insurance programs covering FCX’s U.S.-based mining operations, including workers’ compensation, to estimate expected losses. At December 31, 2021, FCX’s liability for expected losses under these insurance programs totaled $62 million, which consisted of a current portion of $11 million (included in accounts payable and accrued liabilities) and a long-term portion of $51 million (included in other liabilities). In addition, FCX has receivables of $26 million (a current portion of $7 million included in other accounts receivable and a long-term portion of $19 million included in other assets) for expected claims associated with these losses to be filed with insurance carriers.   
FCX’s oil and gas operations are subject to all of the risks normally incidental to the production of oil and gas, including well blowouts, cratering, explosions, oil spills, releases of gas or well fluids, fires, pollution and releases of toxic gas, each of which could result in damage to or destruction of oil and gas wells, production facilities or other property, or injury to persons. While FCX is not fully insured against all risks related to its oil and gas operations, its insurance policies provide limited coverage for losses or liabilities relating to pollution, with broader coverage for sudden and accidental occurrences. FCX is self-insured for named windstorms in the GOM.   
NOTE 13.  COMMITMENTS AND GUARANTEESLeases. Effective January 1, 2019, FCX adopted the new Accounting Standards Update (ASU) for lease accounting, and nearly all of FCX’s leases were considered operating leases under the new ASU. FCX leases various types of properties, including land, offices and equipment under non-cancelable leases.  
The components of FCX’s leases presented in the consolidated balance sheet for the years ended December 31 follow:

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|  | December 31, |  |  |
|  | 2021 |  | 2020 |  |  |
| Lease right-of-use assets (included in property, plant, equipment and mine development costs, net) | $ | 277  |  |  | $ | 207  |  |  |  |
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| Short-term lease liabilities (included in accounts payable and accrued liabilities) | $ | 38  |  |  | $ | 38  |  |  |  |
| Long-term lease liabilities (included in other liabilities) | 281  |  | a | 190  |  |  |  |
| Total lease liabilities | $ | 319  |  |  | $ | 228  |  |  |  |
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a.Includes a land lease by PT-FI for the greenfield smelter totaling $126 million. This is FCX’s only significant finance lease.  
Operating lease costs, primarily included in production and delivery expense in the consolidated statement of operations, for the two years ended December 31 follow: 

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|  |  | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  |  |  |
| Operating leases |  | $ | 42  |  |  | $ | 42  |  |  | $ | 55  |  |
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| Variable and short-term leases |  | 62  |  |  | 74  |  |  | 79  |  |
| Total operating lease costs |  | $ | 104  |  |  | $ | 116  |  |  | $ | 134  |  |
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FCX payments included in operating cash flows for its lease liabilities totaled $54 million in 2021, $36 million in 2020 and $38 million in 2019. FCX payments included in financing cash flows for its lease liabilities totaled $25 million in 2021 and $4 million in both 2020 and 2019. As of December 31, 2021, the weighted-average discount rate used to determine the lease liabilities was 4.2 percent (5.4 percent as of December 31, 2020) and the weighted-average remaining lease term was 12.4 years (7.7 years as of December 31, 2020).  
  
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