SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction

[Table of Contents](#i43d04c9d26874e33802bdf64c458414a_7)REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  
To the Board of Directors and Stockholders ofFreeport-McMoRan Inc.  
We have audited the consolidated financial statements of Freeport-McMoRan Inc. (the Company) as of December 31, 2021 and 2020, for each of the three years in the period ended December 31, 2021, and have issued our report thereon dated February 15, 2022 included elsewhere in this Form 10-K. Our audits of the consolidated financial statements included the financial statement schedule listed in Item 15 (a)(2) of this Form 10-K (the “schedule”). This schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s schedule based on our audits.   
In our opinion, the schedule presents fairly, in all material respects, the information set forth therein when considered in conjunction with the consolidated financial statements.  
/s/ Ernst & Young LLP  
Phoenix, ArizonaFebruary 15, 2022   
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In millions)

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|   |  |   |  | Additions (Deductions) |  |   |   |   |
|   |  | Balance at |  | Charged to |  | Charged to |  | Other |   | Balance at |
|   |  | Beginning of |  | Costs and |  | Other |  | (Deductions) |   | End of |
|   |  | Year |  | Expense |  | Accounts |  | Additions |   | Year |
| Reserves and allowances deducted |  |   |  |   |  |   |  |   |   |   |
| from asset accounts: |  |   |  |   |  |   |  |   |   |   |
|  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
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|  |  |  |  |  |  |  |  |  |  |  |
| Valuation allowance for deferred tax assets |  |   |  |   |  |   |  |   |   |   |
| Year Ended December 31, 2021 |  | $ | 4,732  |  |  | $ | (596) |  | a | $ | (49) |  | b | $ | —  |  |  | $ | 4,087  |  |
| Year Ended December 31, 2020 |  | 4,576  |  |  | 200  |  | c | (16) |  | b | (28) |  | d | 4,732  |  |
| Year Ended December 31, 2019 |  | 4,507  |  |  | 50  |  | e | 19  |  | b | —  |  |  | 4,576  |  |
|  |  |  |  |  |  |  |  |  |  |  |
| Reserves for non-income taxes: |  |   |  |   |  |   |  |   |   |   |
| Year Ended December 31, 2021 |  | $ | 82  |  |  | $ | 18  |  |  | $ | —  |  |  | $ | (41) |  | f | $ | 59  |  |
| Year Ended December 31, 2020 |  | 58  |  |  | 21  |  |  | (1) |  |  | 4  |  | f | 82  |  |
| Year Ended December 31, 2019 |  | 62  |  |  | —  |  |  | —  |  |  | (4) |  | f | 58  |  |

a.Primarily relates to a $219 million decrease associated with U.S. federal net operating losses (NOLs) utilized during 2021, a $105 million decrease related to expiration of U.S. foreign tax credits, and a $228 million decrease associated with PT Rio Tinto NOLs resulting from positive evidence supporting future taxable income against which NOLs can be used.b.Relates to a valuation allowance for tax benefits primarily associated with actuarial (gains) losses for U.S. defined benefit plans included in other comprehensive income (loss).c.Primarily relates to a $250 million increase in U.S. federal NOL carryforwards, partly offset by a $75 million decrease in U.S. foreign tax credits associated with expirations, and a $11 million decrease in U.S. deferred tax assets for which no benefit is expected to be realized. d.Relates to sale of interest in Kisanfu.e.Primarily relates to a $208 million increase in U.S. federal deferred tax assets for which no benefit is expected to be realized, partly offset by a $98 million decrease in U.S. foreign tax credits associated with expirations and prior-year adjustments, and a $44 million decrease in U.S. federal and state NOL carryforwardsf.Represents amounts paid or adjustments to reserves based on revised estimates.  
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