OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2013

Other Liabilities, Including Employee Benefits [Abstract]

Additional information regarding other liabilities

Information regarding other liabilities follows:



	December 31,
	2013		2012
Pension, postretirement, postemployment and other employment benefits^a	$	1,225	$	1,340
Commodity derivative contracts	115		—
Reserve for uncertain tax benefits	87		107
Other	263		197
Total other liabilities	$	1,690	$	1,644


a.	Refer to Note 7 for current portion.

Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

Included in accumulated other comprehensive loss are the following amounts that have not been recognized in net periodic pension cost as of December 31:



	2013				2012
	Before Taxes		After Taxes and Noncontrolling Interests		Before Taxes			After Taxes and Noncontrolling Interests
Prior service costs (credits)	$	32	$	17	$	(2	)	$	(1	)
Net actuarial loss	542		326		705			429
	$	574	$	343	$	703		$	428

Schedule of defined benefit plans disclosure

The expected benefit payments for FCX’s and PT-FI’s pension plans follow:



	FCX		PT-FI^a
2014	$	93	$	21
2015	147		12
2016	99		13
2017	102		18
2018	106		21
2019 through 2023	584		194


a.	Based on a December 31, 2013, exchange rate of 12,128 Indonesian rupiah to one U.S. dollar.

FCX uses a measurement date of December 31 for its plans. Information for those plans where the accumulated benefit obligations exceed the fair value of plan assets follows:



	December 31,
	2013		2012
Projected benefit obligation	$	2,180	$	2,247
Accumulated benefit obligation	1,933		2,031
Fair value of plan assets	1,490		1,443

Information on the FCX (including FMC’s plans and FCX’s SERP plans) and PT-FI plans as of December 31 follows:



	FCX						PT-FI
	2013			2012			2013			2012
Change in benefit obligation:
Benefit obligation at beginning
of year	$	1,954		$	1,791		$	240		$	206
Service cost	30			27			20			17
Interest cost	77			79			14			14
Actuarial (gains) losses	(103		)	142			13			25
Plan amendment	—			—			33			—
Foreign exchange losses (gains)	1			1			(53		)	(13		)
Benefits paid	(88		)	(86		)	(8		)	(9		)
Benefit obligation at end of year	1,871			1,954			259			240

Change in plan assets:
Fair value of plan assets at
beginning of year	1,300			1,141			130			107
Actual return on plan assets	112			140			(3		)	12
Employer contributions^a	26			105			35			26
Foreign exchange losses	—			—			(30		)	(6		)
Benefits paid	(88		)	(86		)	(8		)	(9		)
Fair value of plan assets at end
of year	1,350			1,300			124			130
Funded status	$	(521	)	$	(654	)	$	(135	)	$	(110	)

Accumulated benefit obligation	$	1,742		$	1,842		$	141		$	136

Weighted-average assumptions
used to determine benefit obligations:
Discount rate	5.00		%	4.10		%	9.00		%	6.25		%
Rate of compensation increase^b	3.75		%	3.75		%	10.00		%	8.00		%

Balance sheet classification of
funded status:
Other assets	$	8		$	7		$	—		$	—
Accounts payable and
accrued liabilities	(4		)	(4		)	—			—
Other liabilities	(525		)	(657		)	(135		)	(110		)
Total	$	(521	)	$	(654	)	$	(135	)	$	(110	)


a.	Employer contributions for 2014 are expected to approximate $5 million for the FCX plans and $22 million for the PT-FI plan (based on a December 31, 2013, exchange rate of 12,128 Indonesian rupiah to one U.S. dollar).


b.	The rate of compensation increase shown for the PT-FI plan in 2013 related to non-staff employees (staff employees was 8 percent).

The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for FCX’s pension plans for the years ended December 31 follow:



	2013			2012			2011
Weighted-average assumptions:^a
Discount rate	4.10		%	4.60		%	5.40		%
Expected return on plan assets	7.50		%	7.50		%	8.00		%
Rate of compensation increase	3.75		%	3.75		%	3.75		%

Service cost	$	30		$	27		$	24
Interest cost	77			79			83
Expected return on plan assets	(95		)	(86		)	(86		)
Amortization of prior service cost	—			(1		)	(1		)
Amortization of net actuarial losses	38			33			19
Net periodic benefit cost	$	50		$	52		$	39


a.	The assumptions shown relate only to the FMC plans.

The weighted-average assumptions used to determine net periodic benefit cost and the components of net periodic benefit cost for PT-FI’s pension plan for the years ended December 31 follow:



	2013			2012			2011
Weighted-average assumptions:
Discount rate	6.25		%	7.00		%	8.50		%
Expected return on plan assets	7.50		%	9.25		%	9.25		%
Rate of compensation increase	8.00		%	8.00		%	8.00		%

Service cost	$	20		$	17		$	13
Interest cost	14			14			11
Expected return on plan assets	(10		)	(9		)	(9		)
Amortization of prior service cost	—			1			1
Amortization of net actuarial loss	8			7			3
Net periodic benefit cost	$	32		$	30		$	19

Information on the postretirement benefit plans as of December 31 follows:



	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	213		$	223
Service cost	1			1
Interest cost	7			9
Actuarial (gains) losses	(24		)	2
Plan amendments and acquisition	6			—
Benefits paid, net of employee and joint venture partner
contributions, and Medicare Part D subsidy	(21		)	(22		)
Benefit obligation at end of year	182			213

Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer and joint venture partner contributions	23			25
Employee contributions	11			10
Benefits paid	(34		)	(35		)
Fair value of plan assets at end of year	—			—

Funded status	$	(182	)	$	(213	)

Discount rate assumption	4.30		%	3.50		%

Balance sheet classification of funded status:
Accounts payable and accrued liabilities	$	(19	)	$	(21	)
Other liabilities	(163		)	(192		)
Total	$	(182	)	$	(213	)

Schedule of fair value of financial assets for pension and postretirement benefits

A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows:



	Fair Value at December 31, 2013
	Total		Level 1		Level 2		Level 3
Common stocks	$	27	$	27	$	—	$	—
Government bonds	23		23		—		—
Mutual funds	12		12		—		—
Total investments	62		$	62	$	—	$	—

Cash and receivables^a	62
Total pension plan net assets	$	124



	Fair Value at December 31, 2012
	Total		Level 1		Level 2		Level 3
Common stocks	$	32	$	32	$	—	$	—
Government bonds	27		27		—		—
Mutual funds	10		10		—		—
Total investments	69		$	69	$	—	$	—

Cash and receivables^a	61
Total pension plan net assets	$	130


a.	Cash consisted primarily of short-term time deposits.

A summary of the fair value hierarchy for pension plan assets associated with the FCX plans follows:



	Fair Value at December 31, 2013
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	623		$	—	$	623	$	—
U.S. small-cap equity	65			—		65		—
Real estate property	47			—		—		47
U.S. real estate securities	40			—		40		—
Fixed income debt securities	30			—		30		—
Short-term investments	5			—		5		—
Open-ended mutual funds:
Government bonds	43			43		—		—
Emerging markets equity	41			41		—		—
Corporate bonds	33			33		—		—
Mutual funds:
Foreign bonds	51			51		—		—
Emerging markets equity	26			26		—		—
Emerging markets bond	20			20		—		—
Fixed income:
Government bonds	198			—		198		—
Corporate bonds	52			—		52		—
Private equity investments	43			—		—		43
Other investments	29			1		28		—
Total investments	1,346			$	215	$	1,041	$	90

Cash and receivables	18
Payables	(14		)
Total pension plan net assets	$	1,350



	Fair Value at December 31, 2012
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	481		$	—	$	481	$	—
U.S. real estate securities	61			—		61		—
U.S. small-cap equity	52			—		52		—
Real estate property	41			—		—		41
Short-term investments	40			—		40		—
Open-ended mutual funds:
Government bonds	48			48		—		—
Emerging markets equity	41			41		—		—
Corporate bonds	23			23		—		—
Mutual funds:
Foreign bonds	54			54		—		—
Emerging markets bond	37			37		—		—
Emerging markets equity	28			28		—		—
Fixed income:
Government bonds	241			—		241		—
Corporate bonds	82			—		82		—
Private equity investments	45			—		—		45
Other investments	33			1		32		—
Total investments	1,307			$	232	$	989	$	86

Cash and receivables	5
Payables	(12		)
Total pension plan net assets	$	1,300

Summary of changes in the fair value of level 3 pension plan assets

A summary of changes in the fair value of FCX’s Level 3 pension plan assets for the years ended December 31 follow:



	Private Equity Investments			Real Estate Property			Total
Balance at January 1, 2012	$	50		$	35		$	85
Actual return on plan assets:
Realized gains	—			2			2
Net unrealized (losses) gains related to
assets still held at the end of the year	(5		)	4			(1		)
Purchases	4			—			4
Settlements, net	(4		)	—			(4		)
Balance at December 31, 2012	45			41			86
Actual return on plan assets:
Realized gains	—			1			1
Net unrealized (losses) gains related to
assets still held at the end of the year	(1		)	6			5
Purchases	3			—			3
Sales	—			(1		)	(1		)
Settlements, net	(4		)	—			(4		)
Balance at December 31, 2013	$	43		$	47		$	90

- Definition

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

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