OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2019

Other Liabilities, Including Employee Benefits [Abstract]

The components of other liabilities follow:



	December 31,
	2019		2018
Pension, postretirement, postemployment and other employment benefits^a	$	1,318	$	1,174
Cerro Verde royalty dispute	502		631
Provision for tax positions	255		230
Leases^b	204		—
Other	212		195
Total other liabilities	$	2,491	$	2,230

Refer to Note 7 for current portion.

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

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



	December 31,
	2019		2018
Projected benefit obligation	$	2,522	$	2,177
Accumulated benefit obligation	2,361		2,048
Fair value of plan assets	1,615		1,373

Schedule of Changes Benefit Obligation, Fair Value of Plan Assets, and Funded Status of Plan

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



	FCX						PT-FI
	2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,230		$	2,343		$	220		$	240
Service cost	42			44			12			13
Interest cost	95			84			17			14
Actuarial losses (gains)	328			(124		)	(27		)	(19		)
Plan amendments	—			4			—			—
Foreign exchange losses (gains)	1			(1		)	8			(15		)
Benefits and administrative expenses paid	(120		)	(120		)	(13		)	(13		)
Benefit obligation at end of year	2,576			2,230			217			220

Change in plan assets:
Fair value of plan assets at beginning of year	1,433			1,588			238			269
Actual return on plan assets	289			(104		)	19			(5		)
Employer contributions^a	74			70			—			4
Foreign exchange gains (losses)	1			(1		)	10			(17		)
Benefits and administrative expenses paid	(120		)	(120		)	(13		)	(13		)
Fair value of plan assets at end of year	1,677			1,433			254			238
Funded status	$	(899	)	$	(797	)	$	37		$	18

Accumulated benefit obligation	$	2,414		$	2,101		$	175		$	181

Weighted-average assumptions used to determine benefit obligations:
Discount rate	3.40		%	4.40		%	7.25		%	8.25		%
Rate of compensation increase	3.25		%	3.25		%	4.00		%	4.00		%

Balance sheet classification of funded status:
Other assets	$	8		$	7		$	37		$	18
Accounts payable and accrued liabilities	(4		)	(4		)	—			—
Other liabilities	(903		)	(800		)	—			—
Total	$	(899	)	$	(797	)	$	37		$	18

Employer contributions for 2020 are expected to approximate $132 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2019, exchange rate of 13,832 Indonesia rupiah to one U.S. dollar).

Schedule of Assumptions Used

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:



	2019			2018			2017
Weighted-average assumptions:^a
Discount rate	4.40		%	3.70		%	4.40		%
Expected return on plan assets	6.50		%	6.50		%	7.00		%
Rate of compensation increase	3.25		%	3.25		%	3.25		%

Service cost	$	42		$	44		$	44
Interest cost	95			84			91
Expected return on plan assets	(90		)	(101		)	(93		)
Amortization of net actuarial losses	48			49			49
Net periodic benefit cost	$	95		$	76		$	91


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:



	2019			2018			2017
Weighted-average assumptions:
Discount rate	8.25		%	6.75		%	8.25		%
Expected return on plan assets	8.25		%	6.75		%	7.75		%
Rate of compensation increase	4.00		%	4.00		%	8.00		%

Service cost	$	12		$	13		$	20
Interest cost	17			14			23
Expected return on plan assets	(17		)	(19		)	(21		)
Amortization of prior service cost	1			2			2
Amortization of net actuarial gains	(1		)	(1		)	—
Curtailment loss	—			—			4
Net periodic benefit cost	$	12		$	9		$	28

Schedule of Net Periodic Benefit Cost Not yet Recognized

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



	2019				2018
	Before Taxes		After Taxes and Noncontrolling Interests		Before Taxes		After Taxes and Noncontrolling Interests
Net actuarial losses	$	710	$	604	$	659	$	539
Prior service costs	11		6		13		8
	$	721	$	610	$	672	$	547

Schedule of Allocation of Plan Assets

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



	Fair Value at December 31, 2019
	Total			Level 1		Level 2		Level 3
Government bonds	$	93		$	93	$	—	$	—
Common stocks	80			80		—		—
Mutual funds	17			17		—		—
Total investments	190			$	190	$	—	$	—

Cash and receivables^a	65
Payables	(1		)
Total pension plan net assets	$	254



	Fair Value at December 31, 2018
	Total			Level 1		Level 2		Level 3
Government bonds	$	72		$	72	$	—	$	—
Common stocks	72			72		—		—
Mutual funds	20			20		—		—
Total investments	164			$	164	$	—	$	—

Cash and receivables^a	75
Payables	(1		)
Total pension plan net assets	$	238


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

A summary of the fair value for pension plan assets, including those measured at net asset value (NAV) as a practical expedient, associated with the FCX plans follows:



	Fair Value at December 31, 2019
	Total			NAV		Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	425		$	425	$	—	$	—	$	—
Fixed income securities	239			239		—		—		—
U.S. small-cap equity	67			67		—		—		—
Real estate property	58			58		—		—		—
International small-cap equity	55			55		—		—		—
U.S. real estate securities	53			53		—		—		—
Short-term investments	16			16		—		—		—
Fixed income:
Government bonds	279			—		—		279		—
Corporate bonds	256			—		—		256		—
Global large-cap equity securities	107			—		107		—		—
Private equity investments	11			11		—		—		—
Other investments	64			—		14		50		—
Total investments	1,630			$	924	$	121	$	585	$	—

Cash and receivables	86
Payables	(39		)
Total pension plan net assets	$	1,677



	Fair Value at December 31, 2018
	Total			NAV		Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	291		$	291	$	—	$	—	$	—
Fixed income securities	144			144		—		—		—
Global fixed income securities	108			108		—		—		—
Emerging markets equity	71			71		—		—		—
Real estate property	55			55		—		—		—
U.S. small-cap equity	54			54		—		—		—
International small-cap equity	47			47		—		—		—
U.S. real estate securities	41			41		—		—		—
Short-term investments	15			15		—		—		—
Fixed income:
Government bonds	224			—		—		224		—
Corporate bonds	211			—		—		211		—
Global large-cap equity securities	94			—		94		—		—
Private equity investments	15			15		—		—		—
Other investments	61			—		16		45		—
Total investments	1,431			$	841	$	110	$	480	$	—

Cash and receivables	32
Payables	(30		)
Total pension plan net assets	$	1,433

Schedule of Expected Benefit Payments

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



	FCX		PT-FI^a
2020	$	120	$	12
2021	166		19
2022	127		22
2023	129		30
2024	131		32
2025 through 2029	679		155

Based on a December 31, 2019, exchange rate of 13,832 Indonesia rupiah to one U.S. dollar.