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OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Other Liabilities, Including Employee Benefits [Abstract]  
Components of Other Liabilities
The components of other liabilities follow:
 December 31,
 20202019
Pension, postretirement, postemployment and other employment benefitsa
$1,213 $1,318 
Cerro Verde royalty dispute376 502 
Provision for tax positions261 255 
Leasesb
190 204 
Other229 212 
Total other liabilities$2,269 $2,491 
a.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 qualified and non-qualified plans where the projected benefit obligations and the accumulated benefit obligations exceed the fair value of plan assets follows:
 December 31,
 20202019
Projected benefit obligation$2,666 $2,522 
Accumulated benefit obligation2,664 2,361 
Fair value of plan assets1,884 1,615 
Schedule of Changes Benefit Obligation, Fair Value of Plan Assets, and Funded Status of Plan
Information on the qualified and non-qualified FCX (FMC and SERP plans) and PT-FI plans as of December 31 follows:
FCXPT-FI
 2020201920202019
Change in benefit obligation:    
Benefit obligation at beginning of year$2,576 $2,230 $217 $220 
Service cost37 42 11 12 
Interest cost77 95 14 17 
Actuarial losses (gains)308 328 12 (27)
Foreign exchange losses (gains)1 1 (2)8 
Curtailment(154)— — — 
Benefits and administrative expenses paid(123)(120)(14)(13)
Benefit obligation at end of year2,722 2,576 238 217 
Change in plan assets:    
Fair value of plan assets at beginning of year1,677 1,433 254 238 
Actual return on plan assets272 289 13 19 
Employer contributionsa
119 74 2 — 
Foreign exchange gains (losses)1 1 (4)10 
Benefits and administrative expenses paid(123)(120)(14)(13)
Fair value of plan assets at end of year1,946 1,677 251 254 
Funded status$(776)$(899)$13 $37 
Accumulated benefit obligation$2,719 $2,414 $194 $175 
Weighted-average assumptions used to determine benefit obligations:    
Discount rate2.50 %3.40 %6.25 %7.25 %
Rate of compensation increase— %3.25 %4.00 %4.00 %
Balance sheet classification of funded status:    
Other assets$7 $8 $13 $37 
Accounts payable and accrued liabilities(4)(4)— — 
Other liabilities(779)(903)— — 
Total$(776)$(899)$13 $37 
a.Employer contributions for 2021 are expected to approximate $64 million for the FCX plans and $2 million for the PT-FI plan (based on a December 31, 2020, exchange rate of 14,034 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:
 202020192018
Weighted-average assumptions:a
   
Discount rate2.98 %4.40 %3.70 %
Expected return on plan assets6.25 %6.50 %6.50 %
Rate of compensation increase3.25 %3.25 %3.25 %
Service cost$37 $42 $44 
Interest cost77 95 84 
Expected return on plan assets(105)(90)(101)
Amortization of net actuarial losses45 48 49 
Curtailment loss4 — — 
Net periodic benefit cost$58 $95 $76 
a.The assumptions shown relate only to the FMC Retirement Plan.

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:
 202020192018
Weighted-average assumptions:   
Discount rate7.25 %8.25 %6.75 %
Expected return on plan assets7.75 %8.25 %6.75 %
Rate of compensation increase4.00 %4.00 %4.00 %
Service cost$11 $12 $13 
Interest cost14 17 14 
Expected return on plan assets(19)(17)(19)
Amortization of prior service cost2 1 2 
Amortization of net actuarial gains(3)(1)(1)
Net periodic benefit cost$5 $12 $9 
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:
20202019
 
Before Taxes
After Taxes and Noncontrolling Interests
Before Taxes
After Taxes and Noncontrolling Interests
Net actuarial losses$673 $558 $710 $604 
Prior service costs6 1 11 6 
$679 $559 $721 $610 
Schedule of Allocation of Plan Assets
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, 2020
 TotalNAVLevel 1Level 2Level 3
Commingled/collective funds:    
    Global equity$527 $527 $— $— $— 
    Fixed income securities404 404 — — — 
    International small-cap equity76 76 — — — 
    Real estate property59 59 — — — 
    U.S. real estate securities51 51 — — — 
    Short-term investments51 51 — — — 
    U.S. small-cap equity25 25 — — — 
Fixed income:    
Corporate bonds381 — — 381 — 
Government bonds181 — — 181 — 
Global large-cap equity securities109 — 109 — — 
Private equity investments10 10 — — — 
Other investments55 — 1 54 — 
Total investments1,929 $1,203 $110 $616 $— 
Cash and receivables100 
Payables(83)
Total pension plan net assets$1,946 
 Fair Value at December 31, 2019
 TotalNAVLevel 1Level 2Level 3
Commingled/collective funds:      
Global equity$425 $425 $— $— $— 
Fixed income securities239 239 — — — 
U.S. small-cap equity67 67 — — — 
Real estate property58 58 — — — 
International small-cap equity55 55 — — — 
U.S. real estate securities53 53 — — — 
Short-term investments16 16 — — — 
Fixed income:
Government bonds279 — — 279 — 
Corporate bonds256 — — 256 — 
Global large-cap equity securities107 — 107 — — 
Private equity investments11 11 — — — 
Other investments64 — 14 50 — 
Total investments1,630 $924 $121 $585 $— 
Cash and receivables86 
Payables(39)
Total pension plan net assets$1,677 
A summary of the fair value hierarchy for pension plan assets associated with the PT-FI plan follows:
 Fair Value at December 31, 2020
 TotalLevel 1Level 2Level 3
Government bonds$117 $117 $— $— 
Common stocks77 77 — — 
Mutual funds18 18 — — 
Total investments212 $212 $— $— 
Cash and receivablesa
41 
Payables(2)
Total pension plan net assets$251 
 Fair Value at December 31, 2019
 TotalLevel 1Level 2Level 3
Government bonds$93 $93 $— $— 
Common stocks80 80 — — 
Mutual funds17 17 — — 
Total investments190 $190 $— $— 
Cash and receivablesa
65 
Payables(1)
Total pension plan net assets$254 
a.Cash consists primarily of short-term time deposits.
Schedule of Expected Benefit Payments
The expected benefit payments for FCX’s and PT-FI’s pension plans follow:
FCX
PT-FIa
2021$127 $16 
2022174 21 
2023129 29 
2024131 31 
2025132 28 
2026 through 2030655 154 
a.Based on a December 31, 2020, exchange rate of 14,034 Indonesia rupiah to one U.S. dollar.