EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2011

Employee Benefits [Abstract]

Schedule of defined benefit plans disclosure

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

	2011			2010			2009
Weighted-average assumptions:
Discount rate	4.90		%	5.20		%	6.30		%
Service cost	$	1		$	1		$	1
Interest cost	11			13			15
Curtailments and special retirement benefits	—			—			(1		)
Net periodic benefit cost	$	12		$	14		$	15

The assumed medical-care trend rates at December 31 follow:

	2011		2010
Medical-care cost trend rate assumed for
the next year	8.00	%	8.25	%
Rate to which the cost trend rate is assumed
to decline (the ultimate trend rate)	4.50	%	4.75	%
Year that the rate reaches the ultimate trend rate	2026		2025

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

	2011			2010
Change in benefit obligation:
Benefit obligation at beginning of year	$	240		$	265
Service cost	1			1
Interest cost	11			13
Actuarial gains	(7		)	(13		)
Benefits paid, net of employee and partner contributions,
and Medicare Part D subsidy	(22		)	(26		)
Benefit obligation at end of year	223			240
Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer and partner contributions	25			30
Employee contributions	12			11
Benefits paid	(37		)	(41		)
Fair value of plan assets at end of year	—			—
Funded status	$	(223	)	$	(240	)
Discount rate assumption	4.20		%	4.90		%
Balance sheet classification of funded status:
Accounts payable and accrued liabilities	$	(23	)	$	(26	)
Other liabilities	(200		)	(214		)
Total	$	(223	)	$	(240	)

FCX uses a measurement date of December 31 for its plans. In some plans, the plan assets exceed the accumulated benefit obligations, while in the remainder, the accumulated benefit obligations exceed the plan assets. Information for those plans where the accumulated benefit obligations exceed the plan assets follows:

	December 31,
	2011		2010
Projected benefit obligation	$	2,055	$	1,662
Accumulated benefit obligation	1,874		1,581
Fair value of plan assets	1,261		1,122

Information on the FCX (including FMC’s plans; and FCX’s SERP, director and excess benefits plans), PT Freeport Indonesia and Atlantic Copper plans as of December 31 follows:

	FCX						PT Freeport Indonesia						Atlantic Copper
	2011			2010			2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at beginning
of year	$	1,598		$	1,472		$	135		$	80		$	71		$	79
Service cost	24			26			13			8			—			—
Interest cost	83			82			11			8			3			3
Actuarial losses	172			104			55			41			—			—
Foreign exchange losses (gains)	(1		)	(1		)	(1		)	4			(1		)	(4		)
Benefits paid	(85		)	(85		)	(7		)	(6		)	(8		)	(7		)
Benefit obligation at end of year	1,791			1,598			206			135			65			71
Change in plan assets:
Fair value of plan assets at
beginning of year	1,112			1,067			97			78			23			21
Actual return on plan assets	88			126			9			13			—			—
Employer contributionsa	26			5			9			8			11			9
Foreign exchange gains (losses)	—			(1		)	(1		)	4			—			—
Benefits paid	(85		)	(85		)	(7		)	(6		)	(8		)	(7		)
Fair value of plan assets at end
of year	1,141			1,112			107			97			26			23
Funded status	$	(650	)	$	(486	)	$	(99	)	$	(38	)	$	(39	)	$	(48	)
Accumulated benefit obligation	$	1,701		$	1,517		$	115		$	68		$	65		$	71
Weighted-average assumptions
used to determine benefit obligations:
Discount rateb	4.60		%	5.40		%	7.00		%	8.50		%	6.77		%	6.77		%
Rate of compensation increasec	3.75		%	3.75		%	8.00		%	8.00		%	NA			NA
Balance sheet classification of
funded status:
Other assets	$	6		$	6		$	—		$	—		$	—		$	—
Accounts payable and
accrued liabilities	(4		)	(4		)	—			—			—			—
Other liabilities	(652		)	(488		)	(99		)	(38		)	(39		)	(48		)
Total	$	(650	)	$	(486	)	$	(99	)	$	(38	)	$	(39	)	$	(48	)

a. Employer contributions for 2012 are expected to approximate $97 million for the FCX plans, $14 million for the PT Freeport Indonesia plan (based on a December 31, 2011, exchange rate of 9,060 Indonesian rupiah to one U.S. dollar) and $9 million for the Atlantic Copper plan (based on a December 31, 2011, exchange rate of $1.29 per euro).

b. The discount rate shown in 2011 and 2010 for the FCX plans relates to all plans except the SERP plan. The SERP plan’s discount rate in 2011 and 2010 was 4.00 percent.

c. The rate of compensation increase shown for the FCX plans only relates to the FMC plans. The rate of compensation increase shown for the PT Freeport Indonesia plan relates to the years after 2012. For the PT Freeport Indonesia plan, the rate of compensation increase for 2012 ranges from 10 percent to 13 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 (FMC’s plans; and FCX’s SERP, director and excess benefits plans) for the years ended December 31 follows:

	2011			2010			2009
Weighted-average assumptions:
Discount rate:
FCX SERP	4.00		%	4.00		%	4.00		%
FMC plans	5.40		%	5.80		%	6.10		%
Expected return on plan assetsa	8.00		%	8.50		%	8.50		%
Rate of compensation increasea	3.75		%	4.25		%	4.25		%
Service cost	$	24		$	26		$	26
Interest cost	83			82			85
Expected return on plan assets	(86		)	(87		)	(73		)
Amortization of prior service cost	(1		)	(1		)	—
Amortization of net actuarial losses	19			22			26
Curtailments and special retirement
benefits	—			—			(4		)
Net periodic benefit cost	$	39		$	42		$	60

a. The assumptions shown only relate 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 Freeport Indonesia’s and Atlantic Copper’s pension plans for the years ended December 31 follows:

	PT Freeport Indonesia
	2011			2010			2009
Weighted-average assumptions:
Discount rate	8.50		%	10.50		%	12.00		%
Expected return on plan assets	9.25		%	8.25		%	10.00		%
Rate of compensation increase	8.00		%	8.00		%	8.00		%
Service cost	$	13		$	8		$	5
Interest cost	11			8			7
Expected return on plan assets	(9		)	(7		)	(5		)
Amortization of prior service cost	1			1			1
Amortization of net actuarial loss	3			—			1
Net periodic benefit cost	$	19		$	10		$	9

	Atlantic Copper
	2011			2010			2009
Weighted-average assumption:
Discount rate	6.77		%	6.77		%	6.77		%
Interest cost	$	3		$	3		$	4
Amortization of net actuarial loss	1			1			1
Net periodic benefit cost	$	4		$	4		$	5

The expected benefit payments for FCX’s (including FMC’s plans; and FCX’s SERP, director and excess benefits plans), PT Freeport Indonesia’s and Atlantic Copper’s pension plans follows:

	FCX		PT Freeport Indonesiaa		Atlantic Copperb
2012	$	88	$	16	$	7
2013	88		11		7
2014	90		11		7
2015	91		13		7
2016	94		14		7
2017 through 2021	515		123		36

a. Based on a December 31, 2011, exchange rate of 9,060 Indonesian rupiah to one U.S. dollar.

b. Based on a December 31, 2011, exchange rate of $1.29 per euro.

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 FCX plans follows:

	Fair Value at December 31, 2011
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	408		$	—	$	408	$	—
U.S. real estate securities	52			—		52		—
U.S. small-cap equity	45			—		45		—
Real estate property	35			—		—		35
Short-term investments	22			—		22		—
Open-ended mutual funds:
Government bonds	50			50		—		—
Emerging markets equity	36			36		—		—
Corporate bonds	22			22		—		—
Mutual funds:
Foreign bonds	43			43		—		—
Emerging markets bond	32			32		—		—
Emerging markets equity	24			24		—		—
Fixed income:
Government bonds	233			—		233		—
Corporate bonds	73			—		73		—
Private equity investments	50			—		—		50
Other investments	23			—		23		—
Total investments	1,148			$	207	$	856	$	85
Cash and receivables	6
Payables	(13		)
Total pension plan net assets	$	1,141

	Fair Value at December 31, 2010
	Total			Level 1		Level 2		Level 3
Commingled/collective funds:
U.S. large-cap equity	$	134		$	—	$	134	$	—
U.S. small-cap equitya	101			—		101		—
International equity	71			—		71		—
U.S. real estate securitiesa	47			—		47		—
Real estate property	28			—		—		28
Short-term investmentsa	19			—		19		—
Open-ended mutual funds:
Emerging markets equity	46			46		—		—
Government bonds	38			38		—		—
Corporate bonds	30			30		—		—
Mutual funds:
Foreign bonds	38			38		—		—
Emerging markets bond	30			30		—		—
Emerging markets equity	29			29		—		—
Equity securities:
U.S. large-cap equity	161			161		—		—
International equity	57			57		—		—
Fixed income:
Government bonds	147			—		147		—
Corporate bonds	74			—		74		—
Private equity investments	46			—		—		46
Other investments	28			1		27		—
Total investments	1,124			$	430	$	620	$	74
Cash and receivables	81
Payables	(93		)
Total pension plan net assets	$	1,112

a. At the end of 2011, FCX reevaluated its level determinations, including those reported at December 31, 2010. While the majority of the underlying investments consists of publicly traded securities with actively quoted market values, the reported fair value of the investment vehicle containing these securities is based on net asset values that are not published publicly; therefore, FCX concluded these investments are more appropriately classified within Level 2 of the fair value hierarchy.

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

	Fair Value at December 31, 2011
	Total		Level 1		Level 2		Level 3
Common stocks	$	29	$	29	$	—	$	—
Government bonds	22		22		—		—
Total investments	51		$	51	$	—	$	—
Cash and receivablesa	56
Total pension plan net assets	$	107

	Fair Value at December 31, 2010
	Total		Level 1		Level 2		Level 3
Common stocks	$	29	$	29	$	—	$	—
Government bonds	19		19		—		—
Total investments	48		$	48	$	—	$	—
Cash and receivablesa	49
Total pension plan net assets	$	97

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

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, follows:

	Private Equity Investments			Real Estate Property		Total
Balance at January 1, 2010	$	40		$	25	$	65
Actual return on plan assets:
Realized gains	—			2		2
Net unrealized gains related to
assets still held at the end of the year	2			1		3
Purchases	7			—		7
Settlements, net	(3		)	—		(3		)
Balance at December 31, 2010	46			28		74
Actual return on plan assets:
Realized gains (losses)	(2		)	2		—
Net unrealized gains related to
assets still held at the end of the year	5			5		10
Purchases	5			—		5
Settlements, net	(4		)	—		(4		)
Balance at December 31, 2011	$	50		$	35	$	85