OTHER LIABILITIES, INCLUDING EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2016

Other Liabilities, Including Employee Benefits [Abstract]

The components of other liabilities follow:



	December 31,
	2016		2015
Pension, postretirement, postemployment and other employment benefits^a	$	1,345	$	1,260
Provision for tax positions	167		152
Legal matters	77		77
Insurance claim reserves	51		59
Accrued oil and gas contract commitments	43		—
Other	62		93
Total other liabilities	$	1,745	$	1,641


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 those plans where the accumulated benefit obligations exceed the fair value of plan assets follows:



	December 31,
	2016		2015
Projected benefit obligation	$	2,127	$	2,139
Accumulated benefit obligation	2,014		2,037
Fair value of plan assets	1,312		1,399

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

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



	FCX						PT-FI
	2016			2015			2016			2015
Change in benefit obligation:
Benefit obligation at beginning
of year	$	2,104		$	2,179		$	318		$	318
Service cost	27			36			27			26
Interest cost	93			87			29			23
Actuarial losses (gains)	92			(118		)	2			(7		)
Foreign exchange (gains) losses	(4		)	(2		)	8			(32		)
Special retirement benefits^a	—			22			—			—
Benefits paid	(177		)	(100		)	(10		)	(10		)
Benefit obligation at end of year	2,135			2,104			374			318

Change in plan assets:
Fair value of plan assets at
beginning of year	1,379			1,416			204			185
Actual return on plan assets	88			(26		)	47			6
Employer contributions^b	42			90			38			42
Foreign exchange (losses) gains	(3		)	(1		)	5			(19		)
Benefits paid	(177		)	(100		)	(10		)	(10		)
Fair value of plan assets at end
of year	1,329			1,379			284			204
Funded status	$	(806	)	$	(725	)	$	(90	)	$	(114	)

Accumulated benefit obligation	$	2,022		$	2,001		$	225		$	175

Weighted-average assumptions
used to determine benefit obligations:
Discount rate	4.40		%	4.60		%	8.25		%	9.00		%
Rate of compensation increase	3.25		%	3.25		%	8.00		%	9.40		%

Balance sheet classification of
funded status:
Other assets	$	9		$	8		$	—		$	—
Accounts payable and
accrued liabilities	(4		)	(35		)	—			—
Other liabilities	(811		)	(698		)	(90		)	(114		)
Total	$	(806	)	$	(725	)	$	(90	)	$	(114	)


a.	Resulted from the 2015 revised mine operating plans and reductions in the workforce (refer to Note 5 for further discussion).


b.	Employer contributions for 2017 are expected to approximate $140 million for the FCX plans and $32 million for the PT-FI plan (based on a December 31, 2016, exchange rate of 13,369 Indonesian 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:



	2016			2015			2014
Weighted-average assumptions:^a
Discount rate	4.60		%	4.10		%	5.00		%
Expected return on plan assets	7.25		%	7.25		%	7.50		%
Rate of compensation increase	3.25		%	3.25		%	3.75		%

Service cost	$	27		$	36		$	30
Interest cost	93			87			92
Expected return on plan assets	(96		)	(102		)	(98		)
Amortization of prior service credit	—			—			(1		)
Amortization of net actuarial losses	42			45			28
Special retirement benefits	—			22			—
Net periodic benefit cost	$	66		$	88		$	51


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:



	2016			2015			2014
Weighted-average assumptions:
Discount rate	9.00		%	8.25		%	9.00		%
Expected return on plan assets	7.75		%	7.75		%	7.75		%
Rate of compensation increase	9.40		%	9.00		%	9.00		%

Service cost	$	27		$	26		$	22
Interest cost	29			23			23
Expected return on plan assets	(17		)	(14		)	(10		)
Amortization of prior service cost	3			3			3
Amortization of net actuarial loss	5			6			8
Net periodic benefit cost	$	47		$	44		$	46

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:



	2016				2015
	Before Taxes		After Taxes and Noncontrolling Interests		Before Taxes		After Taxes and Noncontrolling Interests
Net actuarial loss	$	722	$	466	$	697	$	426
Prior service costs	21		11		23		12
	$	743	$	477	$	720	$	438

Schedule of Allocation of Plan Assets

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



	Fair Value at December 31, 2016
	Total			NAV		Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	420		$	420	$	—	$	—	$	—
Fixed income securities	129			129		—		—		—
Global fixed income securities	107			107		—		—		—
Real estate property	72			72		—		—		—
Emerging markets equity	66			66		—		—		—
U.S. small-cap equity	60			60		—		—		—
International small-cap equity	51			51		—		—		—
U.S. real estate securities	42			42		—		—		—
Short-term investments	17			17		—		—		—
Fixed income:
Government bonds	160			—		—		160		—
Corporate bonds	141			—		—		141		—
Private equity investments	25			25		—		—		—
Other investments	36			—		1		35		—
Total investments	1,326			$	989	$	1	$	336	$	—

Cash and receivables	4
Payables	(1		)
Total pension plan net assets	$	1,329



	Fair Value at December 31, 2015
	Total			NAV		Level 1		Level 2		Level 3
Commingled/collective funds:
Global equity	$	399		$	399	$	—	$	—	$	—
Fixed income securities	129			129		—		—		—
Global fixed income securities	101			101		—		—		—
Real estate property	66			66		—		—		—
Emerging markets equity	60			60		—		—		—
U.S. small-cap equity	56			56		—		—		—
International small-cap equity	56			56		—		—		—
U.S. real estate securities	55			55		—		—		—
Short-term investments	25			25		—		—		—
Fixed income:
Government bonds	215			—		—		215		—
Corporate bonds	145			—		—		145		—
Private equity investments	31			31		—		—		—
Other investments	39			—		1		38		—
Total investments	1,377			$	978	$	1	$	398	$	—

Cash and receivables	6
Payables	(4		)
Total pension plan net assets	$	1,379

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



	Fair Value at December 31, 2016
	Total			Level 1		Level 2		Level 3
Government bonds	$	78		$	78	$	—	$	—
Common stocks	72			72		—		—
Mutual funds	16			16		—		—
Total investments	166			$	166	$	—	$	—

Cash and receivables^a	119
Payables	(1		)
Total pension plan net assets	$	284



	Fair Value at December 31, 2015
	Total		Level 1		Level 2		Level 3
Common stocks	$	43	$	43	$	—	$	—
Government bonds	41		41		—		—
Mutual funds	12		12		—		—
Total investments	96		$	96	$	—	$	—

Cash and receivables^a	108
Total pension plan net assets	$	204


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-FI^a
2017	$	109	$	29
2018	146		16
2019	113		30
2020	115		38
2021	117		40
2022 through 2026	623		292


a.	Based on a December 31, 2016, exchange rate of 13,369 Indonesian rupiah to one U.S. dollar.