FREEPORT MCMORAN COPPER & GOLD INC | 2013 | FY | 3

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

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