Freeport-McMoRan 2006 Annual Report Download - page 76

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NOTES฀TO฀CONSOLIDATED฀FINANCIAL฀STATEMENTS






















฀ FCX฀(U.S.฀and฀ PT฀Freeport฀Indonesia฀ Atlantic฀Copper
฀ expatriate฀employees)฀ (Indonesian฀employees)฀ (Spanish฀retirees)
฀ 2006฀ 2005฀ 2006฀ 2005฀ 2006฀ 2005
Change฀in฀benefit฀obligation:
Benefit฀obligation฀at฀beginning฀of฀year฀ $฀(49,972)฀ $฀(47,563)฀ $฀(40,261)฀ $฀(40,888)฀ $฀(75,507)฀ $฀(87,499)
Service฀cost฀฀ ฀ (200)฀ ฀ (701)฀ ฀ (3,816)฀ ฀ (3,546)฀ ฀ —฀ ฀ —
Interest฀cost฀฀ ฀ (2,432)฀ ฀ (2,548)฀ ฀ (4,943)฀ ฀ (3,704)฀ ฀ (4,653)฀ ฀ (4,708)
Actuarial฀gains฀(losses)฀ ฀ 560฀ ฀ (420)฀ ฀ (5,656)฀ ฀ 1,918฀ ฀ (556)฀ ฀ (307)
Plan฀amendments฀ ฀ —฀ ฀ (1,313)฀ ฀ —฀ ฀ —฀ ฀ —฀ ฀ —
Foreign฀exchange฀gain฀(loss)฀ ฀ —฀ ฀ —฀ ฀ (3,903)฀ ฀ 2,322฀ ฀ (9,770)฀ ฀ 9,343
Benefits฀paid฀ ฀ 2,070฀ ฀ 2,573฀ ฀ 4,286฀ ฀ 3,637฀ ฀ 7,704฀ ฀ 7,664
Benefit฀obligation฀at฀end฀of฀year฀ ฀(49,974)฀ ฀(49,972)฀ ฀(54,293)฀ ฀(40,261)฀ ฀(82,782)฀ ฀(75,507)
Change฀in฀plan฀assets:
Fair฀value฀of฀plan฀assets฀at฀beginning฀of฀year฀ ฀14,797฀ ฀16,610฀ ฀21,945฀ ฀18,956฀ ฀11,299฀ ฀ 9,840
Actual฀return฀on฀plan฀assets฀ ฀ 405฀ ฀ 389฀ ฀ 3,149฀ ฀ 1,251฀ ฀ —฀ ฀ —
Employer฀contributionsa฀ ฀ 268฀ ฀ 371฀ ฀ 6,521฀ ฀ 4,512฀ ฀ 9,779฀ ฀ 9,123
Foreign฀exchange฀gain฀(loss)฀ ฀ —฀ ฀ —฀ ฀ 2,143฀ ฀ (820)฀ ฀ —฀ ฀ —
Benefits฀paid฀ ฀ (2,070)฀ ฀ (2,573)฀ ฀ (3,148)฀ ฀ (1,954)฀ ฀ (7,704)฀ ฀ (7,664)
Fair฀value฀of฀plan฀assets฀at฀end฀of฀year฀ ฀13,400฀ ฀14,797฀ ฀30,610฀ ฀21,945฀ ฀13,374฀ ฀11,299
Funded฀status฀ $฀(36,574)฀ $฀(35,175)฀ $฀(23,683)฀ $฀(18,316)฀ $฀(69,408)฀ $฀(64,208)
Accumulated฀benefit฀obligation฀ $฀(49,974)฀ $฀(49,972)฀ $฀(33,483)฀ $฀(24,540)฀ $฀(82,782)฀ $฀(75,507)
Weighted-average฀assumptions฀used฀to฀determine฀benefit฀obligations฀
฀ (percent):
Discount฀rate฀ ฀ 4.00b฀ ฀ 4.00b฀ ฀ 10.50฀ ฀ 12.00฀ ฀ 6.77฀ ฀ 6.77
Rate฀of฀compensation฀increase฀ ฀ N/Ab฀ ฀ N/Ab฀ ฀ 9.00฀ ฀ 10.00฀ ฀ N/A฀ ฀ N/A
Weighted-average฀assumptions฀to฀determine฀net฀periodic฀benefit฀cost฀฀฀
฀ for฀the฀upcoming฀year฀(percent):
Discount฀rate฀ ฀ 4.00b฀ ฀ 6.00b฀ ฀ 10.50฀ ฀ 12.00฀ ฀ 6.77฀ ฀ 6.77
Expected฀return฀on฀plan฀assets฀ ฀ N/Ab฀ ฀ N/Ab฀ ฀ 10.00฀ ฀ 10.00฀ ฀ —฀ ฀ —
Rate฀of฀compensation฀increase฀ ฀ N/Ab฀ ฀ N/Ab฀ ฀ 9.00฀ ฀ 10.00฀ ฀ N/A฀ ฀ N/A
Balance฀sheet฀classification฀of฀funded฀status:
฀ Accounts฀payable฀and฀accrued฀liabilities฀ $฀ 388฀ $฀ —฀ $฀ 913฀ $฀ —฀ $฀ —฀ $฀ —
฀ Accrued฀postretirement฀benefits฀and฀other฀liabilities฀ ฀36,186฀ ฀35,175฀ ฀22,770฀ ฀ 6,707฀ ฀69,408฀ ฀57,230
฀ ฀ Total฀ ฀ $฀36,574฀ $฀35,175฀ $฀23,683฀ $฀ 6,707฀ $฀69,408฀ $฀57,230
 

 

74 FREEPORT-McMoRan฀COPPER฀&฀GOLD฀INC.฀฀2006฀Annual฀Report