EX-12.1 12 ex12-1.htm EXHIBIT 12.1 ex12-1.htm
Exhibit 12.1
 

FREEPORT-McMoRan COPPER & GOLD INC.

Computation of Ratios of Earnings to Fixed Charges
(In millions, except ratios)

 
For the years ended December 31,
    
 
2007
  
2006
  
2005
  
2004
  
2003
    
Income from continuing operations before income taxes,
                                
minority interests in net income of consolidated
                                
companies, equity in affiliated companies’ net
                                
earnings and cumulative effect of accounting
                                
change
$
6,111
  
$
2,819
  
$
2,028
  
$
572
  
$
578
    
Amortization of previously capitalized interest
  
17
    
18
    
18
    
18
    
18
    
Less: capitalized interest
  
(147
)
  
(11
)
  
(4
)
  
(3
)
  
(3
)
  
Earnings from continuing operations before fixed charges
  
5,981
    
2,826
    
2,042
    
587
    
593
    
                                 
Fixed charges:
                                
Interest expense, net of capitalized interest
  
496
    
71
    
124
    
140
    
181
    
Capitalized interest
  
147
    
11
    
4
    
3
    
3
    
Amortization of debt expenses, premiums and discounts
  
17
    
5
    
8
    
8
    
16
    
Interest portion of rental expense
  
12
    
1
    
1
    
1
    
1
    
Total fixed charges
  
672
    
88
    
137
    
152
    
201
    
                                 
Adjusted earnings
$
6,653
  
$
2,914
  
$
2,179
  
$
739
  
$
794
    
                                 
Ratio of earnings to fixed chargesa
  
9.9
    
33.1
    
15.9
    
4.9
    
4.0
    
                                 
Preferred stock dividend requirements:
                                
Total fixed charges
$
672
  
$
88
  
$
137
  
$
152
  
$
201
    
Preferred stock dividends
  
340
    
116
    
128
    
103
    
60
    
Combined fixed charges and preferred stock dividends
$
1,012
  
$
204
  
$
265
  
$
255
  
$
261
    
                                 
Ratio of earnings to combined fixed charges and preferred
                                
stock dividendsa
  
6.6
    
14.3
    
8.2
    
2.9
    
3.0
    
                                 
a.  
For purposes of computing the consolidated ratio of earnings to fixed charges, earnings consist of income from continuing operations before income taxes, minority interests in net income of consolidated subsidiaries, equity in affiliated companies' net earnings and cumulative effect of accounting changes. Minority interests in majority-owned subsidiaries were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges from continuing operations consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; and that portion of rental expense that FCX believes to be representative of interest. For purposes of calculating the ratio of earnings to combined fixed charges and preferred stock dividends, the preferred stock dividend requirements were assumed to be equal to the pre-tax earnings that would be required to cover such dividend requirements. The amount of pre-tax earnings required to cover such preferred stock dividends was computed using the effective tax rate for each applicable year.