EX-12.1 9 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,
  
 
2009
  
2008
  
2007a
  
2006
  
2005
  
     
Income (loss) from continuing operations before
                              
income taxes and equity in affiliated
                              
companies' net earnings
$
5,816
  
$
(13,309
)
$
6,111
  
$
2,820
  
$
2,028
  
Amortization of previously capitalized interest
  
31
    
25
    
17
    
18
    
18
  
Less: capitalized interest
  
(78
)
  
(122
)
  
(147
)
  
(11
)
  
(4
)
                               
Earnings (losses) from continuing operations
                              
before fixed charges
$
5,769
  
$
(13,406
)
$
5,981
  
$
2,827
  
$
2,042
  
                               
Fixed charges:
                              
Interest expense, net of capitalized interest
  
568
    
567
    
496
    
71
    
124
  
Capitalized interest
  
78
    
122
    
147
    
11
    
4
  
Amortization of debt expenses, premiums and
                              
discounts
  
18
    
17
    
17
    
5
    
8
  
Interest portion of rental expense
  
32
    
18
    
12
    
1
    
1
  
                               
Total fixed charges
  
696
    
724
    
672
    
88
    
137
  
                               
Adjusted earnings (losses)
$
6,465
  
$
(12,682
)
$
6,653
  
$
2,915
  
$
2,179
  
                               
Ratio of earnings to fixed chargesa
  
9.3
    
-
b
  
9.9
    
33.1
    
15.9
  
                               
Preferred dividend requirements:
                              
Total fixed charges
$
696
  
$
724
  
$
672
  
$
88
  
$
137
  
Preferred stock dividends
  
370
    
347
    
340
    
116
    
128
  
Combined fixed charges and preferred stock dividends
$
1,066
  
$
1,071
  
$
1,012
  
$
204
  
$
265
  
                               
Ratio of earnings to combined fixed charges and preferred
                              
stock dividendsa
  
6.1
    
-
c
  
6.6
    
14.3
    
8.2
  
                               
                               
a.     For purposes of computing the consolidated ratio of earnings to fixed charges, earnings consist of income (loss) from continuing
operations before income taxes, equity in affiliated companies' net earnings and cumulative effect of accounting changes.
Noncontrolling interests 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.
 
b.     As a result of the loss recorded in 2008, the ratio coverage was less than 1:1.  FCX would have needed to generate additional
earnings of $13.4 billion to achieve coverage of 1:1 in 2008.
 
c.     As a result of the loss recorded in 2008, the ratio coverage was less than 1:1.  FCX would have needed to generate additional
earnings of $13.8 billion to achieve coverage of 1:1 in 2008.