EX-12 27 exhibit121.htm EXHIBIT 12

EXHIBIT 12.1


FREEPORT-McMoRan COPPER & GOLD INC.


Computation of Ratio of Earnings

to Fixed Charges:


  

Years Ended December 31,

 
  

2003

 

2002

 

2001

 

2000

 

1999

 
  

(In Thousands)

 

Income from continuing operations

 

$

181,660

 

$

164,654

 

$

113,025

 

$

76,987

 

$

136,467

 

Add:

                

    Provision for income taxes

  

338,053

  

245,518

  

202,979

  

159,573

  

195,653

 

    Cumulative effect of accounting changes, net

  

15,593

  

3,049

  

-    

  

-   

  

-    

 

    Equity in PT Smelting (earnings) losses

  

(5,609

)

 

4,181

  

5,137

  

13,593

  

10,074

 

    Minority interests’ share of net income

  

48,469

  

36,441

  

42,772

  

36,680

  

48,714

 

Interest expense, net

  

197,017

  

171,209

  

173,595

  

205,346

  

194,069

 

Rental expense factor

  

1,027

  

-    

  

-    

  

-    

  

188

 

Earnings available for fixed charges

 

$

776,210

 

$

625,052

 

$

537,508

 

$

492,179

 

$

585,165

 
                 

Interest expense, net

 

$

197,017

 

$

171,209

 

$

173,595

 

$

205,346

 

$

194,069

 

Capitalized interest

  

2,994

  

12,245

  

9,438

  

7,216

  

3,768

 

Rental expense factor

  

1,027

  

-    

  

-    

  

-    

  

188

 

Fixed charges

 

$

201,038

 

$

183,454

 

$

183,033

 

$

212,562

 

$

198,025

 
                 

Ratio of earnings to fixed charges

  

3.9x

  

3.4x

  

2.9x

  

2.3x

  

3.0x

 


Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends:

                
  

Years Ended December 31,

 
  

2003

 

2002

 

2001

 

2000

 

1999

 
  

(In Thousands)

 

Income from continuing operations

 

$

181,660

 

$

164,654

 

$

113,025

 

$

76,987

 

$

136,467

 

Add:

                

    Provision for income taxes

  

338,053

  

245,518

  

202,979

  

159,573

  

195,653

 

    Cumulative effect of accounting changes, net

  

15,593

  

3,049

  

-    

  

-    

  

-    

 

    Equity in PT Smelting (earnings) losses

  

(5,609

)

 

4,181

  

5,137

  

13,593

  

10,074

 

    Minority interests’ share of net income

  

48,469

  

36,441

  

42,772

  

36,680

  

48,714

 

Interest expense, net

  

197,017

  

171,209

  

173,595

  

205,346

  

194,069

 

Rental expense factor

  

1,027

  

-    

  

-    

  

-    

  

188

 

Earnings available for fixed charges

 

$

776,210

 

$

625,052

 

$

537,508

 

$

492,179

 

$

585,165

 
                 

Interest expense, net

 

$

197,017

 

$

171,209

 

$

173,595

 

$

205,346

 

$

194,069

 

Capitalized interest

  

2,994

  

12,245

  

9,438

  

7,216

  

3,768

 

Rental expense factor

  

1,027

  

-    

  

-    

  

-    

  

188

 

Preferred dividends

  

60,045

  

69,179

  

70,563

  

72,717

  

68,697

 

Fixed charges

 

$

261,083

 

$

252,633

 

$

253,596

 

$

285,279

 

$

266,722

 
                 

Ratio of earnings to fixed charges

  

3.0x

  

2.5x

  

2.1x

  

1.7x

  

2.2x

 


(a)

Portion of rent deemed representative of an interest factor.

(b)

For purposes of this calculation, earnings consist of income from continuing operations before income taxes, minority interests and fixed charges.  Fixed charges include interest and that portion of rent deemed representative of interest.

(c)

For purposes of this calculation, we assume that our preferred stock dividend requirements were equal to the pre-tax earnings that would be required to cover those dividend requirements.