Earnings Per Share (Unaudited)

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

FCX’s basic net income per share of common stock was calculated by dividing net income attributable to common stock by the weighted-average shares of common stock outstanding during the period. Following is a reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share (in millions, except per share amounts):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net income	$	1,294		$	1,533		$	4,881		$	3,580
Net income attributable to noncontrolling interests	(241		)	(355		)	(961		)	(793		)
Preferred dividends	—			—			—			(63		)
Net income attributable to FCX common stockholders	1,053			1,178			3,920			2,724
Plus income impact of assumed conversion of 6¾%      Mandatory Convertible Preferred Stocka	—			—			—			63
Diluted net income attributable to FCX common      stockholders	$	1,053		$	1,178		$	3,920		$	2,787
Weighted-average shares of common stock outstanding	948			941			947			906
Add stock issuable upon conversion, exercise or vesting of:
6¾% Mandatory Convertible Preferred Stocka	—			—			—			34
Dilutive stock optionsb	6			4			7			5
Restricted stock	1			2			1			2
Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share	955			947			955			947
Diluted net income per share attributable to FCX      common stockholders	$	1.10		$	1.24		$	4.10		$	2.94

a. All outstanding 6¾% Mandatory Convertible Preferred Stock automatically converted on May 1, 2010, into FCX common stock.

b. Potential additional shares of common stock that were anti-dilutive totaled approximately three million for the three months ended September 30, 2011, none for the three months ended September 30, 2010, and two million for the nine months ended September 30, 2011 and 2010.

Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. Excluded amounts were approximately 5 million stock options with a weighted-average exercise price of $55.57 per option for third-quarter2011 and approximately 3 million stock options with a weighted-average exercise price of $55.74 for the nine months ended September 30, 2011. Stock options for approximately 19 million shares with a weighted-average exercise price of $37.78 were excluded for third-quarter2010, and stock options for approximately 14 million shares with a weighted-average exercise price of $38.32 were excluded for the nine months ended September 30, 2010.