Income Taxes (Unaudited)

6 Months Ended

Jun. 30, 2013

INCOME TAXES

Geographic sources of FCX's provision (benefit) for income taxes follow (in millions):



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013				2012		2013				2012
United States operations	$	(94	)	^a	$	110	$	(23	)	^a	$	193
International operations	134				312		491				720
Total	$	40			$	422	$	468			$	913

As a result of second-quarter 2013 oil and gas acquisitions, FCX recognized a net tax benefit of $183 million consisting of income tax benefits of $190 million associated with net reductions in FCX's valuation allowances and $69 million related to the release of the deferred tax liability on PXP's investment in MMR common stock; partially offset by income tax expense of $76 million associated with the write off of deferred tax assets related to environmental liabilities.

Excluding the net benefit of $183 million of acquisition-related adjustments, FCX’s consolidated effective income tax rate was 34 percent for the first six months of 2013 and 33 percent for the first six months of 2012. Variations in the relative proportions of jurisdictional income can result in fluctuations to FCX’s consolidated effective income tax rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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