EX-12.1 2 exhibit121-recast.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
FREEPORT-McMoRan INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(in millions except ratios)
 
For the years ended December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes and equity in affiliated companies' net (losses) earnings
$
(14,128
)
 
(800
)
 
4,390

 
4,961

 
8,307

 
Amortization of previously capitalized interest
71

 
55

 
45

 
41

 
36

 
Less capitalized interest
(215
)
 
(235
)
 
(174
)
 
(81
)
 
(109
)
 
Less preferred dividends of a consolidated subsidiary
(47
)
 
(53
)
 
(31
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
(Losses) earnings from continuing operations before fixed charges
$
(14,319
)
 
(1,033
)
 
4,230

 
4,921

 
8,234

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
$
618

 
648

 
533

 
179

 
296

 
Capitalized interest
215

 
235

 
174

 
81

 
109

 
Amortization of debt expenses, premiums and and discounts
(1
)
 
(42
)
 
(32
)
 
7

 
11

 
Interest portion of rental expense
18

 
21

 
18

 
17

 
18

 
Preferred dividends of a consolidated subsidiary
47

 
53

 
31

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
897

 
915

 
724

 
284

 
434

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
(13,422
)
 
(118
)
 
4,954

 
5,205

 
8,668

 
 

 

 

 

 

 
Ratio of earnings to fixed chargesa
$
—

b 
—

c 
6.8

 
18.3

 
20.0

 
 
 
 
 
 
 
 
 
 
 
 

a.
For purposes of computing the consolidated ratio of earning to fixed charges, earnings consist of (loss) income before income taxes and equity in affiliated companies' net (losses) earnings. Noncontrolling interests were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; the portion of rental expense that FCX believes to be representative of interest; and preferred stock dividends of a consolidated subsidiary. The ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges for the years presented because no shares of preferred stock were outstanding during these years.
b.
As a result of the loss recorded in 2015, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $14.3 billion to achieve coverage of 1:1 in 2015.
c.
As a result of the loss recorded in 2014, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $1.0 billion to achieve coverage of 1:1 in 2014.