EARNINGS PER SHARE

FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be anti-dilutive.

Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow (in millions, except per share amounts):



	Three Months Ended							Six Months Ended
	June 30,							June 30,
	2018				2017			2018				2017
Net income from continuing operations	$	1,039			$	326		$	1,867			$	594
Net income from continuing operations attributable to noncontrolling interests	(166		)		(66		)	(291		)		(141		)
Undistributed earnings allocated to participating securities	(3		)		(3		)	(4		)		(3		)
Net income from continuing operations attributable to common stockholders	870				257			1,572				450

Net (loss) income from discontinued operations	(4		)		9			(15		)		47
Net income from discontinued operations attributable to noncontrolling interests	—				(1		)	—				(4		)
Net (loss) income from discontinued operations attributable to common stockholders	(4		)		8			(15		)		43


Net income attributable to common stockholders	$	866			$	265		$	1,557			$	493

Basic weighted-average shares of common stock outstanding	1,449				1,447			1,449				1,447
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units	9			^a	6			9			^a	6
Diluted weighted-average shares of common stock outstanding	1,458				1,453			1,458				1,453

Basic net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.60			$	0.18		$	1.08			$	0.31
Discontinued operations	—				—			(0.01		)		0.03
	$	0.60			$	0.18		$	1.07			$	0.34
Diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.59			$	0.18		$	1.08			$	0.31
Discontinued operations	—				—			(0.01		)		0.03
	$	0.59			$	0.18		$	1.07			$	0.34


a.	Excludes approximately 2 million shares of common stock for second-quarter 2018 and 3 million shares of common stock for the first six months of 2018 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock that were anti-dilutive.

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. Stock options for 35 million shares of common stock were excluded for second-quarter 2018, 44 million for second-quarter 2017, 34 million for the first six months of 2018 and 44 million for the first six months of 2017.