Earnings per Share (Unaudited) Earnings per Share (Notes)

9 Months Ended

Sep. 30, 2020

EARNINGS PER SHARE

FCX calculates its basic net income (loss) per share of common stock under the two-class method and calculates its diluted net income (loss) per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income (loss) per share of common stock was computed by dividing net income (loss) attributable to common stockholders (after deducting accumulated dividends and undistributed earnings to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income (loss) 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.

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net income (loss) from continuing operations	$	432	$	(235)	$	7	$	(234)
Net (income) loss from continuing operations attributable to noncontrolling interests	(103)		27		(116)		(16)

Undistributed earnings allocated to participating securities	(3)		(3)		(3)		(3)
Net income (loss) from continuing operations attributable to common stockholders	326		(211)		(112)		(253)



Net income from discontinued operations attributable to common stockholders	—		1		—		2


Net income (loss) attributable to common stockholders	$	326	$	(210)	$	(112)	$	(251)


Basic weighted-average shares of common stock outstanding	1,453		1,452		1,453		1,451
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs)a	8		—		—		—
Diluted weighted-average shares of common stock outstanding	1,461		1,452		1,453		1,451

Basic and diluted net income (loss) per share attributable to common stockholders:
Continuing operations	$	0.22	$	(0.15)	$	(0.08)	$	(0.17)
Discontinued operations	—		—		—		—
	$	0.22	$	(0.15)	$	(0.08)	$	(0.17)

a.Excludes approximately 2 million shares in third-quarter 2020, 10 million shares in third-quarter 2019, 13 million shares for the first nine months of 2020 and 11 million shares for the first nine months of 2019 associated with outstanding stock options with exercise prices less than the average market price of FCX’s common stock and RSUs 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 (loss) per share of common stock. Stock options for 28 million shares of common stock in third-quarter 2020, 43 million shares of common stock in third-quarter 2019, 35 million shares of common stock for first nine months of 2020 and 42 million shares of common stock for the first nine months of 2019 were excluded.