EX-12.1 6 d586383dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions except ratios)

 

     For the six
months ended
June 30,		     For the year ended December 31,  
     Pro
Forma (a)		     Historical     Pro
Forma (a)		     Historical  
     2013     2013     2012     2012     2011     2010     2009     2008  

Income (loss) from continuing operations before income taxes and equity in affiliated companies’ net earnings

    $ 2,586      $ 1,898      $ 6,511      $ 5,486      $ 8,818      $ 8,512      $ 5,816      $ (13,309 ) 

Fixed charges

      466        255        947        290        444        554        696        724   

Amortization of previously capitalized interest

      25        23        47        41        36        34        31        25   

Less: capitalized interest

      (98 )      (53 )      (162 )      (81 )      (109 )      (66 )      (78 )      (122 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted earnings (losses)

    $ 2,979      $ 2,123      $ 7,343      $ 5,736      $ 9,189      $ 9,034      $ 6,465      $ (12,682 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

                 

Interest expense, net of capitalized interest

    $ 379      $ 187      $ 815      $ 180      $ 301      $ 448      $ 568      $ 567   

Capitalized interest

      98        53        162        81        109        66        78        122   

Amortization of debt expenses, premiums and discounts

      (27 )      2        (59 )      7        11        14        18        17   

Interest portion of rental expense

      16        13        29        22        23        26        32        18   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 466      $ 255      $ 947      $ 290      $ 444      $ 554      $ 696      $ 724   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges (b)

      6.4        8.3        7.8        19.8        20.7        16.3        9.3        —   (c) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) The supplemental pro forma information has been adjusted to give pro forma affect to the acquisition of PXP, which was completed on May 31, 2013, as if it had occurred on January 1, 2012. The supplemental pro forma financial information gives effect to events that are directly related to the acquisition of PXP, are expected to have a continuing impact, and are factually supportable. For more information regarding the pro forma amounts and adjustments, please refer to the unaudited pro forma combined condensed financial data included in FCX’s Current Report on Form 8-K/A filed on August 13, 2013, which is incorporated into this prospectus by reference.

 

(b) For purposes of completing the consolidated ratio of earnings to fixed charges, earnings consist of income (loss) from continuing operations before income taxes, equity in affiliated companies’ net earnings and cumulative effect of accounting changes. Noncontrolling interests were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges from continuing operations consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; and that portion of rental expense that FCX believes to be representative of interest.

 

(c) As a result of the loss recorded in 2008, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $13.4 billion to achieve coverage of 1:1 in 2008.