EXHIBIT 12.1
FREEPORT-McMoRan COPPER & GOLD INC.
Computation of Ratio of Earnings
to Fixed Charges:
Years Ended December 31,
2002
2001
2000
1999
1998
(In Thousands)
Income from continuing operations
$
164,654
$
113,025
$
76,987
$
136,467
$
153,848
Add:
Provision for income taxes
245,518
202,979
159,573
195,653
170,566
Cumulative effect of accounting
change, net
3,049
-
-
-
-
Equity in PT Smelting losses
4,181
5,137
13,593
10,074
506
Minority interests' share of net income 36,441 42,772 36,680 48,714 37,012
Interest expense, net
171,209
173,595
205,346
194,069
205,588
Rental expense factor - - - - - - 188 323
Earnings available for fixed charges
$
625,052
$
537,508
$
492,179
$
585,165
$
567,843
Interest expense, net
$
171,209
$
173,595
$
205,346
$
194,069
$
205,588
Capitalized interest
12,245
9,438
7,216
3,768
19,612
Rental expense factor - - - - - - 188 323
Fixed charges
$
183,454
$
183,033
$
212,562
$
198,025
$
225,523
Ratio of earnings to fixed charges
3.4x
2.9x
2.3x
3.0x
2.5x
Computation of Ratio of Earnings
to Fixed Charges and Preferred Dividends:
Years Ended December 31,
2002
2001
2000
1999
1998
(In Thousands)
Income from continuing operations
$
164,654
$
113,025
$
76,987
$
136,467
$
153,848
Add:
Provision for income taxes
245,518
202,979
159,573
195,653
170,566
Cumulative effect of accounting
change, net
3,049
-
-
-
-
Equity in PT Smelting losses
4,181
5,137
13,593
10,074
506
Minority interests' share of net income
36,441
42,772
36,680
48,714
37,012
Interest expense, net
171,209
173,595
205,346
194,069
205,588
Rental expense factor - - - - - - 188 323
Earnings available for fixed charges
$
625,052
$
537,508
$
492,179
$
585,165
$
567,843
Interest expense, net
$
171,209
$
173,595
$
205,346
$
194,069
$
205,588
Capitalized interest
12,245
9,438
7,216
3,768
19,612
Rental expense factor - - - - - - 188 323
Preferred dividends
69,179
70,563
72,717
68,697
65,847
Fixed charges
$
252,633
$
253,596
$
285,279
$
266,722
$
291,370
Ratio of earnings to fixed charges
2.5x
2.1x
1.7x
2.2x
1.9x
(a)
Portion of rent deemed representative of an interest factor.
(b)
For purposes of this calculation, earnings consist of income from continuing operations before income taxes, minority interests and fixed charges. Fixed charges include interest and that portion of rent deemed representative of interest.
(c)
For purposes of this calculation, we assume that our preferred stock dividend requirements were equal to the pre-tax earnings that would be required to cover those dividend requirements.
