Freeport-McMoRan (FCX) 10-Q 7 Aug 09 2009 Q2 Quarterly report Financial data

1000 - CONDENSED CONSOLIDATED B

1000 - CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$1,319	$872
Trade accounts receivable	1,329	374
Other accounts receivable	736	838
Product inventories and materials and supplies, net	2,098	2,192
Mill and leach stockpiles	585	571
Other current assets	269	386
Total current assets	6,336	5,233
Property, plant, equipment and development costs, net	16,092	16,002
Long-term mill and leach stockpiles	1,260	1,145
Intangible assets, net	355	364
Trust assets	145	142
Other assets	436	467
Total assets	24,624	23,353
Current liabilities:
Accounts payable and accrued liabilities	1,820	2,766
Accrued income taxes	589	163
Current portion of long-term debt and short-term borrowings	389	67
Current portion of reclamation and environmental liabilities	191	162
Total current liabilities	2,989	3,158
Long-term debt, less current portion:
Senior notes	6,542	6,884
Project financing, equipment loans and other	292	250
Revolving credit facility	0	150
Total long-term debt, less current portion	6,834	7,284
Deferred income taxes	2,632	2,339
Reclamation and environmental liabilities, less current portion	1,978	1,951
Other liabilities	1,360	1,520
Total liabilities	15,793	16,252
Equity:
5.5% Convertible Perpetual Preferred Stock	832	832
6.75% Mandatory Convertible Preferred Stock	2,875	2,875
Common stock	53	51
Capital in excess of par value	14,785	13,989
Accumulated deficit	(7,636)	(8,267)
Accumulated other comprehensive loss	(231)	(305)
Common stock held in treasury	(3,409)	(3,402)
Total FCX stockholders' equity	7,269	5,773
Noncontrolling interests	1,562	1,328
Total equity	8,831	7,101
Total liabilities and equity	$24,624	$23,353

2000 - CONSOLIDATED STATEMENTS

2000 - CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Revenues	$3,684	$5,441	$6,286	$11,113
Cost of sales:
Production and delivery	1,809	2,716	3,371	5,437
Depreciation, depletion and amortization	256	462	488	880
Lower of cost or market inventory adjustments	0	4	19	5
Total cost of sales	2,065	3,182	3,878	6,322
Selling, general and administrative expenses	89	126	151	210
Exploration and research expenses	24	80	54	132
Restructuring and other charges	(2)	0	23	0
Total costs and expenses	2,176	3,388	4,106	6,664
Operating income	1,508	2,053	2,180	4,449
Interest expense, net	(158)	(140)	(289)	(305)
Losses on early extinguishment of debt	0	0	0	(6)
Gains on sales of assets	0	13	0	13
Other income and expense, net	(3)	9	(17)	11
Income before income taxes and equity in affiliated companies' net earnings	1,347	1,935	1,874	4,162
Provision for income taxes	(542)	(658)	(873)	(1,387)
Equity in affiliated companies' net earnings	7	7	18	14
Net income	812	1,284	1,019	2,789
Net income attributable to noncontrolling interests	(164)	(274)	(268)	(593)
Preferred dividends	(60)	(63)	(120)	(127)
Net income attributable to FCX common stockholders	$588	$947	$631	$2,069
Net income per share attributable to FCX common stockholders:
Basic (in dollars per share)	1.43	2.47	1.56	5.4
Diluted (in dollars per share)	1.38	2.25	1.54	4.89
Weighted-average common shares outstanding:
Basic (in shares)	412	384	406	383
Diluted (in shares)	471	450	426	449
Dividends declared per share of common stock (in dollars per share)	0	0.4375	0	0.875

3000 - CONSOLIDATED STATEMENTS

3000 - CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash flows from operating activities:
Net income	$1,019	$2,789
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	488	880
Lower of cost or market inventory adjustments	19	5
Stock-based compensation	57	92
Charges for reclamation and environmental liabilities, including accretion	112	79
Losses on early extinguishment of debt	0	6
Deferred income taxes	61	(114)
Gains on sales of assets	0	(13)
Elimination of profit on PT Freeport Indonesia sales to PT Smelting	37	5
Increase in long-term mill and leach stockpiles	(31)	(111)
Changes in other assets and liabilities	71	59
Amortization of intangible assets/liabilities and other, net	36	56
(Increases) decreases in working capital:
Accounts receivable	(803)	(921)
Inventories	53	(374)
Other current assets	105	9
Accounts payable and accrued liabilities	(675)	(525)
Accrued income and other taxes	394	(212)
Settlement of reclamation and environmental liabilities	(47)	(86)
Net cash provided by operating activities	896	1,624
Capital expenditures:
North America copper mines	(100)	(303)
South America copper mines	(111)	(166)
Indonesia	(128)	(223)
Africa	(458)	(384)
Other	(97)	(87)
Proceeds from the sale of assets and other, net	(1)	55
Net cash used in investing activities	(895)	(1,108)
Cash flow from financing activities:
Net proceeds from sale of common stock	740	0
Proceeds from revolving credit facility and other debt	155	524
Repayments of revolving credit facility and other debt	(285)	(384)
Cash dividends paid:
Common stock	0	(337)
Preferred stock	(120)	(127)
Noncontrolling interests	(63)	(280)
Net (payments for) proceeds from stock-based awards	(7)	22
Excess tax benefit from stock-based awards	0	25
Contributions from noncontrolling interests	29	0
Bank fees and other	(3)	63
Net cash provided by (used in) financing activities	446	(494)
Net increase in cash and cash equivalents	447	22
Cash and cash equivalents at beginning of year	872	1,626
Cash and cash equivalents at end of period	$1,319	$1,648

4000 - CONSOLIDATED STATEMENT O

4000 - CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	3 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2009	Dec. 31, 2008
Balance at December 31, 2008		$7,101
Sale of common stock		740
Exercised and issued stock-based awards		1
Stock based compensation		57
Tender of shares for stock-based awards		(7)
Dividends on preferred stock		(120)
Distributions to noncontrolling interests		(63)
Contributions from noncontrolling interests		29
Net income	812	1,019
Unrealized gains on securities		3
Translation adjustment		1
Net gain during period, net of taxes of $39 million		61
Amortization of unrecognized amounts		9
Other comprehensive income		74
Total comprehensive income		1,093
Balance at June 30, 2009	8,831	8,831	7,101
Common Stock
Balance at December 31, 2008		51
Balance at December 31, 2008 (in shares)		505
Sale of common stock		2
Sale of common stock (in shares)		27
Excercised and issued stock-based awards (in shares)		1
Balance at June 30, 2009	53	53	51
Balance at June 30, 2009 (in shares)	533	533	505
Capital in Excess of Par Value
Balance at December 31, 2008		13,989
Sale of common stock		738
Exercised and issued stock-based awards		1
Stock based compensation		57
Balance at June 30, 2009	14,785	14,785	13,989
Accumulated Deficit
Balance at December 31, 2008		(8,267)
Dividends on preferred stock		(120)
Net income		751
Balance at June 30, 2009	(7,636)	(7,636)	(8,267)
Accumulated Other Comprehensive Loss
Balance at December 31, 2008		(305)
Unrealized gains on securities		3
Translation adjustment		1
Net gain during period, net of taxes of $39 million		61
Amortization of unrecognized amounts		9
Other comprehensive income		74
Balance at June 30, 2009	(231)	(231)	(305)
Common Stock Held in Treasury
Balance at December 31, 2008		(3,402)
Balance at December 31, 2008 (in shares)		121
Tender of shares for stock-based awards		(7)
Balance at June 30, 2009	(3,409)	(3,409)	(3,402)
Balance at June 30, 2009 (in shares)	121	121	121
Total FCX stockholders' equity
Balance at December 31, 2008		5,773
Sale of common stock		740
Exercised and issued stock-based awards		1
Stock based compensation		57
Tender of shares for stock-based awards		(7)
Dividends on preferred stock		(120)
Net income		751
Unrealized gains on securities		3
Translation adjustment		1
Net gain during period, net of taxes of $39 million		61
Amortization of unrecognized amounts		9
Other comprehensive income		74
Total comprehensive income		825
Balance at June 30, 2009	7,269	7,269	5,773
Noncontrolling Interests in Subsidiaries
Balance at December 31, 2008		1,328
Distributions to noncontrolling interests		(63)
Contributions from noncontrolling interests		29
Net income		268
Total comprehensive income		268
Balance at June 30, 2009	1,562	1,562	1,328
Convertible Perpetual Preferred Stock
Balance at December 31, 2008		832
Balance at December 31, 2008 (in shares)		1
Balance at June 30, 2009			832
Balance at June 30, 2009 (in shares)			1
Mandatory Convertible Preferred Stock
Balance at December 31, 2008		2,875
Balance at December 31, 2008 (in shares)		29
Balance at June 30, 2009			$2,875
Balance at June 30, 2009 (in shares)			29

4100 - PARENTHETICAL DATA TO TH

4100 - PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	6 Months Ended Jun. 30, 2009
Defined benefit plans:
Taxes on defined benefit plans' net gain during period	$39

6000 - GENERAL INFORMATION

6000 - GENERAL INFORMATION
	6 Months Ended Jun. 30, 2009
General Information
General Information	1. GENERAL INFORMATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles (GAAP) in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Copper Gold Inc.'s (FCX) consolidated financial statements and notes contained in its 2008 Annual Report on Form 10-K. The information furnished herein reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month and six-month periods ended June 30, 2009, are not necessarily indicative of the results that may be expected for the year ending December 31, 2009. FCX changed Phelps Dodge Corporation's (Phelps Dodge) legal name to Freeport-McMoRan Corporation (FMC) in 2008.

6010 - RESTRUCTURING AND OTHER

6010 - RESTRUCTURING AND OTHER CHARGES
	6 Months Ended Jun. 30, 2009
Restructuring and Other Charges
Restructuring and Other Charges	2. RESTRUCTURING AND OTHER CHARGES During the fourth quarter of 2008, there was a dramatic decline in copper and molybdenum prices. After averaging $3.05 per pound in 2006, $3.23 per pound in 2007 and $3.61 per pound for the first nine months of 2008, London Metal Exchange (LME) spot copper prices declined to a four-year low of $1.26 per pound in December 2008 and closed at $1.32 per pound on December 31, 2008. Additionally, molybdenum prices, which averaged approximately $25 per pound in 2006, $30 per pound in 2007 and $33 per pound for the first nine months of 2008, declined to $8.75 per pound in November 2008 and closed at $9.50 per pound on December 31, 2008. While FCXs long-term strategy of developing its resources to their full potential remains in place, the decline in copper and molybdenum prices in the fourth quarter of 2008 and the deterioration of the economic and credit environment have limited FCXs ability to invest in growth projects and required FCX to make adjustments to its near-term operating plans. FCX responded to the sudden downturn and uncertain near-term outlook by revising its near-term strategy to protect liquidity while preserving its mineral resources and growth options for the longer term. Accordingly, operating plans were revised in the fourth quarter of 2008 and January 2009 to reflect: (i)curtailment of copper production at higher-cost North America operations and of molybdenum production at the Henderson molybdenum mine; (ii)capital cost reductions; (iii)aggressive cost control, including workforce reductions, reduced equipment purchases that were planned to support expansion projects, a reduction in material and supplies inventory and reductions in exploration, research and administrative costs; and (iv)suspension of FCXs annual common stock dividend. Charges recognized in the first six months of 2009 in connection with FCXs revised operating plans in the fourth quarter of 2008 and January 2009 include restructuring charges of $32 million ($31 million to net income attributable to FCX common stockholders or $0.07 per diluted share) for contract termination costs, other project cancellation costs, and employee severance and benefit costs, partially offset by pension and postretirement gains of $9 million ($9 million to net income attributable to FCX common stockholdersor $0.02 per diluted share) for special retirement benefits and curtailments. The restructuring charges reflect workforce reductions (approximately 3,000 employees related to fourth-quarter 2008 revised operating plans and approximately 1,500 employees related to January 2009 revised operating plans) and other charges that reflect an approximate 50 percent total reduction in mining and crushed-leach rates at the Morenci mine in Arizona, an approximate 50 percent reduction in mining and stacking rates at the Safford mine in Arizona, an approximate 50 percent reduction in the mining rate at the Tyrone mine in New Mexico, suspension of mining and milling activities at the Chino mine in New Mexico (with limited residual copper production from leach operations), and an approximate 40 percent reduction in annual production (an approximate 2

6020 - EARNINGS PER SHARE

6020 - EARNINGS PER SHARE
	6 Months Ended Jun. 30, 2009
Earnings Per Share
Earnings Per Share	3. EARNINGS PER SHARE FCX's basic net income per share of common stock was calculated by dividing net income attributable to common stock by the weighted-average shares of common stock outstanding during the period. Following is a reconciliation of net income and weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share for the three-month and six-month periods ended June 30, 2009 and 2008 (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net income $ 812 $ 1,284 $ 1,019 $ 2,789 Net income attributable to noncontrolling interests (164 ) (274 ) (268 ) (593 ) Preferred dividends (60 ) (63 ) (120 ) (127 ) Net income attributable to FCX common stockholders 588 947 631 2,069 Plus income impact of assumed conversion of: 6% Mandatory Convertible Preferred Stock 49 48 - a 97 5% Convertible Perpetual Preferred Stock 11 15 23 30 Diluted net income attributable to FCX common stockholders $ 648 $ 1,010 $ 654 $ 2,196 Weighted-average shares of common stock outstanding 412 384 406 383 Add stock issuable upon conversion, exercise or vesting of: 6% Mandatory Convertible Preferred Stockb 39 39 - a 39 5% Convertible Perpetual Preferred Stock 18 23 18 23 Dilutive stock options 1 3 1 3 Restricted stock 1 1 1 1 Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share 471 450 426 449 Diluted net income per share attributable to FCX common stockholders $ 1.38 $ 2.25 $ 1.54 $ 4.89 a. Potential income impact of $97 million and additional shares of common stock of approximately 39 million shares for the 6% Mandatory Convertible Preferred Stock were excluded for the six months ended June30,2009, because they were anti-dilutive. b. Preferred stock will automatically convert on May 1, 2010, into between approximately 39 million and 47 million shares of FCX common stock at a conversion rate that will be determined based on FCXs common stock price. Prior to May 1, 2010, holders may convert at a conversion rate of 1.3654 into approximately 39 million shares of common stock. FCX's convertible instruments are excluded from the computation of diluted net income per share of common stock when including the conversion of these instruments results in an anti-dilutive effect on earnings per share (see footnote a above). The quarter

6030 - PENSION AND POSTRETIREME

6030 - PENSION AND POSTRETIREMENT BENEFITS
	6 Months Ended Jun. 30, 2009
Pension and Other Post Retirement Benefits
Pension and Postretirement Benefits	4. PENSION AND POSTRETIREMENT BENEFITS During the first quarter of 2009, FCX remeasured its plan assets and benefit obligations for the FMC Retirement Plan and the FMC Retiree Medical Plan as a result of employee reductions caused by FCX's revised operating plans. The components of net periodic benefit cost for pension and postretirement benefits for the three-month and six-month periods ended June 30, 2009 and 2008, follow (in millions): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Service cost $ 8 $ 9 $ 17 $ 18 Interest cost 28 27 55 54 Expected return on plan assets (20 ) (32 ) (40 ) (64 ) Amortization of prior service cost - 1 - 3 Amortization of net actuarial loss 7 1 15 1 Curtailments - - (4 ) - Special retirement benefits - - (5 ) - Net periodic benefit costs $ 23 $ 6 $ 38 $ 12 Net periodic benefit costs increased by $17 million in second-quarter 2009 mainly as a result of a decrease in the expected return on plan assets ($12million) and amortization of actuarial losses ($6million) primarily in connection with the losses on plan assets. Net periodic benefit costs increased by $26 million in the first six months of 2009 mainly as a result of a decrease in the expected return on plan assets ($24million) and amortization of actuarial losses ($14million) primarily in connection with the losses on plan assets, partially offset by gains on special retirement benefitsand curtailments ($9million) resulting from workforce reductions caused by the revised operating plans.

6040 - INVENTORIES AND MILL AND

6040 - INVENTORIES AND MILL AND LEACH STOCKPILES
	6 Months Ended Jun. 30, 2009
Inventories and Mill and Leach Stockpiles
Inventories, and Mill and Leach Stockpiles	5. INVENTORIES, AND MILL AND LEACH STOCKPILES The components of inventories follow (in millions): June 30, December 31, 2009 2008 Mining Operations: Raw materials $ 1 $ 1 Work-in-process 148 128 Finished goodsa 608 703 Atlantic Copper, S.A. (Atlantic Copper): Raw materials (concentrates) 115 164 Work-in-process 128 71 Finished goods 10 1 Total product inventories 1,010 1,068 Total materials and supplies, netb 1,088 1,124 Total inventories $ 2,098 $ 2,192 a. Primarily includes copper concentrates, anodes, cathodes and rod, and molybdenum. b. Materials and supplies inventory is net of obsolescence reserves totaling $20 million at June 30, 2009, and $22 million at December 31, 2008. The following summarizes mill and leach stockpiles (in millions): June 30, December 31, 2009 2008 Current: Mill stockpiles $ 9 $ 10 Leach stockpiles 576 561 Total current mill and leach stockpiles $ 585 $ 571 Long-terma: Mill stockpiles $ 409 $ 340 Leach stockpiles 851 805 Total long-term mill and leach stockpiles $ 1,260 $ 1,145 a. Metals in stockpiles not expected to be recovered within the next 12 months. FCX recorded charges for lower of cost or market (LCM) molybdenum inventory adjustments of $19 million ($19 million to net income attributable to FCX common stockholders or $0.04 per diluted share) for the first six months of 2009 resulting from lower molybdenum prices.

6050 - INCOME TAXES

6050 - INCOME TAXES
	6 Months Ended Jun. 30, 2009
Income Taxes
Income Taxes	6. INCOME TAXES FCX's second-quarter 2009 income tax provision resulted from taxes on international operations ($538 million) and U.S. operations ($4 million). FCXs income tax provision for the first six months of 2009 resulted from taxes on international operations ($868 million) and U.S. operations ($5 million). FCX's effective tax rate for 2009 is expectedto be highly sensitive to changes in commodity prices and the mix of income between U.S. and international operations. Income taxes for FCXs South America and Indonesia operations are recorded at the applicable statutory rates. However, at certain commodity prices, FCX does not record a tax benefit for losses generated in the U.S., and those losses cannot be used to offset income generated from international operations. The difference between FCXs consolidated effective income tax rate of 47 percent for thefirst six months of 2009 and the U.S. federal statutory rate of 35 percent primarily was attributable to the high proportion of income earned in Indonesia and from losses that were not benefited in North America. FCX's second-quarter 2008 income tax provision resulted from taxes on international operations ($510 million) and U.S. operations ($148 million). FCXs income tax provision for the first six months of 2008 resulted from taxes on international operations ($1.1 billion) and U.S. operations ($298 million).The difference between FCX's consolidatedeffective income tax rate of approximately 33 percent for the first six months of 2008 and the U.S. federal statutory rate of 35 percent primarily was attributable to a U.S. benefit for percentage depletion, partly offset by withholding taxes and incremental U.S. income tax accrued on foreign earnings.

6060 - FINANCIAL INSTRUMENTS

6060 - FINANCIAL INSTRUMENTS
	6 Months Ended Jun. 30, 2009
Financial Instruments
Financial Instruments	7. FINANCIAL INSTRUMENTS FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation or if FCX anticipates a future activity that is likely to occur and will result in exposure to market risks. FCX does not enter into any derivative financial instruments for speculative purposes, but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price, foreign currency and interest rate risks. Summarized below are unrealized gains (losses) on derivative financial instruments that are designated and qualify as fair value hedge transactions under Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended, along with the unrealized gains (losses) on the relatedhedged item (firm sales commitments) (in millions): Three Months Ended Six Months Ended June 30, 2009 June 30, 2009 Hedged Hedged Derivative Item Derivative Item Commodity contracts: Copper futures and swap contractsa $ 1 $ (1 ) $ 6 $ (6 ) a. Amounts are recorded in revenues. FCX realized gains of $15 million during second-quarter 2009 and $18 million during the first six months of 2009 from matured derivative financial instruments that qualified for hedge accounting, which are recorded in revenues. Summarized below are the realized and unrealized gains (losses) recognized in income before income taxes and equity in affiliated companies net earnings for derivative financial instruments, including embedded derivatives, which do not qualify as hedge transactions under SFAS No. 133, as amended (in millions): Three Months Six Months Ended Ended June 30, 2009 June 30, 2009 Commodity contracts: Embedded derivatives in provisional sales contractsa $ 283 $ 596 Embedded derivatives in provisional purchase contractsb (2 ) (1 ) PT Freeport Indonesias copper forward contractsa (97 ) (97 ) Atlantic Coppers copper forward contractsb 4 FMC's copper futures and swap contractsa 17 49 a. Amounts recorded in revenues. b. Amounts recorded in cost of sales as production and delivery costs. Summarized below are the fair values of unsettled derivative financial instruments recorded on the consolidated balance sheet at June 30, 2009 (in millions): Derivatives designated as hedging instruments under SFAS No. 133, as amended Commodity contracts: FMC's copper futures and swap contracts: Asset positiona $ 7 Liability positionb (1 ) Derivatives not designated as hedging instruments under SFAS No. 133, as amended Commodity contracts: Embedded derivatives in provisional sales/purchases contracts:c Asset position

6070 - FAIR VALUE MEASUREMENT

6070 - FAIR VALUE MEASUREMENT
	6 Months Ended Jun. 30, 2009
Fair Value Measurement
Fair Value Measurement	8. FAIR VALUE MEASUREMENT In September 2006, the Financial Accounting Standards Board (FASB) issued SFAS No. 157, Fair Value Measurements, which provides enhanced guidance for using fair value to measure assets and liabilities. SFAS No. 157 does not require any new fair value measurements under U.S. GAAP; rather this statement establishes a common definition of fairvalue, provides a framework for measuring fair value under U.S. GAAP and expands disclosure requirements about fair value measurements. In February 2008, FASB issued FASB Staff Position (FSP) No. FAS 157-2, which delayed the effective date of SFAS No. 157 for nonfinancial assets or liabilities that are not required or permitted to be measured at fair value on a recurring basis to fiscal years beginning after November15,2008, and interim periods within those years. FCX adopted SFAS No. 157 for financialassets and liabilities recognized at fair value on a recurring basis effective January 1, 2008. This partial adoption of SFAS No. 157 did not have a material impact on FCXs financial reporting and disclosures as its financial assets are measured using quoted market prices, or Level 1 inputs. FCX adopted SFAS No. 157 for nonfinancial assets or liabilities not valued on a recurring basis (at least annually) effective January 1, 2009, with no material impact on its financial reporting and disclosures. SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The threelevels of the fair value hierarchy under SFAS No. 157 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth FCXs financial assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value at June 30, 2009 Total Level 1 Level 2 Level 3 Cash equivalents $ 1,288 $ 1,288 $ - $ - Trust assets (current and long-term) 209 209 - - Available-for-sale securities 76 76 - - Embedded derivatives in provisional sales/purchases contracts 111 111 - - Other derivative financial instruments, net (20 ) (20 ) - - $ 1,664 $ 1,664 $ - $ -

6080 - NEW ACCOUNTING STANDARDS

6080 - NEW ACCOUNTING STANDARDS
	6 Months Ended Jun. 30, 2009
New Accounting Standards
New Accounting Standards	9. NEW ACCOUNTING STANDARDS Noncontrolling Interests in Consolidated Financial Statements. In December 2007, FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements an amendment of ARB No. 51, which clarifies thatnoncontrolling interests (minority interests) are to be treated as a separate component of equity and any changes in the ownership interest (in which control is retained) are to be accounted for as capital transactions. However, a change in ownership of a consolidated subsidiary that results in a loss of control is considered a significant event that triggers gain or loss recognition, with the establishment of a new fair value basis in any remaining ownership interests. SFAS No. 160 also provides additional disclosure requirements for each reporting period. SFAS No. 160 applies to fiscal years beginning on or after December 15, 2008, with early adoption prohibited. This statement is required to be adopted prospectively, except for the following provisions, which are to be applied retrospectively: (i) the reclassification of noncontrolling interests to equity in the consolidated balance sheets and (ii) the adjustment to consolidated net income to include net income attributable to both the controlling and noncontrolling interests. FCX adopted SFAS No. 160 effective January 1, 2009, and adjusted its December 31, 2008, condensed consolidated balance sheet to reflect noncontrolling interests in the amount of $1,328 million as a component of equity. In addition, FCX revised its consolidated statements of income for the three and six months ended June 30, 2008, to include net income attributable to both the controlling and noncontrolling interests. Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion. In May 2008, FASB issued FSP No. APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), which changes the accountingtreatment for convertible debt securities that the issuer may settle fully or partially in cash. FSP No. APB 14-1 requires bifurcation of convertible debt instruments into a debt component that is initially recorded at fair value and an equity component that represents the difference between the initial proceeds from issuance of the instrument and the fair value allocated to the debt component. The debt component is subsequently accreted (as a component of interest expense) to par value over its expected life.FSP No. APB 14-1 is effective for fiscal years and interim periods beginning after December 15, 2008, and must be retrospectively applied to all prior periods presented, even if an instrument has matured, converted, or otherwise been extinguished as of the FSPs effective date. FSP No. APB 14-1 did not have an impact on FCXs financial reporting. Employers Disclosures about Postretirement Benefit Plan Assets. In December 2008, FASB issued FSP No. FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets, which provides enhanced guidance on an employers disclosures about plan assets of a defined benefitpension or other postretirement plan. FSP FAS 132(R)

6090 - SUBSEQUENT EVENT

6090 - SUBSEQUENT EVENT
	6 Months Ended Jun. 30, 2009
Subsequent Event
Subsequent Event	10. SUBSEQUENT EVENT In July 2009, FCX announced that it would redeem all of its outstanding 6% Senior Notes due 2014. The notes will be redeemed on August 20, 2009, at a redemption price of 103.438 percent of the principal amount of $340 million, equivalent to $352 million (plus accrued and unpaid interest). FCX expects to record an approximate $14 million chargeto net income in third-quarter 2009 in connection with the redemption.

6100 - BUSINESS SEGMENTS

6100 - BUSINESS SEGMENTS
	6 Months Ended Jun. 30, 2009
Business Segments
Business Segments	11. BUSINESS SEGMENTS FCX has organized its operations into five primary divisions North America copper mines, South America copper mines, Indonesia mining, Africa mining and Molybdenum operations. Notwithstanding this structure, FCX internally reports information on a mine-by-mine basis. Therefore, in accordance with SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, FCX concluded that its operating segments include individual mines. Operating segments that meet certain SFAS No. 131 thresholds are reportable segments. In accordance with this guidance, beginning in first-quarter 2009, the Sierrita mine is no longer a reportable segment. In third-quarter 2008, FCX revised its presentation of the operating divisions to better reflect managements view of the consolidated FCX operations. Accordingly, FCX has revised its segment disclosures for the three and six months ended June 30, 2008, to conform with the current period presentation. Further discussion of the reportable segments included in FCXs primary operating divisions, as well as FCXs other reportable segments Rod Refining and Atlantic Copper Smelting Refining follows. North America Copper Mines.FCX has five operating copper mines in North America Morenci, Sierrita, Bagdad and Safford in Arizona and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching, and solution extraction and electrowinning (SX/EW) operations. A majority of the copper produced at the North America copper mines is cast into copper rod by FCXs Rod Refining operations. The North America mines division includes the Morenci copper mine as a reportable segment. Morenci. The Morenci open-pit mine, located in southeastern Arizona, primarily produces copper cathodes. FCX owns an 85 percent undivided interest in Morenci through an unincorporated joint venture. The Morenci mine produced approximately 40 percent of FCXs North America copper during the first six months of 2009. Other Mines. Other mines include FCXs other operating southwestern U.S. copper mines Sierrita, Bagdad, Safford and Tyrone. In addition to copper, the Sierrita and Bagdad mines produce molybdenum concentrates as a by-product. Other mines also include FCXs southwestern U.S. copper mines that are currently on care-and-maintenance status. South America Copper Mines.FCX has four operating copper mines in South America Cerro Verde in Peru, and Candelaria, Ojos del Salado and El Abra in Chile. These operations include open-pit and underground mining, sulfide ore concentrating, leaching and SX/EW operations. The South America mines division includes the Cerro Verde copper mine as a reportable segment. Cerro Verde. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathodes and copper concentrates. FCX owns a 53.56 percent interest in Cerro Verde. The Cerro Verde mine produced approximately 50 percent of FCXs South America copper during the first six months of 2009. Other Mines. Other mines include FCXs Chilean copper mines Candelaria, Ojos del Salado and El Abra which include open-pit and underground min

Document Information

Document Information
	6 Months Ended Jun. 30, 2009
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Amendment Description	none

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 31, 2009	Feb. 17, 2009
Entity Information [Line Items]
Entity Registrant Name	Freeport-McMoRan Copper & Gold Inc.
Entity Central Index Key	0000831259
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$11,400,000,000
Entity Common Stock, Shares Outstanding		411,795,044