Freeport-McMoRan (FCX) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 30, 2009		Dec. 31, 2008
Current assets:
Cash and cash equivalents	$2,269	[1]	$872	[1]
Trade accounts receivable	1,292	[1]	374	[1]
Income tax receivables	390	[1]	611	[1]
Other accounts receivable	174	[1]	227	[1]
Product inventories and materials and supplies, net	2,314	[1]	2,192	[1]
Mill and leach stockpiles	602	[1]	571	[1]
Other current assets	365	[1]	386	[1]
Total current assets	7,406	[1]	5,233	[1]
Property, plant, equipment and development costs, net	16,075	[1]	16,002	[1]
Long-term mill and leach stockpiles	1,294	[1]	1,145	[1]
Intangible assets, net	342	[1]	364	[1]
Trust assets	140	[1]	142	[1]
Other assets	448	[1]	467	[1]
Total assets	25,705	[1]	23,353	[1]
Current liabilities:
Accounts payable and accrued liabilities	1,986	[1]	2,766	[1]
Accrued income taxes	940	[1]	163	[1]
Current portion of reclamation and environmental liabilities	187	[1]	162	[1]
Current portion of long-term debt and short-term borrowings	44	[1]	67	[1]
Total current liabilities	3,157	[1]	3,158	[1]
Long-term debt, less current portion:
Senior notes	6,350	[1]	6,884	[1]
Project financing, equipment loans and other	228	[1]	250	[1]
Revolving credit facility	0	[1]	150	[1]
Total long-term debt, less current portion	6,578	[1]	7,284	[1]
Deferred income taxes	2,660	[1]	2,339	[1]
Reclamation and environmental liabilities, less current portion	2,006	[1]	1,951	[1]
Other liabilities	1,370	[1]	1,520	[1]
Total liabilities	15,771	[1]	16,252	[1]
Equity:
5.5% Convertible Perpetual Preferred Stock	0	[1]	832	[1]
6.75% Mandatory Convertible Preferred Stock	2,875	[1]	2,875	[1]
Common stock	55	[1]	51	[1]
Capital in excess of par value	15,627	[1]	13,989	[1]
Accumulated deficit	(6,711)	[1]	(8,267)	[1]
Accumulated other comprehensive loss	(224)	[1]	(305)	[1]
Common stock held in treasury	(3,413)	[1]	(3,402)	[1]
Total FCX stockholders' equity	8,209	[1]	5,773	[1]
Noncontrolling interests	1,725	[1]	1,328	[1]
Total equity	9,934	[1]	7,101	[1]
Total liabilities and equity	$25,705	[1]	$23,353	[1]
[1]Unaudited

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Revenues	$4,144	[1]	$4,616	[1]	$10,430	[1]	$15,729	[1]
Cost of sales:
Production and delivery	1,715	[1]	2,857	[1]	5,086	[1]	8,294	[1]
Depreciation, depletion and amortization	252	[1]	442	[1]	740	[1]	1,322	[1]
Lower of cost or market inventory adjustments	0	[1]	17	[1]	19	[1]	22	[1]
Total cost of sales	1,967	[1]	3,316	[1]	5,845	[1]	9,638	[1]
Selling, general and administrative expenses	74	[1]	90	[1]	225	[1]	300	[1]
Exploration and research expenses	19	[1]	77	[1]	73	[1]	209	[1]
Restructuring and other charges	0	[1]	0	[1]	23	[1]	0	[1]
Total costs and expenses	2,060	[1]	3,483	[1]	6,166	[1]	10,147	[1]
Operating income	2,084	[1]	1,133	[1]	4,264	[1]	5,582	[1]
Interest expense, net	(162)	[1]	(139)	[1]	(451)	[1]	(444)	[1]
Losses on early extinguishment of debt	(31)	[1]	0	[1]	(31)	[1]	(6)	[1]
Other income and expense, net	(7)	[1]	(14)	[1]	(24)	[1]	10	[1]
Income before income taxes and equity in affiliated companies' net earnings	1,884	[1]	980	[1]	3,758	[1]	5,142	[1]
Provision for income taxes	(684)	[1]	(240)	[1]	(1,557)	[1]	(1,627)	[1]
Equity in affiliated companies' net earnings	3	[1]	2	[1]	21	[1]	16	[1]
Net income	1,203	[1]	742	[1]	2,222	[1]	3,531	[1]
Net income attributable to noncontrolling interests	(224)	[1]	(155)	[1]	(492)	[1]	(748)	[1]
Preferred dividends	(54)	[1]	(64)	[1]	(174)	[1]	(191)	[1]
Net income attributable to FCX common stockholders	$925	[1]	$523	[1]	$1,556	[1]	$2,592	[1]
Net income per share attributable to FCX common stockholders:
Basic (in dollars per share)	2.23	[1]	1.37	[1]	3.8	[1]	6.78	[1]
Diluted (in dollars per share)	2.07	[1]	1.31	[1]	3.7	[1]	6.2	[1]
Weighted-average common shares outstanding:
Basic (in shares)	416	[1]	382	[1]	409	[1]	383	[1]
Diluted (in shares)	472	[1]	447	[1]	428	[1]	449	[1]
Dividends declared per share of common stock (in dollars per share)	$0	[1]	0.5	[1]	$0	[1]	1.375	[1]
[1]Unaudited

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net income	$2,222	[1]	$3,531	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	740	[1]	1,322	[1]
Lower of cost or market inventory adjustments	19	[1]	22	[1]
Stock-based compensation	75	[1]	113	[1]
Charges for reclamation and environmental liabilities, including accretion	150	[1]	141	[1]
Losses on early extinguishment of debt	31	[1]	6	[1]
Deferred income taxes	(32)	[1]	(347)	[1]
Intercompany profit on PT Freeport Indonesia sales to PT Smelting	47	[1]	(5)	[1]
Increase in long-term mill and leach stockpiles	(68)	[1]	(167)	[1]
Changes in other assets and liabilities	136	[1]	35	[1]
Amortization of intangible assets/liabilities and other, net	53	[1]	59	[1]
(Increases) decreases in working capital:
Accounts receivable	(754)	[1]	(198)	[1]
Inventories	(176)	[1]	(567)	[1]
Other current assets	88	[1]	(58)	[1]
Accounts payable and accrued liabilities	(518)	[1]	(152)	[1]
Accrued income and other taxes	913	[1]	(424)	[1]
Settlement of reclamation and environmental liabilities	(76)	[1]	(142)	[1]
Net cash provided by operating activities	2,850	[1]	3,169	[1]
Capital expenditures:
North America copper mines	(121)	[1]	(498)	[1]
South America copper mines	(129)	[1]	(229)	[1]
Indonesia	(186)	[1]	(332)	[1]
Africa	(577)	[1]	(698)	[1]
Other	(125)	[1]	(172)	[1]
Proceeds from the sale of assets and other, net	(8)	[1]	58	[1]
Net cash used in investing activities	(1,146)	[1]	(1,871)	[1]
Cash flow from financing activities:
Net proceeds from sale of common stock	740	[1]	0	[1]
Proceeds from revolving credit facility and other debt	307	[1]	183	[1]
Repayments of revolving credit facility and other debt	(1,066)	[1]	(198)	[1]
Purchases of FCX common stock	0	[1]	(500)	[1]
Cash dividends paid:
Common stock	0	[1]	(504)	[1]
Preferred stock	(181)	[1]	(191)	[1]
Noncontrolling interests	(149)	[1]	(714)	[1]
Net (payments for) proceeds from stock-based awards	(9)	[1]	22	[1]
Excess tax benefit from stock-based awards	2	[1]	25	[1]
Contributions from noncontrolling interests	54	[1]	155	[1]
Bank fees and other	(5)	[1]	0	[1]
Net cash used in financing activities	(307)	[1]	(1,722)	[1]
Net increase (decrease) in cash and cash equivalents	1,397	[1]	(424)	[1]
Cash and cash equivalents at beginning of year	872	[1]	1,626	[1]
Cash and cash equivalents at end of period	$2,269	[1]	$1,202	[1]
[1]Unaudited

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	3 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2009		Dec. 31, 2008
Balance at December 31, 2008			$7,101	[1]		[1]
Sale of common stock			740	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock			(1)	[1]
Exercised and issued stock-based awards			2	[1]
Stock based compensation			69	[1]
Tender of shares for stock-based awards			(11)	[1]
Dividends on preferred stock			(174)	[1]
Distributions to noncontrolling interests			(149)	[1]
Contributions from noncontrolling interests			54	[1]
Net income	1,203	[1]	2,222	[1]
Unrealized gains on securities			3	[1]
Translation adjustment			3	[1]
Net gain during period, net of taxes of $38 million			61	[1]
Amortization of unrecognized amounts			14	[1]
Other comprehensive income			81	[1]
Total comprehensive income			2,303	[1]
Balance at September 30, 2009	9,934	[1]	9,934	[1]	7,101	[1]
Common Stock
Balance at December 31, 2008			51	[1]		[1]
Balance at December 31, 2008 (in shares)			505	[1]		[1]
Sale of common stock			2	[1]
Sale of common stock (in shares)			27	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock			2	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock (in shares)			18	[1]
Excercised and issued stock-based awards (in shares)			1	[1]
Balance at September 30, 2009	55	[1]	55	[1]	51	[1]
Balance at September 30, 2009 (in shares)	551	[1]	551	[1]	505	[1]
Capital in Excess of Par Value
Balance at December 31, 2008			13,989	[1]		[1]
Sale of common stock			738	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock			829	[1]
Exercised and issued stock-based awards			2	[1]
Stock based compensation			69	[1]
Balance at September 30, 2009	15,627	[1]	15,627	[1]	13,989	[1]
Accumulated Deficit
Balance at December 31, 2008			(8,267)	[1]		[1]
Dividends on preferred stock			(174)	[1]
Net income		[1]	1,730	[1]
Balance at September 30, 2009	(6,711)	[1]	(6,711)	[1]	(8,267)	[1]
Accumulated Other Comprehensive Loss
Balance at December 31, 2008			(305)	[1]		[1]
Unrealized gains on securities			3	[1]
Translation adjustment			3	[1]
Net gain during period, net of taxes of $38 million			61	[1]
Amortization of unrecognized amounts			14	[1]
Other comprehensive income			81	[1]
Balance at September 30, 2009	(224)	[1]	(224)	[1]	(305)	[1]
Common Stock Held in Treasury
Balance at December 31, 2008			(3,402)	[1]		[1]
Balance at December 31, 2008 (in shares)			121	[1]		[1]
Tender of shares for stock-based awards			(11)	[1]
Balance at September 30, 2009	(3,413)	[1]	(3,413)	[1]	(3,402)	[1]
Balance at September 30, 2009 (in shares)	121	[1]	121	[1]	121	[1]
Total FCX stockholders' equity [Member]
Balance at December 31, 2008			5,773	[1]		[1]
Sale of common stock			740	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock			(1)	[1]
Exercised and issued stock-based awards			2	[1]
Stock based compensation			69	[1]
Tender of shares for stock-based awards			(11)	[1]
Dividends on preferred stock			(174)	[1]
Net income		[1]	1,730	[1]
Unrealized gains on securities			3	[1]
Translation adjustment			3	[1]
Net gain during period, net of taxes of $38 million			61	[1]
Amortization of unrecognized amounts			14	[1]
Other comprehensive income			81	[1]
Total comprehensive income			1,811	[1]
Balance at September 30, 2009	8,209	[1]	8,209	[1]	5,773	[1]
Noncontrolling Interests [Member]
Balance at December 31, 2008			1,328	[1]		[1]
Distributions to noncontrolling interests			(149)	[1]
Contributions from noncontrolling interests			54	[1]
Net income		[1]	492	[1]
Total comprehensive income			492	[1]
Balance at September 30, 2009	1,725	[1]	1,725	[1]	1,328	[1]
Convertible Perpetual Preferred Stock [Member]
Balance at December 31, 2008			832	[1]		[1]
Balance at December 31, 2008 (in shares)			1	[1]		[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock			(832)	[1]
Conversions and redemptions of 5.5% convertible perpetual preferred stock (in shares)			(1)	[1]
Balance at September 30, 2009	0	[1]	0	[1]	832	[1]
Balance at September 30, 2009 (in shares)	0	[1]	0	[1]	1	[1]
Mandatory Convertible Preferred Stock [Member]
Balance at December 31, 2008		[1]	2,875	[1]		[1]
Balance at December 31, 2008 (in shares)		[1]	29	[1]		[1]
Balance at September 30, 2009		[1]		[1]	$2,875	[1]
Balance at September 30, 2009 (in shares)					29	[1]
[1]Unaudited

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	9 Months Ended Sep. 30, 2009
Statement of Stockholders' Equity [Abstract]
Taxes on defined benefit plans' net gain during period	$38	[1]
[1]Unaudited

GENERAL INFORMATION

GENERAL INFORMATION
	9 Months Ended Sep. 30, 2009 USD / shares
General Information [Abstract]
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 nine-month periods ended September 30, 2009, are not necessarily indicative of the results that may be expected for the year ending December 31, 2009. FCX changed Phelps Dodge Corporations (Phelps Dodge) legal name to Freeport-McMoRan Corporation (FMC) in 2008.

RESTRUCTURING AND OTHER CHARGES

RESTRUCTURING AND OTHER CHARGES
	9 Months Ended Sep. 30, 2009 USD / shares
Restructuring and Other Charges [Abstract]
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 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 nine 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 ($25 million to net income attributable to FCX common stockholders or $0.06 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 ($7 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

EARNINGS PER SHARE

EARNINGS PER SHARE
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	3. EARNINGS PER SHARE FCXs 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 nine-month periods ended September 30, 2009 and 2008 (in millions, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Net income $ 1,203 $ 742 $ 2,222 $ 3,531 Net income attributable to noncontrolling interests (224 ) (155 ) (492 ) (748 ) Preferred dividends (54 ) (64 ) (174 ) (191 ) Net income attributable to FCX common stockholders 925 523 1,556 2,592 Plus income impact of assumed conversion of: 6% Mandatory Convertible Preferred Stock 48 49 a 146 5% Convertible Perpetual Preferred Stock 5 15 28 45 Diluted net income attributable to FCX common stockholders $ 978 $ 587 $ 1,584 $ 2,783 Weighted-average shares of common stock outstanding 416 382 409 383 Add stock issuable upon conversion, exercise or vesting of: 6% Mandatory Convertible Preferred Stockb 39 39 a 39 5% Convertible Perpetual Preferred Stock 14 24 17 24 Dilutive stock options 2 1 c 1 2 Restricted stock 1 1 1 1 Weighted-average shares of common stock outstanding for purposes of calculating diluted net income per share 472 447 428 449 Diluted net income per share attributable to FCX common stockholders $ 2.07 $ 1.31 $ 3.70 $ 6.20 a. Potential income impact of $146 million and additional shares of common stock of approximately 39 million shares for the 6% Mandatory Convertible Preferred Stock were excluded for the nine months ended September30,2009, 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 1.3716 into approximately 39 million shares of common stock. c. Potential additional shares of common stock of approximately 1 million were excluded for the three months end

PENSION AND POSTRETIREMENT BENE

PENSION AND POSTRETIREMENT BENEFITS
	9 Months Ended Sep. 30, 2009 USD / shares
Pension and Other Post Retirement Benefits [Abstract]
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 FCXs revised operating plans. The components of net periodic benefit cost for pension and postretirement benefits for the three-month and nine-month periods ended September 30, 2009 and 2008, follow (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Service cost $ 8 $ 9 $ 25 $ 27 Interest cost 28 27 83 81 Expected return on plan assets (19 ) (31 ) (59 ) (95 ) Amortization of prior service cost 1 4 Amortization of net actuarial loss 7 22 1 Curtailments (4 ) Special retirement benefits 3 (2 ) Net periodic benefit costs $ 27 $ 6 $ 65 $ 18 Net periodic benefit costs increased by $21 million in third-quarter 2009 mainly as a result of a decrease in the expected return on plan assets ($12million) and amortization of actuarial losses ($7million) primarily in connection with the losses on plan assets. Net periodic benefit costs increased by $47 million in the first nine months of 2009 mainly as a result of a decrease in the expected return on plan assets ($36million) and amortization of actuarial losses ($21million) primarily in connection with the losses on plan assets, partially offset by gains on special retirement benefits and curtailments ($9million) resulting from workforce reductions caused by the revised operating plans.

INVENTORIES AND MILL AND LEACH

INVENTORIES AND MILL AND LEACH STOCKPILES
	9 Months Ended Sep. 30, 2009 USD / shares
Inventories and Mill and Leach Stockpiles [Abstract]
Inventories, and Mill and Leach Stockpiles	5. INVENTORIES, AND MILL AND LEACH STOCKPILES The components of inventories follow (in millions): September 30, December 31, 2009 2008 Mining Operations: Raw materials $ 1 $ 1 Work-in-process 148 128 Finished goodsa 618 703 Atlantic Copper, S.A. (Atlantic Copper): Raw materials (concentrates) 178 164 Work-in-process 238 71 Finished goods 12 1 Total product inventories 1,195 1,068 Total materials and supplies, netb 1,119 1,124 Total inventories $ 2,314 $ 2,192 a. Primarily includes copper concentrates, anodes, cathodes and rod, and molybdenum. b. Materials and supplies inventory is net of obsolescence reserves totaling $21 million at September 30, 2009, and $22 million at December 31, 2008. The following summarizes mill and leach stockpiles (in millions): September 30, December 31, 2009 2008 Current: Mill stockpiles $ 9 $ 10 Leach stockpiles 593 561 Total current mill and leach stockpiles $ 602 $ 571 Long-terma: Mill stockpiles $ 435 $ 340 Leach stockpiles 859 805 Total long-term mill and leach stockpiles $ 1,294 $ 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 ($15million to net income attributable to FCX common stockholders or $0.04 per diluted share) for the nine months ended September 30, 2009, resulting from lower molybdenum prices. There were no adjustments in third-quarter 2009. FCX recorded charges for LCM inventory adjustments at certain of its North America copper mines of $17million ($10 million to net income attributable to FCX common stockholders or $0.02 per diluted share) in third-quarter 2008 and $22 million ($13 million to net income attributable to FCX common stockholders or $0.03per diluted share) for the nine months ended September 30, 2008.

INCOME TAXES

INCOME TAXES
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	6. INCOME TAXES FCXs third-quarter 2009 income tax provision resulted from taxes on international operations ($660 million) and U.S. operations ($24 million). FCXs income tax provision for the first nine months of 2009 resulted from taxes on international operations ($1.5 billion) and U.S. operations ($29 million). FCXs effective tax rate for 2009 has been highly sensitive to changes in commodity prices and the mix of income between U.S. and international operations. The difference between FCXs consolidated effective income tax rate of 41 percent for the first nine months of 2009 and the U.S. federal statutory rate of 35 percent was primarily attributable to the high proportion of income earned in Indonesia, which was taxed at an effective tax rate of 43 percent. FCXs third-quarter 2008 income tax provision resulted from taxes on international operations ($230 million) and U.S. operations ($10 million). FCXs income tax provision for the first nine months of 2008 resulted from taxes on international operations ($1.3 billion) and U.S. operations ($308 million).The difference between FCXs consolidated effective income tax rate of approximately 32 percent for the first nine months of 2008 and the U.S. federal statutory rate of 35 percent was primarily attributable to a U.S. benefit for percentage depletion, partly offset by withholding taxes and incremental U.S. income tax accrued on foreign earnings.

DEBT AND EQUITY TRANSACTIONS

DEBT AND EQUITY TRANSACTIONS
	9 Months Ended Sep. 30, 2009 USD / shares
Debt and Equity Transactions [Abstract]
Debt and Equity Transactions	7. DEBT AND EQUITY TRANSACTIONS In February 2009, FCX completed a public offering of 26.8 million shares of FCX common stock at an average price of $28.00 per share, which generated gross proceeds of $750 million (net proceeds of approximately $740 million). For third-quarter 2009 and the first nine months of 2009, FCX recorded losses on early extinguishment of debt totaling $31 million ($28 million to net income attributable to FCX common stockholders or $0.06 per diluted share for third-quarter 2009 and $0.07 per diluted share for the first nine months of 2009). These losses resulted from the following transactions. On August 20, 2009, FCX redeemed $340 million of its 6% Senior Notes due 2014 for $352 million or a redemption price of 103.438 percent of the principal amount (plus accrued and unpaid interest). FCX recorded losses on early extinguishment of debt of $14million ($13million to net income attributable to FCX common stockholders or $0.03 per diluted share) in third-quarter 2009 in connection with this redemption. In addition, during September 2009, FCX purchased in the open market $99 million of its 8.25% Senior Notes for $107 million and $92 million of its 8.375% Senior Notes for $99million. These open-market purchases resulted in losses on early extinguishment of debt totaling $17million ($15 million to net income attributable to FCX common stockholders or $0.03 per diluted share for third-quarter 2009 and $0.04 per diluted share for the first nine months of 2009). In September 2009, FCX called for redemption its remaining outstanding shares of 5% Convertible Perpetual Preferred Stock. Of the 831,554 shares outstanding at the time of the call, 830,529 shares converted into 17.9 million shares of FCX common stock, and the remaining 1,025 shares were redeemed for approximately $1 million in cash. For the first nine months of 2008, FCX recorded net losses on early extinguishment of debt totaling $6 million ($5million to net income or $0.01 per diluted share) associated with an open-market purchase of $33 million of its 9% Senior Notes for $46 million in first-quarter 2008.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Financial Instruments [Abstract]
Financial Instruments	8. FINANCIAL INSTRUMENTS FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation or if it anticipates a future activity that is likely to occur and will result in exposure to market risks and FCX intends to offset or mitigate such 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) recognized in income before income taxes and equity in affiliated companies net earnings for derivative financial instruments that are designated and qualify as fair value hedge transactions, along with the unrealized gains (losses) on the related hedged item (firm sales commitments) (in millions): Three Months Ended Nine Months Ended September 30, 2009 September 30, 2009 Hedged Hedged Derivative Item Derivative Item Commodity contracts: FMCs copper futures and swap contractsa $ 1 $ (1 ) $ 8 $ (8 ) a. Amounts are recorded in revenues. FCX realized gains, which are recorded in revenues, of $18 million during third-quarter 2009 and $36 million during the first nine months of 2009 from matured derivative financial instruments that qualified for hedge accounting. 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 (in millions): Three Months Nine Months Ended Ended September 30, September 30, 2009 2009 Commodity contracts: Embedded derivatives in provisional sales contractsa $ 421 $ 1,017 Embedded derivatives in provisional purchase contractsb (4 ) (5 ) PT Freeport Indonesias copper forward contractsa (7 ) (104 ) Atlantic Coppers copper forward contractsb 4 FMCs copper futures and swap contractsa 12 61 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 September 30, 2009 (in millions): Derivatives designated as hedging instruments Commodity contracts: FMCs copper futures and swap contracts: Asset positiona $ 9 Liability positionb (1 ) Derivatives not designated as hedging instruments Commodity contracts: Embedded derivatives in provisional sales/purchases contracts:c

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value Measurement [Abstract]
Fair Value Measurement	9. FAIR VALUE MEASUREMENT In September 2006, the Financial Accounting Standards Board (FASB) issued enhanced accounting guidance for using fair value to measure assets and liabilities. This guidance does not require any new fair value measurements under U.S. GAAP; rather this guidance establishes a common definition of fair value, provides a framework for measuring fair value under U.S. GAAP and expands disclosure requirements about fair value measurements. In February 2008, FASB delayed the effective date 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 the guidance for financial assets and liabilities recognized at fair value on a recurring basis effective January 1, 2008, and it did not have a material impact on FCXs financial reporting and disclosures. FCX adopted the guidance 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. Fair value accounting guidance includes 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 three levels of the fair value hierarchy 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; and 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 September 30, 2009 Total Level 1 Level 2 Level 3 Cash equivalents $ 2,242 $ 2,242 $ $ Trust assets (current and long-term) 164 164 Available-for-sale securities 77 77 Embedded derivatives in provisional sales/purchases contracts, net 117 117 Other derivative financial instruments, net 13 13 $ 2,613 $ 2,613 $ $ Valuation Techniques Cash Equivalents. The fair value of FCXs cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in activ

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS
	9 Months Ended Sep. 30, 2009 USD / shares
New Accounting Standards [Abstract]
New Accounting Standards	10. NEW ACCOUNTING STANDARDS Noncontrolling Interests in Consolidated Financial Statements. In December 2007, FASB issued accounting guidance associated with noncontrolling interests in consolidated financial statements, which clarifies that noncontrolling 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. This guidance also provides additional disclosure requirements for each reporting period. This guidance applies to fiscal years beginning on or after December 15, 2008, with early adoption prohibited. This guidance 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 this guidance 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 nine months ended September 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 accounting guidance that changed the accounting treatment for convertible debt securities that the issuer may settle fully or partially in cash. This guidance 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. This guidance 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 effective date. This guidance did not have an impact on FCXs financial reporting. Employers Disclosures about Postretirement Benefit Plan Assets. In December 2008, FASB issued enhanced accounting guidance for an employers disclosures about plan assets of a defined benefit pension or other postretirement plan. This guidance revises disclosure requirements on pension and postretirement plan assets. The disclosures about plan assets required by this guidance are effective for fiscal years ending after December 15, 2009, with early ap

SUBSEQUENT EVENT

SUBSEQUENT EVENT
	9 Months Ended Sep. 30, 2009 USD / shares
Subsequent Event [Abstract]
Subsequent Events	11. SUBSEQUENT EVENTS During October 2009, FCX made open-market purchases of $42 million of its 8.25% Senior Notes for $45 million and $65 million of its 8.375% Senior Notes for $69 million, which are in addition to the purchases discussed in Note 7. FCX expects to record an approximate $10 million loss on early extinguishment of debt in fourth-quarter 2009 in connection with these open-market purchases. Refer to Note 7 for further discussion. In October 2009, FCXs Board of Directors reinstated an annual cash dividend on its common stock of $0.60 per share. The Board of Directors would declare a quarterly dividend of $0.15 per share, with the initial dividend expected to be paid on February 1, 2010. FCX evaluated events after September 30, 2009, and through November 6, 2009, which is the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements.

BUSINESS SEGMENTS

BUSINESS SEGMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
Business Segments [Abstract]
Business Segments	12. 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, FCX concluded that its operating segments include individual mines. Operating segments that meet certain thresholds are reportable segments. In accordance with accounting guidance for segment reporting, beginning in first-quarter 2009, the Sierrita mine is no longer a reportable segment. During 2008, Africa mining became a reportable segment. Accordingly, FCX has revised its segment disclosures for the three and nine months ended September 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 nine months of 2009. Other Mines. Other mines include FCXs other operating southwestern U.S. copper mines Sierrita, Bagdad, Safford and Tyrone and its southwestern U.S. copper mines that are currently on care-and-maintenance status. In addition to copper, the Sierrita and Bagdad mines produce molybdenum concentrates as a by-product. 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. In addition to copper, the Cerro Verde mine produces molybdenum concentrates as a by-product. 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 nine months of 2009. Other Mines. Other mines include FCXs Chilean copper mines Candelaria, Ojos del Salado and El Abra. In addition to copper, the Candelaria and Ojos del Salado mines produce gold and silver as by-products. FCX owns an 80 percent interest

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 30, 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		429,877,602