Freeport-McMoRan (FCX) 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$2,656	$872
Trade accounts receivable	1,517	374
Income tax receivables	139	611
Other accounts receivable	147	227
Inventories:
Product	1,110	1,028
Materials and supplies, net	1,093	1,124
Mill and leach stockpiles	667	611
Other current assets	104	386
Total current assets	7,433	5,233
Property, plant, equipment and development costs, net	16,195	16,002
Long-term mill and leach stockpiles	1,321	1,145
Intangible assets, net	347	364
Other assets	700	609
Total assets	25,996	23,353
Current liabilities:
Accounts payable and accrued liabilities	2,038	2,722
Accrued income taxes	474	163
Current portion of reclamation and environmental obligations	214	162
Rio Tinto share of joint venture cash flows	161	0
Dividends payable	99	44
Current portion of long-term debt and short-term borrowings	16	67
Total current liabilities	3,002	3,158
Long-term debt, less current portion	6,330	7,284
Deferred income taxes	2,503	2,339
Reclamation and environmental obligations, less current portion	1,981	1,951
Other liabilities	1,423	1,520
Total liabilities	15,239	16,252
FCX stockholders' equity:
5.5% Convertible Perpetual Preferred Stock, 1 shares issued and outstanding at December 31, 2008	0	832
6.75% Mandatory Convertible Preferred Stock, 29 shares issued and outstanding	2,875	2,875
Common stock, par value $0.10, 552 shares and 505 shares issued, respectively	55	51
Capital in excess of par value	15,680	13,989
Accumulated deficit	(5,805)	(8,267)
Accumulated other comprehensive loss	(273)	(305)
Common stock held in treasury - 122 shares and 121 shares, at cost	(3,413)	(3,402)
Total FCX stockholders' equity	9,119	5,773
Noncontrolling interests	1,638	1,328
Total equity	10,757	7,101
Total liabilities and equity	$25,996	$23,353

PARENTHETICAL DATA TO CONSOLIDA

PARENTHETICAL DATA TO CONSOLIDATED BALANCE SHEETS (USD $)
Share data in Millions, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Statement of Financial Position [Abstract]
Shares issued and outstanding of 5.5% Convertible Perpetual Preferred Stock	0	1
Shares issued and outstanding of 6.75% Mandatory Convertible Preferred Stock	29	29
Par value of common stock (in dollars per share)	0.1	0.1
Shares issued of common stock	552	505
Shares of common stock held in treasury	122	121

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income Statement [Abstract]
Revenues	$15,040	$17,796	$16,939
Cost of sales:
Production and delivery	7,016	10,416	8,527
Depreciation, depletion and amortization	1,014	1,782	1,246
Lower of cost or market inventory adjustments	19	782	0
Total cost of sales	8,049	12,980	9,773
Selling, general and administrative expenses	321	269	466
Exploration and research expenses	90	292	145
Long-lived asset impairments and other charges	77	10,978	0
Goodwill impairment	0	5,987	0
Total costs and expenses	8,537	30,506	10,384
Operating income (loss)	6,503	(12,710)	6,555
Interest expense, net	(586)	(584)	(513)
Losses on early extinguishment of debt	(48)	(6)	(173)
Gains on sales of assets	0	13	85
Other (expense) income, net	(53)	(22)	157
Income (loss) from continuing operations before income taxes and equity in affiliated companies' net earnings	5,816	(13,309)	6,111
(Provision for) benefit from income taxes	(2,307)	2,844	(2,400)
Equity in affiliated companies' net earnings	25	15	22
Income (loss) from continuing operations	3,534	(10,450)	3,733
Income from discontinued operations, net of taxes	0	0	46
Net income (loss)	3,534	(10,450)	3,779
Net income attributable to noncontrolling interests	(785)	(617)	(802)
Preferred dividends and losses on induced conversions	(222)	(274)	(208)
Net income (loss) attributable to FCX common stockholders	$2,527	($11,341)	$2,769
Basic net income (loss) per share attributable to FCX common stockholders:
Basic from continuing operations (in dollars per share)	6.1	-29.72	8.02
Basic from discontinued operations (in dollars per share)	$0	$0	0.1
Basic (in dollars per share)	6.1	-29.72	8.12
Diluted net income (loss) per share attributable to FCX common stockholders:
Diluted from continuing operations (in dollars per share)	5.86	-29.72	7.41
Diluted from discontinued operations (in dollars per share)	$0	$0	0.09
Diluted (in dollars per share)	5.86	-29.72	7.5
Weighted-average common shares outstanding:
Basic (in shares)	414	382	341
Diluted (in shares)	469	382	397
Dividends declared per share of common stock (in dollars per share)	0.15	1.375	1.375

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flow from operating activities:
Net income (loss)	$3,534	($10,450)	$3,779
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	1,014	1,782	1,264
Asset impairments, including goodwill	0	16,854	0
Lower of cost or market inventory adjustments	19	782	0
Stock-based compensation	102	98	144
Charges for reclamation and environmental obligations, including accretion	191	181	32
Payments of reclamation and environmental obligations	(104)	(205)	(111)
Unrealized losses on copper price protection program	0	0	175
Losses on early extinguishment of debt	48	6	173
Deferred income taxes	135	(4,653)	(288)
Gains on sales of assets	0	(13)	(85)
Increase in long-term mill and leach stockpiles	(96)	(225)	(48)
Changes in other assets and liabilities	201	89	78
Amortization of intangible assets/liabilities and other, net	123	89	(33)
(Increases) decreases in working capital, excluding amounts acquired from Phelps Dodge Corporation:
Accounts receivable	(962)	542	428
Inventories	(159)	(478)	272
Other current assets	87	(91)	21
Accounts payable and accrued liabilities	(438)	(171)	400
Accrued income and other taxes	702	(767)	24
Net cash provided by operating activities	4,397	3,370	6,225
Capital expenditures:
North America copper mines	(345)	(609)	(856)
South America copper mines	(164)	(323)	(123)
Indonesia	(266)	(444)	(368)
Africa	(659)	(1,058)	(266)
Other	(153)	(274)	(142)
Acquisition of Phelps Dodge, net of cash acquired	0	(1)	(13,910)
Net proceeds from the sale of Phelps Dodge International Corporation	0	0	597
Proceeds from sales of assets	25	47	260
Decrease in global reclamation and remediation trust assets	0	430	0
Other, net	(39)	(86)	(53)
Net cash used in investing activities	(1,601)	(2,318)	(14,861)
Cash flow from financing activities:
Proceeds from term loans under bank credit facility	0	0	12,450
Repayments of term loans under bank credit facility	0	0	(12,450)
Net proceeds from sales of senior notes	0	0	5,880
Net proceeds from sale of 6.75% Mandatory Convertible Preferred Stock	0	0	2,803
Net proceeds from sale of common stock	740	0	2,816
Proceeds from revolving credit facility and other debt	330	890	744
Repayments of revolving credit facility and other debt	(1,380)	(766)	(1,069)
Purchases of FCX common stock	0	(500)	0
Cash dividends and distributions paid:
Common stock	0	(693)	(421)
Preferred stock	(229)	(255)	(175)
Noncontrolling interests	(535)	(730)	(967)
Contributions from noncontrolling interests	57	201	4
Net proceeds from (payments for) stock-based awards	6	22	(14)
Excess tax benefit from stock-based awards	3	25	16
Bank credit facilities fees and other, net	(4)	0	(262)
Net cash (used in) provided by financing activities	(1,012)	(1,806)	9,355
Net increase (decrease) in cash and cash equivalents	1,784	(754)	719
Cash and cash equivalents at beginning of year	872	1,626	907
Cash and cash equivalents at end of year	$2,656	$872	$1,626

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	Dec. 31, 2006
Beginning Balance	$7,101	$19,473	$2,658
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock	(1)
Conversions of 5.5% Convertible Perpetual Preferred Stock		23
Sale of 6.75% Mandatory Convertible Preferred Stock			2,803
Acquisition of Phelps Dodge			9,014
Sale of common stock	740		2,816
Conversions of 7% Convertible Senior Notes			6
Exercised and issued stock-based awards	18	179	131
Stock-based compensation	100	100	86
Tax benefit for stock-based awards	6	13	10
Tender of shares for stock-based awards	(11)	(61)	(92)
Cumulative effect adjustment to initially apply new accounting guidance associated with income taxes			5
Purchase of additional interests in subsidiaries			(11)
Common stock purchased		(500)
Dividends on common stock	(65)	(527)	(587)
Dividends on preferred stock	(222)	(274)	(208)
Distributions to noncontrolling interests	(535)	(730)	(967)
Contributions from noncontrolling interests	59	201	4
Sale of Phelps Dodge International Corporation			(38)
Comprehensive income (loss):
Net income (loss)	3,534	(10,450)	3,779
Other comprehensive income (loss), net of taxes:
Unrealized gains (losses) on securities	3	(9)	2
Translation adjustment	3	(4)	(2)
Change in unrealized derivatives' fair value			(4)
Reclassification to earnings			8
Net gain (loss) during period, net of taxes	9	(340)	54
Amortization of unrecognized amounts	18	7	6
Other comprehensive income (loss)	33	(346)	64
Total comprehensive income (loss)	3,567	(10,796)	3,843
Ending Balance	10,757	7,101	19,473	2,658
Convertible Perpetual Preferred Stock [Member]
Beginning Balance	832	1,100	1,100
Beginning Balance (in shares)	1	1	1
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock	(832)
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock (in shares)	(1)
Conversions of 5.5% Convertible Perpetual Preferred Stock		(268)
Other comprehensive income (loss), net of taxes:
Ending Balance	0	832	1,100	1,100
Ending Balance (in shares)	0	1	1	1
Mandatory Convertible Preferred Stock [Member]
Beginning Balance	2,875	2,875	0
Beginning Balance (in shares)	29	29	0
Sale of 6.75% Mandatory Convertible Preferred Stock			2,875
Sale of 6.75% Mandatory Convertible Preferred Stock (in shares)			29
Other comprehensive income (loss), net of taxes:
Ending Balance	2,875	2,875	2,875	0
Ending Balance (in shares)	29	29	29	0
Common Stock
Beginning Balance	51	50	31
Beginning Balance (in shares)	505	497	310
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock	2
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock (in shares)	18
Conversions of 5.5% Convertible Perpetual Preferred Stock		1
Conversions of 5.5% Convertible Perpetual Preferred Stock (in shares)		7
Acquisition of Phelps Dodge			14
Acquisition of Phelps Dodge (in shares)			137
Sale of common stock	2		5
Sale of common stock (in shares)	27		47
Excercised and issued stock-based awards (in shares)	2	1	3
Other comprehensive income (loss), net of taxes:
Ending Balance	55	51	50	31
Ending Balance (in shares)	552	505	497	310
Capital in Excess of Par Value
Beginning Balance	13,989	13,407	2,668
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock	829
Conversions of 5.5% Convertible Perpetual Preferred Stock		290
Sale of 6.75% Mandatory Convertible Preferred Stock			(72)
Acquisition of Phelps Dodge			7,767
Sale of common stock	738		2,811
Conversions of 7% Convertible Senior Notes			6
Exercised and issued stock-based awards	18	179	131
Stock-based compensation	100	100	86
Tax benefit for stock-based awards	6	13	10
Other comprehensive income (loss), net of taxes:
Ending Balance	15,680	13,989	13,407	2,668
Retained Earnings (Accumulated Deficit)
Beginning Balance	(8,267)	3,601	1,415
Cumulative effect adjustment to initially apply new accounting guidance associated with income taxes			4
Dividends on common stock	(65)	(527)	(587)
Dividends on preferred stock	(222)	(274)	(208)
Comprehensive income (loss):
Net income (loss)	2,749	(11,067)	2,977
Other comprehensive income (loss), net of taxes:
Ending Balance	(5,805)	(8,267)	3,601	1,415
Accumulated Other Comprehensive Income (Loss)
Beginning Balance	(305)	42	(20)
Other comprehensive income (loss), net of taxes:
Unrealized gains (losses) on securities	3	(9)	2
Translation adjustment	3	(4)	(3)
Change in unrealized derivatives' fair value			(3)
Reclassification to earnings			7
Net gain (loss) during period, net of taxes	8	(341)	53
Amortization of unrecognized amounts	18	7	6
Other comprehensive income (loss)	32	(347)	62
Ending Balance	(273)	(305)	42	(20)
Common Stock Held in Treasury
Beginning Balance	(3,402)	(2,841)	(2,749)
Beginning Balance (in shares)	121	114	113
Tender of shares for stock-based awards	(11)	(61)	(92)
Tender of shares for stock-based awards (in shares)	1	1	1
Common stock purchased		(500)
Common stock purchased (in shares)		6
Other comprehensive income (loss), net of taxes:
Ending Balance	(3,413)	(3,402)	(2,841)	(2,749)
Ending Balance (in shares)	122	121	114	113
Total FCX stockholders' equity [Member]
Beginning Balance	5,773	18,234	2,445
Conversions and redemptions of 5.5% Convertible Perpetual Preferred Stock	(1)
Conversions of 5.5% Convertible Perpetual Preferred Stock		23
Sale of 6.75% Mandatory Convertible Preferred Stock			2,803
Acquisition of Phelps Dodge			7,781
Sale of common stock	740		2,816
Conversions of 7% Convertible Senior Notes			6
Exercised and issued stock-based awards	18	179	131
Stock-based compensation	100	100	86
Tax benefit for stock-based awards	6	13	10
Tender of shares for stock-based awards	(11)	(61)	(92)
Cumulative effect adjustment to initially apply new accounting guidance associated with income taxes			4
Common stock purchased		(500)
Dividends on common stock	(65)	(527)	(587)
Dividends on preferred stock	(222)	(274)	(208)
Comprehensive income (loss):
Net income (loss)	2,749	(11,067)	2,977
Other comprehensive income (loss), net of taxes:
Unrealized gains (losses) on securities	3	(9)	2
Translation adjustment	3	(4)	(3)
Change in unrealized derivatives' fair value			(3)
Reclassification to earnings			7
Net gain (loss) during period, net of taxes	8	(341)	53
Amortization of unrecognized amounts	18	7	6
Other comprehensive income (loss)	32	(347)	62
Total comprehensive income (loss)	2,781	(11,414)	3,039
Ending Balance	9,119	5,773	18,234	2,445
Noncontrolling Interests [Member]
Beginning Balance	1,328	1,239	213
Acquisition of Phelps Dodge			1,233
Cumulative effect adjustment to initially apply new accounting guidance associated with income taxes			1
Purchase of additional interests in subsidiaries			(11)
Distributions to noncontrolling interests	(535)	(730)	(967)
Contributions from noncontrolling interests	59	201	4
Sale of Phelps Dodge International Corporation			(38)
Comprehensive income (loss):
Net income (loss)	785	617	802
Other comprehensive income (loss), net of taxes:
Translation adjustment			1
Change in unrealized derivatives' fair value			(1)
Reclassification to earnings			1
Net gain (loss) during period, net of taxes	1	1	1
Other comprehensive income (loss)	1	1	2
Total comprehensive income (loss)	786	618	804
Ending Balance	$1,638	$1,328	$1,239	$213

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENT OF EQUITY (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statement of Stockholders' Equity [Abstract]
Taxes on defined benefit plans' net gain (loss) during the year	$51	$190	$34

NOTE 1. SUMMARY OF SIGNIFICANT

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation.The consolidated financial statements of Freeport-McMoRan Copper Gold Inc. (FCX) include the accounts of those subsidiaries where FCX directly or indirectly has more than 50 percent of the voting rights and has the right to control significant management decisions. The most significant entities that FCX consolidates include its 90.64 percent-owned subsidiary PT Freeport Indonesia and its wholly owned subsidiaries, Freeport-McMoRan Corporation and Atlantic Copper, S.A. (Atlantic Copper). FCX acquired Phelps Dodge Corporation (Phelps Dodge) on March19, 2007. FCXs results of operations include Phelps Dodges results beginning March 20, 2007 (refer to Note 18 for further discussion). FCX changed Phelps Dodges legal name to Freeport-McMoRan Corporation (FMC) in 2008; therefore, references to FMC and Phelps Dodge in these notes represent the same entity. FCXs unincorporated joint ventures with Rio Tinto plc (Rio Tinto) and Sumitomo Metal Mining Arizona, Inc. (Sumitomo) are reflected using the proportionate consolidation method (refer to Note 3 for further discussion). All significant intercompany transactions have been eliminated. Dollar amounts in tables are stated in millions, except per share amounts. Investments in unconsolidated companies owned 20 percent or more are recorded using the equity method. Investments in companies owned less than 20 percent, and for which FCX does not exercise significant influence, are carried at cost. Use of Estimates.The preparation of FCXs financial statements in conformity with accounting principles generally accepted in the United States (U.S.) requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates include fair values of assets acquired and liabilities assumed in the acquisition of Phelps Dodge; mineral reserve estimation; useful asset lives for depreciation, depletion and amortization; reclamation and closure costs; environmental obligations; estimates of recoverable copper in mill and leach stockpiles; pension, postretirement, postemployment and other employee benefits; deferred taxes and valuation allowances; reserves for contingencies and litigation; and asset impairment, including estimates used to derive future cash flows associated with those assets. Actual results could differ from those estimates. Foreign Currencies.For foreign subsidiaries whose functional currency is the U.S. dollar, monetary assets and liabilities denominated in the local currency are translated at current exchange rates, and non-monetary assets and liabilities, such as inventories, property, plant, equipment and development costs, are translated at historical rates. Gains and losses resulting from translation of such account balances are included in operating results, as are gains and losses from foreign currency transactions. For foreign subsidiaries whose functional currency is the local currency, assets and liabilities are translated at current exchange rates, while revenues and expenses a

NOTE 2. ASSET IMPAIRMENTS AND O

NOTE 2. ASSET IMPAIRMENTS AND OTHER CHARGES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
ASSET IMPAIRMENTS AND OTHER CHARGES	NOTE 2.ASSET IMPAIRMENTS AND OTHER CHARGES A summary of long-lived asset impairments, other than goodwill, and other charges recorded during the years ended December31, 2009 and 2008, follows (refer to Note 20 for long-lived asset impairments and other charges by FCXs reportable segments): 2009 2008 City of Blackwell partial litigation settlement $ 54 $ Restructuring costs 32 50 Pension and postretirement special benefits and curtailments (9 ) 61 Long-lived asset impairments 10,867 Total long-lived asset impairments and other charges $ 77 $ 10,978 In 2009, FCX recognized a charge of $54 million ($43 million to net income attributable to FCX common stockholders or $0.09 per diluted share) for the partial settlement of the City of Blackwell lawsuit (refer to Note 14 for further discussion). Also in 2009, FCX recognized charges relating to its revised operating plans in the fourth quarter of 2008 and January 2009 (as discussed below) for (i) restructuring costs totaling $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 and (ii) gains of $9 million ($7million to net income attributable to FCX common stockholders or $0.02 per diluted share) for pension and postretirement special retirement benefits and curtailments. During the fourth quarter of 2008, there was a dramatic decline in copper and molybdenum prices. After averaging $3.23 per pound in 2007 and $3.61 per pound for the first nine months of 2008, LME spot copper prices declined to a four-year low of $1.26 per pound in December 2008, averaged $1.78 per pound in the fourth quarter of 2008 and closed at $1.32 per pound on December 31, 2008. Additionally, while molybdenum markets had been strong in recent years with prices averaging approximately $30 per pound in 2007 and $33 per pound for the first nine months of 2008, molybdenum prices declined significantly to a four-year low of $8.75 per pound in November 2008, averaged approximately $16 per pound in the fourth quarter of 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 high-cost North America operations and of molybdenum production at the Henderson molybdenum mine; (ii)capital cost reductions; (iii)aggressive cost control, including work

NOTE 3. OWNERSHIP IN SUBSIDIARI

NOTE 3. OWNERSHIP IN SUBSIDIARIES, JOINT VENTURES AND INVESTMENT IN PT SMELTING
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
OWNERSHIP IN SUBSIDIARIES, JOINT VENTURES AND INVESTMENT IN PT SMELTING	NOTE 3.OWNERSHIP IN SUBSIDIARIES, JOINT VENTURES AND INVESTMENT IN PT SMELTING Ownership in Subsidiaries.On March 19, 2007, FMC became a wholly owned subsidiary of FCX. FMC is a fully integrated producer of copper and molybdenum, with mines in North America, South America and the Tenke Fungurume minerals district in the Democratic Republic of Congo (DRC), copper and molybdenum conversion facilities, and several development projects. At December 31, 2009, FMCs major operating copper mines in North America were Morenci, Sierrita, Bagdad, Safford and Miami located in Arizona, and Tyrone located in New Mexico. FCX has an 85 percent interest in Morenci (refer to Joint Ventures Sumitomo) and owns 100 percent of the other North America mines. FMC also owns the Henderson molybdenum mine and the Climax molybdenum mine (on care-and-maintenance status), which are located in Colorado. At December 31, 2009, operating copper mines in South America were Cerro Verde (53.56 percent owned) located in Peru and Candelaria (80 percent owned), Ojos del Salado (80 percent owned) and El Abra (51 percent owned) located in Chile. In addition to copper and molybdenum, certain mines produce other minerals as by-products, such as gold, silver and rhenium. At December 31, 2009, FMC owns an effective 57.75 percent interest in the Tenke Fungurume minerals district in the DRC, which commenced copper production in March 2009 and achieved targeted rates in September 2009. The Tenke Fungurume minerals district also produces cobalt hydroxide, with the cobalt and sulphuric acid plants commissioned in third-quarter 2009. At December 31, 2009, FMCs net assets totaled $11.6 billion and its accumulated deficit totaled $15.4 billion. As of December 31, 2009, FCX had no loans outstanding to FMC. FCXs direct ownership in PT Freeport Indonesia totals 81.28 percent. PT Indocopper Investama, an Indonesian company, owns 9.36 percent of PT Freeport Indonesia and FCX owns 100 percent of PT Indocopper Investama. At December 31, 2009, PT Freeport Indonesias net assets totaled $2.7 billion and its retained earnings totaled $2.5 billion. As of December 31, 2009, FCX had no outstanding loans to PT Freeport Indonesia. FCX owns 100 percent of the outstanding Atlantic Copper common stock. At December 31, 2009, Atlantic Coppers net assets totaled $88 million and its accumulated deficit totaled $302 million. FCX had $381million in loans outstanding to Atlantic Copper, and Atlantic Coppers debt under financing arrangements that are guaranteed by FCX totaled $13 million at December 31, 2009. In 2003, FCX acquired the 85.71 percent ownership interest in PT Puncakjaya Power (Puncakjaya Power) owned by affiliates of Duke Energy Corporation for $68 million cash, net of $10 million of cash acquired. Puncakjaya Power is the owner of assets supplying power to PT Freeport Indonesias operations, including the 3x65 megawatt coal-fired power facilities. PT Freeport Indonesia purchases power from Puncakjaya Power under infrastructure asset financing arrangements. In 2005, FCX prepaid $187million of bank debt associated with Puncakjaya Powers operations. At December 31, 2009, FCX did not have any loan

NOTE 4. INVENTORIES AND MILL AN

NOTE 4. INVENTORIES AND MILL AND LEACH STOCKPILES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
INVENTORIES, AND MILL AND LEACH STOCKPILES	NOTE 4.INVENTORIES, AND MILL AND LEACH STOCKPILES The components of inventories follow: December 31, 2009 2008 Mining Operations: Raw materials $ 1 $ 1 Work-in-process 108 88 Finished goodsa 588 703 Atlantic Copper: Raw materials (concentrates) 171 164 Work-in-process 227 71 Finished goods 15 1 Total product inventories 1,110 1,028 Total materials and supplies, netb 1,093 1,124 Total inventories $ 2,203 $ 2,152 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 December 31, 2009, and $22 million at December 31, 2008. A summary of mill and leach stockpiles follows: December 31, 2009 North South America America Indonesia Africa Total Current: Mill stockpiles $ $ 7 $ 39 $ $ 46 Leach stockpiles 547 74 621 Total current mill and leach stockpiles $ 547 $ 81 $ 39 $ $ 667 Long-terma: Mill stockpiles $ 15 $ 427 $ $ $ 442 Leach stockpiles 637 220 22 879 Total long-term mill and leach stockpiles $ 652 $ 647 $ $ 22 $ 1,321 December 31, 2008 North South America America Indonesia Africa Total Current: Mill stockpiles $ $ 10 $ 40 $ $ 50 Leach stockpiles 489 72 561 Total current mill and leach stockpiles $ 489 $ 82 $ 40 $ $ 611 Long-terma: Mill stockpiles $ 2 $ 335 $ $ 3 $ 340 Leach stockpiles 625 180 805 Total long-term mill and leach stockpiles $ 627 $ 515 $ $ 3 $ 1,145 a. Materials 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 $0.03 per diluted share) during first-quarter 2009 resulting from lower molybdenum prices. In 2008, FCX recorded charges of $782 million ($479 million to net loss attributable to FCX common stockholders or $1.26 per diluted share) fo

NOTE 5. PROPERTY, PLANT, EQUIPM

NOTE 5. PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET	NOTE 5.PROPERTY, PLANT, EQUIPMENT AND DEVELOPMENT COSTS, NET The components of net property, plant, equipment and development costs, along with 2008 impairment charges, follow: December 31, 2008 2009 2008 Impairments Proven and probable reserves $ 4,303 $ 4,052 $ 10,056 VBPP 1,297 1,341 471 Development and other 2,983 2,572 279 Buildings and infrastructure 2,703 2,381 167 Machinery and equipment 7,282 5,713 938 Mobile equipment 2,136 1,801 393 Construction in progress 1,084 2,686 27 Property, plant, equipment and development costs 21,788 20,546 12,331 Accumulated depreciation, depletion and amortization (5,593 ) (4,544 ) (1,583 ) Property, plant, equipment and development costs, net $ 16,195 $ 16,002 $ 10,748 FCX recorded $2.2 billion for VBPP in connection with the Phelps Dodge acquisition in 2007 and transferred $159million during 2009, $287 million during 2008 and $93 million during 2007 to proven and probable reserves. During the fourth quarter of 2009, FCX purchased property adjacent to its Sierrita mine from Twin Buttes Properties, Inc. for $200 million, including $12 million for water rights that is recorded as an intangible asset. FCX capitalized interest totaling $78 million in 2009, $122 million in 2008 and $147 million in 2007. Capitalized interest primarily related to development projects at Tenke Fungurume in 2009 and 2008 and Safford and Tenke Fungurume in 2007. In connection with the decline in copper and molybdenum prices and the deterioration of the economic environment during the fourth quarter of 2008, FCX evaluated its long-lived assets for impairment as of December 31, 2008. FCXs evaluations were based on current business plans developed using near-term price forecasts reflective of the current price environment and managements projections for long-term average metal prices. These evaluations resulted in the recognition of asset impairment charges of $10.9 billion ($6.6 billion to net loss attributable to FCX common stockholders or $17.34 per diluted share), consisting of $10,748 million to reduce the carrying values of property, plant, equipment and development costs and $119 million to reduce the carrying values of definite-lived intangible assets (refer to Note 2 for further discussion).

NOTE 6. GOODWILL, AND INTANGIBL

NOTE 6. GOODWILL, AND INTANGIBLE ASSETS AND LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
GOODWILL, AND INTANGIBLE ASSETS AND LIABILITIES	NOTE 6.GOODWILL, AND INTANGIBLE ASSETS AND LIABILITIES Goodwill.Changes in the carrying amount of goodwill for the year ended December 31, 2008, follow: Balance at December 31, 2007 $ 6,105 Purchase accounting adjustment (57 ) Deferred tax liability adjustment associated with the purchase of Phelps Dodgea (61 ) Impairment losses (5,987 ) Balance at December 31, 2008 $ a. Adjustment was allocated to the Morenci mine. FCX recorded goodwill in 2007 in connection with the Phelps Dodge acquisition, which primarily related to the requirement to recognize a deferred tax liability for the difference between the assigned values and the tax basis of assets acquired and liabilities assumed in a business combination. In accordance with accounting rules, goodwill resulting from a business combination is assigned to the acquiring entity's reporting units that are expected to benefit from the business combination. The allocation of goodwill to the reporting units, which FCX determined included its individual mines, was completed in the first quarter of 2008. Goodwill had an indefinite useful life and was not amortized, but rather was tested for impairment at least annually, unless events occurred or circumstances changed between annual tests that would more likely than not reduce the fair value of a related reporting unit below its carrying amount. FCX performed its annual goodwill impairment testing in the fourth quarter of 2008. FCXs evaluations were based on current business plans developed using near-term price forecasts reflective of the current price environment and managements projections for long-term average metal prices. These evaluations resulted in the recognition of impairment charges of $6.0 billion ($6.0 billion to net loss attributable to FCX common stockholders or $15.69 per diluted share) to eliminate the full carrying value of goodwill (refer to Note 2 for further discussion of assumptions used in determining fair value). Intangible Assets and Liabilities.The components of intangible assets and intangible liabilities (included in other liabilities) follow: December 31, 2009 Gross Net Carrying Accumulated Book Valuea Amortizationa Value Indefinite-lived water rights $ 253 $ $ 253 Patents and process technology 48 (8 ) 40 Royalty payments 38 (15 ) 23 Power contracts 25 (14 ) 11 Other intangibles 25 (5 ) 20 Total intangible assets $ 389 $ (42 ) $ 347 Total intangible liabilities: Treatment and refining terms in sales contracts $ 52 $ (21 ) $ 31 December 31, 2008 Gross Net Carrying Accumulated Book Valuea Amortizationa Value Indefinite-lived water rights $ 256 $ $ 256 Patents and process technology 48 (6

NOTE 7. OTHER ASSETS

NOTE 7. OTHER ASSETS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
OTHER ASSETS	NOTE 7.OTHER ASSETS The components of other assets follow: December 31, 2009 2008 Notes and other receivables $ 168 $ 119 Trust assetsa, b 140 142 Deferred tax assets 126 Debt issue costs 95 121 Available for sale securities 62 72 Equity-basis investments: PT Smelting 55 99 Other 39 28 Other 15 28 Total other assets $ 700 $ 609 a. Includes $129 million in 2009 and $114 million in 2008 of legally restricted funds for AROs at the Chino, Tyrone and Cobre mines (refer to Note 14 for further discussion). b. The current portion, which is included in other current assets, was $6 million at December31, 2009, and $118million at December 31, 2008.

NOTE 8. ACCOUNTS PAYABLE AND AC

NOTE 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE 8.ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Additional information regarding accounts payable and accrued liabilities follows: December 31, 2009 2008 Accounts payable $ 890 $ 1,164 Current deferred tax liability 201 78 Salaries, wages and other compensation 188 129 Community development programs 148 74 Pension, postretirement, postemployment and other employee benefitsb 127 156 Accrued interestc 113 136 Provisionally priced sales adjustmentsa 54 698 Other 317 287 Total accounts payable and accrued liabilities $ 2,038 $ 2,722 a. Represents payables to customers as a result of adjusting embedded derivatives in provisionally priced sales to market prices (refer to Revenue Recognition in Note 1 for further discussion). b. Refer to Note 9 for long-term portion and Note 11 for further discussion. c. Third-party interest paid by FCX was $504 million in 2009, $741 million in 2008 and $504 million in 2007.

NOTE 9. OTHER LIABILITIES

NOTE 9. OTHER LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
OTHER LIABILITIES	NOTE 9.OTHER LIABILITIES Additional information regarding other liabilities follows: December 31, 2009 2008 Pension, postretirement, postemployment and other employment benefitsa $ 950 $ 964 Reserve for uncertain tax benefits 157 159 Atlantic Copper contractual obligation to insurance company (refer to Note 11) 58 62 Insurance claim reserve 50 50 Other 208 285 Total other liabilities $ 1,423 $ 1,520 a. Refer to Note 8 for short-term portion and Note 11 for further discussion.

NOTE 10. DEBT

NOTE 10. DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
DEBT	NOTE 10.DEBT The components of debt follow: December 31, 2009 2008 Senior Credit Facility $ $ 150 Senior Notes: 8.375% Senior Notes due 2017 3,340 3,500 8.25% Senior Notes due 2015 1,297 1,500 Senior Floating Rate Notes due 2015 1,000 1,000 9% Senior Notes due 2031 198 198 6% Senior Notes due 2034 115 115 7% Debentures due 2027 115 115 8% Senior Notes due 2011 87 115 7% Convertible Senior Notes due 2011 1 1 6% Senior Notes due 2014 340 Other (including equipment capital leases and short-term borrowings) 193 317 Total debt 6,346 7,351 Less current portion of long-term debt and short-term borrowings (16 ) (67 ) Long-term debt $ 6,330 $ 7,284 Senior Credit Facility.In connection with financing FCXs acquisition of Phelps Dodge, FCX used proceeds from its borrowings under its $11.5 billion senior credit facility. At the close of the Phelps Dodge acquisition, the senior credit facility consisted of a $2.5 billion senior term loan due March 2012, a $7.5 billion Tranche B term loan due March 2014 and $1.5 billion in revolving credit facilities due March 2012, with no amounts drawn on the revolving credit facilities. The revolving credit facilities are composed of (i) a $1.0 billion revolving credit facility available to FCX and (ii) a $0.5 billion revolving credit facility available to both FCX and PT Freeport Indonesia. FCX used proceeds from equity offerings, operating cash flows and asset sales to prepay the $10 billion of term loans by December 31, 2007. At December 31, 2009, FCX had no borrowings and $39 million of letters of credit issued under the revolving credit facilities, resulting in availability of approximately $1.5 billion, of which $961 million could be used for additional letters of credit. Interest on the revolving credit facilities is based on the London Interbank Offered Rate (LIBOR) plus 1.00 percent, subject to an increase or decrease in the interest rate margin based on the credit ratings assigned by Standard Poors Rating Services and Moodys Investor Services. The senior credit facility is guaranteed by certain wholly owned subsidiaries of FCX and is secured by the pledge of equity in substantially all of these subsidiary guarantors and certain other non-guarantor subsidiaries of FCX, and intercompany indebtedness owed to FCX. Borrowings by FCX and PT Freeport Indonesia under the $0.5 billion revolver are also secured with a pledge of 50.1 percent of the outstanding stock of PT Freeport Indonesia, over 90 percent of the assets of PT Freeport Indonesia and, with respect to borrowings by PT Freeport Indonesia, a pledge of the Contract of Work. During 2007, FCX recorded net charges totaling $154 million ($120 million to net income attributable to FCX common stockholders or $0.30 per diluted share) for early extinguishment of debt rela

NOTE 11. EMPLOYEE BENEFITS

NOTE 11. EMPLOYEE BENEFITS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
EMPLOYEE BENEFITS	NOTE 11.EMPLOYEE BENEFITS Pension Plans.Following is a discussion of FCXs pension plans. FMC Plans. FCX has trusteed, non-contributory pension plans covering substantially all of FMCs U.S. employees and some employees of its international subsidiaries. The applicable FMC plan design determines the manner in which benefits are calculated for any particular group of employees. For certain of these plans, benefits are calculated based on final average monthly compensation and years of service. In the case of other plans, benefits are calculated based on a fixed amount for each year of service. Participants in the FMC plans generally vest in their accrued benefits after five years of service. Non-bargained FMC employees hired after December 31, 2006, are not eligible to participate in the FMC U.S. pension plan. FCXs funding policy for these plans provides that contributions to pension trusts shall be at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended, for U.S. plans; or, in the case of international plans, the minimum legal requirements that may be applicable in the various countries. Additional contributions also may be made from time to time. FCXs policy for determining asset-mix targets for the Freeport-McMoRan Corporation Defined Benefit Master Trust (Master Trust) includes the periodic development of asset/liability studies to determine expected long-term rates of return and expected risk for various investment portfolios. Management considers these studies in the formal establishment of asset-mix targets that are reviewed by FCXs retirement plan administration and investment committee. FCXs investment objective emphasizes the need to maintain a well-diversified investment program through both the allocation of the Master Trust assets among asset classes and the selection of investment managers whose various styles are fundamentally complementary to one another and serve to achieve satisfactory rates of return. Diversification, by asset class and by investment manager, is FCXs principal means of reducing volatility and exercising prudent investment judgment. FCXs present target asset allocation is about 54percent equity investments (35 percent U.S. equities, 12 percent international equities and 7 percent emerging markets equities), 35 percent fixed income (18 percent U.S. fixed income, 5 percent international fixed income, 5percent high yield, 4 percent treasury inflation-protection securities and 3 percent emerging markets fixed income) and 11 percent alternative investments (5 percent private equity, 3 percent private real estate and 3percent real estate investment trusts). The expected rate of return on plan assets is evaluated at least annually, taking into consideration its asset allocation, historical returns on the types of assets held in the Master Trust and the current economic environment. For U.S. plans, the determination of the expected long-term rate of return on plan assets is based on expected future performance of the plan asset mix and active plan asset management. Based on these factors, FCX expects the pension assets will earn an average o

NOTE 12. STOCKHOLDERS' EQUITY A

NOTE 12. STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION
	1/1/2009 - 12/31/2009 USD / shares
Notes To Financial Statements [Abstract]
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	NOTE 12.STOCKHOLDERS EQUITY AND STOCK-BASED COMPENSATION Common Stock.At the 2008 annual stockholder meeting, FCXs stockholders approved an increase in FCXs authorized shares of capital stock to 1.85 billion shares, consisting of 1.8 billion shares of common stock and 50 million shares of preferred stock. In July 2008, FCXs Board of Directors approved an increase in the open-market share purchase program for up to 30 million shares, which replaced FCXs previous program. During 2008, FCX acquired 6.3million shares for $500 million ($79.15 per share average) and 23.7 million shares remain available under this program. The timing of future purchases of FCXs common stock is dependent on many factors, including FCXs operating results, cash flows and financial position; copper, molybdenum and gold prices; the price of FCXs common stock; and general economic and market conditions. During September 2008, because of the financial turmoil and the decline in copper and molybdenum prices, FCX suspended its purchases of shares under its open-market share purchase program. 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 $740million). In December 2008, FCXs Board of Directors suspended the cash dividend on FCXs common stock; accordingly, there were no common stock dividends paid in 2009. In October 2009, the Board of Directors reinstated an annual cash dividend on FCXs common stock of $0.60 per share. On December 30, 2009, FCX declared a quarterly dividend of $0.15 per share, which was paid on February 1, 2010, to common shareholders of record at the close of business on January 15, 2010. The Board of Directors will continue to review FCXs financial policy on an ongoing basis. Preferred Stock.On March 28, 2007, FCX sold 28.75 million shares of 6% Mandatory Convertible Preferred Stock, with a liquidation preference of $100 per share, for net proceeds of $2.8 billion. The 6% Mandatory Convertible Preferred Stock will automatically convert on May 1, 2010, into shares of FCX common stock. The conversion rate is adjustable upon the occurrence of certain events, including the payment in any quarter of common stock dividends exceeding $0.3125 per share; however, adjustments required as a result of dividends that do not exceed one percent are carried forward and must be made no later than August 1 of each year. As a result of the quarterly common stock dividends paid through December 31, 2009, each share of preferred stock is now convertible on May 1, 2010, into between 1.3716 and 1.6460 shares of FCX common stock, for a total of between 39 million and 47 million shares, depending on the applicable market value of FCXs common stock. The conversion rate depends on the applicable average market price of FCXs common stock over the 20 trading day period ending on the third trading day prior to May 1, 2010. The conversion rate per $100 face amount of the preferred stock will be 1.6460 when the FCX common stock price is at or below $60.75 and 1.3716 when the FCX common stock price is at or abo

NOTE 13. INCOME TAXES

NOTE 13. INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
INCOME TAXES	NOTE 13.INCOME TAXES Geographic sources of income (loss) from continuing operations before income taxes and equity in affiliated companies net earnings for the years ended December 31, 2009, 2008 and 2007, consist of the following: 2009 2008 2007 United States $ 98 $ (13,850 ) $ 977 Foreign 5,718 541 5,134 Total $ 5,816 $ (13,309 ) $ 6,111 The provision for (benefit from) income taxes from continuing operations for the years ended December 31, 2009, 2008 and 2007, consists of the following: 2009 2008 2007 Current income taxes: Federal $ 19 $ 536 $ 458 State 7 14 72 Foreign 1,971 1,213 1,942 Total current 1,997 1,763 2,472 Deferred income taxes (benefits): Federal (70 ) (3,635 ) (295 ) State 79 (686 ) (20 ) Foreign 301 (609 ) 243 Total deferred 310 (4,930 ) (72 ) Valuation allowance on prior year deferred tax asset 323 Provision for (benefit from) income taxes $ 2,307 $ (2,844 ) $ 2,400 A reconciliation of the U.S. federal statutory tax rate to FCXs effective income tax rate for the years ended December 31, 2009, 2008 and 2007, follows: 2009 2008 2007 Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ 2,036 35 % $ (4,658 ) 35 % $ 2,139 35 % Foreign withholding tax 375 6 (55 ) 1 371 6 Foreign tax credit limitation 112 2 95 (1 ) 125 2 Reversal of indefinite reinvestment assertion 111 2 Percentage depletion (168 ) (3 ) (336 ) 3 (284 ) (5 ) International tax rate differential (147 ) (2 ) 59 (1 ) (184 ) (3 ) Valuation allowance on minimum tax credits 104 2 359 (3 ) Goodwill impairment 2,095 (16 ) State income taxes (2 ) (437 ) 3 Other items, net (3 ) 34 122 2 Provision for (benefit from) income taxes $ 2,307 40 % $ (2,844 ) 21 % $ 2,400 39 % FCX paid federal, state, local and foreign income taxes totaling $1,558 million in 2009, $2,656 million in 2008 and $2,660 million i

NOTE 14. CONTINGENCIES

NOTE 14. CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
CONTINGENCIES	NOTE 14.CONTINGENCIES Environmental.FCX incurred aggregate environmental capital expenditures and other environmental costs, including joint venture partners share, totaling $289 million in 2009, $377 million in 2008 and $280 million in 2007. FCX subsidiaries that operate in the U.S. are subject to various federal, state and local environmental laws and regulations that govern emissions of air pollutants; discharges of water pollutants; and generation, handling, storage and disposal of hazardous substances, hazardous wastes and other toxic materials. FCX subsidiaries that operate in the U.S. also are subject to potential liabilities arising under CERCLA or similar state laws that impose responsibility on persons who arranged for the disposal of hazardous substances, and on current and previous owners and operators of a facility for the cleanup of hazardous substances released from the facility into the environment, including damages to natural resources. With the passage of CERCLA in 1980, companies like FMC became legally responsible for environmental remediation on properties previously owned or operated by them, irrespective of when the damage to the environment occurred or who caused it. That liability often is shared on a joint and several basis with all other owners and operators, meaning that each owner or operator of the property is fully responsible for the cleanup, although in many cases some or all of the other historical owners or operators no longer exist, do not have the financial ability to respond or cannot be found. As a result, because of FCXs acquisition of Phelps Dodge in 2007, many of the subsidiary companies FCX now owns are responsible for a wide variety of environmental remediation projects throughout the U.S. FCX expects to spend substantial sums annually for many years to address those remediation issues. Certain FCX subsidiaries have been advised by the U.S. Environmental Protection Agency (EPA), the Department of the Interior, the Department of Agriculture and several state agencies that, under CERCLA or similar state laws and regulations, they may be liable for costs of responding to environmental conditions at a number of sites that have been or are being investigated to determine whether releases of hazardous substances have occurred and, if so, to develop and implement remedial actions to address environmental concerns. As of December 31, 2009, FCX had more than 100 active remediation projects in the U.S. in approximately 25 states. FCX is also subject to claims where the release of hazardous substances is alleged to have damaged natural resources. A summary of changes in environmental obligations for the years ended December 31, 2009, 2008 and 2007, follows: 2009 2008 2007 Balance at beginning of year $ 1,401 $ 1,268 $ Liabilities assumed in the acquisition of Phelps Dodge 117 1,334 Accretion expensea 102 95 Additions 40 36 6 Reductions (3 ) (1 ) (1 ) Spending (76 ) (114 ) (71 ) Balance at end of year

NOTE 15. COMMITMENTS AND GUARAN

NOTE 15. COMMITMENTS AND GUARANTEES
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
COMMITMENTS AND GUARANTEES	NOTE 15.COMMITMENTS AND GUARANTEES Operating Leases.FCX leases various types of properties, including offices and equipment. A summary of future minimum rentals under these non-cancelable leases at December 31, 2009, follows: 2010 $ 27 2011 28 2012 19 2013 14 2014 11 After 2014 99 Total payments $ 198 Minimum payments under operating leases have not been reduced by aggregate minimum sublease rentals, which are minimal. Total aggregate rental expense under operating leases was $74 million in 2009, $90 million in 2008 and $54million in 2007. Contractual Obligations.Based on applicable prices at December 31, 2009, FCX has unconditional purchase obligations of $2.4 billion, primarily comprising the procurement of copper concentrates and cathodes ($1.7billion), transportation ($227 million) and oxygen ($178 million) that are essential to its operations worldwide. Some of FCXs unconditional purchase obligations are settled based on the prevailing market rate for the service or commodity purchased. In some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrates and cathodes provide for deliveries of specified volumes, at market-based prices, to Atlantic Copper and the North America copper mines. Transportation obligations are for South America contracted ocean freight rates and for North America natural gas transportation. Oxygen obligations provide for deliveries of specified volumes, at fixed prices, primarily to Atlantic Copper. FCXs future commitments associated with unconditional purchase obligations total $1.4 billion in 2010, $399 million in 2011, $276 million in 2012, $224 million in 2013, $18 million in 2014 and $140 million thereafter. During 2009, 2008 and 2007, FCX fulfilled its minimum contractual purchase obligations or negotiated settlements in those situations in which it terminated an agreement containing an unconditional obligation. Mining Contracts.Indonesia. FCX is entitled to mine in Indonesia under the Contract of Work between PT Freeport Indonesia and the Government of Indonesia. The original Contract of Work was entered into in 1967 and was replaced with a new Contract of Work in 1991. The initial term of the current Contract of Work expires in 2021, but can be extended by PT Freeport Indonesia for two 10-year periods, subject to Indonesian government approval, which cannot be withheld or delayed unreasonably. Given the importance of contracts of work under the Indonesian legal system and PT Freeport Indonesias approximately 40 years of working with the Indonesian government, which included entering into the Contract of Work in 1991 well before the expiration of the 1967 Contract of Work, PT Freeport Indonesia fully expects that the government will approve the extensions as long as it continues to comply with the terms of the Contract of Work. In July 2004, FCX received a request from the Indonesian Department of Energy and Mineral Resources that it offer to sell shares in PT Indocopper Investama to Indonesian nationals at fair mark

NOTE 16. FINANCIAL INSTRUMENTS

NOTE 16. FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
FINANCIAL INSTRUMENTS	NOTE 16.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. The fair values of FCXs financial derivative instruments are based on derivative pricing models or widely published market closing prices. A summary of unrealized gains recognized in income (loss) from continuing operations 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 losses on the related hedged item (firm sales commitments) for the year ended December 31, 2009, follows: Hedged Derivative Item Commodity contracts: FMCs copper futures and swap contractsa $ 11 $ (11 ) a. Amounts are recorded in revenues. FCX realized gains, which are recorded in revenues, of $49 million during 2009 from matured derivative financial instruments that qualified for hedge accounting. A summary of the realized and unrealized gains (losses) recognized in income (loss) from continuing operations before income taxes and equity in affiliated companies net earnings for derivative financial instruments, including embedded derivatives, which do not qualify as hedge transactions for the years ended December 31, 2009, 2008 and 2007, follows: 2009 2008 2007 Commodity contracts: Embedded derivatives in provisional sales contractsa $ 1,393 $ (1,278 ) $ 197 Embedded derivatives in provisional purchase contractsb (3 ) 34 (10 ) PT Freeport Indonesias copper forward contractsa (104 ) Atlantic Coppers copper forward contractsb 2 (71 ) (44 ) FMCs copper futures and swap contractsa 64 (184 ) (38 ) FMCs zero-premium copper collarsa (175 ) a. Amounts recorded in revenues. b. Amounts recorded in cost of sales as production and delivery costs. A summary of the fair values of unsettled derivative financial instruments recorded on the consolidated balance sheet as of December 31, 2009, follows: Not Designated Designated as Hedges as Hedges Commodity contracts: FMCs copper futures and swap contracts: Asset positiona, b $ 11 $ 2 Embedded derivatives in provisional sales/purchases contracts:c Asset position 2

NOTE 17. FAIR VALUE MEASUREMENT

NOTE 17. FAIR VALUE MEASUREMENT
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
FAIR VALUE MEASUREMENT	NOTE 17.FAIR VALUE MEASUREMENT 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). A summary of FCXs financial assets and liabilities measured at fair value on a recurring basis follows: Fair Value at December 31, 2009 Total Level 1 Level 2 Level 3 Cash equivalents $ 2,610 $ 2,610 $ $ Trust assets (current and long-term) 146 146 Available-for-sale securities (current and long-term) 74 74 Embedded derivatives in provisional sales/purchases contracts, net 165 165 Other derivative financial instruments, net 14 14 $ 3,009 $ 3,009 $ $ 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 active markets. FCXs cash equivalents are primarily money market securities, time deposits and U.S. treasury securities. Trust Assets. The fair value of FCXs trust assets are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. FCXs trust assets are primarily money market securities and fixed income funds. Available-for-sale securities. FCXs available-for-sale securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The fair value of the available-for-sale securities is calculated as the quoted market price of the security multiplied by the quantity of shares held by FCX. Embedded derivatives in provisional sales/purchases contracts. FCXs embedded derivatives on provisional copper concentrate, copper cathode and gold sales are valued using quoted market prices based on the forward LME or COMEX prices (copper) and the London Bullion Market Association price (gold) and, as such, are classified within Level 1 of the fair value hierarchy. FCXs embedded derivatives on p

NOTE 18. ACQUISITION OF PHELPS

NOTE 18. ACQUISITION OF PHELPS DODGE
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
ACQUISITION OF PHELPS DODGE	NOTE 18.ACQUISITION OF PHELPS DODGE On March 19, 2007, FCX acquired Phelps Dodge, a fully integrated producer of copper and molybdenum, with mines in North and South America and processing capabilities for other by-product minerals, such as gold, silver and rhenium, and several development projects, including Tenke Fungurume in the DRC. In the acquisition, each share of Phelps Dodge common stock was exchanged for 0.67 of a share of FCX common stock and $88.00 in cash. As a result, FCX issued 136.9 million shares and paid $18.0 billion in cash to Phelps Dodge shareholders. The acquisition was accounted for under the purchase method with FCX as the accounting acquirer. The estimated fair value of assets acquired and liabilities assumed and the results of Phelps Dodges (now known as FMC) operations are included in FCXs consolidated financial statements beginning March 20, 2007. A summary of the $25.8 billion purchase price, which was funded through a combination of common shares issued, borrowings under an $11.5 billion senior credit facility, proceeds from the offering of $6.0billion of senior notes (refer to Note 10 for further discussion) and available cash resources follows: Phelps Dodge common stock outstanding and issuable at March 19, 2007 (in millions) 204.3 Exchange offer ratio per share of FCX common stock for each Phelps Dodge common share 0.67 Shares of FCX common stock issued (in millions) 136.9 Cash consideration of $88.00 for each Phelps Dodge common share $ 17,979 a Fair value of FCX common stock issued 7,781 b Transaction and change of control costs and related employee benefits 137 Release of FCX deferred tax asset valuation allowances (92 )c Total purchase price $ 25,805 a. Cash consideration includes cash paid in lieu of any fractional shares of FCX stock. b. Measurement of the common stock component of the purchase price was based on a weighted-average closing price of FCXs common stock of $56.85 for the two days prior to through two days after the public announcement of the merger on November 19, 2006. c. FCX determined that, as a result of the acquisition of Phelps Dodge, it would be able to realize certain U.S. tax credits for which it had previously not recognized any benefit. Recognition of these tax credits resulted in a $92million reduction to the purchase price. In accordance with the purchase method of accounting, the purchase price paid was determined at the date of the public announcement of the transaction and was allocated to the assets acquired and liabilities assumed based upon their estimated fair values on the closing date of March 19, 2007. In valuing acquired assets and assumed liabilities, fair values were based on, but not limited to: quoted market prices, where available; the intent of FCX with respect to whether the assets purchased were to be held, sold or abandoned; expected future cash flows; current replacement cost for similar capacity for certain fixed assets; market rate assumptions for contractual obligations; and appro

NOTE 19. DISCONTINUED OPERATION

NOTE 19. DISCONTINUED OPERATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
DISCONTINUED OPERATIONS	NOTE 19.DISCONTINUED OPERATIONS On October 31, 2007, FCX sold its international wire and cable business, Phelps Dodge International Corporation (PDIC), for $735 million, which resulted in a net loss of $14 million ($9 million to net income) for transaction-related costs. The transaction generated after-tax proceeds of approximately $650 million (net proceeds of $597 million after taxes, transaction-related costs and PDIC cash). As a result of the sale, the operating results of PDIC have been removed from continuing operations and reported as discontinued operations in the consolidated statements of operations. Selected financial information related to discontinued operations for the year ended December 31, 2007, follows: Revenues $ 937 Operating income 78 Provision for income taxes (24 ) Income from discontinued operations 46 a a. Includes income attributable to noncontrolling interests of $11 million. Cash flows from discontinued operations for the year ended December 31, 2007, have not been separately identified in the consolidated statements of cash flows.

NOTE 20. BUSINESS SEGMENTS

NOTE 20. BUSINESS SEGMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
BUSINESS SEGMENTS	NOTE 20.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. Beginning in 2009, the Sierrita mine is no longer a reportable segment because it did not meet any of the thresholds. Accordingly, FCX has revised its segment disclosures for the years ended December 31, 2008 and 2007, to conform with the current year presentation. Further discussion of the reportable segments included in FCXs operating divisions, as well as FCXs other reportable segments Rod Refining and Atlantic Copper Smelting Refining follows. Refer to Note 3 for information on FCXs ownership interests. North America Copper Mines.FCX has six operating copper mines in North America Morenci, Sierrita, Bagdad, Safford and Miami in Arizona, and Tyrone in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and 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 copper mines division includes Morenci as a reportable segment. Morenci. The Morenci open-pit mine, located in southeastern Arizona, primarily produces copper cathodes and copper concentrates. The Morenci mine produced approximately 40 percent of FCXs North America copper during 2009. Other Mines. Other mines include FCXs other operating southwestern U.S. copper mines Sierrita, Bagdad, Safford, Miami 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 concentrate 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 copper mines division includes Cerro Verde 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 concentrate as a by-product. The Cerro Verde mine produced approximately 50 percent of FCXs South America copper during 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. Indonesia.Indonesia mining includes PT Freeport Indonesias Grasberg minerals district. PT Freeport Indonesia produces copper concentrates, which contain significant quantities of gold and silver. Africa.Africa mining includes the Tenke Fungurume copper and cobalt mining concessions in the Ka

NOTE 21. SUPPLEMENTARY MINERAL

NOTE 21. SUPPLEMENTARY MINERAL RESERVE INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
SUPPLEMENTARY MINERAL RESERVE INFORMATION	NOTE 21.SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) Recoverable proven and probable reserves have been calculated as of December 31, 2009, in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCXs proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term reserve, as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term proven reserves means reserves for which (i) quantity is computed from dimen-sions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term probable reserves means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. FCXs reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies. At December 31, 2009, FCXs estimated consolidated recoverable reserves include 104.2 billion pounds of copper, 37.2million ounces of gold, 2.59 billion pounds of molybdenum, 270.4 million ounces of silver and 0.78 billion pounds of cobalt. At December 31, 2009, recoverable reserves include estimated recoverable copper totaling 2.7billion pounds in leach stockpiles and 1.3 billion pounds in mill stockpiles, including FCXs joint venture partners interest in the Morenci mine. Recoverable Proven and Probable Reservesa at December 31, 2009 Copper Gold Molybdenum (billion pounds) (million ounces) (million pounds) North America 27.7 0.2 2,072 South America 34.0 1.5 519 Indonesia 34.1 35.5 Africa 8.4 Consolidated basisb 104.2 37.2 2,591 Net equity interestc 83.0 33.6 2,350 a. Recoverable proven and probable reservesare estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economi	[1]
[1]Unaudited

NOTE 22. QUARTERLY FINANCIAL IN

NOTE 22. QUARTERLY FINANCIAL INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
QUARTERLY FINANCIAL INFORMATION	NOTE 22.QUARTERLY FINANCIAL INFORMATION (UNAUDITED) First Second Third Fourth Quarter Quarter Quarter Quarter Year 2009 Revenues $ 2,602 $ 3,684 $ 4,144 $ 4,610 $ 15,040 Operating income 672 a 1,508 2,084 2,239 a 6,503 a Net income 207 812 1,203 b 1,312 b 3,534 b Net income attributable to noncontrolling interests 104 164 224 293 785 Net income attributable to FCX common stockholders 43 a 588 925 b 971 a,b 2,527 a,b Basic net income per share attributable to FCX common stockholders 0.11 1.43 2.23 2.26 6.10 Diluted net income per share attributable to FCX common stockholders 0.11 a 1.38 2.07 b 2.15 a,b 5.86 a,b 2008 Revenues $ 5,672 $ 5,441 $ 4,616 $ 2,067 $ 17,796 Operating income (loss)c,d 2,396 2,053 1,133 (18,292 )e (12,710 )e Net income (loss) 1,505 1,284 742 (13,981 ) (10,450 ) Net income (loss) attributable to noncontrolling interests 319 274 155 (131 ) 617 Net income (loss) attributable to FCX common stockholdersc,d 1,122 947 523 (13,933 )e (11,341 )e Basic net income (loss) per share attributable to FCX common stockholders 2.93 2.47 1.37 (36.78 ) (29.72 ) Diluted net income (loss) per share attributable to FCX common stockholdersc,d 2.64 2.25 1.31 (36.78 )e (29.72 )e All references to income or losses per share are on a diluted basis, unless otherwise noted. a. Includes charges for LCM inventory adjustments totaling $19 million ($19 million to net income attributable to FCX common stockholders or $0.05 per share in the first quarter and $15 million to net income attributable to FCX common stockholders or $0.03 per share for the year). Includes restructuring charges totaling $34 million ($31million to net income attributable to FCX common stockholders or $0.07 per share) in the first quarter and $32 million ($25 million to net income attributable to FCX common stockholders or $0.06 per share) for the year. Also includes pension and postretirement gains totaling $9 million ($9 million to net income attributable to FCX common s	[1]
[1]Unaudited

NOTE 23. SUBSEQUENT EVENTS

NOTE 23. SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
SUBSEQUENT EVENTS	NOTE 23.SUBSEQUENT EVENTS From January 1, through February 25, 2010, FCX made open-market purchases of $133 million of its 8.25% Senior Notes for $145 million and $136 million of its 8.375% Senior Notes for $148 million, which are in addition to the purchases discussed in Note 10. FCX expects to record an approximate $27 million loss on early extinguishment of debt in the first quarter of 2010 in connection with these open-market purchases. In February 2010, FCX settled disagreements and the associated litigation among the members of the PCG regarding the allocation of remediation costs for the Pinal Creek site as discussed in Note 14. Pursuant to the settlement agreement, Miami paid $40 million to certain members of the PCG to settle the allocation of previously incurred costs, and agreed to take full responsibility for future groundwater remediation at the Pinal Creek site, with limited exceptions. In February 2010, FCX reached a partial settlement with the City of Blackwell and the Blackwell Municipal Authority by paying $54 million to settle all of the claims except for future damages relating to the potential failure of FCXs groundwater remediation system (which is under construction) to prevent contamination from entering the City of Blackwells wastewater treatment system (refer to Note 14 for further discussion of the litigation). FCX evaluated events after December 31, 2009, and through 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.

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule To Financial Statements [Abstract]
Schedule II - Valuation and Qualifying Accounts	FREEPORT-McMoRan COPPER GOLD INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In Millions) Col. A Col. B Col. C Col. D Col. E Additions Balance at Charged to Charged to Other Balance at Beginning of Costs and Other Add End of Period Expense Accounts (Deduct) Period Reserves and allowances deducted from asset accounts: Materials and supplies allowances 2009 $ 22 $ 4 $ - $ (5 )a $ 21 2008 16 11 - (5 )a 22 2007 16 7 - (7 )a 16 Valuation allowance for deferred tax assets 2009 $ 1,763 $ 366 $ 28 $ - $ 2,157 2008 1,165 582 16 - 1,763 2007 925 332 - (92 )b 1,165 Reserves for non-income taxes: 2009 $ 32 $ 2 $ 3 $ (6 )c $ 31 2008 34 7 (3 ) (6 )c 32 2007 22 4 11 (3 )c 34 a. Primarily represents write-offs of obsolete materials and supplies inventories. b. Represents a release of valuation allowances as a result of the acquisition of Phelps Dodge. c. Represents amounts paid or adjustments to reserves based on revised estimates.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010
Entity [Text Block]
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		$31,400,000,000
Entity Common Stock, Shares Outstanding		430,565,147