Freeport-McMoRan (FCX) 10-K 2017 FY Annual report

Exhibit 12.1

FREEPORT-McMoRan INC.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(in millions except ratios)

	For the years ended December 31,
	2017			2016			2015			2014			2013
Income (loss) before income taxes and equity in affiliated companies' net earnings (losses)	$	2,902		(3,472	)		(14,128	)		(800	)		4,390
Amortization of previously capitalized interest	91			84			71			55			45
Less capitalized interest	(121		)	(99	)		(215	)		(235	)		(174	)
Less preferred dividends of a consolidated subsidiary	—			(38	)		(47	)		(53	)		(31	)
Earnings (losses) from continuing operations before fixed charges	$	2,872		(3,525	)		(14,319	)		(1,033	)		4,230
Fixed charges:
Interest expense, net of capitalized interest	$	807		726			618			648			533
Capitalized interest	121			99			215			235			174
Amortization of debt expenses, premiums and and discounts	(6		)	29			(1	)		(42	)		(32	)
Interest portion of rental expense	16			18			18			21			18
Preferred dividends of a consolidated subsidiary	—			38			47			53			31
Total fixed charges	$	938		910			897			915			724
Adjusted earnings	3,810			(2,615	)		(13,422	)		(118	)		4,954
Ratio of earnings to fixed chargesa	$	4.1		—		b	—		c	—		d	6.8

a. For purposes of computing the consolidated ratio of earning to fixed charges, earnings consist of income (loss) before income taxes and equity in affiliated companies' net earnings (losses). Noncontrolling interests were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges consist of interest (including capitalized interest) of all indebtedness; amortization of debt discounts, premiums and expenses; the portion of rental expense that FCX believes to be representative of interest; and preferred stock dividends of a consolidated subsidiary. The ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges for the years presented because no shares of preferred stock were outstanding during these years.

b. As a result of the loss recorded in 2016, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $3.5 billion to achieve coverage of 1:1 in 2016.

c. As a result of the loss recorded in 2015, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $14.3 billion to achieve coverage of 1:1 in 2015.

d. As a result of the loss recorded in 2014, the ratio coverage was less than 1:1. FCX would have needed to generate additional earnings of $1.0 billion to achieve coverage of 1:1 in 2014.