Freeport-McMoRan 2008 Annual Report Download - page 93

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Notes to Consolidated Financial Statements
2008 Annual Report FREEPORT-McMoRan COPPER & GOLD INC. 91
A summary of outstanding restricted stock units as
of December 31, 2008, and activity during the year ended
December 31, 2008, is presented below:
Weighted-
Average
Number of Remaining Aggregate
Restricted Contractual Intrinsic
Stock Units Term (years) Value
Balance at January 1 796,373
Granted 1,359,915
Vested (376,460)
Forfeited (3,366)
Balance at December 31 1,776,462 1.9 $ 43
The grant-date fair value of restricted stock units granted to FCX
senior executives who elected to receive restricted stock units in
lieu of all or part of their cash incentive compensation during the
year ended December 31, 2008, was $40 million. Because this
was a performance-based award and the requisite service period
under SFAS No. 123R is considered to be the calendar year prior
to the grant date, the entire value of this award on the date of
grant was charged to expense during 2007. The total grant-date
fair value of all other restricted stock units granted during the
year ended December 31, 2008, was $78 million.
The total intrinsic value of restricted stock units vesting during
the year ended December 31, 2008, was $33 million. As of
December 31, 2008, FCX had $24 million of total unrecognized
compensation cost related to unvested restricted stock units
expected to be recognized over a weighted-average period of
1.3 years.
Restricted Stock Awards.
As discussed above, FCX has
restricted stock awards that were issued in connection with the
Phelps Dodge acquisition. A summary of outstanding restricted
stock awards as of December 31, 2008, and activity during the
year ended December 31, 2008, is presented below:
Balance at January 1 49,241
Vested (2,884)
Forfeited (1,036)
Balance at December 31 45,321
The total grant-date fair value of restricted stock awards was
$5 million at the acquisition date. The total fair value of shares
released or vested was less than $1 million during 2008 and
$2 million during 2007. As of December 31, 2008, FCX had
$4 million of total unrecognized compensation cost, including the
cash portion resulting from the conversion of restricted stock
awards at the acquisition date, related to unvested restricted
stock awards expected to be recognized over a weighted-average
period of 2.1 years.
NOTE 14. INCOME TAXES
Geographic sources of (loss) income from continuing operations
before income taxes, minority interests and equity in affiliated
companies’ net earnings for the years ended December 31, 2008,
2007 and 2006, consist of the following:
2008 2007 2006
United States $ (13,850) $ 977 $ 25
Foreign 541 5,134 2,795
Total $ (13,309) $ 6,111 $ 2,820
The (benefit from) provision for income taxes from continuing
operations for the years ended December 31, 2008, 2007 and
2006, consists of the following:
2008 2007 2006
Current income taxes:
Federal $ 536 $ 458 $ –
State 14 72 –
Foreign 1,213 1,942 1,035
Total current 1,763 2,472 1,035
Deferred income taxes (benefits):
Federal
(3,635) (295) –
State (686) (20) –
Foreign (609) 243 166
Total deferred (4,930) (72) 166
Valuation allowance on prior year
deferred tax asset 323 – –
(Benefit from) provision for
income taxes $ (2,844) $ 2,400 $ 1,201