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฀63฀|฀2005฀ANNUAL฀REPORT฀฀฀FINANCIAL฀&฀OPERATING฀INFORMATION
Consolidated Statements of Stockholders’ Equity
Years฀Ended฀December฀31,฀ 2005฀ 2004฀ 2003
(In฀Thousands)
Convertible฀perpetual฀preferred฀stock:
Balance฀at฀beginning฀of฀year฀ ฀ ฀ ฀ ฀ $฀ 1,100,000฀ $฀ —฀ $฀ —
Sale฀of฀1,100฀shares฀to฀the฀public฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀1,100,000฀ ฀ —
Balance฀at฀end฀of฀year฀representing฀1,100฀shares฀in฀2005฀and฀2004฀ ฀ ฀ ฀ ฀ ฀ 1,100,000฀ ฀1,100,000฀ ฀ —
Step-up฀convertible฀preferred฀stock:
Balance฀at฀beginning฀of฀year฀representing฀14,000฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ 349,990
Conversions฀to฀Class฀B฀common฀stock฀and฀redemptions฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ (349,990)
Balance฀at฀end฀of฀year฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ —
Class฀B฀common฀stock:
Balance฀at฀beginning฀of฀year฀representing฀284,964฀shares฀in฀2005,฀260,001฀shares฀
฀ in฀2004฀and฀220,083฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀ 28,496฀ ฀ 26,000฀ ฀ 22,008
7%฀convertible฀senior฀notes฀conversions฀ ฀ ฀ ฀ ฀ ฀ 814฀ ฀ —฀ ฀ —
Exercised฀stock฀options,฀issued฀restricted฀stock฀and฀other฀representing฀3,854฀shares฀
฀ in฀2005,฀4,501฀shares฀in฀2004฀and฀6,703฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀ 386฀ ฀ 450฀ ฀ 670
8฀1
/4%฀convertible฀senior฀notes฀conversions฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ 2,046฀ ฀ 2,176
Step-up฀convertible฀preferred฀stock฀conversions฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ 1,146
Balance฀at฀end฀of฀year฀representing฀296,959฀shares฀in฀2005,฀284,964฀shares฀in฀2004฀
฀ and฀260,001฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀ 29,696฀ ฀ 28,496฀ ฀ 26,000
Capital฀in฀excess฀of฀par฀value฀of฀common฀stock:
Balance฀at฀beginning฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 1,852,816฀ ฀1,468,426฀ ฀ 687,828
7%฀convertible฀senior฀notes฀conversions฀ ฀ ฀ ฀ ฀ ฀ 245,834฀ ฀ —฀ ฀ —
Exercised฀stock฀options฀and฀other฀stock฀option฀amounts฀ ฀ ฀ ฀ ฀ ฀ 90,043฀ ฀ 83,648฀ ฀ 105,577
Tax฀benefit฀for฀stock฀option฀exercises฀ ฀ ฀ ฀ ฀ ฀ 18,736฀ ฀ 39,567฀ ฀ 1,343
Restricted฀stock฀grants฀ ฀ ฀ ฀ ฀ ฀ 4,817฀ ฀ 7,486฀ ฀ 1,380
8฀1
/4%฀convertible฀senior฀notes฀conversions฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ 286,689฀ ฀ 303,782
Issuance฀costs฀of฀convertible฀perpetual฀preferred฀stock฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ (33,000)฀ ฀ —
Step-up฀convertible฀preferred฀stock฀conversions฀ ฀ ฀ ฀ ฀ ฀ —฀ ฀ —฀ ฀ 341,885
Reclass฀of฀redeemable฀preferred฀stock฀issuance฀costs฀to฀other฀assets฀ ฀ ฀ ฀ ฀ ฀ ฀—฀ ฀ —฀ ฀ 26,631
Balance฀at฀end฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 2,212,246฀ ฀1,852,816฀ ฀ 1,468,426
Retained฀earnings:
Balance฀at฀beginning฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 604,680฀ ฀ 646,933฀ ฀ 534,447
Net฀income฀ ฀ ฀ ฀ ฀ ฀ 995,127฀ ฀ 202,267฀ ฀ 181,660
Dividends฀on฀common฀stock฀ ฀ ฀ ฀ ฀ ฀ (453,116)฀ ฀ (199,029)฀ ฀ (41,733)
Dividends฀on฀preferred฀stock฀ ฀ ฀ ฀ ฀ ฀ (60,500)฀ ฀ (45,491)฀ ฀ (27,441)
Balance฀at฀end฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 1,086,191฀ ฀ 604,680฀ ฀ 646,933
Accumulated฀other฀comprehensive฀income฀(loss):
Balance฀at฀beginning฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 11,342฀ ฀ 8,668฀ ฀ 10,963
Other฀comprehensive฀income฀(loss),฀net฀of฀taxes:
฀ Change฀in฀unrealized฀derivatives’฀fair฀value฀ ฀ ฀ ฀ ฀ ฀ (24)฀ ฀ 1,226฀ ฀ 5,195
฀ Reclass฀to฀earnings฀of฀net฀realized฀derivatives฀losses฀(gains)฀ ฀ ฀ ฀ ฀ ฀ (254)฀ ฀ 1,448฀ ฀ (7,490)
฀ Minimum฀pension฀liability฀adjustment฀ ฀ ฀ ฀ ฀ ฀ (315)฀ ฀ —฀ ฀ —
Balance฀at฀end฀of฀year฀ ฀ ฀ ฀ ฀ ฀ 10,749฀ ฀ 11,342฀ ฀ 8,668
Common฀stock฀held฀in฀treasury:
Balance฀at฀beginning฀of฀year฀representing฀105,974฀shares฀in฀2005,฀76,634฀shares฀in฀2004฀
฀ and฀75,173฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀(2,433,685)฀ ฀(1,374,043)฀ ฀(1,338,410)
Tender฀of฀1,808฀shares฀in฀2005,฀2,024฀shares฀in฀2004฀and฀1,461฀shares฀in฀2003฀to฀FCX฀
฀ for฀exercised฀stock฀options฀and฀restricted฀stock฀ ฀ ฀ ฀ ฀ ฀ (81,976)฀ ฀ (78,297)฀ ฀ (35,633)
Shares฀purchased฀representing฀2,371฀shares฀in฀2005฀and฀27,316฀shares฀in฀2004฀ ฀ ฀ ฀ ฀ (80,227)฀ ฀ (981,345)฀ ฀ —
Balance฀at฀end฀of฀year฀representing฀110,153฀shares฀in฀2005,฀105,974฀shares฀in฀2004฀
฀ and฀76,634฀shares฀in฀2003฀ ฀ ฀ ฀ ฀ ฀(2,595,888)฀ ฀(2,433,685)฀ ฀(1,374,043)
Total฀stockholders’฀equity฀ ฀ ฀ ฀ ฀ $฀ 1,842,994฀ $฀1,163,649฀ $฀ 775,984
The฀accompanying฀Notes฀to฀Consolidated฀Financial฀Statements฀are฀an฀integral฀part฀of฀these฀financial฀statements.