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NOTES฀TO฀CONSOLIDATED฀FINANCIAL฀STATEMENTS



฀ 2005฀ 2004
฀ ฀ Weighted฀ ฀ Weighted
฀ Number฀of฀ Average฀ Number฀of฀ Average
฀ Options฀ Option฀Price฀ Options฀ Option฀Price
Balance฀at฀January฀1฀ ฀ ฀ ฀ 6,866,805฀ $฀23.20฀ ฀ 10,327,745฀ $฀19.38
฀ Granted฀ ฀ ฀ ฀ ฀ 4,490,750฀ ฀37.03฀ ฀ 1,472,399฀ ฀34.74
฀ Exercised฀ ฀ ฀ ฀ (3,838,554)฀ ฀23.24฀ ฀ (4,581,273)฀ ฀18.42
฀ Expired/Forfeited฀ ฀ ฀ ฀ (163,389)฀ ฀31.51฀ ฀ (352,066)฀ ฀21.65
Balance฀at฀December฀31฀ ฀ ฀ ฀ 7,355,612฀ ฀31.43฀ ฀ 6,866,805฀ ฀23.20

















Expected฀volatility฀ 33.3%-42.2%
Weighted-average฀volatility฀ 37.7%
Expected฀life฀of฀options฀(in฀years)฀ 4.0
Expected฀dividend฀rate฀ 2.9%
Risk-free฀interest฀rate฀ 4.4%










FCX฀shares฀tendered฀to฀pay฀the฀exercise฀price฀and/or฀
฀ the฀minimum฀required฀taxesa฀ ฀ ฀ ฀ ฀ ฀ 809,926
Cash฀received฀from฀stock฀option฀exercises฀ ฀ ฀ ฀ ฀ $฀ 36.8
Actual฀tax฀benefit฀realized฀for฀the฀tax฀deductions฀from฀
฀ stock฀option฀exercises฀ ฀ ฀ ฀ ฀ $฀ 30.9
Amounts฀FCX฀paid฀for฀employee฀taxes฀related฀to฀
฀ stock฀option฀exercises฀ ฀ ฀ ฀ ฀ $฀ 21.5
Amounts฀FCX฀paid฀for฀exercised฀SARs฀ ฀ ฀ ฀ ฀ $฀ 2.1
 










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