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## Notes To Consolidated Financial Statements 

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a. Assumed annual dividend for 2003 only applied to grants made after February 5, 2003. 

Earnings Per Share.  FCX’s basic net income per share of common stock was calculated by dividing net income appli- cable to common stock by the weighted-average number of common shares outstanding during the year. The following is 

a reconciliation of net income and weighted-average common shares outstanding for purposes of calculating diluted net income per share (in thousands, except per share amounts): 

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Outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the year are excluded from the computation of diluted net income per share of common stock. In addition, certain convertible instruments (see Notes 5 and 7) are excluded 

because including the conversion of these instruments would have increased reported diluted net income per share. A recap of the excluded amounts follows (in thousands, except exercise prices): 

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