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notes with a face amount of $234.0 million were tendered for $239.0 million cash. FCX recorded a charge of $6.6 million ($4.8 million to net income) to losses on early extinguish- ments of debt. In July 2003, FCX purchased an additional $76.0 million face amount of its 7.20% Senior Notes for $77.2 million, and recorded a charge to losses on early extinguish- ment of debt of $1.3 million ($0.9 million to net income). In October 2003, holders of $68.9 million of 7.20% Senior Notes elected early repayment as permitted under their terms. At December 31, 2004, FCX had outstanding $66.5 million of its 7.50% Senior Notes and $4.5 million of its 7.20% Senior Notes. 

During the first quarter of 2004, FCX completed a tender offer and privately negotiated transactions for a portion of its remaining 8 1 /4% Convertible Senior Notes due 2006 resulting in the early conversion of $226.1 million of notes into 15.8 million shares of FCX common stock. FCX recorded a $10.9 million charge to losses on early extinguishment and conver- sion of debt in the first quarter of 2004 in connection with these conversions. The $10.9 million charge included $6.4 million of previously accrued interest costs that were reversed, resulting in an equivalent reduction to interest expense. In June 2004, the remaining $66.5 million of notes were called for redemption on July 31, 2004. During July, all of these notes were converted into 4.7 million shares of FCX’s common stock. As of July 31, 2004, all of the 8 1 /4% Convertible Notes, which totaled $603.8 million at issuance in 2001, had been converted into 42.2 million shares of FCX common stock. 

Redeemable Preferred Stock.  As discussed in Note 1, upon adoption of SFAS No. 150 on July 1, 2003, manda- torily redeemable preferred stock totaling $450.0 million was reclassified as debt. On August 1, 2003, FCX redeemed the 6.0 million depositary shares representing its Gold- Denominated Preferred Stock for $210.5 million. The mandatory redemption of the Gold-Denominated Preferred Stock shares reduced total consolidated debt by $232.6 million and resulted in a hedging gain to revenues of $22.1 million in 2003. 

FCX has outstanding 4.3 million depositary shares repre- senting 215,279 shares of its Gold-Denominated Preferred 

Stock, Series II totaling $167.4 million. Each depositary share has a cumulative quarterly cash dividend equal to the value of 0.0008125 ounce of gold and is mandatorily redeem- able in February 2006 for the cash value of 0.1 ounce of gold. These depositary shares trade on the New York Stock Exchange (NYSE) under the symbol “FCX PrC.” 

FCX has outstanding 4.8 million depositary shares repre- senting 29,750 shares of its Silver-Denominated Preferred Stock totaling $25.0 million at December 31, 2004, and had 44,625 shares totaling $37.5 million at December 31, 2003. As of December 31, 2004, each depositary share has a cumu- lative quarterly cash dividend equal to the value of 0.01031 ounce of silver, which will decline by 50 percent after the next scheduled redemption payment. FCX made six annual mandatory partial redemption payments on the underlying Silver-Denominated Preferred Stock through August 2004. For each of the partial redemptions, the difference between FCX’s carrying amount of $12.5 million and the actual redemption payments was recorded in revenues as a hedging gain or loss. On August 1, 2004, FCX made the sixth of eight scheduled annual redemption payments on its Silver-Denominated Preferred Stock for $13.9 million. The mandatory redemptions resulted in hedging gains (losses) to revenues of $(1.4) million in 2004, $1.7 million in 2003 and $0.8 million in 2002. Two annual redemption payments remain and will vary with the price of silver. These depositary shares trade on the NYSE under the symbol “FCX PrD.” 

Maturities and Capitalized Interest.  Maturities of debt instruments based on the amounts and terms outstanding at December 31, 2004, totaled $78.2 million in 2005, $296.9 million in 2006, $45.9 million in 2007, $49.6 million in 2008, $47.7 million in 2009 and $1,433.6 million thereafter. Capitalized interest totaled $2.9 million in 2004, $3.0 million in 2003 and $12.2 million in 2002. 

## Note 6.  Accrued Postretirement Benefits and Other Liabilites 

The following is a detail of FCX’s accrued postretirement benefits and other liabilities (in thousands): 

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