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In May 2004, FCX’s shareholders approved the “2004 Director Compensation Plan” (the 2004 Plan). The 2004 Plan autho- rizes awards of options and restricted stock units for up to 1.0 million shares and the one-time grant of 66,882 SARs. 

Awards granted under all of the plans generally expire 10 years after the date of grant and vest in 25 percent annual 

increments beginning one year from the date of grant. Awards for 0.7 million shares under the 2004 Plan, 6.7 million shares under the 2003 Plan and 0.1 million shares under the 1999 Plan were available for new grants as of December 31, 2004. A summary of stock options outstanding, including 0.3 million SARs, follows: 

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In 1998, two FCX executive officers were granted stock options under the 1995 Stock Option Plan to purchase a total of 2.6 million shares of FCX stock at $19.03 per share. The options 

were granted in return for a five-year cap on their cash incentive compensation. Summary information of stock options outstanding at December 31, 2004, excluding SARs, follows: 

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## Note 8. Income Taxes 

The components of FCX’s deferred taxes follow (in thousands): 

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