Common stock and treasury shares issued in connection with our compensation plans were as
follows (in thousands):
Year Ended December 31,
2011
2010
2009
Shares
(1)
. . . . . . . . . . . . . . . . . . . . . .
876
728
765
Amount
(1)
. . . . . . . . . . . . . . . . . . . . . . $ 31,052 $ 21,232 $ 15,498
(1) The number of shares is net of shares withheld for employee taxes and the amount is based on the grant date price.
Non-cash oil and gas property reductions and additions included:
• non-cash reductions to oil and gas properties in 2010 of $665.9 million related to the sale of
our Gulf of Mexico shallow water shelf properties in exchange for 51.0 million shares of
McMoRan common stock; and
• non-cash additions to oil and gas properties of $12.9 million, $21.8 million and $55.3 million in
2011, 2010 and 2009, respectively, related to our asset retirement obligation.
Certain of our commodity derivative contracts include deferred premiums to be paid to the
counterparty based on the settlement terms specified in the contract. During 2011, 2010 and 2009, we
entered into derivative contracts with deferred premiums of $49.2 million, $162.9 million and $74.1
million, respectively. In connection with our September 2011 derivative transactions, we eliminated
$93.2 million of deferred premiums and interest associated with contracts entered into in 2010.
Note 14 — Equity
Earnings Per Common Share
Weighted average common shares outstanding for computing basic and diluted earnings were as
follows (in thousands):
Year Ended December 31,
2011
2010
2009
Common shares outstanding – basic . . . . . 141,227 140,438 124,405
Unvested restricted stock, restricted stock
units and stock options . . . . . . . . . . . . . .
1,772
1,459
883
Common shares outstanding – diluted . . . . 142,999 141,897 125,288
Included in computing our basic earnings per common share are certain awards which have
vested, but, at the election of the award recipients, the issuance of those common shares has been
deferred. For the years ended December 31, 2011, 2010 and 2009, 1.4 million, 1.8 million and
2.4 million, respectively, restricted stock units were excluded in computing diluted earnings per
common share because they were antidilutive due to the impact of the unrecognized compensation
cost on the calculation of assumed proceeds in the application of the treasury stock method.
In computing our earnings per share for 2011, we decreased our reported net income by the $1.4
million in preferred stock dividends attributable to the noncontrolling interest associated with our
consolidated subsidiary Plains Offshore. We owned 100% of the common shares of Plains Offshore
during 2011, and because Plains Offshore had a net loss for 2011, we did not allocate any
undistributed earnings to the noncontrolling interest preferred stock. In the event that Plains Offshore
has net income in future periods, we will be required to allocate distributed and undistributed earnings
between the common and preferred shares of Plains Offshore.
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