Consolidated Statements of Income Years Ended December 31,  2004  2003  2002 (In Thousands, Except Per Share Amounts) Revenues $2,371,866  $2,212,165  $1,910,462 Cost of sales: Production and delivery   1,450,291   1,071,326  938,462 Depreciation and amortization  206,408  230,803  260,446 Total cost of sales   1,656,699   1,302,129   1,198,908 Exploration expenses  8,664  6,449  3,112 General and administrative expenses  89,927  80,279  68,305 Gain on insurance settlement  (87,000)  —  — Total costs and expenses   1,668,290   1,388,857   1,270,325 Operating income  703,576  823,308  640,137 Equity in PT Smelting earnings (losses)  2,045  5,609  (4,181) Interest expense, net  (148,103)  (197,017)  (171,209) Losses on early extinguishment and conversion of debt  (14,011)  (34,589)  — Gains on sales of assets  28,756  —  — Other income (expense), net  2,121  (13,536)  (15,085) Income before income taxes and minority interests  574,384  583,775  449,662 Provision for income taxes  (330,680)  (338,053)  (245,518) Minority interests in net income of consolidated subsidiaries  (41,437)  (48,469)  (36,441) Net income before cumulative effect of changes in accounting principles and preferred dividends  202,267  197,253  167,703 Cumulative effect of changes in accounting principles, net  —  (15,593)  (3,049) Net income  202,267  181,660  164,654 Preferred dividends  (45,491)  (27,441)  (37,604) Net income applicable to common stock  $ 156,776  $ 154,219  $ 127,050 Net income per share of common stock: Basic: Before cumulative effect  $  0.86  $  1.09  $  0.90 Cumulative effect  —  (0.10)  (0.02) Net income per share of common stock  $  0.86  $  0.99  $  0.88 Diluted: Before cumulative effect  $  0.85  $  1.07  $  0.89 Cumulative effect  —  (0.10)  (0.02) Net income per share of common stock  $  0.85  $  0.97  $  0.87 Average common shares outstanding: Basic  182,272  155,805  144,649 Diluted 184,923  159,102  146,418 Dividends paid per common share  $  1.10  $  0.27  $  — The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 50 |  FREEPORT-McMoRan COPPER & GOLD INC.