Notes To Consolidated Financial Statements 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  The following is a detail of FCX’s accrued postretirement  benefits and other liabilities (in thousands): Note 6.  Accrued Postretirement Benefits and Other Liabilites 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. 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.” 2004 ANNUAL REPORT  | 65 2004  2003 Atlantic Copper contractual obligation to insurance company (Note 9)  $ 69,767  $ 68,013 Pension and long-term incentive compensation (Note 9)  76,009  53,641 Asset retirement obligations (Note 10)  22,848  26,486 Reserve for non-income taxes (Note 10)  18,910  19,000 Other long-term liabilities and reserves  12,694  12,697 Total accrued postretirement benefits and other liabilities  $200,228  $179,837