Notes To Consolidated Financial Statements 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: 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  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: The components of FCX’s deferred taxes follow (in thousands): December 31,  2004  2003 Deferred tax asset: Foreign tax credits  $ 417,853  $ 381,184 Atlantic Copper net operating loss carryforwards   148,338  98,896 U.S. alternative minimum tax credits  91,755  84,852 Intercompany profit elimination  27,130  17,592 Valuation allowance   (657,946)   (564,932) Total deferred tax asset  27,130  17,592 Deferred tax liability: Property, plant, equipment and development costs   (702,586)   (683,245) Undistributed earnings in PT Freeport Indonesia   (172,491)   (141,246) Deferred mining cost  (77,145)  (49,922) Other (7,324)  (10,449) Total deferred tax liability   (959,546)   (884,862) Net deferred tax liability  $(932,416) $(867,270) Options Outstanding  Options Exercisable Weighted  Weighted  Weighted Average  Average Average N u mb er of  Remaining   Option  Number of  Option Range of Exercise Prices  O pti o ns   Life   Price  Options   Price $ 9.09 to $11.31  4 08 ,875  6.0 years  $10.99  180,125  $ 10.61 $13.78 to $20.27  3, 4 72 ,663  5.7 years   15.65  988,943   15.59 $26.69 to $36.77  2, 6 83 ,425  8.8 years   35.34  1,350,425   34.75 6, 5 64 ,963  2,519,493 2004  2003  2002 Weighted Weighted  Weighted Number of  Average  Number of  Average  Number of  Average Options  Option Pri ce Options  Option Price  Options  Option Price Balance at January 1  10,327,745  $19.38  15,944,087  $17.82  15,711,696  $ 18.55 Granted  1,472,399   34.74  1,315,172   20.09  3,706,313   14.30 Exercised  (4,581,273)   18.42  (6,625,475)   15.75  (1,051,010)   11.18 Expired/Forfeited  (352,066)   21.65  (306,039)   19.93  (2,422,912)   20.00 Balance at December 31  6,866,805   23.20  10,327,745   19.38  15,944,087   17.82 Note 8.  Income Taxes 2004 ANNUAL REPORT  | 67