Notes To Consolidated Financial Statements Note 4.  Property, Plant, Equipment and Development Costs, Net The components of net property, plant, equipment and  development costs follow (in thousands): December 31,  2004  2003 Development and other  $ 1,495,854  $ 1,445,879 Buildings and infrastructure   1,440,873   1,425,223 Machinery and equipment   2,200,844   2,141,878 Mobile equipment  758,073  699,038 Construction in progress  72,525  144,160 Property, plant, equipment and development costs   5,968,169   5,856,178 Accumulated depreciation and amortization   (2,768,877)   (2,594,481) Property, plant, equipment and development costs, net  $ 3,199,292  $ 3,261,697 and probable reserves FCX acquired and are amortized using  the unit-of-production method based on estimated recoverable  proven and probable copper reserves. Additionally, other costs  include $20.8 million related to FCX’s acquisition of Atlantic  Copper in 1993 and relate to its smelter assets. These costs  are amortized using the straight-line method based on the  estimated life of Atlantic Copper’s smelter assets.  Development and other includes costs related to investments in  consolidated subsidiaries. These costs consist of $69.5 million  related to FCX’s purchase in December 1992 of 49 percent of  the capital stock of PT Indocopper Investama, $34.5 million  related to PT Freeport Indonesia’s issuance of its shares to FCX  in 1993 and 1994 to settle a convertible loan due to FCX and  $268.4 million related to FCX’s acquisition of the remaining  51 percent of the capital stock of PT Indocopper Investama in  February 2002. These costs relate to the value of the proven  December 31,  2004  2003 (In Thousands) Notes Payable: Puncakjaya Power bank debt, average rate 3.2% in 2004 and 3.0% in 2 0 03  $ 187,009  $ 235,491 Equipment loans and capital leases, average rate 4.4% in 2004 and 4.2 % in 2003  72,545  110,313 Atlantic Copper facility, average rate 3.6% in 2004 and 3.5% in 2003  4,381  132,972 Atlantic Copper working capital revolver, average rate 3.7% in 2003  —  55,000 Atlantic Copper deferral loan, average rate 4.0% in 2003  —  30,000 Other notes payable and short-term borrowings 9,254  21,027 FCX and PT Freeport Indonesia credit facility  —  — Senior Notes: 7% Convertible Senior Notes due 2011  575,000  575,000 10  1 /8% Senior Notes due 2010 500,000  500,000 6  7 /8% Senior Notes due 2014 340,295 — 7.50% Senior Notes due 2006  66,516 66,516 7.20% Senior Notes due 2026 4,525 4,525 8  1 /4% Convertible Senior Notes  —  292,604 Redeemable Preferred Stock: Gold-Denominated Preferred Stock, Series II  167,379  167,379 Silver-Denominated Preferred Stock  25,002  37,503 Total debt   1,951,906   2,228,330 Less current portion of long-term debt and short-term borrowings  78,214  152,396 Long-term debt, less current portion  $1,873,692  $2,075,934 Note 5.  Long-Term Debt 2004 ANNUAL REPORT  | 63