Table of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

(Mark One)

		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the fiscal year ended December 31, 2001
		OR
		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                            to                         

Commission file number 1-82

 

PHELPS DODGE EMPLOYEE SAVINGS PLAN

 

PHELPS DODGE CORPORATION

One North Central Avenue
Phoenix, Arizona 85004-4416

 

---

Table of Contents

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee has duly caused this Annual Report to be signed by the undersigned hereunto duly authorized.

			PHELPS DODGE EMPLOYEE SAVINGS PLAN
Date:     June 24, 2002			By:		/s/ David L. Pulatie David L. Pulatie, Chairman Benefits Administration Committee

 

---

Report of Independent Accountants
Statements of Net Assets Available for Benefits
Statement of Changes in Net Assets Available for Benefits
Notes to Financial Statements
Supplemental Information
	Schedule I
	Schedule II

---

Table of Contents

Phelps Dodge Employee Savings Plan
Index
December 31, 2001 and 2000

		Page
Report of Independent Accountants			1
Statements of Net Assets Available for Benefits			2
Statement of Changes in Net Assets Available for Benefits			3
Notes to Financial Statements			4
Supplemental Information:*
I.    Schedule of Assets (Held at End of Year)			11
II.    Schedule of Reportable Transactions			30

---

*

Other schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable

 

---

Table of Contents

Report of Independent Accountants

To the Benefits Administration Committee and Participants
of the Phelps Dodge Employee Savings Plan

In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Phelps Dodge Employee Savings Plan at December 31, 2001 and 2000, and the changes in net assets available for benefits for the year ended December 31, 2001 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Benefits Administration Committee (the Committee); our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the Committee, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets (held at end of year) and of reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Committee. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

PricewaterhouseCoopers LLP
Phoenix, Arizona
June 24, 2002

 

---

Table of Contents

Phelps Dodge Employee Savings Plan
Statements of Net Assets Available for Benefits
December 31, 2001 and 2000
(in thousands)

		2001				2000
Assets
Investments (see Note 3)		$	462,362			$	353,462
Employer contribution receivables			474				197
Net assets available for benefits		$	462,836			$	353,659

The accompanying notes are an integral part of these financial statements

-2-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2001
(in thousands)

Additions to (deductions from):
	Additions to (deductions from) net assets attributed to:
		Investment income (loss):
			Net depreciation in fair value of investments (see Note 3)		$	(69,569	)
			Interest and dividends			12,952
						(56,617	)
		Contributions:
			Employer contributions			13,519
			Participant contributions			28,094
						41,613
			Total additions (deductions), net			(15,004	)
Deductions:
	Deductions from net assets attributed to:
		Distributions to participants and beneficiaries				55,021
		Administrative expenses				379
			Total deductions			55,400
Funds transferred in from affiliated Employee Savings Plan (Note 1)						179,581
Increase in net assets						109,177
Net assets available for benefits at December 31, 2000						353,659
Net assets available for benefits at December 31, 2001					$	462,836

The accompanying notes are an integral part of these financial statements

-3-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

1.		Description of Plan
		General The Phelps Dodge Corporation Savings and Deferred Profit Sharing Plan (the Plan), a defined contribution plan, was established by Phelps Dodge Corporation (the Corporation) effective January 1, 1953, for the benefit of eligible salaried employees (the Participants). Hourly employees became eligible for the savings feature of the Plan on April 1, 1989. Subsequently, the Plan name was changed to Phelps Dodge Employee Savings Plan. In 2001, the Plan was amended and restated to incorporate regulatory changes effective January 1, 1997 and for plan changes effective January 1, 2001 related to the matching contribution from the Corporation and the hardship withdrawals.
		In 1999, the Corporation acquired Cyprus Amax Minerals Company. As a result, the Cyprus Amax Minerals Company Savings Plan and Trust, a defined contribution plan, was merged into the Plan. On January 2, 2001, all the assets of the Cyprus Amax Minerals Company Savings Plan and Trust, in the amount of $179,581,000, were transferred to the Plan.
		The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA). A brief description of the Plan is included in the following paragraphs. Participants should refer to the Plan document for a complete description of Plan provisions.
		Administration The Plan is sponsored by the Corporation and administered by the Benefits Administration Committee (the Committee) composed of five employees of the Corporation who are appointed by the Corporation’s Board of Directors.
		Plan assets are held by a trust (the Trust) administered by UMB Bank, n.a. (the Trustee) and J.P. Morgan/American Century Retirement Plan Services (the Recordkeeper) serves as the Recordkeeper of the Trust.
		Administrative expenses are paid by the Corporation, and all other fees and expenses are paid by the Trust.
		Investment Options The Plan has a combination of participant and self-directed funds. The Trust is comprised of the following participant directed investments at December 31, 2001:
		Interest Income Fund – common/collective fund investing in high quality government and corporate bonds, stable value and guaranteed investment contracts and money market instruments.
		Income and Growth Fund – mutual fund investing in stocks of large-sized companies whose stock is expected to have a higher expected dividend yield and higher overall return potential than the S&P 500 Index.
		Equity Growth Fund – mutual fund investing in common stocks that fund management believes will have higher overall return potential than the S&P 500 Index.

-4-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

1.

Description of Plan (Continued)

		Enhanced Index Fund – mutual fund investing in approximately 350 large U.S. companies whose stock is expected to provide a higher total return potential than the S&P 500 Index.
		Small Cap Stock Fund – mutual fund investing primarily in stocks of small-sized companies and seeks to outperform the Russell 2000 Index.
		EuroPacific Growth Fund – mutual fund investing in stocks of non-U.S. companies which appear to offer above-average growth potential and whose objective is to provide long-term growth of capital.
		Conservative Investment Portfolio Fund – asset allocation portfolio comprising of 60 percent of the Interest Income Fund and a 40 percent mix of the plan’s mutual funds to provide a conservative investment return.
		Moderate Investment Portfolio Fund – asset allocation portfolio comprising of a 60 percent mix of the plan’s mutual funds and 40 percent of the Interest Income Fund to provide a moderate investment return.
		Aggressive Investment Portfolio Fund – asset allocation portfolio comprising of an 80 percent mix of the plan’s mutual funds and 20 percent of the Interest Income Fund to provide an aggressive investment return.
		Phelps Dodge Common Stock Fund – invests only in common stock of the Corporation.
		The following account allows for participants to self-direct these funds:
		Schwab Personal Choice Retirement Fund – enables participants to transfer funds from the above accounts to a wide range of investments, which includes mutual funds, over-the-counter stocks, short-term cash instruments and other investment options offered by Schwab.
		In addition, certain participants hold assets in the Occidental Petroleum Common Stock Fund as a result of the transfer of assets from the Columbian Chemicals Company plan and in the BP Amoco Common Stock Fund as a result of the transfer of assets from the Cyprus Amax Minerals Company Savings Plan and Trust.
		Contributions Participants are eligible to make pretax contributions (Pretax Contribution), subject to certain limitations, equal to 1 percent to 15 percent of their eligible pay. These Pretax Contributions are eligible for a matching contribution from the Corporation (Company Matching Contribution). For Plan years after January 1, 2001, the Company Matching Contribution is equal to 100 percent of the first 3 percent of eligible pay deferred and 50 percent of the next 2 percent of eligible pay deferred. Participants are eligible to make Pretax Contributions to the Plan immediately upon hire date, and those Pretax Contributions are eligible for the Company Matching Contribution. For Plan years prior to January 1, 2001, the Company Matching Contribution was equal to 50 percent of the first 5 percent of the base pay deferred. Participants were eligible to make contributions to the Plan after three months of service; however, these contributions were not eligible for Company Matching Contribution until after one year of

-5-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

1.		Description of Plan (Continued)
		service. All contributions are invested in one or more of the investment funds available within the Plan as elected by participants. Participants are fully vested in their total account balance.
		A profit sharing contribution for certain salaried and Phelps Dodge Mercantile hourly employee participants may be made by the Corporation (Company Profit Sharing Contribution). For Plan years after January 1, 2001, the Company Profit Sharing Contribution is limited to the lesser of:

	•		6 percent;
	•		8 percent of consolidated net income of the Corporation divided by aggregate eligible pay for eligible Participants; or
	•		4 percent of consolidated net income divided by the aggregate eligible pay of exempt salaried employee Participants;

		multiplied by the total eligible pay of all Participants.
		These Company Profit Sharing Contributions can be made only to the extent that it does not reduce consolidated net income below $0.50 per common share for such year after provision for payment of preferred and preference share dividends. The Corporation did not make a profit sharing contribution in 2001.
		Distributions Participants’ interests in the Trust become distributable upon severance of their service with the Corporation or to their beneficiaries in the event of their death or upon attaining age 59 1/2. The distribution may be a single lump sum or a series of substantially equal annual, quarterly or monthly cash installments beginning no earlier than age 55 and continuing over a period not to exceed 10 years, at the election of the Participant or beneficiary. Cash distributions are based upon the underlying closing price of the funds, except for Phelps Dodge Common Stock, Occidental Petroleum Stock or BP Amoco Stock, which are based upon the actual price at which the stock is liquidated in the market three days prior to the time of distribution. Distributions of the Phelps Dodge Common Stock Fund, Occidental Petroleum Common Stock Fund and BP Amoco Common Stock Fund may be made in shares.
		Participants may withdraw their after-tax contributions and earnings thereon at any time. The Plan also provides, with certain limitations, for hardship withdrawals of employee Pretax, Company Matching (amounts credited before January 1, 2001) and Company Profit Sharing Contributions; however, earnings on any of these contributions are ineligible for hardship withdrawal. Hardship withdrawals are not granted unless other financial resources are not reasonably available, including after-tax savings or a loan from the Plan. All withdrawals and distributions are made in accordance with procedures outlined in the Plan document.
		Loans Participants may borrow amounts as provided in the Plan. Loans are repayable over a maximum of 5 years with the exception of loans for the purchase of a primary residence which may extend to 15 years. The maximum loan is an amount equal to $50,000 minus the Participant’s highest outstanding loan balance during the past 12 months, limited to 50 percent of the Participant’s vested account balance. Loans bear the prime interest rate as quoted in the Wall Street Journal plus 2 percent as of the first of each month. The prime rate at December 31, 2001 was 4.75 percent.

-6-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

1.		Description of Plan (Continued)
		Loans are repaid by payroll deduction and interest is credited to Participant accounts. Loans are secured by the Participant’s previous contributions to the Plan.
		Plan Termination The Plan may be amended or terminated at any time by the Corporation. No such action may cause any portion of the Trust to revert to the Corporation or to be used or diverted for any purpose other than for the exclusive benefit of Participants or their beneficiaries.
2.		Summary of Significant Accounting Policies
		Basis of Presentation The financial statements of the Plan are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.
		Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of Plan income and expenses during the reporting period. Actual results could differ from those estimates.
		Investment Valuation and Income Recognition Plan investments, other than Guaranteed Investment Contracts (GICs), are presented at fair value. The fair values of common stock, registered investment companies and common/collective fund shares are based upon the closing market price on the valuation date. The GICs are recorded at contract value. Contract value is based upon the GICs’ respective face values plus accrued interest on the valuation date. Participant loans are valued at cost, which approximates fair value.
		Security transactions are recorded on a trade date basis. Expenses paid by the Plan in connection with such transactions include brokerage commissions and taxes which are included in the cost of securities purchased and deducted from the proceeds of securities sold. The net appreciation (depreciation) in the fair value of the Plan’s investments consists of the realized gains (losses) and the unrealized appreciation (depreciation) on those investments. Dividend income is recognized on the ex-dividend date. Interest income is recognized as earned. Employer and participant contributions are recognized on the accrual basis.
		Payment of Benefits Benefits are recorded when paid.

-7-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

2.		Summary of Significant Accounting Policies (Continued)
		New Accounting Pronouncements In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 133, “Accounting for Derivative Instruments and Hedging Activities”. SFAS No. 133 requires that an entity recognize all derivatives and measure those instruments at fair value.
		SFAS No. 133 is effective for fiscal years beginning after June 15, 2000. Pursuant to SFAS No. 137, the Plan is required to adopt SFAS No. 133 effective January 1, 2001. There is an inconsistency in accounting literature between SFAS No. 133, requiring derivatives to be measured at fair value, and the AICPA Audit and Accounting Guide on “Audits of Employee Benefit Plans” and Statement of Position 94-4, “Reporting of Contribution Pension Plans,” requiring benefit responsive investment contracts (including synthetic GICs) to be measured at contract value. The FASB has issued an exposure draft dated May 1, 2002, “Amendment of Statement 133 on Derivative Instruments and Hedging Activities,” which addresses this discrepancy. The amendment proposes that certain investment contracts are not subject to SFAS No. 133. Until this discrepancy is resolved, the contract value for those instruments of $106,635,000 at December 31, 2001, has been included in the financial statements. Refer to Note 4 for further discussion of GICs.
3.		Investments
		The following table presents the current value of investments that represent 5 percent or more of the Plan’s net assets at December 31:

		2001				2000
		(in thousands)
J.P. Morgan Interest Income Fund		$	70,499			$	47,371
American Century Equity Growth Fund			63,229				63,564
American Century Income & Growth Fund			50,547				47,870
Moderate Investment Portfolio Fund			57,439				21,464
Aggressive Investment Portfolio Fund			36,839				27,658
J.P. Morgan Enhanced Index Fund			34,855				26,694
Schwab Personal Choice Retirement Fund			28,401				19,771
Phelps Dodge Corporation Common Stock			50,642				49,817
Participant Loans			23,803				19,142

-8-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

3.		Investments (Continued)
		During 2001, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) depreciated in value as follows:

		For the
		year ended
		December 31,
		2001
		(in thousands)
Common stock		$	(42,547	)
Registered investment companies			(18,775	)
Common/collective funds			(8,247	)
		$	(69,569	)

4.		Investment Contracts with Insurance Companies
		During 2001 and 2000, the Interest Income Fund had investments in benefit responsive synthetic investment contracts. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administration expenses. Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. These contracts are included in the financial statements at contract value.
		There are no reserves against contract value for credit risk of the contract issuer or otherwise. The average yield and crediting interest rates were approximately 6.37% and 6.44% for 2001 and 2000, respectively. The crediting interest rate is based on a formula agreed upon by the issuers. Such interest rates are reviewed on a quarterly basis for resetting.

-9-

---

Table of Contents

Phelps Dodge Employee Savings Plan
Notes to Financial Statements
December 31, 2001 and 2000

5.		Related Party Transactions
		The Trustee invests in the Corporation’s common stock in accordance with the provisions of the Plan. The following is a summary of transactions in the Corporation’s common stock:

		For the year ended
		December 31,
		2001				2000
		(in thousands)
Cost of shares purchased		$	16,506			$	25,309
Number of shares purchased			443				543
Proceeds from shares sold		$	14,025			$	14,717
Number of shares sold			351				295
Value of shares distributed		$	2,248			$	1,262
Number of shares distributed			42				23

		Certain Plan investments are shares of Registered Investment Companies and Common/ Collective Trusts managed by American Century Investments and J.P. Morgan Investment Management. J.P. Morgan/American Century Retirement Plan Services, an affiliate, is the Recordkeeper as defined by the Plan and, therefore, these transactions qualify as party-in-interest.
6.		Tax Status
		The Plan received a determination letter from the Internal Revenue Service (IRS) dated January 21, 2000, which stated that the Plan met the requirements of Section 401(a) of the Internal Revenue Code and that the earnings of the Trust are exempt from taxation under Section 501(a) of the Code. The Plan has been amended and restated since receiving the determination letter, and has filed for a redetermination by the IRS that the Plan, as amended and restated, continues to satisfy such requirements. The Committee believes that the Plan, as amended and restated and as operated, continues to satisfy IRS requirements for tax exemption.
7.		New Legislation for 2002
		The Economic Growth and Tax Relief Reconciliation Act of 2001 has made the following changes for 2002:

	•		Pretax Contributions, subject to certain limitations imposed by the IRS, up to 100 percent of eligible pay;
	•		participants may be entitled to a tax credit;
	•		additional contributions for participants 50 years or over;
	•		greater flexibility in rollovers; and
	•		shorter suspension period following hardship withdrawals.

-10-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Cash and Short-Term Investments:
		Cash		-						$	20,473
		Schwab Money Market Fund		1,589,981							2,827,881
*		UMB Scout Prime		67,907							67,907
		U.S. Treasury Note 6.50% Due 2/28/02		10,000							10,075
		U.S. Treasury Note 6.25% Due 6/30/02		275,000							282,045
		Total Cash and Short-Term Investments									3,208,381
		Common/Collective Funds:
*		J.P. Morgan U.S. Smart Index Fund		3,012,580		shares					60,962,382
*		J.P. Morgan Liquidity Fund		2,066,515		shares					1,977,919
*		J.P. Morgan Public Bond Fund		4,699,773		shares					73,786,442
*		J.P. Morgan Corporate Private Placement Fund		362,504		shares					4,060,044
*		J.P. Morgan Mortgage Private Placement Fund		1,188,077		shares					20,553,740
*		J.P. Morgan High Yield Opportunity Fund		308,423		shares					3,201,436
*		J.P. Morgan Public Mortgage Fund		389,740		shares					6,002,001
*		J.P. Morgan Emerging Markets Opportunity Fund		36,206		shares					429,770
		Total Common/Collective Funds									170,973,734
		Corporate Debt:
		General Electric Capital 6.52% Med Term Note 10/8/02		2,000							2,063
		Total Corporate Debt									2,063
		Common Stocks:
		1/10 Berkshire Hathaway Class A		10		shares					75,600
		3Com Corporation		694		shares					4,428
		3W Ventures.com Inc		700		shares					—
		4Kids Entertainment Inc		500		shares					10,015
		8X8 Inc		14		shares					12
		ACTV Inc		85		shares					159
		ADC Telecommunications Inc		1,325		shares					6,095
		AM Communications Inc		2,000		shares					800
		AMF Bowling Inc		800		shares					44
		AO Tatneft Spon ADR		500		shares					5,160
		AT&T Corporation		2,725		shares					49,435
		AT&T Wireless		1,405		shares					20,190
		Aastrom Biosciences Inc		200		shares					196
		Aber Diamond Corporation		400		shares					5,064
		Aberdeen Asia Pac Income		2,209		shares					8,483
		Access Power Inc		250		shares					7
		Ace Communications Corporation		100		shares					114
		Action Performance Company		100		shares					3,061
		Abode Systems Inc		250		shares					7,763
		Advanced Digital Information Corporation		100		shares					1,604

-11-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Advanced Micro Devices		998		shares				$	15,828
		Advanced Viral Research		1,300		shares					345
		Aeroflex Inc		1,000		shares					18,930
		Affymetrix Inc		270		shares					10,192
		Agere Systems Inc Class A		200		shares					1,138
		Albertsons Incorporated		206		shares					6,483
		Alcoa Inc		200		shares					7,110
		Alliance Fiber Optic Products Inc		100		shares					142
		Amazon.com Inc		763		shares					8,256
		America West Holdings Corporation Class B		4,800		shares					16,800
		American Express Company		150		shares					5,354
		Ameritrade Holding Corporation Class A		20		shares					118
		American Aircarriers Support		320		shares					—
		American Tower Corporation Class A		715		shares					6,771
		Amgen Incorporated		900		shares					50,796
		Amkor Technology Inc		50		shares					801
		Anadigics Inc		100		shares					1,525
		Analog Devices Inc		437		shares					19,398
		Anheuser Busch Company Inc		1		shares					16
		AOL Time Warner Inc		4,127		shares					132,477
		Applebees Intl Inc		15		shares					515
		Applera Celera Genomics		172		shares					4,591
		Applied Digital Solution		17,000		shares					7,310
		Applied Materials Inc		765		shares					30,677
		Applied Micro Circuits		2,272		shares					25,719
		Applied Microsystems Corporation		200		shares					210
		Arch Coal Inc		75		shares					1,703
		Arch Wireless Inc		176		shares					2
		Ariad Pharmaceuticals		500		shares					2,665
		Ariba Inc		4,000		shares					24,640
		At Home Corporation Class A		1,000		shares					6
		Atmel Corporation		1,150		shares					8,476
		Atmos Energy Corporation		300		shares					6,375
		Audiovox Corporation Class A		150		shares					1,119
		Aura Systems Inc		15,000		shares					6,600
		Aurora Platinum Corporation		2,725		shares					4,905
		Avaya Inc		127		shares					1,543
		Avici System Inc		30		shares					87
		Axia Group Inc		500		shares					105
		BJ Services Company		175		shares					5,679
		BMC Software Inc		250		shares					4,093
		BP PLC Adr		660		shares					30,697
		BP Amoco Corporation (BP PLC)		24,457		shares					1,137,499

-12-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Baldor Electric Company		101		shares				$	2,117
		Ballard Power Systems		55		shares					1,626
		Bank One Corporation		55		shares					2,148
		Beazer Homes USA Inc		133		shares					9,732
		Bell Microproducts Inc		1,000		shares					12,620
		Benguet Corporation Class B		1,000		shares					55
		Benton Oil & Gas Company		500		shares					720
		Berkshire Hathaway Class B		8		shares					20,200
		Bethlehem Steel Corporation		600		shares					270
		Bico Inc		9,000		shares					268
		Bindview Development Corporation		200		shares					402
		Biogen Inc		100		shares					5,735
		Biomerica Inc		100		shares					66
		Biopure Corporation Class A		25		shares					355
		Boeing Company		238		shares					9,215
		Bombardier Inc Cv Class B		200		shares					2,070
		Boston Biomedica Inc		15		shares					44
		Bradley Pharmaceuticals Inc		500		shares					10,375
		Brigham Exploration Company		200		shares					600
		Brio Software Inc		663		shares					1,909
		Broadcom Corporation Class A		228		shares					9,318
		Broadvision Inc		790		shares					2,165
		CACI Inc Class A		50		shares					1,974
		CBRL Group Inc		25		shares					740
		CMGI Inc		1,175		shares					1,915
		CTS Corporation		101		shares					1,603
		Cable Design Technologies Corporation		750		shares					10,260
		Caldera International		350		shares					301
		Caliper Technologies CP		30		shares					468
		Calpine Corporation		1,149		shares					19,292
		Cambior Inc		1,000		shares					440
		Cardiac Science Inc		1,110		shares					4,940
		Cardstakes.com		84		shares					—
		Catalyst Semiconductor Inc		10,600		shares					29,680
		Caterpillar Inc		1		shares					3
		Cendant Corporation		2,050		shares					40,200
		Cepheid Inc		500		shares					2,100
		Charter Communications		370		shares					6,079
		Check Point Software Technologies		475		shares					18,948
		Checkfree Corporation		40		shares					720
		Chesapeake Energy Corporation		50		shares					331
		ChevronTexaco Corporation		100		shares					8,961
		Ciena Corporation		1,962		shares					28,076

-13-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Cigna Corporation		40		shares			$		3,732
		Circuit City Stores Inc		50		shares					1,137
		Cirus Telecom Inc		98,000		shares					15,680
		Cisco Systems Inc		26,247		shares					475,333
		Citigroup Inc		850		shares					42,922
		Citrix Systems Inc		800		shares					18,128
		Clarent Corporation		600		shares					—
		Clean Harbors Inc		300		shares					1,011
		Coca Cola Company		10		shares					480
		Coeur ‘D Alene Mines CP		1,500		shares					1,185
		Coherent Inc		50		shares					1,546
		Coinstar Inc		14		shares					350
		Comcast Corporation Class A		100		shares					3,600
		Comcast Corporation Special Class A Non Voting Shares		200		shares					7,200
		Commerce One Inc		10		shares					36
		Compaq Computer Corporation		855		shares					8,340
		Computerized Thermal Imaging Inc		3,500		shares					5,425
		Comverse Technology		4,000		shares					89,480
		Concur Technologies Inc		4,500		shares					8,303
		Conexant Systems Inc		263		shares					3,777
		Conoco Inc		107		shares					3,036
		Constellation 3D Inc		200		shares					172
		Corbel Holdings Inc		2,552		shares					—
		Corgenix Medical Corporation		585		shares					123
		Corning Inc		1,206		shares					10,756
		Corvis Corporation		5,550		shares					17,926
		Countrywide Credit Industries		800		shares					32,776
		Covad Communications Group Inc		100		shares					286
		Cree Inc		100		shares					2,946
		Cryolife Inc		130		shares					3,900
		CyberCare Inc		50		shares					48
		Cypress Semiconductor		100		shares					1,993
		Cytogenix Inc		2,000		shares					390
		Cytyc Corporation		100		shares					2,610
		DCH Technology Inc		675		shares					358
		DR Horton Corporation		1		share					8
		Data Return Corporation		72,858		shares					105,644
		De Luxe Corporation		50		shares					2,079
		Decorize Inc		400		shares					1,300
		Dell Computer Corporation		2,032		shares					55,230
		Delta Woodside Industries Inc		100		shares					88
		Detour Magazine Inc		1,000		shares					25
		Deutsche Telekom Ag Adr		800		shares					13,520

-14-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Digital Lightwave Inc		20		shares				$	188
		Dippy Foods Inc		2,000		shares					90
		Disney, Walt Holding Company		660		shares					13,682
		Diversa Corporation		155		shares					2,193
		Divine Inc Class A		80,296		shares					59,419
		Dollar General Corporation		37		shares					551
		Dow Chemical Company		100		shares					3,378
		Drkoop.com Inc		280		shares					—
		Du Pont E I De Nemour & Company		105		shares					4,468
		Duke Energy Corporation		200		shares					7,852
		Dynacq International Inc		50		shares					1,114
		Dynasil Corporation America		2,000		shares					1,300
		Dynegy Inc Class A		148		shares					3,774
		E Com Tech Corporation		20,300		shares					426
		E Digital Corporation		1,000		shares					1,320
		EMC Corporation		4,153		shares					55,816
		E.Spire Communications Inc		19,500		shares					2,126
		Ebay Inc		100		shares					6,690
		EchoStar Communications Corporation Class A		250		shares					6,867
		Ectel Limited		100		shares					1,732
		Egghead.com Inc		50		shares					—
		El Paso Corporation		201		shares					8,954
		Elastic Networks Inc		20,000		shares					15,600
		Elcom Intl Inc		500		shares					690
		Emerson Electric Company		200		shares					11,420
		Empire Exhangeco Service A		500		shares					—
		Empire Exhangeco Service B		500		shares					—
		Emulex Corporation		1,073		shares					42,394
		Endwave Corporation		100		shares					114
		Energy Power Systems Ltd		100		shares					420
		Enron Corporation		11,501		shares					6,901
		Enviro-Energy Corporation		1,000		shares					18
		EPIQ Systems Inc		550		shares					10,642
		Ericsson Tel Adr B		4,100		shares					21,402
		Etoys Inc		500		shares					3
		E-Trade Group Inc		310		shares					3,178
		EuroTech Ltd		10,000		shares					11,000
		Evolve One Inc		19,500		shares					175
		Evolving Systems Inc		2,000		shares					1,580
		Exelon Corporation		100		shares					4,788
		EXFO Electro-Optical Engineering Inc		198		shares					2,352
		Exodus Communications Inc		11,050		shares					431
		Exxon Mobil Corporation		823		shares					32,349

-15-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		FYI Inc		75		shares				$	2,512
		F2 Broadcast Network		62		shares					—
		Famous Fixins Inc		400		shares					4
		Federal-Mogul Corporation		300		shares					237
		Fedex Corporation		40		shares					2,075
		Finova Group Inc		507		shares					309
		First Capital International Inc		1,500		shares					165
		Flextronics International Ltd		400		shares					9,596
		Floor Décor Inc		5,000		shares					4,600
		Fonix Corporation		2,000		shares					208
		Ford Motor Company		400		shares					6,288
		Foundry Networks Inc		100		shares					815
		Freemarkets Inc		40		shares					959
		Fuelcell Energy Inc		352		shares					6,385
		Fundtech Ltd		3,000		shares					16,080
		Galtech Semiconductor Material		6,000		shares					900
		Gap Inc		151		shares					2,111
		Gart Sports Company		200		shares					4,200
		Gemstar TV Guide International		9		shares					249
		Gene Logic Inc		135		shares					2,543
		General Chemical Group Inc		200		shares					670
		General Electric Company		5,311		shares					212,880
		General Magic Inc		180		shares					70
		Genome Therapeutics Corporation		500		shares					3,405
		Giant Inds Inc AZ		5,100		shares					47,073
		Gilat Satellite Networks Ordf		100		shares					548
		Glamis Gold Ltd		1,300		shares					4,693
		Global Crossing Ltd		8,870		shares					7,451
		Global Escience Corporation		260		shares					7
		Global Imaging Systems Inc		232		shares					3,464
		Global Sports Inc		94		shares					1,875
		Global Telesystems Inc		600		shares					4
		GlobalNet Inc		56,225		shares					24,177
		Globalstar Telecom Ord		4,529		shares					734
		Globespan Virata Inc		51		shares					660
		GoAmerica Inc		175		shares					397
		Goldman Sachs Group Inc		101		shares					9,408
		Goodyear Tire & Rubber		500		shares					11,905
		Guidant Corporation		500		shares					24,900
		H Power Corporation		400		shares					1,248
		Handspring Inc		1,100		shares					7,414
		Harley Davidson Inc		200		shares					25,912
		Harmony Gold Mining SP Adr		100		shares					651

-16-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Harrah’s Entertainment Inc		20		shares				$	740
		Hartford Financial Services Group		100		shares					6,283
		Harvard Bioscience Inc		100		shares					994
		Hathaway Corporation		3,000		shares					8,640
		Heilig-Meyers Company		100		shares					—
		Hewlett-Packard Company		3,005		shares					61,726
		Hitachi Ltd Adr		150		shares					10,978
		Home Depot Inc		864		shares					44,996
		Home Fing Centers Inc		5		shares					—
		House2Home Inc		1,000		shares					10
		Hauneng Power International Adr		300		shares					7,230
		Hurry Inc Class A		5,000		shares					1,850
		Hydrogiene Corporation		3,000		shares					3
		Hytek Micro Systems Inc		3,000		shares					5,700
		I2 Technologies Inc		542		shares					4,282
		IXYS Corporation		424		shares					3,430
		iAsiaworks Inc		35,000		shares					4,550
		iBeam Broadcasting		150		shares					4
		iGo Corporation		265		shares					125
		iJoin Systems Inc		10,000		shares					4,300
		iPet Holdings Inc		100		shares					7
		iStar Financial Inc		107		shares					2,675
		Image Entertainment		200		shares					480
		Imclone Systems Inc		40		shares					1,858
		Immulabs Corporation		4		shares					—
		Immunex Corporation		138		shares					3,824
		Impath Inc		700		shares					31,157
		Industrial Rubber Products		5,000		shares					1,600
		Indo Pacific Energy		110		shares					143
		Infonet Services Corporation		152		shares					372
		Infonow Corporation		17,311		shares					64,397
		Informax Inc		1,000		shares					2,950
		Infospace Inc		1,750		shares					3,587
		Inhale Therapeutic Systems Inc		450		shares					8,348
		Inktomi Corporation		4,150		shares					27,846
		Integrated Device Technology Inc		600		shares					15,954
		Intel Corporation		10,226		shares					321,601
		Interamerican Res Inc		999		shares					6
		Interliant Inc		100		shares					35
		Internet Business’s Intl		600		shares					8
		Interwoven Inc		1,370		shares					13,344
		International Business Machines		20		shares					2,456
		International FiberCom Inc		2,000		shares					500

-17-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		International Merchantile Corp		3,000		shares				$	1,650
		International Rectifier Corporation		300		shares					10,464
		Intuit Inc		50		shares					2,139
		Island Critical Care Corp.		10,000		shares					1,000
		Itronics Inc		500		shares					58
		Ivax Corporation		25		shares					504
*		J.P. Morgan Chase & Company		2,600		shares					94,510
		Jabil Circuit Inc		806		shares					18,312
		Jawz Inc		150		shares					1
		JDS Uniphase Corporation		3,230		shares					28,036
		JNI Corporation		600		shares					4,986
		Johnson & Johnson		245		shares					14,496
		Juniper Networks Inc		1,047		shares					19,841
		JustWebit.com Inc		2,000		shares					44
		KLA Tencor Corporation		222		shares					11,002
		K Mart Corporation		200		shares					1,092
		Kemet Corporation		125		shares					2,219
		Kismet Energy Corporation		1,000		shares					10
		Knight Trading Group		30		shares					331
		Kon Philips Electric NV		550		shares					16,010
		Kopin Corporation		100		shares					1,400
		Kraft Foods Inc		111		shares					3,777
		Krispy Kreme Doughnut Corporation		200		shares					8,840
		Kushner-Locke Company		2,200		shares					55
		LTV Corporation		11,700		shares					164
		L90 Inc		1,000		shares					1,550
		Learn2 Corporation		474		shares					57
		LeCroy Corporation		395		shares					7,189
		Level 3 Communications		330		shares					1,650
		Liberty Satellite & Tech Class A		1,050		shares					987
		Lifecore Biomedical Inc		120		shares					1,337
		Linear Technology Corporation		600		shares					23,442
		Loch Harris Inc		4,000		shares					120
		Loral Space & Communications Ltd		1,350		shares					4,037
		Lowes Companies Inc		890		shares					41,310
		LSI Logic Corporation		967		shares					15,259
		Lucent Technologies Inc		20,075		shares					126,273
		MRV Communications Inc		2,000		shares					8,480
		Macromedia Inc		206		shares					3,667
		Manpower Inc		20		shares					674
		MarchFirst Inc		400		shares					—
		Marex Inc		500		shares					255
		Martha Stewart Living Omni		900		shares					14,805

-18-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Massey Energy Company		147		shares				$	3,050
		Maxim Integrated Products		145		shares					7,614
		Maxim Pharmaceuticals		1,000		shares					6,900
		McData Corporation Class A		15		shares					367
		MedCom Usa Inc		400		shares					16
		Medialink Worldwide Inc		110		shares					288
		Mediax Corporation		5,000		shares					5
		Medicis Pharamaceutical Corp Class A		200		shares					12,918
		Medquist Inc		35		shares					1,024
		Medtronic Inc		1,003		shares					51,341
		Merck & Co Inc		417		shares					24,520
		Metromedia Fiber Network Inc		6,000		shares					2,640
		Michaels Stores Inc		90		shares					2,965
		Microage Inc		487		shares					2
		Microsoft Corporation		2,957		shares					195,901
		Millennium Pharmaceuticals Inc		400		shares					9,804
		Minnesota Mining & Manufacturing		212		shares					25,061
		Miracle Entertainment		3,237		shares					81
		Motorola Incorporated		2,301		shares					34,559
		Mylan Laboratories Inc		300		shares					11,250
		Myriad Genetics Inc		100		shares					5,264
		MyTurn.com Inc		24,000		shares					67
		NCS Healthcare Inc Class A		3,940		shares					749
		NL Industries Inc		260		shares					3,972
		National Beauty Corp		22		shares					11
		National Residential PPTYS Inc		210,000		shares					105
		National Semiconductor Corporation		500		shares					15,395
		Navisite Inc		2,000		shares					720
		Net2Phone Inc		1,000		shares					6,750
		NetLojix Communications Inc		1,000		shares					170
		NetSilicon Inc		1,000		shares					3,850
		Network Appliance Inc		668		shares					14,609
		New Century Company		20		shares					42
		New Tel Limited Spon Adr		15		shares					18
		Newell Rubbermaid Inc		358		shares					9,873
		Newport Corporation		1,554		shares					29,963
		NewPower Holdings Inc		5		shares					4
		Nexell Therapeutics		24,200		shares					34,364
		Niku Corporation		1,150		shares					1,875
		Nisource Inc Holding Company		29		shares					668
		Nokia Corporation Spon Adr		6,898		shares					169,208
		Nordic American Tanker Shipping Inc		219		shares					3,033
		Nortel Networks Corporation (Holding Company)		1,802		shares					13,515

-19-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Novatel Wireless Inc		3,250		shares				$	3,965
		Nutrition 21 Inc		300		shares					213
		O’Charley’s Inc		230		shares					4,257
		o2wireless Solutions Inc		1,000		shares					1,740
		Ocean Energy Inc		100		shares					1,920
		Office Depot Inc		397		shares					7,360
		Omnisky Corporation		300		shares					4
		On Semiconductor Corporation		200		shares					414
		Onvia.com Inc		4		shares					2
		Openwave Systems Inc		68		shares					666
		Optical Communications Products Inc		200		shares					788
		Oracle Corporation		7,992		shares					110,370
		Orchid Biosciences Inc		600		shares					3,300
		Owens Corning		300		shares					570
		Oxy Corporation (Occidential Petroleum Corporation)		5,423		shares					143,870
		PMC-Sierra Inc		222		shares					4,720
		Pacific Century Cyberworks Ord		300		shares					75
		Palm Inc		4,306		shares					16,707
		Paradigm Genetics Inc		600		shares					3,420
		Paravant Inc		370		shares					870
		Parts.com Inc		61		shares					20
		Penton Media Inc		100		shares					626
		PeopleSoft Inc		510		shares					20,502
		Pepsico Incorporated		102		shares					4,944
		Petroleum Geo-Services ASA		100		shares					796
		Pfizer Incorporated		1,877		shares					74,807
		Pharmaceutical Product Development		266		shares					8,594
		Pharmacia Corporation		23		shares					981
		Pharmos Corporation		600		shares					1,410
		Phoenix Companies		100		shares					1,850
		Pinnacle Business Management Inc		257,142		shares					3,729
		Pixelworks Inc		1,965		shares					31,558
		Placer Dome Inc		220		shares					2,400
		Plug Power Inc		1,400		shares					12,236
		Polycom Inc		100		shares					3,407
		Poore Brothers Inc		60		shares					150
		Portal Software Inc		1,100		shares					2,288
		Presstek Inc		400		shares					3,668
		Priceline.com Inc		1,300		shares					7,566
		PrimeLink Systems Inc		100		shares					62
		Procter & Gamble Company		120		shares					9,496
		Proginet Corporation		625		shares					162
		Providian Financial Corporation		400		shares					1,420

-20-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Prudential Financial Inc		92		shares				$	3,053
		PSINet Inc		988		shares					6
		QLogic Corporation		70		shares					3,116
		QUALCOMM Incorporated		1,559		shares					78,730
		Quanta Services Inc		400		shares					6,172
		Quentra Networks Inc		700		shares					1
		Quintus Corporation		400		shares					20
		Quokka Sports Inc		1		shares					—
		Qwest Communications International Inc		350		shares					4,945
		Rambus Inc		1,905		shares					15,221
		Ramtron International Corporation		60		shares					269
		Rayonier Inc		100		shares					5,047
		Raytheon Company		344		shares					11,186
		Razorfish Inc Class A		90		shares					20
		Reality Wireless Networks Inc		407		shares					102
		Recordlab Corporation		450		shares					2
		Redback Networks Inc		1,000		shares					3,950
		Redhat Inc		130		shares					923
		Remington Oil and Gas Corporation		78		shares					1,349
		Research In Motion Limited		100		shares					2,372
		Rite Aid Corporation		4,300		shares					21,758
		Rockford Corporation		20		shares					172
		Rockwell Collins Inc		100		shares					1,950
		Ross Stores Inc		50		shares					1,604
		Rudolph Technologies Inc		178		shares					6,109
		Ryan’s Family Steakhouse Inc		50		shares					1,082
		SBC Communications Inc		246		shares					9,621
		Safeguard Scientific Inc		800		shares					2,800
		Safeway Inc		1,150		shares					48,013
		Sandisk Corporation		488		shares					7,027
		Sanmina SCI Corporation		667		shares					13,273
		Sara Lee Corporation		120		shares					2,667
		Satyam Infoway Limited Adr		400		shares					608
		Schlumberger Limited		32		shares					1,758
		Scient Inc		643		shares					270
		Scientific Atlanta Inc		786		shares					18,828
		Seattle Genetics Inc		1,000		shares					5,700
		Semotus Solutions Inc		1,000		shares					730
		Serena Software Inc		50		shares					1,087
		Service Corporation International		335		shares					1,672
		Shaman Pharmaceuticals		100,001		shares					600
		Siebel Systems Inc		857		shares					23,979
		Silicon Image Inc		1,000		shares					3,760

-21-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Sirius Satellite Radio		710		shares				$	8,257
		Siskon Gold Corporation		3,000		shares					9
		Socket Communications Inc		3,000		shares					5,040
		Solectron Corporation		540		shares					6,091
		Sonera Group PLC Adr		100		shares					486
		Sonic Solutions		315		shares					1,562
		SONICblue Inc		1,000		shares					4,040
		Sonus Networks Inc		1,000		shares					4,620
		Southwall Technologies		462		shares					3,303
		Southwest Airlines Company		2,746		shares					50,744
		Southwest Gas Corporation		100		shares					2,235
		Spatializer Audio Laboratories Inc		1,000		shares					115
		Sprint FON Group		615		shares					12,343
		Sprint PCS Group		500		shares					12,205
		Stamford International Inc		1,800		shares					2
		Starbucks Corporation		300		shares					5,715
		Stillwater Mining Corporation		885		shares					16,372
		StorageNetworks Inc		220		shares					1,360
		Stratos Lightwave Inc		500		shares					3,075
		Styling Technology Corporation		130		shares					3
		Sun Healthcare Group Inc		1,500		shares					6
		Sun Microsystems Inc		5,026		shares					61,820
		Sungard Data Systems Inc		136		shares					3,934
		Sunrise Technologies International Inc		1,000		shares					240
		Sycamore Networks Inc		309		shares					1,656
		Symantec Corporation		140		shares					9,286
		Synergy Brands Inc		5,280		shares					5,702
		Synopsys Inc		200		shares					11,814
		TRC Companies Inc		200		shares					10,000
		TVI Corporation		7,000		shares					1,750
		TVX Gold Inc		2,000		shares					860
		Take-Two Interactive Software Inc		100		shares					1,617
		Talk Visual Corporation		52,000		shares					1,820
		Target Corporation		28		shares					1,164
		Taro Pharmaceuticals Industries Class A		60		shares					2,397
		Tellabs Inc		1,800		shares					26,928
		Telynx Inc		500		shares					3
		Texas Instruments Inc		815		shares					22,828
		ThatLook.com Inc		670		shares					2
		THCG Inc		60		shares					4
		The Charles Schwab Corporation		853		shares					13,201
		Tiffany & Co.		85		shares					2,675
		Titanium Metals Corporation		1,500		shares					5,985

-22-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Tommy Hilfiger Corporation		210		shares				$	2,888
		Trans Orient Pete Ltd		83		shares					12
		Transocean Sedco Forex		200		shares					6,764
		Travelocity.com Inc		11		shares					316
		Triangle Pharmaceuticals Inc		150		shares					601
		Trident Microsystems		1,000		shares					7,650
		Tyco International Ltd.		310		shares					18,259
		U.S. Bancorp		30		shares					628
		Ultra Petroleum Corporation		175		shares					1,066
		Union Planters Corporation		108		shares					4,885
		Uniprime Capital Acceptance Inc		11,975		shares					180
		Unisource Energy Corporation		642		shares					11,674
		Unit Corporation		200		shares					2,580
		United Online Inc		30		shares					126
		United Parcel Service Class B		266		shares					14,521
		USLab.com Inc Restricted Shares		230		shares					374
		Utilicorp United Inc		303		shares					7,630
		VDC Communications Inc		1,000		shares					6
		VISX Inc Delaware		108		shares					1,431
		VA Software Corporation		51		shares					125
		Varian Semiconductor Equipment Associates Inc		120		shares					4,151
		Vasomedical Inc		1,450		shares					5,365
		Vast Solutions Inc Class B1		46		shares					—
		Vast Solutions Inc Class B2		46		shares					—
		Vast Solutions Inc Class B3		46		shares					1
		VaxGen Inc		150		shares					1,740
		Verisign Inc		85		shares					3,233
		Vialta Inc Class A		237		shares					294
		Vidamed Inc		1,000		shares					7,820
		Viragen Inc		2,000		shares					2,460
		Vishay Intertechnology		50		shares					975
		Vista Gold Corporation		2,000		shares					120
		Vital Living Products		300		shares					27
		Vitesse Semiconductor Corporation		240		shares					2,983
		Vitria Technology Inc		13,550		shares					86,585
		Vivendi Universal Adr		16		shares					861
		Vixel Corporation		50		shares					92
		Walgreen Company		101		shares					3,415
		Wal-Mart De Cv Spn Adr		60		shares					1,611
		Wal-Mart Stores Inc		1,990		shares					114,517
		Wamex Holdings Inc		1,660		shares					18
		Wasatch Pharmaceutical Inc		60		shares					5
		Washington Mutual Inc		451		shares					14,751

-23-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Common Stocks: (Continued)
		Wave Systems Corporation Class A		5,150		shares				$	11,536
		Wavo Corporation		2,100		shares					19
		Webb Interactive Services		1,100		shares					781
		Webvan Group Inc		1,000		shares					—
		Wells Fargo & Company		200		shares					8,690
		Western Wireless Corporation Class A		200		shares					5,650
		Williams Communications Group Class A		600		shares					1,410
		Williams Companies		400		shares					10,208
		Wind River Systems Inc		250		shares					4,477
		Wireless Data Solutions		1,000		shares					140
		Wireless Synergies Inc		545		shares					87
		World Gaming PLC Adr		30,000		shares					14,400
		World Wrestling Federation Class A		150		shares					1,973
		WorldCom Inc — MCI Group		73		shares					927
		WorldCom Inc WorldCom Group		1,845		shares					25,978
		Worldgate Communications Inc		1,980		shares					4,950
		Worldwide Web Ntwrx Corporation		300		shares					2
		Xerox Corporation		2,600		shares					27,092
		Xo Communications Class A		100		shares					10
		Xybernaut Corporation		25		shares					60
		Yahoo! Inc		1,501		shares					26,628
		Zap.com Corporation		2		shares					—
		Zymetx Inc		750		shares					278
		Total Common Stocks									7,291,338
		Registered Investment Companies:
		ABN Amro/Veredus Aggressive Growth Fund Class N		107		shares					2,063
*		American Century Global Gold Fund		9,882		shares					52,374
*		American Century Growth Fund		870		shares					16,990
*		American Century International Growth Fund Investor		2,399		shares					19,124
*		American Century Real Estate Fund Investor Class		101		shares					1,520
*		American Century Small Cap Value Fund Investor Class		439		shares					3,524
*		American Century Technology Fund		11,891		shares					25,565
*		American Century Value Fund		346		shares					2,423
		Amerindo Technology Fund Class D		165		shares					949
		Ameristock Fund		418		shares					17,058
		Ariel Appreciation Fund		183		shares					6,792
		Ariel Fund		117		shares					4,403
		Artisan International Fund		3,720		shares					68,299
		Artisan Midcap Fund		422		shares					10,874
		Baron Growth Fund		85		shares					2,605
		Baron Iopportunity Fund		201		shares					1,176
		Berger Small Cap Value Fund Investor Shares		1,186		shares					33,291

-24-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Registered Investment Companies: (Continued)
		Bjurman Micro Cap Growth Fund		986		shares				$	48,594
		Boston Partners Small Cap Value II Fund Investor		289		shares					5,145
		Buffalo Small Cap Fund		938		shares					18,732
		Burnham Financial Services Fund Class A		127		shares					2,000
		Clipper Fund		587		shares					49,029
		Columbia Small Cap Fund		442		shares					9,806
		Credit Suisse Global Technology — Common		227		shares					6,828
		Credit Suisse Japan Growth Fund		279		shares					1,455
		Credit Suisse Japan Small Cap Fund		270		shares					483
		Dodge & Cox Balanced Fund		22		shares					1,438
		Dodge & Cox Stock Fund		44		shares					4,388
		Dresdner RCM Biotechnology Fund Class N		1,346		shares					36,893
		Dresdner RCM Global Healthcare Fund Class N		1,812		shares					37,183
		Dresdner RCM Global Technology Fund		347		shares					10,520
		Dreyfus Intermediate Term Income Fund		313		shares					3,967
		Dreyfus Midcap Value Fund		152		shares					3,988
		Dreyfus Premier Technology Growth Fund Class A		224		shares					5,611
		Excelsior Energy and Natural Resources		837		shares					11,188
		Excelsior Value and Restructuring Fund		3,393		shares					108,765
		Federated Income Institutional		967		shares					10,042
		Federated International Small Company Fund Class A		508		shares					8,937
		Fidelity Aggressive Growth Fund		111		shares					2,118
		Fidelity Contrafund II		550		shares					5,695
		Fidelity Equity Income Fund		41,809		shares					2,039,041
		Fidelity Growth Company Fund		22		shares					1,195
		Fidelity Magellan Fund		47,026		shares					4,901,004
		Fidelity Magellan Fund		1,467		shares					152,912
		Fidelity Select Biotechnolgy		20		shares					1,306
		First American Microcap Fund Class A		94		shares					1,000
		Firsthand Communications Fund		547		shares					1,821
		Firsthand Technology Innovators Fund		2,782		shares					45,620
		Firsthand Technology Leaders Fund		464		shares					8,751
		Firsthand Technology Value Fund		327		shares					13,473
		FMI Focus Fund		99		shares					2,921
		Gabelli Asset Fund		73		shares					2,406
		Gabelli Equity Trust Inc		1,103		shares					11,900
		Gabelli Westwood Balanced Fund Retail		265		shares					2,916
		GE US Equity Fund Class A		2,045		shares					55,620
		Harbor Capital Appreciation Fund		1,368		shares					39,985
		Heartland Value Fund		91		shares					3,402
		Henlopen Fund		1,401		shares					27,997
		ICON Healthcare Fund Class A		497		shares					5,663
		ICON Information Technology Fund		1,460		shares					14,845

-25-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Registered Investment Companies: (Continued)
		Internet Fund		54		shares				$	1,173
		INVESCO Dynamics Fund		1,118		shares					17,806
		INVESCO Energy Fund		266		shares					4,615
		INVESCO Financial Services Fund		260		shares					7,087
		INVESCO Health Sciences Fund		20		shares					1,001
		INVESCO Technology Fund		388		shares					12,635
		INVESCO Telecommunications Fund		407		shares					6,763
		Investec Internet.com Index Fund		58		shares					255
		Investec Wired Index Fund		419		shares					5,461
		IPS Millennium Fund Class A		448		shares					13,410
		iShares MSCI EMU Index Fund		275		shares					15,397
		iShares MSCI Japan Index Fund		790		shares					6,091
		iShares Trust Dow Jones US Energy		290		shares					13,833
		iShares Trust Dow Jones Re US Real Estate Index Fund		196		shares					15,641
		iShares Trust S&P SmallCap		307		shares					35,121
		iShares Trust S&P 500 Index		254		shares					29,040
		Janus Balanced Fund		3,101		shares					60,880
		Janus Enterprise Fund		718		shares					22,962
		Janus Fund		847		shares					20,845
		Janus Global Life Sciences Fund		905		shares					15,895
		Janus Global Technology Fund		4,016		shares					48,753
		Janus Growth & Income Fund		274		shares					8,201
		Janus High Yield Fund		268		shares					2,513
		Janus Mercury Fund		7,104		shares					147,700
		Janus Olympus Fund		2,865		shares					79,803
		Janus Special Situations Fund		3,142		shares					46,654
		Janus Strategic Value Fund		462		shares					4,280
		Janus Twenty Fund		775		shares					29,821
		Janus Worldwide Fund		595		shares					26,081
*		J.P. Morgan Mid-Cap Growth Fund		248		shares					1,254
		Julius Baer International Equity Class A		1,835		shares					38,196
		Leuthold Core Investment Fund		93		shares					1,095
		LongLeaf Partners International Fund		562		shares					6,935
		Lord Abbett Affiliated Fund Class A		1,404		shares					19,216
		Lord Abbett Mic-Cap Value Fund Class A		424		shares					7,386
		Managers Bond Fund		64		shares					1,420
		Matthews Pacific Tiger Fund		1,564		shares					13,782
		Meridian Growth Fund		241		shares					6,941
		Millennium Growth & Income Fund		604		shares					3,779
		Munder NetNet Fund Class A		64		shares					1,146
		Murphy New World Biotechnology Fund		106		shares					695
		Navellier Aggressive Micro Cap Portfolio		113		shares					2,617
		Navellier Large Cap Growth Fund		1,667		shares					27,717

-26-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Registered Investment Companies: (Continued)
		Navellier Mid Cap Growth Portfolio		5,473		shares				$	122,970
		Navellier Small Cap Value Portfolio		176		shares					2,149
		Neuberger Berman Genesis Fund — Investor Class		639		shares					12,992
		Needham Growth Fund		69		shares					1,920
		Nevis Fund		55		shares					815
		Nicholas II Fund		217		shares					4,364
		Northern Technology Fund		94		shares					1,177
		Oak Value Fund		280		shares					8,139
		Oakmark Equity Income Fund		1,317		shares					24,541
		Oakmark Select Fund		3,153		shares					85,875
		Payden & Rygel European Agressive Growth Fund Class R		204		shares					1,735
		PBHG Global Technology & Communications Fund		667		shares					2,734
		PBHG Large Cap 20 Fund		239		shares					3,894
		PBHG Large Cap Growth Fund		61		shares					1,278
		PBHG Large Cap Value Fund		472		shares					6,442
		PBHG Mid-Cap Value Fund		837		shares					13,321
		PBHG Select Equity Fund		603		shares					14,717
		PBHG Technology & Communications Fund		475		shares					7,785
		Pennsylvania Mutual Fund		405		shares					2,995
		Pin Oak Aggressive Stock Fund		104		shares					2,477
		Pioneer High Yield Fund		276		shares					3,030
		Red Oak Technology Select Portfolio		922		shares					8,846
		Reynolds Blue Chip Growth		21		shares					717
		Royce Opportunity Fund		269		shares					2,423
		Royce Premier Fund		4,011		shares					42,275
		Royce Total Return Fund		1,512		shares					12,990
		RS Diversified Growth Fund		455		shares					10,578
		RS Internet Age Fund		571		shares					3,290
		Rushmore American Gas Index Fund		309		shares					4,632
		Rydex Venture 100 Fund		107		shares					5,238
		Safeco Growth Opportunities Fund		1,162		shares					31,675
		Schwab 1000 Fund		1,301		shares					41,575
		Schwab MarketTrack All Equity Portfolio		87		shares					836
		Schwab MarketTrack Balanced Portfolio		82		shares					1,106
		Schwab S&P 500 Fund — Investor Shares		5,139		shares					90,863
		Schwab Total Bond Market Index Fund		17,085		shares					170,506
		Schwab Total Stock Market Fund — Investor Shares		2,097		shares					37,822
		Schwab Value Advantage Money Fund		183,949		shares					183,949
		Scudder Balanced Fund		512		shares					8,957
		Scudder Greater Europe Growth Fund Class S		611		shares					14,045
		Scudder Health Care Fund		233		shares					4,865
		Selected American Shares		1,117		shares					34,619
		SSgA Growth & Income Fund		1,170		shares					23,205

-27-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

				(c) Description of investment
				including maturity date, rate of				(d)
				interest, collateral, par or maturity				Cost		(e) Current
(a)		(b) Identity of issue, borrower, lessor or similar party		value, or number of shares				**		Value
		Registered Investment Companies: (Continued)
		SteinRoe Intermediate Bond Fund		1,294		shares				$	11,469
		Strong Advantage Fund		546		shares					5,326
		Strong Opportunity Fund		694		shares					27,284
		T Rowe Price Emerging Markets Stock Fund		453		shares					4,873
		T Rowe Price Equity Income Fund		588		shares					13,913
		T Rowe Price Health Sciences Fund		993		shares					19,931
		T Rowe Price International Discovery Fund		125		shares					2,395
		T Rowe Price Latin America Fund		941		shares					8,628
		T Rowe Price Mid Cap Growth Fund		939		shares					37,004
		T Rowe Price New Asia Fund		991		shares					6,157
		T Rowe Price New Horizon Fund		216,488		shares					4,899,125
		T Rowe Price Science & Technology Fund		189,042		shares					3,954,766
		T Rowe Price Small Cap Value Fund		480		shares					10,868
		T Rowe Price Spectrum Income Fund		1,532		shares					16,244
		TCW Galileo Value Opportunity Fund N		226		shares					4,242
		Third Avenue Value Fund		376		shares					13,711
		Transamerica Premier Balanced Fund		127		shares					2,372
		Turner Midcap Growth Fund		343		shares					7,509
		Turner Small Cap Value Fund		322		shares					6,291
		Turner Top 20 Fund		380		shares					2,885
		Tweedy Browne Global Value Fund		2,247		shares					41,634
		UMB Scout Worldwide Fund		4,482		shares					83,681
		Van Wagoner Technology Fund		44		shares					701
		Vanguard GNMA Fund		905		shares					9,397
		Vanguard Gold & Precious Metals Fund		7,207		shares					61,620
		Vanguard Index Trust 500 Fund		40		shares					4,197
		Vanguard Mid Capitalization Index Fund		336		shares					3,974
		Vanguard Short-Term Treasury Fund — Investor Shares		1,193		shares					12,562
		Vanguard STAR Fund		250		shares					4,115
		Vanguard Total Bond Market Index Fund		207		shares					2,096
		Vanguard Total Stock Market Index Fund		1,662		shares					42,769
		Wasatch Core Growth Fund		582		shares					20,136
		Wasatch Small Cap Value Fund		2,842		shares					11,651
		Weitz Value Portfolio		844		shares					28,928
		Westport Small Cap Fund Class R		262		shares					5,090
		White Oak Growth Stock Fund		2,851		shares					109,575
		Willaim Blair International Growth Fund — Class N		710		shares					10,983
		T Rowe Price Small Cap Stock Fund		1,028,811		shares					26,058,422
		AF Europacific Fund		856,847		shares					23,006,021
*		American Century Equity Growth Fund		3,961,402		shares					76,234,522
*		American Century Income & Growth Fund		2,325,535		shares					63,627,408
		Total Registered Investment Companies									208,322,346

-28-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Assets (Held at End of Year) December 31, 2001		Supplemental Information Schedule I

(c) Description of investment

including maturity date, rate of

(d)

interest, collateral, par or maturity

Cost

(e) Current

(a)

(b) Identity of issue, borrower, lessor or similar party

value, or number of shares

**

Value

Employer Stock:

Phelps Dodge Corporation

1,563,007

shares

$

50,641,431

Phelps Dodge Corporation (Participant directed — Schwab)

17

shares

551

Total Employer Stock

50,641,982

Participant Loans:

Loans To Various Participants

6% — 11.5% maturing through 2016

23,802,951

Total Participant Loans

23,802,951

Other Assets:

Airlease Ltd. Depostry Unit

150

shares

977

EOTT Energy Partners LP

1,000

shares

15,050

Glimcher Realty Trust

1,200

shares

22,596

Kinder Morgan Energy LP Unit Ltd Partnership

558

shares

21,115

Nasdaq 100 Shares

1,065

shares

41,439

SPDR Trust Unit Sr 1 Expiring 1/22/2118

200

shares

22,846

Saun Juan Basis Royalty Trust

321

shares

3,076

Tokheim Corporation Ser C 06 Wt Warrants Exp 10/2

300

shares

5

Weingarten Realty Investors SBI

17

shares

794

Williams Coal Seam Gas Royalty Trust

455

shares

6,026

Synthetic wrapper value

Synthetic guaranteed investment

contract

(2,014,935)

Total Other Assets

(1,881,011)

Total Assets Held For Investment

$462,361,784

---

*		This is a related party to the Plan’s Recordkeeper, a party-in-interest for which a statutory exemption exists.
**		All investments are participant directed, therefore disclosure of cost is not required.

See Report of Independent Accountants.

-29-

---

Table of Contents

Phelps Dodge Employee Savings Plan Schedule of Reportable Transactions Year Ended December 31, 2001		Supplemental Information Schedule II

																										(h) Current
																		(f) Expenses								value on
		(b) Description				(c) Purchase				(d) Selling				(e) Lease				incurred with				(g) Cost of				transaction
(a) Identity of party involved		of asset				price				price				Rental				transaction				asset				date				(i) Net loss
Phelps Dodge Corporation		Stock				$	16,505,504			$	—			$	—			$	—			$	16,505,504				$16,505,504			$	—
Phelps Dodge Corporation		Stock				$	—			$	16,273,325			$	—			$	—			$	19,191,367				$16,273,325			$	(2,918,042	)

 

See Report of Independent Accountants.

-30-

---

Table of Contents

Consent of Independent Accountants

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-26442) of Phelps Dodge Corporation of our report dated June 24, 2002 relating to the financial statements of the Phelps Dodge Employee Savings Plan, which appears in this Form 11-K.

 

PricewaterhouseCoopers LLP
Phoenix, Arizona
June 25, 2002