Phillips 66 (PSX) 10-Q 2018 Q2 Quarterly report

Exhibit 12

PHILLIPS 66 AND CONSOLIDATED SUBSIDIARIES

TOTAL ENTERPRISE

Computation of Ratio of Earnings to Fixed Charges

	Millions of Dollars
	Six Months Ended June 30			Years Ended December 31
	2018			2017		2016		2015	2014	2013
Earnings Available for Fixed Charges
Income from continuing operations before income taxes and noncontrolling interests that have not incurred fixed charges	$	2,552		3,555		2,181		6,035	5,711	5,509
Distributions in excess of (less than) equity in earnings of affiliates	(12		)	(516	)	(815	)	185	197	(354	)
Preference security dividend requirement of consolidated subsidiary	(19		)	(9	)	—		—	—	—
Fixed charges, excluding capitalized interest*	354			601		488		456	397	365
	$	2,875		3,631		1,854		6,676	6,305	5,520
Fixed Charges
Interest and expense on indebtedness, excluding capitalized interest	$	258		438		338		310	267	275
Capitalized interest	1			15		81		106	20	—
Interest portion of rental expense	71			141		140		140	125	83
Preference security dividend requirement of consolidated subsidiary	19			9		—		—	—	—
	$	349		603		559		556	412	358
Ratio of Earnings to Fixed Charges	8.2			6.0		3.3		12.0	15.3	15.4
* Includes amortization of capitalized interest totaling approximately $6 million for the six months ended June 30, 2018. Amortization of capitalized interest for the years ended December 31, totaled approximately $13 million in 2017, $10 million in 2016, $7 million in 2015, $6 million in 2014 and $7 million in 2013.