Exhibit 12
PHILLIPS PETROLEUM COMPANY AND CONSOLIDATED SUBSIDIARIES
TOTAL ENTERPRISE
Computation of Ratio of Earnings to Fixed Charges
Millions of Dollars
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Three Months Ended
March 31
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2002 2001
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(Unaudited)
Earnings Available for Fixed Charges
Income before income taxes $ 45 1,014
Distributions less than equity in
earnings of fifty-percent-or-less-
owned companies 28 (18)
Fixed charges, excluding capitalized
interest* 149 113
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$222 1,109
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Fixed Charges
Interest and expense on indebtedness,
excluding capitalized interest $107 84
Capitalized interest 51 57
Preferred dividend requirements of
capital trusts 13 13
Interest portion of rental expense 23 11
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$194 165
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Ratio of Earnings to Fixed Charges 1.1 6.7
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*Includes amortization of capitalized interest totaling
approximately $6 million in 2002 and $5 million in 2001.
Earnings available for fixed charges include, if any, the
company's equity in losses of companies owned fifty percent or
less that have debt for which the company is contingently liable.
Fixed charges include the company's proportionate share, if any,
of interest relating to the contingent debt.
In 1990, the company guaranteed a $400 million bank loan for the
Long-Term Stock Savings Plan (LTSSP), an employee benefit plan.
Consolidated interest expense includes interest attributable to
the LTSSP borrowing of $1 million in the first three months of
2001. The amount in the first three months of 2002 was minimal.