Exhibit 12
PHILLIPS PETROLEUM COMPANY AND CONSOLIDATED SUBSIDIARIES
TOTAL ENTERPRISE
Computation of Ratio of Earnings to Fixed Charges
Millions of Dollars
------------------------------------
Years Ended December 31
------------------------------------
1993 1992 1991 1990 1989
------------------------------------
(Unaudited)
Earnings Available for
Fixed Charges:
Income before income taxes,
extraordinary items and
cumulative effect of changes
in accounting principles $538 511 451 1,187 536
Equity in undistributed earnings
of less-than-fifty-percent-
owned companies 9 (3) 1 7 (6)
Fixed charges, excluding
capitalized interest and the
portion of the preferred dividend
requirements of a subsidiary not
previously deducted from income* 358 438 631 665 758
------------------------------------
$905 946 1,083 1,859 1,288
====================================
Fixed Charges:
Interest and expense on
indebtedness, excluding
capitalized interest $289 392 460 622 647
Capitalized interest 10 16 37 17 4
Preferred dividend requirements
of a subsidiary 71 3 - - -
One-third of rental expense,
net of subleasing income,
for operating leases 26 34 34 29 25
------------------------------------
$396 445 531 668 676
====================================
Ratio of Earnings to Fixed Charges 2.3 2.1 2.0 2.8 1.9
- ---------------------
*Includes amortization of capitalized interest totaling approximately
$11 million, $10 million, $137 million, $14 million and $86 million in 1993,
1992, 1991, 1990 and 1989, respectively. For 1991 and 1989, the amount
includes approximately $120 million and $71 million, respectively, of
capitalized interest associated with the writedown of offshore California
investments.
Earnings available for fixed charges include, if any, the company's equity in
losses of companies owned less than fifty percent and having 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 and 1988, respectively, the company guaranteed a $400 million bank
loan and $250 million of notes payable for the Long-Term Stock Savings Plan
(LTSSP), an employee benefit plan. Consolidated interest expense includes
interest attributable to the LTSSP borrowings of $1 million, $1 million,
$13 million, $10 million and $7 million in 1993, 1992, 1991, 1990 and 1989,
respectively.