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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Six Months Ended
June 30
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1997 1996
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(Unaudited)
Earnings Available for Fixed Charges
Income before income taxes $1,035 1,324
Distributions in excess of (less than) equity
in earnings of less-than-fifty-percent-owned
companies (11) 21
Fixed charges, excluding capitalized
interest and the portion of the
preferred dividend requirements of a
subsidiary not previously deducted
from income* 177 167
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$1,201 1,512
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Fixed Charges
Interest and expense on indebtedness,
excluding capitalized interest $ 112 128
Capitalized interest 21 15
Preferred dividend requirements of
a subsidiary and a capital trust 56 25
One-third of rental expense, net of
subleasing income, for operating leases 18 18
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$ 207 186
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Ratio of Earnings to Fixed Charges 5.8 8.1
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*Includes amortization of capitalized interest totaling approximately
$6 million and $5 million in 1997 and 1996, respectively.
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. In 1994, the notes payable were
refinanced with a $131 million term loan, and the $400 million loan was
amended in 1994, 1995, and again in 1997. Consolidated interest expense
included a minimal amount of interest related to LTSSP borrowings for the
first six months of 1997 and 1996.