1
EXHIBIT 12
ATLANTIC RICHFIELD COMPANY
STATEMENT SETTING FORTH DETAIL OF COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES -- UNAUDITED
(MILLIONS OF DOLLARS)
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------
1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
Income (loss) from continuing operations before
income taxes and minority interest(1).............. $(1,282) $1,878 $2,086 $1,112 $ 740
Less: Undistributed income of less than
50% owned subsidiaries (net of
losses)(2)......................................... (20) 5 6 -- --
------ ------ ------ ------ ------
Fixed charges:
Interest expense charged to income,
interest of appropriate
unconsolidated subsidiaries, and
portion of rentals representative of
interest(3).................................... 493 522 615 702 712
Capitalized interest................................. 106 38 19 48 35
------ ------ ------ ------ ------
Total fixed charges.................................. 599 560 634 750 747
------ ------ ------ ------ ------
Earnings (deficit) (1) + (2) + (3)................... $(809) $2,405 $2,707 $1,814 $1,452
====== ====== ====== ====== ======
Ratio of earnings to fixed charges(a)................ (1.35) 4.29 4.27 2.42 1.94
====== ====== ====== ====== ======
- ---------------
(a) In 1998, the negative ratio indicates a less than one-to-one earnings
coverage of fixed charges. Fixed charges of $599 million combined with an
earnings deficit of $809 million per the ratio of earnings to fixed charges
calculation resulted in a $1.4 billion deficiency in a one-to-one earnings
coverage of fixed charges in 1998. The deficiency includes a before tax net
charge of approximately $1.35 billion for asset writedowns, restructuring costs
and a tax refund in the fourth quarter of 1998.