EX-12 5 ratio.txt RATIO Exhibit 12 CONOCOPHILLIPS AND CONSOLIDATED SUBSIDIARIES TOTAL ENTERPRISE Computation of Ratio of Earnings to Fixed Charges Millions of Dollars ------------------- Nine Months Ended September 30 ------------------- 2002 2001 ------------------- (Unaudited) Earnings Available for Fixed Charges Income before income taxes $1,129 2,929 Distributions less than equity in earnings of fifty-percent-or-less-owned companies (52) (28) Fixed charges, excluding capitalized interest* 562 328 ------------------------------------------------------------------- $1,639 3,229 =================================================================== Fixed Charges Interest and expense on indebtedness, excluding capitalized interest $ 347 240 Capitalized interest 161 170 Preferred dividend requirements of capital trusts 31 40 Interest portion of rental expense 150 32 Interest expense relating to guaranteed debt of fifty-percent-or-less-owned companies 12 - Interest expense relating to guaranteed debt of greater-than-fifty-percent- owned companies 1 - ------------------------------------------------------------------- $ 702 482 =================================================================== Ratio of Earnings to Fixed Charges 2.3 6.7 ------------------------------------------------------------------- *Includes amortization of capitalized interest totaling approximately $22 million and $16 million in 2002 and 2001, respectively. 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. Earnings available for fixed charges include, if any, 100 percent of the losses of companies owned greater than fifty percent that have debt for which the company is contingently liable. Fixed charges include 100 percent of interest and capitalized interest, if any, 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 a minimal amount of interest attributable to the LTSSP borrowing in both the first nine months of 2001 and 2000.